The Daily Circuit: ADNOC signs gas partners + Dubai’s food hub

👋 Hello from the Middle East!

Today in The Daily Circuit, we’re looking at Dubai’s bid to become a global logistics hub for food, a towering landmark to sports culture in Riyadh, China’s effort to attract Saudi sovereign wealth and new offices for Google Cloud in Kuwait. But first, the palace signing of ADNOC’s natural gas deal with a bevy of CEOs from abroad.

Chief executives from three of Europe’s largest energy companies and a top Japanese conglomerate came to Abu Dhabi this week to sign agreements backing state-owned ADNOC’s ramped-up efforts to sell liquified natural gas.

Each of the firms – Shell, BP, TotalEnergies and Mitsui & Co. – will take a 10% interest in ADNOC’s Ruwais LNG plant, a project scheduled to begin production in 2028 as spending on gas as a cleaner alternative fossil fuel to oil is projected to rise. Payments were not disclosed.

Signing the contracts to take part in the LNG venture on Wednesday were Murray Auchincloss, CEO of BP; Wael Sawan, CEO of Shell; Patrick Pouyanné, Chairman and CEO of TotalEnergies; and Kenichi Hori, President and CEO of Mitsui, according to a UAE government statement.

The executives were hosted by UAE President Sheikh Mohamed bin Zayed in a sit-down at the beachside Qasr Al Shati palace. Dr. Sultan Al Jaber, ADNOC Managing Director and Group CEO, signed the agreements with the other executives during a separate meeting with Sheikh Khaled bin Mohamed bin Zayed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council. 

“As natural gas demand continues to increase, this world-class project will enable us to provide more lower-carbon gas to meet growing demand today while helping the world transition to a cleaner energy future,” said Dr. Al Jaber, who continues to serve as President of COP 28, the United Nations climate conference that was held in Dubai last December.

FOOD HUB

Dubai is planning to build the “world’s largest” logistics hub for international food trade as it continues to diversify investment opportunities and build its case as a key port in the global supply chain. An agreement was signed on Wednesday between the Dubai Municipality and DP World to double the current size of the city’s fruit and vegetable market and link to more international destinations. The project will be developed and managed by DP World, one of the world’s largest port operators, and backed by the Dubai government. “Dubai aims to be a leading destination for markets, export, and re-export operations across various sectors, maximizing economic opportunities for investors in this field,” Sheikh Mohammed bin Rashid, UAE Vice President and Ruler of Dubai, said.

FEELING SPORTY

Saudi Arabia’s investments in sports have extended around the world from soccer and golf to boxing and tennis. Efforts at home by Crown Prince Mohammed bin Salman to build up a sporting culture of both athletes and fans are starting to take shape with a new trophy unveiled this week: the Global Sports Tower is set to be a prominent landmark within the Sports Boulevard complex in Riyadh. The 84,000 square-meter complex will have facilities for 30 different sports and, this being the Gulf, boast a couple of superlatives including the world’s tallest climbing wall and the world’s highest running track. Sports Boulevard is an ambitious example of Riyadh’s urban planning renaissance aimed at improving the livability of the Saudi capital. The greenway will extend over 80 miles connecting Wadi Hanifah in the West with Wadi Al Sulai in the East through a grid of green pathways for pedestrians, athletes, cyclists and even those traveling on horseback.

🌍 Power Circuit

Sheikh Hamdan bin Mohamed was named Deputy Chairman of the UAE Presidential Court for Special Affairs – which carries the rank of Minister. The appointment was made in a federal decree by President Sheikh Mohamed bin Zayed.

➿ On the Circuit

Amin Nasser, CEO of Saudi Aramco, is on the guest list for the wedding this weekend of Anant Ambani, the youngest son of Reliance Industries Ltd. Chairman and Asia’s richest man Mukesh Ambani. 

Timothy M. Kelly, President of Atlantis Global, said he is leaving the company after almost seven years as chief of the Dubai resort operator.

Omar Saud Al-Omar, Kuwait’s Minister of Commerce and Industry, led an event on Wednesday to open new offices for Google Cloud following an agreement with the company last year to help the government strengthen its computer technology, AI capabilities and cybersecurity.

Amos Hochstein, the White House energy expert who has become President Joe Biden’s key Middle East troubleshooter in trying to resolve conflicts in Lebanon and Gaza, is the subject of a New York Times profile.

🎶 Culture Circuit

🪨 Unearthing Culture: Neolithic communities in northwest Saudi Arabia were more sophisticated than previously believed, according to a new archaeological study published in the journal Levant. Research backed by the Royal Commission for AlUla has uncovered evidence of cattle herding, crafted jewelry and extensive trade networks, including commerce with distant communities in eastern Joran and along the Red Sea.

📷 Photo of the Day

🗓️ Ahead on The Circuit

July 2-Aug. 25, Riyadh, Saudi Arabia: Esports World Cup. An international competition for professional gamers with a $60 million prize pot. Boulevard City.

July 9-13, Sun Valley, Idaho: Sun Valley Conference. Sponsored by Allen & Co., the annual “summer camp for billionaires” brings together some of the world’s most influential leaders in finance, tech, entertainment and politics. Sun Valley Resort.

July 10-11, Riyadh, Saudi Arabia: Global EV and Technology Forum. The inaugural summit in Saudi Arabia gathers policymakers, companies and investors focused on sustainable urban mobility solutions. Riyadh International Convention & Exhibition Center.

July 15-17, Abu Dhabi, UAE: USA Basketball Showcase. The 2024 USA Basketball Men’s National Team will host the national teams of Australia and Serbia for three matches. Etihad Arena. 

July 15-26, Granada, Spain: ADIA Lab International Summer School. A course of lectures and case studies to explore the critical role of trust and safety in AI, examining the ethical, technical and societal implications of AI applications. University of Granada. 

July 16-19, Aspen, Colo.: Aspen Security Forum. Pentagon leaders, defense contractors and security officials from around the world meet for a four-day conference. Aspen Institute.

July 27-Aug. 4, Washington D.C. Mubadala Citi DC Open. Tennis tournament featuring nine of the world’s top 20 players. Rock Creek Park.

Aug. 12-15, Riyadh, Saudi Arabia: Saudi Food Expo. One of the kingdom’s largest trade shows for the food & beverage industry. Riyadh Front Exhibitions. 

Sep. 30-Oct. 2, Dubai, UAE: Future Hospitality Summit. The global conference for leaders in the hospitality industry expands this year at a new location with dedicated space for ESG planning, country pavilions and a larger exhibition area. Madinat Jumeirah.  

Weekly Circuit: Israeli startups shrug off Beyond Meat woes + Lebanon, Israel agree on gas

👋 Good Wednesday morning in the Middle East!

Tel Aviv prides itself as a bastion of vegan cuisine, so it’s not so surprising that the city has spawned a sizable collection of food-tech startups producing plant-based substitutes for meat. As The Circuit finds this week, they’re not daunted by the troubles of industry leader Beyond Meat, which has lost more than 90% of its stock market value over the past three years. Besides companies that are developing non-meat alternatives to farm-grown livestock, we take a look at those pioneering so-called cultivated meat, which is lab-grown from the cells of animals and doesn’t involve their slaughter.

Now that Lebanon and Israel have accepted a U.S.-mediated agreement to resolve their conflict over drilling rights to offshore gas reserves in the Mediterranean, both countries are assessing the potential for profit. Israeli Prime Minister Yair Lapid said yesterday he expects pumping gas from the Karish field to “inject billions” into the economy when it’s exported to a fuel-starved Europe. Lebanon, on the other hand, won’t benefit for at least five or six years from the Qana field as French energy giant Total and Italy’s Eni search for underwater gas deposits.

Oil prices topped the agenda at a meeting in St. Petersburg yesterday between Russian President Vladimir Putin and Sheikh Mohammed bin Zayed Al Nahyan, the UAE president. The Russian leader called attention to Emirati support for last week’s decision by the OPEC+ group to cut oil production by 2 million barrels a day. Now the question arises whether the UAE will also feel the wrath of the Biden administration, which said the U.S. will “reevaluate” the already rocky U.S.-Saudi relationship in light of the oil cut it tried to head off.

Abu Dhabi was in hoops heaven last week as the NBA brought preseason play to the UAE capital. Not hard to spot was 7-foot-1 former superstar Shaquille O’Neal, who shot baskets on an outdoor court near the Etihad Arena, where the Atlanta Hawks swept the two-game series with the Milwaukee Bucks.

Welcome to The Weekly Circuit, where we cover the Middle East through a business and cultural lens. Read on for the stories, deals and players at the top of the news. Please send comments and story tips to [email protected].

The next issue of the The Weekly Circuit will appear Wednesday, Oct. 19, as the holiday season wraps up. The newsletter will return afterwards to its regular publishing schedule on Mondays.

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FUTURE OF FOOD

Eager Israeli food startups shrug off Beyond Meat’s market woes

When Beyond Meat Inc. went public in May 2019, investor excitement over the sizzle of its plant-based burgers sent the stock soaring, giving the California-based company a market value of almost $14 billion. Three years later, the shares have fallen more than 90%, fueling concern about whether consumer demand for meat alternatives will live up to the expectations they’ve generated, Linda Gradstein reports for The Circuit.

Cultivated meat: In Israel, home to a thriving vegan culinary culture and more than 400 food-tech startups, the prevailing outlook is optimistic. While several Israeli companies are producing plant-based versions of beef, chicken and fish – as well as eggs and dairy products – another frontier of so-called cultivated meat, which is made from lab-grown animal cells, is gaining traction. “Plant-based meat as it is today won’t get people to stop eating meat,” Guy Nevo Michrowski, CEO of Israel’s ProFuse Technology, told The Circuit. “The only thing that will get them to switch is something that really tastes like meat, and that is what is already happening.”

Raising funds: ProFuse raised $2.5 million last month in a funding round led by New York’s Green Circle. Investors included Tnuva, one of Israel’s top two food producers; beverage-maker Tempo; OurCrowd, a Jerusalem-based platform for crowdfunded venture capital investment; and Newport Beach, Calif.-based Finistere Ventures.

Changing calculus: ProFuse’s technology, which nurtures the cells in a nourishing liquid, was developed over six years of research at Israel’s Weizmann Institute of Science. The process can potentially enable the large-scale manufacture of meat in bioreactors at a cost similar to producing farm-grown beef, chicken and pork, Stu Strumwasser, managing director of Green Circle, said last month after the new investment was announced. ProFuse’s method “may substantially accelerate that process and thus fundamentally change the calculus for the commercialization of lab-grown meat,” he said.

Lab-grown steak: Another Israeli company working on cultivated meat is Aleph Farms, which gained fame for producing the world’s first lab-grown steak. With actor Leonardo DiCaprio among its investors, Aleph Farms raised $105 million last year to bring its steaks to market by 2023. The funding round was led by DisruptAD, the venture capital platform of the Abu Dhabi sovereign wealth fund ADQ, and the Growth Fund of Greenwich, Conn.-based L Catterton, the largest global consumer-focused private equity firm.

Gulf interest: The United Arab Emirates and Bahrain, which import the vast majority of their food, have been developing partnerships with Israeli food-tech companies since the 2020 Abraham Accords normalized relations between Israel and the two Gulf states. Aleph Farms and DisruptAD have discussed building a manufacturing facility in Abu Dhabi to produce cultivated meat products and sell them across the Gulf.

Read the full story here.

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