The Daily Circuit: Saudi PIF seals Heathrow deal + Egypt plans 10 IPOs
👋 Hello from the Middle East!
In today’s Daily Circuit, we’re looking at NEOM’s robotic construction deal, ADIA’s effort to take an Indian green energy supplier private, Egypt’s IPO agenda for 2025 and Ray Dalio’s concerns about AI. But first, Heathrow Airport adds a Saudi owner.
Saudi Arabia’s Public Investment Fund concluded its yearlong quest to buy a chunk of London’s Heathrow Airport, joining an ownership group that includes the sovereign wealth funds of Qatar and Singapore.
The PIF will own a 15% stake in FGP TopCo, the holding company that controls Europe’s busiest airport, after the deal was finalized on Thursday. The Saudi fund bought into Heathrow at the same time that Paris-based private equity firm Ardian acquired a 22.6% stake in the airport, which has a market value of about 8.7 billion pounds, or $11 billion.
“Heathrow acts as a crucial gateway to the world, and we look forward to supporting Heathrow’s management in its efforts to secure the sustainable growth of the airport and to continue to maintain its position as a global aviation hub,” Turqi Al-Nowaiser, PIF Deputy Governor and Head of International Investments, said in a statement.
The Saudi fund, which manages some $930 billion in assets, has acquired a range of holdings in the U.K. that includes the Newcastle United football club and large stakes in Selfridges department store and the Rocco Forte luxury hotel group.
Among Heathrow’s owners are the Qatar Investment Authority, which holds a 20% interest, Singapore’s GIC sovereign fund and the Australian Retirement Trust.
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📰 Developing Stories
GROWTH ENGINES
Now that Saudi Arabia has gotten FIFA approval to host the 2034 World Cup, the kingdom is anticipating a significant boost for its economy. Among the expected growth engines through the next 10 years of preparation for the international soccer extravaganza are major investments in real estate, infrastructure, job creation and tourism, The National reports, Last month, Saudi Arabia unveiled design plans for its 92,000-capacity King Salman Stadium in Riyadh, one of 15 stadiums that will be used for the World Cup. The country also plans to build 185,000 new hotel rooms to accommodate the flood of soccer fans expected from across the globe.
ILLICIT CAPITAL
The UAE is bolstering efforts with the U.S. to combat money laundering. During a four-day mission to Washington, Emirati investigators met with counterparts from the FBI, the IRS, the World Bank and other U.S. and international bodies. The visit was arranged by the UAE’s General Secretariat of the National Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illicit Organizations. Hamid Saif AlZaabi, the agency’s leader, said discussions focused on how to address increasingly complex illicit financial flows. The UAE was removed earlier this year from the so-called Gray List maintained by the Paris-based Financial Action Task Force that battles international money laundering.
💲 Sovereign Circuit
Public Investment Fund: PIF-owned NEOM signed an investment agreement with Copenhagen-based GMT Robotics aimed at speeding up construction projects within the Saudi mega-development through the use of robotics.
Abu Dhabi Investment Authority: The UAE sovereign wealth fund and other investors have offered to take ReNew Energy Global private in a deal that values the Indian sustainable power firm at $2.8 billion, Reuters reports.
↪↩ Closing Circuit
🔌Electric WIre: Saudi Electricity Co. secured a $3.6 billion loan from a syndicate of international banks that include Bank of China, State Bank of India, First Abu Dhabi Bank, Dubai Islamic Bank, and Saudi Investment Bank.
🌬️Wind Fund: The OPEC Fund has granted Egypt a $40 million loan to build two wind farms with a combined 1.1 GW capacity in the Gulf of Suez.
💸Digital Asset: Emirates NBD, a UAE based bank, has invested in Zodia Custody, an institution digital asset custodian to enhance the bank’s digital ambitions and FinTech expertise through this strategic partnership.
🔒 Cyber Sale: Fortinet, the California-based cybersecurity powerhouse, bought Israeli startup Perception Point for about $100 million, Calcalist reports
🗣 Circuit Chatter
📈 Going Public: Egypt will hold IPOs for at least 10 state-owned companies next year, including Wataniya Co., Safi Co., Silo Food Co, and wind farm Gabal El Zeit, according to Prime Minister Mostafa Madbouly.
🛡️ Insurance Saga: ADGM announced plans to establish the Insurance Association to advance the sector by fostering collaboration, professional standards, and industry innovation.
💳 Digital Payments: Abu Dhabi Investment Office and Mastercard signed a partnership to launch a Digital Partnership Program aimed at improving government services through advanced payment technologies.
🌍 Power Circuit
Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, inaugurated CMA Terminals Khalifa Port, an $845 million container terminal managed by a joint venture between CMA Terminals and Abu Dhabi Ports.
Sheikh Abdullah bin Zayed, UAE Deputy Prime Minister of Foreign Affairs, and Indian Foreign Affairs Minister Dr. Subramaniam Jaishankar presided together over the fourth Strategic Dialogue between the two countries in New Delhi on Thursday. He also received a phone call from Abbas Araghchi, Iran’s Minister of Foreign Affairs.
➿ On the Circuit
Omar Alzaim was named CEO of Goldman Sachs’ operations in Saudi Arabia, where the investment bank was one of the first Wall Street firms to establish a regional headquarters.
Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund firm, warns in an interview with The National about artificial intelligence’s future impact on society, particularly on taking away people’s jobs and being used in war. Nevertheless, Dalio calls AI “the greatest invention in all history.”
🎶 Circuit Culture
🎼 Tuning Up: The UAE is recruiting musicians for it new national orchestra. In an announcement on Friday, the government said it will soon conduct auditions for violinists, piano players, trombonists, singers and all the other members it needs to create the UAE National Orchestra. Heading the project is Noura bint Mohammed Al Kaabi, the former Culture Minister who now serves as Minister of State at the Ministry of Foreign Affairs.
📷 Photo of the Day
📅 Circuit Calendar
Dec. 13-15, Abu Dhabi: World Policy Conference. This exclusive conference brings together top-level decision-makers, academics and opinion leaders who are invited based on their expertise and international exposure. Park Hyatt Saadiyat Island.
Dec.16-20, Abu Dhabi. AIMS Conference. In its 14th edition, the conference highlights mathematical and scientific advancement with a focus on women scientists. ADNEC.
Jan. 7-9, Dubai. Arab Plast International Road Show. This event is a trade show for people working in plastic, petrochemicals and recycling materials. Dubai International Exhibition and Convention Center.
Jan. 7-9, Dubai. Dubai International Pharmaceuticals and Technologies Conference and Exhibition. The event brings people from the pharma chain to network, share knowledge and deal make. Dubai International Exhibition and Convention Center.
Jan. 9-13, Abu Dhabi. International Renewable Energy Youth Forum. Held on the sidelines of IRENA’s Energy Forum. Masdar City.
Jan. 11-13, Abu Dhabi. International Renewable Energy Forum. The Assembly is the Agency’s ultimate decision-making authority where Heads of State/Government, Ministers and global stakeholders meet to discuss and advance the energy transition. Masdar City.
Jan. 11-13, Dubai. The 1bn Followers Summit. This event covers the world’s top creators and entertainers. Jumeirah Emirates Towers.
Feb. 3-6, Dubai. Medlab Middle East 2025. The show attracts exhibitors whether global giants or emerging startups to discuss digital health solutions. Dubai World Trade Centre.