ADNOC’s Al Jaber pledges sixfold increase in new U.S. investments
Dr. Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology and Chief Executive of the state-owned ADNOC oil company, pledged to boost investments in the U.S. by sixfold during a conference in Washington.
Calling for a global overhaul of national power grids to accommodate the massive demands of artificial intelligence, Al Jaber told the Atlantic Council Global Energy Forum on Tuesday that the industry must upgrade its technology while utilizing the broadest menu of resources, including oil, gas, nuclear and renewables.
“You can’t run tomorrow’s technology on yesterday’s grid,” Al Jaber said. “Many of our grids were built for a completely different century.”
XRG, ADNOC’s new international investment arm, plans to inject some $440 billion into the U.S. energy industry over the next decade, Al Jaber said.
The fund is an investor in Houston, Texas-based NextDecade’s Rio Grande LNG export facility while Abu Dhabi renewable energy company Masdar, partly owned by ADNOC, has developed 5.5GW of production and storage capacity “from coast to coast,”, Al Jaber said.
Touching on the war between Israel and Iran, Al Jaber called on all parties to show restraint. “The United Arab Emirates stands for dialogue, for de-escalation and diplomacy,” he said.
“We reaffirm our belief in peace over provocation, calm over confrontation and progress through partnership, and only partnership,” Al Jaber said.
Saudi Arabia to spend $2.3 billion on mining gold and phosphates
Saudi Arabia’s Ma’aden mining company is preparing to make major new investments this year to draw gold and phosphates from the kingdom’s vast desert territory.
The Saudi government plans to spend close to $2.3 billion on mining projects for the precious metal and minerals as part of its Vision 2030 blueprint for diversifying the economy and reducing its reliance on oil revenue, Zawya reports, citing the Almal newspaper.
Saudi Arabia controls more than 320 tons of gold reserves in local and foreign banks, the largest in the Arab world and 18th worldwide. Those reserves, together with gold and other metals underground, are estimated to be worth more than $2.5 trillion.
Saudi Arabia controls more than 320 tons of gold reserves in local and foreign banks, the largest in the Arab world and 18th worldwide. Those reserves, together with gold and other metals underground, are estimated to be worth more than $2.5 trillion.
The Gulf’s Startup Ecosystem: Status, Stars and Support
The Gulf has emerged as a dynamic hub for startups, attracting global attention with its investments, government-backed initiatives and an increasing number of venture capital funds.
Here’s a glance at the region’s early-stage startup ecosystem, highlighting its growth over the past decade and the supportive frameworks fueling entrepreneurial growth.
In 2023, early-stage funding across pre-seed, seed, and Series A rounds surpassed $500 million across the region, a 12-fold increase from 10 years ago. Overall, VC funding in the Gulf rose in 2023 – despite a global decline – with Saudi Arabia overtaking the UAE as the region’s top recipient of VC investments.
Historically, the UAE and Saudi Arabia dominate these investments, with the UAE’s fintech and healthtech startups leading recipients of VC funds. Alma Health’s $10 million Series A exemplifies the momentum, alongside seed success stories like Ejari closing a $14.7 million seed round in October.
The region now boasts around 60 to 80 active VC funds, including heavyweights like Mubadala Ventures in the UAE and STV in Saudi Arabia. Qatar and Oman are also fostering growth with targeted initiatives such as Qatar’s QBIC and Oman’s Innovation Hub.
Notable Exits and Milestones
Growth opportunities and the burgeoning vigor of the ecosystem can be traced through the increasing number of milestone moments for homegrown startups.
Careem: Acquired by Uber for $3.1 billion in 2019, becoming a benchmark for regional unicorns.
Souq.com: Amazon’s $580 million acquisition of this e-commerce giant was pivotal in connecting global investors with the region.
Jahez: The Saudi food delivery app made headlines with its $2.4 billion IPO in 2021.
Floward: online flower and gift delivery platform, raised $156 million in a 2023 pre-IPO Series C round led by Aljazira Capital, Rainwater Partners, and STV marking the largest deal in Kuwait in 5-years.
Government-Backed Initiatives
The GCC owes much of its startup boom to forward-thinking government initiatives. These programs combine entrepreneurship training with access to resources, capital, and world-class expertise among other benefits for founders
Each country has unique offerings and accelerator programs. Here is a brief list of some of the programs
Hub71 in Abu Dhabi is a cornerstone of the UAE’s Ghadan 21 program. The technology park provides startups with office space, visa assistance, access to investors, and industry-specific accelerator programming making it a magnet for global tech talent.
Dubai Silicon Oasis: This Free Trade Zone supports digital transformation startups, offering 100% foreign ownership and tax incentives. It also hosts the Dubai Technology Entrepreneur Campus which is home to over a thousand startups from 90 countries.
Public Investment Fund: Saudi Arabia’s PIF, through programs like Aramco’s Wa’ed Ventures – supports the government’s Vision 2030 goals by investing heavily in accelerators and incubators and fostering technological innovation.
University-Led Programs:
King Abdullah University of Science and Technology (Saudi Arabia): Known for fostering sustainability-focused ventures.
Khalifa University (UAE): Offers seed funding and mentorship via its innovation center.
Qatar University: Promotes entrepreneurial activity through workshops and funding.
Sultan Qaboos University (Oman): Aligns its programs with the Omani government’s Vision 2040 program to emphasize sustainable development.
These initiatives combine regulatory easing, financial incentives and innovation hubs to nurture startups. Governments are aggressively rolling out startup visas to attract talent, with the UAE leading the way through its “Golden Visa” program. Saudi Arabia’s Entrepreneurship License simplifies startup formation, further demonstrating the region’s commitment to economic diversification.
Despite remarkable growth, the GCC faces the same challenges as other developing ecosystems. Though there have been overall increases in early-stage VC funds, there is still limited access to growth capital in the region and cross-border expansion can be logistically complicated for startups.
Dubai creates quality-of-life office as competition to attract talent heats up
In a bid to rouse would-be expats from their roosts in London, New York and Singapore, Dubai has created a new office dedicated to improving the quality of life in the Middle East’s wealthiest city.
The plan tracks with a growing trend among Gulf economies to prioritize investments in livability as competition for knowledge workers – financiers, tech engineers and healthcare workforces – heats up. Populations are on the rise in cities across the region including Dubai, as well as Abu Dhabi, Doha and Riyadh.
Under directives from Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, and Sheikh Hamdan bin Mohammed bin Rashid, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, the Dubai Quality of Life Strategy 2033 was approved on Tuesday with the aim of turning Dubai “into the world’s best city to live in.”
Encompassing 200 projects and 1,000 live events aimed at drawing stars and sports teams, Dubai will also focus urban plans on residents’ ability to access essential services within a 20-minute journey — a distinction cities like Paris take pride in.
The plans will rely heavily on private sector participation, according to a statement.
Riyadh is undergoing a similar effort, pouring billions of dollars into beautifying the kingdom’s capital with parks, refurbished boulevards and new culture and leisure spaces as society opens up in the long-conservative kingdom.
