TAQA looking to acquire U.S. companies amid expansion drive

Abu Dhabi National Energy Co., the UAE capital’s omnipresent power and water utility known as TAQA, may be getting ready for a shopping spree in the U.S.

The government-owned company, whose largest shareholder is sovereign wealth fund ADQ, will focus its current plans for international expansion in the American arena, CEO Jasim Hussain Thabet tells Reuters.

“The U.S. is a key market for us,” Thabet said. “If the right opportunity presents itself for TAQA, we would be pursuing that.”

Dr. Sultan Al Jaber, the UAE’s Minister of Industry and Advanced Technology as well as CEO of the national oil company ADNOC, told President Donald Trump during his visit two weeks ago that the government plans to boost energy investments in the U.S. over the next decade to $440 billion.

TAQA, which raised $1.8 billion from a bond sale last October, would generally prefer to acquire a fully integrated company with generation, networks and “a pipeline of growth,” Thabet said.

The company’s Masdar unit last year acquired a 50% stake in U.S. renewable energy firm Terra-Gen.

The Daily Circuit: Trump energy secretary meets MBZ + Masdar’s Greek buyout

👋 Hello from the Middle East!

In the Daily Circuit today, we’re looking at Masdar’s buyout of Terna Energy in Greece, Mubadala’s deal with Kimmeridge to pave its way for new U.S. acquisitions, Apple’s new hiring drive in the Gulf and Tesla’s debut in Saudi Arabia. But first, the Trump administration’s energy secretary lays the groundwork for a presidential tour of the region.

U.S. Secretary of Energy Chris Wright kicked off his tour of the Gulf this week with a palace visit in Abu Dhabi and a tour of the UAE’s state oil company.

Wright, setting up parts of President Donald Trump’s trip to the region that is expected next month, was received by UAE President Sheikh Mohamed bin Zayed on Thursday for talks that focused on joint investments in artificial intelligence and other technologies, The National reports.

The U.S. energy chief, founder of an oil fracking company, also paid a visit to the Abu Dhabi headquarters of ADNOC, where he said partnerships with the UAE, Saudi Arabia and Qatar were key to meeting growing global demand for oil and gas. He also plans to visit Riyadh and Doha during the trip.

“You’re going to see a lot of energy cooperation between the United States and the UAE,” Wright told reporters. “You’re going to see a huge cooperation on AI.”

Also meeting Wright at Qasr Al Shati Palace in the UAE capital were Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi; Dr. Sultan Al Jaber, the ADNOC Chairman and Minister of Industry and Advanced Technology; Sheikh Saif bin Zayed, Deputy Prime Minister and Minister of Interior; Suhail Al Mazrouei, Minister of Energy and Infrastructure; and Yousef Al Otaiba, Minister of State and the UAE’s Ambassador to Washington.

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The UAE is making an attempt to prevent the squabbling between heirs that often damages family businesses, which make up 90% of the country’s private companies. Economy Ministry officials recently met with the heads of prominent business families to encourage them to improve succession planning by establishing formal structures around their wealth, Bloomberg reports. While there are no official estimates, U.S.-based Dash Venture Labs projects that the UAE’s richest families will control a combined $1 trillion by the end of next year. The increased involvement of family business in private equity and venture capital deals – riskier than the supermarkets and car dealerships favored by previous generations – has made it critical to introduce more formalized internal governance and processes, the news agency said.

MISSING MUSK

Tesla kicked off operations in Saudi Arabia this week with a display of its Model Y sedan and Cybertruck but without its multibillionaire founder. The opening of a sales office in Riyadh appeared to signal that Elon Musk and the Public Investment Fund have put aside a 10-year feud, The National reports. Though Musk was a no-show at the Tesla debut on Thursday, he’s planning to visit the kingdom next month and has appeared with PIF Governor Yasir Al Rumayyan and U.S. President Donald Trump while working as White House adviser on government efficiency. The PIF is the majority owner of Lucid Motors, a smaller California-based EV maker that competes with Tesla. 

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U.S. Energy Secretary Chris Wright meets with UAE President Sheikh Mohamed bin Zayed at  Qasr Al Shati Palace in Abu Dhabi on Thursday.

The Daily Circuit: Saudi jobs slowdown + Masdar’s Spanish solar deal

👋 Hello from the Middle East!

In the Daily Circuit today, we’re looking at Masdar’s solar purchase in Spain, the minority interest acquired in Khazna data centers by MGX and Silver Lake, Abu Dhabi-based Agthia’s acquisition of Riviere, and customers lining up for a $49 million penthouse in the Burj Khalifa. But first, job growth is slowing in Saudi Arabia.

Across-the-board budget cuts at companies owned by Saudi Arabia’s Public Investment Fund are likely to chill employment growth in the kingdom amid declines in oil revenue and foreign investment.

After hitting close to 10% in 2022, growth in recruitment for jobs may slow to 3% by the beginning of next year, a report by the consulting firm JLL Middle East predicts.

The $925 billion sovereign wealth fund has ordered spending cuts across all of its portfolio companies, leading to layoffs, hiring freezes and project delays. Nearly 2 million expatriates have joined the workforce in Saudi Arabia over the past two years, according to government data.

The PIF’s downsizing order reflects the kingdom’s widening budget deficit, which has developed through a decline in both the volume and value of oil exports.

The budget deficit and employment slowdown could also pose challenges for Saudi Arabia as it builds ambitious projects such as Neom and prepares to host major global events including Expo 2030 and the FIFA World Cup, JLL notes.

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SKY PALACE

A duplex penthouse in Dubai’s Burj Khalifa skyscraper that carries a $49 million asking price is attracting interest from American buyers, including basketball players, boxers and Nascar drivers. The apartment on the 107th and 108th floors of the world’s tallest building is unfinished, with its concrete floors and wraparound glass windows waiting to be fit out by its new owner, real estate agent Asad Khan tells Business Insider. Measuring 21,000 square feet, the apartment is being marketed as a “Sky Palace,” with amenities that include a private elevator, an indoor pool and 12 parking spaces. The 163-story Burj Khalifa, which was completed in 2010 by Emaar Properties, stands 2,722 feet and contains a mixture of office, residential, hotel, restaurant and retail space.

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Masdar chases European green energy projects after Endesa deal

UAE renewables company Masdar says it will continue to chase green energy projects in Europe, where high interest rates and rising debt costs are pushing utilities to sell stakes in wind farms and solar plants.

Masdar, which is owned by Mubadala, ADNOC and Abu Dhabi National Energy Co., has a goal of reaching 100 gigawatts of capacity in its portfolio by 2030 and has been quick to pounce on European projects that will help it rapidly scale up.

Last week it reached an $885 million agreement with Madrid-based Endesa to buy a 49.9% share of 48 solar farms with 2 gigawatts of capacity.

And in June it agreed to buy a majority stake in Greece’s biggest renewables company Terna Energy, in a deal that valued the company at $3.4 billion.

Masdar CFO Mazin Khan told Reuters that “normalization” of asset prices had created big opportunities in Europe and the Endesa deal was just a first step in its investment plans. 

The Daily Circuit: Gulf trade on the Potomac + Masdar scouts Europe

👋 Hello from the Middle East!

Today in The Daily Circuit, we’re looking at Dubai’s $8.2 billion road drainage project to prepare for future floods, Saudi Arabia’s new crown as the world’s biggest construction site, Masdar’s hunt for European green energy acquisitions and Matt Dalio’s bid to give Emirati kids the mojo to become gaming developers. But first, schmoozing about U.S.-Gulf trade on the banks of the Potomac.

Gulf trade officials, executives and entrepreneurs have descended on suburban Washington D.C. this week for the SelectUSA Investment Summit, the U.S. government’s annual dog-and-pony show aimed at drumming up business partnerships around the world.

The four-day conference in National Harbor, Maryland, which drew close to 5,000 participants last year, kicked off on Sunday with a smorgasbord of panel discussions that included a “data dive” into foreign direct investment into the U.S. from the Middle East and Africa.

Representing the UAE at the U.S. Commerce Department-sponsored confab, is Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade, and executives from some 35 Emirati companies. “With over $1 trillion invested across America, the UAE has already ‘Selected the USA,’ and we look forward to deepening this important trade and economic relationship,” Al Zeyoudi said in a statement.

Saudi Arabia, which generated $34 billion in bilateral trade with the U.S. last year, is active both on the summit floor and the sidelines, where officials from Riyadh attended meetings on Sunday held by the Saudi-U.S. Trade and Investment Framework Agreement Council.

Among other events surrounding SelectUSA are a session titled “Trade Opportunities between the Middle East and the United States,” which features participation from U.S. ambassadors stationed in Gulf countries, and the fifth GCC-U.S. Trade and Investment Dialogue Forum.

STORMY WEATHER

After an April storm that flooded the city, paralyzed its roads and shut down airports, Dubai is determined not to be caught helpless again. Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, announced plans on Monday to build a drainage network he described as “the largest rainwater collection system in the region.” The $8.2 billion project will increase Dubai’s drainage capacity by 700% and “enhance the emirate’s readiness to face future climate challenges,” he said in a government statement. The freak storm, which struck both the UAE and Oman, killed at least two dozen people, many of them trapped in their cars as the water collected in deep pools on the roads.

CRANE CAPITAL

Saudi Arabia is on track to become the world’s largest construction market as the kingdom pours billions of dollars into new urban hubs and tourism destinations underpinning its economic diversification strategy, according to Knight Frank. Since Vision 2030 was laid out eight years ago, the country has announced projects worth more than $1.25 trillion spanning residential properties in the capital Riyadh to far-flung mega-projects like Neom, the real estate consultancy group found. The total construction output value is forecast to reach $181.5 billion by the end of 2028, up almost 30% from 2023 levels, the London-based firm said in a report published Monday. The construction boom is down to Crown Prince Mohammed bin Salman’s mandate to transition the oil-dependent economy to become a magnet for skilled workers and foreign tourists. “We are currently witnessing a historical transformation unfolding in Saudi Arabia with construction projects standing out in their design scale and value,” said Mohamed Nabil, regional partner and head of project and development services for the Middle East and North Africa at Knight Frank.

🕹️ Game Play: A new video competition launched in the UAE will aim to celebrate cultural heritage while inspiring the next generation of game developers across the emirates. The UAE Game Makers Competition 2024 was organized by Matt Dalio, the chief executive of Endless Studios and son of billionaire hedge funder Ray Dalio, in collaboration with government defense entity Tawazun Council and geospatial AI company Bayanat. Participants are invited to integrate UAE cultural elements into their game designs, competing for a total prize pool of Dh100,000 ($27,230). Dalio told The National that the mission was to teach skills for the digital economy. “We do so by harnessing this generation’s enthusiasm for games. By teaching participants to build games, we teach them to build software.”

🍽️ Dining with the Dead: A fine dining restaurant in Dubai has used AI deepfake technology to resurrect the famed late chef Paul Bocuse. Krasoa, co-founded by digital artist Anton Nenashev, has brought Bocuse “back to life” to describe items on its menu in its eight-course “Imaginary Futures” experience.

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🗓️ Circuit Calendar

June 23-26, National Harbor, Maryland: SelectUSA Investment Summit. The highest profile event in the U.S. to facilitate business investment by connecting thousands of investors, companies, economic development organizations and industry experts to make deals. Gaylord National Resort and Convention Center.

June 26-30, Tan-Tan, Morocco: Tan-Tan Moussem Cultural Festival. Annual gathering held since 1963 by more than thirty tribes from southern Morocco, with participation from the UAE and other Middle East nations.

July 1-3, Milan Italy: The Global Energy Transition Congress & Exhibition. An event bringing together thought leaders, innovators, and industry experts to address the challenges of accelerating the global energy transition. Milano Convention Centre.

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

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. 

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.