The Daily Circuit: Dubai finance hub grows + Mideast leaders in Munich

👋 Hello from the Middle East!

Today we’re looking at the Middle East leaders arriving in Germany for this weekend’s Munich Security Conference, Abu Dhabi’s “twin city” deal with Chinese tech hub Shenzhen, Mubadala Capital’s investment in a Boston-based blockchain fund and Morocco’s role as farmer’s market for Europe. But first, Dubai reveals the 2023 numbers for its financial hub.

Dubai welcomed a record number of companies to its financial center in 2023 as competition heats up in the Gulf to attract businesses. The Dubai International Financial Center, better known as DIFC, saw a 34% increase in new registrants last year, now with 41,597 workers and 5,533 companies, according to new figures released Thursday.

“Our aspirations are just beginning,” Sheikh Maktoum bin Mohammed, First Deputy Ruler of Dubai and Deputy Prime Minister for Finance and Economic Affairs, wrote on X on Thursday. “In the coming years, there will be plans for expansion and development of policies and legislation.”

The DIFC’s development aligns with the master plan for Dubai’s economic growth known as D33 that was introduced last year. D33 aims to double the size of Dubai’s economy, with a target of reaching 32 trillion dirhams ($8.7 trillion) by 2033 that would put it among the top global cities. Dubai is leading regionally, with the DIFC a model for financial free zones in the Gulf, which are gaining in popularity amid economic diversification efforts that aim to boost foreign investment and trade. Opened in 2004 — the same year construction began on the Burj Khalifa next door — DIFC has poured money into developing an independent regulatory framework, a financial exchange and attractive places to do business to bring in financial firms and cut down on the cost of doing business in the region.

Saudi Arabia is taking a more direct approach: The kingdom now requires international companies vying for big contracts with Saudi Arabia to relocate their corporate headquarters to the kingdom. The move is a square-off with the UAE, which has long held the majority of regional headquarters and attracted the lion’s share of corporate spending. 

SECURITY SUMMIT

Many of the regional challenges discussed in Dubai at the World Governments Summit earlier this week will come under broader examination starting today at the Munich Security Conference. Leaders from across the globe will wrestle over the weekend with the questions of how to keep the Red Sea safe for shipping, broker a ceasefire in the Gaza Strip and end the Russia-Ukraine war. Among those coming to Germany from the Middle East are Jordan’s King Abdullah II, Qatari Prime Minister Sheikh Mohammed bin Abdulrahman, Saudi Foreign Minister Prince Faisal bin Farhan, Israeli President Isaac Herzog and Palestinian Authority Prime Minister Mohammed Shtayyeh. Also present in Munich is Dr. Sultan Al Jaber, the UAE’s Minister of Industry and Advanced Technology, CEO of the ADNOC oil company and President of last year’s COP 28 climate conference.

TWIN CITIES

Abu Dhabi has agreed to a knowledge-sharing partnership with China’s southern metropolis of Shenzhen to collaborate on smart city projects in areas like infrastructure, urban planning, mobility and autonomous systems. The “twin city” deal, with one of China’s biggest technology hubs, was done during the inaugural Abu Dhabi x Shenzhen Innovation Forum (ADSZIF) held in Shenzhen last month.

🤖 AI Sandbox: The UAE will embrace the challenge made by OpenAI CEO Sam Altman this week to become a “regulatory sandbox” and testing ground for new AI technology, Minister of State for Artificial Intelligence Omar Al Olama told Bloomberg.

🛫 Europe-Bound: Flydubai is expanding its flight network to establish new routes to Basel, Switzerland; Riga, Latvia; Tallinn, Estonia and Vilnius, Lithuania.

🏭 Factory City: Egyptian Trade and Industry Minister Ahmed Samid met with members of a Turkish business delegation who want to build an industrial city in Egypt that would produce machinery, textiles, aluminum and cars, Al Dustour newspaper reports.

🥗 Veggie Vendor: Morocco was the European Union’s top supplier of fresh fruits and vegetables in 2023, coming out ahead of South Africa and Peru, according to Eurostat data.

↪↩ Closing Circuit

🍞 Milling Shares: Saudi Arabia’s Modern Mills for Food Products Co. will seek to raise $314 million in an IPO on the Tadawul Stock Exchange for 30% of the Jeddah-based company’s shares.

🔎 Deepfake Detector: Clarity, an Israeli startup that can quickly identify deepfakes, raised $16 million in a seed funding round led by Walden Catalyst Ventures and Bessemer Venture Partners.

🛢️ Customer Service: Luxembourg-headquartered Tenaris, a steel pipe manufacturer and supplier, opened a $60 million industrial complex in Abu Dhabi to directly serve ADNOC.

🌍 Power Circuit

Egyptian President Abdel-Fattah El-Sisi met with Brazilian President Lula da Silva on Thursday at the Ittihadiya Palace in Cairo, where they discussed a range of issues including Egypt’s recent entry into the BRICS intergovernmental bloc.

Ruler of Dubai Sheikh Mohammed bin Rashid issued directives to govern next year’s World Governments Summit, setting the conference dates for Feb. 18-20, 2025.

➿ On the Circuit

How the latest album by rapper and provocateur Kanye West came together in a makeshift studio on Dubai’s Palm Jumeirah is explored in a new feature in The National.

Supermodel and entrepreneur Naomi Campbell and fashion entrepreneur Umar Kamani plan to launch a new talent management company based in Dubai, Arabian Business reports.

🎶 Culture Circuit

🎥 Red carpet: The Middle East premiere for “Dune: Part Two” will be held in Abu Dhabi on Sunday. The second installment of the sci-fi epic, featuring Timothee Chalamet and Zendaya, is set for wider release in the region on February 29. “Dune” and “Dune: Part Two” are among at least 150 productions that have used Abu Dhabi as a location in recent years, including films from the “Mission Impossible,” “Star Wars” and “Fast & Furious” franchises.

📷 Photo of the Day

Dr. Sultan Al Jaber, the UAE cabinet minister and oil executive who served as President of last year’s COP 28 climate conference in Dubai, meets Oracle Corp. CEO Safra Catz today at the Munich Security Conference, where they talked about integrating artificial intelligence technology to help combat global warming. (COP28/Instagram)

📅 Circuit Calendar

Feb. 11-17, Doha, Qatar: Qatar TotalEnergies Open 2024. Professional women’s tennis tournament now in its 22nd edition. International Tennis and Squash Complex.

Feb. 16-18, Munich, Germany: Munich Security Conference. Defense industry, foreign policy and national security leaders gather for annual summit. Hotel Bayerischer Hof.

Feb. 19-20, Riyadh, Saudi Arabia: Saudi Capital Markets Forum. A gathering of government ministers, banks and local publicly traded companies to discuss integrating emerging markets with established financial systems. King Abdullah Financial District.

Feb. 21-22, Dubai, UAE: Step Conference. The Dubai edition of the leading tech festival for emerging markets. Internet City.

Feb. 22-23, Miami Beach, FL: FII Priority Miami. A summit on disruptive technology and investment trends hosted by the Future Investment Initiative Institute. Faena Hotel Miami Beach.

Feb. 26-29, Doha, Qatar: Web Summit Qatar. A Middle East edition of the technology crowd mega-event, gathering investors, entrepreneurs and business leaders. Doha Exhibition and Convention Centre. 

Feb. 28-29, Abu Dhabi, UAE: Investopia. A gathering of investors hosted by SALT and Investopia, an investment platform launched by the UAE Ministry of Economy and backed by Mubadala and the Department of Economic Development. St. Regis Saadiyat. 

Feb. 29-March 2, Sakhir, Bahrain: Formula 1 Gulf Air Bahrain Grand Prix. Bahrain International Circuit.

March 1, Abu Dhabi, UAE: Abu Dhabi Family Office Summit. One of the largest meetings in the region for family office leaders and investors. Saadiyat Rotana.  

March 4-7, Riyadh, Saudi Arabia: LEAP. A global technology conference for developers, startups, investors, C-suite and media. King Abdul Aziz International Conference Center.

March 5-6, Doha, Qatar: International LNG Forum. Gathering of industry leaders and key stakeholders to discuss the future of gas in a key export market. InterContinental Doha Beach. 

March 7-9, Jeddah, Saudi Arabia: Formula 1 STC Saudi Arabian Grand Prix. The Jeddah Corniche Circuit.