Oman eyes tourism, tech as it seeks emerging market status

Oman’s Muscat Stock Exchange is preparing for up to three IPOs in 2026 as part of efforts to boost listings and pursue emerging market status.

Working with the Oman Investment Authority, the bourse aims to bring new sectors like tourism and information technology to market, with companies such as Oman India Fertiliser considering IPOs. 

Fundraising has slowed this year after a record $2.5 billion in 2023, but the government is offering incentives such as tax waivers and priority in tenders to attract private firms, the exchange’s CEO, Haitham Al Salmi, told Bloomberg. 

The planned merger of Oman’s Sohar International Bank and Ahli Bank is seen as crucial to market capitalization, though the exchange is also exploring consolidation or group listings as alternatives.

“We understand how important this merger is, but we also have Plan B and C,” Al Salmi said.

The Daily Circuit: Oman’s $2 billion IPO + PIF’s spending jump

Today in the Daily Circuit, we’re looking at Mubadala’s assumption of control over Turkish delivery startup Getir, the Saudi PIF’s expanding expenditures, the UAE’s most valuable companies by market capitalization and Kuwait’s power blackouts. But first OQ’s $2 billion public offering.

Oman’s state energy company OQ may be about to pull off the Gulf’s biggest IPO this year.

In an offering that could raise some $2 billion, the Muscat-based firm said today it will sell a 25% stake next month in its OQ Exploration & Production subsidiary. The company also plans to pay $600 million in  annual dividends from 2024 to 2026, along with a performance-linked dividend in 2025 and 2026.

The IPO would value OQEP, as the business is known, at around $8 billion, according to Bloomberg, though the company did not provide details of the valuation. OQ’s effort to raise the large sum may reflect the drop in oil prices, which tumbled last week to the lowest point in three years amid concerns over slumping global demand.

If successful, the IPO would be the largest in the Gulf region since ADNOC Gas raised $2.5 billion in February 2023. Last year, OQ raised almost $750 million in its gas pipelines and oil-drilling businesses.

POWER CUTS

Kuwait is suffering from more than the intense summer heat this year. The high temperatures have increased electricity demand and led to an unusual series of blackouts, The New York Times reports. Although the country is one of the wealthiest in the world, its power grid is under strain, leading to the summer power cuts. Delays in expanding the grid, along with a shift from oil to imported natural gas for power generation, have contributed to the problem, according to the newspaper. Some of the problems have been blamed on the country’s disorganized administration, which has had 14 electricity ministers over the past 10 years.

STOCKS ROCK

Emirati stocks are on a roll this year. According to Abu Dhabi’s ADX and Dubai’s DFM exchanges, the market capitalisation of the country’s 20 largest companies reached AED 2.8 trillion ($762 billion) at the end of last week, accounting for almost 78% of the total value of UAE public companies. Topping the list was International Holding Co., led by Sheikh Tahnoon bin Zayed, the UAE National Security Advisor. IHC was followed by Abu Dhabi National Energy Co., known as TAQA; ADNOC Gas; Etisalat; and First Abu Dhabi Bank.

💲 Sovereign Circuit

Mubadala: The Abu Dhabi sovereign wealth fund will take full control of Turkish grocery delivery startup Getir, following a power struggle triggered by the company’s downturn after the end of Covid-19 lockdowns, Bloomberg reports.

Public Investment Fund: The Saudi sovereign wealth fund’s annual expenditures are likely to increase to $70 billion by 2025, a year ahead of schedule, according to the International Monetary Fund. Previously PIF Governor Yasir Al Rumayyan said the fund would boost its annual capital spending from about $50 billion to $70 billion starting in 2026.

Norway Wealth Fund: Norway’s $1.7 trillion sovereign wealth fund, the world’s largest, has urged countries to align closely with global ESG reporting standards, Bloomberg reports.

↪↩ Closing Circuit

 🧵 Weaving Relations: China’s Sunrise Textile Group said it will invest more than $420 million in manufacturing facilities in Morocco, making the announcement in Beijing at the Forum on China-Africa Cooperation Summit.

⚓ Yacht Lot: The Saudi Red Sea Authority has for the first time issued regulations governing yacht traffic as the kingdom develops luxury beach resorts along its western coast and aims to attract wealthy visitors.

📈 Launching Initiatives: Finstreet has introduced a digital multilateral trading facility at the Abu Dhabi Global Market, a move aimed at protecting investors and securities issuers.

🏦 Funds Up: Blackstone-backed ASK Private Wealth has launched a new fund with a target of raising $100 million by encouraging non-resident Indians to invest in Indian capital markets. It also plans to open an office in Dubai.

🔒 Cyber Startup: Zafran Security, an Israeli cybersecurity startup, raised $40 million in a funding round led by Sequoia Capital.

🗣 Circuit Chatter

UAE President Sheikh Mohamed bin Zayed received Dr. Badr Abdel Ati, Egypt’s Minister of Foreign Affairs and Migration, on Sunday at the Qasr Al Shati palace in Abu Dhabi.

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, is leading a high-level delegation to India and is scheduled to meet today with Indian Prime Minister Narendra Modi. The group includes Dr. Sultan Al Jaber, Minister of Industry and Advanced Technologies and CEO of ADNOC; Mohamed Alsuwaidi, Minister of Investment; Khaldoon Al Mubarak, Chairman of the Executive Affairs Authority and CEO of Mubadala Investment Co.; and Reem Al Hashimy, Minister of State for International Cooperation.

🌍 Power Circuit

Abdullah bin Touq Al Marri, UAE Minister of Economy, visited Egypt on Sunday and held meetings with Rania Al Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation; and Lt. Gen. Kamel El Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport.

Todd Boehly, the U.S. financier who joined forces with Clearlake Capital to acquire London’s Chelsea FC football club for a record GBP 2.5 billion ($3.3 billion), is said to be pushing to buy out his partner after their relations have deteriorated, the Financial Times reports.

Paul Baker has been appointed President of Atlantis Resorts in the UAE to oversee both Atlantis, The Palm and the world’s most ultra-luxury experiential resort, Atlantis The Royal. 

Lisa Park has been named Managing Director for the UAE of Danish shipping company, Maersk for the UAE. She will be leading teams in Qatar and the UAE. 

Ron Young, founder of Knowledge Associates International, has been appointed Chief Knowledge and Artificial Intelligence Advisor to the Mohammed bin Rashid Al Maktoum Knowledge Foundation in Dubai.

➿ On the Circuit

Abdullah bin Touq Al Marri, UAE Minister of Economy, visited Egypt on Sunday and held meetings with Rania Al Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation; and Lt. Gen. Kamel El Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport.

Todd Boehly, the U.S. financier who joined forces with Clearlake Capital to acquire London’s Chelsea FC football club for a record GBP 2.5 billion ($3.3 billion), is said to be pushing to buy out his partner after their relations have deteriorated, the Financial Times reports.

Paul Baker has been appointed President of Atlantis Resorts in the UAE to oversee both Atlantis, The Palm and the world’s most ultra-luxury experiential resort, Atlantis The Royal. 

Lisa Park has been named Managing Director for the UAE of Danish shipping company, Maersk for the UAE. She will be leading teams in Qatar and the UAE. 

Ron Young, founder of Knowledge Associates International, has been appointed Chief Knowledge and Artificial Intelligence Advisor to the Mohammed bin Rashid Al Maktoum Knowledge Foundation in Dubai.

🎭 Celebrating Culture: Blending tradition with modern interpretation, Abu Dhabi’s Cultural Foundation is set to host “Swan Lake on Ice,” a unique rendition of the classic ballet, and a variety of flamenco performances in the new season. The foundation will also feature tributes to Mozart and French crooner Charles Aznavour, while Grammy Award winning flamenco guitarist Vicente Amigo will perform songs from his new album.

🎶 Culture Circuit

📷 Photo of the Day

🗓️ Ahead on The Circuit

Sept. 9-11, Riyadh, Saudi Arabia. 10th Regional Forum of the International Union for Conservation of Nature. Representatives of governments, NGOs, and indigenous peoples’ organizations gather to discuss key biodiversity and conservation issues. Contact IUCN for location.

Sept. 10-11, Dubai, UAE: Global Vertical Farming Show 2024. Annual event brings together investors, growers, and executives in the vertical farming industry from around the world. Le Méridien Dubai Hotel & Conference Centre. 

Sept. 10-12, Riyadh, Saudi Arabia: Global Artificial Intelligence Summit. A leading platform for advancing the global discussion on AI. King Abdulaziz International Conference Center in Riyadh.

Sept. 11-12, Dubai, UAE: Dubai AI & Web3 Festival. Bringing together the brightest minds to explore and expand the commercial possibilities of AI and Web3 technologies. Madinat Jumeirah.

Sept. 12, Dubai, UAE: U.S.-U.A.E. Space Relationship. U.S.-U.A.E. Business Council hosts a luncheon featuring astronaut Sultan Al Neyadi, Minister of Youth; Salem Al Marri, Director General of Mohammed Bin Rashid Space Centre; and U.S. Ambassador Martina Strong. Ritz Carlton Hotel, DIFC.

Sept. 15-19, Abu Dhabi: Loop Beyond Borders. Luxury travel fair brings together hotel owners, tour operators, travel agents and government officials. Saadiyat Rotana Resort & Villas and Anantara Qasr Al Sarab.

Sept. 16-18, Abu Dhabi, UAE: World Utilities Congress. Ministers, policymakers and industry leaders discuss strategies for driving growth and innovation across the power & water utilities value chain. ADNEC.

Sept. 24-25, Dubai, UAE: ACT Middle East Treasurers Summit. Corporate treasurers and financial professionals from across the region gather for policy discussions on issues ranging from cash management to sustainability. Grand Hyatt Dubai.

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.