UAE Foreign Minister, Russia’s Lavrov headline top-tier confab

Deep in the Abu Dhabi desert this weekend, foreign ministers, senior government officials and an array of policy experts are gathering behind closed doors for one of the world’s most exclusive diplomatic get-togethers.

The three-day Sir Bani Yas Forum, hosted by UAE Minister of Foreign Affairs Sheikh Abdullah bin Zayed, opened Friday with speeches, panel talks and high-level shmoozing opportunities galore.

The affair, which focuses on the most pressing political, economic and security issues, is conducted under so-called Chatham House rules that prevent public attribution of remarks to allow for more free-spirited expression.

While the media is kept at bay and the Sir Bani Yas website stops dead at the login page, a few participants have made their presence known through reports on their national news agencies.

The most prominent of them is Russian Foreign Minister Sergei Lavrov, who announced his landing in Abu Dhabi on Thursday with a report on TASS. Also disclosing their participation were Foreign Minister Constantinos Kombos of Cyprus and Mohammad Ishaq Dar, Deputy Prime Minister and Foreign Minister of Pakistan.

The top-tier confab is named for Sir Bani Yas Island in western Abu Dhabi, home to a bird sanctuary, nature reserve and several significant archeological sites. The name originates from the Bani Yas tribe, who first inhabited the land that became the emirate of Abu Dhabi.

Dubai passes climate torch to Azerbaijan as COP29 opens

A year after the UAE hosted the annual United Nations environmental summit, the torch passed today to Azerbaijan as officials and activists from 197 nations converged on the capital city of Baku for the two-week event known as COP29.

Opening the conference was COP29 President Mukhtar Babayev, Azerbaijan’s Minister of Ecology and Natural Resources, who said the earth is on a “road to ruin” and beseeched delegates to embrace U.N. goals for transition from fossil fuels. “COP29 is the unmissable moment to chart a new path forward for everyone,” he said.

The focus of this year’s climate summit is finance as estimates for the cost of building out clean energy systems, making cities more resilient to extreme weather, and transitioning factories and transportation systems away from fossil fuels run into trillions of dollars, The New York Times reports.

Much of the attention, however, is on what to expect from U.S. President-elect Donald Trump, who has dismissed global warming as a hoax. Also stirring controversy is Azerbaijan’s economic dependence on oil production, which is drawing protests similar to those against the UAE last year at COP28.

Countries will present their updated national climate action plans, which detail how they plan to reduce emissions. At the end of the conference, which closes on Nov. 22, negotiators will try to ratify a final agreement that will include new commitments to address climate change.

More than 100 heads of state and government were planning to attend, including the leaders of Barbados, Finland, Greece, Kenya, Spain, Saudi Arabia, Turkey and Pakistan. Skipping the event is U.S. President Joe Biden, as well as the leaders of China, India, Brazil, Britain, Germany and France.

Among the speakers at today’s opening event was Dr. Sultan Al Jaber, who was President of COP28. He is also CEO of Abu Dhabi-based national energy company ADNOC and the UAE’s Minister of Industry and Advanced Technology.

“I urge you all to prove once again that we can unite, act and deliver,” Al Jaber said. “Let positivity prevail and let it power the process.”

The Daily Circuit: Aldar builds Expo towers + Riyadh Air’s Madrid stadium

Today in the Daily Circuit, we’re looking at a potential $2 billion of Saudi investment in Pakistan, the renaming of a Madrid soccer stadium for sponsor Riyadh Air, a possible deal involving BlackRock and Kuwait’s sovereign wealth fund and a $1.5 billion financing package for the rail project linking the UAE and Oman. But first, Aldar tries to lure city dwellers to its new tower complex in the Dubai suburbs. 

Three years ago, the pandemic-delayed Expo 2020 drew virtually every country on the planet to set up a pavilion at Dubai’s sprawling fairgrounds. Now Aldar Properties, Abu Dhabi’s largest real estate developer, is pouring half a billion dollars into the site and catering to the home crowd.

Known these days as Expo City and neighboring the new Dubai World Central airport, the location will soon sprout six towers filled with luxury apartments, corporate offices and specialty retailers, Aldar said in a statement on Wednesday.

The $476 million project, a joint venture with government-administered Expo City Dubai, will be built on a plot measuring 1.1 million square feet, and managed by Aldar through its completion. The Expo 2020 site also hosted the COP28 climate conference last year.

Aldar is counting on the soaring demand for property in Dubai that has provided incentive for developers to reach beyond the city’s packed downtown area and led many residents to move to more affordable areas in the UAE.

MARKET HEADWINDS

Wall Street’s recent love affair with the Gulf is facing a rough patch. While bankers and venture capitalists have been flocking to Riyadh and Abu Dhabi to tap into sovereign wealth funds and other sources of capital, escalating tensions between Iran and Israel are adding a new level of uncertainty to developing deals, Bloomberg reports. The conflict cuts close for those doing business with GCC states that sit just across the Strait of Hormuz from Iran, which attacked Israel last week with more than 200 missiles on a trajectory that overflew neighboring Iraq and Jordan. HSBC analysts published a report on Gulf markets last week saying, “We love the structural story, but a combination of heightened geopolitical risk and low oil prices is creating near-term headwinds.”

PROJECT PAKISTAN

In a bid to finalize $2 billion in proposed deals, Saudi Investment Minister Khalid bin Abdulaziz Al-Falih is midway through a three-day trip to Pakistan. His visit comes ahead of next week’s conference of the Shanghai Cooperation Organization, a Eurasian regional alliance founded by China and Russia. Pakistan has been trying to strengthen trade, energy and defense ties with Saudi Arabia as it seeks to emerge from an economic crisis that has emptied foreign exchange reserves and pummeled its currency. Pakistani Deputy Prime Minister Ishaq Dar was quoted by Saudi Arabia’s Arab News as telling a cabinet meeting that the two countries are on a path to forge ever closer strategic cooperation.”

💲 Sovereign Circuit

Public Investment Fund: Riyadh Air, the new Saudi national airline backed by the PIF, signed a nine-year sponsorship deal with Atlético de Madrid that includes renaming the team’s soccer stadium “Riyadh Air Metropolitano.”

Kuwait Investment Authority: BlackRock, the world’s largest asset manager, and the KIA, the world’s sixth-largest sovereign wealth fund, are exploring potential cooperation on investments, Kuwait’s Al-Rai newspaper reports.

Mubadala: Hafeet Rail, a joint venture between Mubadala, Oman Rail and Etihad Rail, has secured $1.5 billion in financing from a consortium of banks to build the new train route linking Oman and the UAE. 

International Holding Co.: Ghitha Holding, a subsidiary of the Abu Dhabi-based IHC, will acquire a 70% stake in Fujairah’s International Food Industries for $11.2 million. 

↪↩ Closing Circuit

⛽ Gas Exploration: Chevron will start drilling an exploratory gas well at its Nargis concession area off Egypt’s Mediterranean coast with an estimated investment of $150 million, Asharq Business reports.

🕹️ Crypto Games: PiP World, a blockchain gaming and education platform in Dubai, raised $10 million in seed funding from London-based Exinity.

🏛️ Kazakh Banking: Qatar’s Lesha Bank has acquired the entire share capital of Bereke Bank in Kazakhstan for $135 million.

🕌 Islamic Assets: GFH Financial, a Bahrain-based financial group, received shareholder approval for the issuance of $500 million of Islamic bonds.

🗼Tower Power: Dubai developer Union Properties announced its $315 million Takaya project, overlooking Dubai Autodrome in Motor City.

🤖 Security Seed: Prime Security, an Israeli AI computer security startup, raised $6 million in a seed funding round led by Foundation Capital.

💰 Tech Bonds: Ooredoo, Qatar’s telecom company, raised $500 million through an oversubscribed 10-year international bond issue.

Circuit Chatter

📜 Job Insurance: Saudi Arabia has launched an insurance service that will cover unpaid wages for up to six months and provide travel assistance for expatriates to return home in case their company defaults.

💼 Gulf Foothold: Swiss wealth manager Julius Baer has opened an office in Bahrain’s World Trade Centre as part of its Middle East expansion strategy.

🤝 Group Holding: Kuwait’s NI Group, which produces building materials, plans to fully acquire Bahrain’s Foulath Holdings, with board discussion scheduled for next week.

🚰 Water Savings: The emirate of Sharjah reduced water consumption by 40% at its Meliha farms by using data to select resilient wheat seed varieties, monitor crop yields and assess irrigation needs.

🍔 Food Shop: Spinneys supermarket chain plans to build a large processing facility within the UAE’s Food Tech Valley, a government-led initiative to build a sustainable food ecosystem, under a 27-year agreement.

🌍 Power Circuit

Saudi Arabia’s King Salman has recovered from an inflammation of his lung and was released on Wednesday from the hospital where he underwent medical tests, the Saudi News Agency reports.

Saudi Crown Prince Mohammed bin Salman held a meeting with Iranian Foreign Minister Abbas Araghchi in Riyadh on Wednesday. Saudi Foreign Minister Prince Faisal bin Farhan also attended.

Mehmet Şimşek, Turkey’s Treasury and Finance Minister is visiting both Qatar and Kuwait to hold talks with officials and meet with investors, Anadolu Agency reports.

Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of the Supreme Space Council, witnessed the signing of an agreement between the UAE Space Agency and Mitsubishi Heavy Industries to provide services for the launch of the “Mohammed Bin Rashid Explorer” spacecraft aboard the H3 rocket in 2028.

➿ On the Circuit

Ratan Tata, the former chairman of Tata Group who elevated the conglomerate to global prominence through high-profile acquisitions, has died at 86.

Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, CEO of ADNOC, chairman of Masdar, and COP28 President, said on Thursday that the COP 29 summit in Azerbaijan must “provide the means” to put the green ideals agreed to in Dubai last year into practice.

Julie Young has been appointed as an advisor for GEMS education group to support its American curriculum schools and advise on the use of technology across all GEMS schools.

Jon Brook, a PGA veteran, has been appointed as the General Manager of Saudi Arabia’s Shura Links, the 18-hole golf course on Shura Island.

Amir Hayek, Israel’s first ambassador to the UAE, is concluding his term in Abu Dhabi, where he helped establish a free-trade pact between the two countries. Posting on X, Hayek called the experience, “three unforgettable years marked by milestones, challenges, and the bright spark of hope.”

🎶 Culture Circuit

🎞️ Hollywood in the Desert: Saudi Arabia is courting Hollywood and the international film industry to use its vast desert locations and generous sources of funding as a Mideast center for movie-making. Greeting a start-studded crowd at the opening of  Saudi Film Confex in Riyadh on Wednesday, Prince Badr bin Abdullah, Minister of Culture, invited studios and production houses to set up shop. “We seek to make the Kingdom a regional and international hub for film production, as well as to empower talents, and open up horizons for strategic partnerships,” he said.

Photo of the Day

🗓️ Ahead on The Circuit

Oct. 12, Riyadh, Saudi Arabia: Riyadh Season. The Saudi capital’s annual festival kicks off with a nighttime concert featuring R&B queen Ciara and hip-hop artist Busta Rhymes. Riyadh Season grounds.

Oct. 14-18, Dubai, UAE: GITEX Global. One of tech’s biggest events, the UAE conference brings companies from around the world to showcase their latest innovations. Dubai World Trade Center.

Oct. 15-17, Dubai, UAE: Aviation Future Week. Conference brings together UAE ministers, senior government officials and leaders from the aviation, aerospace, air freight and other related industries. Museum of the Future.

Oct.22-24, Dubai, UAE: Dubai Helishow. Conference features innovations in hybrid and electric helicopters, AI integration, UAV combat operations, and civil aviation. Skydive Dubai.

Oct. 29-31, Riyadh, Saudi Arabia. Future Investment Initiative Conference, 8th Edition. More than 6,000 global participants registered, including world leaders, policymakers CEOs and investors. King Abdul Aziz International Conference Center.

Nov. 5-7, Dubai, UAE: EMEA Stakeholder Conference, This invitation-only event brings together over 700 leaders from across the hotel and real estate industry in Europe, the Middle East and Africa. Lapita Dubai Parks and Resorts Autograph Collection.

Nov. 12-13, Abu Dhabi, UAE: CyberQ: Security in the Quantum Era. Conference brings together international experts, policymakers and industry players to discuss challenges of the quantum age of cybersecurity. ADNEC.