Saudis sign deals for over 100 planes as Paris Air Show opens

AviLease has signed a deal for up to 77 Airbus planes, announced as the Paris Air Show opened at Le Bourget on Monday.

The global aircraft lessor backed by Saudi Arabia’s Public Investment Fund signed up for an initial 30 A320 Neo jets and 10 A350F freighters, which could increase to 55 A320 Neos and 22 A350Fs.

Riyadh Air, Saudi’s new national carrier, also backed by the sovereign wealth fund,  announced an order of 25 A350-1000 aircraft at the event on Monday.

Meanwhile, Royal Air Maroc is nearing a major fleet renewal deal with Boeing as it moves to quadruple its fleet by 3030 ahead of co-hosting the World Cup.

The deal could include more than 70  787s and 737 jets, Reuters reports. The airline is also planning a smaller order for 20 Airbus A220s, its first Airbus deal in nearly 25 years.

The Paris Air Show opened against a somber backdrop following last week’s Air India crash and disruptions caused by rising tensions between Israel and Iran.

Boeing CEO Kelly Ortberg and Commercial Airplanes chief Stephanie Pope have cancelled their trip to Paris, with Boeing scaling back its presence to focus on the India crash probe.

Boeing’s branding remained highly visible at the show, including a gleaming Riyadh Air 787 parked behind its chalet at Le Bourget, Reuters reported.

Saudi PIF invests in surging soccer realm with Kings League

Having disrupted the athletic world with billions poured into golf, tennis, mixed martial arts and esports, Saudi Arabia’s Public Investment Fund is diving deeper into soccer.

SURJ Sports, an investment arm of the sovereign wealth fund, signed an agreement on Tuesday to form a joint venture with the upstart Kings League.

The move brings a wildly popular new brand of football to the kingdom that features seven players on each side of the field. 

An inaugural event is planned for November, which will be streamed on a range of platforms including TikTok and YouTube. The league has close to 30 million social media followers.

Kings League was founded in 2022 by former Barcelona defender Gerard Piqué and has a growing young audience drawn by its fast-paced format.

Most of the league’s revenue comes from sponsorship and merchandising, rather than broadcasting, which fuels traditional football teams that play with 11 to a side. 

“Our priority today is to maximize reach and get in front of as many fans as possible,” Kings League CEO Djamel Agaoua tells Bloomberg.

“In the future, as the product matures, we want to develop our media rights revenue stream, and we might consider more exclusive deals with broadcasters and streaming platforms,” he said.

UAE welcomes Trump amid anticipation of AI chip deals with U.S.

In the final leg of his tour through the Gulf’s royal palaces, U.S. President Donald Trump landed in Abu Dhabi on Thursday as G42 and other UAE tech firms awaited a green light for billions of dollars in advanced chip deals.

UAE President Sheikh Mohamed bin Zayed greeted the U.S. leader at Abu Dhabi’s exclusive Presidential Terminal after a brief flight on Air Force One from neighboring Qatar. Also on hand to welcome Trump were the President’s brothers, Vice President and National Security Adviser Sheikh Tahnoon bin Zayed, who is Chairman of G42, and Foreign Minister Abdullah bin Zayed.

Earlier in the day, Qatar hosted a business conference with Trump in the capital city of Doha and the president talked talked to U.S. soldiers at the Al Udeid U.S. Air Base, which has been an anchor for America’s security alliance in the Gulf.

The U.S. leader woke up in Doha after Emir Sheikh Tamim hosted a lavish state dinner at Lusail Palace on Wednesday night. On Trump’s arrival in Qatar, his motorcade passed sword dancers, parading camels and a royal honor guard mounted on Arabian stallions.

Today’s visit to the UAE is the last stop in his regional tour, which started on Tuesday when he landed in Riyadh and wraps up with Friday’s return to Washington.

Trump and close adviser Elon Musk spent two days in Saudi Arabia, hosted by Crown Prince Mohammed bin Salman and holding chats with corporate leaders from such powerhouses as Aramco, the Public Investment Fund, Nvidia, OpenAI, BlackRock and Citigroup.

In Abu Dhabi, where main roads are decked out with neon signs welcoming Trump, the president was expected to announce a preliminary agreement to let the UAE import 500,000 of Nvidia’s most advanced AI chips per year, starting in 2025, boosting the Emirates’ construction of data centers required for the highest level of AI development, Reuters reports.

Twenty percent of the chips will be allocated to UAE tech firm G42, and the remainder will be allocated to U.S. companies like Microsoft and Oracle that are building data centers in the UAE. The deal could potentially extend through 2027 or even 2030, according to the news agency.

The White House said Trump secured deals totaling more than $243 billion with Qatar after leaders from the Gulf peninsula state pledged some $1.2 trillion in American investment. The UAE has committed to investing $1.4 trillion in the U.S. over the next 10 years, while Saudi Arabia said it hopes to reach $1 trillion during Trump’s four-year term.

Among the largest deals was Qatar’s $96 billion plan to acquire as many as 210 Boeing 787 Dreamliner and 777X aircraft. The U.S. and Qatari governments also signed off on a $1 billion agreement for Raytheon to provide counter-drone capabilities to Qatar. General Atomics also secured a nearly $2 billion agreement for Qatar to acquire MQ-9B drones.

Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman, meanwhile, defended his country’s offer to Trump of a luxury jet to replace the 40-year-old Air Force One, telling CNN it was not an influence-buying effort.

“It is government to government. The transaction has nothing to do with personnel, whether it’s on the U.S. side or on the Qatari side,” he said, adding that Qatar is ready to withdraw the plan if it’s found to be illegal.

Thiel co-invests with Saudi PIF, Qatar in new business platform

Tech investor Peter Thiel is teaming up with Saudi Arabia’s Public Investment Fund and a Qatari lender to back a new business-to-business commerce platform, starting with a combined sum of $110 million.

Thiel, a co-founder of data software giant Palantir Technologies and PayPal, will invest in SILQ Group through his Valar Ventures unit, according to a statement issued Wednesday.

The $925 billion Saudi sovereign wealth fund will participate through its Sanabil Investments subsidiary, joining Valar in a group that also includes Qatar Development Bank.

SILQ was formed through a merger between the Riyadh-based online marketplace Sary and ShopUp, Bangladesh’s largest business-to-business commerce platform.

With the funds from Thiel, Sanabil and Qatar, the merged company plans to target markets across the Middle East and Asia, and raise more money in 2027 through an IPO.

“Saudi Arabia and the Gulf represent one of the most exciting economic stories in the world today,” James Fitzgerald, Founding Partner at Valar Ventures, said in the statement. “This merger reflects a bold vision to place these markets at the center of a new commercial ecosystem connecting with South Asia.”

Riyadh Air gets flight approval as it prepares for late 2025 debut

Riyadh Air crossed a threshold as it prepares to begin operating in 2025 as Saudi Arabia’s primary international carrier.

The airline, which is owned by the Public Investment Fund, announced on Sunday that it received approval to fly from the General Authority of Civil Aviation.

“Establishing an airline of this scale is a monumental task, but the process is progressing smoothly,” Saudi Minister of Transport and Logistics Saleh Al-Jasser said at a ceremony presenting the approval certificate.

“We are now in the final stages, with the next step being the launch of the first flight before the end of this year.”

Riyadh Air, which will take over many passenger routes from Saudia, plans connections to more than 100 international cities by 2030.

First phase of NEOM’s city starts construction on Red Sea coast

Saudi Arabia’s $500 billion NEOM mega-project is getting off the ground.

Speaking at the Public Investment Fund’s Private Sector Forum in Riyadh, NEOM Chief Development Officer Denis Hickey said on Friday that the first phase of its 170 kilometer-long city, The Line, will be built at the Hidden Marina site on the kingdom’s Red Sea coast.

The first segment of the project will stretch 2.5 kilometers in length and rise 500 meters high.

It is expected to accommodate over 200,000 residents in 80,000 residential units, with 9,000 hotel rooms, as well as commercial and retail spaces, fire stations, schools, police and security services.

The Daily Circuit: Etihad mulls IPO + Abu Dhabi-Dubai train line

👋 Hello from the Middle East!

In today’s Daily Circuit, we’re looking at the Saudi Public Investment Fund’s $4 billion bond sales, DP World’s effort to promote stablecoin payments, Qatar’s new bankruptcy law and the start of construction for the UAE’s Abu Dhabi-Dubai train line. But first, flying the investor-friendly skies of the Middle East.

The new year is shaping up as pivotal for the Middle East aviation industry as Gulf airlines look to raise money on regional stock markets and international carriers cautiously return to Israel and Lebanon.

After debating a share offering on and off for the past decade, Abu Dhabi-based Etihad is planning to talk to investors next week about the possible sale of a 20% stake through an IPO that could raise close to $1 billion, Reuters reports.

Etihad, which is owned by the ADQ sovereign wealth fund and competes with Dubai-based Emirates, would seek to arrange the share sale before the end of the first quarter with presentations aimed at both UAE and international investors, the news agency said.

In Saudi Arabia, the budget carrier flynas, which is owned by Prince Alwaleed Bin Talal’s Kingdom Holding investment company, is waiting for regulatory approval to move ahead with its own initial share offering, CEO Talal Al-Maiman told Al-Arabiya this week.

An IPO by either Etihad or flynas would be the first for a Gulf airline since Kuwait’s Jazeera Airways sold shares in 2008.

After making a splash last year with its designer uniforms and plush cabins, Saudi Arabia’s new national carrier Riyadh Air suffered a setback this week, announcing that it will be forced to push back its launch date to the third quarter of 2025 after delays to delivery of its fleet from Boeing.

On the other hand, ceasefires in Gaza and Lebanon are leading international airlines to restore their routes to Tel Aviv and Beirut, with Lufthansa, British Airways and Wizz Air announcing service will start again between February and April.

Emirates announced today it will resume flights from Dubai to both Beirut and Baghdad on Feb. 1 after suspending service because of the regional conflicts.

Welcome to the Daily Circuit. Kindly let us know your thoughts and feedback by replying to this newsletter or emailing us at [email protected].

📷 Photo of the Day

Saudi Arabia seals acquisition of 15% stake in London’s Heathrow

Saudi Arabia’s Public Investment Fund concluded its yearlong quest to buy a chunk of London’s Heathrow Airport, joining an ownership group that includes the sovereign wealth funds of Qatar and Singapore.

The PIF will own a 15% stake in FGP TopCo, the holding company that controls Europe’s busiest airport, after the deal was finalized on Thursday. The Saudi fund bought into Heathrow at the same time that Paris-based private equity firm Ardian acquired a 22.6% stake in the airport, which has a market value of about 8.7 billion pounds, or  $11 billion.

“Heathrow acts as a crucial gateway to the world, and we look forward to supporting Heathrow’s management in its efforts to secure the sustainable growth of the airport and to continue to maintain its position as a global aviation hub,” Turqi Al-Nowaiser, PIF Deputy Governor and Head of International Investments, said in a statement.

The Saudi fund, which manages some $930 billion in assets, has acquired a range of holdings in the U.K. that includes the Newcastle United football club and large stakes in Selfridges department store and the Rocco Forte luxury hotel group.

Among Heathrow’s owners are the Qatar Investment Authority, which holds a 20% interest, Singapore’s GIC sovereign fund and the Australian Retirement Trust.

The Weekly Circuit: NEOM’s ‘generational’ investors + PIF aims for $1 trillion

👋 Hello from the Middle East!

In the Weekly Circuit today, we’re looking at the Saudi Public Investment Fund’s $1 trillion target for 2025, Bill Gates’ crowded schedule in Abu Dhabi, Talabat’s ever-growing IPO and Morocco’s plan to legalize cryptocurrencies. But first, NEOM is being pitched as a “generational investment.”

Saudi Arabia is inviting the world to invest in its sprawling trillion-dollar NEOM megaproject and advising potential backers to ignore recent bumps along the road.

“The flywheel is starting and it will gain speed as we go forward, as some of the foundational assets come to the market,” Saudi Investment Minister Khalid Al-Falih told Reuters this week on the sidelines of the World Investment Conference in Riyadh.

The development in western Saudi Arabia – which features ski slopes, beach resorts and a 100-mile long vertical city – is the centerpiece of Crown Prince Mohammed bin Salman’s Vision 2030 plan to wean the economy off dependence on the kingdom’s oil revenues. The Public Investment Fund, which owns NEOM, announced that the project’s longtime CEO stepped down this month while it has had to delay some of the target completion dates.

Al-Falih says to be patient. “NEOM was not meant to be a two-year investable opportunity,” he told the news agency. “If anybody expected NEOM to be a foreign investment in two, three or five years, then they have gotten (it) wrong – it’s a generational investment.” 

Asked if most of the spending on NEOM will continue to come from the PIF, Al-Falih said funds from abroad are expected to increase.

“I think foreign investors are starting to come to NEOM; they’re starting to channel capital,” he said. “Some of the projects that the PIF will be doing will be financed through global capital pools, through some alternative and private capital. That’s taking place as we speak.”

Welcome to The Weekly Circuit. Read on for the stories, deals and players at the top of the news across the MENA business landscape. Please send comments and story tips to [email protected].

TECH EVANGELIST

Bill Gates talks up AI prospects in round of Abu Dhabi appearances

Bill Gates crisscrossed Abu Dhabi last week as an evangelist for the many applications of AI technology, The Circuit’s Jonathan Ferziger reports.

The Microsoft founder and philanthropist came to the UAE’s capital to participate in an event showcasing the benefits artificial intelligence can offer farmers and agricultural industries, particularly in Africa.

Gates also met with Sheikh Tahnoon bin Zayed, the UAE National Security Adviser and Chairman of G42, the Abu Dhabi-based AI developer in which Microsoft invested $1.5 billion. 

Click here to read the full story.

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UNLEASHING BITCOIN

Morocco to lift seven-year ban on cryptocurrencies

Morocco, which has banned cryptocurrencies since 2017, is preparing a law to permit their use, The Circuit’s Jonathan Ferziger reports.

“Like many countries around the world, we are exploring to what extent this new form of currency could contribute to achieving certain public policy objectives, particularly in terms of financial inclusion,” Central Bank Governor Jouahri Abdellatif said on Tuesday at the Regional High-Level Symposium on Financial Stability in Rabat.

Bank Al Maghrib, as the Central Bank is known, is also exploring the possibility of issuing its own digital currency, he said. Moroccan law forbids cryptocurrencies, but their broad use is well-known as citizens find ways to bypass the restrictions. 

Click here to read the full interview.

💲 Sovereign Circuit

Public Investment Fund: The Saudi sovereign wealth fund reported assets of $924 billion and said it aims to break the $1 trillion mark by the end of 2025.

Mubadala: The Abu Dhabi sovereign wealth fund participated in a $523 million financing round for Belgian business software maker Odoo.

The Kuwait Fund for Arab Economic Development: The fund signed a $33 million loan agreement with Tunisia’s government to finance its $174 million phosphate railway project. 

Qatar Investment Authority: The sovereign wealth fund made an investment in a fund managed by Chinese private equity firm Trustar Capital, that will make it an anchor investor in McDonald’s China.

↪↩ Closing Circuit

🛵 Mobile Food: Delivery Hero increased the size of its Talabat subsidiary’s IPO to as much as $2 billion, setting the deal up to be the UAE’s biggest listing of the year, Bloomberg reports.

🇨🇳 Chinese Bonds: Nasdaq Dubai announced the listing of two bonds from China’s Ministry of Finance totaling $2 billion, which it said underlines Dubai’s role as a gateway for capital flows between Asia and the Middle East.

🛏️ Pyramids Hotel: Abu Dhabi Tourism Investment Co. is teaming up with Paris-based Accor to manage Egypt’s new $100 million Sofitel Legend Pyramids Hotel in Giza, which is scheduled to break ground next month and open in 2027, Zawya reports.

🏭 Helter Smelter: Vedanta Resources, the largest mining company in India, is planning to invest $2 billion to buildcopper-processing plants in Saudi Arabia.

🗣 Circuit Chatter

💼 Ultra-Wealthy: Rothschild & Co. said it has launched a wealth management office in Dubai to boost its offering to local clients as well as to ultra-high-net-worth individuals in the region, Reuters reports. 

☢️ Nuclear Leader: The UAE, which has become one of the largest nuclear power producers, aims to lead global nuclear energy development with its reactors supplying nearly a quarter of the nation’s electricity, the Emirates Nuclear Energy Corp. said.

🌍 Culture District: Saudi Arabia’s Diriyah Co. unveiled plans on Thursday for its Qurain Cultural District in northern Riyadh, which will include museums, schools, theaters and a cinema alongside residential and office buildings.

🛢️ Resisting Transition: Saudi Arabia, Russia and several other oil-producing nations ensured that a U.N. General Assembly resolution on climate change steered clear of a call to transition away from fossil fuels, The New York Times reports.

💱 Finance Adviser: Sylndr, an Egypt-based online platform for used cars, is being advised on its asset-backed financing facility by EFG Hermes.

🌍 Power Circuit

UAE President Sheikh Mohammed bin Zayed met with Philippines President Ferdinand Marcos Jr. in Abu Dhabi on Tuesday during an official visit in which they discussed trade and sustainable energy cooperation.

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, made an official visit to Bahrain on Tuesday at the invitation of Bahrain’s Crown Prince Salman bin Hamad, who is also Prime Minister.

King Hamad of Bahrain awarded the King Hamad Order of the Renaissance to Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, who traveled to Manama to discuss steps for strengthening economic ties between the UAE and Bahrain.

Sheikh Mohammed bin Rashid, the UAE Vice President and Ruler of Dubai, visited Dubai International Airport to take a tour of Emirates airline’s  new Airbus A350, joined by Sheikh Ahmed bin Mohammed, Second Deputy Ruler of Dubai; Sheikh Ahmed bin Saeed, President of Dubai Civil Aviation Authority, Emirates Chairman and CEO, and Chairman of Dubai Airport and Sheikh Mansoor bin Mohammed, Chairman of the Dubai Ports and Borders Security Council. 

➿ On the Circuit

Naguib Sawiris, the billionaire Chairman of Egypt’s Orascom Investments, launched Moniify, a new digital business and finance news platform in Dubai. Michael Peters, the former CEO of Euronews, was hired as CEO.

Selim Kervanci was appointed as CEO of HSBC’s Middle East division. He is currently HSBC’s top executive in Turkey.

Tim Clark, President of Emirates airline, hinted in an interview with Zawya that the Dubai-based carrier will order more Airbus A350 aircraft as it enters an “expansionist period.”

Peter Knez, joined UAE’s digital assets hedge fund Triton Liquid as an advisor and is set to become a board member of the venture, which is based in the Abu Dhabi Global Market.

Philip Philippides was appointed CEO of Mashreq Capital, the asset management unit of Dubai-based Mashreq Bank. He previously worked at Morgan Stanley, BlackRock/iShares and MSCI.

🎶 Culture Circuit

👑 Royal Gems: Britain’s Prince William and Oman’s Crown Prince Theyazin bin Haitham appeared at an event in London on Monday to promote the Royal Geographical Society’s “Jewel of Arabia” expedition, which was inspired by British explorer Bertram Thomas’s’ 1928 trek along the Omani coast, The National reports. The project aims to raise awareness about efforts to preserve the sultanate’s natural heritage. Prince Theyazin invited Prince William to join the project because of his passion for conservation and his knowledge about Oman’s environmental protection efforts gained from a trip five years ago.

📷 Photo of the Week

🗓️ Ahead on The Circuit

Nov. 26-28, Abu Dhabi: Global Media Congress. The event brings together a range of media groups to discuss the latest trends in publishing and media.

Nov. 26-29, Dubai: Big5 Global. The event gathers participants who are interested in technology and construction. Dubai World Trade Centre.

Dec. 4-6, Abu Dhabi: Abu Dhabi Business Week. Participants will hear from business pioneers who built billion-dollar enterprises, developed global brands and led significant campaigns. ADNEC.

Dec. 5-6, Abu Dhabi: Milken Institute Middle East and Africa Summit. Corporate executives, investors, government officials, and philanthropists gather to address the globe’s most pressing issues. St. Regis Saadiyat Island.

Dec. 5-8, Abu Dhabi: Abu Dhabi Grand Prix 2024. World’s fastest race drivers compete in Abu Dhabi leg of the Formula One season. Yas Marina Circuit.

Dec. 5-14, Jeddah, Saudi Arabia: Red Sea Film Festival. Directors from Saudi Arabia and abroad will premiere feature films at the 10-day event. Al-Balad.

Dec. 6-8, Manama: IISS Manama Dialogue.  A forum that brings in ministers, policymakers and decision-makers to talk about the Middle East’s pressing foreign policy, defense and security challenges. The Ritz Carlton Hotel.

Dec. 7-8, Doha, Qatar: Doha Forum. Annual policy conference this year focuses on technological innovation. Doha Sheraton.

Dec . 9-10, Abu Dhabi: The Bitcoin Conference. The conference connects with industry leaders, and experiences a dynamic expo hall featuring a fusion of technology and art. ADNEC.

Dec. 9-12, Abu Dhabi: Abu Dhabi Finance Week. Market experts and entrepreneurs from all over the world discuss the latest market trends. Al Maryah Island, ADGM Square.

Dec. 10-11, Abu Dhabi. Abu Dhabi Space Debate. The platform brings visionary leaders from the industry, government and academia to address the space sector’s most pressing challenges and opportunities. Erth Hotel.

Dec. 13-15, Abu Dhabi: World Policy Conference. The conference brings together top-level decision-makers, academics and opinion leaders. Park Hyatt Saadiyat Island.

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PIF’s Yasir Al-Rumayyan sits with Trump, Musk at UFC 309 matches

Yasir Al-Rumayyan, Governor of Saudi Arabia’s Public Investment Fund, sat with U.S. President-elect Donald Trump and billionaire Elon Musk in ringside seats at the United Fighting Championship’s UFC 309 event on Saturday night in New York’s Madison Square Garden.

Al-Rumayyan, who is also Chairman of Saudi Aramco, the world’s biggest oil company, as well as the PIF-owned LIV Golf tournament and English football club Newcastle, showed up in a photo posted on Musk’s X social media platform, chatting with fellow golf lover Trump while watching the fights.

Al-Rumayyan has been negotiating for the past two years over a proposed merger with the PGA golf tour after luring some of the top professional golfers with paychecks of over $200 million. The two sides, along with Europe’s DP World Tour, reached a framework merger agreement in June 2023 that has yet to be finalized.

The former President’s Trump National Golf Club in Bedminister, N.J., hosted LIV Golf tournaments in 2022 and 2023.