Aramco raises $5B on London bond market amid oil price slide
Saudi Aramco is going to the debt market again amid a slide in oil prices that has chopped the cost of the industry’s benchmark Brent crude almost in half over the past three years.
Aramco, the world’s largest oil company, said on Monday that it raised $5 billion in a London bond sale that was the U.K.’s largest this year and followed the sale of Islamic bonds a year ago that raised $6 billion.
The record borrowing should enable the state-owned oil colossus to continue generating the level of funding that the kingdom has been counting on to finance its drive to diversify the economy.
The price of Brent crude has fallen 20% this year and 45% since June 2022. It was trading at $62 a barrel this morning.
Saudi Crown Prince Mohammed bin Salman has put the country on an expensive course of investing in massive infrastructure projects such as the $1 trillion-dollar Neom development, while deepening its interests in a variety of industries including minerals, electric vehicles and sports.
At the same time, Saudi Arabia has tightened its dominance over OPEC+, pushing through a significant increase in production across the bloc of oil producers despite opposition from other powerful members such as Russia, Oman and Algeria, Bloomberg reports.
Aramco hunts for new China investments as oil profit slips
Amid shrinking profits, Saudi Aramco CEO Amin Nasser said the world’s biggest oil company is shopping for new investments in China.
Nasser spoke in Beijing on Monday at the China Development Forum, where he said Aramco is “currently” supporting projects in the areas of Fujian, Liaoning, Zhejiang and Tianjin.
“I emphasize ‘currently’ because we are continuing to identify additional opportunities, which include energy and chemicals, as well as technology,” Nasser said.
Aramco’s interest in China, Nasser said, rests partly on its emergence as the “world’s largest consumer and producer of petrochemicals, accounting for nearly half of global demand, and it’s becoming a major hub for the entire chemicals industry value chain, which will be critical to industries of the future.”
The conference in Beijing was the first stop for international executives and policymakers trying to navigate trade tensions between the U.S. and China, with the subject hitting center-stage this week at the Boao Forum for Asia in Hainan.
All eyes on Aramco as world’s top oil company set to alter dividend
Investors around the world are watching Saudi Aramco, which is scheduled to announce changes on Tuesday to the way its $124 billion annual dividend gets paid out.
Two scenarios are being considered as the kingdom tries to address its weakened finances, Bloomberg reports.
Aramco, the world’s biggest oil company, could continue some elevated payments and let its balance sheet take the increasing pain. On the other hand, it could cut distribution of the dividend and risk widening the Saudi budget deficit.
The company’s action would also affect debt issuances by Saudi Arabia, whose nearly $15 billion in bond sales this year make it the biggest borrower in emerging markets, the news agency said.
Crude sales and Aramco’s large annual payouts are central to funding Crown Prince Mohammed bin Salman’s Vision 2030 economic transformation plan. The level of the dividend’s distribution, however, has grown beyond the company’s earnings and dried up the $27 billion in net cash it had just over a year ago.
Aramco’s net income has declined year-on-year for seven consecutive quarters, and analysts are forecasting another drop in the fourth quarter. The company’s shares have declined 3% this year.
The Daily Circuit: Dar Global pursues Trump bump + Aramco-Sumitomo venture
In today’s Daily Circuit, we’re looking at Saudi Aramco’s new startup venture with Japan’s Sumitomo group, ADIA’s leadership in private equity and credit markets, Egypt’s efforts to sell off 10 state companies and a bounty for Qatar Airways in private jet sales. But first, Saudi-owned Dar Global pursues a Trump bump.
Saudi Arabia is pouncing on new opportunities opening up in 2025 as Donald Trump returns to the White House and rising markets generate fresh capital.
Out today comes a statement from Dar Global, the Dubai-based international arm of Saudi Arabia’s Dar Al Arkan Real Estate Development Co., that it plans to expand its activities in urban centers across the U.S. and in Greece.
While Dar leaves out the names of the “top-tier developers” with which it plans to create luxury residences in the two countries, Eric Trump filled in some of the blanks in an interview with Reuters last month.
The President-elect’s son and Executive Vice President of the Trump Organization said Dar will be a partner in at least two projects in Saudi Arabia, including a tower in Riyadh.
Saudi Arabia’s Almoosa Health Co., meanwhile, jumped 30% from its $450 million IPO as it began trading today on Riyadh’s Tadawul Exchange.
The hospital operator rose to as much as 165 riyals – the maximum allowed 30% increase from the offer price – before paring gains to 15%, Bloomberg reports. The rally gave the company a market capitalization of about $1.7 billion.
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📰 Developing Stories
EGYPTIAN IPO
Egypt is moving forward with plans to divest from at least 10 state companies by the middle of this year. Egyptian Prime Minister Mostafa Madbouly convened a meeting on Sunday to review the progress on IPOs planned for military-affiliated Safi and Wataniya, Daily News Egypt reports. The government also plans to offer stakes in the Gabal Al-Zeit wind power station, Alamal Alsharif Plastics, Egyptian Group for Pharmaceutical Industries, and Chemical Industries Development. Following United Bank’s initial share sale in December, the government is working on IPO plans for Alexbank and Banque du Caire, the newspaper said.
STARTUP FINANCE
Wa’ed Ventures, Aramco’s venture capital unit, is teaming up with Japan’s Sumitomo conglomerate, to fund a Saudi consumer electronics startup. The two companies joined Dubai-based Global Ventures in a $30 million financing round for Zension Technologies, which provides warranties, buy-back services and upgrades for mobile phones,Bloomberg reports. Middle East startups raised $1.5 billion last year, a 29% decline compared to the previous year, according to a report from private capital data firm Magnitt. Saudi Arabia attracted almost half of the region’s VC investing in 2024.
💲 Sovereign Circuit
Alpha Dhabi Holding: Plenty Unlimited, a U.S. vertical farming startup backed by Jeff Bezos that agreed to team up with Abu Dhabi-owned Alpha Dhabi Holding to build a $136 million facility to grow strawberries indoors, is in talks for a new funding round that could replace its existing stockholders, Bloomberg reports.
Abu Dhabi Investment Authority: ADIA is leading the charge to expanding state-owned investors’ influence in private equity and credit markets, with notable investments in Corient, Fisher Investments, and Hargreaves Lansdown, Global SWF said in a report.
Public Investment Fund: The Saudi Real Estate Refinance Company, a PIF company, said it signed a preliminary agreement with Hassana Investment Co. to issue residential mortgage-backed securities as part of an effort to “enhance liquidity” in the property finance sector and attract local and global investors.
↪↩ Closing Circuit
💰 Digital Payments: Dubai’s Mashreq Bank completed the sale of a majority stake in digital payments firm Neopay to Turkey’s DgPays and Bahrain-based investment firm Arcapita.
🛩️ Solo Flights: Qatar Airways said revenue at its private-jet subsidiary rose 26% last year, citing strong demand from businesses and wealthy families for the flexibility afforded by having one’s own aircraft.
🚢 Djibouti Port: Morocco’s top port operator Marsa Maroc will invest an undisclosed sum in Damerjog Oil FZE, which is planning to build an oil and gas port on Djibouti’s Gulf of Aden coast, Reuters reports, citing a Moroccan government decree.
💸 Investment Arm: Saudi Arabia’s Thimar Development Holding Co. launched a $27 million private investment fund to acquire a 70% stake in Jiyad Al-Ezz, which invests in Mecca’s livestock market and Al-Mu’aisem slaughterhouse.
🎲 Managing Risk: Jones, an Israeli startup that provides an insurance risk management system for the real estate and construction industries, raised $15 million in a Series B funding round led by NewSpring Capital.
🗣 Circuit Chatter
⚽ Time Out: Saudi Arabia’s success in winning the rights to host the 2034 World Cup is adding pressure to meet construction deadlines on a range of megaprojects across the kingdom, which includes a high-altitude soccer stadium in the trillion-dollar Neom development, the Financial Times reports.
🚆 Rail Funds: Iraq secured funding from Qatar and the UAE for its $17 billion “Development Road” rail project, aiming to avoid problems that halted previous initiatives, though the exact partnership details remain unspecified.
🏦 Breaching Barriers: Blackstone, Apollo Global and KKR are among the private equity firms preparing to lobby the incoming Trump administration to eliminate regulatory barriers to broad pools of capital, including retirement savings, in a move that could unlock trillions for the industry, the Financial Times reports.
💵 Keeping Nimble: Bridgewater Associates, the world’s biggest hedge fund, dismissed 7% of its workforce on Monday, in a move described as “keeping the organization nimble,”Bloomberg reports.
👣 Regulatory Hub: The Abu Dhabi Department of Economic Development has launched the Abu Dhabi Registration and Licensing Authority to regulate businesses, streamline licensing, ensure compliance, and consolidate economic data across the emirate.
🌍 Power Circuit
Sheikh Abdullah bin Zayed, UAE Deputy Prime Minister and Minister of Foreign Affairs, receivedAsaad al-Shibani, Minister of Foreign Affairs in the Syrian Transitional Government, on Monday. Sheikh Abdullah also hosted Dr. Abdullah Khaleel, Minister of Foreign Affairs of the Maldives.
➿ On the Circuit
Badr Abdelattym, Egypt’s Minister of Foreign Affairs, Emigration and Egyptian Expatriates, met with Mohammed Al Yousef, Oman’s Minister of Commerce, Industry, and Investment Promotion, during his visit to Oman on Monday.
Ashish Khanna was appointed CEO of Adani Green Energy, succeeding Amit Singh, who will move to another leadership role within the Adani Group, the company owned by Indian billionaire Gautam Adani that has extensive activities in the Gulf.
🎶 Circuit Culture
✨ Golden Designs: Actresses Mindy Kaling, Kristen Bell and Ari Graynor strode across the Beverly Hilton’s red carpet at the Golden Globes on Sunday night with dresses designed by Mohammed Ashi, a Saudi designer based in Paris. Kaling wore a gold column gown from Ashi Studio and Bell sparkled in a gold-beaded dress taken from the label’s Spring/Summer 2024 couture collection. Gaynor garnered attention with Ashi’s black gown that featured cutouts across the bodice.
📷 Photo of the Day
Emirati driver Youssef Mohammed Al Ali won first prize on Saturday in the UAE’s Liwa International Festival dune-climbing race (Emirates News Agency)
📅 Circuit Calendar
Jan. 7-9, Dubai. Arab Plast International Road Show. A trade show for the plastics, petrochemicals and recycling industries. Dubai International Exhibition and Convention Center.
Jan. 7-10, Las Vegas, Nev. Consumer Electronics Show. One of the world’s biggest stages for the consumer electronics consumer and the entire tech industry. Las Vegas Convention Center.
Jan. 11-13, Abu Dhabi. International Renewable Energy Forum. The U.N.’s IRENA agency’s Assembly meets to make policy decisions and discuss advancing energy transition efforts. St Regis Saadiyat.
Jan. 11-13, Dubai. The 1 Billion Followers Summit. An event that covers the world’s top creators and entertainers. Jumeirah Emirates Towers.
Jan. 13-18, Abu Dhabi. Abu Dhabi Sustainability Week. The conference brings together changemakers to discuss the key challenges in today’s world. ADNEC.
Jan. 16-19, Dubai. Hero Dubai Desert Classic. Golf Tournament bringing in world class athletes. Emirates Golf Club.
Jan. 20-24, Davos, Switzerland. World Economic Forum. The annual WEF meeting brings world leaders, business leaders and thought leaders together under one roof to discuss the world’s challenges. Davos-Klosters.
Jan. 27-30, Dubai. Arab Health. Premier healthcare event where attendees network with global leaders, discuss ground-breaking innovations and seek to shape the future of healthcare. Dubai World Trade Center.
Jan. 27-28, Riyadh. Private markets in Saudi Arabia and GCC. Exploring fundraising strategies, value creation and opportunities across private equity, credit and venture capital within Saudi Arabia and the broader Middle East. The Fairmont Hotel.
Jan. 27-30, Miami, Fla. iConnection Miami Alts. Networking event for fund managers and finance industry professions. Miami Beach Convention Center.
Feb. 3-6, Dubai. Medlab Middle East 2025. The show attracts exhibitors whether global giants or emerging startups to discuss digital health solutions. Dubai World Trade Centre.
Feb. 9-12, Riyadh. Leap 2025. Riyadh’s tech event that brings in tech innovators and leading experts from around the world to discover new ideas, build new partnerships, and connect with inspiring mentors and investors. Riyadh Front Expo Centre.
Feb. 11-13, Dubai. World Government Summit 2025. Annual event brings in world leaders and business leaders from the region and outside to discuss the most pressing matters. Madinat Jumeirah.
Feb. 14-16, Munich Security Forum. Known as one of the world’s leading forums for debating international security policy. Hotel Bayerischer Hof.
Feb. 17-21, Dubai. Gulf Food. In its 30th edition, the exhibition brings in many more companies to show their work on food and the industry’s use of technology. Dubai World Trade Center.
Feb. 22-23, Miami, Fla.. FII Priority. Saudi Arabia’s Future Investment Initiative connects U.S. and Middle Eastern investors. Faena Hotel & Forum, Miami Beach.
The Daily Circuit: Aramco price hikes + Adani plots succession
👋 Hello from the Middle East!
Today in the Daily Circuit, we’re looking at plunging share prices in the Middle East, who will succeed Indian tycoon Gautam Adani in managing his sprawling corporate empire, the Mubadala-backed AI fund that may join the $12.8 billion bid for an Australian data center and the new Middle East pro baseball league’s plans for opening day in the UAE. But first, Saudi Aramco’s bumpy year.
Saudi Arabia is cautiously bullish on Asia’s appetite for oil while it tries to stoke demand in Europe.
That’s the takeaway from state-owned Aramco’s decision to raise the price of its Arab Light crude to Asia for the first time in three months – an increase of 20 cents to $2 a barrel above the regional Oman-Dubai benchmark, Bloomberg reports. At the same time, the world’s biggest oil company slashed prices in Europe by $2.75, its biggest reduction since the Covid-19 pandemic.
The moves come days after OPEC+ signaled it would make no changes to oil supplies this month and maintained its tentative plans to let member-countries start increasing production next quarter.
In contrast to its rivals whose stock prices are hitting record highs this year, Aramco is down 17%, the worst performance among the world’s 10 biggest oil companies by revenue, a reflection of its production cuts. PetroChina, by contrast, is up 24% while Exxon Mobil has gained 17% and Shell has risen 4.6% since the beginning of 2024.
A stock market rout led by Japan, where the Topix index plunged 12.2% in its biggest one day loss in more than 30 years, is continuing as markets open across the rest of the world today, amid fears of an economic slowdown in the U.S. While the sell-off was less pronounced than in Japan, markets in the Middle East fell on opening, with the Saudi Tadawul All Share Index showing declines of more than 3%, Abu Dhabi’s FTSE ADX down more than 3% and Dubai Financial Market’s General Index falling more than 4%. Dubai’s largest property developer, Emaar, was among the hardest hit, with its shares plunging more than 8% in the UAE. European markets opened down, with the tech sector leading falls and U.S. stock futures pointing to heavy losses when markets open.
SUCCESSION PLAN
Asia’s second richest man Gautam Adani has laid out his succession plans for the first time, telling Bloomberg in a rare interview that he will retire at 70 and hand over the reins of his vast Adani Group conglomerate to his two sons, Karan and Jeet, and their cousins, Pranav and Sagar. The 62-year-old tycoon is currently the 11th richest individual in the world, with a net worth of more than $100 billion, and has deep business connections in the Gulf from ports and power to tech and AI. Planning for one of the world’s largest and most complex transfers of wealth kicked off in 2018 when Adani invited the four heirs to lunch at his home and gave them a three-month ultimatum to decide whether they would keep the Adani Group together or split it up and part ways, Bloomberg reported. The four men decided to stick together. “I am happy that all of them are hungry for growth, which is not common in the second generation,” Adani said. “They have to work together to build a legacy.”
💲 Sovereign Circuit
Mubadala: MGX, the artificial intelligence mega-fund created in January through a partnership between Mubadala and G42, has reportedly joined a consortium in a bid for Australian data center AirTrunk in a deal worth more than $12.8 billion. The consortium is led by IFM Investors, DigitalBridge, Silver Lake Management, and Global Infrastructure Partners.
Abu Dhabi Investment Authority: L’Oreal is buying a 10% stake in Galderma Group, a Swiss maker of injectable skin fillers, from a consortium that includes ADIA, Sunshine SwissCo and Auba Investment.
International Holding Company: Enersol, a joint venture between ADNOC Drilling and IHC-controlled Alpha Dhabi Holding, is set to acquire EV Holdings, which provides vision-based diagnostics and analytics services for the oil and gas sector, for approximately $45 million from UK-based private equity firm, Dunedin.
Qatar Investment Authority: Nasser Al-Khelaifi, chairman of QIA-owned Qatar Sports Investments, the majority owner of the Paris-Saint Germain football club, has become one of French soccer’s most influential figures, Bloomberg reports.
↪↩ Closing Circuit
🛢️ Oil Drilling: A unit of Sweden’s Tethys Oil was granted a loan facility for $60 million from Abu Dhabi Commercial Bank to support its drilling for oil at two sites in Oman.
🏡 At Home Abroad: Egypt’s Beit Al-Watan initiative, which encourages Egyptians living abroad to invest in the domestic housing market, has brought in $7.3 billion since its launch in 2012, the government said.
🏦 Banking Bid: Dubai-listed Emirates NBD has been shortlisted to submit a bid to buy a majority stake in Indian state-backed IDBI Bank, vying with Canada-based Fairfax Financial Holdings and Indian lender Kotak Mahindra Bank, Reuters reports.
⌚ Time Flies: Titan Watches, part of Indian conglomerate Tata Group, plans to open 35 outlets across the Gulf region over the next 12 months, Arabian Business reports.
💼 Slowing Down: Non-oil business activity in the UAE improved at the weakest pace in almost three years in July amid heightened competition, rising price pressures and capacity overloads, according to the seasonally adjusted S&P Global UAE Purchasing Managers’ Index.
🗣 Circuit Chatter
🛩️ Fraud Alert: The UAE’s Securities and Commodities Authority and Etihad Airways issued notices alerting the public to fake advertisements inviting people to invest in a fictitious IPO for the Abu Dhabi airline.
🛫 Flights Grounded: Many international airlines, including Lufthansa, British Airways and Air India, are canceling flights to Beirut and Tel Aviv amid concerns of growing escalation in the Middle East conflict.
🩺 Luxury Hospital: Oman’s Badr Al Samaa Royal Hospital was opened as a private healthcare facility in the capital city of Muscat offering “world-class medical care in a luxurious environment.”
✈️ Not for Sale: Egypt is seeking private investment in its airports and flight support services, but doesn’t plan to sell any of the facilities outright, Civil Aviation Minister Sameh El-Hefny said.
🍗 Boycott Bite: Revenues have fallen significantly at American brands in Muslim countries such as Kentucky Fried Chicken, Starbucks and Coca-Cola because of consumer boycotts, as fighting in Gaza goes into its 10th month, the Financial Times reports.
📃 AI visa drive: The UAE will streamline processes for a two-month residency visa amnesty using artificial intelligence, The National reports.
🌍 Power Circuit
UAE President Sheikh Mohamed bin Zayed conveyed his condolences to Abdul Hamid Dbeibeh, Prime Minister of Libya’s Government of National Unity, over the death of his son, Abdulrahman.
➿ On the Circuit
Nabil Ouajjane, founder of London-based Aster Capital Management, is moving to Dubai and opening an office amid a wave of investment firms building up their presence in the Gulf.
Nicolai Tangen, CEO of Norway’s $1.7 trillion NBIM investment fund, is increasingly backing shareholder activists on climate action and corporate governance, Fortune reports.
Sheikh Abdullatif Al-Asheikh, the Saudi Minister of Islamic Affairs, Dawah, and Guidance, met with Syrian Minister of Awqaf Mohammad Abdul-Sattar Al-Sayyed in Mecca on Sunday on the sidelines of the Conference of Ministers of Awqaf and Islamic Affairs.
🎶 Culture Circuit
⚾ Batter Up: Baseball United, the first professional baseball league focused on the Middle East and South Asia, announced plans to start its opening season Oct. 23 in the UAE, with a championship tournament scheduled for next February.
📷 Photo of the Day
Umar Nurmagomedov of Russia celebrates after defeating Cory Sandhagen in a bantamweight fight during UFC Fight Night at Etihad Arena in Abu Dhabi on Saturday. (Photo: Getty Images)
🗓️ Ahead on The Circuit
July 2-Aug. 25, Riyadh, Saudi Arabia: Esports World Cup. An international competition for professional gamers with a $60 million prize pot. Boulevard City.
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.
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. 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.
PIF-backed Acwa Power eyes share sale
Saudi Arabia’s energy firm Acwa Power is planning to raise 7.1 billion riyals ($1.9 billion) by issuing stock to existing shareholders days after Saudi Aramco landed $11.2 billion in its own share sale.
Acwa Power, which is 44% owned by the Saudi Public Investment Fund, is one of the leading firms in Saudi Arabia’s decarbonization and diversification strategies.
The company is planning to double annual investments to $2.5 billion in an international push into renewables and hydrogen, as well as projects in the kingdom, Bloomberg reports.
Acwa’s shares have increased about 570% since listing on the Saudi Tadawul Exchange in October 2021.
The Daily Circuit: Saudi Arabia’s FII lands in Brazil + Nvidia pitches at the Museum of the Future
👋 Hello from the Middle East!
Today in The Daily Circuit, we’re looking at the latest share sale out of Saudi Arabia, AI power players like Nvidia making their pitch at Dubai’s Museum of the Future, the mud-brick palaces dusted off in Saudi’s tourism push and a possible windfall for ADQ’s PureHealth. But first, the FII crowd has landed in Rio de Janeiro.
Saudi Arabia’s Future Investment Initiative, which hosts the annual “Davos in the Desert” gabfest, begins its first gathering in Latin America today. Following a buzzy meeting of FII PRIORITY in Miami earlier this year, the kingdom is broadening its sphere of influence with a summit drawing some of South America’s biggest names in business and government to the Copacabana Palace in Rio de Janeiro. This iteration will delve into climate action, the Gulf’s emergence among the BRICS nations and new technology.
FII, which counts the Public Investment Fund as a founding partner, is bringing together powerbrokers amid a flurry of trade activity between Saudi Arabia and Brazil. The two countries have discovered common ground on food security, mining and aviation, with Brazil hitting a 10-year high in export activity to the kingdom in 2023.
The most recent deals include an agreement between Lulu, the Middle East’s biggest supermarket chain, and Brazil’s trade agency to promote Brazilian foodstuffs in the Saudi market, signed last week. In May, Brazilian mining giant Vale sold a 10% stake of its base metals unit for $2.5 billion to Manara Minerals, a joint venture between Saudi mining firm Ma’aden and the PIF. That same month, Brazilian aviation company Embraer inked cooperation agreements in the kingdom, with the airplane manufacturer planning to build or assemble its aircraft in Saudi Arabia under the deal. All of this comes as the kingdom mulls opening an investment office in South America’s biggest economy.
Speakers on the agenda at this FII gathering include Yasir Al-Rumayyan, Governor of the Public Investment Fund and Chairman of the FII Institute; Reema Bint Bandar Al Saud, Saudi Ambassador to the U.S.; Faisal Bin Bandar Al Saud, Chairman of the Saudi Esports Federation; and Mike Pompeo, former U.S. Secretary of State. Also scheduled to speak are Khalid bin Abdulaziz Al-Falih, Saudi Minister of Investment; Martin Sorrell, Executive Chairman of S4 Capital Group; André Esteves, Chairman of BTG Pactual; Bernard Mensah, President of International at Bank of America; and Julia Dias Leite, CEO of the Brazilian Center for International Relations.
Saudi Arabia’s energy firm Acwa Power is planning to raise 7.1 billion riyals ($1.9 billion) by issuing stock to existing shareholders days after Saudi Aramco landed $11.2 billion in its own share sale. Acwa Power, which is 44% owned by the Saudi Public Investment Fund, is one of the leading firms in Saudi Arabia’s decarbonization and diversification strategies. The company is planning to double annual investments to $2.5 billion in an international push into renewables and hydrogen, as well as projects in the kingdom, Bloomberg reports. Acwa’s shares have increased about 570% since listing on the Saudi Tadawul Exchange in October 2021.
CHIPS FOR SALE
The convening of an “AI Retreat” at Dubai’s Museum of the Future today has presented a sterling opportunity for some of the biggest names in chips and data storage to show off their wares before some of the UAE’s top decision-makers in government. Executives from Nvidia, Google Cloud, Microsoft, AWS, Oracle and IBM are all taking the stage today to tout their products as the UAE’s biggest city accelerates plans to implement AI across government services and attract more business from deep tech firms. On the sidelines of the gathering, Omar Al Olama, UAE Minister of Artificial Intelligence, said the UAE is looking to position itself as a top destination for advanced chip manufacturing, in an interview with Bloomberg. He added that he believes U.S. security concerns over technology leaking from the Middle East and into China are understandable. “Sometimes you are a victim of the neighborhood you are in,” he said.
UNBURIED TREASURE
Saudi investment in heritage tourism is starting to pay off
Visitors at the Maraya concert hall, the world’s largest mirrored building, among the ruins of AlUla, Saudi Arabia. (Photo: Getty Images)
Across Saudi Arabia, ancient sites filled with the remnants of mud-brick imperial palaces and rocky Nabatean tombs are coming back to life, Rebecca Anne Proctor writes for The Circuit.
Desert Drawcard: From Riyadh’s Diriyah royal district and storied Red Sea port of Jeddah to the desert region of AlUla, the kingdom is spending lavishly to uncover its buried past and use it as a draw for both foreign and domestic tourists.
Rich Rewards: Over the last five years since Saudi Arabia first introduced online visas for international visitors, tourism has grown dramatically. More than 100 million visitors entered the kingdom in 2023, a 56% increase from 2019.
Investment Corp. of Dubai: Brookfield Asset Management agreed to sell the Conrad hotel in Seoul to ARA Korea REF, a real estate fund, for about $302 million, Bloomberg reports. In April, Brookfield and the Dubai sovereign wealth fund announced the sale of a 49% stake in Dubai’s $1.5 billion ICD Brookfield Place tower to a pair of Middle Eastern investors.
ADQ: Abu Dhabi energy company TAQA, owned by ADQ, has confirmed it ended talks with Spanish group Criteria Caixa to jointly take over Spanish gas and power firm Naturgy Energy Group. TAQA had been holding discussions with private equity investment firms GIP and CVC to acquire their shares in Naturgy, according to a statement to Abu Dhabi Securities Exchange on Tuesday. Meanwhile, ADQ-backed PureHealth is in line for a potential $800 million windfall, if U.S. subsidiary Ardent Health’s July ambitions for an IPO go to plan.
↪↩ Closing Circuit
🪪 Passport Printer: Abu Dhabi-based E7 Group plans to invest $50 million in its E7 Security business, aiming to strengthen its passport manufacturing capacity and enter the digital tax stamps market.
📱 Hold the Phone: HMD Global, the Finnish manufacturer of Nokia mobile phones, plans to produce 4 million traditional and smartphones annually in Egypt for export across Africa.
💸 Building Portfolio: UAE-based Magellan Group agreed to pay more than $750 million to acquire Danish Ship Finance as it seeks to build a diverse investment portfolio.
🗣 Circuit Chatter
🩺 AI Healthcare: Saudi Arabia is aiming to integrate artificial intelligence across its healthcare sector by 2030, developing AI applications ranging from robot-assisted surgery and imaging to genomics and medical education.
🏭 Aluminum Complex: Oman is planning to build a special complex for aluminum manufacturers in Suhar Industrial City, assembling an interagency team to visit the site and help the industry become competitive.
👛 Super Suq: Bahrain is moving ahead with eight-year-old plans to give the Manama traditional suq, or market, a modern facelift, using technology to improve the visitor experience.
🏗️ On Hold: U.S. chipmaker Intel is halting plans for a $25 billion factory in Israel, Calcalist reported.
⛱️ No R&R: American activist hedge fund Elliott Investment Management, founded by Paul Singer, is gearing up for a busy summer after taking seven new stakes in major companies around the world since April, according to data compiled by Bloomberg.
🌍 Power Circuit
Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, on Monday approved legislation addressing the expansion of self-driving vehicles and electric cars. Sheikh Mohammed chaired the UAE Cabinet meeting at Qasr Al Watan in Abu Dhabi, where the Cabinet reviewed and approved a range of initiatives, including the Ethical Charter of Development and Use of AI, which defines how AI should be used ethically and responsibly. At the same meeting, the Cabinet reviewed progress on the Emirati Genome Program, an effort to sequence the DNA of every citizen in the country.
UAE President Sheikh Mohamed bin Zayedreceived a phone call on Monday from Mark Rutte, Prime Minister of the Netherlands. The pair discussed bilateral relations and reviewed regional and international developments.
Hassan Berkani, President of the Casablanca-Settat Chamber of Commerce, Industry and Services, confirmed that the UAE is the largest Arab investor in Morocco, with investment volumes expected to double in the coming years, speaking on the sidelines of a trade mission organized by the Dubai International Chamber.
➿ On the Circuit
Dr. Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology, was elected chairman of Presight Holding, an Abu Dhabi-listed artificial intelligence company owned by G42, replacing Mansoor Al Mansoori who becomes Vice Chairman. Al Jaber is also CEO of the national oil company ADNOC, President of the COP28 climate summit and Chairman of alternative energy firm Masdar.
Edgar Bronfman Jr., with backing from private-equity firm Bain Capital, has expressed interest in buying National Amusements, the company that controls Paramount Global, for as much as $2.5 billion, the Wall Street Journal reports.
Indian Oil Minister Hardeep Puri’s appointment to a second term on Monday underlines Prime Minister Narendra Modi’s belief that the former diplomat is best suited to manage ties with Saudi Arabia, Russia and other fuel suppliers, Bloomberg reports.
🎶 Culture Circuit
💃 Eid Entertainment: While many UAE residents will take the opportunity for a short vacation for the Eid Al Adha holidays, falling on June 16-18 this year, there are also plenty of live shows for those staying close to home. The National rounds up 10 concerts and events, from late Egyptian singer Umm Kulthum’s hologram concert returning to Dubai, to “Matilda, The Musical” at Abu Dhabi’s Etihad Arena.
🗓️ Circuit Calendar
June 11-13, Rio de Janeiro, Brazil: Future Investment Initiative Priority Summit. Saudi Public Investment Fund holds FII conference for first time in Latin America. Copacabana Palace.
June 16-18, Across MENA: Eid Al Adha. Government offices and businesses are closed throughout the region for the Islamic holiday.
June 22-23, New York City: Mubadala New York Sail Grand Prix. Flying catamarans compete at SailGP’s two-day racing festival in New York Harbor. Governors Island.
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.
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.
Saudi Aramco prepares for $10 billion share sale amid oil cuts
Saudi Aramco, the world’s largest oil company, is generating renewed energy among investors as it moves forward with a secondary offering.
The share sale is currently being planned to start on Sunday with the booking process to take orders and could raise more than $10 billion, making it the largest offering of its kind in years, Bloomberg reports.
No final decisions have been made on the offering period and terms of the deal, including its size, could still change, according to the news agency.
Aramco didn’t immediately respond to requests for comment.
The offering is set to come days after Aramco’s stock dropped to the lowest level in over a year.
The deal’s opening will coincide with next week’s OPEC+ meeting to discuss oil output policy, where the group is expected to maintain supply curbs.
Saudi Arabia’s production is close to its lowest level in three years.
