Egypt intercontinental rail plan needs go-ahead for Saudi bridge
Egypt is aiming to link its expanding railway network with Asia and Europe, but it hasn’t yet been able to finalize plans to build a bridge to Saudi Arabia.
In the meantime, it will use ships to bring cargo across the Red Sea, Reuters reports. Saudi’s King Salman first announced the bridge project in 2016, envisioning a road that would cross the Straits of Tiran to Egypt’s Sinai Peninsula.
If completed, the route would compete with another notional rail project that would connect the UAE to Israel’s Haifa Port through Saudi Arabia and Jordan.
Another project on the drawing board would run north from the Gulf through Iraq.
The Daily Circuit: UAE minister steers Rorix + ADIA’s acquisition
👋 Hello from the Middle East!
Today in the Daily Circuit, we’re looking at ADIA’s interest in the $6.9 billion acquisition of Hargreaves Lansdown, Saudi King Salman’s new royal decree, the Emirati crackdown on gold refineries and Saudi efforts to lure Hollywood movie producers. But first, the UAE’s foreign trade minister takes on an additional job.
The manner in which government and corporate business come together in the UAE’s capital has earned it the name Abu Dhabi Inc. The latest example surfaced on Thursday with the appointment of Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade, to serve as Executive Chairman of Rorix Holdings.
The Abu Dhabi-based company, a new subsidiary of state-owned International Holding Co., is being set up to capitalize on the series of free-trade agreements signed by the UAE with countries including India, Indonesia, Israel, Turkey, South Korea and Chile. More than a dozen others are in various stages of negotiation.
Over the past three years, Al Zeyoudi has been the chief negotiator and globe-trotting evangelist for the pacts, known as Comprehensive Economic Partnership Agreements, which are designed to reduce or eliminate import fees and other tariffs between participating nations. Now he will formally steer the financial services company established to channel profits from the trade relationships into the UAE’s $500 billion economy.
Framing the company’s mission, Al Zeyoudi said in a statement that Rorix will seek to “accelerate trade volumes, attract foreign investment, and build economic partnerships that drive sustainable growth” for a range of industries across the UAE.
BY DECREE
Saudi Arabia’s Cabinet will be allowed to convene and make decisions even when King Salman and de facto ruler Crown Prince Mohammed bin Salman are absent, according to a royal decree issued on Thursday. Under the new policy, meetings can be chaired by the eldest member of the Cabinet descended from founding King Abdulaziz Al Saud. Decisions made by the Cabinet would then be signed off by the Chairman. The 88-year-old King Salman, who took the throne in 2015, was treated for lung inflammation in May, sparking concerns for his future health. However, he appeared via video link to chair a Cabinet meeting with his son by his side just one week later.
GOLDEN RULE
From gold leaf-adorned steaks at high-end restaurants to vending machines that dispense gold bars, the UAE’s love of the yellow metal is well recognized. But the country’s place at the center of the global gold trade — Dubai in particular hosts one of the largest precious metals trading hubs in the world — has its challenges when it comes to combating money laundering. The UAE suspended 32 gold refineries for three months this week, charging them with 256 violations, for failing to follow anti-money laundering laws, after carrying out a series of inspections. The crackdown is a part of the emirates’ considerable efforts in recent years to reform laws around money-laundering and the prevention of the financing of terrorism, with the global anti-money laundering watchdog, the Financial Action Task Force, dropping the UAE from its gray list earlier this year.
Abu Dhabi Investment Authority: A private equity consortium, including ADIA, has made a $6.9 billion deal to acquire the U.K.’s biggest retail investment platform Hargreaves Lansdown. Hargreaves unanimously recommended the offer by CVC Capital Partners, Nordic Capital and ADIA subsidiary Platinum Ivy to shareholders at a price of 1,140 pence a share. Meanwhile, ADIA was named among the investors in U.S. travel tech firm Flyr’s $295 million Series D funding round.
ADQ: Egyptian Prime Minister Mostafa Madbouly convened a meeting on Wednesday to facilitate construction of the Ras El Hekma seaside resort development, in which an ADQ-led consortium has invested $35 billion.
Qatar Investment Authority: The QIA is expected to see substantial growth in its assets under management in coming years, driven by an increase in the country’s liquefied natural gas (LNG) export capacity, according to Debtwire.
📊 Whipping Inflation: Egyptian inflation slowed for a fifth month to its lowest level since late 2022, defying economist predictions that the government’s dramatic currency devaluation in early March would kickstart price hikes.
🌐 Digitizing Finance: The UAE Banks Federation will collaborate with the Institute of Chartered Accountants in England and Wales to help firms deal with the new business landscape of digital assets that is projected to reach more than $80 billion this year.
⚡ Charging Network: Oman’s Muscat Gases signed an agreement with Taiwan-based Zerova Technologies to build a network of charging stations across the country for electric vehicles.
🏭 Omani Terminal: Apollo Global Management, the New York based asset manager, will invest $600 million for a 50% interest in a joint venture with Brazil-based Vale, which operates a maritime terminal in Oman that includes a large deep-water jetty and an iron ore plant.
🔭 Space Balloon: Halo Space, a Madrid-based company developing a capsule that will take tourists 30 kilometers (19 miles) above the earth suspended from a balloon, will launch its sixth unmanned test flight from Saudi Arabia next month, with plans for manned test flights in 2025.
🌀 Wind Turbines: Egypt is considering a proposed deal with Abu Dhabi-based sustainable energy company Masdar to build a wind farm with a total capacity of 200 megawatts.
⚗️ Chinese Chemicals: Saudi Aramco is looking to invest in more chemical plants in China this year, adding to deals it’s already clinched in the country to secure long-term buyers for its crude, Bloomberg reports, citing remarks by Chief Executive Officer Amin Nasser.
🚢 Keep Out: The UAE has banned arriving ships that carry the flag of African nation Eswatini, the latest sign the Gulf state is distancing itself from risky vessels that help haul Russian oil supplies, Bloomberg reports.
Jasem Mohamed AlBudaiwi, Secretary General of the Gulf Cooperation Council, paid a visit this week to Kuwait where he met Foreign Affairs Minister Abdullah Al-Yahya.
Emir of Qatar Sheikh Tamim bin Hamad al-Thani met with Turkish President Recep Tayyip Erdogan during a brief visit to Ankara on Thursday. The pair appealed for greater international efforts to stop conflict in the Middle East from escalating.
Antonoaldo Neves, CEO of Abu Dhabi-based Etihad Aviation Group, told The National he has six words for incoming Boeing CEO Kelly Ortberg: “Please deliver my planes on time.”
Mohammed Alardhi, the Executive Chairman of Investcorp, says Oman’s plans to develop a film city near Muscat will enrich the Gulf’s rapidly growing arts and culture landscape.
📽️ First Take: Saudi Arabia is hoping that its major investment in filming infrastructure and generous incentives to attract Hollywood producers will ultimately help to nurture its homegrown talent and accelerate the local industry’s efforts to scale up, Bloomberg reports.
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.
Aug. 24-25, Riyadh, Saudi Arabia. New Global Sports Conference. Uniting top players to showcase how esports can create new global opportunities. Four Seasons Hotel Riyadh.
Aug. 31-Sept. 8, Abu Dhabi, UAE. Abu Dhabi International Hunting and Equestrian Exhibition (ADIHEX). The premier event for hunting, falconry and equestrian enthusiasts in the Middle East. ADNEC.
Sept. 1-7, Dubai, UAE. Dubai Fashion Week. Promoting Dubai’s creativity and fashion businesses to a worldwide audience. Dubai Design District.
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.
