The Daily Circuit: Saudi jobs slowdown + Masdar’s Spanish solar deal
š Hello from the Middle East!
In the Daily Circuit today, weāre looking at Masdarās solar purchase in Spain, the minority interest acquired in Khazna data centers by MGX and Silver Lake, Abu Dhabi-based Agthiaās acquisition of Riviere, and customers lining up for a $49 million penthouse in the Burj Khalifa. But first, job growth is slowing in Saudi Arabia.
Across-the-board budget cuts at companies owned by Saudi Arabiaās Public Investment Fund are likely to chill employment growth in the kingdom amid declines in oil revenue and foreign investment.
After hitting close to 10% in 2022, growth in recruitment for jobs may slow to 3% by the beginning of next year, a report by the consulting firm JLL Middle East predicts.
The $925 billion sovereign wealth fund has ordered spending cuts across all of its portfolio companies, leading to layoffs, hiring freezes and project delays. Nearly 2 million expatriates have joined the workforce in Saudi Arabia over the past two years, according to government data.
The PIFās downsizing order reflects the kingdomās widening budget deficit, which has developed through a decline in both the volume and value of oil exports.
The budget deficit and employment slowdown could also pose challenges for Saudi Arabia as it builds ambitious projects such as Neom and prepares to host major global events including Expo 2030 and the FIFA World Cup, JLL notes.
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š° Developing Stories
ELECTRIFYING AFRICA
Solar mini-grids are introducing electricity to remote African villages and providing opportunities for energy companies in the Gulf. Rollout of the equipment got a boost in January from the World Bank, which launched a program to provide electricity to 300 million Africans by 2030 that could attract some $85 billion in investment, Bloomberg reports. Yariv Cohen, co-founder and CEO of Abu Dhabi-based Ignite Power, said the money puts the continent at an āinflection point.ā It comes at a propitious moment for Ignite, which is in the process of acquiring the African mini-grid business of French utility Engie SA, a key power supplier to Mwale.
SKY PALACE
A duplex penthouse in Dubaiās Burj Khalifa skyscraper that carries a $49 million asking price is attracting interest from American buyers, including basketball players, boxers and Nascar drivers. The apartment on the 107th and 108th floors of the worldās tallest building is unfinished, with its concrete floors and wraparound glass windows waiting to be fit out by its new owner, real estate agent Asad Khan tells Business Insider. Measuring 21,000 square feet, the apartment is being marketed as a āSky Palace,ā with amenities that include a private elevator, an indoor pool and 12 parking spaces. The 163-story Burj Khalifa, which was completed in 2010 by Emaar Properties, stands 2,722 feet and contains a mixture of office, residential, hotel, restaurant and retail space.
š² Sovereign Circuit
Mubadala: The Abu Dhabi sovereign wealth fund has increased its investment in U.S. real estate lender 3650 Capital, joining the California State Teachersā Retirement System in providing $215 million to help the firm broaden its investment products.
Masdar, the UAE renewable energy firm backed by ADNOC said it bought Valle Solar, one of the largest photovoltaic solar projects in Spain’s Valencia region.
MGX: Abu Dhabi-owned MGX and U.S. private equity firm Silver Lake have acquired a minority stake in Khazna Data Centers following last monthās exit by UAE telecom e&.
āŖā© Closing Circuit
š° Water Purchase: The UAEās Agthia Group has acquired water desalination firm Riviere and plans to triple its household customer base to boost revenue.
š¦ Tech Finance: Dubai-based VEON has obtained a $210 million syndicated loan from ICBC Standard Bank and a consortium of other Gulf lenders for its digital tech business in Pakistan and across Eastern Europe.
ā½ Gas Power: EHC Investment, through its energy arm Emirates International Gas, has fully acquired Al Fanar Gas Group, a UAE gas services provider.
āļø Airport Stake: Qatarās Lesha Bank acquired a minority stake in Edinburgh Airport, Scotlandās busiest, through an infrastructure-focused investment fund.
š£ Circuit Chatter
š« Dubai Chocolate: British supermarket chain Waitrose is rationing the knafeh-like Dubai chocolate bars that have become a world sensation, limiting customers to two, The National reports.
šµ Wage Hike: Oman plans to raise its minimum wage by 20% to address rising living costs, Manpower Minister Mahad Baawain said.
š¢ļø Refinery Partners: Saudi Aramco is in talks to invest in two planned refineries in India to secure a stable crude outlet in the fast-growing market.
šļø Resort Disaster: A tourist submarine sank off the coast of Egyptās Red Sea resort of Hurghada, killing six people aboard, with 39 rescued.
š Power Circuit
Sheikh Mansour bin Zayed, the UAE Vice President, Deputy Prime Minister and Chairman of the Presidential Court, hosted government employees at an Iftar gathering at his palace’s Al Barza Majlis in Abu Dhabi.
Crown Prince Hussein of Jordan called on the National Council for Future Technology to focus on improving the countryās digital infrastructure in a speech on Wednesday at Al Husseiniya Palace.
āæ On the Circuit
James Gorman, former Chairman of both Morgan Stanley and Disney, will join General Atlantic as a Senior Adviser as the U.S. private equity firm decides whether to go ahead with an IPO.
Jim Zelter, President of Apollo Global Management, said that private credit is not a ābubbleā and an economic slowdown will not trigger āmassive lossesā in the growing sector, speaking at an HSBC financial conference in Hong Kong.
Rania Al-Mashat, Egyptās Planning Minister, said that Egypt is expected to sign an agreement with the European Union later this year on financing worth $4.3 billion.
Gili Raanan, founder of the Israeli venture capital Cyberstarts, discusses Googleās $32 billion acquisition of Wiz, in which his firm was an early investor, on the āInvest Like the Bestā podcast.
š¶ Culture Circuit
š¤ Arabian Gig: American rapper Wiz Khalifa said he recently made $3 million for a 45-minute show in Saudi Arabia. Though he didnāt specify the exact event while chatting in a studio session with fellow rapper DDG, Hypefresh suggests the big payday came in January at the Balad Beast 2025 festival in Jeddah, which brings global superstars to Saudi Arabia every year.
š· Photo of the Day
š Circuit Calendar
March 1-30, Abu Dhabi. Ramadan and Eid exhibition. The exhibition will showcase companies displaying an array of fashion, accessories, perfumes and other gifts. ADNEC.
April 7-9, Abu Dhabi. AIMCongress 2025. An investment platform bringing together thought leaders, decision-makers and entrepreneurs. ADNEC.
April 7-9, Dubai. Middle East Energy. Bringing together international energy suppliers to discuss products and solutions. Dubai World Trade Centre.
April 11-13, Sakhir, Bahrain. F1 Gulf Air Bahrain Grand Prix. Formula 1 racing returns to the Gulf island state. Bahrain International Circuit.
April 13-15, Riyadh. Saudi Food Manufacturing. Back for a second year, the focus turns to logistics solutions, including advancements in AI-driven supply chains, robotics, and sustainable automation technologies. Riyadh Front Exhibition & Conference Centre.
April 14-16, Dubai. IPS Congress. The Middle Eastās largest international property sales event. Dubai World Trade Centre.
April 15-17, Dubai. Abu Dhabi Global Health Week. A critical worldwide forum dedicated to shaping the future of health. ADNEC.
April 16-17, Dubai. FastBull Finance Summit Dubai. Focused on the depth and breadth of global finance, emphasizing areas such as forex and blockchain financial technology. Coca-Cola Arena.
April 17-19, Dubai. World Art Dubai. Annual retail art fair featuring more than 10,000 works for sale. Dubai World Trade Centre.
April 18-20, Dubai. Art Dubai. Three-day city festival spotlights more than 100 contemporary, modern and digital galleries from the UAE and over 40 other countries. Madinat Jumeirah.
April 18-20, Jeddah. STC Saudi Arabian GP. The Formula 1 Saudi Arabian Grand Prix by STC returns, promising an electrifying high-speed spectacle on the Red Sea. Jeddah Corniche Circuit.
April 18-20, Abu Dhabi. Middle East Film and Comic Con 2025. The regionās largest pop culture festival returns for its 13th year. ADNEC.
April 21-23, Abu Dhabi. Electric Vehicle Innovation Summit 2025. The Middle Eastās largest annual event dedicated to shaping the future of electric mobility. ADNEC.
April 21-25, Dubai. Dubai AI Festival. Bringing together the brightest minds to explore and expand the commercial and economic possibilities of AI technology.ā Madinat Jumeirah.
April 29-30, Abu Dhabi. Digital Transformation Summit UAE 2025. In its 37th edition, the summit is expected to be attended by over 300 C-suite executives, directors, and technology leaders. Sheraton Abu Dhabi Hotel and Resorts.
April 30. May 1, Dubai. Token2049 Dubai. A global conference dedicated to the crypto and blockchain ecosystem. Madinat Jumeirah.