PIF’s Al-Rumayyan tips Saudi sovereign fund’s new strategy
Saudi Arabia’s $1 trillion Public Investment Fund is working on a new game plan aimed at generating greater returns over the next 15 years from the kingdom’s vast sovereign wealth.
In an onstage interview on Monday, PIF Governor Yasir Al-Rumayyan said the fund will focus on drawing international investors to Saudi Arabia, while pouring the bulk of its money into the country’s ambitious domestic projects, Bloomberg reports.
“In the coming two months or so, we will set the new strategy for the PIF, which is a continuation from the original one, until 2030 and from 2030 all the way to 2040 and beyond,” Al-Rumayyan told interviewer David Rubenstein, the co-founder of Carlyle Group, at the Economic Club of Washington D.C.
Currently, about 80% of the PIF’s capital is invested locally, with a smaller portion deployed internationally. Among the largest recipients of the fund’s money are the kingdom’s megaprojects such as NEOM on the Red Sea coast, the Diriyah historic district in Riyadh and the Qiddiya sports and entertainment district.
“We need to increase and grow our local content and one of the best ways to do so is to get direct foreign investments to the country,” Al-Rumayyan said.
Asked about the PIF’s upstart LIV Golf league, Al-Rumayyan expressed confidence that cooperation will grow with the PGA Tour even though a planned merger between the two has stalled. “I think hopefully in the future we will be able to bring the game of golf together,” he said.
Gulf-backed AI firms face hurdles despite billions in funding
AI firms that have raised billions of dollars from Gulf sovereign wealth funds and state-owned companies are running into trouble.
Many are discovering the pitfalls of required local partnerships and the difficulty of building and running data centers in the region, The Information reports.
AI chipmaker Groq, for instance, got a $1.5 billion commitment from Saudi Aramco but later had to cut its revenue projections because of the lack of data capacity in the region.
Rival Cerebras made what proved to be onerous concessions to Abu Dhabi’s G42 as part of a $300 million investment deal, the online news platform said.
In spite of the problems, foreign AI companies continue to seek cash from the Mideast’s biggest funds, The Information said.
G42 board plots AI strategy with Microsoft’s Smith at the table
G42, the Abu Dhabi technology firm backed by the emirate’s sovereign wealth and Microsoft, is cooking up plans for its new investments in artificial intelligence next year.
At a board meeting on Thursday led by G42 Chairman Sheikh Tahnoon bin Zayed, who is also the UAE’s Deputy Ruler and National Security Advisor as well as Chairman of ADIA and International Holding Co., the company worked out its growth strategy for 2025.
Among those around the board table were Mubadala CEO Khaldoon Al Mubarak, G42 CEO Xiao Peng, G42 Group Counsel Marty Edelman, Microsoft President and Vice Chairman Brad Smith, and Bridgewater Associates Founder Ray Dalio, Etisalat Chairman Jassem Al Zaabi and Silver Lake Technology CEO Egon Durban.
“We emphasized the Group’s crucial role in shaping the future of global technology and making innovation a cornerstone for a more prosperous future globally,” Sheikh Tahnoon said in an Instagram post.
As G42 grows, Saudi Arabia is planning a new AI initiative with as much as $100 billion in backing as it seeks to compete with the UAE, Bloomberg reports. A tech hub being built by the Saudi Public Investment Fund and Google may serve as the starting point for the project, the news agency said.
The Daily Circuit: Abu Dhabi tops Oslo for #1 sovereign wealth rating
Today in the Daily Circuit, we’re looking at NEOM’s new $187 million cement factory, PwC’s recognition of the UAE as a top global AI developer, Egypt’s accelerating inflation and QatarEnergy’s new 20-year contract with Shell. But first, Abu Dhabi takes the crown with $1.7 trillion in sovereign wealth.
Abu Dhabi, brimming with oil money and investment revenue, has become the city with the world’s largest accumulation of sovereign wealth.
Tallying up the combined assets of ADIA, Mubadala, ADQ and the Emirates Investment Authority, industry monitor Global SWF said Abu Dhabi has amassed $1.7 trillion, putting it ahead of Oslo’s $1.6 trillion, and funds in Beijing, Singapore and Hong Kong. Riyadh ranked No. 4 with $1.1 trillion in the Public Investment Fund.
Besides the sovereign funds, Global SWF notes Abu Dhabi’s growing prominence as a home for government-owned institutional investors, the world’s largest and most active deal makers. Among them are central banks, public pension funds and family offices linked to royal family members, the report said.
“All in all, we estimate Abu Dhabi’s public capital at $2.3 trillion and we project it to reach $3.4 trillion by 2030,” Global SWF said.
BUILDING NEOM
Saudi Arabia is taking concrete steps to accelerate construction of The Line, its planned trillion-dollar city of the future. NEOM, which runs the project and surrounding development of the kingdom’s Red Sea coast, signed a partnership agreement with a Saudi construction company to build cement factories costing $187 million that will be used for the structure, which is planned to extend 110 miles across the desert. The manufacturing facilities, which begin operations in November, will use carbon capture technology and a range of energy-saving innovations, NEOM CEO Nadhmi Al-Nasr told the Saudi Press Agency. He said the deal illustrates “the critical role local partnerships play in delivering this transformational project efficiently and sustainably.”
AI CAPITAL
The UAE is turning into one of the three top world centers for development of artificial intelligence technology, trailing only the U.S. and China. That’s according to a report by PricewaterhouseCoopers, which cites proactive initiatives taken by the government and strong information technology infrastructure for its strength in AI. Other key strengths exhibited by the UAE and its Gulf neighbors include abundant investment capital, a willingness to embrace new technologies and its strong relationships with international industry leaders such as Microsoft, Oracle and Amazon, according to PwC. The region is “well positioned to reap some of the economic benefits of AI, enhancing efficiency and driving innovation,” the report said.
Mubadala: Investors in Acelen, an oil refinery operator owned by the Abu Dhabi sovereign wealth fund, are losing patience as talks for a potential sale to Brazil’s state-controlled oil firm Petroleo Brasileiro SA drag on, Bloomberg reports.
Abu Dhabi Investment Authority: ADIA has written off its 9.9% stake in the parent company of Thames Water, the U.K.’s largest water utility.
ADQ: Burjeel Holdings, an Abu Dhabi-listed company, is expanding into Egypt after signing an agreement with Modon Holding to manage healthcare facilities in Ras El Hekma, part of the mega tourism project being financed by ADQ.
🕌 Islamic Finance: Saudi Arabia’s Al Rajhi Bank has secured a $1.9 billion syndicated loan compliant with Islamic financing rules and sustainability principles, Bloomberg reports, calling it the largest financing package from a Middle Eastern bank this year. The deal attracted nearly 20 lenders including Emirates NBD, HSBC, and Maybank.
🛢️ Supply Deal: QatarEnergy signed a 20-year contract to supply Shell with naphtha, a byproduct of fossil fuels that is used to make solvents, soaps and cleaning fluids.
🌀 Wind Power: AMEA Power, a subsidiary of UAE-based AlNowais Investments, plans to operate an $800 million wind farm in Ras Ghareb, Egypt, by next March.
💸 Hotel Loan: IFA Hotels and Resorts secured a $163 million refinancing loan from a UAE bank for its Fairmont The Palm property, Zawya reports.
🚰 Clean Water: Kando, an Israeli startup that uses artificial intelligence to optimize wastewater treatment, raised $10 million in a financing round with participation from OurCrowd, Bridges Israel and DC Thomson.
🍞 Flour Power: Saudi flour producer, Modern Mills secured a $232 million Murabaha loan, an Islamic finance structure, from Saudi National Bank to restructure its debt.
Circuit Chatter
⬆️ Prices Up: Egypt’s inflation accelerated for a second consecutive month, reaching 26.4% in September due to higher energy costs, Bloomberg reports, saying the development may delay the country’s first interest rate cut since 2020.
⛵ Full Sails: The SailGP international competition has strengthened its sponsorship lineup by securing Emirates airline and DP World as Global Series Partners for the upcoming season, SportBusiness reports.
📈 Stock Newbie: Hope Ventures, a key player in Bahrain’s startup ecosystem, became the second company the second company to list on the Bahrain Investment Market under the symbol “HOPE.”
🏠 Home Sale: Dubai Sotheby’s International Realty set a record in Abu Dhabi with the $35.4 million sale of a five-bedroom villa on Saadiyat Island, the most valuable home ever sold in the emirate.
Saudi Crown Prince Mohammed bin Salman “offered reassurances” about the health of King Salman during a cabinet meeting on Tuesday after the 88-year-old monarch was hospitalized for a lung infection.
Emir of Kuwait Sheikh Mishal Al-Sabah received a visit from Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, and UAE Deputy Prime Minister and Minister of Defense. The Emirati delegation included Mohammad Al Gergawi, Minister of Cabinet Affairs; Dr. Thani Al Zeyoudi, Minister of Trade; Reem Al Hashimy, Minister of State for International Cooperation; and Omar Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications.
Sheikh Abdullah bin Zayed, UAE Deputy Prime Minister and Minister of Foreign Affairs, held a call with Andrii Sybiha, the new Foreign Minister of Ukraine, to congratulate him on his post.
Sheikh Theyab bin Mohamed bin Zayed, Chairman of the UAE’s Office of Development and Martyrs Families Affairs at the Presidential Court, inaugurated the Global Rail Conference in Abu Dhabi on Tuesday.
Adhraa Almansoori, Director of Public Policy and Sustainability at the UAE’s Etihad Rail, announced at the rail conference that a new passenger station will be located in Fujairah’s Sakamkam area, alongside a second station in Sharjah’s University City, as part of a plan to connect 11 cities and regions.
Mariam al Mheiri, Chair of the International Affairs Office at the Presidential Court and the CEO of 2PointZero, a subsidiary of Abu Dhabi-owned International Holding Co., held a meeting with Jens Meier, CEO of Hamburg Port, to discuss potential areas of collaboration.
Jonathan Keyes was appointed as the new Head of Sustainable Finance for the Middle East region at ING. In his new role, Keyes will lead the bank’s sustainability initiatives focusing on integrating environmental, social and governance principles into the bank’s clients offerings.
Azza Aboualam was appointed as the curator of the National Pavilion UAE for the 2025 edition of the Venice Architecture Biennale. As the first Emirati woman to hold the position, she will be bringing a focus on local food production methods and its integration with architecture and built environment.
Eddie Diaz, a former Mexican Baseball League Hall of Fame manager and current Vice President for the new Gulf and Southeast Asian Baseball United league, was named to lead the UAE’s newly formed national baseball team.
🎤 Rapping in Dubai: British rapper Stormzy is set to headline the final night of the three-day Emirates Dubai 7s festival on Dec.1. The performance will be Stormzy’s first UAE performance since his appearance at the Abu Dhabi Grand Prix after-race concert in 2021. “Stormzy is one of the biggest names in music, and we couldn’t think of anyone better to close out our biggest festival to date,” festival director Mathew Tait told The National.
Oct. 8-10, Abu Dhabi, UAE: Global Rail. Conference brings together more than 150 leaders from the global transportation industry, including ministers, industry leaders and investors. ADNEC.
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. 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.
