SpaceX Archives

Gulf funds build future influence in backing Elon Musk’s ventures

Elon Musk’s plan to combine SpaceX and artificial-intelligence firm xAI into a $1.25 trillion venture is drawing renewed attention to the Gulf sovereign wealth funds that have invested in his companies.

Abu Dhabi’s Mubadala fund is one of SpaceX’s largest outside backers, meaning the proposed merger would deepen its exposure to Musk by effectively adding xAI’s assets to an investment long tied to rockets, satellites and launch services.

Providing Musk with large pools of long-term capital may boost the influence of Middle East investors in the future as the world’s richest man continues to expand his business empire.

Abu Dhabi is also connected to xAI through MGX, the AI-focused vehicle backed by Mubadala and G42, which has participated directly in xAI funding rounds alongside global giants such as Fidelity, Nvidia and Cisco.

Qatar’s sovereign wealth fund, the Qatar Investment Authority, is another prominent xAI investor, as is the Oman Investment Authority.

Saudi Arabia’s Public Investment Fund is involved with xAI through its minority stake in Kingdom Holding Co., the conglomerate majority-owned by Prince Alwaleed bin Talal.

Musk last visited the UAE in December, when he met with President Sheikh Mohamed bin Zayed and Dubai Crown Prince Sheikh Hamdan bin Mohammed.He made a high-profile appearance in Saudi Arabia last May when he attended the Saudi-U.S. Investment Forum in Riyadh and chatted on the conference floor with U.S. President Donald Trump and Saudi Crown Prince Mohammed bin Salman.

The Daily Circuit: Mecca draws foreign home buyers + Yango deploys robots

In The Daily Circuit today, we’re reporting on Mecca drawing buyers from abroad for second homes, Dar Global awarding a construction contract for Dubai’s new $1 billion Trump hotel, Yango and Noon deploying delivery robots across GCC, and Sarah Jessica Parker promoting Astrea’s lab-grown diamonds in Dubai. But first, tightening ties between the UAE and EU.

The UAE and the European Union have launched talks on formalizing a strategic economic partnership, aiming to deepen cooperation in such areas as green energy and artificial intelligence.

The negotiations build on earlier efforts this year to advance a free-trade pact, with multiple rounds of discussions already underway.

“This year marks an important inflection point,” UAE Minister of State Lana Nusseibeh said today at a Ministry of Foreign Affairs event in Abu Dhabi, The National reports. She described the parallel agreements as representing “a joint commitment to elevate our relationship to a new and more ambitious level.”

The EU is the UAE’s second-largest trading partner and a key investment destination, while the UAE is a major export and investment partner for Europe in the Middle East and North Africa.

Since 2022, the UAE has struck at least 20 trade agreements, known as Comprehensive Economic Partnership Agreements, including with Israel, India, Indonesia, Turkey, New Zealand, Vietnam and Cambodia.

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PROPERTY PILGRIMAGE

Mecca draws influx of foreign capital as Saudi Arabia eases real estate rules

Construction taking place behind the Grand Mosque in Mecca

The train from Jeddah glides into Mecca with a reminder on the travel app that this stop is “for Muslims only.”

The station could be anywhere in the Gulf – dotted with souvenir shops, mobile phone counters and a Costa coffee kiosk. Once you step outside, though, a sense of history and holiness reigns, The Circuit’s Omnia Al Desoukie reports.

For more than 1,400 years, Mecca has been defined by worship. Now, increasingly, it’s also shaped by real estate, with construction cranes dominating the skyline. “Why would people like me, and others who can afford it, want to buy there? To relax, to be close to God,” Anis Alhabshi, Vice President of real estate developer Arabian Dyar, said in an interview. “It has spiritual value.”

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📰 Developing Stories

OXFORD ST. OVERHAUL

A firm owned by Abu Dhabi’s ruling family has received rare planning permission to develop one of the biggest office projects ever built in London’s West End. Berkeley Estate Asset Management, which is owned by the Private Department of the President of the UAE, is planning to turn the former flagship BHS store and London College of Fashion buildings into 800,000 square feet (74,322 square meters) of office space and more than 100,000 square feet of stores, Bloomberg reports. The Al Nahyan family owns a far-reaching property portfolio in the U.K., including some of London’s most valuable real estate – much of it acquired under the late former ruler Sheikh Khalifa bin Zayed. The West End, which includes the famed Oxford Street retail strip where the project is located, is dominated by low-rise historical buildings which are protected under strict planning laws.

SAUDI SLUMP

Saudi Arabia’s stock market is ending the year with its worst performance since 2015, as emerging-market equities elsewhere rebound. Investors cite weak oil prices and projections of a potential “super glut” as reasons for avoiding the market, with Citigroup analysts recommending an underweight position, Bloomberg reports. Earnings growth for Saudi companies is expected to rise 2% next year, trailing the 13% forecast for the MSCI benchmark. Brent crude’s 17% drop and the market’s sensitivity to dollar movements have added pressure on public spending and corporate profits.

💲 Sovereign Circuit

Public Investment Fund: The PIF says it will do whatever it can to sign unsettled Liverpool star Mohamed Salah in the winter transfer window, closely monitoring his situation and considering either a loan or permanent move, Al Jazeera English reports.

MGX: The UAE-backed fund, founded just a year ago, has quickly become a top global data center financier, leading the largest data center sale negotiated so far, The Information reports.

Fundo Soberano de Angola: Angola’s sovereign wealth fund Fundo Soberano de Angola and investment firm Gemcorp Capital launched an Abu Dhabi-based $500 million pan-African Infrastructure Fund to tap Gulf investors with interest in Africa, FSDEA Chair Armando Manuel told Reuters.

ADQ: Etihad airways, owned by ADQ, has become the Presenting Partner for Sotheby’s two-part exhibition, Icons: Back to Madison. The show will see more than $2 billion worth of art on loan from private collections and public institutions displayed at the auction house’s new headquarters at the Breuer building on Madison Avenue, New York. A selection of 11 of the artworks in the exhibition was displayed at Abu Dhabi Collectors Week on Saadiyat Island last week.

↪↩ Closing Circuit

🤝 Global Partners: Abu Dhabi Investment Office has partnered with China International Capital Corporation to create an investment corridor that enables two-way capital flows between Abu Dhabi and China.

💰 Big Win: Dar Global awarded Dubai-based Edrafor Emirates the enabling works contract for the planned $1 billion Trump International Hotel & Tower on Dubai’s Sheikh Zayed Road.

🛒 Fast Delivery: Yango Group and UAE’s Noon will scale autonomous robot deliveries across the GCC, starting with Noon Minutes customers in Dubai and expanding regionally based on performance data and customer feedback.

🌐 Computing Leap: Quantum Art, an Israeli startup, raised $100 million in a Series A funding round led by Bedford Ridge Capital.

🗣 Circuit Chatter

🚢 Calmer Crossings: CMA CGM plans to increase Red Sea sailings as easing Houthi tensions allow shippers to consider returning to shorter Suez Canal routes.

💳 Payment Provider: YeePay, a Beijing-based cross-border payments company, will establish its regional headquarters and technology hub in Abu Dhabi.

📱 Fintech Expansion: Zurich-based fintech company iCapital announced the opening of its first Middle East office in Abu Dhabi’s ADGM free zone after receiving in-principle approval for advisory and arranging services.

📈 Digital Trading: ADX Group has added U.S.-based Interactive Brokers, a trading platform widely used by expats in the country, as an online broker partner, strengthening international participation and building on recent digital-access.

💎 Star Power: American actress Sarah Jessica Parker has been visiting the UAE to promote lab-grown diamonds in her new role as Global Creative Director for Astrea London.

🌍 Power Circuit

Saudi Crown Prince Mohammed bin Salman met with United Nations Secretary-General António Guterres on Wednesday at Al-Yamamah Palace in Riyadh. He also met with Isaias Afwerki, President of Eritrea.

Sheikh Saud bin Saqr, Ruler of the northern UAE emirate of Ras Al Khaimah, attended the world premiere of the Finnish musical evening “The Blue Bird”, organized by the Embassy of Finland and performed by the Lohja City Orchestra.

Prince Faisal bin Farhan, Saudi Arabia’s Minister of Foreign Affairs, received a phone call from the U.K.’s Secretary of State for Foreign, Commonwealth and Development Affairs Yvette Cooper.

➿ On the Circuit

Khalid Al-Falih, Saudi Arabia’s Investment Minister, projected up to $1 trillion in Saudi infrastructure spending by around 2030, with as much as $500 billion expected from private-sector financing.

Omar Yaghi, an American-Saudi scientist, was handed the Nobel Prize in Chemistry alongside the British-Australian and Japanese scientists Richard Robson and Susumu Kitagawa by King Carl XVI Gustaf of Sweden.

Ben Powell, Chief Strategist for Middle East and Asia Pacific at BlackRock, told Zawya that the firm is open to partnering with sovereign wealth funds across the GCC to ramp up investments in Asia.

Clifford Lee, Global Head of Investment Banking at DBS Bank, told Reuters that Asian investors are piling into Gulf bonds and loans this year, due to deepening trade and finance ties with the fast-growing region.

Andrey Lazorenko, CEO of ADI Foundation, an Abu Dhabi–based organisation building sovereign-grade blockchain infrastructure, told WAM that its role is to translate future-oriented policy into scalable, practical systems.

David Cameron, former U.K. prime minister, said he is “worried” by the number of Britons leaving the country for the UAE.

🎶 Culture Circuit

🎥 Home Coming: Shahad Ameen, the director of Saudi Arabia’s Oscar contender “Hijra,” said that the film’s screening at the Red Sea International Film Festival turned into a riotous celebration filled with family and friends. “I am from Jeddah, so this is my territory,” Ameen told The National. “And it’s the hometown of all of my main actors.” The film, which is about a grandmother on pilgrimage to Mecca with her two granddaughters when one of them goes missing, premiered at the Venice Film Festival and has been selected as the kingdom’s Oscar submission for Best International Feature. “Hijra” is the first Saudi film to receive support from all five of the country’s major national funding bodies, including the Saudi Film Commission, Red Sea Fund and Film AlUla.

📷 Photo of the Day

**Idris Elba and film producer Faisal Baltyuor, CEO of the Red Sea Film Foundation**, at the Golden Globes Gala Dinner at the Red Sea International Film Festival 2025 on Wednesday in Jeddah. (Hoda Davaine/Getty Images for The Red Sea International Film Festival)

📅 Circuit Calendar

Dec. 18-23, Abu Dhabi. Games of the Future. A forum to discuss trends and investment opportunities in digital gaming. ADNEC.

Dec. 29-30, Dubai. World Sports Summit. Athletes, investors and decision makers discuss how sports can change the face of humanity. Madinat Jumeirah Arena.

Jan. 9-11, Dubai. 1Billion Summit. A gathering of global content creators discuss the latest trends. Emirates Towers, Museum of the Future, Dubai International Financial Center.

Jan. 11-15, Abu Dhabi. Abu Dhabi Sustainability Week. With the theme “The Nexus of Next: All Systems Go,” ADSW will connect ambition with action across innovation, finance, and people, showcasing how the world can move forward with confidence. ADNEC.

Jan. 12-14, Dubai. Intersec. Billed as the world’s premier event for security, safety, and fire protection. Dubai World Trade Center.

Jan. 12-15, Dubai. Dubai International Project Management Forum. Bringing together global leaders, policymakers, and innovators to explore how collaboration, innovation, and sustainability can unite diverse communities. Madinat Jumeirah.

Jan. 13-15, Riyadh. Future Minerals Forum. The conference aims to hold conversations among governments, investors, and innovators to secure the minerals essential for a sustainable, tech-enabled future. King AbdelAziz International Conference Center.

Jan. 13-15, Abu Dhabi. World Future Energy Summit. The annual event brings in policy makers and industry leaders to discuss the challenges of working towards net zero. ADNEC.

Jan. 18-21, Riyadh. Big5 Construct Saudi. Latest trends and opportunities among construction companies operating in KSA. Riyadh Front Exhibition & Conference Center located at ROSHN Front.

Jan. 20-21, Dubai. 2026 BAFT MENA Forum. The event brings the region’s senior executives, influencers and industry experts to explore the forces redefining MENA’s financial ecosystem. Embassy Suites by Hilton Dubai Business Bay.

Jan. 20-22, Abu Dhabi. UMEX 2026. The Unmanned Systems Exhibitions and Conference showcases the latest advances in autonomous systems, robotics, artificial intelligence, and training simulation. ADNEC.

Jan. 26-28, Riyadh. Saudi Franchise Expo. The exhibition brings local and international businesses who want to create franchising companies into the kingdom.The Arena Riyadh Venue for Exhibitions, Riyadh.

Feb. 1-4, Doha. Web Summit Qatar. Connecting a new generation of founders in the Middle East to investors, journalists and more around the world. Doha Exhibition and Convention Center.

Feb. 2-5, Doha. LNG2026. The 21st International Conference & Exhibition on Liquefied Natural Gas. Qatar National Convention Center.

The Daily Circuit: Mubadala plots Asia strategy + ADNOC’s Serbian bid

In The Daily Circuit today, we’re reporting on likely windfalls for Gulf funds from a SpaceX IPO, ADNOC’s bid to buy control of a Serbian oil-processing plant from Russia, a new $500 million UAE-China tech investment fund, and the rainstorm in Jeddah that forced cancellation of Tuesday’s screenings at the Red Sea Film Festival. But first, Mubadala looks east in adjusting its investment strategy.

Abu Dhabi’s Mubadala sovereign wealth fund plans to double its exposure to Asia, raising the share of Asian assets in its portfolio to about 25% over the next decade.

Currently, Asia accounts for roughly 13% of Mubadala’s $330 billion in assets under management, or about $43 billion, the Zawya news agency reports. “In the next five to 10 years, we would love to see that double,” Mohamed Albadr, Mubadala’s Head of Asia, said during a discussion at Abu Dhabi Finance Week.

China, Japan, South Korea and India will be Mubadala’s core target markets in Asia, Albader said, citing their mature private-equity markets and exit-opportunity potential. The fund already maintains a Beijing office, a Hong Kong joint-venture office and a growing list of activities, including recent large deals in real estate and healthcare.

Albadr said Mubadala would deploy capital in real estate, infrastructure and private equity, which will play a key role in late-stage and buyout investments.

Khazna Data Centers, meanwhile, a growing AI infrastructure business backed by Mubadala, appointed Mohammed Bin Hassan as Country Head for Saudi Arabia following the company’s acquisition of land in the port city of Dammam to develop a new 200MW data center.

Editor’s Note: Kindly let us know your thoughts and feedback by replying to this newsletter or emailing us at [email protected].

📰 Developing Stories

GOING GALACTIC

Elon Musk’s SpaceX is moving ahead with plans for an IPO, with the potential to deliver a hefty windfall to its Gulf backers and unseat Saudi Aramco for the title of the biggest IPO of all time. If the Texas-based aerospace and space transportation company sold about 5% of its stock at the targeted $1.5 trillion valuation, it would raise about $40 billion, Bloomberg reports. Aramco raised about $29 billion when it listed in 2019. Among the Gulf’s prominent backers, Sheikh Tahnoon’s International Holding Co. and its subsidiary Alpha Dhabi jointly invested $50 million in SpaceX in 2022.

CHILLING IN RIYADH

Saudi Arabia’s flagship gigaproject Diriyah Gate is rolling out outdoor air-conditioning and a suite of other cooling measures to keep its public spaces near 28 degrees C (82 degrees F) during Riyadh’s searing summer months. The project pairs high-tech systems with reflective materials, extensive tree planting and traditional architectural techniques, while aligning with the kingdom’s wider shift toward renewable energy, Arabian Gulf Business Insight reports. As Saudi Arabia’s mega-projects drive up power demand, solar generation and district cooling are set to underpin efforts to deliver more sustainable infrastructure. With a target of 50 million annual visitors by 2030, Diriyah sees large-scale climate control as critical to ensuring year-round footfall.

💲 Sovereign Circuit

ADNOC: UAE energy giant ADNOC is the frontrunner to buy Russia’s controlling stake in Serbia’s sole oil-processing facility, The Financial Times reports.

Qatar Sports Investments: QSI, owner of the Paris Saint-Germain soccer team, signed an agreement to take over Belgium’s second-tier soccer club KAS Eupen.

G42: Inception, a unit of Abu Dhabi’s G42 tech company, together with Cerebras Systems and the Institute of Foundation Models at Mohamed bin Zayed University of Artificial Intelligence, announced the launch of Jais 2, a redesigned Arabic AI model.

↪↩ Closing Circuit

💰 Tech Fund: UAE-based Arabian Gulf Investment and China’s Green Harbor Investment will launch a $500 million investment fund focused on local and global IPOs, prioritizing advanced technology, AI, and robotics.

🤝 Getting Together: Orascom Construction and OCI Global announced an agreement to combine their businesses into a single Abu Dhabi-based infrastructure and investment platform.

🏝️ Sold Out: Abu Dhabi’s Modon sold out its new Bashayer waterfront development on Hudayriyat Island within a day of launch, generating about $817 million.

🌐 Cyber Gambit: Prime Security, an Israeli cybersecurity startup, raised $20 million in a Series A funding round, led by Scale Venture Partners.

🗣 Circuit Chatter

💵 Banking Shuffle: HSBC is bringing several London dealmakers to the Middle East, as it restructures its regional investment-banking footprint, Bloomberg reports.

🛸 Flying Cars: Saudi Arabia’s General Authority of Civil Aviation signed an agreement with U.S.-based Archer Aviation to operate air taxi services across the kingdom.

📊 Listing Lull: Middle Eastern IPO activity is slowing sharply as regional deals face tougher competition from resurgent global markets, Bloomberg reports.

🌽 Grain Retreat: UAE-based crop merchant Al Dahra is pulling out of Romania’s grain-trading market amid pressures in the Black Sea market, Bloomberg reports.

🌧️ Weather Trouble: The Red Sea International Film Festival in Jeddah closed all screenings and events on Tuesday due to heavy rain and unsafe weather conditions.

🌍 Power Circuit

UAE President Sheikh Mohamed bin Zayed directed the government to allocate $550 million in response to an appeal by the U.N. for providing humanitarian aid.

Saudi Crown Prince Mohammed bin Salman held a phone call with Syria’s President Ahmed al-Sharaa on Tuesday.

Sheikh Tahnoon bin Zayed, UAE National Security Adviser and Deputy Ruler of Abu Dhabi, met with Kash Patel, Director of the U.S. Federal Bureau of Investigation, in Abu Dhabi on Tuesday.

Sheikh Tahnoon chaired the third 2025 board meeting of the Abu Dhabi Investment Authority on Tuesday. Also present were Sheikh Mansour bin Zayed, UAE Vice President, Deputy Prime Minister and Chairman of the Presidential Court, and Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of Abu Dhabi Executive Council.

Prince Khaled bin Waleed, Vice Chairman of Sharjah developer Arada, said during Abu Dhabi Finance Week that the firm is looking to develop property projects in Miami, Austin, Tex. and Nashville, Tenn.

➿ On the Circuit

Waleed Al-Khureiji, Saudi Arabia’s Deputy Foreign Minister, attended the third meeting of the Joint Tripartite Committee between Saudi Arabia, Iran and China.

Mohamed Al Hammadi, Managing Director of Emirates Nuclear Energy Company, has been appointed Chairman of the World Association of Nuclear Operators’ Atlanta Center in the U.S.

Brandan Greene, the billionaire creator of videogame PUBG, used Abu Dhabi’s BRIDGE summit to urge the world to build an “open, shared, human-scale layer” that restores trust, creativity and connection online.

Sandy Climan, CEO of Entertainment Media Ventures, told WAM on the sidelines of the BRIDGE summit that the entertainment world is undergoing “almost revolutionary” shifts driven by technology and changing consumer behavior.

🎶 Culture Circuit

🎻 High Note: The UAE National Orchestra has set a date for its debut, with the first public performance to be given on Jan. 15. The new 100-member ensemble was chosen from more than 3,200 musicians who applied from around the world since the formation of the orchestra was first announced last December, and includes 30 nationalities and 40 instruments. The debut season’s program blends Emirati musical heritage with global repertoire, including the premiere of “Emirati Symphony” by Lebanese composer Nadim Tarabay and “Faces of Love,” a composition inspired in part by the poetry of the late UAE President Sheikh Zayed, The National reports.

📷 Photo of the Day

**Boxing robots entertain guests** at the BRIDGE Summit at Abu Dhabi’s ADNEC Center. (Emirates News Agency)

📅 Circuit Calendar

Dec. 8-11, Abu Dhabi. Abu Dhabi Finance Week. The largest financial event in the region, brings together the world’s top minds to redefine and shape the future of global markets. The Grand Steps, Al Maryah Island.