Talabat acquires Instashop for $32 million ahead of IPO

Talabat has completed the acquisition of Instashop for $32 million, consolidating the two major UAE-based food and grocery delivery brands under one company.

Both companies are controlled by German parent Delivery Hero, which initiated the merger as part of a corporate restructuring ahead of Talabat’s $2 billion IPO in December.

Instashop will continue to operate as an independent brand while leveraging Talabat’s expansive network, according to a statement issued Thursday.

“We aim to create a more seamless and efficient delivery experience for our customers across the UAE and Egypt whilst also driving further product and technology synergies across our business,” Talabat Chief Executive Tomaso Rodriguez said.

Amid bounty of Gulf IPOs, many firms struggle in trading debut

Companies in the Middle East have raised $13 billion from IPOs in 2024, making it the region’s second-best year since the pandemic.

Strong early returns from those share sales, however, are no longer guaranteed, Bloomberg reports.

The three largest Gulf IPOs of the year — Talabat, OQ Exploration, and Lulu Retail — had muted debuts despite strong demand.

Still, the desire of Gulf governments to diversify their economies and deepen capital markets virtually guarantee a continued rush of listings in 2025.

The Weekly Circuit: U.K.’s Starmer plans Gulf trip + Talabat IPO sells out

👋 Hello from the Middle East!

In the Weekly Circuit today, we’re looking at Talabat’s oversubscribed food delivery IPO, Rothschild & Co.’s new wealth management office in Dubai, the Kuwait Investment Authority’s new chief and Qatar’s effort to strengthen business connections with the UAE. But first, the Keir Starmer has his sights set on the Gulf.

The U.K. looks to be getting ready for a new round of Gulf diplomacy, with an emphasis on cementing commercial ties with Saudi Arabia and the UAE.

British Prime Minister Keir Starmer will be looking for fresh investment from Gulf sovereign wealth funds if he follows through with plans to visit Riyadh and Abu Dhabi next month, the Financial Times reports. Saudi Crown Prince Mohammed bin Salman may also visit London next year, the newspaper said.

Starmer’s Labor government would like to secure investment from Gulf countries for sectors ranging from energy to infrastructure, including projects such as the Sizewell C nuclear power plant in eastern England, according to the FT. 

The U.K.’s trade relationship with the six member nations of the GCC is worth £57 billion ($72 billion), according to British officials. Saudi Arabia’s Public Investment Fund is the majority owner of the Newcastle United football club. Manchester City is owned by the Abu Dhabi United Group, whose owner is Sheikh Mansour bin Zayed, Vice President and Deputy Prime Minister of the UAE.

Meanwhile, Sheikh Tahnoon bin Zayed – the UAE’s National Security Advisor and Sheikh Mansour’s brother – is taking markets to new heights. Buoyed by International Holding Co. and First Abu Dhabi Bank – both of which Sheikh Tahnoon leads as chairman – stocks traded on Abu Dhabi’s ADX and Dubai’s DFM are now worth more than $1 trillion, Bloomberg reports.

Welcome to The Weekly Circuit. Read on for the stories, deals and players at the top of the news across the MENA business landscape. Please send comments and story tips to [email protected].

POWER TRIO

PIF’s Yasir Al-Rumayyan sits with Trump, and Musk at UFC 309 in New York

Yasir Al-Rumayyan, Governor of Saudi Arabia’s Public Investment Fund, sat with U.S. President-elect Donald Trump and billionaire Elon Musk in ringside seats at the United Fighting Championship’s UFC 309 event last Saturday night in New York’s Madison Square Garden, The Circuit’s Jonathan Ferziger reports.

Al-Rumayyan, who is also Chairman of Saudi Aramco, the world’s biggest oil company, as well as the PIF-owned LIV Golf tournament and English football club Newcastle, showed up in a photo posted on Musk’s X social media platform, chatting with fellow golf lover Trump while watching the fights.

Click here to read the full story.

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CIRCUIT INTERVIEW

Qatar’s QDB shepherds companies to Dubai to promote diversification

Qatar and the UAE are making new efforts to strengthen commercial ties with shared interest in shifting their economies away from dependence on oil and gas, The Circuit’s Omnia Al Desoukie reports.

Khalid Al-Mana, Qatar Development Bank’s Vice President of Enterprise Development, brought executives from 25 companies – including Doha Cables, Delta Corp., Dderve, Q Ceramic and Doha Plastic – on a relation-building trade mission to Dubai this week. Among the group were firms with interests ranging from artificial intelligence and sports technology to construction, steel and food.

In an interview with The Circuit, Al-Mana highlights Qatar’s strategic focus on economic diversification. QDB is making particular efforts to support small and medium-sized businesses, or SMEs, promoting exports and facilitating greater activity by Qatari companies in global markets.

Click here to read the full interview.

💲 Sovereign Circuit

ADQ: Modon Holding, a unit of the Abu Dhabi sovereign wealth fund, announced a partnership with Egypt’s Hassan Allam Holding for large-scale construction projects within Egypt’s $35 billion Ras El Hekma project.

Kuwait Investment Authority: The Kuwaiti sovereign wealth fund appointed Sheikh Saoud Salem Abdulaziz Al-Sabah, a member of its board, as KIA’s new Managing Director, Reuters reports. 

Mubadala: Masdar, the renewable energy company owned by Abu Dhabi’s Mubadala, ADNOC and TAQA, signed an agreement with Azerbaijan’s SOCAR Green and Saudi Arabia’s ACWA Power to develop 3.5 GW of offshore wind projects in the Caspian Sea.

Public Investment Fund: The Saudi sovereign wealth fund sold its 5.7% stake in U.S. concert promoter Live Nation Entertainment, the parent company of Ticketmaster, which it acquired for $500 million in April 2020, according to a U.S. Securities and Exchange Commission filing.

Abu Dhabi Investment Authority: Lenskart, an Indian eyewear company backed by the Abu Dhabi sovereign wealth fund, is in talks to conduct a secondary share sale that could raise as much as $300 million and boost the firm’s valuation by 20% to $6 billion, the Economic Times reports.

↪↩ Closing Circuit

🛵 Keeping it Hot: Talabat, the Middle East unit of Europe’s Delivery Hero, is cruising into a Dubai IPO that is on track to be one of the region’s biggest. Investors swept up all the shares in its $1.5 billion offering within minutes after subscriptions opened on Tuesday, Bloomberg reports. 

🛢️ Refinery Complex: Saudi Aramco and China’s Sinopec oil company have started building a $9.8 billion refinery and petrochemical complex in southeast Fujian province, marking another big joint investment between Saudi Arabia and China.

🚗  Autonomous Fleet: Pony.ai, a California-based startup backed by Saudi Arabia’s Neom Co. and Toyota that operates self-driving vehicle fleets in the U.S. and China, is seeking to raise up to $195 million in a Wall Street IPO, Bloomberg reports.

💰 Money Pocket: Egypt-based Amenli, a company that leverages technology to modernize insurance, raised $2.3 million in funding led by European Bank for Reconstruction and Development’s Venture Capital arm, with additional support from Y Combinator, to expand operations and enhance services.

📊 Data Growth: The data center market in the UAE is projected to grow at an annual rate of nearly 10% over the next five years, creating a market worth $2.6 billion by 2029.

🗣 Circuit Chatter

💼 Ultra Wealthy: Rothschild & Co. launched a wealth management office in Dubai to boost its offering to local clients as well as to ultra-high-net-worth individuals in the region. 

🚚 Port Demand: DP World, the UAE-based global ports operator, may revise its investments of $3 billion in new expansion plans in Africa while mulling further expansions in India and Egypt, depending on demand and project feasibility, Chairman and CEO Sultan bin Sulayem said. 

🩺 Medical Shares: Jana Medical Company’s IPO in Riyadh was oversubscribed, with demand reaching 150% on Saudi Arabia’s Nomu Parallel Market. 

🇹🇷🇶🇦 Ankara Agreements: Turkey and Qatar signed a series of agreements on Thursday ranging from trade facilitation to military and technical cooperation during Qatar’s Emir Sheikh Tamim bin Hamad al Thani’s visit to President Tayyip Erdogan in Ankara, Reuters reports.

🌍 Power Circuit

UAE President Sheikh Mohamed bin Zayedheld a meeting in Abu Dhabi on Tuesday with Sheikh Mohammed bin Abdulrahman Al Thani, Prime Minister and Minister of Foreign Affairs of Qatar.

Sheikh Khaled bin Mohamed bin Zayed, Crown Prince of Abu Dhabi, concluded a diplomatic visit to Brazil where he attended the G20 Summit, accompanied by Reem Al Hashimy, Minister of State for International Cooperation; Ahmed Ali Al Sayegh, Minister of State; Mohamed Hassan Alsuwaidi, Minister of Investment; and Waleed Al Mokarrab Al Muhairi, Deputy Group CEO of Mubadala.

Sheikh Hamdan bin Zayed, the UAE Ruler’s Representative in Al Dhafra Region witnessed the groundbreaking ceremony for ADNOC’s low-carbon LNG project in Al Ruwais Industrial City, accompanied by Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC’s CEO.

➿ On the Circuit

Marc Rowan, CEO of Apollo Global Management, has emerged as a key contender for appointment as U.S. Treasury Secretary by President-elect Donald Trump. 

Ayman Al-Sayari, Governor of the Saudi Central Bank, attended the General Meeting of the MENA Financial Action Task Force in Riyadh on Tuesday and said the kingdom is committed “to unify joint regional efforts in combating money laundering, financing terrorism and the proliferation of arms.”

Philip Philippides was appointed CEO of Mashreq Capital, the asset management unit of Dubai-based Mashreq Bank. He previously worked at Morgan Stanley, BlackRock/iShares and MSCI.

Saudi Investment Minister Khalid Al-Falihmade a series of official visits last week to Sweden, France, and Tunisia, accompanied by representatives from several major Saudi companies in a bid to strengthen the kingdom’s global partnerships while encouraging reciprocal investment.

🎶 Culture Circuit

📽️ Cinema Heritage: Saudi Arabia’s Red Sea Film Festival returns to Jeddah on Dec. 5 in a refurbished version of its original home in the city’s historic Al-Balad district. The Cultural Square that will house the glittering two-week film fest features five cinemas and a huge auditorium that will host back-to-back screenings from early morning to late at night, Variety reports.

🗓️ Ahead on The Circuit

Nov. 20-22, Abu Dhabi, UAE: Xpanse. A forum dedicated to exponential technologies bringing 3000 thought leaders and industry pioneers. ADNEC.

Nov. 21-24, Abu Dhabi: Abu Dhabi International Boat Show. A platform for marine enthusiasts that offers live performances and the opportunity to navigate the waters of Abu Dhabi. ADNEC.

Nov. 23-24, Dubai: Forbes Medical Tourism and Wellness Summit. Discussions will center around efforts by participant countries to attract patients from abroad for medical care. Jumeirah Beach Hotel. 

Nov. 26-28, Abu Dhabi: Global Media Congress. The event brings together a range of media groups to discuss the latest trends in publishing and media.

Nov. 26-29, Dubai: Big5 Global. The event gathers participants who are interested in technology and construction. Dubai World Trade Centre.

Dec. 4-6, Abu Dhabi: Abu Dhabi Business Week. Participants will hear from business pioneers who built billion-dollar enterprises, developed global brands and led significant campaigns. ADNEC. 

Dec. 5-6, Abu Dhabi: Milken Institute Middle East and Africa Summit. Corporate executives, investors, government officials, and philanthropists gather to address the globe’s most pressing issues. St. Regis Saadiyat Island.

Dec. 5-8, Abu Dhabi: Abu Dhabi Grand Prix 2024. World’s fastest race drivers compete in the Abu Dhabi leg of the Formula One season. Yas Marina Circuit.

Dec. 9-10, Abu Dhabi: The Bitcoin Conference. The conference connects industry leaders in an exposition hall featuring a fusion of technology and art. ADNEC.

Dec. 9-12, Abu Dhabi: Abu Dhabi Finance Week. Market experts and entrepreneurs from around the world discuss the latest market trends. Al Maryah Island, ADGM Square.

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The Daily Circuit: U.N. Climate Summit opens in Azerbaijan + Talabat IPO

👋 Hello from the Middle East

In the Daily Circuit today, we’re looking at preparations for Talabat’s $1 billion IPO in Dubai, DP World’s acquisition of Silk Logistics in Australia, ADIA’s $1 billion investment in U.S. data analytics firm Qlik and U.K. golfer Paul Waring’s victory in the Abu Dhabi HSBC Championship. But first, the world’s climate defenders convene in Azerbaijan.

A year after the UAE hosted the annual United Nations environmental summit, the torch passed today to Azerbaijan as officials and activists from 197 nations converged on the capital city of Baku for the two-week event known as COP29.

Opening the conference was COP29 President Mukhtar Babayev, Azerbaijan’s Minister of Ecology and Natural Resources, who said the earth is on a “road to ruin” and beseeched delegates to embrace U.N. goals for transition from fossil fuels. “COP29 is the unmissable moment to chart a new path forward for everyone,” he said.

The focus of this year’s climate summit is finance as estimates for the cost of building out clean energy systems, making cities more resilient to extreme weather, and transitioning factories and transportation systems away from fossil fuels run into trillions of dollars, The New York Times reports.

Much of the attention, however, is on what to expect from U.S. President-elect Donald Trump, who has dismissed global warming as a hoax. Also stirring controversy is Azerbaijan’s economic dependence on oil production, which is drawing protests similar to those against the UAE last year at COP28.

Countries will present their updated national climate action plans, which detail how they plan to reduce emissions. At the end of the conference, which closes on Nov. 22, negotiators will try to ratify a final agreement that will include new commitments to address climate change.

More than 100 heads of state and government were planning to attend, including the leaders of Barbados, Finland, Greece, Kenya, Spain, Saudi Arabia, Turkey and Pakistan. Skipping the event is U.S. President Joe Biden, as well as the leaders of China, India, Brazil, Britain, Germany and France.

Among the speakers at today’s opening event was Dr. Sultan Al Jaber, who was President of COP28. He is also CEO of Abu Dhabi-based national energy company ADNOC and the UAE’s Minister of Industry and Advanced Technology.

“I urge you all to prove once again that we can unite, act and deliver,” Al Jaber said. “Let positivity prevail and let it power the process.”

Welcome to the Daily Circuit. Kindly let us know your thoughts and feedback by replying to this newsletter or emailing us at [email protected].

📷 Photo of the Day

Former Swiss tennis champion Martina Hingis signs souvenir tennis balls at the Saudi Public Investment Fund’s hospitality booth over the weekend during the Women’s Tennis Association finals in Riyadh.

Talabat prepares for IPO in Dubai amid Gulf fundraising boom

The fluorescent orange uniforms of Talabat delivery drivers have become so ubiquitous in the UAE that The Circuit’s Abu Dhabi correspondent counted at least a dozen whizzing past on the road beneath her window as this sentence was written. 

Now the business, which has transformed the food industry across the Middle East since its launch in Kuwait 20 years ago, will be listed on the Dubai bourse in what will be one of the most hotly-anticipated initial public offerings of the year.

Berlin-based parent company Delivery Hero is preparing to capitalize on the high investor interest in IPOs in the Gulf this year to raise capital by offering shares in its UAE subsidiary on the Dubai Financial Market in the fourth quarter of this year.

Delivery Hero, which is publicly listed in Frankfurt, will retain a majority interest in the local listing after the IPO, the company said in a filing on Thursday.

While the company has not yet given details of target pricing or how much it plans to raise, RBC values Talabat at $5.5 billion.

Talabat is the latest in a growing list of regional companies seeking to tap equity markets through public listings this year, with $890 million raised through IPOs in the UAE in Q2 alone.

NMDC Energy announced on Wednesday that it plans to raise $875 million in an initial share sale on the Abu Dhabi Securities Exchange.