The Daily Circuit: Money managers move to Abu Dhabi + ADNOC eyes USA

👋 Hello from the Middle East!

Today in The Daily Circuit, we’re looking at ADNOC’s venture into Texas, the $19 billion in deals signed at Saudi Arabia’s Future Aviation Forum, Mubadala’s $150 million investment in Spain’s Tubacex and a gathering in Cannes of Saudi female filmmakers. But first, international funds are following the money to the UAE’s capital.

The money managers are converging on Abu Dhabi – and they’re doing much more than grabbing a quick meeting in the lobby of the Four Seasons or cranking out a boot camp class at Barry’s before hopping on that flight out of AUH. They’re starting to stick around. 

The UAE capital’s financial district, Abu Dhabi Global Market, reported a more than doubling in assets under management in the first quarter amid an influx of asset managers who see the emirate as a key financial hub. “This year holds the promise of even greater growth for ADGM and its ecosystem,” Chairman Ahmed Jasim Al Zaabi said in a statement. Abu Dhabi also reported a 30% increase in operational entities to 1,950 during the first quarter, taking the headcount to 25,000. Fifty-two more firms are in the pipeline. Several new firms, including Vizier Asset Management Co., I Squared Capital Ltd. and Blantyre Capital, have been granted in-principle approval by ADGM.

Next week, the family office crowd will gather for a summit in Abu Dhabi to discuss investment themes, how the next generation are thinking about wealth transfer and the factors contributing to the gusher of new arrivals to the Gulf. Among those expected to attend the Abu Dhabi Family Office Summit are Richard Goblet of Globaleye Capital, a new Swiss family office which has established a presence in the UAE. The principal, Patrick Liotard-Vogt, is an heir to the Nestlé family.

EYES ON THE USA

ADNOC, the UAE’s state-owned energy company, is looking toward the U.S. to expand its international footprint and help propel future growth. The Abu Dhabi-based company, ranked as the world’s 12th-largest oil producer, signed an agreement with NextDecade to buy an 11.7% stake in its liquified natural gas project located in Texas. ADNOC did not disclose the value of the deal, which is its first strategic investment in the U.S. The Emirati company is also working on setting up an energy trading desk in the U.S., Reuters reported last week. The NextDecade deal comes two months after Masdar, Abu Dhabi’s ADNOC-backed alternative energy company, bought a 50% stake in California-based Terra-Gen, one of the largest private renewable energy producers in the U.S. The American market is a key part of Masdar’s strategy to develop or acquire an energy portfolio of at least 100 GW capacity by 2030.

FLYING HIGH 

Saudi Arabia’s Future Aviation Forum entered its second day after tallying 47 separate deals worth $19 billion. Leading the dealmakers was Saudia Group, which owns flag carrier Saudia Airline and low-cost flyadeal, announcing an order with Airbus on Monday for 105 narrow-body aircraft. The deal for an undisclosed price was described as the largest purchase ever from a Saudi airline. Saudia’s Airbus order was a setback for Boeing, which has yet to close a deal being negotiated with the kingdom’s new airline, Riyadh Air. Other transactions included national air service agreements, aircraft orders, cargo and logistics, advanced air mobility, human capability, information technology, and maintenance, repair and overhaul agreements. Abdulaziz Al-Duailej, President of the Saudi General Authority on Commercial Aviation, called the forum’s first day a “tremendous success, in terms of commercial deals, policy initiatives and agreements to elevate global connectivity.”

💲 Sovereign Circuit

Mubadala: The Abu Dhabi sovereign wealth fund signed an agreement to pay $150 million for a 49% stake in the unit of Spain’s Tubacex that makes equipment for oil and gas exploration and said it plans also to invest in Tubacex’s UAE facility. Meanwhile, Mubadala has cracked into the top 10 of global sovereign wealth funds after reporting its 2023 performance, according to data compiled by Global SWF, with a 15.4% annual rate of return and $302 billion in assets under management. 

Public Investment Fund: The Saudi sovereign wealth fund has signed a sponsorship agreement for an undisclosed sum with the Women’s Tennis Association (WTA), the principal organizing body of professional women’s tennis. Through the deal, the PIF becomes the first-ever naming partner of the WTA Rankings.  

↪↩ Closing Circuit

📈 Staff Recruiter: Saudi staffing company SMASCO set the final price for its upcoming IPO at 7.50 riyals per share as it seeks to raise as much as $240 million on Riyadh’s Tadawul exchange.

🏦 Bank Acquisition: Qatar’s Lesha Bank said it acquired Kazakhstan’s Bereke Bank for $146 million, subject to regulatory approval in both countries.

🩺 Healthcare Revenue: KKR announced its acquisition of a “significant minority stake” in India’s Infinx Services, which uses artificial intelligence to help healthcare companies manage revenue.

🔒 Identity Manager: CyberArk, one of Israel’s largest cybersecurity companies, signed an agreement to buy Venafi, which specializes in machine identity management, for more than $1.5 billion from Chicago-based private equity firm Thoma Bravo.

💰 New Perks: Saudi corporate rewards platform Merit raised $12 million in a pre-Series B fundraising round, led by Alistithmar Capital i-Cap and with participation from existing Series A investors Tech Invest Com and Hambro Perks Oryx Fund.

🗣 Circuit Chatter

🚁 Taxi Flyer: Archer Aviation, which plans to start operating air taxis in Abu Dhabi next year, signed an agreement with Etihad Aviation Training to recruit and train prospective pilots.

🛫 Bahrain Bound: Pakistan’s Fly Jinna budget airline said it will offer a new flight route between Bahrain and Islamabad starting June 13.

🪴 Medical Marijuana: Morocco has an opportunity to capture a 10-15% share of the European medical cannabis market, Mohamed El Bouhmadi, president of the Moroccan Federation for the Pharmaceutical Industry and Innovation, told Le360.

🛏️ Tourism Prod: Morocco’s National Tourism Office signed a partnership agreement with TripAdvisor as part of the country’s efforts to double the number of overnight stays in Morocco within five years.

⚡ Charging Network: The UAE Ministry of Energy and Infrastructure agreed to form a joint venture with Etihad Water & Electricity for a network of charging stations for electric vehicles.

🌍 Power Circuit

Sheikh Khaled bin Mohamed bin Zayed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, witnessed the signing of an agreement on Monday between UAE defense conglomerate EDGE Group and Italy’s Fincantieri, one of the largest shipbuilding companies in the world. The deal launches MAESTRAL, an Abu Dhabi-based shipbuilding joint venture between both companies.

Condolences to Iranian leadership on the passing of President Ebrahim Raisi and his delegation poured in from regional leaders. Among them were UAE President Sheikh Mohamed bin Zayed, Saudi Arabia’s King Salman and Crown Prince Mohammed bin Salman, Jordan’s King Abdullah and Ahmed bin Salman Al Musallam, Bahrain’s Speaker of the Council of Representatives.

➿ On the Circuit

Mohammad Al Gergawi, UAE Minister of Cabinet Affairs, received an honorary doctorate from Georgetown’s McDonough School of Business over the weekend. Al Gergawi talked about the power of choices in his commencement speech, sharing a personal story about how one of his own decisions brought him into the path of the then-Crown Prince of Dubai, Sheikh Mohammed bin Rashid.

Jamie Dimon told investors on Monday that his replacement as CEO of JPMorgan Chase was “on the way” as he will look to step down within the next five years. 

Najwa Aaraj will succeed Ray O. Johnson as CEO of the Technology Innovation Institute (TII), the applied research arm of the government-backed Advanced Technology Research Council (ATRC) in Abu Dhabi. Aaraj was previously Chief Researcher in the cryptography and autonomous robotics labs of TII. Johnson, a former Lockheed Martin executive, was the institute’s first CEO. He remains an Operating Partner at California venture capital fund Bessemer Venture Partners, according to LinkedIn.

Marc Lipschultz, Co-CEO of Blue Owl Capital, marked three years since listing on the New York Stock Exchange. “During our time as a public company, we’ve more than tripled our assets under management from $52.5 billion to about $174 billion today,” he said in a post on Monday to social media. In February, the New York alternative investment manager formed a joint venture with Abu Dhabi fund Lunate. 

Nader Naeimi has been hired as a senior portfolio manager at New York hedge fund Millennium Management’s growing Dubai office, Bloomberg reports. He joins from Singaporean sovereign wealth fund GIC. 

🎶 Culture Circuit

🎞️ On Camera: Saudi female filmmakers Maram Taibah and Raneem and Dana Almohandes and Film AlUla marketing director Mahsa Motamedi joined a panel at the Variety Global Conversations Summit at Cannes to discuss the impact of the AlUla Creates initiative on Saudi Arabia’s burgeoning film industry. The program, which provides funding, mentorship and networking opportunities for Saudi filmmakers and fashion designers, has already hosted 123 international productions in AlUla.

📷 Photo of The Day

🗓️ Circuit Calendar

May 18-26, Abu Dhabi, UAE. Abu Dhabi Comedy Week. Standup comics Dave Chapelle, Aziz Ansari, Bassem Yousef and Chris Tucker headline the first annual festival. Etihad Arena.

May 20-22, Riyadh, Saudi Arabia: Future Aviation Forum. Airline executives, investors and government ministers gather for the third annual conference on the aviation industry. King Abdulaziz International Conference Center.

May 25-26, Dubai, UAE. Summer Blessings. Dubai festival celebrates the palm tree as the UAE’s national icon with live performances, date-themed events and artisan marketplace. Shindagha Museum.

May 27-28, Abu Dhabi, UAE: Make It In The Emirates Forum. Organized by the Ministry of Industry and Advanced Technology in collaboration with the Abu Dhabi Department of Economic Development and ADNOC, the forum offers a networking and knowledge exchange platform for the industrial community, both locally and internationally. Abu Dhabi Energy Center.

May 29-31, Marrakech, Morocco: GITEX Africa. The second edition of the biggest tech and startup gathering in Africa. Place Bab Jdid. 

June 5, Hong Kong: Bloomberg Wealth Event. A gathering to bring actionable intelligence to portfolio managers and other dealmakers and analysts from asset managers and owners, family offices and hedge funds. Conrad Hong Kong. 

June 23-26, National Harbor, Maryland: SelectUSA Investment Summit. The highest profile event in the U.S. to facilitate business investment by connecting thousands of investors, companies, economic development organizations and industry experts to make deals. Gaylord National Resort and Convention Center.