Oman, India sign trade agreement amid Modi-Trump tension

Oman signed a free-trade agreement with India that represents the sultanate’s first bilateral economic partnership deal in nearly two decades.

The accord signed in Muscat on Thursday grants Indian goods zero-duty access on about 98% of Omani tariff lines while India offered liberalized tariffs on most Omani imports.

The pact is expected to boost sectors such as gems, textiles and services and may offer some help as India tries to counter U.S. President Donald Trump’s punishing tariffs, Reuters reports.

In August, Trump doubled U.S. duties on Indian goods to 50%, the highest in the world. The hike included a 25% levy that was in retaliation for India’s purchases of Russian oil.

Speaking in Muscat, India’s Prime Minister Narendra Modi said the agreement would “strengthen the India-Oman partnership in the 21st century by renewing confidence and momentum.”

UAE, European Union see progress in clinching trade deal

The UAE and the European Union are moving closer to a trade agreement that would give the emirates consolidated access to the world’s largest trading bloc while reinforcing the country’s own status as a global logistics hub.

A deal between the UAE and the EU could also be key to unlocking a wider agreement between the 27-member bloc and the Gulf Cooperation Council, a stop-start negotiation which has not yielded consensus in the 35 years since talks started.

Dr. Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, met with the EU’s trade chief Maros Sefcovic in Dubai on Wednesday to launch the talks officially over a potential Comprehensive Economic Partnership Agreement, the UAE’s framework for the dozens of trade deals it has made since 2021 to diversify its economy. 

During his visit to the emirate, Sefcovic also met with the private sector to discuss opportunities for increased investment flows. The EU currently accounts for $67.6 billion in non-oil trade with the Emirates, 8.3% of the UAE’s total trade.

Speaking to reporters alongside Sefcovic, Al Zeyoudi said the UAE wants to seal a deal with the EU “in a very short period, three to six months from now.”

The Emirati cabinet minister added he did not see the talks as a hurdle for a future EU deal with the GCC and noted that bilateral talks with New Zealand and South Korea had led to trade agreements with the GCC, Reuters reports.

“We are seeing it’s a flow which is going to be starting from here and moving to the GCC,” he said. “Usually, the blocs are much slower than the bilateral, and that’s why we’re starting here, so we can move quickly.”

New Zealand, UAE reach terms for signing free-trade pact

New Zealand and the UAE have reached a free-trade agreement after four months of negotiations.

The Comprehensive Economic Partnership Agreement will eliminate duties on as much as 99% of New Zealand’s exports to the Gulf state, according to Trade Minister Todd McClay.

“This will create new opportunities for New Zealand businesses in the dynamic UAE market, contributing to our ambitious target of doubling exports by value in 10 years,” McClay said in a statement issued on Thursday.

Trade between the two countries reached $814 million for the year ending June 2024, he said.

The Weekly Circuit: Turkey seeks GCC trade pact + UAE’s new lottery

👋 Hello from the Middle East!

This week we’re looking at the UAE’s newly licensed lottery, Gulf financial advisors that cater to ultra-high-net-worth families, ADIA’s interest in India’s Adani Energy stock offering and Moroccan King Mohammed VI’s environmental appeal to mark 25 years on the throne. But first, Turkey seeks to pump up trade with the GCC.

Long a key regional commercial partner for the Gulf states, despite political disputes, Turkey is seeking to strengthen its ties by securing an across-the-board free trade agreement with the six member-states of the GCC.

Turkish officials began talks this week in Ankara with a delegation from Saudi Arabia, the largest of the Gulf states and first in the roster of GCC countries to negotiate the comprehensive deal. Next up are Qatar, Oman, Kuwait, Bahrain and the UAE before an agreement can be reached that reduces import taxes and other tariffs.

Besides trade in oil, arms, construction and agricultural products, the pact is expected to have a broader impact on the region. Iraq, in particular, would benefit from its potential for becoming a corridor between Turkey and the Gulf states, according to a report by the Stimson Center, a Washington think tank. Iraq announced the launch last year of a 1200-kilometer (750 mile) highway and rail project that would connect with Turkey’s transportation network.

Saudi Arabia, meanwhile, is prospecting for new corporate trading partners in South Korea, Asia’s fourth largest economy. After a business conference in Seoul this week, the kingdom reports signing 10 agreements ranging from construction and energy to healthcare and food exports.

Saudi Minister of Commerce Majid Al-Qasabi led a delegation of 80 business executives and government officials at the Saudi-Korean Business Forum, where South Korean companies pitched cooperation in car manufacturing, data centers and urban infrastructure, Arab News reports. Al-Qasabi also met with South Korean Prime Minister Han Duck-soo after arriving in Seoul on Monday.

Egypt’s IMF-prescribed program to reform the economy with steps that include selling off state assets and devaluing the Egyptian pound won praise this week after a review by the Washington-based lender.

In turn, the IMF unlocked $820 million in support for the economy as part of the $57 billion bailout that Egypt received to help it emerge from its worst financial crisis in decades. Still, the IMF called on the government to ratchet up its efforts to divest from state-owned businesses.

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].

Game On

UAE grants first lottery license in key step for gaming reform

The UAE has granted its first lottery license, a key step in establishing a regulated commercial gaming sector in the emirates, where construction of the Gulf’s first casino resort is underway in Ras Al Khaimah, The Circuit’s Jonathan Ferziger reports.

Luck of the Draw: Approval of the new UAE Lottery, to be run by commercial gaming operator The Game LLC, was announced on Sunday by the General Commercial Gaming Regulatory Authority, a federal body which was set up late last year to oversee future gaming activities in the country.

Chipping In: The move comes amid anticipation of Las Vegas casino operator Wynn Resorts’ $4 billion development on the Marjan islands, about one hour’s drive north of Dubai, which is expected to open in 2027.

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Family Money

Financial advisors turn to Gulf’s ultra-high-net-worth families

More financial services firms that cater to ultra-high-net-worth families are popping up in the Arabian Peninsula as family offices emerge as one of the fastest-growing segments for wealth creation, Kelsey Warner writes for The Circuit.

Demographic Shift: The so-called Great Wealth Transfer is forecast to pass nearly $20 trillion from the older generations to Gen-X, Millennial and Gen-Z adult children and grandchildren over the next two decades. 

Bridging the Gulf: This phenomenon will be acutely felt in the UAE and Saudi Arabia, where family businesses make up the majority of private companies. More family offices are cropping up to deploy an expanding pot of wealth as diversification from oil picks up pace in the region and opportunities for investment expand.

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💲 Sovereign Circuit

Abu Dhabi Investment Authority: The UAE sovereign wealth fund is among the large investors likely to participate in an upcoming $1 billion stock offering for Adani Energy, along with Abu Dhabi-based International Holding Co. and India’s GQG Partners, according to MoneyControl. Meanwhile, ADIA became an anchor investor in the IPO of India’s Akums Drugs and Pharmaceuticals, with an allocation of 6% valued at $6 million.

Public Investment Fund: Saudi Arabia is eyeing a collaboration with Chilean state-owned miner Codelco to develop lithium deposits, as it continues to hunt for a supply of battery minerals for its domestic EV industry. Electric carmaker Lucid, which is 60% owned by the PIF, opened a factory in the kingdom last year and is attempting to become a major regional EV manufacturer but Saudi is yet to secure sufficient lithium supplies.

Mubadala: Mubadala Capital and commodities trader Trafigura have hired UBS BB and Goldman Sachs to help sell Porto Sudeste, a Brazilian iron-ore port they bought a decade ago from former oil and mining tycoon Eike Batista, Reuters reports. Mubadala-backed Aldar Properties, Abu Dhabi’s biggest developer, reported a 37% increase in net profit year-on-year of AED1.8 billion ($490 million) for Q2 of 2024. Strong property demand drove a 64% YOY surge in quarterly revenue to AED5.3 billion. 

Oman Investment Authority: Muhsin Al Rustom, the chief financial officer of OIA-owned Asyad Group, said that attacks on commercial vessels in the Red Sea may have disrupted global trade but higher freight rates are helping logistics operators to offset the impact of lower trade.

Bapco Energies: Areije Al Shakar was named CEO of BeVentures, a subsidiary of Bahrain’s government-owned Bapco Energies, which builds and invests in low-carbon energy ventures.

↪↩ Closing Circuit

💸 Paying Bills: Dubai-traded Al Ansari Financial Services agreed to acquire Bahrain’s BFC Group for $200 million, creating the GCC’s largest provider of bill-paying and currency exchange services.

⚽ World Cup Ready: Saudi Arabia unveiled plans to build a 92,000-seat arena that will be called King Salman Stadium as the kingdom looks set to be picked as host of the 2034 World Cup. 

⛽ LNG Plant: Oman plans to start building a new gas liquefaction plant – known as a train – with an annual capacity of 3.8 million metric tons, and expects to begin operations there in 2029.

👷 Drilling Rights: Egypt’s Ministry of Petroleum and Mineral Resources signed agreements worth $222 million with Shell Egypt and Malaysia’s Petronas for drilling rights in the Mediterranean’s West Delta region.

💳 Credit Acquisition: Pagaya, an Israeli consumer credit fintech, acquired Silicon Valley competitor Theorem Technology for an undisclosed price that Calcalist pegged at tens of millions of dollars.

🗣 Circuit Chatter

🛢️ Keeping Steady: An OPEC+ panel is unlikely to make changes at an Aug. 1 online meeting to its current deal to cut production despite recent declines in oil prices, Reuters reports.

☀️ Warming Up: A summer heat wave accompanied by high humidity has made temperatures in Dubai feel higher than 60C (140F), giving an indication of how global warming will affect the Middle East in the near future, Bloomberg reports in a feature story on weather trends.

✈️ Equality Drive: Defense firm Bae Systems Saudi Arabia is working to recruit more women in the kingdom, scouting schools and universities for future engineering leaders, board member Nouf Alarify tells The National.

🫵 Bogus Accusations: Scammers in the Middle East are exploiting weaknesses in Meta’s Whatsapp, Instagram and Facebook platforms to extort money from members with bogus accusations of copyright infringement, Bloomberg reports.

🇲🇦 Free Trade: The UAE and Morocco agreed on final terms for a Comprehensive Economic Partnership Agreement, cutting import fees and other tariffs to spur trade between the two countries.

🌍 Power Circuit

Egyptian President Abdel Fattah al Sisi accompanied UAE President Sheikh Mohamed bin Zayed on a walking tour of the Mediterranean coastal city of Alamein on Tuesday. The pair appeared in videos posted on social media touring the city’s streets in relaxed attire, stopping to take photos with citizens.

King Mohammed VI of Morocco marked his 25th anniversary on the throne with a speech that urged all citizens to recognize their “solemn duty” to conserve water. “Spending billions and billions in order to mobilize water resources, only to see that cases of waste and misuse continue to exist, is unacceptable,” the king said.

Sheikh Abdullah bin Zayed, UAE Deputy Prime Minister and Minister of Foreign Affairs, headed the UAE delegation attending the inauguration ceremony of Iran’s new President Masoud Pezeshkian in Tehran on Tuesday. The delegation included Abdullah bin Touq Al Marri, Minister of Economy; Mohammed Hassan Al Suwaidi, Minister of Investment and Khalifa Shaheen Al Marar, Minister of State.

Britain’s King Charles hosted a meeting in London on Friday to discuss climate change with COP28 President Dr. Sultan Al Jaber, as well as representatives of this year’s summit host Azerbaijan and next year’s host Brazil.

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, issued a resolution to restructure the Abu Dhabi Chamber of Commerce and Industry’s Board of Directors, appointing Ahmed Jasim Al Zaabi as Chairman.

➿ On the Circuit

Egyptian Prime Minister Mostafa Madbouly held a meeting with Minister of Civil Aviation Sameh El-Hefny to discuss the country’s airports and said the government needs to prioritize development work at Alexandria’s Borg El Arab Airport due to high demand for flights there.

Omar Sultan Al Olama, the UAE’s Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, launched the country’s new Charter for the Development and Use of Artificial Intelligence, declaring the government’s goal of developing “world-leading digital infrastructure and enhancing an integrated system that employs AI in all vital sectors.”

UAE Ambassador to the U.S. Yousef Al Otaiba attended the Mubadala Citi DC Open on Monday, mixing with top players and executives of the Abu Dhabi sovereign wealth fund during the tournament in Washington D.C.’s Rock Creek Park.

Saudi Minister of Commerce Majid Al-Qasabi held talks with South Korean Prime Minister Han Duck-soo in Seoul on how to boost commercial activity following last year’s signing of a free-trade agreement between the two countries.

Jamie Salter, whose buyout firm Authentic Brands owns Sports Illustrated, Brooks Brothers and Forever 21, snagged an opportunity to acquire Reebok International when he spotted the CEO of German sportswear company Adidas at the 2022 Formula One racetrack in Abu Dhabi, Bloomberg reports in a feature story on the Toronto-born mogul.

🎶 Culture Circuit

🐶 Best in Show: The live show of children’s cartoon phenomenon Bluey kicks off at Abu Dhabi’s Etihad Arena this week, running until Sept. 1. The Emmy Award-winning Australian animation series featuring a lovable family of Blue Heeler dogs, Bluey, Bingo, Bandit, and Chilli, has become a cornerstone of Disney programming, consistently ranking among the top five series on Disney+ and clocking up billion-minute viewing weeks.

⛪🕌🕍 House Proud: Abu Dhabi’s Abrahamic Family House on Saadiyat Island, which combines a mosque, synagogue and church, has been named on Time magazine’s annual list of the World’s Greatest Places. Time said the complex, which promotes mutual understanding, “feels more important than ever.” Dubai’s One Za’abeel tower also made the list for its “head-turning” architecture and impressive dining options.

📷 Photo of the Week

🗓️ Ahead on The Circuit

July 2-Aug. 25, Riyadh, Saudi Arabia: Esports World Cup. An international competition for professional gamers with a $60 million prize pot. Boulevard City.

July 27-Aug. 4, Washington D.C. Mubadala Citi DC Open. Tennis tournament featuring nine of the world’s top 20 players. Rock Creek Park.

Aug. 12-15, Riyadh, Saudi Arabia: Saudi Food Expo. One of the kingdom’s largest trade shows for the food & beverage industry. Riyadh Front Exhibitions.

Sept. 10-11, Dubai, UAE: Global Vertical Farming Show 2024. Annual event brings together investors, growers, and executives in the vertical farming industry from around the world. Le Méridien Dubai Hotel & Conference Centre.

Sept. 24-25, Dubai, UAE: ACT Middle East Treasurers Summit. Corporate treasurers and financial professionals from across the region gather for policy discussions on issues ranging from cash management to sustainability. Grand Hyatt Dubai

Sep. 30-Oct. 2, Dubai, UAE: Future Hospitality Summit. The global conference for leaders in the hospitality industry expands this year at a new location with dedicated space for ESG planning, country pavilions and a larger exhibition area. Madinat Jumeirah.  

UAE signs free trade agreement with Mauritius, first in Africa

The UAE’s steady campaign to conclude free trade agreements with partner nations around the world has reached Africa.

In a ceremony on Monday, senior leaders of the UAE and Mauritius met in Dubai to sign a Comprehensive Economic Partnership Agreement that will eliminate more than 97% of all import tariffs between the two countries.

Dr. Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, and Maneesh Gobin, the Mauritius Minister of Foreign Affairs, Regional Integration and International Trade, signed the document while Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, and Mauritius Prime Minister Pravind Kumar Jugnauth looked on via video link.

In the past three years, the UAE has signed free-trade pacts with India, Israel, Indonesia, Turkey, Cambodia and Georgia.

The agreement with Mauritius was the first with an African country. The UAE is also seeking to reopen trade talks with the EU by the end of the year, Al Zeyoudi told Reuters on Monday. 

The Daily Circuit: Gulf market drivers + UAE-Ukraine trade pact

Today in The Daily Circuit we’re looking at the UAE’s trade agreement with Ukraine, NEOM’s new financing deal, ADQ’s rarely seen balance sheet and UAE Ambassador Yousef Al Otaiba’s vision for AI cooperation with the U.S. But first, let’s take stock of stocks in Dubai. 

The Gulf’s capital markets have remained hubs of activity amid inflation, geopolitical risk and higher interest rates. The how and why of this story will be in focus tomorrow in Dubai as the two-day Capital Market Summit gets underway. The Dubai Financial Market is set to host government officials, investment bankers and business leaders to identify what’s driving the market and explore trends in sustainable investing, fintech, digital transformation and market resilience. 

Helal Saeed Al Marri, Chairman of the DFM, is slated to be in conversation with May Nasrallah, Founder and Executive Chair of corporate advisory firm deNovo Partners on Wednesday. Also on the agenda are Jim DeMare, President of Global Markets at BofA Securities; Claire Suddens-Spiers, a 27-year veteran and Co-Head of Equity Market Solutions at Rothschild & Co.; and Michael Wilson, Chief U.S. Equity Strategist and Chief Investment Officer at Morgan Stanley.

The DFM reported strong quarterly earnings today, more than doubling net profit year-on-year to $24 million amid a surge in foreign investor activity. The exchange operator attracted 44,259 new investors, of which 85% were from abroad. Institutional investors’ share of trading value reached 65%. The imminent IPO of Spinneys on May 9 on the DFM is expected to raise up to $376 million for the UAE and Oman grocery retailer.  The total number of shares offered to retail investors has been increased by 7% as of today on strong investor demand.

UKRAINE PACT

After signing 14 free trade agreements over the past two years, the UAE has reached final terms on a pact with Ukraine that offers a significant boost to the war-torn country’s economy. The draft Comprehensive Economic Partnership Agreement (CEPA) will reduce tariffs between the two nations and remove other trade barriers. It also aims to boost Ukraine’s supply chain to the Middle East and North Africa for its major exports, including grains, machinery and metal. “The agreement will play an active role in the revitalisation of the Ukrainian economy, and we look forward towards the ratification of the deal,” Dr. Thani Al Zeyoudi, the UAE Minister of State for Foreign Trade, said in a statement on Monday. The UAE has signed CEPA deals with India, Turkey, Israel, Indonesia, Cambodia, Georgia, Mauritius, Kenya, the Republic of Congo, Colombia and Costa Rica. It is close to signing an agreement with South Korea, while talks are ongoing with Serbia, Vietnam, the Philippines, New Zealand and Ecuador.

EQUITABLE AI

For the Middle East, data is the new oil, according to UAE Ambassador to Washington Yousef Al Otaiba. Hailing the $1.5 billion AI deal Microsoft signed this month to invest in artificial intelligence with Abu Dhabi’s G42 company, Al Otaiba writes in a Bloomberg opinion piece that “governments must race to realize the technology’s potential – and limit its harm.” The UAE, U.S. and other partners are working together on new regulatory frameworks to facilitate public-private sector collaboration on AI and ensure its ethical use, Al Otaiba writes, pledging hundreds of billions of dollars from his country for the effort. At the same time, the world must not allow the massive amounts of energy needed for AI data centers to compromise climate priorities and the shift to renewable power, according to the ambassador. “AI will be the lifeblood of future societies,” Al Otaiba writes. “To ensure that data is truly destiny in the new age, we must join together to promote AI’s ethical and equitable benefits for all.”

🏝️ Island Homes: Aldar Properties, Abu Dhabi’s biggest developer, plans to build 7,000 luxury homes in its $6.8 billion project on the city’s Al Fahid Island, Bloomberg reports. The listed developer reported an 81% jump in first-quarter net profit today on higher sales amid strong momentum for the real estate industry in the UAE.

🇨🇳 Shipping LNG: QatarEnergy signed an agreement with China State Shipbuilding Corp. for the construction of 18 QC-Max size vessels to carry liquified natural gas (LNG).

🐔 Food Factory: Saud Arabia’s Almunajem Foods will build a $42 million factory in Jeddah to produce poultry, red meat, seafood and dairy products.

🌀 Malaysian Renewables: Saudi Arabia’s ACWA Power may invest $10 billion over 10 years to develop renewable energy projects in Malaysia, the country’s Bernama news agency reports.

Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of the Dubai Executive Council, launched the Dubai Universal Blueprint for Artificial Intelligence, a yearly plan focused on harnessing technology to improve quality of life in the emirate.

Sheikh Saif bin Zayed, UAE Deputy Prime Minister and Minister of the Interior, met withKojo Boakye, Head of Operations and Public Policy for Africa, Middle East and Turkey at Meta Group, and Helen Charles, Director of Public Policy at WhatsApp, to discuss strategies for crime-fighting initiatives, with a specific focus on curbing the dissemination of drug-promoting content.

➿ On the Circuit

Kristalina Georgieva, Managing Director of the International Monetary Fund, called for more jobs for young people in the MENA region as a key driver of growth and security, speaking to The National in Riyadh on the sidelines of the special meeting of the World Economic Forum.

Sultan Ahmed bin Sulayem, Chairman and CEO of DP World Group, said the company is boosting investments in the Philippines and Malaysia.

Saudi Aramco CEO Amin Nasser said that the world’s largest oil company is looking to invest in new sources of oil, gas and other hydrocarbon energy sources, speaking at a session during the World Economic Forum’s special meeting in Riyadh.

Noel Quinn, CEO of HSBC, plans to retire, marking an unexpected departure from Europe’s largest lender which will seek to replace him by year-end.

🎶 Culture Circuit

👠 Style Launch: French fashion mag ELLE launched a new edition in Egypt this month, led by Cairo-based media veteran Susan Sabet as Editor-in-Chief and Managing Director. The website is bilingual in English and Arabic, and the first print edition will come out in September.

📷 Photo of The Day

🗓️ Circuit Calendar

Apr. 29-May 1, Riyadh, Saudi Arabia: Future Hospitality Summit. An international gathering hosted in cities around the world bringing together the most influential hospitality investors and developers. Mandarin Oriental Al Faisaliah.

Apr. 29 – May 5, Abu Dhabi, UAE: Abu Dhabi International Book Fair. A key event for the publishing industry in the Middle East and North Africa. Abu Dhabi National Exhibition Center.  

Apr. 30-May 1, Abu Dhabi, UAE: Mobility Live. A conference and exhibition sponsored by the Abu Dhabi transport regulators, gathering disruptive technology developers in transportation and the public sector. Abu Dhabi National Exhibition Center.

Apr. 30-May 1, Abu Dhabi, UAE: Middle East Rail. The leading conference in the region for rail innovation, technology and strategy. Abu Dhabi National Exhibition Center. 

May 1-2, Dubai, UAE: Capital Market Summit. A gathering of investors and entrepreneurs hosted by the Dubai Financial Market aimed at sparking interest in IPOs. Madinat Jumeirah. 

May 5-8, Los Angeles: Milken Institute Global Conference. Politicians, financiers, media and philanthropists convene to discuss challenges across themes like innovation and technology, health and medical research, diversity and inclusion. The Beverly Hilton. 

May 6-7, Dubai, UAE: Dubai FinTech Summit. The second annual gathering of financial leaders meet to spotlight innovation and discuss disruptions in the industry, organized by the Dubai International Financial Centre (DIFC). Madinat Jumeirah. 

May 7-9, Abu Dhabi, UAE: AIM Congress. The Annual Investment Meeting will convene inter-governmental leaders, executives, entrepreneurs and policymakers on the theme “Adapting to a Shifting Investment Landscape: Harnessing New Potential for Global Economic Development.” Abu Dhabi National Exhibition Center.

May 13-15, Abu Dhabi, UAE: Abu Dhabi Global Healthcare Week. A conference focusing on investments, and innovation to solve the most important global health challenges. Abu Dhabi National Exhibition Center and Abu Dhabi City.

May 14-15, Abu Dhabi, UAE: J.P. Morgan Asset Management: Life Sciences Innovation Summit. A gathering aimed at drawing startups and investors from the life sciences sector to Abu Dhabi. Cleveland Clinic Abu Dhabi. 

May. 14-16, Doha, Qatar: Qatar Economic Forum, Powered by Bloomberg. A news-driven event dedicated to global business and investment. This year’s theme is “A World Remade: Navigating the Year of Uncertainty.” Request your invitation here. Fairmont & Raffles, Doha.

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