$700 million undersea cable to connect UAE, Turkey and Iraq

An Iraqi-Emirati consortium is planning a $700 million high-speed cable linking the UAE to Turkey through Iraq, aiming to ease pressure on crowded east-west data routes.

The project, called WorldLink, would run underwater from Fujairah in the UAE to Iraq’s Faw Peninsula, then continue overland to the Turkish border.

Backers say the network will be built in stages over about five years to serve big cloud and AI companies while offering a faster alternative to routes that pass through the Suez Canal, Reuters reports.

The plan underscores intensifying Gulf competition to become a regional hub for digital connectivity and data-center investment.

Damascus holds first investment conference since Assad overthrow

Investors from Saudi Arabia, Turkey and across the Middle East are in Syria this week for the war-weary country’s first major economic conference since the overthrow of former President Bashar Assad.

The new Syrian leader, President Ahmad al-Sharaa, opened the 62nd Damascus International Fair on Wednesday night, presenting the forum as an opportunity for rebuilding economic links with foreign partners after years of conflict.

Some 800 foreign investors, corporate executives and senior government officials attended the event, which marked the return of several Gulf states to the Syrian market.

“Since the moment of liberation, the new Syria has made security, stability and economic development its priorities,” al-Sharaa said in his address, highlighting reforms in investment, banking and infrastructure aimed at drawing back foreign capital.

Saudi Assistant Minister of Investment Abdullah al-Dubaikhi, representing King Salman and Crown Prince Mohammed bin Salman, said Riyadh is implementing previously signed agreements worth about $6.4 billion and expects further deals, particularly in energy.

UAE President travels Eastern Europe, meets Hungary’s Orbán

UAE President Sheikh Mohamed bin Zayed traveled through Eastern Europe and Turkey this week, visiting Hungary where he strolled through Parliament with Prime Minister Viktor Orbán.

The stop in Budapest on Thursday followed visits to Serbia and Albania, where Sheikh Mohamed led a delegation of cabinet ministers and senior UAE executives who explored business opportunities in the region.

Also traveling with the UAE President were Sheikh Hamdan bin Mohamed, Deputy Chairman of the Presidential Court for Special Affairs; Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, and CEO of ADNOC; Dr. Thani Al Zeyoudi, Minister of Foreign Trade; and Khaldoon Al Mubarak, Chairman of the Executive Affairs Authority and CEO of Mubadala.

Prominent in the entourage in Serbia was Mohamed Alabbar, chief of Dubai-based Emaar and Eagle Hills Properties, who has been active for years in the capital of Belgrade and other Eastern European cities.

Most recently, Alabbar has teamed up with Jared Kushner, founder of Miami-based Affinity Partners and son-in-law of U.S. President Donald Trump, to build a Trump Tower hotel in Belgrade on the site of the former Yugoslav Ministry of Defense.

In Hungary, government officials from the two countries signed 14 draft agreements in fields ranging from energy, agriculture, food production, defense and telecommunications. Budapest-based 4iG Space and Defense Technologies also signed three preliminary deals with Abu Dhabi’s defense conglomerate EDGE Group.

The Hungarian company also agreed to explore joint investment opportunities with Abu Dhabi sovereign wealth fund Mubadala and work with UAE telecom e& on submarine cables and data centers, Hungary Today reports.

Gulf investors power Turkey’s rising as regional technology hub

Gulf investors are doubling down on Turkey’s digital future, with UAE-based Khazna planning a major AI hub and 100MW data center in Ankara.

The facility marks the latest in a wave of high-profile investments transforming Turkey into a regional tech powerhouse, Arabian Gulf Business Insight reports.

E-commerce giant Trendyol, meanwhile, has joined forces with Castle Investments, led by Gulf Data Hub founder Tarek Al Ashram, to develop a $500 million data center in Turkey’s capital.

Dubai Islamic Bank and Emirates NBD are fueling the expansion further, committing over $260 million to bolster Turkcell’s infrastructure. 

Dubai passes climate torch to Azerbaijan as COP29 opens

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.”

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.  

Turkey begins talks on free trade agreement with GCC states

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 in Ankara on Monday 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.

The kingdom will be followed by Qatar, Oman, Kuwait, Bahrain and the UAE before an agreement can be reached that reduces import taxes and other tariffs. The UAE, which does the largest amount of trade with Turkey among the Gulf states, will follow up to join the GCC pact.

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.

The Daily Circuit: Help for Gulf family offices + ADNOC China deals

👋 Hello from the Middle East!

Today in The Daily Circuit, we’re looking at a lucrative string of China deals for ADNOC, Egyptian microlender MNT-Harlan’s new Turkish acquisition, Masdar’s $885 million solar farm deal in Spain and the Middle East cinematic release of the Mubadala-backed cartoon series, “The Adventures of Mansour.” But first, wealth management help is on the way for family offices in the UAE.

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. Octagon, a Dubai-headquartered family office-as-a-service firm, announced on Thursday it is now taking UAE clients.

The Great Wealth Transfer is forecasted 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. This phenomenon will be acutely felt in the UAE and Saudi Arabia, where family businesses make up about 90% and 60% of private companies, respectively, according to government figures. More family offices are cropping up to deploy this expanding pot of wealth as diversification from oil picks up pace in the region and opportunities for investment expand.

Octagon says it is geared specifically to family offices – for established and newly incorporated entities – with services including asset management, corporate services, business management and investment development in “lifestyle verticals” such as real estate, education and health. Family office clients “have different wealth management perspectives – with more diversified portfolios, and a greater technology and impact focus,” the company said in a media release.

TAPPING EAST

The UAE’s Minister of Industry and Advanced Technology Dr. Sultan Al Jaber concluded a visit to China this week with multiple deals for ADNOC, the state oil company he heads, in hand. Al Jaber clinched a pact with China National Offshore Oil Co. to explore opportunities in new energy plans, low-carbon solutions, liquefied natural gas ventures and oil and gas activities and trading projects. Meanwhile, an agreement with China National Petroleum Corp. will focus on investments in low-carbon solutions, LNG and oil and gas exploration, refining and trading. China is among the most significant markets for ADNOC, Al Jaber said. Bilateral trade surged 7.5% annually, reaching $95 billion last year, including $83 billion in non-oil trade, according to government figures. Both economies aim to reach a target of $200 billion by 2030.

EGYPTIAN EXPANSION

Just days after raising nearly $158 million to finance its regional growth, Cairo-based fintech MNT-Harlan announced the acquisition today of Turkey’s Tam Finans from private equity firm Actera Group and the European Bank for Reconstruction and Development. Terms were not disclosed. MNT-Halan’s fundraising – which came from heavyweights like International Finance Corp., Lunate, Lorax Capital Partners and GB Corp. – puts it in a league with top financial companies in the UAE and Saudi Arabia, VC tracker MAGNiTT says. Describing the amount raised as “staggering,” MAGNiTT notes that MNT-Halan has ample cash for geographical expansion following last year’s $400 million debt and equity raise that secured its unicorn status. “For such a significant round to emerge from Egypt is a welcome change, and we can only hope it leads to greater diversity across the top rounds” in the second half of 2024,” MAGNiTT said.

💲 Sovereign Circuit

Mubadala: Masdar, the UAE’s sustainable energy company owned by Mubadala, ADNOC and Abu Dhabi National Energy Co., reached an $885 million agreement with Madrid-based Endessa to buy a 49.9% share of 48 solar farms in Spain operated by the company. Meanwhile, U.S.-based fund Fortress Investment, which is owned by Mubadala, has poured $100 million into British semiconductor company Imagination Technologies Group.

Abu Dhabi Investment Authority: ADIA has fallen behind in a bidding war to acquire Indian pharma giant Bharat Serums & Vaccines from Advent International.

↪↩ Closing Circuit

✈️ Airplane Sales: Saudi low-cost carrier flynas signed a draft agreement with Airbus to buy 90 planes with a list price of $13 billion, though discounts are likely with such a large order.

🩺 Debt Finance: Saudi Arabia’s medical devices distributor ProMedEx has secured $6.7 million in credit facilities from Al Rajhi Bank, which will be used to finance business expansion.

💵 Cash Injection: Mamo, a UAE-based fintech startup, secured $3.4 million in a fundraising round led by existing investor 4DX Ventures and the Dubai Future District Fund.

🔬 Blood Analysis: Scopio Labs, an Israeli startup that uses computer photography for AI-based blood cell analysis, raised $42 million in a Series D funding round led by Fortissimo Capital.

🔌 EV Power: Addionics, an Israeli EV battery startup, raised $39 million in a Series B funding round led by GM Ventures.

🗣 Circuit Chatter

🛫 Looney Flights: Abu Dhabi-based Etihad Airways unveiled the world’s first Warner Bros.-branded aircraft on Thursday, a Boeing 787-10 Dreamliner sporting characters from “Looney Tunes” and “Tom and Jerry” on one side, and DC superheroes on the other.

🚕 Air Taxis: Crisalion Mobility, a European developer of sustainable electric mobility services, said it will work together with Dubai-based private aviation operator Air Chateau, to help introduce electric air taxis in the UAE.

🚆 Attention Straphangers: To design, build and operate a metro system for Baghdad, the Iraqi government said it has selected France’s Systra and SNCF, Spain’s Alstom, Talgo and SENER, and a number of Turkish construction firms, alongside Germany’s Deutsche Bank.

🏗️ Artistic Lifestyle: Abu Dhabi’s biggest real estate developer Aldar Properties has announced its first residential project in the Saadiyat Cultural District. Construction of “The Arthouse” community, which will overlook Guggenheim Abu Dhabi, is scheduled to start in Q1 2025.

🌍 Power Circuit

Chilean President Gabriel Boric Font will visit the UAE next week, arriving on Monday for the first official visit by a Chilean president since the establishment of diplomatic relations between the two countries in 1978.

Sheikh Hamdan bin Mohamed, Deputy Chairman of the UAE Presidential Court for Special Affairs, chaired the inaugural meeting on Thursday of the government’s Smart and Autonomous Systems Council at the Qasr Al Watan palace in Abu Dhabi.

➿ On the Circuit

Mohamed Al Hussaini, UAE Minister of State for Financial Affairs, attended the COP28-G20 Conference on Sustainable Finance in Rio de Janeiro, Brazil, on Wednesday, telling delegates that finance is key for enabling climate action.

JPMorganChase CEO Jamie Dimon met top Israeli tech leaders this week at the home of Mellanox founder Eyal Waldman, including Fiverr CEO Micha Kaufman, Wix CEO Avishai Avrahami and HiBob CEO Ronni Zehavi.

Daen Juma Al Tamimi, a veteran Emirati actor and artist, died this week, drawing tributes from across the Middle East. He was 75.

🎶 Culture Circuit

📺 Animated Hit: The latest series of “The Adventures of Mansour,” an Arabic cartoon for kids in the UAE produced by Bidaya Media with backing from Abu Dhabi sovereign wealth fund Mubadala, is destined for cinematic release across the Middle East. After wide success both in the region and in Europe, including the BBC picking up the English version, the latest installment, “The Adventures of Mansour: Age of AI,” will hit big screens from August 15.

📷 Photo of the Day

🗓️ 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.

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.  

The Daily Circuit: SoftBank courts UAE in Tokyo + Dubai’s mega car market

👋 Hello from the Middle East!

Today in The Daily Circuit, we’re looking at Dubai’s plans to build the world’s largest car market, the Saudi Public Investment Fund’s latest deals in Turkey and Hong Kong, a new finance team at the Egyptian Cabinet table and the Michelin stars awarded to five more Dubai restaurants. But first, the UAE and Japan talk tech in Tokyo.

The UAE’s power man met with the head of SoftBank on Thursday as the Japanese firm is reportedly looking to make investments at the intersection of energy and artificial intelligence. 

Dr. Sultan Al Jaber, who in addition to serving in the Cabinet as Minister of Industry and Advanced Technology is also CEO of state-owned oil company ADNOC and Chairman of alternative energy firm Masdar, met with SoftBank CEO Masayoshi Son in Tokyo. The pair discussed “trends in the energy, industry and advanced technology sectors, highlighting the importance of increasing strategic investments in these areas to enhance sustainable economic growth,” according to an Instagram post from the Ministry of Industry and Advanced Technology.

Abu Dhabi and SoftBank have a history: The capital’s sovereign wealth fund Mubadala was an anchor investor in Son’s Vision Fund I, ultimately writing down its stake as the fund’s big play for WeWork went belly up. SoftBank’s fortunes have since reversed with Arm. The U.K. chip designer it acquired in 2016 has more than doubled its market capitalization to about $170 billion since going public last year in New York.

The Information reported on Thursday that SoftBank is looking to borrow up to $10 billion from banks to enable investments in energy-related projects. The data centers that power AI are hugely energy-intensive and face growing demand. SoftBank is also exploring ways to gain access to a large volume of Nvidia’s graphics processing units, the building block of AI development, the Silicon Valley publication reported. 

Al Jaber also met with Japanese Prime Minister Fumio Kishida as well as Hayashi Yoshimasa, Chief Cabinet Secretary; and Taro Kono, Minister of Digital Transformation. Alongside UAE Minister of Foreign Trade Thani Al Zeyoudi, he met with Ken Saito, Japan’s Minister of Economy, Trade and Industry of Japan to discuss strengthening trade and investments in energy and advanced industry with the world’s fourth-largest economy.

AUTOMOTIVE MEGAMARKET

Dubai is planning to build what its leaders describe as the world’s largest and most advanced car market. Officials signed a contract with DP World on Thursday to build and manage a 20 million square-foot facility connected to 77 international ports that is expected to generate an estimated $3.8 billion in sales. “The new market will become a global hub that offers commercial services and logistics and financing solutions” for the automobile industry,” Sheikh Mohammed bin Rashid, Ruler of Dubai and the UAE’s Vice President and Prime Minister, said in a statement released on Thursday. The new compound – eight times the size of the city’s current car market – will enable buying, selling, registration and banking within its domain. It will also host major conferences and events for the international automotive industry.

SCORING RISK

Israel and Saudi Arabia are at the greatest risk of defaulting on their debt among emerging markets tracked by Goldman Sachs. Over the first half of 2024, Israel showed the sharpest decline in the investment bank’s tally of sovereign-risk scores, as war in Gaza created a drain on public finances, Bloomberg reports. Saudi Arabia’s massive spending on Neom and other mega-projects mapped out in Crown Prince Mohammed Bin Salman’s Vision 2030 economic blueprint led to the kingdom’s drop in the risk scorecard, according to the July 1 Goldman Sachs report. Reduced oil revenues led to lower scores for other Arab Gulf countries including Oman and Bahrain, Bloomberg said. Goldman takes into account economic, governance, fiscal, external and monetary metrics to come up with its overall risk scores.

Public Investment Fund: PIF-owned Saudi Arabian Military Industries signed draft agreements with Turkish defense contractors Baykar, Fergani Space and Aselsan to develop products and services together at facilities within Saudi Arabia. Meanwhile, the fund’s expansion in Asia continues as the PIF on Thursday signed a non-binding preliminary agreement with Hong Kong conglomerate ChaoShang for a potential $500 million investment aimed at providing the company with convertible debenture and loan financing. The investment, which will be fully funded by the sovereign wealth fund, will be finalized over the next three months and back investments in industries like mining and healthcare.

ADQ: Abu Dhabi’s ADQ has listed a dual-tranche $2.5 billion bond on ADX. The notes were initially listed on the London Stock Exchange in April. The fund sold a $1.25 billion five-year portion at 80 basis points (bps) over US Treasuries and another $1.25 billion 10-year tranche at 90 bps over the same benchmark.

Lunate: The UAE’s $105 billion investment firm, which is backed by Abu Dhabi-based International Holding Co. and ADQ, and Daman Investments were authorized by The Ministry of Human Resources and Emiratisation and the Securities and Commodities Authority to launch employee savings funds that protect capital and comply with Islamic Sharia.

💵 Green Backing: ADNOC and the Japan Bank for International Cooperation have signed a $3 billion agreement for a green financing facility. ADNOC said the funding would support decarbonisation and energy transition initiatives. 

🌐 Potential IPO: Alpha Data, an IT services company based in the UAE is planning an IPO that would seek to raise about $200 million and is working with EFG Hermes and Emirates NBD Capital on the potential sale, Bloomberg reports.

🤖 Fiber AI: CogniFiber, an Israeli startup that processes data at the speed of light for artificial intelligence applications, raised $5 million in a funding round led by Chartered Group and Eastern Epic Capital.

🇲🇦 Pay Boost: Moroccan government and union negotiators reached agreement on a new contract that will provide a 50% salary increase and expanded health coverage for 1.1 million public employees.

🗣 Circuit Chatter

🚚 Overheated EVs: Amazon is trying to address the challenges to electric vehicles posed by the Middle East’s extreme heat as it accelerates use of EVs for its delivery fleet in the UAE, Prashant Saran, the company’s director of operations for Turkey, the Middle East and Africa, told The National.

🛂 Citizen Drive: Saudi Arabia has begun granting citizenship by royal decree to a number of scientists, medical doctors, researchers and entrepreneurs with unique specializations as it looks to attract talent to the kingdom.

🇬🇧 New Order: The financiers that populate the City of London and Mayfair, sometimes referred to as “Little Doha,” shunned the Conservatives on U.K.’s Election Day yesterday and are embracing their new Labour constituency, Bloomberg reported.

🏗️ Going Public: Oman’s state-owned logistics company Asyad Group has hired Jefferies Group and EFG Hermes as advisers and is planning an IPO for its subsidiary Asyad Shipping Co before the end of the year, Zawya reports.

🎞️ Film Drama: The terrorism charges against animated-film maker Abdulaziz Almuzaini, a U.S.-Saudi citizen who does work for Netflix, shows the possible limits of reform in Saudi Arabia, the Wall Street Journal reports.

🌍 Power Circuit

Egyptian President Abdel-Fattah el-Sissi led the first meeting of his new Cabinet on Thursday, declaring the importance of completing economic reform while “attracting and encouraging domestic and foreign investments.” Among the government’s new faces were Finance Minister Ahmed Kouchouk; Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation; and Hassan ElKhatib, Minister of Investment and Foreign Trade.

Emir of Qatar Sheikh Tamim bin Hamad Al Thani met with Russian President Vladimir Putin on the sidelines of the Shanghai Cooperation Organization summit in Astana, Kazakhstan.

The UAE sent a delegation to the summit in Astana to represent President Sheikh Mohamed bin Zayed that included Sheikh Saud bin Saqr Al Qasimi, Member of the Supreme Council and Ruler of the emirate of Ras Al Khaimah.

➿ On the Circuit

U.S. Congressman Josh Gottheimer (D-NJ) led a House Intelligence Committee trip to Israel and the UAE where he met with UAE Secretary-General of the Supreme Council for National Security Ali Al Shamsi; UAE Director of Signals Intelligence Agency Ahmed Al Dehaim and Executive Vice President of G42 Talal Al Kaissi.  

Hamad Al Ameri, CEO of Abu Dhabi-listed conglomerate Alpha Dhabi, said the firm plans to list some of its portfolio companies this year amid strong market performance, in an interview with The National.  

🎶 Culture Circuit

⭐ Star Power: Five restaurants have been added to Dubai’s growing list of Michelin-starred dining venues in the latest rankings for the emirate by the famed French gastronomic guide, announced on Wednesday. A total of 19 restaurants now boast the coveted stars, with four obtaining two-star rankings. Jason Atherton’s new restaurant Row on 45, which offers a 1,145 dirham ($312) tasting menu, was awarded two-stars just 10 months after opening, while Dubai institution Orfali Bros and Anne-Sophie Pic’s La Dame Pic received their first stars.

📷 Photo of the Day

🗓️ 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 10-11, Riyadh, Saudi Arabia: Global EV and Technology Forum. The inaugural summit in Saudi Arabia bringing together policymakers, companies and investors focused on sustainable urban mobility solutions. Riyadh International Convention & Exhibition Center.

July 15-26, Granada, Spain: ADIA Lab International Summer School. A course of lectures and case studies to explore the critical role of trust and safety in AI, examining the ethical, technical and societal implications of AI applications. University of Granada. 

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. 

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.  

The Daily Circuit: Expats fuel Gulf growth + MGM nixes Dubai casino

👋 Hello from the Middle East!

Today we’re looking at efforts by Turkey and Egypt to revitalize trade, MGM dispelling Dubai casino rumors, the PIF’s new joint venture with Italy’s Pirelli and Tiger Woods on prospects for the PGA-LIV merger. But first, an ode to Gulf expats.

Retaining wealthy expatriates for the long-term is critical to the growth of Gulf economies as cities vie to attract workers who are projected to live longer and retire earlier, according to a new report from Mercer, released with the World Governments Summit in Dubai this week.

“GCC countries like the UAE – because of their significant proportion of high-net-worth international expatriates – could benefit from more expatriates staying for retirement,” said Mercer’s Robert Ansari, a co-author of the report. Opportunities are growing for expats in technology and financial services across the region as the GCC relaxes visa rules and expands incentives to lure start-ups, tech companies and multinational financial firms. The UAE’s visa reforms, including its move last month to lower spending requirements to secure a 10-year residency visa, the so-called “Golden Visa,” is one example.

Home sales, a barometer of long-term commitment, are a mixed bag in the Gulf as high prices and rising interest rates pinch buyers. Residential real estate transactions in Saudi Arabia declined 16% last year compared to 2022, according to a new report by property consultancy Knight Frank. Dubai, by contrast, is shrugging off the affordability challenge — the market is hot and international buyers are flocking. The emirate counted a record 1.6 million real estate transactions last year, up 17% compared to 2022, according to the Dubai Land Department.

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Public Investment Fund: The European Commission has granted approval to Italy’s Pirelli Tyre SpA and the PIF for a joint venture to manufacture and sell passenger car tires in Saudi Arabia.

Qatar Investment Authority: The QIA’s CEO Mansoor Bin Ebrahim Al-Mahmoud met with Kazakhstan’s President Kassym-Jomart Tokayev in Doha and discussed establishing a Qatari-Kazakh investment fund. Singapore’s Capitaland is raising a follow-on fund for co-living investments to the Ascott Serviced Residence Global Fund set up by Ascott Ltd. as a 50-50 joint venture with the QIA.

International Holding Co.: Alpha Dhabi, the diversified conglomerate controlled by Sheikh Tahnoon bin Zayed’s IHC, reported a 25% increase in net income, which reached $3.6 billion in 2023.