The Daily Circuit: Gulf sovereign funds dominant + Umm Al Qura shares soar
👋 Hello from the Middle East!
In the Daily Circuit today, we’re looking at the UAE’s commitment to invest $1.4 trillion in the U.S., Umm al Qura’s 30% jump in its Riyadh trading debut, M42’s plan to sell genetic data to pharmaceutical companies and new efforts by Hong Kong hotels to woo Gulf travelers. But first, Gulf sovereign wealth funds are topping the charts.
The Gulf states have become a dominant force in the world of sovereign wealth funds even if their assets fall shy of those in Norway and China.
Led by the UAE, Kuwait and Saudi Arabia, government-owned funds in the Gulf are expected to grow 50% by 2030 and control $18 trillion in assets, according to an analysis by Deloitte Middle East. The region is home to six of the world’s 10 largest funds and about 40% of total sovereign assets.
The Abu Dhabi Investment Authority leads the Gulf with $1.05 trillion, according to Deloitte, followed by the Kuwait Investment Authority at $1.02 trillion, the Saudi Public Investment Fund with $925 billion and the Qatar Investment Authority with $526 billion.
“The Gulf region continues to be the epicenter of sovereign wealth fund activity, with its major players driving innovation in investment strategies and operational excellence,” Julie Kassab, sovereign wealth fund leader at Deloitte Middle East.
Another phenomenon identified by Deloitte is the proliferation of Royal Private Offices, or RPOs, that now control approximately $500 billion in assets in the Gulf and have become one of the key drivers behind the creation of new sovereign wealth funds in the region.
Sovereign wealth fund tracker Global SWF has identified 35 RPOs in the Gulf, with the UAE home to a vast majority of these offices. The most significant of them is the Royal Group, a family enterprise headed by Sheikh Tahnoon bin Zayed, the UAE National Security Adviser and Deputy Ruler of Abu Dhabi. Sheikh Tahnoon is also Chairman of sovereign funds ADIA and ADQ, in addition to leading some of the emirate’s largest firms, including International Holding Co., MGX and G42.
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📰 Developing Stories
$1.4 BILLION INVESTMENT
The UAE plans to increase its investments in the U.S. to $1.4 trillion over 10 years. Following last week’s visit by Sheikh Tahnoon bin Zayed with President Donald Trump and several of his cabinet members last week, the White House announced that the UAE had agreed to the new investment framework, pledging money for AI infrastructure, semiconductors, energy and manufacturing. Sheikh Tahnoon, the UAE National Security Advisor who leads several of the country’s largest companies and sovereign wealth funds, spent the first part of the week with government leaders. Later, he met with heads of the biggest tech companies, including Meta’s Marc Zuckerberg, Amazon’s Jeff Bezos, Palentir’s Alex Karp and xAI’s Elon Musk.
HALAL-FRIENDLY
Hong Kong hotels and restaurants are taking new steps to attract wealthy travelers from the Gulf states and other Muslim countries. Visitors to the city’s Grand Hyatt will find a copy of the Koran in their rooms and alcohol-free options in their minibars, Bloomberg reports. Chinesology, a high-end restaurant at the International Financial Center, now offers 20 Chinese dishes and two tasting menus that are halal-friendly, with prices ranging from $113 to $179 per person. The efforts to woo Muslim tourists are part of the government’s push to boost visitor numbers, which have not recovered from the blow dealt by the government crackdown during Hong Kong’s 2019 protests.
💲 Sovereign Circuit
M42: The Abu Dhabi health care company, backed by Mubadala and International Holidng Co., plans to turn the extensive genetic data it has compiled on Emirati citizens into a DNA “gold mine” for international pharmaceutical companies, the Financial Times reports.
Tamesek: Seviora Group, a subsidiary of Singapore’s Tamesek sovereign wealth fund, opened an Abu Dhabi office in partnership with Mubadala and appointed Sadiq Hussain as Senior Executive Officer.
Masdar: The Abu Dhabi-owned sustainable energy firm is exploring a potential stake in TotalEnergies’ Portuguese renewables assets via its green energy unit Saeta Yield, Reuters reports. Meanwhile, Masdar said it made $8.2 billion in equity investments and secured more than $4.5 billion in project financing across nine countries in 2024.
↪↩ Closing Circuit
📈 Mecca Shares: Umm Al Qura for Development & Construction Co., which is building a massive project in the Muslim Holy city of Mecca, jumped 30% today in its debut on the Riyadh Stock Exchange following a $523 million IPO last month.
💪 Body Builders: Sport Clubs Co., which runs 56 health club branches across Saudi Arabia, received approval from the Capital Market Authority to sell 30% of its share capital on the Riyadh Stock Exchange.
🏭 Energy Expansion: Spain’s Técnicas Reunidas and Egypt’s Orascom have secured a $2.6 billion joint venture contract to expand a 3GW gas-fired power plant in Saudi Arabia.
⛽ Fuel Takeover: Saudi Aramco acquired fuel distributor Primax, which operates 2,185 gas stations across Peru, Colombia, and Ecuador, for about $3.5 billion, Peru’s Gestion reports.
📺 TV Streaming: Warner Bros. Discovery will pay $57 million for a one-third stake in Dubai’s OSN Plus streaming service, OSN Group CEO Joe Kawkabani told Bloomberg.
🗣 Circuit Chatter
💵 Hedge Hub: Dubai is considering changes to its rules governing money managers to promote the city’s ambition as an emerging hub for hedge funds.
⚡ Dead Deal: U.K.-based Energean said it will terminate a $945 million Mediterranean gas deal with private equity fund Carlyle because of delays in obtaining regulatory approvals in Egypt and Italy.
💰 Investment Hub: Egypt’s General Authority for Investment and Free Zones and Mashreq Bank Egypt signed an agreement to promote investment by showcasing the country’s economic opportunities to local and international clients.
🌿 Green Partners: Air Liquide Egypt and United Energy Group have agreed to jointly develop low-carbon ammonia projects in Egypt using renewable hydrogen, leveraging the country’s green energy potential and addressing renewable energy intermittency.
🛢️ Oil Boost: Iraq, OPEC+’s second-biggest oil producer after Saudi Arabia, said it plans to raise its capacity to more than 6 million barrels per day by 2029, up from its current output of about 4 million.
🌍 Power Circuit
UAE President Sheikh Mohamed bin Zayed visited Cairo on Saturday where he met with Egyptian President Abdel Fattah El-Sisi to discuss expanding economic cooperation and investment.
Sheikh Khaled bin Mohamed bin Zayed, Crown Prince of Abu Dhabi, appointed Saif Ghobash as Chairperson of his office.
➿ On the Circuit
Maryam Eid AlMheira was named Chairperson of the Abu Dhabi Media Office by UAE President Sheikh Mohamed bin Zayed in his role as Ruler of Abu Dhabi.
Steve Witkoff, President Donald Trump’s Mideast negotiator, spoke with Tucker Carlson about his talks with Hamas, Israel and Qatar to end the Gaza War in a new episode released over the weekend.
Mohamed Ali Boubane was appointed the new CEO of Dubai-listed Islamic insurer Salama, succeeding Walter Jopp.
Salmeen Alameri was appointed as the new CEO of Abu Dhabi-based food and beverage company Agthia Group following the resignation of Alan Lesley Smith.
Shaikha Nasser Al Nowais, Corporate Vice President at Rotana, was nominated by the UAE to be Secretary General of the U.N. World Tourism Organization for the 2026–2029 term.
🎶 Culture Circuit
🎶 New Music: Saudi Arabia is trying to build a modern music industry through investments in education, infrastructure, talent development, and global partnerships, The National reports. At the heart of project is the newly opened Saudi Music Hub in Riyadh. Saudi Music Commission CEO Paul Pacifico said he needs to build a music ecosystem from scratch, focusing on talent development and international partnerships.
📷 Photo of the Day
📅 Circuit Calendar
March 1-30, Abu Dhabi. Ramadan and Eid exhibition. The exhibition will showcase companies displaying an array of fashion, accessories, perfumes and other gifts. ADNEC.
March 6-23, Dubai. Ramadan Food Festival. The free festival features a curated selection of restaurants across five zones. Sheikh Hamdan Colony, Karama.
April 7-9, Abu Dhabi. AIMCongress 2025. An investment platform bringing together thought leaders, decision-makers and entrepreneurs. ADNEC.
April 7-9, Dubai. Middle East Energy. Bringing together international energy suppliers to discuss products and solutions. Dubai World Trade Centre.
April 11-13, Sakhir, Bahrain. F1 Gulf Air Bahrain Grand Prix. Formula 1 racing returns to the Gulf island state. Bahrain International Circuit.
April 13-15, Riyadh. Saudi Food Manufacturing. Back for a second year, the focus turns to logistics solutions, including advancements in AI-driven supply chains, robotics, and sustainable automation technologies. Riyadh Front Exhibition & Conference Centre.
April 14-16, Dubai. IPS Congress. The Middle East’s largest international property sales event. Dubai World Trade Centre.
April 15-17, Dubai. Abu Dhabi Global Health Week. A critical worldwide forum dedicated to shaping the future of health. ADNEC.
April 16-17, Dubai. FastBull Finance Summit Dubai. Focused on the depth and breadth of global finance, emphasizing areas such as forex and blockchain financial technology. Coca-Cola Arena.
April 17-19, Dubai. World Art Dubai. A four-day art fair featuring more than 10,000 artworks. Dubai World Trade Centre.
April 18-20, Jeddah. STC Saudi Arabian GP. The Formula 1 Saudi Arabian Grand Prix by STC returns, promising an electrifying high-speed spectacle on the Red Sea. Jeddah Corniche Circuit.
April 18-20, Abu Dhabi. Middle East Film and Comic Con 2025. The region’s largest pop culture festival returns for its 13th year. ADNEC.
April 21-23, Abu Dhabi. Electric Vehicle Innovation Summit 2025. The Middle East’s largest annual event dedicated to shaping the future of electric mobility. ADNEC.
April 21-25, Dubai. Dubai AI Festival. Bringing together the brightest minds to explore and expand the commercial and economic possibilities of AI technology.” Madinat Jumeirah.
April 29-30, Abu Dhabi. Digital Transformation Summit UAE 2025. In its 37th edition, the summit is expected to be attended by over 300 C-suite executives, directors, and technology leaders. Sheraton Abu Dhabi Hotel and Resorts.
April 30. May 1, Dubai. Token2049 Dubai. A global conference dedicated to the crypto and blockchain ecosystem. Madinat Jumeirah.