👋 Hello from the Middle East!
This week, we’re looking at newsmakers from the World Governments Summit in Dubai: from what OPEC’s chief thinks about the global energy transition to AI mania with tech titans Sam Altman and Jensen Huang. Also, Egypt’s energy minister on coping with Red Sea attacks and an investment outlook from Mubadala CEO Khaldoon Al Mubarak. But first, a UAE-India love story for Valentine’s Day.
Indian Prime Minister Narendra Modi visited the UAE to great fanfare, delivering speeches to a packed stadium of Indian expats in Abu Dhabi on Tuesday night and to leaders gathered at the World Governments Summit in Dubai on Wednesday. Modi’s UAE sojourn also included opening the Middle East’s first stone-built Hindu temple in Abu Dhabi. It was Modi’s seventh visit to the Emirates since becoming prime minister nearly a decade ago. Beyond the public appearances, a consequential new trade route is starting to take shape behind closed doors.
On Tuesday the UAE and India signed a pact on a trade corridor that aims to connect Europe with India. It’s an ambitious path that brings goods by ship from the world’s most populous country across the Arabian Sea, sends them by rail and truck through the Arabian Peninsula, Jordan and Israel, and then ships them across the Mediterranean Sea to European ports. First announced on the sidelines of the G20 summit in New Delhi last September, the trade route has the backing of the U.S. and the EU.
The Indian diaspora is a linchpin of the UAE economy, making up over a third of the country’s population as of 2021. Indian entrepreneurial success stories are popular in the Gulf. Yusuff Ali, for example, founded grocery chain LuLu Group International in Abu Dhabi in the early 1990s. Today it is one of the Middle East’s largest retailers and is reportedly eyeing a potential $1 billion initial public offering with a dual listing in Abu Dhabi and Riyadh.
OPEC Secretary-General Haitham Al-Ghais laid out the group’s vision for the world’s energy transition to renewable fuels on Tuesday, emphasizing that oil will continue to be dominant for at least the next several decades. OPEC expects petroleum demand to reach a peak of 116 million barrels a day in 2045, driven by world population growth and broadening urbanization. “For us, in OPEC, we take the approach that all forms of energy will be required,” Al-Ghais told the WGS. “No single source of energy will be able to replace another, especially oil.”
OpenAI’s Sam Altman had two suggestions for the UAE’s Minister of State for Artificial Intelligence Omar Al Olama on Tuesday. Altman said that the UAE could be the world’s regulatory sandbox to experiment with AI technologies and the country is well placed to lead the formation of a global AI watchdog.
Alibaba Group is forging local partnerships in the Gulf, the e-commerce giant’s president, Michael Evans, said on a panel at WGS on Wednesday. “One of the things we’ve chosen to do, which is a little unusual for a Chinese company, is we partner,” Evans said, responding to how Alibaba navigates foreign policy.
Egypt’s Finance Minister Mohamed Maait said the government will be able to absorb some of the impact that Houthi attacks in the Red Sea have had on revenue from the Suez Canal because of higher receipts earlier in 2023, Reuters reports. Additionally, he said, hiring private contractors for certain projects instead of using government companies cut expenses by 10%.
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].
BIG WORLD
Mubadala’s Khaldoon Al Mubarak on investing in India, China, energy
Khaldoon Al Mubarak, Group CEO and Managing Director of Abu Dhabi’s Mubadala Investment Co., said the sovereign wealth fund sees growing opportunities in India, China and the global transition from carbon-based fuels, The Circuit’s Jonathan Ferziger reports.
Energy and infrastructure: Speaking on a panel at the World Governments Summit in Dubai on Monday, Al Mubarak said the two most populous countries have tremendous infrastructure and energy needs that are attractive investments for Mubadala.
Risk appetite: “The world is big,” Al Mubarak said, recommending that investors look beyond the U.S. market. “It depends what your investment appetite is, what your risk appetite is, when you’re looking at growth and when you’re looking at innovation. You have to, I think, be open minded to both east and west, and north and south.”
Click here to read the full story.
FEELING CHIPPER
Jensen Huang: Countries must protect ‘data sovereignty’
Nvidia CEO Jensen Huang made a strong sales pitch at the World Governments Summit in Dubai on Monday, The Circuit‘s Kelsey Warner reports.
Data sovereignty:More than 25 world leaders, 140 governments and 85 international organizations are among the 4,000 attendees at the three-day event under the theme “Shaping Future Governments.” The semiconductor chief, whose California-headquartered firm has a $1.73 trillion market cap, said that every country should have its own AI infrastructure and protect its “data sovereignty.”
Just build it: Doing so would capture the most economic upside, he said, adding that companies in the Gulf like Saudi Aramco and Abu Dhabi-backed G42 are already doing this. “You cannot allow that to be done by other people,” Huang said. “Build the infrastructure as fast as you can.”
Click here to read the full story.
Sovereign Circuit
Mubadala: The Abu Dhabi sovereign wealth fund’s venture capital arm is in talks with biotech companies raising money to develop psychedelic drugs to treat mental health disorders, the Financial Times reports. Brazil’s state-run oil company Petrobras hopes to settle its deal with Mubadala by the end of June to take back control of a refinery it sold three years ago to the Abu Dhabi sovereign wealth fund for $1.7 billion.
Public Investment Fund: China’s MSA Capital, backed by the PIF’s Jada Fund of Funds, will seek to raise $1 billion to back Middle East technology startups, Bloomberg reports. The PIF, which owns Britain’s Newcastle United soccer team, is getting ready to make an offer of $970 million for Italy’s AS Roma club, the Daily Mail of London reports. Saudi-based Al Ayuni Investment and Contracting Co. said it won the bidding for $532 million in contracts by PIF-owned Diriyah Co. to carry out infrastructure works in the development of tourism and shopping in the ancient Saudi city of Diriyah north of Riyadh.
ADQ: Profits plunged to $262 million in 2023 from $1 billion the year prior for PureHealth. Revenues were up 31% year-on-year to $4.5 billion, according to the ADQ-backed healthcare conglomerate, which reported annual earnings on Tuesday. Khaled Ateeq Aldhaheri has been named CEO of UAE health insurer Daman, a PureHealth subsidiary.
Kuwait Investment Authority: Eris Lifesciences, the India-based drugmaker backed by the KIA, has acquired a 51% stake in sterile injectables company Swiss Parenterals for $77 million.
Circuit Chatter
💰 Risky Business: The regulator of the Abu Dhabi Global Market slapped fines totaling $46,000 on six institutions for failing to adhere to certain reporting requirements.
🏗️ Green Building: UAE developer Modon Properties opened the region’s first “smog-free tower” at Hudayriat Island in partnership with Abu Dhabi’s Environment Agency.
🇮🇳 Path to Capital: Abu Dhabi start-up ecosystem Hub71 is partnering with Indian venture debt fund Stride Ventures to identify global startups to set up their operations in Abu Dhabi.
🚜 Vertical Farming: Abu Dhabi’s hub for sustainable technology, Masdar City, launched an indoor vertical farm with Alesca Technologies that will grow several varieties of leafy greens, lettuce and herbs.
🛏️ Hotel Stakes: Egyptian real estate developer Talaat Mostafa Group has completed the acquisition of majority stakes in seven state-owned hotels, including the Sofitel Winter Palace Luxor, the Steigenberger Cecil Hotel Alexandria and the Marriott Mena House Cairo.
☀️ Chinese Energy: A visit by Chinese officials to Kuwait may lead to China’s construction of a solar energy plant in the kingdom, the Arab Times Kuwait reports.
🚢 Port of Concern: Supply chain disruptions on the Red Sea slowed business activity in Dubai’s non-oil private sector economy in January, according to new data from the S&P Purchasing Managers’ Index.
🛫 Turkish Partner: EDGE, the Abu Dhabi-based defense conglomerate, signed a preliminary agreement to integrate its advanced payloads and sensors with Turkish Aerospace products.
🚌 Eco-Friendly Buses: Egypt is trying to bolster its motor vehicle industry, focusing on Nasr Automotive, a state-owned company that produces eco-friendly buses.
🕺 Rent-a-Suit: UAE startup Cloudset is launching a “dynamic ownership” program that lets customers rent its clothes and pay only for a set period before returning them to the store.
Closing Circuit
🔌 Battery Maker: UAE-based Titan Lithium signed a 50-year lease to build a $1.3 billion processing plant in Abu Dhabi’s Khalifa Industrial Area to produce lithium carbonate and lithium hydroxide for battery makers and electric vehicle manufacturers.
🛏️ Luxury Getaway: Red Sea Global secured $522 million in financing from Riyad Bank to advance the development of the Four Seasons Hotel on Saudi Arabia’s Shura Island.
🏖️ Beach Resort: Abu Dhabi is in talks with Egypt on a $22 billion deal to develop a series of beach resorts in Ras Al Hekma, a stretch of the Mediterranean coast north of Cairo.
🇮🇳 Indian Chips: Israel’s Tower Semiconductor has submitted a proposal to build an $8 billion chipmaking facility in India, the Indian Express reports.
💵 Payroll Platform: HiBob, an Israeli startup that helps manage HR functions, has acquired Pento, a London-based payroll platform, for an estimated $40 million in cash and shares.
💻 Fraud Alert: Australia’s Macquarie Group acquired $32 million worth of shares in BioCatch, an Israeli startup that develops software for preventing bank fraud and money laundering.
💰 Local Support: Jordan’s Innovative Start-ups and SMEs Fund is investing $5 million in MSA Capital’s venture fund, MSA Novo, to support local start-ups.
🇱🇧 First Funds: Lebanon-based venture capital firm Globivest announced the closing of its first fund for an undisclosed amount.
☕ Coffee Klatch: New York’s Apollo Global Management is in talks to buy a minority stake in the MENA franchise of Starbucks, which is operated by Kuwait’s AlShaya Group, Reuters reports.
🕰️ Unique Timepiece: A vintage yellow gold Rolex bearing a UAE emblem is for sale on The Keystone for $105,000.
Power Circuit
UAE President Sheikh Mohamed bin Zayed met with Turkish President Recep Tayyip Erdogan on the sidelines of the World Governments Summit in Dubai on Tuesday and with Egypt’s Prime Minister Mostafa Madbouly in Abu Dhabi on Sunday.
Ruler of Dubai Sheikh Mohammed bin Rashid had a meeting with Madbouly at the summit on Tuesday. He also met with Kristalina Georgieva, Managing Director of the International Monetary Fund, and with Klaus Schwab, Founder and Chairman of the World Economic Forum, on Sunday. On Monday, he met with World Bank President Ajay Banga.
Saudi Crown Prince Mohammed bin Salman received Dutch Prime Minister Mark Rutte at Al-Yamamah Palace in Riyadh on Tuesday.
Kazakhstan’s President Kassym-Jomart Tokayev is on a two-day visit to Qatar, where he was scheduled to meet the Emir, Sheikh Tamim bin Hamad Al Thani, and attend an investment roundtable with Qatari investors.
Sheikh Maktoum Bin Mohammed, the UAE Finance Minister and Deputy Ruler of Dubai, launched the new Buna Payment System for the Arab Regional Payments Clearing and Settlement Organization on Tuesday at the World Governments Summit.
Abu Dhabi Crown Prince Khaled bin Mohamed issued a resolution appointing Maj. Gen. Faris Khalaf Al Mazrouei as Chairman of the Abu Dhabi Heritage Authority.
On the Circuit
Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and COP28 President, attended the launch of the COP Presidencies Troika with Azerbaijan and Brazil, who will host COP29 and COP30, respectively, at Dubai Expo City on Tuesday.
Nassef Sawiris, Egypt’s richest person, is considering a complete transformation of the business that forms the core of his fortune, Dutch-listed chemicals group OCI, the Financial Times reports.
Jared Kushner, Founding Partner at Affinity Partners, an active private equity firm in the Middle East, called Saudi Crown Prince Mohammed bin Salman a “visionary leader” in an interview with Axios Business Editor Dan Primack at the Axios BFD conference in Miami on Tuesday.
Saudi Aramco CEO Amin Nasser told the International Petroleum Technology Conference in Dhahran, Saudi Arabia, on Monday that demand for oil will continue to be “robust” in 2024.
Airbus CEO Guillaume Faury weighed in on competitor Boeing’s recent safety issues with the 737 Max aircraft at the World Governments Summit, saying that as an industry, everyone “shares the objective of keeping aviation as the safest mode of transport today.”
Bank of Israel Governor Amir Yaron said in a statement that the country’s economy is strong despite the downgrade of its credit rating by Moody’s and should rebound quickly once the Gaza war is over.
Ziad Soukkarie, general manager at UM KSA, was named managing director of the OMD media agency’s Saudi Arabia office.
CNN Abu Dhabi Managing Editor Becky Anderson spoke to UAE Minister of State for Artificial Intelligence Omar Al Olama on the sidelines of the World Governments Summit on Tuesday where he elaborated on his onstage session with OpenAI CEO Sam Altman.
Fouzi Lekjaa, Morocco’s Minister Delegate for the Budget and President of the Royal Moroccan Football Federation, met with U.S. Ambassador Puneet Talwar for talks that focused on earthquake disaster relief and Morocco’s hosting of the 2030 World Cup.
Katerina Giannouka, CEO of Jumeirah Group, was the only woman to break into the top 10 of a power ranking by Arabian Business of “100 people you should know in Dubai.”
Circuit Culture
🏜️ Desert Icons: The art exhibition Desert X AlUla is underway in the mountainous desert region of Saudi Arabia that is under development to attract tourists. A collaboration between Desert X and The Royal Commission for AlUla, and an iteration of the art biennial that originated in California’s Coachella Valley, the event presents a site-specific exhibition where artworks respond to the environment and land, The National reports. The third biennial is organised under the theme In the Presence of Absence, featuring newly commissioned works by 17 artists from around the world. The event opened on Friday and runs until March 23. It is a highlight of AlUla Arts Festival.
🍽️ Best Bistro: Orfali Bros Bistro, the inventive Syrian restaurant in Dubai that was opened by three brothers in 2021, was ranked No. 1 on the annual list of the 50 Best Restaurants in the Middle East and North Africa. Twenty restaurants on the list are in Dubai, six each in Egypt and Israel, five in Jordan and three each in Lebanon, Morocco and Saudi Arabia.
🏀 NBA Partner: Emirates announced a partnership deal with the NBA in which the airline will sponsor a basketball tournament to be renamed the Emirates NBA Cup.
🎱 Pool Champions: Saudi Arabia signed a 10-year deal with Matchroom Sport to host the World Pool Championship and the Snooker Masters. This year, the pool event will take place June 3 to June 8 in Jeddah with total prize money of $600,000. The Snooker Masters will be held Aug. 31 to Sept. 7 in Riyadh with prize money totalling $2.5 million.
🎓 Arts Degrees: Saudi Arabia’s King Saud University and the Culture Ministry are establishing the kingdom’s first arts college, which will start by offering degrees in design, performing arts, and visual arts.
Photo of the Week
California-based Joby’s electric air taxi, slated for takeoff in the UAE by 2026, is on display at the World Governments Summit, in its third and final day in Dubai. (The Circuit)
Ahead on the Circuit
Feb. 11-17, Doha, Qatar: Qatar TotalEnergies Open 2024. Professional women’s tennis tournament now in its 22nd edition. International Tennis and Squash Complex.
Feb. 16-18, Munich, Germany: Munich Security Conference. Defense industry, foreign policy and national security leaders gather for annual summit. Hotel Bayerischer Hof.
Feb. 19-20, Riyadh, Saudi Arabia: Saudi Capital Markets Forum. A gathering of government ministers, banks and local publicly traded companies to discuss integrating emerging markets with established financial systems. King Abdullah Financial District.
Feb. 21-22, Dubai, UAE: Step Conference. The Dubai edition of the leading tech festival for emerging markets. Internet City.
Feb. 22-23, Miami Beach, FL: FII Priority Miami. A summit on disruptive technology and investment trends hosted by the Future Investment Initiative Institute. Faena Hotel Miami Beach.
Feb. 26-29, Doha, Qatar: Web Summit Qatar. A Middle East edition of the technology crowd mega-event, gathering investors, entrepreneurs and business leaders. Doha Exhibition and Convention Centre.
Feb. 28-29, Abu Dhabi, UAE: Investopia. A gathering of investors hosted by SALT and Investopia, an investment platform launched by the UAE Ministry of Economy and backed by Mubadala and the Department of Economic Development. St. Regis Saadiyat.
Feb. 29-March 2, Sakhir, Bahrain: Formula 1 Gulf Air Bahrain Grand Prix. Bahrain International Circuit.
March 1, Abu Dhabi, UAE: Abu Dhabi Family Office Summit. One of the largest meetings in the region for family office leaders and investors. Saadiyat Rotana.
March 4-7, Riyadh, Saudi Arabia: LEAP. A global technology conference for developers, startups, investors, C-suite and media. King Abdul Aziz International Conference Center.
March 5-6, Doha, Qatar: International LNG Forum. Gathering of industry leaders and key stakeholders to discuss the future of gas in a key export market. InterContinental Doha Beach.
March 7-9, Jeddah, Saudi Arabia: Formula 1 STC Saudi Arabian Grand Prix. The Jeddah Corniche Circuit.
