Robots ambled through the vast exhibition halls of the Dubai World Trade Centre today, capturing the attention of thousands of participants during Day 2 of the GITEX Global 2024 conference, The Circuit’s Omnia Al Desoukie reports.

Racing through the international crowd were late arrivals for panel discussions featuring some of the top luminaries in AI research, many delayed by the bumper-to-bumper traffic that annually accompanies the Middle East’s biggest tech conference.

Those who squeezed into today’s showcase session heard Peng Xiao, CEO of the UAE’s G42 artificial intelligence company, back from a trip to the U.S. after recently completing deals with Nvidia, Microsoft and Open AI.

“What I can tell you right now is that the relationship bilaterally, between the U.S. and the UAE cannot be stronger,” Xiao said. “Everything from defense to technology collaboration – we reached a new height.”

Calling attention to a new Climate Technology Center that he announced earlier with Nvidia CEO Jensen Huang, the G42 chief said the two companies are using advanced hardware and software capabilities “to unlock the mystery of weather forecasting and the prevention and handling of extreme weather,” adding, “We are right now working with the best and brightest.”

Among those visiting the conference during its opening day on Monday was Sheikh Mohammed bin Rashid, Ruler of Dubai and the UAE’s vice President Prime Minister, who pointed to a 40% increase in international participation at the event as an indication of Dubai’s global importance in AI. Among the pavilions at which he stopped were those of G42, Microsoft, IBM, Oracle, Etisalat, Huawei and H3C.

“We have a clear vision to advance the UAE’s leadership in the global digital and technology landscape, making it the world’s most future-ready nation,” Sheikh Mohammed said.

GITEX Global 2024 kicked off today with tens of thousands of investors, startup founders and geeks from around the world elbowing their way through the world’s biggest tech conference, Omnia Al Desoukie reports from the floor of the Dubai World Trade Centre.

While the event pulses all week with dealmaking, product launches and pounding hip-hop music inside the colossal exhibition halls, it has also snagged Dubai International Airport and virtually all major traffic arteries leading to the venue, with top hotels fully booked months ago. Some 1,200 investors and 1,800 startups from more than 100 countries are participating in GITEX, organizers said.

Opening the proceedings on the main stage this morning, UAE Minister of Economy Abdullah Bin Touq Al Marri presented the small Gulf state’s ambitions to become a superpower in the development of AI technology and a magnet for the world’s top tech talent.

“The UAE wants to shape the global dialogue on AI, creating policies that promote responsible usage while pushing the boundaries of innovation,” Al Marri said. “The idea is to bring policymakers and tech experts together to create an environment where innovation thrives.”

Among other government and corporate leaders scheduled to appear were Omar Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications; Peng Xiao, Group CEO of G42; Michael Spranger, President SONY AI; Isabell Gradert, Airbus Vice President of Central Research & Technology; Dr. Najwa Aaraj, CEO of the Technology Innovation Institute; and Dr. Mohamed Al-Kuwaiti, Head of the UAE Cybersecurity Council.

At the Expand North Star conference on Sunday, a GITEX spinoff focused on startups, Al Olama told the crowd of thousands at Dubai Harbour that putting money into the country’s early-stage companies will pay off for investors.

“We believe the future of the digital economy will be created in Dubai – in the UAE,” Al Olama said. “The UAE stands for building a business environment that is truly global.”

Lunate, the upstart $105 billion asset manager fueled by Abu Dhabi sovereign wealth, is mulling an investment in the fast-growing private credit market.

The firm, launched in January by Sheikh Tahnoon bin Zayed’s International Holding Co. may buy a minority stake in New York-based HPS Investment Partners, which itself is considering an IPO or sale, Bloomberg reports.

Lunate is evaluating an investment of $1 billion or more in HPS, according to the news agency, which says the company is also entertaining interest from BlackRock and private equity firm CVC Capital Partners.

The origins of Lunate trace back to two of Abu Dhabi’s most active holding companies, IHC and sovereign wealth fund ADQ.

It was in March 2023 that IHC announced plans to establish a multi-asset class investment manager, which later became Lunate, and bring on U.S. private equity firm General Atlantic as a strategic partner and investor.

While getting started in the world of Middle East business is largely about making personal connections, the inevitable question is: How?

What steps can investors, startup founders and entrepreneurs take to forge relationships and develop deals as they contemplate entering the MENA market? 

“Plugged In” debuts in the Daily Circuit today as a column that will regularly offer practical advice on approaching this dynamic and growing region – whether for the first time or through reigniting past conversations that were left by the wayside. 

On the heels of UAE President Sheikh Mohamed bin Zayed’s landmark visit to the White House last month, there is a growing worldwide focus on the GCC region to explore opportunities and create lasting ties. The fall is a particularly active season in the Gulf for both startup and broader investment conferences, which can be a useful and low-risk first foray into the Middle East market.

As the startup ecosystem continues to evolve, executives and investors can benefit from participating in these key industry events from October to the end of the year. They span from smaller get-togethers – like the Standard Chartered Women in Tech Demo Day with C3 on Oct. 10 that features 12 inspiring business founders – to massive conferences like GITEX, which welcomed over 180,000 attendees and 6,000 exhibitors in 2023.

GITEX (Oct. 14-8) is billed as the largest startup and investor connector events worldwide. It brings a diverse mix of personalities navigating the vast Dubai World Trade Centre, which can take 20 minutes to get from one end to the other.

Pre-planning is critical to leverage the full opportunity –  keeping logistics in mind is particularly important to meet as many people as possible within a day. The smaller workshops offer access to industry leaders from the region that provide practical insights for refining business models that have been successful in other markets. They will, of course, likely need to be tailored for GCC expansion. 

For those focused on global trends, the Future Investment Initiative (Oct. 29-31) – known as “Davos in the Desert,” – is a key event that attracted more than 7,000 participants last year. The forum at Riyadh’s plush Ritz-Carlton emphasizes economic diversification and investment strategies aligned with Saudi Arabia’s Vision 2030.

Engaging in discussions there can position participants as thought leaders and connecting with international investors may reveal new opportunities. FII has been a launchpad for significant investment, including the establishment of the Saudi Green Initiative, which aims to promote sustainability and climate-friendly technologies. In previous years, the conference attracted investments in technology startups such as e-commerce firm Noon.com and taxi-hailing app Careem, which have since grown into major players in the Middle East market.

Identifying sector-specific events with fewer attendees and more articulated outcomes can produce a more approachable first trip to the region. Healthcare entrepreneurs may find the World Innovation Summit for Health in Qatar (Nov.13-14) particularly relevant, as it addresses pressing global challenges in partnership with the World Health Organization. Startups in the healthtech space have opportunities to showcase their innovations, with past summits resulting in significant initiatives that support regional startups. Engaging with healthcare professionals and researchers can yield valuable insights and potential partnerships.

Anchoring the end of the year is the Abu Dhabi Grand Prix (Dec. 5-8), which is sandwiched between the Milken Institute’s Middle East and Africa Summit (Dec. 5-6) and Abu Dhabi Financial Week (Dec. 9-12). Come for the dealmaking and stick around for the Formula One festival, which includes nighttime concerts by Eminem, Muse and Maroon 5, while providing even more opportunities for casual networking at the F1 racetrack.

Brittany McDonough is a Boston native who has been working in the Gulf region since 2014. She is the former Head of Innovation with the Abu Dhabi Investment Office (ADIO) and is now advising organizations on navigating GCC market entry. 

Three years ago, the pandemic-delayed Expo 2020 drew virtually every country on the planet to set up a pavilion at Dubai’s sprawling fairgrounds.

Now Aldar Properties, Abu Dhabi’s largest real estate developer, is pouring half a billion dollars into the site and catering to the home crowd.

Known these days as Expo City and neighboring the newly expanded Dubai World Central airport, the location will soon sprout six towers filled with luxury apartments, corporate offices and specialty retailers, Aldar said in a statement on Wednesday.

The $476 million project, a joint venture with government-administered Expo City Dubai, will be built on a plot measuring 1.1 million square feet, and managed by Aldar through its completion.

The Expo 2020 site also hosted the COP28 climate conference last year.

Aldar is counting on the soaring demand for property in Dubai that has provided incentive for developers to reach beyond the city’s packed downtown area and led many residents to move to more affordable areas in the UAE.

Abu Dhabi, brimming with oil money and investment revenue, has become the city with the world’s largest accumulation of sovereign wealth.

Tallying up the combined assets of ADIA, Mubadala, ADQ and the Emirates Investment Authority, industry monitor Global SWF said Abu Dhabi has amassed $1.7 trillion, putting it ahead of Oslo’s $1.6 trillion, and funds in Beijing, Singapore and Hong Kong. Riyadh ranked No. 4 with $1.1 trillion in the Public Investment Fund.

Besides the sovereign funds, Global SWF notes Abu Dhabi’s growing prominence as a home for government-owned institutional investors, the world’s largest and most active deal makers. Among them are central banks, public pension funds and family offices linked to royal family members, the report said.

“All in all, we estimate Abu Dhabi’s public capital at $2.3 trillion and we project it to reach $3.4 trillion by 2030,” Global SWF said.

Saudi Arabia is taking concrete steps to accelerate construction of The Line, its planned trillion-dollar city of the future.

NEOM, which runs the project and surrounding development of the kingdom’s Red Sea coast, signed a partnership agreement with a Saudi construction company to build cement factories costing $187 million that will be used for the structure, which is planned to extend 110 miles across the desert.

The manufacturing facilities, which begin operations in November, will use carbon capture technology and a range of energy-saving innovations, NEOM CEO Nadhmi Al-Nasr told the Saudi Press Agency.

He said the deal illustrates “the critical role local partnerships play in delivering this transformational project efficiently and sustainably.”

Kuwait is under scrutiny amid concern that it’s being used by money launderers and terrorist organizations.

The Paris-based Financial Action Task Force issued a progress report today that both praised and scolded the Gulf state’s financial apparatus.

While Kuwait has adequate legal and supervisory framework to address money laundering and terrorism financing, it also has “serious shortcomings delivering effective outcomes,” the FATF said.

The UAE was removed from the group’s “gray list” in February after taking broad steps to crack down on money laundering.