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Quick Hits

money managers

Kuwait sovereign fund chief says he’s worried about private equity

taking flight

Abu Dhabi introduces Falcon Arabic to compete in AI race

Smart Power

Oman launches smart cities to boost net-zero, diversify economy

French basketballer Matthew Strazel, point guard for AS Monaco, is greeted by traditional Emirati dancers on arrival at the Hilton on Abu Dhabi’s Yas Island, where the Turkish Airlines EuroLeague Final Four will take place this weekend. (Luca Sgamellotti/Euroleague Basketball via Getty Images)

The Daily Circuit: Kuwait cautions on private equity + Acwa Power raises $1.9B

CIRCUIT Q&A

CruiseXplore builds Mideast business with mini-holidays to Gulf, Red Sea resorts

connecting the dots

Gulf leaders count takeaways from Trump trip at Qatar summit

DESERT FRUIT

Egypt’s Morpho invests in growing berries under Saudi sun

Mike Bloomberg, the Former Mayor of New York City, speaks at the Qatar Economic Forum in Doha on Tuesday. (Karim Jaafar / AFP via Getty Images)

The Daily Circuit: Qatar confab mulls Trump takeaways + MGX-Nvidia deal

healthcare hub

Mubadala Bio aims to build UAE’s influence in pharma industry

making it

UAE promotes manufacturing with $11B financing program

Yasir Al-Rumayyan, Governor of Saudi Arabia’s Public Investment Fund and Chairman of the FII Institute (left), meets with French President Emmanuel Macron following the FII Priority Europe Summit in the Albanian capital of Tirana on Saturday. (Ludovic Marin / AFP via Getty Images)

The Daily Circuit: UAE to finance new manufacturers + Mubadala Bio’s debut

new tracks

Etihad to launch passenger train service in 2026 traversing UAE

GULF TOUR

Trump heads home after sewing up $200 billion in UAE deals

U.S. President Donald Trump and UAE President Sheikh Mohamed bin Zayed are greeted by Children waving Emirati and U.S. flags on arrival at Qasr Al-Watan palace in Abu Dhabi on Thursday evening. (Brendan Smialowski/AFP via Getty Images)

The Daily Circuit: Trump flies home from UAE + ADNOC seeks EU nod

Gulf tour

UAE welcomes Trump amid anticipation of AI chip deals with U.S.

BRAIN CHIPS

Musk’s Neuralink to conduct trials at UAE’s Cleveland Clinic

The Daily Circuit: U.S. UAE chip deals expected + Qatar-Boeing pact

gulf journey

Trump moves on to Qatar after bounty of deals in Saudi Arabia

Robo Kingdom

Musk sees Saudi future with robots and self-driving taxis

U.S. President Donald Trump and Saudi Crown Prince Mohammed bin Salman pose for a photo with business leaders including Nvidia CEO Jensen Huang and Alphabet chief investment officer Ruth Porat at the King Abdul Aziz International Conference Center while attending a Saudi-U.S. business investment forum in Riyadh on Tuesday. (Win McNamee/Getty Images)

The Daily Circuit: Trump lands in Qatar after flurry of Saudi deals

Quick Hits

BED & BREAKFAST

A luxury Golan Heights hotel is preserving history, layer by layer

Sometimes it's hard to imagine, amid such serenity, that this was the scene of brutal conflict and a geopolitical agreement that shaped the Middle East

Aya Ben Ezri

Aya Ben Ezri

Pereh Mountain Resort in the Golan Heights

By
Ruth Marks Eglash
December 4, 2022
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GOLAN HEIGHTS – It’s not very often in Israel that you wake up to the sight of more than a dozen gleaming Ferraris, but then again, there aren’t too many places far enough from the country’s bustling center to warrant a serious road trip for the Italian power rides – or exclusive enough to draw in the owners of such luxury.

That’s why, on a recent weekday morning, the Ferrari Owners Club of Israel roared onto the grounds of the Pereh Hotel – the year-and-a-half-old luxury resort that sits quietly tucked away on the majestic Golan Heights – and parked their colorful cars for a rich and pampering breakfast in the hotel’s sweet-tasting Rouge restaurant. 

With sweeping views of the Galilee, the Pereh Mountain Resort sits on an expansive plot of Israel’s most northern plateau. Far from the country’s obvious tourist spots in Jerusalem or Tel Aviv, Pereh, which literally means wild in Hebrew, captures the raw and thorny beauty of the Golan Heights, while at the same time offering a tranquility that puts visitors immediately at one with nature.

It also captures a unique slice of history for Israel in particular and the broader region in general, with the hotel’s owner and an array of local designers working hard to preserve the past, while at the same time carefully adding a new layer of comfort and opulence.

In fact, sometimes it is hard to imagine, among the serenity and luxury, that this was once the scene of brutal conflict, wars and a geopolitical, colonial agreement that ultimately shaped the current Middle East. 

Pereh stands along the old Haifa-Damascus Road at the site of what is known as the Upper or French Customs House. It was here in 1916 that the British and French diplomats, Mark Sykes and François Georges-Picot, signed a secret treaty at the end of World War I carving up the former Ottoman Empire to create the borders of the countries we know today: Lebanon, Syria, Iraq and what was British Mandated Palestine, now Jordan, Israel and the West Bank.

At the heart of the sprawling property, inside a ragged building that remains largely untouched, is a rudimentary museum paying homage to this game-changing agreement and to the creation of the hotel that now sits here. 

An antique map with the demarcation lines and the original colonial contract hang without commentary high on scorched and peeling walls alongside black-and-white portraits of Sykes and Picot, as well as an ominous photograph of the handshake that essentially sealed the fate of the entire Middle East.

Nearby is a color photograph of Leo Glaser, Pereh’s founder and owner. A defense and security consultant, Glaser apparently became enchanted with the Golan Heights as a teenager in his native Buenos Aires after hearing the news that the notorious Israeli spy Eli Cohen had been hanged in Damascus, Syria. Cohen – who succeeded in infiltrating to the highest levels of the Syrian military before his execution in 1965 – quickly became Glaser’s hero and the impetus for his subsequent aliyah, and later a long military and secret service career.

It was also what pushed Glaser to purchase this parcel of land in 2014. According to legend, Cohen had succeeded in convincing the Syrian army to plant eucalyptus trees at army bases across the Golan, which was then in Syrian hands; he said it would keep the soldiers shielded from the sun. However, it is believed that knowing the location of these trees is what assisted the Israel Defense Forces in identifying Syrian military targets, allowing it to capture the area during the 1967 Six-Day war. 

Israel formally annexed the Golan Heights in 1981, a move still not accepted by most of the world, although the U.S., under former President Donald Trump, recognized Israel’s sovereignty there in a contentious 2019 declaration. 

A cluster of Cohen’s eucalyptus trees, as well as several abandoned Syrian army bunkers beneath them, now stand on the horizon not far from the young grapefruit, pomelo and lemon trees in Pereh’s newly planted garden. Below their swaying branches is a small plaque that stands as a tribute to Cohen, whose remains are still said to be buried somewhere in Damascus.

“It was Cohen’s story that prompted Glaser to make aliyah and eventually buy this land,” Pereh’s general manager, Neri Eldar, tells The Circuit as we tour the hotel and the grounds.

Eldar explained that Glaser’s rough plan to turn it into a hotel was slowed by the process of clearing and cleaning up the abandoned and crumbling structures, removing leftover landmines and navigating the snake-filled, booby-trapped bunkers. It took Glaser nine years to restore the Bauhaus buildings that still stand here, remove the war debris and reimagine the wild, often hostile Golan landscape into a luxury resort.

With the help of investors, he finally opened the doors to Pereh in June 2021.

“The vibe here is very much connected to the natural surroundings,” said Eldar, describing how the hotel aims to mix history, nature and tranquility, with luxury and exclusivity. 

“It’s an homage to nature,” she said. 

A short stay at Pereh is a uniquely pleasurable experience. From the moment of arrival at the grand metal gates to the well-shaded and welcoming courtyard, replete with a fire pit and seating area, the resort is refreshing and inspiring.

Two of the original French buildings have been finely restored to contain the more exclusive rooftop studios and garden suites. Two new constructions with an additional 22 rooms – a mix of garden and balcony accommodations – surround a tranquil infinity pool and open-air whirlpool.

Each room combines locally found, natural materials – think recycled wood, iron and stone – in its design. Discarded Syrian army beds have been reimagined into lounging chairs, the moody basalt rock found scattered across the Golan has been reused for flooring, walling and other detailed decoration. Also used to decorate the hotel’s walls inside and out are local and international artwork, many incorporating organic materials and themes. 

Rooms at the hotel start at $650 per night for two persons, bed and breakfast; and from $890 on weekends and holidays.

In a low, stand-alone building that was once a horse stable sits the cozy reception area, which also features a well-stocked bar and, below, a wine cellar offering expertly presented tastings of boutique wines from Israeli vineyards. 

Another of the newer buildings houses the spa, which offers an array of treatments by healers from the surrounding Druze villages, and the Rouge restaurant, which takes advantage of the local farms and their produce to provide a classy and delicious array of meals, including a modest but mouthwatering breakfast.

While it is the attention to such detail that has made Pereh now one of Israel’s most sought-after resorts – it was recently featured in the premier travel magazine Conde Nast, which touted the Galilee as one of the best destinations for 2023 – for many the resort’s intrigue is its wildly beautiful and remote location.

“In a country so condensed like Israel, there is a sense of space here,” said Eldar. “This is a place where you can really breathe.”

The writer was a guest of the Pereh Mountain Resort.

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PITCH PERFECT

Qatar World Cup draws thousands of Israelis, direct flights or not

With talks down to the wire between countries that don’t have diplomatic ties, Israelis are making their own arrangements to bridge the gulf

ADRIAN DENNIS/AFP via Getty Images

ADRIAN DENNIS/AFP via Getty Images

An image of Uruguay's Luis Suarez is seen at dusk on a building ahead of the Qatar 2022 soccer World Cup

November 13, 2022
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Israel has no diplomatic ties with Qatar, and its national soccer team didn’t qualify for the 2022 World Cup. That won’t stop thousands of Israel fans from pouring into the oil-rich Gulf state this week to join the frenzied crowds at the most-watched sporting event on earth.

It wasn’t until 10 days before the opening match between Qatar and Ecuador, set for Nov. 20, that world soccer’s ruling body, known as FIFA, worked out a plan for direct flights between Israel and Qatar that satisfied political and security leaders in both countries. By then, most Israelis with tickets to the nearly monthlong tournament had booked flights with layovers in third countries.

While Israelis are barred by statute from entry into Qatar, the country agreed to honor Israeli passports as a condition for the highly sought rights to host the World Cup. Still, many Israelis, generally known for their boisterous character, say they’ll try to keep things low-key at the games.

“The vibe is to go and enjoy the football and not try to stand out or anything,” Elon Grubman, a 32-year-old Israeli born in Brazil, told The Circuit.

When FIFA finally announced the agreement for direct charter flights on Nov. 10, Israeli Prime Minister Yair Lapid hailed the move as “great news for football fans and for all Israelis,” adding that it was the result of “hard work over the course of many months.” Israel will also be allowed to open a temporary consular office to assist fans with lost passports and medical emergencies.

In expressing his “delight” at solving the visa problem, FIFA President Gianni Infantino also announced that the deal meant “Israelis and Palestinians will be able to fly together and enjoy football together.” Given the tight security protocols that Israel has practiced for decades in restricting Palestinian travelers through Ben Gurion International Airport, it’s unclear whether such joint flights will materialize. Like the Israelis, though, most Palestinians didn’t wait to book their flights.

Walid Jouda, a resident of the Gaza Strip, was standing in line yesterday afternoon at the heavily guarded southern border of the coastal enclave, waiting for permission to enter Egypt and fly to Doha through Cairo.

“I’m a football addict so seeing the matches live in Qatar is going to be amazing,” said Jouda, 35, an information technology administrator for a United Nations agency in Gaza City,  who is rooting for Argentina. “Maybe one day Palestine will qualify for the World Cup, but that’s still a dream.”

Though Israel and Qatar have never established full diplomatic ties, they have worked together publicly for more than two decades. In the late 1990s, Israel operated a trade liaison office in Doha until tensions between Israelis and Palestinians led Qatar to shut it down. Israel allows Qatari officials to travel through its territory and enter the Gaza Strip, where they have for years mediated between Israel and Hamas, the militant Islamist group that governs the territory.

Tickets to the matches and accommodation in Qatar or neighboring countries don’t come cheap. Matan Peled, a manager at Israel’s ISSTA travel agency, said three-night packages that include two soccer matches were selling for $2,000 to $3,500 a person, depending on the hotel. One advantage to Qatar’s small size, he said, is the close proximity of all the new stadiums that were built for the World Cup.

“It’s like having eight stadiums in Tel Aviv,” Peled told The Circuit. “All the teams are in the same area, all the fan zones are close to one another.”

With no Israeli team in the tournament, 42-year-old Ronen Rotem said he doesn’t care much who wins. “I’ve never been to a football match in my life,” he said. “I’m only going because it’s a unique opportunity to visit Qatar.”

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CLIMATE RESILIENCE

Mideast mulls alliances at U.N. conference to avert environmental catastrophe

Israeli startup group reaches out to UAE, Bahrain, Morocco to share technology addressing desert agriculture, desalination and food security

AHMAD GHARABLI/AFP via Getty Images

AHMAD GHARABLI/AFP via Getty Images

Israel's President Isaac Herzog delivers a speech at the leaders summit of the COP27 climate conference at the Sharm el-Sheikh International Convention Centre

By
Jonathan H. Ferziger
November 13, 2022
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From lab-cultured milk to hydrogen-based energy generation, Israelis sought to share expertise in desert agriculture, desalination and food security with new Arab partners at the United Nations climate change summit and establish alliances across the Middle East and North Africa.

The campaign was led by Israeli President Isaac Herzog, who said cooperation would lead to “regional climate resilience,” in a Nov. 7 address to the COP27 conference in Sharm el-Sheikh, Egypt. A nonprofit industry group, Start-Up Nation Central, sought to foster connections with Bahrain, the United Arab Emirates, Morocco and other countries that have signed peace agreements or normalized relations with Israel through an initiative it dubbed the MENA Alliance for Climate Innovation.

“We want to create a business-focused framework with partners from the region to connect startups with investors and corporations, and to work together to develop solutions addressing shared climate challenges,” Yariv Becher, Start-Up Nation Central’s vice president for innovation diplomacy, told The Circuit from Sharm el-Sheikh. “We came to COP27 to move things forward.”

Israel, which has the third-largest number of startups per capita in the world, has developed an international reputation for the quality of its research in desalination and desert agriculture. That has created natural linkages with its new allies in the world’s driest region, which extends from the Arabian desert to the Sahara. Israeli companies have developed partnerships in the UAE and Bahrain that enable them to do business in Saudi Arabia and other countries that don’t have formal diplomatic ties with the Jewish state.

Warning that the region is “on the brink of catastrophe,” Herzog laid out a framework for regional cooperation in addressing climate challenges.

“Here in Sharm el-Sheikh, I wish to reiterate the State of Israel’s solid commitments to achieving net zero carbon emissions and to transitioning from fossil fuels to renewable energy by 2050,” the president said. “But Israel is prepared to assume far greater responsibility,” he added. “Israel is prepared to lead the effort towards regional climate resilience – I intend to spearhead the development of what I term a Renewable Middle East, a regional ecosystem of sustainable peace.”

In the Israeli pavilion at the conference, 10 startups promoted their technologies: Aleph Farms, which produces meat from animal cells; Beewise, which develops robot-controlled beehives; GenCell, which generates energy from hydrogen and ammonia; Groundwork BioAg, which produces inoculants for commercial agriculture; H2Pro, which produces hydrogen-based energy; Home BioGas, which reduces cooking gas from household waste; Remilk, which produces laboratory-cultured milk; Tomorrow.io, which develops weather forecasting technology; UBQ Materials, which turns household waste into a thermoplastic product; and Wiliot, which reduces greenhouse gas emissions from production lines.

Underlining the region’s concern about climate change, next year’s conference, COP28, will be held in the United Arab Emirates, whose president, Sheikh Mohamed bin Zayed Al Nahyan, pledged the country’s dedication to renewable energy even as it stands as the world’s seventh-largest oil producer.

“Our world is facing complex challenges, most important of which is climate change, which now affects the world’s stability and security – including food security… We have only one planet, and with that in mind, it is imperative that we partner and work together in a spirit of determination and optimism to address this common challenge through climate action,” he said.

Also at the conference, cabinet ministers from Israel, Jordan and the UAE signed a memorandum of understanding that lays the groundwork for creating solar energy fields in Jordan. The three-way agreement will enable Jordan to sell solar power from the solar field built by an Emirati firm, while Israel will sell desalinated water to Jordan from a site that will be built on the Mediterranean coast. The MOU was signed on Nov. 8 by Esawi Freij, Israel’s outgoing minister for regional cooperation; Mohammad Al Najjar, Jordan’s minister of water and irrigation; and the UAE’s Climate Change and Environment Minister Mariam Al Mheiri.

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going green

Israeli entrepreneur looks to sell electric trucks in Saudi Arabia

Asher Bennett, brother of the former prime minister, joins growing stream of Israeli entrepreneurs seeking business in the kingdom that still resists diplomatic ties

Tevva Twitter feed

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Tevva Motors CEO Asher Bennett in 2018

By
Jonathan H. Ferziger
October 27, 2022
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RIYADH, Saudi Arabia — It sounds counterintuitive, even like the start of a gag: an Israeli tech entrepreneur comes to an Arab desert kingdom that is the largest oil producer in the Middle East, and whose entire economy runs on crude, and he’s hawking zero-emission e-trucks.

But Asher Bennett, the brother of former Israeli Prime Minister Naftali Bennett and the founder of the London-based e-truck maker Tevva Motors, may be looking down the road clear-eyed and he may just have the right vehicle, and the right technology, at the right time. Even Saudi Arabia is setting new environmental standards to reduce reliance on fossil fuels.

“There’s a lot of interest in the Gulf for our technologies, so I’m here from time to time,” Bennett told The Circuit on the second day of the Future Investment Initiative conference, often called “Davos in the Desert” because it’s patterned after the annual World Economic Forum event in Davos, Switzerland. “I was invited here last year and it was an eye-opener,” he said in an interview at the King Abdulaziz Convention Center, the site of the conference here in the Saudi capital.

Israeli companies are increasingly being allowed to operate in the Saudi kingdom despite the fact that it has not joined the 2020 Abraham Accords, which normalized diplomatic relations with the United Arab Emirates, Bahrain, Morocco and Sudan. Like Bennett, who has American parents, many Israelis are dual citizens and face few restrictions on entering the country. In other cases, Saudi officials have granted special visas to admit Israelis, particularly tech executives, without a second nationality.

At least four Israelis were invited to speak at this week’s conference, including Samer Haj Yehia, chairman of Bank Leumi and an Arab citizen of Israel; and U.S.-born Jonathan Medved, founder and CEO of the venture capital investing platform OurCrowd.

The new unofficial policy toward Israelis reflects the drive by Crown Prince Mohammed bin Salman, recently appointed prime minister, to overhaul the country’s economy and wean it off dependence on oil. Known as MBS, the prince has in the past expressed admiration for Israel’s tech industry and said he sees Israel as a “potential ally.” Still, the country adheres to the Arab League position of not establishing official ties with Israel until its conflict with the Palestinians is resolved.

Bennett, 53, said he developed an interest in e-vehicles through his service as a naval officer on an Israeli submarine, which was propelled by batteries attached to a large electric motor. Unlike other successful Israeli companies such as Mobileye, the maker of sophisticated navigation systems and software for self-driving cars that was bought by Intel for $15 billion, Tevva builds vehicles, he said.

“I’m the Israeli tech entrepreneur who figured out the one business step that we’re not good at in Israel and that’s automotive, the hardware side,” he said. “We don’t build cars in Israel, we don’t teach the engineering side in Israel, so I moved to the U.K.”

Tevva, which developed a dual-motor system that includes a hydrogen fuel cell to extend the vehicle’s range, produced a small fleet of trucks for the UPS package delivery service in London. “The average car drives one to two hours a day where the average truck goes out for eight, nine or 10 hours a day,” Bennett said. “Batteries alone don’t do it, so we mix batteries with hydrogen fuel cells. We can go much farther but also make it more economical.”

Tevva, which means nature in Hebrew, has raised more than $90 million in investment, including a $57 million funding round that closed in November 2021. Bennett declined to disclose the total amount. He said investors come from Europe, the U.S., India and the Gulf.

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CIRCUIT TRAVEL

A relaxing retreat with a slice of history on Mount Carmel

The Elma Hotel’s origins have roots in an early law that mandated time off for Israeli workers, creating one of the country's first socialist spas

Elma Arts Complex and Hotel is perched at the top of Mount Carmel

By
Ruth Marks Eglash
September 18, 2022
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ZICHRON YAAKOV, Israel – Guests arriving at the Elma Arts Complex and Luxury Hotel in this hilltop town nestled into the side of Mount Carmel will likely be struck by the light-filled lobby or the striking array of artwork that fills every wall and every corner. They’ll also be taken by the sweeping views of Israel’s majestic coastline, its sharp blue skies dotted with graceful paragliders, its lush green edged with pink bougainvillea.

Yet it is the story behind the building and of how it became one of Israel’s most exquisite lodgings that is perhaps most enthralling.

And it is all those elements pulled together that make Elma such a special place.

While every building might have its own unique back story, few have a history like the Elma. Tucked up high on the side of Mount Carmel, gazing over the fisheries of Kibbutz Maayan Tzvi and the picturesque stretch of beach known as Dor, the stacked whitewashed structure not only tells the story of Israel’s socialist origins, it also spotlights the inevitable clash as the country began embracing its capitalist present.

Add to that mix an indomitable scion of a notable Zionist family and a family of prize-winning Israeli architects, and Elma captures not only hearts but also minds of hotel-goers even during the shortest of stays.

Its story begins in 1951 with Israel’s passing of a national law requiring that all workers receive a weeklong vacation once a year. Based on that law, the Histadrut Labor Federation, the General Federation of Workers in Israel, opened wellness retreats around the country affording its members a short respite from work and daily life. One of those places was the Mivtachim Sanitarium, which was dedicated in 1968 and today forms the main body of the Elma hotel.  

Designed by renowned Israeli architect Yaakov Rechter, who received the Israel Prize in architecture in 1972 for the flowing design that blends with the rolling mountaintop, the complex reflects the 1960s Brutalist style, as well as many of his other iconic structures in Israel – the Tel Aviv Museum of Art, the Cameri Theater and the Atarim Square.

Throughout the 1970s and through the 1980s, the complex housed workers for short breaks, hosting some of the country’s most iconic leaders such as former Prime Ministers David Ben-Gurion and Golda Meir. By the mid-’80s, however, Israelis had begun to seek family-style vacations and preferred resorts in more exotic places such as Eilat or Tiberias. The complex was frequently used as a convention center for large company events during the 1990s, until it was shuttered completely in the early 2000s.

In 2004, Lily Elstein, a then 75-year-old patron of Israeli arts and culture who hails from one of the country’s founding families, outbid and outmaneuvered fierce real estate developers vying for one of the country’s most picturesque spots to replace the historic compound with a luxury residential neighborhood. Incredibly, the Mivtachim Sanitarium, which had stood as an icon of Israel’s socialist days on the side of Mount Carmel, was not listed as a historical building or protected by the state.  

Determined to see the complex preserved in all its glory, Elstein, whose late husband Moshe Elstein (grandson of Yoel Moshe Solomon) founded Teva Pharmaceuticals, hired Rechter’s son Amnon Rechter, and hotel architect Rani Ziss to ensure the building was renovated to its original grandeur.

The upgrade took more than 10 years to complete, with the architects working to preserve the original design, including the floors and airy interior, while adding modern touches such as high-tech infrastructure, creating larger rooms and building a new, more accessible, wing. The team also replaced the old entertainment hall – where patrons sent by the worker’s union enjoyed watching movies – with a state-of-the-art acoustic theater replete with a 1,414-tube organ and two grand pianos.

When the new Elma hotel finally opened in 2015, Elstein, now 91, relocated to the site, bringing her personal art collection, including specially commissioned works, to the hotel.

The bright, sun-filled lobby that first greets visitors is dominated by a huge marble sculpture depicting a man and a woman pushing a rock. Created by Israeli sculptor Sigalit Landau, one of Elstein’s patrons, the artwork is a rendering of Sisyphus, the figure from Greek mythology who cheated death twice but was eventually cursed with the eternal punishment of pushing a boulder up a hill. 

More of Landau’s work, as well as installations by multiple other artists, create a vibrant art exhibition that heightens the senses and inspires. Inside, the hallways leading to the modern and well-designed rooms are filled with engaging abstract paintings and photography. Outside, the extensive gardens and terraces are also dotted with sculptures and offer glorious panoramic views of the coastal plain.

The original outdoor swimming pool has been refurbished and an adjacent café offers a range of cocktails, foods and other beverages. Beside it is a newly built indoor pool and spa facility with a variety of pampering and wellness services on offer.

And just a word about the food: Breakfast is included and, like with many other aspects of this hotel, is a carefully thought-out affair going above and beyond the standard Israeli hotel buffet – extensive salads line the counter and nearby chef stations offer cooked dishes. The kosher kitchen also caters dinner options for an additional price.

While it is the modern touches that make a stay at Elma both comfortable and luxurious, it is the unique history still lingering in the air that makes it a special experience. 

The writer was a guest of the Elma Arts Complex and Luxury Hotel. 

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Weekly Circuit

Renewed Gaza conflict underlines regional risk + Ukraine deal averts MENA grain crisis

Mohamed Abdel Hamid/Anadolu Agency via Getty Images

An Egyptian worker unloads wheat carried by pickup trucks at a silo in the city of Benha in Egypt's Qalyubia province.

By
Jonathan H. Ferziger
August 8, 2022
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👋 Good Monday morning in the Middle East!

The latest salvo in the Israeli-Palestinian conflict appears to be quieting this morning in the Gaza Strip, but the flare-up is yet another reminder for investors about the region’s inherent risks. Amid nearly 1,000 rockets fired at Israel by the Iran-backed Islamic Jihad group, scores of Israeli air strikes against the overcrowded coastal territory and more than 40 Palestinians killed, nations around the world expressed hope for curtailing the violence. The two sides agreed to a cease-fire just before midnight on Sunday.

Food Insecurity: While tensions simmer in Gaza and Israel, a broader crisis affecting economies across the MENA region — especially Egypt and northern Africa — is the issue of food insecurity that worsened with Russia’s invasion of Ukraine. While some relief arrived last week with the departure of grain-filled ships from Odesa, The Circuit reports that lack of dependable food supplies presents an enduring threat of hunger and political instability on the continent.

Peace Park: Relations between Jordan and Israel may be chilly, but the two countries are showing modest benefits from their 28-year peace treaty, including a new bridge across the Jordan River and revived efforts to develop the Jordan Gateway Industrial Park.

Snow in Saudi: Does the notion of skiing in Saudi Arabia sound crazy?Not only is the desert kingdom building an outdoor ski resort but it’s bidding to be the home of the 2029 Asian Games. Details below in Circuit Culture.

Welcome to The Weekly Circuit, where we cover the Middle East through a business and cultural lens. Read on for the stories, deals and players at the top of the news. Please send comments and story tips to [email protected]. 

FOOD INSECURITY

Ukraine export deal averts grain crisis threatening Egypt and neighboring states across North Africa

As ships loaded with wheat and corn finally departed from the Black Sea port of Odesa last week, it appeared the world had dodged yet another humanitarian crisis in North Africa. Whether the grain deal arranged after weeks of complex negotiations involving Russia, Ukraine and Turkey will hold remains to be seen. What’s clear, though, is the role Ukraine and Russia have played through their exports in preventing civil disruption in capitals from Cairo to Tripoli, Larry Luxner reports for The Circuit.

Food Shortages: “Egypt has probably been affected directly by this war in Ukraine more than any country in the region,” Motaz Zahran, Egypt’s ambassador to the United States, said in an interview, pointing to food shortages that shook past governments. “We consider ourselves among the victims.”  The two warring countries have until now supplied 80% of Egypt’s wheat imports — 50% from Russia and 30% from Ukraine — as well as 40% of its tourist traffic. The fighting brought both to a halt, trapping some 20 million tons of grain inside Ukraine, with virtually no room to store it all.

Gulf Watching: Middle East risk manager Ghanem Nuseibeh said the Gulf states — particularly Saudi Arabia, the UAE and Qatar — will do whatever they can to help Egypt, such as financing grain imports, because they fear a repeat of the popular insurrections from 2010 known as the Arab Spring that spread through the region and were touched off, in part, by food shortages and rising prices. “Egypt’s stability is paramount to the Gulf and the rest of the region,” Nuseibeh, founder of London-based Cornerstone Global Associates, told The Circuit.

Getting Worse: David Beasley, executive director of the United Nations World Food Program, said that even before the Russia-Ukraine conflict, the situation in Africa was dire. Then came Ukraine — “a nation that grows enough food to feed 400 million people — from the breadbasket of the world to now the longest bread lines of the world,” he said at a July 19 forum with the Council on Foreign Relations. “It’s going to get much worse,” warned Beasley, whose agency, before the war, typically sourced half the wheat, barley, corn and other grains purchased for distribution worldwide from Ukraine.

Read the full story here.

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WARMING TIES

Three decades on, Israel-Jordan border project revives peace dividend prospects

Nearly three decades after signing a peace treaty, Israel and Jordan took a tiny step forward toward warming ties this week with the announcement by Israeli Prime Minister Yair Lapid that his government would accelerate a long-neglected project to build a joint Israeli-Jordanian industrial zone straddling the banks of the Jordan River, The Circuit’s Ruth Marks Eglash reports. 

Tension remains: Touted as a “breakthrough” and a step toward “civil peace,” the Jordan Gateway plan fits snugly within the broader process of normalization taking place between Israel and other Middle Eastern countries. However, while both Israel and Jordan stand to gain economically from this shared venture, lingering tensions between the countries, including anti-Israel sentiment among many Jordanians and Israeli bureaucracy tied up with ongoing electoral chaos, will likely mean progress is slow, analysts and those working on the project say. 

Important step: “I’m hesitant to say this signifies a normalizing of relations between Israelis and Jordanians,” Oded Eran, Israel’s former ambassador to Jordan, told The Circuit. “However, if this project does finally come to a conclusion, it will be an important step, psychologically, because it has become a lingering symbol of the failure of the relations between Israel and Jordan,” added Eran, now a senior fellow at the Institute for National Security Studies in Tel Aviv.

Positive dynamic: Ksenia Svetlova, a senior non-resident fellow at the Atlantic Council, a Washington, D.C.-based think tank, and the Israel Middle East program director for Mitvim, an Israeli think tank, drew a parallel between the new momentum on the industrial zone and the Abraham Accords, saying that the Accords might be playing a role in renewing ties and reviving the joint economic plan. “The generally optimistic and positive dynamics of the Abraham Accords have had an impact on Israel’s veteran normalization partners, Egypt and Jordan,” she maintained. “There have been more developments in the past two years than there were in the previous 10 years with both these countries, so I think that generally, there was more inspiration in promoting important economic projects between Israel and Arab countries in the region.”

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Circuit Chatter

Investment Watchdog: Saudi Arabia established a new government marketing authority to help raise and oversee some $3.2 billion of investment the kingdom hopes to attract through 2030.

Scouting Startups: Seed Group, which is partly owned by Dubai’s royal family, appointed Tech It Forward as its country manager to scout for investments in Israeli startups.

Dining Out: Abu Dhabi’s Adia sovereign wealth fund will invest in a series of stylish new restaurants as primary partner in the €500 million McWin Restaurant Fund.

Egypt Focus: Saudi Arabia’s Public Investment Fund launched the Saudi Egyptian Investment company, which will focus on a range of industries including infrastructure, real estate, health care and agriculture.

Tissue Transplants: Renewal Bio, an Israeli startup, used stem cells from mice to demonstrate its technology that potentially can create embryo-stage versions of human beings and harvest the tissue for use in transplants.

Postcard from Muscat: Oman has attracted $4.4 billion in tourism investments as it seeks to diversify its economy from dependence on oil production.

Closing Circuit

Realm of the Sensors: Israel’s Innoviz Technologies landed a $4 billion contract to provide Volkswagen with millions of lidar sensors used in making self-driving cars.

Well-Furnished: Egypt’s Homzmart raised $23 million for its home furnishings e-commerce platform with participation by Saudi venture capital fund STV.

Gates-Funded: Israeli biotech company Eleven Therapeutics raised $22 million in a seed round that included the Bill & Melinda Gates Foundation.

Sky High: Saudi Arabia gave permission for more airlines to overfly its territory en route to Israel, including Cathay Pacific and Air Seychelles.

Lemonade Squeeze: Israel’s Lemonade will pay $145 million for U.S. insurer Metromile, or about 70% less than originally agreed upon, because of the decline in Metromile’s shares since the acquisition was announced in November.

Looking Up: Israel’s Kibbutz Shamir sold its interest in lensmaker Shamir Optical to French-based EssilorLuxottica for a sum estimated at hundreds of millions of dollars.

Bio-banking: Abu Dhabi’s G42 Healthcare will work with Amazon Web Services on a database for research in genomics, bio-banking of body tissue and protein study.

On the Circuit

Kuwait’s Sheikh Ahmed Nawaf Al Sabah, son of the emir, took the oath of office as prime minister after being appointed in July.

Moshe Barkat said he will resign in October as head of Israel’s Capital Market, Insurance and Savings Authority, which supervises some $600 billion managed by institutional investors.

Noga Knaz was appointed by Prytek Holdings as chief executive officer of its corporate venture capital business. She was previously deputy chairperson of Rosario Capital. Prytek has offices in Tel Aviv, Singapore, Chicago and London.

Ahead on the Circuit

Aug. 11-16, UAE: NFT World Investment Expo. International gathering of investors to discuss future trends in the market of non-fungible tokens. Dubai Chamber of Commerce and Industry, Residential Building.

Sept. 5-6, Israel: Cleantech, an international conference bringing together business executives in water technologies, renewable energy and recycling. Jerusalem International Convention Center.

Oct. 23-27, Israel: ECCV 2022. European Conference on Computer Vision holds the biennial event in Israel, gathering companies involved in computer vision and machine learning. Expo Tel Aviv.

Circuit Culture

Ski Saudi: Saudi Arabia will bid to host the 2029 Asian Winter Games with plans to build the Gulf’s only outdoor ski resort in the northwestern mountains near Tabuk. With massive investment in snowmaking equipment, the Trojena winter resort is part of Saudi Arabia’s trillion-dollar Neom megacity project on the shores of the Red Sea. The Saudi bid includes plans to build facilities for competition in sports including Alpine and cross-country skiing, ice hockey and figure skating.

Hebrew Tunes: Global music companies are taking notice of Israeli bands, according to Variety, even though the country’s estimated $55 million market is comparatively tiny. UMG opened a Tel Aviv office housing a recorded music division and an arm of Universal Music Publishing Group. The Hollywood newspaper said Universal Music Israel’s A&R team has hit the ground running, signing local talents like Michael Ben David and Ozel. Warner Music has opened an office in Israel, announcing in May that Mariah Mochiach would lead a Tel Aviv affiliate as general manager.

Pitching Indies: For those who aren’t quite ready for the major record labels, there’s Israel’s IndieFlow, a one-stop shop for artists to build and promote their careers with the help of a software that organizes everything needed to grow a musician’s brand, as Jewish Insider’s Sophie Cohen reports.


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Weekly Circuit

Israeli women press for greater tech influence + Bahrain courts startups in Tel Aviv

Marc Israel Sellem

Israeli executives at Women's Empowerment Summit in Tel Aviv bemoaned country's lack of gender equality

By
Jonathan H. Ferziger
August 1, 2022
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👋 Good Monday morning in the Middle East!

Across the region, women are speaking out about the need to increase their numbers in corporate leadership. A Tel Aviv conference last week drew top women from the fields of technology, investment and academia who are in positions to bring some degree of change. At a time that women make up fewer than 10% of the CEOs in Israeli tech companies, those who attended the Women’s Empowerment Summit came away with the sense that a lot more work needs to be done.

As business ties strengthen between Israel and its Gulf partners to the 2020 Abraham Accords, Bahrain is inviting Israeli startups to base some of their operations in the island nation. Meanwhile, a young Israeli company by the name of Wilco, has developed a gamified training program for software engineers that works like a flight simulator for pilots.

On the culture side this week, Saudi Arabia is coming out in the New York fashion scene with an exhibition by 100 of its designers showing clothing in eight categories, ranging from modest to demi-couture. The desert kingdom also features in our sports coverage as former President Donald Trump  proudly opened the LIV Golf tournament to his club in Bedminster, N.J., and pushed back against critics of the Saudi-backed event.

Welcome to The Weekly Circuit, where we cover the Middle East through a business and cultural lens. Read on for the stories, deals and players at the top of the news. Please send comments and story tips to [email protected]. 

GENDER GAP

Israeli women push for greater influence in tech world

Yifat Oron, who runs the Israel office of Blackstone Inc., the world’s second-largest private equity firm, said she’s appalled at the industry’s meager support for women. Citing the $330 billion invested by venture capital firms in technology companies last year, Oron asked at a conference last week what percentage of that sum was invested in businesses led by women.

“It’s really bad – 2%,” she told the audience at the inaugural Women’s Entrepreneurship Summit in Tel Aviv, as Linda Gradstein reports for The Circuit. “A slightly less bad number is the amount of money invested in companies that have women in the founding team – that’s 16%. It’s still really bad. Why is it bad? Because we don’t have enough women investors. So it’s a vicious cycle. We have to solve it.”

With Oron, a senior managing director at Blackstone, painting the grim investment landscape, others at the July 26 conference concentrated on how to improve the situation through networking and pushing companies to recognize the need for change. Ofra Strauss, chairperson of the Israeli foodmaker Strauss Group that was founded by her grandparents, said the company has evolved since earlier days when she was often the only woman in key business meetings. “It only took me two minutes to understand,” Strauss said. “If the room was empty of women and I didn’t see them around me, something was fundamentally wrong.”

Speakers also focused on other realms where women are not equal partners. Ruth Wasserman Lande, a member of Israel’s parliament from the Blue & White party and a former diplomat at its embassy in Egypt, said working in the Arab country was not easy. “I spent three years as a woman in Cairo and being an Israeli Jewish woman was challenging,” she told The Circuit in a phone interview. “We still have a way to go to have truly equal opportunities. We have more to deal with especially after we get married and have kids and have more to juggle. It is changing but slowly.”

Wasserman Lande, who is co-chair of the Abraham Accords Caucus in the Knesset, Israel’s parliament, noted efforts by the United Arab Emirates to promote women. For example, women by law make up half the members of the Federal National Council, an unelected advisory body to the royal court. When it comes to tech, only 5% of all CEO’s in the UAE are women, according to government figures, which is just below the global figure of 6%.

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FOOD INSECURITY

Ukraine export deal averts grain crisis threatening Egypt and neighboring states across North Africa

Touting low operating costs and significant labor subsidies, Bahrain is reaching out to Israeli companies and raising the idea of moving some of their operations to the tiny Gulf nation. Bahraini Ambassador Khaled Al Jalahma outlined his government’s intention to set up a regional hub that would cater to the needs of Israeli startups in a July 28 meeting in Tel Aviv with executives from more than a dozen companies. Bahrain is both “willing and flexible” to help foreign companies get set up, said Yariv Becher, vice president for “innovation diplomacy” at Start-Up Nation Central, a nonprofit organization that promotes emerging Israeli companies, which arranged the meeting.

The ambassador told the Israelis that his country “is business friendly and our work attitude is tachles,” according to several people present, scoring points with the group by using a Yiddish word that means straight talk. Israeli executives who attended the meeting said Al Jalahma made a good case for his country as a Middle East hub for sales, R&D, manufacturing and other roles.

“We want to be very active in the region and Bahrain can be a gateway,” said Rotem Arad, director of business development for H2Pro, an Israeli company that produces so-called “green hydrogen” by splitting water into its component molecules and generating cleaner, renewable energy. Among H2Pro’s investors are Microsoft founder Bill Gates, Japan’s Sumitomo Corp. and Jerusalem-based OurCrowd.

Other companies at the Tel Aviv event, which was sponsored by the Bahrain Economic Development Board, were Addionics, Aleph Farms, Beewise, C2i Genomics, Finteka,, Papaya Global, Minute Media, Monday.com, Scorpio Labs, See Tree, Set Point and Trieye.

Read the full story here.


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WARMING TIES

Three decades on, Israel-Jordan border project revives peace dividend prospects

A rookie software engineer sits at his desk and faces a problem he’s never  encountered before, at least not in his college coding class. The wrong fix could cost his company millions, but luckily the stakes here are much lower. This engineer is honing his skills at a fantasy company on an online platform that works much like a flight simulator for aspiring pilots. 

When the Israeli startup Wilco launched its simulator platform last month, On Freund, the company’s CEO, and his founding partners were taking a page out of the playbook used by pilots, architects and race car drivers by creating a simulation experience for software engineers to gain new skills and master existing ones regardless of someone’s career opportunities or background. Engineers using Wilco complete various “quests” that allow them to practice troubleshooting problems that commonly arise in real-world situations, but in an engaging way that’s akin to a video game. 

“I quickly realized that there is a difference between the theory which they have learned in school and the actual hands-on practice that takes years to come by,” Freund told The Circuit‘s Sophie Cohen. 

The idea for Wilco (the name comes from the Roger Wilco character in the “Space Quest” movie franchise, not the alt-rock group) came to Freund about a decade ago. After he graduated from Tel Aviv University, he was managing a team of engineers at Handy, an online platform that connects users with cleaning and handyperson services, and Freund was looking for ways to let his team practice and learn new skills, outside of coding, that were not taught in university. 

Last year, Freund, Alon Carmel, Wilco’s chief products officer, and Shem Magnezi, the startup’s chief technology officer, came together to launch Wilco with $7 million in seed money; the platform is accessible to any software engineer regardless of their background or location. 

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Circuit Chatter

Asia Focus: The sale of two ports in Haifa to Indian and Chinese businesses highlights Asia’s interest in Israel’s new Gulf ties and making the country a trans-shipment hub for Europe.

Green Power: Greece and Saudi Arabia agreed to work together on developing green hydrogen as a renewable energy source in Europe.

R&D: Apple is setting up a research and development center in Jerusalem to work alongside two other Israeli facilities in Herzliya and Haifa. Meanwhile, Yahoo! is also expanding operations, hiring Neetai Eshel as managing director of R&D in Israel.

Solar-Powered: French corporate giants TotalEnergies and Veolia will build a solar energy system to power a desalination plant in Oman.

Actis Invests: Actis, a UK-based private equity firm will acquire a controlling stake in Yellow Door Energy, a renewable developer based in Dubai.

Hospital Robots: Tel Aviv’s Sourasky Medical Center opened what it billed as the world’s largest emergency room, featuring self-triage screens and robot guides.

Digital Diplomacy: The White House is working to boost cyber cooperation with Saudi Arabia and Israel in an effort to counter Iranian digital threats.

Congressional Probe: The House Intelligence Committee held a hearing to look into Israel’s NSO group, whose Pegasus software has been used by by governments to spy on activists, journalists, political leaders and U.S. citizens.

Closing Circuit

Saudi-Israel: Saudi Arabia’s Mithaq Capital amassed a 20% stake in Israel’s Otonomo, becoming the biggest shareholder in the auto technology company.

Ad Purchase: Israeli digital advertising company Tremor is buying Amobee, an Israeli advertising platform, for $239 million from Singapore’s Singtel.

Robot Docs: Diagnostic Robotics, led by Dr. Kira Radinsky, has raised $45 million for its AI clinical prediction system.

French Influencers: Saudi supermarket retailer BinDawood bought a majority stake in France’s Ykone, which specializes in marketing through media influencers.

Neom Stock: Saudi Arabia expects to raise $26 billion by selling shares in the futuristic Neom megacity that it’s building on the Red Sea coast.

Egypt Gas: Adnoc Distribution, the UAE’s largest gas station operator, will acquire a 50% stake in TotalEnergies Marketing Egypt for about $186 million.

Tech Layoffs: Hundreds of Israeli tech workers lost their jobs with the closing of R&D centers by AID Genomics, a medical diagnostics company, and Asurion, a U.S. insurance company.

On the Circuit

Gal Krubiner, Avital Pardo and Yahav Yulzari, founders of Israeli fintech business Pagaya Technologies, became billionaires when the stock rose 700% on the Nasdaq exchange.

Ian Johnston has been appointed chief executive of the Dubai Financial Services Authority, regulator of the emirate’s financial services free zone, returning to a job he held between 2012 and 2018.

Guy Oseary, the Israeli-American agent who manages Madonna, U2 and the Red Hot Chili Peppers, has branched out into the NFT (non-fungible token) market through Yuga Labs’ Bored Ape Yacht Club, according to a profile in Variety.

Ahead on the Circuit

Aug. 11-16, Dubai: NFT World Investment Expo. International gathering of investors to discuss future trends in the market of non-fungible tokens. Dubai Chamber of Commerce and Industry, Residential Building.

Sept. 5-6, Jerusalem: Cleantec, an international conference bringing together business executives in water technologies, renewable energy and recycling. International Convention Center.

Circuit Culture

Fashionistas of Arabia: Saudi Arabia organized a fashion exhibition in New York, bringing together 100 Saudi designers to show their work. The exhibition, sponsored by the Saudi Arabia Fashion Commission, is divided into eight categories, including ready-to-wear, modest, concept, premiere, demi-couture, bridal, handbags and jewelry.

On location: Jerusalem, Tzfat and Acre are among Israeli cities discussed in an article in Variety that international filmmakers are using as locations to convey the exotic atmosphere of the Middle East.

Trump Defends Saudi Golf-backed Tour: Former President Donald Trump defended hosting the Saudi-backed LIV GOLF tournament at his club in Bedminister, New Jersey, against accusations that the kingdom was using the event to rehabilitate its image as an abuser of human rights. LIV, which is supported by Saudi Arabia’s Public Investment Fund, has lured stars from the PGA circuit, such as Phil Mickelson with payments reported to be as high as $200 million.


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Weekly Circuit

Israel spawns desert startups + Tech veteran sees slow path to regional acceptance

Emmanuel Dunand/AFP via Getty Images

Israel's Ashalim solar tower in the Negev desert generates electricity with an array of 55,000 mirrors at its base.

By
Jonathan H. Ferziger
July 25, 2022
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👋 Good Monday morning in the Middle East!

As the midsummer sun scorches the region, hundreds of startups in Israel are developing products to address lack of water, food insecurity, desertification and other challenges presented by the environment. The so-called “DeserTech” industry, as The Circuit reports this week, has coalesced around the dusty, southern Israeli city of Beersheva, which is undergoing a renaissance driven by a number of factors, including growth of Ben-Gurion University of the Negev and a massive transfer of Israeli military facilities to the southern region. The city has become a regular stop for visitors from the Gulf, who share the punishing climate at home and are exploring partnerships with promising Israeli companies.

Much of the spadework that has enabled such visits was carried out quietly over recent decades by Koby Huberman, a former executive at one of the country’s biggest technology companies, who has dedicated himself to facilitating Arab-Israeli cooperation. In an interview with The Circuit’s Jonathan Ferziger, Huberman said he’s not disappointed with President Joe Biden’s four-day visit to the region, though others in the tech industry were hoping for more of a bang from the trip. Still, he counsels lots of patience for those expecting concrete results in the Saudi and Palestinian arenas.

Across the Middle East, tourism is rebounding from the pandemic and hotels are filling up again. Among the summer festivals kicking off this week and featured below in our “Circuit Culture” section is Tel Aviv Dance, which, along with featuring two dozen Israeli troupes, draws top choreographers from Italy, Austria and the U.S.

Welcome to The Weekly Circuit, where we cover the Middle East through a business and cultural lens. Read on for the stories, deals and players at the top of the news. Please send comments and story tips to [email protected]. 

GENDER GAP

Israeli women push for greater influence in tech world

Global warming, vanishing rivers and sun-pulverized soil afflict the Middle East and North Africa with cruel and growing strength. Before they further degrade the planet, though, these forces represent an opportunity for scientists and businesses in the region to develop responses that may slow the environmental damage or, at least, help humans to adapt.The prospect of mitigating climate change has spawned an emerging industry of startups in Israel that include companies such as WaterGen, which can produce enormous quantities of fresh water from the barest level of humidity in the air.

A report released last week found more than 300 Israeli businesses developing products and trying to raise money in fields ranging from crop protection, solar power and smart irrigation to creating energy-efficient construction materials and novel desert-grown foods. It notes that some 2 billion people live in deserts or extremely arid climates, and asserts that Israel is one of the few countries that has developed effective technologies for reversing the impact of desertification.

Many of the Israeli start-ups for partners in the Gulf, Israeli trade officials say. One of the drivers for the 2020 Abraham Accords, which Israel signed with the United Arab Emirates, Bahrain, Morocco and Sudan, was the understanding that the region’s punishing heat and environmental damage is a shared problem that could benefit from cooperative solutions.

The study was produced by the DeserTech Climate Technologies Community in collaboration with Start-Up Nation Central, a Tel Aviv-based organization that promotes emerging Israeli technology companies, and sponsored by the Merage Foundation Israel, the Israel Innovation Institute, the Ministry of Environmental Protection and Ben-Gurion University of the Negev, according to a press release. The project aims to position Israel and, particularly the Negev region, as “the site that will pioneer the connection between entrepreneurs, investors, industry, researchers, and policy makers to overcome the challenges of desertification,” DeserTech Director Sivan Cohen Shachari said.

Read the full story here.

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FOOD INSECURITY

Ukraine export deal averts grain crisis threatening Egypt and neighboring states across North Africa

For decades, Koby Huberman has been tilling the soil, patiently developing contacts across the Arab-Israeli divide and telling whoever would listen that employing a regional approach to Middle East peacemaking would yield the most profitable results. That’s why the Israeli tech industry veteran is far from discouraged with the inconclusive results of President Joe Biden’s July visit to Israel, the West Bank and Saudi Arabia.

It took years of unsung work to help plant the seeds for quiet political ties and unpublicized Gulf-Israel business deals that burst into the sunlight with the 2020 signing of the Trump-brokered Abraham Accords. “We are transforming the relationship model where very few were quietly working behind the scenes building bridges in the Arab world,” Huberman said in an interview with The Circuit’s Jonathan Ferziger. “Investors are now beginning to understand the new business environment.”

Earlier in his bridge-building career, Huberman, was an executive at Nice Systems, the telecommunications and data security company that has become one of the five biggest Israeli businesses on Wall Street. In 2011, he launched the Israeli Peace Initiative with Yuval Rabin, son of slain prime minister Yitzhak Rabin, and an assortment of senior military and intelligence figures, who developed a proposal for resolving the conflict with the Palestinians. That led to a broader project called the Israel Regional Initiative that provided a discreet meeting ground for Israelis and Arabs to develop plans for cross-border cooperation in a more integrated Middle East.

Despite expectations in Israel that the Biden visit would lead to more overt actions by the Saudis toward normalization, Huberman said the limited steps, such as allowing Israeli airlines to overfly the kingdom and agreeing on rules governing two strategic islands in the Red Sea, were roughly what could be expected in a region that generally undertakes political changes very slowly. “This will yield a lot of progress for the wellbeing of the region and a lot of business upside,” he said.

Read the full story here.

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Circuit Chatter

Neom Gets Bigger: Cost estimates for Saudi Arabia’s mammoth Neom project have more than doubled to over $1 trillion, according to the Wall Street Journal, which discloses previously unreported plans for a 75-mile-long, mirrored skyscraper made up of two parallel structures that would house 5 million people.

Rising Exports: Israeli exports are projected to reach $165 billion in 2022, a 15% increase from last year. The U.S. was Israel’s largest trading partner with $10 billion in bilateral trade during the first half of 2022, followed by China with $9 billion, according to the Economy Ministry.

Power Investments
: Dubai plans to invest nearly $11 billion in electricity and water projects over the next five years, focusing on renewables, clean energy and its transmission and distribution networks.

Cash Barriers: Israeli Finance Minister Avigdor Lieberman said he’s trying to find legal ways to let Russian immigrants transfer money from their bank accounts in Russia, a process complicated by sanctions enacted after Russia’s invasion of Ukraine.

Hospital Trips: Arab patients comprise some 30% of the world’s medical tourism market, an industry that is expected to reach $200 billion in the next 10 years.

Need Skills: Qatar and Kuwait face the greatest shortages in the Gulf of skilled workers, and companies are increasing salaries there to retain experienced employees.

Gas Demand: Fuel shortages in Europe are creating rising demand for natural gas, already boosting sales for Egypt’s two liquefaction plants after the European Union signed a gas import agreement last month with Egyptian and Israeli leaders.|

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Closing Circuit

New Saudi Airline: Saudi Arabia will soon launch a second national airline – so far unnamed — alongside Saudia as part of a plan to boost tourism and become an international flight hub.

Male Patch: Israeli startup Virility has raised $10 million from Migdal Insurance and Arkin Investments to develop a skin patch that helps men control premature ejaculation.

Drone Grocer: Walmart will roll out its drone grocery delivery service in the U.S. with an operating system made by Israel’s FlightOps to manage a fleet of more than 150 unmanned aerial vehicles.

Dutch Retailer: SPAR International, the Netherlands-based supermarket chain, signed a letter of intent with retail executive Amit Zeev to open a network of stores in Israel.

Saudi VC: Saudi Arabia’s venture capital funding tripled to $584 million in the first half of 2022, compared to the same period last year.

Tahini Shortage: Israeli scientists and farmers are developing techniques to increase sesame seed yields to make tahini paste as global supplies dwindle because of civil war in Ethiopia.

Tourism Rebound: Dubai hotels posted a 75% occupancy rate in the first five months of 2022, up from 58% in the same period last year when the pandemic deflated travel.

On the Circuit

Miami Mayor Francis Suarez visited Israel last week, meeting with venture capital firms and startups in Tel Aviv, where he talked about his efforts to turn the Florida city into a regional tech hub.

UAE Climate Change and Environment Mariam Al Mheiri called for more “realism” in global efforts to adopt clean sources of energy, telling The National, “The world is knocking on our door and asking us to produce more oil and gas, because they are not ready with the new energy systems.”

Indian billionaire Gautam Adani, who bought Israel’s Haifa Port this month was ranked as the world’s fourth-richest person with an estimated fortune of $112.5 billion, vaulting past Microsoft founder Bill Gates.

Ahead on the Circuit

July 26, Dimona Conference on Real Estate: Israeli Regional Development Minister Oded Forer, Transportation Minister Merav Michaeli among speakers at a property industry forum in the southern Israeli city of Dimona. Hashachar Community Center.

July 26, Israel Elections Forum: Israeli President Isaac Herzog, leaders of Israeli political parties discuss national elections scheduled for November. Hosted by Channel 13 News. Jerusalem International Convention Center.

July 27-28, Dubai: Global Vertical Farming Show. Businesses in agriculture, construction, water technology and other industries from around the world meet for a two-day conference. Hotel Conrad, Dubai.

Circuit Culture

Summer Dance Festival Gets Tel Aviv Swinging
The annual Tel Aviv Dance festival opens for a two-week run at the Suzanne Dellal Center with a performance by Israel’s Castle in Time Orchestra. Among the international headliners are Austria’s Bodhi Project, Italy’s Silvia Gribaudi and New York-based Netta Yerushalmy. Israeli troupes include Lior Tavori, Nur Garabli and Rotem Tashach. The festival will also feature free outdoor events from Aug. 8-12 in a program called Cypher Connection 2022 that will spotlight hip-hop, freestyle, breaking, popping and other contemporary forms of dance.

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