The Daily Circuit: Fintech crowd flocks to Dubai + Etihad preps for IPO
👋 Hello from the Middle East!
Today in The Daily Circuit we’re looking at how Saudi hospitals are harnessing artificial intelligence, the bankers putting together Etihad’s IPO, Mubadala’s plans to invest $13.5 billion in Brazil’s biogas industry and a vote of confidence from Fitch in Egypt’s economic rescue package. But first, financial innovators flock to the UAE this week.
Fintech has long been a darling of the Dubai startup scene with over half of all finance-focused startups in the Gulf calling Dubai home. The sector has shown some resilience amid the wider technology market correction, and it is against this backdrop that the Dubai International Financial Center is hosting its second annual summit starting today. Some 8,000 investors, business executives, founders and regulators are expected at the event to discuss the latest innovations and challenges.
Driving conversations and deals over the two-day conference will be themes like financial inclusion — the region has more than 85 million “unbanked” adults — as well as business-friendly regulations in the UAE, emerging opportunities in green finance and cross-border cooperation. The MENA region has 800 fintech startups valued at $15.5 billion, according to data by Dutch data platform Dealroom.
Slated to attend are more than 20 governors of financial institutions including Essa Kazim, Governor of the DIFC; as well as Adena Friedman, Chair & CEO of Nasdaq Inc; Nic Dreckman, CEO of Bank Julius Baer; Yie-Hsin Hung, President & CEO of State Street Global Advisors; and Jim Demare, President Global Markets at Bank of America. Local speakers include Abdullah bin Touq Al Marri, Cabinet Member and UAE Minister of Economy; H.E. Helal Saeed Al Marri, Director General, Department of Economy and Tourism, Dubai; Salem Humaid Al Marri, Director General, Mohammed Bin Rashid Space Centre, UAE; and Faisal Belhoul, Vice Chairman of the Dubai Chamber.
SAUDI HEALTH-TECH
Saudi Arabia is betting that artificial intelligence will help its hospitals and clinics save money as technology transforms the healthcare industry, Arab News reports. The newspaper cites a study by McKinsey & Co. that says the kingdom could generate from $15 to $27 billion in economic value by 2030 as it is transformed with the development of AI. The impact will come from automating up to 40% of healthcare tasks, making procedures more efficient and reducing manual workload, the consulting firm said in its analysis. Dr. Nadine Hachach-Haram, a surgeon and co-founder of the health-tech platform Proximie, tells Arab News that Saudi hospitals are using AI to triage caseloads and assist in interpreting scanned images from remote locations.
TAKING OFF
Abu Dhabi’s Etihad Airways has hired BNP Paribas and Morgan Stanley as bookrunners on the $1 billion IPO it’s planning by the end of 2024, Bloomberg reports. ADQ, the sovereign wealth fund that owns Etihad, previously picked Citigroup Inc., HSBC Holdings Plc and First Abu Dhabi Bank as lead advisers for the IPO, according to the news agency. The IPO will create the first publicly traded major Gulf hub carrier as Dubai-based rival Emirates also contemplates going public. Etihad posted a five-fold increase in annual profit last year as it expanded to accommodate post-pandemic demand for international travel.
Mubadala: The Abu Dhabi sovereign wealth fund’s Mubadala Capital unit plans to invest $13.5 billion over the next decade in a biofuels project being led by Brazil’s Acelen energy company, the Financial Times reports. Meanwhile, Mubadala Capital’s portfolio company TruFood Manufacturing has merged with Bar Bakers, both American snack manufacturers. Financial details of the deal were not disclosed. Emirates Global Aluminum, the UAE’s largest industrial company outside the oil and gas sector and backed by Mubadala, has completed the acquisition of Germany’s Leichtmetall Aluminum as it looks to expand its presence in Europe.
Public Investment Fund: The PIF will not be the only state-backed entity bankrolling Saudi Arabia’s Vision 2030 economic roadmap. Saudi banks and the capital market are poised to make substantial contributions, according to S&P Global.
📈 Saudi IPO: Rasan, a Saudi fintech firm, said it will sell a 30% stake in an IPO on the Tadawul Stock Exchange, which will open for bookbuilding by institutional investors from May 12-16.
🛢️ Price Hike: Saudi Arabia raised the price of its crude oil to Asia for a third straight month amid OPEC’s campaign to keep prices high and prevent a global surplus.
⚒️ Moroccan Minerals: Aterian, a Lonon-based mineral exploration company, said it will issue $627,000 through convertible loan notes for drilling projects in Morocco and other African countries.
💽 Software Acquisition: Blackstone, the world’s largest alternative asset manager, is in advanced talks to acquire Israel’s Priority Software for in a $400-$500 million deal, Calcalist reports.
💸 Debt Trend: U.S. alternative investment manager Apollo raised $40 billion in the first quarter as investors have poured into private debt funds and it eyes a new debt vehicle for individuals, The Wall Street Journal reports.
👀 Eye treatment: Alcon, a Swiss-American pharmaceutical and medical device company, will acquire Israel’s Belkin Vision, which has developed laser therapy for glaucoma, for up to $330 million, Calcalist reports.
👛 Kingdom Coffers: Saudi Arabia recorded a budget deficit for the sixth straight quarter as increased spending on the kingdom’s Vision 2030 economic transformation roadmap outpaced growth in revenue. Total expenditures rose 8% year-on-year, while revenues expanded by 4%. Both oil and non-oil revenue climbed. The shortfall stood at 12.4 billion riyals ($3.3 billion).
💳 Sandbox-Ready: PayLater, a Qatari fintech startup, has been approved for entry into the Qatar Central Bank’s sandbox program for early-stage companies.
⛽ Gas Discovery: The Sharjah Petroleum Council announced a new discovery of gas in the emirate’s Hadiba field, which it said was found “in promising economic quantities.”
🇪🇬 Rating Raised: Egypt’s credit rating outlook was raised to positive from stable by Fitch Ratings after the country secured an international bailout of $57 billion for its inflation-burdened economy.
🚰 No Salt: Bahrain’s Electricity & Water Authority has floated a tender for the construction of a new seawater reverse osmosis desalination plant on the kingdom’s Hawar Island.
🦄 Unicorn Dreams: Dubai’s new crop of European tech founders building startups in the UAE are the focus of a Sifted feature.
🚲 Power Race: The transformation of pro cycling over the past decade under the influence of heavy investment from the Middle East is explored in a long-read from BikeRadar.
✈️ Travel Talk: As the global travel industry descends on Dubai this week for the Arabian Travel Market, resilience in the face of regional conflict will be high on the agenda for airline, hotel and tour operators.
Sheikh Mohammed bin Rashid, Ruler of Dubai and Vice President of the UAE, issued a decree establishing the Dubai Council, which he will chair. The body will aim to formulate and implement the emirate’s future development agenda to enhance its global competitiveness. Sheikh Hamdan bin Mohammed, will serve as First Vice Chairman and Sheikh Maktoum bin Mohammed as Second Vice Chairman.
Saudi Minister of Investment Khalid A. Al-Falih was seen at Sunday’s Miami Grand Prix, holding court with the host of the race Stephen Ross and Miami Mayor Francis Suarez. Former President Donald Trump was also spotted in the VIP section of the race. Al-Falih later flew to Los Angeles for a private dinner with Mike Milken ahead of this week’s Milken Institute Global Conference.
Con Korfiatis was named as the new CEO for Oman Air, replacing acting chief Nasser Al Salmi. Korfiatis was CEO of Saudi budget airline Flyadeal.
Jim Biden, brother of U.S. President Joe Biden, is the subject of a story in Politico digging into his business connections with companies linked to the government of Qatar.
📽️ Movie Deal: Saudi Arabia is cutting the cost of cinema licenses and encouraging theater owners to reduce ticket prices in an effort to boost the kingdom’s growing $1 billion movie industry.
🎸 Come Around: Punk rock veterans Green Day and The Offspring will perform for 30,000 people at Expo City Dubai in January next year, with tickets going on sale from 10 a.m. on Thursday.
May 5-8, Los Angeles: Milken Institute Global Conference. Politicians, financiers, media and philanthropists convene to discuss challenges across themes like innovation and technology, health and medical research, diversity and inclusion. The Beverly Hilton.
May 6-7, Dubai, UAE: Dubai FinTech Summit. The second annual gathering of financial leaders meet to spotlight innovation and discuss disruptions in the industry, organized by the Dubai International Financial Centre (DIFC). Madinat Jumeirah.
May 7-9, Abu Dhabi, UAE: AIM Congress. The Annual Investment Meeting will convene inter-governmental leaders, executives, entrepreneurs and policymakers on the theme “Adapting to a Shifting Investment Landscape: Harnessing New Potential for Global Economic Development.” Abu Dhabi National Exhibition Center.
May 13-15, Abu Dhabi, UAE: Abu Dhabi Global Healthcare Week. A conference focusing on investments, and innovation to solve the most important global health challenges. Abu Dhabi National Exhibition Center and Abu Dhabi City.
May 14-15, Abu Dhabi, UAE: J.P. Morgan Asset Management: Life Sciences Innovation Summit. A gathering aimed at drawing startups and investors from the life sciences sector to Abu Dhabi. Cleveland Clinic Abu Dhabi.
May. 14-16, Doha, Qatar: Qatar Economic Forum, Powered by Bloomberg. A news-driven event dedicated to global business and investment. This year’s theme is “A World Remade: Navigating the Year of Uncertainty.” Request your invitation here. Fairmont & Raffles, Doha.
May 29-31, Marrakech, Morocco: GITEX Africa. The second edition of the biggest tech and startup gathering in Africa. Place Bab Jdid.
