The Daily Circuit: Mining South America + Korean AVs in Abu Dhabi

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👋 Hello from the Middle East!

Today in The Daily Circuit, we’re looking at the Korean firm entering a joint venture to steer autonomous vehicles through Abu Dhabi, the record bounty in bond offerings this year across the MENA region, the PIF bid for a 50% stake in the U.K. owner of Selfridges department store and Mubadala’s investment in posh baby gear. But first, South America’s mineral wealth draws Saudi attention.

Saudi Arabia’s determination to develop an electric vehicle industry and expand its role in the international mining industry is taking its leaders to South America.

Bandar Alkhorayaf, Saudi Arabia’s Minister of Industry and Mineral Resources, will visit Brazil and Chile over the coming two weeks as the world’s leading oil exporter seeks to expand its international presence in mining. In Brazil, talks will cover mining, food processing and aviation, while in Chile the focus is on lithium, needed for electric vehicle batteries.

Alkhorayaf will land in Brazil today and leave for Chile, the world’s second largest producer of lithium, next Sunday. In Brazil, he will meet with executives from mining company Vale. In Chile, Alkhorayaf will meet Mining Minister Aurora Williams, as well as mining companies Antofagasta and Codelco, a state-run company tasked with bringing the Chilean government into the lithium industry.

Back home for the minister, troves of minerals lie beneath Saudi Arabia that are critical to powering the energy transition such as gold, phosphate, bauxite, copper, zinc and nickel. The Public Investment Fund’s Ma’aden mining company is tasked with tapping the resources, last valued at $2.5 trillion, making it one of the most significant potential contributors to the kingdom’s economic transformation ambitions.

KOREAN AI

Autonomous public transportation remains a priority in Abu Dhabi as local player Bayanat plans to enter a joint venture with South Korean autonomous technology firm Autonomous a2z. The Abu Dhabi-listed firm, which counts G42 as its largest shareholder, will “lean on learnings” from its driverless taxi pilot project that has been ongoing for the last several years in tourist-heavy spots like Yas Island and Saadiyat Island, clocking hundreds of thousands of miles of test drives with its driverless fleet. The new joint venture will aim to expand that pilot project, known as TXAI, to connect passengers to Abu Dhabi airport to tourist attractions and hotels. Part of the discussions are also use cases that extend beyond public transport, the companies said in a joint statement.

BOND BOUNTY

Debt offerings are on the rise this year across the Middle East and North Africa. During the first half of 2024, MENA nations and companies issued bonds raising $73.4 billion, a 59% jump from last year and a record for the half-year period, according to the London Stock Exchange Group’s Deals Intelligence unit. Saudi Arabia was the most active issuer nation during H1 2024 accounting for 49% of total bond proceeds, followed by the UAE at 29% and Qatar with 10%, the survey showed. Financial issuers accounted for 56% of the proceeds raised during the first half of 2024. Governments and state agencies across the region, meanwhile, raised $27.6 billion with the issuance of Islamic sukuk bonds. Standard Chartered was the region’s top bookrunner for bond offerings, managing $8.2 billion of related proceeds, or a 11% market share. The London-based bank was also first in the MENA Islamic bonds league table, followed by HSBC.

Public Investment Fund: The Saudi sovereign wealth fund has made an offer that would boost its stake in Selfridges to 50% after the U.K. department store’s co-owner fell into insolvency, Bloomberg reports.

Mubadala: The asset management unit of the Abu Dhabi sovereign wealth fund, Mubadala Capital, is buying a majority stake from Bain in high-end baby gear brand Bugaboo. This values the Amsterdam-based company at several hundred million pounds, the Financial Times reports.

ADQ: ADQ-backed PureHealth has successfully concluded the initial public offering of its subsidiary, Ardent Health Partners, on the New York Stock Exchange last Thursday. Ardent Health offered 14,300,000 shares of its common stock at $16 per share, under the ticker ARDT. Meanwhile, Abu Dhabi Ports Pakistan, a unit of the ports group owned by ADQ, will invest $250 million in Karachi Port over the next ten years as it looks to modernize the infrastructure in the seaside city.

Qatar Investment Authority: The QIA will change the look of the skyline in London’s Canary Wharf financial district as it plans to structurally change a 45-floor office tower it owns once banking giant HSBC moves out. The Qatari sovereign wealth fund and the area’s landlord Canary Wharf Group said they will convert the building to mixed-use to include residential units, making it one of the biggest redevelopment projects yet to repurpose office buildings since the pandemic.

🚢 Turkish Hub: Dubai-based DP World and Turkey’s Evyap Group completed a merger of their two port operations on the Marmara Sea to create a new international logistics hub.

📚 New School: Dubai’s GEMS Education has secured a $3.25 billion financing facility from a consortium of local and international lenders and investors including Brookfield Asset Management, allowing it to refinance its existing debt and buy out the majority of minority shareholders.

🇨🇳 Connecting People: The UAE and China signed a draft agreement in Beijing last week to increase air connectivity between airports in both countries.

🌲 Ecotourism Magnet: Morocco plans to invest $172 million in the Draa Oasis, building hotels and sprucing up nature sites, in an effort to turn the southern landmark into a magnet for ecotourism.

💸 Venture Takeover: Arieli EL, an Israeli investment company, paid $53.2 million to acquire control of Tel Aviv-based Elron Ventures, which has interests in cybersecurity and business software, from Discount Investment Corp.

✈️ Smart Travel: Abu Dhabi is rolling out a biometric system for authenticating passengers at Zayed International Airport which will reduce the need for passports and cut processing time for departing passengers.

🇹🇷 Talking Turkey: Turkey received its first sovereign credit ratings upgrade from Moody’s in a decade, advancing to “B1” with a positive outlook, with the agency citing improvements in governance and economic policies.

⚗️ Alternative Plastics: SS Royal Kit Emirates Investment and Global Biopolymers Industries are establishing a joint venture, Emirates Biotech, that aims to use biopolymers to replace traditional fossil fuel-based plastics.

🥵 Cooling Interest: While the Middle East is bearing the worst impacts of climate change, investment in climate tech in the region is lagging and declined more than 80% in 2023 as risk-averse investors shy away from long-term ventures, Fast Company reports.

Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, met with business leaders, investors and senior government officials during his weekly majlis reception on Sunday. Also attending the meeting at the Union House in Dubai were Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Sheikh Ahmed bin Mohammed, Second Deputy Ruler of Dubai; and Sheikh Ahmed bin Saeed, President of the Dubai Civil Aviation Authority, Chairman of Dubai Airports, and Chairman and CEO of Emirates Airline.

Dr. Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology, Chief Executive of ADNOC and President of the COP28 climate conference, called on energy companies to make a collective push toward achieving net-zero emissions by 2050, speaking today at the Ministerial on Climate Action meeting in Wuhan, China.

Ben Powell was named Chief Strategist in Dubai for the Middle East and Asia Pacific division of the BlackRock Investment Institute, a unit of the world’s largest asset manager that publishes research about the global economy, geopolitics and financial markets.

🐪 Dates for the Diary: Hundreds of thousands of visitors are expected to descend on Al Dhafra’s Liwa Date Festival over the next week to celebrate the sweet and versatile fruit that is a foundational element of Emirati culture. Running until July 28, the festival sees date farmers competing for prizes, while visitors are invited to take part in date-related activities, including culinary and handicraft displays.

Race leader and yellow jersey winner Tadej Pogacar of Slovenia and UAE Team Emirates celebrates during the podium ceremony of the 111th Tour de France 2024, after the final stage from Monaco to Nice, in Nice, France. (Photo: Getty Images)

July 2-Aug. 25, Riyadh, Saudi Arabia: Esports World Cup. An international competition for professional gamers with a $60 million prize pot. Boulevard City.

July 15-26, Granada, Spain: ADIA Lab International Summer School. A course of lectures and case studies to explore the critical role of trust and safety in AI, examining the ethical, technical and societal implications of AI applications. University of Granada.

July 27-Aug. 4, Washington D.C. Mubadala Citi DC Open. Tennis tournament featuring nine of the world’s top 20 players. Rock Creek Park.

Aug. 12-15, Riyadh, Saudi Arabia: Saudi Food Expo. One of the kingdom’s largest trade shows for the food & beverage industry. Riyadh Front Exhibitions.

Sep. 30-Oct. 2, Dubai, UAE: Future Hospitality Summit. The global conference for leaders in the hospitality industry expands this year at a new location with dedicated space for ESG planning, country pavilions and a larger exhibition area. Madinat Jumeirah.

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Source link : https://circuit.news/2024/07/22/the-daily-circuit-mining-south-america-korean-avs-in-abu-dhabi/ Author : Publish date : 2024-07-22 07:11:41 Copyright for syndicated content belongs to the linked Source .