Gulf

1. African deal flow
2. Dubai resolves family feud
3. Saudi deposits lag
4. Kuwait buys UAE ships
5. Oman’s $1B battery plant

This year’s Hajj was safer — but, as always, exhausting.

The Gulf’s growing African interests

Gulf countries are expanding their footprint in Africa — moving beyond traditional sectors like mining, logistics, and agriculture — as they seek to deepen their commercial and diplomatic ties to the continent. The UAE is backing a new economic zone and digital incubator in Ghana, while Qatari businesses have been in talks over possible investments in construction and infrastructure projects in Tanzania. The African Export-Import Bank estimates Gulf countries invested more than $100 billion in Africa in the decade to 2022. Much more has followed since then, and the UAE now outpaces China, France, and the UK when it comes to investment in the continent.

Gulf companies are still pouring capital into traditional sectors: Emirates Global Aluminium is planning a major investment in a bauxite project in Ghana, and Abu Dhabi’s International Resources Holding agreed to buy a majority stake in a Democratic Republic of Congo tin producer for $367 million.

Dubai steadies retail giant’s succession

Dubai authorities are stepping up their involvement to resolve a succession dispute at retail giant Majid Al Futtaim. The government appointed a new board to oversee its parent company, potentially putting one of the Gulf’s largest family-owned businesses on course for a public listing, the Financial Times reported. Responding to ongoing disagreements among shareholders, a special committee — formed by the government at the request of the late billionaire Majid Al Futtaim’s heirs three years ago — has reconstituted the board with five government and four family representatives.

For the shopping mall-oriented Gulf, MAF has been a mainstay for decades — a leader among numerous merchant families that built Dubai into a magnet for tourism and shopping. Perhaps best known for its indoor ski slope at Mall of the Emirates, MAF’s holdings span malls, hotels, and movie theaters. But its founder left no will, serving as a wakeup call to UAE regulators who are preparing its richest families for “the great wealth transfer” underway. Despite increased government oversight, the group “remains a privately owned and independently operated” company, MAF said in a statement to the FT.

Saudi lenders turn to riskier bonds

Saudi lenders are turning to riskier debt to keep financing Vision 2030 projects like NEOM and Red Sea resorts. They’ve already issued more than $5.6 billion in Additional Tier 1 bonds this year — surpassing any previous full-year total, Bloomberg reported. The move reflects a funding squeeze: deposit growth hasn’t kept pace with the demand for credit. Lower oil prices have slowed Saudi growth, prompting the kingdom and state-owned companies to borrow to sustain project spending, which is pushing down deposit rates.

For bond investors, AT1s carry risks. They can be converted to equity or be written down in some circumstances, and banks can cancel coupon payments without defaulting. Despite that, market demand has been strong, with recent issuances by the likes of Alrajhi Bank and Banque Saudi Fransi oversubscribed.

UAE’s EDGE lands Kuwait ship deal

Kuwait’s Ministry of Defence agreed to buy eight patrol ships from Abu Dhabi-based defense contractor EDGE, in a deal valued at 9 billion dirhams ($2.45 billion). The Falaj-3 class gunships, already in service with the UAE Navy, mark their first international order, a significant milestone for the government-owned EDGE, which is pushing to grow exports. The 62-meter missile boats will be built by EDGE’s subsidiary Abu Dhabi Ship Building, with other units providing ammunition and specialized systems. Gulf countries are ramping up naval spending, long overshadowed by air and land forces, amid rising maritime threats in the Gulf and Red Sea.

Chinese firm invests in Oman battery plant

The amount that China’s Hunan Zhongke Electric plans to invest in an Omani factory producing anode material for lithium batteries. The plant will be built in Sohar Port and Freezone in two phases, with each one taking three years to complete and having an annual production capacity of 100,000 tons. It represents a boost to Oman’s ambitions to diversify its economy and develop a clean energy sector, capitalizing on Chinese dominance of the electric-vehicle battery sector: The plant’s output will be aimed at export markets, and almost all of Zhongke’s revenues come from Chinese electric vehicle manufacturers like BYD and CATL.

Energy Transition

• Continuing a push into Europe, UAE-backed climate fund ALTÉRRA is buying a stake in Italian renewable energy firm Absolute Energy, marking its second direct investment in the continent. — Reuters
• ADNOC’s global energy investment arm XRG plans to build a liquefied natural gas business with capacity of between 20 and 25 million tons per year by 2025. Its board also approved a roadmap to turn the $80 billion unit into one of the world’s top three chemical producers.

Checking In

• Best known for its Toyota dealerships, Saudi Arabia’s Abdul Latif Jameel group is eyeing a different kind of vehicle. The conglomerate is in talks with California-based Joby Aviation to buy 200 of its electric air taxis, in a deal worth up to $1 billion. — Bloomberg

Diplomacy

• Gulf countries are exerting more heft in the diplomatic sphere and Bahrain, with its new seat on the UN Security Council, is the latest example. Its two-year tenure as a non-permanent member of the 15-nation bloc starts in January.

Security officers in Saudi Arabia, resting after completing their Hajj duty.

David Gitlin turned around US air conditioning and refrigeration group Carrier Global, earning him a reputation as one of the country’s most effective industrial executives — and one of the highest-paid. But when aerospace giant Boeing shortlisted him to be its new CEO, he declined.

“I was flattered to be considered,” Gitlin told Semafor’s Andrew Edgecliffe-Johnson of the Boeing nod. But, he said, Carrier was “in the midst of doing something that history will prove is very, very special.”