UAE’s AI Push: Abu Dhabi’s MGX Weighs Multibillion Dollar Investment Fund - Bloomberg
Abu Dhabi-based MGX is considering plans to raise billions of dollars in third-party capital as it looks to ramp up investments in artificial intelligence, according to people familiar with the matter.
The firm aims to raise money through a fund structure for investments in AI infrastructure, the people said, declining to be identified as the information is private. MGX could raise as much as $25 billion for the vehicle, making it among the world’s largest entities of its kind, one of the people said.
As part of their plans, executives are weighing raising money from financial and strategic investors in Abu Dhabi and beyond, the people said, though Mubadala Investment Co. and AI firm G42 will continue to be MGX’s main backers.
No final decisions have been made. A representative for MGX declined to comment.
If the fund eventually taps global investors, that would mark a rare instance of an Abu Dhabi-based entity seeking external cash. The oil-rich city, home to sovereign wealth funds that oversee close to $1.8 trillion, is typically seen as an exporter of capital.
Still, earlier this year, the investment firm led by Guggenheim Partners founder Mark Walter and financier Thomas Tull agreed to take a minority stake in Mubadala’s asset management subsidiary. That marked the second time an outside investor was allowed to own a piece of that entity in recent months.
MGX is overseen by one of the world’s most influential dealmakers — Sheikh Tahnoon bin Zayed Al Nahyan, who’s the United Arab Emirates’ national security advisor, brother to the country’s president, and the man atop a $1.5 trillion empire that spans everything from wealth funds to G42.
Set up last year with Mubadala and G42 as founding partners and a goal of eventually topping $100 billion in assets, MGX has emerged as a key tool in the country’s push for AI dominance.
It plans to contribute to US President Donald Trump’s Stargate venture, has backed both OpenAI and Elon Musk’s xAI, while also teaming up with BlackRock Inc. and Microsoft Corp. on a $30 billion plan to build data warehouses and energy infrastructure.
The firm’s been beefing up its US operations in recent months by hiring executives from firms like Apollo Global Management Inc. and Warburg Pincus LLC.
Tuesday, 5 August 2025
#Saudi Steel Firm Sounds Out Advisers for Debt Restructuring - Bloomberg
Saudi Steel Firm Sounds Out Advisers for Debt Restructuring - Bloomberg
Saudi Arabia’s Al Ittefaq Steel Products Co. has sought proposals from restructuring advisers, according to people familiar with the matter, ahead of expected talks with debtholders including major creditor Davidson Kempner Capital Management LP.
Saudi’s largest private steel manufacturer has been struggling with its debt burden for some time but has now started talking directly to potential advisers, the people said, asking not to be named because the matter is private. No mandates have yet been awarded, they added.
Al Ittefaq did not respond to multiple requests for comment via phone and email. A spokesperson for Davidson Kempner declined to comment.
Al Ittefaq has had to rework its debt before. In 2016, the company was in talks to restructure $2 billion, while in 2011 it reached an out-of-court restructuring agreement with bank lenders. And in 2009, the company negotiated with banks to reschedule more than $1 billion of loans.
Davidson Kempner is no stranger to Middle East restructurings. Last year it was involved in the restructuring of more than $1 billion of debt owed by United Arab Emirates-based plastic manufacturer JBP Group, which resulted in a debt-for-equity swap. In 2023, Davidson Kempner bought $1.1 billion of non-performing loans from Abu Dhabi Commercial Bank PJSC.
Saudi Arabia’s Al Ittefaq Steel Products Co. has sought proposals from restructuring advisers, according to people familiar with the matter, ahead of expected talks with debtholders including major creditor Davidson Kempner Capital Management LP.
Saudi’s largest private steel manufacturer has been struggling with its debt burden for some time but has now started talking directly to potential advisers, the people said, asking not to be named because the matter is private. No mandates have yet been awarded, they added.
Al Ittefaq did not respond to multiple requests for comment via phone and email. A spokesperson for Davidson Kempner declined to comment.
Al Ittefaq has had to rework its debt before. In 2016, the company was in talks to restructure $2 billion, while in 2011 it reached an out-of-court restructuring agreement with bank lenders. And in 2009, the company negotiated with banks to reschedule more than $1 billion of loans.
Davidson Kempner is no stranger to Middle East restructurings. Last year it was involved in the restructuring of more than $1 billion of debt owed by United Arab Emirates-based plastic manufacturer JBP Group, which resulted in a debt-for-equity swap. In 2023, Davidson Kempner bought $1.1 billion of non-performing loans from Abu Dhabi Commercial Bank PJSC.
#Dubai: McKinsey Alumni-Founded Alaan Raises $48 Million in Series A - Bloomberg
Dubai: McKinsey Alumni-Founded Alaan Raises $48 Million in Series A - Bloomberg
A Dubai-based fintech founded by two former McKinsey & Co. consultants has raised $48 million, underscoring continued investor confidence in Middle Eastern startups.
Alaan’s fundraise — one of the region’s larger Series A rounds — was led by Peak XV Partners, formerly Sequoia Capital India & Southeast Asia, it said in a statement. The fintech did not disclose its valuation.
The round also drew participation from Y Combinator, 468 Capital and Pioneer Fund as well as the founders of 885 Capital. Proceeds will be used primarily to fund expansion in Saudi Arabia.
Launched in 2022 by Parthi Duraisamy and Karun Kurien, Alaan helps companies manage expenses through corporate cards, artificial intelligence-led automation and centralized dashboards. The company has processed more than 2.5 million transactions to date and counts Abu Dhabi’s AI firm G42 and grocery chain Lulu Group among its clients.
In a sign of growing investor interest in the expense management space, New York-based Ramp raised $500 million last week in a round that valued the fintech at $22.5 billion.
Alaan’s fundraise, following Dubai-based Xpanceo’s $250 million Series A last month, suggests that a rebound in venture capital investments in the Middle East that began earlier this year is continuing.
In the first half of 2025, startups in the region nearly doubled their fundraising to $1.35 billion, led by Saudi Arabia and the United Arab Emirates, according to data platform Magnitt. That growth stands in contrast to global emerging venture markets, where funding fell to $3.98 billion — the weakest first half since 2017.
Fintech remained the favored sector across the broader Middle East and North Africa region, with funding tripling year over year.
A Dubai-based fintech founded by two former McKinsey & Co. consultants has raised $48 million, underscoring continued investor confidence in Middle Eastern startups.
Alaan’s fundraise — one of the region’s larger Series A rounds — was led by Peak XV Partners, formerly Sequoia Capital India & Southeast Asia, it said in a statement. The fintech did not disclose its valuation.
The round also drew participation from Y Combinator, 468 Capital and Pioneer Fund as well as the founders of 885 Capital. Proceeds will be used primarily to fund expansion in Saudi Arabia.
Launched in 2022 by Parthi Duraisamy and Karun Kurien, Alaan helps companies manage expenses through corporate cards, artificial intelligence-led automation and centralized dashboards. The company has processed more than 2.5 million transactions to date and counts Abu Dhabi’s AI firm G42 and grocery chain Lulu Group among its clients.
In a sign of growing investor interest in the expense management space, New York-based Ramp raised $500 million last week in a round that valued the fintech at $22.5 billion.
Alaan’s fundraise, following Dubai-based Xpanceo’s $250 million Series A last month, suggests that a rebound in venture capital investments in the Middle East that began earlier this year is continuing.
In the first half of 2025, startups in the region nearly doubled their fundraising to $1.35 billion, led by Saudi Arabia and the United Arab Emirates, according to data platform Magnitt. That growth stands in contrast to global emerging venture markets, where funding fell to $3.98 billion — the weakest first half since 2017.
Fintech remained the favored sector across the broader Middle East and North Africa region, with funding tripling year over year.
Gulf shares rise on Fed easing hopes; Egypt hits record high | Reuters
Gulf shares rise on Fed easing hopes; Egypt hits record high | Reuters
Most Gulf equities tracked global stocks higher on Tuesday, as investors raised bets for interest rate cuts by the U.S. Federal Reserve, while a few positive corporate earnings also boosted sentiment.
Expectations that the U.S. central bank could ease monetary policy soon have risen after a weak U.S. jobs report revived worries over the health of the world's biggest economy.
Markets are now pricing in a 94% chance of a September rate cut, up from a 63% probability from before the data, according to CME's FedWatch Tool.
The Fed's decisions have a significant impact on the Gulf region's monetary policy, as most currencies there are pegged to the U.S. dollar.
The Qatari benchmark share index (.QSI), opens new tab advanced 0.9% to 11,284, its highest level in more than 2-1/2 years with all stocks barring one in positive territory. Shares in Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, gained 1.2% while telecom services provider Ooredoo (ORDS.QA), opens new tab climbed 3.5%.
Dubai's benchmark stock index (.DFMGI), opens new tab was up 0.7%, with all of its constituents rising. Emirates NBD (ENBD.DU), opens new tab, the emirate's largest lender, rose 1.9% and tolls operator Salik Company (SALIK.DU), opens new tab added 1.6%.
Elsewhere, Dubai's non-oil sector showed a solid recovery, with its PMI rising to 53.5 in July from 51.8 in June, driven by a sharper improvement in sales volumes.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.8%, lifted by a 3.1% rise in Saudi Basic Industries (2010.SE), opens new tab while ADES Holding (2382.SE), opens new tab surged 10%, its highest intraday percentage gain since listing in 2023.
Oil drilling group ADES has agreed to buy Oslo-listed rival Shelf Drilling (SHLF.OL), opens new tab for 3.9 billion Norwegian crowns ($379 million) in cash.
Among other gainers, Lumi Rental (4262.SE), opens new tab rose 3.5% after the auto rental firm posted a 17.8% increase in second quarter net profit.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up 0.3% after two straight sessions of losses. First Abu Dhabi Bank (FAB.AD), opens new tab, the UAE's largest bank, gained 2% and ADNOC Logistics (ADNOCLS.AD), opens new tab added 1.1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced for a fourth day and rose 1.6% to hit a record high at 35,254.
Eastern Company (EAST.CA), opens new tab soared 5.5% and Talaat Moustafa Group (TMGH.CA), opens new tab gained 0.7%.
Meanwhile, Egypt's non-oil private sector showed signs of stabilisation in July, with employment rising for the first time in nine months and a softer decline in output and new orders, S&P Global Egypt PMI report said.
Most Gulf equities tracked global stocks higher on Tuesday, as investors raised bets for interest rate cuts by the U.S. Federal Reserve, while a few positive corporate earnings also boosted sentiment.
Expectations that the U.S. central bank could ease monetary policy soon have risen after a weak U.S. jobs report revived worries over the health of the world's biggest economy.
Markets are now pricing in a 94% chance of a September rate cut, up from a 63% probability from before the data, according to CME's FedWatch Tool.
The Fed's decisions have a significant impact on the Gulf region's monetary policy, as most currencies there are pegged to the U.S. dollar.
The Qatari benchmark share index (.QSI), opens new tab advanced 0.9% to 11,284, its highest level in more than 2-1/2 years with all stocks barring one in positive territory. Shares in Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, gained 1.2% while telecom services provider Ooredoo (ORDS.QA), opens new tab climbed 3.5%.
Dubai's benchmark stock index (.DFMGI), opens new tab was up 0.7%, with all of its constituents rising. Emirates NBD (ENBD.DU), opens new tab, the emirate's largest lender, rose 1.9% and tolls operator Salik Company (SALIK.DU), opens new tab added 1.6%.
Elsewhere, Dubai's non-oil sector showed a solid recovery, with its PMI rising to 53.5 in July from 51.8 in June, driven by a sharper improvement in sales volumes.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.8%, lifted by a 3.1% rise in Saudi Basic Industries (2010.SE), opens new tab while ADES Holding (2382.SE), opens new tab surged 10%, its highest intraday percentage gain since listing in 2023.
Oil drilling group ADES has agreed to buy Oslo-listed rival Shelf Drilling (SHLF.OL), opens new tab for 3.9 billion Norwegian crowns ($379 million) in cash.
Among other gainers, Lumi Rental (4262.SE), opens new tab rose 3.5% after the auto rental firm posted a 17.8% increase in second quarter net profit.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up 0.3% after two straight sessions of losses. First Abu Dhabi Bank (FAB.AD), opens new tab, the UAE's largest bank, gained 2% and ADNOC Logistics (ADNOCLS.AD), opens new tab added 1.1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced for a fourth day and rose 1.6% to hit a record high at 35,254.
Eastern Company (EAST.CA), opens new tab soared 5.5% and Talaat Moustafa Group (TMGH.CA), opens new tab gained 0.7%.
Meanwhile, Egypt's non-oil private sector showed signs of stabilisation in July, with employment rising for the first time in nine months and a softer decline in output and new orders, S&P Global Egypt PMI report said.
#Saudi non-oil private sector adds jobs despite easing output growth - PMI | Reuters
Saudi non-oil private sector adds jobs despite easing output growth - PMI | Reuters
Saudi Arabia's non-oil private sector expanded robustly in July, albeit at a slower pace than the previous month, as job creation surged in response to strong domestic demand, the Riyad Bank Purchasing Managers Index report showed on Tuesday.
The headline PMI reading fell to 56.3 in July from 57.2 in June, remaining well above the 50.0 threshold that indicates growth in activity.
“Saudi Arabia’s non-oil economy remained on a solid growth track in July, supported by higher output, new business, and continued job creation," said Naif Al-Ghaith, Chief Economist at Riyad Bank.
Firms recruited staff to manage higher workloads and new orders. The survey noted another historically steep rise in employment, following June's record growth in job numbers over the past 14 years.
Output growth eased to its lowest rate since January 2022, as firms reported challenges such as higher competition and lower customer footfall. Additionally, new export orders fell for the first time in nine months, highlighting difficulties in gaining foreign clients.
Cost pressures softened slightly, with input price inflation slowing from the second-quarter average. However, labour costs continued to rise steeply as companies offered bonuses to retain workers.
Despite the slowdown, businesses remain optimistic about future activity, supported by resilient market conditions and strong client demand. However, overall optimism was the lowest recorded since July 2024.
Saudi Arabia's non-oil private sector expanded robustly in July, albeit at a slower pace than the previous month, as job creation surged in response to strong domestic demand, the Riyad Bank Purchasing Managers Index report showed on Tuesday.
The headline PMI reading fell to 56.3 in July from 57.2 in June, remaining well above the 50.0 threshold that indicates growth in activity.
“Saudi Arabia’s non-oil economy remained on a solid growth track in July, supported by higher output, new business, and continued job creation," said Naif Al-Ghaith, Chief Economist at Riyad Bank.
Firms recruited staff to manage higher workloads and new orders. The survey noted another historically steep rise in employment, following June's record growth in job numbers over the past 14 years.
Output growth eased to its lowest rate since January 2022, as firms reported challenges such as higher competition and lower customer footfall. Additionally, new export orders fell for the first time in nine months, highlighting difficulties in gaining foreign clients.
Cost pressures softened slightly, with input price inflation slowing from the second-quarter average. However, labour costs continued to rise steeply as companies offered bonuses to retain workers.
Despite the slowdown, businesses remain optimistic about future activity, supported by resilient market conditions and strong client demand. However, overall optimism was the lowest recorded since July 2024.
#UAE non-oil business growth slows amid geopolitical tensions, PMI shows | Reuters
UAE non-oil business growth slows amid geopolitical tensions, PMI shows | Reuters
Growth in the United Arab Emirates' non-oil business sector slowed to its weakest pace in more than four years in July, as geopolitical tensions weighed on demand, a survey showed on Tuesday.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) fell to 52.9 in July from 53.5 in June, marking its lowest level since June 2021. While still above the 50.0 mark that indicates growth, the rate of expansion was softer than the survey's long-run trend.
"New order volumes helped firms to expand, but this trend is declining, with the latest data indicating the softest rise in incoming new work in almost four years," said David Owen, Senior Economist at S&P Global Market Intelligence. "Should regional tensions ease, we may see a recovery in sales growth in the coming months."
The slowdown was largely driven by hesitancy among clients to commit to new spending due to geopolitical tensions in the region, alongside weaker tourism activity and trade disruptions. New orders increased, but at the slowest pace since mid-2021.
Despite the slowdown in demand, output continued to expand sharply as firms sought to prevent backlogs from rising further. However, employment growth eased, marking the weakest uplift in four months, as companies faced challenges in completing work on time.
Input cost pressures accelerated slightly, prompting businesses to raise their selling charges, although the increase was mild. Optimism for future activity remained, driven by hopes of strengthening demand levels, though confidence eased slightly amid global economic uncertainty and heightened competition.
Dubai's non-oil sector showed a solid recovery, with its PMI rising to 53.5 in July from 51.8 in June, driven by a sharper improvement in sales volumes.
Growth in the United Arab Emirates' non-oil business sector slowed to its weakest pace in more than four years in July, as geopolitical tensions weighed on demand, a survey showed on Tuesday.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) fell to 52.9 in July from 53.5 in June, marking its lowest level since June 2021. While still above the 50.0 mark that indicates growth, the rate of expansion was softer than the survey's long-run trend.
"New order volumes helped firms to expand, but this trend is declining, with the latest data indicating the softest rise in incoming new work in almost four years," said David Owen, Senior Economist at S&P Global Market Intelligence. "Should regional tensions ease, we may see a recovery in sales growth in the coming months."
The slowdown was largely driven by hesitancy among clients to commit to new spending due to geopolitical tensions in the region, alongside weaker tourism activity and trade disruptions. New orders increased, but at the slowest pace since mid-2021.
Despite the slowdown in demand, output continued to expand sharply as firms sought to prevent backlogs from rising further. However, employment growth eased, marking the weakest uplift in four months, as companies faced challenges in completing work on time.
Input cost pressures accelerated slightly, prompting businesses to raise their selling charges, although the increase was mild. Optimism for future activity remained, driven by hopes of strengthening demand levels, though confidence eased slightly amid global economic uncertainty and heightened competition.
Dubai's non-oil sector showed a solid recovery, with its PMI rising to 53.5 in July from 51.8 in June, driven by a sharper improvement in sales volumes.
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