#UAE Aluminum Maker Seeks Investors for $6 Billion US Plant (1) - Bloomberg

UAE Aluminum Maker Seeks Investors for $6 Billion US Plant (1) - Bloomberg

Emirates Global Aluminum is looking for equity partners for its planned aluminum plant in the US, according to people familiar with the matter.

The aluminum producer, one of the world’s largest, is in talks with potential investors for a smelter it plans to build in Oklahoma, said the people, who declined to be named discussing private information. It’s unclear how much EGA aims to raise, they said.

Mitsubishi Corp. is among the prospective investors and discussions between the two companies are at an early stage, said one of the people. Spokespeople for EGA and Mitsubishi declined to comment.

EGA, which is owned by Mubadala Investment Co. of Abu Dhabi and Investment Corporation of Dubai, hired Evercore Inc. as financial adviser, according to an investor document seen by Bloomberg News. A spokesperson at Evercore hasn’t responded to a request for comment.

President Donald Trump has been pushing for foreign investment to bolster jobs and industry, including commitments from Gulf states including the United Arab Emirates, Qatar and Saudi Arabia. Trump also required Japan’s Nippon Steel Corp. to spend billions of dollars to secure its takeover of United States Steel Corp.

The EGA plant is expected to require $5 billion to $6 billion of capital investment and produce about 750,000 tons of primary aluminum a year, according to the investor document. The project is known internally as “EGA Inola,” said one of the people. EGA announced its intention to build the plant in May, as part of a broader investment pledge by the UAE.

Aluminum prices have surged this year after Trump raised tariffs, saying he wanted to reduce the US’s reliance on foreign supplies. Instead, the levy has thrown the local market into disarray, disrupting the integrated North American metals supply chain and driven up costs for consumers.

EGA’s search for equity partners also comes as competition for electricity intensifies in the US as the boom in data centers requires a massive consumption of power to run artificial intelligence.

Power accounts for more than half the cost of producing aluminum. EGA has said construction of the Oklahoma plant depends on securing “a competitive long-term” power agreement.

Construction is slated to start in late 2026, with initial metal production expected by the end of the decade, according to the investor document.

If built, the Oklahoma smelter would help reduce US reliance on imported aluminum; the country depended on imports for about half of its aluminum consumption last year, according to the US Geological Survey.

Travis Kalanick’s CloudKitchens Said to Delay Mideast Unit’s IPO - Bloomberg

Travis Kalanick’s CloudKitchens Said to Delay Mideast Unit’s IPO - Bloomberg

CloudKitchens, a startup run by former Uber Technologies Inc. Chief Executive Officer Travis Kalanick, has delayed plans to list its Middle Eastern business, according to people familiar with the matter.

The ghost kitchen company, which is backed by Saudi Arabia’s sovereign wealth fund, is instead planning to focus on options including a private placement, some of the people said, requesting anonymity to discuss confidential information.

CloudKitchens had been eying a dual-listing in Abu Dhabi and Saudi Arabia which was expected as early as 2026, Bloomberg News previously reported. Banks including Goldman Sachs Group Inc., JPMorgan Chase & Co., SNB Capital and First Abu Dhabi Bank PJSC were working with the firm on the first-time share sale.

The plans for a listing could be revived at some point after the potential private placement is concluded, but there is no definite timeline, according to some of the people.

The company had been targeting an IPO valuation of roughly $2 billion and had begun preliminary discussions with public-market investors, the people said.

Representatives for CloudKitchens did not respond to requests for comment.

After four standout years, the Middle East’s IPO boom is slowing down amid tougher valuation demands from investors and a revival of share sales in the US and Asia.

Listing proceeds in the Gulf have slipped to roughly $6 billion this year, less than half the level a year ago and the weakest since the pandemic. The slump is most pronounced in Saudi Arabia, where lower oil prices are fanning concerns of a slowdown in government spending and dragging on stocks. The kingdom’s main stock index is among this year’s laggards in emerging markets, and a majority of the year’s debuts are trading below offer.

Ghost kitchens - shared cooking sites built for delivery - first appealed to startups seeking a low-cost way onto delivery apps. The model boomed during the pandemic as bigger restaurant groups tested it to offset lost dine-in sales, though many of those efforts have since faded.

CloudKitchens has strong ties to the Middle East, with its regional arm incorporated in Abu Dhabi and a $400 million investment from Saudi Arabia’s Public Investment Fund in 2019. Founder Travis Kalanick was already known to the PIF, which put $3.5 billion into Uber a year before his 2017 ouster.

It rents kitchen space to restaurants and adds services like delivery coordination and maintenance. In the Middle East’s crowded delivery market, it operates KitchenPark sites across the UAE, Saudi Arabia and Kuwait.

#Qatar bets on cheap power to catch up in Gulf AI race | Reuters

Qatar bets on cheap power to catch up in Gulf AI race | Reuters

Qatar is banking on its abundant, low-cost energy to make up for lost time in the Gulf's artificial intelligence race, hoping that cheap power and deep pockets will help it catch up with regional rivals that have already secured a head start.

The launch of Qai, backed by the country's $526 billion sovereign wealth fund and a $20 billion joint venture with Brookfield , marks Qatar's most ambitious move yet into a sector that is reshaping global technology and economics.

It joins massive investments in Saudi Arabia, and Abu Dhabi and Dubai in the United Arab Emirates, as part of the region's broader efforts to diversify away from oil revenues.

But while energy advantage is a powerful lure for hyperscalers - the cloud giants such as Google, Microsoft and Meta driving AI adoption - analysts say the Gulf's ambitions face structural hurdles that go beyond infrastructure.

OBSTACLES

To become significant players in AI, Gulf states must navigate a thicket of challenges: replicating Western-style data governance, securing scarce advanced chips under U.S. export controls, and attracting top-tier talent in a fiercely competitive global market.

These factors, rather than capital alone, will determine whether the region can translate its financial firepower into meaningful influence in the AI ecosystem.

"The key component there we believe would be Qatar's ability to emulate the American policy on data privacy laws ... when you look around the world at the moment, the single biggest hindrance to significant AI deployment is the regulatory piece," said Stephen Beard, global head of data centres at Knight Frank.

Qatar has disclosed few details about Qai, but its timing reflects surging demand for AI infrastructure as companies bet on the technology to drive efficiency and cut costs.

"The compute demand is so massive that any new infrastructure buildout in an energy-abundant Qatar that fronts financing is welcomed news for American hyperscalers ... In this phase of the AI buildout, there's room for multiple players,” said Mohammed Soliman, senior fellow at the Middle East Institute in Washington.

However, analysts warn that capturing hyperscaler demand will require sustained investment and policy alignment over many years.

"We expect $800 billion to be spent on the AI data centre buildout in the Middle East over the next two years," said Dan Ives, analyst at Wedbush.

CHEAPER ELECTRICITY

Qatar's competitive edge lies in its low-cost electricity, which could offset the region's high cooling costs in a desert climate. Emirates NBD notes Middle East PUE ratings - a measure of data centre energy efficiency - average 1.79 versus 1.56 globally.

Qatar, Saudi Arabia and the UAE have lower electricity costs compared to the U.S.

Beard estimates Qatar could become a 1.5 to 2 gigawatt market by 2030 if it sustains cheap power and accelerates development. By comparison, Saudi Arabia's Humain aims for 6 GW by 2034, while the UAE's G42 is building the first phase of a 5-GW AI campus, set to rank among the world’s largest outside the United States.

Qatar's progress will be notable if it reaches 500 megawatts by 2029, said Jonathan Atkin, RBC's global head of communications infrastructure, adding that utilisation rates will matter as much as capacity.

The UAE currently hosts 35 data centres, Saudi Arabia 20, and Qatar five, according to Emirates NBD. The U.S. is home to more than 5,000.

The UAE has the highest number of current data centers, followed by Saudi Arabia and Qatar.

With its sovereign wealth, Qatar brings financial muscle but faces a steep climb against entrenched rivals.

"I think it is fair to say Qatar/Doha is the late entrant in a four-horse race," said Counterpoint Research director Marc Einstein, referring to Saudi Arabia and the UAE's Abu Dhabi and Dubai. "It does have some advantages... but in terms of volumes and scale, Qatar's neighbours are in a much better position."

Beyond infrastructure, compliance is critical. Humain and G42 must adhere to strict U.S. rules on chip usage to secure U.S. tech giant Nvidia's (NVDA.O), opens new tab most advanced Blackwell processors. Qai will need similar assurances to Washington.

"The U.S. wants a clear line of sight into where every chip is, who is using it, and what networks it touches. That means detailed reporting, on-the-ground checks, strict rules for technicians from high-risk countries ... It's something the U.S. will be watching closely over time," Soliman said.

Action Energy eyes regional expansion after #Kuwait stock market listing | Reuters

Action Energy eyes regional expansion after Kuwait stock market listing | Reuters

Oilfield services provider Action Energy Company (ALFTAQA.KW), opens new tab plans to expand regionally while maintaining a strong focus on its home market, its chairman said on Wednesday, after the company's shares began trading on Kuwait's premier stock market.

Founded in 2015, AEC provides drilling, exploration and production, gas injection and maintenance services for oil and gas facilities, wells, refineries and petrochemical plants.

The company has "the financial strength to pursue both local and regional growth as part of its strategy", Chairman Sheikh Mubarak Abdullah Al-Sabah said at a press conference following the start of trading, without naming specific countries targeted for expansion.

The company will continue to prioritise Kuwait, where rising oil production capacity presents major opportunities for oilfield services firms, he added.

AEC shares were priced in its initial public offering at 212 Kuwaiti fils each. They rose as high as 260 fils before ending at 240 fils.

National Investments Company (NINV.KW), opens new tab of Kuwait acted as exclusive listing adviser and subscription agent.

($1 = 0.3068 Kuwaiti dinars)

Gulf bourses fall ahead of US inflation data; #Saudi hits 2-year low | Reuters

Gulf bourses fall ahead of US inflation data; Saudi hits 2-year low | Reuters

Gulf equities ended lower on Wednesday as investors stayed cautious ahead of more U.S. economic signals that could clarify the Federal Reserve's policy outlook, after a closely watched jobs report delivered a mixed picture of the labour market.

Markets are awaiting comments later in the day from several influential Fed officials, as well as U.S. consumer price inflation data for November due on Thursday, which could further shape expectations for the timing and pace of interest-rate moves.

Gulf markets tend to track shifts in U.S. monetary policy expectations as most regional currencies are pegged to the dollar.

The Qatari benchmark index (.QSI), opens new tab extended its losing run to four sessions, closing 0.7% lower as nearly all stocks declined. Industries Qatar (IQCD.QA), opens new tab fell 2%, while Qatar National Bank(QNBK.QA), opens new tab, the region's largest lender, shed 1.3%.

Saudi Arabia's benchmark stock index (.TASI), opens new tab slipped 0.4% to 10,414, its lowest close in more than two years, with most sectors in negative territory. Saudi National Bank (1180.SE), opens new tab dropped 1.6%, while oil major Saudi Aramco (2222.SE), opens new tab eased 0.6%. Tihama (4070.SE), opens new tab tumbled 5% after terminating an acquisition deal for Dan Diamond Real Estate Development Co.

"The mood was tempered by upcoming Federal Reserve members' speeches today and crucial inflation data tomorrow, which continued to weigh on regional sentiment," said Milad Azar, market analyst at XTB MENA.

"Markets remain underpinned by solid fundamentals that could support the upward trend once global headwinds diminish and sentiment improves."

The Abu Dhabi benchmark index (.FTFADGI), opens new tab fell for a fourth straight session, ending 0.3% lower, with most sectors in the red. Aldar Properties (ALDAR.AD), opens new tab dropped 2.3% and ADNOC Drilling (ADNOCDRILL.AD), opens new tab slid 2.4%.

Abu Dhabi Ports (ADPORTS.AD), opens new tab rose 0.7% after the ports operator signed an agreement with Tajikistan's AVESTO Group to form a joint venture offering integrated logistics and freight-forwarding services across the country.

Dubai's benchmark stock index (.DFMGI), opens new tab was little changed. Emaar Properties (EMAR.DU), opens new tab fell 1%, while Mashreqbank(MASB.DU), opens new tab gained 2%.

In Kuwait, oilfield services provider Action Energy (ALFTAQA.KW), opens new tab climbed 13% to 239 fils per share on its market debut, versus an offer price of 212 fils.

Kuwait's benchmark index (.BKP), opens new tab was down 0.5%. 

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab extended losses for a second session, ending down 1.2% as most sectors weakened. Commercial International Bank (COMI.CA), opens new tab fell 2.8% and Eastern Company (EAST.CA), opens new tab slipped 2%.