👋 Good morning, Smashi Business Readers!

Here’s your daily dose of business insights and investment updates: The Abu Dhabi Investment Authority (ADIA) makes history, joining the exclusive $1 trillion club of sovereign wealth funds, solidifying its global influence. Abu Dhabi’s MGX, the AI-focused fund backed by Mubadala and G42, leads a landmark $10 billion funding round for Databricks, bolstering Abu Dhabi's growing AI leadership. Meanwhile, Anghami Inc., the Lebanon-founded music streaming platform, has secured a $55 million investment from OSN Group, including an initial $12 million through a convertible note program.

Stay tuned as we unpack these transformative deals and their impact on regional and global markets.

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ADIA Joins the Exclusive $1 Trillion Club of Sovereign Wealth Funds

📰 What is it about?

• The Abu Dhabi Investment Authority (ADIA) has achieved a significant milestone, becoming the first Middle Eastern sovereign wealth fund to manage over $1 trillion in assets, joining an elite group that includes:

  1. Norway’s Government Pension Fund Global: $1.8 trillion

  2. China Investment Corporation (CIC): $1.3 trillion

  3. China’s SAFE Investment Center: $1.09 trillion

  ADIA’s assets, valued at $1.06 trillion, reflect its diversified portfolio, driven by investments in private credit, global equities, and strategic infrastructure projects worldwide.

💡 Why it matters?

• Economic Influence: ADIA's milestone underscores Abu Dhabi’s economic strength, enhancing the UAE’s global financial influence while showcasing the region’s ability to manage large-scale, high-return investments.

• Strategic Diversification: ADIA’s focus on private equity, fixed income, and alternative investments aligns with its strategy of maintaining long-term growth while mitigating risks.

• Global Collaborations: ADIA’s collaborations, such as its partnership in Indonesia's toll road networks and its expansion into India’s GIFT City, illustrate its commitment to infrastructure development in emerging markets.

• Regional Leadership: As the first MENA fund in the $1 trillion club, ADIA sets a benchmark for other regional investment entities, reinforcing the UAE’s position as a global investment powerhouse.

🔜 What’s next?

• Increased US Exposure: ADIA plans to channel more capital into the U.S. market, particularly in private credit and infrastructure sectors, capitalizing on growth opportunities and stability.

• Focus on Technology and Innovation: Continued investments in AI, technology, and emerging industries will position ADIA as a key player in future-forward sectors.

• Asia and Global Expansion: With ventures in Indonesia and India, ADIA is expected to deepen its presence in Asia, while cautiously navigating opportunities in China.

• Regional Inspiration: ADIA’s achievement may inspire GCC sovereign wealth funds to accelerate their diversification strategies, fostering a more competitive investment landscape in the region.

Markets

MGX Takes Part in $10 Billion Databricks Funding, Strengthening Abu Dhabi’s AI Leadership

📰 What is it about?

• Abu Dhabi’s MGX, backed by Mubadala and G42, has spearheaded a groundbreaking $10 billion investment in Databricks, the US-based AI and data analytics powerhouse. This deal, which values Databricks at $62 billion, marks one of the largest venture capital rounds in history.

• Launched in March 2024, MGX aims to be one of the largest AI-focused investment firms, with a target of managing $100 billion in assets. The Databricks funding follows MGX’s high-profile investments in OpenAI and its ongoing discussions to fund Elon Musk’s xAI.

• Databricks plans to use the funds to retain top AI talent, develop innovative AI products, and pursue mergers and acquisitions, further cementing its leadership in the global AI ecosystem.

💡 Why it matters?

• UAE's Growing Influence in AI: MGX’s involvement in such landmark deals highlights Abu Dhabi’s ambition to become a global leader in advanced technology investments.

• Transforming the Global AI Landscape: The $10 billion investment reinforces AI's importance in shaping industries worldwide, enabling innovations in data-driven decision-making and generative AI.

• Elevating Databricks’ Role in AI: Databricks’ platform empowers enterprises to adopt scalable AI solutions, enhancing productivity and competitiveness across sectors like healthcare, finance, and manufacturing.

• Talent and Innovation Race: By investing in top AI talent and groundbreaking products, MGX and Databricks are positioning themselves at the forefront of the increasingly competitive AI sector.

• Economic Diversification for Abu Dhabi: This deal aligns with the UAE’s strategy to reduce reliance on oil revenue by investing in transformative, high-growth industries like artificial intelligence.

🔜 What’s next?

• MGX’s Expansion: MGX is expected to continue leading investments in AI, with its focus set on reaching $100 billion AUM and supporting key players like OpenAI and xAI.

• Databricks Growth: Databricks will likely expand its market share, leveraging the new capital for talent acquisition, innovation, and potential strategic acquisitions in the AI space.

• UAE’s Role in AI Leadership: Abu Dhabi, through MGX, will solidify its position as a global AI hub, attracting investments, partnerships, and cutting-edge technology developments.

• Accelerating AI Adoption: With MGX’s backing, the UAE can drive regional and global adoption of AI solutions, spurring economic growth and technological innovation across diverse sectors.

Anghami Secures $55M Investment from OSN to Lead MENA's Digital Entertainment Revolution

📰 What is it about?

• Anghami Inc., the Lebanon-founded music streaming platform, has secured a $55 million investment from OSN Group, including an initial $12 million through a convertible note program. This funding strengthens the strategic partnership between Anghami and OSN+, established in April 2024, which merged Anghami's audio expertise with OSN+’s video streaming dominance.

  The collaboration has resulted in:

  • A rebuilt OSN+ platform with 4K Premium features like Dolby Atmos and Dolby Vision.

  • 41% growth in video streaming subscribers from April to October 2024.

  • Enhanced AI-powered recommendation systems for better content discoverability.

  With this investment, OSN+ now holds a majority stake (55.45%) in Anghami, further solidifying their combined influence in MENA's digital entertainment space.

💡 Why it matters?

• Consolidation of MENA's Entertainment Industry: The partnership between Anghami and OSN+ represents a transformative step in merging music and video streaming services, creating a unified media ecosystem for MENA audiences.

• Growth Momentum: The funding allows Anghami and OSN+ to scale their content library, integrate cutting-edge technologies, and improve the user experience, making them formidable competitors in a crowded streaming market.

• MENA Leadership in Streaming: This move solidifies the platforms' dominance in a rapidly growing digital entertainment sector, driven by increasing internet penetration and tech-savvy consumers in the region.

• Innovation Through AI and Next-Gen Tech: The investment is set to drive AI-powered personalization and next-gen streaming technologies, ensuring users receive a tailored entertainment experience.

• Stronger Financial Position: The funding not only supports expansion but also bolsters the company's financial health, making it more competitive globally, especially as Anghami is listed on NASDAQ.

🔜 What’s next?

• Expanded Content Offerings: Anghami and OSN+ will likely diversify their content, including exclusive regional productions and international acquisitions, to cater to a broader audience.

• Focus on AI Innovations: Enhanced AI-driven recommendations and personalization tools will provide users with more engaging and relevant content experiences.

• Regional Market Expansion: The platforms will aim to strengthen their presence in untapped MENA markets, leveraging Anghami’s audio dominance and OSN+’s video expertise.

• Further Strategic Partnerships: The success of the OSN-Anghami collaboration might encourage partnerships with other regional or global entertainment players to expand their reach and influence.

• Technology-Driven Enhancements: Investments in streaming infrastructure, such as improved video quality and interactive features, will set new benchmarks for digital entertainment in the region.

🔍In other news…

1. Careem has introduced its ultra-fast grocery delivery service in Abu Dhabi, promising fresh essentials at residents’ doorsteps within 20 minutes.

2. Jordan-based InvoiceQ has raised $1.2 million in a pre-Series A funding round.

3. Gulf markets saw stocks dive on Thursday, following in the footsteps of global markets after Fed rate cut.

4. Dubai’s $5.6B Blue Metro Line set to launch on 9.9.2029.

5. Nissan’s Middle East sales surge: 40% of cars sold start online.

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