👋 Good morning, Smashi Business Readers!

The much-anticipated "Davos in the Desert" Future Investments Initiative’s (FII) eighth edition will kick off today in Riyadh, bringing a strong focus on Africa and paving the way for $30 billion in deals. Meanwhile, in the world of luxury tourism, Neom’s first exclusive island, Sindalah, has officially opened, marking a major milestone for Saudi Arabia's tourism sector. In other news, Lulu Retail Holdings PLC has begun its initial public offering subscription on the Abu Dhabi Exchange (ADX), offering investors new opportunities in the retail sector.

Let's dive right in! 👇

🌍 ‘Davos in the Desert’ FII8 Launches Today in Riyadh where Pre-Summit Spotlight was on Africa

📰 What is it about?

• Riyadh’s Future Investment Initiative (FII) Conference, known as “Davos in the Desert,” begins its eighth edition today at Riyadh’s King Abdulaziz International Conference Centre. Expected to host 8,000 participants from around the world, the summit will focus on technology, finance, and sustainable development. With $30 billion in deals anticipated, the event has already drawn over $120 billion in cumulative investments since its inception.

• A pre-summit New Africa Summit on Monday brought together business and political leaders to discuss Africa’s infrastructure, energy, and youth potential. Africa’s median age of 19 positions it as an emerging investment hub with unique opportunities that align well with FII’s objectives.

• With one of the youngest populations globally, Africa’s growing workforce is seen as both a challenge and an opportunity. The continent’s infrastructure and energy needs were central themes at the New Africa Summit, underscoring Africa’s potential as a key region for global investment.

💡 Why it matters?

• Originally free, FII’s new membership model now requires a $15,000 annual fee for access to flagship events and a content library, attracting 1,300 members globally.

• Additionally, 35 strategic partners have invested $2 million each, making FII a $90 million enterprise. CEO Richard Attias notes that this model positions FII as a premier global forum for investment discussions, attracting significant international participation.

🔜 What’s next?

• FII’s influential position will likely bring sustained interest in African and Middle Eastern markets, with major financial commitments expected across sectors. The $30 billion in deals anticipated during this year’s conference may solidify new partnerships.

• With its strategic location and FII’s growth, Riyadh is fast becoming a focal point for international investment and discussions on sustainable development, positioning the city as a bridge for collaboration between global and regional leaders.

📈 Markets

🌴 Sindalah: Neom's First Luxury Tourism Island Now Open 🏝️

📰 What is it about?

• Saudi Arabia has inaugurated Sindalah, a luxury island within the Neom mega-development, in the Red Sea. Opened on Sunday, the island is positioned as a premier destination for nautical and luxury travelers and will feature a marina, five-star hotels, fine-dining restaurants, high-end retail outlets, and a yacht club.

• Sindalah, envisioned as the gateway to Neom, showcases the kingdom’s ambitions to establish itself as a hub for luxury tourism as part of the Saudi Vision 2030 strategy.

💡 Why it matters?

• Sindalah represents the first completed project within the $500 billion Neom development. Positioned 5km off Saudi Arabia’s Red Sea coast, it’s not just a tourist spot but a flagship showcase for Neom’s vision, featuring state-of-the-art infrastructure, smart tourism, and luxury services.

• With an 86-berth marina and proximity to Mediterranean yachting routes, Sindalah aims to attract yacht owners and travelers from Europe, Saudi Arabia, and the wider Middle East. Additionally, its pristine Red Sea marine ecosystem, with over 1,000 unique species, makes it a prime spot for underwater adventure tourism.

• The island includes 440 rooms, 88 villas, 218 luxury serviced apartments, and high-end hotel brands like Four Seasons and Marriott’s Autograph Collection. Set to become a cultural and sporting hub, Sindalah’s amphitheater will host curated events and performances, with a beach club and an 18-hole golf club adding to its attractions.

🔜 What’s next?

• Although Sindalah has opened for invited visitors, it has yet to announce booking options for general tourists, which are expected to follow soon.

• Two hotels from Marriott’s Luxury Collection and an Autograph Collection resort are set to open by late 2024, each with unique features, including family-friendly villas, a spa, and gourmet dining.

• Sindalah will roll out a seasonal lineup of cultural events and sporting activities, which aim to enhance the visitor experience and position the island as a prominent location in the Red Sea tourism scene.

💭Quote of the day
‘If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.’ – J. Paul Getty

📈 Lulu Retail Holdings PLC Begins Subscription for IPO on ADX 💼

📰 What is it about?

• Lulu Retail Holdings PLC (Lulu), the leading full-line retailer in the Gulf Cooperation Council (GCC) region, has announced the price range and opened subscriptions for its Initial Public Offering (IPO) on the Abu Dhabi Securities Exchange (ADX).

• The offer price is set between AED 1.94 and AED 2.04 per share, aiming for a total capital raise of AED 5.01 billion to AED 5.27 billion ($1.36 billion to $1.43 billion), with a resulting market capitalization of between AED 20.04 billion and AED 21.07 billion ($5.46 billion to $5.74 billion). Subscription began today and will close on 5 November 2024.

• Lulu is offering 2.58 billion shares, representing 25% of its total shares. The final offer price will be determined through a book-building process on 6 November 2024, and the company’s shares are expected to start trading on 14 November 2024

💡 Why it matters?

• Lulu Retail is the largest retailer in the GCC by market share, with a rapidly expanding footprint, particularly in Saudi Arabia. Over 600,000 shoppers visit Lulu stores daily across multiple formats.

• Lulu plans to pay 75% of its annual distributable profits as dividends, with semi-annual payouts. This structure is attractive to income-seeking investors.

• Lulu has secured AED 753 million ($205 million) from prominent investors, including Abu Dhabi Pension Fund, Bahrain’s Mumtalakat, Emirates International Investment Company (EIIC), and Oman Investment Authority. These investors will purchase shares and be under a 180-day lock-up following the IPO, reflecting confidence in Lulu's long-term growth.

• With the IPO open to UAE retail investors, professional investors, and Lulu executives, the company is also expected to attract significant international investment interest.

🔜 What’s next?

• The final offer price will be set on 6 November 2024, and Lulu Retail’s shares are scheduled to start trading on ADX on 14 November 2024, pending regulatory approval.

• A dividend payout for the six months ending 31 December 2024 is expected in the first half of 2025.

• Lulu continues to expand, leveraging favorable demographics in its six markets and investing in its 240-store network, private label products, and e-commerce platforms. CEO Saifee Rupawala emphasized that this IPO will support Lulu’s growth strategy, enhancing customer loyalty, and operational efficiencies.

🔍In other news…

1. Saudi may have a new plan after Vision 2030, according to PWC.

2. Oil prices dived more than 5% after Israel refrained from attacking Iran’s refining facilities in their latest attack.

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