Happy Tuesday everyone!

Saudi Arabia’s $925B Public Investment Fund (PIF) is mandating a minimum 20% spending cut across its portfolio, affecting over 100 companies, including 50+ development firms, reported AGBI.

Meanwhile, Warner Bros. is strengthening its footprint by acquiring a stake in Dubai’s OSN, boosting its streaming presence across the region. Meanwhile, Temasek’s asset management unit, Seviora, is opening a new office in Abu Dhabi, signaling further expansion into the Middle East’s growing financial market.

Let’s dive in!

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Warner Bros. Takes Stake in Dubai’s OSN to Expand Mideast Streaming Presence

📰 What is it about?

• Warner Bros. Discovery is acquiring a minority stake in Dubai-based OSN Streaming Ltd. for $57 million, securing about one-third ownership.

• The deal, subject to regulatory approvals, strengthens Warner Bros.' footprint in the fast-growing Middle Eastern streaming market.

• OSN Streaming offers a mix of global and local content, including an exclusive HBO deal and Warner Bros.’ film catalogue.

• Both companies plan to invest in locally-produced content and explore content expansion and synergy opportunities.

💡 Why it matters?

• The Middle East’s entertainment sector is booming, driven by young, tech-savvy consumers with increasing disposable incomes.

• Regional players like OSN, Starzplay, and MBC Group are competing with global giants like Netflix and Amazon Prime Video.

• Warner Bros. is doubling down on local partnerships to avoid fragmentation in an already crowded streaming landscape.

• This move builds on Warner Bros.’ strategy after it fully acquired Turkey’s BluTV in 2023.

🔜 What’s next?

• OSN’s partnership with Warner Bros. could lead to an expanded content library and stronger regional productions.

• The investment might intensify competition in the Middle East’s streaming wars, challenging global and local rivals.

• Warner Bros. isn’t planning further M&A in the region for now, according to EVP Jamie Cooke—but future deals aren’t ruled out.

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💡 Why Choose ODEUM?

At ODEUM, we provide end-to-end media solutions to elevate your brand across multiple platforms.

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• Original Content Development: Conceptualizing and producing shows, short films, and series that engage and inspire.

• Studio Rental: Fully equipped production spaces designed for seamless content creation, offering state-of-the-art filming, podcasting, and photography setups to bring creative visions to life.

🔜 What’s next?

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Markets

Temasek’s Seviora Opens New Office in Abu Dhabi to Expand Middle East Presence

📰 What is it about?

• Temasek Holdings’ $54 billion asset management unit, Seviora, has opened a new office in Abu Dhabi, strengthening its presence in the Middle East.

• The office will be located in the Abu Dhabi Global Market (ADGM), a major financial hub in the city.

• Sadiq Hussain has been appointed as Seviora’s senior executive officer for the new Middle East office.

• This move follows a memorandum of understanding between Seviora and Mubadala Capital for potential co-investments and partnership opportunities.

💡 Why it matters?

• Abu Dhabi is rapidly becoming a leading financial hub in the Middle East, competing with Dubai and Riyadh for business dominance.

• The city is home to wealth funds managing close to $1.7 trillion, attracting major financial firms like BlackRock Inc.

• Seviora’s expansion into Abu Dhabi reflects growing interest in the region’s burgeoning investment opportunities, as it joins other firms setting up in the oil-rich emirate.

• The opening further strengthens Temasek’s network, complementing its existing offices in Singapore, India, China, and Indonesia.

🔜 What’s next?

• Seviora’s new office is part of its larger expansion strategy, looking to tap into investment opportunities across Asia and beyond.

• The firm’s growing presence in the Middle East may open doors for more regional co-investment partnerships, bolstering its strategic footprint.

• Abu Dhabi’s competition with Dubai and Riyadh for global business continues, with financial giants like BlackRock setting up operations in the emirate, signaling a shift in the regional financial landscape.

Saudi PIF Orders Deep Spending Cuts Across Over 100 Companies: AGBI

What is happening?

• Saudi Arabia’s sovereign wealth fund is slowing projects, triggering layoffs, and cutting contracts, sources told AGBI. The move follows a December board decision to reassess priorities amid rising fiscal pressures.

  Notably:

  • A $5B Neom contract was cancelled last-minute in December.

  • Some giga-project contractors and consultants have been told to scale back or slow work.

  • PIF-backed firms are laying off staff or not renewing contracts.

Why it matters:

• Vision 2030 projects face recalibration: No projects scrapped, but ambitions are being scaled down.

• Foreign investors may see more realistic opportunities, increasing private sector participation.

• Fiscal pressure is rising: Saudi faces a $27B budget deficit and relies on oil above $90 per barrel to break even.

What’s next?

• Private investment is now key: PIF is aggressively courting FDI, recently at the FII Priority Summit in Miami.

• More project funding shifts expected as PIF and government entities navigate budget constraints.

• Layoffs, supply chain disruptions, and contract cancellations may continue, impacting Gulf-based firms.

🔍In other news…

• China holds key position in Aramco’s investment strategy, CEO tells Beijing forum.

• Dubai mall operator Majid Al Futtaim's 2024 net profit at AED2.5 billion, a decline of 6% from a year ago.

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