Gulf

1. First yachts, then FII
2. Saudi FDI surprise
3. Abu Dhabi eyes fusion
4. Dubai’s airport economy
5. Israel normalization talks
6. ‘Finance COP’

The definitive Dubai travel guide, beyond the glamor and glitz.

FII invite-only pre-party in NEOM

The best parties at major events are always offsite. For next week’s Future Investment Initiative (FII), the hot ticket is nearly 1,000 miles away. A hand-picked group of “financiers, entertainers, and influencers” are paying a visit to the Red Sea yachting and golfing destination Sindalah Island, Bloomberg reported. The “seeing is believing” tour comes at a crucial time for Crown Prince Mohammed bin Salman’s NEOM mega-project: FII attendees will get a sales pitch aimed at attracting foreign investment to support the kingdom’s development programs.

Familiar FII speakers like BlackRock’s Larry Fink, Citigroup’s Jane Fraser, and Goldman Sachs’ David Solomon are expected back again this year. The draw at FII has been access to Saudi Arabia’s largesse, but this year’s focus on inbound investment has some rethinking their participation, Reuters reported. “Saudi (Arabia) has clearly told them, we know you want our money, but how are you participating in our future?” one executive said. “Most managers don’t have an answer to that.”

Saudi FDI beats goals

Foreign direct investment in Saudi Arabia surpassed its 2023 target by 16%, reaching $25.5 billion after the government adopted a new methodology for tracking inflows. The revision — which doubled the previous estimate, according to AGBI — brings the kingdom closer to its $100 billion annual FDI goal, part of efforts to reduce reliance on its sovereign wealth fund and oil exports to drive economic transformation.

An important element of Saudi Vision 2030 is developing local manufacturing and supply chains. These efforts were on display at the Energy Localization Forum this week, where SABIC and the Small and Medium Enterprise Bank said they would finance small- and medium-sized companies. Energy Minister Prince Abdulaziz bin Salman said the goal is to “localize the entire supply chain, from raw materials to the final product,” for the energy sector, which comprises 40% of Saudi GDP.

Analysis: Why Abu Dhabi bets on fusion

If nuclear fusion can be deployed at scale, it will decimate the oil industry, but Abu Dhabi has a strategy to claim a slice of the fusion pie, Tareq Alotaiba, a former UAE government official currently pursuing a master’s degree at Georgetown University, writes in his debut column for Semafor.

“It will take decades for enough countries to build enough reactors to take a significant share of fossil fuels’ power production,” Alotaiba wrote. If and when that happens, the UAE will benefit from making early moves to “secure its future in the fusion era.”

Aviation powers Dubai’s economy

Dubai’s economy revolves around its aviation giant, Emirates, and the city will remain a company town for the foreseeable future: That’s the takeaway from a new report (commissioned by Emirates) on the aviation sector in the UAE. Dubai International Airport — the world’s busiest international hub for a decade — anchors a sector that directly contributed 18% of GDP and nearly 10% of employment in 2023, according to the report, which was also commissioned by Dubai airport. If the tourism income that’s facilitated by aviation is included, the $37 billion industry accounted for more than a quarter of the city’s economy and a fifth of jobs in 2023.

Aviation growth is set to outpace the broader economy through 2030, driven by investments in capacity and Emirates’ expanding fleet of Boeing and Airbus aircraft.

Saudi-Israel normalization possible

Saudi Arabia and Israel could normalize relations this year, US Senator Lindsey Graham said after speaking with Israeli Prime Minister Benjamin Netanyahu. Graham told Reuters that Netanyahu supports a deal, and normalization under the Biden administration could facilitate congressional approval of a defense pact with Saudi Arabia — part of US security guarantees needed to secure the kingdom’s commitment.

While Saudi Crown Prince Mohammed bin Salman insists an independent Palestine must be a precursor to normalization, Graham is optimistic that this elusive goal is achievable. Diplomatic efforts to end the wars in Gaza and Lebanon are picking up after Israel killed the main leaders of Hamas and Hezbollah. Prince Mohammed met with Iran’s foreign minister in Riyadh and with US Secretary of State Antony Blinken twice in the past two weeks.

Al Suwaidi predicts ‘finance COP’

Money will be the theme of the COP29, one of the UAE’s top climate diplomats predicted. This is “the finance COP,” H.E. Majid Al Suwaidi, the CEO of Altérra, the UAE’s $30 billion climate-focused fund, told Semafor’s World Economy Summit in Washington, DC, on Thursday. The focus of the gathering in Azerbaijan next month will be on securing the funding needed to pay for many of the initiatives outlined at last year’s COP conference in Dubai, Al Suwaidi — who was director-general of COP28 — said.

The rise of new technologies like artificial intelligence means that “energy demand is going to way outstrip our ability to deliver that energy,” he added.

Show Business

• Abu Dhabi will increase its film and TV production subsidy from 30% to a minimum of 35% next year in an effort to grow its creative industry. The boost makes the emirate more competitive with Ireland and Canada in attracting Hollywood, Bollywood, and regional productions. — The National

Diplomacy

• Saudi Arabia held a naval exercise with Iran and other countries in the Sea of Oman, marking a rare instance of joint military cooperation. A Saudi defense ministry spokesman said no further exercises are planned. — AFP

Energy Transition

• Hydrogen-powered taxis have hit the streets of Jeddah following approval from the Transport General Authority for a pilot project. Toyota distributor Abdul Latif Jameel Motors is supplying the vehicles, while industrial gas maker AHG Group provided the fuel.

Checking In

• Air travel through the Middle East is still disrupted as carriers adapt their routes in anticipation of retaliatory attacks from Israel on Iran. Qatar Airways has suspended flights to and from Iran and Lebanon until further notice while Singapore Airlines, Lufthansa, and British Airways are detouring through Afghanistan’s airspace. — Anadolu Agency, Australian Broadcast Corporation

Visitors to Dubai often hear that there’s much more to do than gawp at the Burj Khalifa or take the photo-op camel ride. The natural follow-up: “Okay, what?” Further magazine’s city guide has the answers.

The self-described “acutely curated, insider-approved, not-afraid-to-get-a-little-gritty guide to the world’s shiniest city” is one of the best compilations yet, covering where to walk, stay, eat, and shop; and exploring the history, people, galleries, and day trips that make Dubai and the UAE one of the most-visited places in the world. Curated with help from UAE denizens such as novelist Avni Doshi and former culture and travel reporter for The New York Times — now turned novelist — Sarah Hamdan, there’s also a handy Google Map of their recs.

• A clean energy ‘supermajor’ wants to expand its megadeal.
• Billionaire John Paulson on Trump, tariffs, and the Treasury secretary job.
• The New York Times, under fire from Democrats, responds.