👋 Good morning, Smashi Business Readers!

Today’s roundup covers major moves in the Middle East’s two biggest economies, Saudi Arabia and the UAE. Abu Dhabi’s CYVN Holdings sets its sights on McLaren’s automotive business, poised to expand its high-performance and luxury car portfolio. Meanwhile, Saudi Arabia stays the course on oil while simultaneously intensifying its clean energy investments — signaling a dual approach to energy security and sustainability. In healthcare, Saudi Arabia takes a significant step by localizing insulin production, aiming for enhanced pharmaceutical self-sufficiency and affordable care.

Let’s dive in!

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Abu Dhabi’s CYVN Holdings to Acquire McLaren’s Automotive Business

📰 What is it about?

• Abu Dhabi-based CYVN Holdings announced a preliminary agreement to acquire full ownership of McLaren’s automotive business and a non-controlling stake in McLaren Group. CYVN Holdings, an investment firm backed by Abu Dhabi, is partnering with Bahrain’s Mumtalakat, which recently gained full ownership of the McLaren Group, encompassing both McLaren Automotive and McLaren Racing. This acquisition is expected to enhance McLaren’s capital pool and bolster its engineering and EV technology, areas where CYVN brings substantial expertise.

  CYVN's growing footprint in smart mobility and EV technologies includes previous strategic investments in companies like NIO, Forseven, and Gordon Murray Technologies. This experience is anticipated to aid McLaren’s transition into electric and smart vehicle markets, aligning with CYVN’s goal to develop a global smart mobility platform.

💡 Why it matters?

• CYVN’s investment offers McLaren access to capital and cutting-edge technology crucial for the automaker’s electric vehicle (EV) plans. Given CYVN's expertise in EV and autonomous technologies, the partnership could significantly enhance McLaren’s capabilities in the growing electric and sustainable automotive sectors.

• CYVN’s collaboration with NIO, China’s leading EV maker, will bring NIO’s electric vehicles to the Middle East and North Africa (MENA) region via their joint venture, NIO MENA. This is a significant step in introducing EV infrastructure to the region and aligns with Abu Dhabi’s broader vision to be at the forefront of smart and sustainable mobility.

• CYVN and NIO plan to set up an R&D center in Abu Dhabi, focusing on autonomous driving and AI. This will not only support NIO’s global R&D but also establish Abu Dhabi as a technological innovation center for smart mobility in MENA.

🔜 What’s next?

• Through NIO MENA, CYVN aims to accelerate EV adoption and infrastructure in the region, setting the stage for more partnerships with global EV leaders. The establishment of an R&D center in Abu Dhabi will likely drive further advancements in autonomous vehicles and AI-powered mobility solutions, aligning with global industry trends.

• With CYVN’s backing, McLaren is well-positioned to expand its EV portfolio, drawing on new resources and expertise to develop high-performance electric vehicles that could solidify its market position amid the ongoing shift to sustainable transport.

• This partnership between CYVN Holdings and McLaren not only bolsters Abu Dhabi’s ambitions in the EV sector but also supports McLaren’s transformation toward a sustainable future, marking a pivotal move in the global automotive landscape.

📈 Markets

Saudi Arabia Stays Committed to Oil, Expands Focus on Clean Energy

📰 What is it about?

• Saudi Arabia’s Energy Minister Abdulaziz bin Salman affirmed the kingdom's commitment to boosting its oil production capacity to 12.3 million barrels per day. Speaking at the FII8 in Riyadh, he emphasized Saudi Arabia’s role in maintaining global energy stability, especially as the world navigates challenges around fluctuating energy demand and production declines.

• The kingdom’s long-term strategy includes increasing its gas production by 60% to support economic growth and energy demands through 2030.

  Despite Saudi Arabia's push for diversification, with a strong focus on renewable energy and clean hydrogen, the minister underscored the ongoing importance of oil production. He pointed out that global energy stability will likely depend on a steady supply from Saudi Arabia, particularly as other regions experience natural production declines.

💡 Why it matters?

• Saudi Arabia is working to become a global hub for clean hydrogen and renewable energy. The kingdom aims to increase its renewable energy capacity to 130 GW by 2030, driven by domestic and international demand growth.

• Saudi Arabia’s Public Investment Fund (PIF) is spearheading much of this transition, with partnerships in clean energy projects, including collaborations with China to develop green infrastructure and localize manufacturing for solar and wind power equipment.

• In July, PIF signed agreements with Chinese companies to establish manufacturing capabilities within Saudi Arabia for key renewable energy components, creating a supply chain to support the kingdom’s ambitious renewable energy targets. PIF, through its subsidiaries like Acwa Power and Badeel, is actively investing in renewable projects, with eight projects totaling 13.6 GW of capacity and over $9 billion in investments.

🔜 What’s next?

• Saudi Arabia’s expanded oil capacity aims to address energy security concerns while balancing its commitments to climate goals.

• Saudi Arabia’s emerging position as a global producer and exporter of clean hydrogenmay open new avenues for economic growth while contributing to global decarbonization.

• Collaborating with China enhances Saudi Arabia’s renewable energy sector, providing technology and infrastructure to support the Vision 2030 sustainability goals.

• As Saudi Arabia continues to lead in both oil production and renewable energy investment, it is positioning itself as a versatile energy supplier for the future, capable of meeting both traditional and sustainable energy demands on a global scale.

💭Quote of the day
“Great things in business are never done by one person.” - Steve Jobs, Former CEO of Apple

Localization of Insulin Production in Saudi Arabia

📰 What is it about?

• A preliminary agreement to localize insulin production in Saudi Arabia was signed at the Global Health Exhibition. The agreement includes key players such as the National Unified Procurement Company (NUPCO), Sudair Pharmaceuticals, and Sanofi, with support from government authorities like the Local Content and Government Procurement Authority (LCGPA) and the Government Expenditure & Projects Authority (EXPRO).

• It was endorsed by Ministers of Health, Investment, and Industry & Mineral Resources, signaling high-level support for healthcare localization.

💡 Why it matters?

• Self-Sufficiency: The initiative is part of Saudi Arabia’s Vision 2030 objectives to achieve self-sufficiency in essential healthcare products. Local insulin production will reduce reliance on imports, enhancing pharmaceutical security.

• Healthcare Advancements: Localizing the insulin supply chain is vital for addressing diabetes—a significant health challenge in the Kingdom. It aligns with Saudi Arabia's broader goals to create a robust healthcare infrastructure and improve preventive health measures.

• Economic Growth and Investment: The localization project is expected to stimulate the local economy by attracting investments into the health sector and creating job opportunities. Additionally, it will maximize government purchasing power by supporting local production over imports.

🔜 What’s next?

• Following the preliminary agreement, the involved entities, including NUPCO, Sudair Pharmaceuticals, and Sanofi, will begin the setup and operationalization of insulin production facilities in Saudi Arabia.

• The insulin initiative is expected to catalyze similar localization efforts within the pharmaceutical and healthcare industry in Saudi Arabia. This aligns with the health sector transformation under Vision 2030, focusing on achieving a self-reliant and diversified economy.

• The Global Health Exhibition will continue to be a platform for promoting investment in healthcare and showcasing Saudi Arabia’s advancements in digital health and medical technologies.

🔍In other news…

1. Prince Khaled bin Alwaleed reveals 5 investments in health technology: Arab News

2. Barclays is exploring a return to Saudi Arabia in a bid to capture a slice of the country's burgeoning capital markets, CEO C. S. Venkatakrishnan told Bloomberg at FII8.

3. Saudi PIF company leads $65 million funding round in Berlin-based chauffeur service providers Blacklane.

4. A UAE Investment firm thinks they can be Middle East’s Blackstone.

5. Qatar’s delivery app Pass raises $2.7 million.

6. Saudi Platform Ark Secures $1 Million in Pre-Seed Funding Led by Core Vision Investment

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