meed-logo

line1 line2 line3
SIGN IN / REGISTER

Abu Dhabi’s MGX signs up for $500bn Stargate project

23 January 2025

Register for MEED's 14-day trial access 

Abu Dhabi-based artificial intelligence (AI)-focused fund MGX has teamed up with US technology firms Oracle and ChatGPT creator OpenAI, and Japan's Softbank, to form the Stargate project, which aims to invest $500bn to build AI infrastructure in the US.

On 22 January, US President Donald Trump announced the project as "the largest AI infrastructure project by far in history".

Backed by Abu Dhabi sovereign wealth fund Mubadala, MGX was formed in 2024.

MGX aims to build $100bn in assets under management within a few years, along with US-headquartered Global Infrastructure Partners and Microsoft, the fund's key partners.

In September 2024, it was announced that technology investment platform Global AI Infrastructure Investment Partnership aims to invest in new and expanded data centres, chiefly in the US, to meet the growing demand for computing power, as well as energy infrastructure to create new sources of power for these facilities.

The same month, Sheikh Tahnoon Bin Zayed Al-Nahyan, deputy ruler of Abu Dhabi and national security adviser, and Jake Sullivan, US national security adviser, sealed an agreement on the common principles for cooperation on AI in Washington, following a meeting between UAE President Mohammed Bin Zayed Al-Nahyan and then-US President Joe Biden.

No money

Following the launch of the Stargate project, Tesla co-founder and head of the newly formed US Department of Government Efficiency, Elon Musk, who was kept out of the project, remarked in a social media post that the joint venture "don't [sic] actually have the money ($500bn)".

He followed up by saying that Softbank had well under $10bn secured.

Softbank's Masayoshi Son pledged to invest $100bn in the US in December.

The Stargate project's planned investment is greater than the investment in data centres planned by Emirati billionaire Hussain Sajwani, who together with President Trump, announced a plan to invest at least $20bn over four years in building data centres in several US states.

On 13 January, days before President Trump took office, the White House issued a brief of a regulation by the Department of Commerce imposing controls on the export of advanced computing integrated circuits.

The regulation's final draft splits countries into three tiers. Chip exports to the top-tier countries, comprising 18 of the closest allies of the US, are "without limit".

According to reports, the third tier comprises countries of concern, including Macau (China) and Russia.

All other nations and states, including those in the GCC, are presumed to be mid-tier countries, where a cap of approximately 50,000 graphics processing units (GPUs) between 2025 and 2027 will apply.

Individual companies from these countries will be able to achieve higher computing capability if they comply with US regulations and obtain validated end-user status.

The White House brief is no longer available online, but a copy of the regulation can still be found in the Federal Register, the US government's daily journal.  

https://image.digitalinsightresearch.in/uploads/NewsArticle/13319056/main2012.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • IHC deepens India links with $11.5bn aluminium venture

    3 July 2026

    Abu Dhabi’s International Holding Company (IHC) has struck its third major partnership with India’s Adani Group in a year, signing an agreement to co-develop an $11.5bn greenfield aluminium complex in the eastern Indian state of Odisha.

    Under a memorandum of understanding signed with the Odisha state government on 2 July, Adani Enterprises (AEL) and International Resources Holding (IRH), the natural resources investment platform IHC operates through its 2PointZero subsidiary, will form a 50:50 joint venture to build an integrated alumina and aluminium complex. The project comprises a 4-million-tonne-a-year (t/y) alumina refinery, a 2 million t/y aluminium smelter, a 4,000MW captive power plant and a 1 million t/y downstream manufacturing park.

    The deal marks Odisha’s largest foreign direct investment proposal to date and what the partners describe as India’s largest single foreign investment in the metallurgy sector. It is expected to create about 53,500 jobs, split between roughly 35,000 during construction and 18,500 in ongoing mining, refining, smelting and manufacturing operations once the complex is running.

    The tie-up extends a fast-growing relationship between IHC and Adani that began with a renewable energy joint venture between IHC subsidiary ePointZero and Adani Green Energy earlier this year. For IHC, which has built a $233bn portfolio spanning more than 1,300 subsidiaries across technology, infrastructure, financial services and consumer sectors, the Odisha project deepens a strategy of using IRH as a vehicle to secure positions across the minerals value chain underpinning the energy transition, moving beyond passive investment into direct industrial development.

    Odisha holds some of India’s largest bauxite reserves and is already a significant alumina and aluminium producer. State officials cast the project as central to plans to position the region as a global manufacturing hub, tying it to the state’s Samruddha Odisha 2036 development programme and the national Viksit Bharat 2047 agenda.

    The project will proceed in two phases. Following the MoU signing, AEL and IRH said they would move to land acquisition, statutory approvals and infrastructure planning alongside the Odisha government.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17539363/main.png
    Colin Foreman
  • Contractor wins Qiddiya Speed Park package deal

    3 July 2026

     

    Riyadh-based contractor El-Seif Engineering Contracting has won a contract to build the Exclusive Viewing Lounge (EVL) project in Qiddiya Entertainment City.

    Saudi gigaproject developer Qiddiya Investment Company (QIC) awarded the contract.

    The EVL comprises a four-storey structure designed for race-day viewing and guest hospitality. It will include dedicated spectator viewing areas, indoor lounge spaces, guest amenities and back-of-house service areas to support operations.

    Local firm Ammico Contracting carried out the project’s enabling works.

    The EVL is part of the Speed Park project at Qiddiya, which El-Seif Engineering Contracting and UAE-based Alec are jointly executing, as previously reported by MEED. The wider scope includes the construction of buildings around the racetrack.

    The racetrack is being delivered by local United Maintenance & Contracting Company (Unimac). In February 2024, MEED exclusively reported that QIC had awarded an estimated SR1.8bn ($480m) contract for the racetrack and associated infrastructure at Qiddiya’s Speed Park.

    The contract scope includes the track build and all infrastructure works, including electrical networks, storm drainage systems, water and sewer networks, landscaping, and associated underground and above-ground structures, along with related civil works.

    The Speed Park is being built around a Federation Internationale de l’Automobile (FIA) Grade 1 racetrack as part of the resort core in Qiddiya Entertainment City. Once complete, the circuit will be capable of hosting Formula 1 Grand Prix and motorcycling MotoGP races. 

    The Speed Park is one of several major projects within the greater Qiddiya development. Other projects include an e-games arena, the Prince Mohammed Bin Salman Stadium, a horse race venue, a performing arts centre, the Dragon Ball and Six Flags theme parks, and Aquarabia.

    The project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom. According to GlobalData, leisure tourism in Saudi Arabia has experienced significant growth in recent years.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17538940/main.jpg
    Yasir Iqbal
  • Local contractor wins DIFC tower contract

    3 July 2026

    Dubai-based contractor Al-Basti & Muktha has been awarded a contract to build the DIFC Heights Tower mixed-use development.

    The state-backed Dubai International Financial Centre (DIFC) awarded the contract.

    The project comprises a 43-storey building with 366 residential units, office space, and retail and food-and-beverage outlets. Construction is expected to commence shortly, with completion slated for 2029.

    Enabling works are under way and are being undertaken by Germany’s Bauer.

    Lebanese engineering firm Dar Al-Handasah is the lead and supervision consultant, while UAE-based Time is the project manager. Canadian engineering firm AtkinsRealis is the architect and concept designer, and local firm Omnium is the cost consultant.

    In a statement, DIFC said the project is being developed on the final remaining plot within its original land bank in the Gate District.

    Earlier this year, Dubai announced a AED100bn ($27bn) expansion of DIFC through the creation of the DIFC Zabeel District. A statement from the Government of Dubai Media Office said the new district will add more than 7 million square feet (sq ft), bringing total gross floor area to 17.7 million sq ft.

    The Zabeel District is expected to more than double DIFC’s capacity to more than 42,000 businesses, support a workforce exceeding 125,000, and allocate more than 1 million sq ft for future technologies and artificial intelligence. Planned in six phases, the expansion is scheduled to open to the public in 2030, with the masterplan due for completion in 2040.

    A bridge will link the DIFC Zabeel District to the existing DIFC Gate District.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17538278/main.jpg
    Yasir Iqbal
  • Iraq and Turkiye discuss oil pipeline deal

    3 July 2026

    Turkiye’s Energy Minister Alparslan Bayraktar has met with senior Iraqi oil and foreign ministry ‌officials to discuss energy cooperation, including on the Iraq-Turkiye Pipeline (ITP) that runs from Kirkuk to Ceyhan, according to a statement.

    In a post on social media, Bayraktar said that Turkiye aims to work closely with the new Iraqi government on more effective use of existing energy infrastructure.

    The decades-old agreement, which governs crude oil exports through the ⁠pipeline, is due to expire on 27 ​July.

    Baghdad and Ankara are still ​discussing a new draft agreement.

    Turkiye is ​also seeking ​to support ⁠existing infrastructure with new connections, Bayraktar said.

    Baghdad last month asked ​Ankara to extend the pipeline agreement ​for ⁠at least a year to allow time for more talks, but Ankara said ⁠it ​does not want an extension ​under current conditions.

    If the existing pipeline deal expires without Turkiye agreeing to an extension, it would be a major blow to Iraq, which has recently seen a large drop in crude exports due to disruption to shipping through the Strait of Hormuz.

    At the moment, in addition to transporting oil from northern Iraq, the ITP is also transporting crude from southern Iraq, which is brought to the north by truck and then injected into the pipeline network.

    At the end of March, Amer Khalil, the director-general of Iraq’s state-run North Oil Company, said that Iraq was exporting 200,000 barrels a day through the ITP.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17538073/main.jpg
    Wil Crisp
  • Oman begins procurement for truck road PPP

    2 July 2026

     

    Oman’s Ministry of Transport, Communications & Information Technology (MTCIT) has tendered a contract for the sultanate’s second public-private partnership (PPP) road scheme.

    The project spans 66 kilometres between Al-Buraimi and Al-Dhahirah governorates, starting at the Al-Khatm border crossing in Mahdah and ending at the Al-Fath area in Dhank.

    Under the scheme, the winning bidder will design, build, finance and transfer the project, which is specially designed for heavy vehicles.

    MTCIT issued the tender on 30 June. The deadline to purchase tender documents is 11 August, and the clarification period will run from 11 to 18 August.

    The bid submission deadline is 30 January 2027.

    In August 2023, Oman shortlisted five of the eight prequalified teams to compete for the Salalah-Thumrait truck road (STTR) project, the sultanate’s first PPP road project.

    The project failed to materialise beyond that point.

    In January, MEED reported that Oman is planning to establish a new commercial railway line to transport essential supplies between Salalah and Thumrait – an initiative understood to have preceded the STTR project. The railway is planned to be implemented as a PPP.

    The scheme comprises the construction of a railway line approximately 150-170km long. Two main stations are planned: Salalah Station, near the port and food storage facilities, and Thumrait Station, which will serve as a distribution hub for the surrounding areas.

    Trains are expected to be equipped with refrigerated and dry containers. The scheme aims to reduce transport costs between the two areas by 20%-30%, and Oman plans to pitch the project to major food companies to secure long-term transport contracts.

    The proposed project timeline is:

    • 2025: Conduct economic, technical and environmental feasibility studies
    • 2026: Launch the project for investment on a PPP basis
    • 2027-30: Construction of the railway line
    • 2031: Trial operations
    • 2032: Full commercial operations

    The project is touted as a key initiative under Oman Vision 2040, which aims to transform the sultanate into a global logistics hub.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17525698/main.jpg
    Yasir Iqbal