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The World Economic Forum's Annual Meeting 2025 in Davos, entering day 3 today, themed "Collaboration for the Intelligent Age," is addressing several critical global issues. Key discussions include the integration of artificial intelligence into industries, with a focus on practical applications and ethical considerations. The forum is also examining the implications of U.S. policy shifts under President Donald Trump, particularly regarding energy expansion and trade tariffs, and their effects on global economies. Additionally, the forum is exploring strategies for sustainable economic growth, investing in human capital, and rebuilding global trust.

Here are our main stories for today:

1. Jeddah Tower: $26 Billion Project ‘Officially’ Resumes Construction.

2. Abu Dhabi Launched AED13 Billion Digital Strategy from 2025 till 2027, and,

3. Abu Dhabi’s $330B-strong Mubadala is going all-in for AI, CEO Khaldoon Al Mubarak said at #WEF25 in Davos.

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Jeddah Tower: $26 Billion Project ‘Officially’ Resumes Construction

📰 What is it about?

• Prince Alwaleed bin Talal announced the resumption of the Jeddah Tower project, set to become the world’s tallest structure at over 1,000 metres.

• Construction had been paused in 2018 but will now be completed in 42 months, targeting 2028 for completion.

• Estimated cost: $26 billion (100 billion riyals), covering the tower and its surrounding 1.7 million square meter development.

💡 Why it matters?

1. Architectural and Economic Significance

• Global Landmark: Once completed, Jeddah Tower will surpass the Burj Khalifa as the tallest building, enhancing Saudi Arabia’s status as a center of architectural innovation.

• Boost to Economy: The project will support tourism, real estate growth, and international investment in Saudi Arabia.

2. Local Impact

• Skyline Transformation: Located in Jeddah’s Obhur district, the tower will redefine the city’s skyline and attract global attention.

• Real Estate Surge: Nearby property values have already increased due to renewed construction.

• Mixed-Use Functionality: Housing, luxury accommodations, retail outlets, offices, and the world’s highest observation deck on the 157th floor will cater to various needs.

3. Overcoming Challenges

• Construction Pause: Work halted due to a 2018 anti-corruption purge, which detained key figures, including the project’s main contractor.

• Technical Hurdles: Building a structure of this magnitude required innovative engineering solutions, including a three-petal base and aerodynamic design.

🔜 What’s next?

• For Jeddah Tower:

  • Completion Timeline: Expected completion in 2028, with 94 floors left to construct.

  • Tenant Opportunities: The project aims to house 100,000 residents, while also offering luxury apartments, offices, and retail spaces.

  For Saudi Arabia’s Vision 2030:

  • Tourism and Urban Development: The project aligns with Saudi Vision 2030 to position the kingdom as a global tourism and business hub.

  • Economic Diversification: Jeddah Tower exemplifies Saudi Arabia’s push to reduce its reliance on oil and attract international investors.

  For Global Competition:

  • Architectural Arms Race: Other nations or developers may seek to challenge Jeddah Tower’s title by planning even taller structures.

  • Innovation Benchmark: Advances in construction techniques, like those used for Jeddah Tower, will set new standards for high-rise buildings globally.

Markets

Abu Dhabi Government Digital Strategy 2025-2027: Pioneering AI-Powered Governance

📰 What is it about?

• The Abu Dhabi Government has launched the Digital Strategy 2025-2027, focusing on transforming into an AI-powered government.

• Budget Allocation: AED13 billion will be deployed to enhance digital infrastructure, AI adoption, and cybersecurity.

• Key Goals:

  • Achieve 100% digitisation and automation of government processes.

  • Establish sovereign cloud computing adoption across all operations.

  • Implement 200 AI-driven solutions to improve services.

💡 Why it matters?

1. Driving Innovation and Global Leadership

• AI-Powered Transformation: Abu Dhabi aims to lead globally in AI governance, integrating technologies like cloud computing and data analytics into public services.

• Economic Impact: The strategy will contribute AED24 billion to GDP by 2027, fostering economic growth.

• Sustainable Development: Emphasis on sustainability aligns with Abu Dhabi's broader economic and environmental goals.

2. Enhancing Citizen Experience

• Proactive Governance: AI-driven insights will create a seamless and agile government, benefiting citizens, residents, and businesses.

• Customer-Centric Initiatives: Building on platforms like TAMM 3.0, the strategy simplifies public service delivery.

3. Empowering the Workforce

• Upskilling Programs: Collaborations with the Mohamed bin Zayed University of AI will train citizens in AI applications.

• Job Creation: Over 5,000 jobs will be created, supporting Emiratisation efforts.

4. Strengthening Cybersecurity and Resilience

• Robust Guidelines: Developing frameworks to anticipate and mitigate cyber threats ensures a secure digital transformation.

🔜 What’s next?

For Abu Dhabi:

• Execution and Monitoring: Implementing sovereign cloud systems and unified ERP platforms while ensuring cybersecurity protocols.

• Scaling Partnerships: Expanding collaborations with entities like G42 and ATRC for cutting-edge AI solutions.

• Promoting AI for All: Extending the AI for All program to include diverse training for citizens and businesses.

For the Region:

• Regional Leadership: Abu Dhabi’s success could inspire similar transformations across the GCC, solidifying its position as a digital innovation hub.

• Attracting Investments: Enhanced digital infrastructure will attract global tech companies and investors.

For the Global Stage:

• AI Benchmarks: Abu Dhabi’s AI-driven governance model could set global standards for digital government transformation.

• Sustainable Growth Model: The integration of AI, sustainability, and governance will serve as a blueprint for future-forward economies.

Abu Dhabi’s $330B Fund Mubadala Eyes AI Supremacy

Abu Dhabi's Mubadala Investment Company, managing a staggering $330 billion sovereign wealth fund, is making bold moves in the artificial intelligence (AI) space, signaling a paradigm shift in how nations approach this transformative technology.

The Visionary Approach to AI

CEO Khaldoon Al Mubarak outlined Mubadala’s aggressive AI strategy at Davos, emphasizing the profound, yet underestimated, impact AI will have on industries, jobs, and global economies.

• "AI’s disruption will touch every corner of our lives," Al Mubarak stated, highlighting its transformative potential.

Mubadala’s AI Investments:

1. Infrastructure Development:

   • Significant investments in data centers, chip manufacturing, and cutting-edge AI technologies.

2. Strategic Partnerships:

   • Mubadala-backed G42 partnered with OpenAI to drive AI adoption across the UAE and beyond.

   • Microsoft’s $1.5 billion investment in G42 integrates Azure cloud services, enhancing AI capabilities.

   • Development of AI chips in the UAE positions the region as a key player in global AI innovation.

3. MGX Fund:

   • As a founding supporter, Mubadala has committed billions to MGX, Abu Dhabi’s AI-dedicated fund.

AI’s Infrastructure Boom

Al Mubarak predicts exponential growth in demand for:

• Energy: To power vast AI computations.

• Data Centers: Housing the massive amounts of data needed for AI applications.

• Chips: The backbone of AI functionality, driving both innovation and economic opportunity.

Mubadala’s 10-to-20-Year Horizon

• With a long-term strategy, the fund aims to reshape industries and economies, positioning itself as a leader in the global AI revolution.

Global Perspective

Despite geopolitical and economic challenges, Mubadala is optimistic about China’s role in the AI future.

• Citing GDP growth and an expanding middle class, Mubadala remains invested in China's AI ecosystem.

Key Takeaways

1. AI Leadership: Mubadala isn’t just following trends—it’s setting them, solidifying Abu Dhabi’s position as a global AI powerhouse.

2. Economic Impact: Massive AI investments will stimulate innovation, attract talent, and transform industries in the UAE and beyond.

3. Global Partnerships: Collaborations with giants like Microsoft and OpenAI reflect Mubadala’s forward-thinking approach.

🔍In other news…

1. Bahrain-based fintech platform Daleel makes entry into the UAE.

2. Homecoming for Mashreq as bank opens in Oman.

3. Dubai’s inflation dropped a few decimal points in 2024, compared to 2023.

4. No UAE or Dubai Government partnerships without AI Seal certification.

5. Sowt Media’s beloved kids’ podcast brand, Shamandar, is now available on Yango Play!

6. Is a Casino coming soon to the UAE? Danube founder says so!

The Latest from the Smashi Business Studio

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