Happy Tuesday Smashi Business Readers!☀️

In today’s business landscape, significant moves are shaping the future of both regional and global markets. Dubai's real estate tycoon Mohamed Alabbar warns against unchecked price surges, while Emirati billionaire Hussain Sajwani makes bold investments in the U.S. tech sector, betting on President Trump's pro-business climate. Meanwhile, Abu Dhabi's ADQ is pushing forward with an acquisition of Aramex, signaling continued consolidation in the Middle East's logistics sector.

Read on for more details.

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🏙️ Alabbar Cautions: Rising Dubai Property Prices Could 'Kill the Golden Goose' 🚨💰

📰 What is it about?

• Mohamed Alabbar, founder of Emaar Properties, warns that unchecked surges in Dubai property prices could harm the market’s long-term viability.

• Despite optimism for 2025, brokers report signs of a market cooldown, particularly in off-plan property sales.

• Forecasts show Dubai residential prices will grow by 8% in 2025, down from a 20% increase in 2024, indicating a potential market stabilization.

💡 Why it matters?

• Affordability at Risk: Rapid price hikes could deter buyers and investors, undermining demand in one of the world’s most vibrant real estate markets.

• Cooling Signals: Despite robust demand, slowing sales and a softer price forecast suggest the market might be overheating.

• Future Supply Impact: A wave of new projects in the next 2-3 years is expected to stabilize prices, but over-supply risks loom.

• Broader Implications: Dubai’s real estate sector plays a critical role in its economy, with unsustainable growth threatening long-term stability.

🔜 What’s next?

• Market Adjustments: Developers may need to implement price corrections to maintain buyer engagement and ensure steady sales.

• Supply Expansion: Increased housing inventory over the coming years could temper price growth and attract more buyers.

• Sustained Optimism: Industry leaders remain positive about the market’s future but recognize the need for caution to balance growth and affordability.

• Policy Interventions?: Authorities may consider regulatory measures to manage price inflation and ensure sustainable market dynamics.

Markets

🌍 Emirati Billionaire Hussain Sajwani Bets Big on Trump’s Pro-Business Second Term 💼🇺🇸

📰 What is it about?

• Hussain Sajwani, Emirati billionaire and DAMAC Properties founder, plans to invest $20 billion in data centers across eight U.S. states through DAMAC subsidiary EDGNEX.

• Sajwani praised President-elect Donald Trump’s pro-business policies, predicting a surge in Gulf investments into the U.S. under his administration.

• The UAE’s AI ambitions align with the investment, as Gulf countries vie to lead in technology and data infrastructure globally.

• DAMAC’s data center expansion is focused on business-friendly states like Texas, Arizona, and Illinois, with a funding strategy relying 60%-70% on debt.

💡 Why it matters?

• Strengthening UAE-US Ties: Increased Gulf investments reflect deepening economic and strategic ties between the Middle East and the U.S., particularly in emerging technologies like AI.

• Economic Potential: Trump’s “pro-business” stance may attract significant foreign direct investment, boosting infrastructure, jobs, and innovation in the U.S.

• AI and Tech Leadership: The UAE's data center investment plays a pivotal role in positioning the region as a global tech hub amid competition from Saudi Arabia and Qatar.

• National Security Scrutiny: The deal may face regulatory challenges under the Committee on Foreign Investment in the United States (CFIUS), raising questions about foreign control over critical infrastructure.

🔜 What’s next?

• Regulatory Review: The deal will undergo CFIUS scrutiny, though Sajwani anticipates faster approvals under Trump’s administration.

• Funding Strategy: DAMAC will rely on global banks for debt financing, using data centers as collateral, while leveraging its real estate profits for the remaining capital.

• UAE’s AI Race: The UAE continues its push for leadership in AI and data infrastructure, potentially intensifying regional competition in these sectors.

• Broader Gulf Investments: With Gulf sovereign wealth funds and private investors looking to capitalize on U.S. opportunities, expect more announcements in tech, AI, and real estate.

💭Quote of the day:

"Success is walking from failure to failure with no loss of enthusiasm." – Winston Churchill

ADQ Offers $1.2 Billion to Fully Acquire Aramex 🚚🇦🇪

📰 What is it about?

• Abu Dhabi-based holding company ADQ, through its subsidiary Q Logistics Holding, has made an offer to fully acquire Aramex, the Middle East’s largest courier company.

• The proposed deal values Aramex at Dh4.39 billion ($1.2 billion), offering Dh3 per share—a 33% premium over the last closing price of Dh2.31.

• The acquisition would consolidate ADQ’s transport and logistics portfolio, which already includes significant assets like Abu Dhabi Ports, Etihad Rail, and Wizz Air Abu Dhabi.

• Aramex’s recent financial challenges were highlighted, with ADQ pledging to support a strategic and operational transformation to restore stability and unlock the company’s full potential.

💡 Why it matters?

• Strengthening UAE's Logistics Ecosystem: This acquisition aligns with ADQ’s vision of making the UAE a global hub for logistics and transport, complementing existing assets.

• Shareholder Value Realization: The offer provides an opportunity for Aramex shareholders to exit at a premium amidst financial challenges and operational restructuring.

• Economic Diversification: The move underscores Abu Dhabi’s strategy to diversify its economy by building competitive national champions in key sectors like logistics and transportation.

• Global Expansion of ADQ: The deal reflects ADQ’s aggressive acquisition strategy, as seen in its recent investments in Turkey, Canada, and Australia, to bolster its global footprint.

🔜 What’s next?

• Board Review: Aramex’s board of directors will review the offer and make an announcement regarding the next steps.

• Potential Market Impact: If approved, this could lead to significant changes in Aramex’s operations, with a likely focus on modernizing technology and improving efficiencies.

• Strategic Realignment: ADQ plans to lead a capital-intensive transformation of Aramex, aiming to restore profitability and enhance its position in the global courier market.

• Regional Implications: The deal highlights the UAE’s continued commitment to investment-led growth and could encourage similar moves within the logistics sector across the Middle East.

🔍In other news…

1. British entrepreneur and content creator Simon Squibb wins $1M in UAE’s One Billion Award.

2. Saudi Arabia is cementing its position as a regional business hub, with 571 multinational companies establishing their regional headquarters in the Kingdom.

3. Dubai Bling's Safa Siddiqui joins Decisive Living as CEO.

4. Syria flooded with Pepsi and Pringles as rulers open economy.

The Latest from the Smashi Business Studio

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Here’s to a productive week ahead! 💪

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