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- Aramco Profit Falls; Alaan Raises $48M; MGX Eyes $25B AI Fund in Major MENA Moves
Aramco Profit Falls; Alaan Raises $48M; MGX Eyes $25B AI Fund in Major MENA Moves
Wednesday, August 6, 2025
Happy Wednesday everyone!
Saudi Aramco’s profit dropped for the tenth straight quarter as weaker oil prices strained its ability to cover dividends, even as debt levels rose. Meanwhile in fintech, Dubai-based Alaan secured $48 million in Series A funding—one of the region’s largest—to scale its AI-powered finance platform across MENA. Over in Abu Dhabi, MGX is reportedly planning to raise up to $25 billion to fund global AI infrastructure, a move that would cement its role as a key player in the UAE’s aggressive push into the tech frontier.
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Aramco Profit Falls for 10th Straight Quarter as Oil Weakness Hits Revenue
🔹 What Is It About
Saudi Aramco posted a 19% drop in Q2 profit to $22.8 billion — its lowest in four years — marking a tenth straight quarterly decline. The fall, driven by weaker oil prices despite higher production, missed analyst expectations. Free cash flow fell short of dividend payouts again, pushing net debt up to $30.8 billion. The company’s gearing ratio also rose but remains low relative to global peers like Shell.
🔹 Why It Matters
Aramco’s financial squeeze comes as Crown Prince Mohammed bin Salman accelerates economic transformation plans that heavily rely on oil revenues. Lower oil prices, a reduced performance-linked dividend, and rising debt are pressuring both Aramco’s balance sheet and Saudi state finances. While Aramco remains committed to its dividend, analysts warn that debt-funded payouts raise long-term concerns.
🔹 What’s Next
To boost liquidity, Aramco will explore new types of debt instruments, including commercial paper and multi-currency issuances. It’s also seeking investors for infrastructure assets to unlock capital. Despite market volatility, Aramco plans to raise output to 10 million barrels per day by September and remains optimistic about demand growth in the second half of 2025.
📣 ODEUM Rebrands as Augustus Media’s Modern Content Studio
Big news from within our own network — Augustus Media, the company behind Smashi, Lovin', and now a fully reimagined ODEUM, is setting a new benchmark for creative production in the region.
Introducing ODEUM – The Modern Content Studio — where bold storytelling meets how people consume content today. From short-form vertical videos to high-impact campaigns and immersive podcasts, ODEUM is built for brands that want to break through the noise.
With eight production studios across Dubai, Riyadh, and Cairo, ODEUM offers end-to-end services: cinematic video, dynamic animation, CGI, live events, branded podcasts, and more — all backed by Augustus Media’s digital-first DNA and 3.3 billion+ annual impressions across MENA.
👉 Whether you're building a brand or launching a campaign, ODEUM is where your story becomes content people actually want to watch.
Explore more here…
Markets
EGX 30 | 35,254.18 | +1.58% |
DFMGI | 6,166.38 | +0.666% |
ADX | 10,331.20 | +0.315% |
Tadawul | 10,921.85 | +0.76% |
Dubai-based Alaan Raises $48M in Landmark Series A to Power AI-Driven Finance for MENA
🔹 What Is It About
Alaan, the AI-powered spend management platform based in Dubai, has raised $48 million in Series A funding, one of the largest rounds for a fintech in MENA. The round was led by Peak XV Partners (formerly Sequoia Capital India & SEA), with participation from Y Combinator, 468 Capital, Pioneer Fund, and prominent regional founders from Careem, Tabby, and others.
🔹 Why It Matters
Launched by ex-McKinsey consultants Parthi Duraisamy and Karun Kurien, Alaan tackles the inefficiencies finance teams face in the region—from complex VAT regulations to manual reconciliation. Its platform, used by over 1,500 teams including G42, Careem, and Lulu Group, claims to have saved more than 1.5 million hours of work. The company is also profitable, having generated $10 million in revenue from just $5 million spent.
🔹 What’s Next
The funding will fuel Alaan’s expansion in Saudi Arabia, where it’s doubling transaction volume monthly. It will also ramp up hiring across sales, compliance, and customer success teams while doubling down on AI features focused on automation, not chatbots—leveraging lessons learned from integrating OpenAI into its backend processes.
MGX Plans $25 Billion AI Fundraising Drive Amid Abu Dhabi’s Global Tech Ambitions: Bloomberg
🔹 What Is It About
Abu Dhabi-based investment firm MGX is exploring plans to raise up to $25 billion in third-party capital for artificial intelligence infrastructure, according to sources familiar with the matter quoted by Bloomberg. The fund would be one of the world’s largest of its kind, with Mubadala and G42 remaining its core backers. MGX is also considering attracting financial and strategic investors from both within the UAE and globally.
🔹 Why It Matters
This marks a rare move by an Abu Dhabi entity to seek external capital, signaling a shift in strategy as the oil-rich emirate positions itself as a global AI powerhouse. MGX, backed by UAE National Security Advisor His Highness Sheikh Tahnoon bin Zayed, has quickly emerged as a central player in the country’s $1.5 trillion investment ecosystem, supporting ventures like OpenAI, xAI, and a $30 billion infrastructure plan with BlackRock and Microsoft.
🔹 What’s Next
While no final decisions have been made, MGX’s fundraising push aligns with its ambitions to surpass $100 billion in assets. The firm is ramping up U.S. hiring and could soon formalize one of the world’s largest AI-focused funds—potentially deepening its influence across Silicon Valley, Washington, and global capital markets.
👨💻From Smashi Business’ Desk
Dreamers: Hussain Sajwani, founder of DAMAC, went from selling pens in his father’s shop to delivering 48,000+ units across 15 countries.
Wizz Air is leaving the Gulf — but the bigger story is why. Saudi founder Fahd Bin Naif says it’s not just about costs, but a mismatch with how GCC consumers think.
A Sharjah car wash owner was laughed at at a Dubai networking event — for saying she runs a car wash.
Tabby founder, Palestinian entrepreneur Hosam Arab, speaks out on LinkedIn, condemning the starvation crisis in Gaza and calling for an end to the siege.
🔍In other news…
Earnings
🏦 Crypto Corner
Michael Saylor — Executive Chairman of MicroStrategy and one of Bitcoin’s most vocal corporate advocates — will make his first-ever appearance in the UAE at Bitcoin MENA in Abu Dhabi.
Hut 8, part of a American BTC which is partially owned by Donald Trump Jr. and Eric Trump, Gets Approval to Operate in Dubai Financial Hub.
Abu Dhabi Judicial Department now accept AE Coin.
We are launching a Smashi Crypto newsletter in September 2025! Subscribe to it here to get the weekly updates from the world of digital assets.
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