Happy Thursday everyone!

The Gulf is buzzing with transformation. Dubai’s red-hot real estate market shattered records in 1H 2025, hitting AED 431.2 bn in transactions. Meanwhile, the UAE is taking bold steps in the space race, teaming up with Aspire Space to build AI-designed rockets and engines entirely in the Emirates — a potential rival to SpaceX. And in a major policy shift, Kuwait has introduced a 15% minimum tax on multinationals, aiming to raise $819 mn annually as it diversifies beyond oil.

But before that: For quick daily updates, follow us on Instagram, and you can watch our Smashi Business Show live every weekday from 10AM onwards (UAE time). Also, you can join our Whatsapp channel to receive updates from the business world.

Dubai Real Estate Market Hits AED 431.2 B In Record-Breaking First Half Of 2025

🔹 What Is It About

Dubai’s real estate market saw transactions reach AED 431.2 bn in 1H 2025 — a 25% increase y-o-y, according to Dubai Land Department data. The boom came from over 123.3k transactions, including AED 326.6 bn in sales, AED 83.1 bn in mortgages, and AED 21.3 bn in grants. Business Bay topped the list in sales value, followed by Me'aisem 2 and Al Yalayis.

🔹 Why It Matters

The strong performance underlines sustained investor appetite despite global headwinds. However, analysts caution that more deals don’t necessarily mean higher prices. With 250k new residential units expected by 2026, Fitch sees room for a moderate correction of up to 15%, though premium areas are likely to stay stable. Meanwhile, Knight Frank and Moody’s expect growth to slow or stabilize after the 2024 surge.

🔹 What’s Next

Market watchers are eyeing supply trends as developers race to deliver new inventory. June posted AED 54.2 bn in sales, but May’s AED 66.9 bn remains the peak so far. With price growth cooling and more stock coming online, the second half of 2025 could test the market’s resilience — especially in mid-tier segments.

🎙️ “Points of Growth”, Yango Ads’ podcast about AdTech, Releases Episode 3

Yango Ads, the AdTech arm of Yango Group, runs its very own podcast - Points of Growth. Tailored for marketers, founders, and growth teams, this series explores practical strategies for driving sustainable growth through data, AI, and smart advertising.

On July 1, Episode 3 launched, focusing on a topic of app monetization. The host Neha Dawar, Business Developer Manager at Yango Ads, is joined by Lucas Calixto, Business Developer Manager, and Alex Khoroshilov, Technical Customer Success Manager, to discuss effective monetization strategies, the latest ad formats, AI as a co-pilot and actionable tips for developers looking to increase revenue.

The podcast kicks off with a six-episode season tackling challenges in fast-moving sectors like tourism, fashion, real estate, retail, and gaming - where digital acceleration is rewriting the rules of engagement. The first two episodes - on AdTech trends and essential advertising toolbox - are already available on Spotify, YouTube Music, and Apple Music.

Markets

AI-Built Rockets, UAE-Made Engines — A New SpaceX Rival is Ready for Lift Off

🔹 What Is It About

A powerful new partnership between European firm Aspire Space and Dubai-based Leap 71 is set to make the UAE a serious contender in the global space race. The duo will co-develop reusable rockets capable of launching 15 tonnes into orbit, with engines built entirely in the UAE. Aspire is relocating its HQ to the Emirates, with its first rocket launch targeted for 2030, according to The National.

🔹 Why It Matters

The project could give the UAE “sovereign access to space” — the ability to launch missions independently, a capability currently limited to just a few major powers. With engines designed using AI and built locally, the UAE is positioning itself as both a launch hub and a propulsion powerhouse. The partnership mirrors the Boeing-GE model in aviation, but for space.

🔹 What’s Next

The UAE is scouting locations for rocket testing and launches, with Oman’s Etlaq spaceport emerging as a prime candidate. Aspire aims to hire 20 engineers to ramp up operations. Long-term, the company plans to build a reusable space capsule. If successful, this could turn the Emirates into a launchpad for cargo — and eventually, human — space missions.

Kuwait Rolls Out 15% Minimum Tax On Multinationals As It Targets $819 Mn In Annual Revenues

🔹 What Is It About

Kuwait has issued executive regulations for a 15% Domestic Minimum Top-Up Tax (DMTT) targeting multinational entities with global revenues above €750 million. Set to generate KWD 250 million ($819 million) annually, the tax applies from 2025 and aligns with OECD's Pillar Two global minimum tax framework. Multinationals operating in Kuwait must register by September 30, according to guidance from KPMG.

🔹 Why It Matters

The move marks a major policy shift for Kuwait, long considered a low-tax haven. By expanding its revenue base beyond oil, Kuwait joins GCC peers like the UAE and Bahrain in restructuring fiscal policy. Finance Minister Noura Al-Fassam called the measure a "milestone" toward sustainable economic reform. Analysts warn, however, that affected companies — especially in logistics, finance, oil services, and consumer goods — may pass on the cost to consumers.

🔹 What’s Next

Kuwait’s DMTT is part of broader Gulf tax reforms amid efforts to diversify economies and stabilize budgets against oil volatility. The IMF forecasts a 1.9% GDP rebound for Kuwait in 2025, buoyed by rising oil output and non-oil growth. Meanwhile, Oman prepares to introduce the Gulf's first personal income tax in 2028, underscoring a regional shift toward fiscal transformation.

👨‍💻From Smashi Business’ Desk

• Dreamers: Meet the founding chairman of Al Habtoor Group, Khalaf Al Habtoor.

• Saudi startup Ninja just hit unicorn status!

• In a video posted on social media, Tariq, a Palestinian English teacher, translator, and voice actor, reveals residents are charged up to 60% in commission fees just to access physical cash.

• Jeff Bezos’ $50M wedding to Lauren Sánchez in Venice drew a guest list of global billionaires — many with major stakes in the Gulf.

• Elon Musk warned there’s a 10–20% chance AI could go rogue — and now, it’s not just theory.

🔍In other news…

• Riyadh-based career guidance platform Flawless raised $1.5 million (SAR 5.6 million) in a pre-seed funding round

• Reuters Exclusive: Iran made preparations to mine the Strait of Hormuz, US sources say

• Dubai bankers set up wealth manager for ‘poor millionaires’

• Dubai launches scheme to help first-time investors buy properties valued up to AED5 million

• Dubai Duty Free H1 2025 results: AED744.24m in perfume sales, AED416.90m worth of gold

🏦Crypto Corner

• Bitcoin Miner Tied to Trump Sons Plans Dubai Crypto Trading Team

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