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- Elon Musk at WGS 2025; $600B Saudi-US Trade Target in Doubt; Americana Profits Drop 38.8%
Elon Musk at WGS 2025; $600B Saudi-US Trade Target in Doubt; Americana Profits Drop 38.8%
Friday, February 14, 2025
Happy Friday Everyone!
You read the date up there so we would love to start with some Valentine’s Day facts:
2024 saw the MENA region experience a 550% increase in flower purchases during Valentine's Day, according a report by Flowwow and AdmitAd.
Kuwait reported the highest average order value at $126, followed by the UAE at $95.
The benchmark for the price for an average Valentine’s Day gift has been set, will you be going above it or are just going to match it? You decide!
Coming back to what’s happening in the business world, world’s richest man Elon Musk made a remote appearance at the World Government Summit 2025 in Dubai. A former IMF official thinks $600bn Saudi-US trade pledge is ‘unlikely to be achieved’. On the earnings front, Mohamed AlAbbar-led Americana Restaurants net income dropped 38.8% y-o-y in 2024.
Also, Augustus Media, our parent company is hosting our second industry event today in our Dubai office under the theme “Local Influence, Regional Impact: Ramadan Edition”. You can see all the highlights on the Lovin’ Dubai account and also on Smashi Business.
But before that: You can join our Whatsapp channel too to receive updates from the business world.
Elon Musk’s Big Ideas at World Governments Summit 2025: From AI to Foreign Policy
📰 What is it about?
Elon Musk spoke at the World Governments Summit 2025 in Dubai, covering a wide range of topics, including AI, government efficiency, underground transport, and U.S. foreign policy.
He announced a partnership with Dubai to explore the Dubai Loop, an underground road network similar to his Las Vegas Loop.
Musk reiterated his call for the U.S. to “mind its own business” and avoid foreign interventions.
He criticized excessive government bureaucracy, advocating for the elimination of entire agencies to boost economic growth.
He took aim at OpenAI, accusing it of straying from its original non-profit mission.
💡 Why it matters?
Dubai Loop: The UAE is embracing Musk’s tunnel vision for congestion-free transport, potentially setting a global precedent.
Government Efficiency: Musk’s push to reduce public sector roles and shift workers to the private sector could reshape economic policies if adopted.
AI and Robotics: His prediction of “infinite products and services” with humanoid robots signals a major shift in labor markets.
U.S. Foreign Policy: Musk’s remarks on non-intervention resonate with growing global skepticism about American influence.
OpenAI Controversy: His criticism of OpenAI fuels the ongoing debate about AI ethics, corporate control, and transparency.
🔜 What’s next?
The Dubai government will study the feasibility of the Dubai Loop before confirming the project timeline.
Musk’s advocacy for shrinking government could gain traction in policy discussions, especially in the U.S.
Tesla’s humanoid robots could enter mass production by 2026, potentially disrupting service industries.
The OpenAI debate may intensify as Musk weighs legal action or alternative AI ventures.
His political and economic views could influence U.S. election narratives as he remains a vocal figure in tech and governance.
Markets
EGX 30 | 29,997.11 | +1.13% |
DFMSI | 3,113.03 | +0.76% |
ADX | 9,658.73 | -0.003% |
Tadawul | 12,385.00 | -0.01% |
STEP Conference Dubai 2025: THE Ultimate Tech Festival is Back from February 19-20 at Dubai Internet City
The Step Conference Dubai 2025 is scheduled for February 19-20 at Dubai Internet City. Recognized as the largest tech festival in the Middle East and North Africa (MENA) region, the event anticipates over 8,000 attendees, more than 400 showcasing startups, and upwards of 100 participating companies.
The conference features four main tracks: Founders and Funders, AI Agents, LLMs & Cloud, Fintech for SMBs, AdTech 2.0, and PropTech. Attendees can engage in talks, workshops, and networking sessions tailored to these themes. Notable speakers include H.E. Alia Bint Abdulla Al Mazrouei, the UAE's Minister of State for Entrepreneurship.
Participating in Step Conference offers unparalleled opportunities to connect with industry leaders, investors, and innovators. The event provides a platform to explore the latest technological advancements, gain insights from experts, and foster partnerships that drive business growth.
Whether you're an entrepreneur seeking investment, a professional aiming to expand your network, or a tech enthusiast eager to stay abreast of industry trends, Step Conference Dubai 2025 is an event not to be missed.
Use our code SMASHI to get special price on your tickets.
We, Smashi Business, are the media partners for the event and we will be on the ground to bring you all the updates from the event. You can follow us here…
Saudi’s $600B Trade Pledge to US ‘Unlikely to Be Achieved,’ Says Former IMF Official
📰 What is it about?
Saudi Arabia committed to increasing trade and investment with the U.S. to $600 billion over President Donald Trump’s four-year term.
The pledge, made by Crown Prince Mohammed bin Salman, would require $150 billion annually in trade and investment.
Former IMF official Tim Callen, now a visiting fellow at the Arab Gulf States Institute in Washington, told AGBIthat the target is “very optimistic” and “unlikely to be achieved.”
Saudi Arabia is instead prioritizing domestic projects and faces lower oil revenues, making the ambitious pledge difficult to meet.
💡 Why it matters?
Achieving the target would require Saudi trade and investment with the U.S. to grow at an unprecedented pace.
Historically, lofty trade commitments have not materialized—Trump previously claimed Saudi Arabia would buy $450 billion in U.S. goods, but actual exports in his first term amounted to just $92 billion.
Saudi Arabia’s Public Investment Fund (PIF) has shifted focus to domestic mega-projects, reducing international investments by 37% in 2023.
Lower oil revenues in 2025 could further restrict Saudi Arabia’s ability to fund large-scale U.S. investments.
🔜 What’s next?
Analysts suggest a more realistic trade and investment figure is between $100 billion and $200 billion over Trump’s second term.
Economic factors—including OPEC+ oil policies, U.S.-Saudi relations, and regional geopolitical stability—will determine actual trade growth.
David Clifton, regional director at AtkinsRéalis, said oil revenue will be key: “If OPEC+ projections hold, achieving this target will not be possible.”
While Saudi demand for US goods in defense, technology, and healthcare is expected to grow, it won’t be enough to meet the ambitious pledge.
Americana Restaurants Reports $2.2B Revenue in 2024, Eyes Continued Recovery
📰 What is it about?
Americana Restaurants posted $2.2 billion in revenue for 2024, marking a 9% decline from 2023 due to geopolitical challenges and lower consumer demand.
Despite setbacks, Q4 2024 saw strong recovery, with 14.1% YoY revenue growth and 26.3% YoY net income growth.
The company expanded aggressively, opening 213 new stores, bringing the total to 2,590 across 12 markets.
Americana acquired 46 Pizza Hut stores in Oman, solidifying its leadership in the pizza segment.
Adjusted EBITDA stood at $484.3 million, reflecting a 12.1% decline due to weaker sales and higher delivery costs.
Net profit dropped 38.8% to $158.8 million, impacted by new store depreciation and UAE corporate tax implementation.
💡 Why it matters?
Resilience Amid Challenges: Despite revenue declines, strong Q4 results show the company’s ability to adapt and recover.
Aggressive Expansion Strategy: 213 new stores signal confidence in long-term growth in key markets.
Acquisition of Pizza Hut Oman strengthens Americana’s regional dominance in the fast-food sector.
Dividend Commitment: A $127 million dividend payout underscores shareholder confidence and financial stability.
Zero Debt & Strong Cash Flow: With zero leverage and $94.8 million in free cash flow, the company maintains financial flexibility.
🔜 What’s next?
Continued focus on recovery, aiming to boost transactions and grow average check sizes.
Product innovation and digital expansion will drive customer engagement and convenience.
Further market penetration expected through strategic store openings and deeper brand presence.
Profitability to face pressure from corporate tax in key markets.
Earnings call on February 13, 2025, to provide further insights into future strategies.