Happy Tuesday everyone!

Abu Dhabi’s AI investment arm MGX is reportedly in talks to join a $1B funding round for French startup Mistral, signaling deeper UAE involvement in global AI infrastructure. In the F&B world, SALATA celebrates 4 years in the UAE, with founder Georges Bandar sharing lessons on growth, grit, and staying power. Meanwhile, Saudi Aramco — once the crown jewel of oil — is now the sector’s worst-performing stock this year, losing $800B in value amid shifting market sentiment and oil price volatility.

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Abu Dhabi’s MGX in Talks to Back $1B Funding Round for French AI Startup Mistral

🔹 What Is It About

Abu Dhabi-based AI investment firm MGX is reportedly in discussions to invest in a $1 billion funding round for French AI startup Mistral, according to the Financial Times. The new capital would raise Mistral’s valuation to $10 billion and support the rollout of its chatbot “Le Chat” and further development of its open-source large language models (LLMs). The deal has not yet been finalized.

🔹 Why It Matters

The potential investment signals MGX’s growing role in global AI development. Formed in 2024 by Mubadala and G42, MGX has already backed OpenAI and joined a $30 billion global AI infrastructure partnership. The move also aligns with a France-UAE AI collaboration to build a 1GW AI data center, underscoring Abu Dhabi’s ambition to become a key hub in the AI race.

🔹 What’s Next

If the deal closes, it would mark a significant milestone in Mistral’s efforts to challenge US giants like OpenAI and Google. It would also strengthen the UAE’s presence in the foundational AI layer, as MGX continues expanding its investment portfolio across AI infrastructure, platforms, and cutting-edge startups globally.

📣 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

Salata Turns 4: Founder Georges Bandar Reflects on the Journey and What It Takes to Build in the UAE

🔹 What Is It About

Georges Bandar, Founder and CEO of SALATA, marked four years since launching the UAE-based brand with a candid LinkedIn post. “No shortcuts. No comfort zones. No guarantees,” he wrote, describing the startup’s evolution from a simple idea to a nationwide food brand that now serves thousands.

🔹 Why It Matters

Bandar’s reflections offer hard-earned lessons for entrepreneurs in the region. “The UAE doesn’t tolerate average. You either evolve or you disappear,” he said. Among his biggest takeaways: speed is important, but consistency is what sustains a business. “Brand is built in the day to day, in every order, every delay, every comeback.”

🔹 What’s Next

For SALATA, the journey is far from over. “We’re just getting started,” Bandar said. And for anyone building in this market, his advice is clear: “People make the business. The team, the customers, the community — that’s the real asset.”

What is Happening to Aramco?

The world's biggest oil company becomes the sector’s worst-performing stock in 2025

From Crown Jewel to Lagging Performer

Saudi Aramco — long the world’s most valuable and dominant oil producer — has taken a surprising turn in 2025, now holding the distinction of being the worst-performing stock among global oil majors. While Western peers like ExxonMobil and Shell rebounded in line with sector trends, Aramco’s shares have slumped 14% year-to-date, underperforming both global rivals and the broader Saudi stock index. It’s the steepest slide for the stock since the onset of the COVID-19 pandemic.

Investor Concerns: What’s Driving the Decline?

The drop in Aramco’s valuation reflects a cocktail of investor anxieties:

• Dividend Sustainability: With mounting pressure on free cash flows, some fear a dividend cut could be on the horizon.

• Oil Market Dynamics: A looming global oil surplus is expected to weigh on prices, affecting future earnings.

• Growth Gaps: Unlike integrated Western oil majors investing in low-carbon or diversified portfolios, Aramco has limited long-term growth visibility.

• Valuation Reset: “The market may be resetting valuations lower to align with those of national oil company peers,” said Allen Good of Morningstar, noting Aramco’s historic premium no longer seems justified.

Market Impact: A $800 Billion Loss in Value

From a peak valuation of nearly $2.4 trillion in 2022, Aramco has now lost over $800 billion in market value, trading at $1.55 trillion as of August 2025. The stock currently sits 12% below its 2024 secondary offering price of SAR 27.25, and 19% below its post-IPO average.

This market cap erosion is especially significant given the Saudi government and its Public Investment Fund still hold a 98% stake. A lower valuation reduces the potential windfall from any future share sales — a key financing mechanism for the kingdom’s broader Vision 2030 economic transformation agenda.

Earnings Outlook: Weaker Oil Prices, Lower Profits

Oil price volatility has further complicated the picture. Brent crude swung dramatically this year — from over $80 in January, to under $60 in May, then rebounding after geopolitical tensions between Iran, Israel, and the US.

While Aramco continues to benefit from low production costs (~$12/barrel vs. ~$28 for Western peers) and high crude volumes, weaker pricing is expected to drag on earnings. Analysts expect Q2 2025 adjusted net income to fall to $24 billion, a 20% drop year-over-year, ahead of the company’s August 5 earnings release.

Fundamentals Remain Strong — But Sentiment Has Shifted

Despite the poor share performance, Aramco remains the most valuable oil company globally, maintains a robust balance sheet, and pays the industry’s highest dividend. Notably, none of the analysts covering the stock currently rate it a sell, according to Bloomberg data.

However, its valuation premium has evaporated. In 2022, Aramco’s price-to-earnings ratio was more than double the MSCI World Energy Index average. Today, that gap has narrowed significantly as investors reevaluate risk, strategy, and the company’s future trajectory.

A Market Correction, or a Strategic Wake-Up Call?

Aramco’s underperformance may mark more than a temporary stumble. It signals a broader market reassessment of national oil companies, especially those lacking diversified growth stories amid energy transition pressures. For Aramco, the challenge is clear: prove long-term value beyond low-cost oil, or risk losing its premium status in a rapidly evolving global energy landscape.

Note: Numbers and research originally published by Bloomberg.

👨‍💻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…

• Dubai fruits-vegetables distributor NRTC buys Egyptian farming estate

• Saudi Basic Industries Corporation (Sabic), the state petrochemical giant which is 70 percent owned by Saudi Aramco, will pay a dividend of SAR4.5 billion ($1.2 billion) despite swinging to a loss in the first half of 2025

• Binghatti Holding, the Dubai-based developer, said the order book for its debut $500 million sukuk was five times oversubscribed.

• Adnoc Gas signs 10-year LNG supply agreement with India’s Hindustan Petroleum

🏦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.

Follow Smashi Crypto to find out what’s news in the world of digital assets.

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