Happy Friday everyone!

Today's top stories: Trump’s sweeping new tariffs are shaking global markets, with the UAE, Saudi Arabia, and other Gulf nations among those impacted. Meanwhile, Gulf investors stand to benefit as Musk’s xAI acquires X, integrating AI with social media. In banking, South Africa’s Absa plans to launch in Dubai by 2026, strengthening Middle East-Africa investment ties.

Let’s dive in!

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Trump Unveils Sweeping Tariffs, Including UAE, Saudi Arabia, and Everyone Else

📰 What is it about?

• US President Donald Trump announced a 10% universal tariff on all imports into the United States, effective April 5.

• Additional "reciprocal" tariffs will be imposed on several countries, including Saudi Arabia, UAE, Egypt, Morocco, Jordan, and Tunisia, starting April 9.

• The Gulf Cooperation Council (GCC) saw some of the lowest tariffs: 10% on UAE and Saudi Arabia, while Jordan faces 20% and Tunisia 28%.

• Exemptions apply to energy, critical minerals, and previously tariffed goods like steel, aluminum, and automobiles.

• Trump's move is aimed at countering foreign tariffs, industry subsidies, and trade barriers that the White House claims unfairly disadvantage US exports.

💡 Why it matters?

• The GCC is not heavily dependent on US trade, with $30 billion in exports to the US in 2023.

• However, regional economies rely on US security partnerships and technology imports, making them unlikely to retaliate.

• Experts believe Gulf countries will likely negotiate exemptions or seek trade-offs, such as increased access to US technology.

• The global economy could suffer, with the OECD lowering its 2025 global growth forecast from 3.2% to 3.1% due to the impact of tariffs.

• The Dow Jones, S&P 500, and Nasdaq dropped sharply after the announcement, signaling market fears of an extended trade war.

• Oil markets reacted negatively, with Brent crude falling 1.75% amid concerns over weakened global demand.

🔜 What’s next?

• Trump's first foreign trip of his second term will be to Saudi Arabia, UAE, and Qatar in May, potentially opening negotiations on the tariffs.

• Other major economies like the EU, China, and Vietnam face even higher tariffs (up to 46%), likely triggering global trade tensions and countermeasures.

• US businesses and consumers may experience higher costs due to increased import duties, leading to potential inflationary pressures.

• With US interest rates still high, the GCC’s currency pegs to the US dollar mean the region will feel the indirect effects of global economic slowdown and trade disruptions.

• The Gulf states may use their "open economy" positioning to attract foreign investment, as protectionist policies rise elsewhere.

ODEUM – A Cutting-Edge Content Studio for All Your Production Needs

📰 What is it about?

• Odeum, the content studio built for modern media consumption, partnering with brands to deliver tailored content services while also creating original productions under the Augustus Media network.

💡 Why Choose ODEUM?

At ODEUM, we provide end-to-end media solutions to elevate your brand across multiple platforms.

• Video Production: From AI-powered videos to immersive live streaming and CGI storytelling.

• Animation Services: Dynamic 2D & 3D animation, motion graphics, and visually striking CGI. 

• Audio Production: Podcasting, sound design, and professional voiceovers that elevate content with immersive audio experiences.

• Original Content Development: Conceptualizing and producing shows, short films, and series that engage and inspire.

• Studio Rental: Fully equipped production spaces designed for seamless content creation, offering state-of-the-art filming, podcasting, and photography setups to bring creative visions to life.

🔜 What’s next?

• Have a project in mind? Let's make it happen!

• Book a studio or discuss your next big idea with us today.

Follow ODEUM on LinkedIn, Instagram, Facebook, and X.

Markets

Gulf Investors Poised to Benefit from Musk’s xAI Acquisition of X

📰 What is it about?

• Elon Musk’s xAI acquired X (formerly Twitter) last week in a deal valuing the social media platform at $33 billion ($45 billion before debt), reported AGBI quoting analysts.

• The purchase is expected to help xAI train its AI assistant, Grok, using X’s vast data.

• The deal gives Saudi Arabia’s Kingdom Holding ($2 billion investor in X) and the Qatar Investment Authority($375 million investor) a stake in an AI-driven platform.

• Kingdom Holding had already invested $400 million in xAI in December, strengthening its foothold in Musk’s AI ecosystem.

💡 Why it matters?

• Investors stand to gain greater exposure to AI, as xAI aims to compete with ChatGPT and other generative AI leaders.

• Musk’s companies could see greater integration, linking AI models, social media, and hardware under one umbrella.

• X’s financial struggles—such as advertiser losses and a push toward subscriptions—raise concerns over its true valuation.

• Despite X’s 70% value drop post-Musk acquisition, the $45 billion valuation by xAI recovers the original 2022 purchase price.

• Experts believe the valuation reflects long-term AI strategy rather than X’s current financial health.

🔜 What’s next?

• Gulf investors may deepen their involvement in Musk’s AI ecosystem, with potential synergies between social media, AI, and hardware.

• xAI’s access to X’s data could accelerate Grok’s development, enhancing its ability to compete in the AI space.

• Skepticism remains over X’s actual market value, with concerns over whether the AI shift can revive the struggling platform’s revenue streams.

• The deal positions Musk’s AI ventures as a rising force, potentially altering the competitive landscape of both social media and artificial intelligence.

South Africa’s Absa to Enter Dubai in 2026, Targeting Middle East-Africa Investment Flows

What is happening?

• Absa Group, South Africa’s third-largest lender, will open an office in Dubai in early 2026, pending regulatory approval.

• The move aims to capitalize on growing investment and trade ties between the Middle East and Africa.

• The Johannesburg-listed bank already operates in the UK and US and seeks to connect African businesses with Gulf markets and vice versa.

• CEO Yasmin Masithela emphasized the importance of proximity to key clients driving cross-border business growth.

Why it matters:

• The Middle East has significantly increased investments in Africa, with over $100 billion invested since 2014.

• The UAE leads with $59.4 billion, followed by Saudi Arabia at $25.6 billion and Qatar at $7.2 billion in African investments.

• Gulf investors are focusing on infrastructure, energy, logistics, and fintech, making Absa’s presence in Dubai strategic.

• The move strengthens Dubai’s role as a financial bridge between Africa and the Middle East.

What’s next?

• Regulatory approval for Absa’s Dubai office is expected in the coming months.

• Absa will likely expand its offerings in trade finance, corporate banking, and investment advisory for clients operating between Africa and the Gulf.

• More African financial institutions may follow suit, using Dubai as a base for regional operations.

• The expansion aligns with a broader trend of deepening Middle East-Africa economic ties, particularly in energy, technology, and finance.

🔍In other news…

1. Kuwait enforces power cuts as demand outstrips capacity.

2. US treasuries could become less of a safe bet for Gulf investors.

3. Aramco to use Japanese drone startup to inspect facilities.

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