Happy Sunday everyone!

Middle Eastern markets, global trade, and corporate accountability take center stage. Americana, the region’s biggest fast-food franchise operator, is rethinking its reliance on U.S. brands after boycotts cut profits and sent shares tumbling. Meanwhile, the UAE’s new trade pact with New Zealand promises to triple bilateral trade and open fresh opportunities across key sectors. And in the tech world, Microsoft faces backlash after firing employees who protested the company’s ties to Israel amid the Gaza conflict, highlighting rising tensions between corporate policy and employee activism.

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Markets

Americana to Cut Reliance on U.S. Brands After Boycotts Slash Profits

🔹 What Is It About

Americana, the Middle East’s largest fast-food franchise operator, is planning to shift away from heavy reliance on U.S. brands such as KFC and Krispy Kreme. The move follows a sharp profit decline and a 28% fall in its share price due to region-wide boycotts over U.S. support for Israel. Chairman Mohamed Alabbar said the company has been forced to cut costs and explore acquisitions of local brands.

🔹 Why It Matters

The crisis highlights the vulnerability of companies tied to Western brands in politically sensitive markets. Despite major shareholders being based in the Gulf, Americana’s association with American franchises has made it a target for boycotts, undermining investor confidence and profitability.

🔹 What’s Next

Americana plans to diversify its portfolio by acquiring or developing regional brands, aiming for greater resilience against geopolitical backlash. Investors will be watching for signs of recovery in sales and whether these strategic changes can stabilize its stock performance.

UAE-New Zealand Cepa Expected to Triple Trade

🔹 What Is It About

The UAE and New Zealand have launched a comprehensive economic partnership agreement (Cepa) that is expected to boost annual bilateral trade from $1.5 billion to more than $5 billion by 2032. The deal eliminates tariffs on nearly all goods, streamlines customs procedures, and opens opportunities in food production, education, renewable energy, and technology.

🔹 Why It Matters

This is New Zealand’s first trade agreement with a Middle Eastern country, reflecting the UAE’s growing role as a global trade hub. The pact aligns with the UAE’s ambition to grow its total trade value to $1 trillion and double its economy by 2031.

🔹 What’s Next

Both countries will now implement measures to deepen private sector collaboration and attract investment. Businesses in food and energy sectors, in particular, are expected to benefit immediately from lower trade barriers and simplified market access.

Microsoft Fires Four Employees Over Protests Against Ties to Israel

🔹 What Is It About

Microsoft has dismissed four employees for participating in protests at its offices against the company’s alleged role in supporting Israel during the Gaza conflict. Demonstrators, part of the group No Azure for Apartheid, called on Microsoft to cut ties with Israel after a joint investigation revealed Israel’s military used Microsoft Azure to store massive volumes of Palestinian phone call recordings.

🔹 Why It Matters

The firings spotlight growing internal dissent at major tech companies over their dealings with governments involved in conflict. They also raise questions about employee rights, corporate accountability, and whether companies are indirectly enabling human rights abuses.

🔹 What’s Next

Microsoft has hired law firm Covington & Burling LLP to review the claims while continuing to face protests from workers and rights groups. The situation could pressure other multinationals to audit how their technologies are used in conflict zones and reevaluate business partnerships.

👨‍💻From Smashi Business’ Desk

• Lubna Olayan: From Solo Trailblazer to Champion of Women in Business.

• Ex-Astra Tech CEO Questions Dubai’s Booming Life Coaching Trend Amid $461M Industry Surge

• Brands Strike Gold as Taylor Swift & Travis Kelce’s Engagement Sparks Pop-Culture Marketing Frenzy!

🔍In other news…

• China’s EHang to launch passenger drones in Qatar

• Tunisia attracts 20% more FDI thanks to industry and energy

• Egypt banks on investment surge to increase GDP

• UK and Spanish firms win Spain-Morocco tunnel deals

• Qatar’s Meeza secures $219m for data centre expansion 

• Saudi Arabia pushes on with phase 2 of Neom’s Oxagon port

🏦 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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