Happy Tuesday and the end of Q2 and H1 of 2025 everyone!

As we embrace for a busy Q3 in the Middle East, here are the top stories for today: Norway’s largest private pension fund, KLP, has blacklisted defense firms linked to Israel’s war in Gaza, citing violations of international law. In Saudi Arabia, unemployment has dropped to a record low of 2.8% in Q1 2025 — with Saudi women leading the workforce shift. Meanwhile, Dubai’s Emaar Properties has been named the world’s fastest-growing real estate brand, with its value soaring 58% to $4 billion.

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.

Norway’s KLP Pension Fund Blacklists Firms Supplying Israeli Military Over Gaza War

🔹What Is It About

• Norway’s largest private pension fund, KLP, has divested from Oshkosh Corp. and ThyssenKrupp AG over their supply of weapons to the Israeli military, citing violations of its ethical investment guidelines.

• The decision follows a June 2023 UN report identifying companies whose weapons ended up being used in Gazaby the Israel Defense Forces.

• KLP said it held $1.8 million in Oshkosh and $1 million in ThyssenKrupp before the divestment.

• The fund’s head of responsible investments, Kiran Aziz, said the companies were "contravening" KLP’s investment policies after engagement efforts failed.

🔸 Why It Matters

• The move underscores growing global pressure on firms and funds to cut ties with businesses linked to alleged war crimes in Gaza.

• It adds weight to a broader divestment and boycott campaign targeting companies tied to Israel’s military activities.

• KLP joins other Norwegian institutions, including the $1.9 trillion Norges Bank Investment Management, which has previously excluded companies linked to Israel’s occupation of Palestinian territories.

• The decision is grounded in UN guidance warning that arms suppliers to Israeli forces may be complicit in human rights violations.

• It follows the ICC’s arrest warrants for Israeli leaders over alleged war crimes — charges Israel denies, citing compliance with international law.

🔻 What’s Next

• KLP could expand its blacklist to other defense firms if further violations are found.

• Increased scrutiny may be placed on the Norwegian sovereign wealth fund, which still holds extensive investments in Israeli firms.

• The decision could inspire similar moves by other ethical investors or pension funds globally.

• Corporate responses from Oshkosh and ThyssenKrupp remain pending, with no comment given at the time of reporting.

Markets

Saudi Unemployment Hits Historic Low As Women Power Labor Market Gains

🔹 What Is It About

• Saudi Arabia’s overall unemployment rate dropped to an all-time low of 2.8% in Q1 2025, down 0.7 percentage points year-on-year, per new data from Gastat.

• Unemployment among Saudi nationals fell to 6.3%, also a record low.

• The biggest driver? Saudi women, whose unemployment rate plummeted 3.7 percentage points y-o-y to 10.5%— the sharpest decline among all groups.

• The employment-to-population ratio also improved across the board, rising to 66.3%, up from 63.7% in Q1 2024.

🔸 Why It Matters

• The figures mark a milestone in Saudi labor market reforms, especially in empowering women amid the Kingdom’s ongoing Vision 2030 transformation.

• Youth female participation also ticked up: the labor force participation rate for young Saudi women (15-24) rose to 18.4%, while young men’s participation declined.

• The data reflect changing societal norms and increased access to work for women, alongside a more digitized and active job-seeking environment.

• Tools like the Jadarat platform and direct employer applications were top methods for job seekers, showing a more proactive labor force.

🔻 What’s Next

• Saudi Arabia is aiming to cut Saudi national unemployment to 5% by 2030, having met its earlier 7% target ahead of schedule.

• Expect more policy pushes to retain women in the workforce and boost youth employment, especially among young men, whose labor participation is sliding.

• With labor market participation rising and reforms continuing, Saudi Arabia may serve as a case study for Gulf labor diversification in coming years.

Emaar Named World’s Fastest-Growing Real Estate Brand As Value Soars 58% To $4 Billion

🔹 What Is It About

• Dubai-based Emaar Properties has been ranked the fastest-growing real estate brand globally in the latest Brand Finance Real Estate Services 25 2025 report.

• Emaar’s brand value surged 58% year-on-year to $4.0 billion, pushing it up six spots to fourth place overall in the global rankings.

🔸 Why It Matters

• The growth reflects booming demand in Dubai’s property market and Emaar’s successful rollout of mega-developments such as The Valley, Dubai Hills Estate, Dubai South, and The Oasis.

• Since 2021, Emaar’s brand value has more than tripled — a 167% increase from $1.5 billion — marking a sharp upward brand trajectory.

• The ranking reaffirms Dubai’s rising global appeal in real estate and Emaar’s role as a flagship developer shaping the city’s future.

🔻 What’s Next

• Emaar is expected to continue building on its momentum with further launches and strategic expansions across prime locations in Dubai.

• The company’s global recognition may attract more international investors, reinforcing Dubai’s status as a top-tier real estate destination.

• If growth continues at this pace, Emaar may challenge for a top-three global ranking in Brand Finance’s 2026 report.

👨‍💻From Smashi Business’ Desk

• American journalist-turned-social media personality Candace Owens Says She’s Being Targeted with Smear Campaign Over Her Criticism of Israel

• Dubai-based House of Pops responded after an e-commerce partner added sugary drinks to customer orders — without consent.

• Abeer Alessa, Saudi co-founder of The Bold Group, shared a defining early-career moment — pitching her very first major project to Saudi billionaire Prince Al Waleed bin Talal.

• Dreamers: Dubai billionaire Khalaf Al Habtoor transformed his humble beginnings into a $2 billion global empire.

🔍In other news…

• Multiply Group to sell PAL Cooling Holding to Tabreed, CVC DIF consortium for $1.03 billion

• Dubai completes region’s first Joby Aerial Taxi test flight, says Sheikh Hamdan

• Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate

• Saudi Arabia pitches $2.5tn mining sector potential to Canadian firms

• Syria is set to expand stock market trading to five days a week starting in July

• Emirates NBD to start charging for some international transfers

• UAE, China launch integrated service center to spur $400 billion China-Arab trade

• Amazon UAE and 7X join forces to accelerate sustainable last-mile delivery

• Malaysian budget airline AirAsia is planning to set up a Gulf hub this year with Ras Al Khaimah and a destination in Saudi Arabia in sight

🏦Crypto Corner

• UAE-based Aqua 1 Announces $100M Strategic World Liberty Financial Governance Token Purchase to Help Shape and Accelerate Decentralized Finance Adoption

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