Happy Thursday Smashi Business Readers!

The Middle East continues to shape global markets with major moves across tech, media, and energy. OpenAI CEO Sam Altman is set to meet Abu Dhabi’s MGX for AI funding talks as competition from China’s DeepSeek intensifies. Reuters is expanding in the region, launching an Arabic-language website and bringing its Reuters NEXT summit to Abu Dhabi. Meanwhile, Adnoc has shifted its U.S. investments to its new global arm, XRG, signaling a push into lower-carbon energy and chemicals.

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Reuters Expands in the Middle East with New Arabic Website & Leadership Summit

📰 What is it about?

• Reuters is expanding its presence in the Middle East with two major initiatives:

  • Launching a new Arabic-language website catering to Gulf audiences.

  • Bringing its flagship leadership summit, Reuters NEXT, to Abu Dhabi in October.

• The summit will be an invitation-only event aimed at top global business leaders.

• Reuters has partnered with the Abu Dhabi Department of Economic Development as a host city partner.

• The event will focus on six key themes: geopolitics, economy and markets, banking and finance, technology and AI, climate and sustainability, and leadership.

💡 Why it matters?

• Expanding Business in the Region: Reuters has had an editorial presence in the Middle East since 1866 but is now actively leveraging it to build a subscription-based business model for professional audiences.

• New Revenue Opportunities: The Arabic site and the Abu Dhabi summit are expected to drive advertising and sponsorships, expanding Reuters' revenue streams beyond traditional news licensing.

• Middle East as a Strategic Hub:

  • Reuters is following a tested global expansion strategy, similar to its recent move into Singapore.

  • The Middle East is becoming a key market for media expansion, with CNN and Dow Jones also growing their presence in the region.

• Strengthening Professional Offerings:

  • Reuters NEXT operates independently from Reuters' news agency under Reuters Professional, a division focused on insights and events for decision-makers.

  • The event aims to establish Abu Dhabi as a central hub for business and policy discussions.

🔜 What’s next?

• Upcoming Announcements: Reuters will reveal additional sponsors for the Abu Dhabi event in the coming months.

• Growing Competition: Other major news organizations, including CNN and The Wall Street Journal, are also increasing investments in the Middle East, particularly in the UAE and Qatar.

• Challenges Ahead:

  • Media companies have previously pulled back from Middle East expansions due to press freedom concerns, particularly after the murder of journalist Jamal Khashoggi.

  • Future growth in the region may depend on the political and humanitarian climate surrounding media operations.

• Long-Term Vision: Reuters aims to establish itself as a leading source of professional insights in the region, capitalizing on its long-standing editorial credibility.

Leap 2025 in Riyadh Set to Revolutionize Tech Landscape with Global Speakers in Riyadh

LEAP 2025, Saudi Arabia's premier technology event, is set to take place from February 9 to 12, 2025, at the Riyadh Exhibition & Convention Centre in Malham. This fourth edition, themed 'Into New Worlds,' introduces a ticketed format to enhance business networking and investment opportunities.

The event will feature over 1,000 expert speakers, 680+ start-ups, and 1,800+ global tech brands, offering attendees a comprehensive view of the latest technological advancements.

New additions include the 'LEAP Nights' concept, extending activities into the night across Riyadh, and the Tech Arena, where live product demos and interactive engagements will showcase cutting-edge technologies.

Notable speakers include Ken Kutaragi, former Chairman and CEO of Sony Interactive Entertainment; Javier Tebas, President of La Liga; and Connie Chan, General Partner of Andreessen Horowitz.

LEAP 2025 aims to solidify Saudi Arabia's position as a global technology hub, fostering innovation and collaboration across various sectors.

Our Smashi Business team will be on the ground to give you all the news and updates from the event.

Markets

OpenAI's Sam Altman to Meet Abu Dhabi's MGX for AI Fundraising Talks

📰 What is it about?

• OpenAI CEO Sam Altman is set to visit Abu Dhabi this week to discuss raising funds with investment group MGX, sources say.

• The meeting follows Altman’s Asia tour, where OpenAI announced a partnership with Japan’s SoftBank for AI services.

• MGX previously participated in OpenAI’s $6.6 billion funding round in October and is expected to play a role in future investments.

• The UAE is aggressively investing in AI to establish itself as a global leader in the field, competing with Saudi Arabia and Qatar.

💡 Why it matters?

• Major AI Investments: OpenAI is seeking substantial funding to stay ahead of competition, particularly from China’s DeepSeek, which offers a cheaper AI alternative.

• Record-Breaking Fundraising:

  • SoftBank is in talks to lead a $40 billion funding round, potentially valuing OpenAI at $300 billion.

  • This could set a record for the largest single funding round for a private company.

• Geopolitical Implications:

  • The UAE’s AI ambitions are intertwined with global politics, especially as the country strengthens ties with both the U.S. and China.

  • The U.S. has expressed concerns over the UAE’s relationship with China, fearing the potential transfer of American AI technology.

• AI as a Strategic Priority:

  • AI was a key topic when UAE President Sheikh Mohamed bin Zayed visited Washington in December.

  • Abu Dhabi’s AI drive is led by G42 and MGX, backed by Mubadala’s $330 billion wealth fund.

🔜 What’s next?

• Further Funding Announcements:

  • More details on OpenAI’s funding round, including MGX’s level of participation, are expected soon.

  • The Stargate project, backed by OpenAI, SoftBank, Oracle, and MGX, aims to spend $500 billion over four years on AI infrastructure.

• Middle East’s Growing AI Influence:

  • The UAE is positioning itself as a major AI hub, pouring billions into the industry.

  • Saudi Arabia and Qatar are also ramping up their AI investments, setting the stage for regional competition.

• U.S.-China Tech Tensions:

  • Washington may increase scrutiny over UAE-China AI collaborations, potentially affecting future partnerships.

• Altman’s AI Expansion Strategy:

  • With growing competition from China’s DeepSeek, OpenAI is looking for new investment sources to maintain its technological edge.

Adnoc Shifts US Investments to New Global Arm XRG

📰 What is it about?

• Adnoc has moved its U.S. investments under its newly launched international investment arm, XRG, signaling a broader push into lower-carbon energy and chemicals.

• Key U.S. assets now under XRG include:

  • A 35% stake in ExxonMobil’s hydrogen plant in Texas, which could also produce ammonia.

  • An 11.7% stake in NextDecade’s Rio Grande LNG export facility in Texas.

• XRG, launched in November, is valued at over $80 billion and is rapidly expanding its portfolio globally.

• The company is now set to become the majority owner of German chemicals giant Covestro after a €14.7 billion ($15.22 billion) takeover deal.

• XRG has also formed a joint venture with BP in Egypt, initially focusing on gas projects.

💡 Why it matters?

• Strategic Shift in Energy Focus:

  • Adnoc is diversifying beyond traditional oil investments, focusing on hydrogen, LNG, and chemicals, which align with global energy transition goals.

  • The demand for gas and chemicals is expected to rise due to the growth of AI and data centers, which require more energy and cooling solutions.

• Strengthening Global Presence:

  • XRG’s growing portfolio underscores Abu Dhabi’s ambition to be a leader in energy innovation.

  • The Covestro acquisition boosts Adnoc’s footprint in the European chemicals market, while the BP partnership expands its influence in North Africa.

• Geopolitical & Economic Implications:

  • The shift reflects Gulf energy players’ growing role in shaping the global energy transition.

  • Adnoc’s hydrogen investments align with U.S. and European climate strategies, strengthening its strategic ties in these regions.

🔜 What’s next?

• Completion of the Covestro takeover, solidifying XRG’s dominance in chemicals.

• Further global expansion, with potential new deals in energy and infrastructure.

• More partnerships in hydrogen and LNG, particularly in North America and Asia.

• Growing focus on AI-driven energy demand, with Adnoc positioning itself as a key supplier of critical energy solutions for data-driven industries.

🔍In other news…

1. Israeli spyware maker Paragon, which was accused by WhatsApp for a hacking campaign that targeted around 90 individuals, confirmed to TechCrunch that it sells its products to the U.S. government, and others.

2. Kuwaiti social media influencer Noha Nabil spoke at the Sharjah Entrepreneurship Festival 2025 about how it’s impossible to give anything “100%,” so you shouldn’t be too hard on yourself.

3. Dubai residents, citizens, and visitors can now pay for government services using Tabby’s deferred payment option.

4. Egyptian fintech startup Khazna has raised $16 million in a pre-Series B funding round, bringing its total funding to over $63 million.

The Latest from the Smashi Business Studio

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