Happy Wednesday everyone!

The Qatar Economic Forum kicked off in Doha with some of the world’s biggest names coming together and the talks were illuminating to say the least. All the highlights of day one in the first top story of the day.

Elsewhere, UK has halted trade talks with Israel over renewed assault in Gaza, while Saudi Arabia’s PIF is planning $100B ‘Project Paradise’, even though budgets are being cut for some projects.

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.

Highlights of Day 1 of Qatar Economic Forum

Who said what?

• At the Qatar Economic Forum, Prime Minister Sheikh Mohammed bin Abdulrahman Al-Thani defended Qatar’s gift of a luxury Boeing 747 to the U.S., calling it “a normal transaction” and rejecting claims of influence-buying. “Many nations have gifted things to the US,” he said, referencing the Statue of Liberty. The jet, richly outfitted by designer Alberto Pinto, is intended for U.S. government use, not personally for Donald Trump. While the White House says the Air Force will accept it legally, it still lacks key Air Force One upgrades. The aircraft’s total value is estimated at $100–$125 million, including its custom interior.

• Chelsea chairman Todd Boehly praised the Middle East as “the most exciting part of the world for the next couple of decades,” citing its energy, reliability, and growth. He commended Qatar’s global stature, referencing his recent visit with Trump’s delegation and calling a local event “amazing.” Boehly highlighted Saudi Arabia’s potential in insurance, noting it aligns well with infrastructure development needed for events like the World Cup and Expo. “We're spending a lot of time in Saudi,” he said, adding that his firm is expanding regional operations: “That’s why we’re so excited to have offices here.”

• Elon Musk reaffirmed his commitment to leading Tesla for the next five years, aiming to calm investor concerns. “It’s not a money thing,” he said, defending his push for more Tesla shares as a matter of “reasonable control.” Musk also pledged to reduce political spending, saying, “I do not currently see a reason” to continue. Tesla shares briefly rose 3.6% following his comments.

  Musk also said that Starlink will list at some point but is in no rush. He said he intends to push ahead with a lawsuit against OpenAI.

  Meanwhile, he also accused former Microsoft CEO Bill Gates of “frequenting with Jeffrey Epstein” and being in “no position to talk about child welfare.”

  Musk also highlighted that Neuralink, which is working with Abu Dhabi’s Cleveland Clinics, will be bringing back the sight of a patient in the UAE.

Announcements

• Yasir Al-Rumayyan, head of Saudi Arabia’s Public Investment Fund (PIF), announced that the fund will cease investments in Switzerland’s financial markets, citing dissatisfaction with the country’s handling of the Credit Suisse crisis.

• Goldman Sachs is ramping up its Middle East presence by opening new offices and expanding its workforce, aiming to tap into the region’s deepening capital reserves.

• UBS Group is establishing a new office in Abu Dhabi, seeking to attract wealthy clients relocating from high-tax countries like the UK to the tax-friendly environments of the Gulf.

• Private credit is emerging as a favored asset class among Middle Eastern sovereign wealth funds. While entities like Mubadala Investment Co. and Abu Dhabi Investment Authority are diving in, Qatar’s $524 billion Investment Authority is more cautious. “It’s becoming a very crowded market,” said its investment head Mohammed Al Sowaidi.

• The Qatar Investment Authority is set to double its annual investments in the U.S. as part of a broader $500 billion global investment pledge.

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Markets

UK Freezes Trade Talks With Israel Over Gaza Offensive, Warns of Sanctions

📰 What Is It About

• The UK government has suspended free-trade negotiations with Israel and summoned Israel’s ambassador over its military campaign in Gaza.

• Foreign Secretary David Lammy condemned Israel’s “egregious actions” and said the UK would also impose new sanctions on individuals and organizations involved in illegal West Bank settlements.

• Lammy warned that the Israeli government's actions — including blocking humanitarian aid and expanding military operations — were pushing the conflict into a “dark new phase.”

• Prime Minister Keir Starmer echoed these concerns, stating the UK, along with France and Canada, is “horrified” by Israel’s conduct and warned of concrete actions if the situation doesn’t change.

❗ Why It Matters

• This marks the UK’s strongest rebuke yet of Israel’s war in Gaza and could signal a major policy shift among Israel’s Western allies.

• The UK, France, and Canada jointly called the Israeli escalation “wholly disproportionate” and warned of potential sanctions, including against illegal settlement activity and possibly an arms embargo.

• With over 50,000 Palestinians killed, according to Gaza’s health authorities, pressure is mounting internationally to hold Israel accountable for human rights violations and potential breaches of international law.

🔍 What’s Next

• The UK is reviewing broader cooperation under the UK-Israel 2030 roadmap and has already applied travel bans and financial restrictions on Israeli settler leaders and organizations linked to violence in the West Bank.

• The Israeli government has rejected the criticism, stating it will not bow to “external pressure” and accusing the UK of harming its own economy for “domestic political considerations.”

• Calls are intensifying for the UK and allies to support ICC and ICJ proceedings and impose a full arms embargo on Israel.

• Observers expect further diplomatic strain if Israel continues with its offensive, dubbed “Operation Gideon’s Chariots”, and if humanitarian conditions in Gaza continue to deteriorate.

Saudi Arabia’s PIF Plans $100 Billion ‘Project Paradise’ In Riyadh Amid Spending Recalibration

🔹 What Is It About:

• Saudi Arabia’s Public Investment Fund (PIF) is drawing up plans for a $100 billion mixed-use development in Riyadh, internally referred to as “Project Paradise”, sources familiar with the matter told AGBI.

• The project is still in the early planning stage and is likely to be located southwest of Riyadh near Wadi Laban.

• While no final design has been approved, early concepts include a golf course, residential, leisure, and commercial zones, as well as a proposal to expand the Wadi Laban reservoir into an artificial lake.

🔹 Why It Matters:

• The project reflects a strategic shift within PIF toward developments offering faster commercial returns, resembling Dubai-style communities rather than more experimental models like Neom’s The Line, which has recently been scaled back.

• PIF, chaired by Crown Prince Mohammed bin Salman, is reining in spending across its broader Vision 2030 portfolio amid fiscal pressures and declining oil revenues.

• Saudi Arabia faces a $27 billion budget deficit this year, with Brent crude trading below $70 a barrel — well below its fiscal breakeven price.

• PIF’s cash reserves have dropped to $15 billion, and it expects a $40 billion decline in dividend payouts from Aramco.

• The fund has reportedly cut spending by up to 60% on some major projects and is reviewing timelines and budgets across the board.

🔹 What’s Next:

• Project Paradise was quietly mentioned during the Saudi Giga Projects conference this week, but no official announcement or design details have been released.

• A smaller F&B-focused project is also expected to be revealed by year-end to support Saudi’s tourism ambitions ahead of Expo 2030 and the FIFA World Cup 2034.

• While some giga-projects face budget cuts and delays, PIF is preserving funding for initiatives tied to major international events.

• The project also aligns with Vision 2030’s goal to raise the national homeownership rate to 70% and attract foreign investors through the premium residency programme.

🔍From Smashi Business’ Desk

• Microsoft admits providing AI and cloud services to the Israeli military during the Gaza war — including help with hostage rescue efforts.

🔍In other news…

• UAE’s $11bn manufacturing investment aims to cut oil reliance.

• Adnoc signs $500m deal with EGA to supply raw material for aluminium production.

• India implements stricter rules for gold, silver imports from UAE.

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