Happy Monday everyone!

Good morning — here are today’s top stories from the region: Saudi Arabia has approved a new low-cost airline based in Dammam, backed by Air Arabia, to boost regional air traffic and create over 2,400 jobs. Elon Musk’s AI venture xAI revealed plans for Baby Grok, a kid-friendly app, amid ongoing scrutiny over chatbot safety. Meanwhile, UAE’s Al Futtaim Retail is acquiring a 49.95% stake in Saudi’s Cenomi Retail for $666 million, aiming to support its turnaround strategy and strengthen regional retail collaboration.

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.

Saudi Arabia Approves New Budget Airline In Dammam Backed By Air Arabia

🔹 What Is It About

Saudi Arabia has granted a license for a new low-cost airline based in Dammam, backed by a consortium led by UAE-based Air Arabia, along with KUN Investment Holding and Nesma. Headquartered at King Fahd International Airport, the new carrier aims to serve 24 domestic and 57 international routes using a fleet of 45 aircraft, with a target of transporting 10 million passengers annually.

🔹 Why It Matters

The new airline supports Saudi Arabia’s Vision 2030 goals by boosting air connectivity, creating over 2,400 direct jobs, and enhancing competition in the growing aviation sector. It also strengthens the role of the Eastern Province in the Kingdom’s broader transport and logistics strategy, which targets 330 million passengers and 4.5 million tons of cargo annually by 2030.

🔹 What’s Next

The airline’s launch coincides with the unveiling of airport masterplans and a SR1.6 billion development package covering 77 infrastructure projects across the Eastern Province. As King Fahd International Airport scales up capacity after handling 12 million passengers in 2024, the new carrier is set to play a central role in positioning Dammam as a key regional aviation hub.

Binance Launches World’s First Sharia-Compliant Multi-Token Staking

Binance has introduced Sharia Earn — a groundbreaking, Sharia-certified staking product built for the global Muslim community. Developed in partnership with Amanie Advisors, this new platform allows users to earn passive income on BNB, ETH, and SOL while staying fully aligned with Islamic finance principles.

It’s a major step toward financial inclusion, bridging halal investing with cutting-edge blockchain technology. Sharia Earn empowers faith-based investors with a transparent, values-driven way to participate in the crypto revolution. Now available in 30+ countries across the Middle East, South Asia, and North Africa, with more countries set to be added soon! 

Learn more and start staking the halal way.

Markets

Musk’s xAI Plans ‘Baby Grok’ — A Kid-Friendly AI App Amid Controversy

🔹 What Is It About

Elon Musk announced that his AI startup xAI will launch a child-friendly version of its chatbot, dubbed Baby Grok. The brief post on X gave no timeline or technical details, but signaled an effort to tailor AI tools for younger users.

🔹 Why It Matters

The move comes just weeks after xAI released Grok 4 and faced backlash over antisemitic content generated by earlier versions. Baby Grok suggests xAI is attempting to expand into safer, more controlled applications — especially important as calls grow for tighter AI regulation in youth and education spaces.

🔹 What’s Next

Details are still scarce, but Baby Grok could mark a shift toward AI tools designed with age-appropriate content, parental controls, and stricter filters. Expect more scrutiny as the company balances innovation with growing public pressure around AI safety.

🔹 Middle Eastern Stake in X and XAI

Middle Eastern investors have become key backers of Elon Musk’s ventures, with significant stakes in both X (formerly Twitter) and his AI startup, xAI. Saudi Arabia’s Kingdom Holding, led by Prince Alwaleed bin Talal, holds a major position in X and has invested nearly $800 million in xAI across multiple rounds. Qatar’s QIA, Oman’s OIA, and UAE’s MGX fund have also joined xAI’s $6 billion Series C raise, reflecting strong regional confidence in Musk’s AI ambitions. These investments align with broader Gulf strategies to boost digital transformation and position the region as a global hub for emerging technologies and innovation.

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UAE’s Al Futtaim Retail To Acquire 49.95% Stake In Cenomi Retail In $666M Deal

🔹 What Is It About

UAE-based Al Futtaim Retail has agreed to acquire nearly half of Saudi Arabia’s Cenomi Retail for SAR 2.5 billion ($666 million), buying shares at SAR 44 apiece — a 33% premium to last Thursday’s closing price. The deal includes talks over a SAR 1.3 billion shareholder loan to help bolster Cenomi’s balance sheet and support its turnaround plan.

🔹 Why It Matters

The move provides critical support to Cenomi Retail, which has flagged financial stress and is actively restructuring. With liabilities exceeding assets in Q1, the firm has been shedding non-core brands and seeking strategic investment to ensure continuity. The backing of Al Futtaim could stabilize operations and unlock regional synergies.

🔹 What’s Next

Al Futtaim intends to collaborate closely with Cenomi’s management and board to drive growth. If finalized, the deal could reshape retail dynamics in the Gulf, combining Cenomi’s 1,650-store footprint with Al Futtaim’s broad regional retail portfolio.

👨‍💻From Smashi Business’ Desk

• Dreamers: From arriving in Dubai with just a suitcase to leading the Gulf’s first female-founded private equity firm, Huda Al-Lawati is a true trailblazer

• Saudi Tech CEO Goes Viral After Calling Himself an “Idiot” Over Food Delivery Choice

• Smashi Business Exclusive: House of Pops Eyes European Expansion

• From inventing Dubai Chocolate to sharing his journey from Burj Al Arab to TEDx, Chef Noel Catiz joined the Lovin Dubai Show to talk desserts, ideas, and his deep love for Kanafa Nabulsi

🔍In other news…

• BlackRock-led consortium to invest $10bn in Aramco’s Jafurah gas project infrastructure

• Egypt Launches Campaign To Attract 1M Arab Tourists By 2026

• Jordan’s tourism revenue hits $3.7bn in first half of 2025 

• How Trump’s 200% pharma tariffs could benefit the Middle East

• Workplace saving scheme slow to catch on in the UAE

🏦Crypto Corner

• Crypto Market Value Tops $4 Trillion as Stablecoin Bill Passes

• Ripple Partners Ctrl Alt to Tokenize Dubai Real Estate on XRP Ledger

• You can soon use crypto when paying at Dubai Duty Free and when flying Emirates in new landmark deal

• UAE authority clarifies no Golden Visa issuance for crypto investors

• Dubai Land Department teams up with Crypto.com on digital real estate investment plan

• Bitcoin Miner Tied to Trump Sons Plans Dubai Crypto Trading Team

Follow Smashi Crypto to find out what’s news in the world of digital assets.

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