Happy Sunday everyone!

In Saudi Arabia, construction activity took a sharp hit with contracts plummeting 77% amid falling oil revenues and tighter budgets—signaling a potential pause in the Kingdom’s mega-project ambitions. Meanwhile, Abu Dhabi’s G42 launched a dedicated hub in London to deliver localized AI solutions across Europe and the U.K., cementing its global tech ambitions. And from China, food delivery giant Keeta is eyeing Kuwait as its next Gulf destination, tapping into a booming e-commerce sector projected to surge tenfold over the next decade.

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 Construction Contracts Plunge 77% Amid Oil Revenue Decline and Budget Cuts

What is it about?

• The value of construction contracts issued by the Saudi government and Public Investment Fund (PIF) has sharply declined in early 2025.

• Data from the Saudi Contractors Authority (SCA) reveals a 77% drop in large-scale infrastructure contracts to SAR 36 billion ($9.6 billion) in the first five months of 2025, down from SAR 154 billion during the same period in 2024.

• Contracts issued by PIF companies fell even more sharply, by 84%, following a December decision to cut budgets by at least 20%.

Why it matters

• Saudi Arabia’s construction sector, once one of the GCC’s most active and vibrant markets, is showing signs of a slowdown.

• The drop reflects a reprioritisation of spending amid lower oil prices, which have fallen from an average of $82 per barrel in 2024 to around $65 currently.

• This shift impacts key infrastructure projects and could slow the pace of Saudi Arabia’s economic diversification efforts under Vision 2030.

• Saudi Aramco’s dividend cut of $40 billion, which primarily benefits the government and PIF, highlights the tightening fiscal environment.

What’s next

• The Saudi government and PIF are expected to continue reviewing and potentially reducing project budgets in line with global oil market volatility.

• Market watchers will monitor if this slowdown is temporary or signals a longer-term shift in infrastructure investment strategy.

• The construction sector may face challenges as spending reprioritizes, but opportunities could arise from strategic, focused investments in priority sectors.

Markets

Abu Dhabi’s G42 Launches European and U.K. Hub to Deliver Tailored AI Solutions

What is it about?

• Abu Dhabi-based tech group G42 has launched G42 Europe & U.K., a new subsidiary headquartered in London.

• The entity aims to deliver customized AI solutions to European and U.K. private sector clients, while partnering with governments to strengthen sovereign AI infrastructure.

• It will be co-chaired by Omar Mir (formerly of World Wide Technology) and Marty Edelman (Group General Counsel at G42), both seasoned leaders in tech and governance.

Why it matters

• The move marks G42’s first major foray into Europe, signaling its ambition to become a global AI player.

• With the EU and U.K. increasingly focused on AI regulation and digital sovereignty, G42’s local presence enables compliance-aware deployment of cutting-edge technologies.

• It also strengthens Europe’s AI ecosystem with secure, scalable infrastructure, tapping into G42’s supercomputing, cloud, and data center capabilities.

What’s next

• G42 Europe & U.K. plans to expand operations across the continent, following momentum from recent projects in France and Italy.

• The subsidiary will target high-impact sectors like healthcare, finance, energy, and manufacturing.

• Collaborations with national bodies are expected to drive data-sovereignty efforts and advance AI adoption aligned with regional priorities.

China’s Keeta Eyes Kuwait Entry as Gulf Food Delivery Boom Continues

What is it about?

• Keeta, the global arm of China’s top food delivery app, is preparing to launch operations in Kuwait, according to local media reports.

• The company is finalizing recruitment, with a launch expected by late 2025 or early 2026.

• Keeta may acquire a local logistics or delivery firm to accelerate its Kuwait rollout, as part of a broader Gulf expansion strategy.

Why it matters

• Keeta, the global arm of China’s top food delivery app, is preparing to launch operations in Kuwait, according to local media reports.

• The company is finalizing recruitment, with a launch expected by late 2025 or early 2026.

• Keeta may acquire a local logistics or delivery firm to accelerate its Kuwait rollout, as part of a broader Gulf expansion strategy.

What’s next

• The Kuwait launch could set a precedent for further expansion across the GCC, including the UAE, Qatar, and Oman.

• Industry watchers are eyeing potential acquisitions and tech-driven service rollouts as Keeta looks to localize its model.

• With regional e-commerce projected to boom, Keeta’s presence may intensify competition among delivery giants and reshape consumer expectations.

🔍From Smashi Business’ Desk

• Following backlash, Modrić’s Skillset deal vanishes from the web.

• “Israel is the single most destabilizing force in the world,” saysJordanian-American Replit founder and CEO Amjad Masad.

• Founder story: Syrian founder Yasmeen Jisri turned a love for nostalgic desserts into one of Dubai’s top online bakeries.

• Dreamers: From selling lashes with her sisters to building a million-dollar fragrance empire—*Mona Kattan* is reshaping what modern luxury smells like.

🔍In other news…

• Iraq reopens Syria crossing for trade and passenger traffic

• PIF banks Nintendo win but may have sold too soon: AGBI analysis

• How Dubai is becoming a key player in the ultra-luxe cruise boom

Latest from the Smashi Business Studio

Were you forwarded this email? Subscribe here