👋 Good morning, Smashi Business Readers!

In today’s edition, we explore the mounting pressure facing major corporations as ethical concerns take center stage. Stripe, a global payments giant, is facing boycott calls following CEO Patrick Collison’s controversial visit to Tel Aviv, amid growing geopolitical tensions in the Middle East. Meanwhile, Abu Dhabi’s International Holding Co. (IHC) continues to show unwavering support for India’s Adani Group, even as the company navigates serious legal challenges and international scrutiny. Lastly, after years of pressure from human rights activists, PUMA has announced it will end its sponsorship of the Israel Football Association, while the new sponsor, Erreà, faces its own potential backlash.

Let’s dive into the details.

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🚨 Stripe Faces Boycott Calls After CEO's Tel Aviv Visit 🌍💳

📰 What is it about?

• Stripe CEO Patrick Collison’s visit to Tel Aviv sparked backlash in the Middle East, interpreted by some as support for Israel amid ongoing military actions in Gaza.

• MENA-based entrepreneurs and professionals criticized the visit, with some exploring alternatives to Stripe's payment platform.

• Influential figures in the MENA tech scene, including Jordanian entrepreneur Walid Daniel Dib and Endeavor Jordan board member Zeid Husban, publicly questioned Stripe's position and called for regional alternatives.

• Dubai-based fintech platforms like Ziina and Mamo are being evaluated as potential replacements.

• Activist platforms like the Boycat app have hinted at listing Stripe in their database of brands linked to Israel.

💡 Why it matters?

• Highlights how corporate decisions and affiliations can directly impact brand loyalty and reputation, particularly in politically sensitive regions.

• Demonstrates the growing emphasis on ethical consumerism and corporate accountability in the MENA region.

• Reflects the rising demand for local solutions like Mamo and Ziina, showing potential for homegrown fintech growth.

• Could signal a broader trend of regional startups gaining momentum as global brands face scrutiny over political affiliations.

• Indicates heightened tensions in the tech and financial sectors influenced by geopolitical conflicts.

🔜 What’s next?

• For Stripe: Pressure to clarify its stance or respond to the growing boycott calls to manage its reputation in MENA markets.

• For Regional Fintechs: Opportunity to capture market share by positioning themselves as ethical, homegrown alternatives.

• For Businesses in MENA: Likely to reevaluate their reliance on global platforms and explore locally-rooted solutions.

• For Consumers: An increase in activism-driven decision-making as tools like the Boycat app gain popularity.

• For Tech Ecosystems: A need to balance global business interests with regional ethical and political considerations.

📈 Markets

🌍 Abu Dhabi’s IHC Backs Adani Group Amid Scandal and Stock Rebound 📈⚡

📰 What is it about?

• Abu Dhabi’s International Holding Co. (IHC), chaired by Sheikh Tahnoon bin Zayed, reaffirmed its support for India’s Adani Group despite the U.S. indictment of Gautam Adani.

• The indictment accuses Adani and associates of a $265 million bribery scheme under the Foreign Corrupt Practices Act.

• Adani Group denies the charges, calling them "baseless," and has pledged legal action.

• Adani-related stocks, including Adani Green Energy and Adani Energy Solutions, saw a sharp rebound, hitting daily trading caps on Thursday.

• International fallout includes halted investments by French energy firm TotalEnergies and canceled contracts in Kenya, with investigations underway in Bangladesh and Sri Lanka.

💡 Why it matters?

• IHC’s Confidence: As a major foreign investor in Adani, IHC's endorsement underscores faith in Adani’s contributions to green energy and sustainability, despite global scrutiny.

• Geopolitical Implications: The scandal has intensified political debates in India, with opposition accusing Prime Minister Modi of shielding Adani.

• Investor Sentiment: The rebound in Adani stocks signals cautious optimism, though the group continues to face credit downgrades and heightened scrutiny.

• Global Ripples: Major international stakeholders like TotalEnergies are reassessing their involvement, impacting Adani’s global projects.

• Regional Dynamics: IHC’s support reflects Abu Dhabi’s broader economic ties with India, as well as confidence in India’s growth potential.

🔜 What’s next?

• For IHC: Continued monitoring of Adani-related developments while balancing public and investor confidence.

• For Adani Group: Legal battles to counter the U.S. indictment, alongside efforts to stabilize global partnerships and investor relations.

• For Global Partners: Companies like TotalEnergies and affected nations will likely wait for further clarity before resuming partnerships.

• For Indian Politics: Escalating scrutiny of government-corporate relations as opposition leverages the scandal for political gains.

• For Markets: Adani’s performance will remain volatile, driven by developments in legal, regulatory, and international arenas.

💭Quote of the day
“The key to successful leadership today is influence, not authority.” — Kenneth Blanchard

🚨 PUMA Ends Israel Football Association Sponsorship After Boycott Campaign, New Sponsor Erreà Under Fire 🏟️⚠️

📰 What is it about?

• PUMA announced it will end its sponsorship of the Israel Football Association (IFA) on December 31, 2024, following a sustained five-year global boycott campaign, according to the BDS Movement.

• The boycott, driven by 215 Palestinian sports teams and global activists, protested PUMA’s association with the IFA, which includes teams in illegal Israeli settlements.

• Actions against PUMA included protests, office occupations, phone and online disruptions, and public appeals to artists and sports teams to sever ties with the brand.

• New sponsor Erreà, a smaller Italian sportswear brand, signed a reduced-value contract with the IFA in August 2024, set to begin January 2025.

💡 Why it matters?

• Ethical Business Pressure: The global campaign demonstrates how coordinated activism can force major corporations to reconsider partnerships linked to human rights abuses.

• PUMA's Image Impact: The campaign successfully associated PUMA with alleged apartheid practices, harming its reputation and bottom line, with activists highlighting its complicity in Israel’s actions in Gaza.

• Legal and Humanitarian Backdrop: The International Court of Justice (ICJ) has ruled Israel’s military occupation of Gaza and the West Bank illegal and plausible genocide charges have intensified scrutiny.

• Sponsorship Challenges: The IFA faced difficulties securing a new sponsor, resulting in a less lucrative deal with Erreà, highlighting the financial impact of the boycott.

• Broader Activist Momentum: The successful campaign against PUMA may embolden similar efforts against other companies tied to contentious global issues.

🔜 What’s next?

• For Erreà: Activists are calling for the Italian brand to withdraw its sponsorship of the IFA to avoid complicity in alleged war crimes and genocide. Failure to do so could lead to a targeted boycott campaign against the company.

• For Activists: Efforts are expected to ramp up to pressure Erreà and other IFA-affiliated entities, leveraging global networks and public influence.

• For Corporations: PUMA’s retreat sets a precedent for businesses operating in politically sensitive areas, increasing the risks of maintaining controversial partnerships.

• For the IFA: The association may struggle to find long-term, reputable sponsors as boycotts and legal scrutiny grow.

• For Human Rights Campaigns: The success of this boycott reinforces the power of global solidarity in challenging corporate complicity in alleged human rights violations.

🔍In other news…

1. Lebanese founder of Podeo expresses hope after ceasefire announcement.

2. UAE-based Eyewa raises $100 million, with General Atlantic leading.

3. Talabat upsized its IPO to 20%, final share price to be announced today.

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