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Here’s a quick look at the key developments shaping global business today. U.S. President Donald Trump has called on Saudi Arabia to expand its planned U.S. investment package to $1 trillion and urged the kingdom to lower oil prices, signaling a renewed focus on strengthening economic ties. Meanwhile, Saudi Prince Alwaleed’s Kingdom Holding has expressed interest in investing in TikTok, provided Elon Musk or others acquire the platform, adding fresh intrigue to the app’s ownership discussions.

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Trump Calls for $1 Trillion Saudi Investment and Lower Oil Prices

📰 What is it about?

• At the World Economic Forum in Davos, U.S. President Donald Trump announced plans to press Saudi Arabia and OPEC to reduce oil prices while urging Riyadh to increase its U.S. investment commitment to $1 trillion, up from the initially reported $600 billion.

  Key points:

  • Investment Expansion: Saudi Arabia has pledged $600 billion for trade and investment in the U.S. over the next four years. Trump aims to raise this figure to $1 trillion.

  • Oil Prices: Trump plans to pressure Saudi Arabia and OPEC to lower global oil prices, citing the importance of affordable energy for the U.S. economy.

💡 Why it matters?

1. Strengthening U.S.-Saudi Relations

• The U.S. and Saudi Arabia have a history of economic and strategic partnerships, especially in energy and defense. This expanded investment could further solidify their ties.

• The proposed $1 trillion investment could bolster U.S. infrastructure, technology, and trade sectors.

2. Impact on Global Oil Markets

• Lower oil prices could benefit consumers and businesses globally but may challenge oil-exporting economies.

• Pressuring OPEC to increase oil production aligns with Trump’s strategy to maintain low energy costsdomestically.

3. Saudi Arabia’s Global Ambitions

• The investment reflects Saudi Arabia’s efforts to diversify its economy under Vision 2030, moving away from oil dependency and enhancing its international economic influence.

• Collaborating with the U.S. could boost Saudi access to advanced technologies and strategic markets.

🔜 What’s next?

For the U.S.

• If Saudi Arabia agrees to the $1 trillion investment, it could lead to significant advancements in U.S. infrastructure, technology, and energy sectors.

• The demand for lower oil prices may face resistance from OPEC, which prioritizes stable revenues for member states.

For Saudi Arabia

• The kingdom may negotiate terms to align the investment with its Vision 2030 objectives, emphasizing sectors like renewable energy, AI, and advanced manufacturing.

• Lower oil prices could impact Saudi budget revenues, potentially requiring adjustments to domestic economic policies.

For Global Markets

• A significant Saudi investment in the U.S. could shift global capital flows and influence trade dynamics.

• Changes in oil prices could ripple through industries worldwide, affecting production costs, inflation rates, and energy transitions.

Markets

Saudi Prince’s Kingdom Holding Eyes TikTok Investment If Musk or Others Buy It

📰 What is it about?

• Saudi Prince Alwaleed Bin Talal's Kingdom Holding Company (KHC) has expressed interest in investing in TikTok if it is acquired by Elon Musk or another prominent buyer. The announcement coincides with ongoing efforts to secure a buyer for the app amid regulatory uncertainty in the U.S.

  Key highlights:

  • KHC’s Interests: The firm is open to partnering with Musk, given its existing stakes in his ventures, including X(formerly Twitter) and xAI.

  • Regulatory Context: TikTok's U.S. operations remain in flux, with President Trump’s executive order delaying a potential ban and opening the door for acquisition talks.

  • Broader Investments: KHC also owns stakes in sectors like aviation (e.g., flynas), petrochemicals, healthcare, and real estate, maintaining a diverse portfolio.

💡 Why it matters?

1. Strategic Partnerships with Musk

• Kingdom Holding’s potential investment reflects confidence in Musk’s ability to manage high-stakes, disruptive technologies.

• KHC’s collaboration with Musk could bring additional capital and influence to an acquisition deal.

2. TikTok’s Future in the U.S.

• Regulatory pressure on TikTok has raised questions about its ownership and data practices.

• A Musk-led acquisition could address national security concerns while leveraging TikTok’s global user base and ad revenue potential.

3. Kingdom Holding’s Growth Strategy

• The move aligns with Prince Alwaleed’s reputation as a savvy global investor, seeking opportunities in transformative technologies.

• Expanding into social media complements KHC’s investments in other high-growth industries like aviation and e-commerce.

🔜 What’s next?

For TikTok

• Discussions with potential buyers, including Musk, are likely to intensify. A sale could reshape the app’s future and alleviate regulatory challenges.

• A new ownership structure might lead to operational and strategic changes, especially in its U.S. operations.

For KHC

• If the investment materializes, it could strengthen KHC’s position in tech and social media, adding to its diverse portfolio.

• KHC’s interest in TikTok reflects its focus on high-growth opportunities, excluding cryptocurrency, which it has dismissed based on practical considerations.

For Musk and Other Buyers

• Musk’s involvement could bring innovation and align TikTok with his other ventures like X and xAI, creating synergies across platforms.

• A successful acquisition would position Musk as a key player in the social media landscape, further expanding his influence.

Abu Dhabi’s Phoenix Group Ventures into Africa with Ethiopian Bitcoin Mining Deal

What is happening?

• Phoenix Group, a blockchain and crypto solutions company listed in Abu Dhabi, has signed an 80-megawatt power purchase agreement in Ethiopia, marking its debut in the African market. This move highlights Phoenix's ambition to establish itself as a global leader in Bitcoin mining.

  Key Details:

  • Partnership: The deal involves collaboration with Abu Dhabi-based cybersecurity firm Data7.

  • Energy Supply: The agreement will ensure sustainable energy for Phoenix’s mining operations, starting in Q2 2025.

  • Global Reach: Phoenix plans dual listing on Nasdaq and is preparing to expand to South America by 2025.

  • Backing: The company is supported by Abu Dhabi’s International Holding Company and has a total mining capacity exceeding 765 MW globally.

Why it matters:

1. Ethiopia as a Strategic Location

• Ethiopia offers significant renewable energy potential, including hydroelectric power, which aligns with Phoenix’s sustainability goals.

• Africa is an emerging frontier for crypto mining due to low operational costs and untapped energy resources.

2. Phoenix Group’s Growth Trajectory

• Phoenix is scaling aggressively, with operations in the UAE, US, Canada, and the CIS region, alongside major projects like the $300M Oman crypto-mining farm.

• The Ethiopian deal underpins Phoenix’s vision to be at the forefront of decentralized finance (DeFi) and blockchain innovation.

3. Rising Role of Cryptocurrencies in Africa

• Africa has seen increasing crypto adoption, with nations like Nigeria leading in peer-to-peer Bitcoin trading.

• Mining investments like Phoenix’s could foster technological development, infrastructure growth, and job creation in the region.

What’s next?

For Phoenix Group

• Ethiopian Launch: Initial operations in Ethiopia are expected to set a benchmark for future African expansion.

• South America Expansion: Preparations for a 2025 launch will diversify its global footprint and hedge against regional risks.

• Nasdaq Listing: A dual listing could attract global investors and further enhance its capital base for expansion.

For Ethiopia

• Increased foreign direct investment (FDI) and potential to harness underutilized energy resources.

• Opportunities to develop local skills and infrastructure in blockchain and crypto technologies.

For the Crypto Industry

• The deal reinforces a global trend of sustainable Bitcoin mining, leveraging renewable energy sources to address environmental criticisms.

• Africa’s role in the crypto ecosystem is likely to grow, with more players exploring untapped markets.

🔍In other news…

1. UAE billboards are expensive. This is what it can cost!

2. Investors reportedly lost $227M in Israeli startup AnyVision, now Oosto, after allegations of surveillance in the West Bank.

3. Oracle has announced plans to quintuple its investment in Abu Dhabi to address the rising demand for artificial intelligence and cloud services in the UAE.

4. January 22’s highly anticipated Arabian Business Achievement Awards 2025, set to take place in Dubai, was suddenly canceled without explanation.

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