Happy Sunday everyone!

Saudi Arabia is emerging as a central player in global trade realignments. The Kingdom is deepening economic ties with major partners: 50 UK firms have now set up regional HQs in Riyadh, aligning with Vision 2030. India’s Prime Minister Modi is set to visit next week to boost bilateral cooperation. Meanwhile, the UAE is making strides toward accessing advanced US chips, backed by a $1.4 trillion investment pledge.

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UAE Eyes Breakthrough In US Chip Access With $1.4 Trillion Investment Pledge

📌 What Is It About?

• The United Arab Emirates is optimistic about securing access to advanced semiconductors from the United States, despite ongoing export restrictions, Bloomberg reported.

• Peng Xiao, CEO of G42—UAE’s top AI firm—says “very good and tangible progress” is being made toward acquiring the restricted chips.

• The progress follows a major UAE commitment to invest $1.4 trillion in the US over the next decade.

• The investment pledge was made public after a meeting between President Donald Trump and Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and overseer of a $1.5 trillion business empire including G42.

📌 Why It Matters

• Access to cutting-edge chips is crucial for the UAE’s ambitions to become a global AI hub.

• The country currently falls under the second tier of US AI export rules, limiting the number and type of processors it can import.

• G42’s shift away from Chinese partners—including Huawei—and a strategic alliance with Microsoft marks a major geopolitical pivot to align more closely with Washington.

• The UAE’s rising investments in US tech and energy are part of a broader effort to gain strategic technology access while reinforcing economic ties.

📌 What’s Next

• G42 may play a significant role in the $1.4 trillion investment, though details remain under wraps.

• Executives from G42’s data center and cloud divisions are reportedly planning major expansions in the US, along with new projects in Europe, Africa, and the Gulf.

• A $100 billion US-based AI infrastructure venture backed by Abu Dhabi’s MGX is also in the pipeline, part of a tech-focused vision Sheikh Tahnoon presented in Washington.

• The UAE is positioning itself as a long-term strategic partner to the US—not just another buyer—with ambitions to be at the forefront of the AI revolution.

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Markets

Saudi Arabia to Host India’s Modi Amid Push to Deepen Strategic and Economic Ties

📰 What is it about?

• Saudi Arabia will host Indian Prime Minister Narendra Modi next week for a two-day visit starting Tuesday—the Indian leader’s first trip to the Kingdom in six years.

• Crown Prince Mohammed bin Salman is expected to meet Modi as both nations aim to "further deepen and strengthen" bilateral ties, according to India’s Ministry of External Affairs.

• The visit is part of Saudi Arabia’s broader diplomatic efforts to fortify regional partnerships amid shifting global trade dynamics.

💡 Why it matters

• As the US imposes sweeping tariffs and global trade patterns shift, Saudi Arabia is looking to diversify its economic alliances by expanding strategic partnerships with major Asian economies like India.

• Bilateral trade stood at around $43 billion in 2023–24, with Saudi Arabia supplying key energy resources and India exporting petrochemical and petroleum-related products.

• Strengthened ties with India, one of the world’s fastest-growing economies, support Saudi Arabia’s Vision 2030 goals to attract investment and reduce dependence on oil revenues.

🔜 What’s next?

• Discussions between the two leaders may include energy security, investment opportunities, and collaboration in new sectors like technology and infrastructure.

• The visit comes as India navigates internal protests over controversial changes to laws affecting Muslim charitable properties—an issue closely watched by the Islamic world.

• Saudi Arabia’s proactive diplomatic engagement signals its intent to play a leading role in regional economic stability and global trade realignment.

UK-Saudi Trade Ties Strengthen as British Firms Deepen Investment in Vision 2030

📌 What is it about?

• Fifty UK companies have established regional headquarters in Saudi Arabia, joining over 1,300 British firms already operating in the Kingdom, according to senior UK trade official Peter Ashby.

• Bilateral trade between the UK and Saudi Arabia has exceeded £17 billion ($22.55 billion), with strong momentum expected to continue under Saudi Arabia’s Vision 2030 and the UK’s upcoming Industrial Strategy.

• The UK-Saudi Strategic Partnership Council is leading coordinated efforts across key sectors, backed by flagship initiatives like the ‘Great Futures’ campaign promoting trade, culture, and innovation.

💡 Why it matters

• The deepening partnership reflects Saudi Arabia’s growing appeal as a destination for high-value investments and global talent as it diversifies away from oil.

• UK expertise in clean tech, advanced materials, healthcare, education, and finance is aligning with Vision 2030 priorities, resulting in landmark deals across energy, infrastructure, and research.

• Notable collaborations include HYCAP’s £750 million hydrogen mobility initiative, Graphene Innovations’ commercial facility at NEOM, and AI-focused academic partnerships like Oxford and King Abdulaziz University.

• UK involvement is helping Saudi Arabia scale its giga-projects and clean energy ambitions, while creating thousands of jobs in both nations.

🔜 What’s next?

• Future collaboration is expected in high-growth sectors like advanced manufacturing, biotech, digital innovation, and sustainable infrastructure.

• A UK-GCC Free Trade Agreement is on the horizon, potentially boosting trade by £8.6 billion annually and further reinforcing UK-Saudi ties.

• Upcoming UK-Saudi business forums, such as the Human Capability Initiative and EDGEx, will deepen engagement in skills, education, and innovation.

• With strong diplomatic momentum and private sector appetite, the UK is positioning itself as a long-term partner in Saudi Arabia’s economic transformation journey.

🔍In other news…

• Jordan is planning to build a 320km pipeline to distribute gas for the domestic market from the Risha field in the northwest of the country.

• Adnoc on shortlist to buy Shell South Africa fuel stations.

• Amazon has partnered with MENA social impact startup Manara to train thousands of people in the UAE and Saudi Arabia in cloud software skills.

• Smaller Abu Dhabi sovereign wealth fund ADQ sees growth: Semafor.

• Abu Dhabi firm G42 to use locals’ DNA for medical AI.

• Real estate prices rise in Ras Al Khaimah as demand outgrows supply.

• Dubai Land Department (DLD) signed 11 agreements with diverse local and international entities.

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