Good morning Smashi Business Readers!

In today’s news, the UAE government introduces stricter food price controls, targeting key staples like rice, sugar, and poultry, to protect consumers amidst global price fluctuations. Meanwhile, Abu Dhabi’s tourism sector flourishes, adding 37,000 jobs in 2024 as visitor numbers soar, contributing significantly to the emirate's GDP and supporting its economic diversification efforts. On the tech front, Elon Musk's AI venture, xAI, secures another $6 billion in funding and some of the participants are the biggest names from the Middle East.

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Musk’s xAI Raises $6 Billion with Kingdom Holding, QIA, OIA and MGX Participating

📰 What is it about?

• Elon Musk’s artificial intelligence start-up, xAI, has successfully raised an additional $6 billion in its Series C funding round. Key investors include Saudi Arabia’s Kingdom Holding, Qatar Investment Authority, Oman Investment Authority, and global tech giants like Nvidia and AMD.

• This follows a similar $6 billion raise earlier this year in its Series B round, continuing to fuel xAI’s efforts in the AI sector. xAI’s Grok chatbot, designed to rival OpenAI’s ChatGPT, is positioned as a conversational AI aimed at understanding the universe, with plans for further development and infrastructure scaling.

💡 Why it matters?

• This significant investment signals the growing competition in the AI space, with xAI emerging as a serious contender against major players like OpenAI and Google.

• The involvement of sovereign wealth funds and major tech corporations highlights the global interest in advancing AI technologies.

• xAI’s ambition to scale rapidly, alongside the backing of high-profile investors, positions it to play a major role in the future of AI, particularly in large-scale applications and research into the nature of reality.

🔜 What’s next?

• With the newly raised funds, xAI plans to enhance its infrastructure, develop groundbreaking AI products, and accelerate research.

• The company is expected to continue expanding the capabilities of its Grok AI platform, including the upcoming Grok 3, which Musk promises will be a major leap forward.

• xAI's future developments could reshape the AI landscape, especially as it continues to push for more open-source contributions and industry innovations.

Markets

UAE Implements Stricter Price Controls on Essential Foods to Protect Consumers

📰 What is it about?

• The UAE has introduced new measures to enforce price controls on nine staple food items, including cooking oil, eggs, dairy, and rice, starting January 2.

• Under these new rules, prices can only be raised with approval from the Ministry of Economy, and a task force will oversee enforcement. The regulations aim to protect consumers from price hikes driven by unforeseen circumstances and ensure transparency by requiring clear unit pricing in stores.

• This initiative follows global price increases in food commodities and previous violations detected by inspectors.

💡 Why it matters?

• This move is significant for both consumers and retailers in the UAE, as it aims to stabilize the cost of essential food items amid rising global food prices.

• By introducing stricter regulations, the government aims to curb inflationary pressures on everyday goods and promote fairness in the marketplace.

• The policy also holds retailers accountable for price hikes and ensures that consumers have access to transparent pricing, which could foster more competition and prevent unjustified markups.

🔜 What’s next?

• Starting in January, the Ministry of Economy will closely monitor the pricing of food and cleaning products, with the new regulations taking effect across shops and online retailers.

• Retailers will need to adhere to the clear unit pricing rules, promoting transparency.

• As global food prices remain volatile, the government’s efforts to regulate price increases could be further expanded, and further actions may be taken to address violations or adjust policies as needed.

Abu Dhabi Adds 37,000 Tourism Jobs as Visitor Numbers Surge in 2024

📰 What is it about?

• Abu Dhabi's tourism sector has expanded rapidly, adding 37,000 jobs in 2024, boosting the total number of jobs in the industry to 225,000. The emirate's tourism sector is projected to contribute nearly $15 billion to its GDP this year, with a target of over $24 billion by 2030.

• The Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi) has focused on global promotional campaigns, and the city is experiencing near-full hotel occupancy as demand rises.

• New investments in infrastructure, such as the Guggenheim Abu Dhabi and the Natural History Museum, are expected to further attract high-spending tourists.

💡 Why it matters?

• The rapid growth of Abu Dhabi's tourism sector aligns with its broader efforts to diversify the economy beyond oil.

• With a clear focus on attracting international visitors, Abu Dhabi is positioning itself as a global tourism and cultural hub. The surge in tourism-related jobs and investment in infrastructure highlights the city’s growing role in the Middle East's tourism landscape.

• Additionally, the drive for Emiratisation in tourism jobs aims to empower local citizens and create more opportunities for UAE nationals in this thriving sector.

🔜 What’s next?

• Abu Dhabi’s tourism strategy targets 39.3 million visitors by 2030, up from 24 million in 2023, and plans to add more hotel rooms to meet growing demand.

• With continued investment in cultural institutions, hotels, and infrastructure, the city is poised for long-term growth in the tourism and hospitality sectors.

• As the UAE capital diversifies its market reach and taps into new international regions, the tourism industry will likely continue to be a major driver of economic growth.

• Additionally, the upcoming Saudi Arabia World Cup in 2034 is expected to have a positive spillover effect on tourism in Abu Dhabi and the wider Gulf region.

🔍In other news…

1. Landmark Group’s Circulife plans to reshape fast fashion.

2. Abu Dhabi’s Mubadala acquires 80 percent stake in Global Medical Supply Chain, Al Ittihad Drug.

3. Dubai Duty Free’s 41st anniversary sales reached US$16.4 million in 24 Hours.

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