Happy Wednesday everyone!

A UN report has accused over 60 global companies — including tech and defense giants — of enabling what it calls Israel’s “genocidal campaign” in Gaza, sparking fresh debate over corporate accountability in conflict zones. Saudi Arabia’s Public Investment Fund crossed the $1 trillion mark in 2024, but saw profits fall 60% due to rising costs and project impairments. Meanwhile, Donald Trump has officially signed an executive order lifting US sanctions on Syria, opening the door for reconstruction efforts and restoring Syria’s access to the international financial system.

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PIF Crosses $1 Trillion Mark In 2024 But Sees 60% Drop In Annual Profit

🔹 What Is It About

• Saudi Arabia’s Public Investment Fund (PIF) announced its total assets exceeded 4.321 trillion riyals ($1.15 trillion) in 2024, up 18% from the previous year.

• Saudi Arabia’s Public Investment Fund (PIF) earned $34.5 billion from investment activities in 2024, a 38% increase year-on-year — marking the second consecutive annual rise.

• Dividend income more than doubled, aided by strong returns from holdings like Saudi Aramco and Saudi Telecom Co., along with strategic asset sales including shares in Nintendo.

• Despite investment gains, net profit plunged over 50% to $7 billion, weighed down by inflation, high interest rates, and impairments on major domestic projects.

🔹 Why It Matters

• The fund is central to Saudi Arabia’s Vision 2030, tasked with delivering economic transformation through mega projects like NEOM.

• However, growing fiscal deficits and weaker oil revenues are forcing the PIF to rethink domestic spending, cut project budgets, and explore alternative funding channels such as debt issuance and share sell-offs.

• The divergence between rising investment income and falling net profit highlights the financial strain of sustaining large-scale national development plans amid a tighter global macro environment.

🔹 What’s Next

• PIF plans to ramp up annual capital deployment to $70 billion and has increased its 2030 AUM target to $2.67 trillion, up from $1.87 trillion.

• While the fund aims to reduce the percentage of global investments to 18%, the absolute value of overseas deals will still grow.

• Future performance will depend on balancing domestic priorities with international diversification, managing costs, and securing sustainable sources of capital amid uncertain market conditions.

🎙️ “Points of Growth”, Yango Ads’ podcast about AdTech, Releases Episode 3

Yango Ads, the AdTech arm of Yango Group, runs its very own podcast - Points of Growth. Tailored for marketers, founders, and growth teams, this series explores practical strategies for driving sustainable growth through data, AI, and smart advertising.

On July 1, Episode 3 launched, focusing on a topic of app monetization. The host Neha Dawar, Business Developer Manager at Yango Ads, is joined by Lucas Calixto, Business Developer Manager, and Alex Khoroshilov, Technical Customer Success Manager, to discuss effective monetization strategies, the latest ad formats, AI as a co-pilot and actionable tips for developers looking to increase revenue.

The podcast kicks off with a six-episode season tackling challenges in fast-moving sectors like tourism, fashion, real estate, retail, and gaming - where digital acceleration is rewriting the rules of engagement. The first two episodes - on AdTech trends and essential advertising toolbox - are already available on Spotify, YouTube Music, and Apple Music.

Markets

UN Report Accuses 60 Global Companies of Corporate Complicity In Israel’s Genocide in Gaza

🔹 What Is It About

• A new UN report accuses over 60 global companies — including arms manufacturers, tech giants, and heavy machinery firms — of enabling Israel’s military actions in Gaza and supporting settlements in occupied Palestinian territories. [Read the report here]

• The report, authored by Francesca Albanese, UN Special Rapporteur on the Occupied Palestinian Territories, labels Israel’s campaign in Gaza as “genocidal” and “financially lucrative” for private entities.

• Firms named include Lockheed Martin, Leonardo, Caterpillar, HD Hyundai, Alphabet, Amazon, Microsoft, IBM, and Palantir Technologies.

🔹 Why It Matters

• The report links corporate profits to alleged violations of international law, urging companies to cease operations tied to Israel’s military and settlement activities.

• While some companies have responded or defended their roles, many declined comment — and the report did not publish their replies.

• It highlights a growing global debate over ethical investing, corporate accountability, and complicity in war crimes.

• The timing is critical: over 56,000 Palestinians have died in Gaza since the war began, per Gaza Health Ministry, and Israel continues to reject genocide allegations, citing self-defense after the October 7 Hamas attacks.

🔹 What’s Next

• The report will be presented Thursday at the UN Human Rights Council, which, while lacking enforcement power, has previously influenced international legal proceedings.

• Albanese is calling for legal accountability for executives and global divestment from companies tied to Israel’s military-industrial network.

• Israel and the U.S. have withdrawn from the Council, calling it biased, raising questions over the impact and enforcement of this latest report.

• The findings are likely to intensify international scrutiny and pressure on corporations, particularly those in tech and defense, over their role in armed conflicts.

Trump Lifts US Sanctions On Syria Officially, Paving Way For Reconstruction And International Reengagement

🔹 What Is It About

• Former U.S. President Donald Trump has signed an executive order ending the U.S. sanctions program on Syria, marking a major shift in American foreign policy.

• The move follows the ouster of Bashar Al-Assad in December by Islamist-led rebels and aims to support post-war reconstruction and economic reintegration.

• The order revokes the 2004 national emergency declaration on Syria, terminates related executive orders, and calls for waivers on export controls and restrictions.

🔹 Why It Matters

• Syria’s new President Ahmed Al-Sharaa and Foreign Minister Asaad Al-Shibani hailed the decision as a turning point for reconstruction and global engagement.

• The move allows humanitarian groups, investors, and international institutions to legally transact with Syrian entities, potentially unlocking billions for rebuilding.

• The Caesar Act and other legislative sanctions remain in place, but the White House says it's reviewing suspension criteria tied to those laws.

• Trump’s decision reflects a wider policy pivot — Europe has also ended its sanctions, and Congress is debating full repeal.

🔹 What’s Next

• The White House will review Syria’s designation as a state sponsor of terrorism and reassess designations of groups like Hayat Tahrir Al-Sham, now linked to Syria’s new leadership.

• U.S. officials say further normalization depends on Syria’s progress toward ties with Israel, counterterrorism measures, and the expulsion of Palestinian militant groups.

• The U.S. Treasury has already issued a general license enabling transactions with the Syrian central bank and state-owned firms.

• As sanctions ease, foreign investment, humanitarian aid, and diplomatic ties are expected to ramp up, though legal uncertainties around U.S. legislative sanctions may still deter some investors.

👨‍💻From Smashi Business’ Desk

• Dreamers: Meet the founding chairman of Al Habtoor Group, Khalaf Al Habtoor.

• Jeff Bezos’ $50M wedding to Lauren Sánchez in Venice drew a guest list of global billionaires — many with major stakes in the Gulf.

• Elon Musk warned there’s a 10–20% chance AI could go rogue — and now, it’s not just theory.

🔍In other news…

• Slower profit growth ‘no cause for concern’ for Saudi banks

• Saudi capital market regulator clears three IPOs

• UAE energy deal makes Madagascar grid greener

• Aldar buys logistics assets in Abu Dhabi for $144m

• Morgan Stanley Saudi Arabia to act as market maker for 52 companies: Tadawul 

• Ericsson to scale up graduate hiring, internships in Saudi Arabia, senior official reveals

• CBUAE issues commemorative coins to honor Zayed and Rashid campaign

• Weaker US dollar dents purchasing power and discretionary spending in Gulf

• Dubai: Businessman allegedly bought villa with funds from $650 million US healthcare scam

🏦Crypto Corner

• Bitcoin Miner Tied to Trump Sons Plans Dubai Crypto Trading Team

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