UAE Announces 1 Billion AI Development Initiative for Africa...

UAE News:

The Ministry of Human Resources and Emiratisation (MoHRE) announced that Monday and Tuesday, December 1 and 2, will be an official paid holiday for all employees in the private sector across the UAE to mark the 54th Eid Al Etihad.

UAE Vice President approved the creation of a national investment fund (with an initial capital of AED 36.7bn) aimed at channelling foreign investment into strategic, high-growth sectors that align with the “We the UAE 2031” vision. This institutional move centralises control over future investments, optimising capital allocation and efficiency. Crucially, this is concurrent with a rapid digitalisation drive spanning advanced infrastructure such as 5G and data centre capacity, as well as investments in sustainable technology, notably solar and ClimateTech. All these investments will collectively accelerate the UAE’s economic diversification agenda.

The Government of Dubai’s record three-year 2026-28 budget has been approved: total spending of AED 302.7bn, total revenues of AED 329.2bn and an operating surplus of 5%. 

South Korea formally agreed to join the UAE’s Stargate AI Project to build a massive new artificial intelligence data campus in the UAE, thereby establishing a deep cooperative partnership in artificial intelligence development and computing infrastructure.

UAE announced a USD 1bn “AI for development initiative” dedicated to expanding AI adoption and infrastructure development across Africa. This strategic investment will help establish the UAE as a dominant digital partner in Africa, driving future returns via access to vast data resources.

Passenger traffic at Dubai International Airport reached an all-time quarterly high of 24mn in Q3 (+2% YoY), taking the traffic till Q3 to 70mn (+2% YoY). India, Saudi Arabia, the UK, Pakistan and the US were the top source markets for passengers. London, Riyadh, Mumbai, Jeddah and New Delhi were the busiest destinations.

According to official data, Abu Dhabi’s real estate deals grew by 43% YoY to AED 94bn in January-September, from 29,400 transactions (almost doubled from the period before), reflecting robust investor sentiment.

MENA News:

Remittances from Egyptians working abroad surged by 45.1% YoY to USD 30.2bn in January-September 2025, according to central bank data. In Sep alone, remittances grew by 30.9% to USD 3.6bn. This capital inflow highlights the critical role of the diaspora as the country’s most stable and significant source of foreign currency earnings.

The General Authority for Investment in Egypt is targeting a substantial increase in the industrial sector’s share of GDP to between 30% and 32% by 2030 (from 14-15% currently) and an ambitious goal of raising exports to USD 145bn by 2030. However, achieving this target will require massive private sector investment, streamlined licensing processes, and successful integration into regional manufacturing supply chains, among others.

Kuwait has invited bids for a new large-scale 0.5 GW solar energy project. This will be developed under the PPP framework and is a crucial step in translating Kuwait’s long-term renewable energy targets into infrastructure development. The project, when complete, will supply the Ministry of Electricity under a 30-year power purchase agreement.

Omani airports welcomed 11.17 million passengers by the end of September 2025, up 0.7% YoY, with Indians, Omani and Bangladeshi passengers the largest nationalities using the airports. This sustained recovery in air travel will accelerate the development of services such as retail, hospitality and logistics, thus ensuring robust tourism sector performance.

At least 20 of the 60 road projects in Oman’s OMR 1bn project to build and expand its national road network are about 70% complete, according to the government. When completed, this upgrade will enhance physical logistics and internal connectivity as well as improve efficiency and lower non-oil trade costs.

Oman signed an agreement with Airbus to design, manufacture and launch its first communications satellite, in a bid to modernise and secure the national telecommunications infrastructure.

The US authorised the export of advanced US semiconductors to companies in Saudi Arabia and the UAE, according to the Commerce Department. This decision grants access to cutting-edge technology crucial for large-scale AI development, allowing for significant acceleration of the AI and supercomputing ambitions of both countries.

US Treasury holdings by Saudi Arabia, the 18th largest investor globally, inched up 0.9% MoM to USD 134.3bn in September, though in YoY terms, it was down 6.7%. Kuwait’s holdings climbed to a record high of USD 59.43bn, up 0.3% mom & 23.1% YoY (previous high: USD 59.24bn in August 2025). UAE holdings declined by 5.0% mom to USD 103.3bn, the third consecutive month of USD 100bn+ readings, though it surged by 43.7% YoY.

Saudi Arabia’s Crown Prince, during his meeting with the US President, pledged to increase investment in the US to USD 1trn (from USD 600bn promised earlier this May), though no details or timetable were given. This investment surge will strengthen reciprocal economic and political ties, embedding Saudi Arabia as a crucial and permanent stakeholder in the future of the US energy, technology, and financial sectors. Separately, a US-Saudi Strategic Defence Agreement was also signed – this includes a “major defence sale package” of F-35 fighter jets & American tanks.

Total investments and agreements signed by Saudi and US companies have reached USD 57.5bn across multiple sectors (beyond the oil sector, including manufacturing and technology), confirmed the Saudi Minister of Investment (this includes commitments announced earlier in May). Meetings have painted Saudi Arabia as a reliable, strategic partner and a high-growth destination for private international capital.

Saudi Aramco signed around seventeen MoUs and agreements deals worth over USD 30bn with US partners, largely focused on energy and industrial supply chains. This commitment emphasises Aramco’s pivotal role in transforming its business beyond upstream oil production; it will enable Aramco to leverage US technology and expertise to enhance its domestic downstream and chemicals capabilities -hence solidifying its international presence.

Bilateral trade volume between Saudi Arabia and the US exceeded USD 500bn over the last decade; the US is Saudi Arabia’s second-largest import partner. Bilateral trade touched USD 16bn in H1 2025, and USD 33bn in 2024. Such sustained high trade volume could provide a solid foundation for a future FTA / CEPA aimed at increasing digital trade and advanced manufacturing cooperation.

Saudi Arabia is set to offer remote, fractional property ownership opportunities to foreign investors, announced by the Real Estate Registry Authority. This regulatory innovation aims to open the domestic real estate market to international retail investors for the first time: about 4 million “parcels”, or fractional shares, are being tokenised across property in the country and could be available by the end of the year. This policy could potentially expand the funding base for giga-projects and residential development, positioning real estate as a new avenue for FDI while improving housing affordability and access for the expat workforce.

Saudi Arabia’s National Debt Management Center raised SAR 5.83bn via sukuk issuance in November, down by 22.7% MoM.

Global News:

Major equity markets ended in the red, as concerns grew about tech valuations, though rate cut expectations towards the end of the week led to a rally; in the UK, FTSE closed 1.7% lower versus a week before as investors wait for the budget announcement this week. These declines were mirrored in regional markets, with lower oil prices also weighing on the indices. The USD hit a 6-month high versus a basket of currencies last week; JPY slid to a 10-month low against the greenback, causing the Bank of Japan governor to signal a potential hike at the December meeting. Amid discussions about the proposed Russia-Ukraine peace deal, oil prices ended lower and gold slid slightly to close around USD 4,065 an ounce.

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SOURCE:
Nasser Saidi & Associates

Arabian Business