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Oil prices slip on concerns over US-China trade tensions

The two top oil consumers have recently renewed their trade war, imposing additional port fees on ships carrying cargo between them

Reuters
Reuters

20 October, 2025

Oil prices slip on concerns over US-China trade tensions
Image credit: Getty Images

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Oil prices dipped on Monday, pressured by worries over a global glut as escalating US-China trade tensions added to concerns about an economic slowdown and weaker energy demand.

Brent crude futures fell 24 cents, or 0.4 per cent, at $61.05 a barrel at 0032 GMT, while US West Texas Intermediate futures were down 21 cents, or 0.4 per cent, at $57.33, erasing gains from Friday.

Both benchmarks declined more than 2 per cent last week, marking their third consecutive weekly decline, partly due to the International Energy Agency’s outlook for a growing supply glut in 2026.

Read-Unexpected drop in Middle East oil premiums raises Saudi pricing dilemma

“Concerns about oversupply from increased production by oil- producing nations, coupled with fears of an economic slowdown stemming from escalating US-China trade tensions, are fuelling selling pressure,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.

“While the US is stepping up pressure on buyers of Russian crude, the upcoming summit between US President Donald Trump and Russian President Vladimir Putin adds uncertainty to the outlook, making it difficult for some investors to adjust their positions,” he said.

Last week, the head of the World Trade Organization said she had urged the US and China to de-escalate trade tensions, warning that a decoupling by the world’s two largest economies could reduce global economic output by 7 per cent over the longer term.

The two top oil consumers have recently renewed their trade war, imposing additional port fees on ships carrying cargo between them – tit-for-tat moves that could disrupt global freight flows.

Meanwhile, Trump and Putin agreed on Thursday to hold another summit on the war in Ukraine, even as Washington pressured India and China to stop buying Russian oil.

Following talks with Ukrainian President Volodymyr Zelenskiy at the White House on Friday, Trump implored both Ukraine and Russia to “stop the war immediately,” even if it means Ukraine conceding territory.

US and European pressure on Asian buyers of Russian energy could restrict India’s oil imports from December, leading to cheaper supplies for China, trade sources and analysts said.

On the supply side, US energy firms last week added oil and natural gas rigs for the first time in three weeks, energy services firm Baker Hughes said in its closely followed report on Friday.

Henkel’s Ahmed ElNahal on inclusion, localisation, AI, people-centric values

The head of HR for Henkel IMEA discusses HR in a digital-first economy, and why the next phase of inclusion in the region is as much about belonging as it is about representation

Neesha Salian
Neesha Salian

20 October, 2025

Henkel’s Ahmed ElNahal on inclusion, localisation, AI, people-centric values
Image: Supplied

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As diversity, equity, and inclusion (DEI) take on new dimensions across the GCC, global companies are learning how to adapt their strategies to local values without losing sight of global standards. Henkel IMEA is also focused on shaping this balance.

From advancing gender equity and integrating AI into HR, to aligning localisation mandates with international benchmarks, the company’s approach reflects the evolving identity of the region’s workforce — one that values both cultural authenticity and innovation.

In this conversation, Ahmed ElNahal, head of HR for Henkel IMEA, discusses how the company is redefining DEI for the Gulf, the future of HR in a digital-first economy, and why the next phase of inclusion in the region is as much about belonging as it is about representation.

What emerging HR trends, such as hybrid work or employee wellbeing, do you see shaping the GCC workplace over the next five years?

The GCC workplace is evolving rapidly, and I see three trends shaping its future:

  • Hybrid work as a permanent feature, but adapted to specific needs — balancing flexibility with in-person collaboration when necessary.

  • Employee wellbeing as a business priority, not a benefit. This includes holistic programmes that address mental health, financial security, and family support.

  • Skill agility as the new currency: organisations will prioritize continuous reskilling to keep pace with automation, AI, and sustainability demands.

Ultimately, the GCC is a region that blends tradition with innovation, and HR will play a central role in shaping workplaces where both can thrive together.

How are GCC organisations leveraging AI and HR analytics to enhance talent acquisition and retention in a competitive, digitally transforming market?

The GCC is at the forefront of digital transformation, and HR is no exception. Companies, including Henkel, are increasingly using AI-powered platforms to enhance recruitment, broaden reach, and minimise unconscious bias.

People analytics enable us to understand retention drivers, predict attrition risks, and design targeted engagement strategies based on data-driven insights.

The broader message here is that we must move from being reactive to predictive — where AI is an enabler.

That said, it is equally important to emphasise that AI does not replace the human element. The real differentiator will be having the right people who are equipped to use AI intelligently and responsibly.

How have you tailored DEI strategies to address the GCC’s unique cultural diversity, ensuring inclusion aligns with regional values like collectivism?

DEI has long been part of our way of thinking — and the GCC is no exception. Here, diversity is defined not only by nationality but also by the rich cultural blend of tradition, collectivism, and rapid modernisation.

In the GCC, nationality diversity is naturally an edge. With such a high representation of different nationalities in our workforce, nationality itself acts as an enabler. But our DEI agenda goes far beyond that. Our approach is to respect local values while integrating global best practices.

For example, we focus on creating platforms for cross-cultural collaboration that leverage the strengths of more than 60 nationalities represented in our workforce. We also adapt our programmes to emphasise family, community, and shared responsibility — values that resonate strongly in this region. This allows us to strengthen inclusion without compromising cultural authenticity.

The next level for us is to shift the conversation from diversity alone to inclusion — ensuring that everyone can co-exist in an ecosystem where their uniqueness is amplified, valued, and leveraged as an advantage. By focusing on inclusion, we can create an environment where cultural authenticity and global best practices reinforce one another.

What specific initiatives has Henkel IMEA implemented to advance gender equity in the GCC, and what broader lessons can organisations draw from these efforts?

Gender equity has long been a central pillar of Henkel IMEA’s DEI agenda. In the GCC, we have launched mentoring and sponsorship programs to accelerate female talent development in all functions. We were also early adopters of smart work and flexible models, helping women balance responsibilities without slowing career growth.

We also arranged leadership roundtables where female leaders engage directly with senior management. Importantly, Henkel has extended the duration of maternity leaves and introduced paternity leaves in our policy framework, ensuring both mothers and fathers can fully enjoy the “moments that matter.”

One of the key lessons we’ve learned is that advancing gender equity requires both structural enablers (like flexible policies) and cultural enablers (role models, storytelling, and visible leadership commitment). When both are present, progress is both tangible and sustainable.

How can HR leaders balance localisation mandates like Saudisation and Emiratisation with global standards to build sustainable talent pipelines in the GCC?

Localisation is a clear national priority across the GCC. We work to balance national mandates with global standards by focusing on capability building, long-term employability, and career growth opportunities.

We partner with universities and local talent pools to not only meet quotas but to develop future-ready leaders. We combine this with our global learning frameworks, ensuring localised talent is also equipped with international exposure and best practices.

This dual approach creates a sustainable pipeline of talent that meets national mandates while strengthening our global competitiveness. Our emphasis is always on competence.

In the GCC, we have the advantage of a strong educational system combined with increasing opportunities for young talent. When you merge that with professionals who are deeply familiar with the local culture and dynamics, localisation becomes an opportunity and an enabler instead of a constraint.

Abu Dhabi’s IHC acquires majority stake in Pakistan’s First Women Bank

Established in 1989, FWBL operates as a full-fledged commercial bank with 42 branches across the country, offering retail, SME, and corporate banking services

Neesha Salian
Neesha Salian

19 October, 2025

Abu Dhabi’s IHC acquires majority stake in Pakistan’s First Women Bank
Image: IHC

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International Holding Company (IHC), a global investment firm, has acquired a majority stake in the state-owned First Women Bank Limited (FWBL) following Pakistan’s first-ever bank privatisation under the Inter-Governmental Commercial Transactions Act of 2022.

The acquisition marks a milestone in UAE–Pakistan economic cooperation and signals growing investor confidence in Pakistan’s financial sector and reform agenda.

Established in 1989, FWBL operates as a full-fledged commercial bank with 42 branches across the country, offering retail, SME, and corporate banking services.

IHC to recapitalise FWBL, launch modernisation

Under the agreement, IHC will recapitalise the bank to meet the minimum capital requirement and launch a modernisation programme aimed at transforming FWBL into a digitally driven, AI-enabled financial institution.

The strategy includes upgrading core banking infrastructure, automating operations, and integrating advanced analytics to enhance efficiency and customer experience.

As part of the overhaul, FWBL will undergo rebranding to reflect its expanded mandate of serving a broader customer base and promoting financial inclusion nationwide. IHC also plans to invest in workforce development, fostering a performance-oriented culture and upskilling talent to drive innovation.

“Our investment in First Women Bank Limited reflects IHC’s confidence in Pakistan’s financial potential and our shared vision for long-term economic growth,” said Syed Basar Shueb, CEO of IHC. “We aim to support the bank’s modernisation journey by leveraging technology, automation, and AI to strengthen financial infrastructure and create sustainable value.”

The deal follows IHC subsidiary International Resources Holding’s joint venture earlier this year with the Government of Balochistan, underscoring IHC’s growing footprint in Pakistan across finance, industry, and infrastructure.

Together, these initiatives reflect IHC’s long-term goal of fostering technology-led growth and deepening economic ties between the UAE and Pakistan.

Read: IHC to merge 2PointZero, Multiply Group and Ghitha Holding through share swap deal

New rules in Dubai: Delivery riders barred from fast lanes starting November

The regulation was shaped by specialised traffic studies and developed under RTA’s existing governance framework for commercial transport

Nida Sohail
Nida Sohail

19 October, 2025

New rules in Dubai: Delivery riders barred from fast lanes starting November
Image credit: RTA/Website

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Dubai is embarking on a major overhaul of its transport regulations and service standards, reflecting its long-term vision for safer, smarter, and more sustainable mobility. In a joint move, Dubai’s Roads and Transport Authority (RTA) and the Dubai Police General Headquarters have announced new regulations targeting the movement of delivery motorcycles on high-speed lanes, set to take effect on November 1, 2025.

Simultaneously, the RTA has reported significant improvements across the city’s taxi network, driven by the rollout of 28 development initiatives in 2025. These twin developments signify a coordinated effort to enhance public safety, customer satisfaction, and operational efficiency, key pillars of Dubai’s Economic Agenda D33, which seeks to double the emirate’s economy over the next decade.

Under the new rules, delivery motorcycles will no longer be permitted to use the two leftmost lanes on roads with five or more lanes, and the leftmost lane on roads with three or four lanes. On roads with two lanes or fewer, there will be no restrictions on which lanes delivery bikes can use.

Read more-Dubai’s RTA, DET issue new regulation to strengthen tourist transport sector

The regulations are part of a broader initiative to reduce road accidents involving delivery motorcycles, improve traffic flow, and bring Dubai’s road usage in line with international best practices.

“This decision is a result of ongoing coordination with public and private partners to enhance safety and service standards,” said Hussain Al Banna, CEO of the Traffic and Roads Agency at RTA.

According to Al Banna, the move supports key goals of the D33 economic plan while directly contributing to health, safety, and sustainability benchmarks. The regulation was shaped by specialised traffic studies and developed under RTA’s existing governance framework for commercial transport.

The rising toll of delivery bike incidents

The urgency of the regulation is underpinned by alarming statistics on traffic violations and accidents. Major General Saif Muhair Al Mazrouei, Assistant Commander-in-Chief for Operations at Dubai Police, cited data showing 854 accidents involving delivery motorcycles in 2024, followed by 962 in 2025, a troubling upward trend.

In terms of traffic violations:

  • 70,166 violations were recorded in 2024.
  • 78,386 violations were recorded in the first nine months of 2025 alone.

These violations stem from reckless and non-compliant riding on high-speed roads, often resulting in serious consequences for both riders and other road users.

“Motorcycles are among the most vulnerable modes of transport,” noted Major General Al Mazrouei. “Their lack of protective structure and high-speed instability make them particularly prone to fatal accidents.”

He added that the delivery sector, while economically vital, must adhere to higher safety standards to prevent further loss of life and injury on Dubai’s roads.

The regulation includes a tiered fine system to enforce compliance:

  • Dhs500 for the first violation
  • Dhs700 for the second
  • Permit suspension for a third violation

Riders who exceed 100 km/hr on roads where the speed limit is 100 km/hr or more will also face escalating fines:

  • Dhs200 for the first offence
  • Dhs300 for the second
  • Dhs400 for the third

Authorities are also planning a comprehensive monitoring system, with road signage clearly marking prohibited lanes for commercial motorcycles. These signs will be integrated with existing traffic signs that already restrict access for heavy vehicles and trucks.

Public awareness campaign and strategic coordination

RTA plans to roll out a public awareness campaign through various media and advertising channels in collaboration with the delivery companies operating in the emirate. The goal is to educate riders, reinforce the rationale behind the new rules, and promote a culture of road safety.

Al Banna confirmed that the RTA has worked closely with the Dubai Police, Department of Economy and Tourism, and private stakeholders throughout the development of these regulations. A series of meetings and consultations helped define the criteria and procedures to ensure the safety of delivery riders and other road users.

“The delivery sector has grown significantly in both demand and number of operating bikes. These reforms are necessary to keep pace with that growth responsibly,” he added.

To encourage widespread compliance, RTA and Dubai Police will honour companies whose riders follow the new lane-use rules. These firms will be recognized under the “Delivery Sector Excellence Award”, an initiative designed to incentivize best practices.

The award will serve multiple purposes:

  • Encourage healthy competition among delivery operators
  • Enhance road safety for all users
  • Recognise distinguished performance in traffic compliance
  • Support excellence in service delivery

This mix of penalties and rewards demonstrates the authorities’ two-pronged strategy—punish unsafe practices while celebrating model behaviour.

Parallel push to upgrade taxi services with 28 key initiatives

While delivery motorcycles are facing stricter oversight, Dubai’s traditional taxi services have been undergoing a quiet transformation of their own. The RTA recently reported the implementation of 28 development initiatives in 2025 aimed at improving comfort, efficiency, and service quality across the emirate’s taxi fleet.

These reforms target all aspects of the taxi ecosystem: passengers, drivers, and franchise companies.

“The completion rate of these initiatives reached 89.8 per cent by the end of Q3 2025,” said Adel Shakri, Director of Planning and Business Development at RTA’s Public Transport Agency.

Key improvements: From air quality to uniforms

The initiatives introduced by RTA include both technological upgrades and service enhancements. Among the most notable:

  • Real-time air quality sensors inside taxis for passenger health and comfort
  • Driver uniform upgrades with weather-adaptive fabrics and an increase in allocations to six sets per driver
  • Leather seat upholstery replacing traditional fabrics, improving hygiene and comfort
  • Onboard air fresheners to ensure a consistent pleasant atmosphere
  • Integrated evaluation systems connecting customer feedback to RTA’s internal performance systems
  • Incentive programmes worth over Dhs8m annually to reward drivers and companies for exemplary service

These measures form part of the RTA’s broader goal of supporting Dubai’s Smart City vision, while also aligning with leadership aspirations for improved quality of life and sustainable mobility.

Together, these announcements from the RTA and Dubai Police represent a comprehensive approach to transport reform in the emirate. Whether by enforcing strict delivery lane usage or elevating taxi service quality, authorities are making clear that safety, efficiency, and customer satisfaction are top priorities.

Both sets of reforms are strategically aligned with the Dubai Urban Plan 2040 and Economic Agenda D33, long-term blueprints designed to keep Dubai competitive, livable, and economically vibrant in a rapidly changing world.

MCN MENAT’s Ghassan Harfouche on ‘Transforming Moments into Tourism Legacies’

Unpacking the findings of its latest tourism report, the CEO of MCN MENAT and president of McCann APAC, shares how destinations can convert the buzz of live events into enduring tourism legacies

Neesha Salian
Neesha Salian

19 October, 2025

MCN MENAT’s Ghassan Harfouche on ‘Transforming Moments into Tourism Legacies’
Image: Supplied

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Live events are no longer just moments in time, they are catalysts for economic growth, cultural identity, and global reputation. In the GCC, destinations are moving fast, not just hosting world-class experiences but rethinking how these moments can leave lasting legacies. McCann Truth Central’s latest report, Transforming Moments into Tourism Legacies, dives deep into this evolution, offering a blueprint for how brands, destinations, and governments can translate the energy of live tourism into long-term value.

The report combines survey insights from over 2,400 travellers across six international markets with expert perspectives across the travel and tourism ecosystem. It highlights the unique advantages of the GCC — from geopolitical neutrality to rapid transformation — and explores how destinations can design experiences that are not just spectacular, but meaningful, sustainable, and culturally anchored.

In a conversation with Gulf Business Ghassan Harfouche, CEO of MCN MENAT and president of McCann APAC, unpacks the findings and their implications. He talks about how destinations can convert the buzz of live events into enduring tourism legacies and why the GCC is setting new benchmarks on the global stage.

Ghassan Harfouche_Headshot

Give us an overview of the “Transforming Moments into Tourism Legacies” report and the work that went into it.

This isn’t just a report – it’s a strategic blueprint for the future of tourism in a changing world and how brands, from leisure and travel through to wellness and finance can capitalise on new trends.

Commissioned through McCann Truth Central, our global intelligence platform, the research was designed to focus on one key element: how do we transition the energy of a live event into sustainable long-term value for brands in the region. We elevate this research through a partnership with The Economist to bring a macroeconomic lens to the region to help give strategic context and richer direction for our clients.

More than 2,400 travellers across six key international markets were surveyed, complemented by authoritative voices across the travel and tourism ecosystem. The result is a timely, insight-rich overview into a major global shift: Live tourism is no longer a niche – it’s a primary driver of economic, cultural and reputational growth.

The report opens with a striking geopolitical observation: while global trade faces tariffs and protectionism, the Middle East remains “relatively insulated” with the GCC positioned as “a bridge between East and West.” How does this unique combination of geopolitical neutrality and rapid transformation give the GCC an edge in converting live events into tourism legacies?

We partner with The Economist to bring business insights and data on what geopolitical trends are influencing the region and the opportunities that this brings to brands. Their insights prove that in an increasingly fragmented world with shifting geopolitical dynamics, the GCC is emerging with greater connectivity, more international openness and fiscally stronger.

Team this with an unparalled pace of transformation – from infrastructure to innovation – and it’s clear to see the region is not just hosting events, but actively redefining what tourism is on an international level.

The report highlights the UAE’s National Tourism Strategy targeting 40 million hotel guests annually by 2031 and increasing tourism’s GDP contribution to Dhs450bn. That’s not just ambitious — it’s transformational. But you also found that 74 per cent of travellers would consider travelling for a live event, yet only one in four actually did. That’s a 508-million-person annual gap across your six markets. How do these targets align with closing that conversion gap, and what does the UAE need to get right?

The numbers show the clear opportunity – and the UAE is building directly toward it. The gap between intention and action isn’t due to lack of demand, it’s about alignment and connectivity for the entire tourist experience, across multiple-sectors and touchpoints.

Live events are the spark, but converting that spark into sustained tourism growth means mastering three elements: anticipation, access and alignment. This puts brand marketing, tech and customer experience at the heart of closing the gap and leading the market.

The report offers four clear strategic takeaways: “Tailor by mindset” rather than demographics, “Find your rhythm” instead of just calendar filling, “Design for desire” to create sustained anticipation, and “Accelerate collaboration” across the ecosystem. If you had to choose one of these four that GCC destinations are currently underutilising — where the gap between potential and practice is largest — which would it be and why?

While the region is making rapid progress on all four, I would say the biggest gap between potential and practice is ‘Accelerate Collaboration’. The investment and focus in infrastructure and experiences is evident, but the full potential and value of live tourism – across airlines, hotels, financial services, retail etc – is unlocked when the full ecosystem is connected.

The traveller does not experience a destination in silos; the more we align data, media, creativity and tech across sectors, the more seamless and magnetic the journey becomes.

The report’s first takeaway is to move “from one-size-fits-all to personalised itineraries” by understanding emotional triggers. Your research identifies business travellers (approximately 210 million) who want convenience and curated luxury with 80 per cent interested in attending a World Cup, versus discovery travellers (approximately 346 million) who “plan well in advance” and want to “explore nearby regions.” How should GCC destinations design differently for these two mindsets — and can one event serve both?

One event should absolutely serve both. Mindsets but what is critical is that the experience around that experience is tailored. For business travellers, the draw would be convenience, curation and premium moments – efficient luxury. For discovery travellers, it’s about story, culture and exploration.

The event is the anchor and the differentiation lies in the design of everything around it. In order to create meaningful experiences that drive return visits, it is critical to move from demographics into mindset-led planning, to better meet the holistic desires of the traveller.

Your second key takeaway is moving “from calendar filling to cultural anchoring”, creating signature moments that return consistently rather than just hosting one big party. With multiple GCC nations hosting mega-events, how does a destination find its unique rhythm without just competing on scale?

Scale is impressive — but rhythm builds identity. The most successful destinations aren’t just the biggest — they’re the most consistent. They create signature moments that return year after year, becoming part of the city’s cultural DNA.

For the GCC, the opportunity isn’t size, it’s about differentiating on story. What does the region stand for? What experience do we want travellers to anticipate every year? Whether it’s Riyadh Season or Art Dubai, the goal isn’t a one-time spike — it’s sustained anticipation. That’s how rhythm translates to reputation and repeat visits.

The research shows four in five travellers make the decision to extend their stay before they’re on the ground. Your report asks: “how are you working with your partners across the travel ecosystem to entice them to extend their stay?” And emphasises “Accelerate collaboration: from fragmented players to connected ecosystem”. What does that pre-arrival collaboration actually look like between airlines, hotels, venues, and tourism boards — and who’s getting it right in the GCC?

Collaboration cross-sectors is the future of delivering a competitive edge for tourism. Our research shows that 4 in 5 travellers decide whether or not they will extend their stay befroe they arrive; waiting until they land is a missed opportunity.

Effective collaboration looks like alignment of marketing campaigns and platforms; integrated partnerships and deals across brands and; incorporation of event calendars with visa timelines.

The UAE – particularly Dubai – is a leader, with strategic alignments across Emirates, hotels, malls and events. But there is opportunity for brands in the region to go further and faster.

Sixty-five percent of respondents believe Middle East countries are “setting new standards for travel and tourism”—jumping to 84 per cent in China. Four of the top seven global luxury destinations are in the region: Dubai, Abu Dhabi, Qatar, and Saudi Arabia. But your research reframes luxury as “freedom of choice, personalisation, curation, hyper exclusivity” rather than just opulence. How do you operationalise feeling versus facility?

Our research reframes what luxury means in today’s age; it looks like freedom, personalistaion and emotional richness. It’s not only about what is seen but more about what is felt.

Operationalising this means empowering hotel teams to recognise and remember guests. It means designing moments that feel unscripted, authentic and unique. It also means investing in the training, service design and cultural immersion, which transforms a stay into a story.

One of your strategies for extending the stay is to “tap into local and regional travellers: Build the fanbase of events for the local and regional community, make it a party that international travellers should not miss”. This feels critical for the GCC’s youth demographic and rising income growth you mention. Share an example of an event that successfully built local passion first — and how that translated into international appeal.

A standout example is Riyadh Season: what was originally a regional celebration quickly transformed into one of the world’s most talked-about entertainment platforms – through building local passion first.

By giving young Saudis a reason to show up, participate and post, the event created enormous regional pride. The authenticity translated into international excitement with global artists taking notice. It helped position Riyadh on the global live tourism map, not just because of who performed, but who showed up and their role in giving the world a glimpse at this new cultural movement.

Perhaps the most surprising finding: 14 per cent of event travellers have started considering moving to the country they visited for an event. That’s not tourism — that’s transformation. Your research emphasises that “events provide a glimpse into what a country has to offer, so first impressions matter”. As the GCC continues its diversification agenda and positions itself as a cluster of “modern, progressive, and capable middle economies”, is this 14 per cent a signal of something bigger? Should destinations be designing for this outcome, and what does that mean for how we think about “Transforming Moments into Tourism Legacies” in 2026?

The 14 per cent is not just a data point, it’s a sign of something much more significant happening. It shows that Live events are more than just entertainment, they’re a gateway to lifestyle, belonging and aspiration.

The fact is we need to think beyond tourism. Events are defining a nation’s brand, a magnet for talent and the first impression of what could transform into a long-term relationship.

As we look towards even greater economic diversification and talent mobility in the GCC, this insight is gold. It means that every event is a powerful opportunity to shift perception, build emotional resonance and address the world with ‘don’t just visit us but imagine yourself here’. That is the true essence of transforming moments into legacies.

Insights from the report will be showcased at the Athar Festival 2025 on October 21 during the ‘Beyond Moments: Transforming Tourism Experiences into Legacies in the Middle East’ panel discussion, inspired by MCN’s latest research exploring how destinations can turn short-term buzz into long-term growth.

Panelists include Joe Nicolas, CEO, UM MENAT; Melanie P De Souza, executive director, Destination Marketing, AlUla; Wadha Alnafjan, senior manager, Visitor Services, King Salman Park Foundation; and Abdulrahman Aljefri, executive director Destination, Live Assets, Hotels, Diriyah.

The panel will be moderated by Neesha Salian, editor of Gulf Business.

G42 announces major progress on Stargate UAE construction

A G42 spokesperson confirmed that construction is now well underway and progressing steadily toward the planned 2026 delivery

Neesha Salian
Neesha Salian

19 October, 2025

G42 announces major progress on Stargate UAE construction
Image: Supplied

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During GITEX GLOBAL 2025, G42 reported that construction of Stargate UAE, a 1 gigawatt hyperscale artificial intelligence infrastructure cluster being built by its subsidiary Khazna Data Centers, has moved rapidly from design to construction and is progressing steadily toward a planned 2026 delivery.

The facility was announced in May as part of a 5-gigawatt UAE–US AI Campus collaboration with global partners OpenAI, Oracle, NVIDIA, Cisco, and SoftBank.

“Construction is now well underway and progressing steadily toward the planned 2026 delivery,” a G42 spokesperson said in a statement. Khazna has adopted a design-to-build approach to ensure a seamless transition from concept to execution.

The team is building the first 200 megawatts of the 1 gigawatt mega-scale infrastructure on an accelerated timeline, according to G42.

Stargate UAE construction in progress. Image: Supplied

Stargate UAE: Progress highlights

Design and engineering work for Stargate UAE is progressing to plan, with civil, structural, and architectural construction well advanced. Mechanical, electrical, and plumbing systems are also being finalised, and key modular components have entered production.

The project has completed procurement of all long-lead equipment and has already received its first deliveries of mechanical systems to the site, G42 said, describing this as evidence of the strength and reliability of the project’s supply chain performance.

Developed to support the UAE’s broader strategy of expanding national-scale AI infrastructure, the facility will serve as a cornerstone of the country’s AI ecosystem, enabling G42’s vision of the “Intelligence Grid” and ultimately an AI-native society.

Khazna Data Centers is described as one of the fastest-growing hyperscale data center platforms globally, delivering advanced infrastructure designed to handle high-density computing requirements essential for next-generation AI-powered applications.

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