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Qatar bets on cheap energy to close AI gap with Gulf rivals

Qatar’s competitive edge lies in its low-cost electricity, which could offset the region’s high cooling costs in a desert climate

Reuters
Reuters

18 December, 2025

Qatar bets on cheap energy to close AI gap with Gulf rivals
Image: Getty Images

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Qatar is banking on its abundant, low-cost energy to make up for lost time in the Gulf’s artificial intelligence race, hoping that cheap power and deep pockets will help it catch up with regional rivals that have already secured a head start.

The launch of Qai, backed by the country’s $526bn sovereign wealth fund and a $20bn joint venture with Brookfield BN.N, marks Qatar’s most ambitious move yet into a sector that is reshaping global technology and economics.

It joins massive investments in Saudi Arabia, and Abu Dhabi and Dubai in the United Arab Emirates, as part of the region’s broader efforts to diversify away from oil revenues.

But while energy advantage is a powerful lure for hyperscalers – the cloud giants such as Google, Microsoft and Meta driving AI adoption – analysts say the Gulf’s ambitions face structural hurdles that go beyond infrastructure.

To become significant players in AI, Gulf states must navigate a thicket of challenges: replicating Western-style data governance, securing scarce advanced chips under US export controls, and attracting top-tier talent in a fiercely competitive global market.

These factors, rather than capital alone, will determine whether the region can translate its financial firepower into meaningful influence in the AI ecosystem.

“The key component there we believe would be Qatar’s ability to emulate the American policy on data privacy laws … when you look around the world at the moment, the single biggest hindrance to significant AI deployment is the regulatory piece,” said Stephen Beard, global head of data centres at Knight Frank.

Qatar has disclosed few details about Qai, but its timing reflects surging demand for AI infrastructure as companies bet on the technology to drive efficiency and cut costs.

“The compute demand is so massive that any new infrastructure buildout in an energy-abundant Qatar that fronts financing is welcomed news for American hyperscalers … In this phase of the AI buildout, there’s room for multiple players,” said Mohammed Soliman, senior fellow at the Middle East Institute in Washington.

However, analysts warn that capturing hyperscaler demand will require sustained investment and policy alignment over many years.

“We expect $800bn to be spent on the AI data centre buildout in the Middle East over the next two years,” said Dan Ives, analyst at Wedbush.

Qatar’s competitive edge lies in its low-cost electricity, which could offset the region’s high cooling costs in a desert climate. Emirates NBD notes Middle East PUE ratings – a measure of data centre energy efficiency – average 1.79 versus 1.56 globally.

Beard estimates Qatar could become a 1.5 to 2 gigawatt market by 2030 if it sustains cheap power and accelerates development. By comparison, Saudi Arabia’s Humain aims for 6 GW by 2034, while the UAE’s G42 is building the first phase of a 5-GW AI campus, set to rank among the world’s largest outside the United States.

Qatar’s progress will be notable if it reaches 500 megawatts by 2029, said Jonathan Atkin, RBC’s global head of communications infrastructure, adding that utilisation rates will matter as much as capacity.

The UAE currently hosts 35 data centres, Saudi Arabia 20, and Qatar five, according to Emirates NBD. The US is home to more than 5,000.

With its sovereign wealth, Qatar brings financial muscle but faces a steep climb against entrenched rivals.

“I think it is fair to say Qatar/Doha is the late entrant in a four-horse race,” said Counterpoint Research director Marc Einstein, referring to Saudi Arabia and the UAE’s Abu Dhabi and Dubai. “It does have some advantages… but in terms of volumes and scale, Qatar’s neighbours are in a much better position.”

Beyond infrastructure, compliance is critical. Humain and G42 must adhere to strict US rules on chip usage to secure US tech giant Nvidia’s NVDA.O most advanced Blackwell processors. Qai will need similar assurances to Washington.

“The US wants a clear line of sight into where every chip is, who is using it, and what networks it touches. That means detailed reporting, on-the-ground checks, strict rules for technicians from high-risk countries … It’s something the US will be watching closely over time,” Soliman said.

Global digital economy set for 9.5% growth in 2026: DCO report

The DET 2026 report identifies 18 major digital economy trends and evaluates their anticipated impact on governments, industries, and societies

Rajiv Pillai
Rajiv Pillai

18 December, 2025

Global digital economy set for 9.5% growth in 2026: DCO report
Image: Getty Images/ For illustrative purposes

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The Digital Cooperation Organization (DCO) has launched its Digital Economy Trends (DET) 2026 report, forecasting 9.5 per cent growth in the global digital economy next year—around three times faster than overall global economic growth. The report was unveiled at the Development Finance Conference “MOMENTUM” and outlines the technological and societal forces expected to reshape global innovation, productivity, and economic activity.

Based on primary survey data from more than 400 policymakers, economists, and technology leaders across 26 countries, the DET 2026 report identifies 18 major digital economy trends and evaluates their anticipated impact on governments, industries, and societies. According to respondents’ outlook, the global digital economy is projected to reach approximately $28tr in 2026, accounting for 22 per cent of global GDP.

DCO Secretary-General Deemah AlYahya said: “The digital economy is reshaping our world with unprecedented speed, and the true test of this new era will be whether its benefits reach everyone. The next wave of AI-driven innovation will only be as inclusive as the foundations we build today. With the Digital Economy Trends 2026 report, we call on the global community to act decisively—so that technology becomes not a divider, but a bridge to opportunity, resilience, and shared prosperity for all. The future of the digital economy will be defined not by the speed of innovation, but by how inclusively it is built. This report is a call to strengthen the foundations that make AI accessible, safe, and empowering for all and to act together before the gap becomes irreversible.”

Cybersecurity and ambient intelligence lead near-term impact

The report identifies strengthening end-to-end cybersecurity and the dawn of ambient intelligence as the two trends expected to deliver the most significant positive socio-economic impact in 2026.

Cyber-resilience has emerged as the top priority amid increasingly sophisticated cyberattacks, widening capability gaps, and emerging risks associated with generative AI and future quantum computing. At the same time, advances in connectivity and localised AI are enabling ambient intelligent systems that integrate seamlessly into daily life—creating new experiences and efficiencies while heightening the need for robust safeguards and responsible use.

Looking further ahead over a three- to five-year horizon, the report highlights converging frontier technologies as the most transformative force shaping the digital economy. Rapid advances in AI are accelerating breakthroughs across robotics, spatial computing, biotechnology, and other fields, expanding experimentation while introducing new challenges related to workforce transition, digital governance, infrastructure resilience, and safety standards.

Trillions in economic value at stake

DET 2026 underscores the scale of economic opportunity associated with digital transformation as technologies mature and scale globally. Key areas of potential value creation include up to $4.14tr from immersive hybrid technologies, nearly $4.91tr from AI-driven workforce transformation, and around $3.63tr linked to the holistic transformation of digital trade.

The report also estimates approximately $3.13tr in potential value from strengthening end-to-end cybersecurity and investing in resilient digital infrastructure, reinforcing the strategic importance of cyber preparedness as digital systems become more deeply embedded across economies.

Preparedness varies across regions

While the digital economy’s growth trajectory is clear, the report notes uneven levels of preparedness across regions and sectors. The private sector is viewed by respondents as the best prepared to respond to the digital economy trends shaping 2026, highlighting the need for stronger public-private collaboration to close capability gaps and ensure inclusive outcomes.

Building on earlier editions, DET 2026 provides a structured, evidence-based view of how the digital economy is evolving worldwide. Used alongside the DCO’s Digital Economy Navigator (DEN), which measures countries’ digital maturity, the report offers policymakers and business leaders a dual lens on both future direction and readiness. Together, these tools aim to help governments, industry, and international partners focus digital strategies and investments where they can deliver the greatest impact.

From budget sedans to luxury SUVs: Inside Dubai’s rental car boom

SUVs and sedans lead overall popularity, with SUVs favoured for space and comfort, while sedans generate the highest number of views due to affordability and fuel efficiency

Rajiv Pillai
Rajiv Pillai

18 December, 2025

From budget sedans to luxury SUVs: Inside Dubai’s rental car boom

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Dubai’s rental car market continues to gain momentum, fuelled by population growth, a buoyant tourism sector and rising demand for flexible, short-term mobility solutions. As both residents and visitors prioritise convenience, cost efficiency and lifestyle-led choices, rental vehicles are increasingly shaping how people move across the emirate — from everyday commuting to premium leisure travel.

New insights from dubizzle, the UAE’s leading classifieds platform, highlight the key trends defining Dubai’s rental car landscape in 2025, spanning vehicle preferences, rental durations, pricing dynamics and neighbourhood-level demand.

Commenting on the market’s evolution, Sherif Magdy, associate director of sales for dubizzle Cars, said: “The data reflects a rental market evolving alongside Dubai’s rapid growth, with users increasingly prioritising convenience, value, and choice. From the rise in monthly rentals to the continued appeal of SUVs and luxury models, these insights help renters and partners understand shifting behaviour. At dubizzle, we remain committed to providing transparent, data-led mobility solutions that meet the needs of every customer across the emirate.”

Market expansion driven by lifestyle and flexibility

According to dubizzle’s platform data, Dubai’s rental market in 2025 is being shaped by a combination of lifestyle preferences, economic considerations and a growing visitor base. SUVs remain the most dominant vehicle category, recording up to four times more listings than other body types due to their versatility and family appeal.

Monthly rentals continue to attract the highest level of engagement as residents seek predictable mobility without the long-term commitment of car ownership. At the same time, value-driven sedans and compact cars dominate everyday demand, while luxury SUVs and sports cars maintain strong traction among leisure and short-term renters. Seasonal spikes in demand remain pronounced during major holiday periods, when convenience and comfort take priority.

Vehicle preferences reveal a split market

Renter behaviour reflects a clear divide between cost-conscious choices and lifestyle-driven upgrades. SUVs and sedans lead overall popularity, with SUVs favoured for space and comfort, while sedans generate the highest number of views due to affordability and fuel efficiency.

Among budget-conscious renters, the Nissan Sunny, Mitsubishi Attrage and Renault Symbol remain the most viewed models. In the premium segment, the Mercedes-Benz G-Class, Nissan Patrol and Ford Mustang continue to dominate searches, driven largely by tourists and short-term visitors. Meanwhile, electric and hybrid vehicles are showing gradual growth, signalling early-stage interest among renters.

Read: Chinese car brands gain ground in UAE’s growing used vehicle market

Longer rental durations gain ground

Data from dubizzle also points to a shift towards longer rental cycles. Monthly rentals account for approximately 45 per cent of overall user activity, particularly among residents opting for rentals during transitional periods such as relocation or job changes.

Daily rentals represent around 37 per cent of engagement, driven mainly by tourists, weekend travel and short-term mobility needs. Weekly rentals account for the remaining 18%, serving business travellers and temporary residents seeking flexibility without long-term obligations.

Pricing spans budget to premium

Rental prices across Dubai vary significantly by vehicle category, underscoring the market’s ability to cater to a broad range of users. On average, sports cars and wagons command Dhs1,300–1,400 per day, reflecting strong premium leisure demand. Pick-ups, trucks and convertibles typically range between Dhs700–900 per day, while coupes average Dhs600–700.

Vans and SUVs are commonly priced between Dhs350–450 per day, appealing to families and groups, while hatchbacks, sedans and crossovers remain the most accessible option at Dhs90–150 per day.

Overall, the findings point to a rental ecosystem increasingly shaped by changing lifestyles, rising expectations and demand for flexible mobility. As these trends accelerate, dubizzle continues to position itself as a data-driven platform supporting renters and partners across Dubai’s evolving mobility landscape.

Dubai’s winter travel surge: New Routes, schedules that passengers must know about

The increase follows a familiar seasonal pattern driven by Dubai’s cooler climate, a full calendar of international business and entertainment events

Gulf Business
Gulf Business

17 December, 2025

Dubai’s winter travel surge: New Routes, schedules that passengers must know about
Image credit: Dubai Airports

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Dubai Airports has entered the winter travel season with one of the most expansive and resilient networks in its history, as Dubai International (DXB) and Dubai World Central–Al Maktoum International (DWC) welcome new airlines, expanded routes and rising capacity to meet seasonal demand.

Direct traffic has emerged as a defining feature of DXB’s winter performance, accounting for 55 per cent of total passenger demand. The increase follows a familiar seasonal pattern driven by Dubai’s cooler climate, a full calendar of international business, sports and entertainment events, and heightened travel by residents heading abroad for holidays or family visits. The trend is further supported by the steady inflow of people choosing Dubai as a long- or medium-term home, according to a WAM report.

Read more-DXB to welcome over 10m passengers between Nov 27 to Dec 31

Europe and Central Asia are delivering notable growth this winter, with several airlines expanding services or returning to the market. FlyArystan joined DXB’s network on November 29, with twice-weekly flights from Aktau in Kazakhstan, while Austrian Airlines resumed operations on 2nd December with five weekly services from Vienna. Capacity from European carriers continues to rise as airlines respond to sustained travel demand.

Virgin Atlantic has upgraded its Dubai route with the A350-1000 aircraft, increasing seat capacity by 52 per cent, while British Airways has restored its A380 services from London Heathrow. Together, these developments point to strong confidence from European markets heading into the festive season.

Regional routes reinforce point-to-point demand

Seasonal demand from South Asia and the wider Middle East is also strengthening DXB’s connectivity. Varesh Airline launched twice-weekly flights from Sari in Iran on 30th October, while Fly Jinnah added twice-weekly services from Lahore on November 2. These routes reinforce point-to-point travel from regional markets where winter demand to and from Dubai traditionally intensifies.

Saudi Arabia remains one of the strongest contributors to traffic growth. Already DXB’s second-largest country market, Saudi Arabia accounts for 7.8 per cent of total passengers year-to-date as of October. Combined passenger traffic from the kingdom reached 6.3 million across DXB and DWC, marking a 1.3 per cent year-on-year increase.

DWC is playing an increasingly visible role in Dubai’s aviation ecosystem as airlines leverage its available capacity to complement DXB services. The airport welcomed 1.1 million passengers in the first 10 months of the year, representing a 36.6 per cent increase supported by demand from CIS, GCC and Western European markets. Cargo volumes and aircraft movements have also continued to grow, reinforcing DWC’s strategic momentum.

One of the key contributors to this expansion is Eurowings, which has launched a new daily DXB service from Stuttgart, introduced three weekly flights from Düsseldorf to DWC, and increased frequencies to Berlin, Cologne and Hannover. The airline has also deployed its Premium Bizclass product on the Berlin route.

Confidence in Dubai’s long-term aviation growth

Robert Whitehouse, vice president of Research at Dubai Airports, said winter remains a pivotal period for the sector, with this season’s breadth of connectivity highlighting how demand continues to evolve. He noted that the growth in direct traffic reflects a balanced mix of inbound visitors, outbound resident travel and people choosing Dubai as their home, underscoring the resilience and diversity of the city’s aviation network.

Overall, this winter’s schedule enhancements signal strong confidence from airline partners in Dubai’s travel demand. They reinforce the city’s appeal to visitors, business travellers and residents alike, supporting sustained growth in direct traffic and cementing Dubai’s position as one of the world’s most dynamic aviation markets.

UAE weather update: NCM forecasts unstable weather, rainfall across UAE through weekend

In its latest forecast, the NCM said conditions will turn partly cloudy to cloudy at times, with convective cloud formation bringing rainfall over islands and extending to coastal, northern and eastern areas

Rajiv Pillai
Rajiv Pillai

17 December, 2025

UAE weather update: NCM forecasts unstable weather, rainfall across UAE through weekend
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The UAE is set to experience several days of unstable weather, with rainfall, strong winds and rough sea conditions expected to affect parts of the country through the weekend, according to the National Centre of Meteorology (NCM).

In its latest forecast, the NCM said conditions will turn partly cloudy to cloudy at times, with convective cloud formation bringing rainfall over islands and extending to coastal, northern and eastern areas. Businesses operating in logistics, construction, marine services and outdoor operations have been advised to factor in potential disruptions, particularly due to reduced visibility and rough sea conditions.

For today, moderate to fresh winds are expected to strengthen at times, causing blowing dust and sand and a deterioration in horizontal visibility. Sea conditions will range from moderate to rough in both the Arabian Gulf and the Oman Sea, especially during periods of cloud activity.

On Thursday, December 18, weather conditions are expected to become more unstable, with scattered rainfall of varying intensity across the country. The NCM has warned that thunderstorms, lightning and hail may occur in limited areas. Southeasterly winds are forecast to shift northwesterly, reaching speeds of up to 60 km/h, with rough to very rough seas in the Arabian Gulf and rough conditions in the Oman Sea.

Read: Stormy outlook: UAE faces days of rain, strong winds

Friday, December 19, is expected to see a continuation of unstable weather, accompanied by a noticeable drop in temperatures. Rainfall, thunderstorms and hail remain possible in isolated areas, while wind speeds could reach up to 65 km/h. Sea conditions are forecast to remain rough to very rough in the Arabian Gulf, posing challenges for marine transport and offshore operations.

By Saturday, December 20, weather conditions are expected to gradually ease, though partly cloudy skies and convective cloud formation may still bring rainfall to northern and eastern regions. Winds will remain moderate to fresh, strengthening over the sea, with rough conditions continuing in the Arabian Gulf.

On Sunday, December 21, conditions are forecast to improve further, with generally partly cloudy skies and a chance of light rainfall over islands, coastal and western areas. Humidity levels are expected to rise overnight and into Monday morning across some internal western regions, while sea conditions are predicted to moderate.

Mintiply Capital advises on Dhs1.2bn exit for fast-growing GCC F&B group

A fast-scaling e-commerce platform forms a core pillar of the business, supporting consistent growth across both physical and digital channels while strengthening customer engagement and retention

Gulf Business
Gulf Business

17 December, 2025

Mintiply Capital advises on Dhs1.2bn exit for fast-growing GCC F&B group
Noel Hatem, chief operating officer at Mintiply Capital/Image: Supplied

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Mintiply Capital has been appointed to lead an Dhs1.2bn investment opportunity tied to the strategic exit of one of the GCC’s fastest-growing food and beverage groups, as regional investor appetite for scalable consumer platforms continues to accelerate.

The investment banking advisory firm is advising on the full exit process for the diversified F&B group, providing end-to-end support spanning valuation, deal structuring, investor onboarding and regulatory coordination. Mintiply Capital is positioning the asset for acquisition by engaging qualified regional and international investors, with the objective of ensuring a smooth ownership transition while maximising value for all stakeholders.

The opportunity centres on a fully integrated F&B and e-commerce ecosystem that spans multiple verticals, including supermarkets, cafés, bakeries, catering services and digital food delivery. Over more than a decade, the group has evolved from a niche retail concept into a multi-brand platform comprising multiple physical outlets, café concepts and a proprietary online delivery channel.

“This initiative represents a landmark opportunity for investors to participate in a truly integrated F&B and e-commerce ecosystem in the GCC,” said Noel Hatem, chief operating officer at Mintiply Capital. Hatem added: “Beyond strong financial returns, this project offers regional investors access to a high-growth, diversified business with proven scalability, a robust operational model, and the potential to shape the future of the F&B and e-commerce landscape in the region.”

“The market is evolving rapidly, and we are offering a structured, high-potential investment that combines strong fundamentals with clear growth and scalability across the region,” Hatem concluded.

A differentiated model

Positioned between premium gourmet retailers and value-driven supermarkets, the group has built a differentiated model that combines quality offerings with competitive pricing. This approach has enabled it to capture a broad consumer base, double its market alpha within two years and expand its portfolio of branded and private-label products.

A fast-scaling e-commerce platform forms a core pillar of the business, supporting consistent growth across both physical and digital channels while strengthening customer engagement and retention.

As part of the transaction, Mintiply Capital is also advising on the structuring of the acquisition framework for incoming investors, including the design of the investment vehicle, cross-jurisdictional regulatory compliance, and operational, financial and commercial due diligence. The firm is supporting the development of a comprehensive deal structure that enables investors to acquire the group’s full ecosystem seamlessly.

The transaction comes against the backdrop of strong M&A momentum in the Gulf. Regional deal activity is expected to surpass $115bn in 2025, with EY’s MENA M&A Insights 9M 2025 report showing a 23 per cent increase in deal volumes during the first nine months of the year. Cross-border transactions accounted for 54 per cent of deal volume and 76 per cent of total deal value, marking the highest level in five years.

By curating this investment opportunity, Mintiply Capital reinforces its role in connecting global capital with high-performing regional businesses positioned for strategic ownership transitions and long-term growth.

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