TotalEnergies, Basra Oil Company, and QatarEnergy have commenced work on a $250m project to capture gas from the Ratawi oil field in the Basra region of southern Iraq.

The ArtawiGas25 facility, which is part of the gas growth integrated project (GGIP), will process 50 million cubic feet per day (Mcf/d) of gas previously flared. The gas will supply local power plants, covering the demand of approximately 200,000 households in the Basra region.

The $250m investment is part of the $10bn GGIP. The project is expected to create up to 160 direct and indirect jobs during the construction phase and 30 permanent positions once operational.

“We are very pleased to launch the ArtawiGas25 project: it will give the Iraqi people a tangible insight into the benefits of the GGIP, which will provide more energy with less emissions. We look forward to the next GGIP milestones in the coming weeks with the start of construction of the 1 gigawatt (GW) solar project,” said Julien Pouget, senior vice president of Middle East & North Africa, Exploration & Production at TotalEnergies.

TotalEnergies agreed with the Iraqi Government to proceed with the long-delayed $27bn energy project in 2023, a deal that is expected to boost the country’s oil and gas production and enhance solar energy generation.

The project includes a large-scale gas processing plant, which aims to recover gas flared on three oil fields and supply it to power plants. It also involves redeveloping the Ratawi field and building a large solar farm and seawater treatment plant.

Last October, QatarEnergy agreed to acquire a 50 per cent stake in the solar power project, while TotalEnergies will retain the remaining 50 per cent.

The solar power project, which will be one of the largest in the world upon its completion, will consist of 2 million high-efficiency bifacial solar panels mounted on single-axis trackers and can produce up to 1.25 GW.

Read: QatarEnergy buys 50% stake in TotalEnergies solar project in Iraq

MIT Sloan Management Review Middle East, in collaboration with Astra Tech, has released a comprehensive white paper titled Leveraging Actionable Gen AI in the Middle East, exploring the transformative opportunities posed by large language models (LLMs), small language models (SLMs), and large action models (LAMs).

The report aims to provide valuable insights into how businesses in the UAE and the broader Middle East are adopting these AI technologies to gain a competitive edge amid the region’s rapid technological evolution.

The survey, which forms the basis of the white paper, highlights the UAE’s leading role in AI adoption, with over half (53.25 per cent) of respondents based in the country.

The findings emphasise the UAE’s strong focus on utilising LLMs and SLMs, particularly in areas such as customer service and product development.

Nearly half (44.74 per cent) of companies in the UAE are deeply integrating AI into these sectors, underscoring the country’s commitment to enhancing customer experiences and personalising product offerings.

“The findings from this whitepaper highlight the immense potential AI holds for transforming industries in the Middle East,” said Hassan Al Noon, SVP of Technology at Astra Tech. “By gathering feedback on best practices, user experiences, and the specific needs of the Middle East market, this whitepaper provides a localised perspective that addresses cultural sensitivities and compliance, ensuring that our AI initiatives are both impactful and sustainable.”

Localising AI solutions

Al Noon further emphasised the importance of localisation in AI solutions, which he said would help maximise the effectiveness and acceptance of these technologies within the region’s unique cultural and regulatory landscape.

Ravi Raman, publisher of MIT Sloan Management Review Middle East, also commented on the report’s significance. “MIT Sloan Management Review is known for its in-depth research and insightful analysis of data. This white paper serves as a comprehensive guide for business leaders, technologists, and policymakers interested in understanding the transformative potential of these advanced technologies,” he said.

The report’s findings show a growing enthusiasm for AI across the Middle East. According to the survey, 27 per cent of businesses are actively exploring AI technologies, while 36 per cent are in the early stages of adoption. Additionally, 13 per cent of companies have already integrated AI deeply into their operations, and another 13 per cent are leveraging AI in innovative ways.

Nine per cent are focused on monetising AI capabilities, reflecting the region’s increasing recognition of AI’s transformative potential.

In particular, the UAE stands out for its AI-driven customer experience initiatives.

The survey reveals that 46 per cent of users in the UAE engage with AI primarily for information retrieval, indicating a strong reliance on smart systems for quick and accurate data.

Another 33 per cent of users utilise AI for customer service and support, while 13 per cent turn to AI for personalised recommendations, highlighting the growing importance of tailored consumer experiences.

UAE retailers leading the way; using AI models to streamline customer experience

Retailers in the Middle East, particularly in the UAE, are leading the way in integrating LLMs/SLMs and LAMs to deliver personalised shopping experiences at scale. By analysing customer purchase history and browsing behaviour, AI models help businesses offer product recommendations that enhance satisfaction and streamline the shopping journey.

The report also addresses security and privacy concerns in the region, particularly in the UAE. Some companies are developing in-house language models trained with locally relevant compliance data.

These models are being used as conversational bots to assist compliance officers in answering regulatory questions, improving efficiency, and ensuring adherence to local rules.

The white paper draws on insights from a wide range of senior executives and decision-makers across industries, with a strong representation from the UAE, further solidifying the country’s leadership in AI adoption in the Middle East.

Abu Dhabi property developer Aldar Properties said on Monday it had raised $2.45bn (Dhs9bn) sustainability-linked syndicated loan in what is the largest environmental, social and governance (ESG) financing by a real estate company in the Middle East.

The facility is six times larger than any other single-bank financing the company has done in its recent history. It follows Aldar’s inaugural Dhs3.67bn hybrid notes issuance earlier in January.

Aldar said the facility, arranged at a historically tight credit, reinforces its balance sheet and provides substantial committed liquidity to fuel its growth trajectory across both its property development and investment platforms.

The new financing, with a five-year maturity, will be provided by a group of domestic and international banks comprising Abu Dhabi Commercial Bank, Ajman Bank, Bank of China, Citi, Dubai Islamic Bank, Emirates Islamic Bank, Emirates NBD Bank, First Abu Dhabi Bank, HSBC, Intesa Sanpaolo, J.P. Morgan, Mashreq, National Bank of Kuwait, RAKBANK, and Sharjah Islamic Bank.

The facility, which incorporates both conventional and Islamic tranches across Dhs and USD currencies, offers both committed and revolving lines of credit linked to a floating interest rate to capitalise on favourable market conditions.

Aldar said that the facility has strengthened its liquidity position, bringing its total available liquidity to Dhs26.9bn as of September 30, 2024 (pro forma for this syndication), including unrestricted cash and bank balances of Dhs9.5bn, along with Dhs17.4bn in undrawn committed revolving credit facilities.

Meanwhile, the developer posted a 41 per cent year-on-year increase in Q3 2024 net profit to Dhs1.3 bn, driven by record development sales and strong contributions from its recurring income portfolio.

Aldar’s development sales rose by 27 per cent YoY to hit a quarterly record of Dhs9.9bn in the three months ended September 30, supported by the launch of new wellness-inspired luxury developments and positive contributions from the firm’s international sales network.

Aldar Development’s revenues in the third quarter of 2024 surged by 99 per cent YoY to Dhs3.9bn, with earnings before interest, taxes, depreciation and amortisation (EBITDA) standing at Dhs3.2bn, up 72 per cent YoY.

Read: Aldar acquires Dhs2.3bn commercial tower in DIFC

Global management consultancy Arthur D. Little (ADL) has unveiled its latest report, A Trillion-Dollar Opportunity, which explores the transformative potential of B2B buy now, pay later (BNPL) solutions in reshaping global trade.

As businesses face increasing liquidity challenges and strive for greater supply chain efficiency, ADL highlights how BNPL is gaining traction as a solution to these issues in the rapidly growing digital economy.

The report reveals that the global B2B commerce market, valued at $120tn in 2022, is on the brink of a paradigm shift. ADL forecasts that B2B BNPL could capture 15 -20 per cent of global B2B payments by 2030, potentially unlocking transaction volumes ranging from $25tn to $30tn.

With an average fee of 3-4 per cent per transaction, this represents a market value of between $700bn and $1.3tn.

“B2B BNPL is not just a financial innovation — it is a catalyst for global commerce,” said Arjun Vir Singh, partner and global fintech lead at Arthur D. Little.

“As businesses seek more efficient ways to manage payments and strengthen supply chains, BNPL offers unparalleled flexibility and scalability in today’s dynamic market.”

BNPL gaining momentum in Saudi and UAE

ADL’s report also underscores the growing regional developments, particularly in the UAE and Saudi Arabia, where the BNPL sector is gaining momentum. Both countries have introduced regulatory frameworks to support BNPL solutions.

In Saudi Arabia, Foodics has launched one of the first B2B BNPL platforms for its food and beverage clients, allowing them to pay for subscriptions and hardware through BNPL. Meanwhile, the Saudi fintech company Mala has secured a $7m investment to enhance its B2B BNPL offering, and the UAE’s Comfi announced a $5m debt facility to accelerate its platform’s growth.

ADL further highlights Germany as a key example of the scalability of B2B BNPL.

In 2022, B2B online sales in Germany reached $467bn, accounting for 6.4 per cent of the country’s total B2B commerce.

The size of the B2B online market was five times larger than Germany’s B2C online market, showcasing the vast potential for BNPL adoption in well-established markets with significant digital adoption.

The report also points to the growing need for improved liquidity solutions among small and medium enterprises (SMEs), which currently rely heavily on trade credit for 30-50 per cent of global B2B transactions.

While this system places credit risk on suppliers and often leads to inefficiencies, B2B BNPL offers a streamlined alternative by providing instant credit approvals. This reduces administrative burdens, allowing suppliers to receive immediate payment while buyers benefit from flexible repayment terms.

“The adoption of B2B BNPL goes beyond traditional payment methods,” said Mohammad Nikkar, principal at Arthur D. Little, Middle East. “Its digital nature simplifies cross-border transactions by standardising payment terms and reducing complexities in currency exchange and settlement processes. BNPL is redefining the future of trade financing and is becoming an indispensable tool for businesses navigating today’s fast-changing economy.”

ADL’s report also projects high double-digit annual growth rates for the B2B BNPL market, which aligns with the ongoing digital transformation of global commerce.

As businesses worldwide continue to adopt digital-first solutions, BNPL is emerging as a critical component of embedded finance, enabling companies to enhance cash flow, reduce financial risks, and foster long-term growth.

ADQ, the smallest of Abu Dhabi’s three sovereign wealth funds, plans to launch a cash takeover offer for Aramex, as the fund seeks to acquire the shares in the Dubai-listed courier company that it does not already own.

“Aramex has been notified by Q Logistics Holding, a wholly-owned indirect subsidiary of ADQ, of its intention to submit a voluntary conditional cash offer to acquire all of its outstanding shares,” Aramex said in a bourse filing on Monday.

Q Logistics has set the takeover bid price at $0.82 (Dhs3) per share, representing a 33 per cent premium over Aramex‘s closing price on Thursday.

ADQ-owned AD Ports Group already holds a 22.7 per cent stake in Aramex.

The logistics firm’s net profit jumped by 177 per cent year-on-year (YoY) to Dhs27m in Q3 2024 from Dhs9.6m for the same period a year earlier, while its revenues rose by 18 per cent to reach Dhs1.59bn.

Founded in 1982, Aramex became the first Arab-based company to list on Nasdaq. The logistics firm is one of the Middle East’s earliest successful business stories and has long been viewed as the regional answer to global shipping companies such as FedEx and DHL.

Read: Aramex electrifies last-mile delivery with new e-bike fleet