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- Abu Dhabi's Lakers Link; OpenAI and UAE; Talabat's Revenue Up & Profit Down
Abu Dhabi's Lakers Link; OpenAI and UAE; Talabat's Revenue Up & Profit Down
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Friday, August 14, 2026
Happy Friday everyone!
Today’s biggest stories show the UAE’s growing influence across global business, technology and investment. Abu Dhabi capital is at the center of a record $12.5 billion Los Angeles Lakers deal, while OpenAI has brought AI inference residency to the UAE, making it only the third region globally with local processing. Talabat’s latest results reveal a different story: Egypt is driving growth, but the GCC remains the profit engine as rising delivery costs squeeze earnings. Meanwhile, DMCC CEO Ahmed Bin Sulayem tells Smashi Business about valuing water, Dubai’s fast decision-making and the next opportunities in Fujairah, gaming and global trade.
Markets
EGX30 | 55,039.76 | 0.38% |
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ADX | 10,012.93 | 0.054% |
Tadawul | 10,844.12 | 0.10% |
The Abu Dhabi Connection Behind The $12.5 Billion LA Lakers Deal
What Is It About
Bob Iger and Joshua Kushner have agreed to acquire a controlling stake in the Los Angeles Lakers from billionaire Mark Walter at a record $12.5 billion valuation. Walter took control of the NBA franchise just 14 months ago at a $10 billion valuation, following a major partnership between his TWG Global and Mubadala Capital, which committed to lead a $10 billion investment into the group.
Why It Matters
The deal highlights the growing role of Abu Dhabi capital in global sports and investment. Mubadala’s relationship with Walter is now under scrutiny amid a reported US federal investigation into his investment portfolio, including questions over whether the sovereign investor was misled about company valuations. The reported investigation adds another layer to the rapidly escalating value of the Lakers.
What’s Next
Iger brings decades of NBA connections through ESPN and ABC, while Kushner has been expanding into sports investments through Thrive Capital. The transaction would further strengthen their positions in the global sports economy. It also comes as Abu Dhabi deepens its sports footprint, including through Disneyland Abu Dhabi and major international investment partnerships, potentially creating further opportunities for Gulf-backed sports deals.
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OpenAI Brings Local AI Processing To UAE, Making It Only Third Inference Residency Region
What Is It About
OpenAI has activated inference residency in the UAE, allowing eligible API, ChatGPT Enterprise and ChatGPT Edu customers to process certain AI workloads on GPUs located inside the country. The UAE becomes only the third region globally with OpenAI inference residency, joining the US and Europe. The move builds on OpenAI’s existing UAE data residency offering, which governs where customer data is stored.
Why It Matters
Inference residency determines where AI processing happens — effectively, where the model “thinks” — rather than simply where data is stored. This could help governments, banks, healthcare providers and other regulated organisations meet stricter data-location requirements. The move also strengthens the UAE’s position as a regional AI infrastructure hub, supporting its broader strategy to build domestic computing capacity and accelerate AI adoption.
What’s Next
The UAE rollout has limitations. GPT-5.2 is currently supported for eligible workloads, while features including image generation and internal search are excluded. Some non-GPU operations may also occur outside the country. The launch comes as the UAE advances major AI infrastructure projects, including Stargate UAE. As local AI capacity expands, inference residency could become increasingly important for organisations assessing where their AI workloads are processed.
Talabat’s Revenue Is Surging, But Profit Is Under Pressure
What Is It About
Talabat’s latest filing with the Dubai Financial Market reveals a sharp divide across its markets. GCC revenue rose about 13% to $1.71 billion in the first half of 2026, while Egypt revenue jumped 71% to $300.5 million. But the GCC remains far more profitable, generating nearly $198 million in profit before tax versus $23.6 million in Egypt.
Why It Matters
The numbers show Egypt emerging as Talabat’s growth engine, while the GCC remains its profit engine. Group revenue climbed 20.6% to $2.19 billion, but net profit fell 17.1% to $186.2 million. A key pressure point was delivery costs, which rose nearly 16% to $815.7 million, outpacing overall revenue growth.
What’s Next
Talabat’s challenge is turning rapid growth into stronger profitability. The company ended June with $807.8 million in cash and generated $316.4 million in operating cash flow, while also returning capital through dividends and share buybacks. Its latest filing continues to identify Delivery Hero SE as its ultimate parent, without mentioning the reported Uber-Delivery Hero deal.
Smashi Business Exclusive: ‘The Perception Is That Water Is Free,” DMCC CEO on Tokenisation, Dubai and Trade
Ahmed Bin Sulayem, DMCC’s Executive Chairman and CEO, told Smashi Business that Dubai’s success in global commodities has been driven by fast decision-making and a willingness to back unconventional ideas early.
On the Smashi Business Show, he discussed the growing push to put an economic value on water, arguing this could encourage governments to protect scarce reserves. He also highlighted DMCC’s transformation from just 28 companies in 2003 to more than 26,000 today, including its early bets on diamonds, crypto and blockchain.
Looking ahead, DMCC is exploring warehouse capacity in Fujairah as trade routes shift, while gaming is emerging as another major opportunity, with Bin Sulayem predicting strong growth for regional companies.
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👨💻From Smashi Business’ Desk
LVMH-owned Sephora has denied reports it will open stores in Israel, while confirming Sephora Collection, its own beauty brand, signed a temporary resale agreement with Israeli retailer Glam42.
HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, visited Binghatti’s London office, according to photos shared by the developer on Instagram.
President Donald Trump and Saudi PIF Governor Yasir Al-Rumayyan were spotted together at LIV Golf’s New York event at Trump National Bedminster, ahead of the final round.
Saudi boxing power broker Turki Al-Sheikh has pulled out of a proposed takeover of English Championship club Derby County after delays in securing approval left limited time to prepare for the new season.
🔍In other news…
Iraq Says Abu Dhabi’s Adnoc Among Buyers of Its Oil
Iran to join BRICS development bank soon, central bank governor says
Saudi Wealth Fund PIF Eyes Bigger Privatization Push to Win Returns
Spinneys CEO on the costs of keeping shelves full in a crisis: AGBI
Saudi data centre ambitions could require $42bn by 2030
Gulf forecast to lose 140,000 tourism jobs this year
Qatar, Morocco among six Arab federations backing FIFA's Infantino
🦄 World of Startups
ChatFeatured, Canada-based AI startup, raised $2M in a pre-seed funding round from BY Venture Partners (UAE/Lebanon) and other global investors
Doctorbook, Syria-based healthtech platform, raised $16K in a pre-seed funding round from a group of angel investors, valuing the startup at $200K
Carbar, Australia-based car subscription platform, is merging with Carasti, UAE-based car subscription business operating across the UAE, Saudi Arabia, Thailand, and Singapore, at a combined pre-raise valuation of $74M
Fincart, Egypt-based eCommerce enablement platform, raised $2.8M in a seed funding round
