Happy Tuesday everyone!

The World Economic Forum 2026 has kicked off and Gulf representation at Davos is strong, with the UAE led by HH Sheikha Latifa bint Mohammed; Saudi Arabia by Foreign Minister Prince Faisal bin Farhan; Qatar by Finance Minister Ali bin Ahmed Al-Kuwari; and Bahrain by Finance Minister Sheikh Salman bin Khalifa. All four will host national pavilions along Davos’ famous Promenade.

For our main stories: US President Trump unveils a $1 billion “Board of Peace” to oversee Gaza’s reconstruction, offering permanent seats to major donors. Abu Dhabi is introducing special electricity rates for AI data centres. Meanwhile, the MENA media and entertainment sector is on a rapid growth trajectory, projected to reach $76.8 billion by 2031, fueled by digital platforms, gaming, and advertising.

Trump’s ‘Board Of Peace’ For Gaza Sets $1 Billion Buy-In For Permanent Seats

What’s it About?

President Donald Trump has proposed a US-led “Board of Peace” to oversee Gaza’s reconstruction, offering permanent membership to participants who contribute $1 billion. Members who do not pay will serve three-year terms. Funds will be directed entirely toward rebuilding Gaza, according to US officials. The board includes figures such as Tony Blair, Mark Carney, Marco Rubio, Jared Kushner and World Bank President Ajay Banga.

Why it Matters?

The board is central to a UN-backed American plan to demilitarise and rebuild Gaza after two years of war. It reflects Trump’s preference for donor-driven governance and limited bureaucracy. The initiative is controversial, excluding the Palestinian Authority and drawing criticism from Israel over the involvement of Turkey and Qatar, which Israel accuses of backing Hamas.

What’s Next?

Day-to-day governance of Gaza would fall to a Palestinian technocratic committee, supported by a separate Gaza executive board involving regional states. Tensions remain over Israel’s objections and the absence of the Palestinian Authority. How funding commitments materialize, and whether key regional and international players ultimately participate, will determine the plan’s viability and legitimacy.

Markets

Abu Dhabi To Launch Special Power Rates For AI Data Centres

What’s it About?

Abu Dhabi plans a special electricity price for AI data centres. The goal is to give big tech companies like Microsoft, Amazon, and Google cheap, predictable power without making regular households and businesses pay more. Operators can also choose whether their power comes from renewables or regular electricity.

Why it Matters?

AI data centres use huge amounts of electricity, and utilities may need to expand power supply to keep up. Without a separate rate, everyday customers could see higher bills. Offering fair, global-competitive prices helps Abu Dhabi attract major tech players while keeping energy costs balanced.

What’s Next?

Abu Dhabi will set a standard approach for AI data centres, letting operators scale up fast while deciding their energy mix. Other Gulf states, like Saudi Arabia and Qatar, are also competing to host these centres, so rates and infrastructure will play a big role in who wins.

MENA Media And Entertainment Market Set To Hit $76.8 Billion By 2031

What’s it About?

The Middle East media and entertainment market is growing fast, projected to reach $48.4bn in 2026 and nearly $76.8bn by 2031, with a 9.66% CAGR. Digital platforms dominate, making up almost 60% of revenue in 2025. Video-on-demand, gaming, subscriptions, and advertising are driving growth, while mobile-first consumption and on-demand content are reshaping how audiences watch, play, and engage.

Why it Matters?

Saudi Arabia leads the market with 39% share, while the UAE is the fastest-growing, thanks to strong investment and supportive regulations. Millennials drive current revenues, but Gen Z is influencing content strategies with mobile-first and esports preferences. Expanding 5G, fibre, VR/AR adoption, and metaverse initiatives are reshaping consumption, creating new opportunities for local and global players.

What’s Next?

Revenue from subscriptions, freemium, and in-app purchases is expected to surge past $15.6bn by 2031. Advertising, especially programmatic and ad-supported video, is growing quickly. Consolidation, partnerships with global streaming platforms, and gaming-led monetisation will continue to transform the industry, even as challenges like piracy, talent shortages, and regulatory hurdles persist. Growth remains strong and long-term prospects promising.

🦄 World of Startups

• NVSSoft’s Tarasol Joins Elite Group with Saudi Accreditation Success

• Halo AI Boosts Brand-Creator Collaborations, 118% Spike in Sales After Major Update

• Oman’s eMushrif Secures $7.5M to Expand Smart Transport into Saudi and UAE

• NEOM’s Level Up Backs Five Saudi Startups in Gaming Expansion Push

• Wadi Jeddah and Pure Advance Join Forces to Boost Saudi Innovation Ecosystem

• HSBC and Presight Forge AI Partnership to Revolutionise Banking in UAE

👨‍💻From Smashi Business’ Desk

• UK Billionaire John Fredriksen Finally Spotted in Dubai, Hosted by DMCC Boss

• Mona Kattan has shared a Message of Solidarity with the People of Iran

• Egypt’s $35B Gas Deal with Israel Faces Uncertainty as New Clauses Favor Israeli Supply

• Uber’s Khosrowshahi: Major Companies Will Invest Aggressively in Iran After Regime Change

• Tunisian Filmmaker Zoubeir Jlassi Wins $1M AI Film Award at 1 Billion Followers Summit

🔍In other news…

• Investcorp Chair Sees IPO Market Improving in the Gulf

• Trump Invited Putin to Join Gaza ‘Board of Peace,’ Kremlin Says

• Qatar Wealth Fund CEO Signals Nuanced Approach to AI Investments

• Investcorp Chair Sees IPO Market Improving in the Gulf

• India, UAE sign $3 billion LNG deal, agree to boost trade and defence ties at leaders’ meeting

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