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- Dubai over Europe, Says Durov; Saudi Unveils Multi-Billion Syria Drive, Khouri Warns of AI Market Euphoria
Dubai over Europe, Says Durov; Saudi Unveils Multi-Billion Syria Drive, Khouri Warns of AI Market Euphoria
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Monday, November 3, 2025
Happy Monday everyone!
Tech and investment headlines dominate today as Telegram founder Pavel Durov praised Dubai over Europe and unveiled Cocoon, a decentralized AI network designed to protect user privacy while powering next-gen AI applications. Meanwhile, Saudi Arabia is set to inject billions into Syria’s reconstruction, targeting energy, telecom, and infrastructure sectors despite current sanctions. In financial markets, Elie Khouri, Omnicom Media Group MENA chairman, cautioned investors about soaring AI-driven valuations, noting record market-cap-to-GDP ratios and the potential for speculative euphoria.
But before that: For quick daily updates, follow us on Instagram, and you can watch our Smashi Business Show live every weekday from 10AM onwards (UAE time). Also, you can join our Whatsapp channel to receive updates from the business world.
Markets
EGX 30 | 38,082.88 | 0.48% |
DFMGI | 6,105.02 | Closed |
ADX | 10,099.90 | Closed |
Tadawul | 11,752.08 | 1.03% |
Durov Declares Love for Dubai, Unveils Telegram’s Feature “Cocoon” at Blockchain Life Forum 2025
What It’s About?
At Blockchain Life Forum 2025 in Dubai, Telegram founder Pavel Durov opened by expressing his preference for Dubai over Europe, noting the city’s growing appeal for tech innovators. He highlighted Telegram’s major milestones, including 1 billion monthly active users, profitability, and the success of mini apps and digital collectibles. Durov then unveiled Cocoon, Telegram’s new decentralized AI compute network built on the TON blockchain, designed to provide secure, low-cost AI services without compromising user privacy.
Why It Matters?
Durov stressed the risks of centralized AI services that collect and exploit user data. Cocoon tackles these issues by decentralizing AI compute power, allowing developers and hardware owners to participate in a free-market ecosystem while ensuring users’ data remains private. The project reinforces Telegram’s broader mission of safeguarding digital freedoms and user autonomy in an era of increasing online surveillance and restricted digital rights.
What’s Next?
Cocoon is set to launch in November, with Telegram as its first major customer and promoter. Hardware providers and developers can soon join the network, creating a market-driven AI ecosystem. Durov also hinted at upcoming TON blockchain initiatives, signaling further expansion of Telegram’s decentralized technology and continued efforts to protect user privacy and digital freedoms worldwide.
Saudi Arabia Plans Multi-Billion-Dollar Drive to Rebuild Syria’s Economy
What It’s About?
Saudi Arabia is spearheading a multi-billion-dollar investment push to rebuild Syria’s energy, financial, and telecom sectors. Major Saudi firms, including Acwa Power and STC, plan to channel billions of dollars of capital into Syria over the next five years, according to Abdullah Mando, CEO of the Saudi-Syrian Business Council. The initiative focuses on reconstruction through investment rather than aid, positioning Syria as a trade and investment hub.
Why It Matters?
Syria’s reconstruction needs are estimated at USD 216 billion after 14 years of civil war, and early-stage investments are already flowing. Saudi contributions accounted for nearly USD 7 billion of the USD 28 billion total invested in the first half of 2025. Reforms to Syria’s investment laws aim to protect investors and facilitate capital repatriation, highlighting the country’s push to attract global capital despite current US sanctions.
What’s Next?
The US Caesar sanctions currently block actual capital deployment, but both Saudi and Syrian officials are optimistic about their removal, with a congressional decision expected by year-end. Agreements worth USD 6.4 billion were activated recently, covering energy, communications, banking, real estate, and digital transformation. Additional talks are exploring civil aviation, healthcare, education, rail links, and cultural restoration projects, signaling a broad, long-term reconstruction strategy.
Elie Khouri Issues Caution Over AI Market Euphoria Amid Record Valuations
What It’s About?
Elie Khouri, Lebanese-French entrepreneur and Omnicom Media Group MENA chairman, has raised concerns about soaring AI-driven market valuations. In Instagram stories, he highlighted the ratio of total market capitalization to U.S. GDP, which has reached a record 225%, citing it as a potential signal of market euphoria despite strong leadership and innovation driving growth.
Why It Matters?
Khouri’s warning touches on the risk of an overheated market fueled by AI optimism. Nvidia’s $5 trillion valuation and Big Tech dominance illustrate extreme momentum, raising questions about sustainability. Investors face a tension between embracing transformative technology and avoiding speculative excess, echoing lessons from past market peaks.
What’s Next?
Market watchers will be closely observing AI-driven stock movements, investor sentiment, and valuation ratios. Khouri’s perspective suggests caution may be warranted, prompting investors to assess whether current gains reflect lasting innovation or a temporary speculative surge, shaping decisions in tech-heavy indices in the coming months.
🦄 World of Startups
Egyptian-Saudi AI solutions startup Velents closed a $1.5M funding round and launched the first fully integrated Arabic-speaking AI employee, Agent.sa.
Pakistani co-working startup COLABS to expand into Kingdom with flagship site in Riyadh.
UnifyApps Raises $50 million to scale enterprise AI Platform and expand Gulf presence.
1001 AI, a deep-tech startup dual-headquartered in London and Dubai and founded by Bilal Abu-Ghazaleh, has raised $9 million in a seed funding round with participation from Amjad Masad (Replit), Amira Sajwani (DAMAC), Khalid Bin Bader Al Saud (Saudi RA’ED Ventures), and Hisham Al-Falih (Lean Technologies).
The Canadian regulatory authorities granted Whish Money, Lebanon-based remittances and mobile wallet platform, financial services licenses to operate in Canada.
👨💻From Smashi Business’ Desk
All aboard Saudi Arabia’s “Dream of the Desert” — the Kingdom’s first ultra-luxury train unveiled at the Future Investment Initiative in Riyadh.
Saudi delivery app Shgardi has shut down after five years in operation — a sign of how fierce the Kingdom’s delivery wars have become.
UAE Tycoon Al Habtoor Slams Israeli Minister Over Remark That Saudis Should ‘Keep Riding Camels in the Desert’
Pavel Durov’s tweet on the Louvre heist takes an unexpected turn, blending humor with sharp criticism of French security.
UAE’s Hadban Twins Among First 25 Creators Honoured With Instagram Rings in New York.
🔍In other news…
Delta Launches First Route to Saudi Arabia
Saudi Developer Partners with Google on AI
Four Seasons Residences to Open on Shura Island with Red Sea Global
PIF-Backed Kayanee, Founded by Princess Reema, to Expand Across the Gulf in 2026
UK–Gulf Trade Deal Close to Completion After Reeves Visit
Dubai Duty Free Records Over Dh800 Million in October Sales, a New High
🏦 Crypto Corner
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