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Gulf's Two-Way Capital; DP World and Afghanistan; Billion-Ringgit Boycotts
Friday, December 12, 2025
Happy Friday everyone!
One of the busiest and happening weeks ended with the 2025 Abu Dhabi Finance Week completing its four-day program on Thursday in the ‘Capital of Capital’ Abu Dhabi and was rightfully described as a “microcosm of the realities of a community”.
Next week, we have Mobile Developers Week (13-15 Dec) in Abu Dhabi and Global Airports Forum 2025 in Riyadh on 16 and 17 Dec. Then Christmas and New Year’s eves will give way to January 2026, when the events cosmos will start lighting up again.
Main stories for today: BlackRock's Philipp Hildebrand believes the Middle East has transformed from a pure capital exporter into a bidirectional investment gateway. DP World CEO has hailed the deal signed with Afghanistan's government to develop and operate land border facilities at Torkham and Hairatan. Lastly, we go to Muslim-majority Malaysia to see how the boycott of American brands, due to Israel’s genocide in Gaza, has led to the formation of a hyper-localised brand creation and expansion story.
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
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BlackRock Vice Chairman: Middle East Evolves Into Two-Way Capital Hub as Firm Scales Regional Presence
What’s it About?
BlackRock's Philipp Hildebrand told The National at Abu Dhabi Finance Week that the Middle East has transformed from a pure capital exporter into a bidirectional investment gateway. The $13.46 trillion asset manager is rapidly expanding offices, teams, and ground presence across five regional locations. BlackRock manages $128 billion in Middle East client assets and recently completed major deals including a $40 billion Aligned Data Centres acquisition and an $11 billion Saudi Aramco leaseback arrangement.
Why it Matters?
"Every fund in Europe and America that came [here] to try to get money, the whole concept is now reversing itself, or rather evolving towards a two-way street," Hildebrand explained. Investors now ask "how can we invest in the region, as opposed to just getting capital to invest outside." The Gulf's focus on AI infrastructure, renewable power, data centres, and capital market deepening aligns with global mega trends. Hildebrand emphasized the region's execution credibility and lower adjustment costs amid geographical fragmentation make it strategically positioned.
What’s Next?
BlackRock expects sustained regional growth, particularly in Saudi Arabia and UAE hard infrastructure, technology, and AI investments. The firm will leverage its ADGM commercial licence and partnerships with sovereign wealth funds like ADIA, Mubadala, and ADQ. Private credit flows will prove critical as AI investments require massive private capital. Hildebrand warned capital remains "opportunistic" and can move quickly, requiring consistent government strategy execution—an area where regional credibility remains high compared to markets like Europe.
DP World CEO Hails Afghanistan Border Deal as Gateway to Regional Prosperity
What’s it About?
DP World signed an agreement with Afghanistan's government to develop and operate land border facilities at Torkham and Hairatan. The Dubai-based ports giant will conduct feasibility studies before finalizing the public-private partnership. Upgrades include infrastructure modernization, advanced cargo systems, and digitalized border processes. Both facilities handle billions in annual cross-border trade, with Pakistan alone accounting for $1.6 billion in 2024 bilateral commerce.
Why it Matters?
CEO Sultan Ahmed bin Sulayem emphasized Afghanistan's strategic position linking Central and South Asia. "These gateways already support significant trade flows, and modernising them will help unlock far greater potential," he wrote on LinkedIn. The project aims to enhance efficiency, safety, and reliability while creating local employment. Sulayem framed trade as "a catalyst for stability and opportunity," positioning the deal as economic nation-building through improved regional connectivity.
What’s Next?
DP World will complete technical and financial feasibility assessments to shape detailed designs meeting future capacity needs. Afghanistan's government retains sovereign control over customs, immigration, security, and regulatory functions. The modernization follows the Taliban administration's 2022 airport management deal with UAE's GAAC Holding, signaling continued Emirati investment in Afghanistan's trade infrastructure despite international isolation. Regional logistics strengthening and enhanced Central-South Asian connectivity are expected outcomes.
When Boycotts Birth Billion-Ringgit Brands
Malaysia's consumer landscape has fundamentally shifted, and it's not shifting back, a Bloomberg feature has highlighted.
When Lailatul Sarahjana Mohd Ismail's kids begged for McDonald's during the Gaza conflict, she did what thousands of Malaysian mothers were doing — she made her own. Then she built a business around it. One year later, Ahmad's Fried Chicken has 35 outlets and is scaling to 110 by end-2026.
She's not alone. Zus Coffee, once smaller than Starbucks in Malaysia, now dominates with over 700 locations and is expanding across Southeast Asia. McDonald's Malaysia faced vandalism and boycotts. KFC's Indonesian operator closed dozens of outlets. Coca-Cola lost market share in Turkey and Pakistan.
The numbers tell the story: Malaysia's 34 million people—two-thirds Muslim—aren't just boycotting temporarily. "The change is permanent," says geopolitical analyst Adib Zalkapli. Palestine remains the most important foreign policy issue in Malaysian politics, and Prime Minister Anwar Ibrahim's vocal support of Hamas has only deepened this sentiment.
What began as moral solidarity has evolved into commercial reality. Local brands offering the same products—pumpkin spice lattes, crispy fried chicken—are winning by being, simply, not American. And once consumers switch, they're discovering they don't need to switch back.
The boycott worked. Now it's an industry!
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👨💻From Smashi Business’ Desk
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