Happy Sunday everyone!

Islamic finance, energy investment and media ownership lead Middle Eastern business headlines today. An investigation has found that HSBC's Sharia-compliant fund holds $131 million in five companies reportedly linked to Israel's military. Meanwhile, QatarEnergy is partnering with TotalEnergies to develop a major solar power plant in Lebanon, despite facing an estimated $20 billion in annual revenue losses following Iranian strikes. In the UK, Abu Dhabi's IMI has rejected Ofcom's findings over its failed Telegraph bid, following the newspaper's £575 million acquisition by Axel Springer.

Markets

IMI Rejects Claims That UAE-Led Telegraph Bid Threatened Press Freedom

🔹 What Is It About

Abu Dhabi-based International Media Investments (IMI) has rejected a report by British regulator Ofcom into its attempted acquisition of The Telegraph, criticising its “methodology, reasoning and conclusions”. IMI said Ofcom disregarded its editorial track record and legally binding commitments to protect newsroom independence. The prolonged takeover saga ended in April when German media conglomerate Axel Springer acquired The Telegraph for £575 million, after RedBird IMI exited the process.

🔹 Why It Matters

The dispute has renewed questions over Gulf investment in British media and how foreign capital is treated by UK regulators. IMI argues Ofcom conflated the commercial interests of a private company with those of a sovereign state, despite making no findings of editorial interference. British billionaire Nick Candy told The National: “Britain cannot spend half its time courting investment from the Gulf and the other half putting up barriers when that investment arrives.” Meanwhile, Axel Springer CEO Mathias Döpfner has told staff that supporting Israel is a non-negotiable “core value” of the company.

🔹 What's Next

UK Culture Secretary Lisa Nandy has decided against referring Axel Springer's acquisition for a more detailed competition investigation, bringing government scrutiny of the takeover to an end. IMI continues to reject Ofcom's findings, arguing that “allegations are not findings” and “speculation is not evidence”. The episode could remain significant for Gulf investors considering UK media assets, particularly as Britain seeks overseas capital while tightening scrutiny of foreign media ownership.

Qatar Announces Major Solar Power Plant Project in Lebanon to Address Electricity Crisis

🔹 What Is It About

Qatar has announced plans to develop a major solar power plant in Lebanon, with QatarEnergy partnering with France's TotalEnergies to address the country's longstanding electricity crisis. The announcement followed a meeting between Qatar's Prime Minister HH Sheikh Mohammed bin Abdulrahman Al Thani and Lebanese Prime Minister Nawaf Salam in Beirut. Salam confirmed that Qatar would finance, develop and operate the project at no cost to the Lebanese state, with plans expected to reach the Cabinet soon.

🔹 Why It Matters

Lebanon's electricity sector has accumulated approximately $40 billion in losses over decades, while state electricity supplies remain limited to a few hours daily. The investment also comes months after Iranian strikes damaged QatarEnergy facilities at Ras Laffan, reportedly knocking out 17% of Qatar's LNG capacity and threatening $20 billion in annual revenue. Despite these setbacks, Qatar is pursuing overseas energy investments while supporting Lebanon's economic recovery.

🔹 What's Next

Lebanon's Cabinet is expected to review the proposal, although no investment value or construction timeline has been disclosed. HH Sheikh Mohammed said the project would form part of a broader energy cooperation framework designed to benefit both economies. Qatar is also coordinating with the United States on potential reconstruction efforts in southern Lebanon, where continued Israeli attacks have complicated recovery efforts.

Banyan Group Residences Brings Laguna Phuket Property Showcase to Banyan Tree Dubai

Banyan Group Residences, the property development arm of SGX-listed hospitality group Banyan Group, is hosting its Laguna Phuket Property Showcase at Banyan Tree Dubai on 23 and 24 October 2026.

The event invites UAE investors to preview six developments at Laguna Phuket, with prices starting from THB 16.3 million (approx. AED 1.8 million) at Bellaguna Lake Residences. It follows a record first half of 2026 for the developer, ranked first in Asia in Savills' 2025-26 Branded Residences report.

Featured developments include absolute beachfront residences at Banyan Tree Beach Residences Mazu, where the final two villas have just been released, and Oceanus, alongside beachfront townhomes at Varuna and the newly launched Nerea. Owners enjoy a year of complimentary property management and insurance through the Laguna Advantage program, Sanctuary Club privileges at Banyan Group hotels worldwide, and optional rental management through Banyan Living.

HSBC 'Sharia-Compliant' Fund Linked to $131 Million in Companies Supplying Israeli Military: MEE

🔹 What Is It About

HSBC's Islamic Global Equity Index Fund holds approximately $131 million in five companies linked to Israel's military, according to an investigation by Middle East Eye (MEE) and Hyphen. The holdings include Palantir ($38.3 million), RTX ($35.7 million), Analog Devices ($20.3 million), Honeywell ($18.9 million) and Rolls-Royce ($17.6 million). Together, they represent roughly 4% of the $3.2 billion Sharia-compliant fund, which tracks the Dow Jones Islamic Market Titans 100 Index. HSBC has not responded to requests for comment.

🔹 Why It Matters

The findings raise questions about Sharia-compliant investment screening and whether existing criteria adequately reflect investor expectations. As a passively managed fund, HSBC's portfolio follows index weightings rather than individual stock selections, while a Shariah Committee oversees compliance. The companies' reported military connections have not been independently verified by the publication. The controversy highlights a broader challenge for Islamic finance, particularly as investors increasingly scrutinise the ethical implications of their holdings.

🔹 What's Next

Attention now turns to HSBC's Shariah Committee and whether its screening methodology will face review. Ibrahim Khan, co-founder of Islamic Finance Guru, argued that the fund's criteria “can and should be changed”, while encouraging investors to push for improvements rather than abandon the fund. HSBC has yet to explain how the reported holdings satisfy its compliance requirements.

👨‍💻From Smashi Business’ Desk

• Dubai-born fragrance brand KAYALI will enter China on October 15.

• Saudi-born dining platform SPICE has ruled out offering cashback on shisha or alcohol at partner restaurants as it keeps its rewards model aligned with Islamic principles.

• Uber will invest $50 million in Jordan over the next three years, targeting the country’s mobility ecosystem while supporting economic opportunities, tourism and access.⁠

• Dubai Crown Prince HH Sheikh Hamdan just shared his Etihad Rail ticket on Snapchat as Dubai-Abu Dhabi passenger services prepare to launch on September 30.

🔍In other news…

• Dubai Media Signs Deal to Reach 450,000 Hotel Rooms

• Abu Dhabi's IRH Seeks Further Mining Acquisitions in Zambia

• DIP Pushes Ahead With Plans for UAE's First IPO of 2026 Despite Regional War

• Lebanese-Founded HalaPop Announces Expansion Into Saudi Arabia

• Oil Hits Five-Month High of $110 Amid Fresh Middle East Escalation

🦄 World of Startups

• Echelon: Riyadh AI firm Echelon names East40, RAED Ventures, Avra and Ben Horowitz as backers.

• MNT-Halan: MNT-Halan prices its EGX IPO at EGP 24.50 per share, valuing the 20% stake at EGP 7.84 billion.

• Project Suppliers: Saudi platform Project Suppliers raises $1 million in pre-seed funding to develop AI cash-flow tools.

• MoneyHash × VaultsPay: MoneyHash merchants can now accept VaultsPay’s UAE card and wallet payments without separate integration.

• TiE Women MENA: Five startups win regional TiE Women MENA tracks and advance to the GITEX Global final.

• Sheraa × Nestlé UAE: Sheraa, Nestlé UAE, MAJRA and UAE Food Cluster launch a three-month programme for young founders.

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