Happy Saturday everyone!

The UAE is earning praise from the IMF for its strong economic resilience and growth outlook, even as risks in property and crypto markets demand vigilance. In the automotive space, Tesla is accelerating its Middle East expansion with the launch of its Cybertruck in Qatar, following earlier debuts in Saudi Arabia and the UAE. Meanwhile, in one of the year’s biggest technology infrastructure bets, Mubadala-backed MGX is joining BlackRock’s GIP in advanced talks to acquire Aligned Data Centers in a deal valued at around $40 billion.

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Markets

IMF Praises UAE Economic Resilience But Flags Real Estate And Crypto Risks

🔹 What Is It About

The International Monetary Fund commended the UAE’s strong growth and resilience amid global volatility, projecting nearly 5% GDP expansion in 2025. The Fund highlighted the country’s diversification efforts through investments in technology, infrastructure and AI, while also noting robust sovereign buffers, sound financial management and a rising non-oil economy driven by tourism, construction and banking.

🔹 Why It Matters

Despite the upbeat outlook, the IMF cautioned that real estate and virtual assets remain areas requiring vigilance. Rising housing costs could create affordability issues, while crypto expansion demands stronger regulatory coordination to mitigate systemic risks. Property tokenisation was also singled out as a potential challenge with wider macroeconomic implications if capital flows reverse or investor sentiment shifts.

🔹 What’s Next

The IMF urged UAE policymakers to sustain reforms supporting diversification and competitiveness, while reinforcing regulatory frameworks around real estate and virtual assets. Strengthening supervisory capacity and aligning with global standards will be crucial to balance innovation with financial stability. Authorities are also expected to maintain focus on long-term priorities including climate adaptation, food security and water management.

Tesla Launches Cybertruck Sales In Qatar, Expanding Middle East Footprint

🔹 What Is It About

Tesla has started selling its Cybertruck in Qatar, marking its latest push into the Middle East after debuting in Saudi Arabia earlier this year and first entering the region via the UAE in 2017. The expansion comes as the EV maker faces slowing demand in its core US and Chinese markets, and aims to strengthen sales through online ordering, pop-up showrooms, Supercharger stations and service centers.

🔹 Why It Matters

The launch signals Tesla’s commitment to broadening its international reach amid rising global competition from Chinese automakers like BYD and Zeekr, as well as U.S. rival Lucid, which is backed by Saudi Arabia’s Public Investment Fund. The Middle East offers a lucrative growth opportunity as regional governments invest heavily in EV infrastructure and clean mobility, aligning with diversification and sustainability goals.

🔹 What’s Next

Tesla is expected to further scale its Middle East operations as it leverages flagship models such as the Cybertruck and refreshed Model Y to build momentum. However, analysts warn of a challenging road ahead, with U.S. tax credit expirations and intensifying competition likely to weigh on future deliveries. Expansion in Qatar positions Tesla to compete for early adopters as EV adoption in the region accelerates.

MGX Joins BlackRock’s GIP In Advanced Talks To Acquire Aligned Data Centers In $40 Billion Deal

🔹 What Is It About

MGX, the AI-focused investment arm backed by Abu Dhabi’s Mubadala, is joining BlackRock Inc.’s Global Infrastructure Partners (GIP) in advanced talks to acquire Aligned Data Centers. The potential $40 billion deal, which could be announced within days, would mark one of the largest transactions of the year. Mubadala has already invested in Aligned, which is backed by Macquarie and operates more than 70 data centers across the US and South America.

🔹 Why It Matters

The deal highlights the intensifying race among global investors to secure exposure to AI infrastructure, as data centers become the backbone of the industry’s explosive growth. Investors, from sovereign wealth funds to private equity giants, are pouring billions into digital infrastructure amid rising demand for computing power, despite warnings of inflated valuations. At $40 billion, the Aligned transaction would rank among the world’s top five deals in 2025 and dwarf GIP’s earlier $15 billion CyrusOne buyout.

🔹 What’s Next

While no final agreement has been reached, the acquisition would deepen BlackRock and Mubadala’s strategic push into AI-driven infrastructure. Governments are also fast-tracking approvals for data center construction, with the White House moving to ease environmental reviews. If completed, the deal will add momentum to a wave of mega-investments from Meta, Oracle, and others building AI infrastructure. Still, analysts warn of a potential bubble if AI adoption fails to generate the revenues needed to justify soaring valuations.

👨‍💻From Smashi Business’ Desk

• Vercel CEO Guillermo Rauch is facing backlash after posting a photo on X showing him meeting Israeli PM Benjamin Netanyahu, wanted for war crimes by the UN-backed ICC.

• Replit founder Amjad Masad says he faced “sabotage” from VCs for speaking out on Gaza — but urges the tech community to break its silence now that “the truth is undeniable.”

• UAE Minister Showcases DIFC’s 20-Year Rise from Sand to Global Financial Hub.

🔍In other news…

• The UAE is positioning to capture a greater share of the $100 billion-plus global satellite industry, chief executive of Mubadala-backed Space42

• Oman Air lays off workers to cut operational costs

• Abu Dhabi's IHC buys $1bn stake in India's Sammaan Capital

• UAE grants first drone airspace provider certificate to Dubai Air Navigation Services

🏦 Crypto Corner

• Crypto data reveals UAE has mined bitcoins worth $700m

• Michael Saylor — Executive Chairman of MicroStrategy and one of Bitcoin’s most vocal corporate advocates — will make his first-ever appearance in the UAE at Bitcoin MENA in Abu Dhabi.

• Hut 8, part of a American BTC which is partially owned by Donald Trump Jr. and Eric Trump, Gets Approval to Operate in Dubai Financial Hub.

• Abu Dhabi Judicial Department now accept AE Coin.

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