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MENA Business Update: Saudi PIF Expands in Japan, UAE Leads in AI Payments, and Startups Thrive
Wednesday, December 3, 2025
Happy Wednesday everyone!
Welcome to this week’s Business Insights, where we highlight key developments shaping the MENA region’s market landscape.
This month’s regional business update highlights major developments across the MENA region. Saudi Arabia’s PIF plans to expand investments in Japan to $27 billion by 2030, targeting sectors from clean energy to urban development. The UAE becomes the first country outside the US to adopt Mastercard’s AI-powered payment platform, while House of Pops CEO Mazen Kanaan shares how the UAE’s inclusive ecosystem has fueled his startup’s growth. From international investments to local success stories, these updates showcase the region’s dynamic economic momentum.
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 | 40,625.63 | 0.17% |
DFMGI | 5,836.89 | Closed |
ADX | 9,747.17 | Closed |
Tadawul | 10,536.28 | 0.06% |
Saudi Arabia’s PIF to Boost Investments in Japan to $27 Billion by 2030
What’s it About?
Saudi Arabia’s Public Investment Fund (PIF) plans to increase its investments in Japan to $27 billion by 2030, up from $11.5 billion at the end of 2024. PIF Governor Yasir Al-Rumayyan announced this at the Future Investment Initiative Asia Priority Summit in Tokyo. The fund has been active in Japan since 2017, contributing $6.7 billion to the country’s GDP, expected to reach $16.6 billion by 2030. Key sectors include travel, urban development, advanced manufacturing, logistics, clean energy, and Neom, with a Dragon Ball and anime-themed park at Qiddiya planned in collaboration with Japan.
Why it Matters?
This expansion strengthens economic ties between Saudi Arabia and Japan, ensuring smoother supply chains and increasing bilateral investment. It highlights the PIF’s strategic role in diversifying Saudi investments and supporting Vision 2030 goals.
What’s Next?
PIF will continue negotiating deals and signing MoUs with Japanese banks and partners, with ongoing projects in the pipeline across the targeted sectors. Future developments, including the themed park at Qiddiya, will showcase the long-term collaborative vision between the two nations.
UAE Becomes First Country Outside the US to Have Mastercard’s AI-Powered Payment Platform
What’s it About?
The UAE is piloting Mastercard’s AI-powered payment platform, Agent Pay, in partnership with Majid Al Futtaim and fintech firm Dataiera. The platform allows cardholders to search, compare, and complete purchases, including cinema tickets at VOX via an AI agent. The system is designed with user consent, transparency, and network-level security in line with Mastercard’s standards.
Why it Matters?
This rollout positions the UAE as a regional leader in AI-driven fintech and digital commerce. By streamlining transactions and automating payments, it supports the country’s vision to integrate innovative technologies into everyday consumer experiences.
What’s Next?
Agent Pay is expected to expand across additional retail sectors, offering more automated services and driving adoption of AI-assisted payments throughout the region.
House of Pops CEO Credits UAE for Startup Success: “There’s No Ceiling to What You Can Achieve”
What’s it About?
Mazen Kanaan, Co-founder and CEO of House of Pops, highlighted the UAE’s supportive environment for startups, regardless of nationality. He praised the country’s infrastructure, safety, and entrepreneurial mindset, noting how access to prime locations, top-tier events, and government support has fueled the company’s growth.
Why it Matters?
Kanaan’s experience underscores the UAE’s inclusive approach to entrepreneurship, where success depends on hard work and contribution to the economy, not citizenship. This mindset continues to attract diverse talent and investment, enhancing the country’s startup ecosystem.
What’s Next?
House of Pops aims to expand its presence regionally and internationally while continuing to leverage the UAE’s resources and support for startups. Kanaan reaffirms his commitment to contributing back to the ecosystem and inspiring other entrepreneurs.
🦄 World of Startups
COGNNA Secures $9.2M Series A to Scale AI-Powered Cybersecurity Globally
Secure.com (UAE) – Raised $4.5M from Disrupt.com and launched Digital Security Teammate, an AI-native cybersecurity agent platform.
Saudi Startup CQR Launches AI-Powered FENNEC Platform for Critical Infrastructure Security
Savvy Games and King Saud University Partner to Boost Saudi Gaming Talent
FuturePlay Partners with Saudi Ministry to Boost Korean Startups in MENA
Fawry Launches Holding Company to Power Expansion in Egypt’s Fintech Sector
bluworks lands $1 million seed investment to accelerate MENA expansion
👨💻From Smashi Business’ Desk
🔍In other news…
Forty IPOs are under review, Tadawul CEO says
Westfield Dammam launches in Saudi Arabia as Cenomi Centers rebrands Nakheel Dammam Mall
du Pay tops AED 1.5bn in digital transactions as UAE pushes towards cashless future
erad secures $125m facility to expand SME finance across the Gulf
Saudi Arabia approves 2026 budget with $306bn in projected revenues
We expect 15% annual growth for our business in Saudi Arabia: Siemens official
Egypt’s TMG invests over $5bln in two Oman real estate projects
