Happy Friday everyone!

OpenAI has become the world’s most valuable startup at $500 billion after a $6.6 billion secondary share sale, with UAE’s MGX among investors. In sovereign wealth, Mubadala led MENA activity in the first nine months of 2025, deploying $17.4 billion and cementing Abu Dhabi’s dominance. Meanwhile, Saudi Arabia’s music industry is going global: Spotify reports royalties surged 76% in 2024 to $3.5 million, with most earnings from international listeners.

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Markets

OpenAI Valued At $500 Billion In Secondary Sale With UAE’s MGX Among Investors

🔹 What Is It About

OpenAI has overtaken SpaceX as the world’s most valuable startup after a secondary share sale valued the company at $500 bn. Investors including Thrive Capital, SoftBank, Dragoneer, T. Rowe Price, and UAE’s MGX purchased $6.6 bn worth of stock from current and former employees. The sale not only highlights the scale of investor appetite for AI ventures but also provides liquidity to retain top talent in an increasingly competitive field.

🔹 Why It Matters

The transaction underscores OpenAI’s central role in the global AI boom. Since its founding in 2015, the company has become the developer behind ChatGPT and GPT-5, securing partnerships with Oracle and SK Hynix. Despite not yet turning a profit, OpenAI’s valuation reflects confidence in its long-term prospects. That employees sold less than the $10 bn permitted suggests strong belief in the company’s future trajectory, even as rivals like Meta, Google, and Anthropic intensify competition.

🔹 What’s Next

OpenAI is negotiating with Microsoft to establish a new public benefit corporation structure, a move facing legal challenge from co-founder Elon Musk. As capital floods into AI, the company’s ability to scale research, infrastructure, and applications will shape both its market dominance and the global AI investment landscape.

Mubadala Leads MENA Sovereign Investment With $17.4 Billion In 2025

🔹 What Is It About

Mubadala topped MENA sovereign wealth fund (SWF) activity in the first nine months of 2025, deploying $17.4 bn, according to Global SWF. ADIA followed with $9.6 bn, PIF with $6.2 bn, and ADQ with $4.8 bn. Overall, MENA sovereign investors executed $56.3 bn across 97 transactions, representing 40% of global SOI activity. Since inception, Mubadala also ranks first in total outbound investments, at $261.8 bn across 459 transactions.

🔹 Why It Matters

The report underscores Abu Dhabi’s dominance in sovereign wealth, with $1.81 tn of the $14 tn managed worldwide. MENA funds collectively hold $5.6 tn, projected to hit $8.8 tn by 2030 at a 10% CAGR. Investment flows are largely outbound, with 34% going to the US, 28% to Europe, and 16% deployed domestically. Real estate, infrastructure, and financials attract the bulk of allocations, reflecting strategic global diversification.

🔹 What’s Next

MENA’s outbound focus is set to deepen as funds chase opportunities in the US, UK, and Asia, with China, India, and Egypt gaining traction. Yet inbound flows remain muted, with only $77 bn attracted from global peers. Rising Asian interest in the GCC suggests shifting capital dynamics amid weak European growth and US tariff pressures, positioning MENA funds to play an increasingly central role in global capital markets.

Saudi Artists’ Spotify Royalties Surge To $3.5 Million As Global Streams Skyrocket

🔹 What Is It About

Saudi Arabia’s music industry is seeing unprecedented global traction, with Spotify’s first stand-alone report for the kingdom revealing artists earned more than 13 million riyals ($3.5m) in 2024 royalties. This marks a 76% rise from 2023 and more than double 2022 levels. Over 90% of these earnings came from international listeners, while Saudi music was discovered more than 220 million times by first-time audiences worldwide.

🔹 Why It Matters

The findings highlight how Saudi music is breaking regional boundaries and finding global audiences in the US, Brazil, India, Germany, the UK, and France. Arabic has become one of Spotify’s fastest-growing languages, signaling cultural exports beyond borders. The data also shows the growing role of insights-driven strategy, with artists using Spotify analytics to plan tours and collaborations, turning digital success into global opportunities and expanding Saudi Arabia’s cultural footprint.

🔹 What’s Next

Spotify is deepening support for Saudi artists through residencies, workshops, and marketing tools aimed at long-term career growth. With streaming reshaping global music economics, Saudi talent is positioned to scale further, especially through collaborations with international stars. As MENA remains the fastest-growing music market worldwide, Saudi artists are set to play a defining role in the region’s next wave of global cultural influence.

👨‍💻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…

• UAE ‘centre of the world’ for expanding global businesses

• Saudis seek feedback on plan to open stock market to foreigners

• Qatar buys land in Egypt for giant tourism project

• Abu Dhabi’s economy grows 3.8 percent to $83.4 billion in Q2 2025

• Zed adds 10,700 taxis after DTC and National Taxi join ride-hailing platform

• e& partners with Dubai Premier Padel P1 for UAE's largest Padel event

🏦 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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