Happy Saturday everyone!

From Gulf box office shifts to corporate earnings strength, today’s regional business signals point to one clear theme: the Middle East is no longer simply a growth market — it is increasingly setting the pace. In entertainment, local productions are proving they can outperform global Hollywood releases, reflecting stronger audience demand for culturally resonant storytelling. In business, regional heavyweights are delivering outsized financial impact, with Fertiglobe posting sharply higher profits and Delivery Hero relying heavily on MENA for profitability. Across sectors, from cinema screens to balance sheets, the region is asserting itself as a core driver of performance, influence, and long-term strategic value.

In the wake of developments in the region, we hope everyone stays safe. At this critical moment, it is essential to remain united and follow guidance issued by official authorities from your country.

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Markets

Smashi Business Analysis: Michael Lands Strongly, But Local Cinema Owns The Market

A Strong Regional Debut For A Global Icon

The Michael Jackson biopic Michael has opened with solid momentum across key Gulf markets, earning 4.5 million Saudi riyals and 4.1 million Egyptian pounds in its first week, as per numbers seen by Smashi Business on ElCinema. Directed by Antoine Fuqua and starring Jaafar Jackson, the film taps into the enduring regional appeal of Michael Jackson, whose cultural influence continues to resonate strongly across MENA audiences.

Local Productions Are Setting The Commercial Pace

Despite its respectable launch, Michael’s performance is overshadowed by the scale of regional box office success elsewhere. In Egypt and Saudi, Bershama has accumulated EGP188.2 million and SAR23.4 million, respectively, with the same-week-as-Michael release earnings of EGP10.02 million and SAR4.8 million. The gap highlights a significant market shift: regional audiences are increasingly rewarding stories that reflect local culture, language, and social context.

The Balance Of Power In Gulf Cinema Is Changing

The broader takeaway for studios is that MENA’s theatrical landscape is becoming more competitive and less reliant on imported blockbuster appeal. Hollywood titles can still draw audiences, particularly those tied to globally recognized figures, but local productions are no longer niche alternatives. They are emerging as dominant commercial contenders, signaling that the future of Gulf box office growth may increasingly be driven by homegrown storytelling rather than international franchise power.

ADIO Rebrands as ‘Beyond Capital’ to Drive Abu Dhabi’s Falcon Economy Vision

Abu Dhabi is signalling that its next growth chapter is about more than attracting investment.

The Abu Dhabi Investment Office has unveiled its new “Beyond Capital” brand, marking a strategic shift from simply drawing capital into the emirate to activating it at scale across high-priority sectors.

The rebrand aligns with Abu Dhabi’s Falcon Economy vision and reflects ADIO’s growing role in building long-term economic value through sector-specific clusters including SAVI, HELM, AGWA and FIDA.

The focus: creating integrated ecosystems that combine infrastructure, regulation, innovation, talent and supply chains to help businesses not just enter Abu Dhabi, but scale globally from it.

The move underscores Abu Dhabi’s broader ambition to position itself as a global platform for future industries, export growth and resilient supply chains.

It’s less about being a destination for capital and more about becoming a launchpad for global economic transformation.

Delivery Hero’s MENA Business Emerges As The Main Driver Of Group Profitability

What Is It About?

Delivery Hero reported first-quarter 2026 gross merchandise value growth of 8.8% on a like-for-like basis to €12.5 billion, broadly meeting analyst expectations, as revealed by FWDstart. But its FY2025 annual filings reveal a deeper story: the company’s Middle East and North Africa operations are carrying a disproportionate share of profitability. MENA generated €546 million in adjusted EBITDA, accounting for roughly 60% of group EBITDA despite contributing only about 30% of total GMV.

Why It Matters?

The figures underscore how strategically critical MENA has become for the Berlin-listed food delivery giant. While regional EBITDA margins in MENA reached 3.7%, other markets lagged significantly, with Asia posting 1.6%, the Americas 2.5%, and Europe remaining loss-making at negative 0.8%. Adding to this, a profit-and-loss transfer agreement now channels earnings from Delivery Hero’s regional holding directly to the parent company, reinforcing MENA’s role in supporting group financial stability.

What’s Next?

The key question for investors is whether Delivery Hero can replicate MENA’s profitability model elsewhere or deepen its dependence on the region. With the parent company still reporting a net loss of €860.9 million for FY2025, pressure will likely intensify to improve margins across underperforming geographies. Future growth strategies may increasingly prioritize MENA, while management faces scrutiny over balancing regional concentration risk with broader operational turnaround efforts.

Fertiglobe announced profits almost doubled (+98% YoY) to $145m in Q1 2026

What Is It About?

Fertiglobe, the world's largest seaborne exporter of urea and ammonia, reported a 31% year on year surge in first-quarter adjusted core earnings, as higher prices and operational efficiency offset trade route disruptions across the region.

Why It Matters?

The company, the exclusive ammonia platform for ADNOC and its global investment arm XRG, said adjusted EBITDA rose to $342 million for the quarter ended March 31, reflecting tight global supply conditions and strong seasonal demand. Revenues climbed 32% to $915 million, while adjusted net profit nearly doubled to $145 million, up 98% from the same period a year earlier.

What’s Next?

Chief executive Ahmed El-Hoshy said the performance demonstrated the "strength and resilience" of the platform despite a complex operating environment during the conflict with Iran.

👨‍💻From Smashi Business’ Desk

• Exclusive: Bezos’ $38 Billion “Project Prometheus” AI Play, Which Has a Quiet Gulf Angle

• Saudi Arabia’s first Hollywood-scale blockbuster Desert Warrior has opened modestly at the US box office.

• Despite a market cap of just $15.7 million — well below Nasdaq’s $35 million threshold — Swvl Holdings Corp is not on the brink of delisting.

• UK universities under fire after reports of £440k spent spying on pro-Palestine student activity⁠

🔍In other news…

• PIF has confirmed it will no longer support LIV Golf

• $22B Rokos Capital Pushing Ahead With Abu Dhabi Office After Regulator Approval

• Iran war diverts more ships from Suez to long route round Africa

• Israel rushed laser system to UAE to fend off Iran’s missiles

• Abu Dhabi has become even more appealing, says Aldar CFO

🦄 World of Startups

• Dubai gifting marketplace Udora secures $10M

• Saudi fashion platform Aya secures $7m to scale real time production

• Jordan-based Tamatem has acquired Istanbul-founded Playable Factory, strengthening its push into performance marketing and user acquisition.

• Egypt’s Lucky Raises USD 23M Series B. Its Consumer Credit Model is Expanding Into North Africa

• “We Got Funded!” Maison Safqa Raises US$620,000 in Pre-Seed Funding to Expand Luxury Flash-Sale Platform Across GCC

• Via Separations, US-based deeptech startup, raised $36M in funding from Aramco Ventures (Saudi), and other global investors.

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