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- Middle East Moves: Petrofac Gratuities Crisis, Starbucks Jordan Closures, and UAE’s $1B AI Push for Africa
Middle East Moves: Petrofac Gratuities Crisis, Starbucks Jordan Closures, and UAE’s $1B AI Push for Africa
Monday, November 24, 2025
Happy Monday everyone!
This week, we take a closer look at some of the most impactful developments across the Middle East and beyond. From the financial uncertainty facing nearly 200 Petrofac employees in the UAE, to Starbucks’ latest closures in Jordan amid a growing pro-Palestinian boycott, and the UAE’s ambitious $1 billion initiative to drive AI-powered development across Africa these stories highlight shifts in business, technology, and social influence that are shaping the region’s economic landscape.
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.
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Nearly AED27 Million in Unpaid Gratuities: Petrofac UAE Employees Left in Crisis After Sudden Mass Layoffs
What’s it About?
Nearly 200 Petrofac employees in the UAE are facing uncertainty after sudden mass layoffs on November 18, where staff were told their roles were no longer required and instructed to leave immediately. Many say they were given no clarity regarding their end-of-service benefits, with unpaid gratuities collectively estimated to exceed AED27 million, according to KT. Several employees report receiving only partial payments or none at all with dues ranging between AED100,000 and AED734,000.
Why it Matters?
The layoffs come at a time when Petrofac is already under financial pressure, following the cancellation of a €2 billion project in the Netherlands and the company’s subsequent move to apply for administrators in the UK. Employees argue financial difficulties do not excuse improper layoffs or withholding legally owed gratuity. The incident highlights a broader concern around corporate accountability, labor protections, and the financial vulnerability of expatriate workers in the UAE.
What’s Next?
Although Petrofac announced on November 19 that UAE operations remain “normal” while the company explores long-term solutions, affected employees are still waiting for answers. The company has given them two additional months on their visas to seek new jobs, but the main question remains unresolved: when or if their legally guaranteed benefits will be paid. Employees say they are prepared to escalate the issue if communication continues to stall.
Starbucks Closes Fifth Jordan Branch Amid Rising Pro-Palestinian Boycott
What’s it About?
Starbucks has closed its fifth branch in Jordan this year, with the downtown Amman location shutting down as part of a growing pro-Palestinian boycott. Earlier in March, four other stores were permanently closed. The sustained campaign stems from public anger over alleged ties between Starbucks and the Israeli Occupation, amplified by the Gaza genocide.
Why it Matters?
The closures underscore the economic influence of civic-driven campaigns and highlight a major shift in Jordanian consumer behavior. Local businesses across the country have seen increased support as consumers opt for homegrown brands over multinational chains. Analysts note that the case reflects how political sentiment and social justice movements are increasingly shaping spending patterns and corporate outcomes across the region.
What’s Next?
If the boycott continues gaining steam, more international brands could face operational challenges in Jordan and across the region. Starbucks has not announced plans for further closures, but the company’s visibility in political conversations suggests continued scrutiny and potentially more pressure on its remaining outlets.
UAE Launches $1 Billion “AI for Development” Initiative to Boost African Growth
What’s it About?
The UAE has unveiled a $1 billion initiative to finance and support artificial intelligence projects across African nations. Announced at the G20 by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed, the initiative called “AI for Development” aims to accelerate AI adoption in key sectors including education, agriculture and infrastructure. The program will be led by the Abu Dhabi Exports Office in partnership with the UAE Foreign Aid Agency.
Why it Matters?
The initiative strengthens the UAE’s strategy to position itself as a global leader in AI and knowledge-based development. For African nations, it provides access to advanced technologies, financing tools, and technical support needed to modernize government operations and essential sectors. Officials say the program will drive inclusive development, build long-term economic resilience, and deepen technological cooperation between the UAE and Africa.
What’s Next?
Implementation will focus on deploying AI solutions across priority sectors while enabling UAE enterprises to participate in high-impact development projects. African countries are expected to begin integrating AI tools into education systems, agricultural planning, and infrastructure management. UAE officials say the initiative will grow over time, supporting broader global partnerships and expanded AI-driven development agendas.
🦄 World of Startups
Kingpin, a UAE-based startup, has raised $3.5M to accelerate the rollout of its AI-powered retail and distribution tools across GCC, Europe, and North America.
Secure.com (UAE) – Raised $4.5M from Disrupt.com and launched Digital Security Teammate, an AI-native cybersecurity agent platform.
Shatib (Saudi) – Secured $750K pre-seed from a strategic angel investor for its B2B group purchasing marketplace for construction materials.
SahmAlgo (Saudi) – Raised $1M seed led by Gharesah Investment to expand AI-driven financial analytics for traders and enterprises.
Takadao (Saudi) – Raised $1.5M seed from multiple investors to offer Sharia-compliant DeFi solutions via its community-owned LifeDAO.
Ghanem (Saudi) – Secured $7.1M from Al-Romaih Group for its digital real estate investment platform under the REGA Regulatory Sandbox.
bluworks lands $1 million seed investment to accelerate MENA expansion
👨💻From Smashi Business’ Desk
🔍In other news…
Lebanese minister outlines strategy for industrial growth
Oman Expands Global Footprint With New Air Routes Across Asia, Europe, and Africa.
Abu Dhabi announces truck ban on key roads from December 1.
UAE Rolls Out Nationwide Strategy to Dominate the Global Startup Landscape
