Happy Thursday everyone!

The UAE’s Space42 is teaming up with Viasat and Canada’s Terrestar Solutions to develop shared satellite infrastructure that could challenge Starlink’s growing ambitions in mobile connectivity. The project, backed by a joint venture targeting up to $1 billion in equity, aims to deploy its first system by the end of 2029. Meanwhile, Dubai’s financial regulator has fined Moody’s Investors Service Middle East AED 2.15 million over failures to protect confidential information, following seven reported data disclosure incidents. In Israel, stocks and the shekel tumbled as election results pointed to a political stalemate, raising concerns over prolonged uncertainty.

Markets

Israeli Markets Slid as Election Results Pointed to Political Deadlock

What Happened

Israeli financial markets fell on Wednesday as election results pointed to a political stalemate. The shekel weakened 1% against the dollar, while Tel Aviv’s benchmark stock index dropped 2.7%. Bank Hapoalim lost around 4%, and Phoenix Financial fell more than 5%. With roughly half the votes counted, Prime Minister Benjamin Netanyahu and opposition leader Gadi Eisenkot both expressed confidence in becoming the next leader.

Why It Matters

Investors were concerned that political uncertainty could trigger weeks of negotiations and tensions. The shekel’s decline reflected disappointment that Eisenkot’s bloc had not secured a decisive lead. Israeli dollar bonds also underperformed regional and emerging-market peers, signalling growing investor caution. Yields on bonds maturing in January 2036 rose to 5.9%, ending a week-long decline.

What's Next

The formation of a new government was expected to take weeks, as neither political camp had a clear path to securing power. Investors were set to monitor coalition negotiations and the emerging political balance for signs of stability. Continued uncertainty threatened to keep pressure on the shekel, equities and government bonds as markets assessed the implications for Israel’s economic and financial outlook.

RAKIS 2026 Set for November 11–12

Less than a month remains until RAKIS 2026 brings investors, developers, government leaders and business executives to Ras Al Khaimah.

The summit, taking place on November 11–12 at the RAK Exhibition Centre, will focus on investment opportunities and partnerships across real estate, infrastructure, tourism, technology and sustainable development.

The event aims to connect decision-makers and industry experts to discuss the opportunities shaping the emirate’s next phase of economic growth.

Organisers are inviting delegates to register for a free pass ahead of the event.

Register for your free delegate pass here.

UAE’s Space42 Teams Up With Viasat to Build Starlink Rival

What Happened

Abu Dhabi-based Space42 partnered with Canada’s Terrestar Solutions and US-based Viasat to develop open standards for sharing satellite infrastructure and expanding connectivity for mobile devices. The agreement, signed in Ottawa, builds on Equatys, a joint venture launched by Space42 and Viasat to develop infrastructure for direct-to-device and mobile satellite services. The initiative aims to let multiple satellite operators work together while retaining ownership and control of their assets.

Why It Matters

The partnership reflects a broader effort by satellite companies to compete with Elon Musk’s Starlink as it expands into mobile connectivity. By sharing infrastructure, operators hope to reduce costs and extend coverage to remote areas without building entire satellite networks independently. The model could also give countries and telecom operators greater control over critical communications infrastructure and reduce reliance on a single provider.

What's Next

Space42 and Viasat have committed up to $1 billion in equity to Equatys, which is targeting deployment of its first system by the end of 2029. Terrestar plans to develop its own low-Earth-orbit network, CaStar, with an initial phase expected to cost at least C$500 million. The companies will work on common technical standards to enable compatible satellite services across different operators.

DFSA Fines Moody’s AED 2.15 Million Over Confidential Data Disclosures

What Happened

Dubai’s financial regulator fined Moody’s Investors Service Middle East Limited AED 2.15 million for failing to adequately protect confidential information. The Dubai Financial Services Authority said the credit rating agency reported seven inadvertent data disclosure incidents between December 2023 and May 2026, including four involving external recipients. Moody’s agreed to settle the matter and received an early settlement discount.

Why It Matters

The DFSA identified weaknesses in the company’s data protection systems, including discontinuing a security tool without immediately replacing it, inadequate breach detection controls and ineffective disciplinary processes. Credit rating agencies handle sensitive, market-moving information about companies, governments and other entities. Unauthorised disclosures can undermine investor confidence and the integrity of financial markets.

What's Next

The DFSA published a decision notice detailing the case through its regulatory actions section. The fine would have been AED 3.07 million without the early settlement discount. The case highlights the importance of maintaining effective safeguards, monitoring potential data breaches and ensuring employees understand their responsibilities when handling confidential and market-sensitive information.

👨‍💻From Smashi Business’ Desk

• Dubai-born fragrance brand KAYALI will enter China on October 15.

• Saudi-born dining platform SPICE has ruled out offering cashback on shisha or alcohol at partner restaurants as it keeps its rewards model aligned with Islamic principles.

• Uber will invest $50 million in Jordan over the next three years, targeting the country’s mobility ecosystem while supporting economic opportunities, tourism and access.⁠

• Dubai Crown Prince HH Sheikh Hamdan just shared his Etihad Rail ticket on Snapchat as Dubai-Abu Dhabi passenger services prepare to launch on September 30.

🔍In other news…

• Saudi Tanker Giant Posts 10-Fold Profit Jump as Ship Rates Surge

• Turner & Townsend says Middle East cheapest for data centres

• US Tells Ships to Avoid Unnecessary Transits Through Hormuz

• Alleged Israeli spy company heavily targeted Starlink users, sources say

• Riyadh airport faces $50m disruption bill, per AGBI analysis

• US costs of Iran war rise to over $47 billion, according to Pentagon estimate

🦄 World of Startups

• NoorNation: Egypt-based cleantech startup NoorNation raised $1.05 million in seed funding from Linah Farms, Catalyst Fund and KBW Ventures to expand its solar-powered irrigation and desalination solutions.

• Silkhaus: UAE-based short-term rental startup Silkhaus is winding down its holiday-home business in the country, with owner agreements set to end on November 11, 2026.

• MNT-Halan: Egyptian fintech MNT-Halan received a $71.2 million capital injection from its parent company, MNT Investments BV, increasing the parent’s stake to 80.47% shortly after the fintech’s $139.5 million IPO.

• Alpha Dhabi: UAE-based Alpha Dhabi Holding committed $1 billion to Alpha Wave III, a global investment fund managed by Alpha Wave Global that focuses on high-growth companies, with AI at its core.

• Mubadala Capital: UAE-based Mubadala Capital secured a minority equity investment from US asset manager Apollo Global Management, which manages $1.05 trillion in assets, with the investment value undisclosed.

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