👋 Good morning, Smashi Business Readers!

Here’s your daily dose of the top business stories shaping the MENA region and beyond:

• Kushner’s Affinity Partners has secured a $1.5 billion boost from Qatar’s QIA and Abu Dhabi’s Lunate, signaling continued confidence in the investment firm’s vision.

• Saudi Arabia’s sports sector made a $6.9 billion splash in 2023, with projections set to nearly triple by 2030, underscoring the Kingdom’s growing focus on sports as an economic driver.

• Is the UAE really holding $40 billion in Bitcoin? We explore the facts behind the buzzworthy rumor.

Keep reading for more details.

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Kushner’s Affinity Secures $1.5 Billion from QIA and Lunate

📰 What is it about?

• US-based investment firm Affinity Partners, led by Jared Kushner, has raised $1.5 billion in new capital from the Qatar Investment Authority (QIA) and Lunate, an Abu Dhabi-based alternative investment fund.

• This injection boosts Affinity’s assets under management to $4.6 billion. Affinity has invested in prominent firms like Dubai’s Dubizzle Group and Brazil’s Zamp SA, and the firm claims a robust deal pipeline ahead.

💡 Why it matters?

• Strategic Backers: With QIA and Lunate as major contributors, Affinity strengthens its ties with MENA sovereign wealth funds, known for their aggressive global investment strategies.

• Conflict Mitigation: Kushner emphasizes strict adherence to laws, addressing potential ethical concerns during Donald Trump’s upcoming presidency.

• Regional Focus: Affinity’s growing focus on MENA investments, such as Dubizzle, highlights its role in bridging US-MENA economic interests.

• Major Fund Alignment: Saudi’s PIF, QIA, and Lunate, Affinity’s largest limited partners, underscore the firm’s relevance in global alternative investments.

🔜 What’s next?

• Active Deal Flow: Affinity aims to leverage the new capital for strategic investments in high-growth sectors across MENA and emerging markets.

• Regulatory Vigilance: The firm will ensure compliance with US and international laws during Trump’s presidency, mitigating scrutiny over potential conflicts of interest.

• Expanding Partnerships: The investment solidifies ties with MENA sovereign wealth funds, paving the way for future collaborations.

Markets

Sports’ Growing Economic Role in Saudi Arabia: A $6.9 Billion Boost in 2023

📰 What is it about?

• Saudi Arabia’s sports sector contributed $6.9 billion to GDP in 2023, reflecting a nearly threefold increase from $2.4 billion in 2016, according to Surj Sports Investment. The market grew by 12.5% year-over-year, and projections indicate the sector will contribute $16.5 billion annually by 2030. Key highlights include:

  • Saudi Pro League clubs ranking second globally in net transfer spending at $957 million.

  • Major events: Hosting 100+ elite international events since 2019.

  • Growth in women’s sports participation, with a 149% rise since 2015 and the launch of leagues like the SAFF Women’s Premier League.

  • Expansion of multi-sport clubs, tennis, padel courts, and e-sports sectors.

💡 Why it matters?

• Economic Diversification: Sports form a pillar of Saudi Vision 2030, diversifying the economy and reducing dependence on oil.

• Global Recognition: Hosting the 2034 FIFA World Cup cements Saudi Arabia’s position as a global sports hub.

• Social Impact: Rising participation in women’s sports and neighborhood clubs boosts inclusivity and social cohesion.

• E-sports Leadership: Investments like the $38 billion Savvy Games Group fund place Saudi Arabia at the forefront of the booming global e-sports market.

🔜 What’s next?

• Market Expansion: The sports market is expected to grow to $8-22.4 billion by 2030.

• Job Creation: Over 100,000 jobs are anticipated within the sector.

• Increased Investment: The Kingdom will continue channeling resources into infrastructure, privatization, and sponsorships to sustain momentum.

• Focus on E-sports: With $13.3 billion GDP impact projected by 2030, Saudi Arabia aims to dominate the e-sports industry globally.

UAE Holding $40 Billion in Bitcoin: Fact or Fiction?

📰 What is it about?

• The UAE is rumored to have amassed $40 billion worth of Bitcoin, fueling speculation about the nation’s growing role in the global cryptocurrency market.

• Reports align this claim with the UAE's crypto-friendly policies and initiatives like DMCC’s cryptocurrency center.
  Key points supporting the claim:

  • Former Binance CEO Changpeng Zhao hinted at the UAE’s increasing Bitcoin reserves in an X post, but he sourced it to a crypto news site, which quoted Bitcoinist. The original article by Bitcoinist is now removed from their site.

  • The UAE saw $34 billion flow into cryptocurrencies between 2023 and mid-2024, with Bitcoin holding a 19% market share.

💡 Why it matters?

• Despite the buzz, no credible evidence supports the $40 billion figure.

  • Our research found lack of sources or official confirmation in reports.

  • Such a monumental acquisition would likely make global headlines, yet it remains unverified by any big news site or from official sources.

  • This suggests the flashy claims are speculative, lacking credibility from reliable financial or government sources.

🔜 What’s next?

• Clarifications Needed: UAE officials or financial institutions can and will soon address the rumor to affirm or deny the claim.

• Crypto Growth: The UAE continues to thrive as a crypto hub, with predictions of 3.78 million users by 2025 and innovations like Tether’s dirham-backed token.

🔍In other news…

1. Sheikh Hamdan, Crown Prince of Dubai, has announced the formation of the Board of Young Arab Leaders to empower 200 million.

2. Amjad Masad, a Jordanian-American entrepreneur and founder of Replit, has expressed frustration with "AI doomers".

3. Qatar-based Polistratics’ founder has labeled Europe ‘ungrateful’ for imposing financial penalties under its net-zero policy—despite heavily relying on Qatar’s gas after the Ukraine crisis.

4. The New York Post falsely claimed Jeff Bezos and Lauren Sanchez are planning a $600M wedding in Aspen.

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