- Smashi Business
- Posts
- UAE Activates Russia Services Trade Accord; Qatar Cuts Spending 30%; Iranian President Defends US Framework
UAE Activates Russia Services Trade Accord; Qatar Cuts Spending 30%; Iranian President Defends US Framework
In partnership with
Monday, August 23, 2026
Happy Thursday everyone!
Bilateral investment frameworks, fiscal budget adjustments, and geopolitical diplomatic efforts are driving policy changes across Middle Eastern markets. The UAE-Russia Trade in Services and Investment Agreement (TISIA) has officially entered into force, targeting increased commercial activity across fintech, healthcare, and logistics. In Doha, Qatar reduced government agency budgets by up to 30% and slashed foreign aid funding by 85% following production disruptions at liquefied natural gas facilities. Meanwhile, Iranian President Masoud Pezeshkian defended a US memorandum of understanding as the best path to remove economic risk and end a period of "neither war nor peace."
Markets
EGX30 | 55,350.36 | 1.12% |
DFMGI | 5,920.39 | Closed |
ADX | 10,012.93 | Closed |
Tadawul | 11,078.68 | 1.13% |
UAE and Russia Activate Services Trade and Investment Agreement
What Is It About
The Trade in Services and Investment Agreement (TISIA) between the UAE and Russia officially took effect 1 year after its initial signing in Moscow. Overseen by UAE Minister of Foreign Trade Dr. Thani Al Zeyoudi, the framework lowers market entry barriers and protects cross-border investments across fintech, healthcare, transport, and professional services. The agreement complements the UAE's broader trade strategy, building on non-oil bilateral trade that reached $20.4 billion last year.
Lowering Entry Barriers: The framework establishes clear legal protections and simplifies professional licensing between both countries.
Targeting High-Growth Sectors: Priority commercial areas include digital finance, medical services, freight logistics, and corporate consulting.
Expanding Eurasian Trade: The agreement complements the UAE's broader trade framework with the 5-member Eurasian Economic Union.
Why It Matters
Activating the TISIA strengthens the UAE’s position as a primary trade and investment gateway connecting Russia and the wider Eurasian Economic Union with global markets. Setting clear legal rules for services and investments provides predictability for cross-border businesses operating in both jurisdictions. Expanding bilateral trade services supports the UAE's national agenda to increase total non-oil foreign trade to $1.1 trillion by 2031.
Diversifying Foreign Capital: Establishing clear investment protections encourages cross-border corporate ventures and joint commercial projects.
Expanding Logistics Hubs: Lowering regulatory friction increases service flows across UAE ports, free zones, and financial centers.
What’s Next
Government trade ministries will host joint business forums to connect Russian and Emirati service providers. Corporate compliance teams will update cross-border investment frameworks to utilize the agreement's simplified licensing rules.
Winning Startups Aren't Bigger. They're Leaner.
Founders deploying AI agents across sales, marketing, and customer service are closing more with smaller teams. 65% more sales leads. Less headcount.
Download the free Practical Guide to Agentic GTM for Startups and start building the stack your competitors dream of.
Qatar Cuts Government Budgets 30% Following Energy Infrastructure Disruptions
What Is It About
Qatar reduced operating budgets across several government entities by up to 30% while cutting foreign aid funding by 85%. The spending cuts follow operational disruptions at major natural gas facilities and transit delays through the Strait of Hormuz. International Monetary Fund projections indicate the Qatari economy could contract by 8.6% in 2026, marking the sharpest economic decline among the 6 Gulf Cooperation Council nations.
Reducing Ministry Budgets: Government agencies face mandatory operational expenditure cuts reaching up to 30%.
Slashed Foreign Aid: Overseas development assistance and international aid funding were reduced by 85%.
Why It Matters
Reductions in state spending illustrate how disruptions to energy export infrastructure directly affect public finances in natural gas-dependent economies. Slashed aid allocations and tightened ministry budgets signal a shift toward capital preservation until energy export volumes recover. Prioritizing domestic fiscal stability over foreign commitments allows the government to manage temporary revenue shortfalls without taking on unsustainable public debt.
What’s Next
Finance ministry officials will review quarterly budget allocations to align public spending with actual energy revenue receipts. Energy operators will continue repair work on gas processing facilities to restore baseline liquefied natural gas export capacity.
Iranian President Defends US Framework to Attract Foreign Investment
What Is It About
Iranian President Masoud Pezeshkian defended a US memorandum of understanding signed in June, describing it as the most effective path to remove economic risk and resolve an ongoing security stalemate. Speaking via state news agency IRNA, Pezeshkian stated that Supreme National Security Council members supported the framework to end a state of "neither war nor peace." His comments follow the expiration of a 60-day deadline set by US President Donald Trump, with both nations remaining apart on key terms including the reopening of the Strait of Hormuz.
Why It Matters
Public defense of the US memorandum by Iranian leadership reflects growing pressure to secure sanctions relief and restore economic stability. Protracted conflict and shipping blockades have severely constrained state finances, making diplomatic frameworks critical for re-entering global energy markets. Achieving a lasting diplomatic agreement remains essential for reopening the Strait of Hormuz, restoring global energy flows, and reducing war-risk premiums for regional shipping.
Stabilizing Domestic Markets: Resolving diplomatic deadlocks provides a pathway to ease sanctions pressure and reduce domestic inflation.
Reopening Shipping Lanes: Reaching consensus on maritime access guarantees safer transit for global oil and gas tankers.
What’s Next
Diplomatic envoys will evaluate potential compromise terms regarding naval access and sanctions relief to resume formal negotiations. Economic planners inside Iran will focus on managing domestic supply chains while waiting for official diplomatic updates.
Introducing The First Agentic CRM
Get revenue agents, workflows, and automations across every stage of your motion. Access customer data in real time through Attio's web app, MCP, API, and SDK.
Then Ask Attio anything about your business and get instant answers.
It's the CRM that runs the work behind every win.
👨💻From Smashi Business’ Desk
LVMH-owned Sephora has denied reports it will open stores in Israel, while confirming Sephora Collection, its own beauty brand, signed a temporary resale agreement with Israeli retailer Glam42.
HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, visited Binghatti’s London office, according to photos shared by the developer on Instagram.
President Donald Trump and Saudi PIF Governor Yasir Al-Rumayyan were spotted together at LIV Golf’s New York event at Trump National Bedminster, ahead of the final round.
Saudi boxing power broker Turki Al-Sheikh has pulled out of a proposed takeover of English Championship club Derby County after delays in securing approval left limited time to prepare for the new season.
🔍In other news…
Aramco, Maaden to form JV for mineral exploration across 10% of Saudi Arabia
Parkin expands beyond UAE with Egypt smart parking deal
Libya needs up to $40 billion to develop its oil and gas sector
Dubai gears up for packed events season as Gitex, ATM and Big 5 return
Aramco, Maaden plan mining JV across area nearly 10% of Saudi Arabia
Iraq considers deleting zeros from dinar as officials revive currency overhaul
Blind Egyptian entrepreneur's AI app helps others 'see' the world
🦄 World of Startups
ChatFeatured, Canada-based AI startup, raised $2M in a pre-seed funding round from BY Venture Partners (UAE/Lebanon) and other global investors
Doctorbook, Syria-based healthtech platform, raised $16K in a pre-seed funding round from a group of angel investors, valuing the startup at $200K
Carbar, Australia-based car subscription platform, is merging with Carasti, UAE-based car subscription business operating across the UAE, Saudi Arabia, Thailand, and Singapore, at a combined pre-raise valuation of $74M
Fincart, Egypt-based eCommerce enablement platform, raised $2.8M in a seed funding round
