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In the UAE, officials are doubling down on supply chain resilience and alternative logistics routes as regional conflict exposes vulnerabilities in global shipping corridors. Meanwhile, the UK has sealed a long-awaited trade deal with the Gulf Cooperation Council, unlocking fresh momentum in a £5 trillion investment corridor. At the same time, Gulf-backed SpaceX’s reported IPO filing signals how sovereign wealth capital is increasingly shaping the frontier of space, AI, and connectivity.

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UAE Federal Minister Dr Thani Says ‘Real Friends’ Will Shape Future Partnerships

What Is It About?

The UAE is overhauling its trade and supply chain strategy after the Iran war disrupted shipping through the Strait of Hormuz, choking global energy flows and maritime traffic. Speaking to AGBI, Dr Thani bin Ahmed Al Zeyoudi said the UAE will diversify imports, strengthen alternative logistics routes and deepen ties with “real friends”. He said the country would ensure no single nation supplies more than 50 percent of any commodity while expanding infrastructure in Fujairah and Khor Fakkan.

Why It Matters?

The crisis has accelerated the UAE’s push to protect its role as a global trade and re-export hub. Al Zeyoudi told AGBI that despite initial disruption, “our non-oil trade grew in the last four months” and the country successfully “started manoeuvring around this”. Eastern ports outside the Strait of Hormuz are now handling most seaborne trade, while businesses are being urged to diversify internationally because “otherwise, your businesses are going to die”.

What’s Next?

Speaking separately at a UAE India Business Council event, Al Zeyoudi said the UAE would continue signing trade agreements and expanding logistics connectivity beyond the strait. He described India as one of the UAE’s “real friends” as both countries target $200 billion in bilateral trade by 2030. The UAE is also ramping up infrastructure investments, while Abu Dhabi National Oil Company accelerates construction of a second Fujairah pipeline designed to bypass the Strait of Hormuz by 2027.

UK And GCC Sign Landmark £3.7 Billion Free Trade Agreement After Four Years Of Negotiations

What Is It About?

The UK has signed a long-awaited free trade agreement with the Gulf Cooperation Council, deepening economic ties with Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain. The deal ends four years of negotiations and comes amid rising geopolitical tensions in the region. Keir Starmer said the agreement would “deepen” ties with the Gulf and unlock new opportunities for trade and investment between both sides.

Why It Matters?

The UK government said the agreement could add £3.7 billion annually to the British economy in the long term and increase bilateral trade with the GCC by nearly 20 percent, equivalent to £15.5 billion a year. Around £580 million in duties will eventually be removed. The deal is expected to benefit British carmakers and food exporters, while Gulf countries could gain improved access to agricultural imports as they strengthen food security and diversify beyond oil.

What’s Next?

The agreement is expected to accelerate investment flows between Britain and the Gulf, where sovereign wealth funds manage roughly $5 trillion in assets. GCC states are increasingly investing in sectors including AI, logistics and financial services. Abdulla bin Adel Fakhro said the deal reflects the bloc’s commitment to stronger strategic partnerships with global economies. However, the agreement may still face criticism from trade unions and rights groups over human-rights concerns in some GCC nations.

Gulf-Backed SpaceX Reveals Finances Ahead Of Blockbuster IPO

What Is It About?

Gulf-backed SpaceX has publicly revealed its finances for the first time ahead of its planned Nasdaq IPO under the ticker “SPCX”. The company reported $18.7 billion in 2025 revenue but posted a $2.6 billion operating loss, largely driven by its AI business, SpaceXAI. The filing comes as Gulf sovereign wealth funds and regional investors are increasingly tied to the company’s growth story through technology and infrastructure investments linked to Starlink and space connectivity.

Why It Matters?

The Gulf-backed SpaceX IPO could become one of the largest public listings in history, with reports suggesting the company may seek a valuation close to $1.8 trillion. Starlink remains the key profit engine, generating more than $11 billion in 2025 revenue and serving 10.3 million subscribers globally. Gulf-backed SpaceX is also spending heavily on its future, with more than $15 billion invested into Starship development as the company pushes toward reusable deep-space transport and lunar missions.

What’s Next?

Gulf-backed SpaceX is expected to begin its investor roadshow on June 5 after filing its S-1 prospectus with the SEC. The process will determine the final IPO price before shares start trading on Nasdaq. Investors will closely watch whether Starlink’s profitability can offset mounting AI losses tied to SpaceXAI, while upcoming Starship test launches are expected to remain central to the company’s long-term ambitions around Mars colonisation and global satellite connectivity.

👨‍💻From Smashi Business’ Desk

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

• The Gulf box office is telling a bigger story than just the strong debut of Michael.

• 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…

• Saudi Arabia stops new work for consultants as war rattles finances

• ADNOC CEO Al Jaber says oil supply will take months to recover

• Riyadh Air starts full public sale of flights to Heathrow

• Saudi Oil Exports Value Surged to Three-Year High in March

• Aramco unveils quantum computer to support energy projects

🦄 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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