Gulf

1. More Ukraine talks in Saudi
2. Arab Gaza plan needs US
3. UAE-Türkiye deals stall
4. Kuwait AI push
5. Emirates’ $5B refresh

A tower to dwarf them all.

High-stakes diplomacy in Saudi

Saudi Arabia is at the center of global diplomacy this week, hosting delegations from Ukraine and the US for talks on ending the Russia-Ukraine war. Ukrainian President Volodymyr Zelenskyy will meet Saudi Crown Prince Mohammed bin Salman on Monday, and his team will remain in the kingdom for talks with a US delegation led by Secretary of State Marco Rubio this week. A proposed minerals deal between Ukraine and Washington is also on the agenda, according to the BBC.

Prince Mohammed has positioned Saudi Arabia as a neutral mediator in both regional and global conflicts: Riyadh recently helped secure the release of an American prisoner in Russia and facilitated US-Russia talks. US President Donald Trump said he plans to visit Saudi soon and that the kingdom could host a future meeting with Vladimir Putin.

Analysis: Arab Gaza plan needs Trump

The Arab proposal for Gaza hasn’t addressed two major issues — funding for reconstruction and sidelining Hamas — and was quickly dismissed by the US and Israel, writes Faisal J. Abbas, Editor-in-Chief of Arab News, in a Semafor column.

“Despite reaching what looks like a dead end, Trump’s team surprised everyone by announcing it held direct talks with Hamas,” Abbas wrote. “The flurry of Arab, Islamic, and international meetings coming up in Saudi Arabia — including a possible visit by the US president to the kingdom in the next few weeks — signal that something could still be cooking.”

UAE-Türkiye investments falter

Two years after the UAE said it would invest $51 billion in Türkiye, few deals have been done, amid mismatched expectations between Gulf buyers and Turkish sellers, according to Bloomberg. It illustrates how government investment pledges are often announced with much fanfare, but words are not always followed by actions.

Timing seems to be a major factor — Türkiye’s economy is far healthier than when the investment pledge was made in July 2023. A foreign exchange crisis has been avoided and local companies can borrow from abroad with relative ease, meaning Emirati cash is less critical and the scale of discounts Gulf investors often seek are unappealing to Turkish business owners. As a result, proposed investments in Turkish banks, airlines, and energy firms have collapsed. Most recently, a plan for Abu Dhabi Ports to buy Izmir Port was shelved in February.

Kuwait taps Microsoft in AI push

The number of Kuwaiti public sector workers will train by Microsoft in artificial intelligence and cybersecurity, as the country looks to technology to lift its slumbering economy. The US tech giant will also train 30,000 people in Kuwait on its AI system, Copilot, and set up an AI Innovation Center. Kuwaiti officials are hoping this will boost productivity and deliver better public services, making the wider economy more welcoming for global investors and local entrepreneurs. The country has fallen behind its neighbors when it comes to developing new industries, but with its parliament shuttered for four years, there are few limits on the government’s ability to accelerate reforms.

Emirates’ $5B cabin refresh

Emirates plans to spend $5 billion refurbishing 220 planes, as delivery delays force it to keep older aircraft flying for longer. The cost of the refit is $1 billion higher than the airline suggested last year, partly because the number of aircraft being spruced up has risen. “We’ve had to take control of our own destiny,” said the airline’s President Tim Clark. The Gulf’s biggest carrier is in a tight spot. Its fleet largely consists of Boeing 777s and Airbus A380s, but Airbus no longer makes its double-decker and Boeing has yet to secure final certification for its new 777X model. Without a cabin refresh, Emirates could lose out to rivals with newer planes and plusher seats.

In a polarized world, where do people find their happiness? Semafor, in partnership with Gallup and in coordination with the World Happiness Report editorial team, will present the latest data and insights at The State of Happiness in 2025: A World Happiness Report Launch Event, exploring key themes around kindness, generosity, and policies that enhance well-being.

Join Costa Rican Ambassador to the US Dr. Catalina Crespo-Sancho,

Finnish Ambassador to the US Leena-Kaisa Mikkola, Icelandic Ambassador to the US Svanhildur Hólm Valsdóttir, special guest Gurudev Sri Sri Ravi Shankar, and more to explore the report’s key themes around kindness, generosity, and happiness and policies that enhance well-being.

March 20, 2025 | Washington, DC | RSVP

Giga projects

• NEOM executives were reportedly making unrealistic assumptions about megacity’s business plan to justify rising costs and delays at the project. An internal report estimated that tourists would pay $704 a night for “glamping” and $1,866 for a “boutique hiking hotel.” — The Wall Street Journal

Public Investment Fund

• A unit of Saudi Arabia’s Public Investment Fund held talks to invest in a new body to manage World Athletics’ commercial rights, adding another element to the country’s growing sporting portfolio, alongside Formula 1 and the 2034 men’s soccer World Cup. — Reuters
• PIF is sponsoring maternity benefits for more than 300 players in the women’s tennis tour. The WTA program offers 12 months of paid leave, and also provides grants for egg freezing, IVF, and other fertility treatments. PIF became a global partner of WTA last year. — The Associated Press
• PwC’s one-year ban on new advisory work from PIF reportedly stemmed from a dispute over personnel. The firm attempted to hire the chief internal audit officer of NEOM, one of PIF’s most important projects, causing friction between PwC and the fund. — Financial Times
• The Saudi sovereign wealth fund could also invest up to $100 million in low-cost airline AirAsia, as part of a wider round by the Malaysia-based carrier which could be concluded soon. — Bloomberg

Venture capital

• Startups across the Middle East and North Africa secured $494 million in funding in February, a fivefold increase on the same month last year. Of that, $250 million was poured into 25 Saudi startups; their UAE peers weren’t far behind, raising $203 million.

Jeddah Tower is set to claim the title of the world’s tallest in two years, but Saudi Arabia isn’t stopping there. A proposed skyscraper near Riyadh’s airport, designed by British firm Foster + Partners, could be double that height — soaring to 2 kilometers and dwarfing Dubai’s 828-meter Burj Khalifa. Jeddah Tower, backed by billionaire Saudi Prince Alwaleed bin Talal, is back under construction after a seven-year pause. There’s no start date for the Riyadh building, but it is reportedly backed by the Public Investment Fund. While some (mainly Semafor’s Editor-in-Chief Ben Smith) dream of New York reclaiming the title, the ambition to build high now firmly belongs to the Gulf.

Marco Rubio assured his former colleagues in Congress that he can at least partially repair the wreckage of US foreign aid, according to one Senate Democrat.

Whether the secretary of state can make good on that is another matter — one that could determine how many Democratic friends he has left after a turbulent few weeks, Semafor’s Burgess Everett, Morgan Chalfant, and Shelby Talcott reported.