Gulf

1. Iran puts Gulf on notice
2. Doctor reveals royal secrets
3. Gulf rail gathers steam
4. Kuwait doldrums
5. UAE powers up chips

Boxing champs, tennis superstars, and Busta Rhymes

Iran warns Gulf over Israeli strikes

Behind the smiles on display during the Iranian foreign minister’s meetings in Riyadh and Doha this week was a reported warning: Tehran will retaliate if Gulf states facilitate Israeli attacks. The Wall Street Journal, citing unnamed Arab officials, said that Iran specifically named Jordan, the UAE, Saudi Arabia, and Qatar — all of which host US forces — as potential targets. These countries told Washington “they don’t want their military infrastructure or airspace” involved in offensive operations against Iran. The US has bases and forces throughout the region, and has boosted its presence in recent months to deter Tehran.

While Iran’s threats were vague, Gulf states remain on high alert due to past successful attacks on their energy facilities and vital infrastructure. As the region braces for Israel’s response to Iran’s recent missile attack, analysts warn of potential miscalculations that could escalate the situation. Oil prices are set for a second weekly gain amid concerns of supply disruptions.

Saudi princesses: captive and drugged

The late Saudi king’s private family doctor divulged damning details about the lives of four captive princesses to The New Yorker. From his Texas retirement home, Dwight Burdick described his seven-year role in regularly sedating King Abdullah’s daughters Hala, Sahar, Maha, and Jawaher, who were confined to a Jeddah villa for nearly 20 years after their mother absconded to London. Burdick spoke out after learning of Hala’s death in her mid-40s in 2021, followed by Maha’s six months later (Jawaher and Sahar’s whereabouts are unknown).

The New Yorker said the Saudi government declined to respond to its inquiries about the princesses.

The women were reportedly dosed with a combination of Valium, Ativan, Xanax, and Ambien, and plied with alcohol and drugs. “They’re chemically immobilizing them,” he said, admitting he “set aside” his ethics with the intention to “learn more about the difficult situation these young ladies faced.”

Oman-UAE railway secures funds

The long-touted Gulf rail link is finally becoming a reality. Hafeet Rail secured $1.5 billion in loans to build a network connecting five ports and industrial zones across Oman and the UAE, spanning 238 kilometers, or about 150 miles. Backed by Etihad Rail, Mubadala, and Oman’s Asyad Group, the $2.5-billion project will include 60 bridges and tunnels, each stretching as long as 2.5 kilometers. The network will reduce the nearly three-hour drive between Abu Dhabi and Sohar in Oman to a 100-minute train journey. Passenger trains will move up to 400 people, while freight trains will improve the transport of mining, agricultural, and petrochemical cargo.

Separately, Saudi Arabia will begin work on its $7 billion Saudi Landbridge project next year, MEED reported, building and upgrading six railway lines in the kingdom.

Kuwait struggles to revive economy

Kuwait’s economy will contract for the second consecutive year as OPEC+ oil output cuts weigh on the economy. The International Monetary Fund said non-oil GDP is expected to grow 1.3% in 2024. Despite the contraction, Kuwait will again post a current account surplus.

The IMF expects growth to resume in 2025, as long as oil exports rise and government inertia ends: Kuwait’s ruler suspended parts of the constitution in May for up to four years to expedite reforms and break political gridlock. The fund said the country’s long-term stability will depend on implementing critical fiscal and structural reforms — like capping government employment, phasing out domestic energy subsidies, and permitting foreign ownership of businesses.

G42 deploys Nvidia’s AI chips in the UAE

Core42, a unit of Abu Dhabi AI firm G42, has deployed Nvidia’s cutting-edge H100 AI chips in UAE data centers and said it plans to add the H200s, which are up to twice as fast. Securing Nvidia’s most advanced chips and owning AI infrastructure are critical steps for the UAE in its push to have a global role in advanced technologies.

Separately, California-based AI chipmaker Cerebras is delaying its IPO over a national security review of G42’s minority investment in the company, Reuters reported. G42’s commercial partnership with Cerebras has been key to its expansion in the US, where Core42 has launched several supercomputer clusters dubbed “Condor Galaxy.”

On this week’s episode of  Mixed Signals  from Semafor Media, Ben and Nayeema take on the critique of bias in the media — a conversation that always seems timely, but especially so right now, weeks away from a US election and with an expanding conflict in the Middle East. To help make sense of what we see as media bias and the moral questions that journalists have to grapple with every day, they bring on James Bennet, who has been at the center of the thorny conversation around bias and the Middle East since his tenure as the Jerusalem Bureau Chief at The New York Times. He continued to be at the fulcrum of this discourse when he was forced to resign as the Times editorial page editor during a heated moment at the publication in 2020.

Listen to the latest episode of Mixed Signals now.

Deals

• Abu Dhabi sovereign wealth fund Lunate is mulling a potential $1 billion or more deal with major US lender HPS. Potential suitors, including BlackRock, are considering preempting the IPO of the private credit firm, expected to be valued at over $10 billion. — Bloomberg

Stocks

• Qatar is poised to get its 53rd listed company. Gulf International Services — a public holding company that operates insurance, drilling, helicopter transportation, and a catering business — plans to spin off Al Koot Insurance and list it on the Qatar Stock Exchange.

Diplomacy

• Saudi Arabia was the only country to lose its bid for a seat on the UN Human Rights Council after an activist campaign prevailed. The 193-member General Assembly elected 18 new members, including Qatar, to serve on the 47-nation council, which is often-criticized but tasked with investigating alleged human rights abuses. — AP

Apps

• Chinese food delivery giant Meituan launched its localized app, KeeTa, in Riyadh. There were more than 200 million deliveries completed on apps in the kingdom in 2023, according to Al Eqtisadiah.

Riyadh Season is hard to describe — think of South by Southwest meets the Olympics. The months-long series of concerts, sports, and cultural events runs from tomorrow all the way until March, taking advantage of Saudi Arabia’s best weather.

Kicking off the season is a boxing match between two undefeated light heavyweight champions, Dmitry Bivol and Artur Beterbiev, along with performances by iconic artists Busta Rhymes, Missy Elliott, and Ciara. The Kingdom Arena venue, expanded to seat over 27,000, is one of 14 designated zones hosting events such as the Six Kings Slam tennis competition, the African Super Cup, and a fashion extravaganza called “1001 Seasons of Elie Saab.”

Riyadh Season recently signed a three-year sponsorship with Spain’s La Liga, aiming to attract more eyeballs — and, the Saudis hope, tourists — to the spectacle.

• Hurricanes’ multibillion-dollar insurance bill presents a ‘reckoning’ for US lawmakers, businesses.
• Cameroon won’t say where the president is.
• Fed’s 2% inflation target is ‘sacrosanct’ — and here.