Gulf

1. Trump-Gulf ties
2. China’s Saudi footprint
3. ‘Project Transcendence’
4. UAE expat earnings
5. Drug-policy shift

Riyadh park recreates Paris, Asia’s floating markets, and US highways.

Gulf is ready for Trump 2.0

Donald Trump spent the last four years under legal — and twice, literal — fire in the US, and was shunned in Europe. Gulf leaders had the opposite approach. While many European countries are now scrambling for a reset with the president-elect, the Gulf is ready to pick up where Trump left off.

Personal and business ties have been strengthened since 2020. Saudi Arabia struck multi-billion dollar deals with the Trump family, and The Trump Organization licensed its brand to luxury development in the kingdom, Oman, and the UAE. Qatar’s ruler visited Mar-a-Lago in September. For his part, Trump aggressively courted Arab and Muslim voters in the US, and was the only candidate to grant an interview to an Arabic-language channel. The president-elect’s campaign messaging aligns with many Gulf priorities, from promising to end wars in Gaza and Ukraine, to keeping Iran in check.

Trump’s second term can also help bring Riyadh closer to Washington rather than see it drift to Beijing. In a July interview with Bloomberg, Trump praised Crown Prince Mohammed bin Salman, saying he’s a “very, very strong, good-looking guy” who “will be a great king.”

Chinese firms set up factories in Saudi

With opportunities dimming at home and eyeing an economic boom in Saudi Arabia, Chinese companies are building factories across industries in the kingdom. Bunyan, part of China’s Rongsheng Group, is set to open a steel plant near Riyadh to serve the construction market. The plant will make energy-efficient rebar and wire rods, and will be located in Al-Kharj Industrial City — which itself exemplifies Sino-Saudi collaboration: The 24-million-square-meter district southwest of Riyadh can accommodate around 500 factories, and has attracted significant Chinese investment.

Separately, a Chinese biotech firm is partnering with the Fakeeh family’s Al Tiryaq Al-Khalawi Medical Co. to produce affordable cancer and arthritis drugs, according to the South China Morning Post. The paper described the move as a trend of “mainland companies across a range of industries that are expanding offshore to survive the grueling competition at home.” Manufacturing is not the only display of improving ties: China will sell $2 billion in bonds in the kingdom next week.

Saudi’s AI plan to rival UAE

The amount Saudi Arabia is reportedly pouring into its latest play in artificial intelligence. AI as a sector is rife with rivalries and the Gulf is not immune: With the new entity, the kingdom is planning to take on competition from the UAE to recruit tech talent, build up data center infrastructure, and spur tech companies to invest, according to Bloomberg.

Code-named “Project Transcendence,” a new state-backed firm will be structured similarly to Alat, a co-investment fund focused on sustainable advanced manufacturing and also backed by $100 billion from the Public Investment Fund.

Meanwhile, Microsoft’s Brad Smith has been knocking around the UAE this week: First attending energy conference ADIPEC, then announcing an initiative with Dubai’s crown prince to train one million UAE residents in AI skills, and closing the week at a board meeting of Abu Dhabi’s G42.

New arrivals temper UAE wages

Call it a champagne problem. Lured by the expat lifestyle and a hiring boom in finance, law, and tech, a flood of new arrivals means wages are staying flat for white-collar workers in the UAE. Whether they be Londoners fleeing higher taxes, Singapore expats pinched by cost of living increases, or Hong Kongers wary of mainland China’s growing control, employers in Dubai and Abu Dhabi are spoiled for choice — and are offering lower salaries and fewer benefits as a result, according to Robert Half, a US-based recruitment consultancy. That has helped boost retention, but employers “must keep an eye on growing dissatisfaction and falling productivity,” Robert Half warned.

UAE’s new anti-drug strategy

The UAE has launched a new anti-drug strategy as the country — and the broader Gulf — contends with an influx of captagon, often called the “poor man’s cocaine.” This approach marks a shift from previous punitive measures, using both carrot and stick: Strengthening penalties against dealers and traffickers while establishing treatment and rehabilitation centers, according to Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum’s post on X.

Separately, French authorities are investigating suspected drug traffickers from Marseille who reportedly acquired luxury property in Dubai. Europe is dealing with a surge in cocaine trafficking, a drug which could be called the “rich man’s captagon.”

Checking in

• Strong travel demand pushed Emirates to a record profit in the first half of the year of $2.6 billion as it hiked overall passenger capacity for the period by 5%.
• Collabs are taking over the skies as increasing competition among Gulf carriers is forcing bold moves to distinguish in-flight experiences. There are crew outfits designed by Saudi couture designer Ashi for Riyadh Air; free Starlink Wi-Fi coming to Qatar Airways and now, Emirates has teamed up with Spotify to offer podcasts and playlists at 35,000 feet.
• A Saudi supercoast is taking shape. The kingdom’s top tourism brass launched the Saudi Red Sea development, a haven for superyachts, scuba diving, and luxury travel on 1,100 miles of pristine coastline, at the World Travel Market this week in London while regulators back home granted the first licenses to yacht tour operators.

Tech

• The Qatar Central Bank is taking steps to build up the country’s fintech sector, welcoming startup Wafir to experiment with microfinancing and informal lending circles in its regulatory sandbox, a kind of proving ground gaining traction among policymakers in the Gulf for attracting and testing new technologies.

Riyadh’s Boulevard City and Boulevard World are back, which anyone braving Prince Turki Road will quickly realize. While both theme parks are packed with activities, Boulevard World steals the show. The experience begins with a stroll through Saudi Arabia’s diverse regions, each division area showcasing local crafts, food, and architecture unique to its region.

Beyond the Saudi zones, it’s like a life-size choose-your-own-adventure: Shop for Damascene linens in the Levant; tuck into Thai food at a floating market; snap a selfie with a towering Grendizer in Tokyo; take a boat to a mini Eiffel Tower; or escape tombs of Cairo’s pyramids. The short roller coaster is worth the terror, with a view of “American wonders” — a highway and a police car.

These theme parks — about twice the size of Disney’s EPCOT — are part of Riyadh’s effort to make it more appealing and entertaining, and they hit the mark. Arrive early to avoid another Riyadh pastime: gridlock.

Donald Trump’s reelection as US president sets up a high-stakes test of whether the energy transition will grind to a halt, Semafor’s Tim McDonnell wrote.

The next four years will likely see the locus of climate action in the US revert to state and local governments, and to business leaders who remain under tremendous pressure.