Arabian Gulf Business Insight (AGBI)

Supply chains ease price pressure Saudi and Kuwaiti costs elevated No broad inflation shock expected UAE businesses are seeing inflationary pressures ease faster than their counterparts in Saudi Arabia and Kuwait, as resilient supply chains and access to imports cushion the economic fallout from the Iran war. Input-cost inflation among UAE companies fell in August to its lowest since February, according to S&P Global surveys of purchasing managers.

I’m a journalist, and I use AI. There. I’ve said it. I have been wrestling with this confession for some time, rather like an alcoholic wondering whether he is quite ready to stand up at the meeting and admit what everybody else has probably worked out already. I use AI for research. I use it to check facts and calculations, interrogate arguments, suggest questions and untangle transcripts. I sometimes ask it whether a sentence I have become rather fond of is actually any good.

$15bn of AI business announced at Leap GCC must move to commercial phase ‘Application side’ will drive AI economy Gulf countries need to turn their huge investment in AI infrastructure into homegrown products that put the fast-growing technology to commercial use, according to a major new study.

Egypt and China have agreed to launch the third phase of their industrial area in the Suez Canal Economic Zone as the North African nation seeks to attract more overseas investments. The expansion of the Egyptian-Chinese industrial zone was announced by President Abdel Fattah El-Sisi and Chinese President Xi Jinping, according to an Egyptian cabinet statement, during Xi’s first visit to Egypt in a decade.

China’s automaker Rox Motors has started electric vehicle (EV) production in Abu Dhabi and plans to unveil its first UAE-designed car in March next year. The first three Rox Adamas vehicles carrying the “Made in the Emirates” tag have rolled off the production line at the Khalifa Economic Zones Abu Dhabi (Kezad), the company said in a statement.

Egypt plans to raise $3 billion through international bond issuances in the 2026-27 financial year, after strong demand from global investors. The issuances will include conventional and innovative bonds, as well as credit-guaranteed Panda bonds, depending on investor demand and market conditions, the cabinet said. The finance ministry raised $4 billion across four issuances in the 2025-26 financial year, with an average term of two to six years.

Oil prices rose in early Friday trading after the US ruled out talks with Iran until it stops shooting at vessels in the Strait of Hormuz. Brent crude futures rose 0.3 percent to $95.77 a barrel at 02:30 GMT, while US West Texas Intermediate crude futures gained 0.5 percent to $91.71. US vice president JD Vance said on Thursday that Washington is not willing to talk to Tehran unless attacks on commercial shipping in the Strait of Hormuz cease.

A $7 billion plan to build three theme parks inspired by Japanese comics and graphic novels in a town northwest of Paris may seem an unlikely expression of Saudi Arabia’s economic diversification strategy. The development of the manga-based parks at Cergy-Pontoise, which will span more than 500,000 square metres and are due to open in 2032, brings together two of Saudi Arabia’s increasingly important interests: theme parks and gaming.

Omani crude up 10% in H1 2026 Gas revenues increased 31% Government debt almost unchanged Rising oil prices since the start of the Iran war have helped Oman almost eliminate its annual budget deficit, and the government forecasts it to shrink further if the conflict persists. The windfall comes as spending on ministries, defence and subsidies increases, complicating government efforts to reduce debt.

Gross credit up 18% from last year Progress is ‘super strong and resilient’ Foreign loans rise 38% year on year UAE bank lending is growing at almost three times the pace of other Gulf countries thanks to a rapid expansion in lenders’ foreign loan books and a surge in domestic public sector borrowing. Emirati banks have revised their full-year credit forecasts and non-performing loan ratios are flat-to-lower, despite widespread economic disruption relating to the Iran conflict.