Türkiye and Saudi Arabia have signed two preliminary agreements to foster cooperation in logistics and drive regional connectivity. 

The two memorandums of understanding signed by Saudi and Turkish transport ministers will facilitate the construction of logistics centres and encourage joint initiatives across all facets of the railway sector. 

Transport volumes between Türkiye and Saudi Arabia hovered around 20,000 prior to 2012. 

“Although we currently fall short of that figure due to regional developments, our goal is to take our cooperation beyond even that level,” state-owned Anadolu Agency quoted Turkish transport and infrastructure minister Abdulkadir Uraloglu as saying.

Türkiye plans to modernize the historic Hejaz Railway and extend it to Oman to create an alternative global trade route to the Strait of Hormuz as well as for tourism purposes, according to Uraloglu.

The Hejaz Railway was originally built between 1900 and 1908, stretching about 1,322 kilometers between Damascus in Syria and Medina in Saudi Arabia. It was later expanded to nearly 1,900 kilometers with additional lines. 

Türkiye inked agreements with Syria and Jordan in April to modernize their railway systems with the eventual aim to create a Southern Europe-Persian Gulf transport corridor. The network was expected to take four to five years to build, Turkish transport minister had said at the time.

The initial stage involves connecting Türkiye to Aleppo, utilizing the existing Aleppo-Damascus-Jordan network, passing through Saudi cities of Medina and Makkah, with Oman as its final destination. 

Türkiye and Saudi Arabia are monitoring developments on the Syria-Jordan-Iraq routes, Uraloglu said at the recent signing. “Two test runs starting from Türkiye through Iraq and extending to Saudi Arabia have clearly demonstrated the feasibility of this route."

The road project extending from Iraq’s Basra Gulf to the Turkish border is also underway, with its design phase complete. The corridor, which includes highways, railways, energy, and communication lines, will be realized through international funding in partnership with the UAE, Qatar, Iraq, and Türkiye, according to the media body. 

The construction of new and revival of old or damaged transport projects is key to establishing regional connectivity. Last month, Lebanon launched a tender process for a railway rehabilitation project linking the northern city of Tripoli with the Abboudiyeh area on the Lebanon-Syria border. 

Türkiye restored a strategic 350-kilometer railway along the Syrian border to freight traffic in April, after its first comprehensive rehabilitation in over a decade.  
 

Dubai's office market posted a sharp rise in activity in the first quarter of 2026, with transaction values more than tripling year-on-year to AED8.2 billion ($2.2 billion) across roughly 1,600 deals, even as regional tensions weighed on volumes in March.

Sales prices climbed nearly 25% year on year, and rents rose around 20%, driven in part by strong demand for off-plan offices, a segment that had barely registered before this year. Al Sufouh 1, Business Bay and Jumeirah Lakes Towers accounted for the bulk of activity, with the top five locations representing over 70% of all first-quarter transactions.

January and February drove the bulk of deal volumes, accounting for more than four-fifths of the quarter's activity. March saw a year-on-year dip of over 10%, with ready transactions falling by nearly two-thirds as regional tensions escalated following the outbreak of the Iran conflict on February 28.

Commercial real estate data for April and May shows transaction volumes broadly flat year on year at around 900, though prices continued to climb with the median rising by three-quarters to approximately AED3.2 million and the per-square-foot rate more than doubling to AED3,600.

Company formation figures point to sustained occupier demand. Dubai International Financial Centre registered 775 new companies in the first quarter, with March its strongest month, up nearly 60% year on year. Abu Dhabi Global Market reported a 5% year-on-year rise in company registrations in March.

Chinese electric vehicle maker BYD has suspended plans for a $1 billion factory in Turkiye, opting instead to expand production capacity in Hungary as EU tariffs make European manufacturing more cost-effective than importing from nearby markets.

The company has put on hold a proposed plant in the Aegean province of Manisa, announced in mid-2024 and intended to produce 150,000 electric and hybrid vehicles annually, with its first compact EV now set to come off a Hungarian assembly line by year-end.

The move deals a significant blow to Turkiye's automotive ambitions. "There would have been benefits for supply chains, jobs, research and development, battery production, side industries as well as AI, so many diverse contributions," said Anıl Şentürk, chair of the automotive committee at the Istanbul Chamber of Commerce. "This was a direct foreign investment, so its contribution would not only have been to the automotive sector but the country's economy itself."

The Manisa facility, when fully operational, would have employed 5,000 people, with most of its output destined for export. The project's suspension follows rising EU tariffs on imported electric and hybrid vehicles, which undermined the cost case for building in Turkiye rather than within the bloc. BYD is also in discussions to take on space at an existing plant in Germany.

The suspension carries additional risks for BYD in Turkiye. The Turkish government granted the company an exemption on most import tariffs in exchange for the investment commitment, an arrangement that helped BYD capture a 24% share of EV and hybrid sales in the country last year. Halting or cancelling the Manisa plant could expose the company to legal action and the loss of those trade advantages.

"If the decision is final, BYD is most likely to be stripped of their advantages in the local market and potentially lose this market to other Chinese competitors or European models," Şentürk said.

BYD has not ruled out returning to Turkey at a later date.

Banks across the Middle East & Africa lack artificial intelligence specialists required to industrialize the technology across institutions, a new study has identified.

Talent remains the core deterrent to scaling AI initiatives across MEA banks, as the region continues to face relevant personnel shortages, the Evident AI MEA Index report has revealed.

UAE lenders have emerged as best performing banks in Evident’s AI index for banks - MEA, assessing 25 of the largest Middle Eastern and African banks on the quality of their talent stacks, their innovation efforts, the tech leadership of their top executives and the guardrails they’ve set up to govern AI effectively.

UAE-based Emirates NBD leads all banks in the Middle East and Africa on AI maturity, edging out local peer First Abu Dhabi bank, the UAE’s largest bank by assets, which ranked third.

South Africa's Standard Bank Group and Nedbank Group, which ranked second and fourth respectively, have prioritized customer preferences and behaviours in their AI deployment.

Emirati and South African lenders dominating the index have emphasized high-impact processes such as payment processing, onboarding, risk analytics and customer advisory.

Emirates NBD has hasnt concentrated as many resource on R&D or experimentation as other lenders and instead has opted for deployment and scale. The lender has more AI staff focused on software implementation and product management – roles critical to connecting AI to business goals – than any other bank ranked, and has reported tangible results - over 98,000 AI-enabled interviews helped save 13,000 recruiter hours and around $400,000.

First Abu Dhabi Bank has focused on scaled enterprise deployment, having automated 50% of its cross-border payments, while AI advisors have helped increase revenue per relationship manager by 30%.

Saudi Arabia’s Al Rajhi (#9), Dubai-based Mashreq Bank (#10), Abu Dhabi Commercial Bank (#12), Qatar National Bank (#16), National Bank of Kuwait (#18) and Dubai Islamic Bank (#21) made it to the index.  

Yet a dearth of specialist AI personnel is limiting the technology’s proliferation, forcing banks to rely heavily on imported expertise. MEA banks employ an average of 300+ AI professionals, compared to a global benchmark of more than 1,750.

Within MEA, AI development staff account for 0.49% of the overall employee base. Not only is the density of regional talent pools significantly below the global benchmark of 0.9%, but they are also unevenly distributed, higher in South Africa (0.95%) and much lower in the UAE (0.29%), Kuwait (0.29%) and Saudi Arabia (0.16%).

Furthermore, MEA banks are increasingly exposed to the global AI talent squeeze, the report said, “compounded by geopolitical instability and structural labour market pressures”.

Most banks invest in AI training programs, but these are not at parity and lag behind global standards.

“Beyond employee training, banks are actively responding to AI talent constraints through internal capability-building efforts that include executive education programs, internal AI events, and targeted graduate or internship pathways. At present, such investments remain uneven and fragmented across the cohort,” the study added.

The World Economic Forum estimates that AI investments across banking, insurance, capital markets and payment businesses will reach $97 billion by 2027.

Egypt has signed a $1.5 billion annual financing agreement with the International Islamic Trade Finance Corporation (ITFC) to fund imports of essential food commodities and petroleum products.

Under the 2026 Annual Work Program, the Egyptian General Petroleum Corporation (EGPC) will receive $800 million, while the General Authority for Supply Commodities (GASC), which manages state food procurement, will receive $700 million.

Planning and Economic Development Minister Ahmed Rostom said the agreement reinforced Egypt's ability to secure basic goods at a time of economic pressure.  He added that the ITFC is a strategic development partner for Egypt that supports the country in providing basic food commodities and petroleum products, backing food and energy security, particularly amid current economic challenges and global instability.

The deal extends a relationship dating to 2008, under which Egypt and the ITFC have signed five framework agreements worth a combined $24 billion. The current framework, first agreed in 2018 and renewed in 2022 for a further five years, covers financing across multiple development sectors as well as trade development, technical assistance, and capacity-building in export-related fields.

Mubadala Investment Company has committed $325 million to the Hornsea 3 offshore wind project in the United Kingdom, as part of its strategy to expand investments in global infrastructure and energy transition assets.

The investment is being made through a consortium led by funds managed by Apollo Global Management, following the firm’s acquisition of a 50% stake in the joint venture that owns the project.

Developed by Ørsted, which will retain the remaining 50% stake and continue to lead construction and operations, Hornsea 3 is located off the UK’s eastern coast in the North Sea.

Karim El Jazzar, head of EMEA infrastructure at Mubadala, said the investment reflects the company’s approach of partnering with established operators to back large-scale infrastructure projects that support the energy transition.

Hornsea 3 is expected to generate 2.9 gigawatts (GW) of electricity, with the capacity to power more than 3.3 million homes. The project forms part of the United Kingdom’s broader plan to expand offshore wind capacity to up to 50GW by 2030 as it works toward net-zero emissions targets.

Rising electricity demand, driven by electrification across transport, heating and digital infrastructure, is expected to support long-term growth in the sector.

The investment adds to Mubadala’s portfolio of renewable energy assets, which includes stakes in companies such as Tata Power Renewables, Skyborn Renewables, PAG Renewables and Rezolv Energy.

Earlier this month, Mubadala also acquired a minority stake in Power Factors to support its global expansion.

The sovereign wealth fund, which manages assets of around $385 billion, continues to expand its presence across infrastructure and energy sectors as part of a diversified global investment strategy.

The Islamic Development Bank (IsDB) Group President, Muhammad Al Jasser, is visiting Azerbaijan from today to 8, as part of preparations for the IsDB Group Annual Meetings scheduled in Baku next month.

The visit comes ahead of the Annual Meetings, set to take place from June 16 to 19, 2026, under the theme “Regional Integration for Sustainable Prosperity,” and is aimed at strengthening cooperation between the IsDB Group and Azerbaijan.

During the trip, Al Jasser is expected to meet senior government officials and hold discussions on ongoing and future development initiatives.

The programme also includes visits to key development sites, such as the Alat Free Economic Zone, Aghdam Industrial Park, Garabagh University and education facilities in Fuzuli, reflecting a focus on economic and social development projects.

According to the IsDB, the visit is intended to deepen its partnership with Azerbaijan and support preparations for the upcoming Annual Meetings, which will bring together policymakers and development stakeholders from member countries.

Saudi Arabia’s real gross domestic product increased 2.8% year-on-year in the first quarter, according to flash government estimates issued on Thursday. 

Non-oil activities rose 2.8% while oil-related activities grew 2.3% year-on-year, data by the General Authority for Statistics (GASTAT) suggested. 

However, seasonally adjusted real GDP for the first quarter decreased 1.5% on the previous quarter, driven by a 7.2% decline in oil activities, as the implications of the Iran-US war come into play. Government and non-oil activities grew 0.8% and 0.2% respectively. 

“Oil activities were the main contributor to the decline in seasonally adjusted real GDP, -1.7 (percentage points). Non-oil activities and government activities each contributed 0.1 (percentage points),” the report added. 

Gulf oil exporters directly affected by the war face steep downward revisions of up to 15 percentage points this year. The International Monetary Fund has lowered its GDP growth prediction for the kingdom for this year and next. 

The Saudi economy is now expected to expand 3.1 percent this year, down 0.9 percent from the IMF’s last review in October, and 4.5 percent in 2027, up 1.3% from its October’s forecast. 

On balance, Saudi Arabia is assessed to be less sensitive to price increase versus decline in volumes compared to other GCC economies such as Kuwait, the fund said in its latest review. Hence, a 10% increase in oil prices or a 10% decline in export volumes will impact the current account by slightly more than 1 percentage point.

Saudi Arabia activated its East-West Crude Pipeline at full capacity for the first time in its 40-year history in the wake of the US-Iran conflict. The petroline - that runs 1,201 kilometres connecting the Abqaiq oil field in the eastern province to Yanbu on the Red Sea coast, was built during the Iran-Iraq war in the 1980s. 

Saudi Aramco confirmed last March that it had increased the pipeline’s capacity to seven million barrels a day. Exactly a year later, the petroline reached its full operational capacity. 
 

The United Arab Emirates will leave OPEC next month, its government said on Tuesday, ending decades of membership as it seeks greater flexibility to increase oil production during a period of geopolitical tension and market disruption linked to the Iran conflict.

The UAE, a member of the group since 1967 through Abu Dhabi, said the decision aligns with its long-term economic strategy and plans to expand energy investment. The move comes as oil markets face volatility and supply constraints, including disruptions to shipments through the Strait of Hormuz, a key transit route for global energy supplies.

“The U.A.E.’s decision to exit from OPEC reflects a policy-driven evolution aligned with long-term market fundamentals,” Energy Minister Suhail al-Mazrouei said in a social media post. “We thank OPEC and its member countries for decades of constructive cooperation.”

In a statement published by WAM, the government said leaving the group would provide greater “flexibility” and support its “long-term strategic and economic vision.” Officials added that constraints on shipping through the Strait of Hormuz mean the immediate market impact of the decision is likely to be limited.

The departure is expected to take effect on Friday and includes withdrawal from both OPEC and its wider alliance, OPEC+. The move reduces the group’s production capacity at a time when it has been managing supply to stabilise prices.

Before the current conflict, the UAE was producing about 3.6 million barrels of oil per day, accounting for roughly 12% of OPEC’s output, according to the International Energy Agency. Analysts say its exit could weaken the group’s ability to influence global markets over time.

Oil prices have risen sharply since the escalation of the Iran conflict, with Brent crude reaching as high as $119.50 a barrel. Prices were up 3.4%  on Tuesday at around $111.67.

The decision also highlights growing differences between the UAE and Saudi Arabia, OPEC’s leading member. The two countries have diverged on regional strategy and energy policy in recent years.

Tensions have intensified during the conflict with Iran. The UAE has faced repeated missile and drone attacks and has voiced dissatisfaction with the response from regional organisations. 

The UAE’s exit also aligns with broader criticism of OPEC from Donald Trump, who has accused the group of inflating oil prices and linked US security support for Gulf states to energy costs.

Despite leaving the group, UAE officials said the country would continue to increase production gradually, in line with demand and market conditions.