UAE amplifies AI presence by securing data center agreement with Serbia
In the dynamic world of the Gulf, recent events have seen a flurry of activity in the realms of business, politics, and diplomacy.
Big Western franchises like KFC and Starbucks have faced challenges in the region, as customer boycotts tied to Israel's conflict in Gaza have impacted their operations. Meanwhile, local businesses are making their mark, with Dubai-headquartered Majid Al Futtaim announcing the closure of Carrefour outlets in Bahrain and Kuwait, to be replaced by its own chain, HyperMax.
Saudi Arabia, a key player in the region, has been strengthening its ties. It has signed a formal mutual defense pact with Pakistan, a move that sends a clear message that Saudi Arabia has options beyond the US. This pact, which comes amid deepening doubts over US security commitments in the Gulf, was timed to coincide with an Arab-Islamic summit in Doha, where Gulf leaders offered notable support to Qatar after an Israeli attack on a Hamas compound in the country.
Qatar's sovereign wealth fund has also been active, investing $500 million for a 4% stake in Canada's Ivanhoe Mines. This company, with projects in the Democratic Republic of Congo and South Africa, will fund the exploration and development of mines for metals critical for the energy transition and data centers, including copper, palladium, nickel, and zinc.
The UAE's technology group e& enterprise is also expanding internationally, having inked digital infrastructure deals in France, Greece, and Italy. The group has also partnered with Serbia to triple its data center capacity to 40 megawatts. The connection between the Serbian government and e& enterprise was established by an official agreement, although the specific details of who facilitated this connection and where the agreement was signed are not yet clear.
Elsewhere, the UAE's technology group, along with Mubadala Investment Co., has explored data center projects in Hungary. Saudi Arabia and Pakistan, with their deep military ties, have also boosted intelligence sharing and military cooperation, as evidenced by the Saudi-Pakistan defense pact.
A significant development in the region also involved a tribunal in London adjudicating a case against Luxembourg-based Banque Havilland, accused of pitching a plan to UAE officials to destabilize the Qatari riyal in 2017. Spoofed trades, possibly resulting from this plan, briefly pushed the Qatari riyal off its peg.
In summary, the Gulf region is witnessing a period of significant change, with local businesses expanding, international partnerships being forged, and geopolitical alliances being strengthened. These developments underscore the region's growing influence and its ability to navigate complex global issues.
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