It looks like Donald Trump will get the Qatari Boeing 747 he wants after all.

The Pentagon gave the green light on Wednesday to the Qatari government’s offer to provide the plane – estimated to be worth between $200 million and $400 million – as a gift to replace two aging planes that currently serve as Air Force One.

The plane will require as much as $1 billion and several years of work to provide the level of communications and defense capabilities necessary to function as the flying White House required for presidential travel, The New York Times reports.

Democrats have assailed the plan as a conflict of interest, suggesting Qatar expects political favors in return for the gift.

“The Secretary of Defense has accepted a Boeing 747 from Qatar in accordance with all federal rules and regulations,” Pentagon spokesman Sean Parnell said.

Amid the influx of private equity firms to the Gulf’s financial capitals, the head of Kuwait’s $1 trillion sovereign wealth fund says the industry must be handled with caution.

Speaking at the Qatar Economic Forum in Doha Wednesday, Sheikh Saoud Salem Al-Sabah, Managing Director of the Kuwait Investment Authority, warned that some international money managers are struggling to return funds to investors because of inflated valuations.

“Private equity is very troubled, I believe, especially in the large buyouts, venture capital and the rise of continuation vehicles,” Sheikh Saoud said in a panel discussion on the second day of the three-day conference. “That’s a very worrying sign.”

The KIA is the second largest sovereign wealth fund in the Gulf, trailing the Abu Dhabi Investment Authority and slightly ahead of Saudi Arabia’s Public Investment Fund.

The region’s six biggest funds oversee assets of about $4 trillion, and many of them have historically been significant backers of private equity firms, according to Bloomberg, the chief media partner for the annual Doha summit, which is underwritten by the Qatari government.

Also speaking at the conference today was Steven Mnuchin, the former U.S. Treasury Secretary and present Managing Partner of Liberty Strategic Capital, who counseled patience in trade negotiations with China.

“If the U.S. can level the playing field and get better access for the country’s businesses in China, the opportunity is massive,” he said.

Days after U.S. President Donald Trump returned to Washington from a trip that took him to Saudi Arabia, Qatar and the UAE, his son Donald Trump Jr. appeared at the Doha conference and said The Trump Organization won’t “do direct deals” with foreign government entities.

While his father has been criticized for entertaining an offer from the government of Qatar to receive a $400 million Boeing 747 plane as a gift to replace Air Force One, the younger Trump said the family business is being cautious about its international connections. 

“We’re going to play by the rules and it’s as simple as that,” he said.

Abu Dhabi’s Technology Innovation Institute has launched Falcon Arabic, a powerful new Arabic-based large language model, as the UAE vies to stay in the consumer AI race.

The new LLM is trained across both Modern Standard Arabic and dialects, and TII claims that it matches the performance of models up to 10 times its size, Bloomberg reports.

The U.S. and China are increasingly dominating the competition to develop the world’s most powerful AI models, leaving countries like the UAE fighting to keep up.

Earlier this month, it was reported that TII’s flagship Falcon model had fallen behind in the rankings and user adoption, while G42, which backed another system called Jais, had shifted focus to customizing models from companies like OpenAI instead of developing its own.

Oman has launched two smart city projects as part of its efforts to cut carbon emissions and diversify its economy.

The first city, for 10,000 residents, will be built in the mountain region of Jebel Akhdar, while the second, Thuraya City in Muscat, will house 8,000 people, Arabian Gulf Business Insights reports.

Both cities will rely on renewable energy, including solar power, and will be used to promote Oman’s carbon-free environment plans, the Ministry of Housing and Urban Planning said.

The announcement comes a week after the Sultanate launched the Oman Centre for Net Zero. Like other Gulf countries, Oman has been ramping up investment in green infrastructure to diversify its economy beyond oil and gas.

The push for smart cities also reflects the country’s commitment to attracting foreign investment and creating livable, future-ready urban environments.

While cruise ships teem with Middle East travelers heading to the Greek Islands, Hong Kong and the Caribbean, Lakshmi Durai is trying to introduce more people to shorter luxury trips sailing between the Gulf states and along the Red Sea.

As founder and CEO of CruiseXplore, an internet booking platform that fills cabins for some two dozen cruise lines, including Carnival, Norwegian and Disney, Durai has lately teamed up on the mini-holidays with Aroya Cruises, which is backed by Saudi Arabia’s Public Investment Fund.

“This is a very high-potential market,” Durai, a 30-year veteran of the industry, told The Circuit during this month’s annual Arabian Travel Market exhibition in Dubai. “It’s an easy way for people to experience cruising for the first time.”

Jeddah-based Aroya opened for business just two years ago and runs a variety of cruises to nearby ports of call including Egypt’s Sharm el-Sheikh, the Jordanian resort city of Aqaba and Jabal Al Sabaya Island in the Red Sea. Its sole 18-deck ship has more than 1,600 cabins, along with swimming pools, spas, restaurants and a no-alcohol policy.

Cruise revenue in the Middle East and Africa is projected to grow some 60% over the next five years to $230 million, according to Horizon Grand View Research. That’s a minuscule 1.6% of the global market, which an optimistic Durai sees as providing even more room to grow.

The interview has been edited for length and clarity.

What sets CruiseXplore apart from other international players?
We are a cruise consolidator working with over 30 cruise brands. Each brand might have 10 to 20 ships, sailing from more than 300 destinations worldwide. Our team includes experienced cruise professionals, so we really know the market.

Cruising isn’t one-size-fits-all. There are family cruises, couples cruises, destination-focused cruises, and luxury cruises – each with unique features. Our job is to match the right cruise to the right guest, based on their style of vacationing. We don’t just sell cruises; we sell the experience.

How do you decide which cruise lines to partner with?

Every cruise line is beautiful in its own way. We don’t categorize any cruise line as better or worse. It’s about understanding the product – what it offers, who it targets, and what kind of people it attracts. If a cruise line operates professionally, we are open to working with it. We’re here to sell anything that sails on water!

What cruise destinations are most popular with your customers?

Globally, cruises operate in the Mediterranean, Northern Europe, the Caribbean, Alaska, Australia and even unique places like the Arctic, Antarctica, and the Amazon. But for this region, European cruises are very popular due to proximity and ease of travel.

First-timers often choose Mediterranean routes – Spain, Rome, France, Greek Islands, and Turkey – because of the history and scenic coastlines. Others who prefer cooler climates opt for Northern Europe, especially Norway and its fjords. Those cruises are getting very popular.

What about Saudi Arabia? Is the Red Sea becoming a cruise destination?

Saudi Arabia launched its own cruise line, Aroya Cruises, last year. It’s a beautiful ship that operates in the Red Sea. Aroya is the only GCC-based cruise brand, but we work with over 30 international cruise lines. MSC, Costa, and others also operate in the region, sailing into GCC ports.

What are the industry trends that look promising for the Gulf region?

Local cruising is becoming quite popular – it’s an easy way for people to experience cruising for the first time. Still, a large portion of the Middle Eastern population hasn’t been on a cruise, so this is a very high-potential market.

Having local cruises means people can try it without flying abroad. It helps raise awareness and builds confidence for them to book international cruises later. And for visitors, cruising makes it easy to visit multiple countries – Oman, Bahrain, Qatar – without needing to arrange separate flights or accommodations.

What investments does the Middle East cruise industry need?

More ports and attractive destinations. The GCC countries have already made great improvements in infrastructure, but the more ports of call we have, the more appealing the region becomes for cruise tourism.

Can you tell me how the industry has changed since you started in the 1990s?

I actually started in 1994, so it’s been 30 years. I was very young then! I came to Dubai that year and joined the cruise industry right away. I gradually moved up the ranks and started managing cruise brand representations as a director. After 20 years, I decided it was time to do something on my own, and that’s when we launched CruiseXplore in 2014. We just completed 10 years.

Back then, cruising was a very new concept in the region. We had to explain to people what a cruise was, and there were a lot of misconceptions. There weren’t even ships docking in the Middle East. That changed around 2008-2009 when major cruise lines like Royal Caribbean and Costa started operating here. People began to see ships in local waters, and awareness increased. Today, thanks to the internet, cruising is becoming very popular.

After committing more than $2.7 trillion in U.S. investments over the next decade while President Donald Trump toured the region last week, Gulf financial leaders are starting to connect the dots on what that will mean for their economies.

Analysis of the Trump trip was center stage today at the Qatar Economic Forum, where cabinet ministers and investors dissected last week’s events in Doha, Riyadh and Abu Dhabi – from U.S. tariffs and gas prices to Qatari airplanes.

Qatar Investment Authority CEO Mohammed Al Sowaidi, said the sovereign wealth fund expects to at least double its spending in the U.S. compared to the past five or six years.

“We believe in the growth and robustness of the U.S. system,” Al Sowaidi said during the first day of the three-day conference.

The QIA chief said last week that Qatar would invest an additional $500 billion in the U.S. over the next 10 years, focusing on artificial intelligence, data centers and health care, according to Bloomberg, the chief media partner for the conference which was underwritten by the Qatari government.

Earlier, Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al-Thani defended the government’s decision to give the U.S. a Boeing 747 jumbo jet to replace the 40-year-old Air Force One aircraft that has been the subject of Trump’s complaints.

“I don’t know why people consider it as bribery or Qatar trying to buy influence with this administration,” he told the forum, calling it a routine transaction between nations. “We need to overcome this stereotype.”

Egypt’s Morpho Investments is betting on Saudi Arabia as a promising environment for cultivating blackberries, raspberries and other fruits, despite its desert soils and blazing sun.

The new private equity firm founded by Ayman Soliman, former CEO of Egypt’s sovereign wealth fund, has raised $55 million to fund initiatives in agriculture and healthcare that include the berry-farming project, Bloomberg reports.

Some of the capital has gone to specialist company Agriventures to help secure an exclusive license to grow, sell and market berries in Saudi Arabia and Oman.

Saudi farmers use drip irrigation and hydroponics to overcome the climate’s challenging conditions. Saudi Arabia has set a goal to localize 85% of its food industry by 2030, while Oman recently unveiled a multibillion-dollar plan to develop three agricultural cities.

Mubadala is consolidating its pharmaceutical interests into a new investment unit aimed at making the Abu Dhabi sovereign wealth fund a stronger player in the international health care market.

Mubadala Bio will focus on drugmaking, biopharma development and distribution logistics, operating at 10 locations in Asia, Africa and Europe, with its base in the UAE, the company said in a statement issued today.

Dr. Bakheet Al Katheeri, CEO of Mubadala’s UAE Investments Platform, said the new unit will “elevate Abu Dhabi’s role in delivering impactful health solutions on a global scale.”

Serving more than 100 countries, Mubadala Bio said its cumulative manufacturing capacity will exceed 2.5 billion pills and capsules, enabling its portfolio companies to make more than 10,000 products.