Saudi Arabia plans to begin construction within two to three months of a giant AI data center that’s part of its NEOM megaproject.

DataVolt, the data center’s developer, is lining up customers for the first phase of the 1.5-gigawatt AI venture, which is backed by an initial $5 billion investment and targeted to begin operations in 2028, CEO Rajit Nanda tells Arabian Gulf Business Insight.

The installation at Oxagon, NEOM’s port and industrial hub on the Red Sea, is designed as an “AI factory,” pairing massive computing power with renewable energy, cooling systems and high-speed connectivity, Nanda said.

The massive AI data center is part of a reset for NEOM as Saudi Arabia grapples with budget deficits caused by volatile oil prices and directs spending toward projects with clearer commercial returns. 

That has meant scaling back The Line, the planned 170-kilometer (105-mile) linear city projected to cost more than $1 trillion, and delaying Trojena, the $38 billion mountain resort that was forced to give up hosting the 2029 Asian Winter Games because construction fell behind schedule.

Turkey is positioning itself as a new wealth hub between Europe and the Middle East, unveiling tax incentives to attract wealthy expats and overseas investors amid instability in the Gulf and London.

The measures include reduced inheritance taxes, exemptions on overseas income for up to 20 years and an amnesty programme for undeclared foreign assets, echoing incentives previously offered by the U.K., Bloomberg reports.

Turkey’s push comes as the government seeks to strengthen its financial credentials after years of inflation, currency volatility and political uncertainty, while Gulf nations face renewed questions over regional security risks.

Officials say Turkey aims to become a global center for investment and capital management, though analysts note it remains unclear how many wealthy individuals will choose it over established destinations in the Gulf and Europe.

Saudi Aramco posted a 33% jump in second-quarter profit as the war in Iran sent energy prices soaring and the world’s biggest oil company kept exports flowing despite the closure of the Strait of Hormuz.

The company said attacks on key oil infrastructure in July had no material impact on its operations or financial results, with exports maintained through Saudi Arabia’s East-West Pipeline, storage facilities and Red Sea terminals.

Aramco’s remarks on the July attacks were the first time it acknowledged the assault after Yemen’s Houthi rebels claimed strikes on Saudi oil sites and the kingdom intercepted drones launched from Iraq, Bloomberg reports.

The company said it is continuing to maximize exports of diesel, jet fuel and other refined products from its Red Sea refineries, where margins have remained strong even after crude prices retreated following the U.S.-Iran ceasefire.

Meanwhile, the UAE cut its reliance on the Strait of Hormuz in July, reducing oil exports through the waterway by 53% to 950,000 barrels a day while shifting more shipments to Fujairah via its 1.5 million-barrel-a-day bypass pipeline, The National reports. Exports fell nearly 20% to 3.5 million barrels a day.

Mubadala plans to devote about $170 billion to U.S. interests, roughly 44% of its portfolio, spanning AI and healthcare to energy and advanced manufacturing.

The strategy was at the center of discussions during a Milken Institute forum last week, held alongside the Mubadala D.C. Open, the UAE sovereign wealth fund’s annual ATP 500/WTA 500 tournament in Washington, D.C.

“For Mubadala, the U.S. is our most strategic and attractive investment market,” said Ahmed Saeed Al Calily, Mubadala’s Chief Strategy & Risk Officer.

Among the participants were seven-time Grand Slam singles champion Venus Williams, Washington D.C. Mayor Muriel Bowser, Will Ahmed, Co-Founder and CEO of Whoop; Sen. Mike Rounds (R-South Dakota); Michael Kratsios, Director of the White House Office of Science and Technology Policy; and Richard Ditizio, CEO of the Milken Institute.

The tennis tournament was scheduled to wrap up on Monday after play was suspended due to thunderstorms. Third-seeded Taylor Fritz was slated to face Rafael Jodar in the men’s final while Jessica Pegula and Alexandra Eala compete for the women’s title.

Almost a year after Saudi Arabia’s Public Investment Fund launched its bid for Electronic Arts, ardent gamer Crown Prince Mohammed bin Salman will take control tomorrow of one of the world’s largest video game companies.

The PIF’s $55 billion take-private deal for EA, backed by private equity firm Silver Lake and Jared Kushner’s Affinity Partners, is expected to formally close at the end of trading on Aug. 4, after clearing a last regulatory hurdle from the European Commission last week.

Electronic Arts oversees a large stable of gaming franchises, from “Battlefield” and “The Sims” to sporting titles like “EA Sports FC,” formally known as “FIFA.” “Battlefield 6” has been a huge hit, selling seven million copies in three days when it launched last October and even outselling “Call of Duty,” one of the Crown Prince’s favorite games.

But the deal, considered the biggest leveraged buyout in history, saddles the new owners with about $20 billion in debt, adding to concerns in the industry that it will lead to fresh rounds of consolidation, cost-cutting and layoffs.

This comes as the PIF’s willingness to pump billions into its trophy investments has been curbed since the deal was struck last September amid a broad reassessment of spending on Vision 2030 mega projects and the growing economic toll of the Iran conflict. 

UAE-backed chipmaker GlobalFoundries will receive $300 million from the U.S. government to develop silicon photonics technology aimed at making AI data centers faster and more energy efficient.

The investment, part of the Biden-era Chips Act program being redirected under President Donald Trump, will support technology that uses light instead of electrical signals to move data between chips, reducing power consumption and heat generation.

Abu Dhabi sovereign wealth fund Mubadala owns about 73% of GlobalFoundries.

 The U.S. Department of Commerce will receive a stake of about 1% in the chipmaker under a separate agreement.

Saudi Arabia is planning to lead a multinational alliance to defend Red Sea trade routes from attacks by Iran-backed Houthis, as it grapples with renewed threats. 

The kingdom held discussions with military representatives from 43 countries in Riyadh on Thursday, with 13 countries initially expressing support, including Kuwait, Bahrain, Qatar, Egypt and Jordan. 

An initial statement said Saudi Arabia would host the headquarters of the alliance, but did not detail specific military commitments from any country. 

Threats and attacks on vessels linked to Saudi Arabia have slowed traffic through the Bab al-Mandab, a chokepoint at the southern end of the Red Sea. The route has become a critical alternative route for oil giant Aramco’s exports amid disruptions to the Strait of Hormuz. 

Six Saudi oil tankers waiting outside Bab al-Mandab appeared to sail off in the direction of South Africa on Friday, with four signaling Durban or Algoa Bay ports and another two indicating they would sail around Africa to Gibraltar, Bloomberg reports.

Egypt said preliminary investigations found a drone caused a fire that damaged two vessels at the country’s Mediterranean Damietta Port on Wednesday, with no casualties reported.

Authorities said no group had claimed responsibility, and investigations are continuing to identify those responsible.

Energy analytics firm Kpler said the incident disrupted operations at the gas import terminal, and security company Ambrey reported that a U.S.-owned storage tanker had been hit.

If confirmed, it would mark a significant escalation of regional tensions. It came as the U.S. military launched a new wave of strikes against Iran this morning in response to attacks on its military bases in the Middle East.

An Iranian attack hit a building belonging to a Chinese company in northern Kuwait today, killing one worker and causing significant damage.