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Middle East Edition
30th June 2025
 
THE HOT STORY
Studies suggest that ChatGPT harms critical thinking
A series of experiments involving more than 4,500 participants at the University of Pennsylvania’s Wharton School found that those who used ChatGPT and other large language models (LLMs) to research everyday topics demonstrated weaker understanding of those topics afterward and produced less original insights than people who looked up the same topics using Google. Overall, across five experiments, ChatGPT-assisted brainstorming sessions consistently produced narrower sets of ideas, according to the researchers. The findings highlight how overly relying on gen AI “can limit the breadth of perspectives, even when individual ideas seem original,” a media release stated.
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HIRING
UAE's Golden Visa attracts talent in AI and climate sectors
Khaleej Times reports on how the UAE has expanded the scope of its Golden Visa programme and shifted its focus from attracting foreign investments and wealth to fostering long-term value creation in the local economy. Gaurav Keswani, founder and managing director of JSB, a Dubai-based advisory firm specialising in company formation and visa services, observes:  “It’s now about long-term growth potential. We’re seeing candidates from sectors like AI, IoT, cloud computing, and private wealth management. The government’s approach has evolved; it now targets individuals with specialised skills who can contribute to the broader community.”
TRAINING & DEVELOPMENT
Initiative to boost the Emiratisation of real estate professions
The Dubai Land Department (DLD) has launched the Dubai Real Estate Broker Programme to enhance Emiratisation in the real estate sector, aiming for 15% Emirati participation within three years. The initiative has already exceeded expectations, with over 180% of the annual target for qualified Emirati brokers achieved. DLD encourages Emiratis to register for the programme via its website, simplifying the process through UAE Pass. The programme includes specialised training courses in collaboration with accredited institutions, leading to the issuance of a three-year real estate broker card. Since its inception, real estate transactions have surpassed Dh500m, and 231 new brokerage firms have been licensed. DLD has engaged with 71 strategic partners to support this initiative.
TECHNOLOGY
GCC brands seek to embrace AI without losing authenticity
Khaleej Times speaks with Sharif Kotb, AVP Sales GCC at Braze, who discusses how GCC brands can embrace artificial intelligence technology without losing the authenticity that builds loyalty and trust.
Reddit vows to stay human to emerge a winner from artificial intelligence
Reddit CEO Steve Huffman warns that the company is in an “arms race” to protect its online communities from a surge in artificial intelligence-generated content, observing “Reddit is distinctly human.”
INTERNATIONAL
Penalties proposed for Australian employers who ignore harassment
The Australian Human Rights Commission has released a report advocating for fines against employers who fail to take "reasonable steps" to prevent workplace sexual harassment. The report, titled Speaking from Experience, highlights the experiences of over 300 individuals affected by harassment. Dr Anna Cody, the Sex Discrimination Commissioner, noted that "one in three workers have experienced workplace harassment in the past five years." The report recommends removing confidentiality agreements that protect offenders and suggests that employers should face civil penalties for non-compliance. Prabha Nandagopal, a human rights lawyer, underscored the need for transparency, saying that the Commission is perceived as a "toothless tiger" due to its inability to publicly share investigation outcomes.
Strike shuts Bangladesh's biggest port
Operations at Chittagong Port, Bangladesh's largest port, were suspended on Sunday due to a strike by customs officials. Mohammed Omar Faruq, secretary of the Chittagong Port Authority, said: "The port typically handles around 7,000 to 8,000 containers daily . . . But since this morning, there has been no movement in offloading or onboarding of goods." The halt is part of a dispute over plans to restructure the National Board of Revenue (NBR). Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association, estimated the cost to the industry at $222m, warning that "the cost of recovery will be staggering." Bangladesh's interim leader Muhammad Yunus urged NBR staff to return to work, as he emphasised the need to protect the economy.
Deloitte, PwC and EY fined in Dutch audit exams scandal
The US audit regulator, the Public Company Accounting Oversight Board (PCAOB), has imposed a total fine of $8.5m on the Dutch branches of Deloitte, PwC, and EY due to widespread cheating on internal training exams, including ethics tests. The PCAOB reported that "hundreds" of staff, including senior leadership, improperly shared answers from 2018 to 2022. The fine follows a similar incident in which KPMG Netherlands was fined $25m for answer-sharing. The PCAOB noted that the firms cooperated with the investigation and have since implemented clearer policies. Deloitte and PwC will each pay $3m, while EY will pay $2.5m in civil penalties.
Gaokao graduates go wild with wallets
Following the conclusion of the national college entrance exam, or gaokao, earlier this month, China's high school graduates have been on a spending spree, marking their transition into adulthood. This phenomenon, termed the "post-gaokao economy," has seen an 88% increase in travel bookings, as many young people embark on their first independent adventures. Parents are often funding these "reward consumption" habits, leading to a notable rise in sales of electronics and personal care services. However, the trend has raised concerns about rational consumption, with dermatologists warning about the safety of cheap hair dyes and parents overspending on luxury experiences. Ultimately, this shift in spending habits reflects deeper changes in China's social landscape, as businesses seek to adapt to youth's preference for quality and emotional fulfillment over mere materialism.
OTHER
Luxury sales in Gulf countries increased by 6%
The Middle East, despite the reopening of airspace and the US-brokered ceasefire between Israel and Iran, is still relying on wealthy shoppers to offset weakness in its main US and Chinese markets. Luxury sales in Gulf countries increased by 6% to $12.8bn in the nearly $400bn market last year, outpacing a global drop of 2%. However, the trade is heavily dependent on the region's burgeoning tourism industry, with 50%–60% of the Middle East's luxury sales estimated to come from tourists. The region is an important hub for travel spending, favoured by Russian oligarchs and wealthy Asians, and it serves as a gateway for high-end brands to reach wealthy shoppers from India. Luxury travel agency Global Travel Moments has said that long-term travel volumes to the Middle East have been unaffected by the latest unrest.
 


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