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Middle East Edition
1st July 2025
 
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THE HOT STORY

UAE cracks down on firms for falsely employing workers

The UAE has identified around 1,300 establishments, owned by approximately 1,800 employers, that have failed to properly conduct their licensed activities. As a consequence, the authority has imposed over Dh34m in fines and suspended the issuance of new work permits for these establishments. Employers are urged to cancel their licenses and regularise the status of their workers if their establishments cease operations. The authority's monitoring system evaluates various factors, including authorised business activities and the number of sponsored workers. The public is encouraged to report unlawful practices via the ministry's call centre or official channels.
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EBOOK

Responsible AI Starts Here: The Executive Guide to Azure OpenAI

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  • Best practices for responsible AI integration
  • Risk mitigation strategies every business should know
  • Real-world use cases across sectors
  • Privacy, compliance, and governance essentials
If your organization is exploring AI at scale, this is essential reading for building trust, control, and competitive edge.

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TECHNOLOGY

Gartner predicts many agentic AI projects will be scrapped within two years

According to a report by Gartner, over 40% of agentic artificial intelligence (AI) projects are expected to be abandoned by 2027 due to rising costs and unclear business value. Anushree Verma, a senior director analyst at Gartner, noted that "most agentic AI projects right now are early stage experiments or proofs of concept that are mostly driven by hype," suggesting that many current models lack the maturity to autonomously achieve complex business goals. Despite these challenges, Gartner predicts that by 2028, at least 15% of daily work decisions will be made autonomously through agentic AI, a significant increase from 0% in 2024.
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ECONOMY

Global economy faces 'pivotal moment', says Carstens

Agustín Carstens, general manager of the Bank for International Settlements, has warned that the global economy is at a "pivotal moment" as it enters a "new era of heightened uncertainty and unpredictability." This, he said, is testing public trust in institutions such as central banks. Mr Carstens, the former governor of Mexico's central bank, said increasing protectionism and trade fragmentation is "particular concerning" as they were exacerbating a decline in economic and productivity growth. He also voiced concern over evidence that the world economy is becoming less resilient to shocks. Pointing to rising debt levels, Mr Carstens said: "This trend cannot continue."
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CORPORATE

Pakistan businesses plan to shift to the Gulf

Amid growing unrest, the Karachi Chamber of Commerce and Industry (KCCI) is protesting the Pakistani government's new legal provision granting policing powers to tax collectors. KCCI President Muhammad Jawed Bilwani warned that the move could lead to a mass exodus of businesses, saying: “Most of the people have shifted to the UAE and Gulf countries where they say the tax rate and electric tariffs have been fixed for 10 years.” Over 24,000 Pakistani businesses have already registered with the Dubai Chamber of Commerce in recent years, reflecting a trend of migration to more stable environments. The government's push to reform the tax system, including a target of Rs14tn ($50bn) for the next fiscal year, has raised concerns about its impact on local industries and employment. Bilwani cautioned that if the government does not address grievances, protests could escalate into nationwide strikes.
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MANAGEMENT

Majid Al Futtaim board to be headed by chief of Dubai's financial regulator

Dubai's financial regulator has appointed Fadel Abdulbaqi Al Ali as chair of the new board of retail conglomerate Majid Al Futtaim, which owns Dubai's Mall of the Emirates and holds regional rights for French hypermarket Carrefour, Lego, and US lifestyle brand Hollister. The move comes three years after the death of the company's patriarch and amid concerns over internal divisions and future control of the business.
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STRATEGY

Alibaba Cloud to bring AI capabilities to global data centres

Alibaba's cloud computing unit is set to extend its artificial intelligence (AI) services to its overseas data centres this year, Alibaba Cloud senior vice president Liu Weiguang has announced. The company currently operates 29 data centres, including two in the US, one in London, one in Dubai and 15 across mainland China and Hong Kong, according to its website. The initiative is part of an ambitious 380bn yuan (US$52.4bn) investment plan announced by Alibaba in February to develop its cloud computing and AI infrastructure over the next three years.
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INTERNATIONAL

Dutch worker absences due to 'bore-out' rise five-fold

The number of sick leave days taken by workers in the Netherlands linked to so-called bore-out, a workplace condition precipitated by prolonged boredom and a loss of motivation, increased five-fold from 2021 to 2024, according to the occupational health service Arbo Unie, which observed: “We see that companies and organisations, for example in business services, frequently hire young people who, despite good salaries, carry out relatively simple work. When they do this for a long time, the work becomes boring, leading to bore-out.” Absenteeism due to burnout has also increased, but at a much lower rate - 28% since 2021.

Graduate jobs in UK hit 7-year low

Data from Indeed reveals that graduate jobs in the UK have reached their weakest level since at least 2018, with postings down 12% compared to last June. The decline follows finance minister Rachel Reeves' £20bn increase in national insurance contributions, which has led employers to hesitate in hiring junior workers. The UK is now the only developed nation with job postings remaining below pre-pandemic levels, approximately 21% lower than in February 2020. Jack Kennedy, senior economist at Indeed, noted that while the labour market is "holding out overall," new graduates are facing significant challenges in securing employment. The analysis also highlights a decrease in job postings for HR, marketing, and media, alongside a reduction in work-from-home opportunities.

Colombian labour reform delivers significant increase in worker protections

Colombian President Gustavo Petro has enacted a significant labour reform aimed at enhancing worker protections. The law introduces measures such as increased overtime pay and medical coverage for gig workers. However, the reform has faced criticism from business leaders, who claim it could lead to job losses and increased costs for small businesses. Despite these concerns, trade unions and Petro's allies have welcomed the changes, which aim to address inequality in Colombia's workforce. The law's passage follows a challenging legislative process; Petro had to compromise on several provisions to secure approval.

Ford calls most workers into the office four days a week

Ford Motor Company is calling the majority of its salaried workforce back to the office four days a week. “Many of our employees have been in the office three or more days per week for some time now. We believe working together in person on a day-to-day basis will help accelerate Ford's transformation into a higher growth, higher margin, less cyclical and more dynamic company," a Ford spokesperson said, adding that the updated policy takes effect September 1.
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OTHER

Rawabi launches Midnight Rush shopping event

Rawabi Hypermarket has launched a 6-Day Midnight Rush, offering exceptional deals from 10.30pm to 1am until July 5th. The event features daily-changing offers on a variety of products, including electronics, groceries, and household essentials. Kannu Baker, group general manager, said: "We are delighted to present this Midnight Rush as a way to thank our loyal customers for their continued support". Additionally, shoppers can join the Rawabi Win One Million campaign for a chance to win a Tank GMW 500 car and gift vouchers.
 
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