{"id":5171,"date":"2026-08-12T10:13:35","date_gmt":"2026-08-12T10:13:35","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=5171"},"modified":"2026-08-12T10:13:35","modified_gmt":"2026-08-12T10:13:35","slug":"the-gulf-wants-to-break-free-from-the-worlds-data-chokepoints","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=5171","title":{"rendered":"The Gulf wants to break free from the world\u2019s data chokepoints"},"content":{"rendered":"<div>\n<p>Currently,\u00a0over 90% of Europe\u2013Asia data and telecommunications traffic\u00a0flows\u00a0through\u202fEgypt\u202fand the subsea cable corridors converging at the Red Sea and Suez Canal region.\u00a0\u00a0<\/p><p>Read more <a href=\"https:\/\/crosscountrymovingteams.com\/?p=5168\">Vietnam aerospace company to send satellites aboard Elon Musk\u2019s SpaceX rideshare mission<\/a><\/p>\n<p>Today\u2019s\u00a0geopolitical instability, therefore,\u00a0is\u00a0making\u00a0the construction of\u00a0alternative routes more strategically important\u00a0than ever.\u00a0\u00a0<\/p><div><div><div><\/div><\/div><\/div>\n<p>The UAE, Saudi and Qatar are all racing to build out\u00a0these\u00a0routes, with\u00a0Qatari\u00a0Ooredoo\u2019s\u00a0Fibre in the Gulf (FIG) system\u00a0is on track to be the largest subsea cable system ever built in the GCC.\u00a0\u00a0<\/p>\n<p>Set for completion in late 2027, the\u00a0$500 million system will span\u00a0almost 2,000\u00a0kilometers,\u00a0linking\u00a0all six GCC states and Iraq, while\u00a0bypassing\u00a0the Suez Canal and Bab-el-Mandeb strait entirely.\u00a0<\/p>\n<p>Ooredoo Group\u2019s\u00a0CEO Aziz Aluthman Fakhroo\u00a0told me that the Iran war had \u201creinforced the proposition\u201d of FIG.\u00a0<\/p>\n<p>But\u00a0its proposition\u00a0is not without its challenges.\u00a0A key section of FIG is due to pass\u00a0through the Strait of Hormuz, with\u00a0Fakhroo\u00a0acknowledging\u00a0\u201cWe currently\u00a0can\u2019t\u00a0get the cable-laying ships inside Hormuz.\u201d\u00a0<\/p><div><div><\/div><\/div>\n<p>Of course, a bigger question looms in the longer term: to what extent will the current war and its aftermath threaten the viability of the digital highways that\u00a0are being built across and beyond the Gulf.\u00a0\u00a0<\/p>\n<p>You can read my full interview with\u00a0Fakhroo\u00a0in my piece here.<\/p><div><div><div><\/div><\/div><\/div>\n<p>And, in case you missed it, <em>Fortune<\/em> got the scoop last week on the\u00a0news that\u00a0Ooreedoo\u00a0has teamed up with Nvidia and Nokia to launch a multi-billion-dollar AI compute and neo-cloud platform in Indonesia.\u00a0<\/p><div><div><\/div><\/div>\n<p>For Ooredoo, the move diversifies the group\u2019s geographic footprint beyond its core Middle Eastern markets, while also deepening its exposure to Southeast Asia where AI adoption is showing stronger momentum than the global average.\u00a0\u00a0<\/p><div><div><\/div><\/div><div><div><\/div><\/div>\n<p>Click here to read my exclusive.\u00a0<\/p>\n<p><br\/><em><br\/>As ever, thanks for reading, and do keep in touch with your thoughts and ideas. See you next week.<br\/>melissa.hancock@fortune.com\u00a0<\/em><\/p>\n<h3>U.S. Targets Dubai Crypto Exchange in Alleged $4BN Iran Sanctions Dodge<\/h3><p><span>The U.S. Treasury has\u00a0<\/span><span>sanctioned\u00a0Shelbit, a Dubai-based cryptocurrency exchange<\/span><b><span>,<\/span><\/b><span>\u00a0that allegedly served as the hub of a $4 billion scheme used to evade Iranian sanctions.\u00a0<\/span><\/p>\n<p><span>The designation followed a\u00a0<\/span><span><em>Reuters<\/em> investigation that found that\u00a0Shelbit\u00a0moved crypto on behalf of Iran\u2019s central bank<\/span><span>, one of the world\u2019s largest\u00a0illegal online gambling networks, and to addresses linked by the Israeli government to the\u00a0<\/span><span>Islamic Revolutionary Guard Corps (IRGC).<\/span><\/p><div><div><div><\/div><\/div><\/div><div><div><\/div><\/div>\n<p><span>\u201cTreasury will \u200bhunt down and dismantle the illicit financial networks that keep the regime afloat,\u201d commented Treasury Secretary Scott Bessent.<\/span><\/p>\n<p><span>The U.S. Treasury\u2019s designation\u00a0<\/span><span>follows a notice issued on 24 July<\/span><span>\u00a0from Dubai\u2019s Virtual Assets Regulatory Authority (VARA) finding that\u00a0Shelbit\u00a0had violated anti-money-laundering and counter-terrorism financing laws.\u00a0<\/span><\/p>\n<p><span>Shelbit\u00a0hadn\u2019t\u00a0been\u00a0licensed by\u202f<\/span><span>VARA\u00a0since 2025, while\u00a0<\/span><span>one of its owners was deported from the UAE in April.\u00a0<\/span><span>Shelbit has denied the allegations,\u00a0stating: &#8220;Shelbit\u00a0LLC categorically rejects any suggestion that the company knowingly participated in money laundering, terrorist financing, illegal gambling activity, sanctions evasion, or activity on behalf of any sanctioned, military, or governmental organization.&#8221;<\/span><\/p>\n<p><span>Meanwhile\u00a0<\/span><span>Daniel Kinahan was extradited from Dubai to Ireland on Sunday<\/span><span>\u00a0following his April arrest\u00a0when he was\u00a0charged with\u00a0a\u00a0<\/span><span>single offence<\/span><span>\u2014<\/span><span>directing the activities of a criminal organisation between October 2015 and April 2017.\u00a0<\/span><span>His lawyers have previously said that the allegations that he is a crime boss are false<\/span><span>\u00a0and have no evidential basis.<\/span><\/p><div><div><\/div><\/div>\n<p><span>It is seen as a sign that the emirate is taking a tougher stance\u00a0against people on the US Treasury sanctions list.\u00a0<\/span><span>The U.S. Treasury imposed sanctions on Kinahan and the organization it identified as the Kinahan Transnational Criminal Organisation (KTCO) in 2022.<\/span><\/p>\n<p><span>In February 2024,<\/span><span>\u202fthe\u202fUAE was removed from the Financial Action Task Force&#8217;s (FATF) \u201c<\/span><span>grey list\u201d of jurisdictions<\/span><span>\u00a0under increased monitoring in recognition of its improved ability to tackle illicit money flows.\u00a0\u00a0<\/span><\/p><div><div><div><\/div><\/div><\/div>\n<p><span>Being on the \u201cgrey list\u201d made it more difficult for UAE businesses to conduct cross-border transactions, as financial institutions often had to undertake enhanced country-level due diligence. This resulted in longer deal timelines and higher compliance costs.\u00a0<\/span><\/p><p>Read more <a href=\"https:\/\/crosscountrymovingteams.com\/?p=5166\">How a book that inspired Warren Buffett and a $14,000 side hustle helped billionaire Bill Ackman get started as an investor<\/a><\/p>\n<h3>UAE\u2019s non-oil growth hits 4-month high as jobs bounce back<\/h3><p><span>The\u00a0<\/span><span>UAE\u2019s non-oil private sector grew at its fastest pace<\/span><span>\u00a0in four months in \u200bJuly, while employment numbers rose amid a recovery from the U.S.-Iran war.\u00a0<\/span><\/p><div><div><\/div><\/div>\n<p><span>The seasonally adjusted S&amp;P Global UAE Purchasing Managers&#8217; Index climbed to 52.7 from 50.8 in June;\u00a0<\/span><span>the 50-mark\u00a0<\/span><span>\u2060<\/span><span>separates growth from contraction.<\/span><\/p>\n<p><span>New orders expanded at the fastest pace since February, while export business increased for the first time since March and at the quickest rate \u200bin a year,\u00a0<\/span><span>helped by improving activity elsewhere in the region.\u00a0<\/span><\/p>\n<p><span>The UAE\u2019s labour market, which\u00a0<\/span><span>experienced one of the sharpest contractions in June since the height of the Covid-19 pandemic, returned to growth in July, with firms citing stronger demand as a justification for renewed hiring. \u202f<\/span><\/p>\n<p><span>David Owen, principal economist at S&amp;P Global Market Intelligence said the July data signalled \u201ca restoration of business confidence and a period of smoother trade flows.\u201d\u00a0<\/span><\/p><div><div><div><\/div><\/div><\/div>\n<p><span>However, business confidence towards future output\u00a0fell\u00a0to its lowest\u00a0level\u00a0since March, with only 7% of firms predicting an uplift over the coming year.<\/span><\/p>\n<p><span>\u201cThe volatile situation in the Strait of Hormuz continues to make the future uncertain and kept price pressures elevated in July,\u201d Mr Owen said.<\/span><\/p>\n<p><span>On 28 July, Moody\u2019s\u00a0<\/span><span>changed its\u00a0<\/span><span>MENA outlook from stable to negative<\/span><span>, noting that\u00a0<\/span><span>the impairment of shipping through the Strait of Hormuz will weigh on the growth of Gulf sovereigns, as well as their fiscal and external positions.\u202f<\/span><\/p>\n<h3>War Is paying off for Gulf shipping\u2019s biggest players<\/h3><p><span>ADNOC\u00a0Logistics &amp; Services\u00a0(ADNOC\u00a0L&amp;S), a unit of Abu Dhabi state oil company\u00a0ADNOC, has been busy making sure not to let a good crisis go to waste.\u00a0<\/span><\/p><div><div><\/div><\/div>\n<p><span>The U.S.-Iran war has sent shipping demand and charter rates soaring as operators navigate heightened security risks and disrupted regional trade routes.<\/span><\/p>\n<p><span>This has led\u00a0<\/span><span>ADNOC\u00a0L&amp;S\u2019s second-quarter profit to surge 303% year-on-year to $951 million<\/span><span>,\u00a0as\u00a0additional\u00a0services to deliver energy worldwide and a global increase in shipping charter rates outweighed the disruption caused by the war.\u00a0<\/span><\/p><div><div><div><\/div><\/div><\/div>\n<p><span>The\u00a0<\/span><span>company has now lifted its 2026 net profit growth guidance to more than 110%<\/span><span>, from an earlier forecast of over 60%,<\/span><span>\u00a0marking the third time it has raised its profit outlook this year.<\/span><\/p>\n<p><span>ADNOC L&amp;S last week announced the $1.3 billion acquisition of 11 vessels as it moves to expand its gas and crude shipping capacity.<\/span><\/p><div><div><\/div><\/div>\n<p><span>The deal followed an order last month for four next-generation LNG carriers worth about $900 million, which will be built by Jiangnan Shipyard in Shanghai.<\/span><\/p>\n<p><span>Shipping giant Clarkson\u2019s is another corporate beneficiary of the maritime disruption.\u00a0<\/span><\/p>\n<p><span>Its broking business\u00a0<\/span><span>, with revenue climbing to \u00a3413.5 million and operating profits up 55% to \u00a364.8 million.\u00a0<\/span><\/p>\n<p><span>CEO Andi Case noted \u201cthe exceptional volatility caused by the disruption to global trade from global conflict, including the situation in the Strait of Hormuz\u201d.\u00a0<\/span><\/p><div><div><div><\/div><\/div><\/div>\n<p><span>Clarkson\u2019s board now expects full-year performance to be materially ahead of market expectations, given the exceptional strength seen in the first half.<\/span><\/p><p>Read more <a href=\"https:\/\/crosscountrymovingteams.com\/?p=5164\">Trump\u2019s media and crypto firm just posted a $238 million quarterly loss\u2014here\u2019s where those losses came from<\/a><\/p>\n<h3>The Big Number<\/h3><p><div>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"wp-image-5170\" height=\"535\" src=\"https:\/\/crosscountrymovingteams.com\/wp-content\/uploads\/2026\/08\/309bb2497b3cdab08a9ad69919e74080-1024x535.webp\" width=\"1024\" srcset=\"https:\/\/crosscountrymovingteams.com\/wp-content\/uploads\/2026\/08\/309bb2497b3cdab08a9ad69919e74080-1024x535.webp 1024w, https:\/\/crosscountrymovingteams.com\/wp-content\/uploads\/2026\/08\/309bb2497b3cdab08a9ad69919e74080-300x157.webp 300w, https:\/\/crosscountrymovingteams.com\/wp-content\/uploads\/2026\/08\/309bb2497b3cdab08a9ad69919e74080-768x401.webp 768w, https:\/\/crosscountrymovingteams.com\/wp-content\/uploads\/2026\/08\/309bb2497b3cdab08a9ad69919e74080.webp 1088w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div><\/p>\n<h3>The 3 things we enjoyed reading this week<\/h3><ul>\n<li><span><span>Chevron is positioning itself as an unlikely winner of the AI boom\u2014not by building chips, but by supplying the vast amounts of electricity data\u00a0<\/span><span>centers<\/span><span>\u00a0need. Its flagship Project Kilby pairs Chevron\u2019s natural gas,\u00a0<\/span><span>land<\/span><span>\u00a0and project\u00a0<\/span><span>expertise<\/span><span>\u00a0with power-generation infrastructure to deliver 2.67 gigawatts to Microsoft in West Texas under a 20-year deal. As <em>Fortune\u2019s<\/em> Jordan Blum explains, the project highlights a growing problem for AI:\u00a0<\/span><span>hyperscalers<\/span><span>\u00a0need\u00a0<\/span><span>huge amounts<\/span><span>\u00a0of reliable power, and the grid\u00a0<\/span><span>can\u2019t<\/span><span>\u00a0always deliver it fast enough.<\/span><\/span><\/li>\n<li><span><span>B<\/span><span>attered by hundreds of Iranian missiles and drones plus Houthi and militia proxy attacks,\u00a0<\/span><\/span><span><span>Saudi Arabia\u00a0<\/span><span>has hedged its bets beyond Washington by signing the Mecca Joint Defence Agreement with Turkey and Pakistan<\/span><\/span><span><span>\u00a0\u2014 a mutual-<\/span><span>defense<\/span><span>\u00a0pact linking it to NATO&#8217;s second-largest army and a nuclear-armed ally.<\/span><span>Its\u00a0<\/span><span>biggest test may come through Iran-backed proxies in Yemen or Iraq, forcing the new partners to decide how far they are willing to go in each other\u2019s defence. The result is a Gulf where the post-war rules\u2014and who gets to set them\u2014are being rewritten<\/span><span>, as this\u00a0<\/span><span>opinion\u00a0<\/span><span>piece by former White House deputy national security adviser\u00a0<\/span><span>Mark Pfeifle explores.\u00a0<\/span><\/span><\/li>\n<li><span><span>Middle Eastern viewers are quietly becoming Twitch&#8217;s most loyal spenders, financially supporting creators at rates nearly matching the U.S. even though Arabic-language channels still pull smaller audiences than English-language giants<\/span><span>. Esports\u00a0<\/span><span>has<\/span><span>\u00a0been a key gateway for Twitch into the Middle East, where spending on tournaments, clubs and gaming infrastructure has accelerated. The video live-streaming platform owned by Amazon is seeing Saudi streamers build sizeable followings by blending competitive gaming with reactions,\u00a0<\/span><span>conversation<\/span><span>\u00a0and direct interaction.<\/span><\/span><\/li>\n<\/ul>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>In this week\u2019s Fortune Gulf Brief.<\/p>\n","protected":false},"author":1,"featured_media":5169,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[148],"tags":[],"class_list":["post-5171","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fortune-gulf-brief"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Gulf wants to break free from the world\u2019s data chokepoints - Cross Country Moving Team<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crosscountrymovingteams.com\/?p=5171\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Gulf wants to break free from the world\u2019s data chokepoints - 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