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Middle East Edition
6th July 2026
 
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THE HOT STORY

Unchecked AI progress 'may pose catastrophic risks'

A preliminary report from the UN's Independent International Scientific Panel on Artificial Intelligence, which has been described as the first global independent ​assessment of AI's risks and opportunities, has said developments in the technology are outpacing scientific understanding and government policy, and there are no guarantees that it will not cause ‌catastrophic harm. "AI capabilities ​are outpacing both scientific understanding and governments’ ability to adapt," said Yoshua Bengio, co-chair of the panel. "With growing evidence of deceptive AI behaviour, science currently cannot guarantee that as capabilities continue to ⁠increase, AI will not cause catastrophic harm, either on its own or due to malicious users." AI's task complexity is doubling every four to seven months, potentially allowing systems to complete work that takes humans days or ‌weeks, the report notes.
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STRATEGY

Microsoft commits 6,000 employees to new AI implementation unit

Microsoft is establishing a new subsidiary, Microsoft Frontier Co., to enhance its AI services, and is investing $2.5bn in the initiative. The move will see 6,000 employees embedded with clients to facilitate AI implementations, a strategy known as forward deployed engineering (FDE). Rodrigo Kede Lima, previously leader of Microsoft's Asia operations, will serve as president of the new division. Judson Althoff, chief executive of Microsoft's commercial business, emphasized the need for tailored AI solutions. "Customers are in very different places right now, and trying to really figure out AI . . . Do they snap to one model from OpenAI or one model from Anthropic, or a family of models?" Althoff said. "Do they take it from a technology first mindset? How do they look at their existing business processes and operations?" Leading AI labs Anthropic and OpenAI both established FDE groups in May.

Uber dismisses top leaders at data labeling business

Uber has dismissed two top leaders at its nascent AI data labeling business. Naga Kasu, senior director of engineering, and Pankaj Kamat, director of product at Uber AI Solutions, are said to have departed the ride-hailing company recently. Uber has positioned the data labeling unit as a key growth driver. The division employs a network of gig workers to undertake tasks necessary to prepare data to be used in artificial intelligence models, such as labeling video footage for driverless technology. 
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LEGAL

DGHR launches “Human Resources Law Elite” initiative

The Dubai Government has launched the Human Resources Law Elite initiative to enhance legal knowledge among Emirati professionals. The initiative aims to improve administrative decision-making and promote consistency in legal practices across government entities. Abdullah Ali Bin Zayed Al Falasi, Director General of the Dubai Government Human Resources Department, said: “The initiative reflects Dubai Government's vision of building a government driven by institutional knowledge.” The programme is informed by insights from the Legal Inquiries Portal, addressing practical challenges and ensuring relevance to the needs of government entities.
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SUSTAINABILITY

Saudi Arabia to showcase Vision 2030 progress

Saudi Arabia is participating in the 2026 United Nations High-Level Political Forum on Sustainable Development (HLPF) in New York from July 7 to 15. The forum focuses on advancing sustainable solutions for the 2030 Agenda and its Sustainable Development Goals (SDGs). The Kingdom will present its 2026 Voluntary National Review (VNR), showcasing its progress towards the SDGs, with contributions from over 140 entities. The Saudi delegation, led by Minister of Economy and Planning Faisal Alibrahim, will engage in discussions and host events, reinforcing its commitment to Saudi Vision 2030 and global sustainability efforts.

Most companies struggle to measure financial impact of sustainability, KPMG finds

A new KPMG survey has found that while 72% of executives say they have a strong understanding of their companies' sustainability strategies, only 19% report using robust financial valuation methods to quantify sustainability's impact on value creation and future performance. Surveying more than 2,000 senior executives across 19 countries, KPMG found that 60% of companies incorporate sustainability risks and opportunities into financial planning and 50% have embedded sustainability into their business strategies, but many lack the tools and frameworks needed to connect sustainability with financial outcomes. The report found the banking and capital markets sector leads in applying advanced valuation techniques at 33%, followed by energy and natural resources and automotive, both at 31%, with KPMG warning that companies unable to quantify sustainability risks and opportunities risk mispricing investments and missing long-term value creation opportunities.
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TAX

Saudi Arabia extends tax penalty waiver scheme to end of year

Saudi Arabia has extended its tax relief initiative, allowing taxpayers an additional six months to settle their liabilities without incurring selected fines. The Zakat, Tax and Customs Authority (ZATCA) announced that the extension, approved by the Minister of Finance, will be effective from July 1, 2026, until December 31, 2026. Taxpayers must be registered with ZATCA, submit all outstanding tax returns, and pay the full principal amount of any tax liabilities to qualify. ZATCA emphasised that this initiative does not cover penalties related to tax evasion or fines paid prior to its implementation.
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INTERNATIONAL

German workers banned from taking sick leave without a medical note

German chancellor Friedrich Merz has proposed new rules requiring workers to obtain a sick note in person on their first day of illness. The change aims to enhance productivity in Germany's stagnant economy. "The number of sick days is too high," Merz said. "We are creating a set of tools that will enable those involved, both employees and companies, to correct this." The new rules would replace a system whereby employees can get a note by phoning a doctor and do not need to do so until their third day of work. Frank Werneke, the head of the services sector union Verdi, said Merz was creating "a culture of distrust of employees." Doctors also oppose the change. "Our practices would be flooded with patients who don't need in-person care and would be better off in bed," said the German Association of Family Physicians. Meanwhile, Merz announced a €10bn tax cut for middle-class families to stimulate the economy and support his coalition government. Families earning €60,000 annually will receive over €600 in tax relief. This will be funded by raising the top tax rate from 45% to 47%. 

Former Clifford Chance lawyers fight firm over $5.8m in pay

Two former Clifford Chance lawyers have sued the firm, claiming it is improperly trying to claw back nearly $5.8m in pay under a partnership agreement before the pair left this year for Sidley Austin. Clifford Cone and Michael Sabin said in their lawsuit filed in Manhattan district court that ​UK-based Clifford Chance was trying to claw back pay as a “punitive” and “anti-competitive” response to their January departure to ​a rival. Sabin and Cone asked the court to rule that New York law and not the laws of the UK should govern the resolution of the dispute. New York prohibits law firm partnership provisions that impose financial penalties requiring departing partners to return earned compensation when they join a competitor.

Africa EV firm accused of torturing employees

Four employees of Spiro, Africa's leading electric motorbike company, have accused managers in Uganda of severe physical abuse as punishment for alleged poor performance. The Uganda Law Society has filed a complaint stating that the employees were beaten, locked in a room, and forced to write confessions. Spiro said in a statement that it "has a zero-tolerance policy for torture, harassment and any other human rights violations . . . We take these allegations extremely seriously and have initiated an internal review. Spiro Uganda is fully cooperating with the competent authorities to ensure a fair, independent and lawful investigation."

Incheon airport operator to halve employee parking permits

Incheon International Airport is to reduce employee parking permits by over 50%. The decision follows a Ministry of Land, Infrastructure and Transport audit that revealed the issuance of an excessive number of permits and their misuse for personal purposes. All current permits will be invalidated, requiring workers to reapply under stricter criteria. The new rules will limit permits to those deemed "essential for work." The move has been slammed by airport workers and employees of the airport's subsidiaries, many of whom will be required to park much further from their workplaces than before. “If this policy is implemented, commuting times for resident staff and subsidiary workers could increase by more than an hour per day,” a union official said.
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OTHER

Starbucks to pay baristas for creating approved TikTok content

Starbucks will begin paying participating baristas a share of advertising revenue for creating TikTok videos as part of a new programme launching later this summer, as the company aims to capitalise on the popularity of employee-generated social media content. Through TikTok's Custom Creator Network, the coffee chain will provide approved content ideas for paid advertisements, becoming the first brand to pilot the platform's new creator programme.
 
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