THE HOT STORY

Saudi Arabia embeds AI literacy into national strategy

Saudi Arabia is integrating AI literacy into its national strategy to enhance economic growth and workforce skills, as highlighted in the report "Navigating GCC AI Regulation: A Playbook for Building an AI-Literate & Compliant Workforce." The Kingdom's approach links AI education to its Vision 2030 goals, ensuring that organisations meet regulatory requirements while fostering digital transformation. Kais Zribi, Coursera’s general manager for the Middle East and Africa, said: “Successful AI adoption is fundamentally dependent on having a workforce equipped with the skills to use these technologies responsibly.” The report outlines best practices for building an AI-literate workforce, emphasising continuous learning and alignment with national talent priorities.

Trade Arabia

WORKFORCE

Holiday announcement for private sector workers in Egypt

Egyptian Minister of Labor Hassan Radad has announced that July 23 will be a paid holiday for all private sector employees to commemorate the July 23 Revolution anniversary. Employers may require employees to work on this day if necessary, but those who do will receive double pay or a compensatory day off. The decision aligns with Article 129 of Labor Law No. 14 of 2025, which grants workers paid leave on official holidays. Prime Minister Mostafa Madbouly has also previously confirmed this holiday for government employees.

Egypt Today

HIRING

UAE platform simplifies hiring for creative talent

The UAE-based platform GulfGotTalents simplifies the hiring process for businesses seeking creative professionals including models, actors, and influencers. It allows users to search for verified talent based on various criteria, streamlining recruitment for projects such as commercials and events. Since its launch, the platform has facilitated over 5,500 projects, creating numerous paid opportunities for performers. Founder Faizan Mustak Bhadeliya said: "The platform was created to make hiring talent faster, easier and more transparent."

Gulfnews.com

CYBERSECURITY

OpenAI says its AI technology caused a major cyber breach by itself

OpenAI has said its artificial intelligence system hacked into another AI company on its own in what the company called an “unprecedented cyber incident.” AI startup Hugging Face last week said that it had detected an intrusion into its data processing systems that it suspected was caused by an AI agent acting autonomously. “AI is accelerating the discovery and exploitation of vulnerabilities,” OpenAI said. “The primary lesson from this incident is that model security and safety must keep pace with rapidly advancing capabilities.” OpenAI said it expected this type of incident to become “more commonplace with the proliferation of increasingly cyber-capable models.”

AP News

Financial Times

Washington Post

TECHNOLOGY

AI fails to boost productivity, analysts say

Barclays analysts have expressed scepticism about the impact of AI on productivity. They said that evidence linking AI adoption to improved productivity is "unconvincing." Barclays noted that AI adoption appears gradual, with many businesses still lacking exposure to the technology. The analysts' report concluded: "Evidence of a structural pickup in productivity growth remains surprisingly fragile."

The Daily Telegraph

TAX

Spain's World Cup win delivers prize money to players - and tax revenue to the IRS

Spain's victory over Argentina in the 2026 FIFA World Cup earned its national soccer federation the tournament's $50m first-place prize, but tax experts say the Internal Revenue Service will claim a share of the earnings because the tournament was held in the United States. Although FIFA pays prize money to national federations rather than directly to players, coaches, or staff, any compensation distributed for work performed in the US is generally subject to federal taxation. Tax professionals say international tax treaties may reduce or eliminate some liabilities for certain participants, but the rules vary by country, role, and type of income, creating a highly complex tax landscape. The tournament also highlights the impact of state income taxes. While some host states do not levy income tax, others, including New Jersey, where the final was played, do. Athletes and team personnel may therefore face additional "jock tax" obligations based on where they earned their income during the competition.

Market Watch

INTERNATIONAL

Poland and Hungary move to curb non-EU migration

Reuters reports that Hungarian Prime Minister Peter Magyar and his Polish counterpart Donald Tusk - who have both been besmirched by nationalist rivals as soft on immigration - are opting for curbs on foreign labour. Tusk's government cut work permits for non-EU citizens by 22% last year, while Hungary's new government recently ceased issuing worker visas to employees from the Philippines, Georgia and Armenia. Economists and business groups warn such moves may hurt the two countries' growth prospects. "Fewer workers mean slower growth and less tax coming in, while an older population costs more in pensions and health," said Marcin Tomaszewski, lead economist for the EU region at the European Bank for Reconstruction and Development (EBRD). "Both [countries] are ageing before they are rich, and both only recently became places people move to rather than leave," he said. Public opinion polls show broad support for migration curbs.

Reuters

Starbucks Korea workers form country's first coffee chain union

Employees at Starbucks Korea have formed the first union in a coffee chain in the country. They joined the Korean Chemical, Textile and Food Industry Workers' Union, citing unaddressed complaints and heavy workloads as key reasons for their decision. The chapter has expressed dissatisfaction with the company's in-house consultative body called "gonggamhoe - the "empathy council" - claiming it failed to address their concerns, including understaffing, tight wages, and challenging schedules. Starbucks Korea said it would engage with the new union in accordance with relevant laws.

Korea Joongang Daily

The Korea Times

Judge won't block Meta from laying off workers who filed AI bias lawsuit

A judge has dismissed a bid by 26 Meta Platforms employees to block being laid off while they pursue claims that they were targeted for job cuts by the tech giant's AI-powered tools because they have disabilities or took medical leave. U.S. District Judge William Orrick in Oakland, ‌California, said the workers could not show that losing their jobs amounted to the "irreparable harm" required for him to issue an emergency order blocking the layoffs. Meta has said that decisions involving the layoffs were made by humans.

Reuters

Thailand extends migrant workers' grace period

The Thai government has approved an extension allowing migrant workers from Myanmar, Laos, and Vietnam to remain in the country until December 11, 2027. Capt Patdarasm Thongsaluaykorn, a deputy government spokeswoman, said the measure aims to support the economy and address labour shortages in key sectors. The extension comes as many work permits were set to expire by the end of 2026. The government plans to enhance the migrant worker database and ensure legal compliance during this period, while not opening registration for new workers. Employers are advised to stay informed through official channels.

The Nation

OTHER

Oil disruption threatens higher costs for fast fashion retailers

Escalating disruption to oil supplies through the Strait of Hormuz is expected to increase costs across the fast fashion industry, as synthetic fibres such as polyester, nylon and spandex are heavily dependent on petroleum. Petrochemical supply chain disruption has already pushed up polyester prices and reduced synthetic fibre production in China, raising concerns over higher input costs for low-cost apparel retailers. Brands with greater use of recycled materials, including Inditex and H&M, may be better positioned than competitors that rely more heavily on virgin synthetic fibres. Rising transport costs and tighter supplies of natural fibres such as cotton are also expected to pressure margins, with industry executives suggesting the financial impact on clothing retailers could become more pronounced over the next two years.

Economic Times

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