Western governments are pouring tens of billions of dollars into critical minerals projects as they attempt to reduce dependence on China for materials essential to clean energy, defence technology and advanced manufacturing.
But industry executives, analysts and investors are increasingly warning that poorly coordinated state-backed investment could create severe oversupply problems similar to past commodity booms that ended in market crashes.
The concerns come as countries including the United States, Australia, European Union and Japan accelerate efforts to build strategic reserves and expand production of rare earths and other critical minerals.
Governments Ramp Up Critical Minerals Spending
The United States has committed more than $20 billion toward critical minerals development through multiple financing programmes, including Project Vault, a strategic stockpiling initiative worth around $10 billion.
Australia has also allocated at least A$13 billion to support critical minerals projects and reserves through several government-backed programmes.
These investments are designed to secure supplies of metals used in electric vehicles, semiconductors, renewable energy systems, aerospace equipment and military technologies.
Particular attention has focused on rare earth elements, a group of 17 metals essential for producing powerful magnets used in advanced defence systems and high-tech manufacturing.
Although the global rare earths market was valued at only about $6.4 billion in 2024, combined Western financial commitments to rare earth projects have already exceeded that figure.
Fears Grow Over Potential Oversupply
Mining executives and analysts warn that aggressive subsidies and overlapping national strategies could eventually flood global markets with excess supply.
Brett Beatty of Resource Capital Funds said the biggest danger lies in governments pursuing independent strategies without coordination.
According to Beatty, simultaneous efforts to rapidly increase production could create volumes far beyond global demand, ultimately crushing prices and undermining the very industries governments are trying to build.
Analysts drew comparisons to historical commodity gluts, including Europe’s “butter mountains” of the 1980s, Russian aluminium oversupply and Australia’s wool crisis, where subsidies and state support distorted markets and triggered sharp price collapses.
Rare Earth Market Could Face Surplus Pressures
Consultancy Project Blue warned that several rare earth markets are already on track to move into surplus over the coming years due to expanding state-backed production.
However, analyst David Merriman said governments may still be able to avoid major imbalances if they carefully adjust subsidies, stockpiling programmes and guaranteed purchasing arrangements.
Industry leaders say current stockpiles remain relatively small, limiting immediate risks of market disruption.
Lynas Rare Earths CEO Amanda Lacaze recently said rare earth stockpiles around the world remain modest and are not yet large enough to destabilise markets.
Australian Resources Minister Madeleine King also argued that today’s critical minerals policies differ significantly from past commodity intervention failures because they are more targeted and linked to long-term industrial supply chains.
Global Coordination Emerging Among Western Allies
Concerns about duplication and oversupply are pushing Western governments toward greater policy coordination.
The Group of Seven is reportedly discussing the creation of a permanent secretariat focused on coordinating critical mineral strategies and ensuring continuity between rotating national presidencies.
Industry experts say such coordination could help prevent destructive competition between allied nations while supporting more stable investment planning.
Lessons From Congo and Indonesia
Governments outside the West have already experimented with aggressive intervention in mineral markets.
The Democratic Republic of the Congo boosted cobalt prices by introducing export quotas and stockpiling measures designed to increase mining revenues.
While the policy initially lifted prices, analysts warn prolonged restrictions could encourage manufacturers to seek alternative materials or suppliers.
Similarly, Indonesia dramatically expanded its dominance in nickel production after banning exports of raw nickel ore in 2020 to force domestic processing investment.
Indonesia’s production surged within just a few years, but authorities have since struggled with falling prices and oversupply, forcing Jakarta to tighten mining quotas and centralise export controls.
These examples highlight the difficulty governments face in balancing national industrial ambitions with long-term market stability.
Analysis
The global race for critical minerals is increasingly becoming a strategic contest shaped as much by geopolitics as by economics.
Western governments view supply chain independence as essential after years of relying heavily on China for processing capacity and rare earth production. The push is not simply about commercial competition — it is tied directly to national security, technological leadership and energy transition goals.
However, the very scale of state intervention now unfolding raises the risk of creating distorted markets. If multiple governments simultaneously subsidise production, guarantee prices and build stockpiles without coordination, supply could rapidly outpace actual industrial demand.
That scenario would likely trigger sharp price declines, weaken private investment and potentially create another boom-and-bust cycle in the mining sector.
At the same time, the market dynamics of critical minerals differ from traditional commodities. Many of these materials are essential for emerging technologies, and demand is expected to rise significantly over the next two decades as countries expand renewable energy infrastructure, battery production and semiconductor manufacturing.
This means governments are not only competing to secure supply today but also positioning themselves for future industrial dominance.
Another key challenge is that refining and processing capabilities remain heavily concentrated in China. Even if Western countries succeed in expanding mining output, they may still depend on Chinese infrastructure unless domestic processing networks are developed alongside extraction projects.
The growing emphasis on “friend-shoring” and allied supply chains reflects an attempt to address this vulnerability.
Industry experts also point to a more sustainable model emerging through byproduct extraction. Instead of building entirely new mines based purely on high prices, companies are increasingly looking to recover critical minerals from existing industrial operations, reducing the risk of uncontrolled supply growth.
Projects involving Alcoa, Sojitz and Trafigura illustrate how governments and corporations are experimenting with lower-risk approaches to expanding supply.
Ultimately, the success of Western critical minerals strategies may depend less on how much money governments spend and more on whether they can coordinate policies, manage supply carefully and build integrated processing ecosystems capable of competing with China over the long term.
An acquisition is the easiest way for the titan to get a leg up with digital nomads and international customers.
At first glance, it seems an absurd idea: JPMorgan Chase & Co., with its roughly $850 billion market cap, acquiring European unicorn Revolut, a private neobank valued at $75 billion.
Seemingly absurd, yes, but also worth considering, because it underscores the challenge that upstart fintechs pose to traditional banks. JPMorgan has already tested the practicality of building a digital-first banking experience internally. It launched Finn in 2017 as a standalone mobile banking brand aimed at younger users, then shut it down in 2019 after it failed to gain traction.
But the Finn experiment was not a clean rebuttal; it looked more like a legacy institution’s attempt to market around a shifting banking relationship than a fundamental rethink. A Revolut acquisition would give JPMorgan an established entry point into a dynamic new field.
I’m old enough to remember when BlackBerry’s CEO scoffed at Steve Jobs, saying, “You don’t need an app for the web.” We know how that played out. It’s easy to dismiss what doesn’t seem to fit your current moment, and just as easy to miss the next shift when you have the means to act.
JPMorgan doesn’t need Revolut. But the point isn’t survival; it’s trajectory. If banking is moving toward super apps as primary accounts, the question is whether JPMorgan can realistically build that future internally, or whether buying it may be the faster path.
Here are four reasons it could actually make sense:
1. The Technology
Ask a senior engineer at Revolut whether JPMorgan could replicate its platform quickly, and you’re likely to get a laugh. Ask JPMorgan’s technology leadership, and you’re likely to hear the opposite.
Both can be true.
By the time JPMorgan was experimenting with the future, Revolut was writing it. The fintech hit 100,000 customers within a year of its funding and scaled to 50 million by the end of 2024. It’s redefining what consumers expect from banking in Europe, and its sights are now set on the U.S. as well. In March, it applied to the U.S. Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation for a U.S. national bank charter.
2. The Culture
JPMorgan has the resources to succeed in the era of super-apps. But building a globally integrated, mobile-first platform is as much about organizational culture as it is about technology. Revolut was built for speed, iteration, and cross-border functionality from day one. JPMorgan was built for scale, stability, and regulatory complexity.
As Finn illustrates, those traits are not easily interchangeable.
JPMorgan could buy smaller firms in payments, investing, foreign exchange, or onboarding to assemble its own version of a super app. But stitching together components is not the same as acquiring a scaled, integrated platform with tens of millions of users, unified technology, and talent that lives and breathes a culture built around speed and innovation.
Realistically, an acquisition would require a significant premium over Revolut’s most recent private valuation. But that cuts both ways; JPMorgan would be paying for a scaled operating system, not a collection of disconnected parts.
3. The Geography
The difference between the two banks shows up in their approach to competing in Europe. JPMorgan is already expanding its digital retail presence and building out its footprint beyond the U.S. But the approach is incremental.
Revolut is anything but incremental. The company has grown to more than 70 million customers, adding roughly 1 million every 17 days. It provides immediate scale in markets where JPMorgan is still building.
Banks like Banco Santander have spent decades building global retail networks, market by market. For JPMorgan, acquiring Revolut would dramatically shorten that timeline, turning a multi-year expansion into near-instant relevance.
4. The Demographics
Traditional banking still assumes a static customer: one address, one jurisdiction, one primary market. While that remains true for many customers, it doesn’t justify treating digital nomads and international customers as undeserving, which is exactly what many U.S. banks do.
A growing segment — freelancers, remote workers, and globally mobile professionals — lives across borders. They earn in one currency, spend in another, and expect their financial lives to follow them. Revolut was built specifically for this customer.
JPMorgan, for all its scale, still largely adheres to a domestic model. Acquiring Revolut would instantly position it at the center of a shift already underway: one that legacy banking structures are not designed to support.
Regulatory Hurdles
Of course, a deal this large would face serious scrutiny in the U.S. and the U.K. Regulators would question systemic risk, governance, the impact on competition, and whether one of the world’s largest banks should absorb one of fintech’s fastest-growing global challengers.
But “difficult” and “impossible” are not synonyms, especially in modern finance, where every few years brings a deal that once seemed unthinkable. If JPMorgan believed the strategic gap was large enough, regulatory friction would become part of the negotiation, not the automatic death of the deal.
It would also send a signal to regulators and policymakers — intentionally or not — that U.S. banking structures may need to loosen if domestic institutions are to compete more effectively on the global stage. Even floating a deal like a JPMorgan/Revolut tie-up would force a conversation the industry needs to have.
No, JPMorgan doesn’t need Revolut. But at some point, it may have to decide whether to write the future of banking or keep refining the version it already dominates.
From Spain to Cabo Verde, the EIB is building a blueprint for global maritime decarbonization.
When the European Investment Bank (EIB) signed off on an €80 million loan to Bilbao’s Port Authority in late 2024, most observers logged it as routine. It was anything but.
The facility bundled three priorities that now define the bank’s maritime strategy: capacity expansion, grid electrification, and renewable energy generation on port land. Over the past 18 months, operating through its core European window and EIB Global, the bank has deployed or committed well over €400 million in maritime financing, for the most active period of EIB maritime engagement in a generation.
The Bilbao loan and a subsequent package for Málaga form the European spine of the push. Bilbao’s €80 million facility finances breakwater expansion, the landside electricity grid, and renewable generation, positioning the port on the Atlantic Corridor of the Trans-European Transport Network (TEN-T) as a lower-carbon alternative to road freight. Málaga’s €50 million loan, signed in spring 2025, follows the same template on the Mediterranean Corridor: a new multi-purpose terminal, full shore-power electrification for docked vessels, and upgraded border and passenger facilities.
Regulatory Revolution
Both foreground onshore power supply (OPS)—enabling ships to cut auxiliary engines at berth—in anticipation of FuelEU Maritime, the EU regulation that mandates OPS at designated EU ports as of 2030.
Assembled in layers over the past two years, the program combines €114 million in EIB loans with a €34 million EU investment grant for a total €148 million concessional package under the Global Gateway, the EU’s strategy to invest in sustainable infrastructure. The undertaking spans three of the four maritime hubs across the Cape Verde archipelago: Mindelo’s Porto Grande (new breakwater, expanded container and fisheries infrastructure), Palmeira on Sal (larger-vessel reception, improved fish-landing facilities), and Santo Antão’s Porto Novo (inter-island connectivity upgrades).
Solar energy systems across multiple ports aim to cut diesel dependency. The centerpiece of the project is the rehabilitation of CABNAVE, Cape Verde’s sole naval repair yard. The EIB intends to develop it into a regional maritime center of excellence: a goal with geopolitical resonance, given China’s longstanding interest in the facility.SUBHED
The series of deals comes fully into focus as an accompaniment to the regulatory revolution unfolding in parallel in the EU. FuelEU Maritime, in force since the beginning of last year, mandates progressive greenhouse-gas intensity cuts for ships above 5,000 gross tonnes calling at EU ports: 2% against a 2020 baseline now, rising to 6% by 2030 and 80% by 2050. Simultaneously, the EU Emissions Trading System covers shipping; companies must surrender allowances for 40% of verified emissions from 2024, 70% from 2025, and 100% from 2026.
This double pressure—a fuel-intensity standard alongside a carbon price—is the commercial incentive structure the EIB’s port electrification investments are designed to capitalize on. The bank is de-risking regulatory transitions for port authorities that might otherwise be delayed while awaiting final implementing rules. Additionally, bundling electrification, renewables, and capacity expansion into single loan instruments is more sophisticated than the EIB’s earlier methods of generating port loans, which were piecemeal and perceived as non-strategic.
€100 Billion Funding Gap
But the EIB is not the only major backer of the energy transition, nor could it be.
Last year, the European Investment Fund approved infrastructure fund investments explicitly targeting shipping-sector decarbonization, signaling a move beyond pure debt into equity and quasi-equity instruments that aim to crowd in pension funds and insurers at a scale individual EIB loans cannot reach. The European Commission has estimated that the full maritime energy transition will require around €100 billion by 2035; the EIF’s fund route is considered the most plausible mechanism for mobilizing capital at that magnitude.
Yet gaps remain. The portfolio is still weighted heavily toward port-side infrastructure rather than the fleet itself; direct EIB financing for vessel retrofits and alternative-fuel newbuilds has yet to materialize at scale. OPS deployment across all TEN-T ports by 2030 is a larger task than two Spanish loans can address. And the geopolitical role the bank has assumed in Cape Verde raises questions about mandate and institutional capacity that extend beyond the mid-Atlantic.
The EIB’s maritime schemes of the past 18 months are not isolated transactions; they are the outline of a strategy. Whether the bank receives the resources and political backing to match the scale of the transition it’s trying to finance is an open question.
Finance ministers from the Group of Seven met in Paris to address rising global financial instability triggered by a bond market selloff and concerns over inflation linked to the ongoing conflict involving Iran.
The meeting comes at a time when global bond markets from Tokyo to New York are under pressure, as investors anticipate that higher energy prices could force central banks to maintain or increase interest rates.
Officials are also preparing for a broader discussion on structural global imbalances and coordination ahead of an upcoming G7 leaders summit.
Bond Market Pressure and Inflation Concerns
Bond yields have risen sharply across major economies as investors reassess inflation risks. Markets are increasingly focused on whether rising energy costs will translate into sustained price pressures that limit the ability of central banks to ease policy.
French officials have described the current situation as a correction rather than a crisis, though they acknowledge growing sensitivity around sovereign debt levels and fiscal sustainability.
The volatility has raised concerns particularly in highly debt sensitive economies such as Japan, where bond market movements are closely watched for spillover effects.
Diverging Views Within the G7
Despite the shared concerns, divisions remain among G7 members over how to respond to global economic instability.
European officials have emphasized the need for coordinated, temporary, and targeted responses to market shocks, while acknowledging that consensus with the United States may be difficult.
Some members argue that global economic imbalances are becoming structurally entrenched, with consumption and investment patterns increasingly misaligned across major economies.
Global Imbalances and Structural Concerns
A central focus of the discussions is the growing imbalance in global economic activity. European officials argue that long term trends show excessive consumption in some economies, under consumption in others, and insufficient investment in parts of Europe.
These structural disparities are seen as contributing to persistent trade tensions, capital flow imbalances, and financial market instability.
Officials warn that without coordinated policy responses, these imbalances could eventually lead to more severe market corrections.
Critical Minerals and Supply Chain Strategy
Another key agenda item is the global competition over critical minerals and rare earth supply chains, which are essential for electric vehicles, renewable energy systems, and defense technologies.
G7 members are exploring ways to reduce dependence on dominant suppliers, particularly China, through coordinated investment, joint procurement strategies, and diversification of supply chains.
Proposals under discussion include pooled purchasing mechanisms, market monitoring systems, and industrial policy coordination to strengthen supply security.
Analysis
The G7 meeting highlights a convergence of financial instability and geopolitical fragmentation. Rising bond yields and inflation fears are no longer isolated market issues but are now directly linked to geopolitical disruptions in energy supply and global trade routes.
At the same time, disagreements within the G7 reflect deeper structural tensions in the global economy, particularly around debt levels, consumption patterns, and industrial policy priorities.
Efforts to coordinate on critical minerals signal a shift toward more strategic economic alignment among advanced economies, where supply chain security is becoming as important as price stability.
Overall, the meeting underscores a global transition toward a more fragmented and politically driven financial system, where economic coordination is increasingly shaped by geopolitical risk rather than purely market based forces.
An Ebola outbreak caused by the rare Bundibugyo strain has killed dozens in Democratic Republic of the Congo and is spreading into Uganda, raising fears of regional transmission. Health officials say instability and shared borders are complicating containment efforts as the World Health Organization declares a global health emergency.
Travellers have been told ‘not to panic’ if they have flights planned for the summer
Flight rule change to stop last minute cancellations
Many travellers are worried that their summer flights may be at risk as the jet fuel supply disruptions have left some airlines cancelling and rescheduling flights. Now, hantavirus has also trigger some anxiety as passengers fear they may be facing the same disruptions they experienced during the Covid pandemic.
While health experts have been assured the public that hantavirus is “not like Covid”, according to BBC’s Dr Xand, a travel expert explained exactly what rights you have if your flight is cancelled for these reasons.
Hannah Mayfield explained: “If your flight is cancelled because of a global health emergency or another major disruption outside the airline’s control, passengers are still entitled under UK261 to either a full refund or alternative flight.
“That obligation remains firmly with the airline, even in extraordinary circumstances. What may not apply, however, is additional compensation.
“We saw significant confusion around this during the coronavirus pandemic.”
The travel money expert with specialist travel insurance comparison website PayingTooMuch, urged people to learn the “crucial” distinction between these two as some travellers mistakenly believe that if they aren’t entitled to compensation then they aren’t entitled to anything.
Ultimately, the expert assured everyone with upcoming flights: “The key message for travellers this summer is not to panic, but to understand where responsibility sits before problems arise. Knowing your rights in advance makes it much easier to act quickly and avoid unnecessary stress or expense if your faced with disruptions.”
She continued: “Airlines are responsible for passenger rights linked to the flight itself, including refunds, rebooking, and assistance during disruption.
“Travel insurance, by contrast, is there to protect against wider personal financial risks such as cancellation due to illness, emergency medical treatment abroad and repatriation as well as things like baggage lost items and in some cases irrecoverable costs that cannot be recovered from airlines or travel providers depending on the cover.”
Checking your travel insurance and how you paid for the flight before you leave can also add some extra protection. The expert urged: “It’s equally important to read the travel insurance policy carefully before travelling.
“Many people only discover exclusions relating to pandemics, wider disruption, or government travel advisories when they come to make a claim.”
Hannah explained that if you used a credit card to pay for your flight, Section 75 of the Consumer Credit Act can “provide valuable additional protection in some instances”. While those who paid with debit cards may have “less robust” protections.
Thiago Avila, a member of the Global Sumud Flotilla, arrives to attend his trial for a remand extension at the Ashkelon Magistrate’s Court in Ashkelon, Israel, on May 3. Avila and Saif Abukeshek were deported on Sunday after Israel’s foreign ministry said it concluded an investigation into the two. Photo by Abir Sultan/EPA
May 10 (UPI) — Israel deported two activists who were part of the Global Sumud Flotilla attempting to deliver aid to Gaza more than a week ago.
Saif Abu Keshek and Thiago Avila were deported on Sunday after Israel’s foreign ministry said it concluded an investigation into the two. It had suspected Abu Keshek, a dual citizen of Spain and Sweden who is of Palestinian origin, of being affiliated with a terrorist organization and suspected Avila of being involved in criminal activity.
The foreign ministry confirmed on social media that Abu Keshek and Avila were deported on Sunday.
Abu Keshek and Avila were part of the flotilla of 22 boats and nearly 175 activists that was intercepted off the Greek island Crete more than a week ago. Armed Israeli naval troops boarded the vessels, destroyed their engines and blocked communications, preventing the flotilla from reaching Gaza, more than 700 miles away.
Hadeel Abu Salih, an attorney who represented Abu Keshek and Avila during their detention, called the detention of them and other activists unlawful and a “sham proceeding with no legal basis, intended to punish them for attempting to challenge Israel’s illegal blockade on Gaza.”
Abu Salih is part of the rights group Adalah. It alleges that they were subject to “psychological abuse” during their detainment.
The Global Sumud Flotilla released a statement on Saturday calling for sanctions against Israel for the detainment of activists.
“We demand explanations from the European Union, and specifically, Greece, after days of silence and complicity, and we call for immediate sanctions against Israel for this illegal abduction and for the constant violations of international law and human rights of the Palestinian people,” the Global Sumud Flotilla said in a statement.
Pope Leo has called on global leaders to reduce international tensions and turn away from violence, delivering an emotional appeal during a visit to Pompei, Italy, on Friday. His remarks came just one day after he met U.S. Secretary of State Marco Rubio at the Vatican, where both sides discussed efforts to improve strained relations between Washington and the Holy See.
The meeting took place against a politically sensitive backdrop, with U.S. President Donald Trump having recently criticized the Pope over his comments on the Iran conflict. Pope Leo, the first U.S.-born pontiff and former Cardinal Robert Prevost, has increasingly spoken out on global conflicts in recent weeks after initially maintaining a relatively low public profile following his election in May 2025.
Speaking to worshippers in Pompei, the Pope urged prayers that world leaders would be inspired to “calm rancour and fratricidal hatreds” and to take responsibility for reducing global violence. He also warned against becoming desensitized to images of war, and criticized what he described as an international system that often prioritizes the arms trade over human life.
Why It Matters
The Pope’s intervention highlights the growing moral and diplomatic role of the Vatican at a time of heightened global instability, particularly amid ongoing tensions involving Iran, the United States, and wider geopolitical rivalries. His criticism of the global arms economy directly challenges dominant security-driven foreign policy approaches, especially in Western capitals.
As the spiritual leader of more than 1.4 billion Catholics worldwide, Pope Leo’s statements carry significant symbolic and diplomatic weight. His increasingly vocal stance on war and governance also places him in a rare position of open tension with major political actors, including the U.S. administration.
What’s Next
The Vatican is expected to continue engaging diplomatically with U.S. officials despite emerging tensions, particularly following the Rubio meeting. Pope Leo is likely to maintain his public messaging on peace, conflict prevention, and criticism of the global arms trade, reinforcing the Holy See’s traditional role as a moral voice in international affairs. At the same time, reactions from Washington and other governments may further shape the evolving tone of Vatican–state relations in the coming months.
JET fuel restrictions could hit airlines on a global scale, a major airline owner has warned.
International Airlines Group (IAG), who owns British Airways, Iberia and Aer Lingus, initially said that most of its airlines will unaffected this summer.
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IAG, who owns airlines like British Airways, has warned of restrictions if the war continuesCredit: AFP or licensors
However, they warned that if the crisis continues, shortages will result in restrictions across the globe.
They said: “If the current conflict continues to restrict flows of both crude oil and jet fuel from the Middle East, there is the potential for supplies of jet fuel to be restricted on a global basis.
“We are engaging with governments in each of our home markets as well as with the EU to ensure that the industry is getting the support it needs to navigate this situation.”
IAG has said they expect their profit to be lower than anticipated. It also expects spend more than £1.72billion extra on fuel costs that previously predicted.
The closure of the Strait of Hormuz since March has resulted in fears of fuel shortages, and caused airlines to start hiking prices.
Some airlines, such as Lufthansa, Scandinavian Airlines and Cathay Pacific, have already reduced their flights scheduled for the upcoming months in an attempt to avoid cancellations caused by shortages.
A man talks to the vendor in a DJI drone manufacturer store in Shanghai, China. File. Photo by ALEX PLAVEVSKI / EPA
May 2 (Asia Today) — China has begun tightening regulations on its fast-growing drone industry, prompting concerns that the government may be undermining one of its most competitive global sectors.
Recent reports from Chinese media outlets, including the New Beijing News, indicate that China holds a commanding position in the global drone market, with an estimated market share of at least 70%. Industry leader DJI dominates both domestic and international markets, facing limited competition even as Taiwan makes inroads in Europe.
Despite this strong position, new regulations took effect Thursday in Beijing, effectively designating much of the capital as a no-drone zone. Under the new municipal ordinance on unmanned aerial vehicle management, the transport, sale, rental and operation of drones within the city have been broadly restricted.
The measures have already led to store closures. DJI flagship outlets in areas such as the 798 Art District in Beijing’s Chaoyang district have shut down, in some cases under pressure from authorities.
Officials say the move reflects growing concerns over national security and public safety, as drones are increasingly viewed as potential threats in sensitive areas. Beijing has previously imposed temporary flight bans on low, slow and small aerial objects during major political events, a policy that now appears to be expanding into a more permanent framework.
Analysts say the Beijing regulations could serve as a model for broader nationwide controls. If expanded, such measures may significantly weaken China’s dominance in the global drone industry and could even erode its competitive edge.
Industry insiders have expressed concern that excessive regulation could harm a key growth sector, with some privately warning that China risks damaging its own technological leadership.
Seoul – Shekinah Yawra had no other option but to spend the night at a South Korean jjimjilbang, a 24-hour bathhouse, after every hotel near central Seoul sold out in late March.
But sleep was secondary for the 32-year-old Filipino who had made her way to Seoul’s Gwanghwamun Square at 7am to secure a spot in a crowd that city officials estimated would grow to hundreds of thousands.
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All this was for a glimpse at the seven-member K-pop supergroup BTS, who returned to the stage on March 21 after almost four years away from the limelight for their staggered, mandatory military service.
Though she failed to secure one of 22,000 free tickets for BTS’s first return concert in the square, Yawra was still ecstatic to stand on the sidelines and watch the concert live on a big screen set up for the occasion.
“We all came just for this,” she told Al Jazeera, recounting how friends had flown in from the Philippines for a single night to catch the concert.
Worldwide, more than 18.4 million viewers tuned in for the Netflix livestream of the concert.
Kpop group BTS perform during ‘BTS The Comeback Live Arirang’ concert in central Seoul, South Korea, March 21, 2026 [Kim Hong-ji/Pool/Reuters]
With an estimated 30 million fans worldwide – who refer to themselves as the BTS ARMY – the K-pop group is the most visible symbol of “Hallyu”, or the “Korean Wave”, and the global surge of interest in South Korean popular culture and the financial revenues being generated as a result.
In late March, BTS’s 10th studio album, Arirang, topped the charts in the United States, Japan and the United Kingdom, the world’s three largest music markets. The group’s upcoming world tour is expected to generate more than $1.4bn in revenue across more than 80 shows in 23 countries.
Domestically, inbound tourist numbers for the first 18 days of March rose 32.7 percent from the previous month, according to Ministry of Justice data, as the return concert approached and hotel prices surged across central Seoul amid the demand for rooms.
In the week leading up to the concert, sales of BTS merchandise – from BTS glow sticks to blankets – surged 430 percent at the Shinsegae Duty Free retail outlet in central Seoul, the company said.
Over the concert weekend, revenues also rose 30 percent at the city’s Lotte Department Store and 48 percent at Shinsegae overall, compared with the same March weekend a year earlier, in 2025.
Fans cheer before the BTS The Comeback Live Arirang concert as they wait near the concert venue, in central Seoul, South Korea, on March 21, 2026 [Kim Hong-ji/Reuters]
As far back as 2022, the Korea Culture and Tourism Institute (KCTI) – a government-sponsored think tank and research organisation – estimated that a single BTS concert in Seoul could generate up to 1.2 trillion won ($798m) in overall economic impact.
KCTI researcher Yang Ji-hoon told Al Jazeera that a sample study of the crowd at the BTS comeback event at Gwanghwamun Square highlighted the uniqueness of fandom-driven tourism. More than half of those at the concert were foreign visitors and many required long-haul travel to attend.
“In Europe and the United States, travel tends to be concentrated within its own regions,” Yang said.
“So, for people to overcome such travel barriers and come to South Korea, it usually requires more than just ordinary motivation or typical spending – it’s not something that happens easily,” he said.
K-pop’s transition to the global mainstream
The scale of BTS’s return to the entertainment world reflects a broader state-backed strategy.
When music promoter Hybe requested Seoul city support for the Gwanghwamun square comeback concert, authorities approved it on public-interest grounds, treating the event as a showcase of national cultural influence.
Almost befitting an official event, more than 10,000 state personnel were deployed for security, logistics and crowd control.
According to data retrieved by South Korean publication Sisain, through a public information disclosure request to the Seoul government, close to 130 million won ($87,400) of city funds were spent as part of logistics for the comeback concert.
South Korean government support for BTS has a precedent.
As members of the boyband approached South Korea’s mandatory military service age, policymakers debated special exemptions for members of BTS, which was estimated to have generated $4.65bn annually to the country’s economy.
After BTS’s forthcoming concerts in Mexico City sold out in just 37 minutes, Mexican President Claudia Sheinbaum urged South Korea’s President Lee Jae Myung to “bring the acclaimed K-pop artists more often”, noting nearly one million fans in Mexico had attempted to secure 150,000 tickets.
South Korea’s cultural influence is also extending beyond music.
South Korea’s cosmetics exports surpassed $11bn last year, according to global accountancy firm PricewaterhouseCoopers (PwC), overtaking France in cosmetics shipments to the US, while South Korean food and agricultural exports reached a record $13.6bn, according to data from the Ministry of Agriculture, Food and Rural Affairs.
KCTI researcher Yang described the growing interest as a phase of “transition to the global mainstream”, where South Korean products are internationally recognised and content output is measured against worldwide benchmarks such as the Billboard charts and the Academy Awards.
He also warned that structural reform is now essential to keep pace with the wave of interest in South Korea.
“As the industries expand in scale, they must also evolve in its underlying systems, infrastructure, and workforce,” he said.
“Rather than focusing solely on direct financial support, future governmental policies should move toward strengthening foundational conditions – such as improving labour environments, addressing unfair practices, building relevant infrastructure, and establishing more robust statistical and data systems,” he said.
Politicians appear to be paying attention.
During his election campaign last year, President Lee framed the next phase of cultural expansion as “Hallyu (Korean Wave) 4.0”, with promises to grow the sector into a 300 trillion won ($203bn) industry with 50 trillion won ($34bn) in exports.
In line with this vision, the government set the budget to bolster “K-content”, support the “pure” arts sector and strengthen the overall culture-related fields at a record 9.6 trillion won ($6.5bn) — reflecting the president’s view of the cultural sector as a strategic national industry rather than merely a consumer market.
South Korea’s strategy appears to be paying off.
South Korea now ranks 11th globally in “soft power”, according to Brand Finance’s Global Soft Power Index, placing the country as both “influential in arts and entertainment” and “products and brands the world loves”, just behind the US, France, the United Kingdom and Japan.
The darker side of K-pop: Pressure to become a perfect idol
Amid its global success, the darker side of the K-culture industry has received more scrutiny.
Mega-promoter Hybe has been embroiled in a prolonged dispute with K-pop’s New Jeans, a band considered to be a potential heir to BTS and their all-female colleagues Blackpink. The highly public legal dispute that started in 2024 highlights industry tensions over creative control and artist autonomy.
Since the early 2000s, K-pop has also grappled with the legacy of “slave contracts”, or highly restrictive agreements limiting artists’ freedom. Although reforms by the Fair Trade Commission have improved protections for performers, contractual obligations in the K-pop industry are exacting on new performers and their strict work routines have long been documented.
From their trainee years, aspiring idols endure gruelling schedules that involve long workdays and little sleep.
Many top stars often face contractual restrictions on socialising, using their phones or dating. They are also typically limited in what they can say publicly, relying on agency-managed messaging to communicate with fans and the media.
While the rise of social media and other online platforms has opened new avenues for more direct expression and interaction in recent years, concerns over burnout and depression have continued to shadow the industry, with several high-profile stars taking their own lives.
Beauty standards associated with the K-culture genre have also become another flashpoint for controversy.
A 2024 report by South Korean economy news site Uppity found 98 percent of 1,283 respondents born between 1980 and 2000 viewed physical appearance as among the most desirable “social capital” an individual can possess.
Nearly 40 percent of respondents in the survey had undergone cosmetic procedures, while more than 90 percent held neutral or positive attitudes regarding undergoing medical procedures to enhance beauty.
According to the International Society of Aesthetic Plastic Surgery, South Korea has the world’s highest rate of procedures, with 8.9 per 1,000 people compared with 5.91 per 1,000 people in the US and just 2.13 per 1,000 in neighbouring Japan.
Yoo Seung-chul, a professor of media studies at Ewha Womans University in Seoul, said that K-culture has reinforced the normalising of beauty as a significant metric of personal and social value.
“K-culture has reinforced systems and structures around self-expression,” Yoo told Al Jazeera.
“With the rise of webtoons that incorporate themes like plastic surgery, there has been a noticeable reduction in the stigma towards going under the knife among younger audiences in their teens and early twenties,” Yoo said, explaining that popular plastic surgery platforms such as Unni have further normalised the trend by connecting people to clinics and reviews of these clinics and their surgeons.
At the same time, globalisation has reshaped the K-culture industry itself. Many new K-pop acts now include international members to broaden appeal.
Hybe has expanded this strategy through its US subsidiary, Hybe America, producing globally oriented groups like Katseye, which only has one South Korean member in its six-member girl group.
The shift has prompted debate.
Even BTS’s latest album Arirang – a nod to South Korea’s most iconic folk song – has divided fans over its use of English lyrics and foreign producers.
“K-content is being designed with global audiences in mind from the outset. In film, there has been a noticeable rise in genres like horror and science fiction, which are easier to export internationally,” Yoo said.
“This global orientation is also reflected in K-pop agencies recruiting foreign members for idol groups,” he said.
But international audiences do not always prefer highly globalised versions of Korean content, Yoo said, adding, in fact, that many are drawn to K-pop’s “sense of locality”.
As audiences increasingly seek authenticity, Yoo argues the industry faces a defining challenge.
“Industries and companies need to figure out how to preserve a sense of local identity while effectively marketing to global audiences,” Yoo added.
“Striking that balance will be crucial in shaping the next phase of Korea’s cultural exports.”
In international politics, the platforms a country sits on often matter as much as what it says. For decades, Somalia was largely the subject of global security discussions, rarely a decisive participant in them. Today, that reality is changing in ways that carry symbolic weight and practical consequences.
Somalia’s recent election to the African Union Peace and Security Council (AU PSC), alongside its membership in the United Nations Security Council (UNSC), marks a turning point in its diplomatic trajectory. For quite some time, Somalia was merely being discussed in the world’s most influential security forums. It is now shaping the agenda on the table.
This shift reflects more than a procedural achievement. It signals the maturity of Somalia’s diplomatic and security institutions, and the steady rebuilding of its international credibility after decades of conflict and state fragility.
For much of the past three decades, decisions affecting Somalia’s security were often made in rooms where Somali voices were either absent or marginal. External actors debated intervention strategies, sanctions regimes, peacekeeping mandates, and humanitarian responses, while Somalia struggled with internal instability.
This membership in the UNSC and AU PSC changes that dynamic fundamentally. These bodies are not symbolic; they make binding decisions, adopt resolutions, authorise peacekeeping operations, and shape international legal frameworks. For Somalia, this may seem something simple, but its impact is profound. Somalia is now part of the process that determines policies affecting its own security and development.
That participation strengthens state-building in several ways. It reinforces institutional capacity within Somalia’s foreign policy apparatus, promotes transparency and accountability through engagement with multilateral norms, and aligns Somalia more closely with international legal and diplomatic standards.
Somalia is transitioning from being a recipient of international decisions to becoming a contributor to them. Somalia’s role on these councils also carries representational significance beyond its own borders.
As a member of the UNSC and AU PSC, Somalia now occupies a rare diplomatic position. It simultaneously represents the interests of the African continent, the Arab and Muslim world, and the least developed countries (LDCs). The concerns of these categories of states have often been overshadowed by the priorities of more powerful nations. Somalia now stands for them.
Somalia’s own first experience in rebuilding institutions after conflict, managing complex security transitions, and balancing sovereignty with international cooperation enables it to advocate not only for itself, but also for broader principles: Inclusive peace processes, sustainable development approaches to security, and equitable participation in global decision-making.
Peace in the world, peace at home
President Hassan Sheikh Mohamud’s 2022 political manifesto, “Somalia at peace with itself, and at peace with the world”, is increasingly reflected in these recent memberships. This vision is proving effective, as Somalia’s participation in global peace decision-making demonstrates a growing alignment between its external engagements and internal stabilisation efforts.
The seats at the UNSC and AU PSC will directly reinforce Somalia’s state-building process. Active involvement in shaping international peace also reflects and supports the way peace and security agendas are being handled domestically.
A defining moment in 2026
The year 2026 represents a rare convergence of opportunity. Somalia’s simultaneous presence at the AU PSC and UNSC provides a diplomatic platform unmatched in its recent history. This dual role should enable it to act as a bridge between regional and global security frameworks. It can ensure that Somalia’s security priorities are reflected in the AU decision, and forwardly, that African priorities are reflected in global resolutions. It can also translate international commitments into regional actions that qualify for alignment with local contexts.
This not only affects diplomacy and policy discussions but offers an opportunity to advocate for real change that directly affects the daily lives of Somalis. Such issues may include counterterrorism, stabilisation support, humanitarian access, development financing, climate security, and mechanisms for inclusive politics. By shaping the content and direction of relevant resolutions, Somalia can help align international commitments more closely with national priorities.
A future shaped by participation
With greater influence comes greater responsibility. Membership in these councils demands consistency and adherence to international norms. Somalia is now ready to navigate these complex diplomatic landscapes, balancing national interests with collective global security obligations. And it is now capable of maintaining credibility through constructive engagement, principled positions, and reliable partnerships.
With Somalia now seemingly committed to momentum on these fronts, its growing international stance will become self-reinforcing. Each diplomatic success will strengthen national institutions, which in turn will enhance future influence.
Somalia’s presence at the highest levels of global and regional security governance marks a significant milestone in its long journey towards recovery and stability. It reflects years of diplomatic effort, institutional rebuilding, and gradual restoration of international trust. It also signals a future in which Somalia is increasingly defined not by crisis, but by stability.
For a country that once stood on the margins of global decision-making, this transformation is both historic and hopeful. It signals a shift from isolation to engagement, from being acted upon to helping shape outcomes.
For young Somali generations who grew up hearing that Somalia could not advance, these diplomatic achievements offer a different narrative. They inspire pride, restore confidence, and help rebuild trust in the nation’s future.
That challenge lies ahead. But after a period of turmoil, Somalia is well positioned to meet it, not as a passive observer, but as an active shaper of its own destiny. This is also part of the broader Somalia policy on defence diplomacy, founded on global collaboration and mutual interdependency.
The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance.
Israeli forces have intercepted around a dozen Gaza-bound aid boats from the Global Sumud Flotilla in international waters near the Greek island of Crete, more than 1,000km from Israel. Organisers call it an illegal attack on civilians in international waters.
Organisers of a Gaza-bound aid mission say their vessels are being intercepted by Israeli military speedboats in Greek waters west of Crete, more than 1,000km from Israel. Crew members of the Global Sumud Flotilla say communications have been jammed and an SOS issued.
The ongoing Iran war has reshaped global energy dynamics, shifting influence away from OPEC toward the United States. Traditionally, OPEC and key producers like Saudi Arabia acted as “swing suppliers,” adjusting output to stabilize markets.
However, disruptions caused by the closure of the Strait of Hormuz have left millions of barrels stranded, limiting OPEC’s ability to respond and opening space for the United States to take on that stabilizing role.
Collapse of OPEC’s Leverage
The near shutdown of Gulf energy routes has forced major producers to cut output significantly. Even Saudi Arabia’s alternative export routes have proven insufficient to offset the scale of disruption.
This has weakened OPEC’s traditional power, which relied heavily on spare production capacity to manage supply shocks and influence prices.
Rise of U.S. Energy Dominance
The United States has stepped in decisively, leveraging its position as the world’s largest oil producer. Since surpassing both Saudi Arabia and Russia in output in 2018, the U.S. has built unmatched capacity to influence global markets.
Exports have surged to record levels, with both crude and refined products flowing to regions hit hardest by supply shortages, particularly in Asia. This rapid response has helped cushion the global economy from a deeper energy crisis.
Strategic Tools Beyond Production
Washington’s influence extends beyond production alone. The government has released oil from its Strategic Petroleum Reserve, providing an additional buffer against supply shocks.
It has also used sanctions policy as a flexible tool, selectively easing restrictions on Russian and Iranian oil to increase global supply when needed, while tightening measures to maintain geopolitical pressure.
Economic and Political Impact
For U.S. producers, the crisis has generated substantial financial gains through higher export revenues. At the same time, Washington’s actions have helped stabilize global markets, reinforcing its role as a central player in the energy system.
However, these moves carry political risks, including potential contradictions between economic goals and foreign policy objectives.
Limits of U.S. Power
Despite its growing influence, the United States cannot fully replicate OPEC’s traditional role. Unlike centralized producers, the U.S. oil industry operates within market constraints, limiting the government’s ability to directly control output.
Policies such as export restrictions could theoretically impact global prices, but would also risk damaging domestic production systems and relations with international partners.
Analysis
The Iran war has accelerated a structural shift in global energy power. The United States has effectively become a “swing supplier,” not through coordinated production cuts like OPEC, but through a combination of market scale, strategic reserves, and policy flexibility.
This transformation highlights a new model of energy influence, where rapid responsiveness and financial depth replace centralized control. While OPEC remains relevant, its ability to dominate global supply dynamics has been significantly weakened under current conditions.
At the same time, U.S. dominance introduces new complexities. Balancing domestic political pressures, international alliances, and market stability requires careful calibration. The use of sanctions as a supply management tool also raises questions about long term consistency in foreign policy.
Ultimately, the shift signals a more fragmented and dynamic energy landscape. The United States may not control the market in the traditional sense, but its ability to shape outcomes quickly and at scale makes it the most influential actor in the current crisis.
Famine was confirmed in two places in 2025 – areas of the Gaza Strip and Sudan – the first such dual confirmation since formal famine reporting began, according to the Global Report on Food Crises (GRFC) 2026.
The annual report, produced by a coalition of 18 humanitarian and development partners, found that acute food insecurity remained widespread in 2025.
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Across 47 countries and territories experiencing food crises, 22.9 percent of their populations – or about 266 million people – experienced acute food insecurity last year, a marginal rise from 22.7 percent in 2024 but nearly double the 11.3 percent recorded in 2016.
The proportion of analysed populations facing acute hunger has now stayed above 20 percent every year since 2020. In absolute terms, the number of people affected has grown from 108 million in 2016 to 265.7 million in 2025, having peaked at 281.6 million in 2023.
The GRFC cautioned that the slightly lower headline figure compared with 2024 mainly reflects a reduction in the number of countries covered – from 53 to 47 – rather than any real decline in needs.
Famine, catastrophe and emergency
Famine – the most extreme classification under the hunger-monitoring Integrated Food Security Phase Classification (IPC) system – was confirmed in parts of the Gaza Strip and Sudan in 2025. The risk of famine remained in other areas of Gaza, Sudan and South Sudan, and those projections extended into 2026.
According to the IPC, famine is when:
At least 20 percent of households face extreme food shortages.
Acute malnutrition affects more than 30 percent of the population.
The death rate due to starvation or hunger-related causes exceeds two deaths per 10,000 people per day.
(Al Jazeera)
Six countries and territories had populations facing “catastrophic conditions”, or Phase 5, the highest level in the IPC’s classification of food insecurity. They numbered 1.4 million people, a more-than ninefold increase since 2016.
The Gaza Strip was the worst affected, with 640,700 people facing famine conditions, equivalent to 32 percent of its population, the highest share recorded globally. Sudan followed with 637,200 people, or 1 percent of its population.
Four other countries recorded catastrophic food shortages among specific groups of people: South Sudan – 83,500 (1 percent of the population), Yemen – 41,200 (0.1 percent), Haiti – 8,400 (0.1 percent) and Mali – 2,600 (0.01 percent).
Additionally, more than 39 million people in 32 countries were in Phase 4, or emergency conditions, representing 3.8 percent of the population analysed, a marginal increase from 2024.
Conflict remains the main driver of hunger
Conflict and violence were the primary drivers of acute food insecurity in 19 countries where 147.4 million people were affected. They represented more than half of those facing acute hunger globally.
Weather extremes were the primary driver in 16 countries, affecting 87.5 million people, while economic shocks led in 12 countries, with 29.8 million people affected.
Against that backdrop, humanitarian and development financing for areas facing food crises declined in 2025, falling back to levels last seen in 2016-2017, the report said.
As for 2026, the report said that based on a partial picture as of March, severity levels remain critical in multiple contexts. It added that the escalation of conflict in the Middle East exposes food-crisis countries to direct and indirect risks of global agricultural and food market disruptions.
A generation of malnourished children
An estimated 35.5 million children were acutely malnourished in 2025 across 23 countries experiencing nutrition crises, including just under 10 million with severe acute malnutrition, the most life-threatening form.
A further 25.7 million children suffered from moderate acute malnutrition. About 9.2 million pregnant and breastfeeding women were also acutely malnourished across 21 countries with available data.
(Al Jazeera)
Displacement is concentrated in food-crisis countries
The number of forcibly displaced people in the 46 countries covered fell slightly in 2025 to 85.1 million.
About 62.6 million of them were internally displaced across 34 countries, and 22.5 million were refugees and asylum seekers in 44 countries.
Without a sustained push to address the structural drivers of hunger, the world’s most fragile countries will continue to bear a disproportionate share of the global hunger burden well into 2026, the report concluded.
Chinese startup says DeepSeek-V4-Pro beats all rival open models for maths and coding.
Published On 24 Apr 202624 Apr 2026
China’s DeepSeek has unveiled the latest versions of its signature artificial intelligence-powered chatbot, a year after its flagship model sent shockwaves through the global tech scene.
The Chinese startup launched preview versions of DeepSeek-V4-Pro and DeepSeek-V4-Flash on Friday as it touted its ability to go toe-to-toe with US rivals such as OpenAI and Google.
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Like DeepSeek’s previous chatbots, V4-Pro and V4-Flash follow an open-source model, meaning developers are free to use and modify the source code at will.
DeepSeek-V4-Pro beats all rival open models for maths and coding, and trails only Google’s Gemini 3.1-Pro, a closed model, for world knowledge, DeepSeek said in an announcement on social media.
The “pro” version’s performance falls only “marginally short” of OpenAI’s GPT‑5.4 and Gemini 3.1-Pro, “suggesting a developmental trajectory that trails state-of-the-art frontier models by approximately 3 to 6 months,” the Hangzhou-based startup said.
The “flash” model has similar reasoning abilities to the “pro” version, while offering faster response times and “highly cost-effective” usage pricing, the firm said.
The release comes after DeepSeek-R1 stunned the tech sector upon its launch in January last year with capabilities broadly comparable with those of ChatGPT and Gemini.
Marc Andreessen, a prominent Silicon Valley venture capitalist with close ties to United States President Donald Trump, hailed the model’s release at the time as “AI’s Sputnik moment”.
The performance of the Chinese-developed model attracted particular attention as its developers claimed to have spent less than $6m on computing costs – a fraction of the multibillion-dollar budgets that are usual in Silicon Valley.
Some tech analysts challenged DeepSeek’s account of working with such scant resources, arguing that the startup most likely had access to greater funding and more advanced chips than acknowledged.
DeepSeek’s arrival on the scene prompted blowback in some countries amid concerns about data protection and Chinese government censorship.
Multiple US states, Australia, Taiwan, South Korea, Denmark and Italy introduced bans or other restrictions on DeepSeek-R1 shortly after its release, citing privacy and national security concerns.
In recent years, the United Arab Emirates (UAE) has transformed itself into one of the most attractive destinations for entrepreneurs, startups, and international investors. What used to be primarily known as an oil-driven economy has now evolved into a diversified, innovation-focused business hub with strong global connections.
For anyone considering international expansion, relocation, or asset structuring, the UAE offers a combination of strategic advantages that are difficult to match elsewhere. From tax optimization to ease of doing business, the country continues to attract companies from Europe, Asia, and beyond.
Strategic Location and Global Connectivity
One of the key reasons why the UAE stands out is its geographic position. Located between Europe, Asia, and Africa, it serves as a natural gateway for international trade. Major cities like Dubai and Abu Dhabi are well connected through world-class airports and seaports, making logistics and operations significantly more efficient.
This strategic positioning allows businesses to operate across multiple markets with minimal friction. Whether you’re running an e-commerce operation, a consulting firm, or a trading company, the UAE provides access to billions of consumers within a few hours’ flight.
Business-Friendly Environment
The UAE government has made significant efforts to create a pro-business environment. Over the past decade, regulations have been simplified, and bureaucratic barriers have been reduced.
Some of the key advantages include:
Fast company registration processes
Minimal reporting requirements compared to many Western jurisdictions
Strong legal framework protecting investors
Access to free zones with tailored business benefits
Entrepreneurs who previously struggled with complex regulatory systems in their home countries often find the UAE refreshingly straightforward.
If you’re exploring international expansion, understanding the process of company formation in uae is one of the first steps to unlocking these advantages.
Tax Efficiency and Financial Benefits
One of the most compelling reasons businesses move to the UAE is its tax structure. While global tax regulations are evolving, the UAE still offers highly competitive conditions:
0% personal income tax
Competitive corporate tax rates
No capital gains tax in many cases
No withholding taxes
For founders and business owners, this translates into significantly higher retained earnings and better capital allocation.
However, it’s important to approach this strategically. Many entrepreneurs make the mistake of focusing only on “zero tax” narratives without understanding compliance requirements, substance rules, and international reporting obligations. Poor structuring can eliminate all the benefits you’re aiming for.
Free Zones vs Mainland: What Actually Matters
A common misconception is that choosing between free zones and mainland structures is just a formality. In reality, this decision has long-term consequences for your operations.
Free zones offer:
100% foreign ownership
Simplified setup
Industry-specific ecosystems
Mainland companies provide:
Access to the local UAE market
Fewer restrictions on business activities
More flexibility in scaling
The right choice depends entirely on your business model. If you’re running a digital business or international service company, a free zone might be sufficient. But if you plan to operate locally or work with government contracts, mainland becomes necessary.
Most founders underestimate this decision and later face restructuring costs. That’s avoidable if the setup is done correctly from the beginning.
Reputation and Credibility
Beyond operational and tax benefits, the UAE also provides a strong reputational advantage. Having a company registered in Dubai or Abu Dhabi often enhances credibility when dealing with international partners.
Clients and investors tend to view UAE-based companies as more stable and globally oriented compared to entities registered in offshore or less regulated jurisdictions.
This matters especially in industries like:
Finance and consulting
E-commerce and trading
IT and digital services
A well-structured UAE company can significantly improve your positioning in competitive markets.
Banking and Financial Infrastructure
Opening a corporate bank account has become more complex globally, and the UAE is no exception. However, compared to many jurisdictions, it still offers relatively accessible banking solutions—if your structure and documentation are prepared correctly.
Key considerations include:
Clear business activity
Transparent ownership structure
Proof of business operations
Compliance with AML requirements
Many entrepreneurs fail at this stage not because the system is broken, but because they approach it unprepared. Proper planning significantly increases approval chances.
Scaling Opportunities
The UAE is not just a place to register a company—it’s a platform for scaling.
The country actively supports:
Startups and innovation hubs
Venture capital and investment funds
Tech and digital transformation initiatives
Dubai, in particular, has become a hotspot for founders building global products. Access to capital, talent, and infrastructure creates an environment where scaling is not just possible—it’s expected.
However, there’s a blind spot many entrepreneurs have: they move to the UAE expecting growth to happen automatically. It doesn’t. The environment amplifies good strategies, but it also exposes weak ones.
If your business model is flawed, the UAE won’t fix it—it will just make the problems more expensive.
Cost Considerations
While the UAE offers numerous advantages, it’s not a “cheap” jurisdiction.
Typical costs include:
Company registration fees
License renewals
Office requirements (depending on structure)
Visa costs
This is where many people miscalculate. They focus on tax savings but ignore operational expenses. The result? A setup that looks good on paper but doesn’t make financial sense.
The correct approach is to evaluate total cost vs. total benefit—not just taxes.
Long-Term Perspective
The biggest mistake entrepreneurs make when entering the UAE is treating it as a short-term hack rather than a long-term strategic move.
If you approach it purely as a tax-saving tool, you’ll likely:
Underinvest in structure
Ignore compliance
Face issues with banks or authorities
But if you treat it as a base for international growth, the UAE becomes one of the most powerful jurisdictions available today.
Final Thought
The UAE isn’t a magic solution—but it’s one of the few places where business, tax efficiency, global access, and infrastructure align at a high level.
Most people either overestimate it (“it solves everything”) or underestimate it (“just another offshore”). Both views are wrong.
The real advantage comes from execution:
Choosing the right structure
Setting up properly from day one
Aligning your business model with the environment
If done correctly, the UAE doesn’t just optimize your business—it changes the trajectory of it.
Visitors look at a South Korea-developed innovative small modular reactor model during this year’s International Nuclear Energy Expo at the BEXCO exhibition center in Busan, South Korea, 22 April 2026. Photo by YONHAP / EPA
April 22 (Asia Today) — Global nuclear industry leaders gathered in Busan on Tuesday, highlighting the growing role of nuclear power in meeting surging electricity demand driven by artificial intelligence and data centers.
The Korea Atomic Industrial Forum opened its annual conference at BEXCO, bringing together policymakers, industry leaders and researchers under the theme “Nuclear energy for the AI era.”
This year’s event is being held alongside the Pacific Basin Nuclear Conference, which returned to South Korea for the first time in 14 years, and the Busan International Nuclear Industry Exhibition. Organizers expect around 19,000 participants.
The event features representatives from 19 countries and 156 companies, making it the largest exhibition of its kind to date.
Participants emphasized that rapid growth in AI technologies is fundamentally reshaping global energy demand. Electricity consumption by data centers is projected to reach 1,300 terawatt-hours by 2035, while AI-related power demand is expected to grow at an annual rate exceeding 120% through 2028.
To meet this demand, major technology companies have significantly increased investments in nuclear energy, with total spending surpassing $30 billion over the past 18 months.
Government policy is also shifting. The United States has set a target to expand nuclear capacity to 400 gigawatts by 2050 – roughly four times current levels – while about 15 new nuclear reactors are expected to come online globally in 2026.
Keynote speakers included Mesut Ozman of Fermi Nuclear, who is leading an 11-gigawatt nuclear project in Texas, and Tomas Ehler of the Czech Ministry of Industry and Trade, along with other senior officials and industry executives.
The conference also includes sessions focused on Southeast Asia, where countries such as Singapore, Malaysia and Vietnam are exploring nuclear energy adoption.
Discussions are covering a wide range of issues, including reactor lifetime extensions, carbon neutrality, artificial intelligence, energy security, small modular reactors and radioactive waste management.
South Korean companies are also expanding their global footprint. Hyundai Engineering & Construction is participating as an engineering, procurement and construction partner in negotiations for four AP1000 reactor projects, while Doosan Enerbility is supplying key components such as reactor vessels and steam generators.
The Czech Republic is also pursuing an expanded nuclear strategy, aiming to increase the share of nuclear power in its energy mix to as much as 50% to 60% through new projects at Dukovany and Temelin.
As energy demand accelerates in the AI era, industry leaders said nuclear power is increasingly being viewed as a reliable and scalable solution to ensure energy security and meet climate goals.
