AGP Executive Report

AI & Quantum Policy: Egypt will chair Arab AI governance and quantum computing working groups, pushing a unified regional stance on emerging tech. AI Leadership in the Region: Google appoints Turkish engineer Koray Kavukcuoglu as senior VP of AI at DeepMind, signaling continued investment in local talent pipelines. Cyber & Fraud Tech: Visa signs a $2.4B deal to acquire Israeli anti-fraud firm BioCatch, aiming to stop account takeovers and scams earlier using AI-driven risk signals. Defense Tech & Drones: A U.S. war-game analysis flags high-purity aluminum supply as a vulnerability, while Italy removes Israeli firms from a Rome airport counter-drone project. Water & Climate Tech: Rain Enhancement Technologies inks an exclusive Türkiye deal to deploy its WETA platform in water-stressed basins. Energy Corridor Watch (Hormuz): Iran and Oman move toward a 60-day Strait of Hormuz reopening understanding, with shipping routes and fees reportedly under negotiation. Rights & Accountability: HRW says Israel knew Lebanese journalist Amal Khalil was a civilian before striking; HRW also alleges war-crime patterns. Iraq Tech & Services: Students in Iraq report e-learning platforms blocking repeat access unless they repurchase subscriptions; Iraq also appoints an acting IT head at the Ministry of Finance.

Strait of Hormuz Talks: Iran and Oman say they’re making constructive progress on safe transit routes, with agreed geographical coordinates and a joint statement in the final stage—while Tehran insists the strait stays closed to shipping under Iranian control until US interference ends. Markets Watch: The Hormuz headlines are driving risk sentiment: Asian shares cooled after a tech-led surge, oil held near the $70s, and Wall Street stayed near records as investors weigh a possible US-Iran diplomatic breakthrough. US-Iran Tensions: A separate report says Iran-Oman talks are not tied to Trump’s claims of imminent reopening, underscoring how “third parties” and US conduct remain key sticking points. Iraq Digital Payments: Iraq’s central bank and media regulator discussed a digital payments framework, including licensing global platforms and regulating payments to social media influencers. Saudi Tech & Investment: Mannai Information Technology Saudi Arabia opened a Riyadh regional HQ to support Vision 2030 digital transformation. Israel-West Bank Heritage: Israel approved $37M to take control of more than 70 occupied West Bank archaeological sites, including plans for visitor centers and research facilities. Energy & Infrastructure: Iraq-Egypt-Jordan talks in Amman focused on energy and pipeline projects, including the Basra-Aqaba Oil Pipeline and electricity interconnection.

AI & Smart Cities: Dubai climbed to No.2 in BCG’s Intelligent Cities Index, with top performance in AI adoption and smart-city services. Digital Economy & Investment: Saudi Arabia strengthened its Vision 2030 push, rising to 13th globally for FDI in 2025 (SR136bn inbound), while Egypt kept Africa’s top FDI spot for a fourth straight year (US$15.5bn inflows). Healthcare Tech: KFSH in Saudi cut hospital stays for children after minimally invasive congenital heart surgery by 44%. Biotech R&D: Israel’s Silexion Therapeutics reported preclinical progress for SIL204 targeting KRAS-driven cancers, and NeuroThera began a Phase IIb Tourette Syndrome trial site at Yale. Enterprise AI: Orvera AI was shortlisted by Everest Group for voice AI agents in customer experience. Fintech Agents: Payman AI won ICBA ThinkTECH’s Banker’s Choice Award for agentic banking in secure environments. Defense & Tech: Germany delivered Israel’s IMS Drakon submarine (reported €550m), while BiomX acquired a 10% stake in Motomea to bolster drone electric-motor testing. Connectivity & Infrastructure: e& UAE deployed Ciena’s next-gen DWDM network; Iraq reported record internet traffic during Arbaeen (8.63 Tbps capacity). Geopolitics & Security: US-Iran-Oman talks on reopening the Strait of Hormuz edged forward, while Syria temporarily closed Al-Arida border crossing with Lebanon for repairs. Cyber & Critical Services: US authorities warned of Iran-linked cyberattacks on water systems after outages and investigations.

Strait of Hormuz Talks: Iran and Oman say negotiations on safe shipping routes are progressing “positively,” with technical and political discussions focused on defining inbound and outbound lanes—while Iran insists the talks are bilateral and not US-involved. Markets & Energy Spillover: Wall Street hit record highs as AI-linked earnings lifted tech, while crude slid on optimism around Hormuz reopening; oil fell sharply as conflicting claims about US-Iran talks kept traders cautious. Saudi Housing Policy: Saudi Arabia’s cabinet approved a framework letting investors build housing for beneficiaries in exchange for partial land ownership, alongside a one-year extension to fix undocumented property deals. Gaza Mediation Pressure: Egypt, Qatar and Turkey condemned Israel’s latest Gaza strikes as undermining the ceasefire road map, urging US pressure for flexibility. Cybersecurity Risk: US water utilities faced suspected Iranian-linked cyberattacks in late July, with officials still assessing whether any water quality was affected. Robotics in Saudi: Naver plans to export its robot platform to Saudi Arabia, including outdoor delivery and autonomous driving robots, as part of a smart-city push. Archaeology: Egypt’s Supreme Council of Antiquities confirmed a long-used funerary complex near the Mediterranean coast, spanning late pharaonic to Roman-era periods. Defense Tech & Procurement: Ireland’s new Falcon 6X jet reportedly lacks an Elbit-made landing system due to its Israel defense boycott, raising operational concerns in fog. Syria Economy: The IMF says Syria’s recovery is accelerating but remains uneven, with poverty still widespread.

US-Iran Diplomacy Watch: Qatar is mediating a push to reopen the Strait of Hormuz and restart talks, while Iran says it’s only negotiating with Oman on a temporary shipping corridor—UAE flights are mostly normal but some routes remain cancelled. Markets & Energy: Wall Street extended gains on hopes of an Iran deal and strong earnings, while oil slid on de-escalation chatter; Aramco’s profit jumped as it rerouted shipments, warning global refining and supply chains remain exposed. Cyber & AI Security: IBM puts the average Middle East breach cost at $8M in 2026, with AI-enabled attacks driving losses; IBM also flags encryption and security automation as key cost reducers. Israel Tech & Health: QuantiHealth raised $45M to simulate clinical trials with AI; ENvue moved NanoVibronix manufacturing to the US while consolidating R&D in Tel Aviv. Defense Tech: BOS secured $1.9M in air-defense supply orders; Change Agents launched an autonomous counter-drone unit. Regional Tech Policy: Nicosia signed a water-management MoU with Mekorot to cut “untaxed” water and modernize networks.

AI Security Deal: Visa is buying Israeli fraud-detection firm BioCatch for $2.4B, aiming to spot account takeovers and AI-enabled scams before money moves. AI Agents Security: Zenity raised $125M (Series C) to secure autonomous AI agents in production, expanding its “agent security” push as enterprises scale beyond pilots. Cyber & Critical Infrastructure: The FBI warned that Iranian-affiliated hackers have targeted PLCs in water systems across at least seven states, with some attacks degrading operations—urging utilities to cut internet links and tighten remote access. Strait of Hormuz Diplomacy: Trump says US-Iran talks are ongoing and Strait reopening could happen “by tomorrow,” while Iran denies direct talks but says Oman talks are progressing—keeping shipping risk and energy-price pressure in focus. Regional Tech & Transport: Türkiye shipped its first homegrown diesel-electric shunting locomotive to Tanzania, and Qatar’s Hayya platform won a Stevie for government tech innovation. Earthquakes: Egypt reported a 5.5 quake near Sharm el-Sheikh with no casualties. Funding & Markets: Israel’s Zenity deal and broader tech-led rallies came as oil slid on Iran de-escalation hopes.

US-Iran De-escalation Talks: Trump says talks to wind down the Iran war will start Monday after holding off “massive” strikes, while Iran denies any US negotiations and points to Oman talks over Hormuz. Lebanon-Israel Process: US Ambassador Michel Issa urges Lebanon and Israel to agree on a clear, workable implementation process for civilian safety, warning against rushing. Lebanon Border Shelling: Israeli artillery shelling hit Mays al-Jabal in southern Lebanon as UNIFIL’s mission nears its end-of-year uncertainty. Cybersecurity Costs: IBM reports the average data breach cost in the Middle East hit $8m in 2026, with AI-enabled attacks driving faster, cheaper breaches. Fraud Tech M&A: Visa will buy Israeli BioCatch for $2.4b to strengthen behavioral-first fraud detection. Space Tech: UAE’s LEONAV-1 satellite completes a key operational phase for next-gen navigation. AI & Defense Funding: Zenity raises $125m for AI agent security; ParaZero lands an initial DefendAir order for autonomous counter-UAS. Earthquake Watch (Egypt): A strong quake shook Cairo and nearby governorates, sparking widespread social media reactions. Qatar GovTech: Qatar’s Hayya platform wins a Stevie for AI-enabled, automated government service workflows.

Earthquake Watch: A pair of moderate quakes struck Egypt, including a 5.6-magnitude tremor near Sharm el-Sheikh with reports of shaking in Cairo; Egypt’s Red Crescent says no casualties or damage have been reported so far. Ancient Science: Oman’s Dhofar excavation team uncovered a 6,000-year-old stepped pyramid at Khawr Kharfut, pointing to early long-distance links between Arabia and Mesopotamia. Strait of Hormuz Diplomacy: Iran, the US, and Oman are trading claims as talks near “final stages” over Hormuz management; mediators are also pushing a 60-day reopening concept while Iran rejects Trump’s “no agreement” vs “deal parameters” messaging. Gaza Tech & Security Politics: Israel denies it agreed to stop targeting Hamas leaders amid a Gaza disarmament framework, while mediators warn strikes have hit civilians and medical supplies. Cybersecurity: US probes possible Iranian links to cyberattacks on municipal water systems after Minnesota and Michigan reported intrusions affecting operations. Energy & Tech Markets: With Hormuz tensions back in focus, analysts warn prolonged disruption could hit growth and inflation; meanwhile, AI and cloud momentum continues to lift parts of global tech markets.

Critical Infrastructure Cybersecurity: The FBI and EPA warned that malicious hackers remotely tampered with internet-connected controls at water and wastewater systems in at least seven US states, with Minnesota’s attack hitting 30+ utilities and forcing manual operations; federal agencies suspect Iranian-linked actors while attribution remains under investigation. Regional Security & Defense Tech: Reports say Iranian precision drones and missiles destroyed key air-defense assets, including Patriot systems, near Erbil, prompting a rapid US withdrawal; separately, Trump said he will pause a planned Iran strike if a deal is reached that includes reopening the Strait of Hormuz. AI for Telecom Planning: Iraq’s telecom regulator says AI is being used to forecast a 135% Karbala traffic surge for Arbaeen, using data from thousands of towers to help operators add capacity ahead of demand. Innovation & Startups: Israel’s hi-tech sector reportedly cut about 9,500 jobs in the first half of 2026 amid AI-driven restructuring; in Syria, a UAE-backed “My Syria” super app launched with tourism, payments, and cross-border digital payments. Science & Engineering: India delivered its first indigenous expendable turbojet engine for one-time military uses; Türkiye begins competing in the International Nuclear Science Olympiad with a first full team. Local Tech & Heritage: Istanbul is using advanced tree scanning and digital mapping to preserve centuries-old trees and assess internal structural risk.

Iran-US Escalation Watch: Iran’s foreign minister Abbas Araghchi warned of a “decisive and proportional” response to any new US or Israeli strikes, as Tehran also signaled tighter control over the Strait of Hormuz and other choke points. Gaza Tech-Driven Diplomacy: A US-brokered Gaza roadmap frames Hamas disarmament and a technocratic governance handover, but Israel and Hamas still disagree on sequencing and implementation. Cybersecurity Shockwaves: Michigan joined Minnesota in reporting cyberattacks on water systems; officials say systems are operating safely while the FBI investigates and Iran is widely suspected. Google Earth Safety: Google pulled an AI image generator inside Google Earth after researchers showed it could create misleading nuclear plant scenarios, including in Iran. Middle East Defense Tech Jobs: Israel’s defense-tech hiring rose 20% in 2026 even as broader tech layoffs spread, with wages up about 8% amid AI and security demand. Qatar Wellness Export: Qatar is pushing Traditional Arabic and Islamic Medicine to global audiences via wellness resorts, spotlighting prevention and personalized care. Egypt Research Collaboration: GUC and GIU opened a joint research center in Germany with partner universities, aiming to link academic work to industrial innovation.

Lebanon-Israel Tensions: Lebanon’s President Joseph Aoun condemned Israeli blasts near UNESCO-listed Beaufort Castle as a “direct threat” to a US-backed deal, while Israel said it destroyed Hezbollah tunnels there, ahead of further talks in Rome. Gaza Roadmap: Trump called his Gaza “Board of Peace” a breakthrough as Hamas and Israel signal hurdles; the plan hinges on Hamas disarmament and Israel’s withdrawal, with implementation tied to Israel meeting its obligations. Trade Tech: Saudi Arabia and Kuwait advanced a digital customs data exchange and railway/metro cooperation, aiming to speed border clearance and keep rail milestones on track for end-2026. Nuclear Ambitions: Analysts say Saudi-US civil nuclear cooperation could accelerate localization of high-value industries and advanced tech, while also raising strategic stakes. Cybersecurity Watch: Reports say investigators are probing whether Iranian hackers targeted US water systems, including Minnesota, as the war spills into critical infrastructure. Defense & Industry: BAE Systems has started production of Türkiye’s Eurofighter Typhoons, with first deliveries set for 2030. AI Governance: Egypt won leadership roles in Arab AI governance and quantum working groups, pushing regional policy coordination.

Cybersecurity & Critical Infrastructure: The U.S. investigates cyberattacks on Minnesota water systems, but President Trump publicly rejects Iran blame, saying the state and Gov. Tim Walz are “grossly incompetent,” while federal agencies and lawmakers push for answers on possible foreign involvement. Middle East Conflict Tech & Energy: Drone damage to tankers near Egypt’s Damietta port is reviving fears for Suez-linked oil routes, as Iran tensions also push oil higher and weigh on risk assets like Bitcoin. Gaza Tech-Policy Crossroads: Trump’s “Board of Peace” claims a roadmap for Hamas “complete disarmament” and Israeli withdrawal, but Hamas and Israel still dispute sequencing and definitions, leaving implementation uncertain. Regional Security Spillover: Reports say Houthis are expanding in Iraq, and Syria warns Baghdad that strikes from Iraqi soil could trigger wider retaliation. AI & Digital Safety: Google Earth’s new AI image generation feature draws alarm over how easily realistic satellite-style scenes can be fabricated, raising misinformation risks. Trade & Connectivity: Pakistan and Türkiye agree in principle to revive the Islamabad–Tehran–Istanbul freight rail corridor, aiming to turn it into a durable commercial trade link.

Gaza Ceasefire Tech & Governance: Trump says his “Board of Peace” reached a roadmap for Hamas disarmament and a handover of Gaza’s civilian and security control to a new Palestinian technocratic government, while Hamas frames the first step as Israel stopping attacks and withdrawing—experts warn the plan hinges on Israel meeting tough conditions. Cybersecurity & Critical Infrastructure: US officials suspect Iran-linked hackers behind a cyberattack on 30+ Minnesota water systems, with agencies warning water and wastewater controls are a prime target; the incident sparked emergency response and heightened fears of digital sabotage. Defense Tech IPO: Eric Trump-backed Space-Eyes will go public via a $638M SPAC deal, aiming to scale AI counter-drone and geospatial intelligence for government and corporate clients. AI Diplomacy: Iran signed on as a founding member of the World AI Cooperation Organization in Shanghai, signaling a push for international AI collaboration. Turkey Tech & Science: Türkiye’s 12th Judicial Package moves to speed up courts, while Turkish researchers wrapped an Arctic expedition spanning climate, marine ecosystems, space tech, and high-precision positioning. Aviation/Travel Tech: Amadeus reports bookings are improving after the Iran-war hit, though the outlook still depends on whether cancellations were a one-off catch-up. Israel Tech for Fire Safety: Israel began testing an AI wildfire-detection drone system designed to spot fires within minutes and alert emergency crews in real time.

Gaza Ceasefire Talks: Hamas says it has agreed with Israel on Hamas disarmament and a phased Israeli withdrawal, with a Palestinian technocratic committee set to oversee arms storage as Trump calls it a “historic” framework. Cybersecurity & Critical Infrastructure: Minnesota reports coordinated cyberattacks on 30+ water systems, with officials investigating whether Iran-linked hackers were behind the intrusions that forced some utilities into manual operations. Egypt Drone Strike Review: Egypt is analyzing drone fragments from the Damietta port attack that sparked fires on gas vessels, with leaders warning against speculation and “regional escalation.” Maritime Security Push: Saudi Arabia hosted talks to advance a 43-country multinational maritime defense alliance for the Red Sea and Bab al-Mandab, targeting threats to shipping and energy infrastructure. Public Opinion on Iran War: A new AP-NORC poll finds about two-thirds of Americans say the Iran war isn’t worth fighting, while Trump’s Iran-handling approval slips. Tech Market Signals: Reports highlight rapid growth in foldable smartphones and continued demand for networking gear like Ethernet switches as regional instability reshapes business planning.

Iran–US Escalation: Iran’s IRGC claimed it hit the US F-35 base at Jordan’s al-Azraq after US strikes on Qeshm Island, saying three jets were destroyed; the US and Jordan haven’t confirmed. Regional Shipping & Energy Risk: Egypt said a drone caused a fire at Damietta port involving US-owned tanker Energos Winter and another vessel, as Hormuz and Red Sea fears keep oil volatile. Diplomacy Push: Pakistan reiterated it’s doing “utmost” to restart US-Iran talks under the Islamabad MoU, urging restraint as attacks continue. Defense Tech Shift: Israel signaled plans to build its own stealth fighter and autonomous combat aircraft within a decade, aiming to reduce reliance on US aid. AI in Finance (Egypt): Egypt’s FRA cleared two AI insurance projects for its regulatory sandbox, including an AI assistant and voice agent for customer service. AI Infrastructure (MENA): Sagtec expanded into AI-ready data center management via a Hong Kong partner, targeting mission-critical AI services across Southeast Asia. Markets & Rates: The Fed held rates, keeping borrowing costs high amid Middle East uncertainty; the Bank of England also held, warning energy-driven inflation risks. Human Trafficking Research (Bahrain): Bahrain opened a national research competition to fund studies on combating human trafficking.

US-Iran Escalation Hits Markets: The Fed held rates steady while renewed US-Iran tensions sent oil up about 7% and dragged tech stocks lower, with gold staging a sharp intraday rebound after briefly slipping below $4,000. Middle East Shipping Risk: A suspected drone strike sparked fires at Egypt’s Damietta port involving gas vessels, raising fears for LNG supply routes as the conflict widens. Red Sea “Tolls” Plan: Yemen’s Houthis are reportedly considering charging transit fees through the Bab el-Mandeb, mirroring Iran’s Strait of Hormuz approach and adding a new pressure point for global shipping. AI Governance Gap in the Region: A Kiteworks survey finds only 7% of Middle East organizations rank AI regulation as a top compliance concern, with the region scoring lowest on AI governance readiness. Saudi Tech & Telecom Moves: GSMA highlights strong Saudi 5G performance and investment drivers, while iTANZ expands into Saudi Arabia via a wholly owned entity. Defense Tech & Policy: HHS unveiled a policy to end federal funding for “dangerous” gain-of-function research, tightening oversight for high-risk life sciences work. Israel-US Security Talks: Axios reports Netanyahu met Trump to discuss Iran strategy options, including diplomacy, sanctions, and military approaches. Regional Tech/Business: BCS Technology joined Anthropic’s Claude Partner Network, aiming to help enterprises deploy Claude across the Middle East and beyond.