The European Union has selected the French city of Lille as the headquarters of its new Customs Authority, marking a major step in the bloc’s efforts to modernise its trade and customs systems.
The decision follows a competitive bidding process involving several European cities, including Rome, Warsaw, The Hague and Bucharest. In the final round, Lille secured the position, reinforcing France’s central role in shaping the future of EU customs operations.
The new authority is expected to be established in 2026 and could become fully operational by 2028, although timelines remain subject to final negotiations.
A Central Hub for EU Customs Reform
The creation of the EU Customs Authority is part of a broader overhaul of the EU customs framework. The reform aims to address growing challenges linked to rising trade volumes, fragmented national systems and the rapid expansion of e-commerce.
In particular, the surge in low-value shipments and cross-border online trade has placed increasing pressure on existing customs infrastructure. The new authority is expected to play a key role in improving coordination, strengthening enforcement and supporting a more unified approach across member states.
Beyond enforcement, the authority will also contribute to the development of a more digital and data-driven customs system, aligning with the EU’s wider strategy to modernise trade operations.
Why Lille Was Selected
Lille’s selection reflects both strategic and operational advantages. Located at a key crossroads of European trade routes, the city offers strong logistics connectivity and proximity to major markets, including the UK and Northern Europe.
France also highlighted its experience in managing large trade flows and its established customs infrastructure as part of its bid. The country remains one of the EU’s primary entry points for goods, handling a significant share of incoming parcels.
In addition, Lille presented a ready-to-use infrastructure plan and committed to supporting operational costs, strengthening its position in the final decision process.
What This Means for E-Commerce and Trade
The establishment of the EU Customs Authority comes at a time when global trade is becoming increasingly complex. Geopolitical tensions, shifting tariffs and the continued rise of e-commerce are forcing governments to rethink how goods are monitored and regulated.
For e-commerce businesses, the move signals a shift toward more structured and centralised customs processes. Combined with upcoming regulatory changes such as the removal of de minimis thresholds, the EU is moving toward tighter control over cross-border flows.
As previously highlighted in WORLDEF’s coverage of customs and e-commerce trends, the future of cross-border trade will be defined less by speed alone and more by compliance, data accuracy and operational resilience.
The decision to base the authority in Lille underlines the EU’s intention to build a more integrated and technologically advanced customs system. For businesses operating across borders, this marks another step toward a more regulated, but also more predictable, trade environment.
The European Union (EU) is preparing to remove its de minimis threshold, a decision that will reshape how cross-border e-commerce operates across the region. For UK-based brands, the change goes beyond regulation. It directly affects pricing, logistics, and the overall customer journey.
For years, shipments valued under €150 could enter the EU without customs duties. This allowed brands to keep costs low and move goods quickly across borders, supporting the rapid growth of direct-to-consumer models. That advantage is now coming to an end.
From July 2026, all goods entering the EU will be subject to customs duties, regardless of value. A simplified flat-rate duty, expected to be around €3 for low-value shipments, will replace the previous exemption. The result is clear. Small parcels will no longer benefit from duty-free treatment.
Rising Costs and Changing Customer Expectations
The shift is part of a broader effort by EU regulators to bring more control and balance to the market. As cross-border volumes have surged, authorities have moved to close gaps in the system, improve tax collection, and create fairer conditions for domestic retailers.
For UK e-commerce brands, the impact will be immediate. Products that once moved across borders with minimal cost will now carry additional charges, putting pressure on already tight margins. This is particularly relevant for low-value, high-volume categories where even small cost increases can affect profitability.
There is also a direct link to customer experience. Higher landed costs, especially when passed on at checkout or delivery, can reduce conversion rates and increase cart abandonment. What used to be a seamless cross-border purchase may become more complex and less predictable for consumers.
Operational Pressure Is Increasing
At the same time, operational expectations are rising. Every shipment will require accurate and complete customs data, including product classification, origin, and declared value. As all goods fall under full customs procedures, enforcement is expected to become stricter.
For many brands, this means moving away from simplified processes and investing in more structured compliance systems. As previously highlighted in WORLDEF’s coverage of global e-commerce regulation shifts, cross-border trade is becoming increasingly defined by compliance, transparency, and operational precision rather than speed alone.
How Brands Are Preparing for 2026
With the 2026 deadline approaching, brands are starting to rethink their strategies. Pricing models need to be recalculated to reflect new duty structures. Shipping approaches, particularly the balance between delivering duties paid upfront or passing costs to the customer, are becoming more critical.
Product strategies are also under review. Some low-value items may no longer be commercially viable under the new conditions, pushing brands to reassess their assortments. At the same time, interest in EU-based fulfillment is growing, as local distribution offers a way to reduce friction and maintain delivery performance.
The removal of de minimis is part of a wider global shift. As international e-commerce continues to scale, governments are moving toward more controlled and transparent systems. Duty-free thresholds are gradually disappearing, replaced by frameworks designed to manage volume, ensure compliance, and protect local markets.
The change is coming fast. For UK brands, adapting early will not just reduce risk, it will define their ability to compete in a more structured and cost-sensitive e-commerce environment.
Sharjah’s innovation ecosystem is gaining momentum as the Sharjah Research, Technology and Innovation Park (SPARK) continues to attract startups and technology-driven businesses at scale.
In the early months of 2026 alone, SPARK recorded more than 1,200 licensing transactions, including new company formations and renewals. The steady inflow highlights sustained demand from startups and innovation-focused firms looking to establish and expand operations in the UAE.
The growth builds on a broader expansion of the ecosystem, which now includes more than 7,500 companies ranging from early-stage startups to global technology firms.
Startup Momentum Holds Despite Global Uncertainty
The continued rise in licensing activity comes at a time of global economic and geopolitical uncertainty. Despite these conditions, SPARK is seeing consistent interest from companies investing in long-term growth.
The park’s leadership has emphasized a shift toward scaling innovation into real economic value, with a focus on infrastructure, partnerships and commercialization. The model is designed not only to support early-stage startups but also to help companies grow beyond incubation and enter global markets.
Ecosystem Expansion and Global Positioning
SPARK’s ecosystem has expanded significantly, supported by partnerships with more than 30 local and international entities. These collaborations are helping connect startups with global markets, research institutions and industry networks.
New initiatives are also shaping the next phase of growth. The launch of BASE39, a dedicated hub for creative industries, signals a broader diversification beyond traditional technology sectors. The move aims to support design-led businesses and emerging talent, adding depth to the innovation ecosystem.
At the same time, international outreach remains a key driver. SPARK is actively working with global markets such as China and India to attract companies seeking entry into the UAE and the wider Middle East.
What This Means for the Regional E-Commerce Ecosystem
The rapid growth of SPARK reflects a broader shift in how innovation hubs compete globally. The focus is no longer limited to attracting startups, but on building integrated ecosystems that support scaling, partnerships and market access.
For e-commerce and technology businesses, this signals increasing opportunities in the UAE as a gateway to regional markets. With infrastructure, policy support and international connectivity aligned, Sharjah is strengthening its position as a hub for research, development and commercialisation.
As previously highlighted in WORLDEF’s coverage of global e-commerce expansion, ecosystems that combine innovation with scalability are becoming central to long-term growth strategies.
The pace of activity in early 2026 suggests that Sharjah’s approach is gaining traction. For startups and tech companies, the region is no longer just an entry point — it is becoming a destination for building and scaling global businesses.
In this interview, we had the privilege of speaking with H.E. Mr. Lütfullah Göktaş, Ambassador of the Republic of Türkiye to the United Arab Emirates. We are grateful for his time and for sharing his thoughtful perspectives on the evolving Türkiye–UAE relationship. The conversation offers valuable insights into strategic partnership, digital trade, investment, and technological cooperation, while highlighting how shared visions and complementary economic strengths are shaping a deeper and more resilient bilateral framework.
UAE–Türkiye Strategic Outlook
The UAE and Türkiye have deepened their economic relationship significantly in recent years. How does the UAE view Türkiye as a partner in digital trade and the new economy?
I can approach this question from both perspectives because the viewpoints of Türkiye and the UAE are quite similar. Both nations view each other as beacons of stability in a volatile region. This alignment is not limited to the political sphere; it extends to financial, commercial, and investment sectors, where Türkiye and the UAE support one another’s endeavors and complement their respective future visions.
His Excellency President Recep Tayyip Erdoğan and His Highness President Sheikh Mohamed Bin Zayed Al Nahyan agreed to elevate Türkiye-UAE relations to the level of strategic partnership in 2023. The first meeting of the “High-Level Strategic Council” convened in Ankara last July, resulting in the signing of seven agreements, primarily in the fields of investment and economics.
The signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2023 stands as the most robust testament to the flourishing relations between Türkiye and the UAE. Facilitated by the favorable environment created by this agreement, our bilateral trade volume doubled in 2023, exceeding $20 billion. In the following years, as UAE Minister of Foreign Trade His Excellency Thani Al Zeyoudi has stated, bilateral trade figures have reached even higher milestones, surpassing $40 billion.
Bilateral investments have become another cornerstone of our developing economic ties. Turkish companies have undertaken 149 projects worth $17.7 billion, making the UAE the 10th most important country globally for Turkish international contracting services.
These figures serve as concrete evidence of the complementary and mutually beneficial nature of the Turkish and Emirati economies. Our strategic partnership, expanding across commercial, investment, and financial fields, generates fruitful outcomes not only for our two nations but for the wider region and beyond as well. Rooted in the mutual benefit of the two countries and strategic visions of His Excellency President Erdoğan and His Highness President Sheikh Mohamed, our collaboration paves the way for a stable and secure future in a world where volatility and uncertainty have become the new norm.
What distinguishes Türkiye as an attractive destination for UAE investors and tech-driven companies?
Türkiye’s attractiveness for UAE investors lies in the rare convergence of scale, capability, and strategic geography—a combination that few markets currently offer in one package.
Türkiye is one of the largest consumer markets in its wider region, with over 85 million people, high digital adoption, and a consumption profile that supports rapid scaling of platforms, marketplaces, and digital services. For UAE investors accustomed to building regional champions, Türkiye provides both a substantial domestic base and a springboard to adjacent markets.
Türkiye has evolved into a production-plus-technology economy, rather than a purely consumption-driven one. Unlike many emerging markets, Türkiye combines advanced manufacturing, strong industrial supply chains, and a growing software and digital services layer. This allows UAE tech-driven companies not only to sell into Türkiye, but to build, test, and export from Türkiye, particularly into Europe, MENA, and Central Asia.
Thirdly, cost-efficiency with sophistication is a major differentiator. Türkiye offers globally competitive engineering, product, and operations talent at costs that remain attractive compared to Western Europe or even parts of Eastern Europe. For UAE investors facing rising global tech costs, Türkiye represents a market where capital can be deployed more efficiently without sacrificing quality or execution speed.
Another critical factor is geostrategic positioning. Türkiye sits at the intersection of multiple trade corridors and time zones, enabling near-real-time operational overlap with Europe, the Gulf, and Asia. For UAE companies building cross-border platforms—whether in e-commerce, fintech, logistics, or SaaS—this makes Türkiye an ideal operational and regional coordination hub.
Finally, there is a strategic alignment of long-term visions. UAE investors increasingly favor partnerships that deliver technology transfer, ecosystem development, and regional integration rather than short-term financial returns. Türkiye’s policy focus on high-value foreign direct investment, digitalization, and export-oriented growth resonates strongly with this approach.
In summary, Türkiye stands out not because it offers a single advantage, but because it brings together scale, talent, industrial depth, and regional reach in a way that aligns naturally with the UAE’s ambition to build globally competitive, tech-enabled platforms.
CEPA & Digital Market Integration
How do you see CEPA transforming bilateral e-commerce flows, especially by lowering barriers and enabling faster cross-border transactions?
The Türkiye-UAE Comprehensive Economic Partnership Agreement (CEPA) represents a key driver in accelerating bilateral e-commerce. By reducing regulatory and operational barriers, simplifying customs processes, and enhancing transparency, CEPA lowers the cost and complexity of cross-border online trade. This is especially impactful for small and medium-sized enterprises and digital startups, enabling them to access each other’s markets more easily while benefiting from Türkiye’s strong production and e-commerce capabilities and the UAE’s role as a global logistics and fintech hub.
At the same time, CEPA facilitates faster and more secure cross-border transactions by improving trade facilitation, logistics efficiency, and digital trade frameworks. Clearer rules on electronic payments, data flows, and consumer protection help build trust and encourage businesses to scale their operations with confidence. Beyond increasing transaction volumes, the agreement lays the foundation for a deeper digital partnership, positioning Türkiye and the UAE to strengthen regional e-commerce connectivity and jointly expand into third markets.
UAE Investments in Türkiye
Türkiye investments in UAE continue to grow across different sectors. What long-term strategic priorities guide these investments?
I can name multiple priorities. Nevertheless the most significant ones are: Strengthening the mutual development in the fields not only crucial for today, but also for the future; empowering the stability to foster a fertile environment for our business people to grow, cooperate and support our industries to innovate products for the benefit of the third parties; and last but not least, collaborate in the future technologies that will generate outcomes beneficial not only for Türkiye and the UAE, but also for the whole world.
In this respect, I can proudly state that we have already made significant progress towards these objectives. Currently, there are multiple data center projects in which UAE initiatives are investing in Türkiye. Simultaneously, Turkish companies are undertaking the Dubai Metro Blue Line project. DP World and AD Ports are leveraging Türkiye’s strategic location by collaborating with their Turkish partners on long-term logistics investments. Additionally, our multilateral cooperation with Iraq and Qatar on the “Development Road Project” elevates our solidarity to a playmaker position and is redefining the rules of global supply chain routes.
However, these are merely the first steps of our robust cooperation. We still have a long way to go and significant potential to fulfill in sectors such as tourism and hospitality, pharmaceuticals, manufacturing, food and agriculture, and advanced technologies and so on. Thanks to the cordial mutual relations between our Presidents, we are working diligently to pave the way for our business leaders, assisting them in carrying the flag of both nations in the field of economic diplomacy.
How do UAE companies perceive Türkiye’s digital infrastructure, talent pool, and entrepreneurial ecosystem?
UAE companies generally view Türkiye’s digital infrastructure as reliable, evolving, and capable of supporting long-term growth. The country has made steady progress in digital connectivity, payments systems, and technology adoption, which provides a supportive framework for modern business operations and cross-border collaboration.
Türkiye’s talent pool is widely recognized as one of its key strengths. The availability of well-educated, adaptable, and internationally experienced professionals contributes significantly to investor confidence. This human capital, combined with a strong culture of entrepreneurship, supports innovation and encourages the development of new business models and partnerships.
From the perspective of UAE companies, Türkiye’s entrepreneurial ecosystem reflects a growing maturity. It demonstrates not only creativity and ambition, but also an increasing capacity to scale and integrate with regional and global markets. This makes Türkiye a natural partner for UAE businesses seeking to expand their regional footprint through cooperation rather than competition.
What opportunities exist for collaboration between e-commerce platforms in the UAE and Turkish sellers looking to scale regionally?
The UAE’s advanced marketplaces, digital infrastructure, and logistics capabilities provide an ideal gateway for Turkish businesses to access wider regional markets, enabling faster entry, efficient fulfillment, and improved delivery performance. Through partnerships in areas such as seller onboarding, digital payments, marketing, data analytics, and shared fulfillment solutions, Turkish companies can scale more effectively while UAE platforms diversify their offerings with high-quality Turkish products. These collaborations go beyond immediate commercial gains, contributing to a more integrated and resilient regional e-commerce ecosystem that benefits both countries.
Innovation, Logistics & New Economy Sectors
With the rise of AI, last-mile delivery innovations, and digital logistics corridors, how do you see the next stage of UAE–Türkiye cooperation unfolding?
The next stage of cooperation between the United Arab Emirates and Türkiye will be shaped by a shared understanding that technology is a key enabler of sustainable economic partnership. As global trade becomes increasingly digital, both countries recognize the importance of aligning their strengths to support innovation, efficiency, and inclusive growth.
Artificial intelligence will sit at the center of this transformation. Ongoing data center investments by UAE players including G42’s Khazna, Gulf Data Hub’s Castle Investments and Damac’s Edgnex combined over USD 1 billion is a great testament of how AI will shape the future of this rapid transformation.
In this context, advances in artificial intelligence, digital logistics, and smart delivery solutions should be viewed not merely as technological developments, but as tools that deepen economic connectivity between our two nations. These technologies allow businesses—large and small—to operate more efficiently, reach new markets, and respond more effectively to changing consumer expectations.
The UAE and Türkiye are well positioned to complement one another. The UAE’s role as a regional logistics and digital commerce hub, combined with Türkiye’s strong production capacity and growing digital capabilities, creates a natural foundation for closer cooperation. Together, we can work toward trade corridors that are not only faster, but also more transparent, reliable, and resilient.
Importantly, this next phase of cooperation will be inclusive. By improving digital and logistics infrastructure, we are creating opportunities not just for major companies, but also for small and medium-sized enterprises to participate more actively in cross-border trade. This supports job creation, entrepreneurship, and long-term economic stability in both countries.
Looking ahead, UAE–Türkiye collaboration in digital trade and logistics reflects a broader commitment to partnership, openness, and shared prosperity. By continuing to engage in dialogue, align standards, and encourage collaboration between our private sectors, we can ensure that technological progress translates into tangible benefits for our economies and our people.
The next phase of UAE–Türkiye cooperation will focus on deeper technological and logistical integration. Advances in artificial intelligence create strong potential for joint efforts in areas such as enhanced customer experiences, while innovation in last-mile delivery through smart systems in warehousing and delivery models will improve efficiency and resilience. At the same time, developing digital logistics corridors with real-time data sharing and faster customs processes will further strengthen bilateral trade. By aligning standards and promoting public-private collaboration, Türkiye and the UAE can build seamless supply chains that connect multiple regions and position both countries as leaders in digital trade and smart logistics.
What role do events like WORLDEF Dubai 2026 play in bringing the two economies closer together in e-commerce, innovation, and investment?
They play an important role in strengthening ties between our two economies by creating a shared platform for collaboration in e-commerce, innovation, and investment. By bringing together policymakers, industry leaders, startups, and investors, these gatherings encourage the exchange of expertise, showcase new technologies, and help align strategic priorities. They also translate dialogue into tangible partnerships, offering Turkish companies greater access to regional capital and markets while enabling UAE stakeholders to engage directly with Türkiye’s dynamic digital and production ecosystems. In this way, such events function as strategic connectors that deepen bilateral cooperation and accelerate cross-border growth.
Southeast Asia is moving closer to a landmark agreement that could redefine the future of e-commerce and digital trade across the region.
As the Philippines leads ASEAN in 2026, negotiations are accelerating around the ASEAN Digital Economy Framework Agreement (DEFA) – a comprehensive regional pact designed to harmonize digital trade rules, reduce barriers, and strengthen cross-border e-commerce.
A Unified Digital Market in the Making
The proposed agreement aims to create a more integrated digital economy by aligning regulations across ASEAN member states. Currently, differences in data governance, cybersecurity, and consumer protection frameworks create challenges for businesses operating across borders.
DEFA seeks to address these gaps by introducing:
interoperable digital systems
smoother cross-border data flows
stronger cybersecurity standards
more efficient digital payments and paperless trade
By simplifying these processes, the agreement is expected to make it significantly easier for businesses – especially SMEs – to expand regionally.
Boosting E-Commerce and SME Growth
One of the key goals of the pact is to unlock new opportunities for micro, small, and medium-sized enterprises (MSMEs), which form the backbone of ASEAN economies.
By reducing operational friction, the agreement could:
lower costs through digitalization
enable faster and safer transactions
expand market access across Southeast Asia
Over time, this is expected to drive job creation, improve digital skills, and support more inclusive economic participation.
A Rapidly Expanding Digital Economy
The urgency behind the agreement is clear. ASEAN’s digital economy is projected to grow rapidly, with estimates suggesting it could reach $2 trillion by 2030.
In the Philippines alone, the digital economy is expected to nearly double in value – highlighting the region’s strong growth trajectory and the increasing importance of digital trade frameworks.
Strategic Priorities: Integration, Trust, and Skills
Beyond trade facilitation, the agreement also focuses on building a future-ready digital ecosystem.
Key priorities include:
establishing trusted and interoperable digital infrastructure
ensuring secure and transparent data exchanges
strengthening workforce skills for digital transformation
These elements are seen as essential to supporting sustainable growth and enabling businesses to scale in an increasingly digital-first economy.
What Comes Next?
ASEAN aims to finalize negotiations and sign the agreement later this year, potentially during the ASEAN Summit in November.
If implemented, DEFA would become the world’s first region-wide digital economy agreement, positioning ASEAN as a global leader in digital trade governance.
Amazon has acquired New York-based Fauna Robotics to strengthen its presence in the humanoid robot market. While the financial terms of the deal have not been disclosed, it was reported that the company’s founding team and employees will join Amazon. This move shows that Amazon is expanding the robotics infrastructure it has built over the years in warehouse automation toward a new generation of robots that interact directly with humans.
At the center of the acquisition is the humanoid robot called “Sprout,” which Fauna Robotics introduced recently. Standing at approximately 3.5 feet tall, the robot was designed to establish safe and friendly interaction in human-dense environments such as homes, schools, and social spaces. Its soft exterior and size, which allows it to communicate at eye level with children, are cited among the main features that distinguish Sprout from conventional industrial robots.
Fauna Robotics Is Used in Research, Education, and Social Robotics
Fauna Robotics had developed Sprout not for carrying heavy loads, but rather for research, education, and social robotics applications. The presence of brands such as Disney among its early users also points to the product’s potential for entertainment- and experience-focused use. It is stated that Sprout is positioned as an open platform for developers and offers a testing ground for consumer-facing robotics applications.
For Amazon, this acquisition means more than simply adding a new product. Until now, the company had stood out mainly with robot systems used in logistics centers and had announced that it had deployed more than 1 million robots in its warehouse operations.
Amazon Opens a New Chapter in Consumer Robotics
The Fauna Robotics move indicates that Amazon now wants to bring robotics into areas such as customer experience, in-home use, and human-robot interaction. In this sense, the acquisition can also be interpreted as Amazon’s effort to open a new chapter in consumer robotics after Alexa and the unsuccessful iRobot attempt. This final assessment is an inference drawn from the strategic connection between the company’s existing robotics background and the new acquisition.
At a time when Tesla, Figure AI, and other robotics startups are accelerating the humanoid robot race in global technology competition, this acquisition shows that e-commerce giants are also beginning to take more aggressive steps in the field of physical automation. It is not yet clear what kind of product roadmap Amazon will follow with Fauna Robotics; however, it is already evident that Sprout will play an important role in the company’s robotics vision.
In South Africa, the historic farm brand Babylonstoren has transformed into a strong e-commerce player in the ultra-luxury segment under the leadership of Karen Roos, the wife of tech billionaire Koos Bekker.
Karen Roos, the wife of tech billionaire Koos Bekker, became the name that grew Babylonstoren digitally rather than limiting it only to physical stores. In 2007, Roos and Bekker purchased the historic Babylonstoren farm in the Franschhoek Valley. Afterwards, the 17th-century site was restored, and the brand became one of South Africa’s most respected premium brands with its gourmet food, personal care, and lifestyle products.
Babylonstoren Transformed from a Farm into a Luxury Digital Store
Today, Babylonstoren stands out not only as an agriculture and tourism brand, but also as a strong online sales platform. The company sells handmade baked goods, nuts, chocolates, granola, meat products, essential oils, soaps, candles, linen products, and ceramic serving products.
One of the most striking aspects of the brand is that it largely controls its own supply chain. The products are grown or produced on the farm and then delivered directly to customers through its own platform. The company also offers free delivery across South Africa and next-day delivery options in cities such as Cape Town, Johannesburg, and Pretoria.
Targeting Recurring Revenue with a Subscription Model
Babylonstoren’s online store was designed to look more like a digital lifestyle magazine than a classic e-commerce website. Its strong visual language supports the brand’s image of luxury and exclusivity.
The subscription system also plays an important role in the platform’s growth. Membership models such as the Wine Club, Bath & Body Box, and seasonal special product boxes provide the brand with the opportunity to generate recurring revenue. Although official financial data has not been disclosed, business intelligence platforms rank Babylonstoren among South Africa’s leading online stores.
Koos Bekker’s Wealth Stands at Around $3.4 Billion
Koos Bekker is known as one of South Africa’s best-known businessmen. Bekker, who is one of the strategic figures behind the M-Net, DStv, and MultiChoice brands, also stands out as the leader who transformed Naspers into a global technology giant. According to Forbes’ real-time billionaires list, his net worth stands at around $3.4 billion.
Corporate strategy is entering a more volatile era in 2026, as global business leaders warn that uncertainty is no longer a temporary disruption but a permanent operating condition. According to insights shared at the World Economic Forum’s Industry Strategy Meeting in Munich, companies are being forced to rethink how they plan, invest and grow amid geoeconomic fragmentation, AI disruption, energy volatility and mounting workforce pressure.
The meeting brought together around 330 strategy leaders, alongside policymakers and academics, to discuss what serious strategy leadership now requires. Rather than simply naming the risks, participants focused on six urgent needs that are reshaping the corporate agenda in 2026.
Global Strategy Must Adapt to a New Baseline of Uncertainty
One of the clearest messages from the meeting was that the old foundation of corporate planning has eroded. Stable trade rules, predictable capital flows and relatively reliable multilateral structures can no longer be taken for granted. For many companies, uncertainty has become the baseline rather than the exception.
This shift is already changing how businesses design supply chains and allocate capital. Cost efficiency alone is no longer enough. Companies are increasingly prioritizing resilience, diversification and the ability to respond quickly to geopolitical shocks and tariff dynamics. Scenario planning, once treated as a periodic exercise, is now becoming a core strategic discipline.
AI Strategy Moves Beyond Pilots Toward Proven Business Value
AI was another major theme at the meeting, but the conversation has clearly evolved. In 2026, the challenge is no longer experimenting with AI tools. The focus is now on proving real business value.
Leaders argued that many organizations spent the last year running pilots and proofs of concept without generating meaningful returns. The next phase requires a more strategic approach, starting with business outcomes and redesigning processes around them. Executives also stressed that top-down vision alone is not enough. AI adoption must also be earned from the bottom up through trust, explainability and employee involvement.
This marks a broader shift in how AI is being positioned inside companies. Rather than being treated as an isolated innovation layer, AI is increasingly becoming part of the operational flow of work itself.
Digital Sovereignty Becomes a Competitive Question
Another major issue raised by strategy leaders was sovereignty. In practice, this goes far beyond regulation. It includes questions around where data is stored, whose infrastructure companies depend on, and whether proprietary business logic remains under enterprise control.
This debate is becoming especially important in Europe, where leaders pointed to the gap between innovation and large-scale commercialization. Rather than calling for isolation, participants emphasized the need for standards and regulatory frameworks that allow companies to use global technologies without losing control over critical systems and data.
Workforce Transformation Is Now a Leadership Challenge
The workforce transition also emerged as a central strategic issue. Participants repeatedly argued that the biggest barriers to AI deployment are not purely technical. They are organizational, cultural and psychological.
That means leaders must do more than introduce new tools. They need to build trust, reshape incentives and guide employees through a changing work environment. Discussions also highlighted the broader structural challenges of retraining, policy coordination and market signals that still reward labor reduction more than long-term transformation.
Energy Strategy and Long-Term Thinking Return to the Forefront
Energy volatility added another layer of pressure to the discussion. Participants highlighted grid infrastructure, transition planning and climate-related risk as central issues for long-term competitiveness. New investment decisions are increasingly being judged not only by growth potential, but also by resilience, affordability and alignment with sustainability goals.
At the same time, leaders stressed that strategy cannot become entirely reactive. Even in a fast-moving environment, companies still need long-term thinking. The challenge is balancing immediate disruptions with a broader view of industrial competitiveness, technological change and planetary boundaries.
Outlook for Global Strategy in 2026
The World Economic Forum’s Industry Strategy Meeting makes one thing clear: the rules of strategy have changed. In 2026, success depends less on operating in stable conditions and more on building organizations that can adapt continuously.
For global businesses, the new strategic agenda is no longer just about growth. It is about resilience, AI execution, workforce leadership, energy readiness and the ability to make decisions in a structurally uncertain world.
Artificial intelligence is no longer an experimental technology but a core driver of organizational transformation, accelerating digital transformation across industries. According to the latest report by the World Economic Forum, companies across industries are moving beyond pilot projects and integrating AI into their core business models.
This shift marks a new phase where AI is not only improving productivity but fundamentally reshaping how organizations operate, compete and create value.
AI Moves from Experimentation to Enterprise-Wide Adoption
One of the key insights from the report is that AI adoption is accelerating across all business functions. Organizations are no longer using AI in isolated use cases but embedding it across customer experience, operations and decision-making processes.
This transition requires a broader transformation of operating models. Companies that successfully scale AI are those that align technology with strategy, data infrastructure and workforce capabilities.
Rather than focusing on short-term efficiency gains, leading organizations are redesigning workflows around AI from the ground up.
Workforce Transformation Becomes a Strategic Priority
AI is significantly changing the nature of work. Instead of replacing jobs entirely, it is reshaping tasks, requiring employees to adapt to new tools and ways of working.
The report highlights that organizations must invest in reskilling and upskilling to remain competitive. By 2030, a large share of jobs will be transformed by technology, making continuous learning a core requirement for the workforce.
Human-AI collaboration is emerging as the dominant model, where technology enhances human capabilities rather than replacing them.
From Tools to Systems: AI Redefines Operating Models
A major shift identified in the report is the transition from using AI as a tool to treating it as an integrated system.
Organizations are increasingly building AI-driven ecosystems that connect data, processes and decision-making. This requires a redesign of governance structures, workflows and internal coordination.
AI is becoming a foundational layer of business operations, influencing everything from supply chains to customer engagement.
Leadership and Strategy Drive AI Success
The report emphasizes that technology alone does not guarantee success. Leadership plays a critical role in defining how AI is adopted and scaled.
Organizations that achieve meaningful results are those where executives actively drive transformation, align teams and embed AI into long-term strategy.
AI transformation is not a technical upgrade – it is a leadership challenge that requires cultural and organizational change.
Responsible AI and Governance Gain Importance
As AI adoption grows, so do concerns around ethics, transparency and accountability.
The report highlights the importance of responsible AI deployment, ensuring fairness, inclusivity and trust. Organizations must implement governance frameworks that address risks while enabling innovation.
Responsible AI is increasingly becoming a competitive advantage rather than just a regulatory requirement.
Outlook: AI Becomes a Core Business Infrastructure
The findings make it clear that AI is evolving into a general-purpose technology that reshapes entire industries, similar to past innovations like electricity and the internet.
For organizations, the challenge is no longer whether to adopt AI, but how quickly they can transform to capture its full value.
Companies that successfully integrate AI into their operating models, workforce and strategy will be better positioned to compete in an increasingly digital and data-driven global economy.
The decision by UK retailer The Works to exit e-commerce is drawing attention across the retail industry, highlighting a growing shift toward profitability over digital expansion.
After more than a decade of online operations, the company has chosen to close its e-commerce channel and refocus entirely on its physical store network – a move that challenges the assumption that online retail is always essential for growth.
Why The Works Is Leaving E-Commerce
The Works first launched its e-commerce platform in 2012, but online sales never became a core revenue driver. More than 90% of total sales continued to come from physical stores, reflecting strong in-store customer demand.
At the same time, maintaining an online operation introduced ongoing challenges, including:
high operational costs
dependency on third-party logistics
complexity in managing fulfillment
Over time, these factors made it difficult for the company to achieve sustainable profitability online.
Refocusing on What Works
By exiting e-commerce, the retailer aims to simplify its business model and improve financial performance. The move is expected to reduce costs and allow the company to concentrate on its strongest channel – its extensive store network.
Rather than serving as a transactional platform, the company’s website will now act as a product browsing tool, encouraging customers to visit physical stores to complete purchases.
A Strategic, Not Emotional Decision
Industry insight suggests that this move has been under consideration for some time. For retailers operating on tight margins, e-commerce can introduce more pressure than value if not executed at scale.
In such cases, focusing on a store-led strategy can offer:
greater control over costs
improved margins
stronger customer engagement in physical locations
A Wider Signal for Retail?
While global e-commerce continues to expand, The Works’ decision reflects a more nuanced reality:
👉 Digital is not always profitable 👉 Omnichannel is not always necessary
Retailers are increasingly reassessing whether their digital channels truly support long-term growth – or simply add complexity.
What This Means for E-Commerce
The closure of The Works’ online store does not signal a decline in e-commerce itself, but rather a shift toward more disciplined, profit-driven strategies.
As the retail landscape evolves, businesses are moving away from “being everywhere” toward focusing on channels that deliver real value.
For some, that may still be digital-first. For others, like The Works, the answer is clear – back to stores.
