digital economy

Notino Revenue Climbs to €1.76 Billion as European Beauty Demand Remains Resilient

Notino, Europe’s largest online beauty and health retailer, reported revenue of €1.76 billion for its latest financial year, underscoring the resilience of the region’s beauty e-commerce market despite a more challenging retail environment.

The Czech-based company generated 11.5% year-on-year revenue growth during the financial year ending in April 2026, driven by continued expansion across European markets, increasing customer engagement, and sustained demand for premium beauty and personal care products. The results reinforce Notino’s position as one of Europe’s most prominent cross-border online retailers at a time when many e-commerce businesses are experiencing slower post-pandemic growth.

While consumer spending across Europe has remained under pressure from elevated living costs and cautious household budgets, the beauty category has continued to outperform broader discretionary retail. Industry analysts have increasingly pointed to cosmetics, skincare and fragrances as segments that benefit from recurring purchases and strong customer loyalty, providing retailers such as Notino with greater resilience during periods of economic uncertainty.

Strong Recovery After Holiday Season

The company said trading conditions varied throughout the year. Sales growth moderated during the traditionally important Black Friday and Christmas shopping season, reflecting a more competitive promotional landscape and cautious consumer spending. However, momentum accelerated sharply during the opening months of 2026, with revenue growth reaching 27%, signalling renewed demand and effective customer acquisition strategies.

Cross-Border Expansion Continues

Founded in Brno, Czech Republic, Notino has evolved from a regional online perfume retailer into a pan-European marketplace serving customers in 27 countries. Its business model combines centralised logistics with localised websites, language support, regional payment options and tailored marketing campaigns, allowing the company to scale efficiently while adapting to local consumer preferences.

The retailer now serves more than 40 million customers, supported by an omnichannel strategy that extends beyond e-commerce. Alongside its online operations, Notino continues to invest in physical stores, beauty consultation services and mobile commerce, seeking to strengthen customer engagement across multiple touch points. This integrated approach has become increasingly important as retailers compete on customer experience rather than price alone.

Cross-border commerce remains a key pillar of Notino’s expansion strategy. By leveraging a unified logistics network while maintaining localised shopping experiences, the company has been able to enter new markets without the substantial infrastructure investments typically associated with traditional retail expansion. The model also enables greater operational efficiency and inventory management across Europe.

Beauty E-commerce Maintains Momentum

The latest performance reflects broader trends within the European beauty sector, where online sales continue to capture a growing share of consumer spending. Demand for skincare, wellness products and premium fragrances has remained robust, supported by social commerce, influencer marketing and increased digital engagement. These factors have helped offset softer demand in other retail categories and reinforced beauty’s reputation as one of e-commerce’s most resilient verticals.

Outlook

Looking ahead, Notino appears well positioned to capitalise on the continued digitalisation of beauty retail across Europe. With a growing customer base, expanding omnichannel capabilities and strong momentum entering 2026, the company is expected to continue investing in technology, logistics and customer experience as competition intensifies among online beauty retailers.

For the wider European e-commerce industry, Notino’s latest results provide another indication that businesses with strong cross-border infrastructure, local market expertise and diversified customer engagement strategies remain well placed to deliver sustainable growth despite an increasingly competitive retail landscape.

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The EU’s Search to Balance China-origin E-commerce Pressure

Turkish Ambassador Ömer Faruk Doğan writes on the EU’s growing pressure against Chinese e-commerce platforms and its implications for Turkiye.

China, which has made great strides toward dominating world trade, appears to have far exceeded its targets according to the first-half 2026 foreign trade figures. According to data from the China Customs Administration, China’s foreign trade volume in goods reached 3.75 trillion USD in the first six months. Within this framework, China’s exports in the first half of 2026 totalled 2.2 trillion USD, while imports totalled 1.58 trillion USD. In the first six months, China recorded a trade surplus of over 1 trillion USD.

According to the same data, compared with the same period last year, China’s exports grew by 13.4%, while imports grew by 22%. Total trade volume increased by 16.9%. China’s largest markets are led by the United States and the EU.

China’s E-Commerce Surge Puts Pressure on the EU and Turkiye Alike

China is striving to establish dominance not only in goods trade but also in e-commerce, and the EU appears to have been significantly affected by this China-origin e-commerce activity.

According to EU data, China’s e-commerce volume directed toward the European Union (EU) is growing exponentially, particularly influenced by platforms such as Temu and Shein. China’s e-commerce market volume in the EU has reached 167.4 billion dollars, and 91% of low-value packages under 150 euros entering the EU are of Chinese origin. This massive flow toward the EU corresponds to approximately 12 million packages per day. According to European Commission data, 4.6 billion low-value (under 150 euros) e-commerce packages of Chinese origin enter the EU annually, roughly 12 million per day.

China’s share of the EU’s low-price e-commerce segment has reached 91%. Within EU e-commerce, the highest demand is in the clothing and footwear category at 40.31%, followed by consumer electronics and home decoration products.

In order to protect its domestic market and prevent tax losses, the European Union has tightened controls and taxation on e-commerce packages arriving from China. In February 2026, it narrowed the previously applied customs-free exemption for low-value packages and introduced stricter VAT requirements for e-commerce platforms, as well as compliance obligations under the DSA and GPSR. Although these legal regulations placed some downward pressure on China’s growth in the EU market (an estimated 3.2% drag on the annual compound growth rate), they proved insufficient to produce the effect the market expected. For this reason, the EU has increased its pressure on Chinese e-commerce platforms, strengthening import controls on goods from brands such as Temu and Shein and raising taxes on packages valued at under 150 euros.

As this new measure, even the EU’s introduction of a flat 3-euro tariff on packages previously falling below the 150-euro customs threshold failed to produce the desired effect, prompting a serious review of the business models of Chinese online retail giants AliExpress, Shein, and Temu, with the aim of exerting real impact on these platforms.

This is regarded as the latest step in the official proceedings initiated in 2024 over violations of the European Digital Services Act (DSA). The Commission has stated that it has formed the view that AliExpress failed to establish an effective system for detecting and removing products that do not comply with legal standards, and that the platform, taking advantage of delays and possible disruptions arising from the intensity of EU controls, treated the matter lightly.

According to the European Commission’s investigation, despite repeated EU warnings, AliExpress continued to host large quantities of illegal products, including dangerous toys and hazardous cosmetics, leading the Commission to conclude that the platform had exploited the EU’s understanding and approach. The Commission further stated that it had determined AliExpress failed to properly enforce its sanctions policy, allowing stores that sold illegal products to continue actively selling on the platform even after being penalised.

It was also emphasised that the platform’s brand authorisation system, intended to prevent the sale of counterfeit goods, had proven ineffective, as it was being circumvented to offer counterfeit products despite protective measures for brands and sellers, and that insufficient measures had been taken to prevent such abuse. Taking all of this into account, on Monday, July 20, the European Commission decided to impose a 550 million-euro fine on AliExpress, which has 193 million users, for violating the Digital Services Act (DSA).

Prior to this new decision, at a session held before the European Parliament on March 23, experts from the Commission stated that following an examination of more than 30,000 products shipped by Shein, AliExpress, Temu, and Amazon, failure rates were found to be very high across many categories: 65% of cosmetics shipments, 60% of personal protective equipment shipments, and 63% of food supplement shipments were examined, and laboratory tests found health or safety risks in 81% of the products tested.

On the other hand, our country too is under trade pressure from China. According to recent statistics, the total foreign trade volume between Turkiye and China has reached approximately $ 53 billion. While Turkiye’s imports from China stand at roughly 49-50 billion dollars, our exports to China remain at 3.3-3.4 billion dollars. In light of these figures, Turkiye’s foreign trade deficit with China has risen above 46 billion dollars.

Within the framework of our Customs Union agreement with the EU, many countries with which we have signed FTAs, having increased their exports on the basis of the advantages Turkiye obtained under those FTAs, have unilaterally revised the agreements on the grounds that the trade balance had turned against them, and have imposed additional customs duties on Turkish-origin consumer goods. Many North African countries can be cited as examples of this.

It is inevitable that, in the long term, the unsustainable imbalance in our bilateral trade with China will have a significant negative impact on our medium-scale manufacturing SMEs, particularly those producing consumer goods. The number of retail chains selling extremely low-priced consumer goods, disconnected from any real cost logic, is increasing significantly across all our provinces, especially in shopping malls.

Although additional customs duties have been introduced for products entering the country via e-commerce by post, this has proven insufficient to curb the cost-detached pressure exerted by China and to restore balance in the domestic market.

Our current Customs Union agreement with the EU, based on Decision 1/95, directly enables Turkiye to adopt a common stance against third countries. It is important to emphasise this point, and it is legally possible for a similar process to be pursued in our own country, based on the laboratory examinations and assessments conducted by the European Commission’s SANCO and related units regarding third-country products.

It is considered an essential requirement that our Ministry of Trade effectively exercise its Market Surveillance and Inspection authority, that the relevant units under our jurisdiction, foremost among them the Turkish Standards Institute (TSE), which plays an active supervisory role in imports, evaluate the matter with the utmost care and fairness, that additional measures parallel to those of the EU be adopted without delay for the protection of both consumers and our SMEs against unfair competition, and that serious initiatives be undertaken to correct the otherwise inexplicable foreign trade deficit in our trade balance with China. It is likewise considered essential that the relevant provisions of the Customs Union Agreement No. 1/95 be evaluated in favor of our country, our consumers, and above all our medium-scale producers, and applied as a means of preventing unfair competition.

Ömer Faruk DOĞAN – Ambassador

UNIEF and HKFEC Explore Strategic Cooperation Across Asia-Pacific

UNIEF General Secretary Burak Yalım Meets with HKFEC to Strengthen Asia-Pacific Collaboration

Burak Yalım, General Secretary of the United E-Commerce Federation (UNIEF), held a productive meeting with Joseph Yuen, Chairman of the Hong Kong Federation of E-commerce (HKFEC), to discuss opportunities for expanding international cooperation and strengthening the global e-commerce ecosystem.

The meeting focused on UNIEF’s vision of bringing together national e-commerce associations under a single global federation that promotes knowledge sharing, cross-border collaboration, and sustainable growth across the digital economy.

A key topic of discussion was the strategic importance of the Asia-Pacific region, one of the world’s fastest-growing and most dynamic digital commerce markets. Both sides exchanged views on the opportunities and challenges facing e-commerce organizations across the region and emphasized the importance of stronger international cooperation among industry stakeholders.

During the meeting, Joseph Yuen expressed HKFEC’s strong support for UNIEF’s mission and shared his willingness to contribute to the federation’s expansion across the Asia-Pacific region. Drawing on HKFEC’s extensive network, he offered to facilitate introductions with leading e-commerce associations, beginning with organizations in Malaysia and Singapore, while also supporting UNIEF’s broader engagement with associations across the wider Asia-Pacific region.

The discussion also highlighted the importance of creating an inclusive international platform that enables participation from industry leaders regardless of language or geography. Both sides agreed that multilingual collaboration, knowledge exchange, and stronger institutional partnerships will play a vital role in advancing cross-border digital commerce.

Building UNIEF’s Regional Network

Burak Yalım shared UNIEF’s long-term vision of establishing a truly global federation that connects national e-commerce organizations through regional committees, collaborative initiatives, and international representation. He also outlined UNIEF’s commitment to strengthening cooperation among associations and fostering a more connected and sustainable global digital economy.

The meeting concluded with both organizations reaffirming their commitment to continued dialogue and future collaboration. As a next step, UNIEF and HKFEC will work together to initiate discussions with e-commerce associations in Malaysia, Singapore, and other Asia-Pacific markets, supporting the federation’s mission of building a stronger and more connected international e-commerce ecosystem.

Qatar’s Digital Payments and E-Commerce Continue Strong Growth in 2026

DOHA, Qatar – Qatar’s digital economy continues to gain momentum as new data from the Qatar Central Bank (QCB) reveals significant growth in e-commerce, point-of-sale (POS), and instant payment transactions during May 2026.

The latest figures highlight consumers’ increasing preference for digital payment methods and online shopping, reinforcing Qatar’s broader strategy to accelerate financial technology adoption and reduce reliance on cash.

Card Payments and E-Commerce Continue to Expand

Card transaction volumes climbed 24% year-over-year, reaching 72.34 million transactions in May 2026. POS payments remained the dominant channel, growing from 42.74 million to 53.82 million transactions compared with the same month last year.

Online e-commerce transactions also recorded robust growth, increasing from 9.45 million to 12.62 million, reflecting the continued expansion of digital retail and growing consumer confidence in online shopping.

In terms of value, total card transactions reached QR24.41 billion, while POS transaction value rose to QR9.82 billion, up from QR8.55 billion a year earlier. Online e-commerce transaction value remained stable at approximately QR3.91 billion, demonstrating resilient consumer spending through digital channels.

Digital Banking Transactions Accelerate

Beyond retail payments, Qatar’s digital banking infrastructure also recorded remarkable growth.

Transactions processed through the Tahweel interbank transfer system surged 58% in value to QR64.24 billion, while transaction volumes jumped 160% year-over-year, reflecting increasing reliance on electronic fund transfers across the country.

Fawran Sees Record Adoption

Qatar’s instant payment platform, Fawran, continued its rapid expansion throughout 2026.

Transaction value increased 159% to QR6.71 billion, while transaction volume climbed 149% to 4.1 million. Meanwhile, registered Fawran accounts reached 3.86 million, highlighting the platform’s growing popularity among consumers and businesses alike.

Qatar Strengthens Its Digital Economy

The latest figures demonstrate Qatar’s accelerating transition toward a digitally driven financial ecosystem, supported by expanding payment infrastructure, growing consumer confidence in electronic payments, and continued investment in financial technology.

As digital commerce, instant payments, and fintech innovation continue to advance, Qatar is reinforcing its position as one of the Middle East’s fastest-growing digital payment and e-commerce markets.

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U.S. Online Retail Sales Surge 14.2% in June as E-commerce Outpaces Traditional Retail

U.S. Ecommerce Delivers Strongest June Growth in Years

U.S. online retail sales accelerated sharply in June 2026, highlighting consumers’ continued preference for digital shopping despite broader economic uncertainty. According to new data analyzed by Digital Commerce 360, e-commerce sales reached $142.67 billion, marking a 14.2% year-over-year increase-the strongest June growth rate in more than four years.

The performance significantly outpaced overall retail sales growth, reinforcing e-commerce’s role as one of the primary drivers of consumer spending in the United States.

Prime Day Promotions Fuel Online Spending

A major catalyst behind June’s exceptional performance was the timing of Amazon Prime Day and competing promotional campaigns from major retailers including Walmart and Target.

The four-day promotional period accounted for 18.5% of total June online sales, demonstrating how large-scale shopping events continue to reshape monthly e-commerce performance. Prime Day’s influence has expanded dramatically since 2020, when consumers spent approximately $10.4 billion during the event.

Retailers increasingly coordinate major discount campaigns around these high-traffic events to capture consumer demand while improving inventory turnover.

Total Retail Sales Continue to Grow

Overall U.S. retail sales also maintained positive momentum.

Total retail sales reached $768.55 billion in June 2026, compared with $720.16 billion during the same month last year. While physical retail remains resilient, online commerce continues to capture a growing share of consumer spending.

Industry analysts note that ecommerce growth is benefiting from improved digital shopping experiences, faster delivery options, competitive pricing, and consumers’ increasing comfort with online purchasing.

Ecommerce More Than Doubles Pre-Pandemic Levels

June’s figures also illustrate how dramatically online retail has expanded since the pandemic era.

Online retail sales have climbed from $60.78 billion in June 2019 to $142.67 billion in June 2026-more than doubling in just seven years. The latest results also exceed June 2020 levels by nearly $60 billion, underscoring the lasting structural shift toward digital commerce.

Rather than returning to pre-pandemic shopping habits, consumers have continued integrating ecommerce into everyday purchasing across multiple product categories.

Outlook: Digital Commerce Maintains Strong Momentum

Although broader retail growth has moderated in recent months, ecommerce continues to outperform traditional retail by a considerable margin.

The combination of promotional events, improved logistics, AI-powered personalization, and omnichannel retail strategies suggests digital commerce will remain a key engine of U.S. retail growth throughout the remainder of 2026. As major retailers continue investing in online capabilities, competition for digital shoppers is expected to intensify during the second half of the year.

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Shein IPO Valuation Slips as Regulatory Pressure Weighs on Growth Prospects

Shein’s long-awaited initial public offering is facing fresh headwinds as tightening regulations on cross-border e-commerce threaten to slow growth and reduce investor enthusiasm. The fast-fashion giant, which is preparing for a Hong Kong listing later this year, is now expected to command a significantly lower valuation than previously anticipated as new import rules in Europe begin to impact sales and profitability.

The company is reportedly seeking a valuation between $40 billion and $50 billion, a sharp decline from the $100 billion valuation achieved during its 2022 fundraising round. Some market analysts believe investors may only be willing to support a valuation closer to $30 billion given the evolving regulatory environment and increasing competitive pressures.

Europe Becomes a Key Pressure Point

A major challenge comes from the European Union’s latest measures targeting low-value e-commerce imports. The bloc recently introduced additional fees on inexpensive parcels entering the region, aiming to create fairer competition for domestic retailers and address the surge in direct-to-consumer shipments from Asian online marketplaces.

Europe accounts for roughly one-third of Shein’s global revenue, making the region particularly important to its expansion strategy. The new charges have reportedly increased shopping costs for consumers, reduced conversion rates, and forced the retailer to reassess marketing expenditures across several European markets.

Growth Remains Strong Despite Headwinds

Despite mounting regulatory challenges, Shein continues to post substantial financial results. Sources familiar with the company’s performance say the retailer generated more than $40 billion in revenue during 2025, while net profit approached $2 billion, highlighting the resilience of its ultra-fast fashion business model.

To strengthen its European operations, Shein has expanded warehouse capacity in Poland and continues investing in logistics infrastructure to improve delivery times and reduce operational costs. However, these investments may not fully offset the impact of stricter trade policies and rising compliance costs.

Competition Intensifies Across Global E-Commerce

Beyond regulation, Shein is navigating an increasingly competitive online retail landscape. Rivals including Temu and other cross-border marketplaces continue to compete aggressively on pricing and customer acquisition, while geopolitical tensions and changing trade policies add further uncertainty for investors.

The company’s reduced valuation expectations also reflect broader concerns over whether the rapid growth enjoyed by ultra-fast fashion platforms can be sustained under tighter regulatory scrutiny in major consumer markets.

IPO Still Expected This Year

Despite the challenges, Shein is continuing preparations for its Hong Kong debut after receiving key regulatory approvals. Investor roadshows are expected to begin ahead of a potential listing later this year, although the final valuation will largely depend on market conditions and institutional investor demand.

For global e-commerce investors, the offering is expected to become a key test of how regulators, geopolitical risks, and changing cross-border trade rules are reshaping valuations for digital retail companies in 2026.

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Saudi Arabia Sees 23% Surge in E-Commerce Business Registrations in Q2 2026

Saudi Arabia’s e-commerce sector continued its rapid expansion during the second quarter of 2026, with the number of commercial registrations for online businesses increasing by 23% year over year, underscoring the Kingdom’s accelerating digital transformation and growing entrepreneurial activity.

According to newly released official figures, commercial registrations for e-commerce businesses reached 48,497 by the end of Q2 2026, up from 39,366 during the same period a year earlier. The figures highlight the sustained momentum of Saudi Arabia’s online retail ecosystem as digital commerce adoption continues to rise across consumers and businesses.

Digital Economy Continues to Accelerate

The increase reflects the Kingdom’s broader efforts to diversify its economy through digital innovation under Vision 2030. Government initiatives supporting entrepreneurship, digital payments, logistics modernization, and SME development have helped create a favorable environment for online businesses.

The growing number of licensed e-commerce companies also indicates increasing confidence among entrepreneurs looking to establish digital-first businesses across retail, services, and marketplace platforms.

Strong Momentum Across Online Retail

Saudi Arabia has become one of the Middle East’s fastest-growing e-commerce markets, driven by high internet penetration, widespread smartphone usage, and expanding digital payment infrastructure.

Industry analysts note that consumer demand for convenient online shopping, combined with investments in fulfillment networks and last-mile delivery services, continues to encourage new businesses to enter the market.

The continued rise in commercial registrations suggests that competition within the Kingdom’s e-commerce sector is expected to intensify as more merchants transition to digital channels.

Vision 2030 Driving Digital Business Growth

The latest registration figures align with Saudi Arabia‘s long-term strategy to build a diversified digital economy. Authorities have introduced multiple initiatives aimed at simplifying business formation, encouraging innovation, and increasing private-sector participation in technology-driven industries.

As digital commerce becomes an increasingly important contributor to economic activity, continued growth in business registrations is expected to support employment, investment, and cross-border trade opportunities throughout the Kingdom.

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ASEAN Concludes Digital Economy Framework Agreement Talks

ASEAN Digital Economy Framework Agreement

ASEAN Concludes Digital Economy Framework Agreement Talks to Advance Regional Digital Economy

The digital economy agreement is expected to be signed at the ASEAN Summit in November 2026, as member states seek to build a more connected, secure, and interoperable regional market.

ASEAN has concluded negotiations on the Digital Economy Framework Agreement (DEFA), marking a significant step toward deeper regional integration in digital trade, e-commerce, data governance, cybersecurity, and emerging technologies. Thailand announced the conclusion of the talks after chairing the DEFA Negotiating Committee, with the agreement now expected to move toward legal review before its planned signing at the ASEAN Summit in November 2026.

The negotiations were completed during the 57th ASEAN Senior Economic Officials’ Meeting, 2nd session, held in Manila, the Philippines, from May 27 to 29, 2026. The conclusion of the talks was also confirmed by regional trade officials, who described DEFA as ASEAN’s first region-wide digital economy agreement.

Thailand’s Deputy Prime Minister and Commerce Minister, Suphajee Suthumpun, said the conclusion of negotiations represented an important step toward laying the foundation for ASEAN’s digital economy. Thailand chaired the DEFA Negotiating Committee and helped coordinate member-state positions during discussions on a wide range of complex digital policy issues.

ASEAN Digital Economy Framework Agreement

DEFA is designed to create a common framework for the digital economy across ASEAN. The agreement aims to facilitate cross-border digital trade and investment by improving regulatory coordination, reducing operational barriers, and supporting interoperability among digital systems across member states. For businesses, this could mean smoother digital transactions, more efficient market access, and clearer regional rules.

The agreement is particularly relevant for e-commerce because Southeast Asia’s online trade ecosystem continues to expand rapidly. Cross-border payments, digital contracts, online consumer protection, cybersecurity standards, data flows, and digital identity are increasingly important for companies operating across multiple ASEAN markets. A more harmonized digital economy framework could reduce friction for businesses trying to scale regionally.

However, the impact of DEFA will depend on how the agreement is implemented after it is signed. Regional digital economy agreements often set strategic direction, but their practical value depends on national-level regulation, enforcement capacity, technical infrastructure, and the ability of member states to align domestic rules. ASEAN’s diversity is both an opportunity and a challenge: the region includes highly advanced digital markets as well as economies still developing key digital infrastructure.

According to Thai officials, DEFA is intended to support cross-border trade and investment by linking digital systems among member states so they can operate more effectively together. This focus on interoperability is important because fragmented systems can increase costs for companies, especially micro, small, and medium-sized enterprises. MSMEs often face greater barriers to expanding across borders, including compliance costs, payment limitations, logistical challenges, and uneven digital standards.

If implemented effectively, DEFA could help smaller businesses participate more actively in the regional digital economy. A more predictable digital trade environment may give MSMEs greater access to new customers, technologies, platforms, and innovation networks. This could be one of the agreement’s most important outcomes, provided that smaller firms are given the tools and support needed to benefit from the framework.

The agreement also includes areas linked to digital trust. ASEAN officials have highlighted cooperation on cybersecurity, consumer protection, anti-online fraud measures, and readiness for future technologies such as artificial intelligence. These areas are becoming central to the digital economy as online transactions grow and digital risks become more sophisticated.

The reference to artificial intelligence is also notable. AI is increasingly shaping e-commerce, customer service, logistics, payments, marketing, and fraud detection. By including future technology readiness within the broader digital economy agenda, ASEAN is signaling that DEFA is not only about today’s online trade rules, but also about preparing the region for the next stage of digital transformation.

Studies cited by officials suggest that DEFA could help ASEAN’s digital economy reach US$2 trillion by 2030. This figure reflects the scale of the opportunity, but it should be treated as a long-term potential rather than an automatic outcome. Reaching that level will require investment in digital infrastructure, trusted data systems, skills development, cross-border regulatory alignment, and stronger participation by businesses of different sizes.

For ASEAN, DEFA represents an effort to position the region as a more competitive hub for digital economies. The agreement could strengthen the bloc’s role in global digital trade at a time when economies worldwide are competing to set rules governing data, platforms, AI, e-commerce, and digital services.

The conclusion of negotiations does not mean the work is finished. The next stage will be legal scrubbing, followed by the planned signing at the ASEAN Summit in November 2026. After that, the real test will be implementation. If ASEAN can translate DEFA’s rules into practical market improvements, the agreement could become a major framework for regional digital commerce and long-term economic competitiveness.

Kuwait Signs $2.7 Billion Digital Infrastructure Deal to Boost Digital Economy

Kuwait has signed a $2.7 billion agreement with Bahrain’s Beyon Group to develop and operate the country’s national fixed telecommunications network, marking one of the country’s largest recent investments in digital infrastructure. The deal is expected to support Kuwait’s long-term digital transformation agenda and strengthen the foundations of its future digital economy.

The agreement was signed by Kuwait’s government through the Ministry of Communications and the Kuwait Authority for Partnership Projects. Beyon Group, the parent company of several telecommunications, ICT, and digital transformation businesses in Bahrain, was selected following a competitive tender process for the public-private partnership project.

The project is closely linked to Kuwait’s New Kuwait 2035 vision, which aims to diversify the economy, improve public services, and strengthen the country’s position as a regional hub for business, technology, and innovation. While the agreement is primarily a telecom infrastructure project, its wider importance lies in how digital infrastructure supports the growth of modern economic activity.

A stronger national fixed telecommunications network can enable cloud computing, artificial intelligence, smart cities, digital government platforms, advanced business services, and future data-driven industries. For e-commerce and digital trade, this type of digital infrastructure is not a secondary issue. It is one of the core foundations that allows businesses, consumers, platforms, payment systems, and logistics networks to operate more efficiently.

Kuwait’s Minister of State for Communication Affairs, Omar Al-Omar, described the project as a long-term national investment supporting the country’s digital future. According to the government’s framing, the fixed telecommunications network will serve as the backbone for future digital services and help Kuwait move toward a technology-driven knowledge economy.

The agreement also reflects a broader trend across the Gulf region. GCC governments are investing heavily in digital infrastructure as part of economic diversification strategies. Saudi Arabia, the UAE, Bahrain, Qatar, Oman, and Kuwait are all seeking to build stronger technology ecosystems through cloud infrastructure, data centers, AI strategies, smart city projects, digital government services, and private-sector innovation.

For Kuwait, the fixed telecom deal may help address one of the key requirements for digital competitiveness: reliable, professionally managed connectivity. High-quality fixed network infrastructure is essential for households, businesses, government entities, and technology providers. It also supports the expansion of digital services that require stable broadband, secure data transmission, and scalable connectivity.

Mishal Al-Zaid, Undersecretary of the Ministry of Communications, described the initiative as a comprehensive re-engineering of Kuwait’s fixed telecommunications network. The goal is to transition the network to an independent, professionally managed infrastructure platform capable of meeting the country’s digital growth needs for decades.

The selection of Beyon Group also points to the growing role of regional telecom expertise in GCC transformation projects. Beyon Group has experience in fibre-optic network projects across Bahrain, Jordan, the Maldives, and the Channel Islands. According to the company, its services reach more than 2.2 million residential units across different markets.

The public-private partnership model is another important aspect of the deal. Kuwait is not only investing in digital infrastructure but also using a structure that combines public-sector priorities with private-sector technical and operational expertise. This model is increasingly used in large-scale infrastructure projects across the region, especially where governments seek long-term service quality, efficiency, and investment discipline.

The agreement also includes domestic economic participation measures. According to the project terms, at least 65 percent of jobs within the project company will be allocated to Kuwaiti nationals. In addition, 50 percent of the project company’s shares are expected to be floated on the public market, allowing Kuwaiti citizens to participate in future public share offerings.

From a digital economy perspective, the project’s success will depend on implementation. Large infrastructure agreements can create significant capacity, but their economic impact depends on network rollout, service quality, affordability, regulatory clarity, and businesses’ ability to build new services on top of improved connectivity.

For e-commerce companies, marketplaces, fintech firms, logistics providers, and digital service platforms, stronger digital infrastructure can reduce operational friction and support future growth. Faster and more reliable connectivity can improve online transactions, digital payments, customer service, cloud-based operations, data analytics, and AI-powered tools.

Kuwait’s $2.7 billion fixed telecom agreement therefore represents more than a network upgrade. It is part of a wider regional shift in which digital infrastructure is becoming a strategic economic asset. As the Gulf moves deeper into cloud services, AI, e-commerce, smart cities, and digital government, infrastructure projects of this scale will increasingly shape the region’s competitiveness.

The deal places Kuwait in a stronger position to accelerate its digital transformation agenda, but the next phase will be critical. The real test will be whether the project can translate investment into reliable services, stronger business capabilities, and measurable progress toward a more diversified digital economy.

When the Pope Meets Anthropic: AI’s New Ethical Line

The Pope Meets Anthropic

We spend a lot of time in the tech and digital commerce sectors analysing white papers from Silicon Valley, regulatory updates from Brussels, and corporate roadmaps from the likes of OpenAI and Google. But yesterday, the most consequential and hard-hitting AI policy document of 2026 didn’t come from a tech hub. It came from the Vatican.

On May 25, Pope Leo XIV released his first papal encyclical, a massive, 245-paragraph, 42,000-word document titled Magnifica Humanitas (“Magnificent Humanity”), which is dedicated entirely to artificial intelligence. Pope Meets Anthropic

If anyone thought this would be a vague, surface-level commentary on technology, they were mistaken. Standing alongside the Pope at the Vatican’s Synod Hall was Christopher Olah, the co-founder of Anthropic. When one of the world’s leading minds in frontier AI safety aligns with one of the world’s oldest institutions, the global community needs to stop and listen.

The Four Pillars of the Vatican’s Manifesto

Look, I’ll be completely honest with you: at 42,000 words, I haven’t had the time to sit down and read this entire text cover-to-cover yet. My desk is currently piled high with upcoming magazine deadlines. But based on the official briefings and the earliest press sources from Rome, the Vatican is laying down some incredibly heavy, non-negotiable ethical boundaries.

From what we can gather, the document essentially hinges on four core pillars that directly challenge how the current AI ecosystem is being built:

Data belongs to everyone: The encyclical argues that the massive datasets used to train foundational models shouldn’t just be the private property or proprietary balance sheets of a few tech conglomerates. Instead, it should be classified as a common good.
We need to hit the brakes: Pope Leo XIV is calling for active government intervention to robustly regulate and deliberately slow down development, writing, “What is needed is a more active political involvement that is capable of slowing things down when everything is accelerating.”
Zero algorithms in warfare: The document draws a definitive moral boundary on automated defence systems, stating flatly that “no algorithm can make war morally acceptable.”
Protecting people’s livelihoods: The text pulls no punches on automation-driven layoffs, demanding strict protections for workers to prevent mass job displacement.

A Call for a Unified, Cross-Faith Response

This intervention highlights a broader geopolitical reality: the ethical boundaries of the digital age cannot be dictated by Silicon Valley or a single Western institution alone. The disruptions under discussion, mass labour displacement, the weaponisation of automated defence, and the centralisation of human data, are global challenges that transcend borders and individual belief systems.

As a Muslim, I see an immediate, vital opportunity here for Islamic authorities, scholars, and institutions like Al-Azhar, the Muslim World League, and regional digital ethics boards to weigh in with clarity.

In Islamic tradition, technological and economic advancements must always serve the preservation of human life, intellect, and societal well-being (Maqasid al-Shariah). When automation threatens mass human displacement for the sake of corporate margins, or when algorithms are given the autonomy to make life-and-death decisions in warfare, it violates the core tenets of stewardship and justice.

It is time for major Islamic institutions to publish their own AI frameworks. We need a unified, cross-faith alliance on technology ethics, one in which Riyadh, Cairo, Istanbul, and Jakarta speak with the same moral clarity as the Vatican to ensure that Silicon Valley respects human dignity.

Why This Matters for Global Commerce

At WORLDEF, we closely track how #AI is rewriting the rules of global infrastructure from automated supply chains and dynamic pricing to cross-border logistics and digital marketplace operations. But as Christopher Olah noted during the press conference, the questions AI raises are ultimately bigger than the technology itself. They belong to philosophy, society, and the humanities.

For those of us leading and operating within digital ecosystems, Magnifica Humanitas is a stark reminder that the “move fast and break things” era is facing an inevitable reckoning. When data ownership is challenged as a human rights issue and labour displacement is framed as a societal failure, it signals that the compliance and regulatory pressures heading our way will be much harsher than simple algorithmic transparency.

Whether you look at this through an economic, philosophical, or strictly business lens, one thing is clear: the human element must remain the true anchor of global commerce. If we build an ecosystem where efficiency completely hollows out human agency, we aren’t innovating; rather, we’re just automating our own decline.

It’s time for tech leaders to realize that the call for guardrails is no longer just a bureaucratic hurdle from government regulators. It is hardening into a global, cross-faith mandate. The world’s major spiritual and cultural traditions are drawing a line in the sand, demanding that human dignity be protected before the algorithms outpace our shared values.