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The World Bank has trimmed its projection for South Asia’s economic expansion in 2026, citing elevated U. S. tariffs on Indian exports as a key drag. The region’s growth is now forecast at 5.8 percent, down from 6.6 percent this year.

The updated “South Asia Development Update” flags the U. S. trade measures as a major headwind, especially given India’s size and its integration into regional supply chains. The report sets India’s growth for fiscal year 2025–26 at 6.5 percent, up from its earlier estimate of 6.3 percent, but warns of a drop to 6.3 percent in 2026–27 as tariff pressures intensify.

The U. S. has imposed tariffs of up to 50 percent on a broad swath of Indian goods—impacting sectors such as textiles, gems and jewellery and seafood—affecting nearly $50 billion in exports. These are among the highest duties levied on any U. S. trading partner. The World Bank notes that these tariffs will particularly bite in 2026 as initial buffers from public spending fade.

Franziska Ohnsorge, chief economist for South Asia at the World Bank, asserted that the toll from trade restrictions reflects “a reversal of the gains” India had made in integrating into global value chains. She urged structural adjustments: lowering tariffs and signing free trade agreements to support export competitiveness.

Beyond India, Bangladesh and Sri Lanka show varying trajectories. The Bank upgrades forecasts for Bangladesh and Sri Lanka, citing easing fiscal strain and improving external balances. Meanwhile, Nepal and the Maldives bear the brunt of tighter global conditions, with their outlooks revised downward.

Policy responses in India are already in motion. The government launched sweeping tax cuts spanning consumer goods to automobiles, one of the largest fiscal interventions in recent years. Concurrently, infrastructure spending is being boosted to drive domestic demand and counterbalance export headwinds. The Reserve Bank of India held its repo rate at 5.50 percent in October, citing subdued inflation and leaving open room for a future cut.

Indian officials remain confident. Finance Minister Nirmala Sitharaman called the economy “resilient,” expressing faith it could absorb external shocks while targeting an ambitious 8 percent growth. The Chief Economic Adviser affirmed earlier forecasts of 6.3–6.8 percent GDP growth, downplaying long-term damage from trade friction.

International institutions have also flagged downside risks. The Asian Development Bank cut India’s FY 26 forecast to 6.5 percent from 6.7 percent, pointing to duty pressures and policy uncertainty. The IMF earlier trimmed India’s 2025-26 prediction to 6.2 percent, citing heightened global trade tensions.

The World Bank’s report emphasises that over the medium term, trade liberalisation combined with labour flexibility and investment in digital infrastructure could help South Asia reclaim momentum. Within the document, a scenario of tariff cuts and deeper trade integration is modelled to yield significant gains in productivity, employment, and output per capita.

Still, the path ahead is fraught. The report cautions that the region is vulnerable to a global slowdown, geopolitical shocks and labor market disruptions from artificial intelligence. In particular, it warns that weaker export growth from India will spill over across the region via trade, financial and migrant-worker channels.

Telecom operator du and technology vendor Nokia have completed a trial of an artificial intelligence–driven automation system aimed at simplifying and expediting the expansion and management of optical networks in the UAE.

The deployment tested Nokia’s WaveSuite AI, which combines traditional AI methods with generative models to assist du engineers with tasks such as planning, troubleshooting and documentation retrieval. The trial reportedly halved the time needed for optical network planning and produced designs 30 percent more efficient, while reducing errors during deployment.

During the trial, du’s engineering team used a single natural language interface to query live network status, access accurate documentation instantly, and simulate potential network evolutions. The system flagged possible inconsistencies or conflicting configurations early, allowing corrective adjustment before full-scale rollout. According to du, the result was faster troubleshooting, fewer manual errors and improved resource utilisation.

Saleem AlBlooshi, chief technology officer at du, said the trial “shows how innovation can transform network operations to face challenges brought on by increasingly sophisticated networks and ever-higher traffic volumes.” He emphasised that the automation of routine tasks and provision of intelligent tools would lead to more reliable, SLA-backed connectivity for customers.

From Nokia’s standpoint, Ron Johnson, senior vice president and general manager of Optical Networks, called WaveSuite AI “a demonstration of the real value of automation solutions with both classical and generative AI for optical networking.” He noted that the system reduces friction in planning, documentation search, and operational processes, and helps service providers accelerate provisioning of higher-speed, more reliable services.

The trial builds on du’s broader effort to embed AI and automation more deeply across its systems. Earlier this year, du partnered with Microsoft, Nokia, Khalifa University’s 6G Research Center and the ITU to launch an “Arabic Telecom LLM,” a large language model tailored for internal telecom operations. That model is designed to handle internal workflows, resolve device issues, process complaints and provide operational insights in Arabic and English. The initiative is part of du’s strategy to blend regional research leadership and global AI tools while retaining language and cultural fidelity in its operations.

This AI-driven automation trial comes amid growing pressures on telecom operators worldwide to scale quickly to meet surging demand for bandwidth, driven by AI workloads, data centers and new real-time applications. As networks grow in complexity, manual processes no longer scale efficiently, pushing operators into an era of closed-loop or autonomous operations. Nokia, in its public literature, frames network automation as essential to reducing manual intervention, improving performance and enabling faster service delivery across domains such as core, mobile, IP and optical networks.

In the UAE context, this trial signals du’s ambition to advance its optical infrastructure ahead of demand peaks, while benchmarking its operations for future 6G readiness. The success of automation in planning and deployment could reduce operational costs, increase agility, and support more complex services such as network slicing, ultra-low latency applications and differentiated service tiers.

Fitch Ratings changed Thailand’s long-term foreign-currency issuer outlook to Negative from Stable, citing mounting pressures on public finances, fragile growth prospects and ongoing political fragility. The sovereign rating itself remains at BBB+.

The credit agency warned that escalating risks to fiscal stability — especially rising debt and persistent budget deficits — are aggravated by uncertainty over government continuity and policy direction. Economic growth slowing below peer averages and vulnerabilities in the tourism and export sectors further reinforce downside risks.

Fitch singled out Thailand’s general government debt reaching about 59.4 percent of GDP, a level close to median thresholds for ‘BBB’-rated sovereigns, noting it has risen sharply from pre-pandemic levels. Persistent fiscal deficits of 4.6 percent of GDP in fiscal 2025 and 4.3 percent in 2026 are projected, and though Fitch expects stabilisation beyond 2027, the window for improvement is narrow.

Fitch also emphasised Thailand’s external buffers — a consistent current account surplus and conservative composition of government debt — as mitigants that support the affirmed rating despite the negative outlook. It noted that average debt servicing costs relative to revenues remain lower than peer country averages, which grants some breathing room.

The political backdrop has intensified the strain. The constitutional court’s removal of Prime Minister Paetongtarn Shinawatra over an ethics violation tied to a leaked phone conversation triggered a swift transition. Anutin Charnvirakul assumed the premiership through a deal with the opposition party that mandates a general election within four months, introducing turbulence to fiscal continuity and policy clarity. Fitch warned that this political flux could amplify short-term spending pressures and generate unpredictable policy shifts.

Macro-economic forecasts reinforce the downgrade rationale. The World Bank has trimmed Thailand’s projected GDP growth in 2025 to 1.8 percent and 1.7 percent in 2026, citing weak external demand, slowed tourism recovery and waning domestic consumption — outcomes likely exacerbated by political volatility. Inflation has turned slightly negative, prompting central bank expectations of further rate cuts; Fitch expects two more 25 basis point cuts this year and in 2026.

Thailand’s central bank has already lowered its policy rate 100 basis points over the past year to 1.5 percent, and with inflation below zero, the case for easing remains plausible — though constrained by high household debt levels. The Bank of Thailand has signalled readiness to act if growth weakens further.

Analysts caution that structural deficiencies — such as sluggish productivity gains, reliance on tourism, and high household debts — limit upside recovery. Institutional weakness and frequent leadership turnover further deter investment confidence.

To reverse the negative trajectory, Fitch emphasised that Thailand’s government must demonstrate strong fiscal consolidation, stabilise public debt dynamics and restore growth momentum. A return to a stable outlook would require credible cuts to the fiscal deficit, credible medium-term plans to reduce debt, and a more predictable policy environment that supports private investment.

Dubai Future Foundation has sealed a Memorandum of Understanding with XSOLLA, a global video-game commerce company, under the framework of the Dubai Program for Gaming 2033. The agreement seeks to reinforce Dubai’s position as a gaming innovation hub, drive thought-leadership in the sector, and deliver economic impact with goals of 30,000 new jobs and an additional US$1 billion in GDP by 2033.

DPG33, launched in November 2023 under the patronage of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Board of Trustees of DFF, aims to place Dubai among the world’s top ten gaming hubs over the next decade. The XSOLLA deal was inked during Dubai’s participation in Gamescom 2025 in Germany, where the DFF-led pavilion showcased local developers and gaming initiatives.

Under the MoU, the partners will co-operate on generating thought leadership initiatives and spotlight key activities in content, monetisation, infrastructure, and talent development. DFF also will use its platform to attract investment and cultivate a supportive ecosystem for game developers.

Local game studios have already been gaining traction. Dubai-headquartered iBLOXX secured US$5 million in funding to further develop its online game Strayshot, and Artisan Studios’ Lost Hellden drew over 15,000 wishlist additions on Steam plus more than 300,000 views of its promotional video across platforms such as IGN, PlayStation and Nintendo of America during the Gamescom showing. These examples illustrate growing visibility for indie development as well as commercial promise in Dubai’s gaming sector.

Abdulaziz AlJaziri, Deputy CEO of DFF, said that the level of local and international interest in Dubai’s gaming sector reveals “a real appetite to explore and partner with one of the industry’s most promising markets.” He emphasised Dubai’s advantages in infrastructure, investment, and competitive advantages under DPG33.

The economic projections tied to these initiatives rely heavily on success in three arenas: scaling game creation and publishing, enhancing monetisation capabilities, and developing skilled talent. The MoU with XSOLLA is expected to assist especially in the monetisation and scaling end, leveraging XSOLLA’s global commerce tools and developer support services. Analysts note that aligning global platforms like XSOLLA with local innovation programmes is a strategy used in other leading gaming hubs, helping to bridge gaps in market access, revenue optimisation, and international distribution.

Regulatory and infrastructure support remain under scrutiny, as talent attraction—both local and international—depends not only on capital and tools, but also on clarity in regulation, availability of education and training, creative incentives, and digital and physical infrastructure. Dubai’s gaming strategy, via DPG33, aims to address many of these pain-points through government partnership, industry collaboration, and ecosystem development.

DP World will begin offering the “Atlas” service from Morocco to UK and North Europe, cutting export times for fruit and vegetable shipments by up to two days when operations commence in November 2025. The maritime corridor will link the Moroccan ports of Agadir and Casablanca with DP World’s London Gateway and Antwerp Gateway terminals via two dedicated vessels, offering a faster, more cost-effective, and lower-carbon alternative to over-the-road transport.

This new route is expected to transfer up to 150,000 tonnes of fresh produce annually from trucks to ships, reducing carbon emissions by approximately 250 kg CO₂ per tonne-kilometre—a decrease of around 70% compared with traditional road haulage.

By offering faster and smoother delivery, the “Atlas” service from Morocco to UK and North Europe provides a more reliable logistics option. It circumvents issues such as traffic congestion, border delays and instances of vandalism, which frequently compromise delicate produce like tomatoes and blueberries.

To support the service, DP World has rolled out a substantial investment in refrigerated and general-cargo containers: 1,250 new reefer units plus 1,000 40-foot high-cube and 750 20-foot dry containers. Customers will benefit from full end-to-end supply-chain visibility via the CARGOES digital platform.

According to DP World, Morocco currently exports more than 6.5 million metric tonnes of fruit and vegetables to Western Europe annually, with volumes rising at over 20% year-on-year—making improved logistics more urgent than ever.

DP World Europe’s managing director and chief executive, Rashid Abdulla, emphasised that the service’s pillars of reliability, fast transit and modern IT platform make it a viable alternative to trucking, delivering better-quality produce at lower cost and with markedly reduced emissions. Markus Rodatz, chief operating officer for Freight Europe at DP World, highlighted the company’s commitment to developing smarter, more sustainable and more resilient supply chains, noting the new route helps growers and retailers meet environmental targets.