Business

BYD faces EU probe over alleged labor abuses at Hungary plant

Electric car giant BYD has become the first Chinese business to be raised in the European Parliament over allegations of labor abuses in Hungary, CNBC has learned, following a watchdog’s investigation into working conditions at the site.

Contractors hired to build BYD’s factory in Hungary allegedly kept thousands of employees working seven days a week, with shifts lasting more than 12 hours a day, according to a report published on April 14 by New York-based watchdog China Labor Watch (CLW). The group said it interviewed 50 workers and visited the factory site three times since October 2025.

China Labor Watch, a U.S.-based nonprofit organization that has tracked worker conditions since its founding in 2000, shared the report’s findings with EU government representatives. Earlier this month, three members of the European Parliament formally asked the European Commission about the alleged labor abuses in Hungary.

The allegations by China Labor Watch mark the first time claims of labor abuses linked to a Chinese-owned auto business manufacturing in the European Union have been brought to the attention of the European Commission, according to checks by CNBC.

In February, a worker reportedly died on-site during a crane operation. Citing conversations with workers, CLW founder Qiang Li told CNBC there had been more deaths on site.

He added that, based on conversations with workers, broader medical support was inadequate as individuals were not always employed on work visas with corresponding medical insurance.

Hungary’s National Ambulance Service told CNBC Thursday that since Feb. 1, emergency medical services were called to the factory site 12 times, with one death.

The latest allegations come as BYD has expanded into an automotive powerhouse, surpassing Tesla as the world’s largest electric car manufacturer in 2025. BYD is among a wave of Chinese companies expanding overseas, aiming to sell more than a million cars outside China this year as sales in its home market slump.

One contractor named in the report, AIM Construction Hungary, is a subsidiary of Jinjiang Construction Group — the same firm linked to a 2024 scandal at BYD’s factory in Brazil that national labor authorities said, following investigations, involved conditions “analogous to slavery.”

BYD claimed in December 2024 that it stopped working with Jinjiang Construction’s Brazilian subsidiary in the wake of the scandal. But the CLW report allegations indicate BYD hired another subsidiary of the same Jinjiang group to build the factory in Hungary. The report said CLW reviewed a sample labor contract for jobs at BYD’s Hungary factory, which included the option of being sent to Brazil and Turkey, where BYD is also building a factory.

AIM Construction Hungary was previously known as China Jinjiang Construction Hungary, according to company records from Hungary’s Ministry of Justice, accessed through an authorized data provider.

BYD and the Jinjiang entities did not respond to CNBC’s requests for comment. Authorities in the EU also did not respond.

The facility in the southern Hungarian city of Szeged is one of five BYD sites in Hungary, where the automaker established its European headquarters nearly a year ago during a visit by chairman Wang Chuanfu.

Forced to stay

The EU raised tariffs on China-made electric cars in 2024, in a bid to localize production. But China-made vehicles still climbed to a record 9.3% of new cars sold in the bloc in December, according to Rhodium Group.

BYD is rapidly growing its market share. New BYD cars registered in the EU more than doubled in the first two months of the year to 29,291, exceeding Tesla and gaining 1.8% of the market, according to the European Automobile Manufacturers’ Association.

By model, BYD’s Seal U ranked third in January registrations, behind models from Renault and Skoda, according to European Commission data. More than two-thirds of new passenger cars sold in Europe in January were electric.

Hungary received the bulk of China’s growing automotive investment in Europe over the last three years, according to Rhodium Group data.

BYD’s Szeged factory is slated to produce 300,000 cars per year at full capacity, though the timeline to reach that target is unclear.

As construction of the factory progressed, workers, mostly from China, were allowed to rest only when inclement weather halted work, according to CLW.

Managers “wanted to begin production of cars in January [2026], so they were rushing the project’s timeline — they weren’t letting workers leave,” Li said in Mandarin remarks translated by CNBC.

The Szeged facility manufactures BYD’s Dolphin Surf model, according to a company statement citing BYD Executive Vice President Stella Li. Local media reported in January that trial production had begun.

CLW’s Li said the contractors used a range of financial levers to keep workers on-site. Some were promised free plane tickets home if they worked for more than six months; others had wages withheld until their contracts were fulfilled, or incurred miscellaneous charges such as recruitment fees even before arriving on-site, according to the report.

Employees were directed to tell labor inspectors that they only worked “five days per week, eight hours per day, with one hour of overtime,” the report said. CLW alleged their actual working hours directly violated Hungary’s Labor Code — which limits working hours to eight per day, and no more than 48 hours a week — and that their conditions resemble the International Labor Organization’s definition of forced labor.

When CNBC contacted Hungary’s National Directorate-General for Aliens Policing about the allegations, the government department said it “took the necessary measures within the scope of its authority to conduct examinations of the matters described in the [CLW’s] submissions.”

Political fallout

In Brazil, BYD’s labor issues have led to political ripple effects.

Luiz Felipe Brandao de Mello, head of Brazil’s agency tasked with enforcing national labor standards, was removed from his post, according to an official government gazette. Reuters reported, citing two sources close to the matter, that de Mello lost his position due to a decision to add BYD to a blacklist restricting its access to loans.

Brazil’s labor ministry had added BYD to the list days earlier — only to have a Brazilian court reverse that decision until a final ruling was made.

Brazil’s national association of labor inspectors did not respond to CNBC’s requests for comment.

CNBC

Business

AI agents set to unlock US$450bn in economic value by 2028 as Outworks challenges Middle East institutions to go agentic in 30 days

Abu Dhabi, United Arab Emirates

Artificial intelligence is entering a defining new era. Across the Middle East, the conversation has shifted from whether organisations should adopt AI to how quickly they can deploy it securely, responsibly and at scale.

The urgency is backed by compelling numbers. According to the Capgemini Research Institute, AI agents are expected to unlock up to US$450 billion in economic value globally by 2028 through increased productivity, operational efficiencies and new revenue opportunities. Yet despite this enormous potential, only 2% of organisations worldwide have successfully scaled AI agent deployments across their operations, highlighting a significant gap between AI ambition and real-world execution.

Against this backdrop, Outworks has introduced Sprint 30, a structured programme challenging governments and large enterprises across the Middle East and Africa to move from AI strategy to fully operational, governed AI agents within 30 days. Rather than focusing on lengthy pilots and proof-of-concept projects, Sprint 30 is designed to help organisations deploy AI agents inside live business environments, delivering measurable outcomes while maintaining security, governance and data sovereignty.

The initiative comes as the UAE continues to strengthen its position as one of the world’s leading AI economies through ambitious national strategies that are accelerating the adoption of advanced technologies across government and business. As organisations increasingly seek to operationalise AI, the emphasis has shifted from experimentation to enterprise-wide deployment.

“The Middle East is entering one of the most significant technology transformations in its history. The conversation has moved beyond whether organisations should adopt artificial intelligence; today the real question is how quickly they can put it to work,” said Hamda Al Mansoori, Founder & Chairwoman of Outworks.

“At Outworks, our mission is to help governments and enterprises transform AI from strategy into execution, delivering measurable impact in weeks rather than months. We believe the organisations that will lead the next decade are those that operationalise AI responsibly, securely and at scale—creating environments where people and intelligent agents work together to unlock entirely new levels of productivity, innovation and value.”

Sprint 30 has been engineered to eliminate many of the barriers that have traditionally slowed enterprise AI adoption. Instead of spending months developing infrastructure before deployment begins, organisations follow a structured implementation framework that moves from assessment and solution design to production-ready AI agents operating inside real workflows within just one month.

The programme enables organisations to deploy AI agents on infrastructure they own and control, ensuring compliance with data sovereignty requirements while maintaining governance, transparency and human oversight throughout the deployment lifecycle.

Ahmed Ashoor, Founder & Chief Technology Officer, said the programme reflects a fundamentally different approach to enterprise AI implementation.

“Thirty days is not a marketing promise. It is an engineering decision. We have already built the deployment architecture, governance framework and operating model, allowing organisations to focus on transforming their operations rather than spending months building technology foundations. By the end of Sprint 30, AI agents are already delivering measurable work inside production environments.”

Outworks operates through its integrated Advise, Build and Run transformation model, helping organisations identify high-impact AI opportunities, build secure technology foundations and operate intelligent systems that continue evolving alongside business requirements. Every deployment is designed around sovereign infrastructure, ensuring organisations retain full control of their data while meeting regulatory, security and compliance requirements.

The company believes the future of enterprise performance will depend not simply on adopting artificial intelligence, but on integrating it into the way organisations operate every day. Rather than replacing human expertise, AI agents are expected to augment decision-making, automate repetitive and complex processes, and enable employees to focus on higher-value work that drives innovation and growth.

Founded by four leaders with expertise spanning government transformation, enterprise technology, artificial intelligence, commercial development and strategic partnerships, Outworks is focused on helping governments and large enterprises across the Middle East and Africa accelerate their transition from AI ambition to enterprise-scale execution.

As organisations race to capture the economic value of artificial intelligence, initiatives such as Sprint 30 demonstrate how the competitive advantage of the coming decade will be determined not by who has access to AI, but by who can deploy it faster, govern it responsibly and translate it into measurable business outcomes.

About Outworks

Outworks is an AI-native transformation company headquartered in Abu Dhabi Global Market (ADGM), United Arab Emirates. The company helps governments and large enterprises across the Middle East and Africa move from AI ambition to production-ready intelligent systems through its integrated Advise, Build and Run model.

Founded by Hamda Al Mansoori (Founder & Chairwoman), Ahmed Ashoor (Founder & Chief Technology Officer), Islam Shaban (Founder & Chief Commercial Officer), and Ahmed Shaban (Founder & Chief Strategy Officer), Outworks combines expertise in artificial intelligence, enterprise transformation, technology and strategic partnerships to deliver sovereign, enterprise-scale AI solutions.

Business

White and Black Events & PR Announces New Expansion Phase Led by Nagham Amer, Including Regional Market Growth and the Launch of a Skincare Brand

Dubai, United Arab Emirates – Black & White PR & Events has announced the start of a new phase of growth and expansion as part of a strategic plan aimed at strengthening its presence across regional markets and broadening its portfolio of services in line with the rapidly evolving public relations and marketing landscape.

Nagham Amer, Founder and Managing Director of Black & White PR & Events, said that the company’s next chapter will focus on expanding into high-potential markets, particularly Saudi Arabia and Libya, while further strengthening its presence in the UAE. This will be achieved through strategic partnerships and the delivery of integrated solutions across public relations, influencer marketing, event management, and media production.

Amer said:

“We believe that real growth is not defined solely by geographical expansion, but also by continuously enhancing our services and developing innovative solutions that meet the evolving needs of the market. Our goal is to build a strong presence across regional markets while maintaining the quality and excellence that define everything we do.”

She added that the company is currently diversifying its service offering to include new areas within the beauty and lifestyle sectors, leveraging its extensive experience in managing marketing and communications campaigns for both regional and international brands.

Reflecting its long-term vision, Amer also revealed that the company is exploring the launch of its own skincare brand targeting the GCC and wider Arab markets. The initiative forms part of a broader strategy to evolve beyond providing marketing services into developing and managing proprietary brands, creating additional value and supporting sustainable long-term growth.

Over the past several years, Black & White PR & Events has successfully delivered integrated marketing and media campaigns for leading brands across the beauty, fragrance, healthcare, and jewellery sectors. The company has also managed high-profile events and collaborations with some of the region’s most prominent influencers and celebrities, further strengthening its position as a strategic communications partner for brands seeking to expand across the GCC and the Arab world.

Concluding her remarks, Amer emphasized that the company’s next phase will focus on innovation, expanding its regional partnership network, and investing in high-impact projects that reinforce Black & White PR & Events’ position as one of the region’s leading public relations and marketing firms.

Business

Adidas narrows gap with Nike in World Cup sales

As the World Cup brand battle heats up, sportswear giant Adidas (ADSGn.DE), opens new tab appears to be getting a bigger boost than rival Nike, early data show.

Both companies are investing heavily in the tournament, but Nike (NKE.N), opens new tab is relying on it for sales and visibility as it tries to right its ship amid years of steadily leaking market share. ‌Investors will be looking for signs of progress next week when Nike reports fourth-quarter earnings.

Adidas, an official World Cup sponsor and a brand long associated with soccer, is sponsoring 14 teams and supplying the coveted match ball.

Nike is outfitting 12 national teams, partnering with local street-wear designers, and refreshing soccer merchandise at more than 5,000 Nike and wholesale stores globally.

But while both brands are poised to get a World Cup boost to their apparel businesses, Adidas is benefiting “to a greater degree thus far,” said Drake MacFarlane, a research analyst at M Science.

Spending on Adidas apparel surged 70% in May from the previous year and stayed strong into June, according to M Science data. MacFarlane attributed the ⁠trend to “substantial growth” in jersey sales ahead of the World Cup.

Nike’s apparel business is growing as well, he added, but that growth is being outpaced by Adidas, which has “the right set of product for the consumer.”

Foot traffic data tell a similar story.

Visits to Adidas’ U.S. stores surged 47% during the first week of the World Cup compared to 2026 averages, versus an 11% jump at Nike’s U.S. factory stores, according to data from Placer.ai, shared with Reuters.

For Adidas, those visits represented a 16% jump versus the same week last year — but for Nike, they represented a drop, Placer.ai found.

While the Nike data only covers outlet stores, the overall findings still indicate that Adidas “has been top of mind for shoppers and may have done a good job in its store activation around the event,” said Elizabeth Lafontaine, Placer.ai’s director of research.

British retailer JD Sports (JD.L), opens new tab said Mexico jerseys – which are supplied by Adidas – were its best-selling team kit during the week beginning June 15. Nike’s U.S. team jerseys took the second spot in total sales, the retailer said.

A bright spot for Nike: 28% of its World Cup merchandise in ‌the U.S. ⁠sold out during the first two weeks of the tournament – well above Adidas’ 7%, according to a report from LSEG this week.

FOOTWEAR IN FOCUS

Nike has had a strong presence at the World Cup.

A Reuters analysis found that 232 of the 528 World Cup starters so far have worn Nike boots, with Adidas close behind at 218. “Nike is right there” despite Adidas’ close association with FIFA, said David Swartz, an equity analyst at Morningstar. “Strong visibility … is good for its brand strength.”

World soccer’s governing body FIFA runs the tournament.

Nike could use the win: sales have fallen as demand for classic lines like Dunk and Air Jordan ⁠has cooled. Competition from newer players like On and Deckers (DECK.N), opens new tab has intensified, and analysts say the company has been slow to pivot to new styles.

While World Cup visibility can’t hurt, “at the end of the day it’s really all about the product,” said Mari Shor, senior equities analyst at Columbia Threadneedle, which holds Nike stock. “If [Nike’s] product isn’t resonating, the rest of it doesn’t matter.”

Nike’s share of the global sports footwear market ⁠has fallen from 29.2% in 2022 to 22.9% last year, according to Euromonitor International data, obtained by Reuters.

Nike and Adidas have lately traded blows.

In April, Nike entered exclusive talks to provide balls for certain UEFA soccer matches, a role that was Adidas’ for 25 years. Later that month, though, Kenyan Sabastian Sawe wearing new, ultra-light shoes from Adidas broke the two-hour marathon barrier, a ⁠coup as the two companies battle for sports innovation.

Nike CEO Elliott Hill, who took the helm in 2024, vowed to refocus Nike on key sports like soccer and running, saying the company had “lost its obsession with sport.”

Yet it remains the larger company by far, its footwear market share still nearly double second-place Adidas.

It’s “the biggest dog in the fight,” said Sarah Henry, a portfolio manager at Logan Capital Management. “It should be able to hit everybody else pretty hard.”

(Reuters)