Finance World Magazine| Edition: September 2024
This month, we proudly unveil the September edition of Finance World Magazine that focuses on "Financial Innovation and Investment in the New Arab World." This issue highlights the exceptional leadership of Eng. Amer Khansaheb, CEO and Board Member at Union Properties, whose visionary approach continues to drive a legacy of innovation and sustained growth in the financial sector. Dive into articles exploring how cutting-edge technologies like AI, blockchain, and big data are transforming the financial landscape. Discover how these innovations are influencing investment strategies, economic development, and the future of wealth management in the region. Learn about the growing impact of fintech solutions, sustainable finance, and digital assets, offering a fresh perspective on the evolving financial ecosystem in the Arab world.
This month, we proudly unveil the September edition of Finance World Magazine that focuses on "Financial Innovation and Investment in the New Arab World." This issue highlights the exceptional leadership of Eng. Amer Khansaheb, CEO and Board Member at Union Properties, whose visionary approach continues to drive a legacy of innovation and sustained growth in the financial sector.
Dive into articles exploring how cutting-edge technologies like AI, blockchain, and big data are transforming the financial landscape. Discover how these innovations are influencing investment strategies, economic development, and the future of wealth management in the region. Learn about the growing impact of fintech solutions, sustainable finance, and digital assets, offering a fresh perspective on the evolving financial ecosystem in the Arab world.
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The Rise of Esports in MENA region: A Promising Portfolio for Investors<br />
How Digital Transformation is Powering Sustainable Business Models<br />
Emirates Gas Unveils Next-Generation LPG Composite Cylinders<br />
Sustainable Supply Chain <strong>Finance</strong>: Unlocking the Potential for Banks<br />
Sep <strong>2024</strong><br />
“The most successful<br />
investors are those<br />
who can anticipate and<br />
adapt to future trends.”<br />
ENG. AMER KHANSAHEB<br />
CEO and Board Member,<br />
Union Properties<br />
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Reimagining Tourism: Abu Dhabi's $10 Billion Investment Plan<br />
Understanding REITs: Exploring the Leading REITs in the UAE Market<br />
Investment Initiatives in UAE: Fueling Dubai's Economic Ambitions<br />
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Reaching a visionary goal requires<br />
one percent vision and 99 percent alignment.<br />
This month’s edition of <strong>Finance</strong> <strong>World</strong> Magazine shines a spotlight<br />
on the dynamic landscape of Financial Innovation and Editor’s Investment Note<br />
Shaping the New Arab <strong>World</strong>. We delve into the transformative<br />
impact of emerging technologies, strategic investments, and regulatory<br />
developments that are shaping the region’s financial sector. Our<br />
comprehensive coverage includes an exploration of cutting-edge<br />
technologies, promising investment opportunities, and key regional<br />
events, providing a detailed analysis of how these factors are driving<br />
growth and modernization in the financial sphere.<br />
The cover story features Eng. Amer Khansaheb, CEO and Board<br />
Member of Union Properties, highlighting his pivotal role in steering<br />
the company towards a future of innovation and excellence. Known for<br />
his visionary approach, Khansaheb has been instrumental in revitalizing<br />
Union Properties with a clear strategy for sustainable growth. His<br />
leadership is driving a transformative shift in the UAE’s real estate<br />
sector, focusing on creating future-ready living environments. The<br />
story delves into how Khansaheb’s unique blend of experience and<br />
foresight is setting new benchmarks for the industry and positioning<br />
Union Properties as a leader in the market.<br />
In this edition, we also delve into the technological evolution of<br />
financial solutions, examining how innovations such as blockchain, AI,<br />
and fintech are revolutionizing traditional finance. Additionally, our<br />
feature on art as an asset class explores how high-value art investments<br />
are gaining traction and becoming integral to diversified portfolios.<br />
In line with the latest trends, our magazine includes multiple<br />
opinion pieces addressing the digital health revolution, which is<br />
transforming the intersection of technology and healthcare finance.<br />
We also examine the rise of neobanks and their impact on traditional<br />
banking models. Additionally, our special feature on the new Global<br />
Internal Audit Standards provides a thorough review of how these<br />
standards are setting new benchmarks for financial oversight and<br />
integrity on a global scale.<br />
- Ambrish Agarwal, Editor in Chief<br />
- Ambrish Agarwal, Editor in Chief<br />
Advertisers advertised in this guide are included on a sponsored basis.<br />
Details are correct at the time of going to press, but offers and prices<br />
may change.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 7<br />
<strong>September</strong> 2022 3
Contents Sep<br />
<strong>2024</strong><br />
OPINION<br />
COVER STORY<br />
Page 62<br />
How Digital Transformation is Powering<br />
Sustainable Business Models in the New<br />
Arab <strong>World</strong><br />
OPINION<br />
P20 | Innovating Future, Visionary<br />
Leadership<br />
REAL ESTATE<br />
P18 | The Future of Carbon Credits: How Sustainable<br />
Fintech is Shaping Net-Zero Emissions in the Arab <strong>World</strong><br />
P50 | Smart Investments:<br />
PropTech in Transforming Real<br />
Estate in the New Arab <strong>World</strong><br />
8 www.thefinanceworld.com Sep <strong>2024</strong>
HEALTHCARE<br />
ESPORTS<br />
P70 | Digital Health Revolution:<br />
Investing in the Future of<br />
Healthcare in the New Arab <strong>World</strong><br />
SPORTS AS A BUSINESS<br />
P78 | The Economic Impact of Sports:<br />
Investing in the Arab <strong>World</strong>’s Future<br />
WHEELS<br />
Page 80<br />
The Rise of Esports in MENA region: A<br />
Promising Portfolio for Investors<br />
INVESTMENT<br />
P30 | Ferrari 12 Cilindri<br />
P94 | The Future of Investment in the<br />
Arab <strong>World</strong>: Strategic Approaches for<br />
a New Era<br />
Sep <strong>2024</strong> www.thefinanceworld.com 9
Business<br />
Source: Ai generated<br />
The Role of Family<br />
Businesses in the<br />
Arab <strong>World</strong>: Tradition<br />
Meets Innovation<br />
Leading Arab family businesses: Bridging<br />
legacy with innovation for sustainable global<br />
success.<br />
Family businesses have been a cornerstone<br />
of the Arab world’s economy, demonstrating<br />
remarkable resilience and adaptability<br />
across generations. Their ability to balance<br />
tradition with modern innovation<br />
has allowed them to thrive in a rapidly<br />
changing market. These businesses not<br />
only sustain legacies but also drive significant<br />
economic growth in the region.<br />
As they evolve, the role of modern family<br />
offices becomes increasingly important in<br />
shaping the future of wealth management.<br />
By integrating new financial strategies with<br />
deep-rooted values, these family offices<br />
are ensuring that wealth is preserved and<br />
expanded for future generations, solidifying<br />
the influence of family businesses<br />
in the Arab world.<br />
10 www.thefinanceworld.com Sep <strong>2024</strong>
Family businesses in the Arab world<br />
often have deep historical roots,<br />
grounded in traditions and values<br />
passed down through generations. These<br />
businesses typically begin with a singular<br />
vision or entrepreneurial spirit, which<br />
over time builds a legacy of success and<br />
influence. This traditional approach has<br />
been vital in establishing strong family<br />
businesses that contribute significantly<br />
to the regional economy. The cultural<br />
importance of family values and cohesion<br />
often translates into business practices.<br />
Many Arab family businesses emphasize<br />
long-term relationships, trust, and stability.<br />
Legacy plays a central role in family<br />
businesses, encompassing several dimensions<br />
that significantly affect their<br />
performance and sustainability. According<br />
to a recent report by KPMG and the STEP<br />
Project Global Consortium legacy can<br />
be categorized into four types: material<br />
legacies (tangible assets), biological legacies<br />
(family name and bloodline), social<br />
legacies (shared values and community<br />
impact), and identity legacies (family<br />
stories and rituals).<br />
Family-run businesses are crucial to<br />
the UAE’s economy, making up 90% of<br />
private firms, employing over 70% of<br />
the workforce, and contributing 40%<br />
of the GDP. A survey shows Dubai’s<br />
next-generation leaders are focused on<br />
expanding into new sectors, with 87%<br />
interested in generative AI. However,<br />
succession planning is challenging, with<br />
45% noting reluctance from the current<br />
generation to step down. The Middle<br />
East and Africa have the highest legacy<br />
scores (81%), emphasizing collectivism<br />
and family history over individualism<br />
seen in the US and Europe.<br />
The UAE Perspective on Legacy<br />
In the UAE, the concept of legacy in<br />
family businesses is a significant factor<br />
in their performance and long-term success.<br />
The rich legacy of a family business<br />
extends beyond individual components,<br />
influencing business performance, family<br />
cohesion, and the ability to sustain entrepreneurial<br />
spirit across generations. The<br />
choices made by one generation affect<br />
those of subsequent generations. In the<br />
UAE, future generations are focusing<br />
on expanding their enterprises into new<br />
industries and markets.<br />
NextGen’s Role in Sustainability<br />
The younger generation, or NextGen, in<br />
family businesses is increasingly taking<br />
on the role of sustainability champions.<br />
They are highly engaged in sustainable<br />
development and exhibit a stronger sense<br />
of responsibility compared to previous<br />
generations. According to the report, 64%<br />
of Middle East NextGen members believe<br />
their businesses have a responsibility<br />
to combat climate change, a significant<br />
increase compared to 34% of the current<br />
generation. Additionally, 58% of NextGen<br />
members think their family businesses<br />
can lead in implementing sustainable<br />
practices, and 58% of companies in the<br />
Middle East view enhancing their brand<br />
and reputation as a key benefit of adopting<br />
an ESG strategy.<br />
However, there is a generational gap<br />
regarding technology adoption. While<br />
44% of the current generation believe<br />
their business already has strong digital<br />
capabilities, only 33% of NextGen members<br />
agree. Despite this, 84% of Middle<br />
East CEOs are investing in automation<br />
this year, with 66% planning to deploy<br />
advanced technologies such as cloud<br />
computing and AI.<br />
Economic Impact and Role of UAE<br />
Family Businesses<br />
Family businesses in the UAE are major<br />
contributors to the national economy and<br />
play a significant role in sustainability<br />
efforts. They control substantial financial<br />
resources, which are projected to make<br />
up 46% of the economy by 2026. This financial<br />
wealth, growing at a compounded<br />
annual rate of 6.7%, is crucial for funding<br />
Sustainable Development Goals (SDGs)<br />
and transformative projects. Family<br />
businesses have been pivotal in contributing<br />
to COP28’s success, showcasing<br />
the UAE’s commitment to a sustainable<br />
future. Their alignment with COP28’s<br />
goals underscores their dedication to<br />
balancing profitability with environmental<br />
and social responsibility.<br />
The top 10 Arab family businesses,<br />
including Egypt’s Mansour Group and<br />
the UAE’s Al-Futtaim Group and Al Ghurair<br />
Investment, have shown significant<br />
growth and influence. Other key players<br />
like Saudi Arabia’s Olayan Financing<br />
Company, Abdul Latif Jameel, Al Muhaidib<br />
Group, and SEDCO Holding also<br />
highlight the economic strength of Saudi<br />
Arabia. Majid Al Futtaim Holding (UAE),<br />
Al Ghurair Group (UAE), and Al-Faisal<br />
Holding (Qatar) further illustrate the<br />
region’s diverse business landscape. As<br />
these businesses navigate the challenges<br />
of sustainability and technological<br />
innovation, their ability to balance rich<br />
histories with the demands of a rapidly<br />
evolving market will determine their<br />
future success.<br />
Emerging Trends in UAE Family<br />
Businesses<br />
The UAE is positioning itself as a regional<br />
hub for family businesses, with<br />
Dubai emerging as a center for fund and<br />
asset management. Key trends include<br />
a focus on digital transformation to<br />
enhance customer experiences and gain<br />
a competitive edge, critical succession<br />
planning and governance supported by<br />
new legal frameworks like Dubai Law<br />
No. 9 of 2020, and considering IPOs for<br />
growth and expanded ownership. Additionally,<br />
there is a growing emphasis on<br />
sustainability and social impact to align<br />
with consumer values and strengthen<br />
brand reputation.<br />
Government Support and Future<br />
Outlook<br />
The UAE government supports family<br />
businesses through initiatives like the<br />
Dubai Family Business Office, which<br />
enhances their role in the economy and<br />
helps them adapt to future challenges.<br />
These initiatives underscore the government’s<br />
commitment to fostering a thriving<br />
family business sector, ensuring that these<br />
enterprises remain influential and resilient.<br />
As family businesses continue to navigate<br />
a transforming landscape, their ability to<br />
integrate advanced technologies, commit<br />
to sustainability, and adapt to emerging<br />
trends will be crucial in securing their<br />
place in the future.<br />
Arab family businesses like Mansour<br />
Group, Al-Futtaim Group, and Olayan<br />
Financing Company showcase the region’s<br />
economic heritage and innovative spirit.<br />
They face the challenge of integrating<br />
sustainability with technological advancements.<br />
While many still focus on<br />
social issues and have not fully embraced<br />
environmental goals, there is a growing<br />
trend towards sustainable practices.<br />
Balancing tradition with modernity, these<br />
businesses are set to lead in the Middle<br />
East and globally, demonstrating resilience<br />
and adaptability for long-term success.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 11
Business News<br />
DP <strong>World</strong> Achieves 3.3% Revenue Growth Amid Red Sea Challenges<br />
Dubai-based DP <strong>World</strong> remains<br />
“optimistic” about the industry’s<br />
medium to long-term outlook<br />
after achieving a 3.3 percent increase<br />
in revenue, reaching $9,335M in the<br />
first half of <strong>2024</strong>. Revenue growth was<br />
primarily driven by ports and terminals,<br />
with like-for-like gross container volumes<br />
rising 6.1 percent due to strong<br />
performance in the Americas, Europe,<br />
Asia Pacific, and Jebel Ali. However,<br />
adjusted EBITDA declined by 4.3<br />
percent to $2,497M, with a margin of<br />
26.8 percent, impacted by the Red Sea<br />
disruption and investments in logistics<br />
platform expansion. Sultan Ahmed Bin<br />
Sulayem, DP <strong>World</strong>’s Group Chairman<br />
and CEO, stated: “We are pleased to<br />
report resilient results, with revenue<br />
growth of 3.3 percent in the first half<br />
of the year, despite challenging macroeconomic<br />
conditions.”<br />
Dubai Chamber Ends<br />
Global Roadshows for<br />
North Star<br />
The Dubai Chamber of Digital<br />
Economy, part of Dubai Chambers,<br />
and the Dubai <strong>World</strong> Trade<br />
Centre have wrapped up a successful<br />
series of 12 international roadshows<br />
to promote Expand North Star, the<br />
world’s largest startup and investor<br />
event. The roadshows took place in<br />
Poland, India, Brazil, China, Morocco,<br />
France, Switzerland, the UK, and the<br />
Netherlands, engaging 1,500 startups<br />
and establishing partnerships with<br />
venture capital firms, incubators,<br />
accelerators, and government-backed<br />
organisations. The aim was to attract<br />
promising companies to Dubai. Expand<br />
North Star, organised by the Dubai<br />
<strong>World</strong> Trade Centre and hosted by the<br />
Dubai Chamber of Digital Economy,<br />
connects leading global startups with<br />
innovators, investors, and entrepreneurs,<br />
fostering growth in Dubai’s vibrant<br />
digital economy.<br />
UAE Developer Arada Expands to Australia Amid<br />
Housing Shortage<br />
Arada, a Dubai-based master<br />
developer, has launched its<br />
first international expansion by<br />
opening an office in Sydney, Australia.<br />
The developer is planning several<br />
residential and mixed-use projects in<br />
Sydney, aiming to address the city’s<br />
housing shortage with an initial portfolio<br />
valued at AED 6B. The first projects,<br />
offering over 2,500 homes along with<br />
commercial and retail spaces, will begin<br />
sales and construction in 2025, creating<br />
numerous job opportunities. Group<br />
CEO Ahmed Alkhoshaibi emphasised<br />
that Arada is committed to delivering<br />
community-focused developments in<br />
growth areas that align with government<br />
efforts to expand housing near<br />
Venture capital investments in the<br />
Middle East and North Africa<br />
(MENA) soared to $355M in<br />
July, marking an extraordinary 206%<br />
increase from June and a 260% surge<br />
compared to the same period last year,<br />
recent data reveals. This remarkable<br />
growth highlights the region’s resilience<br />
despite global economic challenges and<br />
escalating geopolitical tensions, particularly<br />
involving Israel and Iran. The<br />
steady number of deals at 38 showcases<br />
a stable and robust investment climate,<br />
as noted in Wamda’s monthly report.<br />
The surge in funding demonstrates<br />
strong investor confidence in the MENA<br />
startup ecosystem, even amidst wider<br />
transport hubs. The projects will include<br />
diverse housing options with innovative<br />
amenities such as green spaces and<br />
Wellfit health facilities, all designed<br />
by the renowned architectural firm<br />
Woods Bagot.<br />
MENA Startup Funding Soars 206% in July<br />
uncertainties. As the region navigates<br />
complex global dynamics, its startups<br />
are emerging as a promising frontier<br />
for venture capital.<br />
12 www.thefinanceworld.com Sep <strong>2024</strong>
UAE’s Yuze FinTech Secures $30M to Enhance SME Support<br />
Yuze, a FinTech company based<br />
in the UAE, has secured $30M<br />
in a funding round led by Osten<br />
Investments, as reported by Finextra<br />
Research. This investment is intended<br />
to drive the company’s expansion into<br />
new markets. Yuze specialises in providing<br />
financial services through a digital<br />
platform tailored to SMEs, e-traders,<br />
and freelancers, including business<br />
accounts and card programmes. With<br />
this fresh funding, Yuze aims to extend<br />
Shuaa Capital’s<br />
Recovery: New<br />
Products and Strategic<br />
Partnerships<br />
Dubai-listed Shuaa Capital is<br />
seeking to establish new partnerships<br />
both within the region<br />
and beyond, while its board investigates<br />
the causes behind its mounting<br />
losses over the past three quarters.<br />
The investment bank is focusing on the<br />
next phase of growth in GCC markets,<br />
amid better relations with investors,<br />
stakeholders, regulators, and clients,<br />
according to management. Shuaa may<br />
also consider selling its offshore vessel<br />
fleet, formed through the Stanford<br />
Marine and Allianz Marine deals, but<br />
only at the right price, as per CEO<br />
Wafik Ben Mansour. The company,<br />
which has been restructuring debt<br />
after an October 2023 bond default,<br />
reported a Q2 <strong>2024</strong> loss of AED 29.4M,<br />
narrowing from AED 95M in Q1, with<br />
revenues declining from AED 30M to<br />
AED 20M QoQ.<br />
its services beyond the UAE, with a<br />
target to serve one million SMEs and<br />
professional customers over the next<br />
five years. The company is focused on<br />
overcoming the challenges that SMEs<br />
and independent professionals face in<br />
accessing essential financial services,<br />
and this investment reinforces its commitment<br />
to financial inclusion and its<br />
growth ambitions.<br />
AD Ports Group Acquires Majority of Tbilisi Dry Port<br />
AD Ports Group (ADX: ADPORTS)<br />
has completed its acquisition of<br />
the Tbilisi Dry Port, securing a<br />
60% stake and becoming the majority<br />
owner. This advanced, rail-linked, and<br />
custom-bonded intermodal logistics hub<br />
in Georgia is set to begin operations in<br />
October <strong>2024</strong>. It will bolster AD Ports<br />
Group’s connectivity between Asia and<br />
Europe through the Middle Trade Corridor,<br />
linking Western Asia’s manufacturing<br />
centres with Eastern Europe’s markets<br />
by leveraging a network of ports across<br />
Kazakhstan, Azerbaijan, Armenia, Georgia,<br />
and Türkiye. Abdulaziz Zayed AlShamsi,<br />
Regional CEO of AD Ports Group,<br />
Dubai Financial Market (DFM) and<br />
Shenzhen Stock Exchange (SZSE)<br />
have signed a Memorandum of<br />
Understanding (MoU) to strengthen<br />
cross-border trading and investment<br />
opportunities. The MoU was signed by<br />
Chen Feng, Director of International<br />
Cooperation at SZSE, and Afra Al Suwaidi,<br />
CEO of Dubai Central Securities<br />
Depository, a subsidiary of DFM. Witnesses<br />
included Sha Yan, Chairperson<br />
emphasised the company’s commitment<br />
to strengthening global supply chains<br />
and enhancing trade connections. The<br />
hub, positioned between the Caspian<br />
and Black Seas, features facilities for<br />
container handling, warehousing, and<br />
vehicle storage, and includes direct<br />
railway links to Türkiye and key ports in<br />
Georgia, Bulgaria, and Romania.<br />
DFM, Shenzhen SE Sign MoU for Cross-Border<br />
Financial Collaboration<br />
of SZSE, Ou Boqian, Consul General of<br />
China in Dubai, and Hamed Ali, CEO of<br />
DFM & Nasdaq Dubai. The partnership<br />
will promote joint initiatives like roadshows,<br />
research, and dual-listing efforts,<br />
enhancing the capital markets in both the<br />
UAE and China. The collaboration aims<br />
to support cross-border financing, market<br />
development, and regulatory practices,<br />
fostering deeper ties between the two<br />
financial markets.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 13
Sustainability Cities<br />
Source: Ai generated<br />
Sharjah Sustainable City:<br />
A Billion-Dirham Success<br />
Story in Eco-Friendly<br />
Urban Development<br />
Pioneering sustainable living in Sharjah:<br />
Where green innovation meets urban comfort<br />
and economic growth.<br />
In a remarkable testament to the growing<br />
demand for sustainable living solutions,<br />
Sharjah Sustainable City has achieved a<br />
significant milestone, with sales transaction<br />
values surpassing AED 2.5 billion<br />
across all four phases of its development.<br />
This achievement not only underscores<br />
the project’s success but also highlights<br />
the increasing awareness and desire for<br />
eco-friendly residential options in the UAE.<br />
Developed as a joint venture between<br />
Sharjah Investment, Development Authority,<br />
and Diamond Developers, Sharjah Sustainable<br />
City stands as the first sustainable<br />
master-planned residential community in<br />
the Emirates. The project, now has only a<br />
handful of units remaining, presenting a<br />
final opportunity for prospective buyers<br />
to become part of this groundbreaking<br />
sustainable community.<br />
14 www.thefinanceworld.com Sep <strong>2024</strong>
The success of Sharjah Sustainable<br />
City aligns perfectly with the<br />
broader economic growth trends<br />
in Sharjah’s real estate sector. In the<br />
first half of <strong>2024</strong>, the emirate witnessed<br />
a substantial 35.6% increase in the value<br />
of real estate trade compared to the same<br />
period in the previous year. This positive<br />
momentum has not only attracted investors<br />
and buyers but has also bolstered<br />
confidence in Sharjah’s property market,<br />
with Sharjah Sustainable City playing a<br />
pivotal role in this upward trajectory.<br />
What sets Sharjah Sustainable City<br />
apart is its unwavering commitment to<br />
sustainability. As a world-class mixed-use<br />
development, it adheres to the highest<br />
standards of social, environmental, and<br />
economic sustainability. The project’s<br />
success is a clear indication of its ability<br />
to capture the imagination of individuals<br />
and families eager to embrace an<br />
eco-friendly lifestyle without compromising<br />
on comfort or quality. The development<br />
offers a diverse range of housing options,<br />
including three, four, and five-bedroom<br />
villas. Prices for the remaining units<br />
range from AED 2.7 million to AED 3.75<br />
million, catering to various preferences<br />
and budgets. With the first two phases<br />
already completed and occupied, the<br />
third phase is scheduled for imminent<br />
handover, while the final phase is set to<br />
follow shortly thereafter.<br />
To further entice potential buyers,<br />
Sharjah Sustainable City is offering<br />
compelling incentives, including zero<br />
service fees for the first five years and<br />
competitive payment plans available to<br />
all nationalities. These attractive offers<br />
aim to make sustainable living more accessible<br />
and appealing to a wider range<br />
of residents and investors.<br />
Yousif Ahmed Al-Mutawa, expressed<br />
his enthusiasm for the project’s success,<br />
stating, “We are thrilled by the overwhelming<br />
response to Sharjah Sustainable<br />
City — a clear indicator of the rising<br />
demand for sustainable living solutions<br />
in Sharjah. As a strategic supporter of<br />
the Government of Sharjah’s sustainable<br />
development objectives, we are proud<br />
to see our vision of an eco-conscious<br />
community resonating so strongly with<br />
residents and investors from different<br />
countries.”<br />
Spanning an impressive 7.2 million<br />
square feet in the Al Rahmaniya area of<br />
Sharjah, the city has evolved beyond a mere<br />
residential development. It now stands<br />
as a model for future urban planning,<br />
embodying a comprehensive approach to<br />
sustainability that addresses critical issues<br />
such as food security, water, and energy<br />
management, and the conservation of<br />
natural resources. The community boasts<br />
an array of amenities designed to support<br />
a sustainable lifestyle. Residents can<br />
enjoy urban farming initiatives, extensive<br />
green spaces, walking and cycling tracks,<br />
state-of-the-art gyms, a swimming pool,<br />
electric vehicle charging stations, and a<br />
library. These features not only enhance<br />
the quality of life for residents but also<br />
contribute to the overall sustainability<br />
goals of the project.<br />
Yousif Ahmed Al-Mutawa, Chief Executive Officer of Sharjah Sustainable City<br />
One of the key selling points of Sharjah<br />
Sustainable City is its innovative<br />
approach to energy efficiency. All villas<br />
are equipped with smart home technology<br />
and energy-efficient appliances. The use<br />
of thermal insulating construction materials,<br />
smart home automation systems,<br />
energy-saving electrical fittings, and<br />
rooftop solar PVC installations collectively<br />
contribute to significant energy savings,<br />
with residents potentially saving up to<br />
50% on their utility bills.<br />
The development’s commitment to<br />
sustainability extends beyond its physical<br />
infrastructure. Sharjah Sustainable City<br />
places a strong emphasis on education<br />
and community engagement, regularly<br />
organizing workshops and events focused<br />
on various aspects of sustainable living.<br />
These initiatives cover topics such as<br />
sustainable food production, water conservation,<br />
and energy efficiency, with a<br />
particular focus on engaging women and<br />
children in the community.<br />
By aligning with the United Nations<br />
Sustainable Development Goals, Sharjah<br />
Sustainable City is not only creating<br />
an exceptional living environment but<br />
also inspiring a low-carbon future. The<br />
project serves as a living laboratory<br />
for sustainability research and applied<br />
learning, offering valuable insights across<br />
all sustainability disciplines.<br />
As Sharjah Sustainable City nears<br />
completion and welcomes more residents,<br />
it continues to set new benchmarks for<br />
sustainable urban development. The<br />
project’s success story serves as an<br />
inspiration for similar initiatives worldwide,<br />
demonstrating that it is possible<br />
to create thriving communities that<br />
prioritize environmental stewardship<br />
without sacrificing modern comforts or<br />
economic viability.<br />
Sharjah Sustainable City represents a<br />
significant leap forward in sustainable<br />
urban development, not just for the<br />
emirate of Sharjah, but for the entire<br />
region. Its success is a clear indication<br />
that the future of residential development<br />
lies in creating harmonious ecosystems<br />
where human needs and environmental<br />
concerns are balanced. As the remaining<br />
villas are snapped up by eager buyers,<br />
Sharjah Sustainable City stands poised to<br />
become a globally renowned example of<br />
how visionary planning and commitment<br />
to sustainability can transform the urban<br />
landscape for generations to come.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 15
Personal <strong>Finance</strong><br />
Source: freepik.com<br />
Planning for<br />
Retirement: Building<br />
a Secure Future in<br />
the UAE<br />
Strategic planning and smart saving<br />
pave the way to a secure UAE<br />
retirement.<br />
Planning for retirement in the UAE demands<br />
careful consideration and strategic<br />
planning due to its dynamic financial<br />
landscape. With a growing emphasis on<br />
long-term financial security, residents must<br />
navigate various factors, including rising<br />
living costs and evolving pension schemes.<br />
This guide covers essential aspects of retirement<br />
planning, providing practical tips<br />
for setting clear goals, managing investments,<br />
and ensuring a financially stable<br />
future. By understanding these core principles,<br />
individuals can effectively prepare<br />
for a comfortable retirement, adapting<br />
their strategies to the unique opportunities<br />
and challenges presented by the UAE’s<br />
financial environment. Thoughtful planning<br />
today ensures a secure and fulfilling<br />
retirement tomorrow.<br />
16 www.thefinanceworld.com Sep <strong>2024</strong>
Effective retirement planning begins<br />
with understanding your retirement<br />
goals and personal aspirations.<br />
It’s crucial to evaluate what you envision<br />
for your retirement to determine<br />
how much you need to save. Start by<br />
considering your lifestyle expectations,<br />
such as whether you plan to stay in<br />
the UAE, relocate, or split your time<br />
between different locations. Your daily<br />
activities, travel frequency, and housing<br />
preferences will significantly influence<br />
your financial needs.<br />
Healthcare is another critical aspect<br />
of retirement planning. As you age,<br />
medical expenses will likely increase.<br />
Anticipate potential healthcare needs,<br />
including routine check-ups, long-term<br />
care, or chronic conditions, and factor<br />
these into your retirement budget. By<br />
clearly defining these goals and expectations,<br />
you can create a roadmap for<br />
your financial planning.<br />
Estimating Retirement Expenses<br />
Once you have a clear understanding of<br />
your retirement goals, estimating your<br />
retirement expenses is the next crucial<br />
step. Begin by evaluating daily living<br />
costs, which include housing, utilities,<br />
groceries, transportation, and other<br />
essential expenses. Whether you own<br />
your home outright or have mortgage<br />
payments, these costs form the foundation<br />
of your retirement budget.<br />
Healthcare expenses should be a significant<br />
part of your retirement plan. As<br />
medical costs can rise substantially over<br />
time, allocate a considerable portion of<br />
your retirement savings to cover these<br />
expenses. Additionally, consider the<br />
impact of inflation on your savings. What<br />
seems sufficient today may not be adequate<br />
in the future due to rising prices.<br />
Incorporate an inflation factor into your<br />
calculations to ensure your savings will<br />
cover your needs throughout retirement.<br />
Determining How Much to Save<br />
Setting clear savings benchmarks is<br />
essential for achieving your retirement<br />
goals. A widely recommended approach<br />
is to save between 15-20% of your gross<br />
income each year. The exact amount can<br />
vary based on your income level, lifestyle<br />
expectations, and the age at which you<br />
start saving.<br />
A common target is to accumulate<br />
10-15 times your final annual salary by<br />
retirement. For example, if you expect<br />
a salary of AED 300,000 annually at retirement,<br />
your goal should be between<br />
AED 3 million to AED 4.5 million. This<br />
target provides a buffer to accommodate<br />
inflation, healthcare costs, and potential<br />
longevity.<br />
Utilizing retirement calculators can<br />
simplify the process of estimating how<br />
much you need to save. By entering details<br />
such as your current age, retirement<br />
age, current savings, and expected rate<br />
of return, these calculators project your<br />
savings growth over time. They account<br />
for variables like inflation and investment<br />
returns, helping you determine if your<br />
current strategy will meet your goals.<br />
Exploring Additional Income Sources<br />
In addition to traditional savings, consider<br />
diversifying your sources of retirement<br />
income. Corporate pension schemes and<br />
end-of-service benefits are significant<br />
components of retirement planning in<br />
the UAE. Many employers offer pension<br />
schemes that provide regular payments<br />
upon retirement. For expatriates, endof-service<br />
benefits can be a substantial<br />
lump sum paid out upon leaving employment,<br />
which can be allocated toward<br />
retirement savings.<br />
Investing wisely is another crucial<br />
aspect. Diversify your investment portfolio<br />
to include a mix of assets such as<br />
stocks, bonds, mutual funds, and real<br />
estate. Each type of investment carries<br />
its own risk and return profile, so balancing<br />
these can help optimize growth<br />
while managing risk. Regularly review<br />
and adjust your investment strategy to<br />
align with market conditions and your<br />
evolving retirement goals.<br />
Starting Early and Adjusting<br />
Over Time<br />
Starting early is one of the most effective<br />
strategies for retirement savings due to<br />
the power of compound interest. Compound<br />
interest allows your investments<br />
to generate returns on their returns,<br />
leading to exponential growth over time.<br />
By beginning to save in your 20s or 30s,<br />
you benefit from a longer investment<br />
horizon, which can significantly enhance<br />
your savings.<br />
As your career progresses and financial<br />
situation evolves, adjust your savings<br />
plan accordingly. Financial milestones<br />
such as salary increases, promotions, or<br />
bonuses present opportunities to boost<br />
your retirement contributions. Major life<br />
events like marriage, starting a family, or<br />
purchasing a home may also influence your<br />
financial priorities. Regularly revisiting<br />
and potentially revising your retirement<br />
savings plan will help ensure that you<br />
remain on track to meet your goals.<br />
Maximizing Employer Contributions<br />
and Professional Advice<br />
Maximizing employer contributions is a<br />
crucial strategy in retirement planning.<br />
Many UAE employers offer pension<br />
schemes and other benefits that can<br />
significantly enhance your retirement<br />
savings. These contributions often include<br />
matching funds or additional retirement<br />
benefits, which can boost your savings<br />
without additional out-of-pocket costs.<br />
Understand your employer’s contribution<br />
policies and ensure you are contributing<br />
enough to qualify for matching funds.<br />
Seeking professional financial advice is<br />
also essential. Even if you feel confident<br />
managing your finances, consulting a financial<br />
advisor can provide personalized<br />
insights and help structure a well-aligned<br />
retirement plan. Financial advisors can<br />
offer valuable guidance on investment<br />
strategies, savings plans, and how to adapt<br />
your approach as circumstances change.<br />
Planning for retirement in the UAE<br />
involves a comprehensive approach that<br />
includes assessing your goals, estimating<br />
expenses, setting savings benchmarks,<br />
exploring additional income sources,<br />
starting early, and maximizing employer<br />
contributions. By leveraging these strategies<br />
and seeking professional advice,<br />
you can build a secure financial future<br />
and enjoy a comfortable retirement.<br />
Investing in thoughtful and strategic<br />
planning today will pave the way for a<br />
brighter, more stable tomorrow.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 17
Opinion<br />
Source: Ai generated<br />
The Future of Carbon<br />
Credits: How Sustainable<br />
Fintech is Shaping Net-<br />
Zero Emissions in the<br />
Arab <strong>World</strong><br />
Carbon credits and fintech innovations are<br />
your gateway to profitable sustainability in<br />
the Middle East.<br />
As the global race to combat climate<br />
change intensifies, the UAE and Saudi<br />
Arabia are at the forefront of adopting sustainable<br />
practices, positioning themselves<br />
as leaders in the Arab world. Central to<br />
this transformation are carbon credits and<br />
fintech innovations, which are unlocking<br />
unprecedented investment opportunities<br />
in the region’s green economy. Carbon<br />
credits offer a scalable way for companies<br />
to offset their carbon emissions by<br />
investing in environmental projects. The<br />
voluntary carbon market in the UAE and<br />
Saudi Arabia is anticipated to experience<br />
explosive growth, driven by both regulatory<br />
support and corporate demand for<br />
sustainability. This market expansion<br />
presents lucrative opportunities for investors<br />
looking to capitalize on green<br />
initiatives.<br />
18 www.thefinanceworld.com Sep <strong>2024</strong>
Carbon credits are essential in the<br />
fight against climate change, enabling<br />
businesses to offset their carbon<br />
emissions by investing in projects that<br />
reduce or remove CO2. The voluntary<br />
carbon market (VCM) is expected to<br />
skyrocket from $2 billion in 2022 to $100<br />
billion by 2030, according to PwC and<br />
Morgan Stanley. This 50x growth signals<br />
untapped potential, driven by corporate<br />
responsibility and climate regulations.<br />
The UAE’s Net Zero by 2050 initiative<br />
and Saudi Arabia’s Vision 2030 are spearheading<br />
regional efforts, attracting both<br />
domestic and international investment.<br />
Regulatory frameworks like the Dubai<br />
Financial Market’s (DFM) ESG transparency<br />
guidelines are making the UAE<br />
a hub for carbon markets, encouraging<br />
capital to flow into sustainable projects.<br />
Fintech’s Role in Driving<br />
Carbon Markets<br />
Fintech is revolutionizing the carbon<br />
credit landscape by enhancing transparency,<br />
security, and scalability. Blockchain<br />
technology ensures that each transaction<br />
is verifiable, traceable, and free<br />
from greenwashing. Platforms like Fils<br />
are leveraging blockchain to enhance<br />
trust in carbon credits, ensuring they<br />
meet strict standards and eliminating<br />
double-counting.<br />
Additionally, AI and data analytics enable<br />
real-time assessments of carbon credit<br />
quality, offering investors confidence that<br />
their capital is supporting high-integrity<br />
projects. This technological edge presents<br />
significant opportunities for fintech firms<br />
to scale their platforms and expand into<br />
other ESG-driven markets.<br />
Carbon Pricing Trends and Investment<br />
Appeal<br />
One critical factor driving the carbon<br />
markets is the rise in carbon pricing. As<br />
governments impose stricter regulations<br />
on emissions, the cost of emitting CO2<br />
has steadily increased.<br />
Carbon prices in regulated markets, like<br />
the European Union Emissions Trading<br />
System (EU ETS), have surged, recently<br />
hitting over €100 per ton for the first<br />
time. This rise in pricing is encouraging<br />
more companies to seek offsets through<br />
voluntary carbon credits, further accelerating<br />
demand in the market.<br />
In the Arab world, where carbon pricing<br />
frameworks are still evolving, nations are<br />
closely watching these trends. As prices<br />
continue to rise globally, voluntary carbon<br />
markets will become an attractive<br />
option for companies across the region.<br />
Investors, therefore, stand to benefit from<br />
the increasing cost of carbon emissions,<br />
as businesses will increasingly turn to<br />
carbon credits to mitigate their compliance<br />
costs and environmental impact.<br />
Why Investors Should Pay Attention<br />
The Arab world is rapidly emerging as a<br />
hotspot for green finance and sustainable<br />
innovation. The UAE and Saudi Arabia<br />
are setting the stage for a broader regional<br />
movement, and their leadership<br />
is paving the way for other Arab nations<br />
to follow. Carbon markets are growing<br />
rapidly, and fintech is playing a crucial<br />
role in integrating ESG into everyday<br />
transactions, making the region a focal<br />
point for global investment.<br />
Beyond the UAE and Saudi Arabia,<br />
countries like Egypt, Jordan, and Morocco<br />
are advancing renewable energy<br />
and environmental finance, boosting<br />
the region’s overall growth potential.<br />
For investors, this creates a compelling<br />
environment to diversify portfolios with<br />
sustainable assets and fintech-driven<br />
solutions.<br />
Nameer Khan,<br />
Founder and CEO of Fils<br />
Explosive Growth of Voluntary Carbon<br />
Markets<br />
The voluntary carbon market, projected<br />
to grow from $2 billion to $100 billion by<br />
2030, offers investors a rare opportunity<br />
to tap into a high-growth market. Complementing<br />
this is the mandatory carbon<br />
market, which is expected to reach<br />
$5.3 trillion in the same timeframe. The<br />
massive scale at which carbon markets<br />
will operate represents a significant<br />
upside for investors.<br />
Fintech platforms like Fils are well-positioned<br />
to capitalize on this explosive<br />
growth by facilitating carbon credit<br />
transactions and enabling businesses to<br />
seamlessly access these markets. With<br />
fintech leading the way in ESG integration,<br />
the opportunity for investors to<br />
drive significant returns is substantial.<br />
The Arab <strong>World</strong>: A Growing Leader<br />
in Sustainability<br />
While the UAE and Saudi Arabia are<br />
taking the lead, their efforts are creating<br />
a ripple effect across the region. The Regional<br />
Voluntary Carbon Market Company<br />
(RVCMC), supported by Saudi Arabia’s<br />
Public Investment Fund (PIF), is positioning<br />
the Kingdom as a hub for carbon<br />
trading, which will further accelerate<br />
investment flows into carbon markets<br />
and sustainable finance throughout the<br />
Arab world.<br />
The region’s push toward green finance<br />
is not just a regulatory trend but<br />
a fundamental shift in how economies<br />
are structured. Fintech is the driving<br />
force behind this transformation, making<br />
it easier for investors to participate in<br />
sustainable markets and carbon credit<br />
trading.<br />
Opportunities and Challenges<br />
While growth prospects are vast, challenges<br />
remain. Investors need to navigate<br />
regulatory complexities across borders<br />
and assess the technological infrastructure<br />
required to support cross-border carbon<br />
trading. However, with strong government<br />
backing from countries like the UAE and<br />
Saudi Arabia, the regulatory environment<br />
is evolving rapidly to support fintech<br />
innovations in sustainable finance.<br />
For investors looking to capitalize on<br />
this transformation, the Arab world’s<br />
forward-thinking approach to carbon<br />
markets and fintech presents a lucrative<br />
opportunity. The combination of regulatory<br />
support, technological innovation,<br />
and market growth is setting the stage<br />
for substantial returns.<br />
Carbon credits and fintech are reshaping<br />
the financial landscape, and the Arab<br />
world is emerging as a leader in this<br />
global transformation. For investors, this<br />
is an opportunity that cannot be missed.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 19
OVER<br />
S<br />
Cover Story<br />
20 www.thefinanceworld.com Sep <strong>2024</strong>
TORY<br />
Sep <strong>2024</strong> www.thefinanceworld.com 21
Cover Story<br />
Redefining Possibilities<br />
Eng. Amer<br />
Khansaheb<br />
CEO and Board Member, Union Properties<br />
22 www.thefinanceworld.com Sep <strong>2024</strong>
In the dynamic landscape of the UAE’s Real Estate sector, the property market continues to experience strong growth, driven<br />
by robust demand, healthy economic performance, and significant foreign interest. In Dubai alone, both sale prices and<br />
rentals have registered annual increases of around 21%. A prominent name in this flourishing market is Union Properties,<br />
the first publicly listed Real Estate development company in the UAE. With over three decades of excellence, the Company has<br />
delivered landmark projects and built iconic communities across the country, cementing its reputation as a leader in the sector.<br />
Under the leadership of Eng. Amer Khansaheb, CEO and Board Member of Union Properties, the Company has emerged as<br />
a transformative force in the Real Estate sector. With a rich blend of civil engineering, financial analysis, and project management<br />
expertise, Amer brings a multidisciplinary approach that is crucial for navigating today’s complex business environment.<br />
His diverse educational background and broad skill set exemplify the innovative thinking and leadership needed for success<br />
in this dynamic industry.<br />
At the beginning of my career, I invested time to<br />
diversify both my education and experience,”<br />
Khansaheb reflects, highlighting his commitment to acquiring broad-based knowledge.<br />
Union Properties PJSC, a public joint<br />
stock company listed in 1993, launched<br />
its property development in Dubai in<br />
1987 with a diverse investment portfolio<br />
and has since grown to become one of<br />
the leading developers in the UAE with<br />
a proven track record of delivering<br />
top-notch landmark projects. Iconic<br />
developments such as MotorCity, Green<br />
Community, Uptown Mirdif, Index Tower,<br />
and Limestone House in DIFC are just a<br />
few examples of the prestigious projects<br />
that define Union Properties’ portfolio.<br />
In late 2021, Khansaheb took over Union<br />
Properties, guiding the Company towards<br />
a new era of growth and innovation. His<br />
mandate was to revitalize the Company,<br />
aiming for sustainable expansion and<br />
enhanced shareholder value.<br />
During a recent conversation, Khansaheb<br />
shared his future plans, emphasizing<br />
his vision to build on Union Properties’<br />
strong foundation while embracing new<br />
growth opportunities.<br />
In an Exclusive Conversation with Eng. Amer Khansaheb<br />
Q. What is your vision for Union<br />
Properties, and how it aligns with<br />
the evolving landscape of Real Estate<br />
in the UAE?<br />
My definition of a vision is to be<br />
open-ended, inspiring, and wide. I believe<br />
a vision for any business needs to<br />
be large and motivating.<br />
At Union Properties, we strive to impact<br />
people’s lives positively, focusing<br />
on three key factors that align with the<br />
evolving Real Estate landscape in the<br />
UAE. First and foremost, we prioritize<br />
quality of life. We understand that we’re<br />
not just delivering brick-and-mortar<br />
structures; we’re creating spaces where<br />
life unfolds. In our developments, people<br />
live, children grow, families form, and<br />
communities thrive. We aim to have a<br />
positive impact not just on individuals,<br />
but on families, communities, and the<br />
environment as a whole. This holistic<br />
approach reflects the growing demand<br />
in the UAE for developments that enhance<br />
the overall well-being and foster<br />
community engagement.<br />
Secondly, we place a strong emphasis<br />
on sustainability and smart buildings. We<br />
live in an ever-changing world, and the<br />
pace of change is rapid. Our focus is on<br />
how our developments can stay relevant<br />
10, 20, or even 30 years from now. We’ve<br />
seen how technological advancements,<br />
like smartphones, have fundamentally<br />
changed the way people interact and<br />
live. Companies that once dominated<br />
industries can become irrelevant almost<br />
overnight. With this in mind, we try to<br />
anticipate future needs and design our<br />
buildings to be adaptable and smart. We<br />
ask ourselves: What will the world look<br />
like two decades from now? What will be<br />
the requirements and emphases of future<br />
generations? By focusing on delivering<br />
developments that will continue to be<br />
relevant, we align ourselves with the<br />
UAE’s push towards smart cities and<br />
sustainable urban development.<br />
The third factor, which is of paramount<br />
importance, is our commitment to climate<br />
neutrality. Climate change is a global concern<br />
that impacts everyone, and people<br />
are becoming increasingly aware of and<br />
interested in this issue. As developers,<br />
we have a significant responsibility to<br />
deliver buildings that can help sustain<br />
life for future generations. We carefully<br />
consider how each of our buildings will<br />
impact the climate and the environment.<br />
This approach not only fulfils our moral<br />
obligation but also makes good business<br />
sense. As people become more conscious<br />
of climate change and sustainability, they’re<br />
actively seeking products that benefit<br />
them and the planet in the long term.<br />
By intertwining these three factors -<br />
family-centric design, futuristic vision,<br />
and sustainability - we position Union<br />
Properties at the forefront of Real Estate<br />
development in the UAE. Our vision isn’t<br />
just about constructing buildings; it’s about<br />
creating living environments designed<br />
for the future. We’re committed to not<br />
only meeting current market demands<br />
but also anticipating future trends. This<br />
approach ensures our continued relevance<br />
and success in the rapidly evolving Real<br />
Estate industry of the UAE.<br />
Q. With your deep understanding<br />
of the Real Estate market and your<br />
leadership experience, what advice<br />
would you give to an investor looking<br />
to invest $5M in Dubai’s Real Estate<br />
Sector?<br />
Over the past two decades, Dubai’s<br />
Real Estate market has experienced<br />
remarkable growth, elevating itself to a<br />
Sep <strong>2024</strong> www.thefinanceworld.com 23
Cover Story<br />
global scale. Today, we have a diverse<br />
range of products, catering to various<br />
investor needs and preferences. However,<br />
in this dynamic environment, it’s crucial<br />
to understand that investing in Real Estate<br />
is fundamentally about investing in the<br />
future, not the past.<br />
Any investor entering the Dubai market<br />
needs to carefully consider how their<br />
chosen property will stand among other<br />
developments in the years to come. The<br />
key question is: Will this building remain<br />
relevant in the future? This forward-thinking<br />
approach is essential in a rapidly<br />
evolving urban landscape like Dubai’s.<br />
Let’s consider a current trend as an example:<br />
the shift towards electric vehicles.<br />
Globally, we’re witnessing a transition<br />
from conventional combustion engines to<br />
electric vehicles, a move that’s increasingly<br />
mandated by governments worldwide.<br />
It’s reasonable to project that within the<br />
next decade, many manufacturers will<br />
phase out combustion engines in favor<br />
of EVs. In this context, a critical question<br />
for Real Estate investors become: Is the<br />
building equipped to install EV chargers?<br />
This simple query illustrates a broader<br />
point about future readiness in Real<br />
Estate. But EV readiness is just one of<br />
many future considerations.<br />
Investors need to<br />
think holistically<br />
about life<br />
requirements<br />
a decade from<br />
now.”<br />
This could encompass a wide range<br />
of factors, from advanced connectivity<br />
for smart home systems to adaptable<br />
spaces that can evolve with changing<br />
work-life patterns. It’s important to note<br />
that this future-focused approach often<br />
contrasts with the short-term thinking<br />
we sometimes see in the market.<br />
In Dubai’s competitive and forward-looking<br />
Real Estate market, the most successful<br />
investors are those who can anticipate and<br />
adapt to future trends. They understand<br />
that a property’s value isn’t just about its<br />
current amenities or location, but about<br />
its potential to meet the needs of future<br />
residents and businesses. As developers<br />
and industry leaders, it’s our responsibility<br />
to not only create properties that<br />
meet current demands but to envision<br />
and build for the future. This means<br />
integrating adaptable designs, sustainable<br />
technologies, and forward-thinking<br />
amenities that will ensure our developments<br />
remain relevant and valuable for<br />
decades to come.<br />
Q. Real estate is often described<br />
as a 7-10-year cycle, and we’re four<br />
years into the post-COVID cycle.<br />
Drawing on your expertise and years<br />
of experience, how do you perceive<br />
the current Real Estate cycle in the<br />
UAE, especially in the light of post-<br />
COVID recovery?<br />
Economic history has consistently<br />
shown that Real Estate is inherently<br />
cyclical. There is a significant contrast<br />
between the UAE today and its condition<br />
before the COVID-19 pandemic. The<br />
government’s effective management<br />
during and after the pandemic has set the<br />
UAE apart, earning it significant global<br />
recognition. We see the effects of this<br />
transformation firsthand: an influx of<br />
new businesses, large-scale corporations,<br />
and high-net-worth individuals relocating<br />
their family offices and residences has<br />
created a substantial demand in the Real<br />
Estate market.<br />
This shift is also a result of the government’s<br />
initiatives to improve the business<br />
environment, making it more attractive<br />
for new enterprises. This change is<br />
particularly evident in the commercial<br />
Real Estate sector. For the first time in<br />
15 or 16 years, we are experiencing a<br />
noticeable shortage of office space. This<br />
marks a significant departure from the<br />
past decade and a half, during which residential<br />
properties dominated the market.<br />
The rising value of office space acts as<br />
a reliable indicator of economic health.<br />
As long as the economy remains dynamic,<br />
continues to grow, and attracts<br />
a rising population, demand will persist.<br />
Although Real Estate markets are cyclical,<br />
the current economic conditions suggest<br />
a strong outlook for the UAE Real Estate<br />
market in the short to medium term.<br />
The increase in office space rents<br />
reflects the shortage driven by the surge<br />
in businesses setting up operations<br />
here. This trend underscores the UAE’s<br />
growth and appeal as a global business<br />
hub. The government’s role in enhancing<br />
the economic environment and making<br />
it more conducive to business has been<br />
pivotal in driving this positive change.<br />
Q. Given your role as CEO and Board<br />
Member of Union Properties, how<br />
has your long-standing experience<br />
shaped the growth and success of<br />
Union Properties?<br />
When I assumed the role of CEO and<br />
Board Member at Union Properties, our<br />
first focus was to thoroughly review the<br />
business model and set out to redesign<br />
the entire organizational structure.<br />
Our primary objectives were to create<br />
synergies, enhance efficiencies,<br />
and establish centers of excellence at<br />
the corporate level. This approach was<br />
crucial for improving governance and<br />
control. The results of these efforts were<br />
transformative; within just 12 months,<br />
we successfully shifted from operational<br />
losses to operating profits.<br />
Building on this initial success, we<br />
continued to implement strong governance<br />
frameworks and robust control<br />
measures, all while encouraging our team<br />
to excel. One of our greatest assets at<br />
Union Properties is our people – we have<br />
numerous smart, hardworking, and driven<br />
individuals who were simply looking for<br />
an opportunity to shine.<br />
As they witnessed the positive changes<br />
taking place and felt the renewed focus<br />
on their potential, they saw the board’s<br />
commitment to growing the business<br />
and doing what’s right. This environment<br />
unleashed their potential, leading to<br />
remarkable results.<br />
In 2023, we achieved nearly 21% growth<br />
in our top line, which is a testament to<br />
our team’s hard work and dedication.<br />
Even more impressively, our operating<br />
profit grew tenfold. We’re continuing<br />
this growth trajectory into <strong>2024</strong>, which<br />
is incredibly encouraging for the future<br />
of Union Properties.<br />
Our turnaround strategy unfolded<br />
in multiple phases. The first phase focused<br />
on redesigning the organizational<br />
structure, improving efficiencies, and<br />
reducing costs – essentially transforming<br />
our operational losses into profits. Once<br />
24 www.thefinanceworld.com Sep <strong>2024</strong>
we accomplished this, we moved into<br />
the second phase, which centered on<br />
deleveraging the business. This involved<br />
renegotiating our debts and restructuring<br />
the financial capital of the Company.<br />
Now, we’re in the third phase: growth.<br />
We’re back to launching Real Estate<br />
developments, with our first project,<br />
TAKAYA, already generating great demand<br />
in pre-launch sales. The response has<br />
been so positive that we’re accelerating<br />
the timeline for our next project. It’s a<br />
wonderful challenge to face – the need<br />
to continually feed our inventory due to<br />
high demand. Throughout this process,<br />
I’ve learned the importance of identifying<br />
problems holistically and addressing<br />
them systematically. Equally crucial<br />
has been recognizing the potential in<br />
our team members and providing them<br />
with the opportunity to contribute to our<br />
overall growth.<br />
3 Key Highlights Of<br />
Takaya Project<br />
Quality of Life<br />
Sustainable and<br />
Smart Buildings<br />
Climate Neutrality<br />
As we move forward, we’re excited<br />
about the future of Union Properties.<br />
The turnaround we’ve achieved is not<br />
just about numbers; it’s about creating a<br />
sustainable, efficient, and growth-oriented<br />
Company that’s well-positioned to meet<br />
the evolving demands of Dubai’s dynamic<br />
Real Estate market. Our journey so far<br />
has been remarkable, and I’m confident<br />
that with our dedicated team and strategic<br />
vision, we’ll continue to achieve new<br />
heights in the coming years.<br />
Q. Union Properties has been at<br />
the forefront of luxury Real Estate<br />
development under your leadership.<br />
Could you share your insights on how<br />
the Takaya project in Motor City<br />
reflects Dubai’s shift towards luxury<br />
and comfortable living?<br />
In developing Takaya, we’ve adhered<br />
to the three key factors that drive our<br />
vision: quality of life, smart building<br />
management, and sustainability.<br />
Firstly, we place immense emphasis<br />
on quality of life. Every layout in Takaya<br />
has been meticulously designed with<br />
attention to detail, considering the flow<br />
of people within the buildings and the<br />
provision of amenities. We’re proud to<br />
offer an extensive range of facilities,<br />
including jogging tracks, multiple swimming<br />
pools, multipurpose halls, and even<br />
cinemas. This comprehensive approach to<br />
amenities is somewhat unique in Dubai’s<br />
Real Estate landscape.<br />
What sets Takaya apart is its sheer<br />
scale. We’re working with a vast plot<br />
of approximately 440,000 square feet,<br />
featuring a stunning 500-meter road<br />
frontage. This allows us to incorporate<br />
beautifully designed retail spaces on the<br />
ground floor and create expansive open<br />
areas within the project. Our podium level,<br />
for instance, features a huge garden, offering<br />
residents a park-like environment<br />
within their building complex - a rarity<br />
in urban developments.<br />
The second factor we’ve embedded<br />
into Takaya’s design is advanced building<br />
and energy management solutions.<br />
We’re utilizing cutting-edge technology<br />
to optimize building operations, focusing<br />
on reducing unnecessary costs from<br />
energy consumption and soft services.<br />
This approach allows us to maintain a<br />
high level of service while delivering cost<br />
efficiencies. The result? Lower operating<br />
costs for residents and an increased buffer<br />
for continual reinvestment in the building,<br />
ensuring it maintains and even improves<br />
its value over the coming decades.<br />
Sustainability, our third focus, is crucial<br />
in addressing climate change and<br />
environmental concerns. We’ve designed<br />
Takaya with high-performance facades<br />
that go beyond Dubai Municipality guidelines.<br />
We’re paying special attention to<br />
sound and heat insulation, ensuring the<br />
building is sustainable, weatherproof, and<br />
supports reduced energy consumption.<br />
Regarding the shift towards more luxury<br />
and comfortable living, we’re seeing a clear<br />
trend in this direction. Today’s discerning<br />
residents are looking for more than just a<br />
place to live; they want a comprehensive<br />
lifestyle experience. They seek spaces<br />
that offer comfort, convenience, and<br />
a sense of community, all while being<br />
environmentally conscious.<br />
At Union Properties, we’re not just<br />
responding to this trend; we’re anticipating<br />
future needs. Our approach with<br />
Takaya - combining spacious, thoughtfully<br />
designed living spaces with extensive<br />
amenities and cutting-edge sustainability<br />
features - represents our vision of luxury<br />
living for the future. We believe that true<br />
luxury in Real Estate is about creating<br />
environments that enhance every aspect<br />
of residents’ lives while also being responsible<br />
for our planet. It’s about offering<br />
not just a home, but a forward-thinking,<br />
sustainable, and community-oriented<br />
lifestyle. With Takaya, we’re not just<br />
building apartments; we’re crafting the<br />
future of urban living in the UAE.<br />
Q. If you were an investor, what<br />
would your perspective be on the<br />
Takaya project?<br />
As an investor looking at Takaya, we<br />
emphasize the importance of considering<br />
future trends and plans. With Takaya,<br />
we’ve meticulously incorporated all the<br />
necessary elements to ensure its relevance<br />
among its peers for decades to come.<br />
Let me elaborate on what makes Takaya<br />
a compelling investment: Firstly, we’ve<br />
implemented a high-performing facade<br />
system - one of the most advanced in the<br />
market. This isn’t just about aesthetics;<br />
it’s a strategic decision to ensure low<br />
energy consumption. In an era where<br />
sustainability is increasingly valued,<br />
this feature will contribute significantly<br />
to maintaining the building’s appeal and<br />
efficiency over time.<br />
We’re also leveraging cutting-edge<br />
technology to optimize service charges.<br />
This focus on cost-effectiveness is crucial<br />
for long-term investment value, as it helps<br />
maintain the property’s attractiveness to<br />
both owners and tenants over the years.<br />
The amenities we offer at Takaya are<br />
exceptional. We’re utilizing a vast plot<br />
of approximately 400,000 square feet to<br />
create extensive parks and green spaces.<br />
This includes sports facilities like jogging<br />
tracks, paddle courts, and basketball<br />
courts. In an urban environment, such<br />
generous open spaces are a rarity and<br />
will undoubtedly be a key selling point<br />
for years to come.<br />
Moreover, we’re future-proofing Takaya<br />
in terms of evolving transportation needs.<br />
Nearly 25% of our parking spaces are<br />
Sep <strong>2024</strong> www.thefinanceworld.com 25
Cover Story<br />
equipped with EV chargers. This forward-thinking<br />
approach aligns with the<br />
global shift towards electric vehicles,<br />
ensuring that Takaya remains at the<br />
forefront of residential developments.<br />
From an investment perspective, these<br />
features collectively position Takaya as<br />
a property that’s not just meeting current<br />
market demands but anticipating future<br />
needs. The combination of energy efficiency,<br />
advanced technology, extensive<br />
amenities, and EV readiness creates a<br />
compelling value proposition.<br />
Investors should recognize that Takaya<br />
isn’t just a residential development; it’s<br />
a vision of future living. We’re creating<br />
a community that balances luxury with<br />
sustainability, and comfort with efficiency.<br />
As urban living evolves, properties like<br />
Takaya that have been designed with<br />
foresight will likely see sustained demand<br />
and value appreciation.<br />
In essence, investing in Takaya is<br />
investing in a future-proof asset. It’s a<br />
property that’s designed to meet the<br />
evolving needs of residents, align with<br />
sustainability trends, and maintain its<br />
competitive edge in the market. For investors<br />
looking for long-term value and<br />
relevance in their Real Estate portfolio,<br />
Takaya presents an opportunity that’s<br />
hard to overlook.<br />
Q. What are the projections for 2025,<br />
and what can potential investors look<br />
forward to in your upcoming project?<br />
As we look toward the future of Union<br />
Properties, I’m pleased to share our<br />
projections and market outlook, particularly<br />
focusing on our expectations for<br />
2025. The Real Estate market in Dubai<br />
remains robust and healthy, providing a<br />
strong foundation for our growth strategies.<br />
We’ve previously announced an<br />
ambitious pipeline of projects valued at<br />
5 billion dirhams. This portfolio reflects<br />
our confidence in the market and our<br />
capacity to deliver high-quality developments<br />
that meet evolving consumer<br />
demands. Our flagship project, Takaya,<br />
represents a significant portion of this<br />
pipeline, with an estimated value of 1.8<br />
billion dirhams.<br />
In addition to Takaya, we currently<br />
have two other projects in the design<br />
phase. The strong sales performance we’re<br />
witnessing, particularly with Takaya, is<br />
encouraging us to accelerate our timelines<br />
for these upcoming projects. This agility<br />
in response to market demand is a key<br />
strength of Union Properties.<br />
Looking specifically at our projections<br />
for 2025, we anticipate a period<br />
of substantial growth. Based on current<br />
market trends and our project pipeline,<br />
we foresee the potential to achieve sales<br />
of at least 4 billion dirhams between now<br />
and the end of 2025. This projection is<br />
underpinned by the strong demand we’re<br />
experiencing and our ability to bring<br />
high-quality products to market efficiently.<br />
These sales figures are expected to be<br />
a significant driver of our development<br />
growth and overall revenue expansion.<br />
The realization of these projects will not<br />
only contribute to our top-line growth but<br />
also reinforce our position as a leading<br />
player in Dubai’s competitive Real Estate<br />
market. Moving forward, our emphasis<br />
remains on delivering high-quality,<br />
future-proof developments that align<br />
with our vision of enhancing quality of<br />
life, leveraging smart technologies, and<br />
prioritizing sustainability. These principles,<br />
combined with our strong financial<br />
projections, position Union Properties<br />
for a period of significant growth and<br />
value creation in the coming years.<br />
We’re excited about the opportunities<br />
that lie ahead and remain committed to<br />
transparency in our communications with<br />
investors and stakeholders as we work<br />
towards realizing these ambitious goals.<br />
26 www.thefinanceworld.com Sep <strong>2024</strong>
Q. How is Union Properties working<br />
towards sustainability, and how will<br />
these efforts benefit the generation?<br />
When we talk about sustainability, we’re<br />
looking at a fundamental shift in how<br />
we approach development and quality<br />
of life. The benefits are immense, and<br />
they touch every aspect of our existence.<br />
First, let’s consider the impact on our<br />
daily lives. Take smart buildings, for example.<br />
These structures can efficiently<br />
use energy based on how the space is<br />
being used. This isn’t just a technological<br />
marvel - it translates directly to reduced<br />
costs. We’re seeing lower energy bills,<br />
reduced service charges, and ultimately,<br />
better profits for investors. But it goes<br />
beyond economics.<br />
Sustainability is intrinsically linked<br />
to our health and well-being. When we<br />
embrace sustainable practices, we’re<br />
choosing materials and methods that<br />
promote healthy living. We’re creating<br />
spaces that are not just environmentally<br />
friendly, but actively beneficial for the<br />
people who use them.<br />
Climate resilience is another critical<br />
benefit. As we face increasing challenges<br />
from climate change, sustainable practices<br />
help us mitigate the impacts of<br />
extreme weather events. This isn’t just<br />
about comfort - it’s about maintaining<br />
the stability of our communities and<br />
economies.<br />
Fundamentally, sustainability is about<br />
balance. It’s a holistic approach that<br />
considers environmental protection,<br />
economic growth, and social well-being.<br />
By adopting sustainable practices, we’re<br />
I believe we’re<br />
setting a new<br />
standard for<br />
what future<br />
buildings should<br />
aspire to be.”<br />
not just preserving our planet for future<br />
generations - we’re actively improving our<br />
quality of life today. In my view, sustainability<br />
isn’t a choice - it’s the only way<br />
forward if we want to create a prosperous,<br />
healthy, and resilient future for all. It’s<br />
about smart, forward-thinking decisions<br />
that benefit everyone, from individuals<br />
to businesses to entire societies.<br />
Q. Imagine we are having the same<br />
conversation in a few years. Beyond<br />
more Union Properties constructions,<br />
what else do you envision we would<br />
be discussing in terms of the Company’s<br />
growth and impact?<br />
Looking ahead, I anticipate that our<br />
conversations will inevitably center<br />
around the climate impact of the Real<br />
Estate industry. This critical topic has<br />
yet to receive the attention it deserves,<br />
and there remains significant work to<br />
be done in this area.<br />
At Union Properties, we proactively<br />
address this challenge by embedding<br />
sustainability principles into our designs.<br />
3 Measures Driving<br />
Union Properties<br />
Growth<br />
Robust Organizational<br />
Structure<br />
The Right Team<br />
Members<br />
Implementing<br />
future-ready<br />
technology<br />
We take this responsibility seriously,<br />
recognizing its importance for our future<br />
and that of the planet.<br />
I envision that in the coming years, as<br />
we begin to deliver our developments,<br />
people will have the opportunity to see and<br />
experience firsthand the tangible results<br />
of our commitment to sustainability. This<br />
practical demonstration will be crucial<br />
in shifting perceptions and setting new<br />
industry standards.<br />
We already have an exemplary project<br />
in the pipeline that showcases our<br />
dedication to sustainable development.<br />
This project serves as a testament to our<br />
forward-thinking approach and our ability<br />
to balance environmental considerations<br />
with market demands.<br />
By focusing on innovative, sustainable<br />
solutions, Union Properties aims to lead<br />
the industry in creating developments<br />
that not only meet the needs of our<br />
clients but also contribute positively<br />
to the environment. Our goal is to be at<br />
the forefront of this necessary evolution<br />
in Real Estate, setting benchmarks for<br />
others to follow.<br />
As conversations among developers<br />
and investors continue, the UAE is<br />
increasingly recognized as a prime<br />
investment destination. The country’s<br />
strategic location, dynamic economic<br />
environment, and commitment to innovation<br />
create a compelling landscape for<br />
investment. With ongoing developments<br />
and a forward-looking approach, the<br />
UAE is set to continue its trajectory as<br />
a top global investment hub, offering<br />
significant potential for high returns and<br />
long-term value.<br />
Scan the QR Code to access the<br />
full-length video interview<br />
Sep <strong>2024</strong> www.thefinanceworld.com 27
Energy<br />
Source: Supplied<br />
Emirates Gas Unveils<br />
Next-Generation LPG<br />
Composite Cylinders for<br />
Outdoor Enthusiasts<br />
ENOC subsidiary revolutionizes outdoor<br />
cooking with lightweight, safe, and durable LPG<br />
cylinders designed for adventurous spirits.<br />
Emirates Gas, a subsidiary of ENOC<br />
Group, is pushing the boundaries of<br />
outdoor energy solutions with its latest<br />
innovation: a new generation of LPG<br />
Composite Cylinders. These cutting-edge<br />
cylinders are specifically engineered to<br />
meet the unique needs of outdoor enthusiasts<br />
and caravan users. Combining<br />
advanced materials with thoughtful design,<br />
lightweight construction and robust performance,<br />
these cylinders offer a blend of<br />
safety, convenience, and durability that<br />
sets a new standard in the industry. As<br />
ENOC Group continues to drive innovation<br />
in the energy sector, this latest<br />
offering demonstrates its commitment<br />
to enhancing outdoor experiences while<br />
adhering to stringent safety and environmental<br />
standards.<br />
28 www.thefinanceworld.com Sep <strong>2024</strong>
In the ever-evolving landscape of outdoor<br />
recreation and mobile living, the<br />
demand for efficient, safe, and portable<br />
energy solutions has never been higher.<br />
Recognizing this need, Emirates Gas, a<br />
key player in the UAE’s energy sector,<br />
has stepped up to the challenge with its<br />
revolutionary LPG Composite Cylinders.<br />
These cylinders represent a significant<br />
leap forward in outdoor energy technology,<br />
offering a host of benefits that cater<br />
specifically to the needs of adventurers,<br />
campers, and caravan enthusiasts.<br />
At the heart of this innovation is the<br />
use of advanced composite materials in<br />
cylinder construction. Unlike traditional<br />
metal cylinders, these composite versions<br />
boast a significantly reduced weight<br />
without compromising on strength or<br />
capacity. This lightweight nature addresses<br />
one of the most persistent challenges<br />
faced by outdoor enthusiasts: the need<br />
to balance comfort with the practicality<br />
of carrying essential supplies. With<br />
these new cylinders, users can enjoy<br />
the convenience of portable gas without<br />
the burden of excessive weight, making<br />
them ideal for a wide range of outdoor<br />
activities, from camping trips to extended<br />
caravan journeys.<br />
Saif Humaid Al Falasi, Group CEO at<br />
ENOC, emphasized the significance of<br />
this new product, stating,<br />
The new LPG Composite<br />
Cylinder reaffirms<br />
ENOC’s commitment to<br />
meeting the country’s<br />
latest environmental,<br />
health, and safety<br />
standards.”<br />
One of the most striking features of<br />
these new LPG Composite Cylinders is<br />
their translucent design. This seemingly<br />
simple characteristic offers a substantial<br />
practical advantage: users can easily<br />
monitor gas levels at a glance. No more<br />
guesswork or unexpected run-outs in the<br />
middle of preparing a meal or during a<br />
cold night. This visual feedback not only<br />
enhances convenience but also contributes<br />
to better planning and resource<br />
management during outdoor excursions.<br />
Safety, always a paramount concern<br />
when dealing with gas cylinders, has<br />
been given careful consideration in<br />
the design of these new products. The<br />
cylinders come equipped with a 30 mbar<br />
Pressure Relief Valve, a critical safety<br />
feature that ensures optimal pressure<br />
regulation during use. This valve acts as<br />
a safeguard against over-pressurization,<br />
significantly reducing the risk of accidents<br />
and providing users with peace of<br />
mind. Additionally, a high-quality rubber<br />
diaphragm has been incorporated into<br />
the design, serving as an extra layer of<br />
protection against potential leaks. These<br />
safety features underscore Emirates<br />
Gas’s commitment to not just meeting<br />
but exceeding industry safety standards.<br />
Outdoor environments can be unpredictable<br />
and often harsh, subjecting<br />
equipment to various stresses. Recognizing<br />
this, Emirates Gas has engineered<br />
these cylinders to withstand the rigors<br />
of outdoor use. The durable construction<br />
ensures resistance to wear and<br />
tear, making them suitable for use in<br />
challenging environments. Whether it’s<br />
the heat of the desert, the humidity of<br />
coastal areas, or the rough terrain of<br />
mountainous regions, these cylinders are<br />
built to perform reliably under diverse<br />
conditions. The environmental aspect of<br />
these cylinders is particularly noteworthy.<br />
As global awareness of environmental<br />
issues continues to grow, there’s an<br />
increasing demand for products that minimize<br />
ecological impact. The lightweight<br />
nature of these cylinders contributes to<br />
reduced fuel consumption during transportation,<br />
both for the company during<br />
distribution and for end-users during<br />
their travels. Moreover, the durability of<br />
the cylinders suggests a longer lifespan,<br />
potentially reducing waste and the need<br />
for frequent replacements.<br />
Looking ahead, the potential applications<br />
for these cylinders extend beyond just<br />
the camping and caravan market. Their<br />
attributes make them suitable for a variety<br />
of uses, from emergency preparedness<br />
kits to outdoor events and mobile food<br />
services. As awareness of this product<br />
grows, new and innovative uses will<br />
likely emerge, further cementing the<br />
value of this technological advancement.<br />
Emirates Gas’s launch of these new LPG<br />
Composite Cylinders is more than just a<br />
product release; it’s a statement of intent.<br />
It signals the company’s commitment to<br />
innovation, safety, and customer-centric<br />
design. By addressing the specific needs<br />
of outdoor enthusiasts and caravan users,<br />
while simultaneously pushing the boundaries<br />
of what’s possible in gas cylinder<br />
technology, Emirates Gas is positioning<br />
itself at the forefront of the industry.<br />
As outdoor recreation continues to grow<br />
in popularity, particularly in the wake<br />
of global events that have encouraged<br />
more people to explore domestic travel<br />
options, products like these are likely<br />
to play an increasingly important role.<br />
They represent a fusion of technology<br />
and practical design that enhances the<br />
outdoor experience without compromising<br />
on safety or environmental responsibility.<br />
In conclusion, the new generation of<br />
LPG Composite Cylinders from Emirates<br />
Gas marks a significant milestone in<br />
outdoor energy solutions. By combining<br />
lightweight materials, advanced safety<br />
features, and user-friendly design, these<br />
cylinders are set to transform the way<br />
people approach outdoor cooking and<br />
heating. As the product makes its way<br />
into the market, it will be interesting to<br />
observe its impact on outdoor recreation<br />
practices and its potential to inspire further<br />
innovations in the field. For ENOC<br />
Group and Emirates Gas, this launch<br />
reinforces their position as leaders in<br />
energy innovation, capable of meeting<br />
the evolving needs of consumers in an<br />
increasingly mobile and adventure-seeking<br />
world.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 29
Wheels<br />
Over 211 mph<br />
Top Speed<br />
830 hp<br />
Power Output<br />
0-60 mph<br />
2.9 seconds<br />
30 www.thefinanceworld.com Sep <strong>2024</strong>
Ferrari has unveiled the much-anticipated<br />
12 Cilindri, the successor<br />
to the legendary 812 Superfast,<br />
marking a significant moment in<br />
the brand’s history. As the automotive<br />
world shifts towards turbocharging<br />
and hybridization, Ferrari remains<br />
committed to its naturally aspirated V12<br />
heritage, though the 12 Cilindri could<br />
be one of the last front-engined V12<br />
Ferraris ever produced. This new GT<br />
car blends cutting-edge design with a<br />
nod to the past, setting a new standard<br />
for Ferrari’s front-engine supercars.<br />
The 12 Cilindri’s design is a departure<br />
from the 812 Superfast, embracing a<br />
modern and futuristic aesthetic while<br />
incorporating subtle retro elements.<br />
The headlights, which wrap around the<br />
front bumper, are reminiscent of the 365<br />
Daytona from the 1960s, and the black<br />
trim on the bonnet is a subtle homage<br />
to that era. The windscreen has been<br />
pushed back to accommodate the V12<br />
engine, while the rear pillars feature an<br />
exaggerated curve, sweeping into the<br />
roofline. The most striking changes are<br />
seen at the rear, where the 12 Cilindri<br />
sports flat tail lights and rectangular<br />
quad exhausts, a radical departure from<br />
the round elements typically associated<br />
with Ferrari.<br />
Powering the 12 Cilindri is a 6.5-liter<br />
naturally aspirated V12 engine, similar<br />
to the one found in the 812 Superfast<br />
but with significant enhancements.<br />
The engine produces 830 hp and 678<br />
Nm of torque, matching the output<br />
of the 812 Competizione. This allows<br />
the 12 Cilindri to sprint from 0-60<br />
mph in just 2.9 seconds, with a top<br />
speed exceeding 211 mph. Despite<br />
the impressive performance, Ferrari<br />
emphasizes that the 12 Cilindri is more<br />
about celebrating the V12 engine than<br />
setting new speed records.<br />
The 12 Cilindri’s design and engineering<br />
reflect Ferrari’s commitment<br />
to balancing nostalgia with innovation.<br />
The front end features a distinctive<br />
“delta wing” roof motif, while the<br />
rear showcases a daring new design<br />
with split light bar lamps and oblong<br />
exhausts. Active aero features have<br />
been integrated into the design, with<br />
winglets that rise at 37 mph to add<br />
downforce and lower again at higher<br />
speeds to optimize performance.<br />
Inside, the 12 Cilindri offers a blend<br />
of luxury and technology, with an<br />
emphasis on driver engagement. The<br />
twin-clutch eight-speed gearbox has<br />
been refined to shift 30% faster than<br />
the previous model, enhancing both<br />
performance and cruising efficiency.<br />
Ferrari has also reworked the rear-wheel<br />
steering system to improve handling<br />
while maintaining stability, and the car<br />
now features brake-by-wire technology<br />
to ensure consistent brake feel under<br />
all conditions.<br />
As Ferrari looks to the future, the 12<br />
Cilindri stands as a testament to the<br />
brand’s dedication to the V12 engine,<br />
even as it navigates the challenges of<br />
modern emissions regulations. With a<br />
price expected to be around £350,000,<br />
the 12 Cilindri is not just a car, but a<br />
celebration of Ferrari’s storied history<br />
and its ongoing evolution.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 31
Alternative <strong>Finance</strong><br />
Source: freepik.com<br />
Crowdfunding Platforms<br />
and Alternative <strong>Finance</strong>:<br />
Empowering SMEs in<br />
the New Arab <strong>World</strong><br />
Empowering SMEs with tailored<br />
financial solutions to drive growth and<br />
innovation.<br />
In recent years, crowdfunding has gained<br />
significant momentum across the Middle<br />
East, particularly in Saudi Arabia and the<br />
UAE, thanks to technological advancements<br />
and supportive regulations. This<br />
financing method, where individuals<br />
contribute small amounts to fund larger<br />
projects, has become essential for both<br />
investors and entrepreneurs. Various<br />
crowdfunding platforms in these countries<br />
cater to different needs, offering<br />
equity, reward-based, and donation-based<br />
options. These platforms, alongside new<br />
financial initiatives, are transforming the<br />
financial landscape for small and medium<br />
enterprises (SMEs), providing them<br />
with alternative financing avenues and<br />
fostering innovation within the region’s<br />
rapidly growing economies.<br />
32 www.thefinanceworld.com Sep <strong>2024</strong>
Crowdfunding, a concept that allows<br />
individuals to pool small amounts<br />
of money to fund larger projects,<br />
has seen explosive growth globally. This<br />
phenomenon is particularly pronounced<br />
in the Arab world, where a surge of<br />
crowdfunding platforms has emerged to<br />
cater to the diverse needs of investors and<br />
entrepreneurs. These platforms offer an<br />
array of opportunities, from supporting<br />
charitable causes to investing in highgrowth<br />
startups, real estate, and beyond.<br />
In Saudi Arabia, the advent of platforms<br />
like Funding Souq marks a significant<br />
milestone. Launched earlier this year,<br />
Funding Souq offers Shariah-compliant<br />
investment opportunities in SMEs across<br />
the kingdom. This platform allows investors<br />
to contribute to businesses in a<br />
manner that aligns with Islamic financial<br />
principles, providing both ethical and<br />
profitable investment avenues.<br />
Types of Crowdfunding Platforms<br />
Donation-Based Crowdfunding<br />
Donation-based crowdfunding is the<br />
most traditional form of crowdfunding,<br />
where individuals contribute money to<br />
support causes or projects without expecting<br />
financial returns. This model is<br />
often used for charitable purposes, such<br />
as medical expenses or disaster relief.<br />
Notable international platforms in this<br />
category include GoFundMe, Fundly, and<br />
JustGiving. In the Gulf region, platforms<br />
like YallaGive (UAE) and Ehsan (Saudi<br />
Arabia) are leading the way in facilitating<br />
donation-based crowdfunding.<br />
Reward-Based Crowdfunding<br />
In reward-based crowdfunding, contributors<br />
receive non-financial rewards in<br />
exchange for their support. These rewards<br />
can range from a simple thank-you note<br />
to a final product or service. Platforms<br />
like Kickstarter and Indiegogo have popularized<br />
this model, with campaigns often<br />
transitioning into successful e-commerce<br />
ventures. In the UAE, DubaiNext is a<br />
prominent platform for reward-based<br />
crowdfunding.<br />
Equity-Based Crowdfunding<br />
Equity-based crowdfunding allows investors<br />
to purchase shares in early-stage<br />
companies or startups. This model offers<br />
a way for companies to raise capital<br />
without relying on traditional bank loans<br />
or venture capital. Platforms such as We-<br />
Funder and Crowdcube are well-known<br />
internationally. In the Gulf region, Eureeca<br />
and Reals (UAE) are key players,<br />
alongside Scoopeer in Saudi Arabia.<br />
Debt-Based Crowdfunding<br />
Also known as peer-to-peer (P2P) lending,<br />
debt-based crowdfunding enables<br />
investors to lend money to individuals<br />
or businesses in return for interest payments.<br />
This model replaces traditional<br />
bank lending, offering personal loans,<br />
business loans, and more. Major international<br />
platforms include LendingClub<br />
and Funding Circle. In the Gulf region,<br />
Funding Souq (UAE and Saudi Arabia),<br />
Beehive (UAE), and Lendo (Saudi Arabia)<br />
are prominent platforms in this space.<br />
Real Estate Crowdfunding<br />
Real estate crowdfunding allows investors<br />
to pool their resources to invest in real<br />
estate properties, providing opportunities<br />
to invest in both individual properties and<br />
Real Estate Investment Trusts (REITs).<br />
Platforms like RealtyMogul and Fundrise<br />
are well-established internationally. In<br />
the Gulf region, Stake and SmartCrowd<br />
(UAE) and Thara and Aseel (Saudi Arabia)<br />
are key platforms facilitating real estate<br />
investments.<br />
Recent Developments in SME Financing<br />
The introduction of new financial products<br />
by state-run institutions is further<br />
bolstering the SME sector in Saudi Arabia.<br />
The Small and Medium Enterprises Loan<br />
Guarantee Program, known as Kafalah,<br />
has launched a new financing product in<br />
collaboration with the Small and Medium<br />
Enterprises Bank and the Local Content<br />
and Government Procurement Authority.<br />
This initiative aims to empower local medium,<br />
small, and micro-sized enterprises<br />
in the consultancy industry by providing<br />
guarantees that cover financing risks up<br />
to 90 percent.<br />
Abdulrahman bin Abdullah Al-Samari,<br />
CEO of the authority, noted that the<br />
consulting sector is experiencing significant<br />
growth in Saudi Arabia, driven<br />
by the Kingdom’s economic initiatives.<br />
This program aligns with Vision 2030<br />
by supporting local consulting firms<br />
and fostering their contribution to the<br />
nation’s economic progress.<br />
Homam Hashem, CEO of the Kafalah<br />
program, emphasized the importance of<br />
the local consulting industry in producing<br />
specialized content across various disciplines.<br />
The new financial product helps<br />
improve the sector’s competitiveness by<br />
enabling funding for sector stakeholders,<br />
providing financial facilities, and lowering<br />
interest rates. Additionally, Kafalah<br />
signed a cooperation agreement with<br />
the Saudi Export-Import Bank in August<br />
to introduce an export sector financing<br />
guarantee product, further fostering<br />
SME growth and aligning with Vision<br />
2030’s goal of having SMEs contribute<br />
35 percent of the nation’s GDP.<br />
Beltone Holding’s new Financial<br />
Regulatory Authority (FRA) license<br />
for SME finance positions it as a key<br />
player in providing tailored financial<br />
solutions to SMEs in the MENA region.<br />
CEO Ashraf Abdel Fattah emphasized<br />
that this license will empower SMEs<br />
with the necessary tools and resources<br />
to excel in the evolving market.<br />
Impact on SMEs<br />
Crowdfunding platforms and new financial<br />
initiatives like Kafalah are transforming<br />
the way SMEs access capital, offering<br />
diverse funding options and creating<br />
new opportunities for growth. In Saudi<br />
Arabia, Funding Souq’s Shariah-compliant<br />
structure and Kafalah’s targeted financial<br />
products provide SMEs with access to<br />
ethical and specialized funding options.<br />
Similarly, platforms in the UAE, such as<br />
DubaiNext and Beehive, are contributing<br />
to a more inclusive financial ecosystem<br />
for SMEs.<br />
Crowdfunding and alternative finance<br />
are reshaping the financial landscape<br />
for SMEs in the Middle East, offering<br />
innovative funding options and driving<br />
economic development. The introduction<br />
of new financial products and partnerships<br />
underscores the region’s commitment to<br />
supporting SMEs and achieving Vision 2030<br />
objectives. As the Middle East continues<br />
to embrace these financial innovations,<br />
SMEs are better positioned to access<br />
capital, expand their operations, and<br />
contribute to regional growth.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 33
Fintech<br />
Source: Ai generated<br />
Tech-driven Financial<br />
Solutions: Redefining<br />
Investment Strategies in<br />
the Arab <strong>World</strong><br />
This year, the Middle East hits a major<br />
milestone with rapid advancements in the<br />
fintech revolution.<br />
The Arab world is undergoing a significant<br />
transformation in financial services, fueled<br />
by rapid technological advancements. Fintech<br />
innovations are reshaping traditional<br />
investment strategies, offering investors<br />
increased efficiency, accessibility, and<br />
effectiveness. The integration of AI and<br />
blockchain is driving this shift, heralding<br />
a new era in financial management. AI<br />
provides advanced data analytics, predictive<br />
modeling, and personalized financial<br />
advice, enabling investors to make<br />
more informed decisions and optimize<br />
their portfolios. Additionally, AI-driven<br />
robo-advisors and algorithmic trading<br />
platforms are democratizing access to<br />
sophisticated investment strategies, making<br />
them accessible to a wider audience<br />
and redefining the landscape of finance<br />
in the region.<br />
34 www.thefinanceworld.com Sep <strong>2024</strong>
Technology has become a pivotal<br />
force in transforming the investment<br />
landscape in the Arab world. The<br />
integration of AI-powered algorithms<br />
and blockchain-based platforms has<br />
significantly impacted the way investors<br />
approach financial decisions. These<br />
technologies have introduced new tools<br />
and strategies that are streamlining the<br />
investment process, enhancing transparency,<br />
and reducing the barriers to entry<br />
for investors of all levels.<br />
One of the key areas where technology<br />
has made a substantial impact is<br />
in the realm of wealth management.<br />
Fintech firms such as Fintech Saudi ere<br />
were established in 2018, and within<br />
20 months, it introduced a regulatory<br />
sandbox framework, new payment laws,<br />
licensing policies, and a commercial<br />
register for fintech activities. They are<br />
also leveraging AI-driven analytics to<br />
provide personalized investment recommendations.<br />
By July 2018, the first<br />
two fintech firms were licensed. Since<br />
then, further developments have taken<br />
place. For instance, in 2020, Flat6Labs<br />
launched Saudi Arabia’s first financial<br />
technology accelerator. Additionally,<br />
the government introduced an instant<br />
digital payments system and developed a<br />
new strategy for open banking, all under<br />
the fintech strategy aligned with Saudi<br />
Arabia’s Vision 2030 plan.<br />
However, Saudi Arabia is not the only<br />
country pursuing fintech advancements.<br />
In 2019, Bahrain became the first state in<br />
the Middle East to adopt open banking,<br />
and the UAE has similar plans. Egypt,<br />
Qatar, and Mauritius are also among<br />
the countries focusing on fintech development<br />
as part of their economic<br />
strategies. The Middle East is home to<br />
large sovereign funds that are actively<br />
investing in this sector.<br />
Furthermore, the integration of blockchain<br />
technology has revolutionized the<br />
way transactions and record-keeping are<br />
handled in the financial sector. Blockchain-based<br />
platforms offer increased<br />
transparency, enhanced security, and<br />
faster settlement times, all of which are<br />
crucial in building trust and confidence<br />
among investors. This technology has<br />
also paved the way for the emergence<br />
of new investment instruments, such as<br />
tokenized assets and decentralized finance<br />
(DeFi) protocols, which are attracting<br />
a growing number of investors seeking<br />
alternative investment opportunities. Let’s<br />
overview some interesting key reasons<br />
why the Middle East is an exciting and<br />
growing fintech environment:<br />
1. Substantial state support and investment<br />
- The Middle East is increasingly<br />
recognized as a burgeoning fintech environment<br />
due to its substantial state<br />
support and investment. The region<br />
boasts large sovereign wealth funds,<br />
with assets exceeding $4 trillion, actively<br />
channeling investments into fintech as<br />
part of broader economic diversification<br />
efforts. This state backing not only fuels<br />
innovation but also enhances the region’s<br />
attractiveness to global fintech startups.<br />
Additionally, a growing pool of private<br />
wealth further supports fintech ventures,<br />
offering crucial funding opportunities<br />
for emerging businesses.<br />
2. Access to a large, diverse, and<br />
expanding market - Fintech companies<br />
are drawn to the Middle East due to its<br />
large, diverse, and expanding market. The<br />
region’s consumer base is substantial and<br />
continuously growing, providing fintechs<br />
with ample opportunities to scale their<br />
solutions. Economic integration efforts,<br />
such as the Gulf Cooperation Council<br />
(GCC) customs union, are progressively<br />
reducing barriers and facilitating smoother<br />
cross-border operations. Moreover, the<br />
linguistic diversity of the region creates<br />
an ideal testbed for fintech technologies,<br />
particularly those involving artificial<br />
intelligence (AI), as solutions can be<br />
tailored to a variety of languages and<br />
cultural contexts.<br />
3. Strategic location as a bridge between<br />
East and West - The Middle East’s<br />
strategic geographic location positions<br />
it as a pivotal hub for fintech companies<br />
aiming to bridge the markets of Europe<br />
and Asia. This unique positioning allows<br />
fintechs to leverage trends, talent, and<br />
opportunities from both regions. The<br />
proximity to major financial centers<br />
and the region’s advanced infrastructure<br />
further bolster its appeal, making it an<br />
optimal gateway for companies seeking<br />
to expand their reach into both Eastern<br />
and Western markets.<br />
Investor behavior in the Arab world<br />
has undergone a profound transformation<br />
in recent years. The younger generation,<br />
in particular, is leading this change with<br />
a pronounced preference for technology-driven<br />
investment solutions. This<br />
demographic is increasingly inclined to<br />
embrace digital platforms, mobile applications,<br />
and online investment tools that<br />
offer real-time access to market data,<br />
streamlined portfolio management, and<br />
seamless trading capabilities. This shift<br />
is not merely a trend but a significant<br />
redefinition of how investments are<br />
approached. The younger investors are<br />
prioritizing platforms that provide intuitive<br />
user experiences and advanced features,<br />
such as automated trading algorithms,<br />
AI-driven insights, and customizable<br />
dashboards. These technologies cater<br />
to their need for immediate information<br />
and agile decision-making, reflecting<br />
a broader movement towards a more<br />
dynamic and accessible investment<br />
environment.<br />
Moreover, this change is not limited<br />
to a preference for convenience but extends<br />
to expectations for transparency<br />
and personalized experiences. Younger<br />
investors are seeking platforms that offer<br />
detailed analytics, educational resources,<br />
and personalized advice tailored to<br />
their specific financial goals and risk<br />
profiles. This demand is pushing fintech<br />
companies to innovate continuously,<br />
creating sophisticated yet user-friendly<br />
solutions that can keep pace with the<br />
evolving needs of this digitally savvy<br />
investor cohort.<br />
The Arab world is at the forefront of<br />
a fintech revolution that is redefining<br />
investment strategies and transforming<br />
the financial services sector. The integration<br />
of cutting-edge technologies, such as<br />
AI and blockchain, has introduced new<br />
tools and platforms that are enhancing<br />
the efficiency, accessibility, and effectiveness<br />
of investment management.<br />
As the regulatory landscape evolves to<br />
support this technological innovation,<br />
and investor behavior continues to adapt<br />
to the digital age, the stage is set for the<br />
Arab world to emerge as a global leader<br />
in tech-driven financial solutions. This<br />
transformation promises to unlock new<br />
opportunities and empower investors to<br />
navigate the complexities of the modern<br />
financial landscape with greater confidence<br />
and success.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 35
Fintech News<br />
Riyadh to Host First-Ever 24 Fintech Conference This <strong>September</strong><br />
Riyadh is gearing up to host the<br />
inaugural edition of 24 Fintech<br />
conferences, focusing on the<br />
financial technology sector, at the<br />
Riyadh Front Exhibition & Conference<br />
Center from 3 to 5 <strong>September</strong>. The<br />
event, organised by Fintech Saudi and<br />
Tahaluf, is supported by the Financial<br />
Sector Development Program, the Saudi<br />
Central Bank (SAMA), the Capital Market<br />
Authority, and the Insurance Authority.<br />
This conference aims to enhance Saudi<br />
Arabia’s standing as a leader in financial<br />
technologies, bringing together senior<br />
government officials, global leaders,<br />
and international companies to discuss<br />
key topics in fintech transformation.<br />
Nezar Alhaidar, CEO of Fintech Saudi,<br />
emphasised that the event is a crucial<br />
step towards positioning the Kingdom<br />
as a global hub for financial technologies,<br />
in line with its Vision.<br />
FlapKap Partners with Aramex to Boost SME<br />
Funding in MENA<br />
Aramex, a global logistics leader,<br />
has announced a strategic<br />
partnership with FlapKap, a<br />
revenue-financing platform in MENA.<br />
This collaboration is designed to assist<br />
new and existing Aramex merchants<br />
and small to medium-sized e-commerce<br />
businesses (SMEs) in the UAE by providing<br />
rapid and flexible funding within<br />
48 hours. SMEs are vital to the global<br />
economy, particularly in regions like<br />
the UAE, where they constitute 90% of<br />
businesses. Despite their importance,<br />
they face significant capital challenges,<br />
with a reported SME credit gap of<br />
over $260Bn in MENA and only 4 per<br />
cent of UAE loans going to SMEs. By<br />
combining Aramex’s logistics expertise<br />
with FlapKap’s innovative financing<br />
solutions, the partnership aims to<br />
bridge this gap. Aramex will support<br />
SMEs with comprehensive logistics<br />
services, while FlapKap will provide<br />
revenue-based financing to help cover<br />
inventory, marketing, and operational<br />
costs.<br />
Rakbank and Bitpanda Partner for UAE Digital Assets<br />
RAKBANK, a leading financial<br />
institution in the UAE, has forged<br />
a partnership with Austria’s Bitpanda<br />
Technology Solutions to deliver<br />
an advanced platform for managing<br />
digital assets. This new collaboration<br />
will enable RAKBANK customers to<br />
access a diverse array of digital asset<br />
services, presenting one of the most<br />
comprehensive offerings available in<br />
the UAE market. The platform aims to<br />
enhance the digital asset management<br />
experience by providing innovative<br />
and secure solutions. However, the<br />
complete rollout of these services is<br />
dependent on receiving approval from<br />
the Central Bank of the UAE (CBUAE).<br />
Once authorised, the platform is expected<br />
to significantly expand the digital<br />
asset capabilities for UAE residents,<br />
aligning with the growing demand for<br />
modern financial solutions.<br />
Beyond ONE Unveils<br />
Trendy New Office in<br />
Dubai<br />
Beyond ONE, the digital services<br />
provider and TMT-sector investment<br />
and operations firm,<br />
has unveiled its new Dubai office,<br />
setting a new standard for modern<br />
workspaces. This cutting-edge environment<br />
emphasises employee wellbeing<br />
and fosters a welcoming, home-like<br />
atmosphere that encourages a strong<br />
sense of belonging. Designed by the<br />
award-winning boutique interior architecture<br />
studio DBM and realised by<br />
fit-out specialists Compass and Verve,<br />
the office challenges traditional corporate<br />
norms. It serves as a sanctuary<br />
to inspire employees’ personal and<br />
professional growth through biophilic<br />
design principles. Beyond ONE’s ethos<br />
of human connection is reflected in the<br />
multicultural design and layout. The<br />
experience begins with a view of lush,<br />
rainforest-like foliage visible from the<br />
elevator, leading into a terracotta-tiled<br />
space with inviting sofas, eschewing<br />
conventional reception areas.<br />
36 www.thefinanceworld.com Sep <strong>2024</strong>
UAE Fintech Sees Rise<br />
in Blockchain and Crypto<br />
Jobs: ADGM Report<br />
Digital transformation is revolutionising<br />
the financial sector,<br />
with fintech—short for financial<br />
technology—leading the way.<br />
Innovations such as digital wallets<br />
and cryptocurrencies are reshaping<br />
financial services, highlighting a crucial<br />
synergy between traditional banks<br />
and new fintech solutions. The UAE is<br />
emerging as a global fintech leader, with<br />
a growth rate exceeding 15% annually,<br />
driven by its strategic push to become a<br />
hub for blockchain and cryptocurrency<br />
innovation. This dynamic environment<br />
attracts numerous startups, investors,<br />
and professionals. Research by the<br />
ADGM Academy Research Centre, in<br />
collaboration with CFTE, reveals a<br />
growing demand for specialised talent<br />
in blockchain, AI, and regulatory compliance.<br />
The rise of fintech in the UAE<br />
has led to new roles like cryptoasset<br />
analyst and blockchain compliance<br />
officer, reflecting the sector’s rapid<br />
evolution and expansion.<br />
Ziina Gains UAE Central<br />
Bank SVF Licence<br />
Ziina, a prominent financial platform<br />
in the UAE, has secured<br />
the Stored Value Facility (SVF)<br />
licence from the UAE Central Bank,<br />
enabling it to expand its suite of financial<br />
services. This strengthens<br />
Ziina’s position as one of the few<br />
privately-owned fintech companies in<br />
the UAE with such authorisation. The<br />
SVF licence supports the UAE Central<br />
Bank’s strategy to drive innovation,<br />
boost financial inclusion, and stimulate<br />
economic growth, reinforcing the<br />
country’s goal of becoming a global<br />
leader in the digital economy. Ziina<br />
will offer services, including business<br />
and consumer accounts, peer-to-peer<br />
payments, bill payments, payment link<br />
issuance, QR codes for remote transactions,<br />
and prepaid card services.<br />
Additionally, Ziina will provide BIN<br />
sponsorships as a principal member of<br />
Visa and Mastercard networks. These<br />
services are designed to enhance efficiency<br />
and growth for over 557,000<br />
businesses, particularly SMEs that face<br />
cash flow challenges.<br />
ICAEW and UAE Banks Federation Partner on<br />
Digital Currency<br />
The Institute of Chartered Accountants<br />
in England and Wales<br />
(ICAEW) has partnered with<br />
the UAE Banks Federation (UBF) to<br />
support firms in navigating the rapidly<br />
changing digital assets landscape,<br />
Huawei Cloud Empowers Saudi Fintech Industry<br />
with Pioneer Programme<br />
Huawei Cloud, in collaboration<br />
with Fintech Saudi, hosted the<br />
Huawei Cloud Fintech Day Saudi<br />
Arabia <strong>2024</strong>, spotlighting innovative<br />
cloud solutions for the Kingdom’s<br />
fintech industry. The event brought<br />
together industry leaders, government<br />
officials, and fintech pioneers to explore<br />
the latest trends shaping financial<br />
services. This gathering marked a key<br />
milestone in Huawei Cloud’s ongoing<br />
partnership with Saudi Arabia’s fintech<br />
ecosystem, highlighting a mutual commitment<br />
to fostering innovation and<br />
anticipated to reach $80.08 billion by<br />
<strong>2024</strong>. This collaboration aligns with<br />
the UAE’s advanced pilot of Central<br />
Bank Digital Currencies (CBDCs),<br />
placing the nation at the forefront of<br />
financial innovation. CBDCs are digital<br />
forms of sovereign currency issued and<br />
regulated by central banks, designed<br />
to complement traditional physical<br />
currencies, offering a secure method<br />
for digital transactions. The UAE is<br />
among just 36 countries currently piloting<br />
CBDCs. In a recent virtual event,<br />
ICAEW and UBF convened experts<br />
to discuss the UAE’s digital currency<br />
landscape, aiming to equip industry<br />
professionals with essential insights<br />
into this evolving ecosystem.<br />
digital transformation. As a central<br />
feature, Huawei Cloud introduced<br />
the Fintech Pioneer Programme, offering<br />
exclusive discounts to fintech<br />
companies in Saudi Arabia, furthering<br />
its support for the sector’s digital evolution.<br />
The event’s significance was<br />
underscored by speeches from Nezar<br />
Alhaidar, CEO of Fintech Saudi, and<br />
Alan Qi, President of Huawei Cloud<br />
Middle East & Central Asia, who both<br />
emphasised the programme’s role in<br />
empowering the local fintech landscape.<br />
MultiPass Gains Licence to Operate in UAE<br />
MultiPass, a global payment<br />
solution provider, has secured<br />
a financial services<br />
licence in the UAE, allowing clients<br />
to access local currency and payout<br />
options. Regulated by the Dubai Financial<br />
Services Authority (DFSA),<br />
the licence facilitates transactions in<br />
dirhams, completed within seconds,<br />
and supports multi-currency IBANs for<br />
global payments. This expansion opens<br />
strategic opportunities in the Middle<br />
East, offering clients broader market<br />
access and new business prospects.<br />
Rami Chedid, CEO of MultiPass for the<br />
UAE and the Middle East, highlighted<br />
the region’s growth potential and innovation.<br />
The company aims to deliver<br />
exceptional financial services with<br />
personalised support through dedicated<br />
relationship managers, aligning<br />
with its vision to serve international<br />
businesses with frequent cross-border<br />
payments. The UAE’s robust economy<br />
and diverse sectors reinforce its strategic<br />
importance in the region.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 37
Opinion<br />
Source: Ai generated<br />
Sustainable Supply<br />
Chain <strong>Finance</strong>:<br />
Unlocking the Potential<br />
for Banks<br />
Fueling sustainability with SCF, a pathway to<br />
profitable growth.<br />
In an era of rapid economic and geopolitical<br />
change, companies globally and in<br />
the Middle East are increasingly formulating<br />
green and sustainable strategies,<br />
integrating them into their overarching<br />
business strategies and reporting, and<br />
formulating associated sustainability<br />
commitments. They are not only aligning<br />
their financing mechanisms with these<br />
sustainability plans, but also beginning<br />
to incorporate sustainability into their<br />
supply chains by applying relevant criteria<br />
in supplier and distributor selection<br />
processes. This strategic move not only<br />
helps them comply with the ESG regulation<br />
and mitigate operational risks along<br />
the value chain but also helps improve<br />
profitability while enhancing brand value.<br />
38 www.thefinanceworld.com Sep <strong>2024</strong>
Financial institutions are pivotal<br />
in directing funding towards<br />
sustainable supply chains. With<br />
the right funding and understanding<br />
of ESG practices, suppliers and buyers<br />
can strengthen operations and enhance<br />
competitiveness. Sustainable supply chain<br />
finance (SCF) is a growing trend in global<br />
banking, offering financial institutions<br />
a lucrative opportunity. This article<br />
explores sustainable SCF, its impact on<br />
financial institutions, and growth drivers<br />
in the Middle East.<br />
Sustainable Supply Chain <strong>Finance</strong> –<br />
Growth Beyond Compliance<br />
SCF refers to the use of financing and<br />
risk mitigation practices to optimize<br />
the management of working capital and<br />
liquidity invested in supply chains. In SCF,<br />
intermediary financial institutions enable<br />
the suppliers to receive money earlier<br />
than the due date, while buyers pay at<br />
the due date or later, which enhances<br />
the working capital and optimizes the<br />
value chain operations, especially if SCF<br />
is executed through the digital platform.<br />
Aksinya Kavanosyan, Director,<br />
Alvarez & Marsal<br />
Sustainable SCF emerges as a transformative<br />
trend in banking, with banks<br />
meeting their ESG commitments while<br />
helping clients and trade partners pursue<br />
sustainability. The sustainability principles<br />
of SCF, which extend to suppliers,<br />
buyers, and underlying transactions,<br />
revolve around the following areas:<br />
Environmental: supporting climate<br />
change mitigation, local environment<br />
and ecosystem sustainability.<br />
Social: supporting human rights,<br />
sustainable economic development, alleviating<br />
poverty, and promoting peaceful,<br />
inclusive societies; and<br />
Governance: establishing corporate<br />
practices for effective risk management,<br />
compliance, business continuity, and<br />
ethical conduct in procurement and<br />
distribution.<br />
Tapping into the Sustainable SCF<br />
market will provide numerous benefits<br />
for banks, such as market differentiation,<br />
expansion opportunities, credit risk mitigation,<br />
relationship building, reputation<br />
enhancement, and client support.<br />
Will Rhode, Managing Director<br />
Alvarez & Marsal<br />
Sustainable SCF in the Middle East<br />
The Middle East is uniquely positioned<br />
to develop its supply chains. The region<br />
lies at the heart of several global trade<br />
routes and, by 2030, its trade volumes<br />
are projected to reach USD 2 trillion in<br />
exports and USD 1.7 trillion in imports.<br />
Countries in the Middle East are<br />
looking to diversify beyond traditional<br />
oil and gas businesses, expanding into<br />
trade, transport, logistics and technology.<br />
Concurrently, regulatory changes,<br />
infrastructure projects and foreign direct<br />
investment in renewable energy are<br />
gaining momentum in major economies<br />
like the UAE and the Kingdom of Saudi<br />
Arabia. The UAE has allocated USD 163<br />
billion for renewable energy and solar<br />
power, while KSA is investing USD 266<br />
billion to achieve carbon neutrality by<br />
2060 and become a leading clean hydrogen<br />
exporter.<br />
With regional corporates emphasizing<br />
supply chain resilience, there is rising<br />
demand for sustainable SCF solutions,<br />
and therefore an opportunity for banks<br />
to satisfy this demand. Several banks<br />
in the region have recently introduced<br />
sustainable SCF products and services,<br />
with ample room for further expansion<br />
in the coming years. This trend not only<br />
contributes to national sustainability<br />
goals but also fosters trade promotion<br />
and economic diversification.<br />
Building Blocks for Developing<br />
Sustainable SCF<br />
The path to a successful sustainable SCF<br />
requires a comprehensive programmatic<br />
approach, comprising of six fundamental<br />
blocks:<br />
1. Business strategy and model:<br />
Develop program objectives and a business<br />
plan that align sustainable SCF with<br />
broader bank sustainability strategies, and<br />
ensure resource allocation and processes.<br />
2. Product: Design ESG-linked SCF<br />
products to support companies’ transition<br />
to sustainable, low-carbon activities.<br />
3. Client focus and ESG awareness:<br />
Introduce client selection and onboarding,<br />
ESG rating methodologies, and account<br />
planning with sales KPI monitoring.<br />
4. Risk management and operational<br />
processes: Integrate ESG factors into due<br />
diligence, risk assessment, underwriting,<br />
workflows, and reporting.<br />
5. Technology: Automate onboarding<br />
and financing processes, and ensure visibility<br />
of transactions using specialized<br />
digital SCF platforms.<br />
6. Talent management: Recruit a<br />
dedicated team for sustainable SCF,<br />
grant them independence, and enhance<br />
knowledge and performance through<br />
training, clear targets, and incentives.<br />
Banks bear a significant responsibility<br />
for the successful shift towards a sustainable<br />
future by enabling financing,<br />
facilitating awareness and fostering<br />
digital innovation through well-structured<br />
sustainable SCF programs. With trillions<br />
of dollars at stake and ambitious net-zero<br />
targets on the horizon, banks have<br />
a unique opportunity to influence the<br />
transition to a more sustainable economy<br />
by incentivizing sustainable behaviours<br />
and driving impactful change.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 39
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Profile Feature<br />
Rajesh Kumar<br />
Steering FNP.AE to New<br />
Heights in the UAE<br />
Ferns N Petals (FNP.AE) has<br />
emerged as a transformative<br />
force in the United Arab Emirates’<br />
retail market under the leadership of<br />
Rajesh Kumar, since its establishment<br />
in 2014. Over the past decade, Kumar<br />
has guided the company to not only<br />
solidify its market presence but also<br />
set new benchmarks in innovation<br />
and quick commerce, revolutionizing<br />
consumer engagement within the GCC’s<br />
gifting industry. FNP.AE’s success can<br />
be attributed to its agile business model<br />
and innovative approach to market<br />
demands, driven by Kumar’s strategic<br />
vision. A pivotal milestone in the<br />
company’s growth trajectory was the<br />
introduction of its 60-minute delivery<br />
service across the UAE. This initiative<br />
leveraged the growing demand for immediacy<br />
in e-commerce, placing FNP.<br />
AE at the forefront of the Q-commerce<br />
movement. By significantly reducing<br />
delivery times, the company has not<br />
only enhanced customer satisfaction<br />
but also established a new industry<br />
standard.<br />
Recognizing the unique socio-economic<br />
landscape of the GCC, characterized by<br />
diverse demographics and increasing<br />
consumer spending power, Kumar has<br />
led FNP.AE to strategically expand its<br />
product portfolio. Moving beyond its<br />
traditional flower arrangements, the<br />
company now offers gourmet treats, personalized<br />
gifts, bespoke confectioneries,<br />
and experience-based products such as<br />
luxury spa treatments and more. This<br />
diversification strategy aligns with<br />
the cultural preferences and lifestyle<br />
aspirations of the region’s affluent<br />
consumer base, driving revenue growth<br />
and market penetration. The company<br />
has also introduced biodegradable<br />
packaging, sustainably sourced flowers,<br />
and eco-friendly product lines. These<br />
initiatives have not only strengthened<br />
FNP.AE’s brand image but have also<br />
positioned it as a socially responsible<br />
corporate entity.<br />
Under Kumar’s guidance, FNP.AE<br />
has successfully tapped into the luxury<br />
gifting market, particularly in affluent<br />
urban centres like Dubai. The<br />
company’s premium offerings include<br />
yacht rentals with custom decor and<br />
high-end, bespoke gifting experiences.<br />
This focus on luxury and exclusivity<br />
has been a significant growth driver.<br />
FNP.AE’s growth has been fueled by<br />
major investments in advanced technology<br />
and e-commerce platforms. Key<br />
technological advancements include a<br />
user-friendly mobile app and website,<br />
real-time order tracking, and customization<br />
options for products. These digital<br />
solutions have streamlined operations<br />
and enhanced the customer journey.<br />
FNP.AE’s strategic initiatives under<br />
Kumar’s leadership suggest strong revenue<br />
growth and market share expansion.<br />
The company’s focus on quick commerce,<br />
diversification, and premium<br />
offerings positions it favourably in the<br />
high-margin segments of the gifting<br />
industry. Looking ahead, Kumar has<br />
outlined ambitious expansion plans for<br />
FNP.AE, including regional growth into<br />
Saudi Arabia and other GCC nations,<br />
further product range diversification,<br />
and continued investment in innovative<br />
technologies. As FNP.AE continues to<br />
expand its footprint under Kumar’s<br />
leadership, it is poised to play a significant<br />
role in shaping the future of<br />
the gifting industry while reinforcing<br />
its position as a leader in the UAE’s<br />
evolving retail landscape.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 41
Investment<br />
Source: freepik.com<br />
Innovative Investment<br />
Products: Navigating the<br />
New Financial Landscape<br />
in the Arab <strong>World</strong><br />
Innovation in finance is opening new doors<br />
for investors in the Arab world.<br />
The Arab world is undergoing a significant<br />
transformation in its financial markets,<br />
fueled by innovation and the introduction<br />
of new investment products. From<br />
fintech solutions to Sharia-compliant investments,<br />
the region is rapidly adapting<br />
to the evolving global financial landscape.<br />
These innovations are reshaping traditional<br />
investment approaches, drawing<br />
in a new generation of investors who<br />
seek modern, ethical, and technologically<br />
advanced options. As the Arab financial<br />
markets continue to evolve, investors are<br />
presented with unique opportunities to<br />
diversify their portfolios and capitalize<br />
on emerging trends. This article delves<br />
into the key innovations, their impact<br />
on investment strategies, and the future<br />
prospects for investors in the region.<br />
42 www.thefinanceworld.com Sep <strong>2024</strong>
The rise of fintech in the Arab world<br />
has led to the creation of new<br />
digital investment platforms that<br />
are democratizing access to financial<br />
markets. These platforms allow users to<br />
invest in a range of assets, from stocks<br />
and bonds to cryptocurrencies, all from<br />
the convenience of their smartphones.<br />
Companies like Bahrain’s Rain and the<br />
UAE’s Sarwa are leading the charge in<br />
providing innovative, user-friendly investment<br />
solutions tailored to the needs of<br />
the region’s young, tech-savvy population.<br />
This shift towards digital investments<br />
is making it easier for individuals to<br />
diversify their portfolios and participate<br />
in the global economy.<br />
Rain, a Bahrain-based cryptocurrency<br />
exchange, has made significant strides<br />
in providing a secure and compliant<br />
platform for trading digital assets in the<br />
Arab world. It is the first cryptocurrency<br />
exchange to be licensed by the Central<br />
Bank of Bahrain, reflecting the growing<br />
acceptance of digital currencies in the<br />
region. Sarwa, on the other hand, offers<br />
automated investment solutions, allowing<br />
users to invest in diversified portfolios of<br />
global ETFs with low fees. By leveraging<br />
technology, these platforms are lowering<br />
the barriers to entry for new investors<br />
and are contributing to the rapid growth<br />
of the fintech sector in the Arab world.<br />
Sharia-Compliant Investment Products:<br />
In response to the growing demand for<br />
ethical and Sharia-compliant investments,<br />
financial institutions across the Arab world<br />
are developing products that align with<br />
Islamic principles. Sukuk, often referred<br />
to as Islamic bonds, are one of the most<br />
popular Sharia-compliant instruments,<br />
offering investors a way to participate in<br />
fixed-income markets while adhering to<br />
religious guidelines. The Saudi Arabian<br />
Monetary Authority (SAMA) and Dubai<br />
Islamic Bank are among the institutions<br />
that have introduced a range of innovative<br />
Sukuk and other Sharia-compliant<br />
products, catering to both retail and<br />
institutional investors. These products<br />
are contributing to the growth of Islamic<br />
finance, which is becoming an increasingly<br />
important component of the global<br />
financial system.<br />
In addition to Sukuk, other Sharia-compliant<br />
products like Islamic mutual funds,<br />
real estate funds, and equities are gaining<br />
popularity. These products are designed to<br />
ensure that all transactions are free from<br />
interest (riba) and excessive uncertainty<br />
(gharar), in accordance with Islamic law.<br />
The growth of Islamic finance is also<br />
supported by regulatory frameworks<br />
that encourage the development of these<br />
products, ensuring that they are accessible<br />
to a wider audience. The increased<br />
focus on Sharia-compliant investments<br />
is not only meeting the ethical demands<br />
of Muslim investors but is also attracting<br />
non-Muslim investors who are interested<br />
in ethical investing.<br />
Green and Sustainable Investments:<br />
Environmental, Social, and Governance<br />
(ESG) criteria are gaining traction in the<br />
Arab world, as investors increasingly seek<br />
to align their portfolios with sustainable<br />
practices. The UAE’s Masdar and Saudi<br />
Arabia’s Public Investment Fund (PIF)<br />
are leading efforts in this area, launching<br />
green bonds and other sustainable<br />
investment vehicles. These products are<br />
designed to finance projects that contribute<br />
to environmental sustainability, such as<br />
renewable energy, clean technology, and<br />
water conservation. The growing interest<br />
in ESG investments reflects a broader<br />
global trend towards sustainability, and<br />
it is positioning the Arab world as a key<br />
player in the transition to a low-carbon<br />
economy.<br />
Masdar, Abu Dhabi’s renewable energy<br />
company, has been at the forefront of<br />
developing green bonds and sustainable<br />
investment opportunities. Their initiatives<br />
include financing large-scale solar and<br />
wind energy projects, both within the UAE<br />
and internationally. The Public Investment<br />
Fund of Saudi Arabia has also launched<br />
significant green initiatives, including the<br />
world’s largest green hydrogen plant in<br />
NEOM. These investments are not only<br />
contributing to global environmental<br />
goals but are also providing investors<br />
with opportunities to participate in the<br />
growth of the green economy.<br />
Real Estate Investment Trusts (REITs):<br />
REITs are emerging as a popular investment<br />
product in the Arab world, offering<br />
individuals and institutions an opportunity<br />
to invest in real estate without the need<br />
to directly purchase properties. The Saudi<br />
Capital Market Authority (CMA) has been<br />
at the forefront of promoting REITs,<br />
which are now listed on the Tadawul<br />
stock exchange. These trusts provide<br />
exposure to a diversified portfolio of<br />
income-generating real estate assets,<br />
such as commercial buildings, shopping<br />
malls, and hotels. The introduction of<br />
REITs is helping to deepen the region’s<br />
financial markets and providing investors<br />
with a new way to access the lucrative<br />
real estate sector.<br />
REITs in the Arab world are particularly<br />
attractive because they offer a relatively<br />
stable income stream, as they are required<br />
to distribute a significant portion of their<br />
earnings as dividends to shareholders.<br />
This makes them an appealing option for<br />
investors seeking regular income, especially<br />
in a low-interest-rate environment.<br />
The growth of REITs is also supported<br />
by favorable regulatory frameworks that<br />
encourage their development and listing<br />
on local stock exchanges, making them<br />
accessible to a broader range of investors.<br />
Private Equity and Venture Capital:<br />
Private equity and venture capital are<br />
gaining prominence in the Arab world,<br />
driven by a thriving startup ecosystem<br />
and the need for alternative financing.<br />
The UAE and Saudi Arabia are leading<br />
this trend, with major funds like Mubadala<br />
Investment Company and Saudi Aramco<br />
Ventures investing in high-growth<br />
startups across various sectors. These<br />
investments are not only injecting capital<br />
into innovative companies but are also<br />
helping to diversify the region’s economy<br />
by fostering entrepreneurship and<br />
innovation. As private equity and venture<br />
capital evolve, they are expected to play<br />
a crucial role in shaping the future of the<br />
Arab financial markets and supporting<br />
the shift towards a knowledge-based<br />
economy.<br />
The Arab world is navigating a new<br />
financial landscape, characterized by<br />
innovative investment products that<br />
are reshaping traditional investment<br />
strategies. From fintech and Sharia-compliant<br />
products to green investments and<br />
REITs, these innovations are providing<br />
investors with new opportunities to grow<br />
their wealth while contributing to the<br />
region’s economic diversification. As the<br />
financial markets continue to evolve, the<br />
Arab world is poised to become a global<br />
leader in the development and adoption<br />
of cutting-edge investment products.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 43
Merger and Acquisition News<br />
Saudi Dallah Healthcare to Invest $176M in Healthcare Firm Acquisitions<br />
Saudi Arabia’s Dallah Healthcare has<br />
finalised a binding share purchase<br />
agreement with Ayyan Investment<br />
Co. to acquire its shares for around<br />
SAR 660M ($176M). This deal includes<br />
the acquisition of Ayyan’s stakes in Al<br />
Ahsa Medical Services Co. and Al Salam<br />
Medical Services Co. through a capital<br />
increase, involving the issuance of new<br />
Dallah shares to Ayyan. Dallah will acquire<br />
97.41% of Al Ahsa and 100% of Al Salam.<br />
The net market value of Al Ahsa’s equity<br />
is set at SAR 420M, with the shares Dallah<br />
will acquire valued at SAR 409M. For Al<br />
Salam, the equity value is approximately<br />
SAR 250.88M. Dallah’s valuation for the<br />
transaction stands at SAR 16.56B, or SAR<br />
169.51 per share, based on trading prices<br />
from February to August. To complete<br />
the acquisition, Dallah will raise its<br />
capital by 3.99%, or SAR 38.93M, which<br />
will reduce the existing shareholders’<br />
ownership to 96.17%.<br />
AD Ports Group<br />
Acquires Majority<br />
Stake in Tbilisi Dry<br />
Port<br />
AD Ports Group (ADX: ADPORTS)<br />
has announced the successful<br />
acquisition of a 60% stake in the<br />
Tbilisi Dry Port, making it the majority<br />
owner. This advanced intermodal logistics<br />
hub in Georgia, equipped with rail links<br />
and bonded customs, is expected to<br />
be operational by October <strong>2024</strong>. The<br />
acquisition strengthens the Group’s<br />
strategic position in the Middle Trade<br />
Corridor, connecting Western Asia’s<br />
manufacturing centres with Eastern<br />
Europe’s consumer markets. Abdulaziz<br />
Zayed AlShamsi, Regional CEO, stated<br />
that this move underlines the Group’s<br />
commitment to enhancing global supply<br />
chains and highlights the importance of<br />
the Middle Corridor in international trade.<br />
The hub’s strategic location between the<br />
Caspian and Black Seas will significantly<br />
bolster connectivity and position AD Ports<br />
Group as a key player in global trade.<br />
T2 Acquires Majority Stake in Jordan’s Smart<br />
Way Business Solutions<br />
Saudi Arabian business development<br />
firm T2 has acquired<br />
a significant majority stake in<br />
Jordan-based Smart Way Business<br />
Solutions for an undisclosed amount,<br />
marking another strategic move in its<br />
ambitious growth plans. The acquisition<br />
is part of a broader strategy, with T2<br />
intending to finalise two additional<br />
acquisitions within the year. Headquartered<br />
in Riyadh, T2 was initially<br />
incorporated in France, though it has<br />
firmly established its operations in<br />
Saudi Arabia. Earlier in the year, the<br />
company expanded its portfolio by<br />
acquiring the data management firm<br />
Promize. According to LSEG data,<br />
T2’s leadership believes that this latest<br />
acquisition will significantly enhance<br />
their service offerings and strengthen<br />
their market position. Founded in 2014,<br />
T2 is actively working on a ‘robust<br />
pipeline’ of acquisitions, with a company<br />
spokesperson confirming that<br />
two more transactions are expected to<br />
be completed before the end of <strong>2024</strong>.<br />
Aramco to Take Majority Stake in Petro Rabigh<br />
Aramco, a leading global energy and<br />
chemicals firm, has entered into a<br />
definitive agreement to acquire an<br />
additional 22.5% stake in Rabigh Refining<br />
and Petrochemical Co. (“Petro Rabigh”)<br />
from Sumitomo Chemical for $702M.<br />
Currently, both Aramco and Sumitomo<br />
Chemical hold 37.5% of Petro Rabigh’s<br />
shares, which has been listed on the Saudi<br />
Exchange since 2008. After the deal, priced<br />
at SAR7 per share, Aramco will become<br />
the largest shareholder with around<br />
60% equity, while Sumitomo Chemical<br />
will hold 15%. The transaction, pending<br />
regulatory and third-party approvals, aims<br />
to strengthen Petro Rabigh’s financial<br />
standing. Sumitomo Chemical’s sale<br />
proceeds, along with an additional $702M<br />
from Aramco, will be injected into Petro<br />
Rabigh, totalling $1.4B. Furthermore,<br />
both companies will waive $750M in<br />
shareholder loans each, reducing Petro<br />
Rabigh’s liabilities by $1.5B.<br />
44 www.thefinanceworld.com Sep <strong>2024</strong>
Al Ansari Financial Services Signs Deal to Acquire BFC Group Holdings<br />
Protiviti Member Firm for the<br />
Middle East, a global consulting<br />
leader, proudly announces its<br />
role as the exclusive financial advisor<br />
to Al Ansari Financial Services<br />
PJSC (AAFS) in successfully signing<br />
a sales and purchase agreement to<br />
acquire BFC Group Holdings W.L.L.<br />
(BFCGH). The $200M (AED 735M)<br />
transaction is a significant milestone<br />
for AAFS, establishing the company<br />
as the largest remittance and foreign<br />
exchange provider in the GCC region<br />
IHC’s Emirates<br />
Stallions Unit<br />
Sawaeed Acquires Two<br />
Companies<br />
Sawaeed Holding, a construction<br />
recruitment and outsourcing firm,<br />
has acquired two businesses: United<br />
International Group for Manpower<br />
Services (UIG) and Progressive Real<br />
Estate Development, as disclosed in a<br />
bourse filing. The acquisition involves<br />
100% of the shares in both entities,<br />
according to a statement by Emirates<br />
Stallions Group (ESG), a subsidiary<br />
of International Holding Company<br />
(IHC), on the Abu Dhabi Securities<br />
Exchange (ADX). UIG provides manpower<br />
outsourcing services in the UAE,<br />
while Progressive manages a workers’<br />
accommodation facility in Mussafah,<br />
Abu Dhabi. In April, ESG completed the<br />
full acquisition of Sawaeed Holding to<br />
enhance its presence in the manpower<br />
and labour accommodation sector. “By<br />
integrating UIG’s and Progressive’s<br />
capabilities under Sawaeed, ESG is<br />
consolidating its manpower services<br />
and workers’ accommodation businesses,”<br />
stated ESG.<br />
by branch network. This acquisition<br />
involves purchasing 100 percent of<br />
BFCGH, a prominent foreign exchange<br />
and remittance group based in Bahrain.<br />
The deal expands AAFS’s reach<br />
across the UAE, Bahrain, Kuwait, and<br />
India, increasing the combined entity’s<br />
branch network by 60 percent to over<br />
410 locations. The merger will also<br />
grow the workforce to approximately<br />
6,000 employees, enhancing service<br />
capabilities and operational efficiency.<br />
BHM Capital Seeks Approval for $1.32B Capital<br />
Increase and Acquisition<br />
BHM Capital, a prominent financial<br />
services firm based in<br />
Dubai, is set to seek approval<br />
from its shareholders for a significant<br />
acquisition. The company plans to<br />
acquire AlWaqan Capital Investment<br />
LLC by increasing its capital by AED<br />
4.85B ($1.32B). In a recent disclosure<br />
to the Dubai Financial Market (DFM),<br />
BHM Capital did not provide further<br />
details about AlWaqan Capital. However,<br />
it has proposed raising its capital<br />
from AED 173M to AED 5.023B. This<br />
capital increase will be utilised to facilitate<br />
an exchange of in-kind shares<br />
and the issuance of new shares to<br />
the shareholders of AlWaqan Capital.<br />
Alongside this, BHM Capital, a private<br />
joint stock company listed on the DFM,<br />
is also requesting approval to amend<br />
its articles of association to reflect the<br />
new capital structure.<br />
ADNOC Drilling and Alpha Dhabi JV to Acquire EV<br />
Holdings for $45M<br />
Enersol, a joint venture between<br />
ADNOC Drilling and Alpha Dhabi<br />
Holding PJSC, is poised to<br />
acquire a 100% equity stake in EV<br />
Holdings Ltd. (EV) for around $45M<br />
from the UK-based private equity firm<br />
Dunedin. EV, headquartered in the US,<br />
offers vision-based diagnostics and<br />
analytics services for the oil and gas<br />
sector and operates in 36 countries,<br />
including the UAE and Saudi Arabia.<br />
For the full year ending March 31,<br />
<strong>2024</strong>, EV reported revenue exceeding<br />
$30M, with substantial earnings from<br />
the MENA region. This marks Enersol’s<br />
third acquisition, following last<br />
week’s agreement to purchase 51% of<br />
NTS Amega and an increased stake to<br />
67.2% in Gordon Technologies. The EV<br />
acquisition is contingent on receiving<br />
regulatory approvals and finalising<br />
closing adjustments.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 45
Microsoft Surface Copilot<br />
Microsoft has officially introduced<br />
its latest Surface Pro 11th<br />
<strong>Edition</strong> and Surface Laptop 7th<br />
<strong>Edition</strong> to the UAE market, marking a<br />
significant advancement in AI-powered<br />
computing with the new Copilot+ PCs.<br />
These devices are designed to transform<br />
productivity through cutting-edge<br />
technology, offering a glimpse into the<br />
future of intelligent personal computing.<br />
The Surface Copilot+ PCs represent<br />
Microsoft’s latest leap in AI-driven<br />
innovation. Powered by the state-ofthe-art<br />
Snapdragon X Elite and X Plus<br />
processors, these devices are the most<br />
advanced Windows PCs ever created.<br />
The new processors allow the Surface<br />
devices to execute over 40 trillion operations<br />
per second (TOPS), ensuring<br />
unparalleled speed and efficiency.<br />
This breakthrough performance is a<br />
testament to the rapid progress in AI<br />
capabilities, enabling tasks that were<br />
previously unimaginable.<br />
The new Surface Copilot+ PCs are<br />
equipped with a suite of advanced features<br />
designed to enhance productivity and<br />
creativity. Key features include Recall,<br />
which allows users to instantly locate<br />
any information they have viewed on<br />
their PC, streamlining workflow and<br />
reducing time spent searching for<br />
data. Cocreator refines AI-generated<br />
images in real-time, providing users<br />
with a powerful tool for visual content<br />
creation. Live Captions can translate<br />
video content from 44 languages into<br />
English, including Arabic, making these<br />
devices a versatile choice for a global<br />
audience. These features are crafted<br />
to meet the diverse needs of students,<br />
professionals, and tech enthusiasts,<br />
offering tools that can adapt to a wide<br />
range of applications.<br />
The Surface Pro 11th <strong>Edition</strong> is<br />
designed for users who require both<br />
performance and portability. It features<br />
an optional OLED display, delivering<br />
vibrant colors and deep contrasts in a<br />
slim, lightweight package. This makes<br />
it an ideal choice for professionals on<br />
the move. Additionally, with support<br />
for Wi-Fi 7 and the ability to connect<br />
to up to three 4K monitors, the Surface<br />
Pro is built to handle demanding<br />
environments with ease. On the other<br />
hand, the Surface Laptop 7th <strong>Edition</strong><br />
features a redesigned body with brighter<br />
displays and razor-thin bezels. It<br />
offers enhanced connectivity options<br />
and boasts an impressive battery life<br />
of up to 22 hours, making it a reliable<br />
companion for long workdays.<br />
Security is at the forefront of the new<br />
Surface Copilot+ PCs. These devices<br />
are classified as Secured-core PCs,<br />
integrating advanced security measures<br />
to protect users’ data. Features<br />
like firmware safeguards, dynamic<br />
root-of-trust measurement, and the<br />
Microsoft Pluton security processor<br />
work together to secure the entire PC.<br />
Additionally, Windows Hello Enhanced<br />
Sign-in Security (ESS) enables secure<br />
biometric sign-ins without the need for<br />
passwords, ensuring that users’ information<br />
remains protected at all times.<br />
The new Surface Pro 11th <strong>Edition</strong><br />
and Surface Laptop 7th <strong>Edition</strong> Copilot+<br />
PCs are set to redefine the capabilities<br />
of AI on personal computers.<br />
With their combination of cutting-edge<br />
performance, innovative features, and<br />
robust security, these devices offer<br />
UAE users an unmatched computing<br />
experience tailored to the demands of<br />
the modern world.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 47
Energy News<br />
Egypt and UAE Discuss Strengthening Energy Cooperation<br />
Egypt and the United Arab Emirates<br />
are keen on enhancing their<br />
collaboration in the electricity<br />
and renewable energy sectors, as<br />
highlighted by officials from both<br />
nations. In a meeting at Egypt’s New<br />
Administrative Capital, Egypt’s Minister<br />
of Electricity and Renewable<br />
Energy, Mahmoud Essmat, and the<br />
UAE Ambassador to Cairo, Mariam Al<br />
Kaabi, discussed potential opportunities<br />
for cooperation and investment.<br />
Essmat praised the strong historical<br />
ties between the two countries, noting<br />
the successful partnerships between<br />
UAE companies and Egypt’s Ministry<br />
of Electricity and Renewable Energy,<br />
particularly in renewable energy projects.<br />
He also underscored the importance<br />
of private sector involvement in<br />
Egypt’s renewable energy initiatives,<br />
with the government committed to<br />
supporting UAE investments. Al Kaabi<br />
echoed these sentiments, calling the<br />
Egyptian-Emirati relationship a model<br />
for Arab cooperation.<br />
ADNOC Drilling<br />
Anticipates $1.3B Net<br />
Profit for <strong>2024</strong><br />
Youssef Salem, Chief Financial<br />
Officer of ADNOC Drilling, has projected<br />
net profits between $1.15B<br />
and $1.3B for the company by the end<br />
of <strong>2024</strong>. In a statement to the Emirates<br />
News Agency (WAM), Salem noted that<br />
ADNOC Drilling earned approximately<br />
$570M in net profits during the first half<br />
of <strong>2024</strong> and expects around $730M in the<br />
second half. This growth is attributed to<br />
significant expansion across operations<br />
and the full impact of newly operational<br />
onshore and offshore rigs. The company<br />
has raised its <strong>2024</strong> revenue forecast to<br />
$3.85B, with projections including $1.75B<br />
from onshore drilling and $1.1B from<br />
offshore drilling. Capital expenditures<br />
are anticipated to range from $750M to<br />
$950M, supporting increased rig acquisitions<br />
and growth plans. The rig fleet<br />
expanded to 140 rigs in the first half of<br />
<strong>2024</strong> and is expected to reach 142 by<br />
year-end and 148 by 2026.<br />
UAE: EAD Introduces E-Linking System to Track<br />
Abu Dhabi’s Stack Emissions<br />
The Environment Agency – Abu<br />
Dhabi (EAD) has introduced a<br />
pioneering e-linking system to<br />
connect the entire Stacks Automated<br />
Monitoring System (AMS) in Abu<br />
Dhabi’s industrial, energy, and oil and<br />
gas sectors directly to its emissions<br />
monitoring system. This system, which<br />
can link up to 500 stacks, allows for<br />
real-time data collection. Dr. Shaikha<br />
Salem Al Dhaheri, Secretary General<br />
of EAD, highlighted that this initiative<br />
aims to enhance air quality in Abu<br />
Dhabi, benefiting public health. The<br />
system uses artificial intelligence to<br />
predict air quality and take proactive<br />
measures when emission limits are<br />
exceeded. Currently, 53 stacks have<br />
been successfully linked. This project<br />
represents a significant step towards<br />
environmental sustainability, ensuring<br />
compliance with national air pollution<br />
standards.<br />
Saudi Power Procurement Co. Selects Assystem<br />
for Clean Energy Parks Study<br />
Assystem, a top independent<br />
nuclear engineering firm, has<br />
announced that its subsidiary,<br />
Assystem Radicon, has been chosen by<br />
Saudi Power Procurement Company<br />
(SPPC) to conduct pre-development<br />
studies for renewable energy parks in<br />
Saudi Arabia. This collaboration is part<br />
of a three-year Framework Consultancy<br />
Agreement focused on Technical IPP<br />
predevelopment services. Under the<br />
agreement, Assystem Radicon will<br />
ensure that all work complies with<br />
Saudi Aramco’s standards and specifications.<br />
A key player in the global<br />
nuclear engineering sector, Assystem<br />
has been aiding Saudi Arabia’s shift<br />
towards low-carbon energy through<br />
its Radicon subsidiary, which has been<br />
active in the Kingdom for 30 years, with<br />
offices in Riyadh, Al Khobar, and Yanbu.<br />
This contract is Assystem Radicon’s<br />
second with SPPC, following their<br />
work on the Taiba and Qassim power<br />
plant gas pipeline project.<br />
48 www.thefinanceworld.com Sep <strong>2024</strong>
Oman’s Clean Energy Project Secures Upgrade Programme<br />
A<br />
pioneering initiative generating<br />
clean energy through wave<br />
pressure and solar power has<br />
been acknowledged in Oman’s Upgrade<br />
Programme for its role in turning innovative<br />
ideas into startups. Spearheaded<br />
by CEO Al-Hussain bin Ali Al-Hadrami,<br />
this project aligns with the sustainability<br />
objectives of Oman Vision 2040. The<br />
endeavour aims to deliver sustainable<br />
electricity to remote regions and offshore<br />
platforms, cut reliance on fossil<br />
fuels, and safeguard the environment. It<br />
incorporates cutting-edge technologies<br />
for converting wave and solar energy<br />
and uses intelligent systems to enhance<br />
efficiency. Looking ahead, the project<br />
plans to develop floating structures,<br />
integrate artificial intelligence, and<br />
explore additional renewable sources,<br />
while also creating new job opportunities<br />
and stimulating the local economy.<br />
Egypt and UAE’s Masdar Plan 200MW Wind Farm<br />
The Egyptian Ministry of Electricity<br />
is on track to finalise<br />
an agreement with Abu Dhabi<br />
Future Energy Company (Masdar) by<br />
the third quarter of this year to establish<br />
a significant wind farm project.<br />
This initiative is set to be carried out<br />
under the build-own-operate (BOO)<br />
business model, with the wind farm<br />
having a planned total capacity of<br />
up to 200 megawatts (MW). According<br />
to an official speaking to Asharq<br />
Business, Masdar will undertake the<br />
financial investment, construction, and<br />
ownership of the wind farm. In return,<br />
the Egyptian Electricity Transmission<br />
Company (EETC) will commit to purchasing<br />
the entire electricity output<br />
generated by the project throughout<br />
its operational lifespan. The official<br />
also indicated that the project could<br />
involve investments amounting to approximately<br />
$180M, and the EETC is<br />
currently in the process of reviewing<br />
the final terms of the contract.<br />
Emirates Water and Electricity Company Unveils<br />
Wind-based Clean Energy Certificates<br />
Emirates Water and Electricity<br />
Company (EWEC) has unveiled<br />
its clean energy certificates<br />
(CECs) for the UAE’s utility-scale Wind<br />
Programme. As a key player in coordinating<br />
water and electricity services<br />
across the UAE, Ewec announced that<br />
these wind energy CECs will now be<br />
available for purchase by UAE entities.<br />
This initiative follows the UAE’s first<br />
utility-scale Wind Programme, which<br />
saw EWEC sign a power purchase<br />
agreement with Masdar in late 2023.<br />
The new CECs will support entities<br />
in meeting their sustainability targets<br />
by certifying their use of clean energy<br />
and cutting carbon emissions. EWEC<br />
sources electricity from wind farms<br />
at Al Sila, Sir Bani Yas Island, and<br />
Delma Island, which together produce<br />
99 megawatts of power—enough for<br />
around 22,000 homes and reducing CO2<br />
emissions by 115,000 tonnes annually.<br />
DEWA Reports $3.73B<br />
in H1-24 Revenue<br />
Dubai Electricity and Water Authority<br />
(DEWA) has released its<br />
consolidated financial results<br />
for the first half of <strong>2024</strong>, reporting<br />
substantial figures: revenue reached<br />
AED 13.7B, EBITDA was AED 6.6B,<br />
operating profit amounted to AED<br />
3.3B, and profit after tax stood at AED<br />
2.6B. Saeed Mohammed Al Tayer, MD<br />
and CEO of DEWA, remarked on the<br />
impressive 7.3% increase in revenue and<br />
8.9% growth in EBITDA compared to<br />
the same period in the previous year.<br />
This growth is attributed to a 6.7% rise<br />
in power demand and a 4.3% increase<br />
in water demand, reflecting ongoing<br />
economic expansion in Dubai. DEWA’s<br />
strategic goals include reaching 20 GW<br />
of installed power capacity and 735<br />
MIGD of water by 2030, with 27% of<br />
power coming from renewable sources.<br />
Although net profit saw a 6.7% decline,<br />
DEWA remains dedicated to upholding<br />
world-class efficiency benchmarks<br />
and advancing Dubai’s 2050 Net-Zero<br />
emissions target.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 49
Real Estate<br />
Source: freepik.com<br />
Smart Investments:<br />
PropTech in<br />
Transforming Real Estate<br />
in the New Arab <strong>World</strong><br />
Discover how PropTech is reshaping real estate in the New<br />
Arab <strong>World</strong>, driving smart investments forward.<br />
PropTech, short for Property Technology,<br />
is revolutionizing the real estate landscape<br />
in the Arab world, with Dubai and Saudi<br />
Arabia leading the charge. As traditional<br />
real estate practices evolve, PropTech<br />
introduces digital tools and platforms<br />
that streamline property management,<br />
enhance investment opportunities, and<br />
improve market transparency. Venture<br />
capital interest in this sector is surging,<br />
driven by the need for innovative<br />
solutions in a rapidly urbanizing region.<br />
This article delves into the emergence<br />
of Dubai and Saudi Arabia as PropTech<br />
investment hubs, exploring key trends,<br />
innovations, and the challenges shaping<br />
this dynamic sector.<br />
50 www.thefinanceworld.com Sep <strong>2024</strong>
In the Middle East, venture capital<br />
interest in PropTech is surging, driven<br />
by the need for innovative solutions<br />
in real estate. PropTech, which leverages<br />
digital tools and platforms, is enhancing<br />
property management, investment opportunities,<br />
and market transparency<br />
across the region. This article explores<br />
the emergence of Dubai and Saudi Arabia<br />
as PropTech investment hubs amidst<br />
a regional venture capital slowdown,<br />
highlighting key trends, innovations,<br />
and challenges.<br />
PropTech vs. FinTech: Shift in<br />
Investment Focus<br />
In the first half of <strong>2024</strong>, PropTech startups<br />
led early-stage funding in the region,<br />
surpassing FinTech. PropTech raised<br />
$200 million across 14 deals, compared<br />
to FinTech’s $156 million from 50 deals,<br />
according to Dubai-based accelerator Wamda.<br />
This shift highlights growing investor<br />
confidence in PropTech’s potential and<br />
its resilience amid a broader slowdown<br />
in MENA venture capital investments.<br />
Saudi Arabia’s PropTech Investments<br />
Surge<br />
In Saudi Arabia, PropTech investments<br />
surged in 2023, with venture capital increasing<br />
by 35% to $9 million. Despite a<br />
global decline in PropTech funding, Saudi<br />
Arabia outpaced regions like Africa and<br />
Southeast Asia in deal count, securing<br />
six deals and ranking fifth in funding<br />
amount. The total global funding of $157<br />
million in 2023 marked an 81% decrease<br />
from the previous year, with a significant<br />
decline in deal counts. Nonetheless, Saudi<br />
Arabia’s PropTech growth highlights the<br />
region’s focus on technological innovation<br />
in real estate.<br />
The report highlighted that while<br />
total funding across all markets in 2023<br />
amounted to $157 million, this marked<br />
an 81 percent decrease compared to the<br />
previous year, with deal counts also experiencing<br />
a significant annual decline.<br />
Despite these global challenges, Saudi<br />
Arabia’s growth in PropTech investment<br />
reflects the region’s increasing focus on<br />
technological innovation in real estate.<br />
Key Factors Aiding PropTech Growth<br />
Rise in Population and Urbanization: The<br />
UAE and Saudi Arabia’s demographic<br />
growth is driving real estate demand<br />
and increasing the need for tech-based<br />
solutions that streamline processes and<br />
enhance market access.<br />
Regulatory Support and Innovation<br />
Initiatives: Dubai’s progressive frameworks<br />
like the Real Estate Evolution<br />
Space Initiative and conferences support<br />
PropTech startups. Similarly, Saudi<br />
Arabia’s Vision 2030 and government<br />
initiatives foster tech-driven real estate<br />
investments.<br />
Success Stories: Fractional Ownership<br />
by Stake<br />
A prime example of the PropTech boom<br />
is Stake, a Dubai-based startup that<br />
facilitates fractional ownership in real<br />
estate. Founded last year, Stake recently<br />
raised $14 million in its Series A round,<br />
showcasing strong investor appetite for<br />
innovative property investment models.<br />
This success story reflects the broader<br />
trend of PropTech startups attracting<br />
significant investment and transforming<br />
real estate practices in the Arab world.<br />
Proptech Startups in the UAE<br />
The UAE real estate sector is transforming<br />
with PropTech, leveraging AI, big data,<br />
and cloud computing to boost efficiency<br />
and customer experiences. Six notable<br />
UAE-based PropTech startups—Property<br />
Finder, EMPG, Huspy, Nomad Homes,<br />
Stake, and Houza—are leading this growth,<br />
attracting global investment, and are key<br />
players to watch in <strong>2024</strong> and beyond.<br />
Real Estate Developers Embrace<br />
PropTech<br />
Major developers like Pepco Blocks and<br />
Mag Lifestyle Development are integrating<br />
blockchain and fractional ownership models<br />
into their offerings. These innovations<br />
are diversifying investment opportunities<br />
and improving market access for smaller<br />
investors, further driving the adoption<br />
of PropTech in the region.<br />
The Rise of PropTech in Dubai’s<br />
Dynamic Real Estate Market<br />
PropTech has transformed the way<br />
people and businesses buy, rent, and<br />
manage properties. From AI-operated<br />
virtual tours to data-driven algorithms<br />
matching renters with their ideal homes,<br />
Dubai’s real estate market has undergone<br />
a significant change. As the city continues<br />
to innovate, PropTech is poised to<br />
be a central force shaping Dubai’s real<br />
estate landscape.<br />
PropTech Solutions Driving<br />
Transformation<br />
PropTech solutions are transforming the<br />
Arab world’s real estate industry by driving<br />
efficiency and innovation. Property<br />
management software automates tasks,<br />
enhancing productivity and transparency.<br />
Online property portals centralize listings,<br />
streamlining the search process. Blockchain<br />
transactions ensure secure, transparent<br />
deals, while smart contracts reduce costs<br />
and increase reliability. Big data analytics<br />
provide insights into market trends and<br />
investment opportunities. Smart home<br />
technology supports sustainability with<br />
energy-efficient systems and security<br />
features. Virtual tours offer remote access<br />
for buyers, especially international<br />
investors. Together, these innovations<br />
are reshaping the real estate landscape<br />
across the region.<br />
Challenges and Future Outlook<br />
Despite PropTech’s rapid transformation<br />
of the Arab world’s real estate sector,<br />
challenges remain. Regulatory hurdles<br />
exist as technology adoption often<br />
outpaces existing frameworks, with outdated<br />
regulations sometimes hindering<br />
new solutions. While governments are<br />
working to update laws, progress is<br />
slow. The market’s fragmentation results<br />
in inconsistent technology adoption<br />
across countries and cities. Security<br />
concerns also pose risks, with digital<br />
solutions vulnerable to cybersecurity<br />
threats, making data protection crucial.<br />
Addressing these challenges is essential<br />
to fully realizing PropTech’s potential in<br />
the region.<br />
PropTech is rapidly becoming a cornerstone<br />
of the Middle East real estate<br />
market, with Dubai and Saudi Arabia<br />
leading the way. The region’s strong<br />
investment environment and focus on<br />
technology are driving major changes<br />
in real estate management. As PropTech<br />
grows, it offers significant opportunities<br />
for investors, developers, and consumers,<br />
promising a future of more accessible,<br />
efficient, and transparent real estate<br />
across the Arab world.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 51
Real Estate News<br />
Abu Dhabi Real Estate Market Experiences<br />
225% Spike in FDIs<br />
During the first half of <strong>2024</strong>, the<br />
Abu Dhabi real estate market<br />
attracted foreign direct investments<br />
(FDI) worth AED 3.28B ($893M),<br />
marking a 225 percent year-on-year<br />
increase. The Abu Dhabi Real Estate<br />
Centre (ADREC) reported that 971<br />
investors from 75 countries, including<br />
the US, UK, China, Kazakhstan, and<br />
Russia, contributed to this growth.<br />
This diverse investment underscores<br />
the growing international confidence<br />
in Abu Dhabi’s property sector. In the<br />
first six months of <strong>2024</strong>, there were<br />
12,439 transactions totalling AED<br />
36.2B, including 7,088 sales and 5,351<br />
mortgage transactions. The surge in<br />
FDI aligns with ADREC’s strategy to<br />
transform Abu Dhabi into a leading<br />
global real estate hub, supporting<br />
economic diversification and reducing<br />
dependency on oil revenues, ultimately<br />
enhancing the city’s global standing.<br />
Ajman Real Estate Soars with $544.5M July<br />
Transactions, Up 42.85%<br />
The real estate market in Ajman<br />
continues its upward trajectory,<br />
with 1,468 transactions in July<br />
amounting to over AED 2B, reflecting<br />
a 42.85% year-on-year increase. Omar<br />
bin Omair Al Muhairi, Director-General<br />
of Ajman’s Department of Land and<br />
Real Estate Regulation, highlighted<br />
the Emirate’s strong momentum and<br />
notable growth in both transaction<br />
numbers and values, driven by diverse<br />
investment opportunities and<br />
a favourable business environment.<br />
July’s transactions totalled AED 1.34B,<br />
with Al Rashidiya 1 leading in sales<br />
at AED 80M. The department also<br />
recorded 280 mortgage transactions<br />
worth AED 489M, with the highest<br />
single mortgage valued at AED 75M in<br />
Ajman Industrial 2. Al Helio 2 was the<br />
most traded neighbourhood, followed<br />
by Al Zaheya and Al Yasmeen, while<br />
Emirates City led major projects in<br />
trading volume, surpassing Ajman One<br />
and City Towers.<br />
UAE’s Architectural Surge Sets New Standard for<br />
Urban Planning in the Gulf<br />
The architectural boom in the United<br />
Arab Emirates is fuelled by<br />
economic prosperity and growth<br />
in the real estate sector, positioning<br />
the nation alongside the world’s most<br />
developed countries. Iconic projects,<br />
including innovative skyscrapers,<br />
residential towers, and luxury hotels,<br />
highlight the UAE’s emergence as a<br />
model for urban planning. According<br />
to JLL, the total value of current construction<br />
projects stands at $590B,<br />
showcasing significant progress in<br />
the sector. Noteworthy achievements<br />
like the Etihad Towers, Sheikh Zayed<br />
Grand Mosque, and the Museum of<br />
the Future exemplify this success.<br />
By the end of the year, the real estate<br />
market is projected to reach AED 2.6T<br />
(approximately $707B), driven by growing<br />
interest from affluent investors.<br />
Azizi Developments Partners<br />
with Bahra Electric<br />
on Multiple Dubai Projects<br />
Azizi Developments, a prominent<br />
UAE-based private developer,<br />
has announced a partnership<br />
with Bahra Electric, a leading electrical<br />
manufacturing company from Saudi<br />
Arabia. This collaboration will see<br />
Bahra Electric supply a wide range of<br />
electrical products, including earthing<br />
and lighting systems, to several of Azizi’s<br />
projects across Dubai South, MBR City,<br />
Dubai Studio City, Al Furjan, Dubai<br />
Sports City, and Dubai Healthcare City.<br />
These projects include Azizi Venice,<br />
Riviera, Azizi Vista, Azizi Central, Azizi<br />
Grand, and Creek Views III. Founded<br />
in 2008, Bahra Electric is renowned for<br />
its high-quality electrical products, including<br />
wires, cables, busway systems,<br />
and switchgear. The company’s commitment<br />
to international standards like<br />
ISO 9001 and IEC, alongside its focus<br />
on sustainability and innovation, has<br />
solidified its market presence across<br />
the MENA region.<br />
Alef Group Finalises Hayyan<br />
Master Infrastructure in<br />
Sharjah<br />
Alef Group, the Sharjah-based<br />
real estate developer, has announced<br />
the completion of the<br />
master infrastructure for the Hayyan<br />
development. This project includes the<br />
Arim and Alma neighbourhoods, which<br />
are progressing ahead of schedule,<br />
reflecting Alef Group’s dedication to<br />
delivering exceptional residential projects.<br />
Issa Ataya, CEO of Alef Group,<br />
remarked, “The successful completion<br />
of the master infrastructure at Hayyan,<br />
along with the advanced progress<br />
in Arim and Alma, underscores our<br />
unwavering commitment to creating<br />
outstanding living environments. We<br />
are focused on providing high-quality,<br />
sustainable residential options that<br />
improve our residents’ lives.” The Arim<br />
neighbourhood features 848 units with<br />
modern amenities, lush greenery, and<br />
sustainable design, while Alma, a new<br />
zone within Hayyan, offers 299 elegant<br />
villas and townhouses with views of the<br />
Clubhouse and Lagoon, ensuring privacy<br />
and high international standards.<br />
52 www.thefinanceworld.com Sep <strong>2024</strong>
ENBD REIT Sells<br />
Remraam Towers, Cuts<br />
LTV to 49.4%<br />
ENBD REIT, a Shari’a-compliant<br />
real estate investment trust<br />
managed by Emirates NBD Asset<br />
Management, sold its Remraam residential<br />
assets on 31 March at a slight<br />
premium above market value. The sale<br />
aligns with ENBD REIT’s strategy to<br />
optimise its portfolio, focusing on dividend<br />
growth through proactive asset<br />
management. Proceeds will be used to<br />
reduce debt, lowering the Loan-to-Value<br />
ratio to 49.4 percent from 51 percent.<br />
The two residential towers, Al Ramth<br />
57 and 59 in Dubailand, were acquired<br />
in 2015 and account for 4 percent of<br />
the REIT’s portfolio. Samir Kazi, CEO<br />
of ENBD REIT, noted that this sale<br />
marks the first step in their strategy<br />
to enhance portfolio quality and financial<br />
stability while continuing to seek<br />
strategic investment opportunities.<br />
Awqaf Dubai Properties Achieve Record 99.6%<br />
Occupancy in H1 <strong>2024</strong><br />
Dubai’s Endowments and Minors’<br />
Trust Foundation (Awqaf Dubai)<br />
reported a record occupancy<br />
rate of 99.6% for its properties during<br />
the first half of <strong>2024</strong>. This peak performance<br />
comes alongside the addition of<br />
1,887 new units to its portfolio over the<br />
past five years. By mid-<strong>2024</strong>, the value<br />
of new and renewed contracts for the<br />
Foundation’s properties reached AED<br />
162.6M, reflecting a 12.5% increase<br />
from the same period in 2023. The<br />
total number of properties under the<br />
Foundation’s management, including<br />
endowment and minors’ properties,<br />
rose to 5,863, with an increase of 1,028<br />
units so far this year. Ali Mohammed Al<br />
Mutawa, Secretary-General of Awqaf<br />
Dubai, highlighted the Foundation’s<br />
commitment to advancing endowment<br />
projects and presenting a model of<br />
Dubai’s support for humanitarian efforts.<br />
By the end of 2023, Awqaf Dubai’s<br />
real estate portfolio was valued at<br />
approximately AED 289M, managing<br />
4,835 units.<br />
UAE Approves $692M in Real Estate Tax Refunds<br />
UAE authorities have issued AED<br />
2.54B ($692M) in refunds to<br />
Emirati citizens for VAT paid on<br />
new homes. The Federal Tax Authority<br />
(FTA) has approved 30,920 applications<br />
for these refunds up to the end of June<br />
<strong>2024</strong>. This represents a 32.45% increase<br />
in the number of approved applications<br />
and a 65.07% rise in the total refunded<br />
amount compared to the same period<br />
in 2023, when 23,340 applications<br />
were approved, totalling AED 1.54B<br />
($419M). Over the past year, 7,580 new<br />
applications were approved, resulting<br />
in over AED 1B ($272M) in refunds. In<br />
the first half of <strong>2024</strong> alone, 3,590 new<br />
applications were approved, refunding<br />
AED 336.09M ($92M). Khalid Ali Al<br />
Bustani, Director-General of the FTA,<br />
attributed this growth to increased tax<br />
awareness and ongoing improvements<br />
to the Tax Refund Scheme.<br />
Marjan, Mira Developments Announce Beachfront Project in Ras Al Khaimah<br />
Marjan, the leading developer of<br />
freehold properties in Ras Al<br />
Khaimah, has launched Mira<br />
Coral Bay, a significant new waterfront<br />
project in Al Mairid. In partnership<br />
with Mira Developments, known for<br />
its premium properties, this mixed-use<br />
development aims to elevate Al Mairid<br />
as a prime investment and tourism hub.<br />
Mira Coral Bay, featuring multi-use<br />
properties and collaborations with<br />
esteemed lifestyle brands, underscores<br />
Marjan’s commitment to enhancing the<br />
emirate’s real estate sector. The project,<br />
developed by Marjan’s subsidiary RAK<br />
Dredging Company, aligns with Ras Al<br />
Khaimah’s vision of becoming a top<br />
tourism and investment destination.<br />
With a masterplan by Marco Casamonti<br />
& Partners / Archea Associati, Mira<br />
Coral Bay is poised to attract global<br />
investors, residents, and tourists,<br />
setting new standards in luxury living.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 53
Opinion<br />
Source: Supplied<br />
Adil Buhariwalla, Senior Partner, Internal Audit & Risk Consulting at UHY James<br />
GIAS and their Impact<br />
on Strengthening<br />
Governance within<br />
Investment Companies<br />
Building a resilient governance<br />
structure with the new Global Internal<br />
Audit Standards.<br />
On January 9, <strong>2024</strong>, the IIA announced the<br />
Global Internal Audit Standards (GIAS).<br />
The GIAS is part of a framework known<br />
as the International Professional Practices<br />
Framework. The GIAS will go into effect<br />
on January 9, 2025. The new Standards<br />
clarify board and management responsibilities<br />
governance structures, and mutual<br />
expectations between the board/senior<br />
management and the Chief Audit Executive<br />
(CAE). Investment companies in<br />
the UAE must adhere to various governance<br />
and compliance codes such as the<br />
Securities and Commodities Authority<br />
(SCA), the Dubai Financial Services Authority<br />
(DFSA), Abu Dhabi Global Market<br />
(ADGM), Central Bank UAE (CB UAE),<br />
Anti-Money Laundering (AML) and Counter-Terrorism<br />
Financing (CTF) and Data<br />
Privacy and Cybersecurity Governance.<br />
54 www.thefinanceworld.com Sep <strong>2024</strong>
Investment companies, by the nature<br />
of their business, also face several<br />
key financial risks, including Market<br />
Risk, Credit Risk, Liquidity Risk, Interest<br />
Rate Risk, Currency Risk, Inflation Risk,<br />
Operational Risk, and Regulatory & Compliance<br />
Risk. Investment companies can<br />
leverage the new Global Internal Audit<br />
Standards to strengthen their governance,<br />
risk management, and compliance frameworks,<br />
as follows:<br />
Corporate Governance<br />
For investment companies, aligning<br />
internal audit practices with GIAS ensures<br />
that management’s operations are<br />
transparent and consistent with best<br />
governance practices.<br />
Risk Management & Control<br />
With investment companies being exposed<br />
to diverse risks in myriad areas,<br />
as explained below, the new Global<br />
Internal Audit Standards could help<br />
entities manage risks effectively in the<br />
best interest of the business.<br />
1. Market Risk: The potential for losses<br />
due to changes in the overall market<br />
conditions, such as fluctuations in stock<br />
prices, bond prices, or interest rates.<br />
2. Credit Risk: The risk that borrowers<br />
or counterparties will default on their<br />
financial obligations, such as loans or<br />
bond payments, leading to potential losses.<br />
3. Liquidity Risk: The risk that the<br />
company may not be able to buy or sell<br />
investments quickly enough to prevent<br />
or minimize a loss, or meet its financial<br />
obligations when they are due.<br />
4. Interest Rate Risk: The risk that<br />
changes in interest rates will negatively<br />
impact the value of fixed-income investments,<br />
like bonds, or affect the cost of<br />
borrowing.<br />
5. Currency Risk: For companies<br />
investing internationally, the risk that<br />
fluctuations in exchange rates will affect<br />
the value of foreign investments.<br />
6. Inflation Risk: The risk that inflation<br />
will erode the real returns on investments,<br />
particularly for fixed-income securities<br />
where returns are fixed.<br />
7. Operational Risk: Risks arising<br />
from internal issues such as systems<br />
failures, mismanagement, or fraud that<br />
could impact the financial performance<br />
of the investment company.<br />
8. Regulatory and Compliance<br />
Risk: The risk of financial losses due to<br />
non-compliance with regulatory requirements<br />
or changes in laws and regulations<br />
affecting investment practices.<br />
Wielding these potential risks requires<br />
careful management and strategy by<br />
investment companies to protect their<br />
portfolios and ensure long-term financial<br />
stability. Investment companies can<br />
leverage the GIAS to build robust risk<br />
management frameworks. This is vital<br />
in managing portfolios and protecting<br />
investor interests.<br />
Compliance<br />
In a regulatory environment characterized<br />
by stringent requirements, the GIAS<br />
is crucial in ensuring compliance with<br />
global and local regulations. Internal<br />
auditors equipped with GIAS guidelines<br />
can provide more reliable assurances<br />
about the effectiveness of a company’s<br />
compliance measures. This is particularly<br />
important for investment firms in<br />
the UAE, which must navigate complex<br />
regulatory frameworks such as those<br />
enforced by the SCA, DFSA, ADGM, CB<br />
UAE, and others.<br />
By adhering to the GIAS, investment<br />
companies can streamline their compliance<br />
processes, reduce the risk of<br />
non-compliance penalties, and demonstrate<br />
a commitment to meeting regulatory<br />
obligations.<br />
Ethical Practices<br />
Ethical conduct is a cornerstone of effective<br />
governance and risk management.<br />
The GIAS emphasizes the importance of<br />
adhering to the company’s code of ethics,<br />
which fosters a culture of integrity and<br />
accountability. By promoting ethical<br />
practices, the GIAS helps investment<br />
companies build a trustworthy business<br />
ecosystem where ethical behavior is<br />
embedded in the corporate culture.<br />
This focus on ethics supports a strong<br />
corporate culture and enhances the organization’s<br />
reputation, contributing to<br />
long-term success and stakeholder trust.<br />
Operations<br />
Efficient financial and operational processes<br />
are vital for investment companies.<br />
GIAS offers guidelines for assessing and<br />
enhancing these processes, leading to<br />
improved performance and resource<br />
utilization. By adopting GIAS, firms can<br />
streamline operations, boost efficiency,<br />
and drive continuous improvement,<br />
resulting in cost savings and a competitive<br />
advantage.<br />
IT Controls<br />
In an era of sophisticated cybersecurity<br />
threats, GIAS highlights the need for<br />
strong IT controls. Investment firms must<br />
enhance their cybersecurity frameworks<br />
to safeguard sensitive financial data and<br />
maintain investor trust. GIAS provides a<br />
framework for assessing IT controls to<br />
address emerging threats, emphasizing<br />
regular evaluations to identify and rectify<br />
vulnerabilities. Adhering to GIAS will<br />
help investment companies strengthen<br />
their cybersecurity, protect critical data,<br />
and ensure IT infrastructure integrity.<br />
As regulations within the realm of<br />
investment companies become stringent,<br />
it proves beneficial to embrace and adopt<br />
the <strong>2024</strong> Global Internal Audit Standards<br />
to fortify governance measures, drive<br />
compliance, and manage risks effectively.<br />
By aligning internal audit practices with<br />
these standards, firms can address the<br />
complexities of the modern financial<br />
environment more effectively.<br />
The GIAS offers a<br />
comprehensive<br />
approach to managing<br />
various risks, ensuring<br />
compliance with<br />
regulations, and<br />
promoting ethical<br />
practices.”<br />
As investment companies in the UAE<br />
and beyond prepare for the implementation<br />
of these standards, embracing GIAS will<br />
be key to fortifying governance measures,<br />
driving compliance, and managing risks<br />
effectively.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 55
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Google Pixel 9<br />
Google has officially introduced<br />
its latest smartphone lineup, the<br />
Pixel 9 series, which includes the<br />
Pixel 9, Pixel 9 Pro, and Pixel 9 Pro XL.<br />
These new models mark a significant<br />
leap forward in design, AI capabilities,<br />
and camera technology, setting a new<br />
standard for Android devices.<br />
The Pixel 9 phones boast a sleek,<br />
sculpted design that elevates the camera<br />
bar, now more prominent and integrated<br />
than ever before. With a silky matte<br />
glass back and polished metal sides,<br />
these devices not only look premium but<br />
also feel comfortable in hand. Google<br />
has doubled the durability compared<br />
to the Pixel 8, ensuring these phones<br />
are built to last.<br />
For the first time, the Pro model<br />
comes in two sizes: the Pixel 9 Pro<br />
(6.3 inches) and the Pixel 9 Pro XL (6.8<br />
inches). Both versions feature Google’s<br />
best and brightest Super Actua displays,<br />
along with a new 42 MP front camera<br />
designed for sharper, brighter selfies<br />
in low light. The Pixel 9 Pro models<br />
also share identical specs, including<br />
charging speed and processing power,<br />
making the choice between them largely<br />
a matter of preferred size.<br />
The standard Pixel 9, with its 6.3-<br />
inch Actua display, is 35% brighter<br />
than its predecessor and boasts the<br />
best display in its class. The camera<br />
system has also seen a significant<br />
upgrade, with a 48 MP ultrawide lens,<br />
a major improvement from the 12 MP<br />
lens on the Pixel 8. Additionally, the<br />
front camera now includes autofocus<br />
for even crisper selfies. The Pixel 9<br />
offers approximately 20% longer battery<br />
life during active use, a testament to<br />
Google’s focus on efficiency.<br />
Under the hood, the Pixel 9 series<br />
is powered by Google’s new Tensor<br />
G4 chip, co-designed with Google<br />
DeepMind. This chip is optimized for<br />
AI-driven tasks and runs the Gemini<br />
Nano system, allowing the phone to<br />
understand text, images, and audio with<br />
unprecedented accuracy. The Pixel 9<br />
includes 12 GB of RAM, while the Pro<br />
models come with 16 GB, ensuring<br />
smooth performance across the board.<br />
One of the standout features is the<br />
introduction of Gemini Live, a conversational<br />
AI that allows users to interact<br />
with their phone in a more natural and<br />
intuitive way. This AI assistant can help<br />
plan events, brainstorm ideas, and even<br />
provide detailed weather reports. Pixel<br />
9 Pro and Pro XL buyers will receive<br />
a year of Gemini Advanced with their<br />
purchase.<br />
The Pixel 9 series also introduces<br />
Pixel Studio, an innovative image<br />
generator that combines on-device<br />
processing with cloud-based AI to create<br />
and edit images directly on the phone.<br />
Meanwhile, the new Pixel Screenshots<br />
app offers an advanced way to organize<br />
and search through saved screenshots,<br />
making it easier than ever to find and<br />
use important information.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 57
Funding & Investment<br />
Source: freepik.com<br />
Corporate Venture<br />
Capital: How Big Business<br />
is Fueling Startup Growth<br />
in the Arab <strong>World</strong><br />
The influence of CVC is accelerating<br />
innovation and driving economic growth<br />
across the region.<br />
The Arab world is experiencing a significant<br />
surge in corporate venture capital<br />
(CVC) activity, as large enterprises increasingly<br />
invest in innovative startups.<br />
This growing trend is reshaping the entrepreneurial<br />
ecosystem, with corporations<br />
playing a crucial role in nurturing new<br />
businesses and driving economic diversification.<br />
Across sectors like technology<br />
and healthcare, CVC initiatives are<br />
fueling startup growth by providing not<br />
just capital, but also strategic resources,<br />
mentorship, and industry expertise. This<br />
article explores how corporate venture<br />
capital is transforming the startup landscape<br />
in the Arab world and examines<br />
the substantial impact these investments<br />
are having on the region’s economy and<br />
future growth prospects.<br />
58 www.thefinanceworld.com Sep <strong>2024</strong>
Corporate venture capital (CVC) has<br />
significantly influenced the Arab<br />
world over the past decade. Multinational<br />
companies and regional giants<br />
are increasingly establishing dedicated<br />
venture arms to invest in high-potential<br />
startups. Notable examples include<br />
Saudi Aramco Ventures and STV (Saudi<br />
Technology Ventures). These corporate<br />
investors offer more than just financial<br />
backing. They provide critical strategic<br />
partnerships, mentorship, and market<br />
access, which are vital for the rapid growth<br />
of startups. By integrating startups into<br />
their expansive networks, corporates<br />
facilitate broader market reach and<br />
provide valuable industry insights. In<br />
turn, this collaboration enables startups<br />
to scale more quickly and effectively.<br />
For corporations, CVC investments<br />
also serve as a strategic tool to stay at<br />
the cutting edge of technological advancements.<br />
By supporting and engaging<br />
with innovative startups, corporates<br />
can stay ahead of market trends and<br />
emerging technologies, ensuring they<br />
remain competitive in an ever-evolving<br />
landscape.<br />
Strategic benefits of CVC are substantial<br />
for large corporations<br />
Firstly, investing in startups gives them<br />
early access to cutting-edge technologies<br />
and innovative business models that<br />
can be integrated into their operations,<br />
enhancing their competitive advantage.<br />
Secondly, CVC allows corporations to<br />
enter new markets and sectors with<br />
the agility of a startup, leveraging their<br />
established brand and resources. Thirdly,<br />
it fosters a culture of innovation within<br />
their organization by exposing their<br />
teams to entrepreneurial thinking and<br />
new ideas. In the Arab world, where<br />
economic diversification is crucial, CVC<br />
is a key tool for driving growth and global<br />
competitiveness.<br />
The impact of CVC on the startup ecosystem<br />
in the Arab world is profound<br />
Startups receiving CVC funding benefit<br />
from more than financial support; they<br />
gain access to corporate customer bases,<br />
distribution channels, and industry networks,<br />
which are vital for scaling operations<br />
and market traction. CVC-backed<br />
startups often experience higher success<br />
rates due to the strategic guidance and<br />
resources provided by their investors.<br />
The presence of CVC is transforming<br />
the region into a vibrant innovation hub,<br />
attracting top talent and fostering a competitive<br />
environment, thus contributing<br />
to broader economic growth.<br />
Moreover, the presence of CVC in the<br />
Arab world is catalyzing a transformation<br />
in the regional startup landscape. It is<br />
fostering a dynamic and competitive<br />
environment that attracts top talent<br />
and encourages innovation. The influx<br />
of CVC investment is contributing to a<br />
more vibrant and diverse ecosystem,<br />
where new ideas and technologies can<br />
flourish. This growth is not only enhancing<br />
the entrepreneurial climate but also<br />
driving broader economic development, as<br />
successful startups create jobs, stimulate<br />
industry advancements, and generate<br />
new business opportunities.<br />
Sector-specific CVC initiatives are<br />
tailored to various industry needs<br />
in the Arab world<br />
For instance, in the technology sector,<br />
corporations like Etisalat and Zain are<br />
investing in digital startups, fintech,<br />
and artificial intelligence to drive technological<br />
advancement. In healthcare,<br />
Mubadala Health is focusing on health<br />
tech startups. Additionally, energy sector<br />
investments, such as those by Saudi Aramco,<br />
are directed towards clean energy<br />
and sustainable technology startups. In<br />
retail and e-commerce, companies like<br />
Majid Al Futtaim are backing startups that<br />
offer innovative consumer engagement<br />
and supply chain solutions. Despite the<br />
advantages, CVC presents challenges for<br />
both startups and corporations.<br />
Challenges for Startups<br />
Corporate venture capital plays a crucial<br />
role in fueling startup growth in the Arab<br />
world, providing startups with more than<br />
just funding. CVC offers access to corporate<br />
networks, strategic partnerships and<br />
more, which can significantly accelerate<br />
startup growth. However, despite these<br />
benefits, startups face several challenges.<br />
Complexity of Collaboration: Startups<br />
struggle with the differing processes and<br />
priorities of large corporations, which<br />
can cause friction in project execution<br />
and decision-making.<br />
Risk of Dependence: Heavy reliance<br />
on a single corporate investor can limit<br />
a startup’s flexibility and autonomy,<br />
making them vulnerable to shifts in the<br />
investor’s strategy and restricting their<br />
ability to seek other opportunities.<br />
Alignment of Objectives: Startups<br />
must align their goals with those of their<br />
corporate investors, which can lead<br />
to compromises that may dilute their<br />
original vision.<br />
Challenges for Corporations<br />
Balancing Support and Autonomy:<br />
Corporations must support startups<br />
while respecting their independence,<br />
managing the balance between entrepreneurial<br />
freedom and alignment with<br />
corporate goals.<br />
Integration of Innovative Solutions:<br />
Integrating startups’ innovations into<br />
corporate structures requires careful<br />
planning to avoid disrupting existing<br />
operations and preserving the startup’s<br />
original innovation.<br />
Strategic Alignment: Corporations must<br />
ensure that CVC investments align with<br />
their strategic goals and provide value<br />
to both the startup and the corporation.<br />
The future of CVC in the Arab world<br />
appears promising<br />
More corporations are expected to enter<br />
the CVC space, driven by its potential to<br />
foster innovation and growth. Regional<br />
governments are supporting these activities<br />
through policies and initiatives that<br />
encourage entrepreneurship, such as the<br />
UAE’s National Innovation Strategy and<br />
Saudi Arabia’s Vision 2030. As these efforts<br />
gain momentum, the Arab world is likely<br />
to see increased CVC investments across<br />
various sectors, further fueling startup<br />
growth and contributing to economic<br />
transformation.<br />
Corporate venture capital is playing<br />
a crucial role in shaping the future of<br />
the Arab world’s startup ecosystem. By<br />
providing startups with the financial<br />
resources, strategic partnerships, and<br />
industry expertise they need to succeed,<br />
CVC is helping to drive innovation and<br />
economic diversification across the<br />
region. As more corporations embrace<br />
this approach, the Arab world is poised<br />
to become a hub for entrepreneurial<br />
activity, with a dynamic and thriving<br />
startup ecosystem that can compete on<br />
the global stage.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 59
Wheels<br />
343 km/h<br />
Max Speed<br />
920 CV<br />
Max Power<br />
(combined ICE+EE)<br />
0-100 km/h<br />
2.7 seconds<br />
60 www.thefinanceworld.com Sep <strong>2024</strong>
Automobili Lamborghini has<br />
introduced the Temerario, a<br />
groundbreaking twin-turbo<br />
V8 hybrid super sports car, at The<br />
Quail, A Motorsports Gathering, during<br />
Monterey Car Week in California.<br />
Succeeding the iconic Huracán, the<br />
Temerario sets a new benchmark in the<br />
super sports car segment, boasting an<br />
impressive total power output of 920<br />
CV. This powerhouse reaches a top<br />
speed of over 210 mph (340 km/h) and<br />
accelerates from 0 to 62 mph (0 to 100<br />
km/h) in a breathtaking 2.7 seconds. As<br />
the second Lamborghini HPEV (High<br />
Performance Electrified Vehicle), the<br />
Temerario represents the third step in<br />
the company’s electrification strategy,<br />
completing the hybridization of Lamborghini’s<br />
entire lineup, following the<br />
Revuelto and Urus SE.<br />
Replacing the Huracán, which debuted<br />
in 2014 as Lamborghini’s best-selling<br />
super sports car, the Temerario<br />
introduces a new paradigm of performance<br />
and driving pleasure. Powered<br />
by a twin-turbocharged 4.0-liter V8<br />
engine, it delivers 789 horsepower<br />
and 538 pound-feet of torque, with an<br />
engine capable of reaching a remarkable<br />
10,000 rpm. The Temerario’s hybrid<br />
system, which includes three electric<br />
motors, elevates its total output to 907<br />
horsepower, with the front axle motors<br />
providing all-wheel-drive capabilities<br />
and enabling full electric mode driving.<br />
This hybrid configuration results in<br />
50% lower carbon dioxide emissions<br />
compared to its predecessor.<br />
The design of the Temerario reflects<br />
Lamborghini’s iconic aesthetic, with<br />
a wedge-shaped body and hexagonal<br />
details. The car is longer than the<br />
Huracán, enhancing its aerodynamic<br />
efficiency. Notable features include<br />
daytime running lights with integrated<br />
air tunnels for brake cooling, large air<br />
intakes, and a fixed rear spoiler. The<br />
interior combines motorsport inspiration<br />
with luxury, offering 18-way<br />
adjustable seats, high-quality materials<br />
like carbon fiber, leather, and suede,<br />
and advanced technology, including a<br />
12.3-inch digital gauge cluster and an<br />
8.4-inch infotainment system.<br />
Lamborghini has also introduced<br />
a lightweight Alleggerita package,<br />
reducing the Temerario’s weight by<br />
up to 55 pounds through the use of<br />
carbon-fiber-reinforced-plastic components<br />
and special lightweight windows.<br />
This package includes a redesigned rear<br />
spoiler for added downforce, enhancing<br />
the car’s track performance.<br />
The Temerario marks a significant<br />
step in Lamborghini’s Direzione Cor<br />
Tauri plan, which aims to fully hybridize<br />
its product line while developing<br />
a fully electric model set to debut in<br />
2028. With the introduction of the Temerario,<br />
Lamborghini continues to push<br />
the boundaries of what a super sports<br />
car can achieve, blending extraordinary<br />
performance with cutting-edge technology<br />
and design. Pricing details are yet<br />
to be announced, but the Temerario is<br />
expected to start around $290,000, with<br />
sales beginning in early 2025.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 61
Opinion<br />
Source: Ai generated<br />
How Digital<br />
Transformation is<br />
Powering Sustainable<br />
Business Models in the<br />
New Arab <strong>World</strong><br />
Digital transformation is redefining<br />
sustainability by driving innovative business<br />
models and fostering a greener future.<br />
The rapid pace of digital transformation is<br />
reshaping the global business landscape,<br />
enabling companies to develop and implement<br />
sustainable business models that<br />
align with the demands of the 21st century.<br />
In the context of the Middle East, particularly<br />
the UAE, digital transformation is<br />
not just a trend but a strategic imperative<br />
that is driving innovation, investment, and<br />
sustainable development across various<br />
sectors. The UAE’s commitment to becoming<br />
a global leader in digital innovation<br />
is evident through its strategic initiatives<br />
and investments in cutting-edge technologies.<br />
The country’s Vision 2021 and the<br />
UAE Centennial 2071 plan highlight the<br />
role of digital transformation in achieving<br />
economic diversification and enhancing<br />
the quality of life for its residents.<br />
62 www.thefinanceworld.com Sep <strong>2024</strong>
Globally, digital transformation<br />
is revolutionizing industries by<br />
integrating advanced technologies<br />
that enhance efficiency, reduce waste,<br />
and promote sustainable practices.<br />
Companies are leveraging artificial<br />
intelligence, blockchain, and big data<br />
analytics to streamline operations, minimize<br />
environmental impact, and create<br />
value for stakeholders.<br />
An example of this is AI-powered<br />
systems, which can optimize energy<br />
consumption in manufacturing. At the<br />
same time, blockchain technology ensures<br />
improved transparency and traceability<br />
in supply chains, thus reducing the risk<br />
of unethical practices.<br />
The financial sector is also experiencing<br />
a paradigm shift as fintech innovations<br />
enable more sustainable investment<br />
strategies. Especially when using digital<br />
platforms, investors can access real-time<br />
data and make far more informed decisions<br />
that prioritize long-term sustainability<br />
over short-term gains.<br />
Not to mention the rise of green<br />
fintech solutions, like digital platforms<br />
that facilitate investments in renewable<br />
energy projects, also contributes to the<br />
growth of sustainable finance.<br />
Embracing digital transformation<br />
for sustainability<br />
In the Middle East, the transition towards<br />
digital transformation is becoming clearer<br />
by the project. The UAE has been at the<br />
forefront of this digital revolution––driving<br />
initiatives that integrate technology with<br />
sustainable development goals.<br />
The UAE’s Vision 2031 and the National<br />
Innovation Strategy are inspiring examples<br />
of how the nation is prioritizing digital<br />
transformation as a means to achieve<br />
sustainable economic growth.<br />
The Middle East is witnessing a surge<br />
in innovative investment strategies<br />
fueled by digital transformation. Companies<br />
in the region are adopting many<br />
new approaches with a heavy focus on<br />
sustainability, while also leveraging<br />
digital tools to identify and capitalize on<br />
emerging market opportunities.<br />
An example is the integration of AI and<br />
machine learning in investment analysis,<br />
enabling firms to predict market trends<br />
and make more sustainable investment<br />
decisions.<br />
Moreover, fintech innovations are<br />
playing a pivotal role in democratizing<br />
investment opportunities, allowing a<br />
broader range of investors to participate<br />
in sustainable projects. This is particularly<br />
evident in the UAE, where fintech<br />
platforms are investing in sectors like<br />
renewable energy, sustainable agriculture,<br />
and smart infrastructure, which all<br />
align with the nation’s mid and long-term<br />
sustainability goals.<br />
Marwa Al Mansoori, VP of Government<br />
Relation and Business Development<br />
at Siemens AG, Board Member at<br />
Abu Dhabi Chamber of Commerce and<br />
Industry<br />
The adoption of smart technologies is<br />
also transforming urban environments<br />
across the Middle East. In cities like Dubai<br />
and Abu Dhabi, digital solutions such as<br />
smart grids, IoT-enabled infrastructure,<br />
and data analytics are being employed<br />
to enhance urban living standards while<br />
minimizing environmental impact. These<br />
technologies enable efficient energy<br />
usage, improved waste management,<br />
and enhanced transportation systems,<br />
contributing to the creation of sustainable<br />
and resilient cities. For example, smart<br />
energy management systems optimize<br />
power consumption in real-time, significantly<br />
reducing the carbon footprint of<br />
urban areas.<br />
Additionally, digital transformation<br />
is fostering collaboration between governments,<br />
businesses, and academia in<br />
the region. Strategic partnerships and<br />
joint ventures are advancing innovative<br />
technologies to tackle sustainability<br />
challenges. Research hubs and innovation<br />
labs are uniting stakeholders to explore<br />
and implement solutions that support the<br />
region’s sustainability goals. This approach<br />
accelerates technological progress while<br />
aligning digital transformation with environmental<br />
and social objectives. The<br />
Middle East is thus exemplifying how<br />
integrated, technology-driven strategies<br />
can drive sustainable development.<br />
Technology and Fintech are the<br />
backbone of sustainable development<br />
In the Middle East, technology and fintech<br />
are leading sustainable development by<br />
improving investment efficiency and<br />
effectiveness. Blockchain technology is<br />
creating transparent, secure platforms<br />
for real estate transactions, aligning investments<br />
with sustainability principles.<br />
Digital banking and wealth management<br />
platforms in the UAE are transforming<br />
wealth management, making financial<br />
services more accessible and promoting<br />
responsible investment practices<br />
focused on environmental, social, and<br />
governance criteria.<br />
Real Estate and sustainable development<br />
in the UAE<br />
The UAE’s real estate sector is a prime<br />
example of how digital transformation is<br />
powering sustainable business models.<br />
The integration of smart technology and<br />
sustainability in real estate investments<br />
creates more efficient and environmentally<br />
friendly buildings. From energy-efficient<br />
skyscrapers in Dubai to smart cities<br />
that utilize IoT technology, the UAE<br />
is setting a benchmark for sustainable<br />
urban development.<br />
These advancements are not only enhancing<br />
the quality of life for residents but<br />
are also attracting global investors who<br />
are increasingly looking for sustainable<br />
investment opportunities. The UAE’s<br />
commitment to sustainable development<br />
(also supported by its robust digital infrastructure)<br />
positions the country as a<br />
global leader in sustainable real estate.<br />
Digital transformation is a powerful<br />
catalyst for creating sustainable business<br />
models, particularly in the Middle East.<br />
The UAE’s strategic focus on integrating<br />
technology with sustainable practices<br />
is driving innovation across multiple<br />
sectors, from finance and real estate to<br />
wealth management and beyond.<br />
As the region continues to embrace<br />
digital transformation, it is perfectly<br />
positioned to set the gold standard in<br />
sustainability and economic growth,<br />
offering valuable lessons for the global<br />
business community.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 63
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Funding & Investment<br />
Source: freepik.com<br />
How Sovereign Wealth<br />
Funds Are Shaping<br />
Innovation in the Arab<br />
<strong>World</strong><br />
Arab sovereign wealth funds driving futurefocused<br />
investments to revolutionize the<br />
regional economy.<br />
Sovereign Wealth Funds (SWFs) in the<br />
Arab world have become pivotal in shaping<br />
the region’s economic future. Once<br />
primarily focused on managing excess<br />
oil revenues, these funds are now driving<br />
innovation, diversification, and long-term<br />
growth across various sectors. By investing<br />
in technology, renewable energy, and<br />
other high-growth industries, SWFs are<br />
actively reducing the region’s dependence<br />
on oil and fostering sustainable economic<br />
development. This article explores the<br />
crucial role Arab SWFs play in promoting<br />
innovation and diversification, highlighting<br />
key investments, strategic partnerships,<br />
and innovative strategies that are transforming<br />
the region’s economy and paving<br />
the way for a more resilient and diverse<br />
economic landscape.<br />
66 www.thefinanceworld.com Sep <strong>2024</strong>
In the face of fluctuating oil prices<br />
and the global shift towards renewable<br />
energy, Arab countries have<br />
recognized the need to diversify their<br />
economies. Sovereign Wealth Funds,<br />
such as the UAE’s Mubadala Investment<br />
Company and Saudi Arabia’s Public Investment<br />
Fund (PIF), are at the forefront<br />
of this transformation. These funds are<br />
channeling substantial investments into<br />
sectors like healthcare, technology, and<br />
infrastructure, creating new revenue<br />
streams and reducing reliance on oil<br />
exports. By strategically deploying their<br />
capital, SWFs are enabling the Arab world<br />
to transition towards a more resilient and<br />
diversified economic model.<br />
Driving Innovation Through Strategic<br />
Investments<br />
Innovation is a central focus for Arab<br />
Sovereign Wealth Funds (SWFs) as they<br />
aim to position their countries as leaders<br />
in the global knowledge economy. Funds<br />
such as the Qatar Investment Authority<br />
(QIA) and the Kuwait Investment Authority<br />
(KIA) exemplify this trend by making<br />
substantial investments in technology<br />
startups, artificial intelligence, and digital<br />
transformation initiatives. These strategic<br />
investments are not only bolstering<br />
the technological infrastructure of the<br />
region but are also playing a critical role<br />
in attracting global talent and fostering<br />
a vibrant culture of innovation.<br />
By channeling resources into cutting-edge<br />
technologies and pioneering<br />
business models, Arab SWFs are driving<br />
modernization efforts across various<br />
sectors. Their support helps accelerate<br />
technological advancements, promotes<br />
research and development, and nurtures<br />
a dynamic entrepreneurial ecosystem.<br />
This approach is essential for preparing<br />
Arab economies for future challenges<br />
and opportunities, ensuring they remain<br />
competitive on the global stage.<br />
As these funds continue to back innovative<br />
ventures and transformative<br />
technologies, they are solidifying their<br />
role as key players in shaping the future<br />
economic landscape of the Arab world,<br />
contributing to long-term growth and<br />
resilience.<br />
Promoting Renewable Energy and<br />
Sustainable Development<br />
Arab SWFs are increasingly aligning<br />
their investment strategies with global<br />
sustainability goals. The UAE’s Masdar,<br />
owned by Mubadala, and Saudi Arabia’s<br />
PIF are leading the charge in renewable<br />
energy investments. These funds are<br />
financing large-scale solar and wind<br />
projects, both within the region and internationally,<br />
to meet the growing demand<br />
for clean energy. Additionally, SWFs are<br />
supporting research and development in<br />
sustainable technologies, positioning the<br />
Arab world as a key player in the global<br />
green economy. These efforts are critical<br />
for achieving long-term sustainability<br />
and reducing the carbon footprint of<br />
the region.<br />
Supporting Entrepreneurship and<br />
the Startup Ecosystem<br />
Sovereign Wealth Funds (SWFs) in the<br />
Arab world are playing a crucial role in<br />
nurturing the startup ecosystem. Through<br />
direct investments and dedicated venture<br />
capital arms, such as Mubadala Ventures<br />
and the PIF’s Jada Fund of Funds, SWFs<br />
are providing essential funding and resources<br />
to startups across a wide range<br />
of sectors. This investment is pivotal in<br />
fostering entrepreneurship, creating job<br />
opportunities, and stimulating economic<br />
growth.<br />
By supporting innovative startups, SWFs<br />
are not only driving the development of<br />
new industries but also contributing to the<br />
diversification of the regional economy.<br />
Their involvement helps to cultivate a<br />
vibrant entrepreneurial landscape and<br />
accelerate the growth of emerging sectors.<br />
The collaboration between SWFs<br />
and startups is fostering a dynamic and<br />
competitive business environment,<br />
enhancing the region’s attractiveness<br />
as a hub for innovation and investment.<br />
Global Influence and Strategic<br />
Partnerships<br />
The influence of Arab SWFs extends<br />
beyond regional borders, as they form<br />
strategic partnerships and make significant<br />
investments in global markets.<br />
The investments made by these funds<br />
in international technology firms, infrastructure<br />
projects, and real estate not<br />
only provide financial returns but also<br />
bring cutting-edge innovations back to<br />
the region. For example, the Saudi PIF’s<br />
investment in companies like Lucid Motors<br />
and Uber has bolstered the region’s<br />
technological capabilities. These global<br />
partnerships are enabling Arab SWFs<br />
to leverage international expertise and<br />
accelerate the pace of innovation and<br />
diversification in their home countries.<br />
Challenges and Future Outlook<br />
While Sovereign Wealth Funds (SWFs) are<br />
playing a transformative role in the Arab<br />
world, they encounter several challenges.<br />
Ensuring transparency and effective<br />
governance is crucial for maintaining the<br />
credibility and sustainability of these<br />
investments. Additionally, robust risk<br />
management practices are essential to<br />
navigate the complexities and uncertainties<br />
associated with venture investments.<br />
As global markets become increasingly<br />
competitive, SWFs must continuously<br />
adapt their strategies to retain their<br />
influence and drive innovation. This requires<br />
staying abreast of market trends,<br />
incorporating emerging technologies,<br />
and adjusting investment approaches to<br />
address evolving economic conditions.<br />
Despite these challenges, the future for<br />
Arab SWFs appears promising. There are<br />
ongoing efforts to enhance their impact<br />
on economic diversification and innovation,<br />
which are critical for sustaining<br />
growth and stability in the region. As<br />
these funds continue to evolve and refine<br />
their strategies, they are expected<br />
to remain pivotal in driving economic<br />
development and fostering a dynamic<br />
business environment in the Arab world.<br />
Sovereign Wealth Funds in the Arab<br />
world are playing an increasingly important<br />
role in driving innovation and<br />
economic diversification. By investing in<br />
emerging technologies, renewable energy,<br />
and startups, these funds are helping to<br />
reshape the region’s economy and reduce<br />
its reliance on oil. As they continue to<br />
adapt to the changing global landscape,<br />
Arab SWFs will remain central to the region’s<br />
economic development, fostering<br />
sustainable growth and positioning the<br />
Arab world as a leader in innovation.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 67
Funding & Investment News<br />
Saudi Yalla Plus<br />
secures $2.66M in<br />
funding round<br />
Saudi-based Yalla Plus has raised<br />
SAR 10M ($2.70M) in seed funding,<br />
led by Merak Capital and supported<br />
by Khwarizmi Ventures, Isometry<br />
Capital, and angel investors from the<br />
Middle East and the US. Founded in<br />
2022 by Abdullah Alrabeh and Bader<br />
Alnasser, Yalla Plus offers a comprehensive<br />
point-of-sale (POS) system,<br />
encompassing payment management,<br />
customer feedback, and delivery solutions.<br />
Currently serving thousands of<br />
entrepreneurs across 11 countries, the<br />
company aims to expand to 100,000<br />
entrepreneurs in 50 countries, including<br />
the Middle East, Europe, and Southeast<br />
Asia. CEO Abdullah Alrabeh highlighted<br />
ambitious plans for developing software<br />
to support global business growth, with<br />
Merak Capital praising their flexible,<br />
reliable system.<br />
Saudi MEPCO to<br />
Launch $91.94M<br />
Project with PIF<br />
Support<br />
The board of Middle East Paper<br />
Company (MEPCO) has sanctioned<br />
an investment of SAR 345M for<br />
the Tissue Paper Production Line 6<br />
(TM6) project. This initiative aims to<br />
enhance the Juthor factory’s production<br />
capacity in King Abdullah Economic<br />
City (KAEC) by 60,000 tonnes, raising<br />
its total output to 120,000 tonnes to<br />
cater to both local and international<br />
markets. Scheduled for completion<br />
within 24 months, the project is expected<br />
to positively impact MEPCO’s results<br />
following the start of commercial operations<br />
in Q4 2026. Aligned with Saudi<br />
Vision 2030, it will support the growth<br />
of the Saudi economy and be financed<br />
through government institutions, bank<br />
loans, and recent investments from the<br />
Public Investment Fund (PIF). Rob Jan<br />
Renders, Acting President of MEPCO<br />
Group, emphasised the company’s<br />
commitment to advancing production<br />
capabilities and meeting customer needs.<br />
Additionally, MEPCO’s net losses for<br />
H1 <strong>2024</strong> decreased by 48.93% to SAR<br />
15.24M from SAR 29.86M year-on-year.<br />
DMCC Concludes US Roadshows to Boost<br />
UAE-US Trade<br />
DMCC, the leading free zone and<br />
Dubai Government Authority on<br />
commodities trade, has wrapped<br />
up its second Made for Trade Live<br />
roadshow in the US this year, visiting<br />
San Francisco and Denver. The initiative<br />
aims to expand UAE-US trade<br />
and investment by showcasing Dubai’s<br />
business-friendly environment, top-tier<br />
infrastructure, and opportunities for<br />
American firms. With nearly 700 US<br />
companies based in DMCC—over<br />
45% of the American businesses in the<br />
UAE—DMCC highlights Dubai’s role as a<br />
hub for US foreign direct investment in<br />
the Middle East. Bilateral non-oil trade<br />
reached a record USD 31.4 billion in<br />
2023. DMCC’s roadshows, supported by<br />
local chambers of commerce and trade<br />
organisations, reinforce Dubai’s appeal<br />
and drive FDI, with DMCC contributing<br />
15% to Dubai’s annual FDI and hosting<br />
over 24,000 global businesses.<br />
Dubai Investments Launches 1.2MW Solar<br />
Plant in DIP<br />
Dubai Investments Real Estate<br />
(DIR) and Al Mujama, in collaboration<br />
with Yellow Door Energy<br />
and Clyde Engineering, have launched<br />
a 1.2-megawatt solar power plant in the<br />
RITAJ residential community within<br />
Dubai Investments Park. Covering nine<br />
buildings with over 2,000 panels, the<br />
system is expected to generate 1.9 million<br />
kilowatt-hours of clean electricity<br />
annually, meeting 30% of the buildings’<br />
energy needs and reducing carbon<br />
emissions by 756,000 kilograms per<br />
year. Implemented under a solar lease<br />
model, the project enables Al Mujama<br />
to save costs without upfront investment.<br />
Mohammed Bin Hammad from<br />
Dubai Land Department highlighted its<br />
sustainability role, while Obaid Salami,<br />
General Manager of DIR, praised it as a<br />
benchmark for eco-friendly residential<br />
living. for eco-friendly residential living.<br />
O2 Group Transforms UAE Real Estate and<br />
Financial Sectors<br />
O2 Group, a leading entity in the<br />
UAE’s real estate and financial<br />
advisory sectors, excels<br />
in serving affluent individuals and<br />
foreign investors, solidifying its role<br />
as a key contributor to the region’s<br />
economy. Renowned for managing<br />
foreign investment flows, O2 Group<br />
offers tailored, all-in-one solutions<br />
that streamline market entry. The<br />
company distinguishes itself by providing<br />
integrated services, ensuring<br />
a seamless experience for investors.<br />
Beyond real estate and banking, O2<br />
Group simplifies business operations<br />
and residency. It supports startups,<br />
small businesses, and international<br />
corporations, offering initial free consultations<br />
to build transparent partnerships.<br />
More than a service provider, O2<br />
Group is a strategic partner, guiding<br />
clients through the UAE’s economic<br />
landscape. With nearly three decades<br />
of experience, founders Asif Zaidi and<br />
Atif Sarwar Qureshi embed trust into<br />
their services, ensuring expert support<br />
in the dynamic UAE market.<br />
68 www.thefinanceworld.com Sep <strong>2024</strong>
UAE Fintech Mamo Raises $3.4M in Funding<br />
Mamo, a prominent fintech<br />
startup based in the UAE,<br />
has successfully concluded a<br />
significant $3.4M funding round. This<br />
new influx of capital is set to drive the<br />
expansion of the company’s product offerings<br />
and bolster its market presence.<br />
The funding round was spearheaded<br />
by 4DX Ventures and the Dubai Future<br />
District Fund, with notable participation<br />
from Cyfr Capital. Mamo intends<br />
to utilise this investment to enhance<br />
its comprehensive financial services<br />
platform, aiming to address the more<br />
complex finance operations needs of<br />
small and medium-sized enterprises<br />
(SMEs) within the UAE. Additionally,<br />
the funds will support the testing of<br />
innovative product lines in Saudi Arabia,<br />
further extending the company’s<br />
regional footprint. Imad Gharazeddine,<br />
Co-founder and CEO of Mamo, highlighted<br />
that the company’s vision to<br />
simplify payments for SMEs and equip<br />
them with essential tools for success<br />
is being realised through this funding.<br />
E Daddy Secures $15M to Boost UAE EV<br />
Production<br />
Dubai-based E Daddy, a startup<br />
in sustainable urban mobility,<br />
has announced securing $15M<br />
in investment. This funding will enable<br />
the company to spearhead the electrification<br />
of transport in the UAE and<br />
beyond. Founder and CEO Mansoor<br />
Ali Khan Abdul Buhari highlighted<br />
the firm’s dedication to advancing<br />
eco-friendly vehicles and its milestone<br />
as the first to manufacture vehicles endto-end<br />
in Dubai. Co-Founder and COO<br />
Yasmeen Jawahar Ali emphasised that<br />
this investment brings their vision of<br />
accessible, efficient, and eco-friendly<br />
transportation closer to reality. E Daddy’s<br />
state-of-the-art facilities in Dubai<br />
Zoth Raises $4M for DeFi in UAE<br />
Zoth, a DeFi yield infrastructure<br />
company based in Singapore<br />
with operations in the UAE, has<br />
secured $4 million in funding. This<br />
capital will be used to launch its innovative<br />
Tokenised Liquid Note, which<br />
features secure, low-risk assets such<br />
Industrial City and National Industries<br />
Park represent a key development in<br />
the UAE’s green mobility sector. The<br />
company plans to launch an electric<br />
motorcycle in Q1 2025, which aims to<br />
cut 0.6 million tons of carbon emissions<br />
annually and align with Dubai’s clean<br />
environment goals.<br />
as US Treasury Bills and top-rated<br />
corporate bonds from leading global<br />
financial institutions. The $100 million<br />
Zoth Tokenised Liquid Note ($ZTLN)<br />
invests in high-quality, short-term<br />
instruments to provide institutions<br />
and qualified investors with stable,<br />
secure yields without a lock-in period.<br />
The initiative will offer transparency<br />
through weekly NAV updates, detailed<br />
disclosures, and live proof of reserves<br />
on Chainlink, along with 24/7 liquidity<br />
via licensed brokers and custodians.<br />
This move is a significant step in Zoth’s<br />
goal to integrate permissioned Real<br />
<strong>World</strong> Assets with permissionless<br />
DeFi fixed-yield products. The funding<br />
round saw investment from notable<br />
entities like Taisu Ventures, G20, Fat<br />
Cat Ventures, and others, with additional<br />
support from financial and<br />
crypto experts.<br />
UAE FinTech Yuze<br />
Raises $30m for Global<br />
Expansion<br />
Yuze, a Dubai-based Fintech specialising<br />
in services for Small<br />
and Medium-sized Enterprises<br />
(SMEs), has secured $30 million in<br />
funding led by Osten Investments. This<br />
recent round aims to support Yuze’s<br />
expansion and the development of new<br />
offerings for SMEs, e-traders, and freelancers.<br />
Yuze operates a digital platform<br />
that simplifies financial management for<br />
SMEs and independent professionals<br />
by partnering with banks and financial<br />
institutions to provide business<br />
accounts and card programmes. This<br />
approach helps users manage their<br />
finances efficiently, allowing them to<br />
focus on their core activities. The new<br />
funds will help Yuze expand beyond<br />
the UAE, targeting one million SME<br />
and professional customers over the<br />
next five years. CEO Rabih Sfeir expressed<br />
optimism about the funding,<br />
emphasising its role in advancing the<br />
company’s mission and capabilities.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 69
Healthcare<br />
Source: Ai generated<br />
Digital Health<br />
Revolution: Investing in<br />
the Future of Healthcare<br />
in the New Arab <strong>World</strong><br />
Pioneering tomorrow’s<br />
healthcare by investing in digital<br />
health revolution.<br />
The Arab world is at the forefront of a<br />
digital health revolution, where advanced<br />
technology is transforming healthcare<br />
delivery, accessibility, and quality. From<br />
telemedicine to artificial intelligence<br />
(AI)-driven diagnostics, digital health<br />
is not only improving patient outcomes<br />
but also creating new opportunities for<br />
investment and innovation. As governments<br />
and private sectors in the Arab<br />
world recognize the potential of digital<br />
health, significant investments are being<br />
made to modernize healthcare infrastructure<br />
and introduce innovative solutions.<br />
This article explores the impact of digital<br />
health on the region, the key areas of<br />
investment, and the future of healthcare<br />
in the rapidly evolving Arab world.<br />
70 www.thefinanceworld.com Sep <strong>2024</strong>
Telemedicine has emerged as a critical<br />
component of the digital health<br />
revolution, especially in the wake<br />
of the COVID-19 pandemic. The demand<br />
for remote healthcare services has skyrocketed,<br />
leading to the rapid adoption of<br />
telemedicine platforms across the Arab<br />
world. Countries like the UAE and Saudi<br />
Arabia have been at the forefront of this<br />
shift, implementing national telemedicine<br />
programs that allow patients to consult<br />
with healthcare providers from the comfort<br />
of their homes. For example, the<br />
UAE’s Ministry of Health and Prevention<br />
(MoHAP) launched the Virtual Doctor for<br />
COVID-19 service, enabling citizens to<br />
receive medical advice without visiting<br />
hospitals. This shift not only improves<br />
access to healthcare but also reduces the<br />
strain on healthcare facilities.<br />
Artificial Intelligence in Diagnostics<br />
and Treatment<br />
Artificial Intelligence (AI) is playing an<br />
increasingly significant role in revolutionizing<br />
healthcare in the Arab world.<br />
AI-powered tools are being used to<br />
enhance diagnostics, predict patient<br />
outcomes, and personalize treatment<br />
plans. In Saudi Arabia, the King Faisal<br />
Specialist Hospital and Research Centre<br />
has integrated AI into its radiology<br />
department, enabling faster and more<br />
accurate diagnosis of conditions such as<br />
cancer and cardiovascular diseases. AI’s<br />
ability to analyze vast amounts of medical<br />
data in real-time is transforming the way<br />
healthcare providers diagnose and treat<br />
patients, leading to better outcomes and<br />
more efficient use of resources.<br />
Investment in Healthtech Startups<br />
The Arab world is witnessing a surge<br />
in investments in healthtech startups,<br />
as investors recognize the potential of<br />
digital health technologies to disrupt<br />
traditional healthcare models. Venture<br />
capital firms and government-backed<br />
funds are pouring resources into startups<br />
that offer innovative solutions, such as<br />
AI-driven diagnostics, telemedicine platforms,<br />
and wearable health devices. The<br />
Dubai Future Foundation, for instance,<br />
has been instrumental in supporting<br />
healthtech innovation through its Dubai<br />
Future Accelerators program, which connects<br />
startups with government entities<br />
to pilot their solutions. This investment<br />
ecosystem is fostering a new generation<br />
of healthtech companies that are set<br />
to transform the region’s healthcare<br />
landscape.<br />
Smart Hospitals and Digital Infrastructure<br />
The concept of smart hospitals is gaining<br />
traction in the Arab world, driven by the<br />
need to enhance healthcare delivery<br />
and improve patient experiences. Smart<br />
hospitals leverage digital technologies<br />
such as Internet of Things (IoT), AI, and<br />
big data analytics to optimize hospital<br />
operations, monitor patient health in<br />
real-time, and provide personalized care.<br />
The Cleveland Clinic Abu Dhabi is a<br />
prime example of a smart hospital in the<br />
region, equipped with advanced digital<br />
systems that enable seamless communication<br />
between healthcare providers<br />
and patients. The integration of digital<br />
infrastructure in healthcare facilities is<br />
not only improving operational efficiency<br />
but also setting new standards for patient<br />
care in the Arab world.<br />
The Role of Government in Driving<br />
Digital Health<br />
Governments across the Arab world are<br />
playing a pivotal role in driving the digital<br />
health revolution by implementing policies<br />
and regulations that encourage the<br />
adoption of digital health technologies.<br />
In Saudi Arabia, the Ministry of Health<br />
has launched the “Seha” platform, a national<br />
telemedicine service that connects<br />
patients with healthcare providers across<br />
the kingdom. Similarly, the UAE has<br />
introduced the “Dubai Health Strategy<br />
2021,” which outlines the government’s<br />
vision to create a world-class healthcare<br />
system powered by digital innovation.<br />
These initiatives are not only improving<br />
healthcare accessibility but also<br />
positioning the Arab world as a leader<br />
in digital health.<br />
Digital Health and Public<br />
Health Initiatives<br />
Digital health technologies are also playing<br />
a crucial role in advancing public health<br />
initiatives across the Arab world. For<br />
instance, AI and big data analytics are<br />
being used to monitor and predict the<br />
spread of infectious diseases, allowing<br />
governments to implement timely interventions.<br />
The UAE’s National Health<br />
Surveillance System (NHSS) is an example<br />
of how digital tools are being used to<br />
track public health trends and manage<br />
outbreaks. By integrating digital health<br />
into public health strategies, Arab countries<br />
are better equipped to respond to<br />
health crises and protect the well-being<br />
of their populations.<br />
The Future of Digital Health in the<br />
Arab <strong>World</strong><br />
The future of digital health in the Arab<br />
world is promising, with ongoing investments<br />
in technology, infrastructure, and<br />
human capital. As the region continues<br />
to embrace digital health, we can expect<br />
to see further advancements in AI,<br />
telemedicine, and health data analytics.<br />
Additionally, the integration of blockchain<br />
technology in healthcare is likely to<br />
emerge as a new frontier, offering secure<br />
and transparent management of patient<br />
data. With continued government support<br />
and a thriving healthtech ecosystem, the<br />
Arab world is well-positioned to lead the<br />
global digital health revolution.<br />
Challenges and Opportunities<br />
While the digital health revolution offers<br />
immense potential, it also presents challenges<br />
that need to be addressed. Privacy<br />
and data security are major concerns, as<br />
the digitization of healthcare increases<br />
the risk of cyberattacks. Governments<br />
and healthcare providers must invest in<br />
robust cybersecurity measures to protect<br />
sensitive patient information. Additionally,<br />
there is a need for continuous training<br />
and education of healthcare professionals<br />
to ensure they are equipped to utilize<br />
digital tools effectively. Despite these<br />
challenges, the opportunities presented<br />
by digital health far outweigh the risks,<br />
making it a critical area of focus for the<br />
future of healthcare in the Arab world.<br />
The digital health revolution is transforming<br />
the future of healthcare in the<br />
Arab world, driven by investments in<br />
telemedicine, AI, smart hospitals, and<br />
healthtech startups. As governments and<br />
private sectors continue to embrace digital<br />
innovation, the region is set to become<br />
a global leader in healthcare delivery.<br />
By addressing challenges such as data<br />
security and professional training, the<br />
Arab world can fully realize the potential<br />
of digital health, improving patient<br />
outcomes and ensuring a healthier future<br />
for its populations.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 71
Healthcare News<br />
Cleveland Clinic Abu<br />
Dhabi performs UAE’s<br />
first SEEG procedure<br />
for Epilepsy<br />
Cleveland Clinic Abu Dhabi, part<br />
of the M42 group, has successfully<br />
performed the UAE’s first<br />
stereoelectroencephalography (SEEG)<br />
procedure. This minimally invasive<br />
technique identifies the origins of difficult-to-treat<br />
focal epileptic seizures<br />
within the brain. Epilepsy, affecting<br />
millions worldwide, involves recurrent<br />
seizures due to abnormal electrical<br />
brain activity. WHO estimates 5 million<br />
new cases yearly, with active cases<br />
between 4 and 10 per 1,000 people.<br />
While medication controls epilepsy in<br />
up to 70% of cases, SEEG is crucial for<br />
the remaining 30% who need precise<br />
seizure localization. The pioneering<br />
procedure on an Emirati patient involved<br />
implanting thin electrodes in<br />
the brain to reach inaccessible areas.<br />
Led by Dr. Florian Roser, the surgery<br />
utilised advanced imaging software<br />
to ensure safe and effective electrode<br />
placement.<br />
Reem Hospital Set to<br />
Open Reem Diabetes &<br />
Endocrinology Centre<br />
Reem Hospital is pleased to announce<br />
the upcoming launch<br />
of the ‘Reem Diabetes & Endocrinology<br />
Centre,’ spearheaded by Dr.<br />
Mohammed Al Khatib, a highly respected<br />
endocrinologist in Abu Dhabi. Dr. Al<br />
Khatib will collaborate with Dr. Aly B.<br />
Khalil, Consultant Endocrinologist &<br />
Thyroidologist, and Dr. Wehbi Omar<br />
Enzawi, Specialist Endocrinologist,<br />
bringing together over 65 years of collective<br />
expertise. This multidisciplinary<br />
team is poised to deliver exceptional<br />
patient care, furthering Reem Hospital’s<br />
dedication to excellence in healthcare.<br />
The new centre will offer cutting-edge<br />
diabetes and endocrinology services,<br />
solidifying the hospital’s commitment<br />
to providing world-class medical care<br />
in the UAE. This launch represents<br />
a significant milestone in expanding<br />
Reem Hospital’s specialised services,<br />
now covering more than 35 medical<br />
specialties.<br />
Qatar Making Great Strides Towards Building<br />
<strong>World</strong>-Class Healthcare System: GCO<br />
Qatar is making significant progress<br />
towards establishing a<br />
world-class healthcare system,<br />
in alignment with Qatar National Vision<br />
(QNV) 2030. The nation’s accomplishments<br />
in healthcare underscore its<br />
strategic dedication to excellence and<br />
innovation. In a social media post on<br />
X platform, the Government Communications<br />
Office (GCO) highlighted<br />
Qatar’s commitment to advancing its<br />
healthcare sector through substantial<br />
investments and the development of<br />
medical infrastructure. This approach<br />
ensures comprehensive and sustainable<br />
patient care. The GCO noted that Qatar<br />
has consistently ranked among the top<br />
20 globally by the Numbeo Healthcare<br />
Index for four consecutive years and<br />
is the first country globally where all<br />
municipalities have been recognised<br />
as <strong>World</strong> Health Organization Healthy<br />
Cities. Qatar’s healthcare system is not<br />
only about medical services but also<br />
fostering a thriving society where every<br />
individual enjoys a high quality of life.<br />
Landmark Cardiac Successes at Saudi German<br />
Hospital, Dammam<br />
The CardioScience Department at<br />
Saudi German Hospital (SGH)<br />
Dammam has achieved significant<br />
milestones in advanced cardiac<br />
procedures. Since the launch of the<br />
service in early <strong>2024</strong>, the department<br />
successfully completed a Transcatheter<br />
Aortic Valve Implantation (TAVI). It<br />
also accomplished an Ampella-guided<br />
high-risk percutaneous coronary intervention<br />
(PCI) and initiated successful<br />
cryoablations for atrial fibrillation.<br />
These successes were realised under<br />
the expert leadership of Dr. Mohamed<br />
Shahtout, Dr. Hamed Al Ghamdi, and<br />
Dr. Rami Abu Raad, who have been<br />
instrumental in driving these advancements.<br />
They expressed their gratitude<br />
to the cardiology team and higher<br />
administration for their dedication<br />
and support. These achievements<br />
highlight the department’s commitment<br />
to advancing cardiac care, improving<br />
patient outcomes, and delivering compassionate,<br />
high-quality care through<br />
innovation and collaboration.<br />
Saudi, Moroccan Ministers Sign Health<br />
Cooperation Deal<br />
Saudi Minister of Health Fahad<br />
Al-Jalajel met with Moroccan<br />
Minister of Health and Social<br />
Protection Khalid Ait Taleb during an<br />
official visit to Rabat, with discussions<br />
centred on enhancing bilateral health<br />
cooperation. Accompanied by Saudi<br />
Ambassador to Morocco Dr. Sami<br />
Alsaleh and an official delegation, the<br />
meeting underscored the importance<br />
of coordination within broader Arab<br />
efforts to improve global health. The<br />
ministers signed a memorandum of<br />
understanding (MoU) to strengthen<br />
health partnerships between Saudi<br />
Arabia and Morocco, focusing on<br />
therapeutic and preventive medicine,<br />
digital health, and pandemic management.<br />
The MoU aims to improve health<br />
services, support health transformation,<br />
and encourage the exchange of<br />
expertise. Al-Jalajel noted that this<br />
visit reflects the deep historical ties<br />
between the two nations and is part<br />
of broader Arab collaborative efforts<br />
in health.<br />
72 www.thefinanceworld.com Sep <strong>2024</strong>
Thumbay Group Targets Fivefold Growth on 26th UAE Anniversary<br />
Celebrating a significant milestone,<br />
Thumbay Group marks 26 years<br />
of successful business operations<br />
in the UAE this August <strong>2024</strong>. Founded<br />
by Dr. Thumbay Moideen in 1997, the<br />
group has become a key player in the<br />
UAE’s healthcare and medical education<br />
sectors, with Gulf Medical University as<br />
its flagship institution. Over the years,<br />
Thumbay Group has expanded into<br />
diverse industries through relentless<br />
innovation, quality excellence, and a<br />
commitment to community welfare.<br />
Dr. Thumbay Moideen, the Founder<br />
President, reflects on this journey as<br />
a testament to the strong India-UAE<br />
ties and the support from the UAE’s<br />
leadership. Thumbay Group operates<br />
over 110 facilities across the Emirates,<br />
including the UAE’s largest private<br />
academic hospital network, serving<br />
11 million patients and training 60% of<br />
the nation’s healthcare professionals<br />
through its acclaimed university.<br />
MoU Signed to Support People of Determination<br />
The Department of Community<br />
Development - Abu Dhabi has<br />
signed a memorandum of understanding<br />
(MoU) with PureHealth,<br />
the Middle East’s largest healthcare<br />
group, to enhance support for people<br />
of determination. This partnership<br />
aims to integrate and empower people<br />
of determination by creating job<br />
opportunities for approximately 100<br />
individuals over the next two years<br />
and developing supportive services and<br />
programmes for them and their families.<br />
Hamad Ali Al Dhaheri, Undersecretary<br />
of the Department of Community Development,<br />
highlighted the importance<br />
of this collaboration in aligning with<br />
the Abu Dhabi Strategy for People of<br />
Determination, launched in 2020. The<br />
MoU represents a significant step in<br />
integrating private sector efforts with<br />
public goals to improve the quality of<br />
life and community care for people of<br />
determination.<br />
WHO Commends UAE for HPV Vaccine Commitment<br />
The <strong>World</strong> Health Organization<br />
(WHO) has commended the UAE<br />
for its progressive approach to<br />
advancing the national immunisation<br />
programme, particularly for incorporating<br />
the HPV vaccine. This accolade<br />
underscores the WHO’s trust in the<br />
UAE’s strong health system, which emphasises<br />
preventive care and provides<br />
integrated, innovative, and sustainable<br />
healthcare solutions. Dr Ahmed Al<br />
Suwaidi, Chairman of the National Immunisation<br />
Technical Advisory Group<br />
(NITAG), Dr Sulaiman Al Hammadi, a<br />
group member, and Dr Laila Al-Jasmi,<br />
Head of the Immunisation Department<br />
at the Ministry, accepted the award<br />
at a ceremony in Cairo hosted by the<br />
WHO Regional Office for the Eastern<br />
Mediterranean. The event also marked<br />
the 50th anniversary of the WHO’s<br />
Essential Programme for Immunisation,<br />
attended by senior officials<br />
and regional representatives. This<br />
recognition highlights the Ministry<br />
of Health and Prevention’s commitment<br />
to continuously improving and<br />
updating the National Immunisation<br />
Programme through regular reviews<br />
by expert committees.<br />
Burjeel Holdings Reports<br />
5.9% Increase in H1 <strong>2024</strong><br />
Net Profit to AED 238M<br />
UAE healthcare leader Burjeel<br />
Holdings has reported a 5.9%<br />
increase in net profit, reaching<br />
AED 238M for the first half of <strong>2024</strong>.<br />
This growth, excluding one-off items<br />
and taxes, was driven by revenue expansion<br />
and a reduction in finance and<br />
amortisation costs, according to the<br />
group. Listed on ADX, Burjeel Holdings<br />
also achieved a notable 10.4% rise in<br />
revenue, which climbed to AED 2.4B<br />
during the same period. Revenue from<br />
outpatient services saw an increase of<br />
AED 137M, while inpatient revenue<br />
grew by AED 82M. Despite facing<br />
higher direct costs due to substantial<br />
investments in oncology, aimed at<br />
addressing future patient demand,<br />
the company managed to bolster its<br />
financial performance in the first half<br />
of the year. This strategic investment<br />
reflects Burjeel Holdings’ commitment<br />
to long-term growth and enhancing its<br />
service offerings.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 73
Digital Assets<br />
Source: freepik.com<br />
The Future of Wealth:<br />
Exploring Digital<br />
Assets in the New<br />
Arab <strong>World</strong><br />
Crypto is the next big thing that will<br />
change the digital landscape of the<br />
UAE region.<br />
The Middle East and Africa (MEA) region<br />
is quickly becoming a global hub for digital<br />
asset innovation, attracting investors,<br />
entrepreneurs, and policymakers alike.<br />
Cryptocurrency, led by Bitcoin, Ethereum,<br />
and other altcoins, is at the forefront of<br />
this transformation, signaling a new era<br />
in the region’s economic trajectory. As the<br />
Arab world embraces these innovations,<br />
the potential impact on wealth, economic<br />
development, and financial inclusion is<br />
significant. Governments in the region are<br />
actively exploring regulatory frameworks<br />
to foster growth while ensuring stability.<br />
The MEA’s proactive approach to digital<br />
assets could set a global standard, making<br />
this a pivotal time for all stakeholders to<br />
engage with this evolving market.<br />
74 www.thefinanceworld.com Sep <strong>2024</strong>
Saudi Arabia’s Vision 2030 has set<br />
an ambitious target for its financial<br />
sector: 70% of transactions to be<br />
non-cash by 2030, whereas the UAE, particularly<br />
Dubai, has positioned itself as a<br />
crypto-friendly hub, attracting blockchain<br />
companies and fostering innovation in<br />
the sector. The Dubai Multi Commodities<br />
Centre (DMCC) launched its Crypto<br />
Centre in 2021, offering a comprehensive<br />
ecosystem for businesses operating in the<br />
cryptocurrency and blockchain sectors.<br />
Similarly, the Abu Dhabi Global Market<br />
(ADGM) has established a robust framework<br />
for digital asset activities, including<br />
guidance on initial coin offerings (ICOs)<br />
and crypto asset exchanges. These regulatory<br />
efforts have created a conducive<br />
environment for digital asset businesses,<br />
attracting both local and international<br />
players to the market.<br />
Bahrain, for instance, has established<br />
itself as another crypto-friendly jurisdiction<br />
in the region. The Central Bank of Bahrain<br />
(CBB) introduced a comprehensive<br />
regulatory framework for crypto assets<br />
in 2019, covering areas such as licensing,<br />
governance, and risk management.<br />
Saudi Arabia, while initially cautious, has<br />
been exploring blockchain technology<br />
and its applications. The Saudi Arabian<br />
Monetary Authority (SAMA) has been<br />
conducting experiments with distributed<br />
ledger technology and considering its<br />
potential for cross-border payments.<br />
Gulf governments have demonstrated<br />
their commitment to fostering innovation<br />
in the digital asset space through<br />
various initiatives. The UAE launched<br />
its Blockchain Strategy 2021 in 2018,<br />
aiming to transform 50% of government<br />
transactions to blockchain-based systems<br />
by 2021, enhancing efficiency and<br />
reducing operational costs. Saudi Vision<br />
2030, while not specifically focused on<br />
digital assets, includes goals for digital<br />
transformation that could pave the way<br />
for broader adoption of blockchain and<br />
cryptocurrency technologies.<br />
Bahrain FinTech Bay, launched in 2018,<br />
aims to position Bahrain as a regional<br />
fintech hub, including support for blockchain<br />
and cryptocurrency startups. The<br />
Qatar Financial Centre (QFC) has been<br />
actively exploring ways to regulate and<br />
integrate digital assets into its financial<br />
ecosystem. Meanwhile, the Sultanate of<br />
Oman has been exploring blockchain applications<br />
in areas such as trade finance<br />
and supply chain management.<br />
The digital asset market in the Gulf<br />
region has witnessed substantial growth<br />
in recent years. According to a report by<br />
Chainalysis, the Middle East and North<br />
Africa (MENA) region is one of the<br />
fastest-growing cryptocurrency markets<br />
globally. This growth is driven by several<br />
factors, including world-class digital<br />
infrastructure, supportive regulatory<br />
environments, diverse investor bases,<br />
and tax-friendly regimes in many Gulf<br />
countries. The Gulf’s advanced digital<br />
infrastructure, characterized by high-speed<br />
internet, widespread smartphone adoption,<br />
and cutting-edge data centers, provides a<br />
solid foundation for the flourishing digital<br />
asset ecosystem. These technological<br />
advancements are critical in enabling<br />
seamless digital transactions, making<br />
the region an attractive destination for<br />
both crypto enthusiasts and blockchain<br />
entrepreneurs.<br />
Despite the rapid growth and favourable<br />
conditions, the digital asset landscape in<br />
the Gulf region is not without challenges.<br />
Regulatory disparities exist, with some<br />
countries like the UAE and Bahrain<br />
embracing digital assets while others<br />
in the region remain cautious, creating<br />
a fragmented regulatory landscape.<br />
Cybersecurity concerns are also significant,<br />
as the digital nature of these assets<br />
makes them vulnerable to cyber threats,<br />
necessitating robust security measures.<br />
Additionally, there is a need for continued<br />
education and awareness programs to<br />
ensure responsible participation in the<br />
digital asset market.<br />
Looking to the future, the outlook for<br />
digital assets in the Gulf region appears<br />
promising. As regulatory clarity improves<br />
across the region, more traditional financial<br />
institutions are expected to enter the<br />
digital asset space. The lines between<br />
traditional finance and digital assets are<br />
likely to blur, with increased integration<br />
and hybrid financial products emerging.<br />
In line with the sustainability goals of<br />
Gulf countries, there is growing interest<br />
in eco-friendly blockchain solutions and<br />
cryptocurrencies. These environmentally<br />
conscious initiatives are not only aligned<br />
with global sustainability trends but also<br />
reflect the region’s commitment to reducing<br />
its carbon footprint while embracing<br />
cutting-edge technology.<br />
Beyond financial applications, blockchain<br />
technology is expected to find broader<br />
applications in areas such as supply chain<br />
management, healthcare, and government<br />
The UAE leads the region<br />
in crypto adoption, with<br />
72% of local users<br />
investing in Bitcoin”<br />
according to Bitget Research<br />
services. The Gulf countries, led by the<br />
UAE and Bahrain, are poised to maintain<br />
their position as regional leaders in digital<br />
assets, potentially influencing regulatory<br />
approaches in neighbouring countries.<br />
The Gulf countries have established<br />
themselves as pioneers in the digital<br />
asset landscape within the Arab world,<br />
fostering an environment that encourages<br />
innovation while maintaining regulatory<br />
oversight. As the sector continues to<br />
evolve, the region’s proactive approach<br />
and strategic initiatives position it well to<br />
capitalise on the opportunities presented<br />
by digital assets.<br />
For investors, entrepreneurs, and<br />
businesses looking to explore the digital<br />
asset space in the Arab world, the Gulf<br />
region offers a unique blend of regulatory<br />
clarity, technological infrastructure, and<br />
market potential. However, as with any<br />
emerging market, careful consideration<br />
of the risks and challenges is essential.<br />
The region’s rapidly evolving regulatory<br />
environment and the ongoing need for<br />
cybersecurity measures are key factors<br />
to monitor closely. As the digital asset<br />
ecosystem in the Gulf matures, it will<br />
be fascinating to observe how it shapes<br />
the future of finance and technology in<br />
the region and beyond. The journey of<br />
digital assets in the Arab world is still<br />
in its early stages, and the coming years<br />
promise exciting developments and opportunities<br />
for those willing to navigate<br />
this dynamic landscape.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 75
Corporate Results<br />
AD Ports Group<br />
H2’24 Net Profit: AED 439M<br />
AD Ports Group reported a net profit<br />
of AED 439M ($119.5M) in the second<br />
quarter (Q2) of <strong>2024</strong>, marking a 42%<br />
year-on-year (YoY) increase, or 55%<br />
when adjusted for the introduction of<br />
corporate income tax in the UAE. After<br />
accounting for minority interests, net<br />
profit reached AED 333M, reflecting<br />
a 16% YoY rise. Revenues more than<br />
doubled to AED 4.18B, driven by organic<br />
growth in the Ports, Logistics, and<br />
Digital Clusters, as well as acquisitions<br />
of Noatum and GFS. EBITDA surged<br />
56% YoY to AED 1.07B, with an EBIT-<br />
DA margin of 25.6%. The group’s total<br />
assets rose 24% YoY to AED 61.4B, and<br />
equity grew 21% to AED 27.2B. S&P<br />
Global reaffirmed the group’s ‘A+’ and<br />
‘gcAAA’ ratings with a stable outlook.<br />
Burjeel Holdings<br />
H1’24 Net Profit: AED 238M<br />
Burjeel Holdings, a prominent healthcare<br />
provider in the UAE, reported a 5.9<br />
percent increase in net profit, bringing<br />
it to AED 238M for the first half of<br />
<strong>2024</strong>. This growth in profit, excluding<br />
one-off items and taxes, was primarily<br />
driven by robust revenue growth and<br />
reduced finance and amortisation costs,<br />
as stated by the group. Listed on the<br />
Abu Dhabi Securities Exchange (ADX),<br />
Burjeel Holdings also recorded a 10.4<br />
percent rise in revenue, amounting<br />
to AED 2.4B during this period. The<br />
group’s outpatient and inpatient revenues<br />
saw notable increases of AED<br />
137M and AED 82M, respectively.<br />
Despite facing higher direct costs due<br />
to ongoing investments in oncology<br />
aimed at enhancing revenue from future<br />
patient demand, the group successfully<br />
achieved significant revenue growth in<br />
the first six months of the year.<br />
Salama<br />
H1’24 Net Profit: AED 20.53M<br />
DUBAI – Islamic Arab Insurance Company<br />
(DFM listing: “Salama”), the UAE’s<br />
largest Takaful solutions provider, has<br />
reported a net profit of AED 20.53M,<br />
up from AED 12.26M during the same<br />
period in 2023. Despite a challenging<br />
revenue environment, Takaful revenue<br />
reached AED 528.58M, while total assets<br />
rose to AED 3,701.08M. The statement<br />
of financial position remains stable, with<br />
a modest increase in total assets. Other<br />
operating income surged by 277% to<br />
AED 20.68M, though foreign currency adjustments<br />
were negatively impacted by<br />
the depreciation of the Egyptian Pound.<br />
Commenting on the H1 <strong>2024</strong> financial<br />
results, Walter Jopp, Chief Executive<br />
Officer at Salama, expressed satisfaction<br />
with the progress, highlighting the<br />
benefits of underwriting discipline, strategic<br />
partnerships, and the digitization<br />
of solutions and services.<br />
Agthia Group<br />
H1’24 Net Profit: 31.8%<br />
Increase<br />
In the first half of <strong>2024</strong>, the group’s net<br />
revenue increased by 14.7% year-onyear<br />
to AED 2.5 B, with 11.2% of this<br />
growth attributed to volume and 3.5%<br />
to pricing. Group EBITDA rose by 19.9%<br />
year-on-year, and net profit surged by<br />
31.8% YoY. Innovations contributed<br />
45% of Agthia’s growth in this period.<br />
In response to the significant profit<br />
increase, we are pleased to propose a<br />
25% rise in interim dividends, pending<br />
AGM approval, reflecting our strong<br />
financial position and commitment to<br />
shareholder value. All segments reported<br />
positive revenue growth in H1 <strong>2024</strong>,<br />
driven by a 19.5% increase in snacking<br />
and a 5.2% rise in agri-business. The<br />
Group achieved a 5.7% year-on-year<br />
revenue growth in the traditionally<br />
slower Q2, with volume growth of 4%<br />
and pricing up by 1.6%. Snacking led<br />
in EBITDA margin growth, with an<br />
increase of 330 bps, followed by water<br />
at 193 bps, and protein and frozen<br />
segments at 143 bps.<br />
Gulf Medical Projects<br />
Company (GMPC)<br />
H1’24 Net Profit: AED 36.61M<br />
The net profits attributable to Gulf<br />
Medical Projects Company (GMPC)<br />
shareholders surged to AED 36.61M<br />
in the first half of <strong>2024</strong>, up from AED<br />
27.44M in H1 2023. Revenues reached<br />
AED 331.21M in H1 <strong>2024</strong>, a significant<br />
increase from AED 268.92M the previous<br />
year, based on the unaudited<br />
financial results. Basic earnings per<br />
share (EPS) rose to AED 0.05 by 30<br />
June <strong>2024</strong>, compared to AED 0.03 in<br />
H1 2023. Total assets stood at AED<br />
1.33B in H1 <strong>2024</strong>, down slightly from<br />
AED 1.35B as of 31 December 2023. In<br />
Q2 <strong>2024</strong>, net profits increased to AED<br />
19.78M from AED 14.22M in Q2 2023,<br />
with revenues rising to AED 164.15M<br />
from AED 132.97M. Basic EPS for Q2<br />
grew year-on-year to AED 0.028, up<br />
from AED 0.020.<br />
Dubai’s Parkin<br />
Q2’24 Net Profit: AED 95M<br />
Dubai’s Parkin, which went public<br />
earlier this year, increased its parking<br />
capacity by nearly 3 percent in the<br />
recent quarter, bringing the total to<br />
over 200,000 spaces. This expansion<br />
contributed to a 7 percent rise in net<br />
profit, reaching AED 95M ($25.9M).<br />
The company, responsible for managing<br />
public parking in Dubai, saw<br />
its second-quarter revenue grow by<br />
12 percent to AED 205.5M ($56M).<br />
This was driven by increased income<br />
from public and developer parking,<br />
seasonal permits, and fines. Despite<br />
facing challenges such as one fewer<br />
chargeable day and a three-day period<br />
of record rainfall, Parkin’s revenue<br />
remained strong, supported by strategic<br />
initiatives like the introduction<br />
of smart inspection scan cars, which<br />
boosted fines revenue by 27 percent<br />
to AED 54.6M ($14.87M).<br />
76 www.thefinanceworld.com Sep <strong>2024</strong>
MBC Group<br />
H1’24 Net Profit: SAR 237.8M<br />
Middle East media giant MBC Group has<br />
reported a nearly fivefold increase in net<br />
income for the first half of <strong>2024</strong>, driven<br />
by robust revenue growth and substantial<br />
margin improvements across its business<br />
divisions. The company posted a net<br />
profit of SAR 237.8M (approximately<br />
$63.4M), a remarkable 359.8 percent<br />
rise compared to the same period in the<br />
previous year. This significant boost in<br />
profitability is attributed to MBC Group’s<br />
continued investment in high-quality<br />
content and engaging platforms, which<br />
has enhanced viewership and expanded<br />
its subscriber base. The company’s net<br />
profit margin grew to 10.8 percent in the<br />
first half of <strong>2024</strong>, up from 2.6 percent in the<br />
first half of 2023. Total revenues reached<br />
SAR 2,199.6M ($586.6M), marking a 10<br />
percent year-on-year increase.<br />
Gulf Navigation Holding<br />
H1’24 Net Profit: AED 24.7M<br />
Gulf Navigation Holding PJSC (“GULF-<br />
NAV”), a maritime and shipping firm<br />
listed on the Dubai Financial Market,<br />
reported a net loss of AED 24.7M for the<br />
first half ending 30 June <strong>2024</strong>. Despite<br />
the losses, the company’s performance<br />
reflects strategic decisions aimed at<br />
strengthening its fleet and enhancing<br />
operational efficiency and sustainability.<br />
Notably, two petrochemical tankers<br />
underwent extensive maintenance,<br />
extending their operational life by five<br />
years and improving revenue potential.<br />
Furthermore, GULFNAV has invested in<br />
advanced technologies to reduce carbon<br />
emissions, in alignment with the UAE’s<br />
environmental targets. Although these<br />
initiatives have temporarily reduced<br />
revenue, they are expected to yield<br />
long-term value, with rising demand<br />
for petrochemical shipping services<br />
anticipated to boost financial performance<br />
in the latter half of the year.<br />
Abu Dhabi National<br />
Insurance Company<br />
9M’23 Net Profit: AED 301.9M<br />
Abu Dhabi National Insurance Company<br />
(ADNIC) reported a net profit of AED<br />
301.9M for the nine months ending<br />
30 <strong>September</strong> 2023, marking a 16.2%<br />
increase from the previous year. This<br />
growth was driven by strong underwriting<br />
and investment performance. ADNIC<br />
plans to acquire a 51% stake in Allianz<br />
Saudi Fransi Cooperative Insurance<br />
Co., strengthening its position in the<br />
GCC insurance market. Chairman<br />
Sheikh Mohamed Bin Saif Al-<br />
Nahyan highlighted ADNIC’s strong<br />
underwriting performance, with a<br />
combined ratio of 87.9%. He also<br />
emphasized the company’s strategic<br />
focus on geographical expansion, digital<br />
transformation, operational excellence,<br />
and reinsurance optimization for<br />
broader regional growth.<br />
Dubai Electricity and Water<br />
Authority (Dewa)<br />
H1’24 Net Profit: AED 2.6B<br />
Dubai Electricity and Water Authority<br />
(Dewa) reported record-breaking<br />
results for the first half of <strong>2024</strong>, with<br />
consolidated revenue rising to AED<br />
13.7B ($3.72B), a 7.3% increase over the<br />
previous year. The revenue growth was<br />
primarily driven by increased demand<br />
for electricity, water, and cooling services.<br />
However, Dewa’s consolidated<br />
net profit declined by 6.7% to AED<br />
2.6B ($708M), largely due to higher<br />
depreciation and the introduction of<br />
corporate tax in <strong>2024</strong>. Despite this, the<br />
company’s EBITDA reached AED 6.6B,<br />
with operating profit rising to AED 3.3B.<br />
Gross power generation for the first<br />
half of <strong>2024</strong> increased by 6.7% to 25.5<br />
TWh, with green energy accounting for<br />
12.9% of the total. Customer accounts<br />
grew by 4.4%, while desalinated water<br />
production increased by 4.3%.<br />
Spinneys<br />
H2’24 Net Profit: AED 72M<br />
Dubai-listed Spinneys reported a second-quarter<br />
profit of AED 72M ($20M)<br />
for <strong>2024</strong>, a 17.8% increase over the same<br />
period last year. The company, which<br />
debuted on the Dubai Financial Market<br />
earlier this year, generated AED 783M<br />
in revenue for the quarter. For the first<br />
half of <strong>2024</strong>, Spinneys posted a profit of<br />
AED 146M on revenue of AED 1.598B.<br />
Despite challenges such as the new UAE<br />
corporate tax and one-off IPO-related<br />
expenses, Spinneys achieved robust<br />
profit growth. The board approved a<br />
post-IPO dividend of AED 103M for the<br />
first half, reflecting confidence in the<br />
company’s performance. Operating in<br />
the UAE since 1961, Spinneys expanded<br />
its presence by opening its first store<br />
in Saudi Arabia in June.<br />
e&<br />
H1’24 Net Profit: AED 5.5B<br />
Leading UAE group e& has reported<br />
a consolidated revenue of AED 28.3B<br />
($7.7B) for the first half of <strong>2024</strong>, reflecting<br />
a 6% increase compared to the<br />
previous year. The group’s consolidated<br />
net profit also experienced a significant<br />
rise, up 17% to AED 5.5B ($1.5B),<br />
highlighting strong performance across<br />
all sectors. This success is largely attributed<br />
to e&’s commitment to growth<br />
and innovation, particularly in advancing<br />
a digital future for its customers.<br />
The group’s subscriber base grew by<br />
6% year-on-year, reaching 175M, with<br />
15M subscribers in the UAE alone,<br />
marking a 5% increase. Furthermore,<br />
e& achieved a consolidated EBITDA<br />
of AED 12.9B, demonstrating a robust<br />
46% margin. The board has approved an<br />
interim dividend of 41.5 fils per share,<br />
aligning with a new policy designed to<br />
ensure annual increases through 2026.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 77
Sports as a Business<br />
Source: freepik.com<br />
Exploring the Economic Impact of Sports in Dubai: Key Insights and Trends.<br />
The Economic<br />
Impact of Sports:<br />
Investing in the Arab<br />
<strong>World</strong>’s Future<br />
Transforming economies by investing in sports to<br />
shape the future.<br />
In recent years, the sports industry has<br />
emerged as a significant economic force,<br />
influencing global and local markets.<br />
The Middle East, known for its rich<br />
cultural heritage, is playing a pivotal<br />
role in this transformation. Countries<br />
like the UAE, Qatar, and Saudi Arabia<br />
are heavily investing in international<br />
sports, using their economic power to<br />
secure long-term benefits. These Gulf<br />
nations are not only hosting major events<br />
but also creating strategic partnerships<br />
that enhance their global influence. This<br />
article delves into the economic potential<br />
of the sports industry, highlighting the<br />
Gulf region’s strategic investments and<br />
their far-reaching implications.<br />
78 www.thefinanceworld.com Sep <strong>2024</strong>
The sports industry has become<br />
more than just a field of play;<br />
it’s a significant economic sector<br />
with diverse revenue streams, including<br />
broadcasting rights, sponsorships, merchandise<br />
sales, and ticketing. According<br />
to AT Kearney, the global sports market<br />
is valued between $480 billion and $620<br />
billion, with an upward trajectory expected.<br />
In the UAE, the sports events market<br />
is projected to generate approximately<br />
$73.78 million in revenue by <strong>2024</strong>. This<br />
underscores the sector’s growing influence<br />
on national economies.<br />
Technology plays a crucial role in this<br />
transformation. The rise of virtual sports<br />
and digital platforms is revolutionizing<br />
how sports are consumed and engaged<br />
with. In the UAE, augmented reality (AR)<br />
and virtual reality (VR) are forecThe rise<br />
of virtual sports and digital platforms is<br />
revolutionizing how sports are consumed<br />
and engaged with.asted to contribute<br />
$4.1 billion to the economy by 2030,<br />
enhancing the GDP by 1%, as noted by<br />
PwC. This digital revolution is not only<br />
expanding the sports audience but also<br />
creating new revenue channels.<br />
Middle East Investment in Sports<br />
The Middle East has increasingly turned<br />
its attention inward, investing heavily in<br />
the region’s sports infrastructure and<br />
events. This shift is part of a broader<br />
strategy to diversify economies and<br />
bolster national profiles. Recent investments<br />
include high-profile sports assets,<br />
such as football clubs and international<br />
sporting events. Qatar’s hosting of the<br />
2022 FIFA <strong>World</strong> Cup exemplifies this<br />
trend, showcasing the region’s growing<br />
role in global sports.<br />
Saudi Arabia, driven by Vision 2030, is<br />
leveraging sports as a tool for economic<br />
and social development. The kingdom<br />
has significantly ramped up its hosting<br />
of major sporting events, from Formula E<br />
races to international golf tournaments.<br />
These events not only attract global<br />
attention but also stimulate local economies<br />
through tourism, job creation, and<br />
enhanced national identity.<br />
Direct and Indirect Economic Impact<br />
Dubai’s sports sector has a notable economic<br />
footprint. Our model estimates the<br />
direct economic impact of sport in Dubai<br />
at $421 million. Additionally, indirect<br />
expenditure, which includes spending<br />
by businesses and suppliers connected<br />
to the sports sector, is estimated at $125<br />
million. Induced expenditure, reflecting<br />
the additional spending by individuals<br />
employed in the sports sector, adds<br />
another $124 million. This brings the<br />
total gross output of the sports sector<br />
in Dubai to approximately $670 million.<br />
Sports play a significant<br />
role in economic<br />
development, not just<br />
through direct revenue<br />
but also through the<br />
broader impact on<br />
employment, tourism,<br />
and local businesses.”<br />
Dr. Stefan Szymanski<br />
The Gross Value Added (GVA) from<br />
the sports sector stands at around $0.7<br />
billion, which represents approximately<br />
0.8% of Dubai’s GDP, based on a GDP of<br />
$88.7 billion in 2013. For perspective, a<br />
2014 European Commission study indicated<br />
that the sports sector accounted for<br />
about 1.2% of the EU’s global GDP. This<br />
comparison highlights the significant,<br />
though slightly smaller, contribution of<br />
the sports sector to Dubai’s economy<br />
relative to the European Union. The data<br />
underscores the growing importance of<br />
sports as a driver of economic activity<br />
and a contributor to the overall economic<br />
landscape in Dubai.<br />
Outbound Investment Trends<br />
Middle Eastern investors have heavily<br />
invested in European sports assets,<br />
particularly football. There are over<br />
two dozen European football clubs<br />
with Middle Eastern ownership, with<br />
ten transactions occurring in the past<br />
three years. This makes the Middle East<br />
to Europe deal corridor the second most<br />
active in football transactions, after the<br />
United States.<br />
Investors from the region hold stakes in<br />
five of the top 20 highest revenue-generating<br />
football clubs worldwide. Additionally,<br />
Middle Eastern companies are significant<br />
sponsors of four other top 20 clubs. Beyond<br />
football, Middle Eastern investors<br />
have also expanded into Formula 1, E1<br />
Series, Formula E, and international<br />
events like the ICC and FIFA.<br />
Future Inbound Investment<br />
As the Middle East diversifies its economy,<br />
a shift towards privatization and a<br />
competitive market model is anticipated,<br />
leading to increased domestic and future<br />
foreign investment in sports. Local<br />
governments are encouraging private<br />
investment to help achieve national visions,<br />
elevate sport, and reduce reliance<br />
on government subsidies.<br />
Privatization efforts will require responsible<br />
and sustainable investment<br />
strategies. It is crucial for private sector<br />
investors to ensure long-term financial<br />
and operational viability while balancing<br />
competitiveness. Effective decision-making<br />
and industry insight are essential to avoid<br />
significant financial losses common in<br />
the sports sector.<br />
Innovation and Digital Transformation<br />
Digital innovation is revolutionizing the<br />
sports landscape in several impactful<br />
ways. For instance, virtual reality has<br />
reached a new milestone with AC Milan<br />
vs Fiorentina becoming the first football<br />
match broadcasted in the metaverse.<br />
Additionally, blockchain technology<br />
and NFTs are reshaping fan engagement<br />
through platforms like NBA Top Shot,<br />
which enables users to buy, sell, and<br />
trade digital highlights of NBA moments.<br />
These advancements are not only creating<br />
new business models but also opening up<br />
diverse revenue opportunities, positioning<br />
sports organizations as forward-thinking<br />
entities in the digital age.<br />
The sports sector in Dubai demonstrates<br />
substantial economic impact, approaching<br />
that of other developed economies. The<br />
Middle East’s growing investment in both<br />
domestic and international sports assets<br />
reflects a broader trend of increasing<br />
economic and social engagement with<br />
the sector. Digital innovation further<br />
enhances this dynamic landscape, presenting<br />
new opportunities for growth<br />
and engagement.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 79
Esports<br />
Source: Supplied<br />
The Rise of Esports<br />
in MENA region: A<br />
Promising Portfolio<br />
for Investors<br />
Transforming the future of esports with MENA’s rapid growth<br />
powered by digital infrastructure.<br />
The esports industry in the MENA region<br />
is undergoing rapid transformation,<br />
driven by technological advancements,<br />
demographic shifts, and substantial government<br />
support. As traditional sports<br />
face challenges in engaging younger<br />
audiences, esports has emerged as a<br />
dynamic sector capturing the attention<br />
and spending power of millennials and<br />
Gen Z. This paradigm shift is creating<br />
a fertile ground for investment across<br />
various segments of the esports value<br />
chain. The global esports market has<br />
demonstrated robust growth, with<br />
revenues reaching $1.38 billion in 2022,<br />
marking a 16.4% year-over-year increase.<br />
Projections suggest this figure could<br />
escalate to $1.87 billion by 2025.<br />
80 www.thefinanceworld.com Sep <strong>2024</strong>
The MENA region, in particular, is<br />
poised for significant expansion,<br />
with an expected compound annual<br />
growth rate (CAGR) of 15.1% through<br />
<strong>2024</strong>. This growth is underpinned by a<br />
gaming community exceeding 377 million<br />
players, with Saudi Arabia leading in<br />
gaming revenue and the UAE boasting<br />
the highest revenue per user. Several<br />
factors contribute to the rapid expansion<br />
of esports in the MENA region.<br />
The robust technological infrastructure,<br />
characterized by high mobile internet<br />
penetration and ongoing 5G network<br />
rollouts, provides the necessary foundation<br />
for esports growth. The region’s<br />
investment in digital infrastructure is<br />
expected to exceed $70 billion by 2025,<br />
further bolstering the sector’s potential.<br />
Demographically, the MENA region enjoys<br />
a significant advantage with over<br />
65% of its population under 35 years old,<br />
forming a large, tech-savvy youth base<br />
that constitutes the core audience and<br />
participant pool for esports.<br />
Governments across the MENA region<br />
are increasingly recognizing the potential<br />
of esports and are implementing<br />
supportive policies to foster growth and<br />
development in this burgeoning industry.<br />
In the UAE, Dubai is spearheading its<br />
efforts with the ambitious “Programme<br />
for Gaming 2033,” which aims to position<br />
the city among the top 10 global<br />
esports hubs by 2033. This initiative is<br />
set to create approximately 30,000 new<br />
jobs and contribute nearly $1 billion to<br />
the city’s GDP. Meanwhile, Abu Dhabi is<br />
also making significant strides with the<br />
launch of the “AD Gaming” initiative.<br />
The program is designed to support and<br />
cultivate game developers and esports<br />
organizations within the emirate. It includes<br />
a range of resources, including<br />
funding, mentorship, and networking<br />
opportunities, aimed at nurturing local<br />
talent and attracting international esports<br />
companies.<br />
Investment Opportunities<br />
The MENA esports market presents a<br />
diverse array of investment opportunities.<br />
Team and league ownership offers<br />
potential for brand building and revenue<br />
generation through sponsorships, merchandise<br />
sales, and media rights. The<br />
establishment of esports academies and<br />
educational programs presents an avenue<br />
to nurture local talent and support the<br />
ecosystem’s growth.<br />
The recently launched Ferrari <strong>World</strong><br />
We take great pride in bringing advanced technology<br />
and innovative simulators that offer our guests a truly<br />
unmatched racing experience.”<br />
Faisal Al Nuaimi, General Manager of Ferrari <strong>World</strong> Abu Dhabi<br />
Esports Arena on Yas Island, Abu Dhabi,<br />
represents the growing intersection of<br />
traditional entertainment, luxury brands,<br />
and the esports sector. The venue features<br />
20 Gran Turismo simulators and three F1<br />
simulators, with accessibility features<br />
on two GT simulators for people of determination.<br />
This initiative reflects the<br />
UAE’s increasing involvement in esports<br />
and raises interesting possibilities for<br />
collaborations between well-established<br />
industries and the digital gaming world.<br />
The design incorporates signature<br />
Ferrari elements, including a sleek<br />
black and red floor-to-ceiling aesthetic,<br />
high-performance equipment, and large<br />
high-definition LED screens, creating an<br />
immersive environment. This development<br />
marks another step in the UAE’s evolving<br />
esports scene, blending the prestige of<br />
Ferrari with competitive gaming.<br />
However, its overall reception, especially<br />
in terms of its high-tech setup and<br />
cost, remains to be seen.<br />
Faisal Al Nuaimi, General Manager of<br />
Ferrari <strong>World</strong> Abu Dhabi, highlighted the<br />
importance of the launch as the world’s<br />
first Ferrari-themed Esports Arena to<br />
create a competitive environment for<br />
racing enthusiasts from first-timer racers<br />
to seasoned pros.<br />
The Future Outlook<br />
The future of esports in the MENA region<br />
appears promising. Continued government<br />
support and investment in digital<br />
infrastructure, increased integration of<br />
esports into mainstream entertainment<br />
and education, and the growth of mobile<br />
esports leveraging the region’s high<br />
smartphone penetration are expected<br />
to drive the sector forward. The MENA<br />
region is poised to emerge as a global hub<br />
for esports events and competitions, with<br />
the potential to host major international<br />
tournaments and develop localized game<br />
content that resonates with MENA audiences.<br />
Additionally, there is an opportunity<br />
to develop localized game content that<br />
resonates with MENA audiences, further<br />
strengthening the region’s position in the<br />
global esports landscape.<br />
The rise of esports in the MENA region<br />
presents a compelling opportunity for<br />
investors seeking exposure to a highgrowth,<br />
technology-driven sector. For<br />
investors with the vision to navigate<br />
this dynamic landscape, the esports<br />
revolution in MENA offers the potential<br />
to participate in shaping the future of<br />
digital entertainment and competitive<br />
gaming. As the industry continues to<br />
evolve, early movers stand to benefit<br />
from the diverse revenue streams and<br />
innovative opportunities emerging in this<br />
exciting market, positioning themselves<br />
at the forefront of a digital entertainment<br />
revolution that is reshaping the global<br />
media and gaming landscape.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 81
Sports News<br />
<strong>World</strong> Supercross Championship Returns to Abu Dhabi for Thrilling Showdown<br />
The FIM <strong>World</strong> Supercross Championship<br />
(WSX) returns to Abu<br />
Dhabi for the second consecutive<br />
year, set to light up the Etihad Arena on<br />
Wednesday, 4th December <strong>2024</strong>. This<br />
high-octane event will showcase top<br />
off-road motorcycle talent, delivering<br />
thrilling racing action into the night. The<br />
<strong>2024</strong> WSX season begins at BC Place in<br />
Vancouver, Canada, on 26th October for<br />
Round 1, followed by a double-header<br />
UAE Sports Minister<br />
Hosts Egyptian<br />
Counterpart in Paris<br />
Dr. Ahmed Belhoul Al Falasi,<br />
UAE Minister of Sports, warmly<br />
welcomed Dr. Ashraf Sobhi,<br />
Egyptian Minister of Youth and Sports,<br />
to the UAE Olympic House in Paris.<br />
The meeting was attended by Alaa<br />
Youssef, Egyptian Ambassador to<br />
France. During their discussions, Dr.<br />
Al Falasi and Dr. Sobhi explored ways<br />
to strengthen collaboration across<br />
various sports sectors, focusing on<br />
activating partnerships to achieve<br />
significant benefits for both nations.<br />
They aimed to enhance coordination<br />
and outcomes by sharing expertise<br />
and innovative ideas. Dr. Al Falasi<br />
also praised the UAE Olympic House<br />
team for their exceptional efforts in<br />
presenting the UAE’s achievements,<br />
rich culture, history, and heritage at<br />
the Olympics. This effort not only highlighted<br />
the UAE’s prominence but also<br />
left a lasting legacy for international<br />
visitors, showcasing the country’s<br />
global presence and impact.<br />
in Perth, Australia, at HBF Park on<br />
23-24 November for Rounds 2 and 3.<br />
Abu Dhabi will host the season finale,<br />
Round 4, at Etihad Arena, concluding<br />
a thrilling motorsport week on Yas<br />
Island where the <strong>2024</strong> Champions will<br />
be crowned. Following an exhilarating<br />
2023 edition, this year’s finale promises<br />
even more excitement, with 32 riders<br />
competing for two championship titles<br />
on a unique track within the arena.<br />
UAE Team Emirates’ Hirschi Clinches Major<br />
Victory at Clasica San Sebastián<br />
Marc Hirschi clinched his fourth<br />
victory of the season at the<br />
Clasica San Sebastián in Spain<br />
today. The 25-year-old Swiss rider<br />
delivered a remarkable performance,<br />
outsprinting former <strong>World</strong> Champion<br />
Julian Alaphilippe (Soudal Quickstep)<br />
in a dramatic two-up dash to the finish<br />
line, with Lennert Van Eetvelt (Lotto<br />
Dstny) rounding out the podium in third<br />
place. The race saw Pavel Sivakov make<br />
a bold solo move with 40km remaining<br />
before being reeled back in, which set<br />
the stage for the decisive action on<br />
the ascent of the Pilotegi climb with<br />
7km to go. Alaphilippe surged ahead<br />
with Hirschi closely following, and the<br />
duo worked in tandem until the final<br />
sprint. Alaphilippe led out the sprint,<br />
but Hirschi expertly timed his acceleration<br />
to overtake the Frenchman and<br />
secure the prestigious win.<br />
UAE Olympic House Hosts Roundtable on Future<br />
of Sport and Public Diplomacy<br />
The UAE Olympic House in Paris,<br />
in partnership with the UAE<br />
Ministry of Foreign Affairs,<br />
hosted a high-level roundtable titled<br />
“Beyond the Games: Olympics and<br />
Public Diplomacy in Shaping National<br />
Identity.” Chaired by Noura Al Kaabi,<br />
Minister of State at the UAE Ministry<br />
of Foreign Affairs, the event featured<br />
a distinguished panel exploring the<br />
intersection of sports and public diplomacy.<br />
The discussion underscored<br />
the role of sports in fostering cohesive<br />
communities and creating lasting legacies<br />
on both national and international<br />
stages. Sheikh Rashed bin Humaid Al<br />
Nuaimi, Vice President of the National<br />
Olympic Committee (NOC), opened<br />
the session by highlighting the UAE’s<br />
record participation at the Olympics<br />
and its commitment to embracing<br />
Emirati sporting values while learning<br />
from global best practices.<br />
82 www.thefinanceworld.com Sep <strong>2024</strong>
UAE Team Emirates Aims for Historic Triple Crown at Vuelta a España<br />
UAE Team Emirates are heading<br />
into the Vuelta a España with<br />
a clear and ambitious goal: to<br />
make history. The team is determined<br />
to become only the second squad in<br />
cycling history to win the Giro d’Italia,<br />
Tour de France, and Vuelta a España<br />
in the same season. With a powerful<br />
lineup led by Adam Yates and Joao<br />
Almeida, both riders come into the<br />
race buoyed by their recent impressive<br />
performances. The 79th edition of “La<br />
Vuelta” promises to be a rigorous test,<br />
commencing from Lisbon and featuring<br />
demanding mountainous stages over<br />
three challenging weeks. UAE Team<br />
Emirates, well-acquainted with the<br />
demanding nature of Grand Tours, are<br />
eager to tackle this challenge head-on.<br />
Almeida aims to build on his top 10<br />
finish from last year, while Yates seeks<br />
to improve on his previous 4th place,<br />
showcasing their determination and<br />
readiness for the arduous journey ahead.<br />
UAE and French Judo<br />
Federations Sign<br />
Cooperation Agreement<br />
UAE Olympic House in Paris,<br />
the UAE Judo Federation and<br />
its French counterpart signed<br />
a cooperation agreement during the<br />
33rd Olympic Games. The agreement<br />
was formalised by Nasser Al Tamimi,<br />
Secretary-General of the UAE Judo<br />
Federation, and Gevrise Emane,<br />
Vice-President of the French Judo<br />
Federation for International Relations.<br />
The signing was witnessed by Amal<br />
Bushallakh, a member of the National<br />
Olympic Committee, and Ali Al Amari,<br />
Head of Public Diplomacy at the UAE<br />
Embassy in France. This agreement<br />
outlines various partnerships in technical<br />
and training domains, including<br />
joint training courses, technical workshops,<br />
and the development of school<br />
judo programmes with French experts.<br />
It also involves organising training<br />
camps for different age groups and<br />
integrating French national teams into<br />
these programmes.<br />
Nahyan Opens 30th Abu Dhabi Chess Festival<br />
Sheikh Nahyan bin Mubarak Al<br />
Nahyan, the Minister of Tolerance<br />
and Coexistence, inaugurated<br />
the 30th Abu Dhabi International<br />
Chess Festival today at the St. Regis<br />
Corniche Hotel. Under the patronage<br />
of H.H. Sheikh Nahyan bin Zayed Al<br />
Nahyan, Chairman of the Zayed Charitable<br />
and Humanitarian Foundation<br />
and the Abu Dhabi Sports Council, the<br />
festival, organised by the Abu Dhabi<br />
Chess Club & Mind Games, features<br />
over 2,200 participants from 82 countries.<br />
The event includes 27 different<br />
The USTA and Emirates have renewed<br />
their transformative partnership,<br />
continuing Emirates’ long-standing<br />
support of the US Open Tennis Championships<br />
for the 13th consecutive year. As<br />
the Official Airline Partner, Emirates is<br />
set to enhance local communities in the<br />
US through a new multi-year initiative.<br />
This partnership includes the launch of<br />
the Emirates “Force for Good” court<br />
refurbishment programme, beginning<br />
with the renovation of three courts at<br />
Brooklyn’s De Hostos Playground during<br />
the <strong>2024</strong> US Open, unveiled on <strong>September</strong><br />
7. The initiative aims to benefit tens of<br />
thousands of under-resourced youth by<br />
providing access to tennis and education.<br />
Additionally, Emirates will annually donate<br />
to the USTA Foundation to refurbish<br />
competitions, including new tournaments<br />
for government institutions<br />
and schools. It features international<br />
masters, open tournaments A and B,<br />
various age categories from under-8<br />
to 16, blitz tournaments, and categories<br />
for family and community teams,<br />
as well as institutions and people of<br />
determination. Participating countries<br />
include the UAE, Qatar, Kuwait,<br />
Uzbekistan, and China. The opening<br />
ceremony was attended by notable<br />
figures such as Sheikh Dr. Khalid bin<br />
Hamid Al Qasimi and Tarim Mattar.<br />
Emirates Extends Support for US Open<br />
courts at underserved parks, schools, and<br />
community centres in US cities where<br />
Emirates operates, supporting tennis and<br />
educational programming for local youth.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 83
Investment In Art<br />
Source: pexels.com<br />
Art as an Asset:<br />
Innovating Investment<br />
Strategies in the New<br />
Arab <strong>World</strong><br />
Art is becoming a key component of wealth<br />
management in the Arab world.<br />
Art is increasingly being recognized as<br />
a valuable asset class in the Arab world,<br />
where collectors and investors are realizing<br />
the financial potential of fine art. The<br />
region’s burgeoning art market is fueled<br />
by a cultural renaissance, strong government<br />
support, and innovative investment<br />
strategies that are transforming art into a<br />
key component of wealth management.<br />
The rise of art funds, digital platforms,<br />
and government-backed cultural initiatives<br />
is positioning the Arab world as<br />
a global leader in art investment. This<br />
article delves into how art is becoming<br />
an integral part of wealth management in<br />
the region, the growing role of art funds,<br />
the impact of digital platforms, and what<br />
the future holds for art investment in the<br />
Arab world.<br />
84 www.thefinanceworld.com Sep <strong>2024</strong>
Art funds have emerged as a popular<br />
investment vehicle in the<br />
Arab world, providing investors<br />
with an opportunity to diversify their<br />
portfolios by including art as a distinct<br />
asset class. These funds pool capital from<br />
multiple investors to acquire, manage,<br />
and eventually sell high-value art collections,<br />
allowing investors to benefit<br />
from the appreciation of these assets<br />
without the need to directly purchase<br />
or manage the artworks themselves. The<br />
UAE and Qatar are at the forefront of<br />
this trend, with institutions such as the<br />
Qatar Investment Authority (QIA) and<br />
private entities like The Fine Art Fund<br />
Group leading the way.<br />
Art funds offer several advantages,<br />
including professional management by<br />
experts with deep knowledge of the art<br />
market, access to exclusive collections,<br />
and the ability to invest in a diversified<br />
portfolio of artworks across different<br />
periods, styles, and artists. These funds<br />
have attracted high-net-worth individuals<br />
who see art as both a cultural investment<br />
and a financial opportunity. As the art<br />
market continues to grow in the Arab<br />
world, art funds are likely to play an<br />
increasingly significant role in shaping<br />
the region’s investment landscape.<br />
Government Support and Cultural<br />
Investment<br />
Governments in the Arab world are playing<br />
a pivotal role in fostering the growth of<br />
the art market, recognizing its potential<br />
as both a cultural and economic asset.<br />
The UAE, for example, has established<br />
several cultural districts, such as Abu<br />
Dhabi’s Saadiyat Island, which houses<br />
world-renowned institutions like the<br />
Louvre Abu Dhabi and the soon-to-beopened<br />
Guggenheim Abu Dhabi. These<br />
initiatives are part of broader strategies<br />
to position the UAE as a global cultural<br />
hub, attracting art collectors, investors,<br />
and tourists from around the world.<br />
Similarly, Saudi Arabia’s Vision 2030<br />
plan includes significant investments<br />
in the arts and culture sector, aimed at<br />
diversifying the economy and reducing<br />
the country’s reliance on oil revenues.<br />
The Saudi government has launched<br />
various initiatives to promote the local<br />
art market, including the establishment<br />
of the Ministry of Culture, which oversees<br />
the development of cultural policies, the<br />
creation of cultural infrastructure, and the<br />
promotion of Saudi artists on the global<br />
stage. These government-backed efforts<br />
are not only enhancing the appeal of art<br />
as an investment but are also contributing<br />
to the growth of a vibrant and dynamic<br />
cultural scene in the Arab world.<br />
Digital Platforms and the Democratization<br />
of Art Investment<br />
The digital revolution sweeping across<br />
the Arab world has also transformed the<br />
art market, making art investment more<br />
accessible to a broader audience. Online<br />
platforms like Art Dubai and ArtScoops<br />
are pioneering digital marketplaces where<br />
collectors and investors can buy and sell<br />
art, participate in virtual auctions, and<br />
access expert advice on art investment.<br />
These platforms have democratized art<br />
investment, allowing individuals who<br />
may not have the resources to purchase<br />
high-value artworks to invest in shares<br />
of artworks or support emerging artists.<br />
Moreover, the advent of Non-Fungible<br />
Tokens (NFTs) has introduced a new<br />
dimension to art investment in the Arab<br />
world. NFTs, which are unique digital<br />
assets that represent ownership of a<br />
specific piece of digital art or other collectibles,<br />
have gained significant traction<br />
globally and are now making their mark<br />
in the Arab region. Artists and investors<br />
are increasingly engaging with NFTs as<br />
a way to buy, sell, and trade digital art<br />
on blockchain platforms, offering a new<br />
avenue for art investment that is both<br />
innovative and accessible. The rise of<br />
digital platforms and NFTs is reshaping<br />
the art investment landscape, providing<br />
new opportunities for investors and<br />
artists alike.<br />
Art as a Tool for Wealth Preservation<br />
In addition to its aesthetic value, art is<br />
increasingly being viewed as a tool for<br />
wealth preservation in the Arab world.<br />
High-net-worth individuals and families are<br />
turning to art as a means of safeguarding<br />
their wealth against economic volatility,<br />
inflation, and currency fluctuations.<br />
Unlike traditional investments such as<br />
stocks and bonds, which can be subject<br />
to market swings, art tends to retain its<br />
value over time and can even appreciate<br />
significantly, particularly when it comes<br />
to works by renowned artists or rare,<br />
historically significant pieces.<br />
Financial institutions in the Arab<br />
world, such as HSBC Private Banking<br />
and UBS, have recognized the growing<br />
importance of art in wealth management<br />
and have established specialized art<br />
advisory services to cater to the needs<br />
of their clients. These services provide<br />
tailored advice on building and managing<br />
art collections, conducting appraisals,<br />
and navigating the complex legal and<br />
tax considerations associated with art<br />
ownership. By incorporating art into their<br />
overall investment strategy, investors in<br />
the Arab world are not only diversifying<br />
their portfolios but also preserving<br />
their wealth in a tangible and culturally<br />
meaningful way.<br />
The Future of Art Investment in the<br />
Arab <strong>World</strong><br />
As the art market in the Arab world<br />
evolves, the future of art investment<br />
appears increasingly promising. A key<br />
innovation driving this growth is the<br />
introduction of art-secured loans, where<br />
art is used as collateral. This allows<br />
collectors to unlock the value of their<br />
collections without selling them, providing<br />
liquidity while retaining ownership<br />
of their prized assets. This approach is<br />
gaining popularity, especially among<br />
high-net-worth individuals seeking to<br />
leverage their art for other investments<br />
or personal projects.<br />
Additionally, strong government support,<br />
the rise of digital platforms, and the<br />
growing recognition of art as a serious<br />
asset class indicate that art investment in<br />
the Arab world will continue to expand.<br />
The region’s art market is expected to<br />
draw global interest, driven by its rich<br />
cultural heritage and innovative strategies.<br />
As art becomes central to wealth<br />
management, it will significantly shape<br />
the region’s financial landscape, offering<br />
both financial returns and cultural<br />
enrichment.<br />
Art is no longer just a cultural asset;<br />
it has firmly established itself as<br />
a significant investment class in the<br />
Arab world. With the rise of art funds,<br />
digital platforms, government support,<br />
and innovative financial products like<br />
art-secured loans, the region is at the<br />
forefront of a new wave of art investment.<br />
As the Arab world continues to embrace<br />
art as an asset, investors are discovering<br />
new ways to preserve and grow their<br />
wealth while contributing to the cultural<br />
vitality of the region. The future of art<br />
investment in the Arab world is bright,<br />
with the potential to offer both financial<br />
rewards and profound cultural impact.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 85
Global News<br />
Harris to Unveil Economic Plan in Major Policy Announcement<br />
Kamala Harris is set to confront<br />
companies engaging in unfair<br />
price hikes as she presents her<br />
economic agenda, marking her first<br />
significant policy announcement as<br />
the Democratic Party’s presidential<br />
nominee. Since stepping in to replace<br />
President Joe Biden on the ticket<br />
last month, Harris has experienced<br />
a notable surge in support, fuelled in<br />
part by recent data showing inflation<br />
easing. A new University of Michigan<br />
poll indicates that more Americans<br />
now trust Harris to handle the economy<br />
than her Republican opponent,<br />
Donald Trump—a major shift in this<br />
election cycle. With the Democratic<br />
National Convention rapidly approaching,<br />
Harris faces mounting pressure to<br />
articulate her economic vision clearly<br />
and compellingly. Voters are eager to<br />
hear detailed plans that address their<br />
concerns and offer solutions to pressing<br />
financial challenges.<br />
Google Expands AI-Powered Search to<br />
New Countries<br />
Alphabet, Google’s parent company,<br />
announced the expansion<br />
of its AI-generated search<br />
summaries to six additional countries.<br />
This follows a previous reduction in<br />
capabilities due to a problematic launch.<br />
The AI Overviews, which appear at the<br />
top of search results before traditional<br />
links, were made available to all U.S.<br />
users in May after a year-long trial.<br />
The feature initially faced criticism<br />
when inaccurate summaries, including<br />
a pizza recipe listing glue as an ingredient,<br />
circulated online. In response,<br />
Google updated the product, limiting<br />
which queries displayed AI answers and<br />
excluding user-generated content from<br />
sites like Reddit. According to Google,<br />
the quality has since improved, with<br />
users showing increased satisfaction.<br />
The feature is now being introduced in<br />
Brazil, India, Indonesia, Japan, Mexico,<br />
and Britain, in local languages.<br />
UAE Partners with BRICS to<br />
Launch Centre for Industrial<br />
Competence<br />
The UAE Ministry of Industry and<br />
Advanced Technology joined<br />
BRICS nations in signing a declaration<br />
to establish a Centre for Industrial<br />
Competences in partnership with the<br />
United Nations Industrial Development<br />
Organisation (UNIDO). The agreement<br />
was made during the 8th BRICS<br />
Industry Ministers Meeting, which<br />
brought together representatives from<br />
the UAE, Russia, Brazil, China, Egypt,<br />
Ethiopia, India, Iran, and South Africa.<br />
The centre aims to foster partnerships<br />
within the New Industrial Revolution<br />
(NIR) framework to address emerging<br />
industrial challenges and opportunities.<br />
Omar Al Suwaidi, Undersecretary of the<br />
Ministry, praised the meeting’s theme<br />
of enhancing multilateralism and highlighted<br />
BRICS’s economic influence,<br />
emphasizing the UAE’s commitment<br />
to addressing global issues like food<br />
security and climate change.<br />
Indian Firms Lead New Entries to Dubai Chamber of Commerce in H1 <strong>2024</strong><br />
A<br />
recent analysis by the Dubai<br />
Chamber of Commerce has<br />
revealed that Indian investors<br />
led the influx of new non-Emirati<br />
companies joining the chamber in<br />
the first half of <strong>2024</strong>, with 7,860 new<br />
entries. This underscores Dubai’s<br />
strong appeal and attractiveness to<br />
Indian direct investments, highlighting<br />
the city’s strategic importance<br />
as a global business hub. Pakistan<br />
followed with 3,968 new companies,<br />
while Egypt ranked third with 2,355.<br />
Syria placed fourth with 1,358 new<br />
86 www.thefinanceworld.com Sep <strong>2024</strong><br />
members, and the United Kingdom<br />
came fifth with 1,245 new companies.<br />
Bangladesh ranked sixth with 1,119<br />
new entries, Iraq seventh with 799,<br />
China eighth with 742, Sudan ninth<br />
with 683, and Jordan tenth with 674<br />
new member companies. These figures<br />
clearly demonstrate Dubai’s growing<br />
international business appeal and<br />
solidify its status as a leading global<br />
investment destination for diverse<br />
industries and investors worldwide,<br />
reflecting its robust economic growth<br />
and strategic significance.
ADIA Eyes Indian Govt’s<br />
Stake in Vodafone Idea<br />
Abu Dhabi Investment Authority<br />
(ADIA) is increasingly focusing<br />
on the Indian market and has<br />
emerged as a contender to purchase<br />
the government’s stake in telecom giant<br />
Vodafone Idea (VI). ADIA, along with<br />
sovereign funds like Qatar Investment<br />
Authority and Singapore’s Temasek,<br />
has been approached, as reported<br />
by the Financial Express. These discussions<br />
are in the early stages. The<br />
Indian government became VI’s largest<br />
shareholder with a 32.19% stake in<br />
2023 after converting debt to equity.<br />
Following an April follow-on public<br />
offer (FPO) that raised INR 180B, the<br />
government’s stake dropped to about<br />
23%. VI, a joint venture between Aditya<br />
Birla Group and Vodafone Group, also<br />
received INR 20.75B from Aditya Birla.<br />
The FPO will support VI’s 5G rollout,<br />
projected to contribute 40% of revenue<br />
within 24-30 months.<br />
India’s RBI Urges<br />
Banks to Promote<br />
Direct Rupee-Dirham<br />
Settlements<br />
The Reserve Bank of India (RBI)<br />
has instructed banks engaged<br />
in trade with the United Arab<br />
Emirates (UAE) to process a portion of<br />
their transactions using the rupee and<br />
dirham, according to banking sources.<br />
While the RBI has not set a specific<br />
target, it has requested regular updates<br />
on the volume of these transactions.<br />
This directive follows a similar push in<br />
2023, which came after Prime Minister<br />
Narendra Modi’s visit to the UAE. The<br />
initiative is part of India’s broader<br />
strategy to increase trade settlements<br />
in rupees and reduce dependency on<br />
the dollar, which dominates approximately<br />
half of global trade. Additionally,<br />
the RBI is negotiating mechanisms<br />
to enhance local currency trade with<br />
Russia. Last year, Indian refiners began<br />
paying for Russian oil through Dubaibased<br />
traders using dirhams instead<br />
of dollars, reflecting a shift towards<br />
more diversified currency use in international<br />
trade and strengthening<br />
bilateral economic relations.<br />
Dubai Forum to Strengthen China Trade<br />
Chinese business leaders have<br />
extolled Dubai’s role as a pivotal<br />
hub for business opportunities<br />
and expansion, citing the emirate’s<br />
strong competitive advantages and<br />
attractive investment environment.<br />
Senior executives from three leading<br />
Chinese companies, each benefiting<br />
from the Dubai International Chamber’s<br />
support, highlighted how Dubai<br />
has facilitated their growth both in the<br />
emirate and throughout the broader<br />
Middle East and Africa region. They<br />
praised Dubai’s dynamic business<br />
climate and strategic location, which<br />
have made it an essential part of their<br />
global strategy. The confidence of the<br />
Chinese business community in Dubai<br />
reflects its status as a key player on the<br />
international business map, offering<br />
both promising opportunities and a<br />
supportive environment for international<br />
enterprises.<br />
Saudi Arabia to Invest $1T in Economy by 2030 in<br />
Capex Super Cycle<br />
Saudi Arabia plans to invest $1T into<br />
a “capex super cycle,” with 73%<br />
allocated to its non-oil economy<br />
by 2030, according to Goldman Sachs.<br />
The bank also notes a $25B annual<br />
funding gap for capital expenditure<br />
projects, leading to a focus on alternative<br />
financing sources to manage<br />
liquidity. The country’s shift in strategy<br />
has increased the non-oil investment<br />
target to 66%, up from earlier forecasts.<br />
Capital expenditure in the oil sector is<br />
set to decline by $40B between <strong>2024</strong><br />
and 2028. While natural gas remains<br />
vital for decarbonisation and economic<br />
diversification, investments<br />
in upstream oil and gas are projected<br />
to fall to $190–$220B from a previous<br />
range of $230–$260B.<br />
Emirates NBD and Japanese Bank Eye Majority<br />
Stake in Yes Bank<br />
State Bank of India (SBI), the<br />
nation’s largest lender, plans to<br />
finalise the sale of its 24% stake<br />
in Yes Bank, valued at ₹184.2B ($2.2B),<br />
by the end of March. Japanese lender<br />
Sumitomo Mitsui Banking Corp and<br />
Dubai-based Emirates NBD are in<br />
advanced discussions to acquire a majority<br />
51% stake in Yes Bank, according<br />
to sources familiar with the matter.<br />
Sumitomo Mitsui is a subsidiary of<br />
Japan’s second-largest bank, Sumitomo<br />
Mitsui Financial Group. The Reserve<br />
Bank of India (RBI) has provisionally<br />
approved the proposal, with due<br />
diligence underway. Yes Bank, which<br />
faced financial challenges and was<br />
restructured in March 2020 by a consortium<br />
of local banks, is now a target<br />
for international investors. The bidders<br />
seek regulatory leniency on promoter<br />
shareholding requirements.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 87
18 – 19 <strong>September</strong> <strong>2024</strong><br />
Dhahran Expo, Dammam, KSA<br />
Join us at Saudi Maritime & Logistics Congress<br />
The Kingdom’s largest and most important<br />
maritime event<br />
Network with 10,000+ industry professionals,<br />
including shipowners and shipping experts.<br />
Connect with 200+ leading maritime suppliers<br />
at our expansive exhibition.<br />
Gain insights from 65+ speakers, local and<br />
international maritime experts, who will share<br />
the latest updates from the region.<br />
Register now<br />
Founding Strategic Partners<br />
Main Partners<br />
Strategic Partners<br />
Official Media Partner
Ask<br />
? Ask<br />
the<br />
E PERT<br />
Manoj Sureka<br />
Managing Partner at<br />
Synergy Fin. Consulting<br />
Synergy Consulting specializes in fundraising<br />
advisory, including private equity,<br />
debt, and trade finance through banks,<br />
financial institutions, sovereign funds,<br />
and other institutional investors. We<br />
also offer expert advice on mergers,<br />
acquisitions, and joint ventures.<br />
Banking & <strong>Finance</strong><br />
Q: What interest rate can I expect<br />
on a business loan?<br />
Interest rates on business loans,<br />
especially unsecured ones, can vary<br />
depending on factors like your business’s<br />
risk rating, loan amount, tenor,<br />
and terms. Typically, these rates range<br />
from 9% to 18% per annum.<br />
Q: What are the key documents<br />
required to raise finance?<br />
Key documents usually include a<br />
detailed business and owner profile, a<br />
credit report, historical and projected<br />
financial statements, and relevant legal<br />
documents. The specific requirements<br />
may vary depending on the lending<br />
institution.<br />
Q: Can I raise funding for a business<br />
that is only one year old?<br />
Yes, you can secure funding even<br />
if your business is just a year old. In<br />
fact, some financial institutions may<br />
consider businesses that have been<br />
operational for as little as six months.<br />
Q: I have two cheque returns in my<br />
business. Can I still get funding?<br />
Yes, it might still be possible to obtain<br />
funding, provided you can offer a valid<br />
explanation for the cheque returns.<br />
Q: We need short-term funding of<br />
AED 3 million for inventory over four<br />
months. What’s the best approach?<br />
A viable approach would be to secure<br />
short-term funding through financial<br />
institutions by assigning receivables<br />
as collateral.<br />
Q: I own a restaurant in Dubai. How<br />
much loan can I get for expansion?<br />
The Expert<br />
The loan amount you can secure will<br />
depend on various factors, including<br />
your financial health and business history.<br />
One practical option might be to<br />
raise funds against your POS or online<br />
sales, such as those through Noon or<br />
Talabat.<br />
Q: Should I raise funding through<br />
debt or equity?<br />
The choice between debt and equity<br />
financing depends on your business<br />
goals and stage. Debt financing allows<br />
you to retain full ownership but requires<br />
repayment with interest. Equity<br />
financing, on the other hand, provides<br />
capital without the obligation of repayment,<br />
though it dilutes ownership. If<br />
maintaining control is crucial, opt for<br />
debt; if flexibility is more important,<br />
consider equity.<br />
Q: I have a villa in Dubai worth<br />
around AED 10 million but am<br />
unable to get any funding due to<br />
cheque returns.<br />
You can explore raising funds against<br />
your property through a guaranteed<br />
buy-back agreement. The amount could<br />
be approximately 10 times your net<br />
rental income.<br />
Q: I have been working in a media<br />
company in Dubai for 12 years and<br />
now want to start my own business.<br />
How do I raise funding?<br />
To secure funding, you can approach<br />
investors by highlighting your extensive<br />
experience, a strong business model,<br />
and well-prepared financial projections.<br />
Send your queries to<br />
info@financeworld.com<br />
Sep <strong>2024</strong> www.thefinanceworld.com 89
Luxury Living<br />
Source: Ai generated<br />
The Paradigm Shift of<br />
UAE Real Estate<br />
Industry: From Living to<br />
Luxe Living<br />
Where architectural brilliance meets unparalleled<br />
luxury, UAE’s luxury real estate sets new standards<br />
for lavish lifestyles.<br />
A dynamic transformation is taking<br />
place in the UAE. Once celebrated for<br />
its architectural landmarks, the country<br />
is now witnessing a paradigm shift in its<br />
luxury real estate sector. This evolution<br />
goes beyond mere living spaces; it’s about<br />
crafting experiences that redefine opulence.<br />
As discerning clientele seek more than<br />
just square footage and prime locations,<br />
developers and designers are rising to the<br />
challenge, infusing high-quality design<br />
elements that elevate everyday living<br />
to an art form. This article delves into<br />
the fascinating journey of UAE’s luxury<br />
real estate, exploring how innovative<br />
design is reshaping the very concept of<br />
luxury living.<br />
90 www.thefinanceworld.com Sep <strong>2024</strong>
The landscape of luxury real estate<br />
in the UAE has undergone a dramatic<br />
transformation over the past<br />
two decades. What was once a market<br />
focused primarily on spacious properties<br />
in prime locations has evolved into an<br />
ecosystem where every detail contributes<br />
to an elevated lifestyle experience. This<br />
shift is not merely about incorporating<br />
expensive materials or state-of-the-art<br />
technology; it’s about creating living<br />
spaces that resonate with the sophisticated<br />
tastes and diverse needs of a<br />
global elite. Developers are now creating<br />
homes that prioritize experiences over<br />
opulence, focusing on how luxury can be<br />
seamlessly integrated into daily living.<br />
At the forefront of this evolution is the<br />
role of high-quality design. Architects and<br />
interior designers are now key players<br />
in the luxury real estate market, tasked<br />
with translating abstract concepts of<br />
luxury into tangible, livable spaces. The<br />
emphasis has shifted from ostentatious<br />
displays of wealth to a more refined,<br />
holistic approach to luxury living. This<br />
new paradigm considers factors such as<br />
sustainability, wellness, and personalization<br />
as integral components of luxury.<br />
One of the most significant trends in<br />
UAE’s luxury real estate is the integration<br />
of smart home technology. High-end<br />
properties now come equipped with<br />
advanced systems that allow residents<br />
to control everything from lighting and<br />
temperature to security and entertainment<br />
with a simple voice command or<br />
smartphone tap. These technologies are<br />
seamlessly integrated into the design,<br />
enhancing convenience without compromising<br />
aesthetics.<br />
85% of luxury real<br />
estate buyers in the UAE<br />
now prioritize smart<br />
home features.”<br />
Sustainability has also become a hallmark<br />
of luxury living in the UAE. Despite the<br />
region’s challenging climate, developers<br />
are incorporating eco-friendly features<br />
that not only reduce environmental impact<br />
but also add to the prestige of the<br />
property. Green spaces, energy-efficient<br />
systems, and sustainable materials are<br />
now seen as essential elements of luxury<br />
design, appealing to environmentally<br />
conscious high-net-worth individuals.<br />
Additionally, the use of renewable energy<br />
sources like solar panels and water<br />
conservation technologies is gaining<br />
momentum, making sustainability a<br />
key selling point in the luxury market.<br />
Sustainable architecture is not only a<br />
reflection of responsible living but also<br />
a symbol of forward-thinking luxury.<br />
The concept of wellness has taken<br />
center stage in luxury real estate design.<br />
High-end properties now often include<br />
dedicated spaces for fitness, meditation,<br />
and spa treatments. Indoor air quality,<br />
natural lighting, and ergonomic design<br />
are given paramount importance, recognizing<br />
the growing emphasis on health<br />
and well-being among affluent buyers.<br />
Personalization is another key factor<br />
in the new luxury paradigm. Developers<br />
are moving away from one-size-fits-all approaches,<br />
offering buyers the opportunity<br />
to customize their living spaces to reflect<br />
their individual tastes and lifestyles. From<br />
bespoke finishes to modular layouts that<br />
can be adapted to changing needs, the<br />
focus is on creating homes that are as<br />
unique as their owners.<br />
The evolution of luxury living in the UAE<br />
is also reflected in the amenities offered.<br />
Gone are the days when a swimming pool<br />
and a gym were considered sufficient.<br />
Today’s luxury developments boast a<br />
wide array of world-class facilities, from<br />
Michelin-starred restaurants and private<br />
cinemas to art galleries and yacht marinas.<br />
Exclusive wellness centers, rooftop<br />
infinity pools, and personal concierge<br />
services have also become standard<br />
offerings. These amenities are designed<br />
not just as add-ons but as integral parts<br />
of the luxury living experience, providing<br />
residents with a lifestyle of convenience,<br />
exclusivity, and indulgence.<br />
Architecture plays a crucial role in this<br />
new luxury landscape. Iconic designs<br />
that push the boundaries of engineering<br />
and aesthetics are becoming the norm.<br />
Structures that seemed impossible a<br />
few years ago are now realities, offering<br />
residents, not just homes but landmarks<br />
to live in. These architectural marvels<br />
are designed to offer breathtaking<br />
views, ultimate privacy, and a sense of<br />
exclusivity that goes beyond traditional<br />
notions of luxury.<br />
The interior design of luxury properties<br />
has also undergone a significant transformation.<br />
There’s a move towards timeless<br />
elegance, with a focus on high-quality<br />
materials, exquisite craftsmanship,<br />
and bespoke furnishings. The goal is to<br />
create interiors that are not just visually<br />
stunning but also comfortable and functional,<br />
catering to the day-to-day needs<br />
of residents while providing a backdrop<br />
for entertaining and showcasing art<br />
collections.<br />
As the UAE continues to position itself<br />
as a global hub for business and tourism,<br />
its luxury real estate market is evolving<br />
to meet the expectations of an increasingly<br />
diverse and sophisticated clientele.<br />
The focus on high-quality design is not<br />
just about creating beautiful spaces; it’s<br />
about offering a lifestyle that represents<br />
the pinnacle of modern luxury.<br />
The paradigm shift in UAE’s luxury<br />
real estate market represents a broader<br />
change in how we define luxury in the<br />
21st century. It’s no longer just about<br />
extravagance and excess; it’s about<br />
thoughtful design, sustainability, wellness,<br />
and personalization. As developers<br />
and designers continue to push the<br />
boundaries of what’s possible, the UAE<br />
is setting new standards for luxury living,<br />
creating homes that are not just places<br />
to live but gateways to extraordinary<br />
lifestyles. This evolution ensures that<br />
the UAE remains at the forefront of the<br />
global luxury real estate market, offering<br />
unparalleled experiences to those who<br />
seek the very best in life.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 91
Local News<br />
DBS Eyes Dubai Expansion to Boost Middle East Presence<br />
Singapore-based DBS Group Holdings<br />
is set to expand its operations<br />
in Dubai as part of its strategy<br />
to enhance its presence in the Middle<br />
East. At the Dubai FinTech Summit,<br />
CEO Piyush Gupta emphasised the<br />
significant potential for growth, noting<br />
that the bank’s current footprint in<br />
the region is relatively modest. Gupta<br />
highlighted that this presents a valuable<br />
opportunity for DBS to scale its operations.<br />
Dubai’s appeal is growing among<br />
hedge funds and financial firms due to<br />
its business-friendly environment and<br />
attractive tax benefits. Gupta further<br />
remarked that Dubai could function as<br />
a “neutral player in a multipolar world,”<br />
serving as a strategic hub to facilitate<br />
financial flows between Western and<br />
Eastern markets. This expansion aligns<br />
with DBS’s broader regional growth<br />
ambitions.<br />
DMCC Secures 15%<br />
Share of Dubai’s FDI<br />
DUBAI - DMCC, the leading free<br />
zone and Government of Dubai<br />
Authority on commodities trade,<br />
has announced strong performance<br />
for H1 <strong>2024</strong>, with 1,023 new member<br />
companies increasing its total to nearly<br />
25,000. The free zone now represents<br />
15% of Dubai’s foreign direct investment<br />
(FDI), up from 11% last year, and 7%<br />
of the emirate’s GDP. Looking ahead,<br />
DMCC plans to focus on consolidating<br />
major real estate projects in Uptown<br />
Dubai and Jumeirah Lakes Towers (JLT)<br />
and expanding its ecosystems in AI and<br />
Web3. Ahmed bin Sulayem, Executive<br />
Chairman and CEO, emphasised the<br />
significant investment growth and<br />
Dubai’s status as a key global trade<br />
hub. Notable sector growth includes<br />
226 new technology companies and 64<br />
additions to the Crypto Centre, with<br />
159 new energy firms joining DMCC.<br />
UAE Sovereign Fund ADIA Invests $295M in Tech<br />
Firm Flyr<br />
The Abu Dhabi Investment Authority<br />
(ADIA) is among the<br />
investors in Flyr’s recent $295M<br />
capital raise. This includes a $225M<br />
Series D round led by US investment<br />
firm WestCap, with ADIA’s wholly<br />
owned unit, BlackRock, and Streamlined<br />
Ventures also participating. An<br />
additional $70M in credit, led by Vista<br />
Credit Partners, aims to expand Flyr’s<br />
global product offerings. The funds<br />
will help Flyr accelerate its modern<br />
reservation systems, enhance digital<br />
channels, and implement AI-based<br />
decision automation for airlines and<br />
hospitality brands, following a 290%<br />
annualised revenue growth. Flyr has<br />
now raised over $500M in total, with<br />
Dubai-listed Shuaa Capital managed<br />
to substantially cut its<br />
losses in the second quarter<br />
of <strong>2024</strong>. The net loss attributable to<br />
shareholders for the quarter was AED<br />
29.4M ($8M), representing a significant<br />
reduction of around 66% from the AED<br />
87.2M loss recorded in the first quarter.<br />
Over the first half of the year, the company<br />
reported a net loss of AED 117M,<br />
largely due to non-cash impairments<br />
associated with its investments in legacy<br />
assets and associates. According to a<br />
report on the Dubai Financial Market<br />
(DFM) on Wednesday, revenues for<br />
the first half, excluding one-off items,<br />
amounted to AED 50M, down by AED<br />
Series D investors also including South<br />
American airline Avianca. WestCap<br />
Managing Partner Laurence A. Tosi will<br />
join Flyr’s board. ADIA’s recent travel<br />
sector investments include SpiceJet and<br />
a consortium bid for Malaysia Airports<br />
Holdings Berhad.<br />
Shuaa Capital Reduces Q2 <strong>2024</strong> Net Loss to $8M<br />
13M compared to the same period last<br />
year. The cost-to-income ratio showed<br />
improvement, standing at 103% in<br />
the first six months of the year, an<br />
enhancement from the adjusted 111%<br />
recorded in the previous year.<br />
92 www.thefinanceworld.com Sep <strong>2024</strong>
UAE, US, Switzerland, Saudi Arabia, Egypt, UN, AU Joint Statement on Sudan<br />
The delegations from the United<br />
Arab Emirates, United States,<br />
Switzerland, the Kingdom of Saudi<br />
Arabia, Egypt, the United Nations, and<br />
the African Union, gathered in Switzerland,<br />
have issued a joint statement on<br />
Sudan. They commend the Sovereign<br />
Council of Sudan for opening the Adre<br />
border crossing from Chad into North<br />
Darfur for three months. They also<br />
praise the Rapid Support Forces for their<br />
commitment to facilitate humanitarian<br />
Bayanat and Yahsat<br />
Unveil UAE’s First SAR<br />
Satellite<br />
Bayanat AI PLC (ADX: BAYA-<br />
NAT), a leading AI geospatial<br />
solutions provider, and Al Yah<br />
Satellite Communications Company<br />
PJSC (ADX: Yahsat), the UAE’s premier<br />
satellite solutions firm, have<br />
successfully launched the UAE’s first<br />
Low Earth Orbit (LEO) Synthetic<br />
Aperture Radar (SAR) satellite. The<br />
launch, which occurred on August<br />
16, <strong>2024</strong>, was executed in partnership<br />
with ICEYE, a leader in SAR satellite<br />
technology. The satellite, developed by<br />
Bayanat and Yahsat, was successfully<br />
deployed via SpaceX’s Transporter 11<br />
rideshare mission from Vandenberg<br />
Space Force Base in California, with<br />
communication now established and<br />
initial operations underway. This<br />
milestone enhances Earth Observation<br />
capabilities in the region, marking<br />
the beginning of a comprehensive<br />
SAR constellation that will provide<br />
high-resolution, persistent monitoring.<br />
deliveries, especially through the Dabbah<br />
route to Darfur and Kordofan, and for<br />
ensuring the protection of humanitarian<br />
staff. These measures will allow<br />
essential aid to address famine and<br />
food insecurity in Darfur and beyond.<br />
The parties must work with humanitarian<br />
partners to ensure these routes<br />
are operationalised with full access.<br />
The international community and aid<br />
organisations must act promptly to<br />
support the most vulnerable.<br />
Dubai’s Salik Reports Lower Q2 Net Profit<br />
Dubai’s toll operator, Salik, has<br />
announced a net profit of AED<br />
267.5M ($72.8M) for the period,<br />
which represents a 2% decrease compared<br />
to the previous year. This figure<br />
was slightly below the average forecast<br />
of AED 271M projected by analysts, according<br />
to data from LSEG. In the second<br />
quarter, Salik reported a revenue of AED<br />
532.7M, marking a 3% increase from the<br />
The Ministry of <strong>Finance</strong> (MoF) has<br />
launched the “Digital Consultation”<br />
initiative to advance the Zero Government<br />
Bureaucracy Programme, aimed<br />
at improving living standards and fostering<br />
a business-friendly environment in the<br />
UAE. This initiative invites customers to<br />
submit their opinions and ideas through<br />
the UAE Government portal, focusing<br />
on enhancing the efficiency, quality, and<br />
flexibility of MoF services and simplifying<br />
procedures. The initiative is designed<br />
to increase customer participation in<br />
decision-making and integrate innovative<br />
ideas to streamline government processes.<br />
As part of this effort, the Ministry<br />
has introduced the “Zero Bureaucracy”<br />
questionnaire to gather feedback from<br />
same quarter in the previous year. For<br />
the first half of <strong>2024</strong>, the company’s net<br />
profit stood at AED 598.6M, showing no<br />
growth compared to the same period last<br />
year. Despite these results, the board<br />
of directors has proposed a dividend of<br />
7.263 fils per share, aiming to provide a<br />
return to shareholders in the face of the<br />
slight profit decline.<br />
MoF Launches ‘Digital Consultation’ to Advance<br />
Zero Bureaucracy Programme<br />
all customer groups for service design<br />
and development. Younis Haji Al Khoori,<br />
Under-Secretary of the MoF, emphasized<br />
that this initiative will help the Ministry<br />
better understand customer needs and<br />
improve transaction experiences.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 93
Investment<br />
Source: Ai generated<br />
The Future of Investment<br />
in the Arab <strong>World</strong>:<br />
Strategic Approaches<br />
for a New Era<br />
Exploring how the Arab world’s investment strategies are<br />
evolving with economic and technological shifts.<br />
As the Arab world undergoes a profound<br />
transformation driven by economic diversification,<br />
technological innovation, and<br />
a shift toward sustainability, the region’s<br />
investment strategies are evolving to<br />
meet the demands of this new era. With<br />
ambitious plans like Saudi Arabia’s Vision<br />
2030 and the UAE’s Dubai 2040 Urban<br />
Master Plan, key countries are pioneering<br />
new investment approaches that focus<br />
on emerging sectors such as renewable<br />
energy, AI, fintech, and sustainable real<br />
estate to reduce dependence on oil. This<br />
article explores how these dynamic changes<br />
are reshaping the investment landscape,<br />
offering unparalleled opportunities for<br />
growth and innovation.<br />
94 www.thefinanceworld.com Sep <strong>2024</strong>
The economic powerhouses of the<br />
Arab world—such as the UAE, Saudi<br />
Arabia, Qatar, and Kuwait—embark<br />
on ambitious economic diversification<br />
plans, and there is a growing emphasis on<br />
innovative investment strategies for longterm<br />
sustainability in sectors where the<br />
future lies. These countries are pioneering<br />
new approaches by investing in sectors<br />
like renewable energy, new technology,<br />
healthcare, education, AI, and tourism.<br />
For example, Saudi Arabia’s Vision 2030<br />
plan and the UAE’s Dubai 2040 Urban<br />
Master Plan are not only driving traditional<br />
investments in infrastructure and<br />
real estate. Still, they are also fostering<br />
growth in emerging sectors like fintech,<br />
artificial intelligence (AI), and digital<br />
services. This includes the development<br />
of world-class infrastructure in communication,<br />
connectivity, safety, security,<br />
and high-quality living conditions in the<br />
country. Creating meaningfully different<br />
business-free zones for various sectors,<br />
like DIFC for financial, investment, and<br />
banking services, is one such step in<br />
this direction.<br />
Technological advancements, particularly<br />
in fintech, are revolutionizing the<br />
investment landscape across the Arab<br />
world. The adoption of AI, blockchain, and<br />
other digital technologies is transforming<br />
how financial services are delivered,<br />
increasing efficiency, transparency, and<br />
accessibility. Countries like Bahrain and<br />
the UAE have established themselves as<br />
regional fintech hubs, offering regulatory<br />
frameworks that support innovation.<br />
The impact of these technologies is vast,<br />
from AI-powered investment algorithms<br />
offering personalized asset management<br />
solutions to blockchain technologies<br />
enhancing security in cross-border<br />
transactions. These developments are<br />
setting new standards for the financial<br />
sector, attracting global investors, and<br />
accelerating growth. Providing long-term<br />
residence visas to such talents is one<br />
enabler in this direction.<br />
The real estate sector remains a<br />
cornerstone of investment in the Arab<br />
world, but the focus is shifting toward<br />
smart technology and sustainable development.<br />
There is a growing trend toward<br />
integrating green building practices,<br />
energy-efficient solutions, and smart<br />
technology into new developments.<br />
Cities like Dubai, Abu Dhabi, and Riyadh<br />
are at the forefront, investing heavily in<br />
sustainable infrastructure projects that<br />
align with global environmental standards.<br />
These investments not only promise<br />
significant returns but also contribute to<br />
the region’s environmental sustainability<br />
goals, creating a new paradigm in real<br />
estate investment for both commercial<br />
and residential properties.<br />
CA Rajesh Kumar Somani,<br />
President, ICAI Dubai Chapter<br />
In this rapidly changing environment,<br />
wealth management strategies are also<br />
evolving. Traditional approaches are<br />
giving way to more sophisticated models<br />
that incorporate diverse asset classes,<br />
hedge against global volatility, and align<br />
with the shifting economic priorities of<br />
the region. High-net-worth individuals<br />
(HNWIs) and institutional investors are<br />
increasingly looking at impact investing,<br />
which not only generates financial returns<br />
but also contributes to social and<br />
environmental causes. These strategies<br />
reflect a broader trend toward responsible<br />
investing and are gaining traction among<br />
the region’s wealthy and influential, as<br />
well as global family offices. They provide<br />
a simple structure and clear ownership<br />
for HNWIs worldwide with world-class<br />
living standards.<br />
In conclusion, the changing investment<br />
landscape in the Arab world presents new<br />
opportunities and world-class living in a<br />
safe and secure environment. As the Arab<br />
world continues to evolve, investment<br />
strategies will undoubtedly continue<br />
to innovate, setting a new standard to<br />
attract the global investment community.<br />
This region is well-positioned for high<br />
growth with ample availability of capital<br />
for infrastructure and new initiatives.<br />
The region is leveraging<br />
innovation, technology,<br />
and sustainable<br />
practices to redefine its<br />
business opportunities<br />
and financial sector,<br />
offering investors a<br />
dynamic environment<br />
ripe with potential in<br />
real estate, education,<br />
medical, startups, and<br />
modern tourism.”<br />
Encouraging young tech startups with<br />
full support and agile conditions is a very<br />
appropriate policy move by the leadership<br />
of the country. The entertainment sector<br />
provides another significant opportunity<br />
with growing tourism in the region. The<br />
ease of movement through visas on arrival<br />
in many cases and long-term visas<br />
like Golden and Retirement Visas will<br />
further encourage the global investment<br />
community to look at AI, education,<br />
medical, tourism, and entertainment<br />
as high-growth sectors for investment.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 95
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UAE Banking News<br />
UAE Banks Grant<br />
$13.48B Credit, Up<br />
4.5% in 5 Months<br />
The Central Bank of the UAE<br />
(CBUAE) has imposed an administrative<br />
sanction on a UAEbased<br />
insurance company, following<br />
an examination in April 2022 that<br />
uncovered deficiencies in the company’s<br />
regulatory policies, specifically<br />
regarding the collection of personal<br />
data for insurance policies. This action,<br />
taken under Article 33 (2) (a) of<br />
Federal Decree-Law No. (48) of 2023<br />
on the Regulation of Insurance Activities,<br />
resulted in the CBUAE issuing<br />
a warning to the insurance firm and<br />
directing it to cease the non-compliant<br />
activity. The CBUAE, committed to upholding<br />
the transparency and integrity<br />
of the insurance sector, ensures that<br />
all insurance companies, their owners,<br />
and staff comply with UAE laws and<br />
regulations. Notably, the identity of<br />
the sanctioned company has not been<br />
disclosed.<br />
Etihad and Wio Bank Partner for Savings-<br />
Focused Loyalty Rewards<br />
Wio Bank has partnered with<br />
Etihad Guest to launch an<br />
innovative loyalty programme<br />
for Wio Personal customers. For the<br />
first time, customers can earn Etihad<br />
Guest Miles for every AED deposited<br />
into their Saving Spaces, without<br />
the need for a payment card. This<br />
collaboration highlights Wio Bank’s<br />
dedication to enhancing customer<br />
experiences by offering rewards that<br />
provide real-world benefits. Customers<br />
can earn 1 Guest Mile for every AED<br />
1 deposited into a 12-month fixed<br />
Saving Space, presenting exceptional<br />
value in both the banking and travel<br />
sectors. Moreover, miles are credited<br />
within days of the deposit, allowing<br />
for immediate travel planning. This<br />
groundbreaking feature sets a new<br />
standard in the market, blending savings<br />
with instant, tangible rewards for<br />
customers.<br />
ICAEW and UAE Banks Federation Partner on<br />
Digital Assets<br />
The Institute of Chartered Accountants<br />
in England and Wales<br />
(ICAEW) has partnered with<br />
the UAE Banks Federation (UBF) to<br />
guide companies through the rapidly<br />
evolving digital assets landscape. This<br />
collaboration coincides with predictions<br />
that the digital assets market will<br />
surpass $80B by <strong>2024</strong> and aligns with<br />
the UAE’s advanced pilot of Central<br />
Bank Digital Currencies (CBDCs).<br />
CBDCs, digital forms of sovereign<br />
currency issued and regulated by<br />
central banks, are designed to complement<br />
traditional currencies and offer<br />
secure, efficient transactions. As one<br />
of only 36 countries piloting CBDCs,<br />
the UAE is at the forefront of financial<br />
digitisation. The partnership included<br />
a panel discussion on digital currencies,<br />
emphasising the transformative<br />
potential of CBDCs while also addressing<br />
cybersecurity risks. Panelists<br />
urged organisations to enhance their<br />
cybersecurity measures to counteract<br />
evolving threats and protect sensitive<br />
financial data.<br />
Emirates NBD, Japanese Bank Eye Majority Stake in Yes Bank<br />
The State Bank of India (SBI), the<br />
largest lender in the country,<br />
plans to finalise a deal by the<br />
end of March for the sale of its 24%<br />
stake in Yes Bank, valued at 184.2B<br />
rupees ($2.2B). Sources indicate that<br />
Japanese lender Sumitomo Mitsui<br />
Banking Corp and Dubai-based Emirates<br />
NBD are in advanced discussions<br />
to acquire a majority stake in Yes<br />
Bank. Sumitomo Mitsui, a subsidiary<br />
of Japan’s second-largest bank, is<br />
among the bidders seeking a 51% stake<br />
for substantial control. The Reserve<br />
Bank of India (RBI) has reportedly<br />
given preliminary approval, with due<br />
diligence underway. Yes Bank, previously<br />
restructured by the RBI in<br />
March 2020, has various stakeholders,<br />
including ICICI Bank, HDFC Bank,<br />
and two private equity funds. Bidders<br />
are negotiating for a relaxation of the<br />
regulatory requirement for promoter<br />
shareholding.<br />
98 www.thefinanceworld.com Sep <strong>2024</strong>
UAE Banks Introduce Short-Term Loans for Blue-Collar Workers’ Emergencies<br />
Banks in the UAE are increasingly<br />
making their mark in the microfinance<br />
sector by offering shortterm<br />
loans tailored specifically for<br />
blue-collar workers, a demographic<br />
that traditionally might not have been<br />
considered for such credit. The demand<br />
for these loans is substantial, as they<br />
provide much-needed financial relief to<br />
borrowers facing urgent or unexpected<br />
expenses. RAKBank, for instance, has<br />
been particularly proactive in this area,<br />
extending loans to individuals with<br />
monthly salaries ranging from AED<br />
750 to AED 4,500. According to Raheel<br />
Ahmed, CEO of RAKBank, customers can<br />
borrow up to 50% of their salary, with a<br />
maximum loan limit set at AED 1,500.<br />
The borrowed funds are directly credited<br />
to the customer’s wage card, ensuring<br />
quick access to money, with repayment<br />
required upon the next salary deposit to<br />
the individual’s account.<br />
UAE Central Bank’s<br />
Gold Reserves Hit<br />
$5.6B in May <strong>2024</strong><br />
The Central Bank of the UAE<br />
(CBUAE) has reported that its gold<br />
reserves reached AED 20.619B by<br />
the end of May <strong>2024</strong>. This figure marks<br />
a significant 19.7 per cent increase from<br />
AED 17.219B recorded in May 2023. The<br />
CBUAE’s Monthly Statistical Bulletin –<br />
Banking & Monetary Statistics for May<br />
<strong>2024</strong> reveals a 1.3 per cent month-onmonth<br />
rise in gold reserves from AED<br />
20.36B in April <strong>2024</strong>. This steady growth<br />
reflects the UAE’s expanding gold reserves<br />
over recent years. At the close of 2020,<br />
the central bank’s gold holdings stood<br />
at AED 12.862B, a considerable increase<br />
from AED 4.44B at the end of 2019. Back<br />
in 2018, the reserves were valued at AED<br />
1.134B, highlighting the substantial growth<br />
in the subsequent years.<br />
UAE IPOs Surge in Q2 <strong>2024</strong>, Raising $890M: Report<br />
The UAE’s capital markets experienced<br />
a notable boost in the<br />
second quarter of <strong>2024</strong>, with<br />
Initial Public Offerings (IPOs) raising<br />
$890M, according to a PwC Middle<br />
East report titled “IPO+ Watch.” The<br />
report highlights two significant IPOs:<br />
Alef Education, which raised $515M<br />
on the Abu Dhabi Securities Exchange<br />
(ADX), and Spinneys, which garnered<br />
$375M on the Dubai Financial Market<br />
DP <strong>World</strong> Trade <strong>Finance</strong>, the<br />
financial arm of Dubai’s DP<br />
<strong>World</strong>, has partnered with the<br />
Bank of Bahrain and Kuwait (BBK) to<br />
merge logistics and financial services,<br />
helping businesses improve their supply<br />
chain operations. This strategic<br />
alliance aims to expand BBK’s global<br />
presence in Bahrain, Kuwait, the<br />
UAE, India, and Turkey, while offering<br />
trade finance solutions worldwide,<br />
showcasing the bank’s commitment<br />
to innovation in financial services.<br />
(DFM). These IPOs are among the<br />
largest in the UAE this year. While the<br />
UAE’s IPO activity was strong, Saudi<br />
Arabia dominated the GCC region,<br />
raising $1.6B, representing 61% of<br />
the region’s total IPO activity in Q2<br />
<strong>2024</strong>. Despite some volatility in stock<br />
exchange indices and oil prices, the<br />
GCC’s IPO market remained resilient,<br />
with a diverse range of sectors participating<br />
in the offerings.<br />
DP <strong>World</strong> Trade <strong>Finance</strong>, BBK Integrate Services<br />
to Boost Regional Trade<br />
Sinan Ozcan, senior executive officer<br />
and board member of DP <strong>World</strong> Trade<br />
<strong>Finance</strong>, stated that the partnership<br />
aligns with their goal of addressing<br />
the growing trade finance gap, which<br />
hampers global business growth. The<br />
collaboration will utilise BBK’s robust<br />
banking solutions and DP <strong>World</strong>’s<br />
logistics network to provide transparency<br />
and operational efficiency,<br />
benefiting businesses across the region<br />
with seamless financial solutions.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 99
Banking<br />
Source: Ai generated<br />
Investing in a Greener Tomorrow: Sustainability at the Core of Global <strong>Finance</strong>.<br />
Green Banking: How<br />
Sustainability is<br />
Shaping the Future of<br />
<strong>Finance</strong> in the Arab<br />
<strong>World</strong><br />
How Green Banking is transforming the<br />
future of finance.<br />
Green banking is gaining traction in the<br />
Arab world as financial institutions increasingly<br />
prioritize sustainability in their<br />
operations and investment strategies. This<br />
approach integrates environmental and social<br />
considerations into financial services,<br />
promoting sustainable development and<br />
reducing the carbon footprint of the financial<br />
sector. Arab banks are beginning to<br />
embrace green banking principles, driven<br />
by the growing awareness of the need for<br />
responsible banking practices. However,<br />
they face challenges such as regulatory<br />
constraints, limited awareness, and the<br />
need for substantial investment in green<br />
technologies. Despite these hurdles, the<br />
adoption of green banking has the potential<br />
to significantly impact the region’s<br />
financial landscape, fostering long-term<br />
environmental and economic benefits.<br />
100 www.thefinanceworld.com Sep <strong>2024</strong>
Green banking is still a relatively<br />
new concept in the Arab world,<br />
but it is rapidly gaining traction<br />
as governments and financial institutions<br />
commit to sustainable development goals.<br />
Countries like the UAE and Saudi Arabia<br />
are leading the way, with major banks<br />
launching green finance initiatives and<br />
adopting environmentally responsible<br />
practices. For example, the UAE’s First<br />
Abu Dhabi Bank (FAB) has introduced a<br />
Green Bond Program aimed at financing<br />
projects that contribute to environmental<br />
sustainability, such as renewable energy<br />
and green buildings. This shift towards<br />
green banking reflects a broader global<br />
trend and aligns with the region’s commitment<br />
to sustainable economic growth.<br />
Regulatory Support and Policy<br />
Frameworks<br />
The advancement of green banking in<br />
the Arab world is being supported by<br />
regulatory bodies that are introducing<br />
policies and guidelines to promote sustainability<br />
in the financial sector. The<br />
Central Bank of the UAE, for instance, has<br />
developed a framework for sustainable<br />
finance, encouraging banks to integrate<br />
environmental, social, and governance<br />
(ESG) criteria into their lending and<br />
investment decisions. Additionally,<br />
the Saudi Arabian Monetary Authority<br />
(SAMA) is working on regulations to<br />
support green finance, recognizing the<br />
role of financial institutions in driving<br />
the transition to a low-carbon economy.<br />
These regulatory efforts are essential in<br />
creating an enabling environment for the<br />
growth of green banking in the region.<br />
Green Bonds and Sustainable Financing<br />
Green bonds are becoming a popular tool<br />
for financing environmentally friendly<br />
projects in the Arab world. These bonds<br />
are used to raise capital specifically for<br />
projects that have positive environmental<br />
outcomes, such as clean energy, water<br />
conservation, and sustainable agriculture.<br />
The Saudi Public Investment Fund (PIF)<br />
and the UAE’s Masdar are among the<br />
leading institutions issuing green bonds<br />
to fund large-scale renewable energy<br />
projects. These initiatives are not only<br />
helping to finance the region’s transition<br />
to a more sustainable economy but are<br />
also attracting global investors who are<br />
increasingly looking for green investment<br />
opportunities.<br />
Challenges in Implementing Green<br />
Banking<br />
Despite the growing interest in green<br />
banking, financial institutions in the<br />
Arab world face several challenges in<br />
fully integrating sustainability into their<br />
operations. One of the key challenges<br />
is the lack of standardized metrics and<br />
reporting frameworks for ESG criteria,<br />
making it difficult for banks to assess the<br />
environmental impact of their investments<br />
accurately. Additionally, there is a need<br />
for greater awareness and education<br />
about green banking among both financial<br />
professionals and consumers. To address<br />
these challenges, some banks are partnering<br />
with international organizations<br />
and adopting global best practices to<br />
improve their sustainability reporting<br />
and risk management processes.<br />
The Role of Islamic <strong>Finance</strong> in Promoting<br />
Green Banking<br />
Islamic finance, with its emphasis on<br />
ethical and socially responsible investments,<br />
is well-positioned to support the<br />
growth of green banking in the Arab<br />
world. Sharia-compliant financial products,<br />
such as Sukuk (Islamic bonds), can<br />
be structured to fund environmentally<br />
sustainable projects, aligning with both<br />
religious principles and green banking<br />
objectives. For example, Dubai Islamic<br />
Bank has launched a Green Sukuk to<br />
finance projects in renewable energy<br />
and energy efficiency. The integration<br />
of Islamic finance principles with green<br />
banking is helping to attract a broader<br />
range of investors and support the region’s<br />
sustainability goals.<br />
Corporate Social Responsibility<br />
(CSR) and Green Banking<br />
Corporate social responsibility (CSR) is<br />
playing a significant role in the adoption<br />
of green banking practices in the Arab<br />
world. Banks are increasingly incorporating<br />
CSR strategies that focus on<br />
environmental sustainability, such as<br />
reducing their carbon footprint, supporting<br />
community-based environmental<br />
initiatives, and offering green products to<br />
their customers. For instance, National<br />
Bank of Kuwait (NBK) has implemented<br />
several CSR initiatives that align with<br />
its green banking strategy, including<br />
energy-efficient branch operations and<br />
partnerships with local environmental<br />
organizations. These efforts are not<br />
Green banking is<br />
not just a trend; it’s<br />
a commitment to a<br />
sustainable future where<br />
finance serves both<br />
people and the planet.”<br />
only enhancing the banks’ reputations<br />
but are also contributing to the overall<br />
sustainability of the region.<br />
Future Outlook: Opportunities for<br />
Growth<br />
The future of green banking in the Arab<br />
world looks promising, with increasing<br />
awareness of the need for sustainable<br />
finance and the continued support of<br />
regulatory bodies. The growth of green<br />
banking presents significant opportunities<br />
for financial institutions to innovate and<br />
differentiate themselves in a competitive<br />
market. As more banks adopt green banking<br />
practices and expand their portfolio of<br />
sustainable financial products, the Arab<br />
world is poised to become a leader in the<br />
global movement towards sustainable<br />
finance. The success of green banking<br />
in the region will depend on continued<br />
collaboration between banks, regulators,<br />
and other stakeholders to overcome<br />
challenges and drive meaningful change.<br />
Green banking is shaping the future<br />
of finance in the Arab world, offering<br />
a path towards a more sustainable and<br />
resilient financial system. By embracing<br />
green finance initiatives, adopting ESG<br />
criteria, and leveraging the principles<br />
of Islamic finance, banks in the region<br />
are playing a crucial role in supporting<br />
environmental sustainability and economic<br />
diversification. As the demand for<br />
sustainable finance grows, green banking<br />
will continue to evolve, providing new<br />
opportunities for innovation and growth<br />
in the Arab financial sector.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 101
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Neo Banking<br />
Source: Ai generated<br />
The Fusion of Tradition and Technology: Neo Banks Redefining the Financial Landscape.<br />
The Rise of Neo<br />
Banking: Disrupting<br />
Traditional <strong>Finance</strong> in<br />
the New Arab <strong>World</strong><br />
How Neo Banks are leading the digital shift<br />
while revolutionizing the landscape of finance.<br />
The financial landscape in the Arab world<br />
is experiencing a significant shift with the<br />
rise of neo banks, or digital-only banks.<br />
These innovative institutions challenge<br />
traditional banking models by offering<br />
a fully digital experience, without the<br />
need for physical branches. Neo banks<br />
are gaining popularity, especially among<br />
the younger, tech-savvy population, who<br />
seek more convenient, personalized, and<br />
cost-effective solutions. Their rise is pushing<br />
traditional banks to rethink their strategies,<br />
invest in digital transformation,<br />
and enhance their online services to stay<br />
competitive. As neo banks continue to<br />
disrupt the financial sector, this article<br />
explores their growing influence in the<br />
Arab world, their impact on traditional<br />
banking, and the future of this dynamic<br />
change in finance.<br />
104 www.thefinanceworld.com Sep <strong>2024</strong>
Neo banks are digital banks that<br />
operate entirely online, without<br />
any physical branches. They leverage<br />
technology to offer a wide range of<br />
financial services through mobile apps<br />
and web platforms, providing customers<br />
with a seamless and efficient banking<br />
experience. Unlike traditional banks,<br />
neo banks are built on modern digital<br />
infrastructure, allowing them to offer<br />
lower fees, faster services, and more<br />
innovative features. In the Arab world,<br />
neo banks are rapidly gaining popularity,<br />
with several players entering the market<br />
to cater to the growing demand for digital<br />
financial services.<br />
Key Players in the Arab <strong>World</strong><br />
Several neo banks have emerged in the<br />
Arab world, each offering unique services<br />
tailored to the needs of the region’s consumers.<br />
For example, YAP in the UAE is<br />
one of the first independent neo banks<br />
in the country, providing customers with<br />
features such as real-time notifications,<br />
spending analytics, and financial planning<br />
tools. In Saudi Arabia, STC Pay, a<br />
subsidiary of Saudi Telecom Company,<br />
has evolved into a leading digital wallet<br />
service, offering seamless money transfers,<br />
bill payments, and more.<br />
These neo banks are disrupting the<br />
traditional banking sector by offering<br />
innovative services that appeal to the<br />
tech-savvy youth and unbanked populations.<br />
As technology and financial<br />
services continue to converge, these<br />
digital-first banks are reshaping how<br />
financial transactions are conducted in<br />
the region, driving financial inclusion<br />
and enhancing customer experience.<br />
Additionally, neo banks like Jogo in<br />
Egypt and Kiva in Jordan are also making<br />
their mark by focusing on specific<br />
regional needs, such as microloans and<br />
digital savings accounts. These players<br />
are not only expanding financial access<br />
but also pushing the envelope in digital<br />
banking, fostering a more competitive<br />
and dynamic financial ecosystem.<br />
The Impact on Traditional Banks<br />
The rise of neo banks is challenging traditional<br />
banks in the Arab world, forcing<br />
them to rethink their business models and<br />
embrace digital transformation. Traditional<br />
banks are increasingly adopting digital<br />
strategies to compete with neo banks,<br />
such as launching their own digital-only<br />
subsidiaries or enhancing their mobile<br />
banking apps. For instance, Emirates<br />
NBD has introduced Liv., a digital bank<br />
aimed at millennials, offering services like<br />
instant account opening, budgeting tools,<br />
and lifestyle offers. These efforts reflect<br />
the broader trend of digital disruption in<br />
the banking sector, as traditional banks<br />
strive to remain relevant in an increasingly<br />
digital world.<br />
Regulatory Environment and<br />
Challenges<br />
The growth of neo banks in the Arab world<br />
is supported by a progressive regulatory<br />
environment that encourages innovation<br />
in the financial sector. Regulatory bodies<br />
in countries like the UAE and Saudi<br />
Arabia have introduced frameworks that<br />
enable the establishment and operation<br />
of neo banks, while ensuring consumer<br />
protection and financial stability. For<br />
instance, the UAE’s Central Bank has<br />
launched the Fintech 2020 strategy, which<br />
aims to foster a more innovative and<br />
competitive financial sector by promoting<br />
digital banking solutions and financial<br />
technology. Similarly, Saudi Arabia’s Saudi<br />
Arabian Monetary Authority (SAMA) has<br />
established a regulatory sandbox to test<br />
and scale new financial technologies in<br />
a controlled environment.<br />
However, challenges remain as neo<br />
banks navigate this evolving landscape.<br />
Building consumer trust is a significant<br />
hurdle, as many customers are still accustomed<br />
to traditional banking institutions.<br />
Neo banks must demonstrate reliability<br />
and security to win over hesitant users.<br />
The Role of Technology in Neo Banking<br />
Technology is at the core of neo banking,<br />
enabling these digital-only banks to offer<br />
innovative financial services that cater to<br />
the needs of modern consumers. Artificial<br />
intelligence (AI), machine learning, and<br />
big data analytics are some of the key<br />
technologies driving the growth of neo<br />
banks. These technologies allow neo<br />
banks to offer personalized financial<br />
advice, detect fraud in real-time, and<br />
automate routine banking processes. In<br />
the Arab world, neo banks are leveraging<br />
these technologies to provide a more<br />
efficient and customer-centric banking<br />
experience, positioning themselves as<br />
the future of finance in the region.<br />
The Future of Neo Banking in the<br />
Arab <strong>World</strong><br />
The future of neo banking in the Arab<br />
world looks promising, with increasing<br />
Neo banking is more<br />
than just a digital shift;<br />
it’s a reimagining of<br />
what banking can be<br />
in a connected world,<br />
where convenience,<br />
personalization, and<br />
innovation lead the way”<br />
demand for digital financial services<br />
and continued support from regulatory<br />
authorities. As more consumers embrace<br />
digital banking, neo banks are expected to<br />
expand their offerings, including investment<br />
products, insurance, and lending<br />
services. The competition between neo<br />
banks and traditional banks will likely<br />
intensify, leading to more innovation<br />
and improved services for consumers.<br />
Additionally, the rise of neo banking is<br />
expected to drive financial inclusion in<br />
the region, providing access to banking<br />
services for unbanked and underbanked<br />
populations.<br />
Neo banking is disrupting traditional<br />
finance in the Arab world, offering a new<br />
way of banking that is digital, convenient,<br />
and customer-focused. As these digital-only<br />
banks continue to grow, they are<br />
reshaping the financial landscape in the<br />
region, challenging traditional banks to<br />
innovate and adapt. With strong regulatory<br />
support and a tech-savvy population, the<br />
Arab world is poised to become a hub<br />
for neo banking, driving the future of<br />
finance in the region. The continued rise<br />
of neo banks will not only enhance the<br />
banking experience for consumers but<br />
also contribute to the region’s economic<br />
growth and financial inclusion.<br />
Sep <strong>2024</strong> www.thefinanceworld.com 105
Travel News<br />
Qatar’s Summer Tourism Campaign Boosts Visitor Numbers<br />
This summer, Qatar has witnessed<br />
a notable increase in tourists<br />
from the GCC and other regions,<br />
driven by effective marketing strategies,<br />
appealing promotions, and a diverse<br />
range of activities tailored to various<br />
traveller preferences, according to industry<br />
data and experts. Qatar’s tourism<br />
efforts have proven successful, with<br />
over 1.6 million international visitors in<br />
the first four months of <strong>2024</strong> and more<br />
than 2.6 million by the six-month mark,<br />
significantly boosting the leisure travel<br />
sector. Hotel and apartment occupancy<br />
rates have risen across almost all categories.<br />
The ‘Your Summer Starts Here’<br />
campaign has been pivotal in positioning<br />
Qatar as a leading summer destination,<br />
particularly targeting GCC countries and<br />
Asia. The campaign highlights Qatar’s<br />
attractions, offers exclusive deals, and<br />
enhances the visitor experience, featuring<br />
activities like cultural events, shopping,<br />
and a Dates Exhibition, which showcase<br />
Qatari heritage.<br />
Saudi: AROYA Cruises<br />
Secures Deal with<br />
Sawani<br />
AROYA Cruises, a subsidiary of<br />
Cruise Saudi backed by the Saudi<br />
Public Investment Fund, has signed<br />
a memorandum of understanding (MoU)<br />
with Sawani Company to introduce Noug<br />
and Nougelato camel milk products on<br />
its ships. This strategic partnership aims<br />
to boost the Kingdom’s camel milk sector<br />
by enhancing the guest experience with<br />
premium products inspired by Saudi<br />
heritage. Sawani plans to showcase<br />
high-quality Saudi camel dairy products,<br />
enriching dining experiences on board<br />
while expanding into both domestic and<br />
global markets. Lars Clasen, CEO of Cruise<br />
Saudi, stated that this collaboration aligns<br />
perfectly with AROYA Cruises’ vision of<br />
presenting Saudi Arabia’s finest to the<br />
world. Meanwhile, Ahmed Gamal Al-Din,<br />
CEO of Sawani, expressed excitement<br />
about sharing their camel milk products<br />
internationally, marking a significant step<br />
in promoting Saudi culinary traditions and<br />
boosting global interest in camel dairy.<br />
MENA Business Travel: Mobile, Car Rentals,<br />
Regional Destinations<br />
A<br />
new study conducted by Tumodo,<br />
an online business travel<br />
platform, and Admitad, a partnership<br />
marketing platform, reveals<br />
notable shifts in business travel trends<br />
across the Middle East and North Africa<br />
(MENA) for <strong>2024</strong>. Analysing over<br />
500,000 travel transactions from Q1<br />
2022 to Q1 <strong>2024</strong>, the report shows a<br />
rise in car rentals, changing destination<br />
preferences, and a notable shift<br />
towards mobile bookings. The average<br />
price of airline tickets within MENA has<br />
reached $205 due to seasonal inflation,<br />
while economy class fares from MENA<br />
to Europe, Asia, and America average<br />
$510, with business class tickets reaching<br />
$2084. Business travel tickets are<br />
predominantly economy class (88%),<br />
with business class at 10% and first<br />
class at 2%. Car rentals during business<br />
trips have increased by 17% compared<br />
to 2023. Pakistan, Kuwait, and Saudi<br />
Arabia are highlighted as leading destinations<br />
for travellers from Dubai, with<br />
Saudi Arabia and the UAE being major<br />
destinations for Pakistani workers.<br />
Amwaj Waterfront Emerges as Top Saudi<br />
Tourist Destination<br />
The Amwaj waterfront in Saudi<br />
Arabia’s Jazan region is a prime<br />
destination for those who enjoy<br />
scenic views, breathtaking sunsets, and<br />
the region’s pleasant climate. Its central<br />
location, with easy access to city markets<br />
and ample parking over 80,000 sq m,<br />
has made Jizan’s central beach one of<br />
the kingdom’s largest beachfront parks<br />
and a key investment area, covering<br />
approximately 1 million sq m. The Jizan<br />
waterfront features six recreational zones,<br />
extensive green spaces of 350,000 sq m,<br />
plazas, event venues, and playgrounds.<br />
It includes a 2,600-metre-long, 30-metrewide<br />
seaside promenade and the cultural<br />
street, a central hub of the waterfront.<br />
Recently, the Jizan Municipality has<br />
focused on enhancing coastal areas and<br />
localities, establishing numerous parks,<br />
playgrounds, walkways, and various<br />
tourist and sports facilities. This effort<br />
has led to 209 parks, 14 seafronts, 198<br />
sports fields, and 96 public walking paths,<br />
showcasing a dedication to improving the<br />
region’s recreational offerings.<br />
106 www.thefinanceworld.com Sep <strong>2024</strong>
Al Raha Beach Hotel Becomes Abu Dhabi’s Leading Urban Resort<br />
Nestled on the Arabian Gulf’s golden<br />
shores, Al Raha Beach Hotel has<br />
emerged as Abu Dhabi’s premier<br />
urban resort. The property boasts 278<br />
spacious rooms, suites, and villas,<br />
blending urban sophistication with resort<br />
relaxation. “We are excited to relaunch<br />
Al Raha Beach Hotel as Abu Dhabi’s<br />
top urban resort,” said Kamal Zayati,<br />
General Manager. “Our goal is to offer<br />
an unmatched experience combining city<br />
vibrancy with beachfront tranquillity.”<br />
Each accommodation features a private<br />
balcony with stunning Gulf views, while<br />
the Royal Suite, a luxurious 400 sqm space,<br />
includes three bedrooms, a gourmet<br />
kitchen, and expansive living areas. The<br />
resort also offers a cutting-edge spa,<br />
seven restaurants, two infinity pools, a<br />
water sports centre, and a private marina,<br />
with dedicated facilities for families and<br />
personalised wellness programmes.<br />
Global Visitors Enjoy<br />
‘Summer of a Lifetime’<br />
in Abu Dhabi<br />
Twenty people, dubbed ‘Summers,’<br />
from across the globe experienced<br />
Abu Dhabi for the first<br />
time as part of the ‘One Summer Isn’t<br />
Enough’ initiative by Experience Abu<br />
Dhabi. Over three days, they enjoyed<br />
a range of activities guided by the 101<br />
Abu Dhabi