December 2024

News, Reviews and Analysis.

News, Reviews Reviews and andAnalysis.

Analysis.

News,

December Issue 2024

May - June Issue September Issue2021 2023

Unemployment Insurance and Emiratisation Law a Landmark Step to Boost Business in UAE

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Celebrating Leadership and Innovation at the Aviation Annual Gala Evening 2024

Middle East News

Middle East News

Logistics

Leading British digital logistics company Zencargo launches operations in the UAE to expand in MENA

Aldar partners with Nikki Beach Global to bring branded waterfront residences to Ras Al Khaimah

Hotpack celebrates milestone achievement of reaching 50 retail stores across the MEA

NURTURING THE BUSINESS AND STARTUP ECOSYSTEM 08 09 11 18

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Spotlight on: Imad Kazzaz

Hospitality / GEOFF RAPP Opinion Piece NEIL PETCH / GEORGE HOJEIGE

Partner Content: Technology

Open-Source Innovations in Telecommunications: Transforming CSPs’ BSS Stack with Nexign Nord

Technology

Inovartic Investments LLC Modon and Four Seasons Partners with Emirates Unveil Four Seasons World ForumAssociation to mobilizeHotel Rabat at Kasr Al Angel Investors Through MOU for climate, Bahr investments energy,

Trade and Development

health and food

The AI + Industry Cloud Advantage: A Potent Mix for GCC Enterprise Transformation

Your Business Vision, Brought to Life with innovative Cloud, IoT, Security & Connectivity solutions

Ad

Introduction Introduction

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elcome to this special issue of MEA Business, dedicated to celebrating the MEA Business Achievement Awards. At MEA Business, we are committed to delivering comprehensive business news across the Middle East and Africa. Our mission is to provide a dynamic platform where business leaders can share ideas, engage in meaningful debates, and forge strategic partnerships that will shape the future of the region.

Our goal is to equip business leaders and professionals with the skills and insights they need to thrive in these dynamic regions. By focusing on positive news stories, detailed case studies, and inspiring interviews, we aim to foster a narrative of growth and success.

MEA Business magazine offers clear and concise information through various sections, including up-to-the-minute news, market updates, and exclusive CEO interviews. Our readers benefit from a comprehensive blend of our printed magazine, e-magazine, and social media content, providing coverage on the latest developments in the Middle East and Africa.

Additionally, MEA Business proudly features several sector specials throughout the year, tailored to coincide with major industry exhibitions and events.

We hope you find this issue both informative and inspiring.

Kenneth Mitchen

Publisher, MEA Business

Kenneth Mitchen

Publisher, MEA Business

mea-biz.com

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CONTENTS CONTENTS

NEWS MIDDLE EAST 6

Aldar partners with Nikki Beach Global to bring AVIATION INNOVATION branded waterfront AWARDS-2024 residences to Ras Al 06 Khaimah C elebrating Leadership 7

and Innovation at the

Leading British digital Aviation Annual Gala logistics company Zencargo Evening 2024 launches operations in the TECHNOLOGY UAE to expand in MENA

08 I novartic Investments AVIATION ANNUAL GALA LLC Partners with EVENING Emirates Angel 9 The Aviation Annual Gala Investors Association Evening is Back Through MOU AVIATION ACHIEVEMENT

HOSPITALITY AWARDS

09 M odon and Four 12 Aviation Achievement Seasons Unveil Four Awards 2023 Seasons Hotel Rabat at LOGISTICS Kasr Al Bahr 14 Emirates CONTENT: SkyCargo PARTNER advances its digital customer TECHNOLOGY experience with CargoAi

14 24 MEA Business MEA Business WEB: www.mea-biz.com WEB: www.mea-biz.com www.mea-hr.com EMAIL:www.mea-hr.com info@cme-media.com EMAIL: info@cme-media.com PUBLISHED BY: Creative Middle East Media FZ LLE, 19th Floor, Creative th PUBLISHED BY:Creative CreativeCity, Middle MediaFujairah, FZ LLE, 19 Floor, Creative Tower, Fujairah PO East Box 4422, UAE Tower, Fujairah CreativeAND City,PUBLISHER PO Box 4422, Fujairah,Mitchen UAE EXECUTIVE DIRECTOR : Kenneth EXECUTIVE DIRECTOR AND PUBLISHER : Kenneth Mitchen Email: ken.mitchen@mea-finance.com Email: ken.mitchen@mea-finance.com

10 O pen-Source 14 Hotpack celebrates Innovations in milestone achievement of reaching 50 Telecommunications: retail stores acrossCSPs’ the MEA Transforming BSS StackCargo with ramps Nexign Nord 14 Etihad up cargo capacity for China

PARTNER CONTENT: GLOBAL STRATALOGUES SERIES 12 Keith Dart: Visionary Insights on Construction, Innovation, and Social Impact

and non-Sharia law and international

LOGISTICS inheritance and tax laws. The impact

of personal 16 Arcapita andfamily Flowrelationships to developand a emotional sensitivities are also at play, logistics complex in Riyadh and as such these periods of transfer are complex and can be fraught with pitfalls.

CLIMATE TECH INVESTMENT 18 Where There’s a Will…

Clear governance is critical GLOBAL FINANCE

FAMILY WEALTH AND THE BACKBONE OF MIDDLE 16 AND SO THEIR CONTINUED S TO THE REGIONAL ECONOM

Establishing clear governance helps

22 Emerging in Global manage theParadigms intricacies of wealth transfer Financial Services: Strategic and reduces the risk of friction.

Insights from 2024 Horasis Recently, the the Dubai Centre for Family Asia Meeting Businesses launched a ‘Sample Family Constitution’ toolkit, which guides families 24 FINTECH 2024

on how to establish clear and robust governance frameworks and manage PRIVATE familyAVIATION wealth. Family constitutions EXCELLENCE are documents that outline a family’s values,Expands vision andCharter the rules governing 26 DCAF Fleet management a family estate tothe Meet SoaringofDemand for and businesses.

It can include Private Aviation in theguidelines UAE for decision-making, conflict resolution and SUCCESSION PLANNING sets out family roles and responsibilities.

Family TRANSFER: councils are also a useful 28 WEALTH Planning forum for collaboration.

They provide a for a Smooth Transition regular opportunity for family members MEA FINANCE SME SUMMIT to discuss and resolve family business 2025 or estate related issues.

26 Unlocking the Potential Such governance ensures of thethe family SME Ecosystem house is in order and geared towards long-term sustainability which can prove vital in the process of wealth transfer and contribute to a smooth transition.

24 Creating Mutual Benefits

Family offices are powerful tools According to the Capgemini World Wealth

Domestic Product. However, only 20 per cent of family businesses in the Middle East last for three generations.

Philip Marcovici, the co-author of Circular Economy Principles for Family Business and Wealth Stewardship believes that families should implement early succession plans to create stability

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28

have edu busi

The exp

A pr med lega 65 p reve deci such And Indiv to he advi and this. and deci or b prop illust wea infor

Aviation Innovation Awards-2024

Celebrating Leadership and Innovation at the Aviation Annual Gala Evening 2024

The Aviation Annual Gala Evening on December 12th Recognizes Pioneers in Aviation Technology, Safety, and Sustainability

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he Aviation Annual Gala Evening, held on December 12th, 2024, was a remarkable celebration of excellence in the aviation industry. Hosted aboard a stunning mega yacht in Dubai Marina, the event brought together top aviation leaders, innovators, and influencers to recognize groundbreaking achievements in technology, safety, and sustainability.

The evening’s centrepiece, the Aviation Innovation Awards 2024, honored the visionaries driving positive change in the aviation sector. Awards were presented in multiple categories, from advancements in aviation safety to sustainable flying technologies, highlighting the tireless efforts of individuals and organizations who are reshaping the future of aviation.

Kenneth Mitchen, Executive Director 06 MEABUSINESS

of MEA Business, remarked, “The Aviation Innovation Awards showcase the best in leadership, innovation, and technological advancement in our industry. This event reflects not only the achievements of today but also the commitment to excellence that will drive the aviation sector forward.

Our focus is on recognizing those who lead with vision and determination, ensuring a safer, more sustainable, and more innovative future for aviation.”

The evening was packed with excitement, featuring a drinks reception, gala dinner and a live entertainment program that kept guests engaged throughout the night. As the night progressed, the atmosphere was elevated with a spectacular drone light show over the Dubai Marina, providing a stunning visual display that mirrored the

Business News for the MEA region

innovative spirit of the event.

The Aviation Innovation Awards 2024 continues to be a premier event in the aviation calendar, driving the conversation around the future of the industry while honoring the pioneers making lasting impacts on the world of aviation.

Looking ahead, the Aviation Annual Gala Evening is the perfect lead-up to the Aviation Achievement Awards, scheduled for February 26th, 2025, where more leaders in aviation will be recognized for their outstanding contributions across the industry.

This upcoming event promises to further elevate the conversation on aviation excellence, with an even more impressive line-up of award categories and an opportunity to celebrate the very best the industry has to offer.

Text 02

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Technology

Inovartic Investments LLC Partners with Emirates Angel Investors Association Through MOU Fostering AI Innovation and Advancing Sustainable Development

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novartic Investments LLC, a pioneering Abu Dhabi-based investment firm dedicated to fostering innovation and technology under the “Make it in the UAE” initiative, has signed a Memorandum of Understanding (MOU) with the Emirates Angel Investors Association. This strategic partnership aims to advance innovation, entrepreneurship, and sustainable development through the transformative potential of Artificial Intelligence (AI) in Abu Dhabi and beyond. The collaboration is founded on a shared vision to position Abu Dhabi as a global hub for AI-driven solutions and innovation. The MOU outlines several key areas of focus, including joint efforts in AI research and development, exploring cutting-edge technologies and their applications across key industries through partnerships with Abu Dhabi University and TMC2 MEA. It also aims to establish a robust framework for funding and investing in startups and entrepreneurs utilizing AI solutions. Additionally, the collaboration seeks to create platforms for knowledge sharing, skill development, and workshops, fostering a talented ecosystem. Furthermore, the partnership will advocate for policies that promote ethical and sustainable AI practices in the UAE. On this occasion, His Excellency Shams Ali Khalfan Al Dhaheri, Second Vice President of Abu Dhabi Chamber stated: This partnership between Inovartic Investments LLC and the Emirates Angels Investors Association is a remarkable step towards advancing Abu Dhabi’s vision as a global hub for innovation and entrepreneurship. Artificial Intelligence is a transformative force, and collaborations like this one ensure that Abu Dhabi remains at the forefront of technological progress and sustainable development. The Abu Dhabi Chamber proudly supports initiatives that empower businesses, foster collaboration, and attract global talent. This MOU exemplifies the spirit of innovation that defines our emirate and aligns perfectly with the UAE’s national agenda. We look forward to seeing the far-reaching impact of this partnership and are committed to providing ongoing support for its success

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I novartic Investments LLC, a pioneering Abu Dhabi-based investment firm dedicated to fostering innovation and technology under the “Make it in the UAE” initiative. Image Courtesy: Inovartic Investments LLC H.E Masaood Rahma Al Masaood, Chairman of the Emirates Angel Investors Association, Vice Chairman of Al Masaood Energy added: This partnership with Inovartic Investments LLC represents a significant step forward in our mission to nurture a thriving entrepreneurial ecosystem in the UAE. Our association is dedicated to enabling impactful investments that not only drive economic growth but also align with the UAE’s vision of fostering innovation and sustainability. By pooling resources, expertise, and networks with Inovartic, we are creating a platform that accelerates knowledge-sharing, facilitates global partnerships, and inspires groundbreaking ventures. We are excited about the potential outcomes of this MOU and remain committed to supporting initiatives that contribute to the UAE’s leadership in technology and entrepreneurship This partnership represents a standard for partnerships between parties that aim to make use of technology for a brighter and more sustainable future.

Commenting on the partnership, Saif Aldarmaki, Chairman and Co-Founder, Inovartic Investments stated: At Inovartic Investments, we believe that innovation is the cornerstone of sustainable economic

Business News for the MEA region

growth and societal advancement. This partnership with the Emirates Angels Investors Association is a testament to our unwavering commitment to fostering cuttingedge technologies, particularly in Artificial Intelligence, to shape a better future for UAE and beyond. By aligning our efforts with the UAE’s national vision, we are confident that this partnership will create meaningful opportunities to harness AI’s transformative potential, not just for economic progress but for solving global challenges.

Anwar Hussein, Managing Partner and Co-Founder, Inovartic Investments added: As co-founders of Inovartic Investments, we have always envisioned a future where innovation and collaboration drive meaningful progress.

This partnership reflects our core belief that Artificial Intelligence is not just a tool but a powerful enabler of solutions to some of the world’s most pressing challenges. By joining forces with the Emirates Angels Investors Association, we are setting the stage for groundbreaking projects that will place Abu Dhabi and the UAE at the forefront of AI advancements globally. This collaboration is more than an agreement—it’s a commitment to fostering a culture of innovation that benefits society at large.

Text 02 Hospitality

Modon and Four Seasons Unveil Four Seasons Hotel Rabat at Kasr Al Bahr The luxury oceanside property showcases a perfect harmony of restored historic architecture and newly developed buildings.

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odon and Four Seasons hosted the opening ceremony of Four Seasons Hotel Rabat at Kasr Al Bahr, a five star hotel on the Atlantic coast of the Moroccan capital. The luxury oceanside property is owned by Modon and operated by Four Seasons.

The event took place in the presence of Mr Fouad Ali Al Himma, Advisor to His Majesty King Mohamed 6, H.E. Al Asri Saeed Al Dhaheri, the Ambassador for the UAE in Morocco, H.E. Jassem Mohammed Bu Ataba Al Zaabi, Chairman of Modon Holding, Bill O’Regan, Group CEO of Modon Holding, Marc Dardenne, CEO of Modon Hospitality, Adrian Messerli, President of Hotel Operations – Europe, Middle East and Africa at Four Seasons and Gregory Viaud, General Manager of the hotel, as well as dignitaries, local government representatives, heads of media and senior business leaders.

Four Seasons Hotel Rabat at Kasr Al Bahr (‘palace by the sea’ in Arabic) was originally built at the end of the 18th century as the summer residence of Morocco’s Sultan Moulay Slimane. Situated in the historic Quartier l’Océan, just minutes away from the city’s most prominent landmarks, the sprawling 50,000-square-metre complex today includes 11 buildings – six carefully restored historic ones and five brandnew ones – amid beautifully landscaped gardens.

Complementing the Moorish architecture with domed rooftops, arched doorways and fountained courtyards is interior design by Roger Nazarian Architects & Associates with classic Moroccan touches, such as custom-made Zellige tiles, stained-glass windows.

H.E. Jassem Mohammed Bu Ataba Al Zaabi, Chairman of Modon Holding said, “We are thrilled to attend the opening of

O pening ceremony of Four Seasons Hotel Rabat at Kasr Al Bahr. Image Courtesy: Modon the Four Seasons Hotel Rabat at Kasr Al Bahr. Rabat, with a rich history and cultural heritage, stands as a beacon for travellers seeking an authentic and unforgettable experience and is poised for an incredible future as a premier tourist destination. We are proud to contribute to the growth and development of this magnificent city.”

Seamlessly blending historic charm with state-of-the-art facilities, the hotel features 200 stunningly appointed rooms and suites with a choice of ocean or garden view, some with private plunge pools. The palatial property is also home to four unique dining concepts and 2,700 square metres of striking event spaces, including the Royal Ballroom that is ideal for fairytale weddings. Among its wellness offerings are two outdoor pools, a 24/7 fitness centre, an outdoor yoga studio and a world class spa with an indoor pool and a traditional Moroccan hammam.

Bill O’Regan, Group CEO of Modon Holding said: “We were delighted to play a part in the transformation of this oneof-a-kind historic property into a Four Seasons hotel. The latest addition to our global hospitality portfolio embodies our commitment to developing projects that enrich the global tourism landscape while paying tribute to the distinctive identity of their surroundings.”

Adrian Messerli, President of Hotel Operations – Europe, Middle East and Africa, commented: “It is a privilege to attend this official opening ceremony alongside our partners at Modon and to celebrate bringing new life into this storied landmark. Rabat is a beautiful, dynamic city and we look forward to welcoming guests from around the world to discover this evolving destination through a new luxury hospitality experience marked by our renowned personalized service and quality of excellence.”

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Partner Content: Technology

Open-Source Innovations in Telecommunications: Transforming CSPs’ BSS Stack with Nexign Nord Maxim Nartov, Chief Business Officer at Nexign, Explores the Shift to Open-Source Solutions

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pen-source software has become a cornerstone of the telecommunications industry, driving innovation and accelerating development across sectors. In particular, communication service providers (CSPs) are increasingly adopting open-source solutions as costeffective and scalable alternatives to traditional legacy systems. Maxim Nartov, Chief Business Officer at Nexign, highlights the growing popularity of this trend and discusses the advantages of commercial products based on opensource technologies.

What is the current state of the open-source solutions in the telecom industry in the MEA region? How in-demand are such solutions in general?

The demand for open-source solutions continues to increase: the open-source services market in MEA is estimated to reach a projected revenue of US$ 7,549.4 million by 2030 with a CAGR of 13.4% from 2024 to 2030. This trend is not surprising: the region is in its transformative era of technological innovations and advancements, and open-source software can successfully help local CSPs drive innovation and accelerate the deployment of new services. As open-source solutions do not require purchasing expensive licenses, they help reduce total ownership costs (TCO) of the CSP’s IT infrastructure, as well as contribute to making connectivity business in Africa and the Middle East more cost-efficient. Besides, they are flexible and customizable, can be adjusted to each company’s needs.

Open-source software also provides freedom from vendor lock-in, thus minimizing related risks and advancing transparency and control. At Nexign,

10 MEABUSINESS

M axim Nartov, Chief Business Officer at Nexign

we have been actively using opensource technologies in our solutions for a long time. For example, last year, we announced a new generation of our Nexign BSS, a database-agnostic digital BSS. It can run on any core DBMS that meets the CSP’s budget and overall IT strategy, such as Oracle, PostgreSQL,

Business News for the MEA region

or even our enterprise-grade RDBMS based on PostgreSQL — Nexign Nord.

Open-source software is often associated with security and fault tolerance risks, but commercial open-source products resolve these issues. It is especially critical for large

from lightly loaded to highly loaded.

To synchronize data between Oracle and Nexign Nord and guarantee fast rollback without data loss in case of accidents, the teams used our analog of Oracle GoldenGate — Nexign Data Integrator. The first migration to Nexign Nord — migration of the financial product management system in billing — took place in 2022.

What were primary reasons for choosing your solution?

At Nexign, we suggested significantly lower licensing and support costs than our competitors in the market.

Besides, we were ready to customize our DBMS to the client’s security and fault tolerance requirements in the shortest time possible. Finally, we provided an opportunity for extended technical support with 24/7 consulting and operation and also broadened it to other products installed along with Nexign Nord.

At Nexign, we refine open-source solutions to ensure the highest security and availability parameters, confirming the reliability of our products for CSPs. infrastructural players, such as telecom companies. For example, at Nexign, we conduct a complete internal functional and non-functional audit before including open-source solutions in our IT stack. We also refine them to ensure the highest security and availability parameters. It helps us confirm the reliability of our products and make sure they can be trusted by CSPs. How can CSPs choose solutions based on open source and migrate to them?

A CSP needs to understand the requirements for the new solution and research the market for a suitable option. For example, we migrated BSS components of MegaFon, one of the

leading CSPs in Eastern Europe, from Oracle DBMS to Nexign Nord RDBMS to ensure the client’s infrastructural independence from western software.

At first, the company planned to replace Oracle with PostgreSQL, but its vanilla version could not support critical business systems, as it did not meet several key requirements of a Tier-1 CSP, including technical support, fault tolerance, and security standards. As a result, our client started analyzing the market of DBMS based on PostgreSQL and selected Nexign Nord.

The migration of all key business systems was planned considering complexity: from small to the most voluminous,

What were key results of the project?

By switching to Nexign Nord, MegaFon has advanced its BSS infrastructure’s technological independence and operational agility. Our client could save on implementation, licensing, and support up to 10 times, as compared to similar solutions in the local market.

Nexign Nord also allowed the CSP to create additional extensions and modules to solve its business tasks, thus increasing its technological flexibility in managing DBMS. Currently, the volume of our client’s IT infrastructure operating on Nexign Nord exceeds 5 thousand CPU cores and 12.5 TPS benchmark.

What are the future perspectives of open-source solutions in telecom?

The market of commercial open-source solutions will continue to grow, as they help resolve the key problem of CSPs across the world — increasing efficiency while reducing TCO. CSPs will continue to build their expertise in open source, deploy them on their own, or turn to vendors like Nexign if they want a ready-made solution with professional support. mea-biz.com

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Opinion Piece

The AI + Industry Cloud Advantage: A Potent Mix for GCC Enterprise Transformation

By Vibhu Kapoor, Regional Vice President - Middle East, Africa & India, Epicor

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cross industries, business leaders see GenAI as a transformative technology.

PwC’s Strategy& estimates the GCC could see US$9.90 of economic growth for every dollar invested in GenAI. And this is just one niche area.

Predictive analytics, advanced robotics, and a slew of other tools are directly relevant to the ambitions of several GCC industries.

The rise in AI converges with another pivotal development in the tech world – the emergence of cloud-native toolboxes that are purpose-built for industry use cases. Vertical cloud platforms, more commonly known as industry cloud platforms (ICPs), are clouds built with a single purpose. With these, enterprises can find enviable levels of requirements fit without the need for protracted procurement.

Plugging gaps The challenges ahead call for “doing more with less” – a mantra that has been around since 2008. This concept does not arise solely from budget constraints.

Regional skills gaps also play a part.

So, if a business were to automate more mundane tasks, it could increase efficiency while positioning itself as a more attractive employer. Employees are keen to spend their days on more engaging activities that increase their personal marketability, and automation can make this a reality.

Of course, change – especially technological change – is not always easy. Deployment of new solutions can lead to expensive downtime and other disruptions like productivity dips during training. This is where ICPs have been gaining ground. Tailored tools, robust security, and streamlined compliance

are very attractive alongside other benefits such as outsourced maintenance and automatic updates.

However, tech leaders have been concerned about the ROI of ICPs. But adding AI addresses such concerns.

Consider enterprise resource planning (ERP) for example. ERP manages the interplay of functions like finance, HR, logistics, warehousing, bills of materials, and so on. Many ERP systems now run on industry clouds, serving as out-of-thebox solutions that cover every aspect of operations. Thus far, a drawback has been the potential for agility to be constrained by permitting only a narrow group of privileged administrators access data and amend workflows.

But what if we integrate AI into these industry-cloud ERP platforms?

Systems of action So much, and more. In a nutshell, enterprises get another innovator on staff. AI is capable of going way beyond mere automation. It empowers teams by monitoring the entire workflows – analysing, learning, and flagging inefficiencies. Traditionally, actionable insights were the sole domain of human agents, but machine intelligence has risen to become a reliable consultant.

On interrogation by employees, it delivers rapid responses to complex questions. And as the months and years roll on, even these conversations will improve as humans learn to ask more pointed questions and AI systems learn to give more comprehensive answers Indeed, everything will improve – operational efficiency, decisionmaking, forecasting, and the level of individualization offered in customer service. ERP systems then evolve from Systems of Record to Systems of Action.

Advantage writ large We can see the benefits of the AI-ICS unification for companies, managers, and employees. We can see its value for society, the environment, and GDP growth. In a digital economy, businesses need every advantage. AI-powered ICS is advantage writ large.

12 MEABUSINESS

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Partner Content: Global Stratalogues Series

Keith Dart: Visionary Insights on Construction, Innovation, and Social Impact A construction industry leader shares his journey, innovations in technology, and commitment to addressing societal challenges at the Global Stratalogues Dinner in Dubai.

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recent Global Stratalogues Dinner brought together influential thought leaders for an exclusive evening of discourse. The spotlight was on Keith Dart, Founder and CEO of MAK Consulting, a construction industry veteran with 28 years of experience.

Moderated by journalist Tala Issa, the event explored Dart’s transformative career, groundbreaking achievements, and ventures into social impact.

Through an engaging on-stage interview and a dynamic audience Q&A, Dart demonstrated his innovative approach to construction, his passion for implementing advanced technologies, and his commitment to addressing societal challenges.

A Career Rooted in Innovation and Impact Dart’s career is defined by extraordinary achievements, including his integral role in Elon Musk’s Boring Company projects.

He discussed the success of the Las Vegas Convention Center Loop, a $47 million project that started as a bold proof-of-concept funded by Musk himself.

Its success led to further tunneling initiatives connecting key locations such as the Convention Center and the airport.

When asked about replicating such projects in Dubai, Dart highlighted the role of local soil conditions. Sharing examples from tunneling projects in Seattle and Italy, he emphasized how factors like sandy soils or solid rock dictate project feasibility. Dart expressed optimism about Dubai’s potential for adopting similar innovations, provided environmental and technological considerations are addressed.

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K eith Dart, Founder & CEO of MAK Consulting (middle), with Tala Michel Issa, Journalist and Podcaster

Overcoming Resistance to Change in Construction A recurring theme in Dart’s talk was the industry’s hesitation in adopting new

Business News for the MEA region

technologies, like self-consolidating concrete (SCC). Developed in Japan in the 1980s, SCC reduces water usage while improving strength and workability.

However, it took over two decades for

Keith Dart emphasized that embracing innovation is crucial in construction, highlighting that entrenched practices often hinder the adoption of new technologies like self-consolidating concrete, which improves efficiency, reduces labor, and strengthens structures.

only to agriculture. Dart attributed this gap to reliance on outdated methods, even in regions like the U.S. and the Middle East, where technology adoption is uneven.

Pointing to Toronto’s early adoption of gasket technology in the 1990s, Dart illustrated how small, cost-effective innovations can have long-term benefits.

“The key is to foster conversations like this,” he said, emphasizing the role of collaboration in overcoming inefficiencies.

A Vision for Dubai and Beyond Dart praised Dubai’s rapid development, calling its achievements over the past decade “unparalleled.” He sees vast opportunities to apply sustainable construction practices and infrastructure planning expertise to the region.

Outlining his goals in Dubai, Dart highlighted relationship-building and knowledge-sharing as priorities. He offered to connect local developers with his network of experts, noting, “If I don’t have the answers, someone in my network does.”

Self-Accountability: A Guiding Principle

G uests at the Global Stratalogues Dinner, held at the Neera Private Member’s Club, Dubai Habtoor City

this breakthrough to gain acceptance in the U.S. “In construction, people often say, ‘We’ve always done it this way,’” Dart explained, pointing to entrenched practices as a key barrier. Despite initial costs, SCC has revolutionized construction by enhancing efficiency, reducing labor requirements, and producing stronger structures. Dart emphasized that embracing innovation is critical for long-term success.

Addressing Global Challenges Through Social Impact Dart’s entrepreneurial journey extends beyond construction to address pressing societal issues. Inspired by his personal experiences as an adoptive and foster parent, he launched WashedByWater. org. This initiative reconnects families— especially those in foster care or affected by incarceration—through transformative experiences in calming environments.

“Water heals, water cleanses, water gives life,” Dart said, explaining the ethos behind the organization, which operates in partnership with groups in the U.S. and Mexico.

Highlighting systemic challenges, Dart also criticized the U.S. prison system’s lack of rehabilitation programs. He champions initiatives like God Behind Bars, which provide inmates with education, job training, and family support, helping them reintegrate into society. By combining his professional expertise with social impact ventures, Dart exemplifies how infrastructure and community building go hand in hand.

Global Perspectives Learned

and

Lessons

The audience Q&A revealed Dart’s insights into the productivity challenges facing construction. Studies rank the industry as one of the least efficient globally, second

Dart concluded the session with a compelling message on self-accountability.

“Look at the three fingers pointing back at you,” he said, urging attendees to reflect on their roles in solving challenges. “When you see something that needs fixing, ask yourself, ‘What can I do about it?’”

Whether discussing the intricacies of tunneling, the challenges of implementing technology, or the power of social impact, Dart inspired the audience with his expertise, empathy, and entrepreneurial spirit.

About the Global Stratalogues The Global Stratalogues is an exclusive series of high-level, non-commercial roundtables and dinners uniting policymakers, private sector leaders, and academics in think-tank settings.

These gatherings bring together the world’s most innovative minds to explore groundbreaking research, leverage cutting-edge technology, and shape policy for a better future.

To Watch the event Highlights Video: https://youtu.be/EynIPUGMf74 mea-biz.com

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Logistics

Arcapita and Flow to develop a logistics complex in Riyadh Under the terms of the partnership, Arcapita will develop an 80,000 square meter mixed-use storage complex

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rcapita Capital Company (‘Arcapita’), a subsidiary of Arcapita Group Holdings Limited (“Arcapita Group”) a global alternative investment firm, agreed with Flow Progressive Logistics (‘Flow’) an endto-end supply chain management company, past of Alsulaiman Group, to develop a modern class A logistics complex in Riyadh, during the Supply Chain and Logistics Conference, that took place in Riyadh, Under the terms of the partnership, Arcapita will develop an 80,000 square meter mixeduse storage complex. The facility will feature various storage options, including cold storage, dry storage, temperaturecontrolled facilities, as well as specialized spaces for pharmaceutical and hazardous goods. Flow, which provides international shipping, customs clearance, warehousing, transportation, delivery, and reverse

logistics, will operate the facility under a long-term lease agreement.

This collaboration will expand Arcapita’s logistics real estate portfolio in Saudi Arabia and supports the government’s efforts to diversify its economy and improve market infrastructure, in line with Saudi Arabia’s Vision 2030. The Ministry of Transport and Logistics Services has been instrumental in driving growth in this sector, and its support continues to encourage private sector participation. The industrial and logistics sectors are key components of the Kingdom’s Global Supply Chain Resilience Initiative, which aims to attract SAR 40 billion ($10.6 billion) in investments.

Isa Al Khalifa, Director of Real Estate Investments at Arcapita, said: “We are extremely pleased to expand our partnership with Flow through this new development.

The Saudi Arabia industrial and logistics market continues to demonstrate positive supply-demand dynamics that are likely to support rental growth in the foreseeable future. This partnership will contribute to meeting the growing demand for modern logistics facilities and services in Riyadh, where demand is outstripping supply particularly when it comes to higherquality assets. Riyadh is positioning itself as a key logistics hub for both regional and international companies making it an attractive destination for investment capital.”

Achraf Ellili, CEO at Flow, said: “The collaboration with Arcapita is a milestone for Flow as we continue to scale our operations in the Kingdom. The new facilities will allow us to meet the increasing demand for comprehensive supply chain services and offer advanced solutions to our clients in various sectors, including pharmaceuticals and hazardous goods. This partnership helps us align with Saudi Arabia’s broader economic goals and play our role in the Kingdom’s transformation.”

Flow operates one of the largest fully automated logistics facilities in the region and has a growing fleet catering to diverse client needs, positioning it as a leader in endto-end supply chain services. Through this partnership, Flow reaffirms its commitment to advancing digital innovation in logistics and creating employment opportunities for local talent, directly aligning with Saudi Arabia’s broader economic goals.

Arcapita Group currently manages over $1 billion of industrial real estate assets in GCC, making it one of the largest real estate platforms in the GCC. The Firm is expected to double its GCC logistics AUM to $2 billion by 2025.

I novartic Investments LLC, a pioneering Abu Dhabi-based investment firm dedicated to fostering innovation and technology under the “Make it in the UAE” initiative. Image Courtesy: Inovartic Investments LLC

16 MEABUSINESS

Business News for the MEA region

Arcapita Group embarked on its GCC industrial strategy in 2010 by establishing a series of funds dedicated to industrial assets. The Firm grew its GCC industrial AUM, by acquiring a diversified base of properties tenanted by a wide range of occupiers including blue-chip international companies, regional leaders, and local players. Today, Arcapita Group’s industrial real estate portfolio, principally across Saudi Arabia, the United Arab Emirates, and the Kingdom of Bahrain consists of a combined built-up area of over 3.5 million square feet across more than 30 properties, leased to over 80 tenants.

ALS LOGISTIC SOLUTIONS

@ALSLogisticSolutions WWW.ALS.AERO info@als.aero

ADVANCED CARGO SOLUTIONS

CLIMATE TECH INVESTMENT

Where There’s a Will…

Despite a lowering in investment in 2023, the region presents opportunities for investors to generate financial returns while driving positive change, with an active sustainable sukuk market and proactive governments and organisations supporting climate technology start-ups

T

he impact of climate change is starkly evident in the GCC countries, as the Middle East experiences some of the most rapid temperature increases globally.

The Intergovernmental Panel on Climate Change projected that the temperatures in the region are projected to rise by 1.3°C under a best-case scenario and by a staggering 4.7°C in a worst-case scenario by the end of the century.

Global consulting firm BCG said the Gulf region is facing dire threats of climate change and is laying the groundwork for decarbonisation. However, the region is making the political, social and

18 14 MEABUSINESS

financial commitments that are required to accelerate the green transition and mitigate carbon emissions.

While the economies of GCC countries are still heavily reliant on oil revenues that made the region super-rich, they are proactively allocating a portion of their wealth to support startups pioneering innovative solutions to mitigate the climate crisis.

“The key enabler of climate progress is finance – developing countries will need an estimated $2.4 trillion every year by 2030 to keep the 1.5°C goal within reach,” Majid Al Suwaidi, COP28 Director General and CEO of ALTÉRRA said at World Bank-

Business Banking News for the MEA region and Finance news in the MEA market

International Monetary Fund (IMF) Spring Meetings in Washington in April.

Climate technologies – innovative solutions that expedite decarbonisation – are indispensable for achieving global net-zero emissions by 2050. The COP28 President played a pivotal role in establishing the Innovate for Climate Tech Coalition, an initiative that seeks to foster the development and widespread adoption of climate technology solutions, with a particular emphasis on the Global South.

Meanwhile, green bonds and sukuk, as fixed-income securities, offer a viable avenue for investing in climate technology projects. Investing in climate technology through green, social, sustainability and sustainability-linked bonds is an emerging trend that is leveraging financial instruments to fund sustainable technologies and green initiatives.

Green and sustainable bonds, along with sukuk, have gained significant traction in the GCC region as the region aligns with global efforts toward sustainability.

Following a record issuance of $10.6 billion in 2023, Moody’s projected sustained growth in the sustainable sukuk market.

Strong investor appetite and a growing number of countries seeking to diversify their funding sources are expected to drive this expansion.

A launchpad for innovation The first global stocktake of the Paris Agreement concluded at COP28 in Dubai last December 2023 reaffirmed that the world is not on track to limit global warming to 1.5°C and the window for meaningful change is quickly closing.

McKinsey said climate technology has the potential to cut global carbon emissions significantly amid growing interest from governments, institutional investors and venture capital (VC) firms that are eager to adopt innovative solutions to combat global warming.

While investment in climate technology startups plunged by more than 80% to $152 million in 2023, according to VC data firm Magnitt, the Middle East region has shown substantial growth in climate technology funding over the past decade.

Magnitt said from 2018 to 2022, climate technology achieved an impressive compound annual growth rate of 62%, culminating in a peak of $270 million in capital deployment in 2022.

Abu Dhabi’s Hub71 welcomed seven climate technology startups, including France’s Plenesys, to its 15th cohort in September, where they will have access to tailored resources and support packages to help them develop innovative solutions for a more sustainable future.

Hub71+ ClimateTech, backed by a $680,000 (AED 2.5 million) investment from ADNOC Group, offers startups an initial AED 250,000 cash incentive along with additional perks.

ENGIE Factory, the venture capital arm of the ENGIE Group, opened its venture studio in the Middle East earlier in 2024 to foster innovation, accelerate the energy transition and speed up decarbonisation in the Investcorp region.

Furthermore, Bahrain’s Investcorp introduced a new climate solutions investment platform in December 2023 to

invest in companies that offer products, services and technology designed to reduce carbon emissions and mitigate the effects of climate change.

The Dubai Future District Fund also allocated $54.5 million (AED 200 million) to support climate technology and innovation during COP28, which accounts for 20% of the fund’s total value of AED 1 billion.

PwC Net Zero Future50 - Middle East report 2023 revealed that investors from the Middle East are leading the way in climate technology investment, both domestically and internationally.

decarbonisation, the region has vast pools of untapped capital to invest in innovative decarbonisation solutions.

Green finance gathers pace Over the years, sustainable investing has expanded beyond equities into the fixed-income market, driven by investors’ shift from non-environmental, social and governance (ESG) to ESG core bond holdings as they seek to enhance the sustainability of their investment portfolios.

“While funding climate transition and adaptation remains a priority in the region,

CLIMATE TECHNOLOGIES HAVE THE POTENTIAL TO CUT GLOBAL CARBON EMISSIONS SIGNIFICANTLY AMID GROWING INTEREST FROM GOVERNMENTS, INSTITUTIONAL INVESTORS AND VENTURE CAPITAL FIRMS THAT ARE EAGER TO ADOPT INNOVATIVE SOLUTIONS TO COMBAT GLOBAL WARMING – McKinsey

Middle Eastern investors’ global spending on climate technology-related deals tripled in just one year to reach $5 billion

by September 2023.

Similarly, domestic climate technology funding in the region has seen a steady rise, attracting around $1.85 billion in global investments since 2018. “The widespread adoption of cutting-edge technologies is critical to driving zero carbon growth and reaching global climate goals,” Adnan Amin, CEO of COP28 UAE, said, adding that the Innovate for Climate Tech will drive rapid innovation to combat climate change and build a sustainable future.

The GCC region offers a unique opportunity for climate technology startups. With its sovereign wealth funds, a strong network of venture capitalists and investment funds, favourable regulations and corporates keen on

given the exposure to hydrocarbons, sustainability issuances have risen in 2024 compared with only green projects previously,” said S&P Global.

Sustainable bond issuance in the Middle East, encompassing green, social, sustainability and sustainability-linked bonds (GSSSB), totalled $16.7 billion in the first nine months of the year. S&P Global said the issuance represents an 18% decline compared to the same period in 2023, likely influenced by a post-COP28 market normalisation.

Similarly, the sustainable sukuk market is growing steadily. Global issuance of sustainable sukuk increased by 21% year-over-year to reach $6.8 billion in the first half of 2024, according to Moody’s. The GCC region accounted for 82% of green sukuk issuance during this period, with UAE issuers playing an increasingly prominent role. mea-biz.com mea-finance.com

1915

CLIMATE TECH INVESTMENT

GCC countries and companies domiciled in the region have adopted a m b i t i o u s s u s ta i n a b i l i t y g o a l s .

Governments are rapidly implementing large-scale economic transformation programs to align with their National Visions, aiming to diversify and sustain their economies.

The issuance of sustainable bonds in the GCC region continues in 2024, as evidenced by Qatar’s debut green bond issuance of $2.5 billion in May and Sharjah’s second sustainable bond offering in February.

While the UAE boasts a more diverse range of issuers, Saudi Arabia is rapidly closing the gap.

Sustainable bonds have been issued by various entities in the recent past, including banks – Dubai Islamic Bank (DIB), Abu Dhabi Commercial Bank and Al Rajhi); corporates – Saudi Electricity Company, DP World, Masdar, TAQA and Aldar Properties; and sovereign funds – Mubadala and the Public Investment Fund (PIF).

Moreover, the issuance of sustainable sukuk is on the rise. It is expected to gain momentum in response to global decarbonisation efforts, offering a unique avenue for financing climate technology projects while adhering to Islamic financial principles.

The nexus between sustainable sukuk and climate technology offers several advantages ranging from ethical financing to impact investment to risk mitigation. Green Islamic bonds provide a Shariah-compliant way to invest in climate-friendly projects, ensuring that the financial instruments adhere to ethical and moral standards.

Saudi Arabia’s PIF issued its second sukuk in March 2024, raising $2 billion in the process. Abu Dhabi’s Mubadala issued its 10-year $1 billion debut sukuk in April 2024, taking advantage of robust investor demand for sustainable debt.

Last year, the PIF also issued $3.5 billion sukuk in an offering that was more than seven times oversubscribed.

Several banks in the GCC region also issued debut sustainable sukuk in 2024,

20 16 MEABUSINESS

FROM 2018 TO 2022, CLIMATE TECH ACHIEVED AN IMPRESSIVE COMPOUND ANNUAL GROWTH RATE OF 62%, CULMINATING IN A PEAK OF $270 MILLION IN CAPITAL DEPLOYMENT IN 2022 – Magnitt

including DIB’s $1 billion green sukuk issued in March, Emirates Islamic Bank issued $750 million in sustainable sukuk in May and Qatar International Islamic Bank tapped the market with $250 million green sukuk in July.

Sustainable Islamic bonds cater to both Islamic and conventional investors who seek to implement sustainable investment strategies, said Moody’s, adding that a key appeal is that the instrument provides transparency in its use of proceeds.

Creating an enabling environment Climate change caused by the emission of greenhouse gases is an urgent challenge.

With $5 trillion required annually by 2030 to achieve net-zero emissions, climate technology in the GCC region remains a largely untapped opportunity.

GCC countries are implementing ambitious national goals and regional initiatives to diversify their economies and tackle climate change, including the UAE’s and Oman’s commitments to net zero by 2050, as well as Saudi Arabia’s commitment to net zero by 2060 and the launch of the Middle East Green Initiative.

Policies should prioritise green growth opportunities, such as green hydrogen, carbon capture, renewables and new industrial technologies, BCG said in a report, adding that some climate technology has significant green premiums relative to conventional solutions.

Regulatory and legal hurdles, as well as securing sufficient funding, remain significant challenges for climate technology startups in the GCC region.

Business Banking News for the MEA region and Finance news in the MEA market

However, new policies that are being implemented, such as carbon pricing, renewable energy subsidies and research and development incentives, create favourable conditions for groundbreaking te c h n o l o g i e s t h a t c a n a d d re s s climate change.

“Governments and national champions are continuing with an aggressive buildout of renewable energy infrastructure that will accelerate the energy transition in the region, relying heavily on existing and new climate technology to drive this success,” said PwC. Furthermore, GCC countries are establishing innovation hubs and incubators to foster collaboration between startups, researchers and investors. These hubs provide a supportive environment for climate technology development.

The GCC region continues to exhibit strong motivation and innovation in the face of climate change despite the scarcity of local funding opportunities.

To help regional climate startups scale up and accelerate their innovation, PwC said governments could work to boost the startup ecosystem and galvanise efforts to scale up innovative small companies.

The growing urgency of climate change and the increasing demand for climate technology solutions have created a favourable environment for innovators working towards a net-zero future. Despite an 80% decline in climate technology investment in 2023, climate technology startups in the GCC region continue to attract significant support and attention.

10 - 11 FEBRUARY 2025 DUBAI WORLD TRADE CENTRE SHEIKH SAEED HALLS 1-3

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Connecting the airline supply chain VISITOR REGISTRATION IS OPEN

SCAN TO REGISTER

Global Finance

Emerging Paradigms in Global Financial Services: Strategic Insights from the 2024 Horasis Asia Meeting At the 9th Horasis Asia Meeting, part of the Global Freight Summit held in Dubai on November 18 - 19, Oscar Wendel, Editor-at-Large of MEA-Finance chaired a plenary session on the role of financial services in mitigating risks in global supply chains.

H

orasis is a global think tank creating a crucible of intellectual exchange that dissects the most pressing challenges and opportunities in contemporary financial services, trade, and economic policy. A central theme of the Asia Meeting was that technological innovation is reshaping financial ecosystems. By leveraging their geographic positioning, technological infrastructure, and commitment to innovation, Middle Eastern firms can transform potential disruptions into opportunities. The key strategic imperatives include financing emerging trade corridors, adopting blockchain and AI technologies, promoting ESG investments, and developing localized financial solutions.

The International Monetary Fund’s economic projections provided a critical framework for discussions, forecasting global growth of 2.7% through 2025– 26, with inflation expected to stabilize at 3.5%. These figures are more than mere statistics; they represent a delicate economic equilibrium that financial institutions must navigate with unprecedented strategic sophistication.

The United Arab Emirates exemplifies this strategic approach, projecting 4.0% economic growth through a carefully diversified economic model spanning the logistics, tourism, and real estate sectors. Central banks, particularly those in the Asia-Pacific region, are executing a nuanced balancing act. Their challenge lies in simultaneously controlling inflation and stimulating economic growth—a task requiring both mathematical precision and creative policy-making.

The UAE’s economic model demonstrates how strategic diversification can create resilience in an increasingly volatile global economic environment. Meanwhile,

22 MEABUSINESS

H orasis Asia Meeting at the Global Freight Summit featuring panel chaired by MEA-Finance on enhancing value and mitigating risks in global supply chains China’s Belt and Road Initiative continues to play a pivotal role in reshaping global connectivity. The initiative is not merely an infrastructure project but a strategic effort to reduce dependency on traditional trade partnerships and create new economic corridors. This approach presents unique opportunities for Middle Eastern banks to support emerging trade routes and develop innovative financial instruments.

In the welcoming session, Mike Bhaskaran, Chief Operating Officer of DP World, provided a profound perspective on this digital revolution, where Middle Eastern financial institutions stand at a unique strategic juncture. The future of financial services lies in adaptability, technological integration, and collaborative ecosystems.

“AI and digitalization are fundamentally transforming trade and finance,” he observed, highlighting how technological

Business News for the MEA region

applications are redefining traditional banking roles. Artificial intelligence is no longer a futuristic concept but a present-day reality, revolutionizing credit scoring, risk assessment, and customer analytics. Asian financial institutions are at the forefront of this technological transformation. They are not merely adopting digital technologies but fundamentally reimagining banking infrastructures. Blockchain and AI are creating unprecedented opportunities for real-time transactions, secure digital payments, and enhanced transparency.

The United Arab Emirates has positioned itself as a global leader in this technological frontier, making significant strides in blockchain regulation and financial technology integration.

The geopolitical landscape presents a complex tapestry of challenges and opportunities. Roger King, Chairman of ODS Holdings, offered critical insights

a critical enabler of transparent and secure financial transactions. Claude Béglé, Chairman of SymbioSwiss, advocated for decentralized supply chain models that foster collaboration without imposing centralized control.

“The future of financial services lies in creating platforms that integrate smaller players while maintaining operational flexibility,” Béglé argued, highlighting the potential for technological solutions to democratize financial ecosystems.

F rom Left: Claude Béglé (Chairman, SymbioSwiss), Frank-Jurgen Richter (Chairman, Horasis), Manoj Gurasahani (Co-Founder, Vera Healthcare), Oscar Wendel (MEA Finance Magazine), Veronica Shim (Founder, E Alliance), Murat Seitnepesov (Chairman, Greater Caspian Association), Roger King (Founder, ODS Holdings) into the evolving global trade dynamics.

The ongoing trade tensions between the United States and China are forcing a radical reconfiguration of global supply chains.

Manufacturers are strategically relocating to countries like Vietnam and Malaysia, demonstrating an unprecedented level of economic adaptability. The key takeaway for Middle Eastern financial institutions was to leverage their strategic location to transform disruptions into opportunities.

Roger King remarked, “Acceptance of cultural diversity and collaboration are key to moving forward.” By fostering inclusive, adaptable, and resilient financial systems, the Middle East can lead the global economy into a new era of sustainable growth.

The MEA-Finance panel at the Horasis Asia Meeting presented actionable insights for financial professionals, highlighting opportunities for the Middle East and Africa: • F inancing New Trade Corridors: With the Caspian region and Silk Road gaining prominence, Middle Eastern banks can lead in financing infrastructure projects linking Asia,

Africa, and Europe.

• A dopting Blockchain and AI: Integrating blockchain for supply chain transparency and AI for predictive logistics enhances efficiency and reduces risks.

• P romoting ESG Investments: Impact investing in sustainability aligns with global goals, offering banks opportunities to develop green financing solutions.

• N avigating Fragmentation: Localized financial solutions are essential to address the challenges of regional trade fragmentation.

The panel stressed the need for banks to adapt to the volatile global landscape.

King highlighted the financial implications of tariff wars, urging banks to offer flexible trade financing. Veronica Shim, Founder of E Alliance, emphasized venture capital and impact investing as critical in supporting supply chain resilience. King underscored the importance of cultural acceptance in global trade, advocating for localized financial solutions that integrate seamlessly with global systems.

Blockchain technology has emerged as

For Middle Eastern financial institutions, blockchain represents an opportunity to enhance cross-border transaction transparency, reduce operational friction, and create more inclusive financial systems. The technology’s potential to create secure, neutral datasharing platforms is particularly valuable in increasingly fragmented global economic systems.

Sustainability has transitioned from a peripheral consideration to a core strategic imperative. Shim provided compelling insights into the rising significance of impact investing. Family offices are increasingly directing investments toward startups focused on logistics and sustainability, creating new avenues for financial innovation.

Technological innovations like cargo drones and AI-driven logistics systems are not just efficiency tools but represent a fundamental reimagining of supply chain management that integrates with fintech platforms. These technologies offer opportunities to minimize operational costs, provide realtime tracking, and optimize routing while promoting sustainability.

In conclusion, the global financial landscape is undergoing a fundamental transformation. The convergence of digital innovation, geopolitical recalibration, and sustainable finance represents more than a challenge—it is an unprecedented opportunity for strategic reinvention. Success will belong to those institutions capable of embracing complexity, championing innovation, and maintaining a holistic, forward-looking approach to global financial services. mea-biz.com

23

Test 2401FINTECH 2024

Creating Mutual Benefits H.E. Mohammed El-Kuwaiz, Chairman of the Capital Market Authority (CMA)

While at the inaugural 24 Fintech Summit, held in Riyadh, which impressively established itself as the world’s largest debut fintech event, Oscar Wendel, MEA Finance’s Editor-at-Large heard from H.E. Mohammed El-Kuwaiz, Chairman of the Capital Market Authority (CMA) who detailed the emerging symbiotic relationship between traditional finance and fintech

By Oscar Wendel

T

he inaugural 24 Fintech Summit, held at the Riyadh Front Exhibition and Conference Centre from September 3-5, 2024, attracted nearly 37,000 participants, establishing itself as the world›s largest debut fintech event, and at which the forging of a symbiotic relationship

24 40 MEABUSINESS

between fintech and traditional finance was on the agenda.

Hosted by Saudi Arabia›s Financial Sector Development Program (FSDP), the Saudi Central Bank (SAMA), the Capital Market Authority (CMA), and the Insurance Authority (IA), and co-organised

by Fintech Saudi and Tahaluf, the event demonstrated the Kingdom’s growing influence in the fintech landscape.

Business Banking News for the MEA region and Finance news in the MEA market

Fintech’s Role in Transforming Capital Markets In a keynote with H.E. Mohammed El-Kuwaiz, Chairman of the Capital Market Authority (CMA), underscored how fintech is revolutionising financial services, notably in capital markets. “Fintech’s roots in capital markets trace back decades,” El-Kuwaiz stated, pointing out that digital trading began in the 1970s, well before the internet.

By the early 1990s, Saudi Arabia had adopted digital trading, and today, over 90% of the country›s trading volumes are carried out electronically. Globally, algorithmic trading—where technology makes real-time trading decisions—accounts for 60-70% of market volumes. Although newer to algorithmic trading in Saudi Arabia, these techniques now contribute to around 25% of traded volumes, reflecting their increasing importance.

The growing role of digitisation in financial services is mirrored in global IT spending trends. “The financial services sector represents almost 15% of global IT

spend,” noted El-Kuwaiz. This substantial investment is driving efficiencies, innovation and new product offerings across the sector.

Regulatory Innovation Catalysing Fintech Growth One of the critical drivers of fintech’s rise has been regulatory innovation.

Historically, financial technology advances were constrained by traditional business models and regulator y frameworks. The introduction of regulatory sandboxes and experimental licenses has opened the door to meaningful fintech innovation.

“When regulators, including those in Saudi Arabia, embraced sandbox environments and experimental permits, it unleashed new business models and opportunities,” El-Kuwaiz explained. This regulatory evolution means Saudi Arabia is now one of the fastest-growing fintech hubs globally. Fintech now accounts for nearly a third of the country’s venture capital investments. This shift not only showcases fintech’s potential, but also highlights the substantial capital required to develop a thriving fintech ecosystem.

Looking ahead, El-Kuwaiz identified several areas ripe for fintech innovation.

One of the most significant is simplifying the often-cumbersome account opening and authentication processes. “Nobody looks forward to opening an account with a financial services firm,” El-Kuwaiz remarked, emphasising the need for more efficient solutions. In addition, he highlighted the challenge financial institutions face in matching products to the right clients, where fintechdriven, data-driven insights can play a transformative role.

Bridging Fintech and Traditional Finance Platforms that consolidate various financial services into ‘mini-markets’ are another example of how fintech is streamlining the client experience. Roboadvisors, crowdfunding platforms and fund distribution solutions are some

of the innovations cited by El-Kuwaiz as making a significant impact on the sector.

The CMA, under El-Kuwaiz’s leadership, has embraced a forward-thinking regulatory stance to foster fintech innovation while ensuring market stability.

Four key areas of focus are financing, regulatory flexibility, acting as an interface between fintech firms and regulators and overall market development.

As the largest venture capital market in the region, Saudi Arabia’s ability to provide

fraudulent or manipulative behaviour.

“AI is helping us track market moves and prosecute offenders,” he added, illustrating how regulatory technology (RegTech) is enhancing oversight.

Fintech’s Influence on Future Investors Beyond capital markets, fintech is shaping the behaviour of the next generation of investors. El-Kuwaiz shared a personal example: “When I talk to my own kids about financial services, their view is

TRADITIONAL PLAYERS ARE AMONG THE LEADING INVESTORS IN FINTECH AND MAY EVEN BECOME ACQUIRERS – H.E. Mohammed El-Kuwaiz, Chairman of the Capital Market Authority (CMA)

fintech startups with the necessary financing has been instrumental in the sector’s rapid growth. El-Kuwaiz pointed out that the recent listing of the country’s first fintech company on the public market is evidence of this progress.

The CMA’s sandbox and experimental permit frameworks allow for tailored approaches to each startup, providing flexibility while protecting investors.

However, El-Kuwaiz stressed the importance of a cautious approach during the experimental phase, particularly in managing risks such as data security and market manipulation.

Technology for Regulatory Oversight Technological advancements are also reshaping the CMA’s regulatory capabilities. “Almost all legal actions in the capital market against offenders are detected using technology,” El-Kuwaiz revealed. The CMA has increasingly deployed artificial intelligence (AI) to monitor market activity, identifying potential anomalies that could signal

almost entirely informed by fintech, rather than traditional finance.” This generational shift underscores fintech’s transformative impact on the broader financial ecosystem.

While fintech is often seen as a disruptor, El-Kuwaiz stressed the symbiotic relationship emerging between fintech and traditional financial institutions. Increasingly, legacy financial firms are investing in fintech startups, either through venture capital or direct acquisitions, to remain competitive.

“This works both ways,” El-Kuwaiz noted.

“Traditional players are among the leading investors in fintech and may even become acquirers.”

As the fintech sector continues to expand, driven by regulatory innovation, technological advancements and increasing consumer demand, its influence on capital markets and the broader financial industry will deepen. Through strategic collaboration, investment and regulatory foresight, Saudi Arabia is wellpositioned to shape the future of financial services in the region. mea-biz.com mea-finance.com

2541

Private Aviation Excellence

DCAF Expands Charter Fleet to Meet Soaring Demand for Private Aviation in the UAE With a growing number of high-net-worth individuals, DC Aviation Al-Futtaim introduces cutting-edge aircraft to redefine luxury travel in the Middle East.

D

C Aviation Al-Futtaim VIP Terminal (DCAF), a premier business aviation services provider, has announced the expansion of its charter fleet with the addition of several state-of-the-art aircraft.

The fleet now includes the Bombardier Global 7500 – one of only two available for charter in the Middle East – alongside the Bombardier Global XRS, Challenger 604, two Hawker 4000 jets, and a Pilatus PC-12.

This expansion underscores DCAF’s commitment to delivering unmatched luxury, flexibility, and safety to its high-networth clientele.

combination of flexibility and convenience that aligns perfectly with the evolving needs of our VVIP clientele,” said Paul James, Director of Sales and Aircraft Management at DC Aviation Al-Futtaim VIP Terminal. “Whether it’s for a business trip to Europe, a leisure vacation in Africa, or a long-haul flight to the Americas, our new fleet enables us to cater to all travel preferences, from short regional hops to ultra-long-range global flights. We are proud to offer a service that places the client’s comfort and safety at the forefront, while ensuring reliability and seamless operations.”

As Dubai and the wider UAE continue to attract an increasing number of high-networth individuals (HNWIs), the demand for private charter services has experienced significant growth, with the market projected to grow by 5% from 2025 to 2030. According to the latest industry reports, the number of HNWIs in the UAE has surged by 55% over the past decade, reaching approximately 68,000 in 2023, with an expected net inflow of 6,700 millionaires by the end of 2024.

All the new aircraft in DCAF’s charter fleet are equipped with the latest amenities to ensure a premium travel experience. These include high-speed Wi-Fi, personalized catering, reclining seats, onboard entertainment, and fully customizable flight routes to suit individual preferences. Every detail is managed by an experienced team, including dedicated charter sales staff available 24/7, highly trained pilots, and cabin attendants who specialize in delivering VIP services. With the added luxury of fully tailored travel itineraries, clients can enjoy a seamless and stress-free experience, from booking to landing.

The UAE has firmly established itself as a global hub for business, tourism, and leisure, drawing affluent clients seeking both convenience and exclusivity in their travel options. DCAF’s expanded charter fleet is a direct response to this demand, offering clients a seamless, luxurious travel experience with access to some of the most advanced aircraft in the industry today.

“We are excited to offer these new aircraft to our clients, as it marks a key milestone in our journey of expanding services and meeting the rising demand in the private aviation sector,” said Holger Ostheimer, Managing Director of DC Aviation Al-Futtaim VIP Terminal.

26 MEABUSINESS

H olger Ostheimer, Managing Director of DC Aviation Al-Futtaim “The growth of the charter market in the region reflects a significant shift towards greater convenience, privacy, and flexibility, which our services are designed to deliver. This fleet expansion reinforces our commitment to excellence, offering clients an unparalleled travel experience with the highest standards of safety and luxury.”

The newly added aircraft offer a broad range of options. From the ultra-longrange capabilities of the Global 7500, which connects Dubai to destinations such as New York, Tokyo, Brazil, and Cape Town, to the versatile PC-12 turboprop ideal for short regional hops, the fleet is designed to cater to all travel preferences.

The Hawker 4000 and Challenger 604 are both equipped to handle mid-to-long-haul routes, ensuring seamless transitions for business travelers and vacationers alike.

“Charter flights offer an unparalleled

Business News for the MEA region

DC Aviation Group has an impeccable safety record of over 40,000 incidentfree flight hours. All group businesses prioritize safety as the cornerstone of their operations. DCAF is one of only two International Standard for Business Aircraft Handling (IS-BAH) Stage 3-certified FBOs in the Middle East and one of 27 organizations globally to attain this highest level of safety standard. Its comprehensive safety protocols and adherence to international aviation safety standards ensure that clients can travel with confidence.

SUCCESSION PLANNING

WEALTH TRANSFER:

Planning for a Smooth Transition Samir Atitallah CEO of Mirabaud Middle East, explains why the smooth and orderly transfer of wealth across the generations has become a strategic priority, and with many families facing their first intergenerational wealth transfer, clear governance and access to suitable expert services will become increasingly essential

I

n February of this year, the Dubai International Financial Centre (DIFC) launched a ‘Sustaining family business success’ programme with MIT Sloan Executive Education. The aim of this initiative is to provide higher education to family businesses, and to leading family enterprises across the generations. This programme follows other regional initiatives and laws that

28 42 MEABUSINESS

HOWEVER, ONLY 20 PER CENT OF FAMILY BUSINESSES IN THE MIDDLE EAST LAST THREE GENERATIONS

Business Banking News for the MEA region and Finance news in the MEA market

have been put in place to support the smooth transfer of wealth. The DIFC launched the Family Wealth Centre and also enacted the Family Arrangements Regulations in early 2023 to support the preservation of legacies across generations and geographies.

The smooth transfer of wealth is a strategic priority across the region.

According to wealth analytics firm, Kidbrooke, in the next decade, wealthy families across the Middle East will pass AED 3.67 trillion ($1 trillion) on to the next generation. Family wealth and businesses are the backbone of Middle East economies, and so their continued success is vital to the regional economy.

H oweve r, i n t h e M i d d l e Ea st , many families will face their first intergenerational wealth transfer. They will have to navigate this transition against a backdrop of evolving social norms and economic volatility, managing both Sharia

and non-Sharia law and international inheritance and tax laws. The impact of personal family relationships and emotional sensitivities are also at play, and as such these periods of transfer are complex and can be fraught with pitfalls.

Clear governance is critical Establishing clear governance helps manage the intricacies of wealth transfer and reduces the risk of friction.

Recently, the Dubai Centre for Family Businesses launched a ‘Sample Family Constitution’ toolkit, which guides families on how to establish clear and robust governance frameworks and manage family wealth. Family constitutions are documents that outline a family’s values, vision and the rules governing the management of a family estate and businesses. It can include guidelines for decision-making, conflict resolution and sets out family roles and responsibilities.

Family councils are also a useful forum for collaboration. They provide a regular opportunity for family members to discuss and resolve family business or estate related issues.

Such governance ensures the family house is in order and geared towards long-term sustainability which can prove vital in the process of wealth transfer and contribute to a smooth transition.

FAMILY WEALTH AND BUSINESSES ARE THE BACKBONE OF MIDDLE EAST ECONOMIES, AND SO THEIR CONTINUED SUCCESS IS VITAL TO THE REGIONAL ECONOMY Domestic Product. However, only 20 per cent of family businesses in the Middle East last for three generations.

Philip Marcovici, the co-author of Circular Economy Principles for Family Business and Wealth Stewardship believes that families should implement early succession plans to create stability

Family offices are powerful tools According to the Capgemini World Wealth Report, 2024, single-family offices, have grown by 200 per cent during the past decade. One-in-two (52 per cent) UltraHigh-Net-Worth Individuals want to establish a family office. Family offices can be powerful tools for wealthy families.

They provide a central hub that formalises and professionalises the management of family finances from investments and real estate to recordkeeping, philanthropy and wealth transfer according to the family’s values and vision.

Early succession planning is key Family-owned businesses generate around 60 per cent of the UAE’s Gross

have the skills, mindset, knowledge and education needed to lead the family business into the future.

The value of professional expertise A professional advisor can facilitate and mediate family conversations about legacy planning. According to Capgemini, 65 per cent of High-Net-Worth Individuals reveal biases that influence investment decisions during significant life events such as marriage, divorce and retirement.

And 79 per cent of High-Net-Worth Individuals want guidance from advisors to help manage such bias. Professional advisors can draw on sophisticated tools and expert knowledge to help clients with this. These include behavioural finance and artificial intelligence tools that base decisions on data rather than emotion or bias. Independent advisors can also propose a spectrum of options, and illustrate their impacts, that are helping wealthy family members to make better informed decisions.

A unique opportunity Samir Atitallah, CEO of Mirabaud Middle East

and reassurance to stakeholders. This means family businesses can leverage founders as mentors and for client relationships, while developing the role of younger generations over time. Existing family heads are increasingly seen not just as owners but stewards that should nurture a future-oriented and agile family enterprise in line with the family’s values, so as to ensure the next generation

The Great Wealth Transfer represents a unique opportunity for wealthy families in the Middle East. However, to survive and thrive, careful planning and a deep understanding of legal, financial, cultural and business considerations will be required. Drawing on both the support of government and advice from professional advisors who understand and are experienced with regional complexities and cultural nuances, High-Net-Worth Individuals can build a sustainable wealth strategy that bridges generations, secures legacy and fosters financial security for generations to come. mea-biz.com mea-finance.com

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MEA Finance SME Summit 2025

Unlocking the Potential of the SME Ecosystem The MEA Finance SME Business and Finance Summit to Define Strategies for Future Growth Spotlight on Innovation and Collaboration At its core, the MEA Finance SME Business and Finance Summit 2025 will provide a platform for addressing pressing concerns and uncovering new possibilities. Among the key themes are:

• B uilding Resilient Businesses: Strategies for long-term success in an increasingly competitive and digitized marketplace.

The event will convene leaders from business, banking, technology, fintech, and government sectors, offering a

• Governmental and Regulatory Support: How policymakers can build frameworks that allow small businesses to thrive in changing economic environments.

• B anking Innovations: Exploring the products, services, and specialized divisions tailored to meet the needs of SMEs and startups.

• T echnological Disruption: The role of AI, fintech, and digital solutions in streamlining operations, managing resources, and creating scalable opportunities.

unique opportunity for collaboration and knowledge exchange.

Why This Event Matters As the SME sector becomes a more significant driver of economic development, forums like this summit are vital in ensuring that entrepreneurs and small businesses receive the support they need. From addressing regulatory burdens to showcasing the latest advancements in AI and fintech, the summit promises actionable insights for stakeholders across the ecosystem.

The MEA Finance SME Business and Finance Summit 2025 will also focus on the cultural and economic importance of passing the entrepreneurial spirit to future generations. By creating an environment that prioritizes innovation, financial inclusion, and sustainability, the region can ensure that its SMEs remain competitive on a global scale.

Fostering Growth Through Partnerships The summit will also emphasize the role of partnerships in fostering SME growth. By encouraging collaboration between financial institutions, technology providers, and government bodies, the event aims to unlock new avenues of funding, improve access to cutting-edge tools, and reduce barriers to entry for small businesses. Through these partnerships, SMEs can gain the competitive edge needed to thrive in both local and international markets.

Join the Conversation The MEA Finance SME Business and Finance Summit 2025 is not just an event—it’s an opportunity to shape the future of small business in the Middle East. Taking place on February 26, 2025, at the Ritz Carlton JBR, Dubai, this is an unmissable platform for leaders, innovators, and decision-makers.

For more information, contact info@ cme-media.com

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4 FEB 2025 AI EVERYTHING SUMMIT ABU DHABI

5 – 6 FEB 2025 EXHIBITION SHOWCASE DUBAI

IN THE NEW AI ECONOMY 15,000+

500+

150+

60+

200+

VISITORS

EXHIBITORS

INVESTORS

COUNTRIES

SPEAKERS

ACCELERATED BY

/AiEverythingGLOBAL aieverythingglobal.com mea-biz.com

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Business News for the MEA region