May June 2021 by MEA Business

News, Reviews and Analysis.

May - June Issue 2021

NURTURING THE BUSINESS AND STARTUP ECOSYSTEM NEIL PETCH / GEORGE HOJEIGE / GEOFF RAPP

Modern data protection wherever and whenever you need it.

Introduction

he Covid-19 pandemic has changed the world we live in as well as the entire business landscape. There is no way to sugar coat the devastating impact the current situation is having on businesses throughout the region. However, just like all challenges before, we will get through this tough time and as a business community we will learn and grow as a result. The editorial staff of MEA Business are committed to reporting the positive business developments in the Middle East and Africa, as well as highlighting the business opportunities that already exist in the two regions. We also want to provide a platform for business leaders to share ideas, engage in constructive debates and form strategic partnerships. Our ultimate aim is to equip business leaders and professionals with the practical and tactical skills to thrive in the Middle East and Africa. With an emphasis on positive news stories, case studies and inspirational interviews, MEA business will inspire readers towards personal development and overall business success. The magazine is arranged to provide clear and concise informative sections including news sections on the Middle East and Africa, CEO interviews and market updates. We also include an essential event directory, which highlights the must-attend virtual and physical events in the region. Finally, in each issue of the magazine we include several focused reports and brand views. Our reports provide the all-important tools, to enable you to maintain a critical edge in the area highlighted. Our reports cover a range of sectors and industries, Aviation, Finance, Technology and Hospitality, to name but a few. The magazine and news service we offer are available on a variety of platforms, these include our printed magazine, e-magazine, website, and social media. Furthermore, we include augmented reality elements in some of our features to provide our readers with unparalleled coverage on the latest developments.

Kenneth Mitchen

Publisher, MEA Business

CONTENTS

NEWS MIDDLE EAST 6 Saudi Arabia wind farm project set to be the largest in the Middle East 8 G ulf Air Delivers 400,000 Vaccines from China and Russia CEO SURVEY 10 M ENA energy investements to exceed $805bln over the next five years: APICORP NEWS AFRICA 12 I nvest Africa and DLA piper partner to support ESG best practice in African renewable energy projects INVESTEMENT(FUNDING) 13 A cronis, recives more than $250M investment at a $2.5B valuation ECONOMY 14 U AE economy on tracks towards recovery in 2021 OPINION 16 H ow to start online trading (beginners guide)

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

ESG REPORT FINDINGS 18 New research shows the trend towards ESG and sustainability invertement is growing at pace due to the pandemic

ADVISORY VIEW 22 I ATA urges governments in the middle east to work together to develop a roadmap to restart aviation COVER STORY 24 N urturing business and startups ecosystem 26 A n optimistic outlook 29 Creating an enabling environment 30 Embracing the new dawn in the UAE SUSTAINABILITY 32 Rise in Sustainability focused Education to Fuel Dubai 2040 Urban Master Plan 34 The Middle East is set to become a market leader in renewable and clean energy

AVIATION 36 A ir Arabia reports first quarter 2021 net profit of AED 34 million 37 Gilf Air supports air tranport of urgent medical supplies to India for COVID-19 relief HOSPITALITY 38 STORY Hospitality launches a new 4-star lifestyle brand, CUE Hotels TECHNOLOGY 40 Accelerating Digital Transformation Through the hybrid cloud 42 Cashless Dubai Initiative reports major progress

AFRICA FINANCE 44 The impact of covid-19 on South Africa’s financial sector BANKING TECHNOLOGY 46 Open Banking without Strong Customer Authentication creates bad customer experience and leaves banks vulnerable. So why adopt one without the other OPINION PIECE 48 Can Inta-African trade buffer the continent from future global economic recessions? LIFESTYLE 50 Privacy is the new ‘ultimate luxury’ for leisure travellers

News Middle East

Saudi Arabia wind farm project set to be the largest in the Middle East Consortium led by renewable EDF Renewables and Masdar is delivering the Dumat Al Jandal, the first utility-scale wind farm project in Saudi Arabia and the largest in the Middle East

he Ministry of Energy of Saudi Arabia commemorated the midway mark of the construction of the Dumat Al Jandal wind farm, Saudi Arabia’s first utility-scale wind farm of more than 400MW capacity and the largest in the Middle East.

power into the energy mix and ultimately creating three times more work opportunities for the local talent. As we strive to complete this project with Quality and Safety as priority, we look forward to accelerating Saudi Arabia’s clean energy transition and sustainability leadership journey”.

His Royal Highness Abdulaziz Bin Salman, Minister of Energy in the Kingdom of Saudi Arabia, His Royal Highness Prince Faisal bin Nawaf, Governor of Al-Jouf Province, Kingdom of Saudi Arabia, His Excellency Ole E. Moesby, Ambassador of Denmark to Saudi Arabia, His Excellency Ludovic Pouille, Ambassador of France to Saudi Arabia, Bruno Bensasson, Group Senior Executive Vice-President Renewable Energies, and Chief Executive Officer of EDF Renewables and Fawaz Al Muharrami, Acting Executive Director, Clean Energy, Masdar, were among those who visited the Dumat Al Jandal wind farm construction site to commemorate the installation of half of the wind turbines from Vestas.

Developed by a consortium led by renewable energy leaders in the region: EDF Renewables and Masdar, the EPC order was made firm for Vestas in July 2019, and includes the supply and installation of 99 V150-4.2MW™ wind turbines, as well as a 20-year Active Output Management 4000 (AOM 4000) service agreement for the operation and maintenance of the wind farm.

Once completed and commercially operational in 2022, the wind farm will potentially supply clean electricity to 70,000 Saudi households and will displace 988,000 tonnes of carbon emissions every year, in support of the Kingdom’s climate change mitigation goals. Muhamed Bou-Zeid, General Manager of Vestas MENA says, “Our ambition as a sustainable energy solutions provider with a technology leadership in wind power is to co-create a renewable energy hub in Saudi Arabia and for the wider Middle East together with other sustainability leaders in the region. We believe that the Dumat Al Jandal wind farm is the first step to diversifying not only the Energy sector but also the Renewable Energy sector by adding wind

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Located in the Al-Jouf province, 900km north of Riyadh the capital, the Dumat Al Jandal wind farm project was awarded to the consortium by the Renewable Energy Project Development Office (REPDO) of the Saudi Ministry of Energy, Industry and Mineral Resources (MEIM) in January 2019. The Dumat Al Jandal wind farm will supply electricity under a 20-year purchase agreement (PPA) with the Saudi Power Procurement Company (SPPC), a subsidiary of the Saudi Electricity Company (SEC), the Saudi power generation and distribution company. The 99 turbines including their components first arrived at Duba Port in September 2020. They were transported to the Dumat Al Jandal site, where they are currently being assembled and installed. Together with our partners and contractors, safety and quality measures are being enforced throughout the transportation and construction phase to ensure the protection and health of all Vestas employees and contractors, including safekeeping the condition and reliability of the wind turbines and their components on outstanding loans for all affected pri-

Business News for the MEA region

OUR AMBITION AS A SUSTAINABLE ENERGY SOLUTIONS PROVIDER WITH A TECHNOLOGY LEADERSHIP IN WIND POWER IS TO CO-CREATE A RENEWABLE ENERGY HUB IN SAUDI ARABIA AND FOR THE WIDER MIDDLE EAST vate-sector companies and retail customers in UAE,” said Moody’s. At an emirate level, Dubai extended the freeze on public service fees until 2023 while in Abu Dhabi several government entities including Abu Dhabi Ports introduced a rent freeze this year for all businesses to provide further relief to investors. The federal government is also introducing programs to shore up investment in the country such as the ‘Make it in the Emirates’ and ‘Operation300bn’, initiatives that seek to support SMEs for the next 10-years to boost their contribution to the country’s economic output.

News Middle East

Gulf Air Delivers 400,000 Vaccines from China and Russia

ARAB BANK GROUP REPORTS FIRST QUARTER 2021 NET PROFIT OF $128.3 MILLION

Gulf Air, the national carrier of the Kingdom of Bahrain, has operated two cargo-only flights, delivering 300,000 doses of Sinopharm COVID-19 vaccine from the People’s Republic of China and 100,000 doses of Sputnik V COVID-19 vaccine from the Russian Federation. Gulf Air continues to support vaccine shipments to Bahrain, alongside supporting wider viral mitigation efforts, and delivering vital food and medical supplies. Gulf Air continues to works closely with government authorities across its network to resume operations as demand for travel grows, adapting to evolving precautionary guidelines, which are made available at gulfair.com/covid19

RAK Properties, reports 433% profit increase

A bdulaziz Abdullah Al Zaabi, Chairman of RAK Properties

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RAK Properties, has seen its profits increase by 433% during the first quarter of 2021. The company has recorded a profit total of AED 64.14 million, compared to AED 12.04 million for the same period in 2020. The company has also recorded a rise in the value of assets by 2.9% to reach AED 5.97 billion, compared to AED 5.8 billion dirhams in the first quarter of 2020, which is a result of increased investments in the development of hotel and residential projects in various locations across Ras Al Khaimah and Abu Dhabi. Additionally, the company’s revenues grew by 244% to reach AED 124.3 million in the first quarter of 2021, in comparison toAED 36.14 million in the first quarter of 2020.

Business News for the MEA region

Arab Bank Group has consolidated the financial statements of Oman Arab Bank under Group accounts in the first quarter of 2021. Oman Arab Bank has also recently finalized the acquisition of Al Izz Islamic Bank, a full-fledged Islamic bank, accordingly strengthening its presence in the Sultanate of Oman, in line with Arab Bank’s strategy to reinforce its business in the Gulf region. The consolidation of Oman Arab Bank under the Group accounts has materially increased the size of Group balance sheet during this period, with total assets increasing by $8.1 Billion and loans and deposits each increasing by $7.1 Billion. Arab Bank Group reported net income after tax of $128.3 million as compared to $147.6 million for the same period last year, recording a drop of 13%. Customer deposits grew by 30% to reach $45.8 billion as compared to $35.2 billion, while loans grew by 28% to reach $33.5 billion as compared $ 26.2 billion.

We are reducing our environmental footprint Considering the continued growth of the aviation industry and related carbon emissions, our sector needs to become more sustainable. So as KLM, we are taking responsibility for making our business more sustainable. How? By flying on sustainable fuel, with more efficient routing, with cleaner planes and by recycling our waste. Learn more about our journey to more sustainable aviation on klm.com/flyresponsibly

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Middle East News

MENA energy investments to exceed $805bn over the next five years: APICORP The Arab Petroleum Investments Corporation (APICORP), estimates that overall planned and committed investments in the MENA region will exceed USD805 bn over the next five years (2021–2025)

he Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, estimates that overall planned and committed investments in the MENA region will exceed USD805 bn over the next five years (2021–2025) – a USD13 bn increase from the USD792 bn estimate in last year’s five-year outlook. The report attributes this modest rise to four factors: A strong confidence in the rebound of global GDP, rising energy demand, the comeback of Libyan projects – which alone accounts for around USD10 bn in planned projects – and the accelerated pace of renewables in the region. Per current estimates, MENA will add 3GW of installed solar power capacity in 2021 alone – double that of 2020 – and 20GW over the next five years. The region’s economic forecasts suggest that commodity prices and exports will drive the rebound expected for most MENA countries in 2021. However, economies remain under fiscal strains due to unprecedented high debt levels and decline in oil prices, tourism/Hajj revenues, and personal remittances. Dr. Ahmed Ali Attiga, Chief Executive Officer of APICORP, said: “APICORP’s MENA Energy Investment Outlook 2021-2025 indicates that energy industries are entering a period of relative stability in terms of investments as most MENA countries return to GDP growth in 2021 and the energy transition showing no signs of slowing down. We anticipate a slow but steady recovery of the energy sector from the fallout of the COVID-19 pandemic, supported by continued investment from the public sector and an upswing in demand.”

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WE ANTICIPATE A SLOW BUT STEADY RECOVERY OF THE ENERGY SECTOR FROM THE FALLOUT OF THE COVID-19 PANDEMIC.

D r. Ahmed Ali Attiga, Chief Executive Officer of APICORP Gas investments Committed gas investments in MENA for the period 2021-2025 are expected to total USD75 bn – USD9.5 bn less than the previous outlook. The decline is attributed to the completion of several megaprojects in 2020 and countries being more cautious to new project commitments in an era of gas overcapacity.

chemicals sector are forecast to increase to USD109 billion in 2021-2025, a USD14.2 bn jump compared to last year’s outlook. By contrast, committed investments dipped by USD7.7 bn to around USD12.5 bn due to the completion of several megaprojects in 2020. Renewables investments As a whole, the MENA region expects to add an estimated 3GW of solar power in 2021 – doubling its total from 2020 – and almost 20GW by 2025. Wind and other sources such as hydropower are also coming into their own as countries step up their energy diversification plans.

Power investments

The hydrogen and ammonia race

Power investments in MENA for 2021-25 remain largely unaffected compared to APICORP’s 2020-24 outlook. Notably, the sector’s total investment amount of USD250 bn is the highest of all energy sectors – with an estimated USD93 bn and USD157 bn in committed and planned projects, respectively, over the next five years.

MENA is also a strong candidate for becoming a major hydrogen-exporting region thanks to its combination of lowcost gas resources and renewable energy. A few countries, such as Saudi Arabia and Morocco, have already made headways as low-cost exporters of blue and green hydrogen, net-zero ammonia and other low-carbon products, while other countries, such as Oman, UAE, and Egypt are attempting to catch up.

Petrochemicals investments Planned investments in the MENA petro-

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Disclaimer: This information is neither an offer to sell, purchase or subscribe for any investment nor a solicitation of such an offer. This information is general and does not take into account a person’s individual circumstances, objectives or needs. Investments carry risk and values may go up as well as down.

News Africa

Invest Africa and DLA Piper partner to support ESG best practice in African renewable energy projects The project will assemble experts from the worlds of impact investment, development finance and law

it is essential that projects be given the tools to apply best practice in ESG not only from an environmental perspective but also in terms of good governance, fair working conditions and contribution to social inclusion. I look forward to working closely with DLA Piper on this important topic.”

he global law firm, DLA Piper, has partnered with Invest Africa (www. InvestAfrica.com), the trade and investment platform for African markets, to support the development of ESG best practice in African renewable energy projects. Clear Environmental, Social and Governance (ESG) targets and measurements have become an increasingly important part of fundraising as investors seek to align their portfolios with sustainable growth. For a continent boasting ample natural resources, this presents a significant opportunity for Africa’s green energy sector. However, renewable does not always equal sustainable and develop-

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ing and articulating ESG metrics can pose a significant challenge to projects as they prepare investment rounds. The project will assemble experts from the worlds of impact investment, development finance and law. Across a series of online meetings, participants will discuss strategies to improve ESG practices in African renewable projects from both a fundraising and operational perspective. Veronica Bolton-Smith, COO of Invest Africa said, “Africa is particularly vulnerable to the impact of climate change despite contributing very little to global emissions. As the price of renewables fall, they will form an ever more important part of Africa’s electrification. In this context,

Business News for the MEA region

Natasha Luther-Jones, Global Co-Chair Energy and Natural Resources and International Co-Head Sustainability and ESG at DLA Piper also commented, “Climate change is one of the biggest challenges companies, and people, face today and when we look at its reduction – whether that be in how we power our devices, what we eat or how we dress, where we live or how we work – all roads come back to the need to increase the amount of accessible, and affordable, clean energy. However, renewable energy companies are not automatically sustainable as sustainability is a focus on all ESG factors, not just environmental. We know the need for renewable energy is only going to continue to rise, and therefore so will the number and size of renewable energy companies. The additional challenge is to make sure they are truly sustainable organisations and that’s what we’re excited about discussing during the webinar.”

Investment (Funding)

Acronis, receives more than $250M investment at a $2.5B valuation Funding to accelerate growth, expand its portfolio of cyber protection products, and enable service providers to serve their clients better

cronis, a cyber protection company, recently announce that it has received more than $250 million funding round from CVC Capital Partners and other investors. Acronis will use the funds to further accelerate growth by expanding its portfolio of natively integrated cyber protection products. A significant portion of the investment will also be used to further enhance Acronis’ go-to-market initiatives by expanding its broad partner network – most notably managed service providers (MSPs) – to help them better serve the cyber protection needs of their clients. The investment values the company at more than $2.5 billion.

portfolio and invest more in our partners’ success,” said Serguei “SB” Beloussov, founder and CEO of Acronis. “Our goal is to develop market-leading technology and help our partners grow their profits, while providing the best protection for their clients.” Acronis will continue to invest in staff resources, expanding its global sales, partner account management and partner success teams, and hiring new technical

With the new funding, Acronis will expand the support for cloud partners – providing them with additional sales and marketing resources, faster and localized technical support, dedicated partner success managers, and local data centers in 111 locations worldwide. Phil Goodwin, Research Director, Cloud Data Management for Protection for IDC, notes that the investment from CVC will add to the momentum behind cyber protection. “Acronis has been at the forefront of the cyber protection movement, establishing itself as a pioneer in solutions that unify advanced cybersecurity with innovative data protection. By continuing to expand their technical capabilities and partner network, the value they bring to the market will only increase.”

“Acronis’ talented management and R&D teams have invested significant resources developing an innovative cloud-native ‘MSP in a box’ solution, with integrated backup, disaster recovery, cybersecurity, remote management, and workflow tools,” said Leif Lindbäck, Senior Managing Director of CVC Capital Partners. “Acronis provides mission-critical solutions to more than 10,000 MSPs and half a million small and medium businesses. CVC has a strong track record in cybersecurity and partnering up with successful entrepreneurs, and we are looking forward to teaming up with Serguei Beloussov and the Acronis team to accelerate the company’s growth.” Acronis Cyber Protect claims to be the first unified cybersecurity and data protection solution that is natively integrated, so service providers can operate these critical functions through a single pane of glass, delivering comprehensive cyber protection at a lower cost. “With this additional funding, we will accelerate the development of our product

talent for its research and development centers in Bulgaria, Israel, and Singapore, as well as Switzerland and the United States.

S erguei Beloussov, founder and CEO of Acronis

ACRONIS HAS BEEN AT THE FOREFRONT OF THE CYBER PROTECTION MOVEMENT, ESTABLISHING ITSELF AS A PIONEER IN SOLUTIONS THAT UNIFY ADVANCED CYBERSECURITY WITH INNOVATIVE DATA PROTECTION.

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Economy

UAE economy on track towards recovery in 2021 Federal Competitiveness & Statistics Centre reveals preliminary results of economic performance in 2020

he UAE economy performed better than expected in 2020 despite the current global challenges brought about by the COVID-19 pandemic, said H.E. Abdulla Bin Touq Al Marri, UAE Minister of Economy, following the issuance of the preliminary results of the country’s economic performance by the Federal Competitiveness and Statistics Centre. The preliminary results revealed that the country’s macroeconomic indicators had seen a relatively limited decline in the gross domestic product and in the non-oil GDP last year by 6.1 per cent and 6.2 per cent, respectively, at constant (real) prices compared to 2019. This is comparatively low decline considering that the slump in major global economies reached several times lower. H.E. indicated that the year 2020 was an unprecedented year full of economic and health challenges that negatively impacted major global economies, and the UAE was not immune to the global economic system in this vulnerability. This is particularly so since the country’s economy is linked through foreign trade, foreign investment, tourism and the logistical sector with the movement of trade and investment and global transportation, which declined significantly in 2020 worldwide. However, the government’s proactive economic policies in dealing with the repercussions of the crisis, and the launch of support-

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ive economic packages had a positive role in limiting the negative effects of the pandemic on various vital sectors and on economic activity. The activation of all economic initiatives related to non-oil sectors and activities contributed positively to enhancing the stability of the country’s non-oil domestic product in the year 2020, as it reached AED 1,005.6 billion at constant prices. Meanwhile, the GDP at constant prices for the year 2020 amounted to AED 1,418.9 billion. Besides, some components of real GDP spending activities (at constant prices for the year 2010) witnessed positive growth in 2020, as government spending achieved an increase of more than AED 1.17 billion over the year 2019. At the same time, investments resulting from capital additions achieved a 3.9 per cent growth, amounting to more than AED 13.1 billion in the year 2019. In terms of negatively affected economic, accommodation and food services activities witnessed a negative growth of 23.6 per cent, as well as transportation and storage activities by 15.5 per cent. Wholesale and retail trade dropped by 13.1 per cent, while it decreased the activities of construction and building activities by 10.4 per cent. According to estimates of the Central Bank of the UAE, positive growth rates of the national economy will be restored

Business News for the MEA region

H .E. Abdulla Bin Touq Al Marri, UAE Minister of Economy by the end of 2021. It estimates a 2.5 per cent growth in real GDP, and 3.6 per cent in non-oil real GDP. These figures are expected to rise to 3.5 per cent growth in real GDP, and 3.9 per cent growth in non-oil real GDP in 2022. H.E explained that MoE, in cooperation with all concerned government entities, is working according to an ambitious vision to double the national economy over the next ten years, to reach AED 3 trillion by 2031.

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Opinion

How to start online trading (beginners guide) Dany Mawas, Regional Director at INFINOX -a globally recognised CFD and FX trading broker gives his opinion on the key financial instruments that are great options for beginner.

nline trading is increasing in popularity as more people seek additional and convenient income options. To assist beginners kick off their trading journeys, Dany Mawas, Regional Director at INFINOX -a globally recognised CFD and FX trading broker which operates

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in Africa - explains key financial instruments that are great options for beginner traders to get started with. Mawas says that while the market presents a vast array of earning potential, all beginner traders need to first understand the differences between FX and CFD trading, and that there are several

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factors to determine before deciding on their preferred trading instrument. FX Trading “FX is the abbreviated term for forex, and is the instrument for trading international currencies,” he says. “With markets reacting to daily geopolitical and

THE MARKET PRESENTS A VAST ARRAY OF EARNING POTENTIAL, ALL BEGINNER TRADERS NEED TO FIRST UNDERSTAND THE DIFFERENCES BETWEEN FX AND CFD TRADING. economic affairs, the forex market is ideal for speculating on world events and taking advantage of trade opportunities.” Mawas points out that the forex market is exceptionally popular with traders and is the largest market in the world with more than $5trn traded everyday. This, he says, creates a hugely liquid market and makes it easy to enter and exit at the price you want to, therefore increasing trade opportunities for all types of trader. Additionally, forex instruments also provide a significant amount of leverage, and volatility, thus making it one of the most accessible instruments to trade. CFD Trading CFD or ‘Contract for Difference’ is a financial instrument used to make a profit on the price change of an asset without having to own it. As such, the trader doesn’t need to buy a particular stock or commodity to make a profit in the future. Instead, the contract between a buyer and a seller provides traders with the ability to trade on margin without owning an asset outright. The value and movements of a contract do follow the underlying asset, but note that it is not directly pinned to the price, which is why you might see slight differences between brokers. A CFD is a broad asset class, with traders able to buy and sell CFDs in the following: CFD Equities: These allow traders to

trade the share prices of some of the world’s largest companies and most popular brands using smaller margin amounts. Furthermore, they allow traders to access global stock markets and take advantage of rising and falling share prices. CFD Indices: Indices are one of the most popular instruments to trade, and allow traders to buy and sell the value of the entire stock market in a single trade. They’re a great asset to speculate on world events as well as diversifying an investment portfolio. CFD Commodities: The world revolves around commodities and CFD commodity trading allows traders to speculate on the price of assets such as precious metals, energies or agriculture. As global events shape demand and supply, speculators will look to take advantage of trade opportunities or use them as a tool to manage their risk. CFD Futures: Futures contracts are standardised contracts with a fixed quantity, price and delivery location that serve as a legal agreement to purchase an asset at a fixed price in the future. Most commonly, futures contracts are used for trading commodities such as soybean, cocoa and crude oil, amongst others. They’re another great way to get exposure to popular markets. Factors to consider when choosing a trading instrument Mawas says beginner traders need to consider several factors before investing in their chosen instrument, including liquidity, volatility, low transaction costs and availability of information. “Liquidity refers to the ease in which traders can buy and sell their chosen instrument, with high levels of liquidity seen as easier to trade,” he explains. “The volatility of an instrument refers to its continuous rise and fall, with a highly volatile instrument favouring traders owing to its higher risk and greater profit possibilities.” Mawas adds that traders should look for an instrument that features low

D any Mawas, Regional Director at INFINOX. transaction costs as this will allow them to generate greater returns. “One must, however, be aware that their preferred broker may charge a minimal trading fee depending on the instrument chosen.” “The best financial instrument to trade depends on several factors, and for beginners, their budgets should dictate the type of instruments they trade,” he says. “Traders should also choose a broker that not only offers them support by being easily contactable with a local presence, but also offers learning resources.” Another viable way to learn and kickstart your trading journey is via online community apps. Here, traders can share knowledge, trades and experiences with like-minded people. Users are put in the driving seat with the latest news, community trending topics, top traders of the day and the latest prices all in one place. “Its easy-to-use functionality, coupled with an auto-copy feature allows you to automatically copy the top traders and receive the same results. This makes it the ideal platform for beginner traders to learn and grow,” concludes Mawas.

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ESG Report Findings

New research shows the trend towards ESG and sustainability investment is growing at pace due to the pandemic 85 percent of respondents surveyed said that they saw the COVID-19 pandemic as a ‘wake-up call’ on sustainability

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Business News for the MEA region

bu Dhabi Sustainability Week (ADSW), and its host Masdar, recently released the results of a global survey, which explores how businesses around the world are responding to Environmental, Social and Governance (ESG) in the wake of COVID-19. ESG Beyond Tipping Point surveyed 525 executives from global businesses that deliver annual revenues of $250 million USD or more, suggests that the COVID19 pandemic is having a profound impact on businesses’ perceptions of ESG issues. The research found that 87 percent of respondents indicated that ESG performance is now one of their organization’s core strategic objective, while 85 percent saw the COVID-19 pandemic as a wake-up call on sustainability. Many businesses anticipate that the pay-offs from strengthening ESG activities in their organization, or in the case of financial services companies incorporating ESG data into their decision-making, will accrue quickly. The research found that, 65 percent of respondents

expect to realize the financial benefit of ESG investment within the next two years, including 35 percent who expect it within the next 12 months. Yousef Ahmed Baselaib, Executive Director, Strategy & Corporate Development at Masdar, said, “ESG has always been part of the Masdar’s DNA and continues to be as the company delivers on its mandate of seeking quality investments in renewable energy and sustainable technologies. Fifteen years on since Masdar was formed, ESG has reached enough of a critical mass across all sectors that it is unlikely that we will see a return to the old profits-above-all models of the past. As we explored during Abu Dhabi Sustainability Week earlier this year, the opportunities presented by the Green Recovery will further fuel investor appetite for backing smart, sustainable companies. Those companies that ignore ESG will lose their relevance in the postCOVID era.” Shareholders are a driving force for ESG investment across sectors and regions. Nearly half of all respondents (49 percent) say they are prioritizing

ESG because it is important to investors. The research also provided deep insights on how different geographical regions and industry sectors are responding to the demand for greater ESG commitments. The research found that 70 percent of respondents from Asia-Pacific agreed that their company is committed to achieving net-zone emission, while only 33 percent of respondents from the Middle East agreed when asked the same question. At a sector level, the research found that balancing profit with sustainability is easier for some sectors than for

65 PERCENT OF RESPONDENTS EXPECT TO REALIZE THE FINANCIAL BENEFIT OF ESG INVESTMENT WITHIN THE NEXT TWO YEARS

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ESG Report Findings

others, with 68 percent of respondents from the technology sector agreeing they were able to balance customer demands for sustainability with shareholder expectations for profits. However, responses from the transport sector were much lower, with only 38 percent agreeing that the sector was able to balance customer demand and shareholder expectations. The ESG research was supported by a series of high-level interviews with industry leaders, including Dietmar Siersdorfer, Managing Director of Middle East and UAE at Siemens Energy, who said, “It is extremely gratifying to see the topics around ESG and sustainability draw more mainstream recognition,” said Dietmar Siersdorfer. “These issues need to recognized not just as a showpiece of corporate strategy but as a fundamental necessity of doing business. As a company founded to drive the energy transition and

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promote ESG and sustainability values, Siemens Energy has set an ambitious target of net zero emissions by 2030. We are dedicated to energizing society in line with the UN’s Sustainable Development Goals, to ensure the highest impact on societal development.” At an employee level, businesses cannot overlook the growing role of sustainability in the battle to recruit and retain high quality talent at all levels of the company. The extent to which a company embraces ESG is becoming a crucial factor in whether people want to work for them – even more than remuneration policies for some. Strikingly, 52 percent of respondents say they would be prepared to take a pay cut to move to a company with a better ESG performance. More than half of the respondents (51 percent) intend to create new ESGfocused management positions in the

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next 12 months, with organizations based in Asia-Pacific and the Middle East & Africa leading the way in this area. Even before the pandemic, sustainability was rising up the corporate agenda, but this trend has accelerated dramatically during the crisis: improved ESG performance is now a core strategic objective for most organizations. Crucially, the determination to embrace ESG principles is shared by all stakeholder groups, including investors, employees, customers and suppliers. And those organizations that are rising to the challenge are already beginning to see returns. With business leaders now recognizing that we have moved past the tipping point: ESG is now a key battleground in the competition for investment and talent – and, ultimately, to attract and retain customers.

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Advisory View

IATA urges governments in the Middle East to work together to develop a roadmap to restart aviation IATA calls for regional coordination to ensure plans can be efficiently implemented and urged governments to remain vigilant about the industry’s financial situation

he International Air Transport Association (IATA) called on governments in the Middle East to develop re-start plans to safely re-link their citizens, businesses and economies to global markets when the COVID-19 epidemiological situation permits. IATA also called for regional coor-

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dination to ensure that the plans can be efficiently implemented and urged governments to remain vigilant about the industry’s financial situation. “Re-establishing air connectivity will energize the economic recovery from COVID-19. With millions of jobs at risk

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from the prolonged shutdown, not a day should be lost once the epidemiological situation enables a re-opening. Restarting safely after a year or more in lockdown will need careful preparations. At the national level it is important that governments work with industry, so everyone understands the benchmarks

that need to be achieved to facilitate the lifting of travel restrictions. And at the regional level, where traffic is expected to ramp-up first, it is critical that governments are talking to each other so that all parties are aligned and ready for a restart,” said Kamil Al Awadhi, IATA Regional Vice President for Africa and the Middle East. IATA data shows January air passenger traffic in the region was down 82.3% compared to January 2019. The ongoing crisis puts over 1.7 million jobs in the Middle East and $105 billion in GDP at risk.

The ICAO Council’s recent approval of requirements for globally accepted COVID-19 test certificates, including the technology framework for secure digital versions and the future incorporation of vaccination certificates provides a global framework. Cooperation for a harmonized implementation across the Middle East will put the region on a solid footing for recovery. IATA Travel Pass will help to conveniently manage health credentials, while protecting against fraud. “With Qatar Airways and Emirates, Etihad and Gulf

“This is a unique situation. But we have good practices to rely on. Safety is the top priority for anything associated with aviation. That is because governments have long established global best practices for working together with industry and with each other. This same approach will help the re-start. There are two ends to every route. Both must be prepared or the restart cannot happen,” said Al Awadhi. IATA highlighted two critical areas of areas where governments need to work together: Operational restart A successful operational restart will include bringing aircraft and terminals back into service. Airlines need to ready their crew, technical personnel and aircraft. After a year of lockdowns, this requires refresher training and checks. A regional overview is needed to (1) ensure that the one country’s restart qualifications are accepted by its regional partners and (2) ensure that sufficient infrastructure capacity is ready to meet demand as markets unlock.

K amil Al Awadhi, IATA Regional Vice President for Africa and the Middle East.

Air signed-up for trials, the Gulf is at the forefront of preparations,” said Al Awadhi. Continued financial relief essential The financial trauma of the COVID-19 crisis continues. In 2020 Middle East airlines posted losses of $7.1billion in 2020; a loss of $68.47 for each passenger flown. With traffic at less than 20% of 2019 levels, the cash burn continues even with severe cost-cutting. Airlines in the region received $4.8 billion in government aid in 2020. Most of this support ($4.1 billion) was distributed through direct cash injections. Despite this several airlines in the Middle East remain at risk of bankruptcy or business administration. “A financially viable air transport sector will be needed to energize the recovery. Government relief for airlines has avoided massive failures that would jeopardize a restart. This has not been uniform across the region. With no clear timeline to recovery the situation is far from resolved. Governments that have provided relief will need to be prepared for more. And governments that have not yet stepped-up must recognize the growing risks to their economies as the crisis drags on,” said Al Awadhi.

Travel Credentials Testing and vaccinations will play a role in opening borders to travel as the pandemic comes under control. Simple, efficient, and harmonized standards for what credentials people will need to travel will boost consumer confidence and give strength to the recovery.

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Nurturing the Business and Startups Ecosystem The UAE’s efforts to diversify the economy away from its heavy dependence on oil revenues are opening more investment opportunities in the non-oil private sector and are critical to achieving sustainable growth

hile the UAE is by far the most diversified economy in the Mideast region, oil still contributes significantly to the country’s gross domestic product (GDP). Any volatility in the global markets and the oil industry could dampen confidence among investors and affect the country’s economic performance. Despite the impact of the twin shocks of COVID-19 and low oil prices on regional economies, the UAE is weathering the negative trend in global markets and analysts remain optimistic about the country’s growth this year.

The UAE has a slightly better public debt outlook compared to its regional neighbors and the implementation of structural reforms to nurture the growth of the nonoil private sector and the development of transparent rules-based fiscal frameworks is expected to support long-term sustainability. “In terms of ease of doing business, the UAE ranks higher than any other country in the Mideast region. The country is home to two international finance centers, Dubai International Financial Centre and Abu Dhabi Financial Markets, a point of attraction for institutional investors,”

said Neil Petch, Chairman & Co-founder, Virtuzone. The Emirates’ efforts to diversify the economy away from heavy dependence on oil revenues are opening more investment opportunities in the non-oil private sector and are critical to achieving sustainable growth. Over the last 24 months, the government has updated and enlarged the scope of available residence and tourist visas, to boosts UAE’s global competitiveness. Initiatives like this one are expected to attract more investors and entrepreneurs. The UAE is also introducing new initiatives in several sectors including finance and technology, including structural reforms to bolster growth and strengthen the country’s status as an international investment destination. As part of the government’s initiatives to open its economy, the country has one of the highest vaccination rates in the region together with Israel and Bahrain. “The UAE boasts of one of the world’s most organized and agile structures when it comes to combatting COVID-19. The country has one of the highest inoculation rates in the world,” said George Hojeige, the CEO of Virtuzone. IHS Markit said that business conditions in the UAE’s non-oil private sector continued to improve in April, as the country’s business activity increased reaching a 20-month high as its economy recovers from the pandemic.

THE UAE BOASTS OF ONE OF THE WORLD’S MOST ORGANIZED AND AGILE STRUCTURES WHEN IT COMES TO COMBATTING COVID-19. THE COUNTRY HAS ONE OF THE HIGHEST INOCULATION RATES IN THE WORLD. l eft to right. Neil Petch, Chairman & Co-founder, Virtuzone. George Hojeige, CEO, Virtuzone. Geoff Rapp, the Co-founder of Virtuzone.

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GEORGE HOJEIGE

had extended its $13.6 billion “Zero Cost Facility” for another six months from January to June 2021 in November last year to provide temporary relief to SMEs, companies and individuals who were affected by the pandemic. “The purpose of the targeted scheme is to facilitate the provision of temporary relief from the payments of principal and interest on outstanding loans for all affected private-sector companies and retail customers in the UAE” said Moody’s. At an emirate level, Dubai extended the freeze on public service fees until 2023 while in Abu Dhabi several government entities including Abu Dhabi Ports introduced a rent freeze this year for all businesses to provide further relief to invesl eft to right. Geoff Rapp, the Co-founder of Virtuzone. Neil Petch, Chairman & tors.

Co-founder, Virtuzone. George Hojeige, CEO, Virtuzone. Opening up Earlier this year, the UAE announced plans to offer Emirati citizenship and passports to a set group of foreigners, including foreign investors, professionals and special talents, a first in the GCC region as the country looks to give expats a bigger stake in the economy to drive growth. “The UAE immigration and labor authorities are continuously running updates to the relevant legislation and laws governing the immigration and labor laws in the country,” said Deloitte. The UAE authorities continue to be proactive when it comes to opening the country for foreigners which is evident in the updates which were made to its visas which include allowing university students to sponsor and bring their families, a visa-free travel agreement with Israel and remote working visas. “The country also has a large expat community that makes it easier and more welcoming for foreign investors coming from any part of the world, making it easier to connect with other entrepreneurs, build a network and settle in,” Hojeige said. The UAE offers foreign investors who are interested in establishing their businesses in the country two options – establishing a presence on the mainland in any of the seven emirates or establishing in one of the UAE’s economic free zones. Last November, the government scrapped a

law that required an Emirati shareholder when a foreigner plans to establish a business in the country. “Instead of reliance on oil and tourism revenue, the UAE can be a service provider, a Geneva of the 21st century.” added Petch. KPMG stated that given the current economic impact of the pandemic crisis, the move to allow foreign entrepreneurs and investors to fully establish and own companies is a welcome move for new and existing investors and reinforces the country’s appeal as a regional investment hub. Government support The UAE authorities, both at the emirate and federal level, are introducing several initiatives to support investors/ entrepreneurs as part of the country’s efforts to open economic activities amid the realization of the role foreign direct investment can play in easing fiscal burdens and foster sustainable growth. “By establishing the UAE as the global hub for innovation, the country can attract innovators, investors, professionals, and special talents,” said Geoff Rapp, the Co-founder of Virtuzone. Last month, the UAE central banks extended the crucial parts of its stimulus aid scheme, the Targeted Economic Support Scheme until June 2022after it

The federal government is also introducing programs to shore up investment in the country, such as the ‘Make it in the Emirates’ and ‘Operation300bn’, initiatives that seek to support SME’s for the next 10-years to boost their contribution to the country’s economic output.

GIVEN THE CURRENT ECONOMIC IMPACT OF THE PANDEMIC CRISIS, THE MOVE TO ALLOW FOREIGN ENTREPRENEURS AND INVESTORS TO FULLY ESTABLISH AND OWN COMPANIES IS A WELCOME MOVE FOR NEW AND EXISTING INVESTORS AND REINFORCES THE COUNTRY’S APPEAL AS A REGIONAL INVESTMENT HUB.

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An optimistic outlook Neil Petch, Chairman & Co-founder, Virtuzone highlights how the UAE ranks higher in doing business compared to other countries in the Mideast region and how businesses can benefit from the country’s business conducive environment. How will UAE-based businesses benefit from a borderless business environment? A borderless economy refers to a situation whereby a Canadian entrepreneur/ investor runs an e-commerce platform that sells Chinese manufactured products to customers in Africa. The question becomes why the investor is running their business from Canada when they can do business from the UAE, a country that is naturally positioned as an international trade hub situated between Asia and Europe in on the east and west respectively as well as the CIS to the north and Africa to the south. As Virtuzone, what we can do is give this investor/entrepreneur insight on how they can run their business better. This insight includes how the investor/entrepreneur can reduce operating cost, the infrastructure and logistics facilities that the UAE offers such as Jebel Ali Port and Dubai World Central. The investor also needs to be given an insight into the advantages of UAE brands leveraging initiatives such as ‘Make it in the UAE’ and recently unveiled ‘Operation300bn’. A brand that is associated with the UAE and Dubai, is trusted and has an advantage on the market. In terms of ease of doing business, the UAE ranks higher than any other country in the Mideast region. The country is home to two international finance centres, Dubai, is International Financial Centre and Abu Dhabi Financial

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N eil Petch, Chairman & Co-founder, Virtuzone. Markets, a point of attraction for institutional investors. All the points highlighted above are crucial to investors/entrepreneurs who seeks to do business globally whilst based in the UAE or Dubai. As a company, we are building on the momentum that we already have by highlighting how the UAE is globally connected due to its central location and its airlines, Emirates and Etihad, which connects with the world’s continents. It takes time for any country to develop infrastructure that enables ease of doing business.

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Last October, Mark Beer, former Chief Executive of the DIFC Courts joined Virtuzone as a special advisor. Virtuzone and Mark’s shared vision is to position the UAE at the heart of a borderless global economy, supporting the country’s transition to the Fourth Industrial Revolution as a knowledge-based, technology-enabled digital economy. The collaboration aims to deliver a global, borderless jurisdiction in which companies can establish, transact and succeed internationally whilst avoiding the increasing boundaries, borders and

INSTEAD OF RELIANCE ON OIL AND TOURISM REVENUE, THE UAE CAN BE A SERVICE PROVIDER, A GENEVA OF THE 21ST CENTURY

NEIL PETCH tariffs of our deglobalizing world. This prescient business setup model is expected to provide a way forward at a challenging time where widespread travel restrictions are in place and companies have limited opportunities to expand physically and tap into new markets. What initiatives should the UAE implement do to achieve this? Instead of reliance on oil and tourism revenue, the UAE can be a service provider, a Geneva of the 21st century. The UAE is moving towards providing a business conducive environment and an affordable lifestyle for all residence such as more cost-efficient healthcare plans that can be offered anywhere in the world. The UAE’s boasts of the most advanced infrastructure and biggest hospitals in the world such as Cleveland in Abu Dhabi.

exchange, inspiring architecture and enabling support services allowing investors/entrepreneurs and clean money into the country. However, in the new age, we should think about how we can do things differently, how we can disrupt the market using the latest cutting-edge technologies. These include the latest biometric security technology such as finger scanners and iris recognition so that one knows who you are dealing with. This goes beyond software that demonstrates not only the UBO (Ultimate Beneficial Owner). The technologies should allow investors/entrepreneurs to set up a business remotely while simultaneously that person needs to conduct a medical test to residence visa in the UAE – all being done remotely. Globally, governments should appoint entities that can facilitate these processes making it easier for investors to do business worldwide. Part of this important borderless infrastructure is how can funds be transferred between goods/service provider and consumer to facilitate. The existing banking structure was built 50 years ago, though it is still providing excellent service, it does not cater for sectors such as SMEs. The current financial service sector should make it easier for startups to open bank accounts as well as access financing.

The UAE can provide all these services to its citizens and residents, but for investors/entrepreneurs to fully appreciate what the country has to offer they have to be in the Emirates. For example, for one to open a bank account you should be resident in the country.

There is a need for more digital banks in the Middle East and Africa. The MENA region financial services sector’s digitalization drive is partly self-motivated. Industry experts expect the banks’ tech-savvy customers and regulatory initiatives such as regulatory sandbox and open banking to accelerate digital transformation.

Having two international financial hubs works in the favour of whoever aspires to run their business from the UAE. DIFC and ADGM offer a robust independent judicial system and regulatory framework, a global financial

The UAE’s first independent digital banking platform, YAP, was launched in March. Other neobanks expected to launch soon include Zand, the first Shari’ah-compliant digital-exclusive bank, while ADQ also plans to set up

a digital bank using a legacy banking license of First Abu Dhabi Bank. Digital banks or neo banks bring banking services to the customer hence there is no need for someone to drive to the bank branch to open an account. A customer provides all required information on a mobile app and AI can access risk associated with an individual allowing a bank to process services like loans among other banking products. People are increasingly adopting technology to make life more efficient. The private sector and entrepreneurs are working closely with the government to drive foreign direct investment. For the past 12 years, Virtuzone has been working hand in glove with governments to try and enhance the business setup process for investors/entrepreneurs. Globally, governments are competing to provide the most conducive environment for doing business. For example, if a customer walks into a Samsung store looking for a television, they will get a Samsung TV. If another customer walks into Carrefour, Sharaf DG, or Jumbo, they’ll have a variety of choices. The same happens with setting up a business. When a customer walks into Virtuzone, we listen to their requirements and find solutions that best fit their needs. At Virtuzone, we use buying power to drive the absolute best prices on behalf of customers to enhance customer experience. The best journey in setting up a company is not always the cheapest one, but it is the one that saves you time while enabling you to set up following the right protocol. Most entrepreneurs think it is all about getting the company licence. It is not. It’s about getting an operating company, and to have an operating company, in 99% of cases you need a bank account, and you need a telephone. That is the role we take. At Virtuzone, we spent 12 years building up a supmea-biz.com

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portive ecosystem so that investors/ entrepreneurs don’t just get set up but get supported in their growth journey. And we’ve spent those 12 years studying our customers, Know Your Customer (KYC), compliance and other issues of governance that are required by our partners. This puts us in an excellent position to help investors/ entrepreneurs get that bank account to set up a company. Why is the UAE best positioned to introduce a borderless jurisdiction in the MENA region? The UAE can make decisions swiftly compared to other Western governments that are very dependent when it comes to public opinion. If you take several countries’ response to the outbreak of the COVID-19 pandemic, the UAE is among the top 10 countries that have handled the situation well. The country also boasts of the most business-friendly environment as the UAE is among the countries that have the highest rates of coronavirus vaccination globally. As the UAE is moving towards reopening all economic activities, investors/ entrepreneurs and other people from different nations are relocating to the Emirates to enjoy all the experiences that the country has to offer. This is due to what the UAE has to offer including a conducive working environment and recreational services as well as access to world-class infrastructure such as a great telecoms network. The UAE offers one the opportunity to work next to some of the world’s leading financial centres, DIFC Courts and ADGM Courts, that uses an independent English language common law judiciary while enjoying the world-class standard of living which someone may not afford in the West. The move allows bright minds to come together as people suddenly realise that the UAE is a great place to stay hence, some of the country’s sectors such as real estate are rebounding

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N eil Petch, Chairman & Co-founder, Virtuzone. amid an increase in the demand for accommodation. Dubai and the entire UAE position itself as the best jurisdiction to do business. The opening of Virtuzone in Israel a few months ago is also boosting our business in several ways. Israeli companies are looking for ways to collaborate or operate their business in the UAE – having Israeli-owned multinationals companies running their operations through Emirates-based structures. This is because corporation tax in Israel is 23%, in the UK it was recently increased to 25% while in France it’s even higher. Multinationals companies or entrepreneurs who runs their operations from the UAE are guaranteed of saving at least 23% compared to operating in other jurisdictions. Similarly, the UAE is a much stronger entity than any other traditional jurisdictions such as the British Virgin Islands, Cayman Islands, Hong Kong and Cyprus. The renowned structures that have in use in these traditions are weak which gives the UAE a competi-

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tive edge. Now what we seek to do as Virtuzone is to champion the UAE globally. At Virtuzone we urge businesses to establish their operations in the UAE which gives them access to government support, better infrastructure, better taxation, a more vibrant growing community – and we are there to educate investors/entrepreneurs make it easier for them to establish in the UAE. We would like that first step for investors/entrepreneurs to be an easier one and equip them with knowledge as they look to establish in the UAE especially now when there are global travel and movement restrictions. Initiatives that investors/entrepreneurs can benefit from in the UAE include digital banking and remote approvals. The UAE financial sector is also working to regulate Open Banking and the use of blockchain. The UAE needs to be looking at the traditional places where hundreds of thousands of companies have been operating from including Cayman Islands, the British Virgin Islands and Mauritius.

Creating an enabling environment Geoff Rapp, Co-founder, Virtuzone, sheds light on how the UAE’s extensive adoption of technology can spur sustainable future growth in the face of global economic upheavals such as the coronavirus pandemic In which areas/sectors do you expect to see the most “disruption” in the future? The adoption of Artificial intelligence (AI) and Machine Learning (ML) is one of the biggest disruptors and it is not limited to any certain sector or industry. The outbreak of the COVID-19 pandemic is accelerating digitalization at a faster pace than initially anticipated and the integration of AI solutions into operations, products, or services by different businesses is far from over. Digitalization is already evident in the retail sector, manufacturing, banking, gaming, etc. The possibilities are endless. Businesses are looking for more and improved solutions to provide personalized services without compromising productivity – and AI can help them bridge that gap. The adoption of AI and ML has the potential to grow in the Middle East. PwC projected that the Middle East region’s AI industry will be valued at $320 billion by 2030 and $96 billion of that will be in the UAE. We expect more disruption in telecommunications infrastructure and blockchain technology. The pandemic is forcing several people to work remotely, which is driving the demand for reliable and advanced telecoms solutions. We also expect to see a surge in videotelephony software that allows people to collaborate efficiently even if they are working remotely such as Zoom. This includes programs that allow employees to stay aligned and updated with their projects, allowing cohesive operations, data sharing and reporting, among other things. As the Middle East region progresses towards a borderless business economy, whose bedrock is a strong digital infrastructure as well as a reliable and accessible telecoms system. In the future, both consumers and businesses will require a stricter and more invincible digital ecosystem, as they increasingly do

business digitally. Blockchain can provide that higher level of security, as well as higher efficiency through the provision of real-time information updates and better transparency. Similarly, we also see significant disruptions in the academic sector, retail and finance. How can the UAE further encourage positive disruption and innovation? In the Middle East region, the UAE is doing well when it comes to introducing and implementing initiatives to support innovation. The government unveiled innovation labs, funding programs and accelerators for tech-driven companies, as well as other initiatives to speed up the development and adoption of tech solutions. These include the Mohammed Bin Rashid Innovation Fund (MBRF) and the Dubai Future Accelerators. The UAE is also keen on building smart cities and we expect the Expo 2020 Dubai to introduce new technologies that will be further integrated into the country’s sectors. To accelerate the adoption of innovative technologies and support disruption, the consumers must be enlightened on the merits of using such technologies to prepare them for the change that is coming. Which sectors do you think the UAE should focus on to make the economy more resilient, self-sustaining and less dependent on variables such as the prices of oil and gas and tourism? By establishing the UAE as the global hub for innovation, the country can attract innovators, investors, professionals, and special talents. These groups can come and establish their business or practice their professions in the UAE because they have access to funding, R&D, facilities, government support and among other things. This can be a major contributor to sustainable growth in the UAE in the future and this includes the fintech sec-

G eoff Rapp, Co-founder, Virtuzone. tor, robotics, automation tech, agritech, etc. The UAE is already an established hub for international trade, especially in the MENA region. The country’s borderless economic system ensures business continuity despite global shockwaves such as the COVID-19 pandemic and the 2008 financial crisis. Investors can stay in the UAE and continue running their businesses anywhere globally. The borderless system also allows UAEbased and registered firms to continue operations internationally. With international trade and e-commerce booming, the shipping and logistics sectors will play a crucial role in ensuring that goods are transported efficiently and safely. The demand for logistics and transportation facilities is expected to expand in the future and there is a need to build a system that can be easily scaled up to accommodate increasing demand while ensuring uninterrupted growth. Tourism will remain a key contributor to the UAE’s economy. Despite the travel and movement restrictions to curb the spread of the pandemic, Dubai remains a top destination for international tourism, especially for European travellers. The UAE government’s swift response to address the pandemic has helped local tourism to bounce back, and though it is still sluggish compared to pre-pandemic levels the signs of recovery are there and we expect the sector to recover further as the country increases its inoculation drive.

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Embracing the new dawn in the UAE One of the core strengths of Dubai and the entire UAE is that it is at the forefront of innovation, not just in the region but even in comparison with the rest of the world, says George Hojeige, CEO of Virtuzone

DUBAI’S MAIN STRENGTH HAS ALWAYS BEEN ITS AGILITY AND CAPABILITY TO MAKE DECISIONS QUICKLY AND IMPLEMENT THEM. THIS HAS BEEN A HUGE ADVANTAGE.

GEORGE HOJEIGE tiatives, infrastructure, and a conducive ecosystem to advance support their projects. Dubai also attracts people who are keen to use the latest technologies and wants to be pioneers in using and leveraging cutting-edge technologies to give their businesses a competitive edge in their respective markets.

ics and 3D printing, boosting its reputation as a leader in innovation and the region’s technological hub.

The implementation of the latest technologies also helps accelerate business processes, which translates to significant savings in both time and cost while increasing efficiency and production capacity. These factors give startups the boost and competitive edge they require to enter the market strong and vie for market share with established players.

Through this position, the UAE attracts investors and entrepreneurs who are keen on developing new technologies. The Dubai government’s commitment to innovation gives entrepreneurs, companies, and innovators the confidence to push the limits when it comes to developing new ideas and technologies owing to the availability of ini-

Lifestyle is also a big factor. The UAE’s openness to change and willingness to embrace new ideas helps put people at ease here and gives them a sense of long-term security. Foreigners can visualize a home for themselves in the UAE, which is why entrepreneurs and investors are willing to establish their businesses in the Emirates.

G eorge Hojeige, CEO, Virtuzone. How can Dubai or the UAE, remain competitive and further cement its position as the startup capital of the MENA region and the world? One of the core strengths of Dubai and the entire UAE is that it is at the forefront of innovation, not just in the region but even in comparison with the rest of the world. As a strong advocate of innovation, the UAE has been actively adopting emerging technologies, such as artificial intelligence (AI), robot-

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THE IMPLEMENTATION OF THE LATEST TECHNOLOGIES ALSO HELPS ACCELERATE BUSINESS PROCESSES, WHICH TRANSLATES TO SIGNIFICANT SAVINGS IN BOTH TIME AND COST WHILE INCREASING EFFICIENCY AND PRODUCTION CAPACITY.”

GEORGE HOJEIGE Dubai is one of the safest cities in the world and the outbreak of the pandemic has proven the effectiveness of the government in planning and mitigating risk. The UAE boasts of one of the world’s most organized and agile structures when it comes to combatting COVID-19. The country has one of the highest inoculation rates in the world. In the UAE, healthcare is very accessible to all including tourists and the cumulative result of all of that is that the country has the situation under control and right on track to recovery.

What separates Dubai/the UAE from other business hubs in the world such as Hong Kong, New York and London?

explore the trade and business opportunities in the Commonwealth of Independent States (CIS) countries and even China.

The biggest incentive is the UAE’s 0% corporate and personal income tax regime, as well as its low VAT and the lower cost of living compared with Hong Kong, New York, and London. For example, in New York, the corporate tax ranges from 4.425% to 9% depending on the type of corporation. For small businesses, the applicable tax is around 6.5% to 8.85%.

The UAE also boasts of corporate facilities and business centers that are at a world-class level, but they are still a more affordable solution compared with other business hubs like Hong Kong and New York. The country also has a large expat community that makes it easier and more welcoming for foreign investors coming from any part of the world making it easier to connect with other entrepreneurs, build a network and settle in.

In Hong Kong, they have a two-tiered tax regime where companies may pay 8.25% or 16.5% depending on their profits, while unincorporated businesses may pay 7.5% or 15% – depending on their profits. In cases where the two-tiered system does not apply, the default tax is 16.5% for companies and 15% for unincorporated businesses. While in London, the UK, they are planning to increase corporate tax to 25%. For investors who want to optimize their taxes, then the choice is obvious: You would want to set up in the UAE and benefit from its 0% tax benefits. The UAE is also strategically positioned, so it gives both local and international businesses access to new and emerging markets not just in the Middle East, but also in Africa and Central Asia. That’s one of the reasons we established Virtuzone CIS in Astana International Financial Centre in Kazakhstan. We are bridging UAE-based companies and global businesses that want to do business in Central Asia and

In which areas should the government increase its collaboration with the private sector and how? For startups, one of the biggest challenges is funding. Although we have seen the UAE actively supporting startups through funding initiatives, accelerator and incubator programs, we expect to see even better results if the public and private sectors increase their collaboration and better align on their objectives to provide easy access to funding. There should also be increased public and private collaboration to create a conducive environment for the startup community, so we can see real, tangible results and, hopefully, exponential growth. There is an increase in the number of entrepreneurs who are applying for operating licenses despite the global impact of COVID-19 on economic activities. The country needs to be well equipped to meet this increase in demand as well as empower startups – because they are key to cultivating a strong, resilient economy. Another area of focus for public-private collaboration should be the sectors that will especially be pivotal in the future: fintech, digital technologies, blockchain and digital banking. Banking is a big concern for many new entrepreneurs and startups, as it can be challenging to open a bank account. As fintech is increasingly becoming a part of our daily lives, we expect more fintech startups in the future, hence the country needs to be well prepared for the future including streamlining regulation for the fintech sector.

G eorge Hojeige, CEO, Virtuzone. mea-biz.com

Sustainability

Rise in Sustainability Focused Education to Fuel Dubai 2040 Urban Master Plan Dubai International Academic City and Dubai Knowledge Park to supply environmental talent for UAE’s knowledge-based economy

or more than a decade, Dubai International Academic City and Dubai Knowledge Park have witnessed a year-on-year rise in student demand for natural and physical science, indicating a growing wave of environmentally-conscious talent committed to climate action. Collectively home to more than 27,000 students, the academic and human resource management hubs are producing more people graduates in these fields than ever before. And while it comes from a low base, the steady rise will contribute to the Dubai 2040 Urban Master Plan that aims to transform the emirate into a people-centric city and enhance environmental sustainability. Sustainable development and conservation have been components of the UAE’s vision for decades. Both remain strategic priorities under the comprehensive plan launched by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai in March. As well as nearly doubling the city’s population from 3.3 million to 5.8 million, more than 60 per cent of Dubai will be comprised of nature reserves and natural areas, with land allocated for education and health facilities increased by 25 per cent. Mohammad Abdullah, Managing Director of Dubai International Academic City and Dubai Knowledge Park, said: “Education is a catalyst for social change and a crucial factor in creating a knowledge-based economy powered by people who care deeply about

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climate change. Not only is it vital to educate the next generation of change-makers to respond positively to global warming, but it is also essential for academic institutions to play their role. We actively encourage universities to launch sustainability-related programmes and continue to deepen collaboration and cooperation in research and development to address emerging market needs. Through this approach, we have a track record for developing highly-skilled graduates with the expertise and intelligence to create positive change as effective leaders and thus contribute to the UAE’s sustainability goals.” Professor Abdullah Alshamsi, Vice Chancellor of The British University in Dubai, said “As the UAE focuses on sustainability in its National Agenda 2021 and now with the launch of Dubai 2040 Urban Plan, demand for sustainability programmes is increasing. The British University in Dubai offers programmes in sustainability at both Masters and doctoral levels enabling our students to create sustainable designs based on innovation, and our new undergraduate programmes also feature elements of sustainability. Our students will be able to utilise the latest technology and research in creating smart sustainable solutions to reinforce the efficiency of infrastructure and preserve energy consumption in the built environment. Applying urban sustainable design and creating smart cities support residents’ well-being and happiness within an environmentally-aware approach to healthy living and working.”

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Andrew Mackenzie, Head of Institute of Sustainable Development, Middlesex University, added: “Over the last decade there has been an increased awareness of the negative impact humans have on the environment, climate change and also around gender and racial equality. Awareness is especially prevalent in the youth of today and this is leading more

M ohammad Abdullah, Managing Director of Dubai International Academic City and Dubai Knowledge Park

EDUCATION IS A CATALYST FOR SOCIAL CHANGE AND A CRUCIAL FACTOR IN CREATING A KNOWLEDGE-BASED ECONOMY POWERED BY PEOPLE WHO CARE DEEPLY ABOUT CLIMATE CHANGE. students seeking degrees and careers in the field of sustainability where they believe they can make a difference. Universities play an important role as a catalyst towards sustainable development and Middlesex University Dubai is confident that our graduates will contribute to the ambitious Dubai 2040 Urban Plan.” He added: “The university’s primary focus is to integrate sustainable development into our teaching and learning practices, producing impactful research and meaningful partnerships. As a result, students engage in cutting edge and transformative learning experiences and research in diverse subject areas from sustainable supply chain management to green IT to sustainable fashion. Programmes like our MA Global Governance in Sustainable Development also equip graduates with expertise and knowledge to be transformative in their professions.” Universities across the two districts have imbibed learning in sustainable practices across graduate, post-graduate, and specialised doctoral programmes, whether it is in business management, engineering, energy, geo-sciences or infrastructure. Some specialised programmes being offered include solar and alternate energy graduate programmes at Amity University in Dubai, global sustainability engineering and renewable energy engineering post-graduate programmes at Hariot-Watt University, a Masters programme in global governance and sustainable development

at the Middlesex University, and a doctorate in architecture and sustainable built environment at the British University in Dubai. As part of the business district’s eco-friendly drive, Dubai International Academic City and Dubai Knowledge Park partnered with the Ministry of Climate Change and Environment to exchange knowledge on nature, climate change, and related fields. They will promote academic initiatives, raise environmental awareness and share research papers so the ministry can study the feasibility of sustainability projects and

implement the most effective ideas. Furthermore, Dubai International Academic City completed a 1.1 MWp solar carport to meet up to a fifth of its electricity consumption demands. It will provide renewable energy to 12 university buildings. As one of the world’s largest higher education business districts, the Dubai International Academic City campus hosts over 150 nationalities and world-renowned academic institutions. DKP is focused on education, vocational training and human resources. mea-biz.com

Sustainability

The Middle East is set to become a market leader in renewable and clean energy Renewable and clean energy will account for 34% of total power sector investments across the MENA region in the next five years, according to research revealed by Middle East Energy

enewable & Clean Energy will debut as the theme for Middle East Energy’s inaugural virtual focus week on 17 May 2021, as research from Informa Markets revealed 83 GW of renewable and clean energy capacity, mainly solar and wind power, is planned across the Middle East and North Africa (MENA) region within the next 20 years, and more than AED 55 billion of solar power projects are expected to become operational by 2026. The figures were highlighted as the Middle East is set to become a market leader in renewable and clean energy due to well-designed auctions, favourable financing conditions, and declining technology costs, all contributing to bringing renewables into the mainstream. Claudia Konieczna, Exhibition Director, Middle East Energy, said: “We expect renewable and clean energy to account

C laudia Konieczna, Exhibition Director, Middle East Energy.

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for 34% of total power sector investments across the MENA region in the next five years. ‘“Naturally, with the demand for new power capacity increasing in the region, one of the hot topics of discussion is renewable and clean energy and how countries are advancing initiatives in this sector. Creating dialogue on this subject is paramount to supporting Middle East Energy’s attendees in all future decision-making processes.” In the GCC, the UAE remains a leader in energy transition thanks to a robust pipeline of developments. These include the 2GW Al Dhafra solar power project in Abu Dhabi, which will eventually power 160,000 homes, and the 1.5GW PV3 project, also in the capital. In Dubai, the fourth and fifth phases of the Mohammed bin Rashid Al Maktoum (MBR) solar facility are under development. Once completed, the MBR plant will be the world’s largest single-site solar installation, with a planned total capacity of 5GW when

WE EXPECT RENEWABLE AND CLEAN ENERGY TO ACCOUNT FOR 34% OF TOTAL POWER SECTOR INVESTMENTS ACROSS THE MENA REGION IN THE NEXT FIVE YEARS.

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fully operational by 2030. Putting those figures in context, 1GW is equal to 3.125 million photovoltaic panels. The importance of the renewables and clean sector, and the anticipated growth, was recently underscored in the report “COVID-19 Impact on Renewable Energy Market – Global Forecast to 2021”. The findings revealed revenue generated from renewable and clean energy is expected to increase from AED 675 billion in 2020 to AED 829 billion in 2021, representing a 22% increase. “In line with these findings, we have developed a conference programme which provides the opportunity to discuss, debate and learn more about the impact renewable and clean energy will have on the sector as part of our virtual three-day conference,” added Konieczna. Ian Williamson, Chief Project Delivery, Red Sea Utilities, said: “We will be able to evidence that tourist destinations, even at this scale, can be 100% powered by renewable energy. Eventually Nations will have their energy grids powered from renewables and nuclear, but in the meantime, we can achieve 100% renewable energy for The Red Sea project while staying ‘off grid.” “We started with the ambition of having 100% renewable energy sources for The Red Sea project, and we are delivering on it,” he added. The focused sector week is the first of a four-week series of online events brought by Middle East Energy from 17 May until 9 June 2021, featuring: Renewable & Clean Energy, Transmission & Distribution, Critical & Backup Power and Energy Consumption & Management.

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Aviation

Air Arabia reports first quarter 2021 net profit of AED 34 million Profitable first quarter registered despite COVID-19 impact on the company’s bottom-line.

Air Arabia (PJSC), the Middle East & North Africa’s first and largest low-cost carrier, today reported a profitable first quarter (January to March) 2021 despite COVID-19 continued impact on the aviation’s industry financial and operational performance. Air Arabia reported a net profit of AED 34 million for the three months ending March 31, 2021, a 52 percent less than the corresponding 2020 figure of AED 71 million. In the same period, the airline posted a turnover of AED 572 million, a 37 percent less than the corresponding first quarter of last year. More than 1.3 million passengers flew with Air Arabia between January and March 2021 across the carrier’s five hubs while the airline’s average seat load factor – or passengers carried as a percentage of available seats – during the first three months of 2021 maintained a high average and stood at 77 per cent. Air Arabia managed to register a profitable first quarter despite COVID-19 pandemic continuous impact on the industry’s bottom-line. According to IATA, international

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passenger traffic fell more than 80% in first quarter 2021 compared to pre-pandemic as travel restrictions tightened in the face of continuing concerns over coronavirus spread. Sheikh Abdullah Bin Mohamed Al Thani, Chairman of Air Arabia, said: “We are proud that Air Arabia managed to post another profitable quarter despite the continued impact of the COVID-19 pandemic on the aviation industry worldwide. This is a testament to the carrier’s robust business and its management team. Although the tightened restrictions on air travel continued in first quarter of this year, the gradual resumption to selected destinations combined with cost control measures adopted by the carrier helped to deliver profitability during the first quarter of this year”. He added: “The impact of COVID-19 pandemic on the global aviation industry remains material and of a changing nature, nonetheless, we have full confidence in the fundamentals and the strength of the aviation industry worldwide as well as the crucial role air travel will play in supporting

Business News for the MEA region

regional and global economic recovery”. While flight resumption during the pandemic remains subject to restrictions and changing travel regulations, Air Arabia managed during the first quarter of this year to resume operations to a selected number of destinations across its five hubs in the UAE, Morocco and Egypt. The limited resumption of flights across various markets helped support the first quarter financial and operational performance. Al Thani concluded: “While we remain hopeful that air travel restrictions will ease with the increasing rate of vaccination drives across key markets, Air Arabia remains focused on adopting further measures to control costs and support business continuity during this period while we continue to resume operations where possible”.

Gulf Air supports air transport of urgent medical supplies to India for COVID-19 relief The airline will offer cargo capacity on a space-available basis on all flights to India helping local non-governmental organizations deliver relief supplies rapidly to where it is needed by contacting the Embassy of India in Bahrain

ulf Air, the national carrier of the Kingdom of Bahrain, is to support a cargo airlift of urgent medical supplies and relief items to the Republic of India to assist in their fight to control the COVID-19 situation in the country. The airline will offer cargo capacity on a space-available basis on all flights to India helping local non-governmental organizations deliver relief supplies rapidly to where it is needed by contacting the Embassy of India in Bahrain. Captain Waleed AlAlawi, Gulf Air’s Acting Chief Executive Officer said: “We have operating direct flights between the Kingdom of Bahrain and the Republic of India since 1960 and its network of cities have always been key to our global network. We resumed our flights to India in September 2020 to restart the traffic flow between Bahrain and India and have maintained our passenger operations to date. We remain dedicated to support cities with vital supplies to help them through this difficult time. Gulf Air proudly supports the Kingdom of Bahrain in its humanitarian efforts and stands ready to assist non-governmental organizations that have urgent medical supplies for COVID-19 relief to

transport these supplies to India” HE Mr Piyush Srivastava, Ambassador of India to the Kingdom of Bahrain said: “We deeply appreciate the solidarity and support from the Kingdom of Bahrain. As we battle this global pandemic together and work closely to overcome its challenges, we thank Gulf Air for this kind gesture and for continuing to support India.” Gulf Air currently flies to and from Abu Dhabi, Dubai, Kuwait, Riyadh, Jeddah, Dammam, Medina, Muscat, Cairo, Amman, Casablanca, London, Paris, Frankfurt,

Athens, Bangkok, Manila, Singapore, Dhaka, Colombo, the Maldives and several destinations in India and Pakistan. Being one of the few airlines that never stopped flying in 2020, Gulf Air has continuously worked closely with government authorities across its network to resume operations as demand for travel grows. Gulf Air boasts a flexible and agile network by immediately adapting to government guidelines and civil aviation directives and has been responsive to numerous rule changes and updates.

mea-biz.com

Hospitality

STORY Hospitality launches a new 4-star lifestyle brand, CUE Hotels The new lifestyle properties boast vibrant contemporary designs, and offer an inspiring experience to modern travelers

TORY Hospitality, an integrated and innovative hospitality management platform based in Abu Dhabi, announced the launch of its contemporary 4-star lifestyle brand, CUE Hotels. The hotels under the CUE brand represent a modern, chic and urban ambience that provides an unforgettable and exciting experience to its guests. CentreVille Hotel & Experience is the first hotel which was opened under the CUE brand in January 2021, and rebranded as CUE Podgorica. The second CUE hotel is expected to open in Abu Dhabi by the end of Q1 2022. The CUE Hotels bring a distinctive fresh approach into today’s hotel landscape. Conceived to transport and transform, CUE Hotels stands for happy chic. The brand claim says it all: ‘Unplug & Play’ and extends an invitation to step into a sensory wonderland with the aim to invite guests to disconnect from the virtual realm and dive into reality where visceral memories are made and human connections are ignited. Commenting on the launch Claudio Capaccioli, CEO, STORY Hospitality said: “We are pleased to announce the launch of CUE Hotels, a perfect sensory wonderland for today’s aspirational traveler. Our endeavor is to provide our guests with a more close, personal and authentic service which will leave them feeling refreshed and recharged. Today’s explorers crave places with a personality that embraces their surroundings or tells a story, our CUE Hotels offer a unique experience and inspiration that are as rich as the location destination itself and will always be a reference in the cities where they are present.” The first hotel rebranded under CUE Hotels is CUE Podgorica, located at The Capital Plaza complex in the heart of Montenegro’s

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C laudio Capaccioli, CEO, STORY Hospitality. capital city Podgorica. The hotel features six floors,122 comfortable rooms, grandly furnished apartments, conference halls, a gallery space and a unique Roof Top Penthouse Suite and terrace for private events and celebrations providing a stunning view of the city and mountains. “The launch of CUE Hotels is to address our guests needs in the upscale sector; enhanced and more personalised service, seamless technology and authentic experience in the best locations around the world. The concept behind this brand, is to create a playful environment, a colorful stay and stimulate social interaction intended for today’s travelers seeking a unique and authentic experience in a place where new things are happening around all the time” added Capaccioli. In the UAE, STORY Hospitality will open its second property under CUE Hotels in Abu Dhabi. CUE Abu Dhabi will offer a new world of hospitality imbued with the splendidness of casual elegance, and is expected to open by end of Q3 2021.

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THE LAUNCH OF CUE HOTELS IS TO ADDRESS OUR GUESTS NEEDS IN THE UPSCALE SECTOR; ENHANCED AND MORE PERSONALISED SERVICE, SEAMLESS TECHNOLOGY AND AUTHENTIC EXPERIENCE IN THE BEST LOCATIONS AROUND THE WORLD.

Technology

Accelerating Digital Transformation Through the Hybrid Cloud An opinion piece by Lancelot Guo, President, Ecosystem and Sales Operations, Alibaba Cloud Intelligence

borderless economy refers to a situation whereby a Canadian entrepreneur/ investor runs an e-commerce platform that sells Chinese manufactured products to customers in Africa. The question becomes why the investor is running their business from Canada when they can do business from the UAE, a country that is naturally positioned as an international trade hub situated between Asia and Europe on the east and west respectively as well as the CIS to the north and Africa to the south.

US$45.70 billion market value in 2019. This growing demand for hybrid cloud solutions is driven by a range of factors. As mentioned earlier, rapid digitalization has increased market competition to a point where it’s not enough for a company to simply deploy its resources in the cloud. Now,

In our digital world, it will only become more critical for organizations to keep their momentum going through choosing hybrid cloud solutions to recover and grow. However, a hybrid cloud is a complex entity that requires careful planning, management and optimization.

As the world continues to work relentlessly to ensure business continuity amid the disruption of the pandemic, the rapid pace of digitalization and the contribution of cloud technology in sustaining organizations big and small cannot be underestimated.

What is the Hybrid Cloud?

Retail brands with only a brick-and-mortar presence prior to the pandemic have been going online and offering omnichannel experiences to keep up with the dynamic demands of today’s digital-first consumers for convenience and speed. Likewise, F&B stalls and hawkers are leveraging online channels and solutions to maintain their razor-thin margins. The hybrid cloud is flying high. Mordor Intelligence, a global market research and consulting firm, projected that the market value of the hybrid cloud infrastructure in 2025 would be in the realm of US$128.01 billion. That represents a compound annual growth rate of 18.73 percent from its

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companies need a more effective and efficient cloud-based solution that puts the customer first through providing seamless scalability and adaptability. Cutting-edge tech such as the Internet of Things (IoT) and Artificial Intelligence (AI) are also pushing demand for cloud-edge solutions and data driven intelligence, helping ambitious organizations meet the needs of today’s increasingly dynamic and digitalized marketplace.

Lancelot Guo, President, Ecosystem and Sales Operations, Alibaba Cloud Intelligence

Business News for the MEA region

A hybrid cloud is a solution that combines a private cloud with one or more public cloud services, with proprietary software enabling communication between each distinct service. Usually an on-premise solution, it addresses the challenges and limitations of both the public and private cloud, and integrates the advantages of both traditional models. While every hybrid cloud deployment is different, each one provides the agility, elasticity, and cost-effectiveness of the public cloud, without compromising on the private cloud’s robust data security offer. Common Challenges

HYBRID CLOUD IS A SOLUTION THAT COMBINES A PRIVATE CLOUD WITH ONE OR MORE PUBLIC CLOUD SERVICES, WITH PROPRIETARY SOFTWARE ENABLING COMMUNICATION BETWEEN EACH DISTINCT SERVICE. As mentioned above, hybrid clouds are by their very nature, diverse entities that combine the best elements of the public and private cloud. While this diversity provides organizations with an unprecedented level of flexibility that allows them to customize their deployment to meet exact business needs, it also introduces a high level of complexity. Through understanding the challenges associated with a hybrid cloud implementation, companies can manage this complexity and make smart choices allowing them to strategize and decide on the best hybrid solution for their needs. As such, they may want to consider: • C ompatibility: Many organizations use a mix of private, public and hybrid cloud solutions. With multiple infrastructures, the incompatibility of tools and processes may lead to service issues and a poor end user experience. • S ecurity: With a hybrid cloud solution, an organization’s corporate data moves between and is accessed across multiple platforms. This high data mobility and platform diversity increases risk, requiring the organization to put specific policies and procedures in place to address any potential vulnerabilities. • C ompliance: With ever-changing governmental and industrial regulations, compliance is a complex undertaking for online applications and datasets. This complexity is exacerbated for a hybrid cloud deployment, where a com-

pany must ensure every element conforms within the regions they operate in. Some of the benefits of the Hybrid Cloud The hybrid cloud has many benefits for its users, including simplifying system expansion processes, improving development efforts and increasing profits. Here are some of the other advantages: • S ecurity: Protecting valuable data is always a challenge in network-enabled applications, but this is especially true of public clouds. With a hybrid cloud model, however, companies can enjoy the best of both worlds - leverage the security of a private cloud as well as the power and services of a public cloud. • S calability: Critical data, assets, and operations can continue to reside in the private cloud, but organizations can now utilize the expansive power of cloud computing to increase their operating capacity quickly and efficiently. • S uperior employee experience: Staff can easily share and schedule their large-scale data responsibilities, while seamlessly managing their hybrid cloud deployment. • A gility to adapt to customer needs: Organizations can adapt their services and scale to seamlessly improve the end user experience through choosing the hybrid cloud.

• C ost-efficiency: Keeping overheads low is always a priority for organizations, especially SMEs. Requiring lower capital expenditure upfront, but giving companies the option of buying IT resources as needed, hybrid cloud keeps companies nimble and responsive. Last Word At the end of the day, organizations large and small, require a hybrid cloud infrastructure as well as a proper hybrid cloud strategy to truly grow – the strategy must be one that can deliver high performance, and secure cloud workloads, while ensuring consistent operations and access to vibrant business ecosystems. In addition, the strategy also needs to support business innovation and growth without concerns about the compatibility with existing infrastructure. Companies should understand that businesses are on their own personal cloud journeys and no journey is identical. They need to select the right cloud service provider that is able to effectively bridge the operational needs of their business, without sacrificing security. As organizations advance in an increasingly digital world, they should consider adopting hybrid cloud solutions to protect their business-critical applications. In addition to reducing operational expenses, these solutions ensure a smooth working experience for employees whether they are at home or in the office. mea-biz.com

Technology

Cashless Dubai Initiative reports major progress As part of the Fintech Surge interview series for the Future Blockchain Summit from 17 to 20 October at the Dubai World Trade Centre, Meera Alshaikh, Head of International Relations and Partnerships, Smart Dubai Department, talks about the myriad benefits for both the public and private sector as it transitions to a cashless society, spurred on by the government response to the Covid-19 pandemic and its vision to develop the emirate as a Smart City.

By: Oscar Wendel, Senior Content Manager of Fintech Surge taking place on October 17 - 20 at Dubai World Trade Center

he Cashless Dubai Initiative being spearheaded by the Government of Dubai is bearing fruit after an intensive six to eight months, reports Meera Alshaikh, Head of International Relations and Partnerships, Smart Dubai Department. The initiative kicked off in later 2019, quickly gaining prominence due to the impact of Covid-19. “The shift towards a cashless society has many important returns for cities and countries and has gained enormous importance in recent times, as cashless payments are perceived as a safer way to limit the spread of the coronavirus,” comments Alshaikh.

cash and 61% of e-commerce consumers use cash and use cards and wallets more than the cash-on-delivery option online. In addition, a 2017 report by Visa on the potential benefits of the cashless society estimate an AED1.88 billion increase in government revenue, an AED2.2 billion increase in individual savings and an AED5.5 billion increase in business revenue in Dubai alone. “That, of course, is in addition to a wide range of catalytic benefits, such as wage growth and jobs created. So, to that extent, and in line with the leadership’s vision to position Dubai as one of the smartest and happiest cities on earth, the government formed what is now known as the Cashless Dubai

A recent survey by global public opinion and data company YouGov has made it possible to quantify the impact of Covid-19 on payments and shopping behaviour: An astonishing 71% of retail consumers prefer digital channels over

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Business News for the MEA region

Initiative,” explains Alshaikh. The Cashless Dubai Working Group has been tasked to develop and implement a roadmap for a seamless transition towards a cashless society in the emirate. The working group comprises Directors General from all relevant local authorities, as well as related stakeholders such as major banks. The initiative forms part of the Smart Dubai drive by the government to transform the emirate into a preeminent global Smart City. The working group has, to date, identified six major focus areas, namely government services, peer-to-peer transactions, retail and related services, the unbanked and underbanked population and tourism. A major concern being addressed in tandem is the issue of economic security and cybercrime. “There are many enabling factors to ensure we achieve success in these focus areas, such as having an agile and enabling environment for consumer protection,” points out Alshaikh. Collaboration between the public and private sector, especially start-ups, will be critical to support the initiative to

THERE ARE MANY ENABLING FACTORS TO ENSURE WE ACHIEVE SUCCESS IN THESE FOCUS AREAS, SUCH AS HAVING AN AGILE AND ENABLING ENVIRONMENT FOR CONSUMER PROTECTION lar are far-reaching, especially as it will allow international tourists to Dubai to integrate seamlessly with the cashless society. Another low-hanging fruit for a painless transition to a cashless society is to look at how the Roads & Transport Authority (RTA) can integrate with Smart Dubai.

M eera Alshaikh, Head of International Relations and Partnerships, Smart Dubai Department develop fast and reliable technology for such a cashless transition. Innovation will be driven by crowd-sourcing, with the ultimate goal to improve the economic competitiveness of Dubai and the entire region. “We have had extensive brainstorming sessions, culminating in various initiatives currently in the market as we look to enhance the existing solutions so as to come up with more innovative ideas to take them forward,” highlights Alshaikh. These include a unified payments

network in collaboration with the Department of Economic Development in Dubai to enable start-ups to plug their APIs into a unified network for the benefit of both consumers and businesses. “Any companies with APIs that are ready to be added can reach out to us and we can connect them with the team working to take this initiative forward,” reveals Alshaikh. In terms of the future, one of the main goals is to create a universal opensource platform that both companies and individuals can simply plug into. The implications for tourism in particu-

Alshaikh points out that the RTA’s Nol e-purse system is already a man enabler of what the initiative hopes to achieve over the next few years. “It is all about generating opportunities and ensuring convenience. If you are an individual who is not open to the idea of a cashless society, then we also want to strive to provide you with the option to use your local currency.” It is this flexibility and adaptability that is fast accelerating the transition to a cashless society in Dubai, and also setting a global benchmark in terms of its regulation and implementation. “We are constantly looking at global best practice in this regard and how to apply it locally. We are very excited at what we have been able to achieve in a short period. Many countries have been working on such a framework for far longer with fewer tangible results, so we are very optimistic about our achievements to date and our future goals,” concludes Alshaikh. mea-biz.com

Africa Finance

The impact of covid-19 on South Africa’s financial sector Despite inherent obstacles and the additional burden of the global pandemic, South Africa harbours the ambition, and the advantages to become the continent’s financial hub. However, worrying indicators and difficult numbers will need to be overcome before it can achieve this goal.

By Mushtak Parker

t is no surprise that the Money Smart Week South Africa held in March 2021 reflected the changing mood music of a global financial sector under siege over the past year thanks to the economic and health impact of the COVID-19 pandemic. Under normal circumstances, the event, which is aligned to Global Money Week, promotes financial literacy “aimed at motivating and empowering South Africans to become better educated about their finances.” This year’s theme was building financial resilience and staying healthy in the context of the pandemic. The vagaries of the pandemic including lockdowns and social distancing, fast-tracked changes in the banking sector especially digitisation, but the current watch words include business and personal finance resilience, proliferation of scams and fraud, credit responsibility, importance of retirement and funeral planning, and the necessity of a will. Sub Head: The Financial Sector So how is the South African financial sector coping under COVID-19? Finance Minister Tito Mboweni in his 2021 Budget in February put a moral burden on South African banks, insurance companies and pension funds, reminding them of their role in helping to build the post-pandemic recovery, especially in financing the country’s huge infrastructure ask. The government has committed to a R791.2bn infrastructure investment drive

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including a blended finance Infrastructure Fund in collaboration with the private sector. The carrot dangling in front of the financial sector is Mboweni’s reiteration of his ambition to turn the country into the financial hub for the continent thus opening up new expansion and investment opportunities for its banking majors. “The government and the South African Reserve Bank,” maintains Mahin Dissanayake, Senior Director, Fitch Ratings’ African banks team, “will certainly encourage banks to step-up lending to stimulate the economy. What measures or incentives the authorities will introduce remains unclear. The budget refers to an ambitious, yet vital, infrastructure roll-out which presents significant lending opportunities for banks, but this will play out over the medium term. State-owned enterprises (SOEs) will be at the forefront of the roll-out and it is important that these entities are financially sustainable.” In the past especially during the Zuma presidency, banks were holding back because of the dire macroeconomic situation and allegations of corruption and state capture. Fitch maintains that South African banks “will initially remain cautious on infrastructure financing given elevated sovereign risks. It also exposes them to a whole range of new risks such as the viability of new projects, repayment risk, political risk and operations risk. These could be mitigated by solid transaction structures and the banks

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certainly do have this expertise.” Mboweni confirmed that the Treasury will soon publish draft amendments to Regulation 28 for public comment. The amendments to Regulation 28 seek to make it easier for pension funds to increase investment in infrastructure. South African banks are expected to remain focused on traditional retail and corporate lending, partly based on projected low customer loan growth in 2021 (less than 5%) reflecting the macroeconomic backdrop, the weak operating environment and the impact of the pandemic on borrowers. The ‘Big 3’ rating agencies, Fitch, Moody’s and S&P, were all caught on the backfoot over Mboweni’s stronger fiscal trajectory in Budget 21, “mostly driven by exogenous developments from a faster recovery in domestic demand, as well as the rebound in international prices for mining commodities which has supported activity in extractive industries.” The dire economic indicators too present a mixed outlook for 2021. GDP growth, according to Mboweni “is expected to rebound by 3.3% in 2021, following a 7.2% contraction in 2020, and will average 1.9% in the outer two years.” For Pretoria to deliver on the manifold needs of the economy in uplifting the population out of poverty on a sustained basis, a minimum GDP growth of 5% is required. Gross government debt increased from 65.6% to 80.3% of GDP for 2020/21. Mboweni says this will stabilise at 88.9% of GDP in 2025/26. “Our borrowing requirement will remain well above R500bn in each year of the medium term despite the modest improvements in our fiscal position. Consequently, gross loan debt will increase from R3.95 trillion in the current fiscal year to R5.2 trillion in 2023/24,” he reminded. But at what cost? The country’s debt-service burden is projected to grow progressively from R232.9bn in 2020/21 to R338.6bn in 2023/24.

NATIONAL TREASURY CONTINUES TO WORK WITH INDUSTRY BODIES TO IMPLEMENT REFORMS PROMOTING SOUTH AFRICA AS A FINANCIAL HUB FOR THE CONTINENT. Sub Head: The Outlook So, how does this impact on the outlook for the South African financial sector? Fitch’s Dissanayake believes that the drag on bank earnings and prospects due to the pandemic will last for at least another two years. “Profitability weakened significantly in 2020, with the sector’s operating return on risk-weighted assets declining to 1.2% from 2.8% in 2019. Banks’ business and revenue prospects will remain subdued in 2021,” he adds. The rebound in the domestic economy to him will not translate to a rebound in banks’ profitability because of low interest rates, muted loan growth and still high credit losses. “We believe asset quality will continue to deteriorate with the expiry of debt relief measures, rising unemployment and the hardest hit SMEs struggling to recover from the crisis. Around 20% of sector loans have been restructured due to the pandemic and some of these will inevitably become impaired. We guide a sector impaired loan ratio of 6.5% by end-2021 (end-2020: 5.2%) – albeit still low by global emerging markets standards.” Structural challenges however remain. The low take-up of the Treasury’s loan guarantee scheme by SMEs but extended by the banks,

for instance, could mean the winding down of the facility. Relaxed liquidity and capital rules as well as state-guaranteed loans were important measures introduced by the Ramaphosa government last year. This ensured banks continued to lend through the crisis. The low take-up could result in the National Treasury making further revisions to the scheme. One of the main reasons for the limited success of the loan guarantee scheme was that the banks extended debt relief directly to customers. But these measures will eventually wind down. Fitch sees a continuing rise in impaired loans in 2021 and this may also discourage banks from expanding their loan books. Sub Head: The Hub How realistic also is Mboweni’s financial hub ambitions? In his Budget speech he confirmed that the “National Treasury continues to work with industry bodies to implement reforms promoting South Africa as a financial hub for the continent in light of the African Continental Free Trade Agreement (AcFTA).” The other potential ‘rivals’ are Nairobi in Kenya and Casablanca in Morocco. The latter, despite minimal post-Arab Spring reforms, remains a Francophone absolute monarchy with a lack of financial market

depth and critical mass. The former is dogged by political instability, a tortuous bureaucracy, a lack of financial market depth and critical mass, entrenched corruption and a spill over terrorism threat from neighbouring Somalia. Bankers maintain that if South Africa can capitalise on its financial sector strengths comprising a world class architecture including the Johannesburg Stock Exchange (JSE) with its cross listing to the London Stock Exchange and others in Africa, then this can offset its geographic remoteness and socio-economic structural issues. Fitch’s Dissanayake maintains that the “South African financial services and markets are among the most developed and best regulated in global emerging markets. South Africa has a significant lead over other African markets.” His colleague in the Sovereign Ratings team, Mahmoud Harb, concurs that “strong international investor interest in South Africa’s financial markets reflect its fully floating exchange rate regime, the deep rand markets and a strong institutional framework and regulatory environment.” Indeed, to them, the silver lining for the financial sector is the comfort South African banks give through their “solid capitalization, funding and liquidity.”

mea-biz.com

Banking Technology

Open Banking without Strong Customer Authentication creates bad customer experience and leaves banks vulnerable. So why adopt one without the other? An opinion piece by Ali Chamseddine, Head of Payments Strategy at Callsign

egulators around the world are implementing various incarnations of Open Banking with the goal of changing how payments are made in their regions. They are looking for faster, cheaper, and simpler payments internationally, and they are trying to stimulate innovation to achieve this through Open Banking. Where previously banks only allowed their customers to see their accounts through their own banking website or mobile app, Open Banking now forces banks to make this data available to any aggregator that connects to it, giving consumers control over their data and their finances. This has created a wealth of new banks, services, and ecosystems to emerge around payments, in turn giving consumers greater choice of financial service providers. In Europe, Open Banking launched a payment directive alongside authentication regulations, specifically: Strong Customer Authentication (SCA). We are now seeing the start of Open Banking initiatives in several GCC countries. Bahrain leads the charge with every bank opening up their application programming Interfaces (APIs), making customer data completely available. The Saudi Arabian Monetary Authority (SAMA) has Introduced an Open Banking policy to advance innovation in the sector, planned to go live in 2022; and in the UAE, the Emirates NBD has partnered to develop a cloud-based, gamified Open Banking sandbox to enable developers and FinTech’s to innovate, build and publish API applications.

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However – except for Bahrain– regulators have not yet stepped in to shape this movement, why does this matter? It matters for two reasons, without a consistent approach to SCA, both the security and usability of the entire ecosystem is compromised. Although Open Banking is undeniably a positive move for both consumers and financial institutions, it potentially opens 1000’s of unsecure digital channels. Open Banking journeys are orchestrated through redirect flows where users are returned to their bank login page or banking app for authentication to authorize access to account information or initiate a payment. This impact both web and mobile channels that banks own and don’t control; such as aggregator applications and outbound channels where money is spent with merchants, where a card isn’t present. As financial services across the UK and mainland Europe found from experience, the redirected customer journey and traditional authentication methods such as usernames and password negatively impacted the user experience and are open to compromise. However, the regulators stepped in to drive Open Banking momentum by introducing SCA to protect consumers, enhance security and customer experience. The European Banking Authority stipulated that when a customer accesses their payment account online or makes an electronic payment, under the SCA requirements, customers must authenticate using two

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factors of authentication. Issuers need to select two elements in two of the three different SCA categories: Knowledge: something only the user knows. Possession: something only the user possesses. Inherence: something the user is. The widespread use of mobile phones led to their adoption as a common authentication mechanism for transaction authorization and identity verification, typically in the form of SMS OTP alongside username and password. Under SCA, the use of SMS OTP is categorized as a “possession” factor, based on the possession of a SIM-card associated with the respective mobile number. However, regulators in the UK have since recognized that there are issues with OTPs such as security vulnerabilities due to SIM swap and sophisticated SMS interception attacks. OTPs deliver poor customer experience too, if there is a poor signal this can lead to cart abandonment during a payment journey. There are also considerable cost implications for issuers who must pay each time an SMS is sent. This can be multiple times per transaction in the case of the SMS not being received, with the customer trying repeatedly to complete their journey. Customers want seamless payment experiences that allow them to get on with their online interactions without unnecessary friction. It is recognized by regulators that knowledge factors require customers to

use and manage a password, or PIN but they have the potential to increase friction during checkout as well as fraud risks. The use of behavioural biometrics in conjunction with a secure device is driving standardisation for consumers and provides better security and customer experience. Passive behavioral biometric authentication methods include how a user swipes their phone, or the pressure they use to type; and because these traits are inherent, they positively identify genuine users, firmly establishing that they are who they say they are and letting them get on with their online journey.

Methods such as passive behavioral authentication also give banks and merchants the opportunity to reduce friction for their customers as well as reducing fraud. This in turn leads to return purchases, smoother transactions, and the personalized experience every online user Is looking for. This development highlights further, the pressure on banks and businesses not only to ensure authentication is scalable and secure but to move beyond username, password, and SMS OTP to avoid user frustration/cart abandonment and reputational damage.

What is important here, is the implementation of an industry standard to ensure financial services are held to account for the same robust authentication standards across the ecosystem and that they are applied consistently. This ensures regardless of the bank a customer has opened an account with or which aggregator app they use to access it, the customer experience isn’t compromised, security is ensured without impacting innovation, revenues and customer churn. Left to solve this alone, banks, merchants and other stakeholders in the ecosystem are likely to produce their own approaches to these problems, impacting customer experience and holding back all the benefits of Open Banking. Open Banking is the door to the future of finance; but it’s a door that needs a very secure lock, and that’s exactly what SCA provides. Why adopt Open Banking without SCA? The answer is that you shouldn’t. Open Banking is just the beginning; moving forward without security and CX in your channels means that you are opening yourself up to losing revenue and customers.

ALTHOUGH OPEN BANKING IS UNDENIABLY A POSITIVE MOVE FOR BOTH CONSUMERS AND FINANCIAL INSTITUTIONS, IT POTENTIALLY OPENS 1000’S OF UNSECURE DIGITAL CHANNELS. A li Chamseddine, Head of Payments Strategy at Callsign. mea-biz.com

Opinion Piece

Can Intra-African trade buffer the continent from future global economic recessions? Sarmad Lone, Regional Head, Client Coverage Corporate, Commercial and Institutional Banking, Standard Chartered AME explains how intra-African trade may be the key to the development of economies across Sub-Saharan Africa and that with recent key initiatives such as the African Continental Free Trade Area Agreement (AfCFTA), there is a real chance that positive change will occur

he economic uncertainty in the wake of the COVID-19 pandemic places a huge load on economists to formulate effective recovery and resilience strategies, more so in Sub-Saharan Africa. According to the World Bank’s recent biannual Pulse report, the pandemic has taken a toll on economic activity in Sub-Saharan Africa, putting a decade of hard-won economic progress at risk. Depending on the success of measures taken to mitigate the pandemic’s effects, it is estimated that economic growth in sub-Saharan Africa will drop from 2.4 percent in 2019 to between -2.1 percent and -5.1 percent in 2020. The dip could be attributable to an

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approximate 6.9 percent contraction in African economies, that are heavily reliant on exports of commodities, whose prices are dropping. This could claw back some of the major strides that Africa has made in its participation in trade and value chains as well as result in a reduction of foreign financing inflows. Africa’s international trade relationships and transactions are vital and have showcased significant growth over the last two decades. According to Sarmad Lone, Regional Head, Client Coverage Corporate, Commercial and Institutional Banking, Standard Chartered AME a recent UNCTAD report, in the period of 2015-2017, total trade from Africa to the

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S armad Lone, Regional Head, Client Coverage Corporate, Commercial and Institutional Banking, Standard Chartered AME

rest of the world averaged $760 billion in current prices. Similarly, the share of exports from Africa to the rest of the world represented 80 to 90 percent of Africa’s total trade transactions between 2000 and 2017.

However, a decline in Africa’s international trade activity could have a silver lining. There is growing consensus amongst economic planners of a need to shift the mindset on intra-African trade and view it as a key driver of economic growth in the post COVID- 19 era. Intra-African trade provides a compelling opportunity to move away from significant reliance on extractive exports. However, oil, minerals and agricultural exports are subject to price volatility and require less labour, thereby limiting employment opportunities for a continent with a young population. Conversely, according to the Economic Commission for Africa, when African countries trade with each other, they exchange more manufactured and processed goods, have more knowledge transfer, and create more value. In addition, Increased value addition or sophistication increases the value of the exports and therefore productivity. Africa’s growth is fuelled by small to medium sized enterprises (SMEs). SMEs possess the extraordinary ability to tap regional African markets, grow exponentially and create jobs, while also accounting for 80 percent of the region’s trade, according to the Africa Trade Policy Centre (ATPC). The opportunity for intra-Africa trade is best viewed with a ‘glass half-full’ approach with an equally pragmatic view of the challenges that lie ahead. Let’s start with the barriers to trade in the continent. Barriers such as high tariffs and poor supply chain infrastructure raise trade costs, erode the competitiveness of goods and services, inhibit exports, and generally stifle economic growth. Recent studies conducted by the World Bank indicate that 75 percent of the delays in the movements of goods are from trade facilitation and that 25 percent are attributed to infrastructure. Proof exists that these barriers can be reduced. Poor infrastructure causes congestions, delay and ultimately high transportation costs. African countries have begun investing in physical infrastructure at key ports, introducing OneStop Border Posts (OSBPs) whilst dou-

bling down on soft infrastructure such as integrated border management systems as well as mobility of human resources. The advantage of OSBPs is that they eliminate the need for vehicles, travellers and goods to stop twice to undertake duplicated border-crossing formalities. According to the Africa Union’s Program for Infrastructure Development In Africa (PIDA), African regional economic communities have identified approximately 76 borders posts for implementation. Addressing the infrastructural challenges will lead to a reduction in key trade bottlenecks, faster movement of goods through key links and nodes, and ultimately lower transport costs. The crystal ball shows encouraging signs on Africa’s trade facilitation front. Two years ago, African countries inked a landmark trade agreement, the African Continental Free Trade Area Agreement (AfCFTA), which commits countries to remove tariffs on 90 percent of goods, progressively liberalise trade in services, and address a host of other non-tariff issues including import quotas. The agreement will certainly deepen trade, boost economies, create jobs and achieve the elusive market integration objectives. The 54 signatures created a single African market of over a billion consumers with a total GDP of over $3 trillion, making Africa the largest free trade area in the world. Globally, trade agreements, like human relations, carry hopes and suspicions. Pulling off AfCFTA was therefore a great feat by African countries from a trade negotiations perspective. AfCTA’s scope exceeded traditional trade agreements and covers intellectual property rights, e-commerce and competition policies which have diminished trade and heightened protectionism. It provides an opportunity for African countries to improve diversification in exports and trade. This is expected to significantly benefit agricultural products. African countries spend over $80 billion in food imports. According to the economic commission

for Africa, AfCTA is expected to expand access to markets at a regional and international level, thus generating state revenue and increasing farmer income, resulting in the provision of reserves for investing purposes especially in modernising the agricultural sector through processing and mechanisation. AfCTA is key to paving the road to intraAfrican trade but the road remains bumpy, for now. Apart from promoting intra- African trade, AfCFTA’s litmus test will showcase how quickly African countries can fast-track export diversification and product sophistication thus making trade more inclusive. Domestic policymakers need to demonstrate the commitment to industrialisation and manufacturing. A unique catalyst for intra-Africa trade is the empowerment and inclusion of women in cross-border trade. According to UN women report titled: Unleashing the Potential of Women Informal Cross Border Traders to Transform IntraAfrican Trade shows that informal cross-border trade has become an integral part of trade flow for the East African Community (EAC) and Southern African Development Community countries. The report states that over 70 percent of the cross-border traders are women. In West and Central Africa, women informal cross border traders “employ 1.2 people in their home businesses; support on average 3.2 children as well as 3.1 dependants who were not children or spouses. Also, with over 70 percent of small cross-border traders (CBT) being women and two-thirds of traders relying on CBT as their primary source of income, interventions targeted at intra-Africa exports and imports have a huge potential to drive development, inclusion and poverty reduction. The consequences of a COVID-19- driven recession should be the perfect excuse for African governments to hasten the mainstreaming of intra- African trade in their respective national trade and development strategies. The impact will be felt for years to come if policymakers fail to address this now.

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LifeStyle

Privacy is the new ‘ultimate luxury’ for leisure travellers Empire Aviation explains that as travel for leisure starts its recovery, the privilege of having luxury travel options can be enhanced by making the journey as special as the destination

s leisure travel gradually recovers, there is a growing demand from affluent leisure travellers seeking highly personalised private travel services and experiences, in safe and luxurious surroundings. When it comes to privacy, nothing beats the unique benefits of private jet travel and more charter clients are choosing to combine this with awardwinning luxury travel destinations with super-premium properties and unique experiences such as private yacht cruises. It is a perfect combination thanks to the shared understanding of the unique expectations of this discerning clientele and a commitment to providing 5-star customer service. Combining private jet charter and luxury destinations for a unique experience Private aviation offers just that; the privacy begins on the ground in the calm surroundings of the uncrowded private terminal with no queues and minimal passenger touchpoints before boarding the jet, at your leisure and

EXECUTIVE DIRECTOR AND PUBLISHER Kenneth Mithcen ken.mitchen@mea-finance.com COMMERCIAL DIRECTOR Nap Estampador nap.estampador@mea-finance.com Tel: +971 50 100 5488 SALES DIRECTOR Andrew Cover andrew.cover@mea-finance.com Tel: +971 50 931 3236

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S oneva Fushi

H ideaw a Resor t y Beach & Spa

which is your own space, with all the comforts of a 5-star hotel suite. The Indian Ocean islands and especially the luxury resorts of the Maldives have always been one of the perennial favourites among private jet charter clients, offering a choice of destination airports including international airports and even some private island resorts with their own runways. Working together, Empire Aviation and its world-class luxury partners can combine end-to-end luxury and privacy for individuals, couples and families onboard, on the ground and at the destination. Multi-award winning Soneva owns and operates a range of 5-star luxury resorts across the Maldives, including the Soneva Fushi (Maldives) - properties inspired by nature and offering the ultimate in privacy. Soneva offers experiences with

EVENT AND MARKETING MANAGER Cris Babiatbat crissyb@mea-finance.com Tel: +971 58 584 4818 ADMIN AND FINANCE MANAGER Marilyn Nainque marilyn@mea-finance.com Tel: +971 58 502 5836 WEB ASSISTANT Marie Orayan web@mea-finance.com

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‘intelligent Luxury’ in mind – peace, time and space. Soneva Fushi inspires the imagination with 63 beachfront villas and 8 Water Retreats, ranging in size from one to nine bedrooms. The ‘No News, No Shoes’ approach suggests a slower, more appreciative lifestyle. Lily Hotels owns and operates the Hideaway Beach Resort & Spa on Dhonakulhi Island, belonging to the Haa Alifu Atoll. Its intimate ambience and remote location offer guests ‘a true hideaway’. Hideaway Beach is an exclusive world for people seeking ultimate luxury and privacy and provides a tranquil retreat for those in search of an exotic getaway. The 10 categories of villas are among the largest in the Maldives. Whatever your preferred destination, Empire Aviation can arrange private charter anywhere in the world.

FEATURE CONTRIBUTORS: Adrian Murdoch, Mushtak Parker, Walter Sebele editorial@mea-finance.com

MEABUSINESS Dubai Office: #404, Building B, Al Saaha Office, Old Town Island Burj Khalifa District PO Box: 487177, Dubai, UAE Email: info@mea-finance.com

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Business News for the MEA region

May June 2021

Articles inside

Can Inta-African trade buffer the continent from future global economic recessions?

Open Banking without Strong Customer Authentication creates bad customer experience and leaves banks vulnerable. So why adopt one without the other

The impact of covid-19 on South Africa’s financial sector

Cashless Dubai Initiative reports major progress

Accelerating Digital Transformation Through the hybrid cloud

STORY Hospitality launches a new 4-star lifestyle brand, CUE Hotels

Gilf Air supports air tranport of urgent medical supplies to India for COVID-19 relief

Air Arabia reports first quarter 2021 net profit of AED 34 million

Rise in Sustainability focused Education to Fuel Dubai 2040 Urban Master Plan

The Middle East is set to become a market leader in renewable and clean energy

Embracing the new dawn in the UAE

Creating an enabling environment

An optimistic outlook

Nurturing business and startups ecosystem

IATA urges governments in the middle east to work together to develop a roadmap to restart aviation

New research shows the trend towards ESG and sustainability invertement is growing at pace due to the pandemic

MENA energy investements to exceed $805bln over the next five years: APICORP

Invest Africa and DLA piper part ner to support ESG best practice in African renewable energy projects

How to start online trading (begin ners guide

UAE economy on tracks towards recovery in 2021

Acronis, recives more than $250M investment at a $2.5B valuation

to be the largest in the Middle East Gulf Air Delivers 400,000 Vaccines

Saudi Arabia wind farm project set