Gulf Business - June 2023

P.33 REAPING THE REWARDS: The UAE’s banking sector is riding on strong fundamentals and rapid digitalisation

GLOBAL AMBITIONS

DAMAC’S ALI SAJWANI IS SPEARHEADING THE TRANSFORMATION OF THE FAMILY BUSINESS INTO A GLOBAL POWERHOUSE WITH DIVERSE INTERESTS

P.60 MAD ABOUT MB&F: Maximilian Büsser shares the inspiration behind his unique timepieces

Gulf Business

05

The brief

An insight into the news and trends shaping the region with perceptive commentary and analysis

43 Special report

The UAE’s real estate sector continues to see growth, driven by infrastructure development, foreign investments, and new commercial and residential properties

28

Consolidating a legacy

DAMAC Group’s Ali Sajwani reveals the ‘transformation’ plans for the multi-billion dollar conglomerate

CONTENTS

59 Lifestyle

Upcycle, upstyle, Up-fuse: This slow fashion brand is not wasting opportunities p.66

“The Emirates can fly far in space for five billion kilometres for one reason: it is its belief in its youth and its empowerment of its children.. and whoever does not believe in the capabilities of our ambitious Emirati youth in all sectors needs to review himself and review his love and loyalty to his country”

68

The SME Story

Interviews with entrepreneurs and insights from experts on how the regional SME ecosystem is evolving

Editor-in-chief Obaid Humaid Al Tayer

Managing partner and group editor Ian Fairservice

Chief commercial officer Anthony Milne anthony@motivate.ae

Editor Neesha Salian neesha.salian@motivate.ae

Digital editor Marisha Singh marisha.singh@motivate.ae

Tech editor Divsha Bhat divsha.bhat@motivate.ae

Senior feature writer Kudakwashe Muzoriwa

Kudakwashe.Muzoriwa@motivate.ae

Senior art director Olga Petroff olga.petroff@motivate.ae

Senior art director Freddie N. Colinares freddie@motivate.ae

Cover: Freddie N Colinares

General manager – production S Sunil Kumar

Production manager Binu Purandaran

Production supervisor Venita Pinto

Digital sales director Gurjeet Kaur Gurjeet.Kaur@motivate.ae

Group sales manager Mansi Khatwani Mansi.Khatwani@motivate.ae

Senior sales manager Sangeetha J S Sangeetha.js@motivate.ae

Group marketing manager Joelle AlBeaino joelle.albeaino@motivate.ae

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai

Building ‘time’ machines: MB&F founder Maximilian Büsser talks shop p.60

Porsche GT4 RS unleashed: The powerful street-legal race car is put to the test p.64

Are ESG-themed ETFs losing steam?

Data shows that ETF issuers are losing tolerance for ESG as closures surge

As investor interest in exchange-traded funds (ETFs) that promote higher environmental, social and governance (ESG) standards fades, more issuers are shutting down these funds.

Just 58 sustainable ETFs launched globally in the first quarter of 2023, a far cry from the 101 funds that were introduced during the same period last year, according to data compiled by Bloomberg Intelligence.

While fewer sustainable funds are coming to market, owning those that are already available is becoming more expensive with the median fee creeping up to 0.35 per cent in the previous quarter.

It’s been a sharp reversal for an approach that grew in popularity as investors sought to line their portfolios with companies at the cutting edge of the carbon transition or those that encourage diversity within the C-suite. A brutal 2022 for markets has

AT LEAST EIGHT ETFS HAVE ALREADY LIQUIDATED THIS YEAR VERSUS 13 IN ALL OF 2022

cast do-good investing to the wayside, with investors fleeing a spectrum of ESG products in search of more profitable and cheaper funds.

“The ESG boom is over and that’s because there’s no defined criteria or structure to what constitutes ESG, as well as the fact that you tend to pay up in fees for an ESG product, yet get largely the same results as a typical US equity index,” says Todd Sohn, an ETF strategist at Strategas Securities.

PULLBACK IN PROGRESS

ESG funds are facing many headwinds. They have high expense ratios, there is a growing political backlash against all things “woke” and fears that the US could be headed into a recession have made many investors cautious.

At least eight ETFs have already liquidated this year versus 13 in all of 2022. It’s part of a general pullback: ETFs in the US are failing at roughly double last year’s rate.

Yet there are still new ESG funds being launched, with about 40 per cent focused on such themes as clean energy and low carbon, Bloomberg Intelligence found. Climate ETFs are making up a growing share of global fund assets, and investors face liquidation risks, as well as cannibalising social and governance investment options, by piling into the highly crowded pillar.

Nonetheless, choppy markets have made issuers more aware of funds that aren’t meeting demand.

“I think both investors and ETF sponsors have a more informed and mature concept of ESG today as opposed to a few years ago when many of these products launched,” says Jane Edmondson, co-founder of EQM Indexes. “While there were many excellent, thoughtful ESG ETF product implementations, many others were bandwagon products hoping to capitalise on investor appetite for ESG.” Bloomberg

“THE ESG BOOM IS OVER AND THAT’S BECAUSE THERE’S NO DEFINED CRITERIA OR STRUCTURE TO WHAT CONSTITUTES ESG, AS WELL AS THE FACT THAT YOU TEND TO PAY UP IN FEES FOR AN ESG PRODUCT, YET GET LARGELY THE SAME RESULTS AS A TYPICAL US EQUITY INDEX”

How tech can support food security

Today, addressing food security is a growing challenge for governments in the GCC region. With reliance on imports and limited land suitable for agriculture, it is more important than ever to adapt new technologies to produce su cient yields of reliable and a ordable food resources.

The UAE is leading the way in sustainability with its ambitious climate action initiatives. With a clear vision outlined in Environment Vision 2030 and a commitment to making 2023 the ‘Year of Sustainability’, the nation has earmarked significant funds towards green resources to achieve Net Zero Emissions by 2050. The leadership of the UAE is unwavering in its dedication to sustainability, paving the way towards a better future for all.

Stemming from its sustainability e orts, the nation sets a shining example of food security for MENA’s arid region by actively pursuing investment in agritech and water conservation, in response to the 2023 Conference of the Parties of the UNFCCC’s (COP28) call for sustainable food production and eco-safe practices. As we take inspiration from this exemplary commitment to environmental protection, let’s explore how technology can help GCC countries meet increased demand for food while

overcoming numerous obstacles in their e orts towards food security. We will examine the current utilisation of di erent technologies such as precision agriculture, greenhouses and vertical farming, discuss potential further applications within this region and consider strategies for implementation.

AGRITECH

Agritech is set to revolutionise agriculture with state-of-the-art irrigation systems, precision farming, and innovative analytics. This tech-savvy approach will significantly reduce water consumption, maximise resource e ciency and optimise crop yields.

Collaborative tools will enable farmers to share best practices and access the latest technologies, thereby promoting sustainable farming practices.

PRECISION AGRICULTURE

Technology such as geographic information systems (GIS) and remote sensing tools can be used to create precise maps of land and help farmers optimise their yields by providing accurate information about soil moisture, nutrient levels, and crop health. This can help maximise production and reduce waste, ultimately contributing to greater food security.

Layth Dwairi, CEO, EnvEnTech (Environmental Engineering Technologies)

CLIMATE-SMART AGRICULTURE

The use of technology such as precision irrigation systems, drought-resistant crops, and climate modelling can help farmers adapt to changing weather patterns and mitigate the impact of climate change on food production. This can help increase food production and improve long-term food security.

VERTICAL FARMING

Growing crops in vertically stacked layers under controlled conditions can help increase the productivity of land and reduce water usage. It is a high-tech agricultural method that can produce crops throughout the year in indoor urban settings, reducing the reliance on food imports and promoting food security. Automated vertical farming using robotics and AI can increase crop yields by up to 15 times compared to traditional farming methods. This technology can also reduce water usage by up to 90 per cent and eliminate the need for pesticides.

AQUAPONICS

Aquaponics is a closed-loop farming system that combines aquaculture and hydroponics. Fish and plants are raised together in a sustainable system, generating healthy and fresh produce with minimum water usage.

FOOD TRACKING

Technologies such as blockchain and internet of things (or IoT) sensors can be used to track food products from farm to counter, increasing accountability and transparency in the food supply chain. This can help prevent food fraud, reduce food waste, and improve food safety – ultimately contributing to greater food security.

FOOD PROCESSING AND PRESERVATION

Technology can be used to e ectively process and preserve food, extending its shelf life and reducing waste. This is particularly important in regions such as the GCC where much of the food is imported from other countries, and where there may be limited availability of fresh produce. By preserving and processing food, the region can reduce its dependence on imports and promote food security.

We explore the role of innovative technologies in achieving food security in the region

Boards must know that ESG isn’t just a buzzword

HERE ARE STEPS THAT BOARDS CAN TAKE TO EFFECTIVELY INTEGRATE ESG (ENVIRONMENT, SOCIAL AND CORPORATE GOVERNANCE) INTO THEIR ENTERPRISES

due to their environmental impact. Efforts have to be continued to reduce carbon emissions, adopt renewable energy sources, and implement sustainable building practices.

Clearly, enterprise boards need to recognise the importance of ESG and integrate it into their decisionmaking processes. To promote and drive this faster, they have to engage with all stakeholders, and experts to develop ESG strategies and ensure responsible governance practices.

ESG regulations are already starting to bite for businesses. Earlier this year, the European Union launched its Sustainable Finance Disclosure Regulation rules requiring asset managers and advisors to factor sustainability data into their investments. This will drive solid, objective disclosure metrics, with penalties for failure. In Germany, asset manager DWS is now under investigation for false “greenwashing” disclosures on its investments.

A CLEAR MESSSAGE

ESG is gaining increasing importance in the GCC region with regulators as well as the UN mandates putting more pressure across the board, be it a large conglomerate, SME or private venture. It refers to the criteria used by enterprises to assess their impact on the environment, social (or society) and corporate governance.

The UAE has taken the lead in regulation by introducing the Sustainable Finance Framework and others have followed suit. The aim was to promote sustainable practices and facilitate ESG reporting. Many GCC companies are slowly adopting sustainability reporting frameworks such as the Global Reporting Initiative and the Sustainability Accounting Standards Board to disclose their ESG performance. Institutional investors, including sovereign wealth funds, are considering ESG factors in their investment decisions. They expect companies in the region to incorporate ESG practices and demonstrate longterm sustainability. Certain industries such as energy and real estate are particularly focusing on ESG

Corporate board members are getting the message loud and clear. There’s very little tactical guidance on what they should actually do about it – How does your board build practical ESG discussion and oversight into its structure, agendas, reporting and actions? Who are the ESG resources with what skills, you’ll need in the boardroom? How can you assure relevant, actionable data on company ESG status? What ESG standards and reporting frameworks are out there, and which should guide your board? Our ESG toolkit training covering all the above and more has been in high demand amongst global boards precisely for this reason. Many GCC enterprise boards have been serious about driving ESG initiatives and the pioneers include Aramco, Emirates NBD, Masdar and Majid Al Futtaim Group. Aramco’s climate strategy aims to lower its carbon intensity, increase energy efficiency, and invest in low-carbon technologies. Emirates NBD, one of the largest banks in the UAE, issued a $750m green bond in 2019. The bond proceeds were allocated to finance and refinance green projects in

“OUR ADVICE IS TO USE A BOARD ‘SKILLS MATRIX’ TO ASSESS THE TALENTS A BOARD CURRENTLY HAS, WHAT IT LACKS, AND HOW SUCCESSION PLANNING AND TRAINING CAN FILL GAPS”

areas such as renewable energy, energy e ciency, and sustainable water management.

Masdar has partnered with global giants to develop renewable energy projects such as the 800MW third phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai. Majid Al Futtaim Group has aligned its sustainability strategy with the United Nations Sustainable Development Goals (SDGs). The focus is on areas such as climate action, sustainable cities, responsible consumption, and community development. These initiatives demonstrate how boards show commitment to addressing pressing global challenges and creating positive social and environmental impacts.

Most of the big concerns and activism agendas come under the environmental heading, but that covers lots of sub-concerns. Climate alone has many subsectors, and any of these might be your company’s hottest issue. Social matters bring controversies of their own, and the continuing discrimination against minorities and gender equity make this a hot topic. Governance is the last letter in ESG, and o ten tends to lag behind as a concern. But this is the arena where items like board makeup and structure, voting rights, and shareholder powers are battled over. ‘G’ covers the proxy voting tools used to advocate for the ‘E’ and ‘S’ matters, and activists know how to use these to good e ect. Driving ESG requires knowing the management team’s capabilities. Since ESG covers so much turf, you’ll want broad input. The heads of finance, HR, legal, investor relations, and compliance have a piece of ESG. An ESG shake-up can be a good motivator for venture or private companies to formalise how these tasks should be allotted. Designate a “management” ESG committee if possible.

Our advice is to use a board “skills matrix” to assess the talents a board currently has, what it lacks, and how succession planning and training can fill gaps. Now, add ESG background and credentials to your matrix. Every board doesn’t need a climate scientist, an environmental lawyer, or a rep from a human-rights organisation. Also, look into the backgrounds of current and potential board members for ESG negatives.

THE CHALLENGES

How the board shapes itself to oversee ESG brings its own challenges. Start by looking at the bylaws and agendas of current committees and asking how they can take on specific pieces of the ESG spectrum. The audit committee incorporates ESG materiality measures, risk, and disclosures. Compensation should factor ESG goals into pay measures and incentives,

top executives/median employee pay balances, and stakeholder comp concerns. The nominating/ governance committee can serve as the board’s overall ESG wrangler, and also factor board skills into its work, board ESG education, and stakeholder communication.

Here are some steps boards can take to e ectively integrate ESG into their enterprises:

Establish board-level commitment: Show the commitment of the board for ESG as the critical longterm growth factor by formal communication to all stakeholders. Ensure that all directors understand the business case for ESG.

Assign a specific committee or champion: Create a dedicated committee or assign a board member to oversee ESG matters, and provide the necessary authority, resources, and expertise to drive the initiatives e ectively.

Integrate ESG into strategic planning: Identify specific ESG-related risks and opportunities that are relevant to your industry and operations, and set measurable targets aligned with the long-term vision and stakeholder expectations.

Develop ESG policies and guidelines: Define guidelines and best practices for addressing ESG issues across various business functions, and ensure these are e ectively communicated.

Enhance board expertise: Consider recruiting new board members with diverse backgrounds and expertise in sustainability, social impact, and governance, and provide expert training.

Monitor and measure ESG performance: Establish robust monitoring and reporting mechanisms to track the ESG performance, and implement appropriate metrics and KPIs to assess progress.

Engage with stakeholders: Seek feedback and input from stakeholders to understand their expectations and concerns regarding ESG performance, and foster transparent and constructive dialogue with them.

EMIRATES

THE BOND PROCEEDS WERE ALLOCATED TO FINANCE AND REFINANCE GREEN PROJECTS IN AREAS SUCH AS RENEWABLE ENERGY, ENERGY EFFICIENCY, AND SUSTAINABLE WATER MANAGEMENT

Incorporate ESG in executive compensation: Integrate ESG metrics and targets into executive compensation plans, and align incentives with the achievement of ESG objectives.

Collaborate with industry peers: Participate in industry associations and collaborate with peers to share best practices and learn from each other, and engage in industry-wide initiatives and standards that promote responsible business practices.

Continuously improve and innovate: Regularly review and update the ESG plans, policies and practices, and seek opportunities for innovation and explore new ways to enhance performance.

While ESG is relatively new vocabulary in most boardrooms, it’s fast becoming a language boards must learn.

NBD ISSUED A $750M GREEN BOND IN 2019

Ralph Ward is a global board advisor, coach and publisher. Dr M Muneer is co-founder of the non-profit Medici Institute

Resilience amid uncertainity

As major central banks continue to tighten monetary policy, financing conditions are becoming increasingly restrictive, with rising costs and weaker liquidity especially affecting emerging markets. Given that context, various banking systems from emerging economies such as Qatar are considered to be potentially vulnerable to the changes in global liquidity.

Tighter global financing conditions can affect banking systems directly or indirectly, with exposure to those different channels dictated by the particularities of bank funding and economies’ wider exposure to external debt.

Direct channel impacts tend to weigh on banking systems with significant net external debts, including through lower rollover rates, which could translate into depleted liquidity buffers. Türkiye’s banks, for example, are considered to be the most exposed

to this risk due to the potential for a sudden and significant decline in their ability to roll over maturing external debt. As for Qatar, the banking sector also has high, but declining external debt and there are mitigating factors to the less supportive market conditions.

Indirect effects of tighter international financing conditions tend to be transmitted to banking systems via non-bank entities with significant exposure to external debt, including corporations and sovereigns. Indirect issues linked to corporations tend to be caused by difficulties rolling over debt on international capital markets, or, where applicable, due to currency depreciation. Sovereign issues are typically linked to refinancing difficulties that can prompt increased borrowing from local banks and is associated with currency depreciation, which results in wider economic pressures.

One of the main sources of concern for the Qatari banking system for the past few years has been the build-up of external debt, mostly in the form of nonresident deposits

MAIN CONCERNS

One of our main sources of concern for the Qatari banking system over the past few years has been the build-up of external debt, mostly in the form of non-resident deposits (see chart). However, in early 2022, Qatar Central Bank changed regulations, with the aim of reducing the use of external debt to grow domestic balance sheets. That, alongside rising interest rates, led to a significant unwinding of non-resident deposits, and has somewhat changed the overall structure of the country’s external debt. Over 2022, non-resident deposits fell by over $20bn, equal to about one third of their value at the end of 2021, while interbank deposits increased by over 13 per cent, leading to an overall $17bn decline in net banking system external debt.

We expect that the reduction in net external debt will continue in the next 12-24 months, driven by the same factors as in 2022 and supported by a reduced need for external funding.

The rationale for Qatari banks’ recourse to external debt was the desire to secure low-cost funding for significant domestic investments. With the completion of some major infrastructure developments, and due to increased government revenues, spending (and funding pressures) should ease.

The concern over Qatar’s external funding stability is also mitigated by the understanding that a significant portion of the non-resident deposits are linked to longer-term investments in Qatar. Reportedly, the funds also include deposits from Qatari companies abroad and possibly from companies partly owned by Qatar’s sovereign wealth fund. Also, funding support is expected to be available from the government and central bank if it is needed.

“WE EXPECT THAT THE REDUCTION IN NET EXTERNAL DEBT WILL CONTINUE IN THE NEXT 12-24 MONTHS, DRIVEN BY THE SAME FACTORS AS IN 2022 AND SUPPORTED BY A REDUCED NEED FOR EXTERNAL FUNDING”

Dr Mohamed Damak, senior director, Financial Services and global head of Islamic Finance, S&P Global Ratings

External debt (left scale)

Non-resident deposits (left scale)

Non-resident interbank deposits (left scale)

Non-resident interbank deposits (left scale)

BUILDING A ROBUST FINTECH ECOSYSTEM

MOHAMMAD ALBLOOSHI, HEAD OF DIFC INNOVATION HUB AND FINTECH HIVE, SHOWCASES DUBAI’S ROLE IN THE GLOBAL FINTECH ECOSYSTEM AND HOW THE EMIRATE’S INVESTOR-FRIENDLY POLICIES AND INNOVATIVE INITIATIVES ARE DRIVING GROWTH

BY KUDAKWASHE MUZORIWA

The success stories of Careem, Kitopi and Noon are fuelling Dubai’s startup ecosystem by enticing entrepreneurs to launch ventures of their own. The Dubai Government, the business community and the city’s regulators are making concerted and coordinated efforts to further cement the UAE’s position as a global hub for both new and established fintech firms alike.

The global economic downturn, stickier-than-expected inflation and soaring interest rates have boosted Dubai’s appeal to ambitious scaleups and startups that are gravitating towards the city where they can benefit from partnership opportunities, investment, talent and marketing exposure.

Dubai has launched wide-ranging initiatives designed to nurture entrepreneurship, which is expected to support startups to capitalise on opportunities across the GCC region. With Dubai’s digital economy forecasted to grow to more than $140bn by 2031, GulfBusinesstalks to Mohammad Alblooshi, head of DIFC Innovation Hub and FinTech Hive, on how the city’s location, world-class infrastructure and investor-friendly policies are bolstering its position as a global hub for financial services and fintech companies.

How is Dubai gearing up to be a global fintech and innovation hotspot and how do you see the sector contributing to the objectives of D33?

Dubai is on track to become a global hub for

innovation in the fintech space. To foster a supportive environment for fintech startups and entrepreneurs, Dubai provides companies with access to resources, funding, and top-tier talent. For example, DIFC FinTech Hive offers mentorship, guidance, and access to investors, contributing to an attractive environment for innovation and entrepreneurship in the fintech sector.

Dubai is also investing in infrastructure and dedicated zones, such as the Dubai Future District and the Dubai International Financial Centre (DIFC), the leading international financial hub in the Middle East, Africa and South Asia (MEASA) region, to support the rapidly growing industry. The city promotes innovation in the sector with a supportive regulatory framework, which includes a regulatory sandbox environment that facilitates testing and accelerates the development of solutions in a controlled environment.

DIFC contributes to the vision of Dubai Economic Agenda D33 to transform Dubai into one of the world’s top three cities for business and a leading commercial and investment destination. In 2022, DIFCbased fintech and innovation companies attracted more than $615m with 291 new clients. Fintech is boosting economic growth, creating new jobs, attracting foreign investment, and enhancing the city’s overall competitiveness.

How do you plan to advance fintechs’ access to

mentorship and exposure to investors to scale up growth?

Our leading accelerator programmes cater to the unique needs of fintechs in the region. Through these programmes, DIFC FinTech Hive collaborates with senior executives of leading banks and insurance companies to deliver valuable industry insight that addresses the region’s financial sector needs. Every programme has been designed to provide companies with access to funding, regional business intelligence, and market entry support, with an overarching focus on growth.

DIFC FinTech Hive also hosts a calendar of events and networking opportunities with a community of like-minded individuals including leading financial institutions and potential investors. The Hive provides access to an extensive investor network, including the Dhs1bn Dubai Future District

ILLUSTRATION: GETTY IMAGES/ALASHI

Fund. We are fully aware of the rapid pace of the industry’s development, so our approach goes beyond linking startups with prominent regional financial institutions and investors, by also cultivating global connections to ensure comprehensive support for our partners across markets.

Our network of international counterparts of accelerators, hubs, and platforms allows us to stay connected with global advances while providing access to opportunities and intel for our startup community worldwide. Our connections with international fintech players in North America, Europe, the Middle East, Asia, and beyond lead to a deeper understanding of the industry, access to supportive platforms, and the sharing of ideas.

In what ways is DIFC FinTech Hive advancing the growth of Dubai’s financial services sector?

Currently home to 60 per cent of all fintech companies based in the GCC, Dubai –and specifically DIFC – is being recognised as a global centre for innovation, with its unique ecosystem, driving not only the future of finance but increasingly the future of the economy.

DIFC Innovation Hub and FinTech Hive, the largest innovation community in the region, is home to more than 500 growthstage tech firms, established innovation companies, digital labs, venture capital firms, regulators, and educational entities. This thriving facility aims to generate new economic value through innovation, enterprise and talent across various sectors, especially in future-oriented industries.

Our teams work actively to foster the growth of emerging fintech, insurtech, regtech, and Islamic fintech startups looking to capitalise on the opportunities a city like Dubai brings. By enabling these startups to grow in the region DIFC Innovation Hub and FinTech Hive is

advancing the growth of Dubai’s financial services sector.

What measures are you putting in place to make sure startups receive adequate funding from potential investors?

Despite a 7.6 per cent decrease in the number of deals between 2021 (679) and 2022 (627), the MENA region experienced an 8 per cent funding boost, raising a total of $3.2bn.

This trend of startup funding activity and investment growth is expected to continue in 2023, with more investors recognising the region’s potential. DIFC is committed to supporting the growth and development of fintech startups by attracting more venture capital firms to the region and providing additional avenues of funding. The MENA region’s large population, growing middle class, and high level of digital adoption make it an increasingly attractive market for investors and startups.

To facilitate access to investors, DIFC organises platforms such as investor meetups, pitching sessions, and networking events. The DIFC Innovation Hub and FinTech Hive also provide mentorship and guidance to startups on fundraising strategies, assisting with pitch decks, financial modelling, and valuation. By providing a strong support system, DIFC is positioning itself as a hub for fintech investment in the region.

What challenges did the global fintech sector face in 2022 and how do you see that panning out in 2023?

Fintech has faced various challenges globally over the past year, mainly relating to regulation, cybersecurity, and an increasingly competitive market. Some regulators are struggling to keep up with the pace of innovation, leading to the development of policies and a complex regulatory landscape that can make it di cult for fintech companies to expand globally.

The need for a more flexible, hands-on approach to regulation, similar to that at DIFC, is greater than ever. Another clear concern is cybersecurity as fintechs collect and store a massive amount of personal financial data, making them a prime target for cyberattacks. The rapid pace of industry growth must be matched by the development of new cybersecurity solutions.

Moving forward we can expect to see greater collaboration between fintechs and traditional financial institutions, as well as continued investment in emerging technologies like blockchain and AI. The fintech industry is poised for an exciting era of growth and disruption in the coming years.

What opportunities do you presently see for fintech firms?

Governments are actively supporting the development of new firms, providing funding, tax incentives, and other resources to help them grow. Regulators are also extending proactive support to create an enabling environment for fintech startups in the region by combining robust yet flexible regulatory frameworks and innovation initiatives. I also see a growing opportunity where fintech and innovation firms that mature in certain locations are now seeking to scale beyond their regional borders and into new markets. For example, DIFC is currently seeing elevated levels of interest from fintechs in Singapore, Southeast Asia and Asia-Pacific as fintech and innovation firms in these locations are looking to expand into new economies.

Another critical area for fintech firms is the rise of sustainable finance. With an urgent emphasis on environmental protection globally, green finance is another big opportunity fintech and innovation firms can embrace by actively implementing environmental, social and governance

TO FOSTER A SUPPORTIVE ENVIRONMENT FOR FINTECH STARTUPS AND ENTREPRENEURS, DUBAI PROVIDES COMPANIES WITH ACCESS TO RESOURCES, FUNDING, AND TOP-TIER TALENT”

(ESG) initiatives. Lastly, there is a growing demand for financial services and an increasing supply and demand for hedge funds particularly in Dubai, which provides a huge opportunity for fintech firms.

How confident are you about the future of Dubai’s fintech sector (digital payments, e-commerce activity and digital banking)?

As fintech advances more quickly, customers will reap the rewards of faster and more cost-effective services as transactions become increasingly automated. Presently, fintech is centred on integrating digital trends with customer needs, aiming to save consumers time, cost, and hassle.

Recent years have witnessed a paradigm shift leading to an exponential increase in the desire for completely digital services. Customers have come to expect integrated experiences. This trend is ongoing and compelling the industry to seek rapid, robust, and adaptable resolutions to address customer issues and simultaneously reduce internal inefficiencies.

Furthermore, we anticipate an amplified utilisation of data and extensive implementation of artificial intelligence (AI), chatbots, crypto and robo-advisors in the coming years. In other words, fintech is here to stay, with the continuous advancement of technology and its increasing

integration into people’s daily lives, we can expect a surge in embedded finance, encompassing payments, lending, and a considerable rise in embedded insurance.

Fintech has seen overwhelming recognition from investors, resulting in a booming sector, despite some challenges.

Which trends do you expect to revolutionise the fintech sector in the medium term?

In the medium term, we can expect blockchain technology to be adopted more widely in the fintech sector, as it enables secure, transparent, and efficient transactions without intermediaries. AI and machine learning will play a bigger role in analysing vast amounts of financial data, offering more personalised services and detecting fraud.

Open banking is expected to continue gaining momentum, allowing for greater innovation in financial services and more competitive pricing.

These trends have the potential to revolutionise the fintech sector, making financial services more efficient, secure, and accessible.

What are you most excited about in 2023 and what would be your areas of interest in the next 12 months? 2023 promises to be a catalyst for the

finance sector in Dubai, UAE and the wider region.

We recently hosted the city’s first-ever Dubai FinTech Summit under the patronage of Sheikh Maktoum bin Mohammed Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance.

The event attracted over 5,000 C-suite executives and more than 1,000 pre-qualified investors. Speakers such as Michael Shaulov, CEO of Fireblocks, Bill Winters, Group CEO of Standard Chartered PLC and Brian Armstrong, co-founder of Coinbase led panels on crypto and Web 3.0, open finance, startup investment and policymaking support.

This year we have also announced the launch of our venture-building programme, DIFC Launchpad.

The initiative aims to develop a strong model that promotes the growth of innovative startups and scaleups in the region.

Another very exciting initiative is DIFC’s role at the 2023 United Nations Climate Change Conference (COP28), which will take place in the UAE in November and December.

DIFC and the Global Ethical Finance Initiative are bringing the global finance community together to encourage thinking and action relating to climate and ESG principles in the build up to COP28.

Financial literacy is key

board and continues to display enthusiasm for further digitalisation of financial services.

The global financial system is undergoing a multitude of transformations at once.

In fact, digitalisation and democratisation are changing how capital markets work. With that happening, investors’ and corporate issuers’ needs and expectations are changing, and a variety of new actors are joining the traditional financial institutions to meet this demand.

In the middle of this new, dynamic landscape, the finance sector continues to digitalise across the

Communities have been receptive to this change, with increased ease and efficiency of payments and money transfers becoming the most significant benefits of digitalisation. According to the World Bank’s latest Global Findex Database, 76 per cent of adults across the globe now have a bank or mobile account.

That being said, financial literacy is a major stumbling block on a global scale. A 2020 international study by the OECD revealed that only 17 per cent of the adults surveyed rated their financial knowledge as high. That percentage is concerning, considering the importance of being financially literate in today’s world, where complex financial systems are a necessity and consumers

How rethinking financial literacy can empower a new generation of investors

are constantly faced with decisions that involve managing their finances.

A NEW GENERATION IS EMERGING

The financial literacy gap is partly driven by a younger demographic entering the capital market, as highlighted in BNY Mellon and World Economic Forum’s 2022RetailInvestingSurvey. As many as 70 per cent of retail investors were under 45. Most retail investors did not have early exposure to investing principles – 55 per cent of retail investors learned about investing only after entering the workforce, and less than 10 per cent learned about investing in early schooling – which contributed to a gap in financial literacy later in life. A majority (74 per cent) would prefer to have more learning opportunities to support their investment activities better. Further,

Muhammad Rasoul, CEO of amana

31 per cent of non-investors would invest if they had opportunities to learn about investing.

The world of social media has made it easier and faster to share information on a large scale, which has changed the balance of power when it comes to gathering and acting on financial information. However, it is frequently difficult to tell whether the information being consumed is based on actual financial fundamentals or someone’s personal perspective and advice.

This presents an opportunity to engage and empower individuals who can assume responsibility for their financial future by participating in the financial markets. Whether they currently invest or not, it is imperative that industry leaders empower individuals to make optimal financial decisions for their own betterment.

THE ROLE OF THE INDUSTRY

An average investor requires a broader understanding of why and how to invest, thereby creating potential for market regulators and organisations to work collaboratively. To help people see the benefits of participating in the capital markets, companies can improve their communication of the value proposition of investing, even if it means paying fees and services.

First, financial literacy skills must be taught at a young age, and education must link basic financial health with advanced investment and retirement practices. Financial education must also be provided alongside investment opportunities.

Second, efforts by industry participants should be concentrated on increasing widespread financial literacy and promoting responsible investment strategies. Companies must improve their strategies to meet the requirements of modern investors. This vision requires both short- and long-term steps to be realised.

Third, the capital markets ecosystem should give all investors, no matter how much money they have, access to the tools and advice they need. To thrive in today’s increasingly digitalised financial landscape, the industry must democratise individualised advice.

Technology can help in this effort by providing cost-effective solutions that reduce the complexity of investing and allow people to manage their own finances with more confidence.

Understanding the transformation driven by rapid technological advancements, and closing the significant digital and financial literacy gaps, are vital for accelerating the adoption of advanced financial services and ensuring longterm financial resilience for individuals, businesses and economies.

“AN AVERAGE INVESTOR REQUIRES

A BROADER UNDERSTANDING OF WHY AND HOW TO INVEST, THEREBY CREATING POTENTIAL FOR MARKET REGULATORS AND ORGANISATIONS TO WORK COLLABORATIVELY”

ILLUSTRATION: GETTY IMAGES/CSA IMAGES

Securing wearable tech is key

Wearable technology is one of the fastest-growing segments of the consumer internet of things (IoT) market, projected to grow from $240.94bn in 2023 to $555.92bn by 2030.

From smartwatches and fitness trackers to health monitors and biometric sensors, wearable devices o er a range of consumer benefits, such as convenience, personalisation, and enhanced functionality. However, they also pose significant cybersecurity risks, which could compromise the privacy and safety of users and their data.

One of the main challenges of securing wearable devices is that they are o ten connected to other

devices, weaving a complex network with endless entry points for cybercriminals. Additionally, the data that wearables devices collect, and store can be very sensitive. Biometric data can be used to spoof and breach accounts, GPS data to track and spy, and financial information to commit the t and fraud.

MITIGATING ATTACKS WITH BIOMETRICS

Biometrics can add a much-needed layer of security to the traditional access and authentication mainstream technologies. Beyond usernames, passwords, and PIN codes, biometrics in wearables have a unique potential. Equipped with sensors, wearables can capture and store voice, fingerprints, face ID, and even heartbeats and behaviour characteristics.

Personal data collected by wearable devices can be used to authenticate the user of a wearable device and prevent unauthorised access or tampering. Wearables tend to have more intimate and close access to personal biometric data.

For example, wearable biometric security can analyse pitch, tone, accent and voice behaviours in voice recognition. Artificial intelligence (AI) algorithms can detect if the voice is being impersonated, clean up background noise, and identify honest changes in the user’s voice, such as those caused by an illness.

How wearable device manufacturers can ensure end-to-end security, covering all stages from design to maintenance

Another feature that wearables offer is heart monitoring sensors. Heart rate biometrics are extremely di cult to spoof by bad actors. Similarly, using accelerometers or gyroscope sensors, wearables can recognise, for example, a user’s walking pattern and style.

The most robust biometrics technology to date involves fingerprints. Fingerprint biometrics are standardised and reliable, and the sensors used for this tech are easy to implement.

Additionally, smartphone manufactures are highly experienced with fingerprint ID hardware and so tware, making integration for developers seamless. Fingerprint biometrics can be embedded into anything, from a simple ID card with production costs in single-digit dollars to keyrings and USB thumb drives to under-screen sensors for rugged smartwatches.

BIOMETRIC CHALLENGES

Biometrics in wearables can increase security and enhance user convenience – eliminating the need for passwords or PINs. It provides seamless access, increasing user trust, deterring criminals, and improving personalisation. But biometrics does not come without challenges.

Companies and so tware developers offering biometric security for wearables must consider privacy risks when deploying their products. Biometric data must be stored responsibly to prevent revealing or sharing with third parties data such as the user’s identity, health, location and activities. The way a company collects, stores, transmits and processes biometric data is fundamental. The entire lifecycle of data must be secure and ethical and always respect the user’s consent and control.

BIOMETRIC

Ján Lunter, CEO, Innovatrics

HEART

Furthermore, developers must understand that biometrics alone is not as strong as when combined with other security technologies. They must integrate biometrics with encryption, liveness detection, or multi-factor authentication for e ective results.

Finally, companies must gain insight on how the AI or machine learning models that are at the core of biometrics technology work. This must be so when outsourcing or developing in-house biometric technologies.

Biometric AI algorithms are trained with datasets to ensure accuracy and operational e ciency. But suppose a FaceID biometric tech is trained with a biased database – containing mostly white male faces – it will most likely not be capable of recognising diverse populations. The bias of gender, race or disability can have ethical implications leading to discrimination which impacts users.

Fortunately, there are ways to measure bias. The National Institute of Standards and Technology (NIST) in the US actively monitors bias, and provides reports that include detailed accuracy for all kinds of demographic details for every enrolled algorithm.

Biometrics can secure wearables from cyberattacks by providing a reliable and convenient way of authenticating the user of a wearable device. However, biometrics also require careful consideration of privacy, security, and diversity issues to ensure their e ectiveness and acceptability for wearable users.

THE BOTTOM LINE

To mitigate these cyberthreats, wearable device manufacturers and vendors must adopt a proactive and comprehensive approach to security covering the entire product lifecycle, from design and development to deployment and maintenance. By following best practices and standards, those working in the IoT space can enhance the security of their products and services while also delivering value and innovation to their customers.

“BIOMETRICS IN WEARABLES CAN INCREASE SECURITY AND ENHANCE USER CONVENIENCE –ELIMINATING THE NEED FOR PASSWORDS OR PINS. IT PROVIDES SEAMLESS ACCESS, INCREASING USER TRUST, DETERRING CRIMINALS, AND IMPROVING PERSONALISATION”

AI ALGORITHMS ARE TRAINED WITH DATASETS TO ENSURE ACCURACY AND OPERATIONAL EFFICIENCY

RATE BIOMETRICS ARE EXTREMELY DIFFICULT TO SPOOF BY BAD ACTORS

The ‘omni’ experience

e-commerce and the “connection” of brick-and-mortar retail are getting blurrier. Enter omnichannel retail. Though omnichannel retail – a strategy in which retailers engage customers through multiple digital and physical touchpoints – is not a novel phenomenon, it is increasingly becoming a standard practice in the region. According to a survey, over 55 per cent of the regional population is well-versed in both physical and digital shopping experiences. For a retailer, the growing “phygital” propositions necessitate differentiation. The following are seven tips to give your omnichannel strategy a competitive edge.

01IMoving from vendor-driven to customer-led services

Seven tips to leverage omnichannel retail in the Middle East

There is nothing quite like plopping on the couch on a balmy day and browsing through the site of your preferred fashion brand –we’ve all been there and swear by the feeling. E-commerce has made inroads into our lives, bringing convenience at our fingertips. Conversely, someday when you are strolling through the aisles of a brand outlet in a mall and stop curiously to check out an outfit, you strike an instant connection – a tactile experience of possibly touching the apparel, feeling the material, and trying it on.

Today, in the Middle East, as customer movements driven by pandemic-induced digitalisation and “revenge buying” abate and structural trends gain a foothold, the lines between the “convenience” of

Historically, a retailer’s product/service innovation was limited to the vendor/ supplier’s capabilities. As a single supplier deals with multiple brands, the room for differentiation was small, except for surface-level embellishments. Today, with consumers displaying heightened awareness of the value propositions of different brands, it calls for a paradigm shift in strategy: Moving from vendor-driven to customer-led services. The transition involves first determining customer expectations and then selecting vendors who can support the required services. Data analytics plays a pivotal role in helping understand the customers and facilitating the transition.

02IPredicting instead of reacting

Omnichannel retail requires different inventory pools as the lead times vary between physical and online channels. Say a sports brand has an estimated volume of shoe sales in a market – if a single inventory reactively supplies shoes to different stores or e-commerce warehouses, customers’ shopping experience takes a hit in the event of stock unavailability, long delivery times, etc. Retailers can instead integrate deep-learning models with ERP software to accurately forecast demand across channels and locations. Such insights help optimise inventory levels across the supply chain and ensure frictionless shopping experiences.

03IStaying in sync with behavioural shifts

Humans are creatures of habit. Though the pandemic concerns are over, the shopping habits picked up during the lockdowns continue to define consumerism in the retail sector. The current traction of e-commerce can be linked to that phenomenon. With digitalisation set to continue, e-commerce users will only increase. That presents retailers with a real estate dilemma. As per anticipated trends, existing floor spaces can be remodelled into warehouses or more immersive, experience-oriented outlets. For example, Xiaomi recently launched its biggest store in the Middle East, in Dubai, despite predominantly online sales to possibly ramp up its omnichannel pursuits.

04IUnderstanding demographical correlations

Though the pandemic and resulting uptick in digitalisation led to changes in channel preferences, the structural trends remain important: Millennials and younger generations prefer e-commerce and the older ones like traditional channels. Delving deeper, you’ll find that millennials are more responsive to rewards, loyalty programmes, cashback, etc. and more inclined toward varied digital payments than their predecessors. Such demographical factors must be considered before formulating an omnichannel retail strategy.

05IRevamping and addressing gaps in supply chains

Brick-and-mortar retailers who pivoted to e-commerce without supply-chain considerations are encountering sourcing and logistical issues, higher exchanges – all leading to customer churn. The silos between suppliers

impact the e cacy of omnichannel strategies. Instead, by ensuring cloud-based access to a single source of truth across the value chain, facilitated by customer data platforms, retailers can unlock higher e ciencies. In fact, with such infrastructure, you can drive “inventory sharing” and explore cross-border selling. For example, Adidas and Zalando have a partnership for a shared inventory. If an enquired product or a specific size is unavailable on Zalando, it redirects to Adidas, and vice-versa.

06IDi erent rules for di erent retail

The omnichannel rules for the sales of, say, electronics vary considerably from those of luxury fashion. The latter requires a touch-and-feel experience, whereas electronic products of reputable brands are easily sold online. So, based on retail verticals and their digitalphysical buyer preferences, omnichannel controls must be defined. Some of these preferences – such as trying and buying luxury items – will remain relevant for the foreseeable future.

07IBuilding a dedicated omnichannel team

Unlike digital-first brands, those pivoting to omnichannel from brick-and-mortar channels will find integration challenging due to old habits and silos. A plausible solution is to build a team designated to strategise omnichannel operations and responsible for crosschannel collaborations, congruency, and value creation. Dedicated teams may not be required for digital-first brands building a physical footprint because the approach is already rooted in digitalisation and thus devoid of historical silos. In any case, brands can benefit tremendously through a dedicated team for omnichannel oversight.

Shehbaz Shaikh, chief retail officer, REDTAG

“DELVING DEEPER, YOU’LL FIND THAT MILLENNIALS ARE MORE RESPONSIVE TO REWARDS, LOYALTY PROGRAMMES, CASHBACK, ETC. AND MORE INCLINED TOWARD VARIED DIGITAL PAYMENTS THAN THEIR PREDECESSORS”

55+% OF THE REGIONAL POPULATION IS WELL-VERSED IN BOTH PHYSICAL AND DIGITAL SHOPPING EXPERIENCES

FOR A RETAILER, GROWING “PHYGITAL” PROPOSITIONS NECESSITATE DIFFERENTIATION

The art of tuning out

way. Animals have this innate sensitivity to respond to this bottom-up stimuli.

For instance, following the tragic 2004 Indian Ocean earthquake and subsequent tsunami when more than 200,000 people lost their lives, reports emerged that as humans stood in wonder observing the receding tide of the ocean (as a result of curiosity driven by top-down goals) animals fled to higher ground. At the Khao Lak Elephant Trekking Centre in Thailand, elephants shattered their restraints and fled towards the hills five minutes before the tsunami hit. The tsunami claimed 3,000 human lives in the same area. It was also reported that four Japanese tourists survived, as they were riding the elephants at the time and got carried to safety by the animals.

SURVIVAL MODE

To survive in the world, we must retain this sensitivity to bottom-up stimuli, like the car horn, or noticing the smell of leaking gas. Nonetheless, in a digital age of incessant pings and notifications, our proclivity to bottom-up distractions is driving many of us away from the higher goals we set in life.

Leaving that which does not concern you for that which does concern you, is a time-honoured precept in many traditional belief systems.

Yet, this very principle requires extensive effort to instill. However, without it, we run the risk of being constantly distracted by the frivolous and inconsequential, going through life without purpose or meaning.

Most of us, set ourselves top-down goals and our actions are then a manifestation of these goals. Sometimes, we must ignore our top-down goals and respond to bottom-up stimuli. For example, when crossing the road if you hear a car horn, you know you need to react immediately and get out of the

Let’s take a simple example, which we have all been witness to. You’re driving and you hear a message come through on your smartphone. What do you do? You may even know that 8 per cent of fatal car accidents are due to distracted driving and mobile phone use is the reason for 12 per cent of car accidents. Knowing that a message has arrived, is a level of becoming distracted, as it leaves you pondering: Who sent the message? What do they want? When should I check it? If you consider checking the message it will distract you from your goal of driving safely, as your eyes will have left the road.

Instead, you decide to ignore the message, but the sound or vibration of the message rings like a bell in your mind, increasing your anxiety levels. You ask

In a world of digital distractions abandoning that which does not concern you, nor has any relevance to your top-down goals, is a skill we all need to develop

MOBILE PHONE USE

Rehan Khan, principal consultant for BT and a novelist

Sue Ashford, professor of Management and Organizations at University of Michigan Ross School of Business

THE POWER OF FLEXING

yourself: How important is the message? Do I need to respond immediately? Am I going to miss out on something? You show self-control and refrain from looking at the phone, but the desire to check the message is now like an itch slowly making its way up your back.

At this point, another level of internal distraction kicks in, diverting you from your goal of driving safely. Unable to resist the urge, you decide to check your smartphone. As your eyes turn to the screen of the phone, and flicker back to the road, you get further distracted, and soon your brain is focusing on the message, as your eyes dance between the smartphone and the road, so much so that you miss your turning off the highway.

Now you run the risk of becoming lost, so you need to check Google Maps, to find what other route to take, this creates another external distraction away from your goal of driving safely. Possibly you are running late for a meeting, which means you end up driving faster and more recklessly than you would do normally. This makes you anxious and so this backand-forth continues.

In a world of digital distractions abandoning that which does not concern you, nor has any relevance to your top-down goals is a skill we all need to develop. In the meantime, as we struggle with irritating digital distractions, my advice to myself and you is: switch off all notifications and just live in the moment.

In today’s business environment, leadership skills are more sought-after than ever before. Organisations recognise the benefits of dynamic influencers, and that leadership shouldn’t just come from individuals in formal leadership positions. Emerging leaders seeking to ascend to new levels of personal and professional growth may benefit from implementing “The Power of Flexing” system.

Flexing represents a different and flexible approach to developing potential leaders and individuals. At its core, flexing allows one to own their growth and discover best practices from learning experiences that one can use to grow whenever and however one desires. There are three critical components of flexing that, if implemented correctly, allow emerging leaders to grow intentionally at the individual and organisational levels.

“To survive in the world, we must retain this sensitivity to bottom-up stimuli, like the car horn, or noticing the smell of leaking gas. Nonetheless, in a digital age of incessant pings and notifications, our proclivity to bottom-up distractions is driving many of us away from the higher goals we set in life”

How emerging leaders can own their growth and discover best practices from learning experiences

GETTY IMAGES/ID-WORK

THE FIRST LESSON: Emerging leaders should grow intentionally with a learning mindset. While learning and growth should never stop regardless of where one is on their career path, emerging leaders will find it particularly beneficial to prioritise growth through their experiences, seeing that most of what people learn comes directly from their experiences. Primarily, learning from experience provides the right tools to excel without neglecting what one learns from academics, books, or role models.

THE SECOND LESSON: Emerging leaders should set goals for growth. Setting purposeful and constructive goals involves being mindful of the future, present, and past. A helpful practice for being future-oriented with one’s goals can entail creating affirmations, or “fantasies of the future,” such as “I will be …”, “I will do …” or “I will achieve …”. Making these affirmations specific and distinct can help provide motivation and insight into the most important goals for an individual to reach. While being future-oriented, one must also pay particular attention to the “pain of the present,” otherwise known as what is currently hindering growth that needs assessment.

Feedback is instrumental when attempting to understand what presently requires improvement and can support refining one’s goals. Previous lessons or experiences can also influence goals, referred to as “phantoms of the past”. It is not uncommon for individuals to bring lessons learned earlier in personal life to organisational life that aren’t particularly effective. Recognising when one is carrying previous lessons that offer no benefit to the present and addressing them appropriately is necessary for any individual seeking growth.

THE THIRD LESSON: Emerging leaders should take action. As the saying goes, “It’s easier to steer a moving car than one that’s standing still”. Taking action also necessitates trying new things, which can be daunting but is integral to flexing. It is far more challenging to achieve leadership goals without

assessing the most favourable and effective ways for an individual to reach them. Succeeding as a leader can look reasonably different for all people, as can the methods and approaches used to get there. Hence, exploring and discovering the most successful practices that work best for the individual while embracing adaptability is essential.

Consequently, trying new things also means getting comfortable with the fact that mistakes will happen, and learners should welcome them as valuable lessons instead of growth hindrances. Individuals should be less difficult and strict with themselves and their team to alleviate pressure and empower individuals with more motivation and, most importantly, the courage to take initiative.

These three essential lessons are part of a broader learning process to extract knowledge from learning experiences at their full potential. In order to effectively extract the necessary knowledge from various learning experiences, emerging leaders should:

01 Embrace a learning mindset and do the best one can do in order to learn.

02 Isolate and focus on something specific that requires improvement.

03 Experiment with various ways to improve the isolated issue.

04 Apply experimentations to action.

05 Seek feedback by observing and consulting with team members.

06 Self-reflect on the entire process.

Approaching experiences by isolating, experimenting, applying, seeking, and reflecting, all with a learning mindset, maximises the effectiveness for anyone seeking to grow intentionally through their experiences.

While emerging leaders in organisations can greatly benefit from “The Power of Flexing” system, it is important to recognise that anyone looking to grow can benefit from the system as well.

Applying the valuable skills learned from flexing to everyday life allows for endless opportunities for anyone hoping to be the best and most effective version of themselves in leadership, family, community, and beyond.

“A helpful practice for being future-oriented with one’s goals can entail creating affirmations, or “fantasies of the future,” such as “I will be …”, “I will do …” or “I will achieve …”. Making these affirmations specific and distinct can help provide motivation and insight into the most important goals for an individual to reach”

PRIMARILY, LEARNING FROM EXPERIENCE PROVIDES THE RIGHT TOOLS TO EXCEL WITHOUT NEGLECTING WHAT ONE LEARNS FROM ACADEMICS, BOOKS, OR ROLE MODELS

BRAND VIEW

FOCUSED ON DIVERSIFICATION, COMMITTED TO EXCELLENCE

ZAID S AL KHAYYAT, MANAGING DIRECTOR OF AL KHAYYAT INVESTMENTS, SHARES HOW THE COMPANY HAS BEEN CHARTING ITS GROWTH PATH AS IT SUPPORTS DUBAI’S GRAND ECONOMIC VISION

Dubai recently unveiled the Dubai Economic Agenda ‘D33’ strategy. How is Al Khayyat Investments (AKI) contributing towards this vision?

As a company born in Dubai, we share the emirate’s energy and optimism for what is possible today and tomorrow. We are wholly committed to contributing to the diversification and enlargement of our home economy. For example, our commitment to technology innovation aligns with the Dubai Economic Agenda ‘D33’ focus on advanced manufacturing and digital transformation projects. The company’s businesses also support the agenda’s objectives of increasing foreign trade and raising the city’s status as a preferred destination for international brands.

Which other trends do you see shaping the business landscape in the UAE and the GCC region this year?

An emphasis on sustainable development will reshape many sectors in 2023. The GCC region has already shown great resilience in withstanding a global pandemic, rising inflation, unpredictable supply chains, and a host of other international headwinds. I think part of that success is because the business community and public sector stakeholders generally take a long-term

view to development, looking beyond short-term gains to create truly sustainable economies and societies.

Al Khayyat Investments has become quite diversified in its UAE and regional operations. Tell us more about it. We have had an incredible journey over the last four decades. Our strategy is guided by a desire to deliver specialist products and services which enable people to live healthier and more active lives. A key part of that is cultivating businesses with potential for long-term, sustainable growth.

We have done this very e ectively in our home market of the UAE and have expanded our footprint across nine countries in the Middle East and Africa region. Today, our expertise spans six business lines: retail, healthcare, consumer goods (food and non-food), fitness and lifestyle, contracting and automotive.

Which divisions do you expect to experience the fastest growth within the AKI portfolio this year, considering the current economic conditions?

Overall, AKI is entering a new chapter of expansion in the UAE and the wider region. We are laying the foundations for accelerated growth while delivering even greater

value to our partners and customers. We have strategically invested in key verticals crucial to today’s societies. Among them is the healthcare industry, which continues to be a thriving business line for AKI.

Additionally, contracting expertise in the GCC is in extremely high demand, as are our o erings in the food and non-food FMCG space. Our fitness and lifestyle portfolios are also rapidly developing, seen in brands such as our ‘Befit’ concept. In whatever we do, we approach it with integrity, excellence and aspiration, keeping people at the forefront throughout.

You mentioned healthcare being one of your longest-standing business lines. What has been key to staying at the forefront of this sector?

Our emphasis on understanding patients and consumers’ needs has been essential to staying at the forefront of the healthcare industry. Our track record of progress and performance really speaks for itself, as seen in the dominance of brands like BinSina Pharmacy in their category. This approach has ultimately helped us to nurture longterm relationships with hospitals, clinics, and other healthcare providers, delivering beyond the expected.

Digital transformation is a priority we’ve seen many companies embrace across industries in 2023. How big of a priority is this for AKI?

Regardless of the industry, one of our priorities today is maximising the deployment of new technologies to realise even greater outcomes across the board. For instance, we have been very successful in creating digital-first, mobile-enhanced experiences for consumers in our healthcare and retail operations.

Doubling down on automation and stringent system controls has also enabled us to track and deliver inventory with high levels of accuracy, even when global supply chains have been pressured. We are also excited to bring digitalisation to the heart of our processes at our newest fulfilment centre in Dubai Industrial City (see image above le t), which will make it one of the most advanced distribution hubs in the country.

How secure is your email?

BASED ON A GLOBAL SURVEY OF 1,700 CHIEF INFORMATION SECURITY OFFICERS AND IT PROFESSIONALS, WE HIGHLIGHT THE CYBER RISKS AND KEY STRATEGIES TO AVOID DATA BREACHES

13% 212 DAYS

THERE WAS A 13 PER CENT RISE IN RANSOMWARE IN 2022 — AN INCREASE AS BIG AS THE PAST FIVE YEARS COMBINED

33 BILLION

ELECTRONIC RECORDS ARE EXPECTED TO BE STOLEN IN 2023

$8 TRILLION

CYBERCRIME IS EXPECTED TO COST THE WORLD $8TN IN 2023. IN ECONOMIC TERMS, THIS IS GREATER THAN THE GDP OF ANY COUNTRY EXCEPT THE US AND CHINA

$4.35 MILLION

ON AVERAGE, IT TAKES 212 DAYS TO DETECT A DATA BREACH AND ANOTHER 75 DAYS TO CONTAIN IT

THE CYBERTHREATS THAT HAVE CAPTURED MANAGEMENT’S ATTENTION ARE DAUNTING REDUCING CYBER RISK WITH NEXT-GEN TECHNOLOGY

GLOBALLY, THE A VERAGE COST OF A DATA BREACH IS $4.35M. THE AVERAGE COST IN THE US IS MORE THAN DOUBLE THAT, AT $9.44M

48% faster remediation when an attack has occurred

49% improved ability to block threats

50% more accurate threat protection

94% OF COMPANIES

THINK THEY NEED STRONGER PROTECTIONS FOR THEIR MS 365 AND GOOGLE WORKSPACE APPLICATIONS

92%

OF COMPANIES

are either using or plan to use AI and machine learning to bolster their cybersecurity

—MIMECAST

OVER 95 PER CENT OF ALL DATA BREACHES ARE DUE TO HUMAN ERROR

3

4 OF 48%

5% OTHER FACTORS

KEY FINDINGS 2023

MONITORING

Email usage continues to rise at 8/10 companies

59% say cyberattacks are growing increasingly sophisticated

BUDGET

98% either have a system to monitor and protect against email-borne threats or are actively planning to roll one out

Close to half (48 per cent) said that insufficient employee awareness of cyberthreats would be their organisation’s biggest security challenge in 2023

companies are bracing for serious consequences from an email attack

3 of 4 have experienced an increase in email-based threats

2 of 3 were harmed by a ransomware attack

97% have been targeted by email-based phishing

2 of 3 say their companies need to spend more on cybersecurity

99% provide some form of cyber awareness training to their workforce

8 of 10 believe their company is at risk due to inadvertent data leaks by careless or negligent employees

72% expect to be harmed by a collaboration-toolbased attack

3 of 4 collaboration tools are posing significant new security risks

SOURCE: MIMECAST’S THE STATE OF EMAIL SECURITY

DATA BREACHES ARE VIEWED AS AN EVEN GREATER RISK THAN CLIMATE CHANGE, INFLATION AND ANOTHER FINANCIAL CRISIS”

EMAIL CYBERATTACKS

CYBER AWARENESS COLLABORATION TOOLS

British monarch King Charles III and Queen Camilla are pictured with members of the working royal family after their coronation on May 8 at Buckingham Palace in London: (L-R) Prince Edward, Duke of Kent; Birgitte, Duchess of Gloucester; Prince Richard, Duke of Gloucester; Vice Admiral Sir Timothy Laurence; Anne, Princess Royal; King Charles III; Queen Camilla; William, The Prince of Wales; Catherine, Princess of Wales, Sophie, Duchess of Edinburgh; Princess Alexandra, The Honourable Lady Ogilvy and Prince Edward, Duke of Edinburgh

PHOTO: HUGO BURNAND/BUCKINGHAM PALACE VIA GETTY IMAGES

COVER STORY

DAMAC GROUP

ALL IN THE FAMILY

HOW IS THE DAMAC GROUP PREPARING FOR ITS FUTURE? ALI SAJWANI, THE GROUP'S MANAGING DIRECTOR – OPERATIONS AND TECHNOLOGY, SHARES THE NEXT CHAPTER OF GROWTH PLANNED FOR THE DUBAI-BASED CONGLOMERATE

WORDS: NEESHA SALIAN

PHOTOS: MARK MATHEW

THE MANDARIN ORIENTAL BOLIDHUFFARU REEF IN THE MALDIVES IS A 34-HECTARE RESORT THAT COMPRISES 130 STANDALONE VILLAS, INCLUDING OVERWATER VILLAS AND BEACHFRONT VILLAS, AS WELL AS TEN BRANDED RESIDENCES

WWe are on a journey of transformation – transitioning from a successful family business into a global corporation that is agile, streamlined, and focused on growth and diversification. It’s a key step to consolidate and futureproof the legacy my father has built over four decades,” says Ali Sajwani, referring to DAMAC Group, the multi-billion-dollar home-grown conglomerate that his father, Hussain Sajwani, founded in 1982.

As the group’s managing director of Operations and Technology, Sajwani is spearheading the evolution of DAMAC, the parent company of luxury property developer DAMAC Properties, high-end jewellery brand de Grisogono, fashion house Roberto Cavalli, and data centre firm, Edgnex. He has also been tasked with overseeing the company’s digitalisation, including its decision to embark into the metaverse and build its own digital cities, becoming one of the pioneers in the GCC to do so. Considering the scale of the group’s local, regional and global operations, his remit requires constant interaction and involvement in every aspect of the business, and it’s something he has been doing since he was 13 years old.

STARTING YOUNG

“My father has always involved us closely in the business and sought our counsel for every major decision. In fact, I remember going to the o ce from the time I was in school. We even discussed business during family meals. I learned to read balance sheets and understood everything from gross margins to valuation metrics and how to price our products – it was the best training ground anyone could ask for.

“I joined the company o cially in 2014 a ter graduating from Northeastern University in Boston. I spent two years at our construction sites, followed by a stint leading the sales team in 2016. In fact, I used to follow up on more than 250 leads a day. I then took over other divisions such as technology, customer relationship management (CRM) and handovers. I introduced various tech tools to bolster operations, including the DAMAC Living app and an e-commerce app we are building to facilitate frictionless online sales, which have seen an upward tick since the Covid-19 pandemic. Another significant lesson was understanding how our teams, our people have contributed to our success,” explains Sajwani, who is in his 30s.

HONING BUSINESS SKILLS

Sajwani's sister Amira, who manages sales and development for the group, and brothers Abbas and Mehdi, are also actively involved in the family business.

Mehdi, the youngest among them, attends meetings during his school breaks, honing his business skills just like his older siblings.

Sajwani likens this to how Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister

of the UAE and Ruler of Dubai, has been grooming and preparing Crown Prince Sheikh Hamdan Bin Mohammed bin Rashid Al Maktoum and the younger generation of leaders to steer the emirate in its next phase of growth.

“It has been a great inspiration to see how Dubai has evolved, particularly if you liken it to a business or corporation and the role of the emirate’s leaders in making this a reality,” he adds.

Sajwani says his father’s focus on collaboration and communication has built a strong foundation for the business. “My father is an astute businessman and visionary, but he is also a strict teacher and a stickler for hard work and details, and I share these traits. He continues to be an important force in our business, inspiring us to take the company to the next level.”

This emphasis on detail is key to DAMAC’s success and ongoing transformation, which commenced with the finance team, and then expanded to the CRM, sales and technology divisions. “The goal is to eliminate bureaucracy and bring governance and processes into the system to shape growth and drive e ciency. This has required a ‘shi t’ in culture, which o ten is one of the hardest things to do in a company, but it’s what the future demands.”

Sajwani and Amira are closely involved in driving the group’s current and future plans. “We share an aligned vision when it comes to work and we rarely disagree on decisions; however, when we do have di erent opinions if it’s a decision related to sales and development, she has the final say and I respect it, and when it’s related to operations and technology, I get to make the final decision and she respects it.”

INNOVATION AND LUXURY IN ITS DNA

The siblings agree that innovation has kept their business ahead of the competition in their key market and industry: Dubai and property development. Prime examples of this include DAMAC Residenze, DAMAC Heights, Park Tower, Ocean Heights, DAMAC Towers by Paramount, DAMAC Hills 1 and 2… the list is long.

Sajwani says, “Dubai’s real estate sector holds tremendous potential across segments. The emirate is attracting investors and high-net-worth individuals from all around the world, hailing from di erent backgrounds and nationalities. It o ers a wide range of attractive perks such as luxury hospitality, the best international F&B, top-quality entertainment and much more. Dubai is also simplifying all processes that would attract investors to the city, such as the golden visa and the di erent investors’ visa options. The most important point I would like to highlight is that Dubai o ers the best quality of living at the most a ordable cost, it gives you real value for money. I believe that living in Dubai costs one-fi th the cost compared to other global cities.”

While the factors driving consumer interest has spurred business, it's DAMAC brand of luxury that is the key draw for buyers.

Amira Sajwani

“We always ask ourselves, what else can we do in this project that will differentiate it from the last one? What can we do to come up with a new and special concept? This strategy and mentality positions DAMAC as a trendsetter in the market, which matters to us and to any other real estate developer to be able to dominate the market,” says Sajwani.

Talking about the company’s focus on luxury developments, he adds: “We were one of the first developers to introduce branded residences when we announced Cavalli Tower in 2021. Today, we’re also one of the first developers to introduce luxury seafront living properties with DAMAC Bay by Cavalli, an innovative 42-storey residential concept rising as three stunning towers in Dubai Harbour.”

Additionally, the company has revealed Canal Crown by de GRISOGONO. These are designer waterfront apartments located at Business Bay, with state-of-the-art infrastructure and world-class attractions.

Sajwani says that people think DAMAC only makes exclusive luxe towers. “Luxury is part of the company’s DNA, and it extends across segments. We also have some of the most luxurious community developments that are intended for families. They have the best amenities and offerings to satisfy all our customers. DAMAC Lagoons is an example. It’s a huge master community of elegant townhouses and villas, surrounded by azure blue lagoons, inspired by the Mediterranean, where every cluster has its own theme depending on the name such as Monte Carlo or Mykonos.”

Sajwani is also very focused on the group’s hospitality offerings in the UAE and overseas. Currently, he is closely involved in the construction of the Mandarin Oriental Bolidhuffaru Reef in the Maldives, which is slated to open in 2025. He says the ultra-luxury resort will raise the bar for the industry and competitors. The 34-hectare resort will feature 130 stand-alone villas, including overwater villas and beachfront villas, as well as ten branded residences.

The internal size of the villas will range from 100m2 to 600m2, with each featuring exquisite finishes, private

FAST FOUR WITH ALI SAJWANI

WHAT’S YOUR IDEA OF LUXURY?

Luxury is a state of mind. You can have the most luxurious home or car, but it doesn’t mean you are happy. So, luxury for me is a state of wellbeing.

HOW DO YOU RELAX?

I wake up at 5 am every day. I spend half an hour at the beach, play with my son and enjoy every moment. It energises me for the day.

THE MOST VALUABLE LESSONS YOUR FATHER HAS TAUGHT YOU...

The importance of hard work, paying heed to the finer details and putting family first.

WHAT IS THE KEY PRINCIPLE THAT DRIVES YOUR WORK?

Always look at how you can enhance and improve what you achieve or build. Keep setting new standards for yourself and your organisation – be it in your product, customer service, technology, or mindset.

pools and offering stunning ocean views. “We will build more such resorts and are looking at Mauritius, Seychelles and Bali next,” he adds.

INTRODUCING AMALI

However, the project that has both Sajwani and Amira very excited is their new, independent brand. “Amali means ‘my hopes’ in Arabic, and we chose this name because we want to focus on the hopes and dreams of our customers and bring them to life. We wanted to have a project that we create from scratch, with complete freedom in imagining how the product would be, and that’s how we came up with the idea of Amali,” says Sajwani.

Amali resonates with the concept of premium residential resorts within an urban landscape. Sajwani adds: “We all lead busy lives, but imagine escaping the hustle and bustle of the city to enjoy the comforts and elegance of an uber-luxe resort – every single day. Dubai is the perfect setting for such an offering, with its stunning skyline, beach-fringed landscape and amazing infrastructure.

“Amali goes one step further – it’s redefining luxury beachfront living in Dubai. The project features a 'super exclusive' collection of 18 villas, located in the World Islands, only six minutes away from the centre of Dubai in a boat ride, each with private berths for homeowners to dock their boats. We want to offer our clients the chance to experience their own slice of paradise every day, with breathtaking views, top-of-theline amenities, and unparalleled exclusivity. The starting price for these villas is Dhs50m.”

“We’re planning to launch our project in the last quarter of 2023, and we’re extremely excited to show the world what we’ve come up with,” concludes Sajwani on an excited note.

Dubai Lagoons

Mandarin Oriental Bolidhuffaru Reef, Maldives

"KEEP SETTING NEW STANDARDS FOR YOURSELF AND YOUR ORGANISATION – BE IT IN YOUR PRODUCT, CUSTOMER SERVICE, TECHNOLOGY, OR MINDSET"

CASHING IN ON THE ECONOMIC BOOM

STRONG CAPITAL BUFFERS HAVE SUPPORTED THE UAE FINANCIAL SERVICES SECTOR OVER THE YEARS AND BANKS ARE RE-ARTICULATING THEIR VALUE PROPOSITION TO THRIVE IN THE NEW DIGITAL ENVIRONMENT

WORDS: KUDAKWASHE MUZORIWA

The UAE banking system has largely demonstrated its resilience to slower global economic growth and the recent collapse of three banks in the US, as well as the takeover of Credit Suisse, which precipitated a loss of confidence in the global banking system.

Banks operating in the country reported higher net profits in the first quarter of the year a ter a robust performance in 2022, as strong economic growth helped to drive an increase in margins and net interest income.

The aggregate net income of UAE’s top 10 lenders surged by 35.3 per cent quarter-on-quarter to Dhs18.3bn, driven by enhanced cost e ciencies and lower impairment charges, according to Alvarez & Marsal’s UAE Banking Pulse Q1 2023 report. This increase in profitability was further supported by a rise in noncore income.

The country’s banking industry has adequate capital and liquidity bu ers to withstand severe shocks. It will continue to benefit from stable and strong capital bu ers and good funding profiles. The UAE’s real GDP is projected to expand by 3.3 per cent in 2023, as the country remains relatively insulated from the global economic downturn. “We expect the UAE’s economic growth to slow modestly in 2023 due to OPEC+ agreed oil production cuts and deceleration in the non-oil sector due to higher interest rates,” said Dr Mohamed Damak, senior director, S&P Global Ratings.

Higher oil prices, supportive government spending and a surge in non-oil business activity are expected to support GDP growth and reinforce banks’ creditworthiness.

S&P Global said the strong performance in the UAE’s banking sector in 2023 is being driven by higher interest margins, a supportive domestic economy and high oil prices.

On the digital front, the typical banking customer is changing. As a result, the UAE lenders must move with the times as the country’s banking sector is considered as one of the most pro-innovative across emerging markets.

The UAE Banks Federation (UBF) said that the adoption rates for digital banking services in the country have

increased more than 100 per cent, driven by the advancements made in deploying innovative technologies.

The country is home to several digital banks focusing on streamlining operations to conduct high-volume digital transactions. Dr Damak noted that the adoption of neobanks is increasing in the UAE, but the digital-native banks’ current o erings are limited to plain vanilla products.

Digital banks in the UAE are actively improving straight-through processing methods to enhance customers’ digital experience and further leverage data to align products and services with customer expectations.

The UAE, particularly Dubai, is a key business and finance hub in the Middle East, and the country appears well-positioned to withstand any external shocks such as the ongoing global banking crisis. The country is also home to global financial institutions serving the region.

PROFITS PASS THE PRE-PANDEMIC MARK

The UAE’s banking sector got o to a strong start in 2023 a ter experiencing landmark growth last year on the back of an improving operating environment marked by economic recovery and the central bank’s moves to tighten monetary policy.

Asad Ahmed, Alvarez & Marsal managing director and head of Middle East financial services, said that Q1 2023 has been a very strong quarter for the UAE banks and the sector is expected to maintain the gains of the first quarter for the balance of the year.

“Stable net interest margins (NIMs), improving cost e ciencies and lower impairments have led to record profits for the UAE banks in the previous quarter, although we witnessed mixed performance by some banks on the margin front.”

The combined net profits of the UAE’s top five banks – First Abu Dhabi Bank (FAB), Emirates NBD, Dubai Islamic Bank (DIB), Abu Dhabi Commercial Bank (ADCB) and Mashreq Bank –reached Dhs14.9bn in the first quarter of the year.

THE UAE’S CENTRAL BANK HAS MIRRORED ALL OF THE US FEDERAL RESERVE’S INTEREST RATE HIKES IN 2022, A TREND WE EXPECT TO CONTINUE IN 2023, WHICH WOULD BENEFIT UAE BANKS”

S&P GLOBAL RATINGS

THE COUNTRY REMAINS RELATIVELY INSULATED FROM THE GLOBAL ECONOMIC DOWNTURN

THE UAE’S REAL GDP IS PROJECTED TO EXPAND BY 3.3 PER CENT IN 2023

FAB’s Q1 2023 net profit jumped 70 per cent year-on year (YoY)to Dhs3.9bn, Emirates NBD’s net profit soared 119 per cent to Dhs6bn, ADCB reported a net profit of Dhs1.88bn, up 27 per cent YoY, DIB’s net profit rose by 12 per cent to Dhs1.51bn while Mashreq registered a net profit of Dhs1.6bn.

S&P Global said profitability at UAE banks has recovered to pre-pandemic levels mirroring the performance of their peers across the GCC region on the back of higher interest rates and stable cost of risk. The rating agency highlighted that e ciency in the UAE banking sector

remains strong, but inflation will likely drive up operating costs.

“UAE banks are ‘strong, capitalisation is in good shape’ with higher return ratios,” according to Alvarez & Marsal. However, it remains to be seen if the banks will maintain the strong momentum experienced in the first quarter throughout the year.

The Central Bank of the UAE (CBUAE) raised key interest rates on its overnight deposit facility by 25 basis points to 5.15 per cent from 4.90 per cent a ter the US Federal Reserve (Fed) delivered its 10th consecutive hike in May. The apex

lender maintained the rate applicable to borrowing short-term liquidity through all standing credit facilities at 50 basis points above the base rate. Fed rate-hiking cycles and their almost full replication by CBUAE and other GCC central banks resulted in higher aggregate NIM for the banking sector. “UAE banks are adopting a pragmatic approach in reflecting the increase in interest rates for their clients so that they do not push the client to default,” says Dr Damak. “We expect the overall impact of higher interest rates to be positive for the banking system.”

Pic: Getty Images

S&P Global Ratings said the UAE’s central bank has mirrored all of the US Federal Reserve’s interest rate hikes in 2022, a trend that is expected to continue in 2023, which would benefit the country’s banking sector.

UAE’s financial institutions have adequate capital overall and abundant liquidity, while their asset quality has improved modestly from pandemicera peaks. Similarly, the pegging of the dirham to the US dollar all but eliminates foreign exchange risk, a most valuable trait in emerging markets (EM) at a time when faltering commodity prices present a risk to the EM FX asset class.

DIGITAL BANKING

The UAE banking sector is at a pivotal moment. Faced with changing consumer expectations, emerging technologies and new business models, banks are implementing digital strategies now to help them prepare for an artificial intelligence-powered banking ecosystem of the future.

Mainstream banks in the UAE were already at the forefront of innovation and digitalisation well before the pandemic. Most incumbent banks in the country have made significant strides in recent years to overhaul their digital strategies in a bid to not only counter the threat posed by challenger banks but also to streamline operating costs as customers turn away from branch-based banking in favour of smartphone-based alternatives.

“The great leap in digital banking adoption was achieved in line with the strategic vision of the UAE central bank, which is characterised by its proactive approach in setting the framework to keep abreast with the latest technologies and support for the banking sector in developing innovative solutions,” Jamal Saleh, director general of the UBF said in an address at a banking technology summit in Dubai.

GREENFIELD BANKS VS NEOBANKS

Mashreq trimmed its nationwide branch network from 34 in 2019 to just 10 this year. The Dubai-based bank is one of several UAE traditional lenders that operates ‘digital spino s’ o erings with its consumer-facing Neo and businessfocused NeoBiz.

According to Dr Damak, “Banks have been cutting their branch network significantly and diverting the business to electronic channels.” He believes that the payment and money transfer business is being disrupted by neobanks and other fintech firms and traditional banks such as Mashreq have set up speedboats, greenfield banks or digital attackers to maintain a competitive edge and reduce operating costs.

Emirates NBD launched Liv., a digital-exclusive bank for millennials, in 2017. Building on this success, the bank unveiled E20 in 2019, a digital bank that caters to the needs of small and mediumsized enterprises. DIB also introduced its digital spino rabbit in December 2021. The Shariah-compliant lender’s digital banking platform, which is aimed at serving the banking need of tech-savvy customers, offers current accounts,

Pic: Getty Images

STABLE NET INTEREST MARGINS, IMPROVING COST EFFICIENCIES AND LOWER IMPAIRMENTS HAVE LED TO RECORD PROFITS FOR THE UAE BANKS IN THE PREVIOUS QUARTER, ALTHOUGH WE WITNESSED MIXED PERFORMANCE BY SOME BANKS ON THE MARGIN FRONT” ASAD AHMED

WE EXPECT THE UAE’S ECONOMIC GROWTH TO SLOW MODESTLY IN 2023 DUE TO OPEC- AGREED OIL PRODUCTION CUTS AND DECELERATION IN THE NON-OIL SECTOR DUE TO HIGHER INTEREST RATES”

DR MOHAMED DAMAK

UAE BANKING PULSE Q1 2023

The UAE’s 10 largest listed banks were analysed in Alvarez & Marsal’s annual report. These include First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank, Dubai Islamic Bank, Mashreq Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, National Bank of Fujairah, National Bank of Ras AlKhaimah (RAKBANK) and Sharjah Islamic Bank

BANKS HAVE BEEN CUTTING THEIR BRANCH NETWORK SIGNIFICANTLY AND DIVERTING THE BUSINESS TO ELECTRONIC CHANNELS

globally accepted debit cards as well as payments and money transfer services.

Dr Damak says several UAE banks relaunched their digital banking platforms in 2022 to bolster service delivery, meet customers’ evolving demands and maintain a competitive edge in a highly competitive market.

“As consumers become more dynamic and demanding in the ways they interact with banks, commercial banks are seeking opportunities to deliver technology-enabled services that go beyond traditional banking,” said KPMG.

UAE banks are taking a more sophisticated approach to digital transformation by leveraging application programming interfaces (APIs) to maximise the value they derive from these digital workhorses. APIs are at the core of banks’ open architecture and play a significant role in UAE banks’ digital strategy.

Source: Based on financial statements, investor presentation and A&M analysis

Abu Dhabi Islamic Bank launched its first API developer portal in June

2022 to help fintech developers to build new products that interact with the lender’s platforms.

Emirates NBD also launched a readyto-use API developer portal, ‘Emirates NBD API Souq’, to offer fintechs, developers and corporate clients an allin-one ecosystem to build innovative financial solutions.

Digital banking has yet to reach mainstream adoption in the UAE, but the market is already showing an appetite for alternative solutions that enable customers to access banking services without stepping into brick-and-mortar branches.

Royal Strategic Partners-backed NAQD Community Bank is the latest neobank to join the UAE’s growing digital banking ecosystem a ter receiving preliminary approval from the CBUAE.

RAKBANK-backed YAP, ADQ-owned Wio Bank, Zand Bank and Abu Dhabibased Al Maryah Community Bank are already dominating the UAE’s digital banking sector.

“The adoption of digital channels is on the increase, and the launch of the challenger banks has brought urgency to the digital transformation of the existing banks; however, it is still early days, and the impact of the challenger banks has yet to be fully felt,” says Ahmed.

The emergence of new innovative technologies and the initiatives that are also

JAMAL SALEH

being implemented by the UAE’s financial hubs – Abu Dhabi Global Market and the Dubai International Financial Centre – o ers banks a window to be more innovative and e cient in service delivery.

PIVOTING ISLAMIC BANKING GROWTH

The structural characteristics of banks in the UAE are a diverse mix of conventional and Islamic entities as well as being both retail-focused and corporatealigned in their stance. The country’s Islamic banking industry has evolved over the years, and so too have the product structures as the sector moves to o er tailored features to meet the needs of a growing investor base.

The UAE remains a key Islamic finance hub, and the sector accounted for 29 per cent of total Islamic financing at the end of 2022. Islamic banking growth outpaced conventional banks last year, driven by growing investor demand for Shariah-compliant products and deep distribution networks.

UAE Islamic banks grew by 8 per cent in 2022, higher than their conventional

peers’ 3 per cent, according to Fitch Ratings’ UAE Islamic Bank Dashboard 2023 report. The sector’s operating profit/risk-weighted assets ratio improved significantly in 2022 on widening net financing margins and lower financing impairment charges.

Fitch projected that the credit fundamentals of UAE’s Islamic sector would continue to be supported by high oil prices and solid economic conditions in the medium term, which is expected to alleviate the impact of rising profit rates on borrowers.

However, the continued digitalisation of the sector will boost the need for further mergers and acquisitions to defend market share and find cost synergies, mainly among smaller Islamic banks that risk being le t behind. The country’s major deal to date is DIB’s acquisition of Noor Bank in January 2020, a deal that created a Shariahcompliant mega bank with total assets of Dhs292bn as of March 31, 2023.

In this context, the outlook for the UAE banking industry looks reasonably bright, and the sector will likely benefit from stable exchange rates, relatively low inflation, buoyant non-oil business activity and major public and private investment programmes.

THE GREAT LEAP IN DIGITAL BANKING ADOPTION WAS ACHIEVED IN LINE WITH THE STRATEGIC VISION OF THE UAE CENTRAL BANK, WHICH IS CHARACTERISED BY ITS PROACTIVE APPROACH IN SETTING THE FRAMEWORK TO KEEP ABREAST WITH THE LATEST TECHNOLOGIES AND SUPPORT FOR THE BANKING SECTOR IN DEVELOPING INNOVATIVE SOLUTIONS”

THE UAE REMAINS A KEY ISLAMIC FINANCE HUB, AND THE SECTOR ACCOUNTED FOR 29 PER CENT OF TOTAL ISLAMIC FINANCING AT THE END OF 2022

IMPACT PREPARING FOR

ARTIFICIAL INTELLIGENCE IS COMING FOR WEALTH MANAGEMENT. HERE’S WHAT IT MEANS

rtificial intelligence (AI) is making remarkable progress in a wide array of tasks, as demonstrated by the rollout of OpenAI’s GPT-4 and Alphabet’s Bard.

We asked experts how this technology will affect wealth management. Their responses are edited for length and clarity.

DAVID BAILIN CHIEF INVESTMENT OFFICER AND GLOBAL HEAD OF INVESTMENTS AT CITI GLOBAL WEALTH

Artificial intelligence will allow the client to access an incredible amount of information and ask questions in a language that the client is comfortable with and receive answers. For practitioners, the limitation it will have will be in researching what is happening today with that company, that security, that market – it will have real limitations on contemporaneous action. Footwork will always be necessary in making investment decisions.

It will absolutely improve client education, and it will absolutely improve the repetitive tasks of a practitioner – it will be an incredible e ciency generator.

JIMMY CHANG CHIEF INVESTMENT OFFICER AT ROCKEFELLER GLOBAL FAMILY OFFICE

I posed the question of how AI will change wealth management to one of the leading chatbots, and it replied that AI will have a significant impact by providing more personalised, data-driven advice in specific areas such as portfolio optimisation, risk management, fraud detection, tax analysis and even relationship management. I believe, however, that the adoption of AI is easier said than done. Unlike traditional so tware that generates predictable outputs, AI’s ability to learn and adapt means that its responses will evolve over time and may be unpredictable.

Training wealth management bots and incorporating their outputs will be more of an art than science as they require nuanced insights, reasoning and judgment across many areas. In time the pupils will outshine the teachers; but for now, don’t let them contact your clients directly.

UNLIKE TRADITIONAL SOFTWARE THAT GENERATES PREDICTABLE OUTPUTS, AI’S ABILITY TO LEARN AND ADAPT MEANS THAT ITS RESPONSES WILL EVOLVE OVER TIME AND MAY BE UNPREDICTABLE”

SARAH HOFFMAN

VICE PRESIDENT, AI AND MACHINE-LEARNING RESEARCH AT FIDELITY INVESTMENTS

Artificial intelligence is on the verge of being fully democratised, and we need to prepare for how this could potentially change every interface that employees and customers rely on.

There will be new opportunities to integrate access to these apps into work experiences and fold these AIs into customer-facing tools. With more potent and democratised AIs, it’s entirely possible that new divisions of labour will emerge as formerly arcane areas of specialisation become more accessible to a broader audience.

More sophisticated AI could also be a silo breaker. There are many e orts to share knowledge within large companies; a more powerful AI model could potentially work across multiple business units, leading to more collaboration and greater e ciency.

Artificial intelligence will impact our lives in the not-too-distant future not by replacing us, but by helping us with a range of cognitive tasks. Already, I can imagine a tool like ChatGPT assisting with upgrading our approach to financial literacy and corporate training. As the financial world

gets even more complicated – with new assets, new currencies and new frameworks – it’s time to think differently about financial education. While we may not want these tools to advise customers directly, perhaps they can help educate employees, and even help customers prepare before they meet with representatives, so they can ask better questions. Chatbots can also be very useful as a brainstorming tool, whether it’s for new product ideas, marketing campaigns, companies to invest in or ways to use emerging technology.

Artificial intelligence/ machine learning (ML) models are a tremendous enabler to unearth better insights into what our clients are looking to achieve, their investment behaviours and timelines – o ten better than clients can themselves. Every investor has di erent and unique goals, so a personalised approach to their needs can make a large impact on their outcomes.

We’re harnessing the power of AI/ML to fuel our two core advice engines – Digital Advisor and Personal Advisor – beginning with the digital onboarding process. In real time our advice engines leverage insights like retirement age, savings and spending, investment behaviours and goal parameters, to create customised financial plans that help clients meet their short-term and long-term financial goals. The outcomes of using this technology in a client-centric way aren’t just in numbers – these insights help families save for their dream homes, workers enjoy the retirement they’ve saved for and give children access to life-changing education. Further, ML techniques enable us to rerun personalised, forward-looking projections anytime a client changes their inputs, which enables real-time suggestions such as increased savings or modifying goal amounts. We’re also using AI/ML within our financial intermediary business to provide datadriven insights that drive in-the-moment client experiences and next best action for clients.

RECOMMENDATION SYSTEMS WILL PRODUCE NEXT BEST ACTIONS, TAILORED TO THE GOALS OF THE CLIENT, THAT ENABLE FINANCIAL ADVISERS TO BEST SERVE CUSTOMERS REGARDLESS OF THE MARKET CONDITIONS”

KEVIN LEVITT DIRECTOR OF GLOBAL BUSINESS DEVELOPMENT FOR FINANCIAL SERVICES AT NVIDIA CORP

Artificial intelligence will influence every aspect of wealth management from client service to compliance. Generative AI will produce hyperpersonalised content, from advertising copy to email newsletters, increasing the success of campaigns across the entire customer journey from acquisition to retention.

Deep-learning models from computer vision to natural language processing will analyse thousands of data streams in real time to glean market intelligence, delivering signals to wealth managers that improve investment returns. Recommendation systems will produce next best actions, tailored to the goals of the client, that enable financial advisers to best serve customers regardless of the market conditions. Ultimately, these recommenders will fuel self-driving financial applications that will rebalance portfolios, establish new accounts like 529s for college savings, refinance loans and more automatically.

Artificial intelligence-enabled applications will lead to financial advisers serving customers more expertly, increasing their share of assets under management at the expense of wealth management firms that don’t transform their business with AI.

NITIN TANDON CHIEF INFORMATION OFFICER AT VANGUARD

WE’RE HARNESSING THE POWER OF AI/ML TO FUEL OUR TWO CORE ADVICE ENGINES – DIGITAL ADVISOR AND PERSONAL ADVISOR”

ANDREW SALESKY

Newer disciplines like predictive analytics and AI are allowing advisers to increase the scale at which they can e ectively deliver a customised client experience and powering the solutions that can help them do it. Schwab’s thematic stock lists are a great example – leveraging natural language processing (NLP) to mine terabytes of data and millions of public documents to objectively identify publicly traded companies based on their relevance to a particular investment theme. Schwab Assistant is another – with NLP enabling us to refine our automated service channel that o ers 24/7 selfservice assistance, creating more ways for clients to interact with us in their channel of choice.

In the near term, I expect we’ll see the most rapid progress focused on the ways in which AI can be used to assist the people whose direct relationships with their clients will continue to be a key competitive advantage in the industry – identifying opportunities to improve the e ciency and e ectiveness of everything from completing routine tasks to engaging clients with meaningful, tailored insights. These advancements will come in areas like knowledge management, content generation and enhanced search capabilities that take advantage of generative AI.

Longer term, I anticipate the industry will begin to explore more client-facing applications – things like AI-derived advice.

THE PERSONAL RELATIONSHIP BETWEEN A WEALTH ADVISER AND THE CLIENT IS CRITICAL, AND THAT’S NOT EASILY REPLICATED BY AI. OFTEN THE “RIGHT ANSWER” IS NOT MYSTERIOUS, BUT CONVINCING THE CLIENT THAT IT IS NECESSARY FOR THE FUTURE OF THE FAMILY IS THE TRICK”

SUSAN C KAPLAN

PRESIDENT AT KAPLAN FINANCIAL SERVICES

Artificial intelligence will be a staggering aid in amassing data about markets and trends and relationships between varying forces. In fact, one may drown in the numbers for a time. Eventually, however, one will develop a hierarchy for the quantitative information that is most important. Artificial intelligence will also be essential to capture the varying minutiae of a client’s family connections and financial responsibilities versus goals.

The personal relationship between a wealth adviser and the client is critical, and that’s not easily replicated by AI. O ten the “right answer” is not mysterious, but convincing the client that it is necessary for the future of the family is the trick. That is the moment that the psychological connection with the client and the family is the linchpin of success in the financial planning process. Most major decisions are made a ter extensive discussion of the implications of those decisions. Communication and an emotional connection are critical to persuading the client to make the best move.

AT WEALTHFRONT WE WERE ABLE TO DEVELOP MODELS USING MACHINE LEARNING TO HELP CLIENTS UNDERSTAND THEIR SAVING AND SPENDING PATTERNS”

DAVID FORTUNATO

Over the last decade, we’ve seen a powerful movement of so tware eating financial services. Artificial Intelligence is one of the many dimensions of this movement that has already made a mark on the industry. For example, at Wealthfront we were able to develop models using machine learning to help clients understand their saving and spending patterns and reveal insights like how early they can retire.

While most of the financial services industry focuses on using automation and AI to lower costs, we focus on applying these models to create a better client experience. We’re able to provide incredible personalisation to our clients using simple AI techniques.

More sophisticated AI will facilitate even greater ease of use, personalisation, and lower costs in financial services that the consumer will ultimately benefit from.

With the right framework and inputs from the client, AI can empower more people to be in control of their finances and make informed decisions. The days of needing to meet in person with an adviser will become obsolete.

CHIEF EXECUTIVE OFFICER AT WEALTHFRONT

CHIEF DIGITAL OFFICER AT CHARLES SCHWAB CORP

Ahead of the game

Following the innovative showcase of its dual flagship strategy, featuring the Magic5 Series and Magic Vs from the flagship Magic Series, at the Mobile World Congress 2023, Honor has achieved remarkable success. The Magic5 Pro, in particular, garnered 18 prestigious awards across various categories, solidifying Honor’s position as an industry leader.

The global technology brand has constantly proven its dedication to technological advancement and this time, the focus is firmly on artificial intelligence.

Artificial intelligence (AI) has played a pivotal role in smartphone manufacturing, and Honor has taken the lead by introducing industry-first AI features in its new launches. By recognising the importance of AI in shaping the future, the forward-thinking brand is dedicated to pushing boundaries and delivering innovative technology.

Featuring an AI network with more than 270,000 images, the AI motion sensing technology in the Magic5 Pro enables the camera to recognise varied scenarios precisely, intelligently identify the

highlight point in running, jumping and smiling scenarios.

Meanwhile, the brand’s AI privacy call is a solution to sound-leaking. In its AI directional sound technology, the screen and the receiver work together to adjust the volume of the incoming audio to suit different environments, preventing sound leakage.

ENTRY INTO FOLDABLE PHONE MARKET

In recent years, foldable phones have experienced significant growth in the Middle East and beyond. The allure of a larger display that can be easily folded for enhanced portability has captured the attention of consumers. With sleek designs and cutting-edge technology, foldable phones o er a unique user experience that appeals to tech enthusiasts and early adopters.

Recognising this trend and the demand for foldable devices, especially among the youth and working professionals, Honor has taken the lead in fulfilling this requirement. The brand has introduced its first-ever foldable phone – Honor Magic Vs. The smartphone is brings the first

super-light gearless hinge design with no gap technology.

Honor has used the single-piece casting processing technology to create the gearless hinge, which has enabled them to significantly minimise the number of structural elements from 92 down to just four.

Built with aerospace-grade materials, the hinge can withstand up to 400,000 folds, ensuring long-lasting durability to deliver a worry-free and smooth experience.

HUMAN-CENTRIC INNOVATIONS

In a remarkable shift from device-centricity to human-centricity, Honor is determined to serve user needs with purpose-driven technology. Its aim is to provide solutions to real-world problems and enhance everyday life experiences.

One of the significant innovations by Honor is the introduction of its MagicOS, which breaks down the boundaries between devices. With seamless connectivity, services flow e ortlessly from one device to another, tailored to each user’s needs and usage scenarios.

The brand’s human-centric mindset also extends to its product design philosophy. Rather than accepting trade-o s, Honor focuses on delivering the best experiences without compromises in slimness and durability, performance and endurance, authenticity and style.

CREATING A NEW SMART WORLD

Furthermore, Honor has taken significant steps to create a new smart world for everyone. By employing green materials such as bioplastics, the brand reduces its reliance on fossil fuel byproducts, thus contributing to environmental sustainability. By o ering top-of-the-line devices and innovative features, Honor aims to become the preferred choice for consumers in the region, elevating its market share and reputation. With its unwavering focus on AI, user-centric approach, commitment to the environment, and dedication to empowering the youth, the brand is already a step ahead in establishing itself as a leader in the smartphone industry.

The Magic Series exemplifies its relentless pursuit of excellence and determination to shape a smarter and more inclusive future for all.

Pic:

Feijian Ma (Mr. House), GCC country manager at Honor, highlights the brand’s commitment to pushing limits delivering innovative technology

SPECIAL REPORT: UAE REAL ESTATE

WE SHINE THE SPOTLIGHT ON THE

UAE

PROPERTY SECTOR’S Q1 2023 PERFORMANCE

TECHNOLOGY BUILDING ON

BY DIVSHA BHAT

The global real estate industry is experiencing a significant transformation as it embraces digital advancements facilitated by proptech innovations.

The Covid-19 pandemic underscored the importance of adopting digital solutions in the real estate sector. With restrictions on physical interactions and movement, traditional approaches to property transactions and management had faced limitations. In response, proptech emerged as a game-changer, enabling remote property viewings, virtual tours and contactless transactions.

Recognising the potential of technology, numerous market players have shi ted their focus towards investing in technology-driven solutions. These solutions leverage technologies such as artificial intelligence (AI), big data and cloudbased applications to streamline operations, improve customer engagement and enhance overall experiences.

In the Middle East, one of the driving factors behind the growth of proptech is the region’s rapidly expanding urban landscapes. Cities such as Dubai, Riyadh and Doha are witnessing an influx of residents and businesses, creating a demand for smart and e cient real estate solutions. Proptech platforms are revolutionising various aspects of the industry, including property listings, sales and leasing, property management and facility maintenance.

Moreover, governments in the Middle East are actively promoting proptech as part of their smart city initiatives. They are investing in digital infrastructure, supporting startups and innovation

KEY DEVELOPMENTS THAT HAVE SHAPED THE PROPTECH INDUSTRY IN THE MIDDLE EAST

BLOCKCHAIN TECHNOLOGY ENABLES DIGITAL PROPERTY OWNERSHIP VERIFICATION, SMART CONTRACTS AND FRACTIONAL PROPERTY INVESTMENTS

hubs, and introducing regulatory frameworks to foster proptech growth. This supportive environment has attracted both local and international proptech players, leading to a vibrant ecosystem in the region.

TECH-DRIVEN REAL ESTATE

Some of the key developments that have shaped the proptech industry are driven by several trends and innovations. Miša Lazović, founder and CEO at Kredium, a property and mortgage broker says that the “proptech industry in the Middle East, including the UAE, has seen tremendous growth in recent years, thanks to the increasing adoption of technology in the real estate sector”.

He believes that one of the key trends driving this growth is the use of digital tools that enable real estate professionals, such as brokers and property managers, to streamline their day-to-day work, such as customer relationship management so tware or white-label broker platforms.

“In addition, there has been an increased use of online marketplaces that provide a platform for buying, selling and renting properties. Another trend that has emerged in the region is the use of fintech solutions, such as online mortgage and real estate brokerage platforms, to facilitate real estate transactions. These platforms provide a convenient and transparent way for real estate buyers to access mortgage products and other financial services,” he says.

Truly, the proptech industry is evolving at an exponential pace with multiple technologies coming together to change the way companies manage real estate. For instance, real estate marketplaces and property listing websites have gained popularity, providing users with convenient access to a wide range of properties for sale or rent. These platforms have streamlined property search and transactions, enabling buyers and tenants to find suitable properties more e ciently.

Meanwhile, virtual and augmented reality solutions have emerged as powerful tools that enable immersive virtual property tours, allowing potential buyers or tenants to explore properties remotely.

The Middle East has also witnessed a surge in smart building initiatives, incorporating internet of things devices, sensors and automation systems. These technologies enhance energy e ciency, optimise resource management and improve occupant comfort. Features such as smart lighting, heating, ventilation, and air conditioning control and integrated security systems are becoming increasingly common in new real estate developments.

Furthermore, the region’s proptech industry is embracing sustainability and environmental consciousness. Innovations such as green building certifications, solar energy integration, water conservation technologies and waste management solutions are gaining prominence. Developers and investors are recognising the importance of sustainable practices to meet growing environmental concerns.

Blockchain technology is also being leveraged to enhance transparency, security and e ciency in real estate transactions. It enables digital property ownership verification, smart

In addition, there has been an increased use of online marketplaces that provide a platform for buying, selling and renting properties. Another trend that has emerged in the region is the use of fintech solutions, such as online mortgage and real estate brokerage platforms, to facilitate real estate transactions”

MIŠA LAZOVIC, founder and CEO, Kredium

contracts, and fractional property investments. These advancements are reducing friction in property transactions and attracting new investment opportunities.

OVERCOMING THE OBSTACLES

Proptech companies, despite their potential for disruption and innovation, face several hurdles in the industry. Firstly, resistance to change – the real estate industry has traditionally been slow to adopt new technologies and processes. Proptech companies o ten face resistance from traditional players who may be reluctant to embrace digital transformation. Convincing stakeholders of the benefits and overcoming the inertia associated with legacy systems and practices can be a significant challenge.

The real estate market is also highly fragmented, with various stakeholders, including developers, agents, property managers and tenants. Proptech companies must navigate this complex landscape, build partnerships and establish trust among multiple parties to drive adoption of their solutions. The lack of standardisation and interoperability further complicates integration e orts.

Meanwhile, regulations related to property transactions, data privacy and consumer protection can pose challenges, requiring proptech companies to ensure compliance while delivering innovative solutions.

Moreover, proptech relies on accurate and reliable data for e ective decision-making and analytics. However, accessing comprehensive and up-to-date data can be challenging, especially in regions with limited data availability or lack of data standardisation. Proptech companies o ten need to invest in data acquisition, cleaning, and verification processes to overcome these obstacles.

As proptech companies handle vast amounts of sensitive data, they must also address cybersecurity risks and protect user privacy. Safeguarding data from breaches and ensuring compliance with data protection regulations are critical challenges that require robust security measures and strong data governance practices.

While companies face these challenges, they also present opportunities for innovation and disruption in the real estate industry. Overcoming these hurdles requires strategic planning, collaboration, adaptability and a deep understanding of the specifi c market dynamics and regulatory environments.

“Proptech’s growth has transformed the real estate industry by o ering innovative solutions and digital advancements. However, when it comes to proptech there are several challenges that industry players are trying to navigate and as the industry continues to evolve, it is crucial to address these,” explains Scott Bond, UAE country manager at Property Finder.

Proptech’s growth has transformed the real estate industry by offering innovative solutions and digital advancements”

SCOTT BOND, UAE country manager, Property Finder

“Through proptech platforms like Property Finder we are revolutionising the home search journey for home-seekers by providing easy access to information and tools that facilitate their decision-making process. Our ongoing e orts are geared towards enhancing our platform’s features and quality, for a seamless end-to-end experience that simplifies the entire home buying or renting journey,” he adds.

Meanwhile, startups such as Kredium are working closely with legal experts to ensure its platform adheres to all applicable laws and regulations. It also provides an all-in-one platform that integrates multiple services and channels, encouraging the adoption of more modern communication and collaboration methods.

In houza’s case, the firm recently pursued a public-private partnership with Dubai’s Real Estate Regulatory Agency to tackle the perennial issue of fake listings by adopting their Trakheesi application programming interface so tware to filter out unverified listings on its website at scale.

CONVERGING FOR SUCCESS

Traditional real estate players are increasingly recognising the significance of proptech and the need to adapt to the changing landscape. While some initially viewed proptech as a threat to their established practices, many are now actively responding and exploring opportunities for collaboration. Traditional real estate companies are forming strategic partnerships and investing in proptech startups. This allows them to leverage the technology and innovation o ered by proptech companies while benefiting from their expertise.

REAL ESTATE DEVELOPERS AND PROPERTY OWNERS ARE ALSO CREATING CO-WORKING SPACES AND INNOVATION HUBS THAT FOSTER COLLABORATION AND SERVE AS A PLATFORM FOR STARTUPS

“Traditional real estate players can provide valuable insights and expertise that can help proptech companies develop and refine their products and services to better serve the industry. For example, feedback from real estate agents and brokers can help improve the functionality of our platform and make it more user-friendly,” notes Lazović.

“We believe that collaboration between traditional real estate players and proptech companies can create a win-win situation, where the industry can benefit from the latest technology while also leveraging the expertise and experience of established players. As such, we actively seek out partnerships and collaborations with established real estate players to drive growth and innovation in the industry.”

Real estate developers and property owners are also creating co-working spaces and innovation hubs that foster collaboration and serve as a platform for startups. These spaces provide them with the necessary infrastructure and resources while enabling traditional players to stay connected to emerging trends, identify potential partnerships, and drive innovation within their organisations.

“Aldar in Abu Dhabi is a great case study of how a real estate developer and manager has become a champion of proptech, from both an implementation and investment perspective,” says Jean-Pierre Mondalek, CEO of houza.com.

“Their property management subsidiary, Provis, is building and implementing technology to unlock operational e ciencies in the leasing and management of thousands of properties in their real estate portfolio. Aldar Scale Up is an accelerator programme for proptech startups to build a smarter, greener and safer real estate industry by giving them access to commercial deals and incentives,” comments Pierre.

Overall, the rise of proptech has prompted traditional real estate players to adapt and explore collaborative opportunities. By embracing proptech solutions, they can enhance their competitiveness, drive innovation, and better meet the evolving needs of customers in a rapidly changing market. Collaboration between the two sectors brings together industry knowledge, resources, and technological expertise, creating a fertile ground for transformative advancements in the real estate industry.

Aldar Scale Up is an accelerator programme for proptech startups to build a smarter, greener, and safer real estate industry by giving them access to commercial deals and incentives”

JEAN-PIERRE MONDALEK, CEO of houza.com

ON A POSITIVE NOTE

REAL ESTATE SERVICES COMPANY ASTECO’S CEO, HP AENGAAR SHARES

THE HIGHLIGHTS OF ABU DHABI AND DUBAI’S PROPERTY MARKET IN THE FIRST QUARTER OF THE YEAR AND THE OUTLOOK FOR DEMAND AND SUPPLY IN THE UPCOMING MONTHS

BY NEESHA SALIAN

What are the key highlights dominating the real estate sector in Abu Dhabi and Dubai; what’s the outlook for H2 2023?

During Q1 2023, the rental rate growth for apartments, villas and offices in Abu Dhabi, Al Ain, and Sharjah showed a more moderate trend in annual growth, while the rental rates in Dubai continued to rise significantly. As such, villa rental rates in Dubai have surpassed the previous market peak from Q2 2014 by an impressive 3 per cent. When it comes to sales prices, Dubai experienced double-digit growth, while Abu Dhabi saw minimal changes. Interestingly, o -plan sales in both Dubai and Abu Dhabi commanded substantial premiums over completed properties. Although it may be challenging to reconcile this premium, given the immediate rental returns or occupation o ered by completed properties, it highlights the strong demand for o -plan purchases.

Furthermore, it’s important to note that sales prices in Abu Dhabi still o er a considerable competitive pricing to similar properties in Dubai. This means that Abu Dhabi represents exceptional value for buyers in the market. Overall, these market dynamics showcase the positive trends and opportunities available in the real estate sector.

What are some of the key real estate projects that will be delivered in H2 2023 and how will that impact supply in Abu Dhabi and Dubai?

Abu Dhabi’s development pipeline shows no signs of slowing down throughout the rest of 2023. Despite the fact that several new projects are currently in the planning and design stage and anticipated to launch over the year, the market still lacks a su cient number of high-quality villa communities.

In Dubai, we expect another 35,000 apartments and 6,800 villas to be handed over in 2023. New stock will be added across all areas of the emirate, with deliveries in established communities, such as Downtown Dubai, Business Bay and Jumeirah Village”

Approximately 4,450 residential units are due for completion before the end of 2023. Major projects include Noya Villas in Yas Island, a number of buildings in Al Raha Beach and Luluat Al Raha, two developments in Masdar City, a number of villas in Jubail Island in addition to several buildings in Qaryat Al Hidd in Saadiyat Island.

In Dubai, we expect another 35,000 apartments and 6,800 villas to be handed over in 2023. New stock will be added across all areas of the emirate, with deliveries in established communities, such as Downtown Dubai, Business Bay and Jumeirah Village, as well as in upcoming developments including Mohammed Bin Rashid City, Dubai South and Dubai Creek Harbour.

MBR City will see the bulk of handovers with more than 10,000 residential units.

Do you see rental rates and sales prices rising in H2 as well?

In Abu Dhabi, residential rental rates (apartments and villas) are expected to remain mostly stable with marginal increases for specific developments. Sales prices are expected to remain generally stable in 2023, however, the lack of ‘good quality’ completed projects/units available for sale in the secondary market will help boost sales prices in specific developments/locations.

Demand for top quality, well-located and competitively priced off-plan projects will remain positive.

In Dubai, we expect rental growth to continue, albeit at a slower pace, until new supply balances out and rental growth slows. It is also worth noting that the Dubai government plans to launch a new rental index in 2023 that will be based on building star ratings, reflecting quality and facilities, rather than location and/or community trends.

Initially, the index will only encompass residential buildings, villas will be considered at a later stage.

Under the new index, four-star buildings (classed as ultraluxury) will be categorised as “free”. This means there will be no restrictions in terms of rental increases.

The lower rated buildings will be allowed to increase rents as per RERA policy only a ter approval. Sales prices are also expected to follow a similar trend.

Overall, villa communities (old and new), in particular, will continue to perform well.

Give us your outlook for the primary and secondary market. Which is likely to do better?

The markets of Dubai and Abu Dhabi have witnessed a notable trend in off-plan sales, with properties fetching significant premiums compared to completed properties. Though it is expected that this trend will persist, it is most likely to be short-lived.

It is important to note that sales prices in Abu Dhabi continue to remain at a steep discount comparable properties in Dubai and represent exceptionally good value. O -plan prime and high-quality projects located on Saadiyat and Yas Island have achieved rates ranging

OFF-PLAN PRIME AND HIGHQUALITY PROJECTS LOCATED ON SAADIYAT AND YAS ISLAND HAVE ACHIEVED RATES RANGING FROM DHS1,500 UP TO DHS3,800 PER SQUARE FOOT/ SELLABLE AREA

from Dhs1,500 up to Dhs3,800 per square foot/ sellable area.

What trends can we expect to see in the commercial real estate market in Abu Dhabi and Dubai?

Over the last six to 12 months, we have seen a definite uptick in the o ce segment’s performance in Abu Dhabi and Dubai, a trend that is expected to continue in the short- to medium-term.

Quality or quantity is the key here. Well managed, single-owned buildings with Grade A specifications in strategic locations will perform better and are likely to see increased occupancy and performance.

Strong inward investment on the back of advanced business reforms and government initiatives resulted in improved business confidence and newcomers to the market, which stimulated demand for o ce space, particularly for Grade A/B+ specification in prime locations.

Technological advances, remote working, co-working, and virtual o ces have made the need for physical o ce space an option, not a necessity. This will a ect o ce performance, particularly with regard to older stock.

What should potential property investors be considering in such a market?

Doing due diligence is crucial here, as both o -plan and ready-to-move-in properties have advantages and drawbacks. Before making a final decision, consider the time frame for having the property, the availability of funds, your preferred location, the profitability and the developer’s reputation and quality of other completed projects.

Choose the option that best meets your current needs, but most importantly, make certain that the property you intend to buy was or will be built by a strong property developer.

It is important to note that sales prices in Abu Dhabi continue to remain at a steep discount comparable properties in Dubai and represent exceptionally good value”

Golf Digest Middle East’s Play & Stay is coming to Abu Dhabi Yas Island

FRIDAY, JUNE 9

Overnight stay for two at Crowne Plaza

Abu Dhabi - Yas Island

One spot in nine-hole tournament (individual stableford format) at Yas Acres Golf & Country Club with 5pm shotgun

Welcome drink

Evening brunch for two with house beverages at Stills

Terms & conditions apply

SATURDAY, JUNE 10

Breakfast for two at Jing Asia - Crowne Plaza

Abu Dhabi - Yas Island

One spot in -18hole tournament (individual stableford format) at Yas Links Abu Dhabi with 1pm shotgun

Welcome drink and prize presentation

Late-check-out and facilities use at Crowne Plaza

Abu Dhabi - Yas Island for non-playing guests

For full itinerary and to book: GolfDigestME.com/PlayAndStay

REIT TIME TO INVEST?

REAL ESTATE INVESTORS LOOKING TO LEVERAGE THE BOOM IN THE UAE MARKET WITHOUT COMMITTING TO A LARGE OUTLAY CAN USE REITS TO EARN HIGH YIELDS

The UAE’s lucrative property market is raising eyebrows worldwide. The rental yields of 5.5 per cent are very attractive compared to the 2-5 per cent you get in New York, London or Singapore. What’s even more astounding is that the real estate market is set to get ‘hotter’ day by day. As per market reports, rental prices for apartments in the more a ordable neighbourhoods of Dubai have increased up to 24 per cent in Q1 2023. Reasonably priced villas in well-known areas are fetching up to a 59 per cent increase, while the more distinguished luxury villa rentals have spiked by as much as 89 per cent.

Even in Abu Dhabi, the value of sales transactions tripled in the first three months of 2023, reaching Dhs11.6bn ($3.2bn), up from Dhs3.63bn last year.

The government’s outstanding handling of the Covid-19 pandemic and its progressive visa policies have done a phenomenal job of attracting more foreign buyers. The influx of Russian investors, high net-worth cash buyers, crypto millionaires, yield-hunting investors, and the China reopening – have all supported the demand and continue to buoy property prices.

This has led to the UAE residential real estate market anticipated to register a compound annual growth rate (CAGR) of more than 8 per cent during the forecasted period, 2022-2027.

Investors who want to leverage the boom in the market without committing to a large outlay can utilise real estate investment trusts (REITs) to earn high yields. They are derived from the stable contracted rental payments by the tenants residing on their holding properties.

Since REITs are required to distribute 80 per cent of the income to their shareholders annually, dividends can be substantial. The relatively low correlation of listed REIT returns with the returns of equities and fixed-income investments makes it a good portfolio addition to reap diversification benefits.

HOW DO INVESTMENTS IN REITS WORK?

These investment funds raise cash from private and institutional investors to invest in real estate projects in exchange for units of the fund.

The process enables investors to profit from diversified real estate holdings and reduces the risks faced by any one individual during purchasing, maintaining, or financing a property.

Publicly listed REITs are professionally managed liquid property portfolios that provide dividendbased passive income and add value through price appreciation. The ownership proportions in REITs are calculated as per the number of owned units compared to the total number of units in the REITs.

In comparison to fractional property ownership, where multiple investors have direct claim to the specified property, REITs di er as they give diversified exposure to a pool of holdings via ownership of shares of the fund.

UNDERSTANDING REGULATIONS GOVERNING REITS

According to UAE regulations, REITs need to be closed-ended funds, which means a ter the initial public o ering (IPO), shares are not traded directly with the sponsoring fund. Instead, they can be traded on the exchange, with market participants acting as the corresponding buyer and sellers in the case of public funds.

REIT fund managers must also distribute at least 80 per cent of their audited annual net income to the unitholders as dividends each year under Securities and Commodities Authority (SCA) and Dubai Financial Services Authority (DFSA) regulations.

As per the SCA, the onshore or mainland funds are required to invest at least 75 per cent of their total assets in real estate and generate at least 90 per cent of their total revenue from real estate,

According to UAE regulations, REITs need to be closed-ended funds, which means after the initial public offering (IPO), shares are not traded directly with the sponsoring fund. Instead, they can be traded on the exchange, with market participants acting as the corresponding buyer and sellers in the case of public funds”

VIJAY VALECHA, chief investment officer at Century Financial

interest, dividends, and capital earnings relating to such real estate.

They cannot borrow more than 50 per cent of their total asset value. Meanwhile, REITs listed in DIFC are considered o shore by SCA, thus, governed by DFSA, they are required to invest only in real property or related assets.

They cannot borrow beyond 80 per cent of their net asset value and invest more than 30 per cent of their total assets in properties under development. These requirements help safeguard the interest of the unitholders and achieve the income generation objective of the funds.

WHICH REITS TO TARGET?

The UAE is targetting a 7 per cent GDP growth rate year-on-year (YoY) to double the size of the economy by 2031. The population of Dubai is also on a trajectory to double within the next 20 years.

These factors support both the current and long-term growth of the real estate industry as the markets will witness higher occupancy rates in real estate assets across Dubai and the UAE, making REITs a very exciting proposition. Below are two REITs investors should keep an eye out for to capitalise on the booming real estate market:

EMIRATES REIT

Emirates REIT is the UAE’s first and largest listed Sharia-compliant REIT by assets under management. Its portfolio comprises 10 freehold buildings in Dubai split between commercial, retail and education assets with an estimated market value of $785m, an aggregate lettable area of roughly 202,950 sqm, and weighted average lease expiry of 7.1 years.

Its holdings of premium commercial and education real estate assets have a robust demand, increasing occupancy rates across the portfolio

to 84.5 per cent and benefiting unit holders with an 11 per cent YoY rise in rental, fee and other income by the end of 2022.

As a result, net profit in 2022 increased to $82m, up 30 per cent year-on-year, reflecting the quality of the assets. This is the outcome of the REIT benefitting from Dubai’s largely stable retail sector with strong demand from the outperforming sectors like F&B and entertainment and time lag in construction completion supporting rental rates.

Emirates REIT’s exposure to the education sector is also advantageous, owing to solid demographic trends, with the population forecasted to reach 5.8 million by 2040, creating more school demand over the next decade.

ENBD REIT

ENBD REIT is a closed-ended DIFC investment company formed by Emirates NBD Asset Management to invest in a diversified Shariacompliant real estate portfolio. Under its portfolio valued at $365m as of 2022-year end, there are 11 properties – o ces (68 per cent), residential (15 per cent) and other properties (17 per cent) located across Dubai.

The REIT aims to regularly distribute a dividend to achieve a total return of approximately 5 per cent per annum. It actively manages the

Emirates REIT is the UAE’s first and largest listed Sharia-compliant REIT by assets under management. Its portfolio comprises 10 freehold buildings in Dubai split between commercial, retail and education assets with an estimated market value of $785m”

THE REIT HAS AN OCCUPANCY RATE OF 85 PER CENT AND HAS EARNED DHS7.5M IN RENTAL INCOME AS OF DECEMBER 2022

existing portfolio, focusing on freehold or long-term leasehold titles to lengthen tenant lease terms.

The REIT has an occupancy rate of 85 per cent and has earned Dhs7.5m in rental income as of December 2022. It is a diversified fund that benefits from the thriving Dubai real estate market via investment in a high-quality strategic location that reduces the impact of local real estate market fluctuations.

EMERGING REIT THEMES IN THE UAE

The UAE has a unique kind of REIT known as the

MASDAR GREEN REIT’S LATEST ACQUISITIONS

INCLUDE TWO FULLY OCCUPIED BUILDINGS WITHIN MASDAR CITY WITH A PLATINUM RATING IN LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN

Masdar Green REIT, the first of its type in the GCC. This is a limited fund, i.e. not traded on the exchange and is dedicated to investing in sustainable income-generating real estate.

Investors increasingly seek socially responsible opportunities, and Masdar Green REIT meets the criteria based on specific environmental, social and governance practices.

The fund’s latest acquisitions include two fully occupied buildings within Masdar City with a platinum rating in Leadership in Energy and Environmental Design. The REIT exposes investors to a diversified portfolio with an occupancy rate of 98 per cent and an average unexpired lease term of more than six years.

To conclude, the UAE’s macroeconomic and demographic trends bode well for the prospering real estate market. REITs can play a significant role for investors to tap into these opportunities and optimise their portfolio allocation to meet their long-term object.

Pics courtesy: Masdar City

SYNONYMOUS WITH LUXURY

WITH GROWING DEMAND AND UPCOMING SUPPLY, THE YEAR LOOKS PROMISING FOR DUBAI’S LUXURY PROPERTY MARKET

The terms ‘Dubai real estate’ and ‘luxury’ have become somewhat interchangeable this year – rarely do you hear this market mentioned without the context of ‘luxury’, and yet most market participants are le t wondering whether this segment is threatened by – or immune to – global headwinds.

We have examined the fundamentals leading to this rapid ascent into luxury, the factors driving it, and the response on the ground from developers and decision makers.

Demand drivers since the onset of Covid-19

• PANDEMIC TOURISM: Dubai beat everyone to the punch as it opened it borders to tourists from around the globe while the rest of the world shut down and closed its borders. Many wealthy individuals discovered Dubai for the very first time, and in doing so, made it home for their families.

• INFLATION: The US Fed slashed interest rates in order to spur consumer demand and spending, leading to asset price inflation across nearly all asset classes globally, with luxury property claiming the top share.

• HIGHER OIL PRICES: Steady increases in oil prices helped companies around the UAE thrive, spurring trickle-down e ects into the broader UAE economy.

• REGULATORY AND SYSTEMIC REFORMS: These reforms helped ultra-high net-worth-individuals migrate from Europe, the UK, and other

countries to Dubai seeking to take advantage of the Emirates’ superior tax regime.

• RUSSIA/UKRAINE CRISIS: Wealthy Russians migrating to Dubai sought new homes as insurance against possible deterioration in both the Russian rouble and the broader Russia narrative. Globally, rising interest rates at record pace is cause for concern at all levels. However, the Fed has signalled it will potentially end hikes at least through the remainder of the year. In addition, worries about runs at regional banks in the US, and the recent turmoil surrounding Credit Suisse and other European banks appear to have subsided as governments enact measures to restore confidence in investors.

AMONG THE TOP GLOBAL CITIES

This provides a sigh of relief to the Dubai market as it claimed the top spot among global cities in the performance of its luxury space, rising a staggering 44 per cent year-on-year. This occurred while luxury home prices around the world

“IN THE FIRST QUARTER OF 2023 ALONE, 88 HOMES WERE SOLD AT OR ABOVE $10M, WITH 64 PER CENT OF THESE SALES HAPPENING IN THREE LOCATIONS: JUMEIRAH BAY ISLAND, EMIRATES HILLS, AND PALM JUMEIRAH”

Pic: Getty Images

ABDULLAH ALAJAJI, CEO and founder of Driven Properties

(looking at 46 major cities globally) declined in Q1 2023 for the first time since 2009. The Dubai market continues to be a melting pot for the global wealthy, with the property market primed to be a key recipient as more luxury projects are brought to life in the coming months and years.

Further, if global interest rates increases come to an end and geopolitical tensions continue, there is little doubt that Dubai has tremendous upside to o er global investors over the next 6 to 12 months.

No one is more excited and prepared for this continued ascent than developers. Earlier this year, real estate tycoon Nick Candy announced a partnership with Dubai World Trade Centre to develop a super prime development by the Museum of the Future, and plans to set new price records in the city as his firm, Candy Capital, marks its debut into the market. Other notable developers see opportunity as well. For example, Lamar Development is planning to launch its iconic Park Lamar development near Safa Park, catering exclusively to the ultra-luxury space. Finally, luxury private developers such as Brookfield Properties and H&H are also planning masterpieces around the city, with all these developments launching in the second half of the year.

MONITORING LIQUIDITY

As existing demand drivers continue and new benchmarks surface, the fact remains the ‘tried and true’ test will be if interest rate hikes pause, it is likely that the bull run in prices for the luxury market shall extend throughout the year if further increases slow down or cease. Another facet to monitor is liquidity – it has shown no signs of dissipating and new capital flows coming from new destinations, these factors will further fuel the growth in this segment and improve its defensibility as an asset class. Dubai is great at breaking records, and 2023 is already full of shattered records, both in terms of volumes and values in this segment.

In the first quarter of 2023 alone, 88 homes were sold at or above $10m, with 64 per cent of these sales happening in three locations: Jumeirah Bay Island, Emirates Hills, and Palm Jumeirah.So what four words best describe the remainder of 2023? Records set, records broken.

COMMUNITIES ENABLING PET-FRIENDLY

The UAE is regarded as a petfriendly nation with an estimated one million pets. This has resulted in an increase in pet-friendly communities around the country, and while we are keen to accommodate a comfortable environment for our furry friends, we are faced with unique challenges as community managers.

To ensure peace and harmony among petfriendly community members, pet etiquette, rules, and regulations are reasonably cra ted in accordance with the owner association declaration, local and municipal statutes, and federal requirements pertaining to domesticated and exotic pet ownership. Enacting these rules, encouraging compliance, and enforcing them are o ten the primary challenges that community managers face. So, how do we cra t a community structure that ensures the smooth running of a petfriendly environment?

RIMA NASSAIR, director of Owners Association at Provis

THE UAE HAS SEEN A RISE IN PET-OWNERSHIP AFTER THE PANDEMIC. HERE’S HOW COMMUNITY MANAGERS CAN HELP CREATE A SUSTAINABLE, PET-FRIENDLY ENVIRONMENT

Pic: Supplied

TACKLE CHALLENGES

Uncollected animal waste: We all do love our furry friends, but let’s admit it, uncollected animal waste causes a multitude of concerns such as destroying the grass, hygiene issues as well as being an environmental pollutant. Thankfully, most pet owners are responsible and rarely do we receive a complaint that has to be dealt with.

Un-leashed pets: Pets that roam around freely in common areas could cause fear and anxiety among some residents. Although we are certain that these pets are friendly, we always remind owners of the importance of leashing their pets. Dirtying common area locations: Pets urinating on trees, building corners and metal poles could stain the walls and leave behind strong, unpleasant odours that are difficult to remove due to the chemical composition of animal urine. These habits cause damage to trees and other community assets.

Keeping pets on balconies and terraces: Keeping pets on balconies and terraces unattended poses a safety risk to the animal themselves and so is keeping food and water dishes, as well as bedding and litter boxes.

Absence of pet screening/animal registration: Pets that are unregistered/unscreened with community management could be wrongfully confiscated and mistaken for strays. Feeding stray cats: Many well-meaning residents enjoy feeding stray animals, which can occasionally cause foul odours, block entrances, pathways, and amenities, and even detract from the appearance of an otherwise well-kept space.

POSSIBLE SOLUTIONS

Leashing or utilising pet carriers: Pet owners should be advised to always use a leash or a pet carrier when transporting/walking their pets. Stray cat feeding stations: Some communities found a great solution – stray cat feeding stations. These feeding stations can be installed in the community to ensure strays are treated humanely while keeping them away from the community boundaries. Community managers can also collaborate with municipal authorities to implement trap, neuter, and release (TNR) programmes to control the stray cat population. Pet registration: No one wants to lose their loved pets because of a simple registration issue. That’s why residents are asked to register their pets with the designated community management team before bringing them into their home; the type and breed of the pet must be included

in the registration. We also recommend getting pets micro-chipped as it is required by law. Community management may also ask for proof of rabies vaccination and any other vaccinations required by UAE law.

Keep them close: Owners should place a doghouse, shed, screen, fence or other structure inside the unit in the best interest of their loved pet.

Creating a pet play area: A pet-friendly area is a wonderful way to attract pet loving residents as it removes the concern that pets will disturb the community landscaping, keep the common areas clean, and avoid any health hazards such as allergies for tenants. It is also a fantastic way for residents to socialise and encourage community engagement.

Host pet friendly events: Hosting a pet friendly event to promote resident mingling is one of the best ways to avoid conflicts between pet owners and those who don’t own animals. These types of events allow you to use your community’s petfriendliness to bring together residents and foster a more inclusive and social environment for all.

Resource list to help pet owners: Being a pet friendly community means accepting that accidents will happen, such as dogs chewing the carpets or shedding, among others. When signing a lease with a tenant, it is best to provide them with a list of local veterinarians, dog and cat grooming services, and local pet trainers to help them in resolving pet issues.

Install pet waste stations: While out for a walk with their pet, tenants may forget to bring waste bags. That’s why pet waste stations are a great way to reduce pet waste while also supporting tenants in meeting the community standards. Installing such stations encourages pet owners to clean up after their pets and properly dispose of waste and communicating to non-pet owners about the management of pet waste.

Awareness campaigns: Reach out to residents to show the impact of increased cleaning schedules in the community, set up and inform of dedicated pet walking areas to highlight the importance of pet training, introduce technology available to comfort pets while owners are away, are steps to create a more inclusive community environment.

Raising a pet brings a lot of joy and fun to members of the community. However, it is important to understand the needs of your pet, and the associated responsibilities that come with pet ownership not only to make your furry friends happy, but also to help keep your community safe and clean.

HOSTING A PET FRIENDLY EVENT TO PROMOTE RESIDENT MINGLING IS ONE OF THE BEST WAYS TO AVOID CONFLICTS BETWEEN PET OWNERS AND THOSE WHO DON’T OWN ANIMALS

Lifestyle 23

A true trailblazer

Featuring a highly agile mid-engine concept with 4.0-litre displacement and a six-cylinder naturally aspirated engine, the 718 Cayman GT4 RS is a sleek beast p.64

Breitling Navitimer B01 Chronograph 46

The new Navitimer features a flattened slide rule and a domed crystal. It has a slimmer silhouette on the oscillating weight enhancing the open-caseback view of the COSCcertified Breitling Manufacture Caliber 01. The watch comes in a range of sizes, two case materials (stainless steel or 18-karat red gold), and a choice of straps (semi-shiny alligator or seven-row metal bracelet)

“ It is important to realise the environmental harm caused by frequently purchasing items for your wardrobe. Rather, it is much more e ective to invest in quality, timeless pieces that are versatile and last longer”

Yara Yassin, co-founder of Cairo-based slow fashion brand, Up-fuse

What makes MB&F’s Maximilian Büsser tick?

MAXIMILIAN BÜSSER, FOUNDER OF THE SWISS LUXURY WATCH MANUFACTURER HAS TURNED TRADITIONAL WATCHMAKING ON ITS HEAD, CREATING FUTURISTIC, FIERCELY UNCONVENTIONAL TIMEKEEPING MACHINES THAT EMBODY THE HIGHEST CRAFTSMANSHIP

BY NEESHA SALIAN

How would you define the unique brand identity of MB&F? Share the inspiration behind the“radical” timepieces that MB&F is known for.

For me, MB&F, which stands for Maximilian Büsser and Friends, is best described as a life decision, not a business. I took a decision 18 years ago to create only what I believed in and not look at what the market wants.

Our brand identity is rooted in creating unconventional and radical timepieces that are more than just functional objects; they are also works of art. The company approaches watchmaking by prioritising creativity and innovation over conforming to traditional watch design conventions.

The brand is known for its ‘Horological Machines’, which are three-dimensional kinetic sculptures that give time, as well as co-creations such as clocks, music boxes and pens. The Horological Machines and

co-creations are my part of ‘psychotherapy’. I wittingly or unwittingly revisit my childhood and life to create spaceships, planes, cars, animals and other unusual concepts (some of which are still to be revealed). The Legacy Machines are my tribute to the watchmaking geniuses of the 18th and 19th century who created most of what the industry continues to cra t.

Each horological adventure by the brand is a close collaboration with a team of highly talented professionals – “Friends” – with the specific skills needed for each project. Their skills include product design, case and movement manufacture, finishing, logistics, photography and communication, to name but a few.

Overall, MB&F’s approach to watchmaking is driven by a passion for art and design, a willingness to take risks, and a commitment to pushing the boundaries of what is possible in the industry.

What are some of the significant milestones in MB&F’s history, and what distinguishes your timepieces from others in the market?

The last 18 years have been nothing less than insane. Creating 20 incredibly complex calibres/watch concepts and 14 clocks in such a short time has been a unique experience.

But what really di erentiates us is the constant creative risk taking that is evident in our creations as it is in our concepts.

Speaking of milestones, the company was born in 2005 and we introduced four very radical Horological Machines during the year. In 2011, we dared to present a reinterpretation of classic watchmaking, the Legacy Machine. The same year, we open our M.A.D. Gallery in Geneva, the first art gallery in the world dedicated to mechanical and kinetic art.

There have been many innovations and accomplishments that have followed since, but one that stands out is the launch of FlyingT, our first kinetic art piece originally dedicated to women, in 2019. And then in 2021, we launched the M.A.D. 1 timepiece, which retails for fi ty times less than our traditional handcra ted MB&F pieces.

How did your past work experiences at Harry Winston and Jaeger-LeCoultre shape your vision for MB&F?

At Jaeger-LeCoultre, I perfected my love

“The Horological Machines and co-creations are my part of ‘psychotherapy’. I wittingly or unwittingly revisit my childhood and life to create spaceships, planes, cars, animals and other unusual concepts”

IN 18 YEARS, MB&F HAS CREATED 20 INCREDIBLY COMPLEX CALIBERS/ WATCH CONCEPTS AND 14 CLOCKS

MB&F LM FlyingT (lacquer)

MB&F Legacy Machine FlyingT (tiger eye)

of mechanical watchmaking and learned that great teams do not need superstars to achieve great results. Mindset is more important than skills (which can be taught). At Harry Winston, I discovered that I was able to function under extreme stress and my seven years at the helm of the company allowed me to understand that power, money and recognition did not make me happy. With the Opus projects, I discovered for the first time the lives and work of independent watchmakers and realised that it was my calling too.

Give us some insights into the inspirations behind your top three timepieces this year.

The year 2023 is bringing us back to our roots: Horological Machines. We will continue to deconstruct traditional high-end watchmaking to reconstruct timepieces as mechanical works of art (… and which don’t resemble watches). June will see the fourth iteration of my love for automotive design, and in November, we’ll present another “surprise”.

The M.A.D1 Red Piece was created as an affordable timepiece. What sets it apart from other MB&F timepieces? I am so proud of what we have accomplished at MB&F but none of my friends and family could afford them. There is a moment when you realise as a creator that whatever success you have achieved does not mean much if those you love cannot access it. M.A.D. 1 was designed in 2014 and it took me seven years to garner the courage to launch it. It is a side project of MB&F and is meant as a “thank you” to my friends, to those who helped us build MB&F and to the fans who find our Horological or Legacy Machines very expensive.

our roots: Horological Machines. We will continue to deconstruct traditional high-end watchmaking to reconstruct timepieces as mechanical works of art”

The MB&F Mad 1 Edition 1

MB&F LM Perpetual Stainless Steel timepiece

The Horological Machine Hm3 Starcruiser Red Gold timepiece

Pics:

Power, performance, Porsche

BY SHIVAUM PUNJABI

There’s no supercar quite like the Porsche 911 – and for many, that’s part of its evergreen appeal. But with the GT4 RS, the German automaker wanted to ensure that the Cayman no longer plays second fiddle to the 911.

The GT4 RS is the sweet spot in the 718 Cayman lineup. It is raw, loud, brutal and has never heard of a ‘sport mode’ before. It only has two modes – you turn the key and it’s on. You turn the key back and it’s off. This is a street-legal race car.

An open-top equivalent to the Cayman GT4 RS, the Spyder RS features the same engine as its coupe cousin but misses out on its aggressive aerodynamics to cement itself as the most powerful Boxster model ever.

Porsche is churning out these high-powered, high-performance models, as the brand has previously announced its decision to electrify the entire 718 range from the forthcoming generations.

So, before the time comes when you need to plug your Porsche Cayman sports car into an electric socket, is the GT4 RS Porsche’s way of giving the petrol-powered beast a final tribute before it’s retired? If so, this could be a fitting homage to the relatively short-lived legacy of the ICEpowered Cayman and Boxster models that first saw the light of day in 1996.

THE NUMBERS

The Porsche 718 Cayman GT4 RS is more than a development of the GT4. Both have 4.0-litre engines, but the RS gets the unit from the latest 911 GT3, stratospheric 9000rpm redline.

The 4.0-litre six-cylinder naturally aspirated engine, which produces 493hp, could be the last naturally aspirated engine ever to leave the Porsche factory, and the automaker made sure it was memorable.

For drivers who love 0-100kph times, this car will not disappoint and will deliver 100kph to you in 3.4 seconds.

The Cayman GT4 RS’ engine is unheard of in today’s day and age of turbos, hybrids

and electrification. This rarity adds to the sports car’s extra unique appeal in a loud, free-revving manner, making you burst with excitement every time you put your foot down.

The engine is directly lifted from the 911 GT3 and flipped 180 degrees to fit into the GT4 RS’ engine bay.

RIDE QUALITY

The Porsche Cayman 718 GT4 RS is one of the best-handling road cars ever. There are copious amounts of grip from this car.

The steering is precise and is weighted perfectly. Turn-in during aggressive driving is precise and accurate. Very rarely do you find a car that does not oversteer or understeer and is perfectly balanced. This is that car!

Twisty roads or the racetrack is what the GT4 RS loves, but if you decide to drive it around town, you will have to bear with a ride quality that is harsher. It is a trade-off that you will have to make for having those blisteringly fast lap times at your racetrack.

Here is an idea, why don’t you have the GT4 RS as a ‘track-only’ car and genuinely explore and experience its true potential rather than waste it for a mall run?

WHAT DO YOU GET?

The 718 GT4 RS’ interior quality is topnotch, and you can choose from a selection of leather upholstery and trim pieces. Slide into the low-set seats, and the Cayman’s driving position feels perfect straight

away. The seats are well-padded for a trackfocused sports car and hold you well in place during spirited driving. However, seat adjustments have limitations, and many people will find them hard.

The bare minimum is how one can describe the cabin of most high-performance sports cars. However, the Porsche 718 GT4 RS beats that by offering more than just the essentials.

Air-conditioning, an infotainment system with smartphone connectivity and hideaway cupholders make this sports car capable enough to be driven daily. But door straps instead of handles and a lack of storage spaces echo the bare minimum feeling.

Luxurious yet lightweight materials such as Ractex and carbon fibre get draped on most of the interior panels inside the cabin. The GT4 RS’ button-free steering wheel and analogue dials on the speedometer remind one that they’re a car enthusiast at heart, and that this beast’s home ground is a long twisty mountain road instead of a temperature-controlled car garage.

THE LOOKS OF IT

The 718 Cayman GT4 RS is more than a sports car – it is a razor-sharp track tool with a design straight from the circuit. One glance and you’ll know this sports car was designed inside a wind tunnel.

Aerodynamics have been prioritised over design aesthetics, as slatted vents and air scoops can be found across the exterior. A massive wing at the rear exhibits this sports car’s aggressive intent even further.

The Weissach pack, an optional extra, dials that intent up to 11 with lightweight carbon fibre panels on the hood and the roof, along with sporty alloys, completes the race-ready look of this sports car.

Porsche as a brand has generally scored very highly in customer satisfaction, and the Cayman has followed this trend as most owners are very pleased with their vehicles. However, given the Porsche GT4 RS is currently one of the best performance cars on sale, it will be challenging for Porsche to beat this record.

The starting price for the Porsche Cayman 718 GT4 RS is Dhs581,700, but after adding extras, it could cost as much as Dhs700,000. Still, the car is worth every fil. The German automaker wants this sports car in the hands of brand loyalists, and sadly the GT4 RS will be sold only to the most discerning Porsche customers and collectors.

“The 718 Cayman GT4 RS is more than a sports car – it is a razor-sharp track tool with a design that comes straight from the circuit. One glance and you’ll know this sports car was designed inside a wind tunnel”

The only way is ‘up’cycling

YARA YASSIN, CO-FOUNDER OF UP-FUSE, TELLS US HOW THE SLOW FASHION BRAND IS WASTING NO OPPORTUNITY TO TRANSFORM PLASTICS BAGS, BOTTLES AND TYRES INTO TRENDY FASHION ACCESSORIES

production rather than the opposite. Our brand is focused on creating quality pieces that are timeless and designed for longevity to encourage our customers to reduce the need for frequent replacements for their wardrobe. Every single item is upcycled and is produced using only recycled and sustainable materials to promote resource efficiency and waste reduction to contribute to a more environmentally conscious fashion industry.

So far, we have recycled over one million plastic bags, 400,000 bottles, and 400 tyres – a huge milestone and achievement for us. With our recent expansion in the UAE, we have also established a local distribution channel to reduce the carbon footprint.

BY NEESHA SALIAN

Tell us what inspired you to launch Up-fuse.

My co-founder Lama El Khawanky and I grew up in Egypt and would always see trash dirtying the beautiful shores of Egypt and parts of Cairo and other cities. Unfortunately, the situation only got worse. The mission behind Up-fuse was to create a slow fashion, eco-conscious brand, which seamlessly transforms plastic waste into durable and stylish products for a greener future. We wanted to be active participants in changing everyone’s mindsets revolving around environmental change, but were

also deeply passionate about creating a social impact in the community. This was the driving factor that inspired us to finally take a huge leap and launch Up-fuse to create products using only recycled and sustainable materials while also supporting our community by creating jobs for the locals.

Tell us how you have contributed to the circular economy.

At Up-fuse, we seek to prove that ecologically sound businesses are not far-fetched concepts, as we adopted a business model that helps in reducing waste through

What is your business model and how do you source your material and from where?

Since launching in 2013, Up-fuse has always been an eco-conscious e-commerce brand where all our products are available to purchase on our website and can be shipped worldwide. We recently opened a physical store in El Gouna, a town in Egypt’s Red Sea region and have now expanded our online presence in the UAE by working with an award-winning startup called Yanzo, which is our local distributor.

We work with local non-governmental organisations (NGOs) across Egypt to source all our waste material from old tyres, plastic bags and bottles and then upcycle them into a variety of durable and

stylish products. We collaborate with informal and formal garbage collectors in Cairo and we sort, clean and store the materials in our production house. We also have a donation format where direct and business clients can donate their plastic materials on a monthly basis. Finally, we work with factories that usually discard plastics for bad quality and use it in our production.

How do you support the communities you work with?

We constantly engage with our local community and empower businesses and organisations by working with talented, yet previously underappreciated, Egyptian artisans and migrants, the majority of whom are women, to help unearth talent and a sense of purposeful belonging. With an aim to support the unprivileged locals and refugees in the handicra ts business, we collaborate with local NGOs to create jobs within the community.

How has the market responded to your product?

So far, we have received some great responses and positive feedback about our products from customers who are looking for new sustainable alternatives instead of conventional fashion. Our customers find the products to be functional and one-ofa-kind featuring unique designs. They feel good about their purchase because they love the message behind it.

Tell us about the bestsellers in your product range?

The Lolita Multi Way Bag (see right) has been our hero product and best-selling piece. It is made from 15 upcycled plastic bags and is definitely a must-have piece, as it can be dressed up or dressed down by wearing it as a cross body or shoulder bag,

or even as a clutch. It also comes in various colours and designs to suit di erent styles and preferences. Our customers also love our range of small wallets, which are compact and made from three-five upcycled plastic bags, and laptop sleeves which are made from 20-25 upcycled plastic bags.

Any recent highlights for the brand?

Being a part of the United Nations Climate Change Conference 2022 (COP27) is definitely one of the notable highlights in our journey with Up-fuse so far. We had the privilege to showcase our firm and provide upcycled goods as a verified supplier, which

segued into opportunities to scale production and to evolve as a regional leader in this space. Another highlight would be getting the opportunity to work with local NGOs in Egypt who helps us source most of the waste materials that can be recycled to create Up-fuse products. We are part of the Adidas Run Campaign and provide runners with giveaways, connecting our community with runners to raise environmental awareness. Lastly, we have enabled customised vocational training for the IOM (International Organization of Migration) for 30 women from Sudan, Syria and Egypt to educate them about sewing, plastic recycling and making bags.

How can we as consumers support the circular economy?

As consumers, we can choose to actively support the circular economy by making the conscious decision to purchase products from slow fashion brands that are designed to last and produced with highquality cra tsmanship. It is important to realise the environmental harm caused by frequently purchasing items for your wardrobe. Rather, it is much more e ective to invest in quality, timeless pieces that are versatile and last longer.

Supporting the circular economy simply means shi ting mindsets and having a mindful approach about consumption. Some of the other ways I feel we can be a part of circular economy include embracing second-hand/ pre-loved items, donating or recycling previous items, reducing throwaway culture by using items to their maximum potential, and borrowing instead of buying things for limited usage.

What’s next for the brand?

Going forward, the plan is to continue investing into our mission of making an environmental and social impact that will put us on the path to being one of the leading sustainable brands in the UAE and strengthening our credible global reputation. In addition, we will be launching a couple of new products this summer including bags, slippers, cover-ups and ka tans for our customers in the UAE who plan to travel or stay in the city. We are very open to collaborations in the UAE and are excited to increase our presence and be a part of eco-friendly fashion conversations in the region.

Lama (L) and Yara (R), co-founders of Up-fuse

The SME Story

JUNE 23 A DEDICATED HUB FOR THE REGIONAL STARTUP AND SME ECOSYSTEM

“What we are presently witnessing across MENA region is a rapid prototyping of a new, and very sustainable VC ecosystem, backed by enviably solid sovereign wealth funds”

Jane Khedair, executive director of the Institute of Entrepreneurship and Private Capital at London Business School

Thriving with tech

Innovative platforms that are leveraging emerging technologies to revolutionise education, business solutions and savings infrastructure are on our radar this month p.69

Pic: Getty Images

Tell us about the founding story of School Hack and how the idea came about.

School Hack was founded in January 2023. We realised that if students with learning disabilities had such a tool during their school years, it would help them showcase their intelligence despite learning disabilities such as dyslexia.

What motivated you to merge education technology with AI, and what benefits does this bring to students and educators?

Our personal experience inspired us to combine education technology with artificial intelligence (AI), creating School Hack.

The platform utilises AI to relieve students of extra mental labour, personalise learning materials based on individual learning styles, and provide valuable insights to educators.

What makes your platform stand out from other educational technology platforms, and how do you di erentiate yourselves in the market?

Our platform uses various forms of AI, not just ChatGPT, and has a sophisticated algorithm that helps students personalise their learning experience. Additionally, it o ers educators a whitelabel version of the platform with a unique interface that not only monitors the use of AI, but also provides insight into how students are learning.

Walk us through a typical user experience on the platform.

A typical user experience on our platform starts with signing up and creating a profile. The platform then tailors learning materials based on the user’s preferences and learning style. The system adjusts and adapts in real-time based on the user’s learning progress.

Youseff Youseff, COO and Muhammed Khalid, CEO , SCHOOL HACK

“OUR PLATFORM USES VARIOUS FORMS OF AI, NOT JUST CHATGPT, AND HAS A SOPHISTICATED ALGORITHM THAT HELPS STUDENTS PERSONALISE THEIR LEARNING EXPERIENCE”

What are some of the biggest challenges you face in the edtech industry?

One of the biggest challenges faced in the edtech industry is finding the right balance between technology and human interaction. We plan to overcome this by continuously improving the humanAI integration. Another significant challenge we face is convincing educators to embrace the use of AI in the

classroom, showing them that it’s a valuable tool that can benefit both students and educators.

What are some future plans or developments you have in the pipeline, and how will they benefit your users?

In the future, we look forward to integrating more AI tools, creating even more personalised learning experiences for users. School Hack believes in

controlling and monitoring AI to ensure it’s used ethically in the classroom.

What advice would you give to educators and entrepreneurs who are looking to incorporate AI into their teaching or business strategies?

The advice we would give is to start with a clear vision and objective. It’s also essential to have a team that understands the technology’s potential and limitations.

convenience and are eager to adopt new technologies, making the Middle East a ripe and thriving fintech environment.

Secondly, the region has both banked and unbanked populations, providing opportunities for all types of fintech players. Solutions that cater to the unbanked population, such as digital wallets, and those that cater to the banked population, such as digital banking, are in high demand.

Ghady Rayess, managing director, FOO

How do you see the growth of fintech in the Middle East region?

I see it following similar trends as seen globally, driven largely by the emergence of banking 4.0. This means customercentricity and real-time service provision will continue to be a priority for companies operating in the fintech ecosystem. To achieve this, financial services embedded into existing business models are no longer optional, but necessary, for both financial and non-financial companies, driving a huge demand for fintech services and solutions.

There are three main factors, however, specific to the growth of fintech in the region that are not as prominent on a global scale. Firstly, 55 per cent of the MENA population is under the age of 30. These digital natives prioritise

Thirdly, there has been a surge in both government-led and private initiatives supporting the fintech ecosystem. The Emerging Technologies Sandbox initiative in Saudi Arabia, for instance, aims to increase investments, foster innovation, and encourage the introduction of new technology products and services into the Saudi markets. Additionally, regional regulatory ecosystems are increasingly driving demand for fintech solutions by enforcing digitisation. For

example, digital banks in the UAE are required to utilise UAE Pass – a digital ID verification solution developed through fintech – in order to onboard customers.

What inspired you to start this business?

FOO was originally established in 2009 as a technology company specialising in digital channels, such as web and mobile apps. Back then, banks were still very traditional, and the lack of convenience meant that, for many people, tasks as simple as checking your bank balance or withdrawing cash involved visiting a physical branch.

Despite my limited experience in the financial sector at the time, my personal frustration with banking services, coupled with my passion for technology, enabled me to identify many opportunities for improvement in the financial industry. As a result, FOO became one of

“SCHOOL HACK BELIEVES IN CONTROLLING AND MONITORING AI TO ENSURE IT’S USED ETHICALLY IN THE CLASSROOM”

the first fintech solution providers in the region, dedicated to helping banks streamline their services and enhance customer satisfaction.

What are some of the challenges you faced when starting o ?

Breaking into the market was the biggest challenge we faced as a startup. Banks are understandably strict when it comes to choosing collaboration partners due to security concerns. To win projects, we needed to provide references demonstrating our previous experience and prove our ability to deliver. However, the catch was that we were unable to obtain this experience without first winning the projects. Despite this, being one of the few fintech companies in the region at the time gave us an advantage, and eventually, we were able to break out of this cycle and establish our presence in the market.

Tell us about your o ering, it’s USP and business model.

FOO o ers a range of services, including out-of-the-box solutions and so tware-as-a-service (SaaS), as well as implementation and customer service solutions. More recently, we have also added design and security consultancy services. Having worked on numerous projects and use cases over the years, we have developed a modular platform of solutions that can be seamlessly integrated to build a personalised, packaged product.

What are some of the expansion plans you have in your pipeline?

We have already established our presence across the GCC and are now focused on expanding vertically. In addition to our headquarters in Dubai, we have recently opened an o ce in Riyadh.

Currently, we are in the process of opening an o ce in Egypt, which we consider to be the gateway to Africa. A base there will help us achieve our goal to promote financial inclusion in the region through our solutions for the unbanked population.

Tell us what inspired you to start TWIG.

At TWIG, our inspiration came from recognising a prevailing issue: the lack of financial planning and e ective savings strategies for individuals to achieve their goals. We observed the challenges people face with money management across various platforms, driving us to create an engaging, goal-based saving infrastructure. Our aim is to empower individuals to save seamlessly, making it accessible and integrated into their lives. Our motivation lies in enhancing financial wellness, promoting better money management habits, and positively impacting

the economic wellbeing of individuals and businesses.

Talk us through your business model and its USP.

Our business model revolves around embedding our savings infrastructure across multiple platforms in the MENA region. Businesses pay for our services on a so tware-as-a-service (SaaS) basis, leveraging our capabilities to enhance their own o erings. Our unique selling proposition (USP) centres around keeping users engaged with comprehensive money management capabilities. We prioritise goal-based

Chafic Idriss , founder and CEO, Rayan Antonios , founder and CBO, and Karam El Dik , founder and COO of TWIG

savings and smart planning functionality, empowering individuals to set and track their financial goals effectively. We make integration seamless for businesses, offering a user-friendly savings solution without extensive development efforts.

Share some of the highlights of your pre-seed round and how you plan to use the funds.

During our pre-seed round, we achieved several notable milestones. Firstly, obtaining the innovation testing licence (ITL) from the Dubai Financial Services Authority (DFSA) showcased our commitment to regulatory compliance, establishing trust within the financial technology sector. Secondly, the successful launch and testing of our B2C platform were pivotal moments. User feedback allowed us to refine our offerings based on their needs and preferences, ensuring our savings solutions align effectively with expectations. Lastly, securing funding from strategic investors validated our vision and

the potential of our embedded savings infrastructure. These funds enable further technological development, team expansion, and scaling operations. We focus on continuous improvement, integrating behavioural economics principles, and expanding our reach across digital and traditional banks, providing seamless savings solutions.

Tell us about receiving the DFSA approval. How will it help the company and your future plans?

Receiving approval from the DFSA under the ITL has been a significant milestone, enabling us to understand user engagement with finances and prepare for market penetration. This approval enhances credibility and opens opportunities to bring our innovative savings infrastructure to a wider audience. It sets a solid foundation, providing regulatory support and guidance for our future plans.

Why did you pick Dubai for the launch?

Dubai was chosen strategically for its dynamic financial hub, innovation focus, and supportive ecosystem for fintech startups. Its regulatory framework aligns with our goals, and its central location grants access to both local and broader Middle East markets, representing significant growth potential for our embedded savings infrastructure.

Tell us about the latest automated savings platform and its highlights.

Saving money can be challenging as it requires discipline. Our platform utilises principles from behavioural economics to assist individuals in their saving endeavours. We have implemented various automated features, including rounding up transactions to the nearest multiple and automatically recognising incoming salaries to encourage users to prioritise saving. With our platform, we facilitate effective goal planning and provide a user-friendly experience to help individuals achieve their financial objectives. These features can be seamlessly integrated into any business platform, enabling their customers to save more efficiently.

Please share your expansion plans?

Our future plans involve expanding TWIG’s reach by embedding our savings infrastructure into various platforms. We aim to empower individuals to plan for life transitions, future goals,and purchases. Our vision is to seamlessly integrate TWIG into a wide range of applications, contributing to individuals’ financial wellbeing across different areas of their lives.

“ OUR PLATFORM UTILISES PRINCIPLES FROM BEHAVIOURAL ECONOMICS TO ASSIST INDIVIDUALS IN THEIR SAVING ENDEAVOURS. WE HAVE IMPLEMENTED VARIOUS AUTOMATED FEATURES, INCLUDING ROUNDING UP TRANSACTIONS TO THE NEAREST MULTIPLE AND AUTOMATICALLY RECOGNISING INCOMING SALARIES TO ENCOURAGE USERS TO PRIORITISE SAVING”

TWIG CHOSE DUBAI FOR ITS DYNAMIC FINANCIAL HUB, INNOVATION FOCUS, AND SUPPORTIVE ECOSYSTEM FOR FINTECH STARTUPS

Pic: Getty Images

Revolutionary, new out-of-home (OOH) advertising medium, powered by innovative technology.

This unique and globally patented Escalator Step Branding Solution that gives brands and unrivaled opportunity to connect with audiences.

Breaking barriers, building businesses

Mira Charkawi, program scout, Flat6Labs tells Gulf Business how the firm is supporting promising startups, including those founded and run by female entrepreneurs from across the region

Today, at Flat6Labs Abu Dhabi, I focus on discovering the most promising entrepreneurs from across the region, and indeed the globe, and providing them with the resources and support they need to thrive. I believe that by investing in these individuals, we can create a brighter future for them and the entire ecosystem.

Tell us in brief about Flat6Labs and its goal.

Tell us how you became an ‘entrepreneurial’ talent scout. Right from the start of my career, I was drawn to the startup ecosystem because of its incredible potential to solve the world’s problems. I saw firsthand the passion, drive and creativity that innovators brought to the table, and I knew that I wanted to be a part of helping them achieve their dreams.

My journey began when I was given the opportunity to run a startup competition across five cities in the MENA region. It was an amazing experience, and I was inspired by the enthusiasm and talent I saw in the entrepreneurs I met. From there, my role expanded to include scouting for entrepreneurs across MENA, Asia, Africa, CEE and LATAM. This o ered me exposure and experience as I played the lead role in discovering and assessing more than 10,000 entrepreneurs.

While I joined Flat6Labs Abu Dhabi less than a year ago, I can already feel the impact we are creating and am proud to be a part of such a dynamic team.

As the most active early-stage VC firm in the MENA region, Flat6Labs has an impressive track record of helping entrepreneurs achieve their goals. Our firm’s commitment to investing in innovators and providing them with the resources, guidance and support they need to succeed is truly inspiring as this was the very reason, I selected this career in the first place. I feel incredibly fortunate to be a part of the organisation.

How do you help women entrepreneurs?

It is an unfortunate reality that a gender bias does exist worldwide. We recognise this and have worked to create and implement proactive strategies to ensure that femalefounded and women-led startups receive the funding they deserve. Among the initiatives launched is a Femtech accelerator

programme, which provides funding, mentorship and networking opportunities specifically for women entrepreneurs.

In addition, we constantly engage with women-led VC firms, ensure to include top businesswomen on our selection committees, and are part of several womenled tech communities.

Through these initiatives, we help create a more inclusive and supportive ecosystem for women entrepreneurs, empowering them to achieve their full potential despite the hindrances they face.

How many women-founded startups have you supported to date? Tell us about some of them.

To date, we have invested in more than 130 women entrepreneurs across the region. Of the 10 startups that are part of Cohort 4 of the Flat6Labs Ignite Program in Abu Dhabi, three are women-founded:

Khawla Hammad and Inas Shashieh are the CEO and COO, respectively, of Takalam, a digital platform for mental wellbeing, with personalised, convenient, and private access to mental wellbeing solutions.

Alyssa Mariano is CEO of Bazaara, a peerto-peer marketplace for resale fashion.

Mahrukh Mir is the CTO of Growdash, a platform that helps restaurants manage and execute profitable online marketing investments.

MORE THAN 130

WOMEN ENTREPRENEURS ACROSS THE REGION

TO DATE, WE HAVE INVESTED IN OF THE 10 STARTUPS THAT ARE PART OF COHORT 4 OF THE FLAT6LABS IGNITE PROGRAM IN ABU DHABI, THREE ARE WOMEN-FOUNDED

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