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Bank Lombard Odier & Co Ltd, Abu Dhabi Global Market Branch is licensed under the supervisory authority of the Financial Services Regulatory Authority (FSRA) [FSRA Permission Number 180046] to: Advise on investments or credit, Arrange deals in investments and Arrange credit in and from Abu Dhabi Global Market and provides this material as a branch of Bank Lombard Odier & Co Ltd., with its Head Office in Geneva, Switzerland. This is our decisive moment. For CO2, time is up. For every single company, every single industry. It’s time to transition to a post-carbon world. It’s net zero everything. Or nothing. Time to get ahead. Or get left behind. It’s why, with a holistic, scientific perspective, our Net Zero Investing Strategies can analyse and decarbonise entire portfolios. So our clients can benefit from the industry leaders preparing for the economic impact of a net zero transition. Not tomorrow, but today. Because net zero isn’t 30 years away. Net zero is now. Find out more about our Net Zero Investing Strategies at LombardOdier.comSUBSCRIBE NOW +971 4444 3000 www.itp.com/subscriptionswww.arabianbusiness.com 3 C OVER S T O RY The Expo Effect It’s the biggest show in town at- tracting hundreds of thousands from around the world, and that’s having a positive impact on prosperity and investment sectors in the UAE 26 arabianbusiness@arabian businessarabianbusiness By Lara Abouelkheir FIR S T WORD qTo me the loud- est argument centres around regulation” 18 Scott Armstrong Editor in chief scott.armstrong@itp.com Contents October – November 2021 AB/ Money ARAB YOUTH SURVEY 2021 Arab youth’s optimism Arab Youth Survey reveals that while more than two- thirds of young Arabs are con- cerned about personal debt, the majority believe their ‘best days are ahead of them’ INVE S TMENT Alternative investing: the options We speak to industry experts who share their insights on the growing interest on digital assets and how it’s reshaping traditional business models 364 AB/ Money October – November 2021 C ONTENT S 46 ANALYSIS Why cryptocurrency will change transactions for good The days of third parties taking a slice to handle payments are limited thanks to the blockchain, believes Anthony Scaramuccl 50 FUNDING Bridging the great divide CEO of N2 Technology Derek Watson discusses the challenges in the startup funding ecosystem, stressing that these are global issues faced by all founders and investors 52 SPENDING POWER PROPERTY OF THE MONTH It is hard to imagine a luxury property more worthy of the phrase ‘the best of the best’, but this extraordinary penthouse apartment in Atlantis – The Royal Residences might just be it The advantages of having an expert wealth advisor Financial advisors help create a tailor-fi t portfolio that aims to enhance client’s wealth-building journey 58 FIVE THINGS T O KNOW ABOUT... OPENING BELL 08 FINANCIAL TECHNOLOGY UAE hailed for digital approach by Binance boss 09 CRYP T O C ORNER The Flow Blockchain allows developers to create and trade non- fungible tokens (NFT). 10 REAL E S TAT E Dubai property sales hit near-eight year high in September C OMMENT 14 CRYPTOCURRENCIES Regulation protects the legitimate interests of stakeholders, and crypto regulation is no different, says Dina Sam’anS U B S CRIBE NOW www.itp.com/subscriptions +971 4 4443000 EXPER T VIEWS EXCLU SIVE INTERVIEWS INDEP TH NEWS PUBLISHED BY AND © 2021 ITP MEDIA GROUP FZ-LLC. NOTICE The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication, which is provided for general use and may not be appropriate for the readers’ particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. PO Box 500024, Dubai, UAE Tel: +971 4 444 3000 Offices in KSA, UAE, UK, US, and INDIA ITP MEDIA GROUP CEO Ali Akawi MANAGING DIRECTOR Alex Reeve EDITORIAL EDITOR-IN-CHIEF Rob Corder, rob.corder@itp.com EDITOR Scott Armstrong, +971 4 444 3513, scott.armstrong@itp.com CHIEF REPORTER Lauren Holtmeier, lauren.holtmeier@itp.com REPORTER Nabila Rahal, +971 4 444 3466, nabila.rahal@itp.com REPORTER Lara Abouelkheir, +971 4 444 3420, lara.abouelkheir@itp.com SUB EDITOR Edward Liamzon, +971 4 444 3474, edward.liamzon@itp.com ARABIANBUSINESS.COM DIGITAL EDITOR Gavin Gibbon, +971 4 444 3845, gavin.gibbon@itp.com UK EDITOR Alicia Buller INDIA EDITOR James Mathew DESIGN ART DIRECTOR Adrian Luca DESIGNER Mohammed Irqsosy STUDIO STUDIO MANAGER Abuzar Samo SENIOR IMAGE EDITOR Emmalyn Robles SENIOR PHOTOGRAPHER Efraim Evidor STAFF PHOTOGRAPHERS Ajith Narendra, Fritz John Asuro PRODUCTION & DISTRIBUTION GROUP PRODUCTION & DISTRIBUTION DIRECTOR Kyle Smith PRODUCTION MANAGER Denny Kollannoor PRODUCTION COORDINATOR Mahendra Pawar EVENTS & MARKETING DIRECTOR OF AWARDS & MARKETING Daniel Fewtrell, +971 4 444 3684, daniel fewtrell@itp.com CIRCULATION DISTRIBUTION & CIRCULATION MANAGER Evijin Pathrose DISTRIBUTION COORDINATOR Avinash Pereira CIRCULATION EXECUTIVE Rajesh Pillai ADVERTISING GROUP COMMERCIAL DIRECTOR Amit Chopra, +971 4 444 3463, amit.chopra@itp.com SENIOR SALES MANAGER Pankaj Sharma, +971 4 444 3510, pankaj.sharma@itp.com ITP GROUP CEO Ali Akawi CFO Toby Jay Spencer-Davies CORPORATE WEBSITE itp.com CIRCULATION CUSTOMER SERVICE +971 4 444 3000 WEB arabianbusiness.comFIR S T WORD / Scott Armstrong, Editor in chief 6 AB/ Money October – November 2021 $2.4 trillion The estimated value of the global digital assets market Is cryptocurrency fool’s gold? With crypto experts from around the world descending on the UAE, is the digital asset really all it’s made out to be by its fans? SCOTT ARMSTRONG @Scottiehack “ Fool’s gold” is a common nickname for pyrite, so called by that nickname (so geology.com tells me) because it is worth virtually nothing, but has an appearance that “fools” people into believing that it is gold. So it was interesting to find myself moderating a session titled ‘Digital assets, the future of finance or fool’s gold?’ at the AIM Summit in Dubai. The UAE is awash with cryptocurrency experts currently, from the cautious to out and out zeolites for the turbulent virtual asset class. Plenty of their views are reflected in AB Money this month, but to me the loudest argument centres around regulation and whether such a decentralised asset should be regulated for fear of robbing it of what makes it special. But, and quite rightly, those on the speculative side of the debate point to cryptocurrency’s lack of regulation as a dream for bad actors, a way for them to move money around in the dark, whether that be financing crime or terror. A recent watch of The Untouchables brought something home to me on this front, this true(ish) story of Eliot Ness and his hunt for famed mob boss Al Capone. Alphonse Gabriel Capone, the gangster known as Scarface, wasn’t brought to justice having been caught for any of his violent crimes, rather Ness and his team followed the money, (or lack of it paid) and finally caught their man for tax evasion. It was a financial, rather than physical, crime that put him away. If cryptocurrency had been around then in its current form, would Capone have got away with it? Because a lack of regu- lation makes a landscape akin to the Wild West, a place where anything goes and justice is hard to come by. Even enthusiasts get this, for cryptocurrency to succeed in any form, either as a payment mechanism or asset class, adop- tion of digital currencies must rise steadily, and education and regulation can help with that, according to exchange platform Bybit’s Igneus Terrenus. Currently, it is estimated that 3-4 percent of the population has interacted with digital currencies. “There’s kind of an antagonism between the crypto players and the regulators, but that doesn’t have to be the case,” Terrenus, who is the company’s head of communications, said. “There’s a lot of people on the fence, and with regulation customers can have more clarity.” “I think regulation is going to continue, but I don’t think we should necessarily be afraid… in fact regulations will encour- age more institutions to come in because they feel much safer in that environment,” added Joel Dietz, founder of ArtWallet, told the AIM Summit Dubai. Terry Culver, CEO of Matrix, reiterated, on the same panel as Dietz, that while work still needs to be done in terms of the technology and regulation, understanding the reasons behind this asset class’s substantial growth is fundamental. Whether cryptocurrency is a revolution in finance or Ponzi scheme waiting to crash, I will leave to greater minds than mine, but be sure the debate is not going away anytime soon. Indeed, with about $2.4 trillion in digital assets in play, perhaps the bigger question is: ‘Is crypto now too big to fail?’ But then we’ve heard that question before... SAPPHIRE BASIN MIXEROpening bell THE TOP NEWS AND BUSINESS HEADLINES FROM THE REGION 8 AB/ Money October – November 2021 UAE hailed for digital approach by boss of world’s largest crypto exchange Binance founder and CEO Changpeng Zhao says the UAE is a ‘symbol of embracing technology’ and its example should be followed by other gov’ts The UAE is a “symbol of embracing technology,” according to the founder and CEO of Binance, the world’s largest cryptocurrency exchange in terms of daily trading volumes. Discussing technology adoption on day two of the 4th Future Blockchain Summit at Dubai World Trade Centre (DWTC), Binance boss Changpeng Zhao lauded the UAE’s digital approach. “Things happen here very fast, it is one of the most pro business environments in the world and things are built with real quality – I wish I had visited here earlier,” said Zhao. Zhao added that other governments should follow suit and change their outlook when it comes to digital transformation. He said: “I think there is a lack of under- standing that causes fear, and this is not the right approach. We should embrace anything with the potential to disrupt. We should invest in anything that can disrupt the current order, and we should encourage that to grow because tech and innovation will happen regardless. The leaders here have that mindset, and this is very encouraging to see. FINANCIAL TE CHNOL OGY u Dubai is experiencing a rapid growth in the technology sector FINTECH HUB The UAE has been a trailblazer when it comes to instituting regulationsarabianbusiness.com 9 / OPENING BELL CRYP T O C ORNER The blockchain is built for the next generation of apps and digital assets “Don’t be afraid to embrace disruption, it will help countries to grow. It is new tech, and you cannot ignore new technology. This coun- try already understands that and is a symbol of embracing technology. This country gets it. Work with us, let us experiment together in a safe and compliant way to grow the industry.” Binance’s organisational structure is, by design, decentralised. With no global headquarters, CEO Zhao has likened the loose structure to the loose nature of blockchain and Bitcoin themselves. The rise of tech Earlier, Ahmed Bin Sulayem, executive chairman and CEO of Dubai Multi Commodities Centre, emphasised the rapid growth in Dubai’s technol- ogy sector and the desire from businesses to play their part. “DMCC created a blockchain ecosystem in our free zones and without even pushing hard we know we are going to exceed 1,000 crypto businesses at DMCC, we are going at that speed, and we have a lot of interest,” he said. “I have to take my hat off to the blockchain and crypto community around the world; they don’t just sit with one product, it is not all about business it is about trust as well.” Earlier last month, it was announced that a crypto asset and blockchain hub is to be developed at Dubai World Trade Centre (DWTC). It comes following a deal signed between the DWTC Free Zone and CNMENA Holding BVI - parent company of CoinMENA – the Sharia-com- pliant digital asset exchange company licensed and regulated by the Central Bank of Bahrain. The agreement will also see CNMENA Hold- ing relocate CoinMENA’s UAE headquarters to the DWTC Free Zone to create a dedicated talent centre for its future engineering, compliance and resourcing requirements. Token: FLOW Market cap: $4,725,174,961 Current price: $15.46 (Oct 14th) History: The Flow playground was launched in 2020. It was created after the developers behind the now massively successful project CryptoKitties launched their fi rst project on Ethereum in 2017. Frustrated by the gas fees and issues that the developers Dapper Labs faced whilst creating the project, they set out to create their own new blockchain. The Flow blockchain allows developers to create and trade a particular type of digital asset called a non-fungible token (NFT). An NFT is like other crypto assets in how it can be bought, sold and exchanged over the internet without a middleman. Utility: The Flow token is the native currency for the Flow network and the keystone for a new, inclusive, and borderless digital economy. Flow is the native currency for apps, games, and smart contracts built on top of the Flow blockchain. Developers can easily build the Flow token directly into their apps for peer-to-peer payments, charging for services, or enabling consumers to earn rewards for the value they create. Flow can also be held, transferred, or transacted by users peer-to-peer. Where to buy: If you are interested to own some Flow, you can purchase them from some of the following marketplaces: Binance, KuCoin, crypto.com, Kraken. To learn more about the NFT projects built on the Flow Blockchain check out fl owverse.co. Simon says: The Flow blockchain was built specifi cally for NFT developers to be able to create and sell projects that are scalable and have near zero minting costs. The underlying currency Flow and the stable coin FUSD that is pegged to the US dollar allow developers to build a world of projects on the new Web 3.0 technology. Our company Cheeze is built on the Flow Blockchain and Dapper Labs are an investor in the company. Flow in spotlight rSimon Hudson Founder and CEO of Cheeze, Inc Q DON’T BE AFRAID TO EMBRACE DISRUPTION, IT WILL HELP COUNTRIES TO GROW. IT IS NEW TECH, AND YOU CANNOT IGNORE NEW TECHNOLOGY” 50% The government transactions UAE aims to transform into the blockchain technology by 2021 in the company. c Next >