< Previous40 Vol. 23/08, August 2022 The crypto entrepreneur known as ‘The Moon’, Carl Runefelt, CEO and founder of TheMoonGroup, is a staunch believer in cryptocurrency and explains that despite the current bear market, crypto is a long-term viable solution to rectify a broken fi nancial system and is set to skyrocket in the next few years Cryptocurrency will transform global economies C OVER S T O RY / BLOCKCHAIN Your inspirational success story is an entrepreneurial dream come true. You transformed from a college dropout in your early days to becoming a successful crypto entrepreneur in just a few years. How did you make this possible? Fundamentally, I would have to say that it has to do with switching your mind-set; which completely changed my entire life. I really think that the Law of Attraction is the secret to my success because it is just not possible to rise in an upwards trajectory from being employed in a grocery store to buying a Bugatti in only three years unless there is a bit of magic involved. And for me, this magic translates as the u Alternative assets Extensive research and diligent investments have resulted on his success, Runefelt saysarabianbusiness.com 41 $1,684 The price of 1 Etherium as of August 1, 2022 Q I BELIEVE THAT BITCOIN IS THE NEW FORM OF GOLD THAT IS TRULY BETTER THAN GOLD ITSELF” Law of Attraction, which focuses on the concept that it is our positive or negative thoughts that can bring about positive or negative experiences into our life. Back in college, I could not concentrate on my studies due to Attention Deficit Disorder (ADD). Then I began working in a grocery store and very soon realised that it would not help to fulfil the dreams I had. But then one day, I heard about Bitcoin, and I was immediately intrigued as I realised from the onset that if everything being said about Bitcoin was actually true, then I believed that Bitcoin is new form of gold that is truly better than gold itself. I then meticulously studied the intricacies of how crypto works and decided to go all in. Since that time, the journey has been smooth. Extensive research and diligent investments have made me what I am today. But again, I advise everyone to conduct research and consider me the classic result of The Law of Attraction and all of its workings. Anyone can become successful with the right mind-set and focus. How did you get into crypto at such a young age and did you have any prior knowledge about the traditional fi nancial industry to have a head start? I had heard about Bitcoin more than four years ago and was a gold and silver investor at that time. Though because I worked in a supermarket, I was not a heavy investor. All the small little net worth that I had at that time, I was investing into physical gold and silver. I was a consistent researcher of the global financial system and I was truly fascinated by the ways that money worked. I was interested in how the central banking system was working, and I realised back then that it was a very broken system. It was from that point that I chose to convert my salary from the supermarket into physical gold and silver, which I actually still have in my home country Sweden. When I heard about Bitcoin in 2017, I conducted extensive research and finally concluded that Bitcoin is where I would be investing my money. Moving forward, I continued researching Bitcoin and other cryptocurrencies. I also learned about how global institutions such as the Federal Reserve function, and went on to study major cryptocurrencies including Polkadot, Bitcoin, and Ethereum. At the end of it, I truly believe that an urge to succeed can take you a long way. You have invested in over 460 crypto startups which refl ects your confi dence in the sector. What goals do you have in mind, particularly after the recent crypto bear market? I am a firm believer in cryptocurrency, and I am certain that it is poised to transform the global financial system very soon. Crypto is game-changing and represents a massive transformation for the global economy. It / THE MOON GROUP u Tapping into cryptos The UAE is making steps in becoming a global hub for operating crypto assets42 Vol. 23/08, August 2022 actually represents a paradigm change; and I believe that it is the best hedge against inflation that exists in the world right now and is truly the best form of currency. Yet having said that, I always say that considering crypto as a short- term investment will defeat its purpose. Despite the current bear market, crypto is a long-term solution to a broken financial system, and I think it will rise rapidly in the next five or 10 years. Therefore, I keep investing in Bitcoin based on the fact that I am certain it will always bounce back as it has done historically. I often like to say, buy in the dip. One of your projects with crypto involves sponsoring a Formula 2 team to raise awareness for children with disabilities. What are some of your philanthropic efforts with crypto? The main reason for this sponsorship is to raise awareness for children with disabilities. This cause is very close to my heart. I have placed a QR Code on the car for people to scan and donate and the proceeds will be distributed to the different charities we are working with. Then there is one foundation that I am donating to entitled ‘Research for Children.’ They help children with very severe skin diseases and who have a low-life expectancy, often times just one to two years. Yet through such donations, they can actually increase their life expectancy. But if they do live longer, their entire life is spent in severe pain. Therefore, this is one disease for which I am aspiring to help find a cure for and have personally donated hundreds of thousands of Dollars to this particular charity. Do you think efforts to regulate the crypto space will help establish The UAE as the world’s most innovative crypto hub? As the UAE has taken several steps to recognise the use of cryptocurrency, these developments are aimed at providing regulation and the promotion of crypto assets. This is because decentralised financial services must be balanced to boost public confidence in crypto. The UAE is focusing on the goal of becoming a global hub for operating crypto assets. Also, one of the most vital steps that the UAE has taken is towards facilitating the licenses for numerous crypto-related activities. This includes disseminating licenses to distributed ledger technology providers, the metaverse service providers, and the crypto assets providers. In addition to this, the UAE has developed financial free zones specifically for crypto assets businesses. u New economy The UAE will be leading from the front in realising its virtual economy plans, Runefelt believes As crypto will become more pervasive in the global economy, I think the UAE will be leading from the front in actualising this ‘virtual economy.’ You purchased your dream car, a Bugatti, with Ethereum in Dubai; while several prominent brands accept crypto as payment, do you see this trend increasing within the automotive and other sectors? In Dubai, anything can be purchased with cryptocurrency. I purchased my car, my watch, and even my employees’ salaries are paid in crypto. I have nearly 150 employees globally and approximately 80 percent of these employees are paid in crypto. As a founder and partner of numerous crypto projects, you must constantly be in search of new talent. What would be your DIGITAL CURRENCIES In the UAE, a few major companies have recognised digital currencies as a mode of payment, including Emirates, DAMAC and Al Futtaim C OVER S T ORY / BLOCKCHAIN Q I STRONGLY BELIEVE CRYPTO GAMING IS THE FUTURE BECAUSE MAINSTREAM GAMING HAS ITS LIMITATIONS. AT THE SAME TIME, THE POTENTIAL OF CRYPTO GAMING IS UNIMAGINABLE”OIN”arabianbusiness.com 43 crypto gaming is the future because mainstream gaming has its limitations. At the same time, the potential of crypto gaming is unimaginable. Players can have immutable ownership of in-game items, have an in-game currency value, and be incentivised with dividends. It is a low-cost solution because the servers will be distributed on the blockchain network. The entire experience will be like a parallel life for players in which they can virtually represent themselves and interact with places, objects, as well as other players. What is your advice for young crypto investors, bearing in mind the current bear market? I would start by saying that do not let the volatility of the crypto market frighten you. Despite the bearish trend, crypto will always jump back. I am very confident that this will be an excellent investment. I believe that Bitcoin is not only going to go to $500,000, but I believe that Bitcoin will eventually reach a whopping $5m per Bitcoin. Obviously, with inflation, it could even climb to trillions of dollars per Bitcoin, which I think is inevitable because the dollar will collapse at some point, and crypto will be its replacement. One of the ideal methods to earn money through crypto is to purchase at a low price and sell it off when the price is high. You can intelligently take advantage of massive volatility and volume. recommendation for those individuals who aspire to work in the crypto industry? I always recommend that people work full-time in crypto and I believe that working in Crypto is the biggest opportunity in the world currently. For this reason, I created cryptojobs.com, which is a crypto jobs portal. This is the portal that I am using to hire talent for my companies, but other companies are also using my portal to hire talent in the crypto industry. The traditional gaming industry is worth over $200bn. What is the potential of crypto gaming in the future as compared to mainstream gaming? In the near future, we will see a total restructuring of the mainstream gaming industry. Crypto gaming will take power from the monopolistic console and hand it over to crypto gaming experiences, which will certainly be more immersive and engaging. I strongly believe $1.09tr The estimated value of the global cryptocurrency market as of August 1, 2022 Q I BELIEVE THAT BITCOIN IS NOT ONLY GOING TO GO TO $500,000, BUT I BELIEVE THAT BITCOIN WILL EVENTUALLY REACH A WHOPPING $5M PER BITCOIN” / THE MOON GROUP u The future of money? Cryptocurrency is poised to transform the global fi nancial system, Runefelt believes44 Vol. 23/08, August 2022 FEATURE / TECHNOLOGY The MENA region, home to one of the fastest-growing gaming markets, is set to benefi t from the ongoing rise of the industry Gaming: The industry to watch TURKI ALFAWZAN, CEO AT SAUDI ESPORTS FEDERATION When one examines the history of gaming, it’s evident that the industry’s recent journey is nothing short of remarkable. As technological capabilities have progressed and the lines between what’s physical and virtual have become increasingly blurred, the profile and popularity of gaming have reached unprecedented heights, firmly establishing its status not only as a true phenomenon of our time, but also a serious industry in today’s modern economy. Perhaps considered a bold statement by the casual reader or those unfamiliar with the gaming space, this reality is factual rather than speculative. With the number of global gamers set to pass 3 billion, and worldwide revenues estimated to exceed $203bn in 2022, gaming unquestionably ranks among the world’s most influential and profitable industries. The ever- increasing interest and interaction levels is a clear catalyst behind gaming overtaking some of the most recognised industries of all-time. Revenue projections aside, $180bn was generated globally in 2021, translating to valuable contributions towards various economies across all continents. Such earnings further enforce that gaming has gone way beyond other sectors en route to becoming INVESTMENT In June, the Saudi Arabia’s PIF acquired a 5.01 percent stake in Japanese gaming company Nintendo. u Popularity Worldwide revenues of the gaming sector is estimated to exceed $203bn this yeararabianbusiness.com 45 markets worldwide and anticipated to register a growth rate of 12.9 percent year-over-year in 2022. One country leading the industry’s emergence on the regional stage is the Kingdom of Saudi Arabia, where video games, cloud gaming, online competitions and esports are very much on the rise. Under the stewardship of the Saudi Esports Federation, various world-class esports tournaments and events are held each year, with the upcoming Gamers8, the biggest esports and gaming event worldwide, sure to consolidate the federation’s recent success in developing all levels of competitive gamers at the national level. Doing so is enabling talent and developing the wider gaming and esports value chain. As editions of such events continue growing in stature while inspiring gamers and, importantly, investors, Saudi Arabia is set to make more glowing contributions as the gaming industry continues breaking new barriers within the modern economy. a major economic player, so much so that gaming is now bigger than Hollywood and the music industry combined. For instance, the world’s best-selling video game franchise, Pokémon, has made $90bn worldwide, while the highest-grossing film to date, Avatar, stands at approximately $2.85bn. Gaming’s ascension to the economic elite has, however, manifested overtime, with a culmination of factors behind the industry’s envious position today. With transformation comes trajectory For a better understanding of how gaming has morphed into an entertainment giant with such economic gravitas, one need only look back to the mid-to-late 1990s and early 2000s when household names including Nintendo, Sony, Sega, and Microsoft released the Nintendo 64, PlayStation, Dreamcast, and Xbox consoles, respectively. The inception of these now-vintage consoles played a starring role in paving the way for the evolution that followed via their predecessors, introducing audiences to never- before-seen games and graphics. As internet and computer processor technology capabilities continued expanding exponentially, online functionality became an increasingly integral element of the gaming industry as newer generations of consoles were introduced. Super Mario, FIFA, Call of Duty, and the aforementioned Pokémon are among the franchises that have supported the industry’s growth throughout this time, with each new release widening their fanbases and selling hundreds of millions of copies thanks to ground- breaking new gaming features. And fast-forward to the present day, PlayStation Plus and Xbox Game Pass Ultimate are two of many digital subscription services empowering the billions of users who play hundreds of games and compete against others online. From high-speed, low-latency internet connections to augmented reality (AR) and virtual reality (VR), new formulas are continually being found that redefine the gaming experience and the industry. It’s also important to note that while other industries were detrimentally affected by the recent pandemic, gaming continued thriving as new audiences with more free time were introduced, including in the Middle East and North Africa (MENA), where the industry continues enjoying substantial growth. A global gaming hub Valued at $5.4bn in 2021, the MENA region is home to one of the fastest-growing gaming u Pocket games The mobile gaming industry in the Middle East represents 23 percent of the entire global gaming industry, according to CCC International u Growing industry Gaming is now bigger than Hollywood and the music industry combined u Man in charge Video games and esports are very much on the rise in KSA, says Alfawzan $5.4bn The value of the gaming sector in the MENA region last year / TECHNOLOGY46 Vol. 23/08, August 2022 FEATURE / TECHNOLOGY Nurturing talent is key to futureproofi ng business The age of talentism in a digital world BY ALI SAJWANI, GENERAL MANAGER OF OPERATIONS AT DAMAC AND CEO OF D-LABS Talent is becoming the new capital and the core of a rising economic system that puts a premium on human resources as the driver of a more sustainable, new future world order. As a concept, talentism was first coined by the founder of the World Economic Forum (WEF), Dr Klaus Schwab who, at the opening of popular event in Davos in 2013, asserted that talent was going to supplant capital as the primary driver of production in the future. Schwab urged the world to recognise that entrepreneurship is actually the essence of capitalism today and while capital was the most important factor for success when capitalism was created, it is no longer the case. He emphasised that it was “no longer appropriate” to call today’s ADOPTING TECH The power of cryptocurrency introduces a new sales platform for real estate businesses, including luxury developer DAMAC. u Biggest asset Attracting and nurturing the right tech talent will help future-proof DAMAC, Sajwani says economic system capitalism but it is now rather based on “talentism,” which has a particular emphasis on innovation. While Schwab was onto something big, perhaps he underestimated just how integral technology would be to this new world order. I have always been a vocal advocate that technology is no longer the driver of business nowadays – it is the business. Talented tech minds That is why, at DAMAC, we believe that attracting and nurturing the right tech talent will help future-proof the company and keep it relevant in the medium to long-term future. DAMAC’s investment in new technologies such as robotic arabianbusiness.com 47 So here, we see just how much technology adds value to our operations, by giving our customers even more options for transactions – making it easier and more seamless. People remain integral With these revolutionary initiatives towards a futuristic digital world, I am excited for the road ahead and it is imperative we recruit and attract the sharpest tech minds from around the world to help us realise our ambitions. While technology and digitisation continue to drive businesses forward, I believe that people and process remain at the centre of operations and I am working hand in hand with our award-winning talent acquisition here to ensure we have the right human capital to take DAMAC into the future. process automation, virtual reality, cloud data platforms, Internet of Things, artificial intelligence and mobile solutions, among others, to develop a Total Experience (TX) strategy have not only helped improve and streamline customer experience, but also have attracted top tech talent to want to work with us and the exciting new technologies we are implementing. I am proud to be leading DAMAC’s Information Technology team which has bagged multiple awards for its achievements in digitisation, including best transformative project in real estate for our one-stop-shop community app implementation, DAMAC Living. The app is just one example of how innovation can enhance customer experience and glean greater value from digital technologies. Metaverse and cryptocurrency This commitment and drive to stay on top of tech trends has been my personal objective. Seeing way into the future and trying to capitalise on opportunities before the herd, we recently established D-Labs – a company that aims to build its own digital cities in the metaverse, becoming one of the pioneers in the GCC to do so. While we have been a pioneer of digitisation for a while now, the past two years we have doubled down on our digitisation efforts, and this new initiative into the metaverse will only further leverage our digital footprint. As well as updating our systems, processes and operations across departments, we have been investing in building a strong team of skilled and talented experts to help support our ambitions of being a digital leader. Another exciting announcement made this year was the facilitation of Bitcoin and Ethereum for property sales. We believe the purchase of property through cryptocurrency will revolutionise the future of real estate and provide convenience to real estate investors worldwide. uTransaction DAMAC enabled the use of cryptocurrencies for property sales uInsights Dr Klaus Schwab, founder of the World Economic Forum (WEF) (above, left), and Ali Sajwani, General Manager of Operations at DAMAC $100m D-Labs’ investment on building digital cities / TECHNOLOGY q WE BELIEVE THE PURCHASE OF PROPERTY THROUGH CRYPTOCURRENCY WILL REVOLUTIONISE THE FUTURE OF REAL ESTATE AND PROVIDE CONVENIENCE TO REAL ESTATE INVESTORS WORLDWIDE”AB/ 48 Vol. 23/08, August 2022 The next big thing in the region’s IPO space could be family group listings, says Salmaan Khawaja, Partner, M&A and Transactions Advisory at Grant Thornton UAE A rosy year for IPOs in the region? The year 2021 witnessed a surge in global initial public offering (IPO) activity fuelled by the pent-up demand stemming from the pandemic-hit 2020, coupled with a growing trend of special purpose acquisition company (SPAC) debuts, which resulted in a record year for new listings. Around the world, 80 percent year- on-year growth in IPOs saw 3,146 new listings that raised a total of $388bn, with the EMEA region recording a staggering 211 percent year-on-year u Listings To date, there have been 50 IPOs in the GCC region, including TECOM Group’s IPO that debuted on the DFM on July 5 MARKET LEADER The Dubai Financial Market (DFM) maintained its attractiveness to international investors who accounted for 47 percent of its trading value during the fi rst half of the year.arabianbusiness.com 49 AB / MONEY q OPTIMISM IS HIGH AMONG INVESTORS IN THE GCC” growth in new listings. However, Q2 2022 has seen global growth rates softening due to prevailing volatile market conditions. An exception is the GCC IPO markets, which continue to see an uptick in activity levels primarily driven by large government listings in a boost to liquidity. While major markets struggle under the weight of high energy prices, high inflation, Russia-Ukraine geopolitical tensions and supply chain disruptions, the GCC region has largely remained immune, demonstrating economic and political stability, and even benefiting from the increase in energy prices. In 2021, the GCC saw the launch of 19 new IPO listings, representing a growth of 111 percent compared to pre-pandemic levels. The cumulative proceeds from GCC issuers were five times higher than in 2020, reaching $7.52bn, up from a total of $1.64bn in the previous year. Saudi Arabia has been leading the region’s new listings with 37 IPOs since 2019. The kingdom had a record year for IPOs in 2021, with 15 listings that accounted for 60 percent of new issuances in the region across its main and secondary markets. With three new listings in 2021, the UAE was the region’s second most active IPO market. The growing investment appetite of retail investors is evidenced by the significant oversubscription of the retail tranches of recent 2022 IPOs. The DEWA IPO was overall oversubscribed by 37 times and the retail offerings of the Bourouge and Al Nadhi Medical IPOs were oversubscribed by 74 times and 13 times, respectively. Previously, access to IPO subscriptions was primarily the domain of institutional and accredited investors only but retail participation has been made possible by the emergence of zero-commission trading apps and competition-driven lower commissions charged by regional brokerages. Key contributing factors to how attractive these oversubscribed listings have been are the dividend yields offered by new issuers and the potential value creation for shareholders via the use of IPO proceeds. For example, the estimated dividend yields of 5 percent for DEWA and 6.5 percent for Borouge, and their proposed growth plans at the time of the issuances, helped to stimulate both international and local investor interests, enabling the successful closure of these IPOs. To date, there have been 50 IPOs in the GCC region, including TECOM Group’s IPO that debuted on the Dubai Financial Market on July 5. Of these listings, 98 percent were floated in regional stock exchanges, while only 2 percent have chosen to go to an overseas exchange. It is noteworthy to highlight that 100 percent of the IPOs listed since 2021 have selected their respective regional u Investment Previously, access to IPO subscriptions was primarily the domain of institutional and accredited investors only u Specialist The region’s markets have the capability to compete with some of the biggest markets around the world, Khawaja says stock exchanges to float, demonstrating increased confidence in the liquidity of these markets. The next big thing in the region’s IPO space could be family group listings. Traditionally resistant to opening their books to outside investors, family groups, incentivised by governments, are now looking at IPOs as the next phase of their business to drive increased governance, business continuity, capital diversification, international expansion and family planning, as the recent listings of Almunajem Foods and Al Nadhi Medical have shown. Such listings can also provide a source to raise capital through the issuance of different share classes so that they may retain control of the business through super-voting shares or greater weighted shares. With a plethora of factors to boost the market, optimism is high among investors in the GCC, and rightfully so. While caution is always required in such situations, the general belief is that regional markets are now more ready than ever to demonstrate their commitment and capability to compete with some of the biggest markets around the world. A combination of healthy government reserves, higher oil prices and robust foreign relations have meant that governments in the region have tools to mitigate any immediate risks. Next >