< PreviousOver 240,000 corporate clients worldwide 1 cybersecurity ecosystem empowers them all Kaspersky Enterprise solutions meet your ever-evolving IT security needs. As your digital environment changes and your business grows, our comprehensive ecosystem adapts to protect you at every stage of your journey. Scan to continue the story:UAE banks Kitopi The top ten UAE banks reported an increase in pro tability in Q3, driven by higher core interest income despite a slowdown in loans Dubai cloud kitchen platform Kitopi has sacked 93 of its head of ce staff, as the tech industry continues to slump NEWS IN NUMBERS Tokenisation Investors will be able to buy gold as a digital asset as the Dubai Multi Commodities Centre (DMCC) free zone launches a new blockchain network. The freezone has announced a partnership with Comtech Gold to digitise the buying and selling of gold by tokenising the precious metal backed by physical gold bars registered on DMCC Tradeflow. DMCC Tradeflow is an online platform for registering the ownership of commodities stored in UAE facilities. Enhanced security Although investors may never see their asset as it is locked in a vault, they will take ownership of as little as a single gram of the metal.Comtech Gold Tokens will be created on the XinFin Protocol blockchain network based on the deposit of physical gold bars located in DMCC-approved vaults. Each gold bar will be backed by a Tradeflow warrant, meaning that the ease of trading a tokenised asset is combined with security and real-asset allocation provided by the platform. Sharia-compliance With each token representing one gram of gold, investors and traders will be able to buy as little as one gram, democratising the asset class by making it more accessible. The tokens are Sharia-compliant and fully backed by physical gold in the form of 1kg gold bars of 999.9 purity from globally-renowned brands. In line with international best practices for transparency in the precious metals sector, each bar will feature unique ID numbers and certi cates direct from the re ners. GOOD MONTH BAD MONTH THREE REASONS WHY Trading of digital assets of gold will be possible in the emirate Sour ce: IMF staff calculations. Note: Solid lines = Oct ober 2022 W orld E conomic Outlook; dashed lines = April 2022 W orld E conomic Outlook . Upfront The top news and business headlines from the region DECEMBER 2022 Dubai puts precious metal on blockchain network Growth forecast for emerging market and developing economies Growth in the emerging market and developing economy group is expected to decline to 3.7 percent in 2022 and remain there in 2023. The forecast for 2022 is modestly upgraded from the July forecast, reflecting a smaller-than-expected contraction in emerging and developing Europe. In emerging and developing Asia, growth is projected to decline from 7.2 percent in 2021 to 4.4 percent in 2022 before rising to 4.9 percent in 2023. 12 Vol. 23/12, December 2022 Global growth and in ation forecasts (percent) 0 2021 1. GDP growth rate 222324 2 4 6 8 0 2021 2. Inflation rate 222324 2 4 6 8 10 World Advanced economies Emerging market and developing economiesIND USTRY | 14 Vol. 23/12, December 2022 Roaring in ation, war in Ukraine, tension with China, disrupted supply chains, and a looming recession – there is no short- age of challenges for businesses in the world right now. This geopolitical and economic disruption demands a reaction: It’s more important than ever for businesses to be prudent and maximise e ciency. But focusing on short-term savings alone might hurt over the long term. Being strategic and nding new revenue streams is of critical How to survive the bear market: UAE businesses need to innovate The global economy faces strong headwinds, but smart businesses can still nd opportunities $324M The total funding secured by start- ups in the MENA region in June of this year Funding growth Financing for startups in the MENA region grew 56 percent year-on-year in the rst quarter of this year SPOTLIGH T | importance, too – you cannot save your way out of a crisis. Learning from the past Looking at past slowdowns can be instructive. In the dot-com crash of the early s, the Nasdaq fell 78 percent as thousands of online companies went bankrupt. Those companies that did survive did so at much lower valuations. But some of the most successful tech compa- nies of our time not only survived, they thrived through the crisis. Amazon’s topline revenue almost doubled from Q to Q . The downturn was a defining moment for the company, partly because of strategic decisions it made that positioned them for success far beyond the economic cycle. Whilst Amazon’s growth trajectory might look obvious today, its success was far from guaranteed, especially given the dire macroeco- nomic conditions. History shows that companies can’t a ord to lower their ambitions in a slow- down. They need to attribute developer time to strategic projects, and not only think about costs in terms of immediate survival – but also in light of long-term opportunity. BY GIRARD MOUSSA, HEAD OF UAE AND MENA EXPANSION AT STRIPEarabianbusiness.com 15 $278.8m The funding raised by UAE startups across 16 deals | SPOTLIGHT Slowdowns accelerate change, and the world will look very di erent when the economy picks up again which measures the purchasing price of a busi- ness’ product and the total cost of producing it – can provide a clear picture of the actual costs of an investment and the long-term conse- quences of choosing one provider over another. It helps startup founders to take a long term view and to identify the total value of their prod- uct o ering over time. In payments, the immedi- ate implementation and setup costs of a piece of software do not provide a full overview – nor do the ongoing transactions costs. Consequences are much more far-reaching than that. The value of developer time needs to be assessed against the bene t of using scarce engi- neering resources for more strategic parts of the business. At the same time, the software provid- er’s full product o ering and future innovations need to be considered in order to preserve ex- ibility in the future. Look at marketplaces businesses such as Amazon, Noon and Namshi. Even if starting a A look to the present and future opportunity in the Middle East As more startups look to tighten costs and adopt greater austerity into their business, this should not inhibit vision or ambition – especially given the trajectory of the SME economy in the Middle East. Despite recent slowdowns in global SME investments, in June startups in MENA secured a total of $324m in funding across 66 deals, marking a month-on-month rise of 84 percent in deal value and 57 percent rise in deal volume. In Q1 2022, startups nancing in MENA grew 56 percent year-on-year, recording a total of $797m in funding. The UAE continues to be the standout leader in the region, raising $278.8m across 16 deals, representing 86 percent of total MENA funding. And Egypt’s rapidly ourishing startup ecosys- tem (with notable players such as the ride-shar- ing unicorn Swvl, and fintech challenger Paymob) came in third, posting $8.6m in funding across 15 deals. This presents startups in the Middle East with a dichotomy – the need to address the signi cant regional opportunity for scale, growth and capi- tal investment, whilst mitigating against global macroeconomic headwinds as recession deepens. The startups that will stay resilient and attractive (to both investors and customers), are the ones which adapt and innovate. Doing more, with less A lot has changed since the dot-com crash. The proliferation of APIs and SaaS tooling has dramatically reduced the operational burden for companies, meaning big strategic projects can be delivered with low long-term xed costs. Starting an Amazon-like marketplace, for example, does not require months or even years of software development any longer, because it can be built out of the box with tools like Stripe Connect. While this has helped speed up company building and innovation, the complex interplay of software today can be hard to navigate. During a slowdown, reviewing your tech stack and SaaS providers to identify where you can lower your cost structure can be a useful exercise. Which providers can help you accelerate your growth? Are there parts of your business you should be building instead of buying? And does the answer to that question hinge on whether the economy goes up or down? Strategic decision-making today A total cost of ownership (TCO) calculation – Long-term planning Moussa urges organisations to look at the bigger picture and assess where the key value drivers are for long-term growth16 Vol. 23/12, December 2022 IND USTRY | marketplace is not on the roadmap when a crisis hits, the option to start one in the future comes with a certain value, which a company might also want to price in. The value of such optionality is certainly higher in times when the economy goes down: Slowdowns accelerate change, and the world will look very di erent when the economy picks up again. In order to thrive in that new environ- ment, adapting will be necessary – although it might not be quite clear from the beginning what exactly needs to change. Never stop innovating The GCC and broader Middle East are compelling examples of entire economies which have inno- vated and modernised legacy industries to attract investment, growth, and long-term success. The region continues to take significant strides to diversifying its energy supply to encompass more renewable alternatives; the UAE in particular is rapidly transforming its agriculture and farming industry by pivoting to vertical farming and agritech innovation – homegrown agritech startup Pure Harvest Smart Farms’ recent $64.5m fundraise is a shining example of what innovation can do to unlock new growth opportunities and capital investment. Likewise, traditional retail continues to adopt embedded nance solutions to improve customer experience (take Majid Al Futtaim and the company’s digital transformation e orts to migrate to more ecommerce solutions). Not to mention banking – not only the marked rise of neobanks such as Wio, but also legacy main- stream corporate banks spinning o innovative mobile payments solutions, like First Abu Dhabi Bank’s Magnati. As the macroeconomic environment contin- ues to ebb and flow, business leaders will undoubtedly face strains as in ation soars and interest rates rise further. Emerging markets – particularly the Middle East – continue to pres- ent significant opportunities. The UAE still emerges as the most attractive startup market in the region, according to MAGNiTT’s 2022 Venture Investment Report. Businesses need to be able to navigate the complexities of the current global economic climate, whilst also putting themselves in pole position to address the signi cant growth oppor- tunities ahead in the Middle East. How? Through smart innovation and strategic decision making based on long-term vision. The key is not to be blinkered by short-term challenges, rather to look at the bigger picture and assess where the key value drivers are for long-term growth. $64.5m The funding raised by Abu Dhabi-based Pure Harvest Smart Farms Mobile nance Magnati is a regional leader in the payment solutions industry SPOT LIGH T |arabianbusiness.com 17 and covers a wide range of medical specialties and procedures for patients suffering from multiple conditions. The centre is equipped with state-of-the-art medical equipment, and patients are attended to by highly skilled medi- cal professionals. The new facility embodies the group’s vision to be the most accessible and agile healthcare group in the region and provide innovative, comprehensive, patient-centric care to all patients anywhere, anytime. The new hospital is a part of the Batterjee Healthcare City, which also is home to a univer- sity and a non-pro t hospital. Equipped with a Hospital Command Centre (HCC), the facility manages operations with e cient coordination and response activities during emergencies or disasters. The new hospital at the Al Jamea district in Jeddah is SGH’s eighth medical facility in the KSA and was launched in line with SGH’s vision to meet the growing demand for high-quality healthcare services. The hospital comprises highly skilled specialists and experienced doctors in various medical vocations, including obstetrics and gynaecology, endoscopic surgery, hysteroscopy, general paediatrics, thoracic disorders, surgical procedures, ICU services, cardiovascular diseases, endocrine pathology, and kidney diseases, among many others. The Al Jamea branch, with its comprehensive health- care offerings, embodies the brand ethos of ‘Caring Like Family’. Furthermore, earlier in August 2022, , SGH opened Abha Clinics, under the brand of Saudi German Clinics which is well-equipped to o er specialties in obstetrics, gynaecology, gastroin- testinal health and paediatrics. The emergency room at the clinics can handle multiple types of cases and comprises an excellent medical team. The clinic’s latest medical technologies are leveraged to provide patients with optimum medical attention. The model of these clinics allows for a greater reach in the community. SGH continues to expand its footprint in the UAE and KSA and internationally in Egypt, Morocco, and Pakistan. The organisation expects to open several more medical facilities in the coming years. Through the launch of these new hospitals and clinics, the group aims to bridge the gap between international standards of medicine and local expertise, and constantly works to further expand its footprint within and beyond the KSA. SGH is dedicated to strengthening its pres- ence and is committed to contributing to advancing the healthcare sector in the region. Saudi German Health (SGH) has constantly made e orts to expand its presence within and beyond Saudi Arabia to reinforce its position as a medical pioneer in the kingdom and the region. Saudi German Health recognises the signif- icance of healthcare investments in KSA, as it has the potential to transform the nation’s healthcare sector. SHG’s portfolio is one of the largest in the MENA region, with 18 medical facilities offering the highest standards of healthcare, along with many more under construction and opening soon. Under the leadership of Makarem Sobhi Batterjee, President and Vice Chairman of SGH, the group has implemented an ambitious long- term expansion plan and has undertaken numerous initiatives and projects across KSA, aiming to provide healthcare services to all, aligning with its brand promise of ‘Caring Like Family’. The recent opening of SGH facilities re ects the group’s commitment to Saudi Vision 2030, which aims at providing seamless access to high-quality healthcare for residents. The new facilities are a signi cant addition to SGH’s port- folio and play a vital role in developing the medi- cal sector in the area. The new SGH in Makkah o ers the highest international standards in healthcare services Saudi German Health delivers on its promise of ‘Caring Like Family’ The healthcare provider has been enhancing its operations to foster the growth of Saudi Arabia’s healthcare industry Health is wealth The new Saudi German Hospital in Makkah offers the highest international standards in healthcare services | BRAND VIEW 18 The number of facilities Saudi German Health operates across the Middle EastIND USTRY | 18 Vol. 23/12, December 2022 The term Silicon Valley has become synon- ymous with a global centre of high-tech research, innovation and enterprise. The use, or rather over-use of ‘Silicon Valley’ in recent years signi es the importance of this famous region in Northern California, but what has become increasingly clear is that the MENA region has fast become a competitor to leap ahead of such a well-known location for inno- vation, with new tech hubs such as Hub7 , Abu Dhabi’s global tech ecosystem, enabling the growth of startups. Dubai, Riyadh are global rivals to Silicon Valley: Here’s why The Middle East region is an incubator for talent, with startups having access to a vibrant ecosystem with an abundance of enthusiasm 15,164 The number of new jobs generated in Dubai through FDI investments and projects in the rst half of 2022 Attracting innovation Dubai (pictured) and Riyadh are overtaking rivals to attract the world’s most exciting and innovative tech startups Silicon Valley came about thanks to the happy union of several key factors, including an educated workforce, a highly developed science and technology research base drawn from leading universities and abundant venture capital, leading to solutions for some of the world’s most pressing problems. Cities from Dubai to Riyadh are now over- taking rivals to attract the world’s most exciting and innovative tech startups and establish their place as global leaders of technological inno- vation. It has become an often-coined phrase that Dubai is the ‘Silicon Valley of the Middle East’ as it nurtures global entrepreneurs and creates the economy that enables them to achieve success. The region is an incubator for talent, with startups having access to a vibrant ecosystem and is a great example of where there is an abundance of enthusiasm for enterprise across the region. As one of the youngest global innovation hubs with its Dubai Silicon Oasis buzzing with new technology, the Middle East is drawing some of the leading entrepreneurs and investors who are looking to elevate their ideas to the next level. BY EVIE BOUSTANTZI , PRESIDENT OF THE GULF ASSOCIATION SPOTLIGHT |Next >