< PreviousOver 380,000 threats per day 1 cybersecurity ecosystem defends against them all Your IT security is always one step ahead with Kaspersky Enterprise solutions. Our technology anticipates unprecedented threats before they happen, giving your organization complete peace of mind in an ever-changing landscape. Scan to continue the story:12 economic plans that have been laid out under vision ̛̙3̙, are not only attrac- tive for investors who already have a footprint in this region but also for global companies as well. Social and economic reforms The National Transformation Programme is about halfway through its ƅ ve-year goals under Saudi Vision ̛̙3̙, a radical economic and social reform plan that was introduced by the government and we all witnessed its launch in ̛̙̚6. It is e Ƃ ectively imple- menting social and economic reforms that are distinctly reshaping the king- dom. I predict that Saudi Arabia will be one of the main growth engines of the Middle East over the coming decade. The country has recently announced a series of reforms to liberalise its econ- omy and encourage more foreign direct investment. This includes reducing restrictions on foreign ownership and loosening religious constraints on dress codes and social customs. Now is a good time for businesses to expand into Saudi Arabia Region’s biggest economy Saudi Arabia’s GDP is estimated to grow by 7.6 percent this year, according to the IMF F or myself and many others like me, Saudi Arabia has long been a preferred destination for investment due to its size, proximity and audience capacity. However, in recent years we have seen the country’s plans to diversify away from oil and broaden its economy. These changes will have a signiƅ cant impact on how businesses operate and also bring multiple opportunities as Saudi Arabia is looking to develop a more busi- ness-friendly environment and attracting business owners like me. Keeping the economic expansion road map in mind, it was a no-brainer to expand OWS Automotive in the kingdom. Rapid growth will be ignited by the country’s extensive infrastruc- ture development and economic reforms. It won’t just be OWS Automo- tive but also businesses under OWS Capital will plan its strategic expansion into Saudi Arabia over the course of the next ƅ ve years. As a business owner, the social and Rapid growth will be ignited by the kingdom’s extensive infrastructure development and economic reforms COMMENT | Oweis Zahran , CEO of OWS Capital Vol. 23/11/1, November 2022arabianbusiness.com 13 COMMENT The social and economic plans that have been laid out under vision 20̜0, are not only attractive for investors who already have a footprint in this region but also for global companies as well beachfront location, are causing a rise in the demand for houses in the region. People are buying here as an invest- ment with the plan to rent the property out or buy second homes, as a beach- front getaway. To help these rising numbers of property investors, KAEC has, on its part, introduced a number of perks. For instance, during the month of August, KAEC ran a promotion dubbed “Own a Turquoise View and Get a Car Free.” As the name implies, this campaign provided a free car in exchange for buying a property, with flexible, zero percent interest, five- year payment plans, and low 20 percent down payments. I don’t know of any other similar campaign in the region and I think it’s a great way to illustrate Saudi’s future thinking and its grand plan. The kingdom is really serious about attracting both locals and expats to the area. Game changer I can’t mention their future grand plans without dropping in that KAEC may very soon be the home to the hotly anticipated Hyperloop, from Califor- nia-based Virgin Hyperloop One. Virgin Hyperloop One is pursuing rela- tionships with the nearby King Abdul- lah University of Science and Technol- ogy (KAUST), which suggests that KAEC could play a significant role in the development of the technology. This will be game-changing for Saudi as a whole, not just KAEC. We are so used to seeing ground-breaking tech or scientific discoveries in other countries such as the US or UK, it’s about time we had the same recognition in the Middle East. Exciting times! So, with major international golf tournaments, global companies setting up their o ƃ ces, a logistics hub and a developing residential market, and so much more, it seems that KAEC is fast becoming the destination to show the world what Saudi Arabia is capable of and driving forward the incredible Saudi Vision 20̜0. $133,000 The minimum capital investment for a limited liability company in Saudi Arabia Growth market OWS Capital is planning its strategic expansion into Saudi Arabia over the next ƒ ve years Fastest growing economy The International Monetary Fund (IMF) predicted that the kingdom will have one of the fastest-growing economies in the world by 2022 earlier this year. It revised its annual prediction and now anticipates that its GDP would grow by 7.6 percent, the strongest rate in more than a decade. According to the IMF, the kingdom must continue its reform trajectory. The ongoing execution of Vision 20̜0 and related policies will aid in the modernisation and diversity of the economy, paving the path for stronger and more consistent growth in the economy. I would advise businesses seeking growth opportunities to see Saudi Arabia as an increasingly attrac- tive option given its unique position in the Arab world: if you want to tap into the Middle East market without having language or cultural barriers, then now is the time for your company to expand into Saudi Arabia. Foreign ƅ rms working in the king- dom can choose from a number of business formations, including subsidiary companies, branch o ƃ ces, joint stock companies, and technical and scientiƅ c services o ƃ ces (TSOs), each with its own beneƅ ts, prerequi- sites, and distinctive commercial activities and registration require- ments. The most popular form of business entity created by foreign investors entering the Saudi market is a limited liability company (LLC), which can have as few as two share- holders and as many as 50 owners with a minimum capital investment of about $̜̜̚,̚00 (SAR500,000). The country has a young popula- tion, with two-thirds of the popula- tion being under ̜5*, and a high level of education, making it an attractive market for businesses looking to grow. I foresee that the private sector will be an increasingly important driver of economic activity, with increased investment in non-oil sectors such as construction, telecommunications, and transportation infrastructure in an e Ƃ ort to boost economic activity and create jobs for Saudi citizens as well as entice expats over. KAEC – The economic frontier I just see so much potential in the Saudi market, and that’s what I ƅ nd fascinat- ing about King Abdullah Economic City (or KAEC for short), which launched in 2005 and is at only 40 percent complete. Yet, it is still attracting international sports events and global companies. Part of KAEC’s strategy for success is to establish a reputation as a centre for “elite” sports, attracting tourists with unique activities that are hard to ƅ nd in other places. Also, through its thriving King Abdullah Port being rated the second fastest growing port in the world by Alphaliner in 20̚8, KAEC has mostly beneƅ ted from its expanding position in logistics and efforts to draw in foreign companies. Existing companies include Swedish retailer IKEA, the pharma giant Pfizer, the French oil ƅ rm Total, and the chocolate maker Mars. We are seeing that these compa- nies, along with KAEC’s excellent 14 Becoming aware of the problem is more than half the battle. This process will vary, as the bias mani- fests itself in different ways for di Ƃ erent people. Some might under allocate to equities or refuse to touch principal, thereby exposing them- selves to unintended risk in search of income. Others may sell investments impulsively to raise cash when markets are volatile. While the behaviour may vary, the underlying bias essentially remains the same. Once we recognise how an intense aversion to loss might a Ƃ ect our deci- sions, we can take action to address the issue. Retirees fare best when they endeavour to be deliberate and make informed, empowered deci- sions regarding how they wish to navigate the process of retirement decumulation. Here are some specific steps potential retirees can take to protect themselves from hyper loss aversion. How to prepare for retirement by confront biases Life after work One challenge retirees face is the shift from accumulating to decumulating assets – which can be a tricky process A ccording to a recent survey, ̝5 percent of UAE residents say that they have not yet started saving for retirement. Retirement is a delicate transition. As we move into this new life stage, one challenge we face is the shift from accumulating to decumulating assets, which can be a tricky emotional and financial process. After accumulating our wealth over many years, we’re now beginning to spend it down. A complicating factor is what economists call “loss aversion”. We are all prone to experiencing the pain of an actual or anticipated loss more acutely than we would feel the joy of a similar-sized gain. According to some studies, retirees are ƅ ve times more sensitive to losses than non-re- tirees; i.e., they are hyper loss averse. This is problematic, as hyper loss aversion can lead to suboptimal deci- sion making. Planning your spending and acknowledging your emotions are important factors to ensure a happy retirement COMMENT | Daniel Fleming, Managing Director and Head of Wealth Advisory for MENA region for JP Morgan Vol. 23/11/1, November 202216 It is critical to be clear about your resources and expenditures to determine just how much you can spend during your retirement outweighs the ƅ nancial ROI. Here it is crucial to acknowledge why we’re making such a decision and consider its potential impact on future decisions. Similarly, one might consciously choose to take on less risk in their investments to avoid the unease you experienced in volatile markets. They accept that this decision might entail a potential tradeo Ƃ where they could potentially be leaving their beneƅ cia- ries with a smaller legacy, and that’s acceptable to them. On the other hand, they might consider the long-term effects of a reduced risk proƅ le in their portfolio and conclude that they are willing to accept the discomfort they might feel in volatile markets. In this case, the ƅ nancial ROI prevails. Learning to make the best retirement decisions The life chapter of retirement requires us to make new decisions and confront new realities. Making the transition from accumulating to decumulating assets is one reality. It’s never a simple process, and hyper loss aversion can often be a complicating factor. However, when we are aware of our biases, and take steps to address them, we can be more intentional about our choices and, ultimately, make better decisions. 25 TH The UAE pension system’s worldwide ranking in the Mercer CFA Institute Global Pension Index New realities The life chapter of retirement requires us to make new decisions Expect spending to change in retirement The ƅ rst step in addressing hyper loss aversion is to create a goals-based ƅ nancial strategy that individuals can revisit and reset at retirement to ensure coverage of expected long- term outƆ ows – university costs for your youngest child, a wedding for your oldest or a passion purchase like a car or boat. Retirees must be delib- erate about their objectives—they may want to spend all of their wealth during their own lifetime, or they may want to prioritise their legacy for future generations. Most importantly, managing emotions when markets head south. Once there is a strategy in place, retirees can then assess if their resources are aligned with their intentions. Do you they have enough, more than enough, or not enough? When considering the transition from accumulating to decumulating assets, it is critical to be clear about your resources and expenditures to determine just how much you can spend during your retirement. Build a plan to prepare for spending Systems and structures can help limit the bias towards hyper loss aversion. Separating assets that are designed to be spent down in your lifetime from assets that are meant to last beyond your lifetime can go a long way to ward- ing o Ƃ hyper loss aversion and help with your retirement ƅ nancial planning. Other approaches can address the mixed emotions shared by retirees and those nearing retirement. One helpful method for coping with the retirement transition is to recreate the experience of a monthly paycheck. For example, retirees might pay monthly distributions to their bank account from their portfolio. It makes sense to plan one’s withdrawal strategy ahead of time and determine how to turn one’s portfolio into an income stream. This way retirees can feel empowered rather than guilty about accepting a distribution. In other words, they have a strategy for their wealth and are allocating their resources accordingly. Acknowledge your emotions – don’t deny them It is often believed that we should avoid making financial decisions based on our emotions, however, that’s not necessarily true. There are emotional and psychological elements to every financial decision. These biases can be exploited to our advan- tage, as opposed to attempting to eliminate them or pretending they do not exist. When you acknowledge them and weigh their respective returns on investment (ROI), it can help you make decisions that align with your values and goals. Maybe financial models indicate that keeping your mortgage in retire- ment makes quantitative sense, but you know you’ll sleep better if you pay o Ƃ the debt. In this case, the emotional ROI Vol. 23/11/1, November 2022Presenting PartnersAssociation PartnersOrganised By DFCArabianBusienssEnglish200x265mm.indd124/10/202211:55AM18 Al-Futtaim Malls and Yardi collaborate to advance a wider digital transformation journey How Yardi’s end-to-end solution streamlined and automated processes for Al-Futtaim Malls Dubai Festival City Mall SPOTLIGHT | D iscover how Yardi’s solution helped Al-Futtaim Malls save over 30 hours of data gather- ing and strategic planning per budget- ing cycle. The company “Al-Futtaim Malls is committed to enriching the lives of our customers by offering the world’s best brands along with world-class customer service and after-sales support.” Al-Futtaim Malls provides asset Vol. 23/11/1, November 2022arabianbusiness.com 19 knowledge of the retail sector, both from a shopper’s point of view and as curators of space or landlords to other brands. The company has a directly managed portfolio, including over 9 million square feet of retail space across four malls in the MENA region and two under development. Malls under the Al-Futtaim Malls portfolio include Dubai Festival City Mall and Festival Plaza in the UAE, Cairo Festival City Mall in Egypt and Doha Festival City in Qatar. The challenge Al-Futtaim Malls originally relied on disparate tools and manually gathering data became a challenge across multi- ple revenue sources. The company needed a solution that would allow it to access reports on its budgeted monthly revenue stream, area occu- pancy and future cash Ɔ ows to support planning initiatives for its team. Al-Futtaim Malls required Ɔ exible renewal and new lease options for vari- ous leasing scenarios. This was crucial to the team’s strategy due to the dynamic nature of the real estate industry. Having several innovative and creative deals being negotiated, it was essential for the company to have a platform that would scale with them as they grew. The company wanted an end-to-end solution to help Al-Fut- taim Malls automate processes and move away from multiple systems. The solution Al-Futtaim Malls implemented Yardi’s solution for budgeting and forecasting as part of its wider digital transforma- tion strategy. The innovative technol- ogy continuously measures the ƅ nan- cial health of its real estate investments. It replaces labour-intensive, error- prone spreadsheets and delivers quick, accurate budgets, customer forecasts and valuations from a single connected platform. The company has made signiƅ cant progress on Yardi’s solution for budgeting and forecasting and has shown how Yardi’s technology can help multiple shopping malls prosper. | SPOTLIGHT 5 hours saved Gathering data for occupancy cost ratios, sales projections and budget consolidation 2.5 hours saved Streamlining revenue calculation process 10 hours saved Removing manual data cleansing and integration 15 hours saved In occupancy data compilation connected to budget assumptions management and development exper- tise, specialising in building retail- led super-regional malls in prime locations across MENA and beyond. With a proven track record of creating both sustainable revenue growth and value enhancement for tenants, the company delivers excep- tional experiences and exciting shopping environments for customers. Part of the Al-Futtaim Group, Al-Futtaim Malls’ leadership team brings more than 30 years of experi- ence and a deep understanding and Yardi’s solution for budgeting and forecasting not only saves time during planning cycles but also promotes user accountability, data reliability and represents one source of truth for forecast and budget revenue. The output is also customised as per our needs and we could not be more grateful for that Ian Mollon, General Manager Retail Finance & Investment at Al-Futtaim Gratiela Duciuc, Regional Retail AnalystNext >