March 2023 How Ahmed Abdelaal turned the bank into a digital star MASHREQ MAGICExplore more difc Future of Private Wealth and Family Businesses starts here.arabianbusiness.com 3 Contents March 2023 www.arabianbusiness.comSUBSCRIBE NOW +971 4444 3000 www.itp.com/subscription arabianbusiness#arabianbusinessarabianbusiness FEAT URE Blockchain and sustainability Blockchain technology, can it help to make the UAE Greener? 14 TREND MENA startup trends The rise of industries and the fall of individual hero tales – a deeper look into this year’s MENA startup trends 08 26 30 FEAT URE Future of Private Equity in the Middle East With the rise in investment in cryptocurrency and blockchain technology, many are wondering what the future of private equity holds for the Middle East Interview with Mashreq Group CEO, Ahmed Abdelaal The powerhouse pushing Mashreq’s revolutionary digital mission forward CO VER ST OR YFIRST WORD | Kate-Lynne Wolmarans, Editor 4 AB FINANCE March 2023 Money moves 4.2% The projected GDP growth of the UAE for 2023, according to reports by the IMF Hello and welcome to Arabian Business’ dedicated nance supplement, where we shine a much-de- served light on the many trends, announcements and professionals shaping the world of GCC nance. For our cover story, we dive deep into the world of Mashreq, the UAE’s oldest privately-owned bank that is revolutionising the world of banking as we know it. To help us get a better idea of how it’s doing just that, we sat with Mashreq’s Group CEO, Ahmed Abelaal, who shared on all things past, present and future – spoiler, expect more great digital innovation and change that is sure to change the game, for the good. Entrepreneurs looking to set up shop in the UAE, we’re got news for you. In fact, our ve-page trend story is quite literally equipped with all of the information that you and your business need to succeed this year. A quick sneak peek – sustainability and industry impact have proven vital for entrepreneurs looking to start and expand in the region. For tech savvy nancers and investors looking to go green, blockchain appears to be the way to do it. Studies have found that blockchain does in fact have the ability to signi cantly increase the transparency of environmental projects and it can also be used to help reduce carbon footprint from origin to nal product. Elsewhere, we look at gami cation – more speci cally the current rise experienced in investment gami cation. Which is due in part to the many design enhancements that are encouraging investors to copy popular traders. Technology aside, real-estate continues to dominate the UAE’s market, with reports indicating an increasing surge in the luxury property segment. The cause? High- net-worth individuals and millionaires are proving particularly fond of the nation’s exclusive and high-end properties. Last, but not least, we take a detailed look at the future of private equity in the Middle East. For those wondering, the majority of private capital, held primarily by sovereign wealth funds, have been particularly active. A fact that we found quite fun? The Middle East is home to 27 sovereign wealth funds and 13 pension funds. That right – and they manage over $4.6 trillion in capital, thus far. AB FINANCE March 2023 5 SUBSCRIBE NOW www.itp.com/subscriptions +971 4 4443000 VIEWS Dynasty From luxury to real estate: Inside the world of Abbas Sajwani UAE: AED 15 KSA: SAR 15 BAHRAIN: BHD 1.500 OMAN: OMR 1.500 KUWAIT: KWD 1.200 Inclusive of VAT #24/01 • January 2023 interviews Learning from life How Sunny Varkey created a global education empire #23/12 • December 2022 UAE: AED 15 KSA: SAR 15 BAHRAIN: BHD 1.500 OMAN: OMR 1.500 KUWAIT: KWD 1.200 Inclusive of VAT INDEPTH NEWS #24/02 • February 2023 UAE: AED 15 KSA: SAR 15 BAHRAIN: BHD 1.500 OMAN: OMR 1.500 KUWAIT: KWD 1.200 Inclusive of VAT The unstoppable mind and machine behind a billion-dollar global restaurant empire PUBLISHED BY AND © 2023 ITP MEDIA GROUP FZ-LLC. 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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 DEPUTY MANAGING DIRECTOR Anil Bhoyrul EDITORIAL EDITOR-IN-CHIEF Rob Corder, rob.corder@itp.com MANAGING EDITOR Matthew Amlot, + 971 4 444 3264, matthew.amlot@itp.com SUB EDITOR Edward Liamzon, +971 4 444 3474, edward.liamzon@itp.com ARABIANBUSINESS.COM INDIA EDITOR James Mathew DESIGN SENIOR DESIGN MANAGER Geri Batara Sonny DESIGNER Mohammed Irqsosy STUDIO VIDEOGRAPHER Muhammad Kaleem PHOTOGRAPHER Marwan Elsayed VIDEO EDITOR Liju Cheruvathur PRODUCTION & DISTRIBUTION PRODUCTION MANAGER Denny Kollannoor PRODUCTION COORDINATOR Mahendra Pawar SENIOR IMAGE EDITOR Emmalyn Robles EVENTS & MARKETING DIRECTOR OF AWARDS & MARKETING Daniel Fewtrell, +971 4 444 3684, daniel fewtrell@itp.com CIRCULATION DISTRIBUTION COORDINATOR Avinash Pereira CIRCULATION EXECUTIVE Rajesh Pillai ADVERTISING GROUP COMMERCIAL DIRECTOR Saraswati Agarwal, +971 4 444 3352, saraswati.agarwal@itp.com SENIOR COMMERCIAL MANAGER Mansi Khatwani, +971 4 444 3242, mansi.khatwani@itp.com COMMERCIAL MANAGER Samir Glor, +971 4 444 3320, Samir.Glor@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.com6 AB FINANCE March 2023 FEAT URE | REAL ESTATE The luxury e ect on the UAE’s property market The luxury market will continue to grow with a 13.5 percent yearly increase in 2023 Luxury property The real estate market in Dubai will remain resilient throughout 2023 BY STAFF WRITER The real estate market in Dubai has been a key driver of the UAE’s economic growth over the past few decades as it attracts investors worldwide with its luxurious developments and tax-free environ- ment. The sector has experienced signi cant growth in recent years, with soaring property prices, and new resi- dential and commercial projects. According to Hatem ElSafty, the Founder and CEO of Business Link, arabianbusiness.com 7 REAL ESTATE | FEAT URE 61% The growth percentage of the UAE’s property market in 2022, according to Unique Properties this resilience is only set to continue well into 2023. “As a business setup consultancy, we have seen a boost in the real estate and tourism licenses issued this year. Dubai’s strong portfolio attracts foreign investors and entrepreneurs to join the emirate’s booming prop- erty sector as they want to set up their business operations in the UAE,” ElSafty explained. According to ElSafty, the UAE’s real estate market will continue to thrive due to the rising demand from high-net-worth individuals (HNWIs) and millionaires, especially in the luxury segment. The gures Zoom Property Insights data indi- cates that the luxury market will continue to grow in 2023, with a 13.5 percent yearly increase. The numbers suggest that the property market is showing no signs of slowing down, with a sharp rise in interest from investors and buyers alike. In 2022, the market surpassed AED240 billion ($65.3 billion) – a 61 percent growth from 2021, according to Unique Properties. The factors Industry experts believe that the hype in the real estate market can be attributed to several factors, includ- ing the country’s successful COVID- 19 vaccination campaign, the Expo 2020, and the UAE’s newly imple- mented long-term visa system. These factors have boosted the country’s overall economic growth, providing a conducive environment for real estate investment. There are some concerns that the UAE’s real estate market growth may be affected due to the anticipated global recession in 2023. However, Property Finder data indicates that the fear is baseless as the sector began the New Year on a high note, with an impressive 178 percent growth in the value of real estate transactions and a 128 percent increase in sales deals in January alone. “The real estate market in Dubai the luxury segment is seeing a signif- icant surge, with HNWIs seeking exclusive and high-end properties”. Dubai’s real estate market has always been a popular choice for international investors, with its favourable tax laws, thriving econ- omy, and world-class infrastructure. However, the demand for proper- ties has soared to unprecedented levels in recent months, resulting in record-breaking sales gures. The future Real estate developers are capitalis- ing on the current market conditions, with several major projects under- way, including the “Dubai Creek Harbour” and “The Heart of Europe” developments. These projects aim to attract investors worldwide and further boost Dubai’s position as a leading investment destination. That said, and as with any transac- tion, experts advise that all invest- ments decisions should be carefully studied and granted their due diligence before proceeding – the real estate market being no exception. Dubai Creek Harbour The luxury market will continue to surge as high-net-worth individuals seek exclusive and high-end properties Both residential and commercial properties are experiencing high demand is experiencing a surge in activity and hype, with demand for properties reaching an all-time high. Investors and buyers from across the globe are ocking to the country to take advan- tage of attractive investment oppor- tunities and favourable market conditions,” ElSafty said. Adding: “The real estate boom is not limited to a particular market segment, as both residential and commercial properties are experi- encing high demand. In particular, 8 AB FINANCE March 2023 FEAT URE | BL OCK C H A IN Blockchain technology: Can it help to make the UAE greener? With the popularity of blockchain technology on the rise, analysts argue that blockchain could help stop or reverse climate change Building a green economy – the UAE has taken conscious steps to promote sustainability and its use of technology to counter climate change FEAT URE | BL OCK C H A IN BY ALI SAJWANI, MANAGING DIRECTOR OF OPERATIONS AND TECHNOLOGY AT DAMAC $16.8BN The UAE’s investment in renewable energy ventures in 70 countries around the worldarabianbusiness.com 9 BL OCK C H A IN | FEAT URE According to the latest reports by Crypto Oasis, the fastest growing blockchain ecosys- tem in the world, the UAE is home to over 1,600 blockchain organisations and has over 8,300 active employees in the sector. The eld’s rapid growth has left many in search of sustainable means of powering blockchain technology, which is known for requiring mass amounts of power to facilitate elements such as crypto veri cation and recording the ownership of NFTs. However, while many associate blockchain with the emerging crypto sector, that same technology can be used to solve some environmental problems. If adopted globally, analysts argue that it can be used to help stop or reverse climate change. Given that the unchangeable data- bases that form blockchains make it possible to track and verify transac- tions and interactions without a centralised authority, it can signi - cantly increase the transparency and e ciency of environmental projects. Additionally, it would also be possible to track environmental treaties in real-time. Blockchain technology allows for transparent tracking of critical envi- ronmental data and can readily reveal if promises and pledges are met. Once data is entered into the public block- chain, it stays there forever. Carbon taxes can also be calcu- lated, monitored and perhaps, even be used to help create a corporate reputation system in relation to emis- sion monitoring. For example, under the current system, it is di cult to assess a prod- uct’s environmental impact and its carbon footprint is usually not considered when determining a price. This means that consumers have little to no motivation to purchase goods that have a minimal carbon footprint, and as a result, business have less of a reason to market such goods. By using blockchain to track a product’s carbon footprint, we can prevent data from being altered and can use it to calculate the appropriate carbon tax to impose at the time of sale. Blockchain also allows for supply chain tracking, which helps reduce unsustainable practices and carbon footprint from origin to nal product. It does so by tracking products from manufacturer to shelf, which also helps to prevent fraud and waste as supply chains would be more trans- parent. Recycling could fall within the remit of a blockchain – by enabling a tokenised reward tracking system. O ering nancial rewards, such as Permanent Once data is entered into the public blockchain, it stays there forever Logistics Blockchain allows for supply chain tracking Transparency By using block- chain to track a product’s carbon footprint, we can prevent data from being altered For the environment Recycling could fall within the remit of a blockchainNext >