UAE AED 15 KSA SAR 15 BAHRAIN BHD 1.500 OMAN OMR 1.500 KUWAIT KWD 1.200 QATAR QAR 15 Inclusive of VAT An ITP Media Group Publication Inside Princess Rym Ali’s mission to rewrite the narrative of Arab media The AI impact SaSSSS udi’s new stadiums Cinematic gems FaFaFaFaF shion and finance ABE_2510_01_Front Cover_13350286.indd 128/08/2024 17:23Join the #1 financial centre for accessing more growth opportunities When you join the number one global financial centre in the Middle East, Africa and South Asia, the growth opportunities are endless. 6,000 financial firms; FinTech and innovation businesses; family offices; institutions; and service providers use DIFC as their home to access the region. They employee more than 43,000 people in the Centre who are committed to driving the future of finance. 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Join the number one: difc.ae/business/make-an-enquiryarabianbusiness.com3 48 Contents September 2024 THE ROYAL STORYTELLER HRH Princess Rym Ali on media, movies and making a difference COVER STORY FINANCE Fortifying the future The UAE’s new Federal Decree- Law aims to further strengthen the country’s legal framework in support of the authorities’ efforts to combat financial crimes FILMS Cinematic gems of the Middle East From early works to contemporary masterpieces, we explore the region’s diverse and award-winning films INVESTMENT Fashion and finance With a history of steady appreciation and a growing global market, luxury handbags are proving to be more than just fashion statements 62 5612 666666666666666666666666666666666666666662 ABE_2510_03_Contents_13352303.indd 328/08/2024 17:324 Vol. 25/10, September 2024 SUBSCRIBE NO W www.itp.com/subscriptions +971 4 4443000 EXPERT VIEWS EXCLUSIVE INTERVIEWS INDEPTH NEWS PUBLISHED BY AND © 2024 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 Off ices in KSA, UAE, UK, US, and INDIA ITP MEDIA GROUP CEO Ali Akawi MANAGING DIRECTOR Marne Schwartz MANAGING DIRECTOR Anil Bhoyrul EDITORIAL EDITOR-IN-CHIEF Rob Corder, rob.corder@itp.com EDITORIAL DIRECTOR Matthew Amlot, + 971 4 444 3264, matthew.amlot@itp.com HEAD OF CONTENT Kate-Lynne Wolmarans, +971 4 444 3541, kate.wolmarans@itp.com SUB EDITOR Edward Liamzon, +971 4 444 3474, edward.liamzon@itp.com ARABIANBUSINESS.COM EDITOR AT LARGE Will Milner DESIGN SENIOR DESIGN MANAGER Geri Batara Sonny ART DIRECTOR Mohammed Irqsosy PRODUCTION PRODUCTION MANAGER Gijo Thomas SENIOR IMAGE EDITOR Emmalyn Robles EVENTS & MARKETING SENIOR MARKETING AND EVENTS MANAGER Anthony Chandran, +971 4 444 3685, anthony.chandran@itp.com SENIOR EVENTS MANAGER Shivangi Roy, +971 4 444 3460, shivangi.roy@itp.com DISTRIBUTION HEAD OF DISTRIBUTION AND NEWSTRADE Abdulrahim Alparambil DISTRIBUTION COORDINATOR Avinash Pereira CIRCULATION EXECUTIVE Rajesh Pillai ADVERTISING GENERAL MANAGER Mirei Avdou, +971 4 444 3215, mirei.avdou@itp.com GROUP COMMERCIAL MANAGER Neha Sikri, +971 4 444 3353, neha.sikri@itp.com SENIOR COMMERCIAL MANAGER Samir Glor, +971 4 444 3320, samir.glor@itp.com COMMERCIAL MANAGER Pallavi Choudhary +971 4 444 3359, pallavi.choudhary@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.com ABE_2510_04_Flannel_13352296.indd 428/08/2024 17:31arabianbusiness.com 5 Column Lebanon’s economy: A Ponzi scheme from start to finish N o one should underestimate the devastat- ing impact the current conflict is having on Lebanon – on both lives and liveli- hoods. Thousands are fleeing the country, and over $1.5bn in infrastructure damage has left a crisis- torn nation on its knees. However, when it comes to the catastrophic economy, the war and ongoing cycles of conflict have only exacerbated the problem. The real culprits are not bullets but banks. As Tala Michel Issa’s excellent reporting on our website revealed, “Lebanon, once hailed as the ‘Switzerland of the Middle East,’ now stands as a cautionary tale of economic mismanagement and systemic failure. At the heart of this crisis lies a staggering $100bn outflow, which has crip- pled the Levantine nation’s economy, leading to what the World Bank has described as one of the wor st economic cr ises globally since the mid-19th century.” It is a classic Ponzi scheme, led by the Central Bank that has destroyed GDP and left 80 percent of the population below the poverty line. The Banque du Liban’s offering of high interest rates to commercial banks attracted significant customer deposits, which were then used to finance the deficit and maintain a massively overvalued exchange rate. Between 2003 and 2019, the country’s outflows exceeded inflows by a staggering $100bn. Like any Ponzi scheme, it worked brilliantly until the music stopped – regional instability increased, and remittances slowed. The commer- cial banks are also to blame for investing a substan- tial portion of their clients’ funds into the central bank. Combine this with successive governments specialising in fiscal mismanagement, a disastrous and bloated public sector, and rampant corruption, and this is the result. Since October 2019, GDP has contracted by 60 percent, the Lebanese pound has depreciated by 98 percent, inflation has risen by a cumulative 6,000 percent, and unemployment has surged to 30 percent. How will this be fixed? Sadly, neither easily nor quickly. The International Monetary Fund (IMF) appeared close to offering a bailout last year, but even they have since withdrawn. The latest conflict has only worsened the situation. When the IMF pulls out, you know you’re in trouble. In economic terms, any high school student could explain the way forward – control inflation, restructure the banking sector, reduce debt, attract new foreign investment, support the private sector, and dismantle monopolies. Unfortunately, it seems like even the coun- tr y’s high school economics students have decided to pull out. — Arabian Business Editorial Board ABE_2510_05_Editorial column_13352302.indd 528/08/2024 17:326 Vol. 25/10, September 2024 Temu bleeds money per sale, says SHEIN in lawsuit The fast-fashion giants face off in a courtroom clash that could reshape the industry Trending Temu’s business strategy heavily relies on deceptive practices. According to SHEIN’s lawsuit, Temu lures US consumers with ultra-low prices but sustains massive losses on each sale. The real controversy, however, centres around how Temu allegedly recoups these losses. SHEIN claims that Temu encour- ages sellers to copy other brands’ designs and flood the market with counterfeits. Even more alarming, the lawsuit states that Temu blocks efforts to remove infringing products, even when sellers admit to the violations. SHEIN’s lawsuit is direct in its accu- sations, stating that Temu “brazenly” promotes intellectual property violations. “Temu draws US consumers into down- loading and using its mobile application with promises of extremely low pricing. But Temu is not profiting from these sales, which are priced so low that Temu must subsidise each sale, losing money on every transaction,” the complaint The fast-fashion industry is witness- ing a legal showdown between two of its most influential players – SHEIN and Temu. Chinese ecommerce giant SHEIN has filed a lawsuit against its rapidly growing rival, Temu, accusing it of design theft, counterfeiting, and intel- lectual property infringement. Filed in the US District Court for the District of Columbia, the lawsuit alleges that Temu is “profiting from fraudulent practices while losing money on every sale.” SHEIN, known for delivering ultra- low-cost fashion at lightning speed, has become a global powerhouse through its mobile app, attracting fast-fashion enthusiasts worldwide. Temu, owned by PDD Holdings, has adopted a simi- lar approach, offering an array of low-cost products – from fashion to gadgets – quickly establishing itself as a serious competitor. However, this rapid rise has landed Temu in legal trouble with SHEIN, which claims that ABE_2510_06-09_Trending_13366648.indd 628/08/2024 17:46arabianbusiness.com 7 As the UAE continues to draw the global elite, its wealth management landscape is rapidly transforming The UAE has firmly estab- lished itself as a magnet for ultra-high-net-worth indi- viduals (UHNWIs), driven by its favourable tax regime and progres- sive regulations. Tariq Nakhooda, Country Head at IQ-EQ, notes that the UAE is shifting from a holiday destination to a permanent base for the world’s wealthiest. “We’re seeing a shift in how UHNWIs perceive the UAE. Once considered a place for holiday homes, it’s now a base of oper- ations with significant asset exposure,” Nakhooda explains. As global million- aire migration is set to reach 128,000 this year – up from just 57,000 a decade ago –the UAE is benefiting immensely. The coun- try is now home to 116,500 million- aires, 308 centi-millionaires, and 20 billionaires. This surge is transforming local industries, from real estate to legal services. Nakhooda attributes this shift to the UAE’s clear regulatory frame- work. “The UAE’s stable environment offers certainty to high-net-worth families seeking a permanent base,” he says. This environment is driving investment across various sectors, including real estate, business enter- prises, and private banking. The number of UHNWIs in the Middle East is projected to rise by 30 percent by 2028, according to Knight Frank’s 2024 Wealth Report. Dubai’s real estate market is booming, with approximately 26,154 new homes are expected to hit the Dubai market this year, with another 32,667 units antici- pated in 2025. High-end properties in areas like Palm Jumeirah and Emirates Hills are seeing significant demand. UAE, the new home for ultra- high-net-worth individuals reads. SHEIN argues that Temu offsets these losses by allowing counterfeit goods to flourish on its platform. However, SHEIN is no stranger to controversy. The company itself has faced numerous lawsuits over intellectual prop- erty theft. Brands such as Levi Strauss and H&M, as well as independent artists, have accused SHEIN of copying their designs. This irony isn’t lost on industry observers, who note that SHEIN’s legal battle against Temu mirrors some of its own ongoing disputes. The rivalry between these two fast-fashion titans goes beyond accusa- tions of counterfeiting. Last year, Temu launched its own legal attack, accusing SHEIN of using “mafia-style” tactics to dominate suppliers. According to Temu, SHEIN allegedly coerced suppliers into exclusive agreements, preventing them from working with competitors like Temu. This strangle- hold on the supply chain, Temu claims, is designed to stifle competition. In response, SHEIN’s latest lawsuit includes claims of trade secret theft. The company alleges that a former SHEIN employee, now working for Temu, leaked sensitive information about top-selling products and internal pricing strategies. According to the complaint, Temu used this information to help its sellers produce knock-offs and undercut SHEIN in the marketplace. Both companies have risen to prom- inence by leveraging China’s vast manu- facturing capabilities, offering ultra-low prices that disrupt traditional retail. However, their business models have drawn criticism for labour violations, environmental damage, and links to the Chinese government. The rise of Temu has placed it on a collision course with SHEIN, a battle that has now reached the courtroom. This lawsuit highlights a broader issue in the fast-fashion industry: The erosion of ethical lines in the race for market dominance. As both compa- nies face scrutiny for their aggressive tactics, this legal fight is about much more than stolen designs – it’s a strug- gle for global dominance in a fiercely competitive industry. Nakhooda also highlights the region’s world-class infrastructure as a key factor in attracting UHNWIs. “Gulf nations have long invested in top-tier infrastructure, raising the bar for quality of life and drawing the wealthy,” he says. Tax incentives remain a major draw, with no personal income tax, capital gains tax, or inheritance tax, making the UAE highly appealing for wealth pres- ervation. Regulatory reforms, such as the DIFC’s Family Arrange- ments Regulations, are also boosting the UAE’s appeal to family offices manag- ing billions in assets. These offices are increasingly investing in commercial real estate, private equity, venture capital, and hedge funds, with assets under manage- ment (AUM) projected to surpass $500bn by 2025. The UAE’s appeal is bolstered by initiatives like the Golden and Green Visas, aimed at attracting global talent to meet the demands of UHNWIs. Nakhooda stresses the importance of these programmes, alongside invest- ments in higher education, to ensure talent availability. However, geopolitical factors, including instability in Russia and China, are also driving UHNWIs to the UAE. “Dubai’s strategic location and stability make it a prime destination for UHNWIs fleeing uncertainty,” Nakhooda adds. Dubai now hosts 72,500 resident millionaires – a 78 percent increase over the past decade. While Nakhooda acknowledges that geopolitical conflicts or oil price shocks could impact growth, the UAE’s ongoing investments and regulatory adaptabil- ity ensure it remains a global wealth hub for the foreseeable future. ABE_2510_06-09_Trending_13366648.indd 728/08/2024 17:468 Vol. 25/10, September 2024 The Kingdom of Saudi Arabia is undergoing a seismic shift in its economic landscape, and at the heart of this transformation lies the Vision 2030 initiative. Launched in 2016 by Crown Prince Mohammed bin Salman, Vision 2030 is a blueprint designed to diversify the economy, reduce dependence on oil revenues, and transform the country into a global investment hub. And driving much of this vision forward is the Public Invest- ment Fund (PIF), Saudi Arabia’s sover- eign wealth fund. With over $765bn in assets under management, PIF has been instrumental in reshaping Saudi Arabia’s economy How Saudi Arabia’s PIF is powering job creation The PIF, with over $765bn in assets under management, has been instru- mental in reshaping Saudi Arabia’s economy, and more crucially, in creating jobs on an unprecedented scale. Accord- ing to the fund’s annual report for 2023, PIF has generated over 730,000 jobs, a testament to its role as a cornerstone in the nation’s economic diversification. The PIF, established in 1971, has evolved from a domestic financial insti- tution into a global investment giant. Under the leadership of Governor Yasir Al Rumayyan, the fund has emerged as one of the world’s most powerful sover- eign wealth funds, ranked sixth globally. The fund’s primary focus is to act as a catalyst for economic change, a role which has become even more pronounced under Vision 2030. The PIF has aggressively pursued invest- ments that diversify the Saudi economy, focusing on high-impact sectors like tourism, technology, and infrastructure, all designed to propel the Kingdom into a post-oil era. “In a year marked by remarkable achievements, PIF has steadfastly delivered on its mandate as the driving force of Saudi Arabia’s sustainable economic transformation,” said Al Rumayyan in a statement. “With bold vision and increasing global reach, PIF continues to be a key player in Saudi Arabia’s quest to diversify its economy and position itself as a leader in future industries.” The PIF’s strategy has resulted in substantial job creation. Among its most significant projects is Riyadh Air, a new airline poised to contribute $20 billion to non-oil GDP while generat- ing over 200,000 direct and indirect jobs. Riyadh Air is part of the broader Vision 2030 goal of transforming Saudi Arabia into a major global trans- port and logistics hub. Similarly, Qiddiya City, a vast enter- tainment and cultural destination under development just outside Riyadh, is expected to generate more than 325,000 permanent jobs. As part of the fund’s giga-projects, Qiddiya represents the kingdom’s push to develop new sectors that not only attract global tour- ism but also provide long-term employ- ment opportunities for its citizens. These projects are just a snapshot of the PIF’s broader efforts. The fund’s portfolio also includes companies like The Saudi Company for Artificial Intelligence and Ardara, both of which are at the cutting-edge of technology and innovation, key areas that Vision 2030 seeks to foster. Additionally, PIF-backed companies such as The National Unified Procurement Trending ABE_2510_06-09_Trending_13366648.indd 828/08/2024 17:46arabianbusiness.com9 ‘It’s Glowtime’ promises new AI advancements and cutting-edge hardware upgrades Apple’s iPhone 16 set to launch in September Apple is set to light up the tech world once again, with the highly anticipated launch of its iPhone 16 series, scheduled for September 9 at the iconic Steve Jobs Theatre in Cupertino. Themed ‘It’s Glowtime’, the event hints at signifi- cant advancements to Siri, Apple’s virtual assistant, which will be featured across its latest product line-up. Initially slated for September 10, Apple has moved the date forward to avoid clashing with the US presidential debate between Vice President Kamala Harris and Donald Trump. This slight shift has only heightened the anticipa- tion, as insiders suggest Apple has plenty to unveil. According to reports from Bloomb- erg, the iPhone 16 Pro will boast larger displays and enhanced camera capabil- ities, including a dedicated photo button, elevating Apple’s status in mobile photography. However, the real star of the show is expected to be ‘Apple Intelligence’ – the company’s foray into advanced AI, which will be a defining feature across the new iPhones. Apple aims to integrate AI in ways that reshape the user experience, offering smarter, more intuitive interactions. Beyond the iPhones, Apple will intro- duce new Apple Watch models, including a larger screen version and a plastic iter- ation of the budget-friendly Watch SE. Music lovers can also look forward to two new AirPods models, with noise cancel- lation making its way to the mid-range AirPods for the first time. As the world watches, Apple once again proves that innovation never sleeps in Cupertino. Company (NUPCO) are also expected to contribute to job creation, support- ing the country’s healthcare and logis- tics sectors. Vision 2030 remains the North Star guiding PIF’s actions. The initiative seeks to modernise the Saudi economy, stimulate innovation, and turn the king- dom into a leading global investment destination. With that in mind, PIF is not only focused on job creation but also on boosting the non-oil economy, increasing local content, and enhancing foreign direct investment. PIF aims to grow its assets under management to $1.06tr by 2025, and to contribute $320bn to non-oil GDP by 2025. It could be considered a big goal, but it’s one that seems increasingly attainable given the fund’s track record of success and relentless drive to invest in sectors that stimulate economic diversification. “Increasing non-oil GDP is crucial to the kingdom’s future, and PIF is playing a central role in making that happen,” Al Rumayyan said. “Our projects are not just about short-term financial returns; they are about long- term, sustainable growth for Saudi Arabia and its people.” As the kingdom pushes ahead with Vision 2030, PIF’s impact is becoming ever more significant. Its investments are reshaping Saudi Arabia’s infra- structure, building new industries, and transforming the nation into a magnet for international capital. The creation of over 730,000 jobs is a milestone, but the goals of Vision 2030 stretch even further. Looking ahead, the PIF’s plans are nothing short of monumental. By 2030, the fund aims to generate over $320bn in non-oil GDP, contribute 60 percent to local content, and increase non-gov- ernmental investment by $320bn – spanning local and international markets. With such goals in place, the PIF is ensuring that Saudi Arabia’s economic landscape will continue to diversify, offering new opportunities for both its people and global investors. Trending ABE_2510_06-09_Trending_13366648.indd 928/08/2024 17:46Next >