< PreviousEDITOR’S LETTER 8 CEO MIDDLE EAST 16-30 NOVEMBER 2023 Preparing for the future prompts success in the present already established two thriving attractions in Dubai and Riyadh, attracting hundreds of thousands of visitors through social experiences that bridge the physical and virtual. As the next generation of consumers expect digital engagement across all aspects of life, companies like HyperSpace point to new frontiers for branded entertainment. Elsewhere in these pages we delve into some of the less travelled paths toward expansion. Our startup feature profiles the opportunities emerging beyond traditional venture capital strongholds, from African fintech on the verge of mainstream adoption to underserved populations gaining access to services long enjoyed in the developed world. Global problems demand local solutions, and with attention comes investment - a win-win for innovators and investors alike. Speaking of viability over generations, our family business feature analyses the complex dynamics of multigenerational ownership. Succession challenges have toppled many regional conglomerates, but some secrets are emerging from those developing longevity. Intentional planning, governance restructuring and aligning legacy with future aspirations can help families balance tradition with transformation. With family-ties at the heart of the regional economy, these insights are particularly pertinent. Elsewhere, we consider wellbeing - that most fundamental ingredient for empowering individuals to thrive personally and professionally. As entrepreneurs and employees alike push boundaries in pursuit of progress, burnout has become a serious risk to be mitigated, not ignored. Our focus spotlights proactive measures like wellness programmes, flexible hours and a culture that values work-life integration. Healthy and happy employees are the lifeblood of any business. Finally, no discussion of the region’s economic drivers would be complete without reflecting on its world-leading telecommunications sector. In a special supplement, we delve into the landscape and leadership of Saudi Arabia’s digitally-enabled Vision 2030. Home to Visionary initiatives like the Digital Authority and Neom, the Kingdom is pioneering smart infrastructure build-out and positioning itself at the forefront of 6G innovation. We explore its strategy and uncover perspectives across operators, vendors, regulators and startups. With that I’ll let you get to reading. Until next time. Share your views on thought leadership and innovation by getting in touch: matthew.amlot@itp.com QUESTIONS? COMMENTS? MATTHEW AMLÔT Editor-in Chief @MatthewAmlot GRAPPLING WITH GLOBAL GROWTH A s we come to the close of another year of global uncertainty and regional opportunities, this issue of CEO Middle East set out to capture some of the prevailing themes shaping business and investment landscapes around the world. From tackling sustainability to navigating family succession, our aim was to speak to the core challenges organisations face as they seek to build sustainable models for growth. Our cover story explores one such growth opportunity through HyperSpace, the entertainment startup redefining location-based experiences through immersive digital worlds. Founded just over a year ago, HyperSpace has HONOURING GREATNESS Thursday 25 th January 2024 Atlantis the Royal, Dubai, UAE SALES ENQUIRIES Andy Sulahian Group Commercial Director Tel: +971 4 444 3597 GSM: +971 52 384 6238 E-mail: andy.sulahian@itp.com EVENT ENQUIRIES Daniel Fewtrell Director of Awards & Marketing Tel: +971 4 444 3684 GSM: +971 50 276 5706 E-mail: daniel.fewtrell@itp.com Scan to visit website ACHIEVEMENT AWARDS 2024 Real Estate Partner 10 CEO MIDDLE EAST 16-30 NOVEMBER 2023 esidential transactions in the booming Dubai real estate market has reached new milestones exceeding previous records, according to a new report re- leased by CBRE. The ‘Dubai Residen- tial Market Snapshot’ reveals insights into the current residential market in the city. In October 2023, the total number of residential transactions in Dubai stood at 6,407, marking a decrease of 23.6 percent compared to the same period last year. The decline in transactions was primarily driven by a significant drop of 57.2 percent in off-plan transac- tions. However, secondary market transactions experienced growth of 29.5 percent during the same period. Despite the recent slowdown, the year-to-date residential transactions up until October 2023 reached a total of 93,590, surpassing the full-year record of 92,178 transactions set in 2022. This new record highlights the continued strength and resilience of the Dubai residential market. Dubai apartment and villa price trends The average residential prices in Dubai witnessed a 19.1 percent increase in the year leading up to October 2023. Although slightly lower than the 19.6 percent growth rate re- corded a month earlier, it still reflects a robust market performance. Average apartment prices rose by 18.7 percent during this period, while average villa prices saw a significant increase of 21.4 percent. In October 2023, the average price per square foot for apartments was AED1,364, while for villas, it stood at AED1,649. While the average apartment sales rates per square foot are still 8.3 percent below the peak levels reached in 2014, several communities have already exceeded their 2014 figures. On the other hand, average villa sales rates have surpassed their 2014 levels by 14.1 percent, indicating strong de- DUBAI REAL ESTATE BREAKS ANOTHER RECORD AS TRANSACTIONS BOOM The average residential prices in Dubai saw a 19.1 percent increase in the year leading up to October 2023, with average apartment prices rising by 18.7 percent and average villa prices increasing by 21.4 percent BY CEO STAFF Transactions boom. The booming Dubai real estate market has reached new milestones. REAL ESTATE R16-30 NOVEMBER 2023 CEO MIDDLE EAST 11 REAL ESTATE “THE YEAR-TO- DATE RESIDENTIAL TRANSACTIONS UP UNTIL OCTOBER 2023 REACHED A TOTAL OF 93,590 SURPASSING THE FULL-YEAR OF 2022.” High demand. Despite the decrease in transactions, the Dubai residential market remains robust. mand and growth in this segment. Downtown Dubai recorded the highest sales rate per square foot for apartments, reaching AED2,500. In the villa segment, Palm Jumeirah topped the list with a sales rate of AED5,125 per square foot. Dubai rental market growth moderates The rental market in Dubai has expe- rienced a moderation in growth rates since the beginning of the year. Aver- age rents increased by 19.7 percent in the year leading up to October 2023, slightly lower than the 20.6 percent growth recorded in September 2023. Average apartment rents rose by 19.9 percent during this period, while average villa rents grew by 18 percent. As of October 2023, the average yearly apartment rent stood at AED110,080, while the average yearly villa rent was AED322,891. The highest apartment and villa rents were found in Palm Jumeirah, with this does not mean that demand has weakened. Given high levels of demand for off-plan properties and deteriorating levels of supply, off-plan sales have fallen by 57.2 percent in the year to October 2023. The absorption that we have seen within the off-plan segment of the market has been almost unprec- edented. Looking at off-plan sales of units which were launched from 2022 onwards, our headline analysis shows that 67.5 percent of these units have been sold to date, and for prime and core markets, this number is north of 90 percent on average.” The report suggests that despite the decrease in transactions and a moderation in growth rates, the Dubai residential market remains robust. The record-breaking number of residential transactions in 2023 demonstrates the continued appeal of Dubai’s real estate sector to investors and buyers alike. average rents of AED256,204 and AED1,096,675, respectively. Taimur Khan, Head of Research – MENA at CBRE in Dubai, said: “Whilst the total transaction volumes have decreased in October 2023 by 23.6 percent compared to last year, 12 CEO MIDDLE EAST 16-30 NOVEMBER 2023 n the heart of the Middle East, where hospitality is a tradition as old as time, a new era is dawning. The region’s tour- ism and hospitality industry embraces groundbreaking advancements in video technology and analytics, set- ting the stage for unparalleled guest experiences, heightened safety meas- ures, and unprecedented operational efficiency. According to IndustryArc, with every travel company using at least one AI-powered technology, the hospitality industry’s compound ag- gregate growth rate CAGR is expected to reach 9.7% by 2026. As the world navigates the post- pandemic age, the UAE and the wider Middle East region are leading the charge in redefining travel, offering visitors journeys that are smoother, safer, and more memorable than ever before. Enhanced guest experiences The region’s commitment to provid- ing impeccable guest experiences has found a powerful ally in video technol- ogy. Museums, heritage sites, and at- tractions leverage advanced analytics to monitor crowd flow, identify peak hours, and optimise resource alloca- tion. Imagine strolling through the bustling streets of Dubai or visiting an ancient archaeological site in Jordan and never encountering a bottleneck or lengthy queue. With insights from video analytics, authorities can craft layouts that enhance visitor journeys, offering seamless navigation and minimising wait times. Redefined safety Safety has consistently remained a top priority for travellers, and in the Middle East, there’s a notable effort to elevate safety standards through innovative solutions. Public safety is being advanced in the region by using data-driven video technology, which employs analytics to extract valuable insights from video data. RESHAPING THE MIDDLE EAST HOSPITALITY AND TOURISM EXPERIENCE WITH DATA-DRIVEN VIDEO TECHNOLOGY As the world navigates the post-pandemic age, the UAE and the wider Middle East region are leading the charge in redefi ning travel BY RAHUL YADAV, CHIEF TECHNOLOGY OFFICER, MILESTONE SYSTEMS Enhanced experiences. Yadad discusses how video analytics can craft layouts that enhance guest journeys. HOSPITALITY I16-30 NOVEMBER 2023 CEO MIDDLE EAST 13 HOSPITALITY “THE HOSPITALITY INDUSTRY’S COMPUND AGGREGATE GROWTH RATE CAGR IS EXPECTED TO REACH 9.7% BY 2026.” Transformations. The UAE and wider region are propelling tourism and hospitality sectors into a new era. Video technology is making a significant impact, from the modern terminals of the UAE’s international airports to the historic markets of Marrakech, by swiftly detecting incidents and providing real-time alerts that are transforming security measures. It effectively identifies trespassers and raises alarms about suspicious objects, resulting in rapid responses that ensure the safety and well-being of all individuals. In a con- stantly changing world, the vigilance of video technology reinforces the region’s commitment to the safety of travellers. Efficiency unleashed Given that the vibrant cities in the Middle East draw in more than 44 million visitors each year, adopting video technology for tasks such as traffic management becomes neces- sary. Real-time analysis of video feeds allows urban authorities to under- stand traffic patterns, make informed adjustments, and alleviate conges- tion. The result? A stress-free journey through cityscapes that seamlessly blend tradition and modernity. With streamlined transportation, travellers can spend more time savouring the Middle East’s rich cultural tapestry. Contactless solutions As the world reimagines travel in the wake of the pandemic, the Middle East is leading the charge in contact- less solutions. According to a recent global Hilton survey, more than half of the respondents (53%) confirmed they are most concerned about having a more accessible travel experience in 2023. UAE is, thus, increasingly addressing this requirement by adopt- ing faster, contactless technology, enabling a better travel experience for travellers. In the UAE’s luxurious hotels, guests experience contact- less check-ins and keyless entry that redefine convenience and safety. From the deserts of Oman to the bustling technology and analytics is creating a travel landscape that marries tradi- tion with innovation, ensuring guest experiences that are both memorable and secure. With a firm commitment to operational excellence and guest satisfaction, the Middle East’s hos- pitality industry is poised to set new benchmarks on a global stage. As the world sets its sights on the horizon of post-pandemic travel, the Middle East emerges as a beacon of innovation, embracing video tech- nology to redefine hospitality. From welcoming guests with open arms to ensuring their safety through vigilant technology, the region is weaving a narrative of transformation that will resonate for years. Through the lenses of video technology, the UAE and the Middle East are inviting travellers to embark on journeys that are not only remarkable but also set to become the gold standard for hospitality world- wide. markets of Qatar, the region’s hos- pitality pioneers are crafting experi- ences prioritising well-being without compromising on luxury. A transformative journey ahead The UAE and the broader Mid- dle East region are propelling their tourism and hospitality sectors into a new era. The synergy between video 14 CEO MIDDLE EAST 16-30 NOVEMBER 2023 n the ever-evolving land- scape of business expansion, venture capitalists (VCs) are continuously seeking new investment opportunities. While established markets like the US and Europe remain attractive, astute investors are increasingly turning their focus towards the up-and-coming mar- kets within Africa, Asia, and South America – which boast a wide variety of startups looking for investors. So, where should VCs be think- ing about globally when it comes to potential investments? Which locations offer the greatest potential for returns, and where should VCs be targeting their funds? In this article, we will take a more granular view – looking at three countries within each region and not- ing the key cities with the best startup ecosystems, all with a focus on the investment opportunities that VCs might be missing out on. Africa: An untapped frontier for VCs Africa is an enormous and highly diverse continent, brimming with untapped investment opportunities. In this section, we’ll focus on three key countries – Nigeria, Kenya, and Mau- ritius – and assess what they offer. • Nigeria: With a population surpassing 200 million, making it the most populous country in Af- rica, Nigeria presents a substantial consumer market. Its growing tech ecosystem, often referred to as Silicon Lagoon, is drawing the attention of VCs from around the world. Accord- ing to the Global Startup Ecosystem Index 2023, the country is recog- nised as ‘one of Western Africa’s best countries for setting up a startup’ with the city of Lagos ranking 82nd globally. In Q1 2022, it was the most funded geography in the continent, with a quarter-on-quarter growth rate of 84 percent compared to the same time the previous year. While this may Opportunities abound around the world for those with capital looking for exciting prospects THE WIDE WORLD OF STARTUPS: WHICH MARKETS ARE VCS MISSING OUT ON? Opportunities. Up and coming markets are looking for investors. STARTUP BY LORENZO JOORIS, CEO, CREATIVE ZONE ISTARTUP 16-30 NOVEMBER 2023 CEO MIDDLE EAST 15 “A RESPECTED GLOBAL FINANCIAL HUB” Evolving landscapes. VCs are constantly seeking new investment opportunities. not be news to experienced VCs, and some may have concerns over Nigeria’s challenges around infrastructure and power supply, its status as a regional hub makes it an attractive destination for those considering expansion into West Africa. • Kenya: A frontrunner in fintech innovation, Kenya boasts widespread adoption of mobile payment platforms like M-Pesa. While it hasn’t yet cracked the Top 100 in global rankings, the city of Nairobi is positioned 8th within the Middle East & North Africa (MENA) region and has improved its ranking by 25 places in the past year, signalling an upward trajectory. In Q1 of 2022, the country rose three ranks (compared to same quarter in the previous year) to become the second-most funded geog- raphy in Africa. Political stability and a diversified economy create a favourable business environment, but navigating Kenya’s regulatory landscape can be a challenge. While Nigeria’s massive population and regional significance makes it our top choice from this list, those looking for unique opportunities should seri- ously consider Mauritius. The time to look into this emerging market is now. Asia: Finding a niche in well- established markets Much of Asia boasts highly-developed startup ecosystems. In this section, we’ll hone in on some of the power- houses: India, Singapore, and China. • India: With a population exceed- ing 1.3 billion, India represents an ex- pansive consumer market with diverse opportunities for various products and services. Several Indian cities rank prominently in the Index – Bangalore within the global top ten, New Delhi just outside the top 10 at 13th, and Mumbai at 25th. India is a hub of tech talent, making it an appealing desti- nation for tech startups, with many new and established companies in this fiercely competitive market. How- • Mauritius: A surprising entry on our list, Mauritius’s city of Port Louis hosts incubators, accelerators, and a well-developed infrastructure support- ing a close-knit community of entrepre- neurs. Mauritius, in just two years, has become the second-highest-ranked Af- rican country in the Index (ranking fifth in MENA). This highlights an essential point for VCs – it’s not just about current rankings but also whether a country is on an upward trajectory. The introduction of the Variable Capital Companies Act in 2022 signifies a mile- stone for the country, reinforcing its position as a respected global financial hub and helping reshape the structure of its investment fund sector.STARTUP 16 CEO MIDDLE EAST 16-30 NOVEMBER 2023 ever, investors need to navigate often confusing bureaucratic procedures. In parallel with the worldwide economic downturn, funding activity in India has experienced a decline, with the to- tal deal value decreasing from $38.5bn in 2021 to U25.7bn in 2022. However, India’s ability to withstand global economic challenges continues to give the country a favourable economic outlook. • Singapore: Known for its busi- ness-friendly policies and ease of doing business, Singapore offers a welcoming environment for startups, and will have an air of familiarity for those already based in Dubai. Singa- pore ranks 20th globally, surpassing many Western cities, and serves as a gateway to diverse Southeast Asian markets. The city is home to some of Asia’s most successful startups, making it an enticing prospect for VCs. Singapore continued to assert its dominance as the primary hub for venture capital investment in South- east Asia throughout 2022. Last year, the city-state represented 56 percent of the total deal volume within the six largest economies in the region. • China: As the world’s most populous nation, China provides an unparalleled consumer base. It’s a global leader in technology and in- novation, making it a highly attrac- tive location for VCs. On a city level, Guangzhou ranks 45th, and Chengdu just breaks into the top 100 at 97th. However, navigating China’s regulatory landscape can pose challenges. Never- theless, foreign VCs continue to look to China – even if in recent years invest- ment from the US in China has fallen slightly. During H1 of 2023, China (and the US) continued to be the two top choices for VC firms – together these two nations represented 70 percent of the volume and value of substantial VC deals. While the immense markets of India and China are undeniably appealing, don’t overlook the smaller yet dynamic Singapore. With its ease of doing busi- ness it provides an accessible entry point for VCs exploring Asian mar- kets. And it boasts a thriving startup ecosystem with both new startups and more established companies. South America: A promising landscape for VCs While South America is a ‘portion’ of a continent, as a region it has emerged as a vibrant hub for innovation and entrepreneurship. Let’s take a closer look at Brazil, Argentina, and Chile to explore the investment potential they offer for VCs. • Brazil: Sao Paulo, ranking first in Brazil, first in South America, and 17th globally, stands out as an attractive destination for investment. Brazil’s substantial middle-class population creates a robust demand for goods and services, and its startup ecosystem is flourishing with sup- port from incubators and accelera- tors. Despite economic turbulence and currency fluctuations, startups in Brazil benefit from being part of BRIC, a group of countries projected to become dominant economic pow- Unparalleled base. China is a global leader in technology and innovation, providing an attractive location for VCs. 20TH Singapore ranked 20th globally as a welcoming environment for start ups.STARTUP 16-30 NOVEMBER 2023 CEO MIDDLE EAST 17 erhouses by 2050. Brazil witnessed a remarkable surge in the values of ven- ture capital exits (growing by a factor of four from 2016 to 2019), however this year there have been challenges due to the global interest hike and layoffs at late stage startups. • Argentina: Buenos Aires, globally ranked 75th, hosts a highly educated workforce with strong tech- nical skills. In early 2022 there were 42 unicorns in Latin America - with eight of those in Argentina. Last year, Argentina boasted 12 deals worth over $250m. Argentina faces eco- nomic challenges, including inflation and currency devaluation, resulting in fluctuating rankings. Nonetheless, the country holds a place within the global Top 50, although investors should be prepared for a complex and evolving regulatory environment. • Chile: Known for its economic stability and business-friendly poli- cies, Chile’s capital, Santiago, ranks 67th globally, with the country itself positioned within the Top 40. Chile is building a robust tech and innovation ecosystem, continuously attracting startups. While its domestic market is smaller compared to its regional counterparts – and geographical iso- lation can pose logistical challenges – within South America Chile is second only to Brazil in terms of potential. During 2021, Chile registered a remarkable increase compared to the previous year, with a total investment of $2,915m including 104 deals and the emergence of two unicorns. Recently South America (like much of the world) has seen a slow- down, but there is still much to be optimistic about. Brazil, the top- ranked country in South America, garners global confidence in its economic future – as a destination for investment opportunities it offers major cities, strong ties to North America, and a substantial local market. Conclusion While we’ve provided recommen- dations, it’s essential to conduct thorough research and delve into the specifics of a country to determine its suitability. Factors to consider include the economy, ease of doing business, language barriers, and the regulatory landscape. What remains undeniable is that when we venture beyond the familiar territories of the US and Europe, there is a wealth of opportunities for VCs interested in investing in cutting-edge startups. Research is key. Beyond familiar territories is a wealth of opportunities for VCs looking to invest in start ups. “SAO PAULO STANDS OUT AS AN ATTRACTIVE DESTINATION FOR INVESTMENT.”Next >