< Previous10 CEO MIDDLE EAST JANUARY 2024 n the pursuit of a sustainable future, Malta’s commitment extends beyond the realms of tourism and infrastructure to the pivotal domain of transportation, overseen by the regulator Transport Malta. This integral organisation plays a crucial role in shaping Malta’s mobil- ity landscape, aligning its strategies with the nation’s broader sustainabil- ity goals. Transport Malta acts as the linchpin for initiatives that redefine the way people move within and be- yond the islands. With a mission to enhance the effi- ciency, safety, and sustainability of the With sustainability at its core, the nation is navigating tourism and transport with purpose MALTA’S VISION FOR A SUSTAINABLE FUTURE Central to Malta’s vision for a sustainable future is the acknowledgment that tourism and sustainability are not adversaries I transportation sector, Transport Malta is actively contributing to the govern- ment’s ambitious plans for decar- bonisation. Spearheaded by dedicated professionals, the Transport Malta is at the forefront of implementing elec- tric mobility solutions, aligning with the nation’s goal to electrify 65,000 cars by 2030. Beyond roads, Transport Malta is pivotal in orchestrating the electrification of buses and fostering alternative modes of transportation, creating a comprehensive network that embraces eco-friendly options such as e-bikes and public transport. The vision for a greener sky and sea is materialising under the care- ful guidance of Transport Malta, which plays a critical role in maritime affairs too. Ensuring that the island nation’s maritime industry remains both competitive and environmentally responsible, the agency collaborates with international bodies like the International Maritime Organisation. By steering Malta’s maritime sector towards greener horizons, Transport Malta contributes to the global efforts to mitigate the environmental impact of maritime activities. In our conversation with Clayton Bartolo, Malta’s Minister of Tourism, Sponsored by Transport Malta12 CEO MIDDLE EAST JANUARY 2024 Clayton Bartolo (top photo), Malta’s Minister of Tourism, and Aaron Farrugia, head of Malta’s Ministry for Transport, Infrastructure, and Capital Projects we gained insights into the nation’s response to the unprecedented chal- lenges faced by the tourism sector during the pandemic. Taking office in November 2020, Minister Bartolo wasted no time in implementing im- mediate, medium-term, and long-term strategies to revive tourism. Connectivity, a lifeline for any tourist destination, was swiftly re- stored, with Malta poised to reach an impressive 97 percent of pre-pandemic connectivity by the year’s end. Howev- er, the minister stressed that the focus is not just on quantity but a delicate balance of quantity and quality. Central to Malta’s vision for a sustainable future is the acknowledg- ment that tourism and sustainability are not adversaries. Bartolo empha- sised the need to combat seasonality, showcasing Malta’s success in niche markets like sports tourism, which saw over 16,700 bed nights in the first quarter alone. Additionally, the island is leveraging faith tourism, culture, and gastronomy to diversify its tourism product, boasting over 31 restaurants listed in the Michelin Guide. In addressing environmental sustainability, initiatives are underway to optimise airplane seat load factors, effectively reducing per capita emis- sions. These measures, coupled with strategic investments, aim to ensure economic and environmental sustain- ability in the long term. Importantly, Bartolo underscored the human aspect of sustainability, focusing on workforce development, training programs, and improved conditions for employees. The interview unveiled a holistic approach to tourism, where collabora- tion between the private and public sectors ensures an authentic and high- quality experience for visitors. Minister Bartolo emphasised the shared respon- sibility across the board, highlighting that everyone plays a crucial role in the success of Malta’s tourism industry. Shifting gears to infrastructure and transport, we spoke with Aaron Farrugia, the head of Malta’s Minis- try for Transport, Infrastructure, and Capital Projects. Against the backdrop of Malta’s impressive economic growth, Farrugia detailed the government’s commitment to sustainable develop- ment, particularly in achieving carbon neutrality in the transport sector—the major contributor to emissions in Malta. To address the challenges of eco- nomic diversification, the Ministry is placing a strong emphasis on sustain- able growth. Farrugia highlighted Malta’s commitment as a signatory of COP26 and COP27, with a specific focus on decarbonising the transport sector—the major contributor to emissions in Malta. In a bold move, the government aims to electrify 65,000 cars by the first half of 2030, offering substantial incentives to make Malta a leader in green mobility. This commitment extends to public transportation, with plans to electrify buses and promote alternative modes like e-bikes. Recog- nising the significance of the mari- time industry, efforts are underway to decarbonise at the International Maritime Organisation (IMO) level. Improving public transport is a cornerstone of Malta’s sustainability plan, with the country standing as the second in the EU to offer free public transport for all residents. Minister Farrugia emphasised ongoing efforts to enhance reliability, routes, and frequencies, ensuring demand matches supply. The government plans to invest €35 million in the next five years to create secure routes for cyclists and pedestrians, showcasing a commit- ment to diverse and eco-friendly mobility solutions. Malta’s success in the aviation industry, with a 500 percent increase in Air Operator Certificates, dem- onstrates the island’s emergence as a thriving aviation hub. The maritime sector, boasting the sixth-largest ship registry globally, is undergoing digital transformation to maintain its in- novative edge. At the heart of Malta’s commitment to sustainable trans- portation is the crucial role played by Malta Air Traffic Services (MATS). As a vital component of the nation’s aviation infrastructure, MATS ensures the safe and efficient movement of air traffic within Maltese airspace. Committed to aligning its operations with environmental sustainability, MATS collaborates with international aviation bodies to implement innova- tive measures that reduce the carbon footprint of air travel. Beyond transportation, Far- rugia shed light on comprehensive infrastructure projects reshaping Malta’s landscape. Over 100 roads are undergoing transformation each year, alongside major projects modernising flyovers, junctions, and underpasses. Land reclamation projects, focusing on industrial, commercial, and family- friendly areas, underline Malta’s holis- tic approach to development. Sponsored by Transport Maltaatlas by Etihad Airways, home to award-winning content and read by over 1.3 million engaged readers a month Michael Underdown Commercial Director michael.underdown@itp.com +971 50 396 2115 +971 4 444 3566 To elevate your brand and connect with Etihad Airways’ passengers, contact: November 2023 | ATLAS BY ETIHAD | 3332 | ATLAS BY ETIHAD | November 2023 10.1632° N, 76.6413° E10.1632° N, 76.6413° E he image of palm-lined beaches and verdant rolling grasslands sloping towards the Arabian Sea is seared into my mind after a four-hour flight with Etihad Airways into Cochin International Airport, situated in the Indian state of Kerala. As we descend, I peer out of the window to the scene beneath and I’m filled with anticipation to discover a land I’ve already heard so much about. Away from the busy streets of Mumbai and crowded Delhi, Kerala offers a more laidback atmosphere, but one that is every bit as memorable. It’s known as God’s Own Country, thanks to its vast emerald valleys and lush landscapes. The term has a mythological origin, too, tied to the belief that Parashurama, a manifestation of Lord Vishnu, a principal deity in Hinduism, threw his axe into the sea to create a home in which his followers could live peacefully. If ever a story epitomises a place, it’s this one: Kerala, born at the hands of a God for the purpose of people living in harmony. Kerala is world-famous for its houseboats that plough the glistening backwaters, a labyrinthine 900-kilometre network of brackish canals, lakes Beaches Backwaters & Kerala, India’s tropical coastal jewel, has much to offer curious travellers By Francesca Kirby November 2023 | ATLAS BY ETIHAD | 2524 | ATLAS BY ETIHAD | November 2023 suitcase Smooth skin The Barbiere multi-action face cream for men from Acqua Di Parma combines moisturing, smoothing, and revitalising properties to combat exposure to blue light from digital screens and environmental elements. It also comes in eco-friendly packaging ($120, acquadiparma.com). Wild ocean Enriched with almond, hazelnut, and prickly pear oils, this Wildocean beard oil is designed for medium to long facial hair that needs softening ($21, beautyethic.com). Red gold Acqua Di Parma’s new fragrance, Zafferano, is a celebration of saffron, with citrus and floral notes brought by orange blossom, jasmine sambac, and geranium, and a woodiness from tonka bean and vanilla ($284, acquadiparma.com). All smiles Apa White Toothpaste uses ultrapolish technology to help clean stains, alongside hydroxyapatite to rebuild enamel. It’s formulated to tackle plaque and tartar build-up without fluoride, while still leaving your mouth feeling fresh ($25, apabeauty.com). High performance The new Homme collection from Ritual Cosmetics is a range of grooming essentials for body, face, and beard. It’s tough on sweat and gentle on shaving rashes, with an uplifting essence as its base. It’s also infused with vitamins E, C, and B3, plus peptides, ginseng, argan oil, and aloe vera (rituals.com). Groom yourself Men, look your best with this selection of personal care products suitcase The stylish way to travel THIS PAGE: ACQUA DI PARMA; OPPOSITE PAGE: RITUALS; ACQUA DI PARMA; APA BEAUTY; BEAUTY ETHIC 7.8804° N, 98.3923° E7.8804° N, 98.3923° E 2023 ﺮﺒﻤﻓﻮﻧ | ناﺮﻴﻄﻠﻟ دﺎﺤﺗﻻا ﻦﻣ ﺲﻠﻃأ | 2627 | ناﺮﻴﻄﻠﻟ دﺎﺤﺗﻻا ﻦﻣ ﺲﻠﻃأ | 2023 ﺮﺒﻤﻓﻮﻧ ﺔﻀﺑﺎﻨﻟا ﺔﻨﻳﺪﻤﻟا هﺬﻫ ﻒﺸﺘﻛا لﺎﻣﺮﻟاو ﺲﻤﺸﻟا ﺮﻴﺛأ ﻰﻠﻋ ةﺎﻴﺤﻟﺎﺑ ناﺮﻴﻄﻠﻟ دﺎﺤﺗﻻا ﻊﻣ ﺔﻨﻴﻜﺴﻟاو ﺰﻧارﺎﻤﻟو ﻦﻴﻟ ﺖﻴﻛ ΙήΘϟΔϗήϋϦϴΑΎϣϊϤΠΗϲΘϟϥΎϣΪϧήΤΑΓΆϟΆϟˬΖϴϛϮΑ ϦπΘΤΗΚϴΣˬΔϘϠτϤϟήμόϟΔϴϫΎϓέϭˬϲϨϐϟϱΪϨϠϳΎΘϟ ϳΰϳϦϣέΎψΘϧΎΑΓΪϳήϔϟΏέΎΠΘϟϦϣΔϋϮϨΘϣΔϋϮϤΠϣΖϴϛϮΑ ˬΔϤΣΩΰϤϟΎϬϗϮγϰΘΣήϜΒϟΎϬΌσϮηϦϣ ˱ ˯ΪΑˬΎϬϨϋέΎΘδϟ ϩάϫϲϓΎϨϘϓέΔΒΧΎμϟΔϴϠϴϠϟΎϬΗΎϴΣϰϟ·ΔΩΎϬϟΎϫΪΑΎόϣϦϣϭ ίϮϨϛϭέήγϰϠϋϑήόΘΗϲϛΔϋΎγ72έΪϣϰϠϋΔϟϮΠϟ ΔϴϮΘγϻΔϨΠϟϩάϫ ﺦﻳرﺎﺘﻟا ﻖﺒﻌﺑ ﺔﻗرﺎﻏ ﺔﻨﻳﺪﻣ ˬ˱ΔϴΒόηΎϫήΜϛϭΖϴϛϮΑΪΑΎόϣήΒϛΪΣˬ³ώϧϮϟΎθΗΕϭ´ ˱ΎΣΎΑλ ΔϋϮϤΠϣϰϠϋϭˬΫϮΑϦϣΕΎϓέϰϠϋήϴΒϜϟΪΒόϤϟάϫϱϮΘΤϳ ϲΘϟϞϴΛΎϤΘϟϭˬΕΎΣϮϠϟϭˬΔϠΧΪΘϤϟϢϴϣΎμΘϟωϭέϦϣΓήΣΎγ ˯ΪΗέΓέϭήοϰϟ·ΎϨϫήϴθϧϭΫϮΑΓΎϴΣϦϣΕΎϔτΘϘϣέϮμ˵Η ϲϓΪΟϮΘϟΪϨϋϦϴΘΒϛήϟϭϦϴϔΘϜϟϲτϐΗϲΘϟΔϤθΘΤϤϟΏΎϴΜϟ αΪϘϤϟϥΎϜϤϟάϫ ϞϜθΗϲΘϟΔϴΨϳέΎΘϟΔϨϳΪϤϟϲϫϭˬΔϤϳΪϘϟΖϴϛϮΑΔϨϳΪϣ ˱έϬυ ΔϴϨϴμϟΓέΎϤόϟϥϮϨϓΔϨοΎΣϭˬΖϴϛϮΑΔϨϳΪϣ˯ΰΟΪΣ ήμϋάϨϣΔϨϳΪϤϟϩάϫέΎϫΩίϭϖϟϰϠϋΓΪϫΎθϟˬΔϴϟΎϐΗήΒϟ ΔϴϫΰϟΎϬϧϮϟ΄ΑϙϮΗϙϮΘϟΕΎΑήϋΪό ˵ ΗϭήϳΪμϘϟϦϳΪόΗ ϡΎότϟϕΎθϋΎϣΔϨϳΪϤϟϑΎθϜΘγϻΔόΘϣήΜϛϷϞϘϨϟΔϠϴγϭ ϮϫϭˬϲΗϭήϟΎϬγέϰϠϋϭˬΔϴϠΤϤϟΕϻϮϛ΄ϤϟΔΑήΠΗϢϬϴϠόϓ ΰϛήϤϟΐϴϠΤϟϊϣϡΪϘ˵ϳΎϣ ˱ ΓΩΎϋϱήσϭϖϴϗέτδϣΰΒΧ ˬϲϬθϟϦϴϛϮϫϲϤϟΔϧϭήϜόϣϖΒσϭˬάϳάϠϟϱέΎϜϟϭϰϠΤϤϟ ΕϻϮϛ΄ϤϟϊϣΔϴϠϘϤϟ˯ήϔμϟ ϝΩϮϨϟ ΔϧϭήϜόϤϟϦϣϒϟΆϤϟ άϳάϠϟϕήϤϟϭˬΔϳήΤΒϟ ˬ³ϱΎϜϳήΗΖϴϛϮΑ´ϒΤΘϣϞΧΪΗΖϧϭϚγϮΣϒϫέ ˱˯Ύγϣ ΔϴΛϼΛϭΔϴϠϋΎϔΘϟΔϴϨϔϟϝΎϤϋϸϟϞϫάϣνήόϣϦϋΓέΎΒϋϮϫϭ ΎϫΪόΑϚΗίΎΟ·έϮλϦϴϳΰΘϟΓΰϴϤϣΕΎϴϔϠΧήϓϮϳϪϧΎϤϛˬΩΎόΑϷ ϱΪϧϼϳΎΗϲϨϴλϊΑΎτΑϢϳΪϗϢότϣϮϫϭˬ³Ύϳέ´Ϣότϣϰϟ·ϪΟϮΗ ϱέΎϜϟΎΑϥϮότϠδϟΎϬϨϣϭˬΔϳΪϴϠϘΘϟϕΎΒσϷϒϠΘΨϣϡ˷ΪϘϳ ϲϬϨϨγϢΛϦϣϭάϳάϠϟϱΪϧϼϳΎΘϟήπΧϷϱέΎϜϟϭˬΎϤϳήϜϟϭ ϰϠϋΔϣϭΎδϤϟΪόΗϲΘϟϭˬΔΒΧΎμϟϕϮγϷϲϓϝϮΠΘϟΎΑΔϠϴϠϟ ΔΒΒΤϤϟΔϴϠΤϤϟΔϓΎϘΜϟϦϣϭΎϫΪϴϟΎϘΗϦϣ ˱ ˯ΰΟέΎόγϷ لوﻷا مﻮﻴﻟا تاو” ﺪﺒﻌﻣ :ﻦﻴﻤﻴﻟا ﻰﻟإ رﺎﺴﻴﻟا ﻦﻣ ﺔﻨﻳﺪﻣ ﻲﻓ “ﻎﻧﻻﺎﺗ” ﻖﻳﺮﻃ ؛“ﻎﻧﻮﻟﺎﺸﺗ .ﺔﻤﻳﺪﻘﻟا ﺖﻴﻛﻮﺑ مﺎﻳأ ﺔﺛﻼﺛ ﺖﻴﻛﻮﺑ ﻲﻓ ﺔﻳﺎﻜﺤﻟا ﺔﻳﺪﻧﻼﻳﺎﺘﻟا KENZIE KRAFTA / UNSPLASH; SHUTTERSTOCK14 CEO MIDDLE EAST JANUARY 2024 hen it comes to advance- ments in technology, NASA stands at the forefront, consistently pushing the boundaries of innovation. Beyond moon landings and Mars rovers, its space programme has sparked research and innovations that impact our daily lives. The next time you take a selfie, you can quietly thank NASA for making this possible. NASA research- ers improved and miniaturised the image sensor in cell phones, making it lighter and capable of capturing clearer photos. NASA also gave us technology readiness levels (TRLs), a system which measures how prepared a tech- nology is for use, from early stages It’s something that Middle East tech founders and investors must now place at the top of their agenda WHY SOCIAL READINESS MUST TOP THE AGENDA FOR STARTUPS Not considering social readiness can result in problems such as market rejection, ethical issues, and regulatory challenges STARTUP BY RASHIT MAKHAT, DIRECTOR AND CO-FOUNDER, SCALO TECHNOLOGIES WSTARTUP JANUARY 2024 CEO MIDDLE EAST 15 “SUCCESSFUL INNOVATION REQUIRES AN UNDERSTANDING OF BOTH TECHNOLOGY AND SOCIETAL NEEDS” Developing technology could enable future generations to thrive, says Makhat to widespread adoption, guiding decisions in research, development and funding. Developed in the 1970s, however, the TRL method may have become outdated, at a time when new technology, particularly artificial intelligence, is emerging almost daily. Innovation bodies in Europe say the system offers no guidance on whether any new idea currently being readied for the market will be wanted by anyone, or whether they will be able to make use of it. Instead, they are using social readiness scales to give a reality check to researchers and engineers who might be too focused on what their innovations can achieve. At Innovation Fund Denmark, which offers funding for close-to- market projects, especially those with high disruptive potential, the question posed is – how do we make sure that what we can develop from a technical point of view, is also some- thing that society wants? Not having the answer can have serious implications for the future of an innovation. It’s something that Middle East tech founders, startups, and investors, must now place at the top of their agenda. Currently, according to the Neth- erlands Organisation for Applied Sci- entific Research, many social aspects are dealt with much too late in the development process. As a tech investor, I identify with this, and my advice to founders is to make sure your focus on tech excel- lence, innovation, and AI adaption is matched by your thinking on who will want, buy, use and endorse the prod- uct or service you’re developing. Lack of user acceptance can kill a brilliant idea. Maybe you have a unique advanced communication device ready to launch, but for all its technical prow- ess, the device faces resistance and re- jection from users because of language barriers, social etiquette differences, or privacy concerns. drone delivery service, without talk- ing to local communities which turn against you due to noise pollution, safety concerns, or disruption of their daily lives, resulting in public protests. Not considering social readiness can result in problems like market rejection, ethical issues, and regula- tory challenges. Successful innovation requires an understanding of both technology and societal needs. Research, practical thinking, and common sense can help you navi- gate challenges and succeed in global markets. You can also learn from the ex- amples set by Souq and Careem, which used tech effectively to create great Mid- dle East success stories, while avoiding the pitfalls of being obsessed with it. As an entrepreneur who cares deeply about the new ideas I support, I’m eager to invest in technology, research and innovation that has im- pact, for example producing economic growth and new jobs. Taking this further, I want to work with startups committed to making the world a better place, developing technology which can allow future generations to thrive. Perhaps you’ve developed an AI system for autonomous decision- making, but you face a backlash for making decisions that conflict with societal values, raising ethical con- cerns and damaging your reputation. As a fintech startup, you may have ignored regulatory requirements when developing a new digital payment so- lution, and face legal challenges, regu- latory hurdles, and potential bans, hindering market entry and creating financial and reputational risks. Or you’re a tech firm introducing a 16 CEO MIDDLE EAST JANUARY 2024 theme that was addressed at COP28 in the United Arab Emirates (UAE), where the focus is on how govern- ments, non-governmental organisa- tions (NGOs) and companies can adapt to climate risks. The effects of climate change on our economies are stark. In 2022 alone, insured losses from natural catastrophes reached an estimated $140bn, marking 2022 as the fifth year since 2017 to cross the $100bn threshold. The regional impacts of climate change vary, with Asia facing signifi- cant physical risks due to the high oc- currence of weather disasters along- side low existing adaptive readiness, which also means that the financial or social impacts are felt more strongly. In India, the India Meteorological Department (IMD) reported the hot- test March in 122 years while Africa was faced with the worst drought in decades with over 50 million people faced with food insecurity. The Intergovernmental Panel on Climate Change (IPCC) has shown how climate drivers like temperature increases and sea level rises are caus- ing more acute changes such as heat waves, droughts and flooding and biodiversity and habitat loss, which is adding an indirect pressure on energy consumption. This is being felt par- ticularly in regions like Asia, a major energy importer that could face mate- rial energy security risk and reduced self-sufficiency from 72 percent to 63 percent by 2050. Meanwhile, the Middle East is fo- cusing efforts on carbon capture, utili- sation and storage (CCUS) to mitigate climate risks. This region faces unique challenges, such as extreme water stress with 83 percent of the popula- tion already exposed to it, according to the world resource institute, and negative impacts on food production systems with continued heat waves and temperature spikes. Currently climate financing averages $2-3bn Seizing the triple dividend of economic growth, social progress, and environmental stewardship CLIMATE ADAPTATION IN EMERGING MARKETS The need for significant climate finance to meet the global 2030 climate objectives is particularly acute in Latin America, Africa and across the Asia Pacific SUSTAINABILITY BY MAX KUFER, HEAD OF ESG, EMEA / PRIVATE MARKETS, INVESCO AND HAMID ASSEFFAR, HEAD OF EMEA SUSTAINABLE AND IMPACT INVESTING, INVESCO I n an era where climate change is not just a looming threat but an unfolding real- ity, the concept of climate adaptation emerges as the bearer of hope and op- portunity. Recognising climate change as the defining challenge of our gener- ation, it is critical to understand that the impacts of rising temperatures by 2100 will be far-reaching, affecting everything from food production to water management, urban infrastruc- ture and the resilience of communities facing increasing natural disasters. Climate adaptation, defined as the ability to change processes, practices and structures in response to actual or expected climate impacts, and to recover from climate-related disasters, is an opportunity and a key SUSTAINABILITY JANUARY 2024CEOMIDDLE EAST17 “THE BENEFITS OF INVESTING IN CLIMATE ADAPTATIONS ARE IMMENSE” Kufer (top left) and Asseffar believes blended finance offers unique opportunities to provide better risk-return profiles for investing in climate adaptation annually where there is good room to grow financing through policies and standards for both climate mitigation and adaptation solutions. Identifying opportunities The investment landscape in climate adaptation is evolving. Invesco’s ESG mid-year outlook, published in 2023, highlights opportunities around climate mitigation, adapta- tion and transition. The need for significant climate finance to meet the global 2030 climate objectives is particularly acute in Latin America, Africa and across the Asia Pacific. The World Bank Group and Global Facility for Disaster Reduction and Recovery (GFDRR) estimate a financing gap of $12.4-13.1bn in Sub- Saharan Africa alone, nearly double the tracked investments in climate adaptation in the region. The role of private capital in closing this gap cannot be over- stated. While public entities such as multilateral development banks (MDBs) and development finance institutions (DFIs) have been domi- nant in funding climate initiatives, the launch of the loss and dam- age fund has been operationalised during COP28, initially providing $245m with contributions from the UAE, UK, US and Japan. Still, The UNEP’s 2023 adaptation gap report estimates the investment gap could be between $194-366bn by 2030 in developing economies. To meet these challenges, an increase in private sector invest- ment is essential. Many emerging market and developing economies, already burdened with high debt and constrained budgets post-pandemic, are facing higher costs to borrow capital in the current high inflation- ary environment, creating addi- tional barriers. This situation further underscores the need for innovative finance solutions that leverage both public and private capital. early warning systems, climate-resilient infrastructure and agriculture among other sectors could generate $7.1 trillion in total net benefits. During COP, 130 countries have agreed to triple renewables and double the rate of energy efficiency improve- ments, while 50 oil and gas companies have agreed to cut methane emissions and eliminate routine flaring by 2030 under the Oil and Gas Decarbonisa- tion charter. This will lower global energy related GHG emissions by 4 billion metric tonnes of carbon dioxide equivalent in 2030, which is equivalent to approximately 1/3 of the emissions gap needed to be tackled within the next six years to limit warming to 1.5C above pre-industrial levels. By mobilising public and private capital towards climate adaptation so- lutions, Invesco is working closely with investors who have the chance to dem- onstrate leadership in the transition to a more resilient world. This approach offers the potential for significant eco- nomic returns, along with social and environmental benefits. As we navigate the challenges of climate change, the triple dividend of climate adaptation – economic, social and environmental – represents a compelling opportunity for forward-thinking investors and sheds light on the way forward to creat- ing a more sustainable future. Mobilising capital Investment firms can play a pivotal role by offering institutional inves- tors access to climate adaptation investments in developing nations to not only generate returns, but also contribute to both climate and investment objectives. Blended finance, combining public and private funds, offers unique opportunities to provide better risk-return profiles for investing in climate adaptation. For instance, the enhanced use of multilateral development banks and donor’s guarantees can help de-risk and broaden the investor base. The potential benefits of invest- ing in climate adaptations are im- mense. Bloomberg New Energy Finance (BNEF) estimates a $194 trillion invest- ment gap in order to meet Net Zero by 2050. However, the Global Commission on Adaptation suggests that investing $1.8 trillion globally in five years within 18 CEO MIDDLE EAST JANUARY 2024 portfolio and identify robust mitigat- ing strategies. Apart from benefitting individual assets on an operational level, it also protects the overall health and value of their entire hospi- tality portfolio. As such, investment plans will vary depending on the priority within the overall business portfolio, positioning within the asset lifecycle, owners’ motivation, and general mar- ket sentiment. Based on the above, here are some fundamental strate- gies that can help owners and asset managers safeguard their hospitality assets for the long term: Asset diversification As a hospitality portfolio grows, it is imperative that emphasis is given to a full range of products ranging from luxury to extended-stay and budget assets. While owners are right to be ‘focused’ in their ownership vision, macroeconomic shocks such as a pan- demic can place an undue burden on Focusing on the future is always a necessity, writes Aditya Rajaram, Director of Asset Management, Stirling Hospitality Advisors STRATEGIES TO SAFEGUARD YOUR HOSPITALITY INVESTMENTS It is critical to have a robust relationship with lenders and suppliers in the hospitality industry INVESTMENT O ver the last few years, hos- pitality real estate has been through extremes in terms of performance cycles. From exter- nal threats relating to the Covid-19 pandemic and oil-price shocks to more intrinsic industry-specific issues such as a supply/demand imbalance, inflationary expenses, and pricing power. These issues have motivated both owners and asset managers to more closely evaluate their hospitality FOR COMMERCIAL ENQUIRIES: Ines Ben Rejeb Senior Commercial Manager T: +971 4 444 3223 E: ines.benrejeb@itp.com WHERE & NUMBERS NARRATIVES WWW.FINANCEMIDDLEEAST.COM AN ITP MEDIA GROUP PUBLICATION online now and in print this FebruaryNext >