< Previous10 CEO MIDDLE EAST MARCH 2024 or prospective buyers, the deci- sion between buying vs renting is circumstantial. It boils down to individual circumstances, including factors such as perceived security, long-term resi- dency plans, job stability, and the desire to establish roots in Dubai. For those planning on residing in Dubai for five years or more, the financial benefits of purchasing over renting become apparent when consider- ing the overall return on investment. Even in scenarios where the market experiences a cooling period, individuals who opt for mortgage payments over rent for a similar duration typically find themselves in a bet- ter position. Owning a property offers the gions of the US. This favorable affordability factor continues to attract individuals toward Dubai as a preferred destination. Looking at the number of buyers we are registering at Espace Real Estate along with the volume of transactions occurring, everything points towards a further price increase, albeit maybe not to the same extent as what we’ve seen over the previous couple of years, but points to be towards a 5 to 10 percent price increase throughout the course of 2024. If you intend to purchase and stay in Dubai for an elongated period of time throughout the course of your Dubai expe- rience, I advise buying vs renting because, in my view, current prices are likely lower than they will be in the next 12 months. Many clients often ask about the pos- sibility of the market declining and what would happen in the worst-case scenario. I always advise them to consider the absolute worst-case scenario. For instance, if they were to lose their job suddenly and had to leave Dubai urgently, they need to evaluate their ability to repay the mortgage and the potential rental income if they were to rent out the property. It’s crucial to buy within one’s means, considering that markets can fluctuate. However, it’s important to remember that what goes down must eventually come up, and vice versa. Therefore, I always stress the importance of purchasing a property that aligns with their financial capabilities. For instance, if their mortgage repay- ment is AED15,000 per month, totaling AED180,000 annually, they should assess whether this amount is covered by potential rental income, even during the lowest market conditions. While this scenario may seem extreme, it ensures that the property won’t become a financial burden in the event of unforeseen circumstances. Even though we may not experience market downturns similar to those in 2020, having this safety net provides peace of mind. In the worst-case scenario, if they own the prop- erty, they can rent it out and eventually sell it for a profit down the line – a strategy that has been historically successful in Dubai’s real estate market. For those planning on residing in Dubai for five years or more, the financial benefits of purchasing over renting become apparent when considering the overall return on investment DUBAI REAL ESTATE: BUYING VS. RENTING – WHAT SHOULD PEOPLE BE DOING IN 2024? Montgomery says the Dubai residential market has witnessed a well-documented surge in prices in recent years REAL ESTATE BY MATTHEW MONTGOMERY, ASSOCIATE DIRECTOR AT ESPACE REAL ESTATE F potential to either rent it out or sell it for a profit. If your tenure in Dubai is relatively short-term, opting to rent may be the more practical choice. Purchasing property entails entry costs and exit expenses. Therefore, if you plan to stay for one to three years in Dubai, renting is likely the better option. In recent years, the Dubai residential market has witnessed a well-documented surge in prices, compared to levels seen three or four years ago. However, it’s crucial to consider Dubai’s position on a global scale. Despite recent increases, Dubai remains relatively undervalued when compared to other major capital cities worldwide, includ- ing Paris, Singapore, London, and select re- The biggest interviews The best commentary Subscriber exclusives Dedicated newsletters Join the community Unlimited access to12 CEO MIDDLE EAST MARCH 2024 n February 23, 2024, the Financial Action Task Force announced the removal of the UAE from its list of Jurisdictions under Increased Monitoring (often referred to as the grey list). A triumphant win. It comes as no surprise. This achievement is not just ramp up and implementation of exten- sively robust legislation and an effective framework dealing with anti-money laundering; combatting and countering terrorism, the financing of terrorism, il- legal organisations, and the proliferation of weapons of mass destruction and its financing; and targeted financial sanc- tions (AML/CTF/Sanctions measures). Legislative and regulatory struc- tures continue to be effectively imple- mented, supervised and enforced by the relevant regulatory authorities. Recognising that the private sector also plays a pivotal role for cohesive implementation of AML/CTF/Sanc- tions measures, the regulatory au- thorities have taken a ‘together we can make a difference approach’ through training, outreach and awareness initiatives for the public on the imple- mentation and enforcement of these measures, thereby fostering a public It’s not a surprise that the UAE is off the grey list, but it does serve to elevate the nation’s global financial standing BOLSTERING A THRIVING ECONOMY: UAE’S EXIT FROM FATF GREY LIST All indicators prior to UAE’s exit from the grey list pointed towards the economy growing, with foreign investment and business activity rising COMMENT BY ALY SHAH, FOUNDER AND MANAGING DIRECTOR OF ALYIANT CONSULTANCY LIMITED O about regulatory compliance, it elevates the UAE’s global financial standing. Collective measures The nation’s commitment to tackle money laundering, terrorist and pro- liferation financing, sanctions evasion and related crime has led to a consistent COMMENT MARCH 2024 CEO MIDDLE EAST 13 – private partnership and embedding a strong culture of compliance by businesses. As the nation continues its trajectory of growth, so too will the AML/CTF/Sanctions landscape evolve and change and therefore, the necessity of maintaining a cohesive approach for the refinement to and implementation of AML/CTF/Sanctions measures. Global hub for business With the UAE being a leading global hub for business in the financial and non-financial services sectors, the AML/ CTF/Sanctions measures and infra- structure put in place have enabled the country to safe guard and protect not just its national boundaries and all within it in the fight against financial and other crimes, but also to contribute to the pro- tection of the global financial system. All indicators prior to UAE’s exit from the grey list pointed towards the economy growing, with foreign invest- ment and business activity rising. Post exit, an exponential growth in the UAE’s economy beyond that already forecasted for 2024 and onwards may be expected. The DIFC has recently announced record breaking results for 2023, includ- ing (i) unprecedented growth in 2023 ahead of target to double its GDP contribution by 2030; (ii) the highest ever annual number of new registra- tions, 1,451 new companies, up 34 percent year-on-year; (iii) FinTech and Innovation remaining the fastest grow- ing sector, growing to 902 companies, up 31 percent year-on-year; (iv) with the introduction of family wealth initia- tives – 443 Foundations in place, a 53 percent increase year-on-year; (v) 791 regulated firms licensed and registered by the DFSA, an increase of 117 from the previous year, the largest cluster of financial firms in the MEASA region and includes 50 firms with Hedge Fund activities, 350 plus Wealth and Asset Managers, 200 plus Banks, 100 plus insurance companies. Surging forward, May 2024 will also see the regions first exclusive Hedge Fund event in Dubai, which will be held in the DIFC. What’s ahead The forecasted indicators for 2024 will now likely be fast outdated and if sta- tistics such as those above published by the DIFC for 2023 saw unprecedented growth, the remaining part of 2024 and onwards for the UAE may well be a blockbuster. Economic vibrancy across the country is palpable, and this can be seen from the increase in the popula- tion for a range of reasons, including entrepreneurship and business op- portunities, employment opportunities and life-style choices. This is attribut- able to several factors. The UAE has a well-developed ecosystem in diverse economic sectors, providing excel- lent infrastructure for manufacturing, trading, financial services, technology, travel, hospitality, retail, and arts and culture. No less was the country’s ef- ficient handling of the Covid-19 pan- demic which gave it a leading global edge for stability, security, well-being and transparency from business and personal lifestyle standpoints. The UAE’s ESG initiatives for businesses have been evolving over the last several years. By their very nature, the “S” and “G” components envisage the inclusion of AML/CTF/ Sanctions measures. As these measures along with ESG initiatives develop further, a confluence of the two could provide for a further entrenchment of AML/CTF/Sanctions measures into the policies, practices and operations of businesses. The UAE Centennial 2071 pillars aiming to make the UAE one of the best countries in the world is well on track and the successful measures which have been taken in tackling financial and related crime are part of the country pathway towards achiev- ing that objective. “THE UAE CENTENNIAL 2071 PILLARS AIMING TO MAKE THE UAE ONE OF THE BEST COUNTRIES IN THE WORLD IS WELL ON TRACK” The UAE’s ESG initiatives for businesses have been evolving over the last several years, Shah says 3.7% The growth of the UAE’s real gross domestic product (GDP) in 2024, according to the World Bank14 CEO MIDDLE EAST MARCH 2024 ergers and acquisitions (M&A) have always been instrumental in shaping the corporate landscape. As we step into 2024, taking note of the evolving ap- proach to M&A is paramount. Today, the emphasis has shifted from merely selling your company to becoming the coveted entity that everyone aspires to acquire. Therefore, the art of strategic M&A position- ing has become increasingly vital for organisations seeking to thrive in 2024 and beyond. In the past, companies often found themselves in a reactive stance, re- sponding to acquisition offers without a clear strategy. However, the absence of proactive positioning often results in unfavourable terms and valuations. Be- ing sought after means having control over your destiny and maximising the value of your business. Current trends and challenges in the M&A market The M&A market in 2024 is marked by several trends and challenges. Increased globalisation, rapidly changing technolo- gies, and market disruptions have fuelled M&A activities. Factors like diversifica- tion, market entry, and synergy-seeking are driving forces. However, challenges like regulatory complexities and integra- tion risks remain. A MENA vs. global perspective While global M&A activity is driven by technology, innovation, and market expansion, the MENA region often focuses on diversification and regional consolidation. Understanding these regional variations is essential for suc- cessful M&A positioning. Building a strong value proposition The traditional approach to M&A po- sitions companies as sellers. In contrast, the sought-after approach involves presenting your organisation as an attractive investment. It’s about mak- Today, the emphasis has shifted from merely selling your company to becoming the coveted entity that everyone aspires to acquire HOW TO MASTER THE ART OF BEING ‘SOUGHT AFTER’, NOT ‘SOLD’ The role of AI, data analytics, and sustainability considerations will gain prominence this year and in the future, El Masri believes COMMENT BY HAYSSAM EL MASRI, SENIOR EXECUTIVE OFFICER OF ENTO CAPITAL MCOMMENT MARCH 2024 CEO MIDDLE EAST 15 ing potential suitors see the inherent value in your company, beyond just financials. To become a sought-after entity, building a compelling value proposition is key. Here are some ways to do so. Company culture Creating a thriving company culture is essential in the quest to become a sought-after entity in M&A. A strong culture isn’t just about perks like ping-pong tables and free snacks; it’s about fostering an environment where employees are engaged, motivated, and aligned with the company’s mission. When potential acquirers see a vibrant culture, they recognise a commit- ted and capable workforce that can seamlessly integrate into their own operations. Highlighting initiatives like mentorship programs, diversity and inclusion efforts, and employee recognition can showcase the depth of your company culture. Innovation and technology In today’s tech-driven world, innova- tion is the lifeblood of any organisa- tion. To attract potential suitors, com- panies must invest in cutting-edge technology and innovation initiatives. Demonstrating a commitment to staying ahead of the curve in terms of product development, automation, and data analytics can be a game- changer. Technology investments not only enhance operational efficiency but also signal to acquirers that your company is adaptable and positioned for future growth. Strategic alliances Building strategic partnerships can sig- nificantly enhance M&A positioning. These partnerships can be both formal collaborations and informal relation- ships with industry peers and key players. Such affiliations indicate that your company is well-connected and capable of navigating complex eco- profiles of your executive team matter. Their experience, industry knowledge, and track record can instil confidence in acquirers that your leadership is capable of driving post-merger success. M&A readiness assessment Conducting an M&A readiness assess- ment is a crucial step. This evaluation helps identify potential weaknesses, risks, and areas of improvement that may hinder a smooth M&A process. It aims to ensure that your organisa- tion is prepared for the due diligence process and can address any concerns that acquirers may have. Whether it’s improving financial transparency, resolving legal issues, or streamlin- ing operations, addressing these issues in advance can streamline the M&A process and bolster your position. What the future holds Looking beyond 2024, we anticipate even more dynamic shifts in the M&A landscape. The role of AI, data analyt- ics, and sustainability considerations will gain prominence. Companies that can adapt to these evolving trends and continue to proactively position themselves as sought-after entities will thrive in the M&A game. systems. It also underscores your value proposition by showcasing your ability to synergise with potential acquirers. These alliances can lead to joint ven- tures, co-development opportunities, and a broader market presence, making your organisation even more attractive. Brand reputation and executive profiles Maintaining a stellar brand reputation is paramount. Beyond financial met- rics, your brand is an intangible asset that can significantly influence M&A attractiveness. This goes beyond mere- ly possessing a widely recognised logo; it involves becoming synonymous with trust, excellence, and integrity within your industry. Additionally, the “YOUR BRAND IS AN INTANGIBLE ASSET THAT CAN SIGNIFICANTLY INFLUENCE M&A ATTRACTIVENESS” Creating a thriving company culture is essential in the quest to become a sought-after entity in M&A16 CEO MIDDLE EAST MARCH 2024 $2 trillion a year threat looms over global societies. One that does not respect borders. It can circle the globe in seconds. It is not new but has been evolving for well over a century. The modern danger is that its sophistication is increasing all the time, turbocharged by technology and globalisation. That borderless threat: Financial crime In the UAE we have been taking decisive action to address this digitally driven criminal age. Over the past few years, we have made significant progress in upgrading our ability to fight financial crime. Last week, the Financial Action Task Force (FATF) plenary, the global money laundering and terrorist financing watchdog, congratulated us on our significant progress and for having committed to ‘implementing an Action The next step in the UAE’s continuous efforts will come later this year when the new National Strategy and Plan for 2024-27 is launched UAE GREY LIST REMOVAL IS A TESTAMENT TO THE NATION’S CONTINUED RESOLVE TO COMBAT FINANCIAL CRIME The UAE is playing a much more active role within FATF, through its full membership of the MENAFATF body, according to Al Zaabi FINANCE BY HAMID AL ZAABI, DIRECTOR GENERAL, EXECUTIVE OFFICE OF ANTI-MONEY LAUNDERING AND COUNTER TERRORISM FINANCING AFINANCE MARCH 2024 CEO MIDDLE EAST 17 Plan to resolve swiftly the identified strategic deficiencies within agreed timeframes’. The FATF confirmed that the UAE is no longer subject to its in- creased monitoring process (grey list). In recognition of the importance of this threat, in 2022 the UAE gave a high-level political commitment to strengthen the effectiveness of its finance crime defences. This was built on a clear under- standing that financial crime is a global problem. Therefore, an international effort is required. This begins with an understanding that the responsibility for preventing financial crime, money laundering and terrorist financing involves a wide range of stakeholders including policymakers, regulators, law enforcement, financial intelligence, and private sector firms. By blending a whole-of-govern- ment approach locally, with an active and coordinated approach globally, information is shared much more quickly across competent authorities enabling better coverage and detec- tion of illicit behaviour. That is why the UAE has been working closely with international partners, including sharing information across multiple jurisdictions and financial institutions. The bedrock of these trusted relationships are technically termed Mu- tual Legal Assistance (MLA) agreements. The UAE now has 45 MLAs in place. These are a form of cooperation between countries for obtaining assistance in the investigation or prosecution of criminal offences, alongside the recovery of the proceeds of financial crime. The UAE is playing a much more active role within FATF, through its full membership of the MENAFATF body, but also through observer status in the Eurasia and Asia Pacific Groups. Indeed, the latter will host its annual meeting in Abu Dhabi in September, the first time it has gathered in the Middle East. Aligning with the very best global standards and latest thinking is a recur- our efforts. That is why the UAE’s Ex- ecutive Office of AML/CTF is setting up a Statistics Centre to track, moni- tor and report progress against plan. This marks an important period for the UAE, given FATF’s next Mutual Evaluation Report happens in 2026. As threats to the global financial system grow, the UAE is committed to being agile in approach. To harnessing the full power of technology and ma- chine learning to embed an intelli- gence-led approach financial crime. This includes investment in people, systems and processes and playing a much more visible role internationally. By being one step ahead of illicit actors, we can collectively start to secure some of the trillions in eco- nomic growth lost to financial crime every year. We are determined to make the UAE one of the strongest and most respected economies in the modern world. A thriving international finan- cial centre, global trading hub and safe, enabling business environment. That is why we are determined to be at the forefront of the financial crime fight. ring theme. That is why the UAE’s upcoming National Risk Assessment is being carried out using the World Bank Group methodology. This will further increase understanding around the UAE’s risk profile and enable the prioritisation of resources towards threats across supervisors, registrars and financial intelligence. Confiscation is one of the best ways to measure effectiveness. The UAE confiscated more than AED 5.4bn ($1.4bn) from December 2021 to June 2023, primarily from cases related to professional and trade-based money laundering. Between November 2022 and February 2023 the conviction rate was 94 percent. Failure to protect the integrity of a financial system has significant consequences. It threatens the safety and reputation of firms, can result in consumer and investor impacts, and, in extreme circumstances, can create instability in the wider economy. The next step in the UAE’s con- tinuous efforts will come later this year when the new National Strategy and Plan for 2024-27 is launched. Measur- ing progress will be a cornerstone of The UAE confiscated more than AED 5.4bn ($1.4bn) from December 2021 to June 2023, primarily from cases related to professional and trade-based money launderingGROWTH THROUGH VISION Hassan Sharbatly, CEO of Al Nahla Hospitality, unpacks his commitment to talent and investment COVER STORY 18 CEO MIDDLE EAST MARCH 2024s one of Saudi Arabia’s leading entrepreneurs, Hassan Sharbatly is focused on transforming the kingdom’s thriving hospitality sector. Through his leadership of Al Nahla Hospitality, a subsidiary of the prominent Al Nahla Group business empire, Hassan aims to drive growth, innovation and excellence in alignment with Saudi Vision 2030. Born into a distinguished lineage of entrepreneurs, Hassan draws from his family’s rich legacy in numerous industries as he steers two companies towards realising the ambitious goals of Vision 2030. “As an entrepreneur overseeing a multi-generational legacy, my vision seamlessly aligns with Saudi Vision 2030,” says Hassan. “Rooted in a commitment to contribute to the nation’s growth, I focus on fostering innovation, embracing sustainability, and actively participating in economic diversification.” As the CEO of Al Nahla Hospital- ity, Hassan’s role is “to steer the com- pany towards excellence in the ever- evolving hospitality landscape.” The group’s focus includes “creating distinc- tive experiences, optimising real estate assets, and actively participating in sustainable projects in alignment with Vision 2030 to enrich our portfolio.” Their efforts reflect “a commitment to diversification and informed decision- making across various ventures.” Looking ahead to 2024, Hassan’s aspirations for Al Nahla Hospitality are “strategically audacious.” Plans include “strategic investments in the tourism sector with upscale hotels like SLS, SO, 25Hours, and Fairmont.” The group also aims to “expand our footprint in the hospitality industry by 2024, introducing prestigious brands, such as restaurants of the French Moma Group — Manko, Noto, Café Laperouse, and Mimosa.” A MARCH 2024 CEO MIDDLE EAST 19Next >