< Previous20 CEO MIDDLE EAST MARCH 2024 COVER STORY HASSAN SHARBATLY Through these strategic moves, Hassan intends to “diversify our port- folio, strengthen customer relation- ships, set benchmarks in real estate development, and play a pivotal role in realising Vision 2030’s objectives through sustainable practices.” His vi- sion reflects Al Nahla’s commitment to enriching their offerings and partici- pating in the rapid transformation of Saudi’s economy. An entrepreneurial legacy Hassan comes from a lineage of prominent Saudi businessmen. His grandfather, Hassan Abbas Sharbatly, founded Al Nahla Group in 1946 which has since grown into one of the top 10 family businesses in the country. Al Nahla Group holds sig- nificant assets across various indus- tries including real estate, automo- tive, trading and finance. Al Nahla Group’s influence on Saudi Arabia’s economic develop- ment cannot be understated. The company played an instrumental role in establishing Riyad Bank, where Al Nahla stands as the largest share- holder in the largest private bank in the kingdom. Acknowledged for his business prowess, Hassan strategically utilised his family’s investments in Jeddah Tower, destined to be the world’s tallest skyscraper, to procure multiple hospitality brands. This astute maneuver not only positioned them for prominence at this budding global landmark but also played a pivotal role in Hassan’s appointment by the Ministry of In- vestment as a member of the official Saudi Investment delegation team. “AIM HIGH, EMBRACE CHALLENGES AS OPPORTUNITIES, AND STAY STEADFAST IN PURSUING YOUR GOALS” Al Nahla Hospitality focuses on creating distinctive experiences, optimising real estate assets, and actively participating in sustainable projects aligned with Vision 2030MARCH 2024 CEO MIDDLE EAST 21 HASSAN SHARBATLY COVER STORY Continuing this legacy of diversify- ing assets and contributing to Saudi’s progress, Hassan graduated from prestigious universities in the UK with qualifications in international business and management. He started his career in corporate banking with Credit Suisse in Zurich, where he gained expertise in finance and strategic planning. These experiences served as an ideal founda- tion for Hassan to one day lead Al Nahla Group’s holdings and vision. Developing hospitality assets While CEO of Al Nahla Hospitality, Hassan has played an instrumental role in transforming Jeddah’s land- scape. As he explains, “Our invest- ments focus on projects that contrib- ute to the kingdom’s development.” An exemplary endeavour includes revitalising Jeddah Walk into an exceptional new urban hub. Under Hassan’s leadership, Jeddah Walk now features versatile devel- opments, performance studios, art galleries and notably, the kingdom’s first-ever flagship Ferrari showroom. Additionally, he introduced re- nowned restaurant brands like Amar Restaurant and establishments from the prestigious Moma Group such as Café Lapérouse, Manko, Mimosa, Noto, and Boeuf Sur Le Toit which have enriched the dining scene. These developments not only activate Jeddah’s public spaces but set new standards for the city’s hospi- tality offerings in line with global brands. Hassan’s strategic investments in turn reinforce Saudi Vision 2030’s objective to greatly expand leisure and entertainment sectors domesti- cally and internationally. Capitalising on opportunity While founding roots in a herit- age of entrepreneurship, Hassan also demonstrated his ability to identify opportunities amid challenges as the global pandemic emerged in 2020. That year, he established 360° mar- keting solutions firm Digitect to fulfil rising needs in app development, digital operations and more. “In 2020, Digitect emerged as a strategic response to the challenges posed by the global pandemic,” ex- plains Hassan. Recognising demands in the Saudi market, he moved to capitalise on growth sectors and positioned Digitect at the forefront of digital transformation. Even in difficult economic conditions, Hassan exhibited his entrepreneurial mindset and long-term vision by establishing this innovative company. Today as Chairman of Digitect, Hassan continues actively overseeing governance and providing strategic advice as the firm establishes itself as a leader in the dynamic market- ing industry. Through bold moves like launching Digitect, he sets an example for agile decision making and optimistically guiding companies during unpredictable times. A visionary steering transformation Looking ahead, Hassan says his objective as an entrepreneur is “to play a pivotal role in Saudi Arabia’s rapid transformation.” Beyond his professional roles, he emphasises giving back through involvement in philanthropic initiatives. The Has- san Abbas Sharbatly Foundation for Community Service, established by his family, demonstrates their strong commitment to societal progress through humanitarian efforts. Such commitment aligns with wider Vi- sion 2030 goals to drastically improve quality of life for all Saudis. Moreo- ver, Hassan accepts an appointment by the Ministry of Investment as a member of the official Saudi Invest- ment delegation team, positioned to advise on attracting capital that drives economic diversification. These roles show his influence extends far be- yond any single business interest. When asked for his message to Saudi youth, Hassan urges them to “aim high, embrace challenges as opportunities, and stay steadfast in pursuing your goals.” Through un- relenting dedication to both personal growth and national development, the next generation can gain inspiration from his exemplary journey in resur- recting the legacy of Al Nahla Group. Under Hassan’s astute leadership, Al Nahla Hospitality and its partners are undoubtedly embarking on an ambitious new chapter defined by innovative strategies and a commit- ment to realising Vision 2030. As a respected entrepreneur devoted to intensifying the kingdom’s transfor- mation, Hassan remains a business leader worth following for many years to come. 22 CEO MIDDLE EAST MARCH 2024 igital art has experienced an unprecedented boom in recent years, led by the introduction and popularisation of Non-Fungible Tokens (NFTs). These unique digital assets have al- lowed artists to monetise their work in a way that was previously not pos- sible. At the same time, NFTs have given collectors the opportunity to acquire clearly verifiable ownership rights to digital artworks. This has led to record sales, such as Beeple’s digital artwork “Everydays: The First 5000 Days”, which sold at Christie’s in March 2021 for an incredible $69.3m. This sale marked a historic moment, demonstrating the huge financial appreciation and interest in digital artworks on a global stage. Investing in digital art Digital artworks offer opportunities that go far beyond traditional investments. The ability to acquire artworks that offer clearly verifiable ownership rights represents a paradigm shift in the art world. Blockchain technology allows investors to conduct transparent and secure transactions, which is not pos- sible in the traditional art world. This technology allows us to directly verify authenticity and ownership without intermediaries, which significantly im- proves liquidity and market access. At the same time, the risks inherent in a young digital art market should not be ignored. The volatility of NFT prices can pose challenges for inves- tors and the long-term performance of digital artworks is not yet fully predict- able. However, we at CAST Studio and our cryptocurrency Castello Coin are convinced that the opportunities offered by digital art outweigh the risks. The advantages of the digital art world – its uniqueness, transparency, security and liquidity – will make it an attractive and promising form of investment that has the potential to change permanently the landscape of art investment. Digital art adds a dynamic, vibrant side to the traditional art scene and invites investors to be part of this ongoing change. This raises the question of the value of digital art as an investment opportunity DIGITAL ART: IS IT WORTH INVESTING IN? Ritter says digital artworks offer opportunities that go far beyond traditional investments INVESTING BY FABIAN RITTER, HEAD OF COMMUNICATION, CAST STUDIO DINVESTING MARCH 2024 CEO MIDDLE EAST 23 Investment strategies The market for digital art is show- ing robust growth. An increasing number of platforms are enabling the purchase, sale and presentation of digital artworks, and more and more traditional art institutions are recog- nising digital art as a legitimate form of artistic expression. Yet, careful research is essential for investors looking to invest in digital art. Firstly, a thorough familiarisa- tion with the basics of NFTs and the underlying blockchain technology is recommended. This knowledge is crucial in order to be able to assess the authenticity, origin and value of digital artworks. It is also important to understand the artistic meaning behind a work. Not every digital artwork is a worthwhile investment. Careful due diligence before buying is also important. This includes re- searching the history of the artist, the provenance of the artwork and previ- ous sale prices of similar works. A diversified portfolio of digital art can help to spread risk while maximising opportunities in a dynamic market. Trustworthy digital investment through physical brand ambassadors However, for digital art to become part of more and more portfolios, one thing is needed above all: trust. Digi- tal art serves as a link between the an- alogue and digital era, as the Castello Cube exhibition in Dubai impressive- ly demonstrated. The Castello Cube, based on the cryptocurrency Castello Coin by CAST Studio, combines a digital asset with physical art made of 24-carat gold. This approach of using a physical artwork as a brand ambassa- dor for a cryptocurrency creates trust and emotional connection in what is often considered a complex market. The Castello Coin not only symbolises security and transpar- ency through exclusive custody and account options, but also creates a popular ski resort in January. They will remain in place as an art installation un- til the snow melts. At the same time, the sculptures will be digitally refurbished and can be purchased as NFTs. The purchase continues to bring real-world value, such as VIP access to the event’s closing concert, free entry to LEGO theme parks and exclusive pre-purchase rights for limited editions. 99 per cent of digital artworks have no direct real- world value. At CAST Studio, digital art, investment and value creation are linked in a completely new way and can be experienced in real life. The bottom line is that for those willing to engage with the character- istics of this new market, digital art offers unique opportunities to benefit both aesthetically and financially. In an increasingly digitalised world, invest- ing in digital art could not only enrich a portfolio, but also offer a taste of the future of art and collecting. connection that goes beyond mere investment. In this way, the “digital gold” is positioning itself in the NFC art market. It breaks barriers with an approach that reduces complexity and builds trust by combining the best of both worlds – the beauty of art and the innovation of cryptocurrency. In doing so, it also creates real added value. For example, in a partnership between CAST Studio and LEGO: Real ice figures were created by artists in the “DIGITAL ART OFFERS UNIQUE OPPORTUNITIES TO BENEFIT BOTH AESTHETICALLY AND FINANCIALLY” Digital art “Everydays: The First 5000 Days” was sold at Christie’s in March 2021 for an incredible $69.3m24 CEO MIDDLE EAST MARCH 2024 owing across the Atlantic Ocean is no small feat. It’s a journey that tests the limits of physical endurance, mental resilience, and the ability to work as a cohesive team in the face of adversity. As some- one who has completed some of the toughest endurance challenges on the planet, I can attest to the myriad lessons learned along the way – lessons that surprisingly parallel the demands and dynamics of corporate life. The Atlantic crossing taught me the importance of setting ambitious yet achievable goals, of meticulously plan- ning and preparing for every eventual- ity, and of maintaining unwavering focus and determination, even when the odds seem insurmountable. These are the same principles that drive success in the corporate world – setting strategic objectives, devising comprehensive business plans, and staying committed to achieving results despite the inevita- ble obstacles that arise. But perhaps the most profound lesson I gleaned from rowing across the Atlantic is the power of teamwork. In the middle of the vast ocean, thousands of miles from land, there’s no room for egos or individual agendas. Suc- cess hinges on the ability of each team member to communicate effectively, to trust in their counterparts, and to collaborate seamlessly towards a com- mon goal. This ethos of teamwork and collaboration is equally essential in corporate environments, where the syn- ergy of diverse skill sets and perspectives often determines the difference between mediocrity and excellence. It’s this fusion of physical and mental fortitude, strategic thinking, and teamwork that inspired me to establish EnduranceXcel – a platform dedicated to providing motivational speakers who embody the spirit of endurance and resil- ience. Our mission is clear: To empower organisations by offering speakers who specialise in inspiring and captivating staff, thereby bolstering engagement The transformative power of endurance adventures for staff EMPOWERING CORPORATE SUCCESS Morris combines his passion for ultra-endurance sports and adventure with his mission to inspire and empower individuals and organisations to reach their greatest potential LEADERSHIP BY SAMUEL MORRIS, ULTRA-ENDURANCE ATHLETE AND FOUNDER AND CEO OF ENDURANCEXCEL RLEADERSHIP MARCH 2024 CEO MIDDLE EAST 25 and elevating productivity across teams. At EnduranceXcel, we understand that motivation is not a one-size-fits-all solu- tion. That’s why we offer a diverse roster of speakers, ranging from 8,000-metre plus mountaineers to ocean rowers, from endurance runners, to AI futurists, to ad- venture economists, to Paralympic gold medallists. Each speaker brings a unique perspective and a wealth of experience, whether they’ve conquered the world’s highest peaks or kayaked the entire length of the River Nile. What sets our speakers apart is not just their extraordinary achievements in the realm of physical endurance, but also their leadership roles in business. Many of them are successful entre- preneurs, former military officers, or corporate executives who understand the nuances of organisational dynamics and can offer invaluable insights into effective leadership, team building, and resilience in the face of challenges. Whether it’s a corporate event, after- dinner gathering, keynote address, or specialised training session, EnduranceX- cel has the perfect speaker to inspire and motivate your team. Our speakers don’t just deliver speeches – they ignite pas- sion, instil confidence, and spark mean- ingful change within organisations. In a world where the pace of busi- ness is relentless and the pressure to per- form is ever-present, the lessons learned from extreme endurance challenges resonate more than ever. By harness- ing the wisdom and experience of our speakers, EnduranceXcel is committed to helping organisations thrive in the face of adversity, navigate uncertainty, and achieve unparalleled success. “IN THE MIDDLE OF THE VAST OCEAN, THERE’S NO ROOM FOR EGOS OR INDIVIDUAL AGENDAS” Success hinges on the ability of each team member to communicate effectively, to trust in their counterparts, and to collaborate seamlessly towards a common goal $20bn The capital Samuel Morris has successfully sourced, underwritten and managed across various markets and sectors 26 CEO MIDDLE EAST MARCH 2024 n a historic win for Saudi Arabia last year, the kingdom secured the hosting rights for World Expo 2030. As Saudi Arabia prepares to host this groundbreaking event, it’s apt to remember the na- tion’s rich history and the significance Arabia’s journey towards progress and global prominence. With a legacy spanning over 170 years, World Expos have served as essential platforms for nations to showcase their advancements in technology, culture, and commerce. From the Crystal Palace Exhibition in London in 1851 to more recent events like Dubai Expo 2020, these exhibi- tions have left an indelible mark on the world stage. One need only to think of the Eiffel Tower, one of the world’s most historic landmarks, which was the product of the 1889 Paris World Expo, to underscore the point. Now, the kingdom, thanks to its remarkable achievement, will have the chance to showcase the innovation, collaboration, and progress taking place across the country on a global stage, in its very own capital city, Riyadh. But with the event drawing in millions of visitors from around the world, organis- ing a World Expo is no easy feat. To provide some idea of the magnitude of the event, the last World Expo in the UAE was attended by 24 million plus visitors with 192 country pavilions spread across a 500-acre space. Logistics, encompassing supply chains, transportation, and infrastruc- ture, has a huge part to play in facilitat- ing large-scale global events such as the Expo. An event of this magnitude requires expertise in handling mam- moth operations. From orchestrating the seamless coordination of transporta- tion networks to the precise manage- ment of goods, warehousing and supply chains, logistics serves as the backbone for ensuring the uninterrupted flow of exhibits, attendees, and resources es- sential for the Expo’s success. Meeting World Expo 2030 Logistics Requirements Saudi Arabia is no stranger to large-scale events and exhibitions, having success- fully hosted numerous international conferences, summits, and sporting With a legacy spanning over 170 years, World Expos have served as essential platforms for nations to showcase their advancements in technology, culture, and commerce EMPOWERING SAUDI ARABIA’S WORLD EXPO 2030 SUCCESS Logistics will play a pivotal role in shaping Saudi Arabia’s journey towards becoming a global industry leader, Al Salhi says LOGISTICS BY FAHAD AL SALHI, CHIEF SOLUTIONS OFFICER, AJEX LOGISTICS SERVICES I of events like World Expo 2030 in shaping its future. Just as we celebrate Saudi Founding Day on 22 February, commemorating the establishment of the kingdom by King Abdulaziz in 1932, the hosting of World Expo 2030 represents another milestone in Saudi LOGISTICS MARCH 2024 CEO MIDDLE EAST 27 events in recent years. From the Formula E races in Diriyah to the G20 Summit in Riyadh, the kingdom has demonstrated its ability to orchestrate seamless logistics operations on a grand scale. Combined with its logistical exper- tise and prowess, Saudi Arabia is certainly more than capable of handling the mam- moth task that is putting together a suc- cessful World Expo event. The kingdom boasts one of the world’s most advanced logistics ecosystems, supported by its strategic geographic location and thriv- ing industries. With a legacy of trade and commerce dating back centuries, it has cultivated expertise in logistics that spans across various sectors, including oil and gas, petrochemicals, and manufactur- ing. Today, the kingdom’s proficiency in managing complex supply chains and handling massive cargo shipments has earned it a reputation as a global logistics hub, attracting businesses and investors from around the world. At the same time, Saudi Arabia continues its ongoing investments in expanding transportation networks and modernising ports and airports. In 2021, the kingdom committed to investing over SAR500bn ($133.34bn) in airports, seaports, rail, and other infrastructure by the end of the decade in a bid to transform it into a global transportation and logistics hub. Pro- jects such as the development of smart logistics hubs, and the implementation of advanced customs clearance systems are not only vital for Expo 2030 but will also leave a lasting legacy that will benefit Saudi Arabia’s logistics sector for years to come. As part of its bid to become a global logistics leader, Saudi Arabia’s is also investing in innovation to further enhance its logistical capabilities. By integrating cutting-edge technologies such as AI and blockchain into logistics processes, the kingdom is working to ensure the transparency and optimisa- tion of its operations. For instance, King Abdulaziz Port in Dammam is and fundamentally advance Saudi Arabia’s economic growth objectives. Research by Al-Rajhi Capital shows that Riyadh will enjoy a SAR355bn ($94.64bn) boost to its economy. Moreover, a 0.75 percent annualised impact is expected over the next 25 years on account of the event, which is also projected to accelerate the devel- opment of government-led giga-pro- jects. In the case of the Dubai World Expo, the industries to benefit most from local growth included events organisation and business services, construction, restaurants and hotels. All of this will demand a robust, reliable, secure and efficient logistics infrastruc- ture and supply chains. Logistics, the silent force driving the seamless orchestration of this grand event, will play a pivotal role in shap- ing Saudi Arabia’s journey towards be- coming a global logistics leader. Expo 2030 not only serves as a testament to Saudi Arabia’s logistical prowess but also accelerates the development of its logistics industry and broader eco- nomic landscape. By showcasing its expertise in managing complex supply chains, handling massive cargo ship- ments, and integrating cutting-edge technology, the kingdom reaffirms its position as a global logistics hub of unparalleled significance. embracing automation with automated container terminals and IoT-enabled tracking systems, while King Khalid International Airport in Riyadh adopts AI-powered baggage handling systems and biometric identification, streamlin- ing passenger and cargo processing. These technologies not only enhance efficiency but also enable proactive problem-solving, anticipating and mitigating potential disruptions before they occur. Long term impact for Saudi The long-term impact of hosting World Expo 2030 will reverberate across the kingdom for generations to come. Expo 2030 will fuel the tourism industry, provide a vital platform for attracting international investments, “THE LONG-TERM IMPACT OF HOSTING WORLD EXPO 2030 WILL REVERBERATE ACROSS THE KINGDOM FOR GENERATIONS TO COME” Expo 2030 will fuel the tourism industry, provide a vital platform for attracting international investments, and fundamentally advance Saudi Arabia’s economic growth objectives28 CEO MIDDLE EAST MARCH 2024 tartups are the driving force of innovation and economic growth in the Middle East, particularly in the UAE, where the country’s leadership clearly engaged in creating a favourable environment to attract startups, both by directly supporting them and by designing the long-term strategy to create an environment in which those driving innovation will find the ideal place to live and thrive. However, securing funding re- mains the most significant hurdle for startups. And as competition increases and considering the trends in venture capital investment, focusing on secur- ing adequate funding is vital: The best and most innovative initiative can fail if not adequately structured and sup- ported by adequate funding from the early stage all the way to scaling up the business. This is a vital element to ad- dress, along with market validation via demonstrating the viability of a new product or service, which can be chal- lenging, and investors may hesitate to commit capital without clear evidence of demand. As we dig into the issue of limited access to capital, we can immediately identify the difficulty of accessing traditional financing sources such as banks, especially at an early stage of the initiative, as they require substantial collateral and may be reluctant to lend to early-stage companies with a short and unproven track record. Therefore, securing funding must look at government support and pri- vate investor involvement. As for the governmental support and efforts in the UAE in particular, besides the free zones that offer favour- able tax incentives, 100 percent foreign ownership, and simplified registration processes, making it easier for startups to establish a presence in the country, the UAE Investment Law offers incen- tives to foreign investors beyond the free zone setup, including 100 percent While securing funding remains pivotal, it’s a multifaceted challenge ADDRESSING STARTUP NEEDS IS CRITICAL TO ECONOMIC SUCCESS The UAE has taken steps to simplify regulations and reduce bureaucratic barriers for startups, d’Ambrosio says STARTUP BY ROBERTO D’AMBROSIO, CEO, AXIORY GLOBAL SSTARTUP MARCH 2024 CEO MIDDLE EAST 29 ownership in certain sectors and long- term residency visas for investors and entrepreneurs. Various government-backed fund- ing programmes have been imple- mented, such as the Khalifa Fund for Enterprise Development and the UAE Innovation Fund, in order to provide financial support to startups, especially in the field of sustainability and new technologies, and also providing men- torship to startups. We can also mention incubators and accelerators, such as Dubai Tech- nology Entrepreneur Campus (Dtec) and In5, provide startups with access to co-working spaces, mentorship, and networking opportunities. As startup may encounter regula- tory and legal obstacles when seeking funding, the UAE government has taken steps to simplify regulations and reduce bureaucratic barriers for startups, creating a more favourable environment for investment. While all of the above creates a fa- vourable environment, startups need to integrate funding by accessing private investment capital. The effort has be- come more difficult during the last year in which, as the trends, especially in the venture capital landscape, have been showing a lower pace in investments number and volumes, as the depth of their due diligence has increased result- ing in a longer time needed to perform it and take the investment decision and uncertainties regarding a possible economic slowdown due to structural imbalances of the global economy and the geo-political tension rising and af- fecting an increasing number of regions has led to a reduced risk appetite. To the above, we should add the specific approach of the investor community in the Middle East, which shows a preference for more traditional investment opportunities with lower perceived risks, reducing the amount of investment capital available for start- ups, especially in their early stage. the risk for private investors? In general, governments can col- laborate with industry associations and educational institutions to raise awareness and educate potential investors about the benefits and risks of startup investments and encourage early-stage investments through further tax incentives, regulatory harmonisation and process simplification. Creating matching programmes can attract more investors to the startup ecosystem, via establishing co-investment platforms that bring together government funds, venture capital firms, and angel investors to co- invest in startups, spreading the risk. Also, introducing venture debt options, with some form of guarantee from the government, attracting tradi- tional financing players and facilitating the employment of their investment capital, can provide startups with an alternative source of funding, reducing their reliance on equity investments and dilution of ownership which is always a risk when VCs are involved. Last but not least, given the impor- tance the exit strategy holds especially for VCs, establishing clear pathways to exits, such as fostering a robust M&A environment and creating a strong, liquid and diversified IPO market, can instil confidence in investors and facili- tate their decision-making process. In such an environment, startups need to make sure that they are well informed about all the government initiatives to support the sector, and really focus on clearly defining their short, medium and long-term plans and sustainability requirements, utilising a methodology that allows a high level of confidence, thus allowing private inves- tors, especially VCs, to assess at pre-seed stage their entire value chain, from the seeding stage to the exit/IPO phase. Your idea, no matter how innova- tive, is as good as your ability to structure it in a reliable and sustainable way, and your ability to adequately address all the risk factors involved in the initiative, so to lower the risk evaluation of the prospective investor. What can governments do to fur- ther facilitate startup funding and lower “THE BEST AND MOST INNOVATIVE INITIATIVE CAN FAIL IF NOT ADEQUATELY STRUCTURED AND SUPPORTED BY ADEQUATE FUNDING” Various government-backed funding programmes such as the Khalifa Fund for Enterprise Development, have been implemented in order to provide financial support to startups in the UAENext >