AN ITP MEDIA GROUP PUBLICATION JULY 2024 • VOL.1 • ISSUE 06Join the number one: difc.ae/business/make-an-enquiry Join the #1 financial centre to access more wealth When you join the number one global financial centre in the region, you can access the highest concentration of wealth in any Middle Eastern city. Nearly 80,000 millionaires live in Dubai. USD 3trn of private wealth is within an hour’s flight and USD 8trn available across the Middle East, Africa and South Asia. No wonder more than 370 hedge funds, private equity, venture capital, private banking and asset management firms have chosen DIFC as a catalyst for growth.fi nancemiddleeast.comJuly 2024 | 3 EDITOR’S LETTER Welcome to the latest edition of Finance Middle East! In this issue, we explore how Middle Eastern sovereign wealth funds are reshaping the investment landscape, emerging as major players in the global economy. We analyse their strategies for tapping into promising opportunities beyond their home markets while remaining committed to supporting entrepreneurship, innovation and economic development within their respective regions. Our cover story provides a comprehensive snapshot of the GCC fi nancial markets, focusing on the region’s IPO momentum. In 2023, GCC states raised a total of $10.79 billion from new listings. Will this trend continue? Experts weighed in with their insights. This edition also delves into the Middle East travel sector, which is forecasted to grow by 40% between 2022 and 2026, with the hospitality industry’s market value projected to reach $37.62 billion by 2028. In the coming years, the region is set to unveil a series of large-scale, sustainable and luxury-focused destinations designed to capture—and retain—the world’s attention. How is the Middle East achieving this? We provide the answers in our detailed story inside. Additionally, in an exclusive interview with Finance Middle East, Red Sea Global’s Gregory Djerejian shares his vision for the future of investment, IPOs and upcoming milestones for the Saudi developer. Lastly, we look ahead to what’s in store for the global economy for the rest of 2024. With the fi rst half of the year behind us, investors and researchers are keenly searching for clues about what the next six months will bring and which investments are poised to yield the highest returns. Happy reading! Nivetha Dayanand Editorfi nancemiddleeast.com4 | July 2024 CONTENTS 16 10 20 28 DESTINATION MIDDLE EAST How is the Middle East setting global tourism standards? FUNDING THE FUTURE How Middle Eastern sovereign wealth funds are changing the face of investments THE IPO MOMENTUM Behind the Middle East capital markets’ roaring success HOW IS THE METAVESE REDESIGNING THE FASHION INDUSTRY? The fashion industry is leveraging tokenomics and digital identify to build stronger customer connections 10 20 28 16fi nancemiddleeast.comJuly 2024 | 5 38 30 44 52 REDEFINING THE FACE OF LUXURY TOURISM Red Sea Global’s Gregory Djerejian on future investment, IPO and upcoming milestones MASTERS OF THE MARKETS For GCC stock exchanges, it’s all about collaboration and innovation DEFYING THE FORECAST The global economy thrives in 2024 despite high infl ation and geopolitical risks WHAT’S DRIVING CENTRAL BANKS’ GOLD RUSH? Central banks have been signifi cant buyers of gold in recent years amid economic and geopolitical uncertainty 30 4438 52fi nancemiddleeast.com6 | July 2024 PO Box 500024, Dubai, UAE Tel: +971 4 444 3000 Web: www.itp.com Offices in Abu Dhabi, Dubai, London, Mumbai, Riyadh & Geneva ITP MEDIA GROUP CEO: Ali Akawi Managing Director: Alex Reeve EDITORIAL Group Editor: Kate-Lynne Wolmarans Tel: +971 4 444 3541 email: kate.wolmarans@itp.com Editor: Nivetha Dayanand Tel: +971 4 444 3887 email: nivetha.dayanand@itp.com Deputy Editor: Beatriz Valero Tel: +971 4 444 3413 email: beatriz.valero@itp.com Commercial Editor: Angitha Pradeep Tel: +971 4 444 3278 email: angitha.pradeep@itp.com ART Art Director: Amjad Ayche Art Editor: Tofi q Memon Contributing Designer: Muhammed Nahas ADVERTISING Group Commercial Director: Anup Nagpurkar Tel: +971 4 444 3573 email: anup.nagpurkar@itp.com Senior Commercial Manager: Ines Ben Rejeb Tel: +971 4 444 3223 email: ines.benrejeb@itp.com PHOTOGRAPHY Videographer: Muhammad Kaleem Senior Video Editor: Liju Cheruvathur Social Media & Production Manager: Andy Ruedas PRODUCTION Production Coordinator: Manoj Mahadevan Senior Image Editor: Emmalyn Robles DISTRIBUTION Distribution Coordinator: Avinash Pereira Circulation Executive: Rajesh Pillai ITP GROUP CEO: Ali Akawi CFO: Toby Jay Spencer-Davies The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. 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TUNE IN EVERY TUESDAY FOR A NEW EPISODE ChequePoint_AD_205x275_B1_Approved.indd 127/06/2024 10:23NEWS fi nancemiddleeast.com8 | July 2024 Central bank digital currencies (CBDCs) have the potential to lower the cost of fi nancial services, widening fi nancial inclusion in the process, the International Monetary Fund (IMF) has found. The fund conducted a survey of 19 countries exploring the introduction of a CBDC in the Middle East and Central Asia. Currently, two thirds of the region’s nations have expressed interest in this technology. The research showed that, while many of these countries are still at the research stage, nations such as Bahrain, Georgia, Saudi Arabia and the UAE have moved to the more advanced “proof-of-concept” stage. According to the report, CBDCs can allow for transactions to be settled more directly and with less intermediation, in turn lowering the cost of fi nancial services and making them more accessible. Similarly, CBDCs could also encourage upgrading technology platforms and the effi ciency of payment services, helping fi nancial services reach more people, IMF stated. However, the survey noted that adopting a CBDC “requires careful consideration” and stressed that improving other digital CBDCs CAN ADVANCE FINANCIAL INCLUSION IN THE MIDDLE EAST, IMF FINDS Almost two-thirds of countries in the Middle East and Central Asia are interested in CBDCs payment systems “may be a more practical alternative to CBDCs”. The IMF noted that cross-border technology platforms such as the UAE’s Buna have been able to address these issues and promote digital currency payments between countries. “Introducing digital currencies will be a long and complicated process that central banks must approach with care,” the IMF said. “Policymakers need to determine if a CBDC serves their country’s objectives and whether the expected benefits outweigh the potential costs, risks for the fi nancial system and operational risks for the central bank.”NEWS fi nancemiddleeast.comJuly 2024 | 9 Credit facilities provided by the UAE national banks to the business and industrial sectors amounted to AED 15.6 billion ($4.24 billion) in the fi rst quarter of 2024, according to the latest fi gures released by the Central Bank of the UAE (CBUAE). The cumulative credit balance provided to these two sectors grew by AED 9.3 billion KUWAIT SOVEREIGN WEALTH FUND EXPANDS INTO KSA UAE NATIONAL BANKS PROVIDE AED 15.6 BILLION IN BUSINESS CREDIT FACILITIES The new offi ce is expected to strengthen economic relations between the two nations ($2.53 billion) or 1.24% from AED 748.1 billion ($203.7 billion) month-on-month, showcasing a year-on-year growth of 3.02%, or AED 22.2 billion ($6.04 billion), from AED 735.2 billion ($200.1 billion) in March 2023. The two sectors saw a 2.1% rise in cumulative credit balance to AED 757.4 billion ($206.2 billion) in the fi rst three months of 2024, compared to AED 741.8 billion ($201.9 billion) in Q4 2023. National banks provided the most credit to the two sectors, totalling AED 841.7 billion ($229.18 billion), or 90% of the combined credit balance of the two sectors. The credit balance for the sectors from banks in Abu Dhabi was around AED 374.1 billion in Q1 2024, while banks in Dubai provided AED 363.3 billion. The Kuwait Investment Authority (KIA), has announced its intention to expand its presence in Saudi Arabia to “solidify bilateral relations” between the two countries. KIA, which oversees over $800 billion in assets, is one of the oldest sovereign wealth funds in the region. Kuwait’s Minister of Finance and Minister of State for Economic Aff airs and Investment, Dr Anwar Al Mudhaf announced the fund’s decision. Al Mudhaf, who is also Chairman of the Board of Directors of KIA said, “The Kingdom of Saudi Arabia is witnessing great economic development and growth that has led to the creation of a rich investment environment which has attracted the attention of the entire world.” The minister added that, through the presence of a representative offi ce of the General Investment Authority in Saudi Arabia, KIA “will be able to explore and seize investment opportunities, which will certainly increase the prospects for cooperation with Saudi and international companies in joint projects to enhance economic development of both countries.” The business and industry sectors saw a 2.1% rise in cumulative credit balance in Q1 2024Next >