AN ITP MEDIA GROUP PUBLICATION SEPTEMBER 2024 • VOL.1 • ISSUE 08 How DIFC is driving the future of fi nance in the region INNOVATION BEYOND BORDERS FME_Sep2024_00_Cover_13363791.indd 1FME_Sep2024_00_Cover_13363791.indd 128/08/2024 09:3628/08/2024 09:36Join the #1 financial centre for accessing more growth opportunities When you join the number one global financial centre in the Middle East, Africa and South Asia, the growth opportunities are endless. 6,000 financial firms; FinTech and innovation businesses; family offices; institutions; and service providers use DIFC as their home to access the region. They employee more than 43,000 people in the Centre who are committed to driving the future of finance. Our world class laws, regulations, infrastructure and company structures enable companies to grow faster than the market, whilst providing the workforce with an unrivalled lifestyle and excellent career development. No wonder DIFC is the preferred catalyst for growth. Join the number one: difc.ae/business/make-an-enquiry Untitled-4 1Untitled-4 127/08/2024 15:3227/08/2024 15:32fi nancemiddleeast.comSeptember 2024 | 3 EDITOR’S LETTER The Dubai International Financial Centre (DIFC) isn’t just a backdrop for movies like Star Trek Beyond and Mission: Impossible – Ghost Protocol. It’s also a key player in driving innovation and shaping the future of fi nance in Dubai and the region. In an exclusive interview, the CEO refl ected on the Centre’s 20-year journey, spotlighting some game-changing initiatives and laying out plans to double its economic contribution to Dubai’s GDP in the coming years. Our Industry Insight digs into why GCC countries are pouring money into sports—from football and MMA to esports and F1. If you’re a fan of F1, like me, you’ll appreciate this deep dive into why the Middle East is making these moves now. On a diff erent note, we’ve put together an investor’s guide to gold. With the markets going haywire, especially in August, gold often becomes the go-to for those looking to weather the storm. Whether you’re new to investing or just looking to diversify, it’s worth a read. We’ve also got stories lined up on family businesses, Web3 and the US elections. If any of this piques your interest, let’s grab a coff ee and chat. Happy reading! Nivetha Dayanand Editor FME_Sep2024_3_Editors letter_13372001.indd 3FME_Sep2024_3_Editors letter_13372001.indd 327/08/2024 18:2827/08/2024 18:28fi nancemiddleeast.com4 | September 2024 CO N TEN TS 20 14 24 30 READY, SET, GO! From football to MMA, esports and F1; GCC countries are increasingly investing in sports SUCCESSION How are family businesses in the Middle East balancing their traditional values with the need for innovation? DUBAI’S FINANCIAL POWERHOUSE DIFC’s Arif Amiri on the Centre’s 20-year journey, achievements and plans for the coming years OPEN BANKING IS A RICH OPPORTUNITY FOR GCC INCUMBENT BANKS With open banking regulatory directives, incumbent banks are entering a new era of competition 14 20 30 24 FME_Sep2024_4-5_Contents_13372005.indd 4FME_Sep2024_4-5_Contents_13372005.indd 427/08/2024 16:3127/08/2024 16:31fi nancemiddleeast.comSeptember 2024 | 5 40 32 50 54 THE KEY TO WEB3 AND DIGITAL ASSET SPACE Hub71’s Peter Abou Hachem on growth of Abu Dhabi’s digital asset landscape and more THE GOLDEN INVESTMENT All you need to know about investing in gold REDEFINING THE FUTURE OF FINANCE Bahrain emerges as a leading fi ntech hub with supportive regulations A WINDOW INTO WASHINGTON How Kamala Harris’ entry into the US Presidential race has changed investor predictions 32 5054 40 FME_Sep2024_4-5_Contents_13372005.indd 5FME_Sep2024_4-5_Contents_13372005.indd 527/08/2024 18:2827/08/2024 18:28fi nancemiddleeast.com6 | September 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: Martin Chambers Head of Digital Media: Thomas Shambler EDITORIAL 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 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 Senior Video Editor: Liju Cheruvathur MARKETING Senior Events & Marketing Manager: Eleanor Ashton email: eleanor.ashton@itp.com Events & Marketing Manager: Olivia Keen-Smith Associate Events & Marketing Manager: Kate Galaktionova Events & Marketing Manager: Dmitry Lazarenko Senior Events Manager: Karishma Vithalani Associate Events Manager: Vrinali Nazareth Events Administrative Assistant: Aronn Pureza Events Administrative Assistant: Bobbie Rosario Events Sales Assistant: Joyce Salonga email: events@itp.com PRODUCTION Production Manager: Balasubramanian P 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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FME_Sep2024_00_Flannel_13373280.indd 6FME_Sep2024_00_Flannel_13373280.indd 627/08/2024 16:2927/08/2024 16:29TUNE IN EVERY TUESDAY FOR A NEW EPISODE ChequePoint_AD_205x275_B1_Approved.indd 1ChequePoint_AD_205x275_B1_Approved.indd 127/06/2024 10:2327/06/2024 10:23NEWS fi nancemiddleeast.com8 | September 2024 Federal Reserve Chairman Jerome Powell on August 23 indicated that the US central bank is nearing a decision to cut interest rates, citing a decline in infl ation and a noticeable cooling of the labour market. “The upside risks to infl ation have diminished. And the downside risks to employment have increased,” Powell stated during his keynote address at the Jackson Hole Symposium in Wyoming. “The time has come for policy to adjust. The direction of travel is clear.” Powell did not specify the pace of rate cuts, but his comments reinforced expectations of a rate reduction at the Fed’s next meeting in September. Following Powell’s remarks, markets anticipate an initial cut of 25 basis points. “Fed Chairman Jerome Powell used the Jackson Hole symposium to send a clear message on the direction of interest rates, signalling that a rate cut is coming at the September meeting,” explained David Kohl, Chief Economist, Julius Baer. “More importantly, the Fed signalled a shift in its risk assessment, stating that further cooling in the labour market was unwelcome.” Kohl noted that the view that infl ation is on a sustainable path back to 2% is why it is time to cut rates at the upcoming FOMC meeting in mid-September. “The shift in the Fed’s focus towards the labour market and the possibility of an unwelcome cooling off make even a bold 50bps cut at the next FOMC meeting possible.” The Fed has raised interest rates aggressively in recent years, increasing the policy rate by 425 basis points in 2022 ‘TIME HAS COME’ TO CUT US INTEREST RATES: POWELL and an additional 100 basis points in 2023 to bring infl ation closer to the 2% target. Powell emphasised that the timing and pace of future rate cuts will be determined by incoming data, the evolving economic outlook and the balance of risks. The Fed’s preferred infl ation metric has fallen from its 2022 peak of 7.1% to the current level of 2.5%, nearing the 2% target. Powell attributed much of the previous rise in infl ation to a collision between overheated demand and constrained supply, acknowledging that while opinions diff er, a consensus is emerging around this explanation. The Fed began raising rates from near-zero levels in 2022, eventually reaching the current target range of 5.25% to 5.50%. The Fed has held rates steady for over a year. Powell solidifi ed expectations that the central bank will cut its key policy rate in September FME_Sep2024_8-12_News_13372025.indd 8FME_Sep2024_8-12_News_13372025.indd 827/08/2024 18:2927/08/2024 18:29fi nancemiddleeast.comSeptember 2024 | 9 The Public Investment Fund’s (PIF) assets under management (AuM) saw a 29% surge, reaching SAR 2.87 trillion ($765 billion) by the end of 2023. As of July 2024, AuM stood at SAR 3.47 trillion ($925 billion). The annual report also noted an average total shareholder return of 8.7% per year since the inception of the Vision Realization Program (VRP). Total net cash returns for the Saudi Sector Development (SSD) and Saudi Equity Holdings (SEH) pools amounted to SAR 42 billion ($11.2 billion), exceeding the target of SAR 20 billion ($5.3 billion). The Saudi Real Estate and Infrastructure Development (SREID) pool grew 15% year-on-year to reach SAR 233 billion ($62 billion) in AuM. In 2023, PIF launched the Private Sector Forum, which introduced several initiatives to align local businesses with PIF’s objectives. Key programmes unveiled include MUSAHAMA, a local content grow th initiative, and the Suppliers Development Program. These programs aim to enhance private sector participation in PIF’s projects. The Saudi sovereign wealth fund continued it s local inves tment s, launching Riyadh Air, Saudi Arabia’s new national carrier and establishing the Electric Vehicle Infrastructure Company (EVIQ) to support EV adoption. Other initiatives include the creation of Lifera, a pharmaceutical investment company, PIF’S ASSETS UNDER MANAGEMENT RISE TO $925 BILLION BY JULY 2024 Al Balad Development Company and Ardara in the real estate sector. PIF reported that it had created over 730,000 direct and indirect jobs by the end of 2023, with the total rising to over 763,000 by Q1 2024. Internationally, PIF invested SAR 586 billion ($156 billion) in 2023, marking a 14% year- over-year increase. These investments aim to enhance PIF’s global portfolio and localise expertise in Saudi Arabia. The repor t also details foreign direc t investment (FDI) ac tivities, including joint ventures with Hyundai to build a Saudi-based factory, Pirelli to manufacture tyres in Saudi Arabia and Baosteel to establish a steel plate manufacturing complex. PIF reported that it had created over 730,000 direct and indirect jobs by the end of 2023 NEWS FME_Sep2024_8-12_News_13372025.indd 9FME_Sep2024_8-12_News_13372025.indd 927/08/2024 15:4227/08/2024 15:42Next >