EMPOWERING FISCAL DIVERSIFICATION AN ITP MEDIA GROUP PUBLICATION NOVEMBER 2024 • VOL.1 • ISSUE 10 FME_Nov2024_00_Cover_13421437.indd 124/10/2024 13:41Join the #1 financial centre to access more innovation When you join the number one financial centre in the Middle East, Africa and South Asia, you are part of the region’s first, largest and most integrated innovation ecosystem. No wonder over 1,100 FinTech and innovation companies use the DIFC Innovation Hub as a catalyst for growth, benefitting from having access to education, accelerators, mentoring, networking, cost effective licences, venture building and access to funding in one place. Join the number one: difc.ae/business/make-an-enquiry Untitled-5 124/10/2024 16:23fi nancemiddleeast.comNovember 2024 | 3 EDITOR’S LETTER When the team sat down to brainstorm this issue, I knew right away what our Spotlight would focus on—investing in luxury handbags. I could already picture the headline—Birkin bags and Lady Diors front and centre. As the famous saying goes, “It’s not a bag, it’s a Birkin!” And now, we truly get it. In fact, a 2023 report from Christie’s showed a Hermès Birkin selling for nearly $150,000 within hours of being listed. The resale market for these luxury pieces is booming. In this feature, we explore how designer handbags, once seen as pure fashion statements, are now recognised for their investment potential. Our Industry Insight section pulls back the curtain on how these bags make their way to consumers through the intricate world of trade and logistics. Did you know the GCC freight and logistics market is worth $50.72 billion? It is expected to reach $66.61 billion by 2029, growing 5.6% yearly. We highlight the key trends shaping this essential industry. In the cover story, we analyse the success of UAE’s corporate tax and its ripple eff ects on business operations, foreign direct investment (FDI) and compliance across various sectors. Experts weigh in with their thoughts on how this game-changing tax has reshaped the landscape. Finally, have you heard of blue fi nance? Beatriz Valero, our Deputy Editor, goes deep on how investments in the blue economy are helping to protect marine ecosystems and secure the future of the ocean. “The blue economy is expected to be valued at $3 trillion by 2030 and employ 40 million people,” she writes. “If it were a country, the blue economy would rank among the G7, between Italy and Japan in GDP terms.” With that, I invite you to dive into this issue. I hope you enjoy the read! Nivetha Dayanand Editor FME_Nov2024_3_Editors letter_13429513.indd 324/10/2024 15:44fi nancemiddleeast.com4 | November 2024 CONTENTS 20 14 24 32 SIGNED, SEALED, DELIVERED The top trends driving the GCC logistics and transportation industry NOT JUST A HANDBAG The complete guide to investing in luxury handbags THE SUCCESS OF UAE CORPORATE TAX Analysing the transformative shift in business operations ABU DHABI LEADS THE BLOCKCHAIN REVOLUTION The newly launched Blockchain Center in Abu Dhabi aims to drive innovation and growth in web3 14 24 20 32 FME_Nov2024_4-5_Contents_13412551.indd 424/10/2024 18:21fi nancemiddleeast.comNovember 2024 | 5 44 36 50 52 HOW PE FUNDS LEVERAGE M&A STRATEGIES FOR HIGH RETURNS Private equity turns to M&A for expansion and value creation UNCHARTERED WATERS How blue investments are safeguarding marine ecosystems and the ocean economy ALL YOU NEED TO KNOW ABOUT WORKFORCE LOCALISATION IN THE GCC Key updates on Emiratisation and regional strategies for national employment THE CFO’S AGENDA PwC’s Taimur Ali Mir discussed the key skills needed to become the CFO of the future 36 5052 44 FME_Nov2024_4-5_Contents_13412551.indd 524/10/2024 18:21fi nancemiddleeast.com6 | November 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 Publishing Director: Natasha Pendleton Tel: +971 4 444 3248 email: natasha.pendleton@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 Associate Events & Marketing Manager: Kate Galaktionova Events & Marketing Manager: Dmitry Lazarenko 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. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. PUBLISHED BY AND © 2024 ITP MEDIA GROUP FZ-LLC. FME_Nov2024_6_Flannel_13412552.indd 624/10/2024 15:46TUNE IN EVERY TUESDAY FOR A NEW EPISODE ChequePoint_AD_205x275_B1_Approved.indd 127/06/2024 10:23NEWS fi nancemiddleeast.com8 | November 2024 HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, Chairman of The Executive Council of Dubai, and Chairman of the Higher Committee for Future Technology and Digital Economy, has approved a series of new projects and initiatives aimed at supporting startups, building national talent and advancing innovation and entrepreneurship in the UAE. The projects align with the UAE’s development objectives and reinforce Dubai’s position as a hub for future industries. They aim to build Emirati capabilities, foster growth in the digital economy, and open new opportunities fo r economic progress across multiple sectors. During the Higher Committee for Future Technology Development and Digital Economy meeting, Sheikh Hamdan reviewed a report outlining the progress of previous projects and upcoming plans. His Highness reiterated Dubai’s commitment to a strategic approach that not only follows global developments but also seeks to lead them. The newly approved projec t s include the Government Venture Building Program, the National Tech Skills Enhancement Program, the IGNYTE platform for startups and CleanScape, a technology-driven urban management initiative. The Government Venture Building Program will transform government assets into commercial ventures and develop national projects through strategic partnerships. The fi rst phase includes collaboration between the Mohammed Bin Rashid Space Centre and the Dubai AI Campus to advance the UAE’s commercial space sector. DUBAI LAUNCHES NEW PROJECTS TO SUPPORT STARTUPS The National Tech Skills Enhancement Program will train 5,000 Emiratis in future technologies over the next fi ve years, preparing them for roles in the private sector. It seeks to bridge the gap between academic education and the technical job market, providing training to help local talent contribute to Dubai’s digital economy. The IGNYTE platform aims to empower over 100,000 startups and entrepreneurs by 2029 by connecting them with investors, mentors, and corporate partners. The platform will off er exclusive benefi ts and opportunities to help entrepreneurs grow their ventures globally. The CleanScape Project will enhance urban management in Dubai using data-driven technologies. It will combine traditional methods with modern tools like computer vision to improve operational effi ciency and urban sustainability. Sheikh Hamdan unveils $100 million IGNYTE Platform to empower 100,000 startups in Dubai FME_Nov2024_8-13_News + In Focus_13428957.indd 824/10/2024 15:47fi nancemiddleeast.comNovember 2024 | 9 Gold prices are on the rise and continue climbing towards unprecedented peaks. On Monday, October 21, the spot gold rallied for a fi fth straight day, hitting an all-time high of $2,736.86 earlier in the session. The gold rush was driven by economic uncertainty, lowering interest rates, a contested presidential election in the US, as well as geopolitical tensions in the Middle East. Meanwhile, US gold futures were 0.7% higher at $2,750.00 and the price of spot silver hit a near 12-year peak, rising to $34.02 per ounce, its highest since late-2012. The yellow commodity remains one of the most successful commodities this year, boasting over a 32% increase in 2024 alone. “The uncertainty of the US presidential election outcome is one factor supporting hedging demand for gold, the other probably are the geopolitical tensions in the Middle East,” UBS analyst Giovanni Staunovo said. “Ongoing solid demand from central bank also supports gold, in my view. We look for gold to reach to $2,900/oz over the next 12 months, supported by further rate cuts by the Fed.” In September 2024, gold achieved its third consecutive month of gains, according to the latest report by the World Gold Council. At the time, the yellow metal posted a 4.6% increase, fi nishing the month at $2,630 per ounce. The continuation of the upward trend experienced in July and August pushed gold to achieve new highs on eight separate occasions throughout September. “Gold is one of the strongest performing commodities in 2024,” said Vijay Valecha, Chief Investment Offi cer, Century Financial. “While Chinese investors have stepped back from gold due to the People’s Bank of China’s stimulus measures aimed at supporting equity markets, western investor activity has picked up. Off shore gold ETFs saw GOLD PRICES HIT ALL-TIME HIGH ON ECONOMIC UNCERTAINTIES infl ows of $1.8 billion last week, and foreign gold mining ETFs attracted $208 million, a notable reversal from earlier outfl ows this year. Moreover, investors are pricing in a 90% probability of a rate cut in November, further supporting gold’s rally.” As a popular safe-haven asset, gold’s attractiveness as an investment increases during times of macroeconomic shifts, economic uncertainty and geopolitical tensions. The most signifi cant infl uence came from the US Federal Reserve’s decision to cut interest rates by 50 basis points in September, an unexpectedly large reduction that triggered widespread movement across fi nancial markets. A weaker US dollar, resulting from the Fed’s decision, amplifi ed the attractiveness of gold as a store of value. In addition, ongoing geopolitical tensions created further demand for gold as investors sought safer assets amid rising uncertainty. The price of spot gold crossed the $2,700 per ounce mark and continues on the rise NEWS FME_Nov2024_8-13_News + In Focus_13428957.indd 924/10/2024 15:47Next >