INNOVATION UNLOCKED AN ITP MEDIA GROUP PUBLICATION JANUARY 2025 • VOL.2 • ISSUE 01 Samah AlHajeri on how the UAE has redrawn the global fi nancial map FME_Jan2025_00_Cover_13482741.indd 119/12/2024 12:35Join the #1 financial centre to access more talent WhWhen you join the number one financial centre in the Middle East, Africa and South Asia, you can access the largest community of finance professionals. Those 43,000+ people represent the best local, regional and international talent that help our 6,000 clients succeed. We are nurturing the next generation of professionals that contribute to the UAE’s GDP growth via our DIFC Academy, and initiatives including Talent Week. Talent seeks DIFC because we are a catalyst for personal development and career progression. Join the number one: difc.ae/business/make-an-enquiry Untitled-21 117/12/2024 17:22fi nancemiddleeast.comJanuary 2025 | 3 EDITOR’S LETTER Are you one of those “new year, new me!” people? I certainly am. Like many others, I signed up for a gym membership—again. Every year, I start strong, showing up religiously for the fi rst two weeks, only to get sidetracked by everything else life throws my way. But this year, it’s not just the gym I’m excited about. The world of fi nance has plenty in store for 2025, from the crypto boom to anticipated interest rate cuts. It’s shaping up to be an exciting year! In this issue, we unpack the key areas investors, businesses and analysts should focus on this year, as shared by several industry experts. We also shine a spotlight on the unsung heroes of the corporate world: CFOs. Our editorial team has curated a list of the top 20 CFOs in the UAE, using data gathered through information requests and publicly available sources. For our cover feature, we spoke to Samah AlHajeri, Director of New Economy at the UAE’s Ministry of Economy. She shared insights into how the UAE is leading the way in shaping policies and frameworks to embrace new fi nancial technologies—ranging from blockchain and digital currencies to DeFi and AI—while striking a balance between innovation, stability and inclusivity. Wishing you all a happy and prosperous new year! If you’ve made an interesting New Year’s resolution or want to discuss the year ahead, drop us a message—we’d love to hear from you. Until next time! Nivetha Dayanand Editor FME_Jan2025_3_Editor Letter_13483594.indd 318/12/2024 18:35fi nancemiddleeast.com4 | January 2025 CONTENTS 22 14 26 38 GAME ON Behind the growth of the GCC gaming sector THE YEAR AHEAD Navigating global shifts and emerging opportunities 2025 TOP UAE CFOS Meet the UAE’s savvy fi nancial leaders THE UAE’S NEW ECONOMY Samah AlHajeri on the country’s bold strategies to stay ahead of economic shifts 14 38 22 26 FME_Jan2025_4-5_Contents_13483595.indd 417/12/2024 15:52fi nancemiddleeast.comJanuary 2025 | 5 46 44 50 52 THE NEW GLOBAL FINANCIAL LANDSCAPE Global fi nancial leaders discuss strategies for navigating global economic complexities HOW CAN THE UAE SECURE ITS INSTITUTIONAL BLOCKCHAIN FUTURE? The UAE’s regulatory support powers blockchain and web3 expansion MEET THE ENTREPRENEUR: JUSTIN NEWTON An entrepreneur’s journey from bankruptcy to building four unicorns IMPLEMENTING CORE BANKING TRANSFORMATION Finastra’s Rudy Kawmi on how banks leverage open fi nance principles to drive effi ciency and achieve ESG goals 44 5052 46 FME_Jan2025_4-5_Contents_13483595.indd 517/12/2024 15:53fi nancemiddleeast.com6 | January 2025 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 Associate Project 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 Head of Events: Eleanor Ashton email: eleanor.ashton@itp.com Events & Marketing Manager: Kate Galaktionova 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_Jan2025_6_Flannel_13483612.indd 617/12/2024 15:58FOR COMMERCIAL ENQUIRIES: Ines Ben Rejeb Senior Commercial Manager T: +971 4 444 3223 E: ines.benrejeb@itp.com WHERE & NUMBERS NARRATIVES WWW.FINANCEMIDDLEEAST.COM AN ITP MEDIA GROUP PUBLICATION online and in print nowNEWS fi nancemiddleeast.com8 | January 2025 The UAE has announced it will implement a 15% Domestic Minimum Top-up Tax (DMTT) on large multinational companies from January 2025. The tax is part of the global minimum corporate tax agreement set by the Organisation for Economic Co - operation and Development’s (OECD), which aims to ensure multinational enterprises pay a minimum eff ective tax rate of 15% in each country where they operate. The DMTT will apply to companies with consolidated global revenues of EUR 750 million ($793.50 million) or more in at least two of the four fi nancial years preceding the tax’s enforcement. This move comes after the UAE introduced a 9% corporate tax in 2023 for businesses operating in the country, exempting companies operating in free zones. The DMTT aligns with the OECD’s Two-Pillar Solution to prevent tax avoidance and ensure fair taxation of large multinationals. The UAE’s Ministry of Finance is also evaluating additional corporate tax incentives. These include a research and development (R&D) incentive, starting in 2026, off ering a 30% to 50% refundable tax credit based on the size of a company’s UAE operations and revenue. Another potential measure would be a refundable tax credit for high-value employment activities. This credit could be introduced as early as January 1, 2025, and calculated as a percentage of eligible employee income costs. “Initially, after the 9% corporate tax was introduced, it was a major deal as the country saw a rate increase from a tax-free status,” said Bal Krishen, UAE ANNOUNCES 15% MINIMUM TOP-UP TAX ON LARGE MNCS Chairman , Century Group. “Nonetheless, corporations abided and revised their fi nancial strategies in order to comply with the new regulations. This time, an increase in the tax rate is witnessed at a time when the UAE is actively trying to grow its major non-oil economy. However, a well-executed transition could provide stability and sustained government revenue in the long run, aligning with the UAE’s goal for economic diversifi cation.” The UAE is not the only GCC nation to be increasing taxes on multinational companies operating within its borders. Bahrain said in September that it would also introduce DMTT starting from January 1, 2025 on large MNEs. Meanwhile, Kuwait has also announced it will establish a 15% tax on corporate income for large multinationals, from the beginning of 2025. The tax is eff ective for the fi nancial year starting on or after January 1, 2025 FME_Jan2025_8-12_News_13483613.indd 817/12/2024 15:59fi nancemiddleeast.comJanuary 2025 | 9 NEWS The FIFA 2034 World Cup, set to be hosted by Saudi Arabia, is expected to signif icantly surpass the football organisation’s fi nancial expectations. Saudi Arabia’s bid could yield substantial growth in ticketing and hospitality revenues, which would exceed FIFA’s baseline by over 32%. This would translate to an additional $240 million in revenues, according to estimates reported by the Saudi Gazette, based on the country’s offi cial bid. The Kingdom’s bid anticipates a 10% increase in the global live TV audience, as a result of its strategic location, as well as innovative fan engagement strategies, including digital campaigns and advanced technologies. Licensing and retail revenues are predic ted to outper form FI FA’s baseline by $7 million. Additionally, FIFA estimates that organising costs will be approximately $450 million below the baseline. Savings are expected in areas including IT services, security and technical services. Over the past few years, GCC nations have increased their investments in the sports sector, as part of their economic diversifi cation strategies. Saudi Arabia’s bid to host the World Cup aims to showcase the Kingdom’s advancements under Vision 2030 to a global audience. Moreover, it also looks to build on the success of the 2022 World Cup hosted by Qatar. The Qatar World Cup resulted in a 365% annual increase in foreign visitors, driving a 276% daily rise in hotel bookings. Overall, the sporting event is said to have contributed between $2.3 billion and $4.1 billion to Qatar’s GDP, according to estimates from the SAUDI WORLD CUP REVENUES TO BE 32% OVER FIFA’S TARGET International Monetary Fund. The nation is estimated to have spent up to $243 billion to host the competition, with $6.5 billion dedicated to stadium costs alone. “Football is truly global, and the FIFA World Cup is the biggest single sporting event on the planet, so investing in the game is a way to reach all new audiences,” Romy Gai, FIFA’s Chief Business Offi cer, said in an interview earlier this year. “The FIFA World Cup Qatar 2022 served as a catalyst for regional economic growth and sports industr y development across the country and the region,” Gai added. Saudi Arabia was the only bidder to host the 2034 World Cup. The Kingdom has already unveiled the fi ve cities and 15 stadiums set to host the matches, including one built on NEOM’s The Line vertical megacity and described as the “most unique stadium in the world”. Ticketing and hospitality revenues from the 2034 World Cup could surpass FIFA’s baseline by $240 million FME_Jan2025_8-12_News_13483613.indd 917/12/2024 15:59Next >