In p a rt n e rs h ip w it h A l R a m z AN ITP MEDIA GROUP PUBLICATION FEBRUARY 2025 • VOL.2 • ISSUE 02 HIGHER PERSPECTIVE Al Ramz chairman Al Ahbabi on his bold vision of an AI-powered future FME_Feb2025_00_Cover_13508706.indd 131/01/2025 15:42Join the #1 financial centre for accessing public and private capital When you join the number one global financial centre in the Middle East, Africa and South Asia, accessing sovereign wealth is just the beginning. Our 1,100+ start-ups and growth stage firms have raised over USD 4 bn, including accessing capital from the region’s largest cluster of institutions, family offices, private equity companies, venture capital businesses and banks. DIFC based wealth and asset managers are now overseeing over USD 720 bn in AUM from private and public markets in the region. No wonder the industry chooses DIFC as their catalyst for growth. Join the number one: difc.ae/business/make-an-enquiry Untitled-7 131/01/2025 12:26fi nancemiddleeast.comFebruary 2025 | 3 January always feel like the longest month—at least for me. It is marked by refl ection on ambitious New Year’s resolutions and the unrealistic expectation that one can change overnight. But change is slow, and accepting that makes it easier. In a world that’s moving faster than ever, the best choice is to be kind to yourself and take things one day at a time. Now, let’s dive into this month’s AI-focused issue. I often dream of deploying AI to handle 90% of my daily tasks. Cooking tops the list. But while I’m still imagining that, fi nancial institutions have already embraced AI to transform how they operate, manage risk and improve customer experiences. Our Spotlight feature unpacks how AI is reshaping the fi nancial ecosystem and why it’s now essential for growth and competitiveness. Switching gears, we turn to startups and the UAE’s ambitious plans to become the MENA region’s unicorn hub. With the goal of attracting at least 20 new unicorns in the coming years, the country is building an environment conducive to rapid growth. A combination of government support, regulatory initiatives and investor interest is helping the UAE carve out its place on the global stage. In a series of interviews, we spoke with trailblazing founders who shared their insights on the highs, lows and lessons from their journeys to unicorn success. Their experiences off er valuable lessons for those navigating similar paths. We hope you enjoy the magazine. And remember—progress, like change, takes time. February is just the beginning. Nivetha Dayanand Editor The Ministry for the Future Kim Stanley Robinson A gripping exploration of climate change solutions, blending science fi ction with real-world urgency. Tomorrow, and Tomorrow, and Tomorrow Gabrielle Zevin A powerful story of creativity, friendship and technology— perfect as AI reshapes how we connect, create and dream. The Psychology of Money Morgan Housel Timeless lessons on wealth, risk and behaviour to navigate personal fi nances in an increasingly volatile economic landscape. Invisible Women Caroline Criado Perez A data-driven dive into gender inequality, still crucial in 2025 as society works toward equity in policy, tech and everyday life. MY 2025 READING LIST EDITOR’S LETTER FME_Feb2025_3_Editor Letter_13513561.indd 304/02/2025 11:59fi nancemiddleeast.com4 | February 2025 CONTENTS 20 14 24 30 AIMING FOR CHANGE Why banks and fi nancial institutions are embracing AI WHY FINANCIAL INSTITUTIONS MUST ADOPT AI NOW AI is transforming fi nance by revolutionising fraud detection, customer engagement and risk management THE FUTURE IS NOW Dhafer Sahmi Al Ahbabi, Chairman of Al Ramz Group on how AI and technology are reshaping fi nancial services across the GCC MEET THE ENTREPRENEUR: ESTHER O’CALLAGHAN An entrepreneur’s journey from owning a specialist vinyl store to leveraging DeFi to upskill a generation 14 24 20 30 FME_Feb2025_4-5_CONTENTS_13514599.indd 404/02/2025 11:59fi nancemiddleeast.comFebruary 2025 | 5 40 32 42 52 WHY AI HOLDS THE KEY TO CYBERSECURITY A majority of UAE senior managers polled said they plan to increase investment in AI for cybersecurity A LAND OF UNICORNS The UAE’s fi rst companies to reach $1 billion valuations refl ect on the keys to their success HOW AI AND DIGITALISATION ARE SHAPING THE FUTURE OF FINANCE The past year has shown the transformative power of tech advancements, but it has also highlighted the risks of moving too fast AI IN INVESTING Entrepreneur and seasoned trader Bas Kooijman on algorithmic trading, robo-advisors and the evolving role of AI in fi nance 32 4252 40 FME_Feb2025_4-5_CONTENTS_13514599.indd 504/02/2025 11:59fi nancemiddleeast.com6 | February 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 Business and Technology: 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 Associate Events Manager: Maria Trishina Events Sales Executive: Jan Mokoala 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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PUBLISHED BY AND © 2025 ITP MEDIA GROUP FZ-LLC. 6 | February 2025 To fl ip through previous editions of Finance Middle East magazine, visit fi nancemiddleeast.com/magazine/ 6 | February 2025 FME_Feb2025_6_Flannel_13513562.indd 604/02/2025 12:01Stay ahead with ITP Media’s flagship technology hub, featuring five powerhouse brands: ARABIAN COMPUTER NEWS, EDGE, COMMSMEA, CHANNEL and CHARGED. From breaking tech news to deep-dive insights, we bring you the latest innovations shaping the region. QUANTUM REVOLUTION AN ITP MEDIA GROUP PUBLICATION How Google’s Willow chip will redefine computing forever RACING TO SECURITY E&’s Help AG: driving cybersecurity innovation at Formula 1 speeds AN ITP MEDIA GROUP PUBLICATION ROCKET INTO THE FUTURE How satellite internet is powering a new age of digital transformation AN ITP MEDIA GROUP PUBLICATION January 2025 / Vol. 3 issue 1 / an ITP Media Group Publication Tim Cook, Apple and the dawn of a new age of creativity ART MEETS ALGORITHM AN ITP MEDIA GROUP PUBLICATION BEST TECH OF 2024 The ultimate guide to the year’s must- have gadget s AD_ITP.net_5CoversLaunch_205x275_Approved.indd 130/01/2025 17:05 Untitled-5 131/01/2025 11:13NEWS fi nancemiddleeast.com8 | February 2025 The International Monetary Fund (IMF) has maintained its global growth projection at 3.3% for 2025 and 2026, below the historical average of 3.7%. The January 2025 World Economic Outlook update highlights signifi cant regional divergences and persistent risks across advanced and emerging markets. The US remains a key driver of global growth, with a projected 2.7% increase in GDP for 2025. Strong consumption, buoyant labour markets and accelerating investments are underpinning this momentum. By contrast, growth in the Euro area is forecast at a subdued 1.0% for 2025, hindered by manufacturing weaknesses and geopolitical uncertainties. Emerging markets and developing economies are projected to grow by 4.2% in 2025. India and China lead the way with 6.5% and 4.6% growth rates, respectively. However, China’s growth is tempered by slower consumption recovery and property market challenges. Meanwhile, growth in the Middle East and Central Asia is expected to rise to 3.6%, though Saudi Arabia faces a downward revision due to OPEC+ production cuts. INFLATION Global infl ation is forecast to decline to 4.2% in 2025 and 3.5% in 2026. Advanced economies are expected to approach target inflation levels earlier than their emerging counterparts. Nonetheless, infl ation remains sticky in some regions, driven by services price pressures and localised supply chain disruptions. Monetary policies are diverging across regions. While some central banks in advanced economies are easing their stances, others maintain or increase rates to combat infl ation, particularly in emerging markets. The US Federal Reserve’s relatively steady position contrasts with expectations of faster policy easing in Europe and parts of Asia. RISKS AND UNCERTAINTIES Medium-term risks are tilted to the downside, with elevated trade policy uncertainty and geopolitical tensions contributing to fi nancial market volatility. Protectionist measures like new tariff s could disrupt trade fl ows and lower investment globally. The report also warns of potential stagfl ation risks in commodity-importing nations due to elevated energy prices and a stronger US dollar. 3.3% IMF’s global growth projection for 2025 and 2026 IMF PROJECTS STEADY GLOBAL GROWTH AMID SLOWING DISINFLATION AND RISING POLICY UNCERTAINTY IMF Managing Director Kristalina Georgieva noted that the US economy is performing “quite a bit better” than expected FME_Feb2025_8-12_News_13504990.indd 804/02/2025 12:02fi nancemiddleeast.comFebruary 2025 | 9 Abu Dhabi’s sovereign wealth fund, ADQ, through its subsidiary Q Logistics Holding LLC, has made a voluntary conditional cash off er to acquire the remaining shares of Aramex PJSC that it does not already own. The off er price is AED 3 per share, representing a 33% premium over Aramex’s last traded share price of AED 2.25 on January 9, 2025. Currently, Abu Dhabi Por ts Company, which is 75.42% owned by ADQ, holds a 22.69% stake in Aramex. Q Logistics Holding does not directly own any shares in the company. The proposed acquisition values Aramex at approximately AED 4.39 billion ($1.2 billion). Aramex has acknowledged the off er in a fi ling with the Dubai Financial Market (DFM). The company’s Board of Directors is set to review the proposal in accordance with the Securities and Commodities Authority’s regulations on mergers and acquisitions. Aramex has committed to providing further updates on any material developments. Despite facing revenue challenges in recent times, Aramex reported $1.26 billion in revenue for the fi rst nine months of 2024. The company has a global presence with over 16,000 employees and more than 600 offi ces worldwide. ADQ’s interest in Aramex aligns with its strategy to enhance its transport and logistics portfolio, which includes assets such as Abu Dhabi Ports Company, Etihad Airways, Abu Dhabi Airports Company, Etihad Rail Company, Wizz Air Abu Dhabi, Q Mobility and Abu Dhabi Aviation. Q Holding believes that Aramex complements these existing assets and has the potential to play a central role in achieving ADQ’s broader economic objectives. The off er is subject to regulatory approvals and the acceptance of Aramex shareholders. If successful, this acquisition would result in Aramex becoming a fully owned subsidiary of ADQ, further consolidating Abu Dhabi’s position in the regional and global logistics sector. ADQ’s fi nancial backing could facilitate investments in AI-driven route optimisation, automated sorting facilities and even drone deliver y systems, drastically improving delivery effi ciency. $1.26 BILLION Aramex’s 9M 2024 revenue ABU DHABI’S ADQ PROPOSES 100% ACQUISITION OF ARAMEX AT AED 3 PER SHARE Currently, Abu Dhabi Ports Company, which is 75.42% owned by ADQ, holds a 22.69% stake in Aramex NEWS FME_Feb2025_8-12_News_13504990.indd 904/02/2025 12:02Next >