< PreviousECONOMY fi nancemiddleeast.com50 | October 2025 airports, improve public transport and stimulate investment in hotels and leisure facilities. Abu Dhabi’s Yas Marina Circuit demonstrates this long-term eff ect. Built as part of a wider plan to transform Yas Island into a tourism and lifestyle hub, the Grand Prix became the anchor around which hotels, retail complexes and entertainment attractions grew. The race has consistently showcased Abu Dhabi’s image as a luxury destination, with the marina, skyline and cultural assets broadcast to hundreds of millions of households around the world. Technology and sustainability are becoming part of the equation. “Formula 1 requires signifi cant investment in circuits and facilities. The FIA accompanies the hosts in many such dimensions to prepare and deliver these events,” Ben Sulayem noted. This includes evolving regulations, safety processes and sustainability practices. With F1 committed to achieving net-zero carbon by 2030, host countries are expected to integrate renewable energy, smarter mobility solutions and green logistics into their bids. The result is that the Grand Prix acts not only as a spor ting showcase, but as a demonstration of technological ambition and environmental responsibility. THE FIA’S APPROACH TO HOST READINESS Selecting a host is not simply a matter of fi nancial resources. The FIA evaluates whether the country is able to deliver an event that is both commercially viable and strategically aligned with national goals. “Firstly, there must be a strong local commitment to invest, not just in the race circuit, but in the infrastructure and services that are also vital to make the event successful,” said Ben Sulayem. He emphasised that the FIA also considers broader societal contributions. “We also consider factors that will contribute to the democratisation of motorsport and promote a wider inclusion in its ecosystem. The commitments taken by a potential host in developing, not only the top of the sport, but also the grass roots elements of it, play an important role in this host evaluation.” A sustainable business model is central. Governments and private partners need to demonstrate how the race will create lasting jobs, stimulate investment and align with wider development strategies. As Ben Sulayem noted, “A strong host is one that integrates Formula 1 into its broader national strategy, underpinned by motorsport and leverages it to dri ve tourism, sus tainabilit y or technological innovation.” RISKS AND MANAGING EXPECTATIONS Despite the optimism, hosting a Grand Prix carries risks. Infrastructure costs are high, and in some cases, governments have questioned whether subsidies are justifi ed. Academic research has suggested that while short-term boosts are clear, long-term GDP growth is not always guaranteed. Some European regions have even recorded negative impacts several years after hosting, often because initial investments did not translate into ongoing visitor demand. The FIA acknowledges these concerns and works with hosts to mitigate them. By sharing best practices, training local offi cials and providing technical guidance, the organisation helps countries build capacity to deliver cost-eff ective events. “From homologation programmes for circuits, cars and security procedures, to training programmes for offi cials, marshals and stewards, the FIA works continuously with its members $1.4 B the approximate amount of tourism receipts since Singapore’s inaugural race in 2023 Max Verstappen, Race Car Driver for Oracle Red Bull Racing FME_Oct2025_46-49_FIA INTERVIEW_13720594.indd 50FME_Oct2025_46-49_FIA INTERVIEW_13720594.indd 5003/10/2025 22:2003/10/2025 22:20ECONOMY fi nancemiddleeast.comOctober 2025 | 51 to share knowledge, establish consistent processes and ensure the fairest playing fi elds,” Ben Sulayem explained. The balance is in ensuring that the race is embedded into a long-term economic and cultural strategy rather than treated as a one-off spectacle. CASE STUDIES OF SUCCESS Singapore, Melbourne and Las Vegas all highlight different aspects of the F1 economic story. In Singapore, the integration of the race with tourism and entertainment has made it a fl agship event in Asia. Melbourne demonstrates the durability of F1 as an annual tourism anchor, generating hundreds of millions of dollars and supporting jobs year after year. Las Vegas shows the potential of new markets: its fi rst event produced a $1.5 billion impact, immediately ranking it among the largest sporting events in American history. Each case reinforces Ben Sulayem’s assertion that motorsport has become a vehicle for national branding. “The legacy is seen not only in the immediate impact, but also in the strengthened international profi le it builds,” he said. LOOKING TOWARDS THE NEXT DECADE As Formula 1 expands into new regions, from the Middle East to Asia and potentially Africa, the question is how its economic impact will evolve. Ben Sulayem is clear on the trajectory. “Through our combined eff orts with FOM and our global stakeholders, we are always working towards creating an economic contribution that will continue to grow over the next decade, as the sport reaches new audiences and markets.” He believes the benefits will go beyond event-based tourism. “F1, and motorsport in general, is a growing platform for innovation in areas like mobility, sustainability and new technology, which means the benefi ts will extend well beyond the short-term spending.” The global visibility of the FIA Formula 1 World Championship, with its hundreds of millions of viewers, reinforces the brand of host nations, attracting investment, talent and long-term tourism. Formula 1 has become more than a sporting contest, it is an instrument of economic policy, tourism development and global branding. For host cities, the weekend of racing is both an immediate fi nancial boost and an opportunity to showcase their culture and capabilities to the world. The fi gures, billions of dollars in economic impact, hundreds of thousands of visitors and thousands of jobs, underline the scale. For Ben Sulayem, the values of the sport remain the guiding thread to it all. “Ultimately, F1 in particular, and motorsport in general, carry and showcase particular positive values and inspire generations around themes like performance, excellence, commitment, precision and dedication, amongst others.” In this sense, hosting a Grand Prix is more than a business or sport, but it’s about ambition, placing a city fi rmly on the global map, with benefi ts that echo long after the famous chequered fl ag has waved. Formula 1 has become more than a sporting contest, it is an instrument of economic policy, tourism development and global branding FME_Oct2025_46-49_FIA INTERVIEW_13720594.indd 51FME_Oct2025_46-49_FIA INTERVIEW_13720594.indd 5103/10/2025 22:2003/10/2025 22:20STARTUPS fi nancemiddleeast.com52 | October 2025 FME_Oct2025_54-55_MEET THE ENTREPRENEU_13700804.indd 52FME_Oct2025_54-55_MEET THE ENTREPRENEU_13700804.indd 5203/10/2025 21:5403/10/2025 21:54STARTUPS fi nancemiddleeast.comOctober 2025 | 53 Interview by: Nivetha Dayanand MEET THE ENTREPRENEUR ILYA KLYUEV As the Middle East continues to embrace innovation and technological disruption, BaseTracK is carving out its place in the region’s evolving logistics sector. Co-founded by Ilya Klyuev, the company specialises in effi cient trucking solutions, combining autonomous and human-driven technologies to improve fuel economy and deliver sustainable transportation. Currently in its Series A stage, BaseTracK off ers advanced solutions such as an effi cient cruise control system for human-driven trucks, promising fuel savings of 10-30% and high-precision autonomous driving systems that navigate safely in varying weather conditions. In this interview, Klyuev shared the company’s journey from its origins in Europe and Russia to its strategic pivot to the Middle East. He refl ected on the challenges of fundraising, the lessons learned and how the region’s robust innovation ecosystem, led by programmes like the Mohammed Bin Rashid Innovation Fund, has enabled BaseTracK to refi ne its off erings and pursue long-term growth. With a vision to help the Middle East become a leader in next-generation logistics, BaseTracK’s journey highlights the region’s appeal for startups aiming to scale their impact globally. What drove you to join the startup world? I joined the startup world totally by accident. In my fi rst year of university, I had a small dream of owning a restaurant and travelling the world–my university major was catering engineering. I had experience working as a restaurant manager, so I started working as a waiter to gain more experience and earn some money. When I was going to change my employer to the most luxurious hotel in the city to make a lot of money on wages and tips, I met Andrew, who was looking for a project manager in his geoinformatics company and had a couple of projects based on a scientist he knew. Andrew is a good salesperson, which is why I was sold on the idea of starting some curious R&D-heavy projects from scratch, and that was the start of my risky obsession. One of the projects we eventually launched was BaseTracK. In your view, what are the keys to approaching investors successfully? Having connections to the right people gets even a bad startup funded. Generally, to get local investors interested, even with a cold email, you should have a software/SaaS B2B startup (ideally, copying an idea from a successful growing US-based startup), generating at least hundreds of thousands of USD ARR, and if you are popular in the media as well, it further boosts its chances of securing investment. What was the most challenging part of raising funding and how did you overcome it? The most challenging part is to find an investor for a long-term strategy. That is the challenge we still can’t overcome, so we had to focus on “ready-to-sell” fuel economy solutions for human-driven trucks and put autonomous trucking technology on a shelf. However, the support provided by the UAE’s robust innovation ecosystem has been invaluable. Participating in programmes like the MBRIF Innovation Accelerator has provided a supportive environment, enabling startups like ours to refi ne our strategies, access critical resources and connect with key stakeholders to scale eff ectively. Of course, some mega-projects and futuristic ideas are getting funded, but getting back to some of the previous points, you need to know the right people or be on the latest trends. What has been your biggest success and your biggest failure? Biggest success: With all the failures on the journey, I grew spiritually and became more mature in some areas of life. Biggest failure: I didn’t diversify my personal life and income sources (startups can be incredibly demanding fi nancially and emotionally). Where would you like to be in fi ve years’ time? In the UAE or KSA, I have witnessed how Vision 2030 has materialised. These futuristic concepts and progressive ideas are exciting, and I’d be proud to contribute to the technological advancements shaping the region. BaseTracK’s founder is on a mission to transform the Middle East’s logistics sector FME_Oct2025_54-55_MEET THE ENTREPRENEU_13700804.indd 53FME_Oct2025_54-55_MEET THE ENTREPRENEU_13700804.indd 5303/10/2025 21:5403/10/2025 21:54PARTNER CONTENT fi nancemiddleeast.com54 | October 2025 How are global tax and regulatory changes shaping corporate fi nancial strategies in the GCC today? I think over the last few years, we’ve seen a massive shift in how businesses have started to think about tax. I think this is because the adoption of tax has only sort of emerged because of the introduction of corporate tax. Before, it was always an afterthought for companies here, but I think as the tax deadline has approached closer, we’ve seen a massive shift in how fi nance functions are now dealing with tax. It’s now becoming part of the strategy, rather than an afterthought. It’s something that you think about for every large transaction, acquisition, M&A, whatever it is that you’re doing, rather than just something that you would think about later. I think a big part of it is also the OECD BEPS Pillar Two implementation. It’s compelled companies to think about their tax structures and their documentation so that they’re defensible when it comes to regulations. Regulatory bodies are scrutinising them on why they’ve taken a particular approach and so on. And I think in the GCC, because things move so fast, we can see rapid evolution of how things are moving. Back in 2018, VAT was introduced. And now we have corporate tax next year. We’re supposed to get invoicing. We’re also seeing the adoption of domestic minimum top-up tax from this year and so on. I think it’s shifting quite a fair bit, and I think as and when people get more and more educated, it’s going to become something that’s going to be paramount for every function. What are the key risks businesses often overlook in their tax and fi nancial reporting that they should be mindful of? I think one of the biggest risks I’ve seen when we advise companies is the lack of data, or let me put it this way, it’s lack of clean, connected data. There is a lot of scattered data in bits and pieces, but there are very little connectors that bind those together. And I think that’s very important. I think this is because companies here have traditionally never thought of consolidating this, so you have data in multiple systems, sometimes even on spreadsheets like Excel, where stuff is managed and reconciliations are not done at regular intervals and so on. I think that poses a big challenge because if you want to get to the right position, or the most accurate possible position, you need to have clean, connected data to work with. I think another potentially sort of concerning avenue is intercom in transactions. A lot of companies here are grouped together. They do a lot of pooling of cash, intercompany loans or services that are provided by one entity to fi ve diff erent entities, etc. I think there are a lot of agreements in place to refl ect that properly, but not a lot of invoices or paperwork to refl ect what kind of services they’re off ering and what’s the markup, and if that markup has stood the test of benchmarking. I think it’s also the world we live in today, especially when you talk about e-commerce or digital media. It’s very easy for companies to overlook the concept of permanent establishment. So, they can be providing services in, say Saudi, while they’re registered here, but inadvertently, they may be creating a permanent establishment in Saudi Arabia, Bahrain or another country and then they also have to make sure they’re registered for tax there and pay their obligations there. So, as your business grows, it’s always nice to be mindful of these things as fundamental points you’re supposed to cater to. How do regional business environments diff er from global markets when it comes to corporate governance and fi nancial planning? I think the GCC is a very unique business ecosystem. Many companies are family-owned, they’re backed by the government or they’re semi-government, which is a bit diff erent from how you see it in the rest of the world, where it’s mostly private and government. I think decisions tend to be more centralised. I think relationships over here are key. And I think because this is a tightly knit market, it’s usually easier to get a hold of someone if you want to, within the tax authorities. EVOLVING REGULATIONS IN THE REGION Managing Director of Oblique Consult, Wahaj Siddiqui, discusses tax and AI Scan the QR code to listen to the podcast FME_Oct2025_54-55_PODCAST_13726692.indd 54FME_Oct2025_54-55_PODCAST_13726692.indd 5403/10/2025 22:0103/10/2025 22:01PARTNER CONTENT fi nancemiddleeast.comOctober 2025 | 55 We’re not waiting for AI’s future—at Oblique, we’re already using it to deliver insights in hours that used to take days, freeing our experts to focus on strategic advisory that truly transforms businesses That’s on the advisory front. I think even on the accounting front, it can process volumes of data and maybe even get to a point where it provides you with insights that you and I would probably take an hour or two to get. It would do that really fast, but I still think there has to be a layer of human intervention that’s supervising it and reviewing the data that it produces. Which sectors do you think will face the greatest disruption in fi nancial management due to technology? I think we’re going to see signifi cant transformation in banking and fi nancial services across the GCC. Traditional banking processes—like SME fi nancing applications that currently take weeks—could be compressed into hours through AI-powered risk assessment and automated compliance checks. The technology exists today; it’s about regulatory frameworks catching up and institutions being willing to evolve. Cross-border payments is another area ripe for disruption. Right now, international transfers can take up to fi ve days, but with tokenisation combined with AI-driven KYC processes, we could see near-instantaneous settlements. This is particularly relevant for the GCC given our role as a global trading hub. I’d also highlight professional services—including advisory fi rms like ours. AI is fundamentally changing how we deliver insights to clients. What used to require days of data analysis can now be done in hours, allowing us to focus on strategic interpretation and implementation rather than data processing. At Oblique, we help clients in these sectors understand not just the technology, but how to integrate it strategically into their fi nancial management frameworks. How is Oblique leveraging AI today? At Oblique, we’re already embedding AI into our service delivery model. When a potential client submits an inquiry through our website, an AI agent conducts the initial discovery call—asking the right questions, understanding their needs, and gathering essential information. This data then fl ows into our proposal development system, signifi cantly accelerating our response time. The goal isn’t just speed for speed’s sake. It’s about deploying AI where it excels—data capture, pattern recognition, routine processing—so our human experts can focus entirely on what requires genuine expertise: strategic thinking, creative problem-solving, and nuanced advisory. We’re seeing that this hybrid model delivers both faster turnaround and deeper insights for our clients. This is exactly what we advise our clients to do: identify the repetitive, data-heavy processes in their operations and augment them with AI, while keeping human judgment at the centre of strategic decisions. We’re not just talking about AI’s potential—we’re demonstrating it every day in how we run our own practice. At least in the UAE, it’s fairly easier compared to the rest of the GCC or Europe. Wherever you want to communicate with the Federal Tax Authority, it’s usually is pretty approachable, and I think that’s because of the ecosystem they’ve developed. I think the regulation here is evolving incredibly fast, like I mentioned. We’ve come from no tax to suddenly VAT and corporate tax, e-invoicing, BEPS, OECD and DMTT. And I think overall this has an infl uence on everything: how capital markets think of decisions. When it comes to M&As and sovereign wealth funds, when they think of acquisitions, tax was nowhere to be featured, but now everyone’s got to think of these regulations and make sure that the companies that they’re acquiring are complying with these regulations. Otherwise, they can be exposed to big penalties. How can AI realistically complement, rather than replace, traditional fi nancial advisory? I think this is a very good point. I think people often mistake AI to be something that’s a replacement. I think it’s supposed to be a tool that’s supposed to augment you, right? And I think that’s where the fear stems from. But I think if there’s a routine, data-heavy task, AI can handle that pretty well because it learns from the data that you share with it. So, things like capturing data from invoices is very simple to do. When it comes to AI, you could load it up on ChatGPT, and it’ll extract most things and then you have specialised tools to do that. We’ve got Simpla that does that. So AI can do a lot of routine tasks really well and it hallucinates a lot less. When you think of AI, think of stuff that is repeated or repetitive in nature, and that is something that AI can do really well. When you have to apply a lot of creativity, that’s where AI still needs some time to go and, you know, do a lot of learning. But I think repetitive and routine tasks are something it can do pretty well. Where do you see the most immediate implications of AI and data analytics in tax advisory and corporate fi nance? So I think in tax advisory, if you were to load up a fair bit of invoices contracts, give it a dump of your GL or trial balance, as we call it, it can start pulling out a lot of things and ask you several questions based on it. You can get to a point where you have a decent starting point, even if you’re not a tax expert. It will carve out things, like entertainment. It will carve out things, like anything that’s disallowable. It will pick up interest to make sure it doesn’t reach the de minimis threshold and so on. It’ll also look at your contracts, tell you accounting-wise when your liability is actually being triggered or when your revenue is supposed to be captured under IFRS 15 and so on. FME_Oct2025_54-55_PODCAST_13726692.indd 55FME_Oct2025_54-55_PODCAST_13726692.indd 5503/10/2025 22:0103/10/2025 22:01PERSONAL FINANCE fi nancemiddleeast.com56 | October 2025 20% of their income is being put aside for retirement by many Gen Z workers For many in their twenties in the UAE, balancing rent, loans and lifestyle costs leaves little room for long-term planning. Yet fi nancial experts argue that the earlier people start, the more powerful compounding becomes. Dubai’s fi nancial planners say the priority is not the size of the contribution, but the discipline of making saving a routine. “The most important step is developing the discipline of saving and investing consistently,” said Saqib Mahmood, Group Chief Commercial Offi cer at National Bonds. “Wealth building at this stage is less about the size of the contribution and more about forming habits that will compound over time. By treating saving as a non-negotiable expense, similar to rent or utilities, young people establish a mindset of prioritising their fi nancial future.” HOW MUCH SHOULD YOU SAVE IN YOUR TWENTIES? Saving consistently, setting goals and using digital platforms are key steps for young investors in their twenties Words by: Nivetha Dayanand That mindset becomes easier to sustain when goals are clearly defi ned. Mahmood argues that setting objectives, such as establishing an emergency fund, planning for a future home or long-term retirement planning, helps individuals remain committed during inevitable market swings. For people in their twenties, he said, time is their biggest asset. Delaying even a few years erodes the advantage of compounding that cannot easily be recovered later in life. While fi nancial planners often suggest allocating 10% to 15% of monthly income to savings and investments, Mahmood points out that those under pressure from rent, loans or lifestyle costs should not be discouraged by smaller amounts. “For young professionals with heavy commitments, even starting with 5% is impactful,” he said. “The key is consistency, gradually increasing contributions as income rises.” As the savings culture develops, the question of where to place money becomes crucial. Mahmood encourages beginners to stick with simple products such as savings plans and retirement-linked accounts, particularly those tied to automated salary deductions that remove the temptation to spend first and save later. In the UAE, Sharia-compliant structured savings products are also gaining popularity. By contrast, he warned against highly leveraged instruments, speculative trading or complex products that are not well understood. “Beginners often get drawn into short-term trading or high-risk schemes, which can derail long-term fi nancial security,” he said. Balancing immediate needs with longer-term goals requires a structured approach. Mahmood recommends separating liquidity for emergencies from medium-term aspirations such FME_Oct2025_56-57_PERSONAL FINANCE_13700883.indd 56FME_Oct2025_56-57_PERSONAL FINANCE_13700883.indd 5603/10/2025 22:0903/10/2025 22:09PERSONAL FINANCE fi nancemiddleeast.comOctober 2025 | 57 For young professionals with heavy commitments, even starting with 5% is impactful. The key is consistency, gradually increasing contributions as income rises can aff ord to take more risk, Mahmood argues that it is essential to fi rst build a solid base in stable, fi xed-income instruments. “Once that base is established, you can gradually introduce higher-risk investments, beginning with a modest allocation, such as 5%, and expand exposure as your fi nancial position strengthens,” he said. ROLE OF TECH Technology is reshaping the way young investors approach these decisions. In the UAE, robo-advisors and digital investment platforms such as Sarwa and Wahed Invest are expanding rapidly, off ering low-cost and automated portfolios that appeal to millennials and Gen Z. Recent studies suggest that younger investors are increasingly drawn to these services for their accessibility and convenience, with the local robo-advisory market expected to grow sharply in the coming years. Mahmood believes these platforms are valuable tools when they are regulated, transparent and aff ordable. “Accessibility has opened the door for young people to start their investment journey more easily than ever,” he said. “These platforms add real value when they are equipped with features like goal-setting and fi nancial planning support.” Even with digital tools, Mahmood cautions that professional advice remains important when choices are unclear. “When decisions feel complex or unclear, speaking to qualifi ed experts can provide clarity and confi dence,” he said. Combining accessible technology with human expertise, he argues, ensures young investors not only start early, but also make informed decisions that will endure. In a country where household debt is rising and infl ationary pressures are squeezing incomes, the challenge for young professionals is to build a fi nancial foundation that withstands short-term demands while safeguarding the future. Saqib Mahmood of National Bonds as travel or property purchases, while committing other funds to diversifi ed long-term investments. This tiered approach allows individuals to meet unexpected expenses without compromising future plans, while also ensuring exposure to market growth over time. Common mistakes among younger investors often come from postponing saving until earnings rise, taking on consumer debt that erodes the capacity to build wealth or pursuing speculative opportunities without understanding the risks. Mahmood added that the absence of clear fi nancial goals frequently leads to inconsistent saving behaviour, undermining progress in the crucial early years of compounding. RISK APPETITE Risk appetite is another point where perceptions need to be tempered. Although conventional wisdom suggests that people in their twenties FME_Oct2025_56-57_PERSONAL FINANCE_13700883.indd 57FME_Oct2025_56-57_PERSONAL FINANCE_13700883.indd 5703/10/2025 22:0903/10/2025 22:09fi nancemiddleeast.com58 | October 2025 IN NUMBERS Saudi Arabia’s cultural sector attracted $500 million in foreign investmentin in July Bahrain’s bond launch, raised a combined $2.5Bn Dubai’s property market recorded AED 16.86 billion transaction volume in the first week of September Qatar Commercial Bank issued a USD 600 million 5-year senior bond in September STATS Saudi crude exports to China expected to drop to ~43 million barrels in September FME_Oct2025_58_Stats_13726724.indd 58FME_Oct2025_58_Stats_13726724.indd 5803/10/2025 22:0903/10/2025 22:09Next >