Germany, which is the biggest economy in Europe, experienced a contraction in the final quarter of the previous year. As a result, the overall economy shrank by 0.3% throughout the year. This means that Germany's growth has stalled and the country was on the brink of a recession earlier this year. The question now is whether Germany has become the "Sick Man" of the continent. The April-June 2024 edition of the Global Business Outlook will delve into this topic in detail.
Let's talk about the United Kingdom, which is just months away from electing its new government. The Keir Starmer-led Labour Party, currently in opposition, had earlier promised to implement a "Green Prosperity Plan" worth £28 billion if voted to power. The plan aimed to help the UK meet its climate targets while ensuring the country's energy security. However, the party has now revised its pledge, reducing the amount to less than £15 billion.
The growth of protectionism and tensions between Washington and Beijing are having a negative impact on foreign direct investment (FDI). Although some countries are benefiting from China's declining FDI, overall cross-border investment is decreasing. According to the World Bank, longterm cross-border investment amounted to 1.7% of global production in 2022, compared to 5.3% in 2007. Furthermore, it declined by an additional 18% in 2023, as reported by the United Nations Conference on Trade and Development (UNCTAD).
Our latest GBO edition features a compelling cover story on "Vision 2030," Saudi Arabia's ambitious economic diversification agenda launched in 2016, which has already demonstrated promising results in boosting the Kingdom's socio-economic growth.
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Analysis
Correspondent
China has released a set of measures to encourage childbirth and support childcare and eldercare, in order to reverse the trend of population decline, and mitigate socioeconomic challenges
China, the second most populous country in the world (which also acted as a catalyst behind the Asian country’s rise as the world’s second largest economy and a manufacturing force), is now witnessing a slowdown.
The country’s population began to decline in 2022 for the first time in 60 years, something which may signal the beginning of a long-term phenomenon that will likely end up affecting the overall business climate and economy.
China's central bank has now cut its key benchmark lending rate used to price mortgages, as Beijing seeks to boost flagging growth and counter rate hikes in other major economies. Commercial banks can grant more credit at advantageous rates and the move comes at a time when other countries are still weighing upon the thought of relaxing their monetary policies.
China in 2023 recorded one of its worst annual growth rates since 1990, piling more pressure on its post-COVID economic recovery, which is already fighting headwinds like a poorly-performing property sector, soaring unemployment and a global slowdown that has hammered demand for Chinese goods.
Premier Li Qiang stated at the World Economic Forum in Davos on January 16th that the Chinese economy was similar to looking at the Alps, an 'undulating mountain range' best appreciated from afar.
As the country’s population fell in 2023 for the second year running, so was its GDP. The population got reduced by 850,000 to 1.4118 billion in 2022 from 1.4126 billion in 2021. The tally may reach 1.313 billion by 2050 and less than 800 million by 2100, according to UN demographic modelling.
The population is ageing quickly; along with the declining birth rate. The national birth rate decreased from 7.52 in 2021 to a record low of 6.77 births per 1,000 people in 2022. By the end of 2022, there were 280.04 million older
Analysis \ Population
people in China than there were in 2021 (267.36 million). China's working-age population, or those between the ages of 16 and 59, fell by 0.5% at the end of 2022, from 62.5% in 2021 to 875.56 million.
Understanding the reason
Blame the country's one-child policy, which was in play from 1979 until 2015. The policy, which was initially intended to slow down population growth, actually had the opposite effect: fewer babies were born and gender ratios were noticeably out of balance. There are fewer women of childbearing age now. Furthermore, this demographic’s decline may continue and pick up speed due to the growing expenses associated with raising children.
The nation's rapidly ageing population is another factor. China has seen a notable increase in the number of elderly people in recent decades due to the country's increased life expectancy. It is anticipated that this trend will continue,
with a projected doubling of the population over 65 by 2050.
Government measures
China has released a set of measures to encourage childbirth and support childcare and eldercare, in order to reverse the trend of population decline, and mitigate socio-economic challenges.
Parents of single-child households have been permitted to have two children since 2013, but Chinese couples have only been permitted to have up to two children since 2016. After that, China declared on May 31, 2021, that couples would now be permitted to have up to three children. These reforms are backed by tax breaks, childcare leave, and affordable childcare services and education. In addition, local governments have begun to offer monetary incentives to promote childbirth. For instance, subsidies of up to RMB 19,000 ($2,800) are available to Shenzhen couples with one to three children. These subsidies are paid as follows: 10,000
yuan initially, then an additional 3,000 yuan annually until the child turns three.
Numerous other factors, such as high living expenses, changing views on marriage and family among younger generations, and the economic downturn brought on by the COVID-19 pandemic and the nation's strict containment measures, have all contributed to China's population decline.
The growth of China’s elderly population has significant ramifications beyond economics. Due to their longer lifespans, elderly parents will need social, emotional, and financial support for a longer period of time. Many of them are dependent only on one child. Given that they must simultaneously care for their own children, support their ageing parents, and manage their careers, this dynamic may put additional strain on the children.
China has also created a range of supportive policies for the eldercare
Gross Domestic Product at current prices in China
Source: Statista
service sector, as well as tax deductions and eldercare leave offered in certain cities, in order to further encourage eldercare. Several policy measures to support the care mechanisms for elders and children were released in 2022 by the National Development and Reform Commission (NDRC). These include tax and fee reductions, financial support, and rent exemptions, among other measures that bring down the costs for care providers.
Previously, a high percentage of the population was of working age, which was known as the "demographic dividend" and drove the nation's rapid development. China's labour-intensive, export-driven economic model has made it possible for the nation to move from an agrarian economy to an industrial society with greater income levels and living standards over the past 40 years. However, China's future labour force and market potential, as well as its path of continuous growth, are all under doubt due to the country's demographic shift.
The loss of human capital is a direct result of a declining population. This implies that there will be fewer skilled workers, innovators, and entrepreneurs to support the economy and promote future growth. There may be a labour shortage due to the ageing workforce and population decline, which could make it challenging for businesses to find the workers they need to meet demand.
Certain industries are more negatively impacted by the shrinking labour force than others because some businesses depend more on physical labour than others. The manufacturing and construction sectors, for instance, are probably going to be hardest hit by this labour shortage. A decrease of this kind will also raise labour costs, which may make it harder for Chinese businesses to compete internationally.
However, because China already has a sizable labour pool, a severe worker shortage
is not anticipated shortly. In 2021, China's labour force was projected to number approximately 791 million. There are still a lot of underemployed or unemployed workers in some areas.
The most current data available indicates that the unemployment rates in provinces like Jilin, Inner Mongolia, and Tianjin are 61.8%, 61.1%, and 6.0%, respectively. These rates are noticeably higher than the 50.5% national average in 2022. When combined, these facts imply that China might not experience a severe worker shortage in the near future.
The market may get smaller as a result of the ageing population, which will directly affect the size of the market. This could lead to a drop in the demand for goods and services, which could be detrimental to the expansion of businesses in the nation. Because of the "age structure effect," which holds that younger generations are more likely to spend money than older ones, an ageing society may see a decline in consumer spending.
However, the nation's economic growth, consumer spending, and companies' capacity for innovation and adaptation to shifting market conditions are just a few of the variables that affect the market's size. Positively, fewer people mean higher per capita income, lower unemployment, and higher levels of disposable income—all of which support a robust domestic market.
In the meantime, the Chinese government has invested in higher-value products and used the dual circulation strategy to direct the economy toward its home market. In addition to increasing consumption abroad, more efforts are being made to expand the domestic market because China's per capita income is roughly six times lower than that of the US. Although China's GDP per capita is not expected to surpass that of the United States, there is still a great deal of room for growth in terms of household wealth, economic activity, and domestic consumption.
The market may get smaller as a result of the ageing population, which will directly affect the size of the market. This could lead to a drop in the demand for goods and services, which could be detrimental to the expansion of businesses in the nation
The whole geopolitical crisis in the Middle East has disrupted both global trade and imports
Since October 2023, Israel and its Mediterranean neighbours have been in chaos. Tel Aviv launched a retaliatory strike on the Gaza Strip after Hamas' October 7 attack on southern Israel. The conflict, which has now entered its sixth month and has already seen the death of over 1000, has affected Israel's economy severely.
While industries are now pausing their operations despite getting new investments, the Benjamin Netanyahu government has reportedly subsidised the salaries of 360,000 mobilised reservists deployed to Gaza, with many of them being professionals in finance, artificial intelligence, pharmaceuticals and agriculture.
What’s the scene now?
In November 2023, the Bank of Israel put the Gaza war’s ‘gross effects’ on Israel at 198 billion shekels ($53 billion) and revised its estimates for the country's economic growth to 2% per year for 2023 and 2024.
In the following month, Israel’s Finance Ministry estimated that the conflict will likely cost the Middle Eastern nation approximately $13.8 billion in 2024 if the war's 'high-intensity phase' concludes during the first quarter of the year.
One of the Israeli industries that have continued to do well is the high-tech sector, which has been the country’s fastest-growing sector in the last few years. The industry right now accounts for close to 20% of Tel Aviv’s GDP and 14% of jobs.
Since October 7, over 220 venture capital firms have expressed their solidarity with Israel and called on investors worldwide to continue to support Tel Aviv's tech ecosystem.
In December 2023, executives from United States-based venture capital, tech and private equity firms took part in the 'Israel Tech Mission'. US chipmaker Intel Corp has already confirmed its plans of building a $25 billion chip-making factory in southern Israel, while in the final quarter of 2023, Israeli tech start-ups managed to raise $1.5 billion.
However, the tourism sector has been the worst sufferer of the Gaza conflict. The sector, which accounted for 2.6% of GDP till 2019 and fell to 1.1% in 2021, has further gone downhill.
Soon after the war began, many airlines suspended the majority of their operations in Tel Aviv. As of January 2024, Lufthansa and its subsidiaries, including Swiss International Air Lines and Austrian Airlines, have resumed their flights to Israel.
Israel's Gross Domestic Product in current prices
In November 2023, the Israel Builders Association said that the construction industry was operating at roughly 15% of its preOctober 7 capacity. In December, 8,00010,000 Palestinian workers were permitted to resume work on Israeli settlements in the West Bank
Before Hamas' October 7 attack, a monthly tally of visitors arriving in Israel numbered above 300,000. In November, that figure reportedly went down to 39,000.
Construction, which accounts for 14% of Israel’s GDP, has also taken a significant hit since the beginning of the Gaza conflict. Projects have been paused and Tel Aviv froze worker permits for Palestinians who used to make up 65%-70% of the sector's workforce.
The gap created by the Netanyahu government's move has not yet been filled by Israeli workers, as all of them have been serving as reservists in the war. Also, foreign workers have left the country in huge numbers since the conflict's beginning.
In November 2023, the Israel Builders Association said that the construction industry was operating at roughly 15% of its pre-October 7 capacity. In December, 8,000-10,000 Palestinian workers were permitted to resume work on Israeli settlements in the West Bank. The Netanyahu government decided after facing pressure from business owners.
Also, Israel is known for using the Red Sea route for its imports. However, the Houthis (an armed political and religious
group, claiming themselves to be part of the Iranian-led 'axis of resistance' against Israel, the United States and the wider West) have been hammering the commercial shipping in this route through multiple drone and missile strikes.
Considering Israel and the West as its enemies, Houthis, as of January 23, have attacked over two dozen ships, a spree which started with the hijacking of a commercial ship in the Red Sea on November 19.
While these militants say that they are targeting Israeli-linked ships, many of the vessels which have been attacked have no connection with Tel Aviv. The result is shipping companies stopping the usage of the Red Sea, through which almost 15% of global seaborne trade passes. Commercial shipping is now using the much longer route around southern Africa, which is increasing their operational costs.
The United States and the United Kingdom carried out air strikes on Houthi targets in Yemen in January. Immediately after that, three American soldiers were killed and dozens were injured in a drone strike in northeast Jordan, which as per the reports, was a retaliatory one in nature.
Washington, in response, conducted an air assault on dozens of sites in Iraq and Syria used by Iranian-backed militias and the Iranian Revolutionary Guard, with Joe Biden indicating that more such responses will be seen by the world in the coming days.
Since Washington's relationship with Tehran has shown no signs of normalcy, the Houthi episode has added one more chapter to it. Iran has been charged with smuggling weapons to the Houthis during Yemen's civil war in violation of a United Nations arms embargo, a charge which Tehran has denied so far.
The whole geopolitical crisis in the Middle
East has disrupted both global trade and imports. Take Israel for example, which is performing its imports from Asia through an African reroute, which is bumping up costs further.
Although the cat-and-mouse game between the West and Houthis has not become a full-blown war, it has already done significant damage by blocking trade routes, disrupting global shipping and devastating local economies.
Egypt’s non-oil economic activities have recorded a further productivity decline, with geopolitics weighing on tourism activity and high prices weakening demand.
The headline purchasing managers’ index (PMI) for the country fell to 48.1 from 48.5, with anything below 50.0 indicating a decline in business conditions.
David Owen, senior economist at report authors S&P Global Market Intelligence, said, “Some firms signalled that the IsraelGaza conflict and associated geopolitical tensions had a negative impact on tourism activity, which could lead to further headwinds for the non-oil economy over the next few months. Reflecting this, firms were also less upbeat about future activity and kept employment numbers largely unchanged.”
Suez Canal, the hotbed of Houthi activities, is known for offering the global economy the shortest way between Asia and Europe, apart from helping Egypt earn about $10 billion a year.
The number of vessels transiting the canal has dropped by 30% in the first 11 days of 2024 compared to the same period last year, as per the Suez Canal chief Osama Rabie. Tonnage and dollar revenue have also gone down by 41% and 40% respectively.
The Suez Canal Authority has increased transit fees, raising them by up to 15% for tankers.
Before the Gaza conflict, a fifth of the average Middle Eastern country’s total exports, from Israeli tech to oil from the Gulf, used to be traded smoothly between the countries. After October 2023, things changed as the routes that transported more than half of all goods were blocked, resulting in the collapse of the intraregional trade.
Also, the cost of shipping goods has gone up, something which can cause exporters operating on razor-thin margins to go out of business in the coming months.
"The Red Sea used to handle 10% of all goods moving around the world. But since the Houthis began launching missiles, its
"Some firms signalled that the Israel-Gaza conflict and associated geopolitical tensions had a negative impact on tourism activity, which could lead to further headwinds for the non-oil economy over the next few months"
- David Owen
Jordan's tourism sector, which constitutes 15% of its GDP, has been a foregone tell, thanks to the geopolitics.
Immediately after Hamas’s October 7 attacks, international arrivals to Jordan fell by 54%
shipping volumes have dropped to just 30% of normal levels. On January 16th Shell, an oil and gas giant, became the latest multinational to say it would avoid the Sea," Economist commented further.
Will there be any respite?
Eritrea, for example, runs its economy through fishing, farming and mining exports, all of which take the seaborne route. Due to the tense geopolitics, the Eastern African country has entered the 'Danger Zone.' For crisis-stricken Sudan, the Red Sea is the sole point of entry for aid. Since the beginning of the Houthi unrest, the humanitarian crisis for the 24.8 million people in the African nation has escalated further.
Egypt is already in ruins. The Abdel Fattah El-Sisi government earned $9 billion in 2023 from tolls on the Suez Canal. Without this particular revenue in 2024, Egypt’s central bank may run out of foreign exchange reserves, which stood at $16 billion (or two months' worth of imports) in 2023 start. Egypt’s year-to-date income from the Suez Canal has been 40% less in
January 2024. The country faces the risk of running out of dollars, which will likely push the government into default and its budget into disarray.
Jordan's tourism sector, which constitutes 15% of its GDP, has been a foregone tell, thanks to the geopolitics. Immediately after Hamas’s October 7 attacks, international arrivals to Jordan fell by 54%. The government has turned to the West to fill the hole in its finances. In January 2024, the International Monetary Fund (IMF) made available new bail-out money. Despite all these problems, Jordan's economy grew by 2.7% by the end of the 2023 third quarter, with the hospitality sector achieving the highest growth rate of 6.3%, despite the geopolitical tensions affecting the tourist inflows.
In fact, as per the IMF, Jordan has effectively managed to overcome the economic difficulties stemming from the Gaza conflict through several fiscal measures. Jihad Azour, the director of the Middle East and Central Asia Department at the IMF, commended Jordan’s economy at the beginning of 2024, for successfully
navigating the challenges arising from the hostile regional geopolitics. However, Azour recommended that Jordanian authorities continue implementing effective economic policies to safeguard against potential spillovers from the Gaza conflict.
Azour also noted the positive impact of the recent government-IMF programme, asserting that the arrangement played a crucial role in activating economic and financial measures in the country.
"This, in turn, strengthened the solvency of public finances, providing Jordan with increased borrowing opportunities at favourable interest rates in alignment with national economic reforms, according to the director," commented the Arab News.
However, it was Lebanon and the West Bank, which felt the worst impacts of the Gaza war. With Israel and Hizbullah going toe to toe against each other, they are also destroying southern Lebanon.
"More than 50,000 people have already been displaced (as well as 96,000 in northern Israel). Repairs will be expensive, but there is no cash left for them: Lebanon has had a shell government since it defaulted in 2019. In recent months its economic free fall has accelerated as foreign tourists and banks, which together make up 70% of its GDP, have deserted the country on the advice of their governments," commented The Economist.
In 2024 beginning, the IMF underscored that the Gaza war served as a significant shock to the MENA (Middle East and North Africa) region, posing economic challenges throughout the region.
As per Azour, regional developments have led to a 0.5% reduction in the expected growth of economies for 2024, settling at 2.9%.
Moreover, inflation will decline in most economies across the region, maintaining a
negative trajectory for the average growth in low-income countries.
As per the IMF, Jordan has sustained a broad-based recovery amid a challenging external environment, thanks to the authorities’ effective policy response. However, the same thing can't be stated about the other nations in the region.
In December 2023, a United Nations study revealed that the economic repercussions of the Gaza conflict would hit neighbouring Arab economies hard. The economic cost for Lebanon, Egypt, and Jordan was projected to soar to $10 billion, potentially pushing over 230,000 people into poverty.
The conflict put pressure upon the existing fiscal pressures in the region, resulting in sluggish growth and high unemployment in the three Arab countries, apart from deterring investments and impacting consumption and trade.
The study, commissioned by the United Nations Development Programme, indicated that the economic toll on the three Arab states, in terms of loss of GDP, could reach $10.3 billion or 2.3%. The situation could worsen if the conflict persists till the middle of 2024.
Jordan seems to have defied the grim prediction. Unfortunately, its neighbours have hit the rough seas and given the fact that the regional volatility won't settle down anytime soon, the MENA region will continue to feel the pinch.
If the region slides into a debt crisis, the worst sufferer will be its young and urban population, which is also increasingly unemployed. This will add more fuel to the regional volatility, something which the world can't afford at all, given the strategic importance of the MENA. What may begin as economic volatility, can take a disastrous political shape in no time. And this doesn't look good for the region.
In December 2023,
a United Nations study revealed that the economic repercussions of the Gaza conflict would hit neighbouring Arab economies hard. The economic cost for Lebanon, Egypt, and Jordan was projected to soar to $10 billion, potentially pushing over 230,000 people into poverty
Vision 2030
Saudi Arabia
GBO Correspondent
On April 25, 2016, Crown Prince Mohammed bin Salman unveiled “Vision 2030,” a strategy plan aimed at achieving three interconnected objectives: raising Saudi Arabia's profile internationally, modernising society in line with cultural traditions, and diversifying the Saudi economy away from oil.
The present pace of Saudi Arabia's economic growth and social empowerment, as well as its proactive engagement in geopolitics, are signs that the economic diversification agenda is tasting success. The youth and women, who make up the majority of the population, have become the prime beneficiaries of the “Vision 2030."
Crown Prince Mohammed bin Salman, often known as MBS, is leading the “Vision 2030” from the front. His vision is that of a "strong, thriving and stable Saudi Arabia,” guided by values like "moderation, tolerance, excellence, discipline, equity, and transparency."
Even though it is important to talk about Vision 2030’s impact on the overall Saudi socioeconomic order, we also need to acknowledge the enormous obstacles the roadmap faces, while analysing the Kingdom’s response against the challenges.
The “Arab Spring,” seen in the early 2010s, exposed a hidden threat: the pressing need to fulfil the aspirations of young people for social and economic emancipation. It could not be addressed in an economy that relies heavily on oil earnings and provides few jobs in the public sector.
In light of these compelling circumstances, "Vision 2030" was introduced to secure Saudi Arabia's position as a major economic player in the Islamic world, while utilising its advantageous location to become a global hub that connects Asia, Europe, and Africa.
There has been a noticeable success in Vision 2030's efforts to wean the economy from its excessive reliance on oil as a major source of national income
Eleven “Vision Realisation Programs” are helping to realise the three strategic pillars, a dynamic society, a booming economy, and an ambitious nation, that the crown prince emphasised in his address. Every programme outlines precise goals that must be met by 2030 through three “National Transformation Programmes,” each lasting five years.
The first pillar, which propelled the social reformation process, aimed to boost household expenditure on cultural and recreational activities from 2.9% to 6% and elevate Saudi Arabia's position in the global Social Capital index.
The second pillar of the economic plan aimed to reduce the country's dependence on oil. The goals set were to decrease the unemployment rate from 11.6% to 7%, raise the percentage of non-oil exports in the nonoil GDP from 16% to 50%, increase the contribution of the private sector to the GDP from 40% to 65%, and also to boost foreign direct investment from 3.8% to 5.7% of GDP.
The third pillar aimed to improve national competitiveness and governmental effectiveness by ranking Saudi Arabia in the top five countries in the E-Government Survey Index and in the top 20 in the Government Effectiveness Index.
Nearly all facets of social life, both public and private, have been impacted by the reforms, including sports, travel, entertainment, the arts and culture, and much more. Until 2018, women were not allowed to drive; today, they can work, attend school, and enter public places. Saudi Arabia's female labour participation rate in 2022 was 37% of the total workforce, far higher than the 30% goal set for 2030. The overall unemployment rate fell to 8%, which is just 1% below Vision 2030's 7% target. Youth unemployment has also dramatically decreased.
Additionally, there has been a noticeable success in Vision 2030's efforts to wean the economy from its excessive reliance on oil as a major source of national income. Following the global pandemic, the Kingdom's economy recovered and grew, which has been especially helpful in reaching the goals set for gigadevelopment projects like the $500 billion, carbonfree futuristic NEOM city. Every fiscal year, trade in non-oil products with China and the rest of the globe rises. The growth of the private sector is being driven by an educated and youthful population. Over the
years, small and medium-sized businesses also have experienced tremendous growth.
The Kingdom plans to invest $1 trillion in the tourism sector as part of the National Tourism Strategy, to draw 100 million visitors annually by 2030 and position itself as a major worldwide tourism hub. For that reason, important heritage, entertainment, and cultural places have been built, like Qiddiya, which is close to Riyadh; AlUla, which is in the northwest; and AlSoudah, which is in the Asir region.
The Kingdom's steady ascent in important global rankings serves as another gauge for evaluating Vision 2030's effectiveness. As a result of its revolutionary influence on the socioeconomic conditions of the populace, encompassing fundamental facilities like housing, healthcare, and education, the Kingdom was named the third happiest Arab nation in the 2022 World Happiness Report. In the World Bank's Women, Business, and the Law Index, Saudi Arabia has likewise improved its standing, going from 31.9 in 2016 to 80 in 2022.
In the attitude and values category of the World Competitiveness Yearbook 2022 peer group rankings, Saudi Arabia ranked sixth out of 63 nations based on four indicators: infrastructure, business efficiency, government efficiency, and economic performance. Additionally, the Kingdom advanced fifteen places in the World Intellectual Property Organisation's 2022 Global Innovation Index. The goal for the higher education industry in 2030 was to have five Saudi universities listed in the top 200 global university rankings by Times Higher Education. Twenty-two universities were listed in 2022.
The Public Investment Fund (PIF), the Kingdom's growing sovereign wealth fund with a current value of approximately $650 billion, and the private sector, including Saudi Aramco and the petrochemical company SABIC, will provide the majority of the $7 trillion needed to fulfil "Vision 2030." In this regard, Foreign Direct Investment (FDI) will be a significant source. Since 2018, the Kingdom has hosted the Future Investment Initiative Conference annually, drawing hundreds of influential corporate and industry leaders from the United States, Europe, and other countries. As a result, over the previous seven years, the volume of FDI has doubled, reaching $640 billion in 2022.
Being the most powerful Gulf state, the Kingdom
The Kingdom received a little over $17 billion in FDI inflows year on average between 2017 and 2022. Meanwhile, the nation's Investment Ministry has set a target of roughly $19 billion for FDI in 2023
is ideally suited for different diplomatic missions. Saudi Arabia constantly seeks peace, stability, and advancement across borders due to its unique regional and global standing.
The constant enemy of “Vision 2030” has been the volatile geopolitics of the Gulf and MENA (Middle East and North Africa) regions; along with the COVID outbreak. However, the crown prince demonstrated excellent leadership in these difficult times by strengthening and diversifying economic ties with Asia. He was successful in appeasing the United States and even reached out to Iran.
However, according to experts, “Vision 2030” needs to address the drawback of the oil-rich nation paying investors out of pocket rather than the other way around. It seems even the government is aware of the drawback as it now wants to attract yearly FDI of $100 billion by 2030, a goal around 50% higher than it presently receives and far greater than its prior accomplishments. The Kingdom received a little over $17 billion in FDI inflows year on average between 2017 and 2022. Meanwhile, the nation's Investment Ministry has set a target of roughly $19 billion for FDI in 2023.
Let's talk about the deal between Saudi Arabia and Lucid, an American electric vehicle manufacturer. In 2022, the Saudi government agreed to purchase up to 100,000 of the company's vehicles. However, the burden of financing the deal fell on the shoulders of the MBS administration. The Public Investment Fund (PIF) of Saudi Arabia has already provided $5.4 billion in funding, and in April 2024, the EV manufacturer received an additional $1 billion boost.
Like many other companies, Lucid's biggest stakeholder is PIF. The business was regarded as a shining example of a foreign enterprise investing in the “Vision 2030” initiative. It could have
been a brilliant display of outside capital arriving in the Kingdom. However, Lucid's insistence on receiving funds from the Kingdom may force oneself to think differently.
Apart from spending billions to fulfil its quest of becoming an EV hub in the Gulf, Riyadh also needs to overcome obstacles including a lack of infrastructure, talent and raw materials. The PIF has a goal to produce 500,000 EVs annually by 2030, up from a target of 150,000 in 2026. Yet by December 2023, the Kingdom's sole auto factory, which opened in September 2023, had reassembled around 800 vehicles, based on kits supplied from Lucid's Arizona facility. Still, getting Lucid to operate from the Kingdom is a huge achievement for the MBS administration, especially after the 2019 fiasco, where Toyota declined a deal with the Gulf nation, citing the latter's high labour costs, a lack of local suppliers, and a small local market.
A viable solution for the Kingdom can be a similar legislation like the United States' Inflation Reduction Act, which aims to channel investment into creating a lower carbon economy, thereby directing tens of billions into EV manufacture.
What Saudi needs to immediately focus upon is the development of a domestic automobile supply chain. Only then, more and more global automobile giants will have the confidence to set up their factories in the Kingdom. Not only production activities will get streamlined, but the overall process will become cost-effective too.
Apart from Lucid, the Kingdom's domestic EV manufacturer Ceer, a joint venture between the PIF and Taiwanese company Foxconn, plans to launch a car by 2025. Ceer has awarded a contract to Modern Building Leaders (MBL) to begin construction of its EV manufacturing complex in King Abdullah Economic City, Saudi Arabia.
We believe that the success of Ceer is more important than the Lucid bet. The
joint venture between PIF and Foxconn has a promising future to make the dream of Saudi residents come true, which is to own a "Made in Saudi" car and to establish a domestic supply chain that is much needed.
Apart from Ceer and Lucid, in October 2023, Hyundai and the PIF announced a joint venture to build a factory for internal combustion engines and electric vehicles that, together with Lucid and Ceer, would create a cluster of factories in Jeddah's King Abdullah Economic City. Saudi wants to become a hub for manufacturing and supplying EV batteries, but to achieve that, the nation needs raw materials, notably lithium, which Saudi Arabia's Vice Minister of Industry and Mineral Resources Khalid bin Saleh Al-Mudaifer told Reuters was one of the metals the Kingdom sought to produce, although no reserves have been announced.
Robert Wilt, Chief Executive Officer of
the PIF-backed mining company Maaden, told Reuters in 2023 that attempts to extract lithium from salt water were at the pilot stage. The PIF in January 2023 launched Manara Minerals, a joint venture with Maaden, to secure minerals abroad.
Course correction
Overseas investors are becoming cautious about the Kingdom’s 2030 prospects, according to a Bloomberg article that cited bankers, investors' lawyers, and people familiar with Saudi Arabia's fundraising activities.
The government is re-evaluating its plan and accounting for the prospect of financing a larger amount of its economic transformation within a short timeframe. There are indications that massive initiatives meant to boost its $1.1 trillion economy are being scaled down. In addition, the government is bonding
Like many other companies, Lucid's biggest stakeholder is PIF. The business was regarded as a shining example of a foreign enterprise investing in the “Vision 2030” initiative. It could have been a brilliant display of outside capital arriving in the KingdomHowever, Lucid's insistence on receiving funds from the Kingdom
Challenges also face other projects, such as the entertainment city Qiddiya, which is located near the capital. Despite having promised to spend over 1 trillion riyals ($266 billion), Qiddiya is only supported by PIF and a Saudi developer that it owns
billions of dollars to help pay down a fiscal deficit that it did not foresee until far into 2023.
Let’s undergo another case study here. Under “Vision 2030," the Kingdom initiated large-scale projects like Neom, a $500 billion initiative that, with the help of foreign capital and expertise, is supposed to turn a desolate area of the northwest desert into a hightech, carbon-free metropolis.
Neom's fundraising attempts have not yielded considerable results, even with marketing campaigns and investor roadshows. And it has resulted in the Kingdom downsizing plans for its $500 billion linear city. By 2030, development was planned in stages to ultimately cover a stretch of 170 kilometres of coastal desert and house 1.5 million people.
However, as per Bloomberg, the project will now be scaled back to 2.4 kilometres, with a reduced capacity of less than 300,000 residents.
“The pullback on The Line comes as the kingdom’s sovereign wealth fund has yet to approve Neom’s budget for 2024. It shows that the financial realities of the trillions of dollars of investment are starting to cause concern at the highest levels of the Saudi government as it tries to fulfil its ambitious "Vision 2030" programme, the overarching initiative tasked with diversifying the kingdom’s economy,” Bloomberg wrote, while citing unnamed sources familiar with the matter.
Challenges also face other projects, such as the entertainment city Qiddiya, which is located near the capital. Despite having promised to spend over 1 trillion riyals ($266 billion), Qiddiya is only supported by PIF and a Saudi developer that it owns.
However, the Qiddiya Investment Company (QIC) is going ahead with the project. It has unveiled another addition for Qiddiya, in the form of
a Dragon Ball theme park. Spanning over half a million square metres, the theme park will captivate visitors with its immersive journey into the beloved Dragon Ball universe.
The park will feature seven distinctively themed zones, each encapsulating the essence of the series’ most iconic storylines, moments, and characters. From the inception of the original Dragon Ball series to the latest saga, Dragon Ball Super, visitors will get to witness the franchise's evolution.
The park will have interactive and explorable landmarks inspired by the Dragon Ball sagas. This anime-themed park has over 30 rides. One of the park's flagship attractions features a rollercoaster that traverses through a towering 70-metre "Shenron" landmark. The facility will also have themed in-park hotels. Qiddiya's Dragon Ball theme park has been the result of its partnership with Toei Animation, Japan’s leading animation
company and the original creators of Dragon Ball. Apart from the newlylaunched theme park, Qiddiya also has the world's first multi-use Gaming and Esports District, the high-tech Prince Mohammed bin Salman Stadium and Speed Park Track.
One of the goals of "Vision 2030" is to make the Kingdom an entertainment hub and Qiddiya's rise will be crucial in fulfilling the goal. Qiddiya's partnership with Toei Animation will make other entertainment ventures enter into similar partnerships with QIC. Will Qiddiya challenge Disneyland? We need to wait and watch. However, as of now, prospects for the project look promising.
Riyadh is also making more of an effort to draw in foreign investment even as it keeps drawing on its reserves. According to the publication, this has recently been the case with Kuwait, a neighbouring country, whom the Kingdom has requested to invest over
$16 billion in the Neom project and others.
Even if US-based Air Products and other businesses have agreed to joint ventures at Neom, Riyadh is still responsible for financing around half of the project's total cost, which is equivalent to half of its present economic output.
Monica Malik, chief economist at Abu Dhabi Commercial Bank PJSC, said, "It's still essentially a development model led by the public sector. They're employing every resource they have for this transformation plan right now, and in the long run, I believe it will still be primarily a Saudi-led development plan."
The expenditures made by Saudi Arabia will affect private assets, governments, Wall Street, and even projects it has across the globe. The new circumstances will compel the Kingdom to once more rely on oil to close its financial shortfalls.
Targets of social development in the Kingdom of Saudi Arabia according to the Vision 2030 in 2016 and in 2030 (In Percentage)
Source: Statista
This insight is prompting the PIF to adopt a policy that centralises spending power. The fund, which is anticipated to provide at least $20 billion in dividend payments in 2024, was recently given a $164 billion investment in Saudi Aramco by the Kingdom.
The Middle East and North Africa expert economist at Bank of America Corp., Jean-Michel Saliba, hypothesised that the Kingdom would likely back prolonged production cuts by OPEC+, the oil organisation it co-leads with Russia. The preservation of oil prices has been greatly aided by this reduction. According to Bloomberg Economics, prices remain below the minimum threshold of $108 a barrel that MBS requires to finance its plans, even with the supply constraints imposed by the reductions in oil output.
Even though the PIF presently oversees assets valued at $900 billion, as of September 2023, its cash reserves were only $15 billion. According to PIF Governor Yasir al-Rumayyan, the public organisation has previously committed over 30% of its capital to international investments; it currently
plans to commit 20%–25%, with more contributions anticipated.
"We will continue to deploy internationally, but for now, our focus is on the projects that we have in Saudi Arabia," Yasir al-Rumayyan stated in February 2024.
Mohammed al-Jadaan, the minister of finance of Saudi Arabia, has admitted that there is a financial shortfall and hinted that more debt may be issued. He was part of an MBS-led team that examined the substantial financial needs of “Vision 2030” and contrasted them with the Kingdom's anticipated income.
“Vision 2030” represents a monumental effort to transform Saudi Arabia's economy, society, and global standing. Halfway through its implementation, the initiative has made significant strides in various sectors, especially when it comes to the reforms improving the quality of life for women and the youth.
At the same point of time, the need to fund large-scale projects like NEOM has strained the Kingdom's finances, leading to increased government borrowing and the drawing down of reserves. There are concerns about the
high project costs and the failure to attract significant foreign investment, and these concerns need immediate government attention.
The MBS administration’s response has been that of adapting and recalibrating “Vision 2030” in response to the emerging challenges. The recent focus on centralising spending power and reevaluating the allocation of resources demonstrates a pragmatic approach to managing financial constraints.
“Vision 2030” may continue to face hardships but its transformative impact on Saudi Arabia's socio-economic landscape is undeniable. What the Kingdom needs to do is to navigate the complexities, attract sustainable foreign investment, and implement effective fiscal policies to ensure long-term economic stability. The journey towards a diverse Saudi economy is a work in progress, and the next decade will be crucial in determining its ultimate success.
Analysis
GBO Correspondent
Germany became Europe’s economic giant due to its strong manufacturing base
Germany, the biggest European economy shrank in the final three months of 2023, prompting economists and business leaders to call for an adrenaline shot to the country's ailing industrial landscape.
GDP has contracted by 0.3% in the 2023-24 fourth quarter compared to the previous quarter, with the overall economy shrinking by 0.3% over the course of 2023, bogged down by persistent inflation, high energy prices and weak foreign demand.
In the second and third quarters, the GDP stagnated, helping the country to avoid another technical recession, as the phenomenon happens only when GDP contracts in two successive quarters.
Now, the Munich-based research institution IFO Institute has issued a forecast of the German GDP witnessing a 0.2% decline in the first quarter of 2024.
Troubles galore
The heads of four leading lobby groups have appealed to the German Chancellor Olaf Scholz for reforms to boost the attractiveness of Germany for industry, while also demanding cheaper electricity prices, investment in infrastructure and tax reform.
In January 2024, train drivers had their one week strike over working hours and conditions, along with salaries. The protesting workers want their duty hours to be reduced from 38 to 35 hours per week without a pay reduction, with their union GDL seeking a monthly raise of €555 for employees plus a one-time payment of up to €3,000 to counter inflation.
Also, bus and tram stations across 80 cities came to a standstill as public transport workers went on strike to
press for improved working conditions and higher holiday entitlement. To make matters worse, the European giant's flagship carrier Lufthansa's ground staff walked off the job at five major airports. Their union called for a 12.5% pay raise or at least €500 more per month for nearly 25,000 employees.
Unions are pressing for higher wages and improved working conditions to help their members cope with the inflation that climbed recently as high as 8.8%. The strikes have resulted in the country losing an average of 17.8 working days per 1,000 employees between 2020 and 2022. In 2000, the same ratio was 12.6.
A one-day nationwide rail strike is costing the European giant economic output worth around 100 million euros ($107 million).
Commerzbank chief economist Joerg Kraemer estimates that the strike will reduce value creation in the transport sector by 30 million euros per day, which corresponds to 0.3% of daily gross domestic product.
Residential property prices in Germany dropped 10.2% in the 2023-2024 third quarters, reflecting a grim picture for the sector.
"It was the fourth consecutive quarter of declines and the biggest since Germany's statistics office began keeping records in the year 2000, underscoring the nation's biggest property crisis in decades," Reuters commented on the crisis.
The property sector in both Germany and Europe boomed in the low-interest rate regime, along with strong demand. However, as the global economy entered the inflation phase in 2022, rates too witnessed a sharp rise, resulting in an increase in borrowing costs, sending real estate developers into insolvency as bank financing dries up and deals freeze.
Demand for single- and two-family homes in major German cities has been declining since 2023, while apartment prices fell 9.1%. Orders for the construction industry too dropped a seasonally adjusted 6.3% in October
Source: Statista
2023, with the German Construction Industry Federation warning that the sector was heading for a further reduction in jobs.
Germany’s Deutsche Pfandbriefbank AG is one of the victims of the real estate woes, as its bonds slumped on concern about its exposure to the sector.
The bank had to respond by issuing an unscheduled statement about its increasing provisions because of the “persistent weakness of the real estate markets.”
It described the current turmoil as the “greatest real estate crisis since the financial crisis.” Lenders are taking increasing provisions on debt extended to property owners and developers as loans are souring due to the rising interest rates, which have eroded the value of buildings around the world. The bank also warned about refinancing posing the greatest risk to the struggling sector as asset values suffer.
Aareal Bank AG bonds lost about 10 points, as they got quoted at 76 cents on the euro. In the first half of 2023, the major state banks, Helaba, BayernLB, LBBW and NordLB, posted provisions of about €400 million in total.
If the commercial real estate losses spread to Europe through smaller German banks, the situation would look like one generated by the 2008 global financial crisis. Germany’s central bank, Deutsche Bundesbank, has already warned about the risks surrounding commercial real estate, saying there could be “significant adjustments” leading to higher defaults and credit losses.
In 2023, the country’s constitutional court ruled against a plan that allowed money intended for COVID emergency measures to be spent on the transition to a carbon net zero economy. That resulted in a €60 billion (£52 billion) budget hole, which had to be filled by austerity measures.
Germany became Europe’s economic giant due to its strong manufacturing base. Also joining the euro at a competitive exchange rate and securing supplies of cheap Russian energy helped the country to boost its corporate profits and generate trade surplus.
Berlin was the key lecturer during the 2009-10 'European Debt Crisis,' also known as 'Eurozone Crisis.' Countries were asked to follow Germany’s example and make themselves leaner and more competitive.
However, the undoing of the Scholz government has resulted in the European nation squandering its advantageous position. Now its smaller peers like Portugal, Italy and Spain are sparing the Eurozone from tipping into a recession.
Peter Bofinger, professor of economics at Wurzburg University, said the German economy has structural problems, and what was once considered the strengths of the country’s business model have now become its weaknesses.
"Germany is much more exportfocused than other developed nations, manufacturing accounts for a bigger share of the economy and the car sector became too reliant on China and has been slow to adapt to the growing demand for electric vehicles. The German economy is facing a fundamental challenge to its business model that cannot be addressed by removing regulations and cutting taxes," Bofinger stated in his opinion piece for Social Europe, while adding, “Germany has become sick. But it could be cured if it were willing to change its lifestyle and take the medicine needed to regain its health."
“The medicine is public debt deployed as an engine of growth – not by reducing taxes and accompanying transfers but by increasing public investment to stimulate domestic demand and the emergence and deployment of new technologies,”
Bofinger noted.
Holger Schmieding, economist at Berenberg Bank, sounded upbeat about the prospects of the German economy bouncing back, given its strong labour market and a fiscal position enviable for other advanced economies. The economy has stagnated, as per Schmieding, due to China's economic slowdown and Germany's decision to wean itself off cheap Russian energy since the 2022 Ukraine war.
“Germany is very dependent on global trade. When global trade is booming everybody marvels at how well Germany is doing. When global trade is weak Germany becomes the sick man of Europe,” Schmieding added.
Timo Wollmershauser, head of forecasting at the IFO Institute, said, “Germany has become noticeably less competitive as a business location in recent years. In addition to higher energy costs, a number of other factors have contributed to this: an unchanged high tax burden,
increasing bureaucratic costs, sluggish progress in digitalisation and a growing shortage of skilled workers.”
Carsten Brzeski, global head of macro at ING bank, said that Germany was facing similar problems to other European economies, caused by higher interest rates and the Ukraine war. However, Berlin is dealing with "additional issues of its own" that will take time to solve and "will require Germany’s companies to adapt in order to survive.”
Brzeski dubbed the problems as more of "structural issues" harming the German economy. As we end the discussion here, the question remains, does Chancellor Scholz mull a structural overhaul of the German economy? That won't be a bad move either.
If the commercial real estate losses spread to Europe through smaller German banks, the situation would look like one generated by the 2008 global financial crisis. Germany’s central bank, Deutsche Bundesbank, has already warned about the risks surrounding commercial real estate Analysis \ Germany
The issue of the true living wage continues to be a contentious topic in the United Kingdom
The second well-known corporation to notify workers that it would no longer be adhering to the true living wage is the United Kingdom-based business service provider Capita.
The objective of the independently determined rate is to guarantee that those with the lowest incomes can afford the essentials of a respectable living. It was developed as a result of a grassroots initiative to better the lives of the UK's poorest inhabitants.
However, Capita has joined the brewer and bar operator BrewDog in informing employees that it could no longer afford to pay the actual living wage, which soared to £12 an hour, following two years of 10 hikes as inflation tore through the economy. Unions worry that more businesses might be gearing up to follow.
The Communications Workers Union (CWU), which represents a large number of employees at Capita and who are under contract to work for a variety of clients like ‘Virgin Media’ and ‘Tesco Mobile,’ is in consultation with its members over the next course of action.
"It's sad: these are the lowest earners and it makes a big difference to them," remarked CWU's Tracey Fossey, as she stated further, “We disagree with Capita's assertion that they cannot sustain it, given that the CEO will receive almost £1.7 million in compensation in 2022."
In the United Kingdom, in which ways has your cost of living increased? (January 2024)
The price of my food shop has increased
My gas/electricity bills have increased
The price of my fuel has increased
My rent/mortgage costs have increased
The price of my public transport has increased
The price of childcare or other care costs increased
"All of our lowest-paid employees will receive a pay rise that is above inflation. We are still dedicated to our employees, and as part of our ongoing cost-based assessment, we will consider this decision again when it makes sense," a Capita representative stated.
The statutory minimum wage, which all businesses are required to pay, was renamed as a "national living wage" in 2015 by the thenchancellor, George Osborne, as a backhanded homage to the living wage movement, which had pushed for higher wages along with other demands like regular hours and fewer antisocial shifts.
However, the movement that called itself the "real living wage" campaign is still commissioning studies, establishing a higher salary floor based on the cost of living for lowpaid workers, and pressuring employers to commit to paying it.
The Living Wage Foundation's director, Katherine Chapman, expressed her
disappointment with Capita and BrewDog's choice to abandon the norm, but she also stated that the cause is still going strong.
"Due to changes in the cost of living, rates have increased significantly during the past two years. However, in just the past year, 3,000 employers have signed up with us," she stated.
According to Chapman, companies may set themselves apart from the competition by committing to pay a real living wage, as investors and customers are becoming more aware of how these companies treat their workers.
"There is a strong case for the network's continued growth based on our observations and conversations with businesses," she states.
Not only has the real living wage increased significantly to keep up with the skyrocketing cost of living, but the government's mandated "national living wage" is also set to rise by 10% in April 2024 to £11.44 an hour as it moves closer to two-thirds of the median rate across the economy.
According to Neil Carberry, CEO of the 'Recruitment and Employment Confederation,' some employers are uneasy about the second substantial rise in a row.
In 2024, more members are sending him emails about it than ever before, he claimed, while explaining, "They care deeply about equity in the workforce as well as affordability for themselves."
"If last year's private sector settlements were between 5% and 8%, a 10% increase in the minimum wage and living wage didn't feel like a huge blow to the tent," he continued.
“If you get a second one this year, your entry-level pay has increased by roughly 20% in just two years. There seems to be a lot of worry about worker equity from what I hear,” Carberry remarked further.
However, TUC head of economics Nicola Smith categorically denied the notion that the national living wage is growing too expensive. She said, "The TUC still demands a minimum wage of at least £15 per hour."
"Over the past ten years, there has been a substantial body of evidence demonstrating
that raising the minimum wage for the lowest paid workers in our labour market has been feasible during some extremely difficult economic times with no adverse effects on the labour market at all," Smith commented.
A total of 14,000 firms have agreed to pay a real living wage of £12 per hour (£13.15 in London). Among them is Eland Cables' executive director, Jean-Sebastien Pelland. As an owner-manager who collaborates with his employees, he asserted that it was "absolutely the right thing to do, both morally and economically."
From an economic perspective, Pelland believed that providing for and treating people properly makes sense.
“It necessitates that we spend less money and effort on hiring. As an alternative to repeatedly learning the fundamentals, we might focus on expanding our skill set. Additionally, it improves Eland Cables as a location to be,” he remarked further.
Co-founder of Bird & Blend Tea Co., a business dedicated to the real living wage that is located close to Brighton, Mike Turner acknowledged that this year's 10% increase was expensive, especially when considering the ripple effect higher up the income range.
He calculated that roughly 100 employees, spread among the company's 17 stores and warehouse, make the actual livable wage.
"It wouldn't be serving its purpose if it was lower, but part of me thinks it would have been nice if it was. There is no purpose in joining such a scheme if you leave it before it has a chance to bite and hurt you," Turner observed.
Not only has the real living wage increased significantly to keep up with the skyrocketing cost of living, but the government's mandated "national living wage" is also set to rise by 10% in April 2024 to £11.44 an hour as it moves closer to two-thirds of the median rate across the economy
The issue of the true living wage continues to be a contentious topic in the United Kingdom. While some companies like Capita and BrewDog have chosen to abandon the practice, others such as Eland Cables and Bird & Blend Tea Co. have committed to paying their employees a real living wage.
The Living Wage Foundation and its supporters continue to push for higher wages and better working conditions for low-paid workers, while the government's mandated national living wage is set to rise again in April 2024.
The dedication of companies like Eland Cables and Bird & Blend Tea Co. to prioritise their employees' well-being exemplifies a moral and economic imperative. The Living Wage Foundation's unwavering pursuit of higher wages underscores a broader movement for social equity. As the government's mandated national living wage climbs, the conversation on equitable compensation intensifies. In the United Kingdom's dynamic work environment, there is a strong collective commitment to fair wages and dignified labour, which is shaping the future of work.
Qatar's industrial sector
Producer Price Index (PPI) for February 2024 was 114.39 points, up 1.03% from the previous month and down 8.6% from February 2023.
The Planning and Statistics Authority (PSA) has published the February 2024 edition of the Monthly PPI of the Industrial
Economy
a rise of 1.03%. When comparing the PPI of February 2024 to that of February 2023, there was a Y-o-Y decline of 8.60%.
The PPI for the mining and quarrying industry in February 2024 increased by 0.90% from the PPI for January 2024. This increase was mostly caused by a 0.91% price increase in "crude petroleum and natural gas," with "other mining and quarrying" showing no discernible change.
sector, which was computed using data from 2018.
The main four industry sectors are weighted differently: Manufacturing (15.85%), Mining (82.46%), Electricity (1.16%), and Water (0.53%).
In comparison to January 2024, the PPI for February 2024 is projected to be 114.39, indicating
According to official data, Britain's economy entered a mild recession in 2023. This presents Prime Minister Rishi Sunak with the difficult task of assuring the public that the economy is secure under his leadership in an election year.
The Office for National Statistics (ONS) reported that the third-quarter and fourthquarter gross domestic product declines were both 0.1% and 0.3%, respectively, and were not different from preliminary estimates.
In February 2024, the PPI for mining decreased by 9.18% from the same month the previous year (February 2023) as a result of price decreases for "crude petroleum and natural gas" by 9.19% and "other mining and quarrying" by 0.02%.
Sunak will be disappointed by the numbers, since he has been accused of directing "Rishi's recession" by the opposition Labour Party, which is polling far better than Sunak.
"The weak starting point for GDP this year means calendar-year growth in 2024 is likely to be limited to less than 1%. However, an acceleration in momentum this year remains on the cards," Martin Beck, chief economic advisor at EY ITEM Club said.
The British economy appears to be getting off to a stronger start in 2024. In January, the monthly GDP grew by 0.2%, and unofficial surveys indicate that growth continued in February and March.
The economy is anticipated to benefit in 2024 from the tax cuts announced by Finance Minister Jeremy Hunt and the anticipated reduction in interest rates.
The Office for National Statistics reported that the third-quarter and fourth-quarter gross domestic product declines were both 0.1% and 0.3%, respectively
The fourth quarter of 2023 saw an annualised rate of growth of 3.4% for the United States’ GDP, up from estimates of 3.2% a month earlier.
The economy was helped during the quarter under review by higher estimates of consumer spending, exports, and business investment.
Comparing Q4 GDP growth to Q3 GDP, which was estimated to have grown by 4.9%, however, revealed a sequential decline.
Gross domestic income (GDI), the second primary indicator of economic activity used by the US government, increased by 48.8% between October and December 2023, the highest increase in the previous two years. While
GDP measures the amount spent on these goods and services, GDI measures the income earned and expenses incurred during the production process.
Even though goods outlays were revised lower, consumer spending, which makes up two-thirds of GDP, increased at a rate of 3.3% due to increased spending on financial and healthcare services.
The US economy, which is the largest in the world, grew by 2.5% overall in 2023 as opposed to 1.9% in 2022.
A forecasting model released by the Federal Reserve Bank of Atlanta indicates that the economy is expanding at a somewhat slower rate of 2% per year.
Egypt Prime Minister Mostafa Madbouly called a meeting with important government officials, to track the development of the Advance Cargo Information (ACI) system and the customs clearance of goods at ports.
Prime Minister Madbouly began by restating his commitment to accelerating the customs clearance procedure for merchandise that is being released at different Egyptian ports. This programme, which aims to increase the supply of basic goods, industrial production inputs, medications, and other necessities in the Egyptian market, is supported by the foreign currency that is available in banks.
The Egyptian Customs Authority has released Circular No. in response to the Prime Minister's directives to address the build-up of unclaimed goods at customs ports, according to the Minister of Finance. According to Customs Law No., this directive requires customs administrations to start the process of classifying goods as unclaimed and to sell them, and it’s implementing executive regulations, which go into effect at the start of April.
A review of the value of goods registered, approved, and cleared through customs up to March 31, 2024, was one of the topics covered in the meeting, according to Cabinet spokesperson Mohamed El-Homsani.
Analysis
GBO Correspondent
A crucial recycling route was destroyed by a fire in the middle of 2022 at Close the Loop's Melbourne facility, where soft plastics were processed to make an asphalt additive
Customers of Coles and Woolworths are still being misled into believing they may return soft plastic food packaging to the stores, where it would be taken care of by the nowdefunct recycling programme, more than a year after REDcycle went out of business. ‘Soft Plastics’ denotes the balls of plastic that can be squished up.
Bread and cereal packets, vegetable packaging, chocolate bar wrappers, and clingfilm are all included in this terminology. Australians consume 70 billion pieces, or around 538,000 tons, of soft plastics each year, according to the Australian Packaging Covenant Organisation (APCO).
Established as a nationwide programme in 2011, REDcycle was all about collecting and recycling soft plastics. Customers could drop off discarded soft plastics for processing at any one of the 2,000 Coles, Woolworths, and select Aldi supermarkets.
The programme claimed to collect five million things every day before collapsing in November 2022. The majority of those were shipped to China before 2018. Some were then mechanically recycled into Australian bollards, seats, roads, and walkways.
However, a crucial recycling route was destroyed by a fire in the middle of 2022 at Close the Loop's Melbourne facility, where soft plastics were processed to make an asphalt additive. REDcycle's suspension was mostly attributed to the fire and a "downturn in market demand" made worse by the COVID-19 pandemic.
While REDcycle claimed to have been holding onto the rubbish in an attempt to weather difficulties, Coles and
Woolworths stated in April 2023 that REDcycle had been storing soft plastics without their knowledge.
The Australian Competition and Consumer Commission established the ‘Soft Plastics Taskforce’ after 11,000 tonnes of stockpiled soft plastic were found at 44 storage locations across the nation. Its members, Coles, Woolworths, and Aldi, were assigned the responsibility of making sure the trash would not wind up in a landfill.
The task force published a roadmap to recommence the project in March 2023, outlining a phased restart of soft plastic collections in stores starting at the end of 2022. That deadline was not met. Nonetheless, the task force "consolidated and safeguarded" REDcycle's stocks, and in the upcoming months, it will conduct a small-scale trial collection of soft plastics. Just 120 tons have been recycled.
REDcycle continues its presence
Coles customers can still see the REDcycle emblem and
read information about the programme on the packaging of several branded items. Customers at Woolworths are urged to return such packages to the retailer. Cadbury, Kellogg's, and Uncle Tobys still display the REDcycle emblem on their packaging.
According to Guardian Australia, the two supermarkets mislabelled the product to keep it out of the landfill.
Packaging is frequently printed in bulk and utilised across items for months or years. Additionally, the supermarkets inform customers that REDcycle is no longer in operation through in-store messages.
There isn't currently an impartial body that verifies the veracity of recycling labels on packaging.
But Jeff Angel of the Boomerang Alliance environmental organisation said, "The current labels are too close to greenwash and too far away from independent tracking and verification processes."
Till then, customers will begin to see a "check locally"
In 2021, a prototype KitKat wrapper was tested on the Central Coast of New South Wales. It contained 30% recycled soft plastic from Licella, a company that turns spent plastics into oil that may be used to make foodgrade plastics. Australia has not yet seen widespread use of Licella
Australasian Recycling Label on their food, Woolworths says. In May 2024, more information on changes to state and federal packaging laws is anticipated.
How are soft plastics recycled?
It is physically impossible for the majority of Australia's sixty-odd material recovery facilities, which separate trash for recycling, to handle soft plastic since it is frequently severely polluted by food and composed of several different materials.
Residents of Randwick, Hornsby, and Bendigo can drop off soft plastics at recycling centres, and several councils in New South Wales, Victoria, and South Australia have implemented a pilot kerbside collection programme. The Curby programme is used by the councils of Tamworth, Newcastle, Central Coast, and
Mosman to collect soft plastics.
There aren't many options. Over 3,000 tonnes of soft plastics are used annually by Close the Loop's new Reservoir plant in Victoria to make its asphalt additive. Other mechanical recovery firms include Polyrok, Replas, Plastic Forests, and SaveBoard.
In 2021, a prototype KitKat wrapper was tested on the Central Coast of New South Wales. It contained 30% recycled soft plastic from Licella, a company that turns spent plastics into oil that may be used to make food-grade plastics. Australia has not yet seen widespread use of Licella.
While there are currently no developed methods for chemical recycling, plastic waste may eventually be eliminated by the use of fungi, algae, black fly larvae, and even edible plastics. The little end market for pricey but inferior recycled plastic is a
basic issue with the recycling business. Why purchase recycled plastic when the price of virgin plastic is linked to the low (and declining) price of oil?
Burning plastics to extract energy from their otherwise low-quality bulk is known as waste-to-energy treatment, and it has been operating for decades in Europe and is currently being developed in Australia.
If not, it ends up in trash dumps, which are currently the final destination for 93% of our soft plastics. According to Dr. Ben Madden, a senior research consultant at the University of Technology Sydney's Institute for Sustainable Futures, "Landfill is potentially a better place for plastics to go than using very energy-intensive processes as long as they don't leach chemicals into the groundwater."
“Plastics are inert. We could always use less plastic. The over $135 billion Australian grocery industry has the potential to spur innovation and advance the use of non-plastic packaging,” according to Dr. Tillmann Boehme, a circular economist at the University of Wollongong's business school. Supermarkets are among the most significant participants in the supply chain.
Under the national plastics recycling programme of the Australian Food and Grocery Council, food and grocery manufacturers will be required to pay a tax to recycle the soft plastics that they produce. The voluntary national packaging targets set forward by the government and industry for 2025 call for 100% recyclable, biodegradable, or reusable packaging; 70% of plastic packaging to be recycled; 50% of packaging to contain recycled materials; and the phase-out of single-use plastics.
The goal of the all-government national waste policy action plan is to phase out harmful and superfluous plastics by 2025 and reduce the amount of materials that end up in landfills by 80% by 2030.
Likely, packaging targets won't be met. To accomplish the goal of an 80% reduction
in the amount of materials going to landfills, state, federal, and municipal governments must increase their combined recycling rate from 40 million to 60 million tons in just six years.
According to Mike Ritchie, the managing director of MRA Consulting Group, no way can be accomplished without new or higher levies, subsidies, grants, mandates, or prohibitions.
Due to REDcycle's inadequate funding, Coles and Woolworths have contributed a total of $20 million to the programme over the previous ten years. The Albanese government committed $250 million to the recycling modernisation fund, including a $60 million increase for the recycling of soft plastics in July 2023.
Analysts project that the development of collection capacity may require $180 million in addition to $20 million in annual running expenses. However, that doesn't address the subsequent recycling.
"No one takes responsibility for plastics. Governments at all levels—federal, state, and local—as well as business, consumer, and environmental organisations all have an opinion, but it's a mess with no ownership," Boehme said.
Scientists estimate that even if governments were successful in gathering and processing every soft plastic that would only save 10% of all plastics from landfills. So that broader issue needs to be addressed, too. To put things in perspective, less than 1% of Australia's annual soft plastic usage was collected by REDcycle.
"We need to concentrate on the large waste streams and large solutions," Ritchie said. Market value of flexible plastic packaging worldwide from 2020 to 2023, with a forecast from 2024 to 2030 (In Billion US Dollars)
Real estate investors anticipate a more promising 2024, with the hopes around post-COVID recovery and the expectations of monetary policy easing likely resulting in some positive movements in the sector.
PwC sums up the current sentiment in the following words, "Real estate leaders are slowly becoming reconciled to a higher interest rate environment, while grappling with more fundamental challenges around the industry’s role in society, including making buildings fit for purpose in an uncertain future."
PwC's survey respondents (mostly the senior industry players); believe there is potential for renewed investment activity following greater clarity on monetary policy in the United States, Europe and Asia-Pacific. Translate things further, it means that the sector will see increased activity, with higher yields, an increase in prime rents, and repricing beginning to reset buyer and seller expectations.
Gauging the sentiment
A section of the analysts have the hope that buyers and sellers will accept a higher-for-longer interest rate environment and will therefore find the middle ground on pricing that has been so elusive over the past two years.
Most real estate sectors in Europe and the Middle East are predicted to see modest increases in investment activity or little change from 2023
China $90
United States $70
Japan
Germany
United Kingdom
France
Canada
South
Source: Savills Research
"With alignment on pricing comes the belief that real estate can recover from one of the worst investment downturns in years, although any upswing in activity is expected to be much more pronounced in 2025 than in 2024. But there is still a fair degree of caution in real estate, and diversification of risk by market and by sector will be critically important," PwC stated further.
While interacting with Global Business Outlook, Itzhak (Zahi) Ben-David, PhD Professor of Finance at the Ohio State University and the Neil Klatskin Chair in Finance and Real Estate at The Ohio State University Fisher College of Business, stated that economists generally think about global real estate market in 2024 with cautious optimism. However, the key issue is the high debt born by the commercial real estate sector and the weakness of offices.
According to Savills market report, around 52% expect prime office investment to rise in 2024, around 72% expect logistics rents to grow further, and around 85% expect capital values in the living sectors to increase next year.
The outlook for real estate around the world is getting better. Most real estate sectors in Europe and the Middle East are predicted to see modest increases in investment activity or little change from 2023. The majority of respondents do not anticipate a decline in activity, suggesting that the worst of the contractions brought on by interest rate increases is likely over.
The residential markets, especially the multifamily sector, where demand exceeds supply in many areas, are the ones with the greatest optimism regarding activity. Strengthened by solid foundations, the logistics real estate market appears poised for success in 2024.
For offices, however, the picture is more mixed, particularly outside the prime sector, where 16% of respondents in the report anticipate a drop in investment activity in the upcoming year. In general, 5%–10% of participants predict a significant increase in investment activity.
Meanwhile, according to Ben-David, economic conditions influenced the real estate market showing resilience.
"Economic conditions are showing resilience, with growth expected to be strongest in major Asia Pacific countries, especially India. The measures that central banks took against inflation are taking effect, with some expectations of interest rates peaking and potentially a soft landing. The real estate market is experiencing a mix of macroeconomic challenges, including inflation, recession risk, and geopolitical instability," Ben-David said.
According to Savills Research, yield corrections are anticipated to increase throughout sectors and regions in the upcoming year due to persistent differences between seller and buyer expectations.
In many major global cities, respondents anticipate an increase in the yields from the prime office sector. But after these modifications, yields should progressively stabilise because interest rates have peaked and the outlook for investment activity is more favourable.
Except for Dubai, Singapore, and Tokyo, which continue to provide investors with strong cash-on-cash returns, an increase in yields is also anticipated in all US, Asian, and European logistics and manufacturing hubs.
Moreover, technology will help investors and the real estate landscape to adapt to these changes in 2024. But there will be challenges ahead, according to Ben-David.
"Technology, especially AI, is reshaping the global real estate landscape by enhancing efficiency in operations such as marketing and leasing. But it doesn't always work well, see Zillow attempt to purchase homes based on their own valuation model," he stated further.
Talking about real estate, market situations and technology affecting it; we have the example called Europe, where the rise of disruptive forces like AI, backed
by solid growth in hospitality-related sectors, are poised to drive the continent's commercial real estate market in the coming days. However, on the ground, the housing market faces the test to get back on its feet, amid the soaring rental market.
European real estate investment is at a decade-low, and while analysts betting 2024 to be the year of turnaround for the sector, borrowing costs need to shrink and the economies across the region need to rebound. And last but not the least, the interest rate needs to cool down. The last scenario is important, as the European real estate sector largely relies on borrowing.
Deloitte sees the property sector as being close to "getting back on solid ground." In its global outlook for 2024, the accounting firm surveyed sector leaders and concluded that "the coming 12 to 18 months are expected to be important as real estate firms reposition themselves."
However, as per Deloitte, two-thirds of the European industry leaders are expecting revenues to fall, which in return will warrant situations like cost cutting. Another priority will be to meet environmental, social, and governance (ESG) regulations, and modernise technological capabilities to prepare for the changing conditions and demands in the market.
Despite the challenges in the sector, prime offices remain the top pick for core and core plus strategies, especially across the Asia Pacific region, closely followed by prime logistics in most markets.
The residential sectors in cities, where supply cannot keep up with the growing demand for rental accommodation, as well as the premium hotel and retail sectors in popular tourist destinations in Southern Europe, Singapore, and Australia, offer substantial opportunities.
Office or retail space with the potential to be repositioned or retrofitted for higher rental returns is a key component of value-add strategies. Repositioning offices in desirable locations in the Netherlands, Spain, Japan, South Korea, Australia, France, and Germany, as well as retail spaces in southern Europe and Asia, offer substantial opportunities for value addition.
Properties with development and repurposing potential may be of interest to investors seeking more opportunistic investments. This could entail renovating outdated shopping malls or turning offices into residential and hospitality spaces. The significant investment potential of smaller and less liquid sectors like data centres, life
European real estate investment is at a decade-low, and while analysts betting 2024 to be the year of turnaround for the sector, borrowing costs need to shrink and the economies across the region need to rebound. And last but not the least, the interest rate needs to cool down
"Commercial real estate, especially offices, suffers a lot these days. It will be interesting to observe how this evolves in 2024. The major issues are the higher interest rate, loans that are becoming due and low demand for office space due to workfrom-home trends"
- Ben-David
sciences, and education is supported by strong drivers of demand and constrained supply.
The total value of all property in the world was $379.7 trillion, by the end of 2022. Despite being 2.8% lower than 2021, the longer-term trend indicates that property continues to be a significant store of wealth globally, rising by 18.7% over the previous three years.
Real estate is nearly four times the size of the global GDP and has a value greater than the combined value of the global bond and equity markets. In contrast, the value of all the gold that has ever been extracted, $12.2 trillion, is meagre and represents just over 3% of the value of all real estate on the planet.
Residential property will account for slightly more than three-quarters of the total real estate value, or $287.6 trillion, by the end of 2024. Around 11% is made up of agricultural land, and the remaining 13% is made up of commercial property.
The past year turned out to be a year of contrasts. Before rising interest rates and escalating economic uncertainty dampened global residential and commercial markets, valuations held up in the first half of 2023.
This trend has persisted into 2024.
In 2023, residential real estate experienced a 1% decline; however, over three years, from 2019 to 2022, its growth rate of 21% was second only to that of gold. During this time, ultra-low interest rates and the emphasis on the home during the lockdowns related to the COVID pandemic helped to boost residential values.
Despite a slight decline of 1.8% in 2022 due to weaker conditions in the second half of the year, commercial real estate saw a 14.4% increase over the three years. This was primarily brought about by the government stimulus and low interest rate environment, which encouraged investors to put more money into real estate.
In 2023, agricultural land decreased by 11.4% on an annual basis, but increased by 8.8% over a three-year period. Values of agricultural land were negatively impacted by the pandemic in 2020, but they sharply recovered in 2021 before faltering in 2022. According to Ben-David, the bond and equity markets suffered along with a decline in real estate values. Equities experienced a 20.3% year-over-year decline, while debt securities shrank by 3.2%. "Commercial real estate, especially offices, suffers a lot these days. It will be interesting to observe how this evolves
in 2024. The major issues are the higher interest rate, loans that are becoming due and low demand for office space due to work-from-home trends," Ben-David said.
According to Ben-David, the built environment is greatly influenced by the real estate sector, which also has a major effect on the surrounding natural area. Growing awareness of how real estate development affects the environment and a move toward sustainable practices has been observed in recent years.
"ESG-related considerations become an important factor influencing decisionmaking, e.g., retrofitting or repurposing buildings. The shift is not just about compliance; it's about understanding the value ESG investment adds to real estate assets," he added.
In an article, Junaid Kanth, Vice President of Valuation and Strategic Initiatives stated that a major worldwide issue that has an immediate impact on the real estate sector is climate change. Properties situated in susceptible regions are at risk from rising sea levels, extreme weather, and shifting weather patterns. Climate resilience is becoming more and more important to real estate developers and investors when making decisions. Property values and investment decisions are increasingly heavily influenced by variables like flood zones, storm surge risks, and long-term climate projections.
In real estate development, energy performance evaluations, building codes, and certifications like LEED (Leadership in Energy and Environmental Design) have become crucial factors. Energy-efficient buildings are more appealing to investors and tenants because they not only lower carbon emissions but also save residents money by lowering their energy bills.
Real estate projects are also integrating waste reduction techniques, rainwater harvesting, recycling systems, and water-saving technologies to reduce their environmental impact. These actions
not only help the environment but also save money and make properties more appealing to buyers.
According to Junaid Kanth, sustainable and ecologically conscious real estate is in greater demand. Sustainable practices and environmentally friendly features are becoming more and more sought after by investors, tenants, and homebuyers. Properties that are close to green areas, have green certifications, are easily accessible by public transportation, and have energy-efficient designs tend to command higher market values and draw in a wider pool of prospective tenants and buyers.
Also, the real estate industry is experiencing a significant surge in sustainability due in large part to government regulations and policies. Energy efficiency guidelines, building codes, and incentives for sustainable development have been implemented by numerous jurisdictions. These rules incentivise developers to use sustainable building methods and support ecologically friendly practices. Keeping up with regional laws and taking advantage of incentives can provide you with a market edge.
"In order to ensure the real estate industry survives into the future, it is imperative that the environment be managed sustainably. The way real estate projects are planned, developed, and marketed is being influenced by a number of factors, including market demand, energy efficiency, biodiversity preservation, resource conservation, and climate change. Adopting sustainable practices helps to meet the changing needs of investors, tenants, and buyers while also having a positive economic impact and reducing environmental impact. The real estate sector can help create a more resilient, sustainable, and greener future by emphasising sustainability," Junaid Kanth concluded.
Climate resilience is becoming more and more important to real estate developers and investors when making decisions. Property values and investment decisions are increasingly heavily influenced by variables like flood zones, storm surge risks, and longterm climate projections
Silicon Valley
Analysis
GBO Correspondent
There is a reverse migration underway from Silicon Valley and regions like Miami and Austin are gaining from the trend
Alex Valaitis, as a computer science student in the United States, idolised Silicon Valley, as narrated by an April 2023 report by The Washington Post. However, after working in his dream arena for five years, Valaitis left San Francisco in 2021 and made Austin, the state capital of Texas, his new base. He now runs a Web3 product studio and a newsletter about artificial intelligence.
"Silicon Valley has reigned for decades as America’s innovation capital, home to tech giants like Apple, Google and Facebook; unicorns like Uber, DoorDash and Instacart; and start-ups fuelled by the venture capitalists that populate Sand Hill Road. But the region’s dominance has declined since the pandemic, as lenient remote work policies and a spate of layoffs have fuelled the departures of workers and cleared the way for rising investment in other tech hubs across the United States, notably Austin and Miami," the Washington Post commented further.
Is the iconic 'Silicon Valley' losing its status as the hub of innovation in the United States? Is there a reverse migration happening? We will shed a light on the topic.
Alternative tech hubs rising Silicon Valley still ranked first in 2022 in terms of venture capital investments and the number of deals, as per the PitchBook data. However, funding for companies based in Miami has nearly quadrupled since 2020, totalling $5.39 billion in 2022, while deal volume jumped 81%.
Also, venture capital (VC) investments in Austin rose 77% to $4.95 billion with the number of deals jumping 23%. New York, Seattle, Philadelphia, Chicago, Denver and Houston also witnessed relatively large increases in VC investment and deals.
However, these regions are still far from matching Silicon Valley, which in 2022 drew $74.9 billion in investments across 3,206 VC deals.
Despite the 2022 dominance, Silicon Valley’s share of the total value of venture capital investments in the United States was at its lowest since 2012. And nearly 250,000 people left the Silicon Valley region during the COVID-19 pandemic, according to census data from April 1, 2020, to July 1, 2022.
There is a reverse migration underway from Silicon Valley and regions like Miami and Austin are gaining from the trend. As per PitchBook, while cryptocurrency and Web3 are the major drivers of Miami’s growth, Seattle has benefited from the presence of Amazon and Microsoft in its jurisdiction.
Brianne Kimmel, founder of investment firm Worklife Ventures, noted the 'change' in Silicon Valley, with tech workers moving out of San Francisco to other places like Austin or Seattle.
“That’s really created room for young, very technical, traditional hacker types to come to San Francisco. It’s giving the city a personality it may have lost in years prior,” she said.
To justify her stance, Kimmel pointed to 'Cerebral Valley,' an area in San Francisco's Hayes Valley neighbourhood where AI-based start-ups are popping up.
As per the investment firm Index Ventures, tech workers looking for the 'quintessential start-up experience' are still arriving at Silicon Valley, but the number is less, since the ecosystem has been decentralising itself across other American cities.
While Seattle is producing start-ups focused on cloud infrastructure and developer tools, New York is also becoming a hotbed for AI, noted Bryan Offutt, partner at Index Ventures focused on investments in software infrastructure and AI.
“Five years ago, 90% of companies would’ve been founded in San Francisco. Now it might be more like 70%, with others starting in places like Seattle and New York," he remarked.
Backing Offutt, Erin Price-Wright, an Index partner focused on AI and machine learning investments, told The Washington Post that once these start-ups mature, they will find it useful to look for workers outside Silicon Valley as it widens the pool of prospective hires.
Atli Thorkelsson, vice-president of talent network at Redpoint Ventures, pointed out that Austin has grown as a hub for marketing, sales and customer teams for tech companies, while New York is capitalising on a mixed base of talent including those in financial tech, health tech and insurance tech.
As per a January 2024 report from the job and internship platform 'Handshake', Columbia, Maryland, Boise, Idaho and Fairfax topped the list of places trending among college students and graduates with tech-related majors.
Handshake also found the number of applications submitted to tech jobs in California, Washington, and New York declining significantly in 2023. To be precise, the number of job applications in
these cities dropped by over 30% between 2021 and 2023.
Also, cities like Columbia, Maryland and Boise "tend to be more affordable, having less stressful commutes, and starting to feature many of the elements people enjoy in larger coastal cities," as per Christine Cruzvergara, Handshake's chief education strategy officer.
However, some of the Gen Next tech workers told The Washington Post about the edge Silicon Valley provides, in terms of building companies and securing funding.
For Kai Koerber, founder of start-up Koer A.I., Silicon Valley is still the place to be as he works on building his company. However, after he’s done with some portions of the groundwork, the 22-year-old hopes to join his tech peers in New York.
Airbnb, which was one of the first tech companies to allow permanent remote work, saw some of its workers moving out of Silicon Valley.
Sofia Ruehle and Ian Demattei-Selby were two such professionals who relocated to Washington. They dubbed the idea as a diversification effort that allows the companies and workers to learn and exchange ideas from different regions.
Rori Jones, Airbnb’s diversity and belonging business partner, who moved to Denver during the COVID period, said in 2023 that six of her Silicon Valley friends joined her since she left.
Boise, which was once among the most isolated American cities, has now become home to a growing tech boom. Semiconductor giant Micron is building a $15 billion manufacturing facility here, and two home-grown companies Kount and TSheets have been acquired by Equifax and Intuit in 2021 and 2017 respectively.
Boise’s population has grown to 235,000, up 30,000 since 2010. Boise's advantage is its affordable living costs, along with a blend of nature, city life, and work-life balance, which are all drawing tech workers towards the city. Source: Handshake
Some of the Boise boom will be driven by Micron. As the semiconductor giant expands further its operations in the city, it will create 17,000 jobs by 2030, predicts Scott Gatzemeier, Micron’s corporate vicepresident of frontend US expansion.
Clark Krause, executive director of the Boise Valley Economic Partnership, also spotted the presence of a start-up and entrepreneurial culture, which is driving Boise's growth further.
Krause feels that Boise is becoming like Nashville or Austin two or three decades ago. Also, a one-bedroom apartment rents for an average of $1,300 a month, scoring high on the affordability Quotient.
However, Boise is feeling the ‘Migration Strain’ as well. Housing prices in the city have jumped by over 50% since 2019.
"The city is investing $340 million to make its downtown more walkable, and also announced plans to redevelop hundreds of affordable housing units last year. But it
will need to build around 2,700 new housing units each year to keep up with demand, a 2021 analysis from the city found. Construction in Boise fell some 4,000 units behind that goal over a three-year period preceding the report," WIRED noted.
Christine Cruzvergara, chief education strategy officer at Handshake, said, “When you’re thinking about stability, and then you see headlines about layoffs, that doesn’t read stability."
The fact remains that recent graduates and established techies are moving to affordable, non-coastal America as they don't want to suffer under loan debt and rising housing costs.
“As long as housing continues to skyrocket in some of the major cities, some of these secondary cities that are a little bit smaller, a little bit more manageable, will continue to see a bit of an increase in the number of young professionals that are willing to go there,” Christine concluded.
Boise’s population has grown to 235,000, up 30,000 since 2010. Boise's advantage is its affordable living costs, along with a blend of nature, city life, and work-life balance, which are all drawing tech workers towards the city. Some of the Boise boom will be driven by Micron
Feature
One could conclude that the cryptocurrency industry is a highly unscrupulous venture based on a review of headlines from the previous few years.
Swindlers stole billions more from hackers than from legitimate businesses. A few of the biggest cryptocurrency exchanges were sued by regulators. Several well-known companies declared bankruptcy. The collapse of cryptocurrency banks, a disastrous experiment, was the result of risk. Founders were convicted of forgery. At God's command, a Colorado pastor even claimed he was charged with running a million-dollar scam.
By extension, claims that blockchain technology—which powers cryptocurrencies—can transform social networking and gaming, fund the arts, or create innovative new forms of organisation appear dubious. It's getting harder for proponents of blockchain technology to convince lawmakers and regulators of its benefits as time runs out. Chris Dixon, the chief cryptocurrency investor at Andreessen Horowitz, or a16z, a venture capital firm based in Silicon Valley, asks everyone to accept blockchain technology one more time.
Dixon contends that blockchain technology is ethically neutral in his most recent book, 'Read Write Own: Building The Next Era of the Internet,' despite all the drama, frauds, and lost fortunes. According to him, to prevent wasting the technology's potential advantages, regulators must distinguish between risky misapplication and fruitful experimentation.
Many nations are moving forward with comprehensive regulations tailored to the cryptocurrency space
Biggest cryptocurrency in the world - based on market capitalisation (Market cap in billion US Dollars)
Source: Statista
"Please don't discard the book; it is a self-serving warning against being overly cautious," Dixon said in an interview with WIRED.
Dixon describes a rift in the crypto industry's culture. He refers to one group as the "crypto casino," which is made up primarily of con artists and money launderers and is only interested in financial speculation. The other faction believes that blockchain is not just a form of accounting ledger, but a new computing platform that opens up horizons far grander than just new forms of financial trading.
"So far, the first faction is winning. The attention-grabbing behaviour of the global crypto casino, threatens to suffocate both the technology’s development and enthusiasm for its potential. The casino is the flashier story. Its fortunes won and lost. It's a scandal. The productive side is slower-moving. It is crowded out with all the noise," he said.
According to Dixon, who has sold start-ups to eBay and McAfee and worked in internet software for 25 years, new technologies usually evolve in fits and starts over several decades. Then
a breakthrough occurs, something like an iPhone or ChatGPT moment, which establishes the new product's indisputable value. Blockchain, in Dixon's opinion, is still in the early stages of development.
He asserts that the negative perception of the cryptocurrency space cannot be ignored by business owners, as it influences lawmakers to consider more stringent regulations. As it stands, strict regulations will be implemented "very, very quickly," he claims. Dixon contends that this should worry the general public as well as cryptocurrency enthusiasts.
Although blockchains take many different shapes, they are essentially public information records that are hosted and updated by many individuals rather than by a single entity. To ensure the project's overall trustworthiness, entries are added and confirmed through frequent crosschecks, a process that is motivated by rewards in cryptocurrency tokens. With crowdsourced governance provided by a voting system, blockchains can also support software applications that follow predefined rules and use its entries as a kind of backbone.
According to Dixon, society is more in need of this technology than its employer, which is trying to find a way to recoup billions of dollars invested in four different cryptocurrency funds. Dixon argues that profit-hungry monopolists are strangling the internet and that users are suffering as a result. However, blockchain technology has the potential to wrest some control away from the biggest tech companies in the world and bring the internet back to its original egalitarian roots.
The following thesis is explored in the book: Initially, the internet was accessible but constrained. Private businesses made the web more interactive and prospered financially from it, but this also made it more difficult for users to switch networks and for rivals to enter the market. Big Tech's consolidation of power sparked a trend known as "enshittification," in which
businesses prioritise boosting profits over user interests and reducing the amount of money they share with content creators.
According to Dixon, creating internet platforms based on blockchain technology, which upholds predetermined regulations that can only be altered by popular vote, has the potential to "reverse the trend toward internet consolidation and restore communities to their rightful place as stewards of the future." It may sound abstract, he admits, but since the internet is "where we live our lives more and more these days," it matters who gets to establish the guidelines.
It is possible that less personal information would be collected, fewer creators would face shadow banning, content feeds would contain fewer advertisements, and product searches would return the most relevant results rather than the most lucrative ones, and so on if everyone had a voice.
Naturally, the prospect of blockchain potentially breaking the hold of established tech companies offers a new opportunity for a venture capital firm such as a16z. There is a better chance of making the next internet start-up successful now that a path has been cleared for new rivals. As Dixon
puts it, “keeping the internet open” equates to “smart capitalism,” which benefits all parties involved by encouraging experimentation that results in new, useful technology.
However, in reality, efforts to provide a blockchain-based internet have encountered their own difficulties. Consider decentralised autonomous organisations. Dixon suggests token-based voting structures that would allow users to veto changes made to internet platforms, thereby enabling them to "share in control." DAOs are ineffective and unduly bureaucratic, functioning as democracies only in theory since the concept was tested in 2016.
In reality, the decentralised model's goal is undermined when participants can't agree on which changes to suggest, don't show up to vote, or heedlessly follow one another's lead. When voter turnout is low, it becomes easier for a single party to accumulate enough voting credits to turn democracy into a plutocracy. Large quantities of voting tokens in several blockchain projects are held by a16z itself. Dixon's argument is further undermined by the unsatisfactory usability of blockchain-based software. According
According to Dixon, creating internet platforms based on blockchain technology, which upholds predetermined regulations that can only be altered by popular vote, has the potential to "reverse the trend toward internet consolidation and restore communities to their rightful place as stewards of the future"
"Blockchain is messy and imperfect, but the alternative is worse. We are going to have an internet that is siloed off. That is a depressing, dystopian outcome, and we are heading to it quickly. I think people should care"
- Dixon
to him, technology could make it possible for social media platforms and the content creators who use them to split profits more fairly by granting the creators the ability to see and reject changes that would negatively impact their relationship.
On the other hand, as individuals such as Moxie Marlinspike, the developer of the secure messaging app Signal, have contended, the inefficiencies of blockchain technology may actually encourage individuals to turn to new, simpler middlemen, thereby displacing the previous, profit-driven gatekeepers.
Dixon acknowledges these shortcomings and more in his book. But he insists that the emergence of even an unpolished alternative for governing internet platforms is a step forward.
"Blockchain is messy and imperfect, but the alternative is worse. We are going to have an internet that is siloed off. That is a depressing, dystopian outcome, and we are heading to it quickly. I think people should care," he said.
Internet reboot
Dixon differs from a16z founder Marc Andreessen in that he frames his argument for blockchain in terms of the dangers of the status quo rather than just the technology's advantages.
In "The Techno-Optimist Manifesto," an essay that was published in October 2023, Andreessen claimed that "technology is the glory of human ambition" and that people who oppose it are involved in a "mass demoralisation campaign" that is based on antiquated socialist theories.
Some technologists praised the manifesto as a "breath of fresh air," but other publications, such as The New York Times, Financial Times, and WIRED, criticised it as being overly dramatic, narrow-minded, and even harmful.
According to Dixon, there is a lot of agreement between him and Andreessen on the idea that "building, rather than being afraid of technology, can solve a lot of our problems." He spares a few jabs in the book for the "establishment" and its "myopic" dismissal of blockchain technology.
He also takes aim at the media, accusing it of engaging in a "disingenuous form of criticism" by "cherry-picking the worst examples of an emerging technology."
Whereas Andreessen is uncompromising, Dixon allows for some scepticism: he claims that the internet has been "hijacked" and that blockchain technology may offer the most effective means of "building our way out of it."
Dixon argues that there is a threat to blockchain's potential to play the role he suggests, which is to help rebalance the economic relationship between internet users, creators, and service providers. The casino mentality of the crypto industry is to blame. Dixon claims that the excesses of the casino culture have sparked a backlash, including potentially harmful responses from lawmakers and regulators.
Many nations are moving forward with comprehensive regulations tailored to the cryptocurrency space. One such example is the European Union, whose historic Markets in Crypto Assets (MiCA) law is set
to go into effect in December 2023.
The United States is lagging somewhat behind, with only narrow bills having been proposed in Congress to date. The Securities and Exchange Commission and the Commodities and Futures Trading Commission, two US financial regulators, are battling it out over jurisdiction over cryptocurrencies in the absence of a new policy.
As a result, there is a great deal of ambiguity regarding the laws that crypto companies must abide by and the legal classification of tokens based on blockchain in the US.
Dixon claims that while he fears the regulators' clumsy execution, he agrees with them on certain points. "Slowing down the casino would be the best course of action,” according to him, the current strategy is having the opposite effect, with genuine business owners being reluctant to develop new products while con artists are largely going unpunished.
Dixon worries that recent high-profile cryptocurrency mishaps, such as the demise of cryptocurrency exchange FTX and its founder Sam Bankman-Fried, will prompt US lawmakers to believe that further stringent legislation is necessary in the future.
Dixon states that he doesn't anticipate that everyone who reads Read Write Own will become enamoured with the fantastical blockchain concept. However, he hopes they understand that going overboard with regulations could stifle innovative ideas that could revitalise the internet and everything that has been built on it— basically everything.
"This is a critical moment. I don’t think we can wait much longer to think about designs that could return us to the original promise of the internet. Something has to be done, right?" Dixon said.
Dixon even believes that in terms of the crypto industry's growth, the United Kingdom may get an edge over the United States very soon.
While the value of crypto deals globally plummeted over 67% in 2023, according to the capital market giant PitchBook. However, the European Union saw the passing of its 'Markets in Crypto-Assets' law (MiCA) last year, which will help the continent to regulate the virtual currency.
Also, the United Kingdom government plans to create similar legislation in 2024.
For the analysts (including Dixon), these laws will be positioning Europe as a bigger hotspot for start-ups in the coming months. It is worth pointing out that Andreessen Horowitz will be opening its first office outside of the United States in London.
The Silicon Valley venture capital firm is looking to take advantage of what it sees as a more welcoming environment for crypto entrepreneurs in the United Kingdom.
"The prime minister’s leadership is critical, but we have seen a wonderful openness to the promise of the technology across parties, as well as a strong interest in whatever regulatory regime comes online that focuses on consumer protection and fostering innovation,” Brian Quintenz, head of policy at a16z Crypto, Andreessen Horowitz’s crypto arm, told CNBC in 2023.
“Frankly, I don’t think this current administration in United States is doing either — it’s a moment in a time when the UK acts nimbly and quickly, but robustly,” the official continued further.
"There's a little [regulatory] uncertainty still, both in the EU and in the UK. We've been having conversations with policymakers, and they've been productive and we're optimistic, but there's still a lot of grey area. That grey area ambiguity is a big problem, because good entrepreneurs have been terrified; they don't want to enter a space where there's some possibility that they get sued," Dixon told Sifted in February 2024, while shedding light upon Europe emerging as the next crypto hub.
Dixon worries that recent high-profile cryptocurrency mishaps, such as the demise of cryptocurrency exchange FTX and its founder Sam BankmanFried, will prompt US lawmakers to believe that further stringent legislation is necessary in the future
The Conservatives have clung to the promise as a main point of attack, arguing that Labour Party would need to increase taxes to pay for its unfunded spending spree
In 2021, the United Kingdom's Labour Party promised to spend £28 billion annually, if elected in the 2024 General Elections, on a "Green Prosperity Plan" to accelerate the European nation's shift to a low-carbon economy. This plan would have met legally mandated climate targets while enhancing energy security, reducing household expenses, warming homes, and promoting industrial innovation. At the time, Keir Starmer, the leader of the party, claimed that the funds would promote green growth and jobs and re-establish the United Kingdom in the global low-carbon race.
However, if elected this year, the UK Labour Party intends to drop its £28 billion plan for green
investments to less than £15 billion. The party's financial credibility and Starmer's apparent penchant for U-turns have been the main targets of the political consequences.
A significant home-insulation plan to renovate 72%, or 19 million dwellings, of the UK's housing stock was part of the original pledge. However, the vaguer claim that "millions of homes" will be renovated takes the place of that lofty goal in the updated plan.
Long-standing research has demonstrated the negative health effects of uninsulated dwellings, particularly for individuals who are impoverished and reside in subpar housing. Thus, an already overburdened health service is further burdened.
Source: Statista
Why was the plan contentious?
Tens of billions of dollars will be required to revitalise the industrial sector in the United Kingdom and move the nation toward reduced carbon emissions. Former UK CEO of Siemens, Juergen Maier, who currently advises the Labour Party, stated that £28 billion was "the absolute minimum" needed. The party did not provide specific plans for how all the money would be used, but in general, it would have gone toward increasing the production of renewable energy to turn the UK into a "clean energy superpower" and decarbonise domestic power by 2030; insulating homes; enhancing transportation infrastructure; encouraging the growth of low-carbon industries; and supporting the transition of currently fossil fuel-dependent industries to net zero.
The Conservatives have clung to the promise as a main point of attack, arguing that Labour would need to increase taxes to pay for its "unfunded spending spree." Many economists and business experts contend that the money should be viewed as an investment rather than a cost and that it will boost stagnating productivity and growth.
According to a recent study by the London School of Economics, public investment of £26 billion annually would soon pay for itself in the form of jobs and growth, as well as create private sector investment of around twice as much. Contrarily, tax cuts would have less of an impact because underinvestment and inadequate infrastructure are the primary factors limiting the UK economy, according to analysts.
What do Conservatives propose instead?
Ministers contend that their strategies, which entail establishing "roadmaps" or targets for cutting emissions from specific industries while using very little in the way of public funds, are already showing results.
According to the government, since 2010, the private sector has contributed £200 billion to the low-carbon economy. Since September 2023, an additional £30 billion has been announced, primarily for offshore wind.
The United States is investing $369 billion in low-carbon initiatives, such as industry, electric vehicles, and renewable energy, under President Joe Biden's Inflation Reduction Act. Through its Green Deal initiative and from member states like France and Germany, which are making significant investments in green industries, the European Union also plans to attract hundreds of billions of dollars in investment.
China, on the other hand, invested an estimated $140 billion in wind energy in 2023 and installed more solar panels than the US has ever done. India is also progressing quickly in the field of renewables as its investments are expected to rise by over 80% in 2024.
Party figures like Pat McFadden and campaigns director Morgan McSweeney were wary about committing significant sums of money. The investment's goals are supported by shadow chancellor Rachel Reeves, who is not as devoted to the £28 billion figure.
Prominent shadow ministers like Jonathan Reynolds, commerce secretary, David Lammy, and Steve Reed, foreign secretary, have made a point of bringing up the £28 billion in public appearances, demonstrating their support. Additionally, Starmer has regularly supported the amount.
He told the Guardian, "There has never been any wavering from us, the £28 billion is an important part of the investment towards (clean power)."
Many in the party contend that turning back on such a significant tenet of the party's strategy would be perceived as
giving in to Tory pressure and allow Starmer to be painted as weak and vacillating. The £28 billion plan is Labour's primary response to the issue of how to grow the economy, bolster deteriorating public infrastructure, and meet net zero.
What do businesses and voters think?
According to the most thorough survey, conducted by “More in Common,” Labour’s climate pledge was endorsed by a resounding majority of voters. People consistently expressed a preference for public investment over tax cuts, and Starmer received stronger support on the issue.
The effects of over ten years of underfunding the UK's infrastructure are now easily seen, ranging from potholed roads to deteriorating schools and the creaking rail system. Businesses are begging for investment as the shortcomings of the UK's built environment, energy, and transportation systems become more and more obvious every day.
The country needs to address its productivity issues. The Institute of Directors has urged for the UK to adopt "its own version of the Inflation Reduction Act," while the CBI (Confederation of British Industry) has advocated for increased investment.
A poll Yonder performed recently indicated that the British public was not only unhappy with Labour's reversal of climate policy, but they also strongly wanted more action to be taken to address the problem of littering.
To encourage recycling and cut down on waste, the study found that twothirds of participants were in favour of the implementation of a Deposit Return Scheme (DRS) for aluminium cans and plastic and glass bottles.
“The public is unquestionably in favour of continuing aggressive action to
invest in the future of our world and of taking decisive action to assist us realise our net-zero aspirations,” according to Dominic Dyer, chair of Nature 2030 and environmental campaigner.
"There's also a strong desire to implement a comprehensive DRS to eradicate the filth that plagues our countryside and high streets. Labour needs to immediately lay out a plan to address the climate problem and build a sustainable, circular economy. A short-term economic downturn does not justify a lack of long-term commitment to environmental protection," he added.
To encourage recycling and cut down on waste, the study found that two-thirds of participants were in favour of the implementation of a Deposit Return Scheme (DRS) for aluminium cans and plastic and glass bottles
United Trans, a mobility solutions provider and a subsidiary of Alserkal Group of Companies, has been acquired by Easy Lease Motorcycle Rental
PJSC, an Abu Dhabi-based fleet operator listed on the ADX, for 60% of its equity.
Easy Lease stated in a statement that the acquisition creates "new avenues for growth domestically and internationally. Through the acquisition of a majority stake in United Trans, EasyLease seeks to establish synergies as well as build combined expertise to deliver enhanced mobility solutions to customers across the GCC and the broader MENA region."
According to Ahmad Al Sadah, CEO of EasyLease, "At its core this partnership has set the stage for further strategic growth opportunities, paving the way for expansion and innovation in the transportation industry.”
The transaction's value was not disclosed.
The UAE conglomerate International Holding Company (IHC) owns Easy Lease as a subsidiary. It purchased a 60% share in Ripe, a company that provides a variety of services such as food trucks and commercial kiosk rentals, in late 2023.
Previous to that, it purchased a 60% share in Fully Charged, an EV charging solutions provider based in the United Arab Emirates.
Aramco, the state oil producer of Saudi Arabia, and Sonatrach, the oil company of Algeria, lowered the official selling prices (OSPs) for liquefied petroleum gas (LPG) in April by 0.9%–3.1% compared to March 2024, due to lower demand, according to traders.
While Aramco's butane OSP dropped by $20 to $620 per ton, its propane OSP dropped by $15 to $615 per metric ton.
Propane and butane are different types of LPG with different boiling points. The main uses for LPG include heating, driving,
The UAE conglomerate International Holding Company (IHC) owns Easy Lease as a subsidiary
and as a feedstock for other petrochemicals.
Sonatrach reduced its April OSP for butane to $570 per ton and for propane to $535 per ton.
Contracts to supply LPG to the Asia-Pacific region from the Middle East are based on Aramco's OSPs. The OSPs from Sonatrach are used as comparison points for Turkey, the Black Sea, and the Mediterranean.
Meanwhile, to greatly expand its Fadhili Gas Plant in Saudi Arabia's Eastern Province, Aramco has announced the awarding of engineering, procurement, and construction (EPC) contracts totalling $7.7 billion.
The goal of this massive project is to increase the plant's processing capacity from 2.5 billion standard cubic feet per day (bscfd) to 4 bscfd.
According to a tender held by the General Food Security Authority (GFSA), Saudi Arabia purchased 795,000 metric tons of wheat. The shipments are anticipated to arrive in the Gulf nation in June/July of 2024.
Wheat that contained 12.5% protein was being sought after to arrive in several Saudi ports. The purchase amount exceeded the tender's requested 595,000 tons.
GFSA governor Ahmad AlFares said in a statement that the origins offered were the European Union, Black Sea region, North America, South America, and Australia, with the seller having the option to select the origin supplied.
It is the first wheat tender issued this year by the
GFSA. Its last wheat tender was reported on December 18, 2023 and involved the purchase of 1,353,000 tons.
Meanwhile, European traders reported that, as tensions between the two countries escalate diplomatically, Saudi Arabia's main state wheat buying agency has informed grains exporters it will no longer buy Canadian wheat and barley in its international tenders.
Merchants claimed to have received formal notification regarding the Saudi Grains Organisation's (SAGO) decision.
In the last purchase of 625,000 tonnes of wheat in an international tender, Canada was seen as a possible supplier.
The Vietnamese Block B gas field will be developed, according to a final investment decision made by the Japanese trading house Mitsui and Co. The company will pay roughly $740 million of the development's costs.
The project will consist of a pipeline connecting a gas field to a gas-fired thermal power plant, situated 330 km (205 miles) off the southwest coast of Vietnam.
Through its subsidiary Mitsui Oil Exploration, Mitsui is funding the project (MOECO). Vietnam Oil and Gas Group (PVN), a state-owned oil and gas company, PetroVietnam Exploration Production Corp, PetroVietnam Gas Joint Stock Corp, and PTT Exploration and Production Public Company, a company in Thailand, are its partners.
According to a statement from Mitsui, the field has an estimated 490 million cubic feet of gas production capacity per day, with output expected to begin by the end of 2026.
Additionally, a midstream development for gas transportation will be part of the project.
According to the release, two joint ventures of MOECO and the Japan Organisation for Metals and Energy Security (JOGMEC) own a 23% interest in the gas field, and another MOECO subsidiary owns a 15% interest in the proposed pipeline.
Beyond just helping you get a loan, a business plan gives your company direction and strategic emphasis
A business plan is a written document that outlines the goals of an organisation and how those goals will be attained. It includes an operational, financial, and marketing roadmap for the business. All sorts of enterprises, from big, established firms to tiny start-ups, employ business plans, some of which are more extensive than others.
Your lender can request to view your business plan if you're seeking a business loan. Your strategy can demonstrate your comprehension of your target market, your business model, and your level of goal-setting realism. Writing a business plan can increase your chances of obtaining funding, even if you don't need one to apply for one.
A well-written company strategy offers various benefits from an operational standpoint. A well-crafted plan will outline the risks and uncertainties that a business may face as it progresses and will also explain how the organisation will grow over time.
A business plan serves as an invaluable strategic roadmap that helps leaders stay focused on their long-term objectives in the daily bustle of the firm. It also enables companies to assess their performance; in the absence of a strategy, it can be challenging to ascertain whether an enterprise is headed on the right path.
A business plan is helpful when interacting with outside groups as well. In fact, before deciding whether to grant funding to start-up companies, banks and venture capital organisations frequently need a strong business plan.
Every company is unique, and the same is true of every business plan. However, the majority of company plans have several
generic elements. Typical elements include the management team, executive summary, business overview, products and services, market analysis, marketing and sales plan, and operational plan. Financial statements and a funding request should be included with your loan application.
The executive summary comes first. In addition to providing an overview of the content in the remainder of your business plan, the executive summary is where you may spark interest in your venture.
Basic details about your company, such as what you do, where you're based, what items you offer, and how long you've been in operation, should be included. You can also discuss the factors that led you to launch your company, your biggest achievements to date, and your expansion goals.
Then there is the company overview. In this section, highlight your company's key competencies, the issue you hope to resolve, and your strategy for doing so.
Here, you should also highlight any significant advantages your company has over rivals, such as entering a
new market or taking a novel approach to an already-existing one. In this part, you should also mention important figures like your annual turnover and workforce size.
In the products and services area, give a brief description of your offerings. A lender will want to see that your products are appealing even if they don't need to know every technical aspect.
One of the main sections of your business plan is the market study. Show that you are aware of the market you are in and how you set yourself apart from the competition. Include any market figures you can locate in this section, especially those regarding its anticipated growth in the upcoming years.
A plan for sales and marketing is necessary. This will outline the kind of new clients you hope to acquire as well as your strategy for establishing a connection with them. Your sales targets should be listed in this section, along with a connection to any upcoming marketing or advertising campaigns.
You should outline the advantages and disadvantages of entering a new market or reaching out to clients you haven't worked with previously.
The operational plan is a crucial component that outlines the prerequisites for managing your company day-to-day. Depending on the kind of business you operate, your specific needs will change but try to be as detailed as you can.
For instance, you should factor in the cost of office space rental in your operating strategy. The price of hiring personnel, purchasing machinery, and any raw materials needed to operate your firm should also be included.
If you are looking for a loan, one of the most crucial parts of your business plan is the section on the management team. Your lender will want confirmation that your senior management team is made up of people who are qualified, experienced, capable, and trustworthy.
You ought to include a funding request if you're submitting a loan application. Here, you should specify how much money you want to borrow as well as your precise plans for using it.
The most crucial aspect of the funding request section is describing how the loan you are requesting would increase your company's profitability and will enable
you to repay the loan.
The majority of lenders will request that you include documentation of your company's finances with your application.
Charts and graphs help your lender quickly comprehend your financial situation, so they are frequently a helpful addition to this part.
Providing financial accounts serves the general purpose of demonstrating the stability and profitability of your company. Add balance sheets, cash flow statements, and income statements for the last three to five years. Providing more analysis and growth estimates for your company over the next few years can also be helpful.
Lenders scrutinise various aspects of your business to ensure stability, market understanding, and realistic growth plans. They evaluate these factors through what is commonly referred to as the "Five Cs": Character, Capacity, Capital, Conditions, and Collateral.
Character, the first C, underscores your integrity and reliability as a borrower. Highlighting your positive attributes in the executive summary, company overview, and management team section can strengthen this aspect.
Capacity, the second C, focuses on your ability to repay the loan. Lenders
Approval rate of small businesses loans in the United States from March 2021 to March 2023, by lender type
Source: Statista
examine your growth strategies, funding requests, and financial statements to gauge this. Demonstrating realistic plans for expansion and sound financial management is crucial in this regard.
Capital, the third C, pertains to the resources already invested in your business. A larger and more established capital base increases the likelihood of loan approval. Emphasising your capital throughout the business plan showcases your commitment and financial stability.
Conditions, the fourth C, encompass market dynamics and positioning. Your market analysis should illustrate a solid understanding of market conditions, demonstrating how your business is well-aligned with your target market and positioned advantageously relative to competitors.
Collateral, the final C, involves assets that can serve as security for the loan. Providing details about the assets you possess in the operational plan can reassure lenders and may be necessary depending on the loan type.
By addressing these five Cs throughout your business plan, you can provide lenders with comprehensive insights into your business's stability, market awareness, and growth potential, increasing the likelihood of securing financing.
Depending on your industry, writing a business plan may take some time, but you should take your time to make sure it is accurate and comprehensive. Beyond just helping you get a loan, a business plan gives your company direction and strategic emphasis.
When creating a business plan, the most frequent error made by entrepreneurs is to overestimate their growth potential. Try to avoid giving your lender unrealistic growth estimates because they are likely to catch you off guard.
You can also hire someone to write it for you. Although you can pay someone to draft a business plan for you, doing it yourself is frequently preferable. Compared to an outside consultant, you probably have a deeper understanding of your company.
Whether you are looking for a loan or not, writing a business plan will help your company. You may establish and maintain strategic priorities with the aid of a wellwritten business plan. It outlines your plans for expanding your company, which is important information for lenders who want to know that you can pay back the loan you're looking for.
Lenders scrutinise various aspects of your business to ensure stability, market understanding, and realistic growth plans. They evaluate these factors through what is commonly referred to as the "Five Cs": Character, Capacity, Capital, Conditions, and Collateral
Banking & Finance
Sales Tracking Spreadsheets
Sales tracking spreadsheets streamline sales operations by centralising key metrics and performance indicators in one accessible platform
GBO Correspondent
JFeature \ Revenue
ust like how we make calendars, planners, and to-do lists to stay on top of our daily activities, a sales tracking spreadsheet helps businesses identify trends in their sales and make informed decisions about their future strategies. The tool also enables businesses to track their sales performance over time and monitor their progress in achieving their goals, apart from identifying areas for improvement to increase sales.
"A sales activity tracker is a tool that helps salespeople manage things like contacts, deals, and quotas more effectively. It supports sales teams in monitoring and analysing all the moving parts of their sales process and, in turn, helps them to make better decisions. Using a tracking tool, spreadsheet, or template makes it easy to have all the information you need to review in one place. Plus, these resources can be used to quickly identify trends and any corrections that need to be made in one-on-ones and team meetings to review performance," HubSpot said.
Sales activity trackers play a crucial role in decoding invaluable insights into customer behaviour, market dynamics, and revenue streams, thereby empowering businesses to optimise their sales processes and maximise profitability.
Need for sales tracking spreadsheets
Harvard Business School defines 'Data-Driven Decision-Making' (also abbreviated as DDDM) as the process of using data to inform a business' decision-making process and validate a course of action before
Sales Tracking Spreadsheets
The mantra of remaining competitive in the 21st century economic landscape is something called "Informed Decision Making." A business leader needs to harness the capability of mining a lot of market data to understand the customers' buying behaviour, and his/her product preferences
committing to it.
When it comes to adopting DDDM method, businesses don't need to follow a hard and fast rule. They can either collect survey responses to identify products, services, and features their customers would like or conduct user testing to observe how customers are inclined to use their product or services, while identifying potential issues that should be resolved before the product's release.
Also, you have methods like launching a new product/service in a test market in order to test the waters, along with analysing shifts in demographic data to determine business opportunities/threats.
"The collection and analysis of data have long played an important role in enterpriselevel corporations and organisations. But as humanity generates more than 2.5 quintillion bytes of data each day, it's never been easier for businesses of all sizes to collect, analyse, and interpret data into real, actionable insights. Though data-driven decision-making has existed in business in one form or another for centuries, it’s a truly modern phenomenon," Harvard
Business School noted.
We already have successful examples of DDDM. One such example was Google's “People Analytics,” where the tech giant implemented 'Project Oxygen,' under which it mined data from over 10,000 performance reviews and compared the data with employee retention rates. Google used the information to identify common behaviours of high-performing managers and created training programmes to develop these competencies.
Another one is 'Real Estate Decisions' by Starbucks, an approach which the legendary American chain of coffeehouses took after hundreds of its branches closed during the 2008-2009 “Great Recession.” Following this, the then-CEO Howard Schultz went for a more analytical approach to identify future store locations. Now, the venture partners with a location analytics company to pinpoint ideal store locations using data like demographics and traffic patterns.
As stated already, DDDM can either be heavily tech-driven or simple tools like surveys. Sales tracking spreadsheets too
can be viable options for enterprises. The goal at the end of the day is simple and crisp, to make confident business decisions, be more proactive and realise cost savings to become operationally lean and increase the success ratio.
The mantra of remaining competitive in the 21st century economic landscape is something called "Informed Decision Making." A business leader needs to harness the capability of mining a lot of market data to understand the customers' buying behaviour, and his/her product preferences. This activity also needs to be completed quickly, before chalking out the tailored products, as time is the crucial element here, to get the edge over the rivals.
Through the implementation of sales tracking spreadsheets, businesses can address the above-mentioned challenge of harnessing the power of "Data-Driven Decision Making." According to the Harvard Business Review, companies prioritising data-driven decision-making end up being 5% more productive and 6% more profitable than their industry competitors.
Leveraging real-time sales data captured in spreadsheets, businesses can adapt quickly to market fluctuations, apart from capitalising on emerging opportunities and mitigating risks effectively.
We are talking about software offering real-time data analysis, tracking sales metrics, forecasting trends, and providing actionable insights to drive strategic decision-making. Sales tracking spreadsheets can seamlessly be integrated with the overall enterprise software for the holistic view of a business leader eyeing to remain competitive and growth-oriented, while having first-hand access to crucial insights about customer behaviour, product performance, and overall business trends.
Tasks like tracking and analysing sales data, and identifying market trends and sales patterns, without the technology's helping hand, can become a time-consuming and tiresome affair for
the human staffers. Sales trackers expedite the whole process by leaps and bounds, thereby enabling the ventures to make proactive and informed decision making, followed by the quick course correction of their sales processes, which helps them to gain a crucial market advantage over the rivals.
Sales trackers go after sales data, customer behaviour patterns, product performance, overall business trends, key performance indicators (KPIs) like revenue, profit margins, and customer acquisition costs, basically information which needs to be used to make strategic calls on marketing, sales, and product development.
First of all, sales tracking spreadsheets streamline sales operations by centralising key metrics and performance indicators in one accessible platform. This process not only enhances efficiency by eliminating manual data entry and disparate systems but also fosters accountability among the sales teams.
With clear visibility into individual and team performance metrics through sales tracking spreadsheets, sales professionals get motivated to meet and exceed targets, driving overall business growth.
Automated reporting features usually get integrated into sales tracking spreadsheets, thereby streamlining the process of generating insights. By automating data aggregation and visualisation, businesses can eliminate manual reporting tasks, saving valuable time and resources in the process.
"With scheduled reports and customisable dashboards, key stakeholders gain access to real-time sales performance metrics, enabling proactive decisionmaking and rapid response to market changes," Global Banking and Finance Review stated.
"Sales tracking spreadsheets provide a scalable solution for managing growing sales operations. As businesses expand their customer base and product offerings, the need for efficient sales processes
Sales Statistics You Need To Know In 2024
Only 19% of customers trust salespeople
Only 2% of sales happen at the first meeting
Inside sales pros succeed with 18% of pitches
Almost 80% of sales are made by 20% of salespeople
Around 46% of salespeople didn’t intend to go into sales
Salespeople spend 66% of their day on administrative tasks
The average sales conversion rate across all industries is 2.46%–3.26%
Approximately 51% of top sales pros focus their efforts on relationshipbuilding
Nearly 63% of all sales interactions end with the sales pro not asking for the sale
Around 54% of salespeople can track closed deals back to social media engagement
Source: zety.com
The business leader should make sure that the sales tracking software they choose is user-friendly and compatible with the company's computer operating system. Additionally, it's important to ensure that the software is regularly updated to ensure optimal performance
becomes increasingly critical. By standardising workflows and centralising sales data in a spreadsheet format, organisations can maintain consistency and visibility across sales channels, facilitating seamless scalability without sacrificing performance or quality," it added further.
Sales tracking spreadsheets also come with in-built collaboration features, which foster alignment and cohesion across the departments. By granting multiple users access to the same dataset, sales teams can collaborate in real-time, share insights, and coordinate deal-making efforts more effectively.
"This collaborative environment promotes cross-functional alignment, ensuring that sales, marketing, and operations teams are working towards common goals and objectives, ultimately driving greater synergy and results. Navigating the vast sea of sales metrics can be daunting, but focusing on key indicators is essential for measuring success. Sales tracking spreadsheets help businesses identify key metrics, such as conversion rates, customer acquisition costs, and sales velocity. By monitoring these indicators over time, organisations can gauge the effectiveness of their sales efforts and make data-driven adjustments to optimise performance," Global Banking and Finance Review commented further.
Also, the sales tracking spreadsheets turn data into actionable insights, by leveraging which, businesses gain a competitive advantage in the marketplace. Whether it's identifying untapped market segments, refining sales strategies, or improving customer engagement, sales tracking spreadsheets are there to mine the market data and generate sales intelligence inputs, which ultimately empowers businesses to make smarter decisions and drive sustainable growth.
First, identify the specific metrics and key performance indicators (KPIs) that suit
your business objectives and expansion agendas. Then, determine which data needs to be collected and recorded. After that, design a spreadsheet that meets your business needs and collects the data you require.
After going through the aforementioned three stages, the business leader needs to define the reports he/she needs to access the data and use it to make informed business decisions. This process will be followed by a selection of spreadsheet software that will align with the business' operational requirements and offer robust features for data visualisation and analysis. The business leader should make sure that the sales tracking software they choose is user-friendly and compatible with the company's computer operating system. Additionally, it's important to ensure that the software is regularly updated to ensure optimal performance.
The sales tracking spreadsheets also need to be customised to include fields for tracking sales activities, pipeline progress, revenue forecasts, and other pertinent information. The business also needs to ensure that the spreadsheet gets integrated with CRM systems, marketing platforms, and other data sources to capture comprehensive sales data automatically.
The venture needs to provide comprehensive training and ongoing support among its staffers to ensure that the sales professionals understand how to use the tool effectively. Also, the spreadsheet needs to be reviewed and updated periodically to ensure that the tool is operating as per the business' evolving operational needs and the existing market conditions.
United States-based "Podium," a private technology company which develops cloud-based software related to messaging, customer feedback, online reviews, selling products, and requesting payments, has carried out detailed research in the domain of "Sales Tracking Spreadsheets," before
shortlisting such utility tools.
One of them is HubSpot's "Sales Hacker Pipeline Template," which despite resembling a basic tracker spreadsheet, helps its users to generate their quarterly sales forecasts, apart from "adjusting the weighting by the probability of each stage in the sales funnel." The tool, if used correctly, can predict expected revenue over a given period of time, thereby helping sales teams to accurately estimate how much product/ service they will be selling throughout the financial quarters, thereby ensuring that the sales representatives, managers, business leaders and other stakeholders remain on the same page, in terms of chalking out the strategies.
Another such tool (again from HubSpot) is the "Sales Performance Dashboard Template," which is interactive and helps its users track sales pipelines with unique metrics to provide the best possible data for forecasting the success of the businesses. This template can even offer detailed reporting at each stage of a business deal and monitor how the client venture's sales prospects move through the pipeline.
Then we have Smartsheet.com's "Lead Tracking Spreadsheet Template," which keeps track of the sales leads, thereby helping its client businesses to function more efficiently. Business leaders who use this tool don't face situations like chasing down leads they have already followed up on or losing track of hot leads.
"This Excel template has columns so you can easily input and organise details about each sales lead, such as dates, which sales reps they worked with, and contact information. With this template, it will be easier to monitor your efforts in marketing and identify where you need to refine them," commented Podium, while describing the tool.
HubSpot's "Sales Activity Log Template," another sales tracking spreadsheetkind of tool, has been designed to help its users track customer interactions and to find out who is buying what kind of services or products.
"You have enough space to put meeting notes, titles, and names, as well as proposed solutions you want to mention at the next interaction. This template also clearly displays sales pipelines and helps with managing relationships. It helps your sales team to keep prospects tracked and ranks them based on priority. This is one of the sales tracker templates that is easy to use with real-time integrations," Podium stated further.
Another useful tool is Podium's in-built "Customer Relationship Management (CRM) Template," which provides seamless integrations with the client businesses' enterprise software.
"From what they have spent on your products and services to their contact information, having a template to keep customer details organised is one of the first pieces of the small business puzzle of success. Like having a CRM built for small businesses, getting all your details gathered, sorted, and stored in the same spot enables your agents to provide excellent customer service and build an excellent brand," Podium described its product.
"You
have enough space to put meeting notes, titles, and names, as well as proposed solutions you want to mention at the next interaction. This template also clearly displays sales pipelines and helps with managing relationships. It helps your sales team to keep prospects tracked and ranks them based on priority" - Podium
GBO Correspondent Analysis
The majority of taxable income under the proposed law originates from Saudi Arabian sources
Recent changes to the tax code in Saudi Arabia have left many individuals and companies unsure of their tax obligations. The implementation of the new tax law in Saudi Arabia has elicited mixed responses. While some regard it as a necessary step towards economic development, others worry it will hurt people and businesses.
Because there is a lot of misinformation and misperception about the law, many find it difficult to appreciate its complexities. This article will break down the key components of the Kingdom's new tax law in a crisp manner.
Individuals and business owners must stay current on emerging trends to maintain legal compliance and make wise financial decisions. Let's look at the details and bust some misconceptions about these recently implemented tax laws.
The newly passed tax laws seek to standardise the processes for zakat and tax rules, improve transparency, and align Saudi Arabia's tax laws with the best international practices. It will make it possible for the laws to align with the Kingdom's ‘Vision 2030’ economic plan.
The Zakat Tax and Customs Authority released the ‘Income Tax Law Draft’ on the ‘Istitlaa Portal’ on October 25, 2023. Its goal is to amend the Kingdom's current income tax system, which is governed by the ‘Income Tax Law’. The law establishes protective measures to stop transactions with tax havens.
The primary aim of the proposed legislation is to enhance the applicability of income tax to individuals and
non-residents involved in business, investment, or real estate-related activities.
The proposed law distinguishes between residents and nonresidents because non-Saudi citizens are liable to income tax. Along with those legally constituted in Saudi Arabia, entities having their functional principal place of management located within the Kingdom will also be recognised as ‘Legal Persons’.
Additionally, individuals who possess a residence permit, have their domicile in Saudi Arabia and have lived in the Kingdom for thirty days consecutively or collectively over 365 days are considered Natural Resident Persons.
If either of these conditions is met, individuals who spend 183 days consecutively or collectively in the Kingdom during a tax year, or who stay for 90 days consecutively or collectively in a tax year on top of having spent a total of 270 days consecutively or collectively over the previous three tax years, are also considered ‘Natural Resident Persons’. It will be simpler to comprehend who is deemed to be
taxable along these lines.
Regarding taxation, a legal person involved in any activity related to the extraction of oil or hydrocarbons, investments in natural gas, or ownership of any interest or units, whether directly or indirectly, by a non-Saudi business, will be subject to taxation.
Taxation of non-resident individuals: Individuals who operate through Permanent Establishments (PE) and are regarded as non-residents are nonetheless subject to taxation.
In addition, non-resident individuals who trade or invest in the stocks of publicly traded companies, open bank accounts in the Kingdom, and non-resident individuals who do not maintain a permanent establishment but receive income from Saudi Arabian sources will be considered taxable persons.
The majority of taxable income under the proposed law originates from Saudi Arabian sources. It offers tax exemptions on several capital gains, particularly those
Source: Statista
resulting from restructuring transactions that further economic development goals.
Among other things, non-recoverable input VAT and real estate transaction tax have been added to the list of deductible expenses. The law also limits the amount of monetary expense that can be subtracted to promote accountability and openness.
New provisions that alter WHT (Withholding Tax) rates and exempt particular payments from WHT are included in the ITL revisions. This includes exclusions from listed corporations' payments to non-resident shareholders and a 10% WHT on payments made to non-residents for services delivered.
A 5% WHT on loan fees to related parties is another suggestion made by the proposals. Amendments to Article 16 of the VAT implementing rule will regulate the treatment of costs related to research, development, and innovation to better align with the Kingdom's priority on technological improvement.
The five-year statute of limitations for tax assessments is lowered to three years under the proposed plan, which also allows for extensions under specific circumstances.
The penalties for noncompliance have increased significantly, especially when it comes to tax evasion, where fines can reach 100% to 300% of the unpaid tax or Zakat. The Kingdom's resolve to maintain tax compliance is shown by these actions.
The reforms are essential to Saudi Arabia's economic future, particularly in encouraging investments. It is projected that increasing tax revenues and enhancing economic stability will result from the emphasis on tax compliance and transparency.
In Saudi Arabia, Foreign Direct Investment (FDI) is a major factor in economic growth and development. The country's appeal as an investment destination may be impacted by the planned revisions to the tax code. Saudi Arabia may become less competitive in the region when compared to other
nations due to higher business tax rates.
The fiscal policy of Saudi Arabia will be greatly impacted by the modifications made to its tax code. The government will have more money to spend on social welfare initiatives, infrastructure development, and economic diversification projects if non-oil sectors generate more revenue. It is anticipated that these actions will boost economic expansion and lessen the nation's reliance on foreign energy.
The proposed modifications to Saudi Arabia's tax code are primarily intended to boost government coffers. With the introduction of value-added tax (VAT) and higher corporation tax rates, the planned revisions to the tax code are anticipated to have a major effect on the Saudi Arabian economic environment. The country's enterprises may incur higher expenses as a result of these actions.
To support firms during the transition phase, the government has also announced several incentives and exemptions, which is crucial to highlight.
Foreign companies that place their regional headquarters in the Kingdom will receive a 30-year corporate income tax exemption, as announced in 2023.
Saudi Arabia's Ministry of Investment said foreign firms who move their regional headquarters to the Kingdom can benefit from zero income tax from the date of the regional headquarters issuing permission.
The Ministry of Investment and the Royal Commission for Riyadh City collaborated to entice foreign corporations to locate regional headquarters in Saudi Arabia.
The regional headquarters programme encourages foreign corporations to create regional headquarters in Saudi Arabia across the Middle East and North Africa (MENA) region by demonstrating the Kingdom's many incentives.
According to Saudi Arabia's Minister of Investment Khalid Al Falih, global companies opening regional offices in the
Kingdom will receive preferential rewards for Saudization compliance.
He noted that over 200 companies have moved their headquarters to Saudi Arabia due to its economic climate.
"The new tax exemptions, granted on the activities of regional headquarters of international companies in the Kingdom will give these firms more clarity of vision and stability, which will enhance their capabilities for future planning and expanding their business in the region,"
Saudi Finance Minister Mohammed AlJadaan said.
Al-Falih claimed in November 2023 that Saudi Arabia had exceeded the regional headquarters programme's goal of attracting 160 multinational enterprises by the year's end.
Al-Falih told Bloomberg that the regional headquarters programme is a long road and that the Kingdom is working with international organisations to provide a suitable environment for their offices in Saudi Arabia.
Recent Saudi Arabia headquarters openings include PwC Middle East and GE Healthcare.
According to him, Saudi Arabia is a safe place for foreign investment despite geopolitical and economic issues.
A significant step in modernising the tax code and bringing it into line with international standards is the ‘Saudi Arabian Draft Income Tax Law.’
Foreign investors and businesses operating in the Kingdom must carefully consider how the upcoming tax adjustment may impact their operations in Saudi Arabia.
For foreign enterprises and Saudi taxpayers, this dynamic structure presents both opportunities and challenges. It is subject to change based on public response.
Foreign investors and businesses operating in the Kingdom must carefully consider how the upcoming tax adjustment may impact their operations in Saudi Arabia
FDI inflows in China for the first nine months of 2022 totalled only $16 billion, compared to $344 billion during 2021
GBO Correspondent
Foreign Direct Investment (FDI) has already been negatively impacted by growing protectionism and the Washington-Beijing tensions. Even though China's declining FDI is helping some nations, cross-border investment is declining overall.
According to the World Bank, long-term cross-border investment decreased to 1.7% of world production in 2022. It was 5.3% in 2007. In addition, it decreased by a further 18% in 2023, according to the United Nations Conference on Trade and Development (UNCTAD).
FDI inflows in China for the first nine months of 2022 totalled only $16 billion, compared to $344 billion during 2021. Foreign enterprises' disinvestment has been almost equal to the amount of capital coming in as new investments.
Global conflicts have contributed to weak economic development and higher interest rates, which have significantly slowed FDI in recent years.
Numerous investment opportunities have been priced out due to the greater cost of capital after factoring in a risk premium. Uncomfortably, UNCTAD reports that the quantity of new renewable energy projects in developing nations decreased by 25% in 2023.
According to Jacob Kirkegaard, a fellow at the Peterson Institute for International Economics (PIIE), one factor contributing to the dramatic decline in investment in China is the country’s abrupt transition from a rapidly rising to a slower-growing economy.
However, the decline in capital flows is also due to
Source: Statista
restrictions on high-tech investment in China by the Western Bloc, as well as growing worries among global corporations about becoming entangled in geopolitical conflicts.
According to the International Monetary Fund, over half of the FDIs went to nations that cast comparable votes at the United Nations General Assembly in 2021, up from about 40% in the first ten years of this century.
Since then, there has been increased tension in the world due to China's growing influence and the Ukraine conflict. The West has launched programmes like "friendshoring" and "de-risking," which seek to reduce reliance on China by establishing supply chains in friendly nations.
They are also less receptive to Chinese investments in their vital industries. Chinese businesses have invested in nations with positive ties to Washington in an attempt to gain access to the American market through a back door. For instance, the $5 billion industrial park that China's Lingong Machinery Group is building along the Mexican border with the United States is anticipated to attract investment.
China's $1.3 trillion Belt and Road Initiative (BRI) now faces competition from the Group of Seven (G7) major industrialised nations. By 2027, they hope to channel up to $600 billion to developing nations to assist them in building infrastructure, such as expediting green transitions in countries like Vietnam.
In the meantime, the US is using the Inflation Reduction Act to pump $369 billion into decarbonising its economy. This law penalises Chinese industry and encourages domestic production, which is a kind of protectionism.
In January 2024, the World Trade Organisation (WTO) issued a warning, stating that early indications of fragmentation are emerging and that geopolitical conflicts are starting to influence trade flows, even though it is premature to declare the era of globalisation to be over.
According to the WTO, since the invasion of Ukraine, commerce in goods has expanded between two hypothetical geopolitical blocs at a rate between 4% and 6% slower than trade inside these blocs, based on UN voting trends.
An IMF analysis of two decades' worth of data revealed that, in contrast to the past, the prospect of profitable new markets had a significant influence on the flow of capital in recent years.
"You still find that geopolitics matters even if you control for features like country risk and geographic distance, which is generally a key driver of bilateral trade and financial flows," explains Andrea Presbitero, deputy head of the IMF's research division.
Since China is the largest trade nation in the world, a large portion of the shift centres on the world’s manufacturing powerhouse.
According to an updated IMF analysis released by Bloomberg, greenfield investments in China by US companies fell by 57.9% between the second quarter of 2020 and the first quarter of 2023-24, while those by European firms fell by 36.7% compared to the five years before the COVID pandemic. Over two-thirds, less money was invested in China by people from other Asian countries.
According to Hung Tran of the Atlantic
Council, emerging economies that can draw investment from both China and Western nations stand to gain the most from these developments. Prime examples include Mexico and Vietnam, where FDI has defied the declining global trend over the previous ten years, at 2.9% and 4.6% of GDP, respectively.
However, global investors have been turned off by the governance issues and overwhelming debt that plague African nations. According to UNCTAD, FDI flows to Africa as a whole were barely $48 billion in 2018.
According to Tim Figures of the Boston Consulting Group, African states have an opportunity to play China and the West off against one another and secure investment. This money may be used for both resource extraction and domestic raw material processing.
India is a mixed bag thus far. It has drawn some interesting investments, most notably from Taiwanese manufacturer Foxconn, which
assembles the majority of Apple's iPhones and is diversifying production away from China. FDI, however, only made about 1.5% of GDP in 2022. Furthermore, according to UNCTAD, it decreased by 47% last year.
High tariffs are one of India's disadvantages; they force businesses to pay more for their components, discouraging international investors from using the country as an export base.
Another is that it has become hostile to Chinese businesses due to the border standoff between New Delhi and Beijing.
As governments and corporations continue to adapt to the ever-changing geopolitical situation, investment flows will continue to change. However, if Trump prevails in this year's US presidential election, the transformation process may accelerate.
Ultimately, the ex-real estate developer is pledging to apply 10%
Global investors have been turned off by the governance issues and overwhelming debt that plague African nations. According to UNCTAD, FDI flows to Africa as a whole were barely $48 billion in 2018
tariffs to all shipments into the US. He has promised to take a particularly severe stance against Chinese goods by removing China's trading status as a most favourable nation.
What Trump would do as president is still quite unclear. However, there will be an equally significant impact on global investment if he uses a wrecking ball on global commerce.
Regardless of the outcome of the US elections, political factors are becoming more and more important when making investments globally. That is another reason to be sceptical about global growth, insofar as it warps commercial logic.
The Kuwait-based Islamic lender Al Salam Bank announced that it has finalised agreements to buy out Kuwait Finance House-Bahrain (KFH-Bahrain) in its entirety from Kuwait Finance House Group (KFH), the company's parent company.
KFH-Bahrain is a wholly owned subsidiary of KFH Group, an Islamic financial institution headquartered in Kuwait. Al Salam Bank will fully own KFH-Bahrain as a result of the deal, pending regulatory approvals.
The acquisition's financial information was kept under wraps.
In order to maintain an uninterrupted customer experience, a seamless integration and brand repositioning plan will be put into place after the transaction closes,
according to a statement from Al Salam Bank.
Further information about the transaction process and any ensuing operational adjustments will be given by the acquirer. Consumers may still use all of the services that KFH-Bahrain offers at this time, including cards, chequebooks, online and mobile banking, branches, ATMs, and the
The Bank of China (BoC) stated that this year will continue to see considerable pressure on its net interest margin (NIM), a crucial indicator of profitability.
Vice President Zhang Yi made the remarks in an earnings press conference. Five of China's largest lenders have posted shrinking NIMs, while warning of ongoing property sector risks.
Reductions in 2023's mortgage rates and the benchmark lending rate earlier in 2024 have affected returns on assets, according to Zhang.
"We'll strive to reduce high-cost deposits this year," he said.
In addition, China Construction
Bank Corp (CCB) chief finance officer Sheng Liurong announced that the bank would further regulate deposit interest rate costs to lessen the strain on profitability.
He also indicated the potential for additional reductions in the benchmark lending rates in 2024.
call centre.
Customers will receive transaction updates from KFHBahrain and Al Salam Bank.
The statement also stated that branch services, customer interaction, banking operations, and all other banking services will continue to run smoothly. Periodically, more details about the transaction will be disclosed.
Meanwhile, despite the central bank's efforts to loosen policy and boost the economy, China's bank loans grew at the slowest rate ever in February, highlighting the country's weak borrowing
demand.
The People's Bank of China released data showing that the stock of yuan loans grew 9.7% in February compared to the same month in 2023, the lowest growth rate since 2003.
The Swedish Parliament will need to approve a proposal from the Central Bank of Sweden to bring equity back to the statutory base level. This will require a capital infusion of 43.07 billion Swedish crowns ($4.05 billion) in 2024.
"A negative equity does not affect the Riksbank's ability to conduct monetary policy in the short term," Governor Erik Thedeen said in a statement.
"But to maintain confidence in an independent monetary policy in the long term, it is necessary that the Riksbank is financially independent,” he added.
A significant rise in interest rates in 2022 caused the value of the bonds the Riksbank had purchased between 2015 and 2021 to decline, resulting in a loss of about 80 billion crowns and negative equity of 18 billion crowns.
A target equity level of 60 billion crowns and a basic level of about 40 billion crowns are specified in new legislation that was introduced in 2023 for the Riksbank.
The equity of Riksbank was estimated to be approximately minus 2 billion crowns, by the end of 2023.
Meanwhile, following significant losses on bonds accumulated during a period of low inflation, Riksbank requested lawmakers to reinstate its equity.
According to Economist Professor Ken Ife, aggressive monetary policy tightening adopted by the Central Bank of Nigeria (CBN) will attract foreign portfolio investments to the country.
Ken Ife, who is the Lead Consultant on Private Sector Development for ECOWAS Commission, stated this to the News Agency of Nigeria (NAN)
The apex bank’s monetary policy decisions would also attract the needed dollar liquidity and stabilise the foreign exchange market, he said.
According to NAN, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria raised the nation's Monetary Policy Rate (MPR) from 18% to 24% in February and March 2024, a 600 basis
point increase.
Ife further claimed that the economy attracts foreign portfolio investment because of this aggressive increase in the MPR.
"The higher you go, the more interested investors will be in investing in your economy. Aggressive tightening is the most appropriate response to the size of the challenge that we face right now," he said.
He also stated that such tightening was also a panacea for the various inflationary trends that the Nigerian economy is experiencing.
"We are facing various types of inflation, like the demand-pull inflation, the cost-push inflation, forexrelated imported inflation," he concluded.
Technology Website Builders
GBO Correspondent Analysis
While fully AIpowered website builders are ideal, it is presently more typical to discover similar applications that assist with particular aspects of website management and creation
Artificial intelligence (AI) is becoming increasingly prevalent in the 21st century, with technology being utilised in almost every aspect of our lives. Whether we like it or not, it is attempting to make things faster, better, and easier than ever before.
The ultimate goal of the finest website builders is actually to facilitate the quick and simple creation and management of profitable websites.
Therefore, it should come as no surprise that website builders are hopping on the AI bandwagon and using its capabilities to release new tools that enhance their product offerings. This article looks at some of the most recent AI advancements in the website building processes, apart from offering unique perspectives, and speculates on what might be in store for the future.
AI and web developers
AI is already being used by several top website builders, particularly when it comes to automating time-consuming website management and development duties.
Hostinger, for instance, provides a comprehensive AIpowered website design solution. Users only need to enter their brand name, select a website type, specify the specific kind of website they want, and click "create a website" for it to function. They are shown a custom website template based on all the information they submitted a short while later.
A surprisingly excellent outcome
With its capacity to learn, adapt, and comprehend what users want from a website, artificial intelligence (AI) is transforming website design. There are several advantages to using AI in web development that can increase the efficacy of your website.
For example, you can quickly update block content,
write custom HTML code and insert it into blocks, add new material to a block, correct grammar issues, make contact forms, add call-to-action buttons (CTAs) to blocks, and much more by utilising AI with Unicorn Platform's platform.
Additionally, by automatically evaluating user data and producing content that is specially customised to what people are most likely to click, AI decreases development time instead of manually coding or depending on freelance designers on a tight budget. This helps you cut expenses while optimising the performance of your website.
In the end, using AI for web development can assist you in producing a fantastic user experience that more effectively satisfies the demands of your target market – all without consuming all of your time or financial resources!
The websites ‘Diplomatic Lawn Care’, ‘Reflections in Focus’, and ‘Crystal Cutie Shop’ are a few instances of those created with the AI-powered website builder Hostinger. These won't be recognised as the most creative website
designs. However, they are orderly, polished, and fully furnished with all the details a prospective client may require—everything that most small businesses need, but which a great deal of them do not.
Jimdo and IONOS are two other website builders that use a similar strategy. Nevertheless, unlike Hostinger, which lets you create websites with helpful text suggestions, these AI builders rely on multiple-choice questions to generate a customised design.
Israeli web development venture Wix has revealed its plans to take a similar tack. By providing specifics about what they are seeking and responding to a few questions, website owners will be able to develop websites with the AI Site Generator tool. Similar to Hostinger's AI solution, California-based Duda also offers an AI tool that claims to assist in creating sections, pages, product descriptions, and more.
While fully AI-powered website builders are ideal, it
is presently more typical to discover similar applications that assist with particular aspects of website management and creation.
Consider Duda's AI product as it stands today. It offers AI tools to assist you enhance the language on your website and creates meta titles and descriptions for your pages that are optimised for search engines. Along with AI image and colour palette generation, IONOS does something similar.
To be honest, AI isn't as revolutionary as people make it out to be—at least not yet, despite all the hype around it. Before it completely replaces human labour in the process of creating websites, there are still many problems and obstacles to be resolved.
AI can assist you in rapidly creating a solid foundation for your website, but you will still need to make adjustments to produce a professional online presence for your company.
Experts in web development, design, SEO, and content creation can now rest easy knowing that, while AI is capable of performing certain tasks, it isn't yet able to offer the same depth of knowledge and experience.
On the other hand, AI helps small businesses save a ton of time by producing content, customising templates, and adhering to best practices. Using their AI site builder, the median
time for a website to become online was only 28 minutes and 46 seconds, according to unique statistics that Hostinger shared with us.
Cost savings follow time savings. This is particularly valid for companies who create a lot of websites, like agencies. According to a Duda study, adopting AI technologies in 2023 resulted in cost savings of up to $10,000 for 90% of the agencies examined. Additionally, it was shown that agencies project a 134% rise in 2024 over 2023 in cost reductions via AI tools.
Using the same kinds of AI tools, small firms and entrepreneurs should be able to save a smaller but still considerable amount of money from these large savings made by agencies.
Does using AI during the website building process save you money and time? Indeed.
Will it let you quickly (in a matter of seconds or minutes) develop a flawlessly finished website without the need for further editing? No.
So, what are the opinions of companies utilising these new AI tools firsthand, about them?
Jarrott Brown, who is a deputy sheriff with a side gig as a landscaper, told TechRadar that he began cutting lawns in 2011 and took a break from it in 2014. He recently restarted his firm using Hostinger's AI Website Builder.
"In a single day, I designed and launched my website. It eliminated a lot of manual labour, which is what I found appealing about it. My website was perfect; I simply needed to make a few tweaks. It was ideal for my needs because I
wanted to make a website without having to put in a lot of work,” he commented.
Olive Street Design, a Chicago-based web design company, has reduced the amount of time it takes to make corrections by hand by using Duda's AI capabilities to update meta descriptions, page titles, and image alt-text.
"With the resources at our disposal, we can give each client a strong start to their SEO journey in a flash," said Nat Rosasc, Olive Street Design's Principal and Creative Director.
AI applications might be used, for instance, to create highly customised web pages based on user behaviour, preferences, and real-time data. Just consider the impact of a website that dynamically adjusts elements like tone, language, marketing messaging, fonts, photos, videos, and structure for each visitor.
When combined with other technological advancements like Augmented Reality (AR), personalisation may be leveraged to create strong, immersive websites that immerse users in custom, branded experiences through website builders.
The ability to accept sophisticated voice-based commands might be added to text-based AI website-generating advancements, enabling you to essentially speak your ideal
website into existence.
Utilising AI to safeguard user data, anticipate threats, and prevent susceptible internet users from interacting with dangerous people or content would also elevate security to a new level. The possibilities are endless.
Within website builders, artificial intelligence is an intriguing area of development. Numerous industry leaders have already introduced cutting-edge AI solutions that enhance users' website-building experiences.
When developing websites, small businesses, entrepreneurs, and agencies are already saving time and money by utilising these technologies.
However, the use of AI in website creation is still relatively new, with the majority of solutions being amazing and useful but also basic. There are still a plethora of options to leverage its use, which makes it an attractive field with room for growth.
The benefit of selecting a seedbox over a basic VPS is that it already has specialised BitTorrent apps pre-installed and is optimised for fast downloads
When downloading files using BitTorrent, it is highly recommended to use a seedbox. Essentially, a seedbox is a dedicated server that is specifically designed to assist you with file management and torrent downloads. It achieves this through the use of torrent-specific software and by having constant access to a fast internet connection.
For those uninitiated, we are talking about a tool, which is a high-bandwidth remote server used to upload and download digital files from a peer-to-peer (P2P) network. Seedboxes are exclusively equipped with BitTorrent-related software, such as qBitTorrent, Deluge, or others.
"A seed box contains one or more torrent clients with a web user interface (UI) that you may access remotely through a secure shell (SSH), an online control panel or a smartphone app. You may load torrent files or Uniform Resource Locators (URLs) into the interface and, once loaded, they will begin downloading the related files. Seedboxes allow you to download files stored on them via HyperText Transfer Protocol (HTTP), File Transfer Protocol (FTP), or SSH FTP (SFTP)," said Techslang, while explaining the idea further.
The majority of users install a free BitTorrent client on their home computer in order to download torrent files. This is as easy as the user visiting a website that hosts
Seed market value worldwide from 2019 to 2022 (In Billion US Dollars)
Source: Statista
magnet links or torrent files, and then clicking to open the files in the torrent client. The client then starts to download the file from "seeders" and "leechers" by using the information in the file or link to determine where the file is located.
These individuals' names correspond to those who possess a full or partial copy of the file you are looking for. As you download these files, these "peers" are connected to your device. You can also share any downloaded file data with other "peers." Upon finishing the file download, you transform into a "seeder" and share your file with others until you relocate the file or modify this in your client's settings. Initially, this method of file download may be effective, but it has several disadvantages. Our copy will discuss the A-Z of the concept.
A peer can view your device's IP address each time you connect to them. Therefore, if hackers or law enforcement suspect that you are downloading files that are protected by copyright, they may target you.
While copyright laws differ from nation to nation and are constantly updated, it is quite simple to inadvertently violate them.
When Amazon found that illegal copies of George Orwell's 1984 were available on the Kindle store in 2009, they were forced to remove the offending copies from customers' devices.
BitTorrent will take a big toll on your home bandwidth if you intend to download a lot of movies. This may make it more difficult for you to use your device for other purposes, such as checking your email or having online conversations with friends. It will take longer to enjoy your files because many BitTorrent clients support capping download/upload speeds. A "fair usage" cap on the amount of data you can download may be implemented by your ISP, but you can also pay extra to speed up your connection.
You still need a place to store the files you download, even if bandwidth isn't a problem. System performance will suffer if you keep big files on your hard drive because they will take up available space. Of course, you always have the option to download files to a NAS device or external drive, but this takes more money and effort.
While not illegal, some networks and ISPs completely block the BitTorrent protocol in order to conserve bandwidth. This implies that while installing a BitTorrent client and visiting websites to download torrent files or magnet links is possible, using BitTorrent to download files will not be possible when you are connected to such networks.
To stay secure while torrenting, use a VPN. Your data will be encrypted during the establishment of a VPN server connection, which will eliminate the possibility that your network managers/ ISP will notice that you are downloading using BitTorrent or stop the download. It will be more difficult for hackers and other bad actors to target you because any peers who are connected will see the IP address of your VPN server rather than your device. However, a VPN is not always the solution to torrenting problems. To begin with, a few VPN services, such as ‘hide. me’ prohibit BitTorrent traffic on their free plans.
While this isn't always the case, some VPN service providers, like NordVPN, do in fact run dedicated servers for BitTorrent P2P downloads. If you have limited storage space on your home devices or a "fair usage" cap on the amount of data you download, using a VPN won't help either.
If you're good at do-it-yourself tech, you could build your own home server seed box using a Raspberry Pi and a connected hard drive. This is a great method to ensure that file downloads don't affect how well your
other devices' systems operate.
However, it can be challenging to set up properly, and it won't assist you if your ISP restricts or stops BitTorrent traffic. In addition, you will require a physical space in your home for the equipment you will need to purchase, as well as cash upfront.
If you have a computer that is specifically for downloading files through torrenting, using a virtual private server (VPS) can be an excellent way to manage your online activities. By renting server space for this purpose, you can create a seedbox that is equivalent to a VPS.
The benefit of selecting a seedbox over a basic VPS is that it already has specialised BitTorrent apps pre-installed and is optimised for fast downloads.
It's time to examine some of the numerous benefits of renting your own seedbox now that you've seen the disadvantages
of torrenting on your home computer and establishing your own home/virtual server.
A seedbox can be rented for as little as $2 per month, but external hard drives and home media servers can cost hundreds of dollars.
Seedboxes are meant to be simple to use, even though you can configure your own virtual private server. Web browsers are used by hosting providers to activate and manage default apps such as ‘Deluge’ and ‘Transmission’, which are carefully selected.
Companies offering seed boxes house their servers in massively parallel data centres. Files that could take hours or days to download on your home connection can typically copy over to your seed box in minutes because the majority of them are on 1 GB lines, and some even go as high as 40 GB.
If you have a computer that is specifically for downloading files through torrenting, using a virtual private server (VPS) can be an excellent way to manage your online activities. By renting server space for this purpose, you can create a seedbox that is equivalent to a VPS
The ability to alter plans to meet your needs is just another fantastic benefit of owning your own seed box. For instance, you can start with a $5 that only offers 50 GB of storage but as your downloads grow, you can adjust your plan to have more storage space e.g. 1 TB. For an additional fee, the majority of online seed box providers let you change the configuration of your box or begin a new subscription.
Networks and ISPs attempting to impede or prohibit BitTorrent traffic do not affect seedboxes. This is because you are controlling the download through your web browser, and it is happening directly to the seed box itself.
When a file is downloaded by your seedbox using BitTorrent, the IP address of the seed box itself—rather than your home device—is visible to any peers that are connected. After that, only the seed box provider and not anyone else can see your IP address if you download any files to your home device.
Since seed boxes function as servers, in essence, the majority provide you with
several options for accessing files after they've been downloaded to the box. These consist of standard HTTP downloads through your browser, as well as FTP, SFTP, and SSH.
Torrent servers known as "private trackers" keep track of the amount of data you download and upload, and then allot bandwidth appropriately. One advantage of private trackers is that, in contrast to public BitTorrent websites, they frequently contain files that aren't readily available elsewhere and media of higher quality.
The drawback of private trackers is that, because they require a continuous internet connection, it can be challenging to maintain a specific ratio of uploads to downloads from a home device.
Using a seedbox is a great way to take advantage of private trackers because your torrent client can remain connected all the time and peers will benefit from the large bandwidth. Since uploading data doesn't happen over your home connection, it won't count against any data caps that your ISP may have placed in place.
A seedbox is great for seeding your own files for the same reasons that it's great for using private trackers. Peers can download the file using a fast connection after you make your own torrent and point it to the file in the seed box. There will always be at least one seeder with a complete copy of the file because you are connected constantly.
Apart from to BitTorrent clients, many seedbox providers also include media server software like Plex or Jellyfin. This implies that you can use the files you've downloaded to create your own streaming media server using the Seed Box web interface.
Apart from to saving you time and hassle, streaming media won't clog the hard drive of your home device. You can access files whenever you want.
If you think a seedbox is right for you, take some time to research the various providers like SeedBoxes.cc or Giga-Rapid. Make sure you select the package that best suits your needs from the many offered by most providers.
In order to determine whether the service is a good fit for you, we advise beginning with a budget-friendly package that offers a modest amount of storage, like say 50 GB.
Although Seedboxes are simple to set up, it could take a day or so to receive your login information after registering. To install the apps you've selected, like BitTorrent clients, you might also need to click. Installing other programmes is possible with certain providers, though there might be limitations.
For example, you might only be able to install one kind of media server—like Plex—at a time. Check the support page of the provider if you encounter any issues. If you become utterly stuck, you can usually ask to have the seedbox reset to factory settings.
The seedbox website itself can be blocked by your ISP or network administrator, which can complicate matters even if they are unable to slow down or prevent files you download using BitTorrent. Whatever files you unintentionally download, such as. G. It is also possible to identify and intercept via unencrypted HTTP/FTP. Everybody with access to your records can also see the IP address of any devices you use to access your seedbox. Because of this, even when utilising a seedbox, we still advise signing up for a trustworthy VPN service.
Your home network will find it much more difficult to detect that you are using a seedbox as a result of the encrypted connection created between your devices and the VPN server.
Furthermore, your VPN server's IP
address will be the only thing your seedbox provider sees—not the IP address of your home device. See if the company that provides your Seed Box also has a VPN service if you want to save money.
Your connection will still be encrypted, so neither your ISP nor the network administrator will be aware that you are connected to the seed box itself. However, this won't hide your IP address from the provider.
According to experts, using seed boxes is a highly recommended method for torrenting files. Although it is not mandatory, seedboxes are known to be a safer alternative than using a BitTorrent client on your personal device. Additionally, they are cost-effective and easy to set up. Consider exploring different seedbox providers and starting with a free trial or inexpensive plan to determine if it fits your needs.
According to experts, using seed boxes is a highly recommended method for torrenting files. Although it is not mandatory, seedboxes are known to be a safer alternative than using a BitTorrent client on your personal device. Additionally, they are cost-effective and easy to set up
Cybersecurity
Analysis
The capacity of AI and ML to learn and adapt is one of their main advantages in cybersecurity
The financial industry is at the forefront of technological innovation at a time when digital advancements are dominating. Technological advancements have certainly enhanced efficiency and customer experience, but they have also made the industry more vulnerable to a growing threat of cyber risk.
The abundance of valuable information held by banks, insurance companies, and other financial institutions makes the financial sector a prime target for cybercriminals. Given the increasing frequency and sophistication of cyberattacks, protecting sensitive financial data has become essential. In the financial industry, cyber threats come in many forms, from ransomware attacks that encrypt important data in order to extort money to sophisticated phishing schemes designed to trick staff members into disclosing private information.
The ever-changing cyber threat landscape is made more complex by insider threats and state-sponsored attacks. Financial institutions must address and reduce cyber risks more urgently as they depend more and more on digital platforms for transactions, investments, and client interactions. Financial institutions must set up an extensive cybersecurity framework in order to successfully combat cyber threats. This calls for a multifaceted strategy that includes solid policies, ongoing employee training, and technology solutions, and installing sophisticated cybersecurity tools like firewalls, endpoint protection, and intrusion detection systems.
However, in the face of evolving cyber threats, traditional cybersecurity measures might not be enough on their own. To strengthen their cybersecurity defences, financial institutions are increasingly relying on machine learning (ML) and artificial intelligence (AI). These technologies provide dynamic and adaptive capabilities that let organisations quickly identify and
address cyberthreats. Large datasets can be analysed by AI and ML algorithms, which can then spot patterns and anomalies that conventional security measures might miss.
The capacity of AI and ML to learn and adapt is one of their main advantages in cybersecurity. Artificial intelligence-powered systems are able to adjust and enhance their threat detection capabilities over time as cyber threats become more complex. Maintaining an advantage over cyber adversaries who are constantly improving their strategies requires taking a proactive approach.
By using historical data, machine learning algorithms can also help predict possible threats, giving financial institutions the opportunity to proactively patch vulnerabilities. Any cybersecurity strategy must include the human element even if technological solutions are essential. Establishing a cyber-aware culture in financial institutions requires employee awareness campaigns and training initiatives. Phishing attacks are a frequent threat in which
Any cybersecurity strategy must include the human element even if technological solutions are essential. Establishing a cyberaware culture in financial institutions requires employee awareness campaigns and training initiatives
cybercriminals pose as reputable organisations in an attempt to fool employees into disclosing personal information. It is important to teach staff members how to spot and report such attempts.
In addition to internal training, collaboration and information sharing within the financial sector are essential for collective defence against cyber threats. Financial institutions can share information about vulnerabilities, attack patterns, and emerging threats by actively participating in threat intelligence-sharing initiatives. The
industry can respond to rapidly evolving cyber risks more effectively thanks to this collaborative approach.
Another essential component of reducing cyber risk in the financial industry is regulatory compliance. Globally, governments and regulatory agencies have put strict regulations in place to guarantee the security of financial data because they understand how important cybersecurity is. These rules, which frequently include instructions on data protection, incident reporting, and cybersecurity best practices, must be followed by financial institutions.
The idea of cybersecurity is growing beyond conventional methods as technology develops. Cybersecurity resilience, or an organisation's capacity to continue critical operations and bounce back swiftly from cyberattacks, is becoming more and more important. Financial institutions are currently concentrating on creating strong disaster recovery plans and
incident response plans in order to reduce the effects of cyberattacks and guarantee business continuity.
Financial institutions are also looking more and more into cyber insurance as a way to lessen the financial damage caused by cyber incidents. Policies for cyber insurance can cover monetary losses, legal costs, and reputational harm brought on by a cyberattack. Although it cannot take the place of a strong cybersecurity plan, cyber insurance can be a useful safety net that speeds up an organisation's incident recovery.
Technological innovation and the increasing interconnectedness of financial systems expose the financial industry to new and advanced cyber threats. For instance, cryptocurrency platforms have added a new element to the financial scene by making digital assets more appealing to hackers. As blockchain technology gains traction, financial institutions need to manage the distinct obstacles and security implications linked to decentralised systems.
In terms of cybersecurity, blockchain technology—which powers cryptocurrencies—offers both advantages and disadvantages. On the one hand, by lowering the possibility of a single point of failure, its decentralised structure can improve security. However, new attack vectors are introduced by smart contracts and the intricacy of blockchain networks. Financial institutions should investigate how blockchain can improve transaction security and transparency while also carefully evaluating and mitigating these risks.
Financial institutions also need to consider the Internet of Things (IoT) when developing their cybersecurity plans. The attack surface for cybercriminals grows as IoT devices—from connected point-of-sale systems to smart ATMs—become more commonplace in the financial industry. Concern over protecting these gadgets and making sure bad actors can't use them as entry points is growing. Financial
organisations must put strong security measures in place for IoT devices. Moreover, the shared responsibility model applies as financial services increasingly migrate to the cloud. Although financial institutions are in charge of protecting their data and apps in the cloud, cloud service providers offer secure infrastructure. Comprehending the shared responsibility model in its entirety and putting security measures like data encryption, access controls, and continuous monitoring into place are necessary for this.
The regulatory environment pertaining to cybersecurity is likewise changing. Governments and oversight organisations are realising that a more proactive and flexible approach to cybersecurity is required. Financial institutions may be subject to more stringent regulatory requirements and heightened scrutiny in order to guarantee the resilience of their cybersecurity frameworks. It is imperative for the financial sector to keep up with regulatory changes and to continuously adapt cybersecurity measures to meet changing standards.
The possible effect of geopolitical tensions on the financial sector is a growing concern in the field of cybersecurity. Statesponsored cyberattacks are a serious risk because they are intended to compromise financial systems or steal private data. Financial institutions need to consider the possible effects of global events on their cybersecurity posture and incorporate geopolitical risks into their threat intelligence and risk assessment procedures. In order to reduce cyber risks, cooperation between the public and private sectors is becoming more and more important. Financial institutions work with governments, law enforcement, and cybersecurity groups to exchange threat intelligence and plan countermeasures to cyberattacks. Public-private collaborations can strengthen the financial ecosystem's overall defence against cyberattacks.
Cybercriminals' strategies and tactics also advance with technology. An additional difficulty arises from the application of artificial intelligence, or adversarial AI, to offensive cyber operations. Adversarial AI is the process of creating complex and evasive cyberthreats that can elude detection through machine learning algorithms. Financial institutions need to make investments in AI-driven cybersecurity solutions that can recognise new and evolving risks in addition to detecting known threats. Both threat hunting and constant monitoring are crucial elements of a contemporary cybersecurity strategy. Financial institutions need to proactively monitor their networks for indications of possible threats by utilising various tools and techniques. By taking a proactive stance, organisations can lessen the possible impact of cyber incidents by identifying and neutralising threats before they escalate.
In the rapidly evolving landscape of financial technology, cybersecurity is crucial for safeguarding institutions from everlooming cyber threats. The relationship between innovation and risk highlights the crucial need for strong cybersecurity systems within financial institutions around the globe. With the increasing expansion of the digital world, the number of potential weaknesses also increases, making it essential to utilise a multifaceted approach that involves cutting-edge technologies, rigorous regulatory compliance, and collaborative efforts across various sectors.
Embracing artificial intelligence and machine learning can enhance defensive capabilities. Proactive monitoring and resilient disaster recovery plans can also strengthen cyber defences. In the face of escalating geopolitical tensions and evolving adversarial tactics, it is crucial for public and private entities to work together to protect the financial ecosystem against emerging threats.
Like other computer behemoths, Google now views generative AI as a tool for speeding and streamlining search
Google has been using the term "helpful" to describe the new features added to its search product, voice assistant, generative AI tool Bard, and even Pixel earbuds in recent years. If you search for the keyword "helpful" in Google's corporate news blog, you will find more than 1,200 entries.
However, Google's primary search engine is now less useful depending on what you're looking for. Google search is currently a "tragedy" that is "bloated and over monetised," according to one columnist.
It's "cluttered with adverts," according to The Financial Times, with more Yellow Pages than encyclopedia content. A former Google employee attributes Google search quality decline to the web itself, but Google still provides free access to the world's knowledge.
Furthermore, a recent analysis of product review results reveals that Google outperforms some of its rivals even if there are indications of worse quality results everywhere.
However, it only takes a team of investigators or the qualifications of an elite technologist to conduct a fast Google search and see that the majority of the results—at least the first few—are advertisements, with further clutter showing
From February 2024, a few new artificial intelligence (AI) features will be aiding Android phones, including Samsung's new Galaxy S24 phones and Google's Pixel 8 and Pixel 8 Pro
up below the digital fold.
Like other computer behemoths, Google now views generative AI as a tool for speeding and streamlining search. As a result, it is currently walking a tightrope between incorporating more complexities into its already cluttered user interface and making search more intelligent.
Part of the experiment includes its most recent announcements regarding generative AI on mobile search: Is it possible to improve the accessibility and convenience of Google search while maintaining the company's commitment to its current advertising strategy?
From February 2024, a few new artificial intelligence (AI) features will be aiding Android phones, including Samsung's new Galaxy S24 phones and Google's Pixel 8 and Pixel 8 Pro.
These features will allow search and ‘Google Lens’, the company's image recognition software, to be integrated directly into other phone apps. One of those features is Circle to Search, which enables you to quickly search an app's contents using touch
while selecting images, text, or videos. An overlay that shows at the bottom of the screen displays the results of your search.
In an early presentation, Google used a text message discussion between friends as an example. One friend suggested a restaurant, and the other friend was able to Click to Search it and get restaurant results without ever leaving the text messaging app. A further application scenario may involve stopping and circling a product you see in an Instagram video and searching for it, all from within the same app display. Because they let the user do searches without having to jump between apps, both of these use cases demonstrate a particular efficiency in search—a sort of helpfulness if you will. However, in addition to being useful for identifying wildlife, they also offer a clear commercial prospect, which makes them advantageous for Google's advertising company.
Google has verified that the dedicated ad spots on the results page would still display adverts for searches and purchases. Since the search overlay will only occupy a small
portion of your mobile device's screen, it could soon become less effective and more annoying if the results are advertisements.
Herein lies the role of generative AI: Rather than a list of links, a condensed answer might make more sense on a small screen. With a different input, Google's new AI-powered multi-search feature functions similarly to Circle to Search. Google Lens is a visual search feature available in the Google mobile app. It works by having you aim your phone at an object to get "AI-powered insights" in addition to the standard search results.
Google gave the following example using a board game: choose a game you're unfamiliar with, take a picture of it, and enquire as to how it's played. And an overview will be generated by Google's AI. Asking "How do I fix this?" pointing the phone to a malfunctioning device is an additional option.
Liz Reid, Vice President and General Manager of search at Google, says, "In my mind, this is about taking search from multi-modal input to really doing multimodal output as well."
She is referring to the different ways that people can interact with a computer or artificial intelligence model to potentially produce more relevant results.
"It really opens up a whole range of questions that you couldn't just ask Google before," she added.
AI-powered multi-search results won't require signing up for Google's SGE, or Search Generative Experience, a portal that gives early testers access to new AI capabilities, unlike Circle to Search. Any iOS or Android phone in the US running the Google app will be able to use the AIpowered multi-search feature. However, users of Google's SGE outside of the United States can also get a sneak peek of multisearch powered by AI.
These changes are gradual, but that is typical of Google's strategy for SGE, as the business has been testing some of its newest and most sophisticated artificial
intelligence search capabilities before making them available to a wider audience. Including early consumers in SGE allows Google some leeway if the product isn't quite right, in addition to providing it with extra data to train its AI models.
According to Reid, there probably won't be a "moment of light" when Google search as we know it is completely replaced by the SGE experience.
Instead, Reid says, the approach is more likely to involve "pushing the boundaries of what's possible and then thinking about which use cases are helpful and that we have the right balance of latency, quality, and factuality."
This approach to ushering in a completely new era of search is undoubtedly beneficial to Google. In a perfect AI world, searchers would also benefit more from it—on the web and mobile devices.
It seems that Google is introducing new AI-powered multi-search features to improve the accessibility and convenience of its search engine while maintaining its commitment to its current advertising strategy.
These features will be added to highend Android phones and will allow search and Google Lens to be integrated directly into other phone apps. One such feature is Circle to Search, which enables users to quickly search an app's contents using touch. Google's AI-powered multi-search function will also offer clear commercial prospects, which makes it advantageous for Google's advertising company.
However, the role of generative AI is to provide a condensed answer rather than a list of links on a small screen.
According to Reid, the approach to ushering in a completely new era of search is likely to involve "pushing the boundaries of what's possible and then thinking about which use cases are helpful and that we have the right balance of latency, quality, and factuality."
Source: Statista
Xiaomi revealed that since the launch of its flagship electric vehicle, the SU7, the car has received over 100,000 orders. Delivery was started by the Chinese smartphone manufacturer, which was a big step forward for its maiden leap into the EV sector.
Xiaomi CEO, Lei Jun, during a Beijing ceremony, announced that the official launch of the sporty car marked the beginning of a real revolution in the automobile industry. He was confident that China would support the establishment of a well-known business that would be similar to Tesla.
Early deliveries are based on a special edition of 5,000 cars that Xiaomi has already manufactured. This version is called the "Founder's Edition," and it comes with extra
accessories designed specifically for early adopters.
Xiaomi warned potential customers that wait times for the SU7, or Speed Ultra 7, could be as long as four to seven months, indicating strong demand for the sedan. The strong interest in the SU7 was evident in Xiaomi's stock, which saw a surge of up to 16%. The venture boasted a valuation of $55 billion at a share price of HK$17.34, surpassing the US automakers like General Motors.
Samsung unveiled its AI-powered Bespoke line of household appliances. The appliances will come equipped with the company's Bespoke AI, which can assist users in accessing controls via the SmartThings Application, as well as built-in Wi-Fi, cameras, and AI chips.
"We are introducing Bespoke AI, our next big innovation in home appliances which will ensure smarter living for Indian homes and reduce energy consumption, contributing to a greener planet. With our Bespoke AI-powered home appliances, consumers will
CEO Lei Jun announced that the official launch of the sporty car marked the beginning of a real revolution in the automobile industry
be able to customise their choices, get easy controls for elders and kids, and get seamless diagnoses for their home appliances. With the transformative power of AI, we are confident that Bespoke AI will strengthen our leadership in the digital appliances market in India," JB Park, President & CEO, Samsung Southwest Asia, in a press statement said.
According to Samsung, AI can help these appliances last longer and be more sustainable.
It used the example of how an air conditioner or refrigerator can alert users when an air filter needs to be changed or when the water filter needs to be replaced. However, it isn't immediately apparent why AI is necessary for either of these processes.
In the most recent WhatsApp beta, Meta added two new features: the ability to lock conversations on partner smartphones and the ability to make private remarks when sharing a story.
These features are currently accessible on WhatsApp beta version 2.24.8.4. As first reported by WABetainfo, it gives consumers improved chat security across all linked devices.
Before now, WhatsApp offered the option to passcode-lock individual conversations. However, up until now, only the primary smartphone could use this feature.
Users of Android smartphones running the most recent WhatsApp beta version can now at last lock conversations by creating a special passcode, even on connected devices.
It's crucial to remember that users must configure the same secret passcode on the primary device and all companion devices. Furthermore, WhatsApp locked chats can be secured or unlocked using biometric authentication.
Another helpful feature that will soon be available to WhatsApp users is private mentions. Users can use this feature to tell specific people about a status.
As of right now, the most recent iOS WhatsApp beta version supports this feature. The tag is only visible to the person who is mentioned in a story; other users cannot see it.
According to the terms of a proposed legal settlement, Google has consented to remove billions of records and submit to certain limitations on its ability to track users. By collecting user data even when users were browsing in "private mode," the tech giant was accused of violating people's privacy, and the deal attempts to settle this lawsuit, which was filed as a class action in the US in 2020.
A $5 billion in damages were sought in the suit. Despite disputing the claims, Google is in favour of the deal. In reaction to the lawsuit, it has already changed.
Outside of the US, the data deletion will be applicable as well. The company revised its disclosures to clarify that it continued to track user data even when users chose to search privately or in "Incognito" mode, shortly after the two sides announced
plans to settle the case in January 2024.
Because it does not save browsing activity on the machine being used, that mode offers a certain amount of increased privacy.
In the same month, the company announced that it had begun testing a feature that would automatically block third-party cookies— which are used to track user activity—for all users of Google Chrome.
By collecting user data even when users were browsing in "private mode," the tech giant was accused of violating people's privacy
Oracle has released an update to its database technology, aiming to improve the usability of its artificial intelligence technology.
The technology introduced in the update, known as Oracle Database 23ai, will make it simpler for chatbots and other emerging AI systems to locate data stored in corporate systems.
This new Oracle database can be searched by concepts or ideas expressed in natural human language, rather than just matching up keywords or phrases, thanks to a technology known as "vector search."
According to Juan Loaiza, executive vice president of mission-critical database technologies at Oracle, complex queries with numerous requirements or contingencies can benefit from the use of vector search technology. For instance, a traditional database system might find it difficult to comprehend
what a user is looking for if they are searching a database of used cars and want a sport utility vehicle with a specific mileage and colour. They may also prefer heated seats but are willing to give them up for a vehicle with a lower mileage.
"It can get quite complicated to figure out what’s in a document, figure out what matters. It’s been difficult to do in databases because they match one thing, and they’ll filter stuff out, but then you might have nothing," Loaiza said.
Apple announced that it will start charging for iPadOS apps downloaded through its App Store, after the iPad operating system was added to a list of essential services covered by EU tech regulations.
This is in addition to the recently introduced core technology fee. Even if they do not use any of Apple's
payment services or the App Store, the company announced in March that major app developers would have to pay a core technology fee (CTF) of 50 euro cents per user account annually.
The first one million user accounts would be exempt from this fee. The CTF is a component of a new set
This new Oracle database can be searched by concepts or ideas expressed in natural human language, rather than just matching up keywords or phrases
of fees associated with adjustments made to conform to the Digital Markets Act (DMA), which, among other things, mandates that Apple open up its closed ecosystem by permitting developers to distribute their iPhone apps directly to customers rather than through its App Store.
"The European Commission designated iPadOS a gatekeeper platform under the Digital Markets Act. Apple will bring our recent iOS changes for apps in the European Union to iPadOS later this fall, as required. The CTF will also apply to iPadOS apps downloaded through the App Store, Web Distribution, and alternative marketplaces," the company said.
