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TAX TALK: Upcoming changes in the GCC’s tax landscape and their impact on businesses
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BD 2.10 KD 1.70 RO 2.10 SR 20 DHS 20
FROM SUPERCARS TO SOFAS: This luxury auto brand has designs on your home
PUSHING THE BOUNDARIES NESTLÉ MENA’S CHAIRMAN AND CEO YASSER ABDUL MALAK REVEALS THE INNOVATION-FOCUSED STRATEGY DRIVING ITS SUCCESS
POWER
LETTERS 2025: HOW THE REGION’S C-SUITE ARE GEARING UP FOR THE YEAR
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Gulf Business CONTENTS / JANUARY 2025
07
The brief
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An insight into the news and trends shaping the region with perceptive commentary and analysis
31 Power letters 2025
Mark Mathew
The region’s most influential business leaders share their outlook for 2025, revealing the strategies and trends that we’ll see unfold during the year
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24 The way forward Nestlé MENA remains committed to shaping a future defined by positive change and a healthier, more sustainable world, shares chairman and CEO Yasser Abdul Malak gulfbusiness.com
January 2025
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55
Supplied
Lifestyle
Bugatti’s beauties: The auto brand’s first home store in Dubai features a range of stunning pieces p.56
Sustaining success: IHG Hotels & Resorts CEO Elie Maalouf shares insights on the group’s growth p.59
Ring leader: Take your pick from these three heavyweights from the world of wearable tech p.62
“Youth are the main pillar of all efforts to shape the Arab world’s future, and their active involvement is crucial in driving positive transformations toward growth, progress, stability and prosperity.” Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai
64 Getty Images
The SME Story
Editor-in-chief Obaid Humaid Al Tayer Managing partner and group editor Ian Fairservice Chief commercial officer Anthony Milne anthony@motivate.ae Publisher Manish Chopra manish.chopra@motivate.ae Group editor Gareth van Zyl Gareth.Vanzyl@motivate.ae Editor Neesha Salian neesha.salian@motivate.ae Senior feature writer Kudakwashe Muzoriwa Kudakwashe.Muzoriwa@motivate.ae Senior art director Freddie N. Colinares freddie@motivate.ae Senior art director Olga Petroff olga.petroff@motivate.ae
General manager – production S Sunil Kumar Production manager Binu Purandaran Production supervisor Venita Pinto Digital sales director Mario Saaiby mario.saaiby@motivate.ae Group marketing manager Joelle AlBeaino joelle.albeaino@motivate.ae
Cover: Freddie N Colinares
Follow us on social media: Linkedin: Gulf Business Facebook: GulfBusiness Twitter: @GulfBusiness Instagram: @GulfBusiness
HEAD OFFICE: Media One Tower, Dubai Media City, PO Box 2331, Dubai, UAE, Tel: +971 4 427 3000, Fax: +971 4 428 2260, motivate@motivate.ae DUBAI MEDIA CITY: SD 2-94, 2nd Floor, Building 2, Dubai, UAE, Tel: +971 4 390 3550, Fax: +971 4 390 4845 ABU DHABI: PO Box 43072, UAE, Tel: +971 2 677 2005, Fax: +971 2 677 0124, motivate-adh@motivate.ae SAUDI ARABIA: Regus Offices No. 455 - 456, 4th Floor, Hamad Tower, King Fahad Road, Al Olaya, Riyadh, KSA, Tel: +966 11 834 3595 / +966 11 834 3596, motivate@motivate.ae LONDON: Acre House, 11/15 William Road, London NW1 3ER, UK, motivateuk@motivate.ae
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January 2025
gulfbusiness.com
This issues’ Images, vectors and fonts credits: Getty Images / The noun project / Typography
Insights on how the region’s dynamic SME ecosystem is evolving
THE MAKING OF AN EXTRAORDINARY LEADER THE BUILDING OF A REMARKABLE NATION
ava i l a b l e at a l l m a j o r b o o k s t o r e s a n d o n b o o k s a r a b i a . c o m
www.motivatemedia.com
MOTIVATEBOOKS
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JAN 2025
FROM THE EDITOR’S DESK
IN 2025, THREE FORCES WILL COLLIDE: AI, TRUMP AND FISCAL POLICY”
J
anuary is the month when economic forecasters peer into the future and try to predict what lies ahead. They’ve been wrong plenty of times before, but one thing is certain: 2025 won’t be dull. This year, three forces will collide: artificial intelligence (AI), Donald Trump, and fiscal policy. AI is no longer a buzzword; it’s rewriting the rules of business. Sectors embracing AI are expected to achieve nearly fivefold productivity growth, according to PwC. By 2030, this technology could inject $20tn into the global economy, notes the IDC. Then there’s Donald Trump, back in the White House as US president - and ready to shake up geopolitics. His promises of tax cuts, infrastructure spending, and deregulation could spur growth. But the numbers are worrying: US debt is projected to balloon from its current level of 123 per cent of GDP to 143 per cent by 2035, according to estimates. Managing national debt will be Trump’s core challenge. But this will be tough in a
global environment where the “Great Fiscal Expansion” is underway. China, the world’s second-largest economy, is ramping up support for local consumption by raising pensions and medical insurance subsidies and expanding consumer goods trade-ins. Europe is embarking on similar measures. This comes as central banks worldwide look to lock in further interest rate cuts this year. Closer to home, Gulf states are navigating these trade winds while pursuing ambitious growth plans. GCC economies are forecast to grow by 4.5 per cent in 2025, with non-oil sectors expanding steadily, fuelled by booming tourism, transportation, and retail. Saudi Arabia’s newly opened Riyadh Metro is a symbol of the region’s continued ambitious development goals. As the GCC’s economic engine powers ahead, the global economic picture remains uncertain. The next stop? Progress - but only if we’re bold enough to seize it.
Gareth van Zyl, group editor
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January 2025
gulfbusiness.com
IN FOCUS: AI, DATA AND SUSTAINABILITY
The Brief
The region’s strategic investments and policies are setting new standards in innovation, fuelled by advancements in a broad array of technologies, including blockchain, IoT and AI
89%
believe investment in AI and automation has positively impacted profitability in the past 24 months
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Decarbonisation Sovereign Wealth Funds Taxation Investment Trends
08 10 14 16
JAN
25
70%
acknowledge that the skill-gap is now being addressed through advancements in AI
76%
of tech leaders in the UAE foresee AI revolutionising knowledge creation and leading practices
14%
believe concerns with compliance will slow down their digital transformation journeys Source KPMG: UAE tech report 2024
Bridging the gap between ambition and action Despite ambitious national agendas and sustainability commitments, GCC banks remain in the early stages of their ESG transformation p.12
gulfbusiness.com
January 2025
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The Brief / Decarbonisation
strategies, with some publishing their first ESG reports, emissions performance management (calculating and managing GHG emissions) is emerging as a crucial enabler to address these challenges. Local and global investors, and other key stakeholders, are raising their expectations for transparency in environmental reporting. Being able to demonstrate credible emissions management and clear carbon tracking will help companies across the Middle East better position themselves to attract investment, boost stakeholder trust, and gain a competitive edge.
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THE BUSINESS CASE FOR EMISSIONS PERFORMANCE MANAGEMENT
Building a greener future for the Middle East We explore how emissions performance management is paving the way for the Middle East’s urban projects
A
s countries across the region pursue their ambitious sustainability objectives, such as Saudi Arabia with its Vision 2030, urban development is gaining momentum as an enabler of the transition toward a more diversified and sustainable economy. Major projects are reshaping the landscape, incorporating cuttingedge sustainability practices and advanced technology in alignment with the broader goals of creating a greener, more innovative future. With two major global events — Expo 2030 and the FIFA World Cup 2034 — on the horizon, the Middle East and Saudi Arabia are preparing for an unprecedented global spotlight. While they are already making significant strides, there is an opportunity to further increase transparency and measurable progress towards sustainability goals. As more megaprojects develop their ESG and decarbonisation 8
January 2025
Emissions performance management has quickly evolved from a niche activity into a strategic asset for businesses, offering numerous advantages: Regulatory and risk management: It ensures compliance with future local and international climate regulations, standards and practices. These regulations emphasise higher transparency targets, reducing the risk of reputational damage from greenwashing or inaccurate reporting. Financial appeal: Investors are prioritising transparency and green investments. Companies that demonstrate effective emissions performance management practices are better positioned to attract capital. Brand and market competitiveness: Consumers have in fact indicated that certification and transparency around CO₂ savings, sourcing, and production processes enhance their willingness to pay a premium for green buildings. In an eco-conscious marketplace, this competitive edge will be crucial, especially as the Middle Eastern construction market is poised for rapid growth, with Saudi Arabia’s sector projected to rise from $70.33bn in 2024 to $91.36bn by 2029. CHALLENGES TO SUSTAINABILITY
Managing environmental data presents a significant challenge for organisations, especially as the volume of data continues to grow. Relying on manual tools and scattered systems can lead to inefficiencies and inaccuracies, making it difficult to track and report on sustainability metrics. Organisations must implement robust processes and systems to navigate this complexity. One of the primary challenges in emissions performance management is the absence of well-structured data collection processes and the difficulty in effectively implementing and integrating them into everyday business activities. This is particularly true for less mature companies that may lack the necessary systems and tools. Moreover, the absence of clear leadership or ownership within the organisation can lead to inconsistencies in tracking gulfbusiness.com
Edoardo Geraci and Ingrid Cornander are partners at BCG, Stefania Neglia is a project leader and Peter Jonathan Jameson is MD and a partner at Boston Consulting Group
key data. To address this, companies should focus on creating a comprehensive emissions performance management ecosystem — encompassing processes, tools, and people — which integrates seamlessly with daily operations. Additionally, emission factors, which are crucial for accurately calculating GHG emissions, often fail to account for the specific characteristics of certain sectors and regions. This oversight means that companies must develop customised databases that reflect their unique operational environments, further increasing the complexity of the task. Finally, the raw field data collected from various sources is often incomplete or unstructured, requiring significant cleaning and processing before it can be used in emissions estimations. This adds another layer of complexity, making it more difficult for companies to achieve reliable and accurate emissions performance management in a timely fashion. KEY LESSONS
Don’t wait for perfect data – Organisations should start emissions performance management even with incomplete or estimated data. Early action enables companies to identify gaps and refine processes over time. Such a pragmatic approach ensures that progress isn’t delayed by waiting for ideal conditions. Embed emissions performance management – Emissions performance management needs to be part of project planning and design phases. Incorporating it early allows for more precise data collection, whether through physical metres for utilities, procedures for tracking business travel, or methods to assess embodied carbon — the carbon footprint of materials used in the lifecycle of a building. Construction projects can minimise emissions from the start by monitoring the carbon impact of different materials and using the data in procurement decisions. Collective alignment of climate ambitions – Establishing and tracking carbon goals requires more than leadership buy-in. Businesses can implement effective systems to track and manage progress toward climate goals by ensuring that all employees are aligned with the broader strategy. Leverage technology – Emissions performance management should be approached as an evolving process
WITH TWO MAJOR GLOBAL EVENTS — EXPO 2030 AND THE FIFA WORLD CUP 2034 — ON THE HORIZON, THE MIDDLE EAST AND SAUDI ARABIA ARE PREPARING FOR AN UNPRECEDENTED GLOBAL SPOTLIGHT
gulfbusiness.com
from all perspectives, including technology. While starting with basic tools like Excel can be a practical first step, organisations should focus on steady progress to gradually integrate specialised software that aligns with the company’s broader IT ecosystem. Through dashboards and robust analytics, companies can derive insights that support business and operational decision-making throughout the project lifecycle, ensuring emissions performance management becomes a key enabler of sustainability and efficiency. TOOLS WILL HELP ANALYSE DATA IN TIME
Supplier engagement – Collaboration with suppliers, including contractors, consultants, and building materials providers, is essential, especially addressing Scope 3 emissions. This helps ensure accurate and comprehensive data is provided, enhancing accuracy and driving industry-wide sustainability progress. This collaboration can start by including mandatory requirements in tender documents, requiring suppliers to submit the necessary data for carbon accounting systems. Third-party verification and global standards – Engaging third-party auditors to verify emissions are typically considered at a more advanced stage. While not an immediate focus, it is important to consider for future improvements as it ensures alignment with international standards such as the GHG Protocol. This step reinforces the credibility of carbon reporting and positions businesses to be recognised by global stakeholders, enhancing trust and transparency. VALUE OF EMISSIONS PERFORMANCE MANAGEMENT IN THE MIDDLE EAST
This is an important moment for the Middle East and Saudi Arabia. As it seeks to meet global expectations for Expo 2030 and the World Cup 2034, its commitment to implementing credible ESG and decarbonisation strategies will define its success. As countries like Saudi Arabia build the future of their cities, emissions performance management will provide the backbone for informed decision-making, driving sustainability both within organisations and across the value chain, offering more than just compliance as it unlocks substantial business value. By investing in forward-thinking, holistic emissions performance management frameworks and fostering a culture of sustainability throughout organisations, companies across the Middle East are positioning themselves for long-term success. As these companies take the lead in driving sustainable urban development, their projects also stand to gain significant competitive advantages in the global market. January 2025
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The Brief / Sovereign Wealth Funds COMMENT
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Sovereign funds are selective in their investment partnerships, preferring a strategy that emphasises the importance of using their vast resources not just for gain and power but to address national and governmental priorities and boost the livelihood of citizens, improving areas such as education, healthcare, job creation, infrastructure development, and economic diversification.
A balancing act Sovereign funds are prioritising investment partnerships that align with national and governmental goals, seeking to leverage their resources strategically for both financial gain and societal impact
S
tability is the new global number one investment desire. In a world rocked by geopolitical turbulence stretching from Russia to the Middle East to the South China Sea and further enflamed and destabilised by environmental crises from wildfires to extreme storms, people want investments to be secure. For state governments and their sovereign wealth funds, including Saudi Arabia’s Public Investment Fund (PIF), investments must be shielded from chaos to secure long-term stability and thereafter foster domestic growth. 10
January 2025
SAUDI PIF’S GOLDEN AGE Founded in 1971 to develop key sectors of the Saudi economy, PIF was restructured in 2015 under Prime Minister and Crown Prince Mohammed bin Salman’s leadership, gaining autonomy and a pivotal role in driving Saudi Arabia’s Vision 2030 for sustainable economic and social progress. Over the years, PIF has made significant international investments in major institutions such as BlackRock, SoftBank, and Lucid Motors. However, a recent strategy shift has emerged. The fund’s holdings in US-traded stocks have decreased significantly, from $35bn at the end of 2023 to $20.5bn by mid-2024. The shift highlights Saudi Arabia’s greater attempt to strengthen and build its domestic economy, in line with Vision 2030, the country’s long-term plan to reduce its dependence on oil and create a more diversified, sustainable economy. Logically, the kingdom wants to ensure that its citizens benefit directly from its vast financial resources, but the shift also raises concerns about global ESG impacts, as the kingdom reduces international spending in sectors such as renewable energy and electric vehicles, both crucial industries in achieving global climate goals, and ones in which PIF used to invest in heavily. PIF is now prioritising investment in domestic mega projects such as Qiddiya (a Saudi entertainment mega projects company), New Murabba (a Saudi real estate developer), the Mukaab (a Saudi skyscraper project) and Oxagon (a floating part of the new city of NEOM) to name just a few. A future of smart cities powered by renewable energy and new industries such as education, mining, production, artificial intelligence, and tourism is projected and envisioned by this shift in investment strategy. SPEARHEADING SUSTAINABLE GROWTH PIF’s move towards domestic investment is a gulfbusiness.com
Dr Ana Nacvalovaite is a research fellow at the Centre for Mutual & Co-Owned Business, Kellogg College, Oxford University
necessary response to national priorities, but sovereign funds committed to the global markets must maintain a balance between international and local investments. A balance allows SWFs to capitalise on international growth opportunities, flourish and grow, and bring back profits to reinvest into the home economy, as well as – as is the mandate of many SWFs now – help finance sustainable change worldwide. All SWFs have their own mandates, which vary. Norway’s Government Pension Fund Global, the world’s largest SWF, heavily invests in international markets but is specifically forbidden from investing inwardly. Norway’s infrastructure benefits from the returns of the fund, and as a result, the country has one of the best national welfare systems globally, one which secures long-term social benefits for its citizens. Singapore’s Temasek Holdings, on the other hand, balances its global investments with a focus on strengthening local industries such as technology and infrastructure. Temasek ensures that domestic businesses are adequately funded so that Singaporean companies can grow and compete on the global stage. Whatever their mandate, each investment methodology aims toward an investment strategy that promotes growth while ensuring that the fund’s home country reaps benefits. The PIF’s narrowing focus on the domestic front brings both vast opportunities and several risks, especially in the context of ESG. Projects such as NEOM, which aim to be entirely powered by renewable energy, signal a push towards sustainable – albeit flashy – development. The country has already made significant investments in green energy, with several large-scale solar and wind projects in development. Significant examples of the kingdom’s dedication to the green transition exist. Masdar’s collaboration with EDF Renewables and Nesma for the 1,100MW Al Henakiyah solar power project, which involves the development, financing, construction, and operation of a 1,100MW PV plant, is set to commence commercial operations in 2026.
PIF’S SHIFT AWAY FROM INTERNATIONAL MARKETS COULD HAVE BROAD-BASED IMPLICATIONS FOR GLOBAL ESG FUNDING. THE KINGDOM HAS BEEN A POTENT POT OF CAPITAL FOR MANY INDUSTRIES THAT ARE CRUCIAL TO THE GLOBAL JUST ENERGY TRANSITION, AND BUSINESSES USED TO FLOCK TO THE KINGDOM TO SECURE FUNDING. gulfbusiness.com
The 400MW Dumat Al Jandal project is expected to displace around one million tonnes of carbon dioxide annually, benefiting from a 20-year power purchase agreement with the Saudi Electricity Company, all guided by ACWA Power, the company in charge of most of the country’s renewable energy initiatives. If such projects are executed with sustainability at their core, Saudi Arabia could become a leader in green urban development, setting a global example for responsible large-scale investment. It must be noted that the focus on rapid domestic industrial expansion, especially in sectors such as tourism and mining, presents significant ESG challenges. The mining industry has several significant negative environmental impacts, likely leading to water contamination and biodiversity loss, and the pursuit of economic growth through mining could undermine the Kingdom’s broader sustainability goals. RELENTLESS FORAY INTO GLOBAL MARKETS Governance remains a challenge. The PIF’s centralised decision-making structure may limit transparency and the involvement of independent stakeholders, and the top-down and, at times, opaque nature of Saudi governance could stand in the way of consistent and transparent application of ESG principles across all investments, especially when PIF is attempting to balance long-term sustainability and income with rapid domestic growth. PIF’s shift away from international markets could have broad-based implications for global ESG funding. The kingdom has been a potent pot of capital for many industries that are crucial to the global just energy transition, and businesses used to flock to the kingdom to secure funding. A decrease in Saudi investment will slow progress toward global climate goals, especially in the current geopolitical climate as other regions face tightening liquidity and economic uncertainty. Yet, every change offers an opportunity, and this shift could also create opportunities for other state investors to step into the void left by PIF. Neighbouring funds, such as the Qatar Investment Authority (QIA), have recently increased their international investments, particularly in green energy and technology, as part of their commitment to sustainability. Wealth funds evolve, and as they do, they face the challenge of balance. Given the huge power of these investment vehicles, it is for the good of the world when they healthily balance ambitious domestic development goals with global ESG responsibilities. We must hold out hope that as PIF turns inward, ESG is not pushed out. January 2025
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The Brief / ESG Agenda COMMENT
Getty Images/Surasak Suwanmake
Sustainable finance, green operations
Why it’s time for GCC banks to advance their ESG agendas
M
ost recently, developed countries pledged to contribute at least $300 bn a year till 2035 after two weeks of intense negotiations at COP 29 conducted in Baku. However, while this is an important achievement in bridging the financing gap to combat climate change, the deal has been highly criticised by the developing nations as extremely insufficient. Environmental and financial concerns are just part of the picture. Social impact and governance are also under scrutiny from a wide variety of stakeholders seeking responsible action from organisations regarding people, planet, and profits. Banks have to play an essential role in closing the financing gap by providing services that boost
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January 2025
financial flows to sustainable development and mitigate the impact of climate events by rebalancing risk and maintaining stability. In the GCC, national agendas have pushed ESG to the forefront for banks. Programmes such as the Middle East Green Initiative and the Abu Dhabi Sustainable Finance Declaration emphasise this commitment. Additionally, most of the central banks in GCC already issued or are in the process of developing ESG guidelines for the banks. Providing financial support for nations’ sustainability agendas is a key priority for banks, but how are they doing in their own operations? Our survey of more than 100 banking executives across the region set out to uncover the answers. BANKS ARE BEHIND THE CURVE IN THEIR OWN RACE TO SUSTAINABILITY The first major finding from our survey is that ESG is still at a relatively early stage in GCC banks. Though banks start to acknowledge their role in the gulfbusiness.com
Naman Sharma is a partner, and Nataliya Gorbunosova, is a manager at Financial Services Practice at Kearney Middle East
ecosystem (48 per cent of our respondents recognize it up on ESG, it means entering gradual transformathe importance of getting innovative “green” prodtion territory building on existing progress and iniucts), only 12 per cent have launched their own offertiatives — albeit a transformation that will continue ings in this category. to evolve over time. Here are some of the areas that When it comes to social responsibility and combanks need to shift their focus to initiate their jourmunity engagement, with deep-seated cultural ney towards sustainable future. influences that value generosity and giving prevalent across the GCC, its banks are playing their part What should banks and financial institutions do? Begin by positioning ESG goals and initiatives in line in giving back to society, with 48 per cent commitwith broader national sustainability and ESG objected to fostering social responsibility and commutives, leveraging existing initiatives. nity engagement. Engage with customers, employees, Lastly, a similar number (45 per and other stakeholder groups at every cent) of banks told us that how they stage of the ESG journey do business continues to be a key INCREASE ACCOUNTABILITY Learn customer preferences to prostrategic priority. Banks across the gress along the ESG journey through region are already known for having FOR THE LEADERSHIP, targeted surveys and market research. robust, well-established governTYING PERSONAL Build new sustainable prodance frameworks and strong ethiucts, including green bonds or sukuks, cal standards; now they are using PERFORMANCE AND and reward customers for making ESGthese capabilities to make sure that friendly choices. they can build trust and credibility REWARDS TO in how they approach sustainability. SUSTAINABILITY, SHOWING How should banks and financial Despite having clear ESG ambiinstitutions do it? tions and priorities, banks across the EVERYONE THAT THE Increase accountability for the leadregion are still struggling to get off BANK’S LEADERSHIP ership, tying personal performance the mark. We found that some funand rewards to sustainability, showing damental transformation challenges ARE NOT ONLY SAYING everyone that the bank’s leadership are at the heart of the matter, such THE RIGHT THINGS, BUT are not only saying the right things, as lack of stakeholder awareness and but they also have skin in the game. engagement (40 per cent of respondTHEY ALSO HAVE SKIN Build internal capabilities and estabents), lack of clear sustainability IN THE GAME. lish ESG center of excellence from the goals (38 per cent of respondents), outset. This will create focus and dedilimited internal knowledge and cated effort as you get the ball rolling capabilities (33 per cent of respondwith your ESG plans. ents) and resistance to change within Forge partnerships with specialised firms levertheir own organisations on ESG matters. aging AI to build ESG data intelligence allowing to address portfolio carbon footprint COVERING ALL THE BASES Create an ESG culture and mindset. Fostering a culThere’s really no time to lose for banks on sustainature where everyone naturally thinks “sustainabilbility. It’s also clear that for any bank to really switch ity” and behaves accordingly will take time, effort, and focus. When it comes to social responsibility and community engagement, with deep-seated cultural influences that value generosity and giving prevalent across the GCC, its banks are playing their part in giving back to society, with
48 per cent committed
to fostering social responsibility and community engagement
gulfbusiness.com
KEY TAKEAWAYS Banks have some way to go before their own ESG efforts match up to the sustainable finance they provide for other organisations and institutions. There’s no lack of ambition when it comes to meeting the sustainability agenda, but decisive action is needed for banks to come out of react mode and into a more regenerative mindset. Core transformation principles will be key, along with an acceptance that this is a long-term calling rather than a route to quick ROI. January 2025
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The Brief / Taxation COMMENT
Getty Images/Westend61
UAE’s Economic Vision 2030, have driven the introduction and expansion of taxation frameworks.
GCC tax landscape set for major shift in 2025 We explore the upcoming tax developments in the region taking effect this year, and what they mean for businesses operating in the GCC
T
he Gulf Cooperation Council (GCC) countries, traditionally known for their low-tax environments, have undergone significant transformations in their tax regimes over the past years. Historically reliant on oil revenues to sustain their economies, GCC nations have maintained minimal taxation systems for decades. However, declining oil prices and the need to diversify revenue streams, in alignment with strategic plans like Saudi Arabia’s Vision 2030 and the 14
January 2025
WHAT’S ON THE HORIZON As we begin 2025, several developments are expected to reshape the tax landscape across the Gulf, marking a paradigm shift in fiscal policy. The recent implementation of corporate tax in several GCC countries, such as Saudi Arabia and the UAE, has set a precedent for others, many of which are accelerating the adoption of similar frameworks. Saudi Arabia, which already taxes foreign-owned entities, may expand its corporate tax scope to include a broader range of sectors or implement more uniform tax rules. Oman and Bahrain are exploring taxation systems to reduce their reliance on hydrocarbons, while Kuwait has introduced a draft Business Profits Tax Law proposing a 15 per cent corporate income tax. This new tax will initially target multinational corporations and Kuwaiti companies with international operations, exempting businesses with a turnover below a threshold of KWD1.5m. Implementation is scheduled for January 2025, with advance payments deferred to 2026 and broader applicability from 2027, reflecting a phased approach to achieving fiscal sustainability. ALIGNMENT WITH GLOBAL STANDARDS The GCC’s alignment with international standards has been a defining feature of its recent tax reforms. Countries are committing to the OECD/G20 Inclusive Framework on BEPS 2.0 and implementing Pillar Two, which introduces a global minimum corporate tax rate of 15 per cent. Historically, the GCC’s low tax rates have been pivotal in attracting foreign investment. However, the adoption of BEPS measures underscores the region’s commitment to fostering fair global tax practices while advancing economic goals. The diversification of revenue streams is further evidenced by Kuwait’s draft tax law, which includes mechanisms such as a 5 per cent withholding tax on payments to nonresidents and strict penalties for late tax payments. This shift is not limited to corporate taxation. The growing digital economy in the Gulf, supported by flagship projects like Saudi Arabia’s NEOM and the UAE’s tech-driven free zones, presents unique gulfbusiness.com
Shamma Al Falahi is a partner and head of the Tax Department at BSA Law
challenges in areas such as e-commerce taxation, digital services taxation, and permanent establishment risks. INTRODUCTION OF DMTT A significant development in the region is the introduction of the domestic minimum top-up tax (DMTT). Initially announced by the governments of Bahrain and Kuwait, the UAE has now followed suit, planning to implement this amendment effective January 2025. The DMTT aligns with the OECD’s Pillar Two framework, mandating a 15 per cent global minimum corporate tax for multinational enterprises (MNEs) with consolidated revenues exceeding EUR750m. This move highlights the UAE’s commitment to adhering to international tax standards while maintaining its reputation as a competitive global business hub. For MNEs operating in the GCC, this underscores the urgency of reviewing their tax structures and compliance strategies to adapt to the new regime. Transfer pricing regulations, a relatively new concept in the region, are anticipated to gain momentum in 2025. Saudi Arabia and the UAE already have robust transfer pricing regimes, and other countries may follow suit. Tax authorities are enhancing their focus on compliance with transfer pricing regulations, requiring businesses to adopt stricter documentation standards and prepare for audits. This development emphasises the importance of arm’slength pricing and accurate profit allocation among related entities. Discussions around harmonising VAT rates across GCC countries are also gaining momentum. While disparities in VAT rates exist, uniformity would simplify compliance for businesses operating across multiple jurisdictions in the region and enhance regional consistency. Harmonising VAT rates across GCC countries could also support any future plans to implement a free trade agreement. As environmental sustainability becomes a cornerstone of national development strategies, 2025 may witness the introduction of additional taxes, such as carbon taxes, or incentives for renewable energy investments. These measures align with
DISCUSSIONS AROUND HARMONISING VAT RATES ACROSS GCC COUNTRIES ARE ALSO GAINING MOMENTUM. WHILE DISPARITIES IN VAT RATES EXIST, UNIFORMITY WOULD SIMPLIFY COMPLIANCE FOR BUSINESSES OPERATING ACROSS MULTIPLE JURISDICTIONS IN THE REGION AND ENHANCE REGIONAL CONSISTENCY.
THE DMTT ALIGNS WITH THE OECD’S PILLAR TWO FRAMEWORK, MANDATING A 15 PER CENT GLOBAL MINIMUM CORPORATE TAX FOR MULTINATIONAL ENTERPRISES (MNES) WITH CONSOLIDATED REVENUES EXCEEDING EUR750M
gulfbusiness.com
global trends and reinforce the GCC’s commitment to addressing climate change. Tax authorities in the Gulf are also embracing digital transformation, investing in technologies like e-invoicing systems to streamline tax administration and improve compliance monitoring. Saudi Arabia’s e-invoicing system is already mandatory, and the UAE has issued a federal decree amending specific provisions of the Tax Procedures Law in relation to e-invoicing as of November 2024. Other GCC countries are expected to follow. REPORTING STANDARDS IN FOCUS While direct taxes on individuals remain rare in the GCC, governments are intensifying their analysis of high-net-worth individuals and family offices to meet global transparency standards. Reporting obligations under frameworks like the Common Reporting Standard and the Foreign Account Tax Compliance Act are expected to increase, ensuring greater accountability and alignment with international expectations. These sweeping changes highlight the growing complexity of the tax environment in the Gulf. Businesses and individuals operating in the region must adopt proactive strategies to navigate the evolving landscape effectively. Reassessing corporate structures, investing in technology for digital compliance, and engaging with tax experts will be critical for optimising tax efficiency and mitigating risks. The anticipated tax developments in the GCC for 2025 reflect broader economic shifts and global alignment, presenting both challenges and opportunities for businesses and investors. While the expanding tax frameworks may initially appear daunting, they signal the region’s commitment to fiscal sustainability, economic diversification, and alignment with global standards. For businesses and individuals willing to embrace these changes and adopt robust planning measures, the evolving tax landscape offers significant potential for growth and stability. January 2025
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The Brief / Investment Trends
Macro drivers: Actively navigating change and complexity in 2025 We look at the key macro drivers that investors must navigate this year and beyond, as well as the importance of actively positioning for a brighter investment future
T
he world is changing — and changing fast. With this rapid pace of change comes increased complexity for investors. Gone are the days of a rising tide lifting all boats — and of relying on passive index allocations to provide positive returns. We recognise it, and our clients understand it. In the many conversations we have with clients around the world, one thing is clear: Most expect to see increased volatility in markets in 2025 and beyond. We share that view and acknowledge the complexity in positioning portfolios for the macroeconomic drivers shaping the world. MACRO DRIVERS MATTER There are three instrumental macro drivers accelerating change. These are long term in nature and ever present in the world around us, so they are not surprising in and of themselves. 16
January 2025
I highlighted the drivers in my 2024 outlook, and a year on, the trends have only become more entrenched. They tie to evolving client needs and how the asset management industry must shift to meet them. We therefore work tirelessly to understand in detail the implications of these drivers for our clients’ portfolios. 01. GEOPOLITICAL REALIGNMENT Our 2024 Investor Survey highlighted nervousness around geopolitics, with 72 per cent of investors reporting it was among their top concerns. There is no doubt geopolitics is shaping markets more than ever before, making it an increasingly important investment lever. 2024 was an election year around the globe, resulting in new leaders but also exposing heightened social friction and unrest. Relationships between superpowers have been recast, new alliances are forming, tensions increasing, and conflict and wars escalating. Changes in political leadership and policy have meaningfully impacted trade and redirected global supply chains, forcing the emergence of new relationships as well as manufacturing models. We believe it is impossible to invest successfully without understanding the political environment. Investors must ask themselves: Am I investing in a gulfbusiness.com
Ali Dibadj is the CEO at Janus Henderson Investors
country that is pro-business? Is this industry supported by policymakers? Does the political backdrop allow for access to private capital markets, and where are the most compelling opportunities? Is a company structured to fairly benefit shareholders, is it able to adapt to regime changes, and can it thrive regardless of the political backdrop? These are just a few of the questions that in-depth active research can help answer on behalf of investors. 02. DEMOGRAPHIC SHIFTS This is not a new theme, but it is an important one, because it is happening now. We know populations in higher- or middle-income countries are getting older, and we know birthrates are slowing to the extent that some forecasters have the world population actually shrinking in the not-too-distant future. Future growth will come from Africa, and to a lesser extent Southeast Asia, with 25 per cent of the world’s population forecast to be African by 2050. In 20 to 25 years — well within the time horizons of investors we serve — the growth engines and consumption patterns of the world will look very different to today, which in turn will impact investment opportunities and allocation strategies. Healthcare and technology are the standout examples. Which drugs, treatments, and devices will improve lives in an ageing population? How will technology continue to change the workforce and societies at large? Sustainability will also play a part: are companies today acting responsibly for a brighter tomorrow? Many aspects of how we live and work have already changed in the post-Covid world, from the transport we use to the buildings we inhabit to the technology embedded in our daily lives. Product preferences and consumption practices have also morphed. Within our own industry the change is evident, with strong appetite for exchange-traded fund structures, model portfolios, less “traditional” vehicles, and asset management partners who can harness the power of disruptive financial technology. 03. COST OF CAPITAL The cost of capital is significantly higher than it was through the last decade, and we expect it to stay that way. This, of course, has major investment implications. For one, fixed income as an asset class is attractive again, offering compelling yields and return potential along with renewed diversification benefits to suit different risk profiles. Within private markets, investment teams with the right expertise can now capitalize on opportunities as banks retrench, downsize, or divest assets amid higher rates. gulfbusiness.com
But the higher cost of capital is not just about the returns available; it also means quality companies and challenged firms will increasingly perform differently. When the cost of cash was zero, funding remained readily available, even for poorly run companies. From here, a distinct gap should emerge between the “haves” and “have-nots”. In turn, we believe in-depth fundamental research that separates the winners from the losers can result in meaningful outperformance from the most experienced and skilled investors. Alternative strategies can also be deployed to capture performance from companies and structures that struggle in this new environment, and overlays can be applied with the intent of realising gains from volatility and adjusted trading patterns. With many investors looking to again put cash to work, complexity can be daunting. But with the right expertise, it presents exciting opportunities for active investors. CLIENTS SHOULD EXPECT MORE FROM THEIR ASSET MANAGERS Against this new backdrop, the needs of our clients — and their clients — are changing. People expect more, and we’re proud to be working in partnership to deliver just that — including access to more asset classes, geographies, sophisticated strategies, diverse product vehicles, and blended outcome-driven solutions. We’re also applying new technologies and tools to continue enhancing our investment approaches. But importantly, while innovation helps shape the solutions we provide, it is the long-enduring qualities of truth, trust, and stability that we believe will ultimately determine success.
KEY TAKEAWAYS Rapid global changes are increasing complexity and market volatility. Active management is essential for navigating these shifts and identifying opportunities effectively. Geopolitical, demographic, and capital cost changes will shape markets in 2025 and beyond. In-depth fundamental research is crucial for identifying quality investments and sectors poised for growth. Evolving client needs demand diverse, sophisticated strategies from asset managers. Truth and trust form the basis of partnerships that adapt to changing conditions.
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Redefining capital markets ATME CEO Alex Lola shares insights into the future of real-world asset tokenisation and digital asset investments
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egulated by the Central Bank of Bahrain, ATME is empowering businesses to raise capital more efficiently while opening up new opportunities for investors. In this insightful conversation, Alex Lola, CEO of ATME, shares his vision for the future of digital asset exchanges, the security of ATME’s platform, and the exciting growth potential in asset tokenisation.
Introduce us to what ATME does and how the company fits into the evolving landscape of capital markets. ATME is a licensed digital asset exchange regulated by the Central Bank of Bahrain (CBB). We connect businesses seeking new funding channels with investors looking to diversify into alternative investments. ATME opens the door to capital markets for more enterprises by enabling them to raise capital more quickly and at a lower cost through the tokenisation of real-world assets (RWAs). This provides an alternative to traditional methods of raising capital, such as issuing bonds, which are often costly, time-consuming, and require large-scale funding. Through fractionalisation, we enable investors to access a broader range of alternative assets previously unavailable through traditional markets. What makes RWA tokenisation a game-changer for businesses and investors? Tokenising real-world assets offers
businesses and investors a new approach to capital markets participation. Tokenisation enhances accessibility and liquidity by lowering investment thresholds. For instance, high-value assets like metals or various types of private equity can be fractionalised, allowing investors to participate with as little as $10,000. This lower check size attracts a broader pool of investors, which drives liquidity. With more participants able to trade smaller units of alternative assets, and with ATME’s secondary market, buying and exiting these assets becomes easier. Ultimately, this creates a new way of funding for businesses. How does ATME ensure the security of its platform for businesses and investors? The platform is built on a private blockchain and adheres to strict regulatory compliance processes, including rigorous know your customer (KYC) and anti-money laundering (AML) checks to ensure that only verified participants can access and interact within the platform. A regulated private blockchain brings other significant advantages. For
example, tokens issued by ATME serve as legally binding, fungible and tradable securities. Transactions are governed by smart contracts, which automate execution according to pre-set rules, reducing potential errors. Additionally, the data on the blockchain is immutable and traceable. How does ATME support businesses to ensure a seamless tokenisation process? Technology is just one aspect of our value proposition to businesses. We go the extra mile by providing advisory throughout the tokenisation process: from deal structuring to token minting and token distribution. Our team works closely with each client to achieve a faster time-to-market. This hands-on approach allows businesses to navigate tokenisation while effectively focusing on their strategic goals. Which asset classes hold significant potential for growth in asset tokenisation? How is ATME tapping into these opportunities? In our experience, private debt and private equity are among the asset classes that have significant growth potential through tokenisation. We are currently focusing on developing these segments due to their high market demand. Additionally, we are exploring opportunities in real estate and commodity markets. What are ATME’s long-term goals in the capital markets space? ATME was founded with a mission to transform capital markets by seamlessly connecting businesses seeking funding with investors pursuing alternative assets. With cutting-edge technology and forward-thinking regulatory backing, ATME is well-positioned to drive economic growth within the region and beyond.
In our experience, private debt and private equity are among the asset classes that have significant growth potential through tokenisation.”
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HONOR Magic7 Pro: Revolutionising performance with AI Designed to cater to users who demand more, the Magic7 Pro introduces a new era of mobile innovation with its advanced AI-powered MagicOS 9.0, state-of-the-art camera system, powerful battery and immersive display
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hether you’re a tech enthusiast, a photography lover, or someone seeking long-lasting performance, the HONOR Magic7 Pro sets a new standard in the smartphone industry. At the core of the HONOR Magic7 Pro lies MagicOS 9.0, the world’s first all-scenario AI operating system. The system has been meticulously designed to provide users with a seamless, intuitive experience. A standout feature of MagicOS 9.0 is Magic Portal, an AI-driven service that understands your needs and makes personalised recommendations based on your activities. Whether you need entertainment suggestions, city landmarks, or movie IPs, Magic Portal tailors its suggestions to ensure you’re always a step ahead. For professionals, the HONOR Notes suite provides powerful AI-powered tools, including Real-time Transcript, AI Summary, AI Minutes, and Smart Layout, ensuring that meetings are organised and efficient. Additionally, the AI Eraser and AI Extraction tools in the Magic7 Pro elevate the photography experience, allowing users to easily remove unwanted elements from photos or extract key objects for further editing.
A NEW ERA IN MOBILE PHOTOGRAPHY The AI Falcon Camera System is undoubtedly the highlight of the Magic7 Pro. Comprising a 50MP Super Dynamic Falcon main camera, 200MP telephoto camera, and 50MP wide camera, this camera setup delivers exceptional image quality, sharpness, and colour accuracy. The 1/1.3” Super Dynamic Falcon Camera sensor ensures enhanced brightness, while the 1/1.4” telephoto sensor allows for long-distance photography with remarkable clarity. The Magic7 Pro offers several innovative photography modes, including AI super zoom (30x-100x), HD super burst (10 FPS for fast action shots), and AI enhanced portrait for stunning bokeh effects. Additionally, AI motion sensing capture and stage mode ensure that every
The AI Privacy Call feature dynamically adjusts volume levels to protect your privacy during sensitive discussions, ensuring that your conversations stay secure.
POWER AND PERFORMANCE Designed to handle the most demanding tasks, the HONOR Magic7 Pro is powered by the Snapdragon 8 Elite Mobile Platform, ensuring smooth performance and stunning graphics. Whether gaming, streaming, or multitasking, the Magic7 Pro delivers a lag-free experience, with 5850/5270mAh third-generation silicon-carbon battery providing all-day power. The device supports 100W wired and 80W wireless HONOR SuperCharge, enabling users to charge their device in record time. With the inclusion of the HONOR E2 Chip, users benefit from enhanced power management and improved battery health. IMMERSIVE AUDIO AND COMMUNICATION The HONOR Magic7 Pro doesn’t just excel in visuals — it’s also engineered for an immersive sound experience. The device comes with stereo speakers, integrated with an ultra-large sound cavity and spatial audio, delivering rich, deep bass for all types of media, including gaming and video calls. AI dual-way noise reduction ensures clear communication by filtering out background noise, making conversations feel more natural. Furthermore, the AI privacy call feature dynamically adjusts volume levels to protect your privacy during sensitive discussions, ensuring that your conversations stay secure. SLEEK DESIGN AND DURABILITY With a premium squircle shape and a symmetrical camera design, the HONOR Magic7 Pro exudes sophistication. The device’s edge-to-edge integration offers a modern, sleek look, available in Lunar Shadow Grey, Breeze Blue, and Black. Durability is another key feature. Built with HONOR NanoCrystal Shield, the device is 10 times more drop-resistant than regular glass, and with IP68 and IP69 ratings, the Magic7 Pro offers robust protection against dust and water, making it ideal for those with an active lifestyle. The HONOR Magic7 Pro is available for pre-order in the UAE starting January 15. For more details, visit: www.honor.com/ae-en/
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Time to be wary? Navigating markets in 2025 Will 2025 bring further opportunities, or are we overlooking potential pitfalls? With various scenarios in play, it’s crucial for investors to balance optimism with cautious risk planning
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any investors claim that, going into 2025, uncertainty is unusually high. However, marketbased risk indicators signal no concerns with the bellwether VIX S&P 500 volatility indicator well below its longer-term average. Are we missing something or are we simply complacent? There are reasons to look constructively into the coming year: inflation has abated in most economies, actually to the point that many central banks have started a new easing cycle; growth may be middling but no recession is on the horizon in any major economy. Valuations may be stretched in some asset classes – US equities come to mind – but the fundamental backdrop still allows for continued revenue and profit growth. Finally, at least this is the view of many rainmakers in the US, the policy of the incoming US administration will be progrowth which argues for a pro-risk investment stance. Going into the new year, this may indeed be a sensible
approach. Nevertheless, in today’s world there are trends and developments which can change the picture quickly and dramatically depending on the course of events. Hence it makes sense for investors to think in terms of risk scenarios around their base case and the conditions under which expected returns could be lower – or higher – than expected. WHAT CAN GO WRONG? Actually quite a few things could go wrong, starting with the US administration going down domestic and international rabbit holes in pursuit of ideological purity. This could take the form of outsized tariffs on many trading partners – friends or foes alike - and the ensuing economic damage. An even tougher approach to the already fraught relations with China would most definitely impact many innocent bystanders and dent market confidence. Caving in to Russia to stop the crisis in Ukraine, similarly, could damage the standing of the US in the world and have
Central bankers could also become more forthright in accepting moderately higher levels of inflation as their price stability target.
many investors wonder whether the current global financial system is about to disintegrate. Alternatively, the US Treasury market could take fright in light of the fast rising US budget deficit which could drift even higher amid generous tax cuts and limited room to reduce spending notwithstanding the efforts of a highpowered efficiency team. Outside the US, two risks stand out, namely France as the new sick man in Europe, rattled by political gridlock and an unsustainable trajectory of its public debt, and China where domestic gloom could lead to a downward spiral of falling prices and economic stagnation. In such a world, investors would be best advised to hunker down, stay in cash and hold on to gold. REASONS FOR OPTIMISM If the main scenario is one of middling growth and middling returns, the upside case revolves around pragmatism of the incoming Trump administration, intent first and foremost on making the president look good. Concretely, this could translate into more benign tariffs, only moderate expansion of the US budget deficit, and smart use of its international power. As a result, there could be progress towards a ceasefire in Ukraine and lower tensions with China. Europe, often slow to react but nevertheless able to act when faced with crisis, could start addressing some of the key weaknesses outlined in the recent Draghi report (innovation, energy, and defense). In turn, economic performance across the globe could prove to be materially stronger without unduly reviving price pressures. Central bankers could also become more forthright in accepting moderately higher levels of inflation as their price stability target. After all, reducing high levels of public debt through moderate inflation is less painful and economically damaging than through outright austerity. In such a positive macro context, real assets would be the investment of choice, mainly equities in more cheaply valued markets.
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COVER STORY NESTLÉ
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January 2025
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NESTLÉ MENA
COMMUNITY AT CORE, FUTURE IN FOCUS WORDS NEESHA SALIAN
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P H O T O S M A R K M AT H E W
NESTLÉ MENA’S JOURNEY IS MORE THAN A BUSINESS STORY — IT EXEMPLIFIES THE IMPORTANCE OF TRUST, INNOVATION AND COMMUNITY. AS THE COMPANY EVOLVES ALONGSIDE THE REGION, IT REMAINS COMMITTED TO SHAPING A FUTURE DEFINED BY POSITIVE CHANGE AND A HEALTHIER, MORE SUSTAINABLE WORLD, SHARES CHAIRMAN AND CEO YASSER ABDUL MALAK
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estlé has been a staple in our lives — a comforting, trusted presence, subtly intertwined into the fabric of our daily routines, memories, and even family traditions. From the robust and aromatic flavour of Nescafé and the quiet nostalgia of Nido to a hearty bowl of Maggi soup or noodles to the crispiness of a KitKat bar — the company’s offerings have nurtured generations across continents, through moments of joy and times of uncertainty, particularly in the Middle East. At the helm of Nestlé’s vast operations in the Middle East and North Africa (MENA) is Yasser Abdul Malak, a man whose own story is as deeply interwoven with the company’s journey as the brands it produces. “When I think of Nestlé, I think of a brand that people know and trust,” says the chairman and CEO with a reflective pause. DEEP ROOTS IN THE REGION
For Abdul Malak, who has worked with the company for 25 years, Nestlé’s presence in the MENA region isn’t just about profitability or market share – it’s deeply personal. He recalls an encounter from gulfbusiness.com
one of his trips where he visited a family in Lebanon. “I walked into their home, and there it was, a can of Nido sitting on the kitchen counter. The can’s exterior had faded, but you could tell it had been there for decades. It was also home to a small plant,” Abdul Malak shares with a smile. “It was a touching reminder of how our products are more than just food on a shelf.” The importance of this personal connection isn’t lost on him. Having worked his way up through the ranks at Nestlé, Abdul Malak’s leadership is rooted in a deep understanding of the region’s people, cultures and values. “When I travel across the region (which could be any of the 19 countries he oversees), I am constantly reminded of how integral Nestlé is to families. We’ve been here for over 120 years, adapting and evolving with the people we serve. And that’s what keeps me passionate about what I do.” Abdul Malak carries the weight of not just corporate aspirations, but also a deep responsibility towards consumers that have relied on the brand for more than a century. It’s a legacy that runs deep. “We don’t just operate here – we belong here. We’re part of these communities,” he says January 2025
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emphatically. His excitement is palpable, as he explains: “Nestlé has had a presence in the region since 1900, with Egypt and Lebanon being some of the first countries to sell the brand. We’ve adapted and stayed relevant by focusing on what our consumers want while maintaining our core values of quality, trust and innovation. Nestlé’s global scale, combined with our local presence, allows us to create tailored offerings such as Nescafé Arabiana – our branded Arabic coffee – and other region-specific products like shawarma and falafel mixes.” He adds: “Over time, we’ve made significant changes internally, shifting to a more localised leadership structure to ensure we are closer to our consumers and can make decisions faster. Adaptation is key, and we understand that to stay relevant, we must constantly evolve.” Nestlé’s strategy is clear, Abdul Malak says. “The key to success in the MENA region is staying connected to the local consumer. Understanding their needs, pain points and aspirations is vital. Nestlé’s strength lies in our ability to adapt our global offerings to local tastes while maintaining our commitment to quality. As long as we continue to build on that foundation — with a focus on sustainability, innovation and local engagement — we will continue to thrive in this dynamic region.” This approach has served Nestlé well; its presence across the region is by no standards modest. The food and beverage giant operates 24 factories across the MENA region, providing direct employment to more than 12,000 people. The portfolio of its brands – over 60 and counting – encompasses everything from dairy products to infant nutrition, coffee and creamers, confectionery, bottled water, breakfast cereals, culinary products, health science and pet care.
THE FOOD AND BEVERAGE GIANT OPERATES 24 FACTORIES ACROSS THE MENA REGION, PROVIDING DIRECT EMPLOYMENT TO MORE THAN 12,000 PEOPLE
CREATING SHARED VALUE
What underscores this growth is the commitment to creating shared value for the global brand that cherishes its local connections. Abdul Malak says, “We’ve made substantial investments in the MENA region. Over the past decade, we’ve invested over $1.1bn in manufacturing across the region. For example, in Dubai, we have state-of-the-art factories that export products to around 30 countries such as Australia, the US and Canada, and some Asian markets.”
NESTLÉ’S NEW, STATE-OF-THE-ART FACTORY, WITH A CAPACITY OF 15,000 TONNES ANNUALLY, IS SET TO OPEN IN 2025 IN SAUDI ARABIA
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The UAE is a key market for Nestle’s operations, with Dubai serving as the regional head office for the MENA region. The company’s office, currently based in Dubai South, will move to Expo City shortly. The company locally produces confectionery, dairy and culinary products, and coffee at two food and beverages factories in Dubai. It also operates two water manufacturing sites, one in Dubai and the other in Abu Dhabi. Saudi Arabia is also a focus market for Nestlé. The company has committed to investing SAR7bn over the next decade in the kingdom, focusing on human capital, local sourcing, and research and development. Abdul Malak says, “We are deeply committed to advancing scientific research in Saudi Arabia, collaborating with the government to explore locally sourced ingredients with future potential.” A core principle at Nestlé is sourcing locally, not only to strengthen the economy but to build resilience against global supply chain disruptions. “Our new, state-of-theart factory, with a capacity of 15,000 tonnes annually, is set to open in 2025 in Saudi Arabia. It will initially focus on infant food production and contribute significantly to local needs and food security. A major R&D focus for us is fortifying products for children, especially addressing widespread nutrient deficiencies such as iron, through products like Cerelac. We believe supporting children’s health is key to building stronger communities.” Showcasing Nestle’s operations across other markets in the region, Abdul Malak adds: “In Egypt, we have a strong manufacturing presence and continue to invest in expanding capacity and growth. Egypt remains a key strategic market for us, alongside our facilities in Morocco, Lebanon, Qatar, and Bahrain. Our footprint across the region has made a significant impact, and in the coming years, we are committed to increasing our investments. The Middle East represents a region of immense opportunity, with over half a billion consumers driving demand.” INVESTING IN YOUTH
Investing in human capital though is a priority for the leader. Abdul Malak understands that nurturing the next generation of talent is key to both Nestlé’s future and the region’s prosperity. “The youth in MENA are our greatest asset. The region has one of the gulfbusiness.com
COVER STORY NESTLÉ
youngest populations in the world, and they bring an incredible amount of energy, ideas, and innovation,” he says, his voice filled with enthusiasm. The company’s youth initiatives, like the Nestlé Academy in Saudi Arabia, are designed to equip young people with the skills they need to thrive in an ever-evolving job market. “Our Nestlé Academy is not just about upskilling – it’s about empowering young people to take ownership of their careers and their futures. In a region where youth make up such a large portion of the population, we must invest in their potential. We are also investing in the local startup ecosystem, working with partners like Monsha’at to foster innovation in the food service industry. In addition to the academy, Nestlé MENA has also been actively involved in programmes that focus on entrepreneurship and business leadership. Another initiative that has been pivotal to Abdul Malak’s vision for youth engagement is Next Level (NxL). Launched in 2022 in partnership with L’Oréal, the virtual training programme equips young people with essential skills crucial to thrive in today’s dynamic and rapidly changing workforce, particularly in artificial intelligence (AI) and digitalisation. Since its inception in 2022, the programme has impacted more than 23,000 young individuals across the region. The recently launched Season 3 introduces new key partners, offering modules on AI, digital skills, green skills, entrepreneurship and more. In December 2024, Nestlé MENA launched the ‘Sustainability Heroes’ initiative in the UAE and Kuwait in collaboration with key partners from the government and private sectors, aiming to empower 200 university students in each country with essential business and entrepreneurship skills. “Another initiative we’re proud of is NesTalent, where we bring 15-20 fresh graduates into the organisation each year. This programme is vital because we not only offer them opportunities for professional growth but also listen to their ideas and encourage them to contribute,” shares Abdul Malak. The company’s priority on nurturing and developing talent is deeply integrated in its values, says Abdul Malak. “Our commitment to creating a positive work environment is something we take very seriously — it’s not just a slogan, it’s demonstrated in everything we do. External recognitions like being named a ‘Great Place to Work’ in the UAE, Saudi and Egypt, the ‘Best Place to Work’ in Morocco, and being recognised as a ‘Great Place to Work for Women’ in the GCC, are a testament to our efforts. gulfbusiness.com
WE’VE MADE SUBSTANTIAL INVESTMENTS IN THE MENA REGION. OVER THE PAST DECADE, WE’VE INVESTED OVER $1.1BN IN MANUFACTURING ACROSS THE REGION.”
“At Nestlé, respect for oneself, respect for others and respect for our community are core values that guide every decision. It’s not just about policies or HR initiatives; it’s about living these values every day. We believe that everyone in the organisation is responsible for HR. Everyone has a role in fostering a positive work environment. Our culture is built on trust, transparency, and collaboration. We also foster a deep connection to our people — there’s no hierarchy here that prevents us from connecting and learning from each other. Moreover, we’re pushing to become the most ‘fascinating’ organisation in MENA, and we’ve set up a MENA Council to gather insights from young employees to help make that happen. The idea is to continually evolve and make the workplace a place where people feel engaged, respected, and valued.” This collaborative approach has helped the company stay strong in the face of challenges, both geopolitical crises and economic pressures affecting the region. RESILIENCE AND RESPONSE
“The year 2024 has been another challenging one, but we’ve seen some great achievements. First and foremost, I’m proud of the exceptional team we have. Despite the intensity of challenges — global and local — the team has not only met our commitments but also had a positive impact on the community,” says the resolute leader. January 2025
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He adds: “We’ve continued investing in our brands, people, and sustainability initiatives. One of the standout moments was our ability to keep key products in stock throughout the global supply chain crisis. We did not have a single day of stockouts on essential products, which speaks to the agility and resilience of the team.” Reflecting on the lessons recently learned, Abdul Malak shares a candid perspective on the importance of humility and realignment. “We’ve made our mistakes, but what’s crucial is how we respond. At Nestlé, we don’t shy away from our challenges. We acknowledge them, learn from them, and then adapt. The key to sustained success is agility — the ability to pivot, to realign our efforts in the face of changing dynamics.” In an industry as competitive and dynamic as food and beverage, where consumer tastes evolve constantly, the ability to course-correct and stay ahead of the curve is vital. Abdul Malak emphasises that Nestlé’s success in the MENA region stems from its constant self-assessment and willingness to change when necessary. “I often tell my team that perfection is a process. We can’t afford to get comfortable. Every setback is an opportunity to refine our approach and come back stronger. The companies that endure are those that are not afraid to rethink their strategies, even when things seem to be going well.” Planning, strategy and teamwork were also key factors driving the company’s response to the crises in Gaza and Lebanon, highlighting the human side of Nestlé’s operations, which are often not public knowledge. “When the crisis in Gaza unfolded, we had to act quickly. Our number one priority was the safety and wellbeing of our people. But we didn’t stop there. We also stepped in to provide essential supplies to those in need,” he recalls. “Our employees in Lebanon, Egypt, Jordan, and beyond were quick to mobilise, providing aid and offering support to those affected. It was a moment of solidarity that showed us what it truly means to be a global company with a heart for local communities.” Nestlé has actively supported humanitarian efforts with a total donation of approximately $1.5m for medical assistance extended to Gaza. As part of the support for Gaza, Nestlé enabled the treatment of more than 1,000 children in Egypt in collaboration with the Ministry of Health and the Terous Foundation. Additionally, the company facilitated the air evacuation of 32 critically ill incubated infants from Gaza to Egypt for urgent care. Recognising the urgency, Nestlé also donated a fully equipped mobile hospital to the Jordanian Armed Forces to support medical relief efforts. “In Lebanon, we have contributed half a million dollars in partnership with local organisations such as the Lebanese Food Bank and Beit El Baraka, ensuring the distribution of one million meals to those in need,” shares Abdul Malak. The company also provided 1.5 million litres of water to those affected, recognising the scarcity and urgency of resources. “We supported the Lebanese Red Cross, which was in dire need, especially for critical emergency medical services. Internally, we encouraged our people to volunteer and donate, through our Helping Hands initiative, and the response was overwhelming. Whether it was in Egypt, Jordan, Lebanon, or Dubai, we saw incredible solidarity. It’s heartening to see how our teams rallied around the cause — what we call a ‘helping hand to Gaza, a helping hand to Lebanon’. 28
January 2025
“At the same time, we focused on ensuring that the team felt supported in these tough times. Acknowledging the emotional strain at the same time, we focused on ensuring that the team felt supported during this tough period. Considering the challenges was important, but we emphasised how, together, we were making a tangible impact.” This sense of solidarity is at the core of Abdul Malak’s leadership philosophy. He emphasises transparency, authenticity and a deep commitment to people — not just employees, but communities at large. A NEW DIRECTION
NESTLÉ HAS ACTIVELY SUPPORTED HUMANITARIAN EFFORTS WITH A TOTAL DONATION OF APPROXIMATELY
$1.5M AS MEDICAL ASSISTANCE TO GAZA
Undeterred by the challenges, Nestlé MENA’s chairman and CEO remains hopeful and optimistic about the future. Nestlé, under the guidance of its new global CEO Laurent Freixe, is entering a new era, one defined by greater efficiency, innovation, and a more sustainable approach to growth. Abdul Malak, along with his team in the MENA region, is fully aligned with this vision. “The appointment of Laurent as CEO has ignited a fresh energy within the company,” Abdul Malak reflects. “His vision for Nestlé is clear: Invest more in our brands, our people, and the communities we serve. And in the MENA region, we are fully aligned with this direction. Nestlé MENA is one of the top 10 geographies for the group, and will continue to play a key role in driving growth for the company. We are committed to innovation, to being a partner to our local communities, and to gulfbusiness.com
COVER STORY NESTLÉ
ensuring that our growth is not just financial but meaningful.” One of the key areas where Nestlé is focused is sustainability. From reducing the environmental impact of its manufacturing processes to investing in local sourcing, the company is dedicated to making a positive impact in the region. “Sustainability is not just a buzzword for us. It’s a core part of our strategy. Whether it’s through our work with local farmers in Egypt or our commitment to reducing plastic waste across the region, we’re making tangible changes that will benefit generations to come,” says Abdul Malak. HOPE FOR 2025 AND BEYOND
As the MENA region continues to evolve, so too does Nestlé. “The future is bright,” says Abdul Malak with conviction. “The MENA region is home to one of the youngest, most dynamic populations in the world. With Nestlé’s unwavering commitment to innovation, sustainability, and youth development, we are perfectly positioned to grow alongside this region and make a meaningful impact.” He elaborates: “I’m fortunate to be surrounded by some of the brightest minds — people who are passionate, creative and dedicated to pushing Nestlé to the forefront of innovation. That’s how we drive change.” Looking ahead, the company is primed to address emerging trends and challenges head-on. One of the most significant shifts is the rising demand for convenience, accelerated by Covid-19 and evolving lifestyles. More dual-income households, coupled with an increasingly fast-paced world, have made ultra-convenient products a necessity. Nestlé is responding by innovating
NESTLÉ, UNDER THE GUIDANCE OF ITS NEW GLOBAL CEO LAURENT FREIXE, IS ENTERING A NEW ERA
products that cater to this need while maintaining its commitment to health and quality. Another key trend is the growing focus on nutrition and preventive health. As consumers become more health-conscious and aware of the role food plays in wellbeing, Nestlé remains dedicated to providing affordable, nutritious options. “Food plays a crucial role in preventive health, and as a nutrition, health and wellness company, we’re committed to addressing malnutrition in the region with fortified products,” says Abdul Malak. This focus will continue to guide Nestlé’s strategy, ensuring that it meets the nutritional needs of a rapidly growing and evolving population. The rise of e-commerce and omni-shopping also presents new opportunities. Abdul Malak re-emphasises that Nestlé’s success in MENA is driven by more than just market trends. “Our focus on nutrition, sustainability and innovation helps us address the challenges that families face every day. It’s not just about selling products — it’s about improving lives. And that’s why we invest so heavily in the region, from our manufacturing facilities to our community programmes. We’re here for the long haul, and that’s what matters,” affirms the leader.
LEADERSHIP LESSONS: YASSER ABDUL MALAK NESTLÉ MENA’S CHAIRMAN AND CEO SHARES HIS MANTRAS FOR LEADERSHIP AND MANAGEMENT LEADING THROUGH challenging times has taught me a valuable lesson: As leaders, we face two choices — either we allow the situation to overwhelm us, or we take ownership and keep delivering, regardless of the obstacles. A true leader focuses on finding solutions and closing gaps, rather than justifying delays or setbacks. The second lesson is the importance of straight talk. In difficult times, sugarcoating only wastes time. Clear, direct communication is essential — it’s not about impressing others but about making progress together. Another critical lesson is balancing talent management. While it’s important to nurture and hold onto high performers, addressing low performers is equally crucial. A team thrives when it’s made up of people who elevate one another. Throughout my career, I’ve been fortunate to surround myself with incredible leaders
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and mentors. I’ve always sought to learn from people who are smarter, more experienced, or even older than me. Transformation is a constant journey. Change is inevitable and, especially in today’s world, it has no endpoint. At Nestlé, we’re unapologetically committed to continuous transformation – to becoming more relevant, stronger, and having a greater impact on our communities and people. One key aspect of change is speed and agility. We strive to move quickly, but we never compromise on quality or compliance. Speed is critical but so is getting the details right. Leadership at every level understands this balance, and I encourage my team to make decisions confidently. Mistakes will happen, but what matters is how we respond. Acknowledging
mistakes quickly and learning from them is vital. I always tell my team: I won’t blame you for making a mistake, but I will hold you accountable if you don’t make a decision when one is needed. I believe leadership is about continuous learning, and I’ve always sought to learn from those around me, whether it’s a mentor, my team, or even friends. It’s important to remain self-reflective and acknowledge areas where you can grow. Staying fit is crucial, especially in leadership roles. I’ve always believed in the idea of “fit to grow”. If I’m not physically and mentally fit, how can I expect my team to be? I make health a priority. I also encourage my team to prioritise wellbeing, as it’s important for long-term performance. You can’t sustain leadership effectiveness without taking care of that yourself.
January 2025
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BRAND VIEW
How UK firms can revolutionise the GCC’s construction and sustainable infrastructure sector
frimufilms/ Envato
By championing sustainable, low-carbon solutions, the UK is uniquely positioned to work in partnership with the GCC to achieve its ambitious infrastructure goals
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CC countries are rapidly diversify ing their economies, with infra structure and construction taking center stage in national transformation strategies. Megaprojects like Saudi Ara bia’s NEOM and Kuwait’s Al Mutlaa City illustrate the region’s ambitions for sustain able growth. The UK is uniquely positioned to support these goals, bringing its leadership in low carbon construction and infrastructure planning. As the first major economy to halve its emissionscutting them by 50 per cent between 1990 and 2022 while growing its economy by 80 per cent the UK showcases how sustainable practices drive economic success, according to the UK Greenhouse Gas Emissions Statistics and data from the Office for National Statistics. Additionally, according to Oxford Economics the UK is set to become Europe’s largest construction market by 2030, a testament to its expertise and innovation.
DELIVERING ON GCC MEGA-PROJECTS The UK brings together companies of all sizes as one ‘Team UK’ consortia to bid for global infrastructure contracts and deliver complex projects, by combining their expertise across all levels of the supply chain.
In 2024, UK Export Finance guaranteed an Islamic Murabaha financing facility for approximately $700m signed by Qiddiya Investment Company to finance the con struction of the Six Flags Qiddiya City theme park. At the end of June 2024, the UK’s exports of construction services from the previous 12 months stood at £3.9m, an increase of 24.1 per cent in current prices compared to the previous 12 months, reflecting growing global demand, including in the GCC. UK companies are renowned for playing a key role in the construction and management of megaprojects, including pavilions at Expo 2020 Dubai, offering advanced solutions such as 3D printing, modular and prefabricated construction, and building information modelling software. One UK company supporting sustain able construction ambitions in the Gulf is Walesbased Concrete Canvas Ltd. The business manufactures several innovative construction materials, including Concrete Canvas (CC) a
flexible concretefilled fabric that hardens when hydrated. “With applications ranging from canal lining to weed suppression, our technology streamlines construction processes in diverse environments, including remote and challenging terrains. Concrete Canvas’ commitment to sustainability and efficiency makes us a leading manufacturer of advanced construction materials worldwide,” said William Crawford and Peter Brewin, the cofounders of Concrete Canvas. The company’s material technology has been used in notable Gulf projects, including bund linings and pyrophoric containment areas for Aramco, and water channels for the Kuwait National Petroleum Company. Another UK company at the forefront of green infrastructure solutions is Kiverco Ltd. They are a global leader in waste recycling plant solutions, with a focus on sustainable design and innovative waste management solutions. Kiverco’s presence in the Gulf region dates back to 2014, with installations in prominent locations such as Dulsco/Expo 2020 Dubai and Averda Red Sea Global. Through partnerships and collaborations, Kiverco has played a pivotal role in promoting sustainability and waste management practices in the region. “We continue to work with partners in the region to develop the most innovative recycling solutions to meet the current and future needs in the region,” stated a representative from Kiverco. With GCC real estate and construction projects valued at $1.68tn, according to CBRE, UK businesses are wellplaced to deliver on the region’s ambitious plans. Their expertise in sustainable infrastructure and lowcarbon solutions positions them as key partners in shaping the future of the GCC’s evolving landscape. To find out more about working with UK businesses to make your vision a reality, visit great.gov.uk/gcc.
We continue to work with partners in the region to develop the most innovative recycling solutions to meet the current and future needs in the region.”
SPECIAL REPORT
POWER LETTERS 2025
THE REGION’S MOST INFLUENTIAL BUSINESS LEADERS SHARE THEIR PLANS AND OUTLOOK FOR 2025, REVEALING THE STRATEGIES AND GAME-CHANGING TRENDS THAT WILL DEFINE THE YEAR AHEAD
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Sustainability will remain a guiding principle, with a focus on scaling initiatives like solar energy and transitioning our airside fleet to green fuels.”
PAUL GRIFFITHS CEO, DUBAI AIRPORTS
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very year, Dubai Airports faces its challenges and triumphs, but 2024 will be remembered for both its defining moments and the collective spirit that turned them into opportunities. It was a year where the strength of our oneDXB community truly came to the fore, delivering remarkable results across guest experience, operational excellence, and innovation. The historic storm in April was a standout moment and it tested our resilience like never before. Facing unprecedented weather disruptions, the combined efforts of our teams and partners ensured that we restored full operations with unparalleled speed and precision. It was a testament to the power of collaboration and our shared commitment to maintaining Dubai International’s (DXB) reputation as the world’s busiest and best-connected international airport. Growth has been another hallmark of the year. After retaining its title as the world’s busiest international airport for the tenth consecutive year, DXB is set to break another record with nearly 92 million guests anticipated for the full year — our highest ever annual traffic in our 64-year history. Of particular interest is the continued surge in visitors to and from Dubai, a reversal of pre-pandemic trends, as Dubai solidifies its position as a global destination for tourism, business, and as a place to live and work. Operational excellence underpinned this growth, from reduced wait times at passport control and security to maintaining world-class baggage handling with just over two mishandled bags per 1,000 passengers — far outperforming the global average of over seven. These achievements reflect
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the dedication of our teams and the innovative technologies we continue to deploy. Above all, the oneDXB community spirit remains the cornerstone of everything we achieve. It’s the shared vision, collaboration, and determination of our teams and partners that make DXB what it is today — a place where every touchpoint is an opportunity to redefine the travel experience. As we move into 2025, our focus will be on building on these successes while embracing the trends reshaping the aviation industry. Central to our vision is the airport of the future — one that delivers unprecedented efficiency, seamlessness, and guest satisfaction. Artificial intelligence (AI) will play a transformative role in this journey. Imagine an experience where a guest’s earpiece provides real-time guidance to their gate, estimating the exact walking time, or where airport formalities take 15 minutes or less, thanks to AI-driven processes that eliminate traditional bottlenecks in the customer journey. These innovations are not just concepts; they are the foundations of the future we are already building. Our growth story continues, with a robust trajectory supported by key markets, most notably Saudi Arabia and China, and the expansion of direct traffic on most routes. The lessons learned and technologies implemented at DXB will serve as the blueprint for our ambitions at Dubai World Central - Al Maktoum International, allowing us to create a model airport that rewrites global benchmarks. Sustainability will remain a guiding principle, with a focus on scaling initiatives like solar energy and transitioning our airside fleet to green fuels. And inclusivity will be a top priority, as we work to ensure that air travel is accessible and welcoming for everyone. As we reflect on 2024, it’s clear that the path forward is one of promise and opportunity. With the exceptional people of Dubai Airports, the unwavering support of our partners, and the inspiring vision of our leaders, we are poised to continue setting new standards and elevating air travel to new heights.
SPECIAL REPORT
AZIZ KOLEILAT PRESIDENT AND CEO – METCIS, GE AEROSPACE
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s we embark upon a new year, the ongoing quest to make aviation more sustainable is seeing a surge in momentum. The industry stands today at the threshold of transformative change — from new engine architecture to alternative fuels to emissions-reducing software. Collectively, we have a goal of reaching net zero carbon emissions by 2050 and to achieve these goals, we must all accelerate. Here’s why: while operational efficiencies have resulted in a 55 per cent improvement in fuel burn per passenger kilometre since 1990, with the number of flights and travellers continuing to increase, carbon emissions continue to grow. Since GE Aerospace technology powers three out of four commercial flights around the globe, we have both an incredible responsibility and an unparalleled opportunity to advance a safer and more sustainable future. As a sector that thrives on collaboration and innovation, a holistic approach will be the key to navigating the technological and economic challenges of decarbonising the airline industry. There is no single solution so we must look at what we can do today, tomorrow and into the future. Today, we start with existing engine technologies. Our newest engine products offer 10-15 per cent better fuel efficiency than their predecessors. A solution to wash engines with foam rather than water — cleaning dust and dirt particles — can yield up to three times more fuel savings. Software solutions that leverage data the airlines already have can help optimise flight plans and routes for fuel savings. And Aerospace Carbon Solutions, a GE Aerospace business, has been established to focus on outside-the-engine decarbonisation of the aviation sector. Sustainable aviation fuel (SAF) will also play a major role. Today, all jet engines can run on approved SAF blends and looking to the near future, the industry is actively developing standards for the adoption of 100 per cent SAF. The
Since GE Aerospace technology powers three out of four commercial flights around the globe, we have both an incredible responsibility and an unparalleled opportunity to advance a safer and more sustainable future.”
International Air Transport Association (IATA) roadmap makes it clear that SAF is essential to reaching net zero carbon emissions, as it is projected to account for approximately 65 per cent of CO₂ emission reductions by 2050. To help promote a global SAF market and accelerate uptake, IATA will launch a SAF registry early this year. Still, challenges related to infrastructure and cost remain so there is an opportunity for acceleration. Looking into the future, we’re already at work developing the technologies for the next generation of commercial engine products. The CFM* RISE programme, for instance, targets more than 20 per cent better fuel efficiency with 20 per cent lower CO₂ emissions compared to the most efficient engines in service today. The game-changing Open Fan architecture, one of the technologies we’re advancing through the RISE programme, could enable that large step-change in efficiency. We are making real progress on the programme with more than 250 tests completed and plan to conduct ground and flight tests this decade. Critical to achieving all of this are the skilled people who are at the centre of this work. To navigate the complexities of this transition and drive the aerospace industry forward, we need passionate, skilled, and innovative engineers, scientists, and technology professionals. Through partnerships with educational institutions, investment in STEM programmes, and a culture that encourages continuous learning and development, the industry can help prepare the next generation of aerospace professionals to tackle the most pressing challenges of tomorrow. The time is now. As we enter 2025, all parties – public sector, private sector, and industry bodies — must boldly ramp up to reach our goals. * CFM International is a 50-50 joint venture between GE Aerospace and Safran.
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MOHAMED ABDELBARY GROUP CEO, ABU DHABI ISLAMIC BANK
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he year 2024 has been pivotal, marked by a concerted drive toward impact, innovation and sustainability. It has been a transformative period, underscoring the importance of embracing change in a rapidly evolving economic and technological landscape. For ADIB, this year has solidified our commitment to sustainable growth while placing our customers at the heart of everything we do. Our core mission has always been clear to achieve sustainable growth while ensuring our customers remain central to all our endeavours. This year, we successfully implemented a strategy that not only expanded our customer base but also deepened our relationships with the 1.42 million customers who rely on us. We added over 154,000 new customers in the first nine months of 2024, underscoring trust and confidence the marketplaces in ADIB. With a 15 per cent market share in retail banking, we remain the leading bank in personal and home finance, offering a diverse range of products and services that meet the evolving needs of our clients. We have achieved important growth by focusing on expanding our business organically and diversifying our revenue streams. Our strategic investment in data analytics has significantly boosted our ability to cross-sell our products and enhancing our income from non-funded activities, which now makes up 39 per cent of our total revenue. The focus on diversifying our income sources has prepared us well to navigate expected changes in the external environment, ensuring the bank remains resilient in the face of changing economic conditions. These measures reflect our commitment to building a robust and adaptable financial institution, well-positioned for sustainable success in the years ahead. Our commitment to innovation is a cornerstone of ADIB 2035 vision. Digital transformation remains at the forefront of our growth plans, with a focus on enhancing the customer’s experience through cutting-edge technology. This year, we launched 64 new app features and began making significant investments in generative AI to provide more personalised banking services.
We are proud to be the first Islamic bank in the region to set sector specific financed emission reduction targets for 2030.” 34
As part of our ADIB 2035 Vision, we are laying the foundation for a future where fintech partnerships and Gen AI solutions drive our success. The launch of ADIB Ventures is a step forward in creating an ecosystem that nurtures innovation and accelerates the development of next-generation financial technologies. Our commitment to sustainable growth has been evident in the way we have integrated environmental, social, and governance (ESG) principles into every aspect of our business. We are proud to be the first Islamic bank in the region to set sector specific financed emission reduction targets for 2030. Our commitment to ESG is not just about meeting regulatory requirements; it’s about making a positive impact on society and ensuring that our financial products help build a sustainable future for all. The bank’s commitment to sustainable finance was reinforced by the launch of its comprehensive sustainable finance framework, which supports the issuance of green, social, and sustainability sukuks. Moreover, ADIB’s MSCI ESG rating upgrade to AA, placing us in the “Leadership” category, underscores our steadfast commitment to sustainability and governance. Looking ahead, ADIB is committed to building on the momentum we have achieved in 2024. Our 2035 vision will be powered by Gen AI with the aim to offer our customers personalised solutions tailored to their needs while also fostering a culture of innovation to stay ahead of emerging technologies. We will continue to place an emphasis on scaling our digital capabilities and expanding our offerings in the rapidly evolving fintech. This will allow us to further tailor our products to the unique needs of our customers and ensure that ADIB remains at the cutting edge of banking innovation. At the same time, we are committed to talent development. The people of ADIB are at the heart of our success, and we will continue to invest in our workforce, ensuring that we have the right skills and expertise to lead us into the future.
GROUP CEO, MASHREQ
he year 2024 has been positive for the financial industry in the UAE and across the GCC, despite challenges brought about by the ongoing geopolitical instability in the region. Banks and other financial institutions appear to be ending the year in a strong resilient position, reporting impressive financial results, and the outlook in the industry for 2025 is one of optimism. With the Central Bank of UAE maintaining its benchmark rate alignment with the US Federal Reserve, the recent half-percentage-point rate cut is expected to have a mixed impact. While lower financing costs can boost business conditions and support economic diversification initiatives — such as those in Saudi Arabia and the UAE funded through government equity, commercial loans, and project bonds — the effects on banking profitability cannot be ignored. While additional Fed rate cuts are anticipated, albeit softer and more gradual than initially predicted, the UAE economy is poised to benefit from improved financing conditions. These monetary shifts are expected to enhance the competitiveness of exports, reduce borrowing costs, and attract foreign investment, serving as a catalyst for sustainable and resilient economic growth across multiple sectors. Previous analyst predictions of global GDP growth throughout 2025 of just over 3 per cent remain, and I expect the UAE to at least align with, if not exceed, this rate. Credit cycles are anticipated to stabilise globally, but challenges such as the ongoing geopolitical instability in the region are likely to have an impact and shape credit conditions. I am enthusiastic about technological advancements that will continue to drive digital transformation in the financial industry in 2025. We have seen phenomenal success with our digital banking offering, through Mashreq NEO family, and I am confident this will continue in the coming year. Solid growth in the number of digital-only banks and fintech innovations in 2025 will provide motivation for us all to continue our efforts to enhance our offering and create the best possible customer
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experience. With technology such as machine learning and data analytics enabling banks and financial institutions to get to know their customers — and their preferences and behaviours — on a much deeper, more intuitive level than ever before, and the benefits already being comprehensively seen, I fully expect to see a strong focus on hyper-personalised customer experiences. As entities in the banking and finance industries look to streamline operations, increase scalability, and optimise efficiency, software-as-a-service — where banks and other financial institutions can access and use technology applications over the internet without hosting them on their infrastructure — is likely to experience strong demand. In line with ever-advancing digital transformation across the globe, I see the shift towards digital and mobile banking solutions continuing throughout 2025. Demand for hyper-personalised financial advice, products and services will continue to expand. Concepts like embedded finance and open banking, which eliminate the need to input sensitive financial data for every transaction, are expected to gain momentum rapidly. In the same vein, interest in decentralised finance products will increase. I foresee strong interest in, and demand for, sustainable and ethical investment and financing solutions in 2025, as well as for ESG-focused products, as customers continue to seek solutions that align with their beliefs and priorities. As in previous years, a key challenge for the banking and finance sectors in 2025 will be striking a balance between profitability and robust risk management. Strengthening risk assessment and governance processes across all material categories will also be vital to ensure compliance with regulations in both existing and emerging markets. At the same time, institutions must optimise risk assurance and monitoring to address evolving threats while safeguarding operational integrity. As we continue to invest in technology and innovation, it is essential to prudently manage costs to optimise operational efficiency while prioritising the highest levels of cybersecurity. In line with Mashreq’s commitment to investing in human capital, attracting and retaining the brightest talent remains a top priority.
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SPECIAL REPORT
AHMED ABDELAAL
Solid growth in the number of digital-only banks and fintech innovations in 2025 will provide motivation for us all to continue our efforts to enhance our offering.”
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With a focus on sustainable growth, customer-centricity, and operational excellence, our aim is to set new benchmarks and take an active role in shaping the future of the industry.”
ENGINEER BADER AL LAMKI CEO, ADNOC DISTRIBUTION
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t ADNOC Distribution and across our industry, service stations are evolving into one-stop mobility hubs that cater to various needs. It’s no longer just about filling up the tank; the quality of coffee is now as important as the quality of the fuel. For that reason, transforming fuel stations into comprehensive, one-stop retail destinations is crucial for building customer loyalty and staying ahead in the evolving fuel, convenience and mobility retail landscape. Modern fuel stations are rapidly evolving. Quick service restaurants (QSRs), electric vehicle (EV) charging stations, car wash facilities, and well-stocked convenience stores are becoming essential parts of the experience. A recent report by Consumer Reports on consumer attitudes towards fuel economy highlights that consumers are increasingly looking for fuel stations that offer additional amenities and services to enhance their overall experience. This has always been the strategy at ADNOC Distribution and has enabled the company to transform into an international multi-energy convenience and mobility leader. The UAE has prioritised the electrification of mobility (eMobility), and is seven years into an ambitious plan to decarbonise its infrastructure and energy production. Under the UAE’s Energy Strategy 2050, the country is pursuing a mix of renewable and nuclear energy sources to achieve carbon neutrality by mid-century. According a report by Deloitte, the region’s EV market is projected to more than triple in size from $2.7bn in 2023 to $7.65bn by 2028. This growth is driven by government initiatives promoting electric vehicles and increased awareness of energy storage solutions in the UAE, Saudi Arabia, Qatar, and Kuwait, states that have all publicly outlined their strategic
visions for electrification and decarbonisation. In part, this shift requires integrating EV charging infrastructure at fuel stations, transforming them into essential hubs for the new age of mobility. Electric mobility isn’t the only way in which mobility is changing; hydrogen and biofuels will also become increasingly prevalent. There’s another trend increasingly prevalent in the world of mobility retail: AI and digital technology can deliver help deliver hyper-personalised customer experiences, reduce wait times, and improve store operations. Eventually, AI will influence all steps in the mobility retail value chain. In the future, AI-enabled tools will also help with site selection, the design of stations themselves, and in-store layout, with predictive analytics providing insights to maximise footfall and profitability. In May 2023, the Ministry of Energy and Infrastructure (MoEI) launched the Global EV Market initiative to make the UAE a global hub for electric vehicles (EVs). This project aims for EVs to make up 50 per cent of all vehicles on UAE roads by 2050 and involves partnerships with private sector leaders to develop EV charging stations and service centers. Additionally, the MoEI introduced a National Platform for EV Chargers, which includes a mobile app and a guide for standardising EV charger installations nationwide. This move presents both challenges and opportunities. Investing in new infrastructure like EV charging stations is capital-intensive and requires partnerships with innovative companies and auto manufacturers. However, these challenges also present opportunities. By diversifying offerings and embracing new technologies, mobility retailers can tap into new revenue streams and enhance their resilience against market volatility. here ADNOC Distribution is concerned, our goal is to transform into an international multi-energy, convenience, and mobility leader. With a focus on sustainable growth, customer-centricity, and operational excellence, our aim is to take an active role in shaping the future of the industry.
SPECIAL REPORT
SAIF HUMAID AL FALASI GROUP CEO, ENOC
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he ongoing shift towards cleaner and more sustainable energy sources underlines the urgency of climate mitigation and adaptation action, both in the region and globally. This is evident across the GCC, where member states are pursuing increasingly ambitious renewable energy and net-zero targets. The UAE, in particular, has made great strides in deploying world-class sustainable and integrated energy solutions, significantly expanding its total renewable capacity by 70 per cent between 2022 and 2023. This regional momentum presents unprecedented opportunities for the innovative and forward-looking ENOC Group as we leverage our responsible energy stewardship to meet the UAE’s growing demand for reliable, secure, and sustainable energy. Guided by the UAE’s Energy Strategy 2050 and Dubai Clean Energy Strategy, ENOC Group supports the transition to a lower-emissions future through our five-pillar growth strategy, focusing on ‘Proactive Improvement’, ‘Integrated Value Chain and Growth’, ‘Think Customer’, ‘Diversified Energy’, and ‘Asset Optimisation’. In 2024, ENOC Group deployed cutting-edge solutions to enhance competitiveness and deliver sustainable value across the energy sector, while continuing to invest in operational enhancements and innovation to serve our global customer base in 60 markets worldwide. During the year, our dedication to sustainable fuel distribution resulted in the unveiling of the world’s first solar-powered biodiesel truck at the WETEX show. Fitted with an aluminium tank with a 5,000-litre capacity and divided into two compartments, ENOC Link’s new biodiesel trucks enable the transportation and distribution of two distinct biodiesel grades. Our commitment to fostering a more sustainable and environmentally responsible aviation sector was reinforced with the signing of a milestone agreement with Dubai Municipality, Marubeni, and BESIX to transform waste into sustainable aviation fuel (SAF) using green hydrogen.
The year also marked the 25th year of operations of Tasjeel, the UAE’s first and largest vehicle testing and registration centre, which has conducted more than 20 million vehicle tests.”
Our pioneering work in exploring hydrogen as an alternate fuel, including commissioning the UAE’s first Green Hydrogen Station, earned us two sustainability awards at Connecting Green Hydrogen MENA 2024. Last year, we further expanded our international presence, establishing new partnerships and ventures in key strategic markets. Our marine lubricants business recorded 120 per cent sales growth in the Greek market, and we concluded the year with the addition of 80 new ports to our existing network of 400 marine ports across 32 countries. In partnership with Pakistan’s Flow Petroleum, we expanded our international lubricants distribution to bring our high-quality lubricants to |this rapidly growing market. Meanwhile, Horizon Terminals Limited (HTL), our wholly owned subsidiary, completed the Horizon JPUT Pipeline Connectivity Project significantly enhancing Singapore’s oil and petroleum infrastructure development. In 2024, ENOC Group further bolstered the UAE’s competitiveness and celebrated its legacy of advancing the country’s energy infrastructure through Vopak Horizon Fujairah Limited, which excels in petroleum storage and handling, contributing to economic growth and sustainability. The year also marked the 25th year of operations of Tasjeel, the UAE’s first and largest vehicle testing and registration centre, which has conducted more than 20 million vehicle tests. Investing in a skilled workforce and empowering youth are key priorities for ENOC Group. During the year, we launched several initiatives to develop talent and address the skills gap within the energy sector. In 2025, ENOC Group will accelerate its contributions to the UAE’s long-term economic development in line with its 2071 vision — through strategic investments, innovative solutions and robust partnerships.
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P OW E R L E T T E R S
ENGINEER HAMAD AL AMERI MD AND GROUP CEO, ALPHA DHABI HOLDING
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he year 2024 was a historic one for Alpha Dhabi Holding, where we grew exponentially to be bigger and better than before. The year can also best be described as one of action, where we swiftly and decisively captured new opportunities and made strategic investments across diverse, high-growth, future-centric industries. Our financial performance in 2024 has come to reflect this relentless pace of growth, and we are eager to build upon this remarkable progress into 2025 and beyond. As an ultra-diversified business, we operate in dynamic sectors such as energy, construction, healthcare, industry, hospitality, and real estate. These are industries that sit firmly within the UAE’s ambitions for the future — which means that Alpha Dhabi Holding is an important catalyst of the UAE’s ongoing transformative development. As proof of this, in 2024, we pursued organic expansion across our portfolio, and we completed several strategic acquisitions. For instance, within our energy vertical, our joint venture with ADNOC Drilling Company (ADNOC Drilling), named ‘Enersol’, announced its first strategic investment with the contribution of Alpha Dhabi’s 25 per cent holding in Gordon Technologies. Enersol also acquired a 51 per cent equity stake in NTS AMEGA the precision manufacturing entity, adding further depth to the Enersol proposition for the UAE’s energy sector. Enersol completed four transactions which should be reflected to demonstrate the pace of growth in 2024 NMDC, an Alpha Dhabi Holding subsidiary company, operating across engineering, procurement, and construction also had a memorable year, having been awarded new projects with a total award value of Dhs8.4bn. In September, NMDC Energy was listed on the Abu Dhabi Securities Exchange (ADX) following an Initial Public Offering (IPO) which was oversubscribed by 31.3 times. NMDC Energy’s IPO opened trading after drawing Dhs88bn in investment locally, regionally, and internationally — a significant feat.
Our aim is to continue focusing on strategic acquisitions, geographic diversification, and rigorous corporate governance practices.” 38
Alpha Dhabi has also been focusing on construction – and more recently we entered a partnership with ADQ through a divestment of a 49 per cent stake in our construction group. Of equal importance, healthcare remains top of mind, with PureHealth, the largest integrated healthcare network in the UAE delivering exceptional growth primarily driven by the growth in the hospitals segment. At the very same time, we’ve made swift forward strides in hospitality, announcing a strategic transaction that will unite St Regis Saadiyat, Cheval Blanc Maldives and the soon to open Cheval Blanc Seychelles with National Corporation for Tourism and Hotels (NCT&H). Our luxury lifestyle subsidiary ADMO Lifestyle Holding announced the acquisition of Ce La Vi and a joint venture with Addmind Holding, called Alphamind, demonstrating Alpha Dhabi’s commitment to be a leading player in the luxury and lifestyle vertical. All these activities in 2024, underscore our financial strength as well as our proprietary ability to source compelling M&A and investment opportunities. Now, as we narrow our sights on 2025 and beyond, we’ll increasingly look to make further strategic decisions that we’re confident will add more depth and sophistication to our diverse portfolio, enabling us to grow to even greater heights. Our aim is to continue focusing on strategic acquisitions, geographic diversification, and rigorous corporate governance practices to ensure that we continue to deliver strong and sustainable returns for our shareholders and deep meaningful impact for the communities where we operate. Crucially, we have agility and resilience across our business to insulate against any headwinds that may emerge globally, be they in the form of inflation or geopolitical uncertainties. In the near-term, Alpha Dhabi will continue to serve as a catalyst of the UAE’s transformative development.
CEO, TECOM GROUP
he global commercial real estate landscape is undergoing transformation as employees increasingly prioritise qualitative benefits to help them succeed in the innovation economy. Seventy-one percent of 8,000 global professionals surveyed for Unispace’s Global Workplace Insights 2024-25 report say the workplace enables them to do their best work. Moreover, 76 per cent of 2,700 employers surveyed for the report believe the workplace enables employees to be more innovative, reaffirming the role of offices in promoting creativity and connection. Employers offering curated corporate community experiences are likelier to attract and retain the world’s most sought-after minds. TECOM Group’s 10 business districts are the nexus of business excellence as this invigorated approach to nurturing innovation translates into robust demand for premium workspaces. Our strategically located hubs, home to more than 11,800 global and regional businesses and 124,000 professionals from the tech, media, design, education, science, and manufacturing sectors, are playing an instrumental role in writing Dubai’s diversified economic success story. This notably includes the burgeoning creative sector, where Dubai Design District (d3) united influential global creatives in 2024 through the official Dubai Fashion Week and Dubai Design Week’s landmark 10th edition, contributing towards the Design Sector Strategy 2033. Dubai Fashion Week is set to once again launch the global fashion calendar in February. d3, in strategic partnership with Dubai Media City, launched the Digital Creative Economy white paper in 2024, outlining the Dhs27tn career-defining opportunities in this rapidly emerging segment by 2030. We are proactively future-proofing the engines that contribute to diversified economic progress. More than 4,000 businesses, from Fortune 500s to startups, are strengthening our city’s digitally enabled knowledge economy at Dubai Internet City, which celebrated its 25th anniversary this past
“T
October. The community of 1,100 businesses and 350 operational factories at Dubai Industrial City is also actively contributing to the manufacturing and logistics sectors. Our districts are contributing towards the development of skilled talent through academic learning and research innovation. World-leading educationalists at Dubai Knowledge Park and Dubai International Academic City offer innovative courses in transformative sectors, while at Dubai Science Park, more than 500 global life, energy, and environment science leaders are strengthening innovation pathways for emerging talent. TECOM Group’s long-term growth roadmap requires our portfolio to remain agile in its evolution, particularly as the parameters of collaboration, innovation, and work transform for future generations. Numerous surveys underscore a penchant for entrepreneurship, with a Hubspot survey reporting that 20 per cent of Gen Z workers supplement full-time employment with side businesses or incomes. Flexibility and work-life balance are priorities, and, as tech natives, technological integration is pivotal to effectively engaging them and harnessing their full creative potential. Offerings such as in5, a startup incubator nurturing businesses in design, tech, science and media, and D/Quarters, a flexible and modern coworking space, enable TECOM Group to proactively address emergent demands for flexibility, accessibility and collaboration. The blueprint of our portfolio demonstrates our purpose-driven strategy to nurture synergies that stimulate globally impactful entrepreneurship from Dubai, contributing to the city’s non-oil growth that is also strengthening the commercial real estate sector’s performance. With new commercial and industrial asset investments of Dhs2.7bn in 2024, including the development of six Grade-A office buildings within Phase 2 of Dubai Design District (d3) and the launch of Grade-A offices at Dubai Internet City with Innovation Hub Phase 3, our portfolio will continue to serve a growing volume of global investors and talent.
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SPECIAL REPORT
ABDULLA BELHOUL
We are proactively future-proofing the engines that contribute to diversified economic progress. More than 4,000 businesses, from Fortune 500s to startups, are strengthening our city’s digitally.”
P OW E R L E T T E R S
As we embark on this exciting journey into 2025, I am confident that Maser Group will continue to lead with innovation, integrity, and purpose. Together, we will shape a future defined by progress, prosperity, and possibility.”
PRATEEK SURI CHAIRMAN AND CEO, MASER GROUP
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he year 2024 has been nothing short of transformative, not just for Maser Group but for the communities, markets, and industries we serve. We have taken monumental strides in fulfilling our mission of democratising access to consumer electronics in Africa while simultaneously transitioning into a global consumer electronics powerhouse. The past year was a defining moment — a leap from a regional focus to a broader horizon that encompasses global markets. Let me share our accomplishments, aspirations, and vision for the future as we set our sights on making 2025 another remarkable year for Maser Group. Since our inception, the group’s mission has been rooted in providing affordable and high-quality consumer electronics in Africa. In 2024, we took this ethos global, thanks to a strategic network of partnerships and distributors. Last year, Maser Group’s journey was defined by strategic partnerships, groundbreaking innovation, and unwavering commitment to growth. Collaborations with distributors across Africa have bolstered our market reach, while our dedicated R&D teams have integrated cutting-edge technologies to keep us ahead of industry trends. Our global footprint was further solidified by our participation at GITEX Global Dubai, earning recognition on an international stage. Achieving a milestone valuation of $5bn by SCG underscores the trust of our stakeholders. Even as we expand globally, we remain deeply committed to empowering Africa, making significant investments in large capital ventures, exploring mining opportunities, and driving merger and acquisition (M&A) initiatives that honour our roots. The year 2025 will be pivotal as we scale the robust foundation built last year. We plan to streamline production processes,
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expand manufacturing capacities, accelerate sales efforts and enter new markets as well as drive innovation using AI and emerging technologies. Technological innovation will continue to be at the heart of our strategy. MDR Investment will also drive our growth in 2025. The investment arm of Maser Group, with a $500m fund infusion, will play an instrumental role in boosting growth in Africa. It will explore strategic acquisitions in Africa for large capital ventures. It will invest in promising startups and contribute to economic development and job creation. We are committed to strengthening our investment footprint across Africa by channelling our funds into transformative mining and infrastructure projects. Our goal is to drive sustainable development, unlock the continent’s vast potential, and contribute meaningfully to its economic growth and prosperity. Rooted in the values that shaped our journey, our commitment to corporate social responsibility (CSR) focuses on giving back to the African communities that have been integral to our story. Through impactful charity initiatives, we aim to uplift society, drive positive change, and create a lasting legacy of empowerment and support. MDR has maintained its independence by refraining from raising funds through the equity market, despite numerous attractive stake sale offers. However, with the rapid growth of government and public-private partnership projects across Africa, we are now exploring opportunities to secure funding. This strategic move aligns with our vision to drive and execute projects exceeding $1bn. None of these achievements would have been possible without the unwavering support of our stakeholders. To our employees, partners, investors, and customers, I extend my heartfelt gratitude. Your belief in our vision fuels our ambition and drives us to reach greater heights. As we embark on this exciting journey into 2025, I am confident that Maser Group will continue to lead with innovation, integrity, and purpose. Together, we will shape a future defined by progress, prosperity, and possibility.
CEO, CORE42
A “
t Core42, our vision is to establish the “Intelligence Grid”, a next-generation AI hyperscale infrastructure designed to make the compute required to deliver intelligent capabilities as accessible and indispensable as electricity. This heterogeneous platform combines advanced architectures from multiple technology partners to power economies and foster sustainable growth. As part of the G42 family, we’re pioneering new approaches to AI infrastructure deployment and sovereign computing. Our high-density data centres deliver scalable, multiarchitecture computing optimised for diverse AI workloads. Through our sovereign cloud platform capabilities and comprehensive AI solutions, we provide secure, flexible access to computational resources while supporting data sovereignty for public sector and regulated industries. This infrastructure serves as the foundation for G42’s technology ecosystem, positioning Core42 at the heart of the UAE’s emergence as a global AI infrastructure leader. G42 and Core42’s achievements in 2024 reflect our relentless focus on innovation and global reach. We have developed a heterogeneous infrastructure model that seamlessly integrates advanced technologies. Core42’s NVIDIA DGX SuperPOD, ranked as the 25th most powerful high-performance computing (HPC) system globally, and the first in the MENA region, solidifying our leadership in the region’s digital transformation. Our global presence has expanded significantly, with engineering offices in San Francisco and supercomputers deployed across California, Texas, and Minnesota. Plans to establish operations in Europe are already underway, positioning us as a pioneering force in AI development worldwide. In partnership with Cerebras Systems, we launched the Condor Galaxy (CG) network, a global supercomputer infrastructure solving real-world challenges. With CG-1, CG-2, and three additional clusters operational in 2024, this network delivers unmatched
AI processing power. Furthermore, our collaboration with Qualcomm brought to life a platform designed for energy efficient, flexible, and costeffective AI workloads. We also introduced Compass, a technology that enables businesses to leverage superior AI models without worrying about infrastructure and model deployments complexities. The global AI and cloud industry stands at the cusp of unprecedented transformation. While the broader AI market is projected to grow from $621.19bn in 2024 to $2.7tn by 2032, the specialised GPUaaS market shows even more dramatic acceleration, reflecting the critical role of specialised compute infrastructure in driving AI innovation. This surge in GPU-powered computing, coupled with cloud technology’s CAGR of 21.2 per cent from 2024 to 2030, signals a fundamental shift in how organisations approach AI infrastructure. Hybrid and sovereign cloud models are gaining prominence as enterprises seek flexible, compliance-focused solutions. Our heterogeneous infrastructure approach and sovereign cloud capabilities position us to capitalise on these trends, enabling us to shape the next era of industrial transformation through scalable, secure, and sovereign-enabled solutions. The journey in 2025 and beyond is marked by the fusion of Al, robotics, and pervasive connectivity, all underpinned by flexible, sustainable, scalable, and secure infrastructure. Yet these advancements bring complexity. Al and cloud providers must evolve to meet soaring computational demands, seamlessly integrate edge and loT infrastructures, support digital sovereignty expectations, comply with diverse regulations, and prioritise environmental responsibility. Those who successfully navigate this complexity will emerge as the backbone of the Al-driven era. As we look ahead to 2025, the path is clear: Core42 is committed to fostering a future where intelligent technologies redefine possibilities. Our mission is to democratise Al, empowering organisations of all sizes to leverage its transformative power.
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SPECIAL REPORT
KIRIL EVTIMOV
Our global presence has expanded significantly, with engineering offices in San Francisco and supercomputers deployed across California, Texas, and Minnesota. Plans to establish operations in Europe are already underway.”
P OW E R L E T T E R S
Our flagship Ultra Platform has continued to revolutionise digital ecosystems, integrating fintech, AI-powered solutions, and conversational commerce into a seamless experience for over 155 million users worldwide.”
DR TARIQ BIN HENDI BOARD MEMBER AND MD, ASTRA TECH
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he UAE has demonstrated remarkable economic resilience in 2024, with GDP totalling Dhs430bn in the first quarter, with a 3.4 per cent growth. This robust performance reflects the resilience of the country’s strategic economic sectors. Additionally, in November 2024, the UAE launched ‘The National Investment Strategy 2031’. Focusing on key sectors like advanced manufacturing and renewable energy, the strategy aims to double cumulative foreign direct investment to nearly $354bn and triple the FDI balance to $599bn by 2031. The UAE’s fintech and startup ecosystem too has flourished. The UAE’s fintech market is now projected to grow from $3.16bn in 2024 to $5.71bn by 2029, driven by a progressive regulatory environment and the rapid adoption of digital banking solutions. For us at Astra Tech, this year has been transformative, marked by significant milestones that have not only reinforced our position as a leader in digital transformation but also aligned us closely with the UAE’s ambitious vision for the future. In 2024, Astra Tech made substantial strides by joining forces with the World Economic Forum (WEF) to shape the future of AI and digital finance. This partnership underscores our commitment to responsible and ethical technological development on a global scale. Our engagement with WEF’s Centre for the Fourth Industrial Revolution (C4IR) has positioned us at the forefront of global discussions on AI governance, financial inclusion, and digital infrastructure. Our flagship Ultra Platform has continued to revolutionise digital ecosystems, integrating fintech, AI-powered solutions, and conversational commerce into a seamless experience for
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over 155 million users worldwide. The introduction of the “Send Now, Pay Later” feature via our Botim Ultra App has further simplified financial transactions, enhanced user convenience and promotedg financial inclusion. In November 2024, PayBy Technology Projects, an Astra Tech company and a leading fintech platform in the UAE, achieved a significant milestone by securing a gaming-related license from the General Commercial Gaming Regulatory Authority (GCGRA). This license enables PayBy to offer financial services to GCGRA-licensed commercial gaming operators, marking a pivotal step in the authority’s mission to establish a wellregulated commercial gaming sector in the UAE. As the first fintech to obtain this license, PayBy will operate under the ‘Gaming-Related Vendor License’ category. The company is now authorised to provide a variety of services to gaming operators, including digital wallets, secure payments, and advanced fraud detection systems. In 2025, Astra Tech is poised to build on these achievements with a focus on expanding our global footprint and deepening our technological capabilities through strategic partnerships. We aim to extend our reach into new markets, leveraging our robust digital infrastructure. We will continue to lead in AI and fintech, developing cutting-edge technologies that drive efficiency, security, and inclusivity in digital finance. We remain committed to advancing financial inclusion in the region, especially with the aim of empowering the underbanked population with a frictionless financial experience. We remain committed to driving innovation and excellence in digital transformation. Our achievements in 2024 have built a strong foundation, and we are excited to continue our journey. Together, we will navigate the challenges and opportunities ahead, ensuring that Astra Tech remains at the cutting edge of technological advancement and global leadership.
SPECIAL REPORT
OTHMAN ALJEDA CEO, ARAMEX
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t Aramex, we’ve witnessed significant growth in volumes, revenues and improved profitability on the back of strategic actions that we are taking and which are positioning us at the forefront of our industry in our core markets. For the first nine months of 2024, we demonstrated robust growth and resilience, achieving a 11 per cent rise in group revenues, 7 per cent improvement in gross profitability and 29 per cent improvement in earnings before interest and taxes. Efficiencies and good cost management helped deliver stable margins and a stable SG&A structure, thereby unlocking value in our bottom line. Our focus on financial discipline enabled us to reduce debt by $43m, underscoring our commitment to long-term financial health. Our sales specialism and the strength of our network have been pivotal in driving this growth. The GCC region was a major contributor to our success, posting 11 per cent YoY revenue growth in for the first nine months of 2024 and accounting for 39 per cent of the group’s total revenues. Our other markets in MENAT also demonstrated significant growth with a 47 per cent YoY revenue increase for the first nine months of 2024, while our business in Oceania improved both revenue and profitability as part of the ongoing turnaround plan. Today, Aramex operates in over 600 cities across 70 countries, employing more than 16,000 professionals. With a legacy spanning over 40 years, we continue to redefine logistics and transportation. We are focused on leveraging two key industry trends to drive sustainable growth. First, nearshoring — which is the practice of bringing, holding and fulfilling inventories closer to end consumers. Our warehousing business plays a strategic role in supporting this trend, allowing us to provide customers with efficient and reliable fulfillment solutions. The second,
The GCC region was a major contributor to our success, posting 11 per cent YoY revenue growth in for the first nine months of 2024 and accounting for 39 per cent of the group’s total revenues.”
direct injection, is the demand for international freight forwarding where brands and e-tailers consolidate their inventory for the initial leg of their journey overseas and then inject the stock directly into our network. These two trends align perfectly with our strengths and provide a pathway for sustainable growth for Aramex, strategically utilising our full infrastructure. This means that we are seeing increased volume flows towards services such as domestic express, and warehousing and fulfillment, in addition to freight forwarding and international express. The investments we are making across infrastructure, technology, and capabilities in each of our products, are providing Aramex with a competitive edge in this new market environment. Our strategic goal is to sell two to three products to each customer and offer an integrated solution that enhances their supply chain capabilities. While we celebrate our successes, we also acknowledge the challenges that come with operating in a dynamic and competitive industry: We see volatility in the freight forwarding market, disruptions at the Red Sea and fierce competition in express and last mile deliveries. We have demonstrated resilience and adaptability in the face of challenges. During 2024 we supported our customers in enhancing supply chain resilience, reducing transit times, optimising costs, and increasing sales. This aligns with our broader goal of driving sustainable growth while maintaining operational excellence. While the logistics landscape continues to evolve, our commitment to delivering exceptional service and innovation remains constant. Our investments in strategic areas of our business have positioned us as a key partner for e-commerce, retail, energy, pharma, and other sectors – and we look forward to building on this growth story in 2025.
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P OW E R L E T T E R S
FRANS HIEMSTRA REGIONAL GM MEA, UBER
“O
ver the past year, Uber has doubled down on innovation and sustainability, ensuring a clear roadmap well into the future. We view the future of mobility as shared, multimodal, electric, and autonomous, and we partner with cities in the deployment of innovative technological mobility solutions to bring meaningful products to make it easier for people to move. At the core of our values, is our approach when designing products, as we place ourselves in the shoes of the people who use our app, and ensure we make a positive impact on their lives. For instance, we recently launched Uber Teens in the UAE, Saudi Arabia, Jordan, Qatar and South Africa. The product is designed to help families on the go and allows parents or guardians to invite teens (aged 13-17) to create a specialised Uber account allowing teens to request their own rides with parental supervision and key safety features built into the experience. With the expansion of transport needs across the Middle East, Uber has focused on complementing the existing network of public transport and mobility solutions. Testament to this, is our integration of Lime scooters into the Uber app in the UAE, expanding transportation choices for shorter trips, and providing a practical and sustainable option for users navigating busy environments. We are also actively working towards the comprehensive electrification of our platform, in-line with climate change priorities. To reach our zero emissions goals, we’re continuing to invest $800m globally in resources to help hundreds of thousands of drivers go electric, through driver incentives, charging initiatives, and facilitating EV discounts. While our ambitions are global, I’m pleased to share that we are making significant progress in the MEA region. In the UAE, we are seeing meaningful progress, with more than 20 per cent of kilometres driven on the Uber platform today, being zero-emissions in Dubai, bringing us closer to our goal to have one in four trips being emission-free by 2026. Looking ahead - and as we’ve said from the beginning - Uber will
In December 2024, we launched autonomous vehicles on the Uber platform in Abu Dhabi, endorsed by Abu Dhabi Mobility and with Tawasul Transport as the fleet operator.” 44
continue working alongside policymakers, regulators and automakers in every country towards achieving zero-emission goals. Take EVs for example, both infrastructure and access are set to scale rapidly across the region over the next few years, as part of consolidated efforts towards making them mainstream, thus positively impacting the environment. Our partnership with Al-Futtaim Electric Mobility Company and BYD works to accelerate the electrification of the Uber platform to bring EVs across our product portfolio. We also signed an MoU with Etihad Rail in the UAE to share knowledge and ultimately enhance integrated passenger transportation. Looking to the future of mobility, autonomous vehicles (AVs) are already beginning to reshape mobility ecosystems globally. In December 2024, we launched autonomous vehicles on the Uber platform in Abu Dhabi, endorsed by Abu Dhabi Mobility and with Tawasul Transport as the fleet operator. The launch in partnership with WeRide marks the first launch of AVs on the Uber platform outside of the US. We are excited with the progress witnessed across the region. We’re bullish on what the future holds for the mobility ecosystem and envisage that the mobility landscape will experience a major shift over the next decade, one led by the decline of private car use, easing congestion and a reduction of emissions. What makes me optimistic about 2025 is the evolving relationship riders have with mobility itself. Ultimately, at Uber, we’re playing the long game. While continuing to explore several potential products, and solutions, such as eVTOLs (electric vertical take-off and landing), among others, our priorities also remain grounded in everyday realities. How do we make mobility more accessible? How do we ensure it’s sustainable? And how do we keep innovating with purpose? The answers to these questions will guide us as we push forward.
SPECIAL REPORT
IMRAN FAROOQ CEO, SAMANA DEVELOPERS
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ubai’s real estate market has emerged as a global investment hotspot, offering unique advantages to both local and international investors. The city’s strategic location, robust infrastructure, and business-friendly environment have contributed to high property appreciation rates and attractive rental yields. One of the key factors driving Dubai’s real estate market is its high rental yields. With some areas reach as high as 8 per cent and 9.43 per cent. The absence of property and capital gains taxes further enhances the investment appeal. Dubai’s status as a global hub for tourism, finance, and trade ensures a steady demand for both residential and commercial properties. This consistent demand provides investors with stable rental income and long-term growth potential. Furthermore, the government’s initiatives like the Golden Visa programme have made it easier for foreign investors to acquire property and secure residency. The recent years have witnessed significant growth in Dubai’s real estate market. Property rents have surged by 60 per cent since 2020, while real home prices have increased by 40 per cent due to high demand. This upward trend is supported by strategic initiatives and infrastructural developments, positioning Dubai as a prime investment hub. As of October 2024, areas like Dubai Production City, Dubai Studio City, and Dubai Land continue to offer the highest rental returns. This, coupled with the city’s resilient market and its appeal to global investors, underscores the lucrative opportunities available to property investors. The Dubai real estate market in 2024 has witnessed a surge in activity, driven by the UAE’s robust economic growth, projected at 4.5 per cent in 2024. This growth is underpinned by the diversification of the economy, with key sectors like tourism, logistics, and finance contributing significantly. Furthermore, Dubai has seen a significant influx of foreign investment, particularly in the luxury segment, driven by relaxed ownership laws and attractive investment opportunities.
The recent years have witnessed significant growth in Dubai’s real estate market. Property rents have surged by 60 per cent since 2020.”
Data from Property Monitor reveals a 30 per cent year-on-year increase in property sector transaction volume in the first half of 2024. May 2024 marked a record-breaking month for sales transactions, reaching Dhs47.3bn. This surge in activity has translated into price appreciation across various segments, with both apartments and villas experiencing significant increases. Flexible payment plans make property ownership more accessible to a wider range of investors. These plans allow buyers to spread the cost of their investment over several years, reducing the initial financial burden and making it easier to realize the benefits of Dubai’s thriving real estate market. By offering such attractive payment options, Samana Developers is driving growth and development in the city, contributing to its continued success as a global real estate hub. The company has successfully achieved 400 per cent surge in sales in 2024, this trend is also expected to continue throughout 2025. The positive momentum in the Dubai real estate market is expected to continue in 2025, with home prices anticipated to rise by 8 per cent and luxury properties by 5 per cent. This growth is primarily driven by strong demand exceeding supply. Projections indicate a demand for 30,000 to 57,000 homes, while only 53,000 are expected to be delivered. The luxury market is witnessing even stronger demand, with eighty-three properties over $10m sold in 2024 and demand outpacing supply by 65 per cent. The focus in 2025 will shift towards sustainability and eco-friendly practices. Developers need to incorporate green building technologies and prioritise energy efficiency in their projects. Additionally, the integration of technology will transform various aspects of the real estate sector, from property management to customer experience.
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P OW E R L E T T E R S
Businesses will need to account for change not as a one-off disruption, but as a constant in their planning and operations.”
VIKAS PAPRIWAL LEADER, FTI CONSULTING MIDDLE EAST AND AFRICA
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he past year has been a reminder of just how interconnected, complex, and sometimes volatile the world has become. In the consulting industry, we’ve faced what can only be described as a “perfect storm” of challenges. The global economic slowdown coupled with an elevated interest rate environment made access to financing more difficult for businesses. Simultaneously, geopolitical uncertainty, including regional instability, have created additional challenges, influencing investor confidence and cross-border trade. Supply chain disruptions — something that businesses have been grappling with globally since the pandemic — didn’t entirely abate this year either. Closer to home, the GCC faced its own unique set of challenges. A relatively low-price oil market influenced government revenues. Governments and businesses had to walk a fine line, balancing necessary fiscal prudence with their diversification ambitions. This pushed many organisations to seek external expertise to keep their plans current, while managing the immediate headwinds. This is where consulting firms have stepped in, not just to solve immediate issues, but to become partners in shaping long-term strategies. Firms are increasingly turning to consultants not just for solutions but for foresight. At FTI Consulting, we’ve seen firsthand how businesses are navigating choppy waters. Businesses have sought our increased support in key areas such as strategy reset, corporate finance, dispute resolution, mergers and acquisitions, and strategic communication, reflecting their need to adapt to the complex landscape. Whether it was helping clients manage liquidity and restructure operations or advising them on navigating regulatory frameworks, the focus was on building resilience to weather the current challenges while keeping an
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eye on long-term goals and emerging opportunities. We are being called increasingly to provide tailored expertise to steer organisations through not only the macro challenges but also sector-specific nuances. Our knowledge together with strong functional expert model — both from global markets and here in the GCC — has allowed us to help organisations bridge the gap between their aspirations for growth and the realities of execution. This year is expected to bring a mix of continuity and new pressures. Volatility is likely to remain a factor. Businesses will need to account for change not as a one-off disruption, but as a constant in their planning and operations. Whether it’s refining strategies to adapt to new market realities, restructuring operations to enhance efficiency, or guiding regulatory compliance, firms like ours will need to be agile in anticipating the evolving needs of our clients. To this end, we ensure that we have the right people for the right challenges. A key trend we’re observing is the growing maturity of regulatory frameworks across the GCC. We’re actively working with key financial districts such as Dubai International Financial Centre and Abu Dhabi Global Market to support in their regulatory journeys — whether in arbitration, dispute resolution, insolvency, or economic diversification — helping enhance their competitiveness and attract global investors. At FTI Consulting, we’ve spent 2024 deepening our presence and expanding our capabilities to better serve our clients. Earlier this year, we secured our regional headquarters license for our Riyadh office, reflecting the kingdom’s growing significance in the region’s economic landscape. This is on the back of our consolidation in the Dubai International Financial Centre. But our growth story is less about expanding for the sake of it and more about aligning with the market’s needs and the clients we are supporting. The region’s trajectory is set for growth, but this growth will require intentional effort, strategic agility, and often, plenty of external expertise. Firms like FTI Consulting are energised by the opportunity to keep playing a meaningful role in this transformation.
CEO, DELOITTE MIDDLE EAST
“I
n recent years, the role of the Middle East region in global innovation has been driven by a great appetite to adopt new emerging technologies. This region is now positioning itself as a pioneer in digital and technological advancements, with governments and businesses, aligning their ambitions to build a connected and resilient future. Governments across the Middle East have spearheaded initiatives that lay the groundwork for a digitally driven economy. The UAE’s National Strategy for Artificial Intelligence 2031, led by the UAE Council for Artificial Intelligence and Blockchain, aims to generate $90bn in economic growth, establishing the country as a leader in AI. Saudi Arabia’s Vision 2030 integrates AI and data analytics to transform policymaking and industrial frameworks, while Qatar continues to strengthen its digital infrastructure to future-proof its economy. These initiatives reflect a clear commitment to leveraging technology for economic diversification and sustainable growth. The launch of the Falcon and Jais Large Language Models out of Abu Dhabi is a great example of advancement in R&D, as is the kingdom’s largescale green initiative, which aims to plant 10 billion trees by utilizing advanced AI technology to optimise irrigation through smart sensors and soil monitoring. Such technological advancement is positive, but this region is also making progress in addressing the concerns around the responsible and ethical use of AI and technology. What sets the Middle East apart in this global transformation is its collaborative approach. Governments and private sector leaders are working together to create an environment favorable to innovation. Emerging AI startups are thriving in the Middle East with support from the government and financial backed accelerators, such as Saudi $40bn AI investments and Qatar’s $2.5bn technology incentives, allowing such startups to scale and innovate. Cross-regional collaboration is also apparent with countries such as Jordan and Egypt leveraging
their growing talent to collaborate with Gulf states on AI projects, fostering innovation and redistributing economic benefits across the region. At Deloitte, we have witnessed how this collaborative spirit drives progress. Deloitte’s AI Institute established in Riyadh for instance, has grown into a hub for innovation and research by driving solutions that address the region’s needs and driving AI fluency for executives. The transformative impact of technology is not just confined to the economy. It is reshaping the way we educate the next generation and disrupting workplaces. Workplaces are being redefined by automation and AI-driven tools, which in turn enables smarter decision-making and drives productivity. This dual disruption underscores a broader societal change, where technology is fundamentally altering how we work and learn, preparing both current and future generations to navigate a digital-first world. The education sector is undergoing a digital revolution in many schools and universities within our region. We are seeing more STEMfocused curriculum, coding boot camps, and AI-focused learning embedded into their programs. This equips youth with the right tools to excel in a digital-first world and positions them as future innovators and leaders. To further cement this drive, Mohamed bin Zayed University of Artificial Intelligence was launched in the UAE as the first university in the world to focus solely on artificial intelligence. While progress is encouraging, some challenges remain. The shortage of digital talent, cybersecurity threats, and the continuous evolution of governance frameworks, requires collective effort and continuous adaptation. The Middle East is no longer following global trends: it is setting them. By combining bold vision with pragmatic action, the region is carving out its place as a global leader. As 2025 unfolds, I am optimistic. This region is leading the way by creating an environment which allows new technology to flourish and scale responsibly, allowing it to revolutionise the landscape by driving innovation, fostering economic diversification in line with national transformation agendas.
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SPECIAL REPORT
MUTASEM DAJANI
This region is leading the way by creating an environment which allows new technology to flourish and scale responsibly.”
P OW E R L E T T E R S
In the coming years, the GCC has the potential to emerge as a global leader in sustainable and equitable healthcare though the path requires bold, collaborative action.”
DR AZAD MOOPEN FOUNDER AND CHAIRMAN, ASTER DM HEALTHCARE
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s we begin 2025, the healthcare sector finds itself at a critical juncture, especially in the GCC region. While progress has been remarkable — marked by technological advancements and increasing patient-centric approaches — key challenges remain in ensuring that healthcare systems are both sustainable and equitable. To truly transform, we must think beyond environmental, social, and governance (ESG) benchmarks and corporate social responsibility (CSR) initiatives. Instead, the focus must shift toward building systems that are efficient, accessible, and future-ready to enable wider access. When people think of health, they tend to think narrowly about treatment and care delivered by a healthcare system rather than broadly about a health system that includes policies, products and services aimed at disease prevention and wellbeing. A short-term view encourages solutions that deliver immediate results and discourages conversations about more fundamental changes that might only bear fruit in the long term. For example, one of the most significant barriers to healthcare equity is the rising cost of care. On the other hand, a lack of cross-stakeholder dialogue constrains the finding of solutions outside the traditional approaches to healthcare. Therefore, there is a need to bridge the gaps between supply and demand, population health and individual healthcare, as well as healthcare and other related industries. Globally, specialty drugs and advanced therapies are becoming increasingly expensive, making affordability a challenge for many populations. In response, innovative financing models and government-backed programmes will be essential. Hence, collaborative public-private partnerships in the region could bridge affordability gaps, ensuring treatments reach underserved communities. Furthermore, the integration of
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telehealth services has the potential to expand access, particularly in remote regions. However, this must be coupled with efforts to improve digital literacy and infrastructure to ensure inclusivity. Sustainability is no longer a peripheral consideration — it is integral to healthcare’s future. Facilities must be designed with energy efficiency and climate resilience in mind, while operational practices should emphasise waste reduction. However, sustainability is more than environmental stewardship. It also involves creating systems that are resilient to external shocks, such as pandemics. That said, integration of digital technologies will continue to accelerate in the future with AI, machine learning, and predictive analytics becoming central to diagnosis, treatment planning, and patient management. The ongoing shift toward digital-first healthcare will reshape patient care pathways, creating smarter, more efficient systems. However, this transformation also demands robust investments in cybersecurity to protect patient data and ensure trust in digital platforms. Simultaneously, a surge in value-based care models will redefine how health outcomes are measured and incentivised, which the GCC, with its ambitious healthcare goals, is poised to lead. Despite these opportunities, there are significant challenges. Regulatory frameworks must evolve to keep pace with innovation, balancing patient safety with rapid adoption of new technologies. Another critical area is patient data management. While data holds immense potential to improve outcomes, its collection, storage, and use must be governed by ethical considerations and stringent privacy regulations. In the coming years, the GCC has the potential to emerge as a global leader in sustainable and equitable healthcare though the path requires bold, collaborative action. To achieve this, all stakeholders — governments, private players, and civil society — must work together to build systems that prioritise long-term resilience over short-term gains. The year 2025 offers a unique opportunity to not just envision the future of healthcare but to actively shape it. Together, we can ensure that our healthcare systems are not only prepared for the challenges of tomorrow but are also instruments of equity, innovation, and hope.
SPECIAL REPORT
GIUSEPPE SABA CEO AND BOARD MEMBER, DUBAI HUMANITARIAN
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n 2024, Dubai Humanitarian marked 20 years of global humanitarian service, a milestone that reaffirmed our commitment to innovation, resilience, and compassion in addressing global crises. While the anniversary provided a moment for reflection and celebration, it also underscored the ongoing challenges that shape our mission. Throughout last year, we faced severe humanitarian crises close to home. As regional geopolitics shifted and conflicts intensified, the demand for aid in our region and Africa surged. Vulnerable nations worldwide also continued to grapple with persistent struggles, from protracted conflicts to the devastating effects of climate change and health emergencies. Navigating these challenges required exceptional agility and steadfast resolve, highlighting the critical importance of Dubai Humanitarian’s role in emergency preparedness and response. In 2024, nearly 50 per cent of the aid dispatched by the Dubai Humanitarian community was directed to conflict zones. These regions, marked by volatile conditions and logistical complexities, often required us to revise operational and financial plans to ensure timely and effective relief. The remaining aid was allocated to areas impacted by health crises and climate-related disasters. These three focus areas, conflict zones, health crises, and climate emergencies, are shaping our long-term strategy, driving us toward a future rooted in innovative and sustainable humanitarian aid operations. Recognising that meaningful change requires collaboration, we continue to foster stronger partnerships with corporations, academic institutions, and research organisations. Together, we aim to redefine humanitarian aid standards, emphasising the role of diverse actors in achieving transformative outcomes. Our vision for the coming decades is focused on harnessing collective expertise and developing new approaches to address the growing complexity of global crises effectively. A cornerstone of our efforts in 2024 was the advancement of data-driven solutions in humanitarian operations. One of our key achievements was a breakthrough with the Humanitarian
As we look to 2025, our commitment remains stronger than ever. We are dedicated to driving innovation, leading with compassion, and making a tangible difference in the lives of those we serve.”
Logistics Bank, which connected global hubs in Italy and Panama to create a unified digital ecosystem. By facilitating the exchange of critical information across all humanitarian hubs, we aim to improve response times, optimize resource allocation, and enhance predictive planning capabilities. This accomplishment marks the beginning of a more interconnected and efficient approach to humanitarian logistics. These technological advancements are more than tools; they are enablers of better outcomes. By leveraging data, we can anticipate needs, allocate resources strategically, and respond with precision. Our commitment to innovation is rooted in the belief that smarter systems lead to stronger impacts, and we are determined to build on this momentum in the years to come. Sustainability has long been a guiding principle in our operations, and 2024 underscored its importance. In response to increasing global demand for sustainable practices, we took bold steps to reduce and trace our carbon emissions. This commitment is not just about addressing current needs but about safeguarding future generations. Consequently, we are striving to develop logistics systems that not only meet immediate demands but also contribute to mitigating the effects of climate change. As we look to 2025, our commitment remains stronger than ever. We are dedicated to driving innovation, leading with compassion, and making a tangible difference in the lives of those we serve. The path ahead will not be without challenges, but with a clear vision and a united community, we are confident in our ability to rise to the occasion. In the coming year, we will expand our partnerships, refine our strategies, and deepen our impact. Our focus remains unwavering: to deliver aid more effectively, sustainably, and innovatively, ensuring that no one is left behind. In doing so, we honor the legacy of the past two decades while paving the way for a brighter, more hopeful future.
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P OW E R L E T T E R S
SAMIR RANAVAYA CEO, HÄCKER KITCHENS BY INNERSPACE
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he year 2024 has been exceptional for Innerspace, the home of Häcker Kitchens in Dubai. When I look back at what we’ve achieved, I’m reminded of something simple but powerful: the relentless pursuit of perfection. Since day one, our formula has been straightforward — impeccable quality, delivered on time, backed by super customer service. This approach has served us well, and it continues to win the day. This year is an important milestone for us, it marks 15 years of Häcker Kitchens in the UAE. Häcker was a name that hardly anyone in the UAE knew 15 years ago, but through consistency, determination and a commitment to excellence, we’ve cemented ourselves as the number one kitchen interior brand in Dubai. It’s a humbling achievement, but not one that we take for granted. The growth of the UAE is inevitable. With the real estate boom and a rapidly expanding population, there’s no shortage of opportunities in our sector. As Dubai continues to grow, so too will Innerspace. We’re not slowing down. We plan to open more Häcker Kitchen Design Studios, getting closer to our clients and the fast-growing communities that surround us. It’s all about being there for our customers where they need us most. But let’s not get ahead of ourselves — there are still challenges ahead. While the demand for Häcker is stronger than ever, the real challenge is maintaining the things that got us here: top-quality products, timely delivery, and, of course, the customer service that we’ve built our reputation on. It’s never easy, but that’s what drives us to keep pushing forward. At the heart of our success, however, is something more than just strategy and growth. It’s the people who make Innerspace what it is. Our culture is what truly sets us apart, and it’s something I’m always focused on. We’ve built a company that stands on the values of excellence, integrity, passionate expertise and an entrepreneurial spirit,
It’s the little things that matter – those daily refinements that ensure not just a remarkable experience for our clients, but a rewarding one for our employees, too.” 50
what we proudly call “The Innerspace Way”. These aren’t just words to us — they’re the bedrock of everything we do. And the challenge? It’s attracting more incredible people to our team, especially when those values seem to be more rare than ever. Innovation and sustainability are at the core of what we do, too. We know that keeping open lines of communication with our clients and employees is crucial to continual improvement. It’s the little things that matter — those daily refinements that ensure not just a remarkable experience for our clients, but a rewarding one for our employees, too. After all, our customers and employees lie at the heart of everything we do. That’s why we’re just as focused on the employee journey as we are on the customer journey, fostering a culture of camaraderie, high performance, and self-development every step of the way. I’ve “run the gauntlet” more times than I can count throughout my career, and if there’s one thing I’ve learned, it’s this: Knowing when to be resilient or flexibile is the key to success. The flexibility to adapt, and the resilience to stand firm on our values without compromise, are what will continue to push us forward. If we stay true to our core values — “The Innerspace Way” — we’re ready for whatever lies ahead. Looking at 2025, I can’t help but feel optimistic as always. The opportunities are practically limitless. With our preparedness and a clear vision, I’m confident we’re in for another year of success, growth, and continued excellence. Let’s make it happen.
SPECIAL REPORT
THOMAS PRAMOTEDHAM CEO, PRESIGHT
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n the past year, the world has truly embraced artificial intelligence across all facets of business operations and Presight has experienced increased demand for AI products and solutions which clients can implement immediately. We call this ‘Applied Intelligence Today’ where AI and big data analytics are harnessed to solve real-world challenges and deliver greater value to our customers not at some point in the future, but now. The relevance of this approach was reflected in our Q3 numbers, and in November we reported a 9.6 per cent year-to-date revenue increase and a 16.2 per cent rise in profit before tax driven by three key following factors. These include a landmark contract with Jordan’s Ministry of Digital Economy and Entrepreneurship to transform healthcare services in the country, and the development of ENERGYai by Presight owned AIQ for ADNOC, highlighted our ability to address critical sectoral challenges with tailored AI solutions. The launch of the Presight Enterprise AI Suite, including Presight Vitruvian, Presight Connect, and the Presight Report Optimizer, brought new generative AI capabilities to businesses. Meanwhile, the Presight Intelli Platform transforms operations and management of the urban realm whilst the Presight Datahub is the UAE’s first sovereign enterprise data marketplace platform that lets organisations create data products, realise value and seamlessly exchange data. Presight also deepened its global presence through partnerships in Kazakhstan and Azerbaijan and also implemented similar in Latin America and across MENA. Our forecast is that demand for AI and big data analytics is set to accelerate even further next year. We see demand for applied intelligence solutions growing in 2025 and we’ll meet this demand by continuing to enhance the depth and relevance of our generative AI tools, aiming to create products and solutions that drive measurable benefits in efficiency, sustainability, and scalability across sectors like energy, finance, and smart cities.
As global organisations increasingly seek integrated solutions that combine AI and big data, Presight remains focused on practical, impactful technologies that align with societal and environmental needs.”
By combining domain-specific knowledge with advanced technologies, Presight is tailoring solutions for priority industries such as public safety, finance and energy. This focus enables faster deployment and immediate impact. We’ll also continue our international expansion into new countries and regions around the world. Initiatives such as the Presight AI-Startup Accelerator are designed to foster innovation by providing startups with resources, market access, and mentoring. As AI technologies evolve, several trends identified in 2024 are expected to influence the coming years. For instance, the generative and agentic AI evolution. Beyond generating content, AI is now being deployed for specialised tasks, from seismic analysis in energy exploration to decision-making in public safety. Tools like ENERGYai illustrate the role of AI in addressing sustainability goals, such as reducing emissions and optimising resource use. Similar applications are expected to expand across industries like logistics and urban management. With continued investment in infrastructure and partnerships, the UAE’s vision to become a global hub for AI and big data is gaining momentum. Initiatives like the development of sovereign AI models in Central Asia and partnerships with international technology leaders showcase the potential of such ecosystems to drive innovation. Presight’s work in 2024 has provided a foundation for sustained growth and innovation. As global organisations increasingly seek integrated solutions that combine AI and big data, we remain focused on practical, impactful technologies that align with societal and environmental needs. By refining its tools, supporting startups, and advancing responsible AI practices, Presight is positioning itself to navigate the complexities of an evolving technology landscape while contributing to meaningful progress in the sectors it serves.
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Innovating for a safer tomorrow By prioritising innovation, BAT is advancing its mission to deliver impactful solutions while addressing health concerns associated with conventional practices
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ritish American Tobacco (BAT) is leading the transformation of its industry by harnessing the power of innovation to shape a better future. Through science-driven solutions, BAT is addressing evolving consumer needs and fostering meaningful change. In the Gulf region, this vision is coming to life through pioneering initiatives that promote healthier alternatives and redefine the landscape of consumer choice. At the core of BAT’s strategy is its diverse portfolio of modern products tailored to meet the preferences of adult consumers. These offerings include cutting-edge alternatives, such as heated tobacco and modern oral products, which present reduced health risks compared to traditional tobacco. By prioritising innovation, BAT is advancing its mission to deliver impactful solutions while addressing health concerns associated with conventional practices. A KEY RESEARCH PLATFORM In September 2024, BAT unveiled the “Omni” platform at its inaugural Transformation Forum in London. This
evidence-based resource consolidates global research and BAT’s insights, showcasing the potential of harm reduction strategies to improve public health. Omni underscores BAT’s dedication to collaboration and transparency, highlighting its efforts to empower consumers with informed choices. Globally, Sweden has emerged as a powerful example of the success of harm reduction, nearing a smokeless status as defined by the World Health Organization. BAT draws inspiration from Sweden’s achievements and is working to replicate similar progress in the Gulf region, where regulatory support and consumer engagement are key to driving positive outcomes. Based in Dubai, BAT Middle
Omni underscores BAT’s dedication to collaboration and transparency, highlighting its efforts to empower consumers with informed choices.
East oversees operations across the Gulf Cooperation Council (GCC) countries and surrounding region. Its mission is clear: provide consumers with a range of innovative and less risky alternatives that align with their preferences. The Gulf region, with its dynamic markets and forward-looking outlook, offers a unique platform for BAT to lead transformative change. COLLABORATING TO ENABLE CHANGE By collaborating with regulators, public health experts, and stakeholders, BAT is paving the way for a future where informed decisions and innovation shape healthier consumer behaviours. Success stories like Sweden and New Zealand demonstrate the profound impact of accessible alternatives and supportive policies — principles that BAT is championing in the Gulf and beyond. As BAT continues to drive progress, its vision for a healthier, more sustainable future takes shape, offering consumers a modern approach to well-being and choice while advancing global harm reduction goals.
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BRAND VIEW
Dubai South: The new frontier for real estate investment Dubai’s real estate landscape is thriving, with areas like Dubai South gaining significant attention. Louai Abou Khzam, MD at Prosper International Real Estate, offers expert insights to help investors capitalise on this booming market
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ubai’s real estate market has always been dynamic, attracting global investors and residents alike. Historically, areas such as Downtown Dubai, Dubai Marina, and Palm Jumeirah have been at the forefront of the city’s landscape. However, a noticeable shift is taking place, with increasing attention turning toward the emerging Dubai South. This rapidly developing area is becoming a significant hub for both business and residential properties, driven by strategic infrastructure projects and growing demand across multiple sectors. KEY DESTINATION The ongoing development of Al Maktoum International Airport, one of the world’s largest airports, is a key catalyst for the area’s growth. This major infrastructure project enhances the region’s connectivity, providing businesses and residents with unparalleled access to international travel and trade routes, ultimately boosting demand in both residential and commercial real estate sectors. Moreover, Dubai South benefits from its proximity to other key landmarks, including Palm Jebel Ali, the Middle East’s busiest port, and iconic luxury destinations. These developments are attracting
high-net-worth individuals and international investors, further driving demand in the area. As the region continues to evolve, its expanding infrastructure is expected to create a solid foundation for sustained, long-term growth in real estate. As an SME of the Year 2024 awardedwinning company, Prosper International Real Estate is recognised for our significant contributions to Dubai’s real estate market, further solidifying our position as a key player in the sector. With a deep understanding of Dubai’s real estate trends, we are committed to guiding investors through informed decisionmaking and helping them capitalise on the growth of Dubai South. OFFERING STRATEGIC SOLUTIONS At Prosper International Real Estate, we collaborate with developers as partners or consultants on exclusive projects under our supervision in marketing and sales strategies. we are specialised in crafting strategic marketing and sales solutions
that engage target audiences, elevate brand visibility, and optimise investment returns. With a wealth of experience in Dubai’s real estate market, we collaborate closely with developers to drive the success of new projects. We work together with developers, ensuring that their visions are effectively communicated to potential investors. Our team’s expertise enables us to craft bespoke strategies that align with the unique characteristics of each project, from initial market research to the execution of high-impact campaigns. By fostering strong partnerships with developers, we ensure that our collaborative efforts not only enhance sales performance but also position new developments for long-term success in the market. At Prosper International Real Estate, we provide expert consultancy services designed to guide investors and property owners through Dubai’s dynamic real estate landscape. PROVEN TRACK RECORD Our team leverages deep market insights, strategic planning, and a comprehensive understanding of current trends to offer actionable advice that maximises returns and mitigates risks. Whether advising on property acquisitions, sales strategies, marketing leads, or investment opportunities, we focus on delivering customised solutions that align with our clients’ long-term objectives. With a proven track record in navigating complex real estate markets, Prosper International Real Estate is committed to helping our clients make informed, profitable decisions in all aspects of their real estate ventures. Dubai’s real estate market remains one of the most attractive investment destinations globally. With its world-class infrastructure, strategic location, and consistent economic growth, Dubai continues to offer unparalleled opportunities for investors. The city’s commitment to innovation, sustainability, and development ensures that it will remain a top choice for long-term investments.
Dubai’s real estate market remains one of the most attractive investment destinations globally.
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Designed to impress The world’s first Bugatti Home boutique opened its doors at The Dubai Mall Zabeel. Here’s what to expect on your visit p.56
“The Middle East is a region full of potential. The infrastructure is growing rapidly, and there’s a young, dynamic population driving both business and leisure travel. The investments being made into the region’s tourism and business sectors are impressive, and that growth is only going to continue.” Elie Maalouf, CEO - IHG Hotels & Resorts gulfbusiness.com
ASTON MARTIN VALHALLA The Valhalla is the luxury automaker’s mid-engined hybrid supercar. It is Aston Martin’s first series production mid-engined supercar and first plug-in hybrid, delivering the marque’s first production vehicle with a dedicated EV range capability. It is also the first model to use the bespoke 4.0-litre twin-turbo flat-plane crank V8 engine – the highest performing V8 engine ever fitted to an Aston Martin – and is the first to use the brand’s all-new eight-speed dual clutch transmission, which incorporates an e-motor and electronic rear differential. Performance targets include 0-100km/h acceleration in 2.5 seconds and an electronically limited 350km/h maximum speed. Production is limited to 999 units.
January 2025
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BUGATTI’S DRIVE FOR PERFECTION WIEBKE BAUER STÅHL, MANAGING DIRECTOR OF BUGATTI INTERNATIONAL, SHARES WHY THE AUTO BRAND UNVEILED ITS FIRST BUGATTI HOME BOUTIQUE IN DUBAI BY NEESHA SALIAN
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t the heart of Dubai’s most fashion forward destination, The Dubai Mall’s Zabeel extension, a new chapter in the art of luxury living has unfolded. The world’s first Bugatti Home boutique opened its doors in November last year, offering a masterclass in refined design that fuses the brand’s storied legacy of automotive excellence with the elegance of high-end interiors. This carefully curated space is far more than a showroom — it is a sanctuary where the spirit of Bugatti, renowned for its pursuit of perfection on the racetrack, finds its place in the home. In this exclusive interview, Wiebke Bauer Ståhl, MD of Bugatti International, reflects on the inspiration behind Bugatti Home’s debut in Dubai, the design principles that shape each meticulously crafted piece, and the brand’s bold vision as it moves beyond sports cars into the realm of luxury home decor. Tell us why you opened the world’s first Bugatti Home boutique in Dubai.
Dubai represents the pinnacle of luxury, innovation and ambition, making it the perfect location for our first Bugatti Home boutique. The city also aligns with our ethos of exclusivity and cutting-edge 56
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design. The new space offers clients a fully immersive experience where the world of Bugatti comes to life beyond the realm of hyper sports cars and showcases the lifestyle and artistry synonymous with the brand. How does Bugatti Home reflect the values and heritage of the Bugatti car brand?
The collection of furniture embodies values that transcend the automotive world: unparalleled craftsmanship, innovative design, and a harmonious blend of aesthetics and performance. Our sports cars push the boundaries of engineering and design, and Bugatti Home translates these principles into the world of interior luxury. Every piece pays homage to our heritage and celebrates Bugatti’s century-long pursuit of perfection and beauty. Could you elaborate on the design philosophy behind Bugatti Home’s furniture collections? How does the latest collection blend natural materials with technology-driven elements? Can you highlight any specific pieces?
Bugatti Home design is centred on the fusion of art and engineering. The 2024
collection is crafted from natural materials such as wood, leather and marble, paired with high-tech finishes like carbon fibre and aluminum, much like our hypercars. The TYPE_1 sofa is a standout piece, a transposition of the iconic Bugatti “C-Line”. The marriage of the leather-covered structure with the plush, expansive seating creates a striking contrast — a subtle nod to the “beauty and beast” philosophy seen with our cars. The TYPE_3 armchair is a standout piece in the new collection. Can you share more about its design inspiration and how it merges modern comfort with nostalgic charm?
The Type_3 armchair is a modern take on the inviting aesthetics of the 1970s, a blend of storytelling and daring design. It combines retro charm with contemporary comfort, creating a piece that is both evocative of the past yet supremely comfortable. Endowed with a sartorial flair, it features soft, enveloping cushions with deep folds, each hosting metal tags engraved with the EB logo in iconic Bugatti Blue. Its bold, impressive volumes are draped in soft leather or lustrous fabrics with a polished finish, adding to its luxurious and refined appearance. gulfbusiness.com
Lifestyle / Home Decor
contain the tails of a tailcoat. The leather is covered with an embroidered EB logo on the back, and the striking carbon fibre frame is crafted in Blue Royale. What was the collaboration process like with Luxury Living Group and The Mattress Store in bringing Bugatti Home to Dubai?
Wiebke Bauer Ståhl
The limited-edition Cobra Chair was part of Bugatti’s 110th anniversary collection. Tell us more about this iconic piece and its significance.
The Cobra Chair was originally envisioned by Carlo Bugatti, an Italian decorator, designer, and manufacturer of Art Nouveau furniture, and father of Bugatti founder Ettore. The chair is a symbol of the brand’s artistic roots and is now reimagined in a showcase of avant-garde design and exceptional craftsmanship. It is a nod to Carlo’s creativity, reflecting our innovation and boldness. The Cobra Chair combines a sleek curved back, base, and seat into a single element, interrupted only by a gap designed to
Collaborating closely with Luxury Living Group (LLG) and its UAE partner, The Mattress Store, was instrumental in making our vision for our first worldwide interiors retail concept a reality. LLG has unparalleled knowledge of the high-end furnishings industry, while The Mattress Store’s deep understanding of the Dubai and wider Middle Eastern market allowed us to connect more closely to our audience. The outcome of our collaboration, Bugatti Home’s debut boutique at Dubai Mall Zabeel, is quickly becoming a destination for cutting-edge design in a city where limits are boundless. Tell us more about the Bugatti Residences project in Dubai and how it ties into the Bugatti Home vision.
The Bugatti Residences are a groundbreaking architectural venture and represent our ambition to create immersive lifestyle environments, where one can live, breathe, and feel the essence of Bugatti in their daily life. Each residence will reflect Bugatti Home’s distinctive design language, with interiors that capture the
brand’s DNA through bespoke craftsmanship and avant-garde aesthetics. With Bugatti Home, the brand is expanding its offerings beyond automobiles. What is the long-term vision for Bugatti Lifestyle products, and what can we expect in the future?
Each Bugatti is a unique masterpiece, designed for and by its owner — it is by definition, closer to a piece of art than a car, and owning a Bugatti echoes a certain Art de Vivre. Accordingly, Bugatti envisions becoming a comprehensive luxury lifestyle brand, expanding our reach beyond hyper sports cars into fashion, home décor, potentially further residences, and even hospitality. The goal is to offer a holistic Bugatti experience that encompasses every aspect of living. Potential developments include new furniture collections, collaborations, and a series of experiential spaces that blur the lines between luxury, art and technology. How does Bugatti Home’s focus on sustainability and the use of fine materials contribute to the brand’s commitment to luxury and innovation?
Bugatti Home is committed to sustainability by prioritising materials that are ethically sourced and environmentally responsible. The collection leverages advanced production techniques to minimise waste while enhancing the durability of each piece. This approach not only reflects Bugatti’s dedication to innovation but also aligns with our vision of creating timeless luxury products that respect both heritage and the environment. What do you hope customers will experience when they visit the Bugatti Home boutique in Dubai?
The boutique offers an inspiring journey through the world of Bugatti, a welcoming space where our furniture tells the story of our legacy. Customers will experience the artistry, craftsmanship, and innovation that define the brand, surrounded by exquisite, show-stopping design pieces. The boutique is more than a showroom — it is a space where our excellence comes alive, a new home for the brand where guests can discover our savoir-faire and connect on a personal level. gulfbusiness.com
January 2025
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BRAND VIEW
AIX Racing brings the win home The success at AIX Racing’s home ground is a moment of immense pride, marking a defining chapter in the team’s journey
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IX Investment Group celebrates a milestone as Paraguayan driver Joshua Duerksen, proudly representing AIX Racing, secures a victory in the FIA Formula 2 Feature Race at the iconic Yas Marina Circuit. The success at AIX Racing’s home ground is a moment of immense pride, marking a defining chapter in the team’s journey. The achievement highlights AIX Investment Group’s unwavering commitment to excellence and innovation, both on and off the track. Duerksen’s masterful performance showcased strategic brilliance, precision, and resilience, navigating the challenging circuit to claim a wellearned victory under competition. The success at Yas Marina marks a defining moment for AIX Racing and
reinforces its dedication to developing future champions. By supporting exceptional talent like Duerksen through We Are The Future, AIX continues to shape the next generation of motorsport icons.
The triumph not only marks a thrilling season finale but also embodies AIX’s vision of nurturing talent through We Are The Future, solidifying both Duerksen and AIX Racing as rising forces in global motorsport.
The achievement highlights AIX Investment Group’s unwavering commitment to excellence and innovation, both on and off the track. Duerksen’s masterful performance showcased strategic brilliance, precision, and resilience, navigating the challenging circuit to claim a well-earned victory under competition.
Lifestyle / Hospitality
Pics: Supplied
MAALOUF’S MISSION: DRIVING IHG’S GROWTH FOR SUSTAINED SUCCESS
IHG HOTELS & RESORTS CEO ELIE MAALOUF SHARES INSIGHTS ON THE GROUP’S GROWTH, LEADERSHIP AND STRATEGY IN EMERGING MARKETS BY NEESHA SALIAN
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n a conversation with Gulf Business, IHG Hotels & Resorts’ CEO Elie Maalouf reflects on his leadership journey, IHG’s expansion in key global markets, and the role of partnerships in driving success. From capitalising on emerging markets to leveraging technology and sustainability initiatives, Maalouf shares insights into the company’s strategic vision and what lies ahead for the hospitality giant. Elie, you’ve now been CEO of IHG for a year and a half. What was your mindset going into this role? What were the key areas you focused on in those first few
gulfbusiness.com
months, and how do you assess the progress after this period?
I’m fortunate to have stepped into a role with a very solid foundation. This wasn’t a turnaround situation, and the business was performing well. It was a natural succession, and I had been running the largest part of the business for eight years and serving on the board for six, so I couldn’t exactly say:, “This isn’t my responsibility.” The company was in a good place, but the industry is dynamic, and your strategy needs to be flexible to keep up with that. My first step was to assess where we were by engaging with our people, hotel investors, shareholders, and customers. The goal
was to identify what we were doing well, what could be improved, and how much potential the company had. What became clear during this process is that the opportunity before us is far greater than I had initially realised. There’s so much untapped potential that will take time to realise fully. It’s not something that will be completed in my tenure — it’s a long-term journey. From there, we started asking, “How do we get there?” We needed to identify January 2025
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with partners like Aldar, for instance. How important are these relationships to IHG’s strategy moving forward?
what we were doing right, what we had to change, and where to focus. One of the key areas we realised we had to approach differently was our strategy for emerging markets, particularly in the Middle East, India, and Southeast Asia. Looking at emerging markets, what specific steps did you take to capitalise on these regions?
We leveraged the lessons we learned from our success in China, where we grew rapidly over 50 years. We asked ourselves: how can we replicate this in other emerging markets, but also in mature markets where we still have low brand penetration, like Japan and Germany? These countries have strong tourism and business travel, but there’s still a significant opportunity for brand growth. In the Middle East, India, Southeast Asia, Japan, and Germany, we’ve seen a strong pipeline of hotel openings, which is a good indicator of future growth. For instance, our pipeline in India is set to double the number of hotels we currently have there. In Japan and Germany, we are also seeing 50-100 per cent increases in pipeline growth compared to our existing portfolio. The Middle East is another strong focus, where we’ve grown our pipeline to over 50 per cent of what’s currently open, and we have nearly 150 hotels open with another 100 under development. That’s a significant amount of growth. What do you think has driven this success, particularly in such diverse markets?
The key to success has been a combination of leadership, strategic clarity, and alignment across the entire organisation. The company was already motivated, and there was no real sense of stagnation. However, we needed to redefine our ambition. We needed to ask, “How far can we go in the next five years, and what will it take to get there?” We rallied the team around a clear vision and set specific objectives. This gave people a sense of purpose and ownership in achieving our goals. Everyone, from senior leadership to the front-line staff, plays a role in growing our brands, expanding our market share, and ensuring the success of our loyalty programmes and ancillary services. Leadership, ultimately, is about creating that vision, securing the right resources, and fostering a culture that supports everyone in achieving those objectives. 60
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We also identified and reinforced four core cultural behaviours that were essential to making this vision a reality. The hospitality industry is collaborative by nature, and without strong teamwork, none of this would be possible. Whether it’s a team in operations, marketing, or development, we all rely on each other to succeed. So, as you look at the specific needs of the Middle East region, what’s required to continue driving success here and build on the momentum IHG has established?
The Middle East is a region full of potential. The infrastructure is growing rapidly, and there’s a young, dynamic population driving both business and leisure travel. The investments being made into the region’s tourism and business sectors are impressive, and that growth is only going to continue. Our position is strong — we are the largest hotel group in the region, and we’ve been here for over 50 years. We were the first InterContinental opened in Beirut in 1963, and we’ve continued to expand our footprint ever since. But as we look ahead, we’ve had to reassess our brand portfolio and tailor it to meet the specific needs of the diverse markets here. For example, the strategy for growing our presence in Mecca and Medina is very different from the strategy in Riyadh or Dubai. In cities like Dubai and Doha, we need to focus on luxury and lifestyle brands, while in places like Riyadh and Jeddah, business-oriented properties are more critical. We’ve already seen strong progress. We’ve introduced new brands into the region, such as Kimpton in Jeddah and Vignette in Dubai, and we continue to invest in longterm growth. This approach will ensure that we remain a leader in the region, capturing the ongoing growth and partnering with investors who share our vision. What role have partnerships played in IHG’s growth in the region? You’ve worked
Partnerships are absolutely critical to our success in the region. We’ve worked with strong, long-term partners like Aldar to help us expand our footprint and ensure that we have the right expertise and local insight to drive growth in these markets. It’s a key part of our strategy to work with investors who are aligned with our vision and who can support the type of growth we want to see. Whether through local partnerships or institutional investors, these relationships allow us to scale our business more effectively and ensure we’re well-positioned to lead in these rapidly growing markets. Tell me more about these partnerships, and how do you go about deciding that these are the right partnerships for you, particularly in this region?
That’s the essence of what we do. We’ve partnered with hotel investors around the world since the first day of this company. Unlike some of our competitors or other successful companies in this industry, our heritage isn’t in hotel ownership. Our focus has always been on managing and franchising for other investors. The core of our company’s culture is working closely with hotel investors, building strong partnerships. My background is in real estate development, so I have a deep understanding of our investors. I work hard to ensure that the rest of our teams are aligned with them. Everything we do is about ensuring that our partnerships benefit not just our guests, but our investors, who are putting up significant capital to develop, operate, and grow IHG brands. This trust is not just about numbers and technology; it’s about personal relationships. When I’m in markets like Dubai, I spend the majority of my time meeting with hotel investors. The same goes for Doha and Saudi Arabia. It’s a relationship business, and I lead by example, ensuring my team follows the same approach. How do you maintain consistency and quality across these managed franchises?
It’s not easy, but if it were, everyone would do it and be successful. We’ve been doing this for a long time. For our mainstream brands like Holiday Inn and Holiday Inn Express, consistency is key. We ensure the same experience gulfbusiness.com
“In the Middle East, India, Southeast Asia, Japan, and Germany, we’ve seen a strong pipeline of hotel openings, which is a good indicator of future growth. For instance, our pipeline in India is set to double the number of hotels we currently have there.” across locations — same room design, features, breakfast, etc. People want predictability, especially for short stays. As we move into premium and luxury segments, customers still want consistency, but they also seek delight and surprises. They don’t want negative surprises, but they do appreciate unique experiences. However, some fundamentals remain unchanged: a great night’s sleep, a refreshing bathroom experience, excellent wellness facilities, and quality food. These must always meet a high standard. It’s about balancing the unique, delightful experiences with quality, while also ensuring good returns for our investors. It’s a challenge, but with decades of experience and strong relationships with both guests and investors, we find that balance. What are the key trends that have evolved, especially in this region, that have surprised you and what will lay the foundation for how customer experience changes here?
The trends in this region aren’t drastically different from global trends, but there are some unique aspects. One significant trend here, especially in the Gulf, is the blend of business and leisure. People come to cities like Dubai, Riyadh, or Doha for business, but extend their trips for leisure. The region’s great weather, entertainment options, and diverse attractions make it easy to combine both. Our job is to ensure that business travellers are at their best when they arrive — whether that’s making sure they get enough sleep, the breakfast they need, or that their meeting rooms are ready. Once they switch to leisure mode, we aim to provide them with a memorable experience. The blending of business and leisure has really taken off here, and it’s shaping how we design our properties and services. The second trend is loyalty. Our ‘One Rewards’ programme is continuously evolving to be more personalised and customisable. It’s not just about points; gulfbusiness.com
members can choose from food and beverage, room upgrades, or other rewards. By the end of this year, we’ll add a chatbot powered by Google to help guests plan their trips using AI. This is all part of our commitment to staying relevant and offering personalised experiences to our loyal customers. How is the group using technology to enhance services in different areas? I’m sure the investment is huge.
We are investing heavily in technology to improve both operational performance and customer service. For example, we’re rolling out a new revenue management system aross our hotels. This system uses machine learning and AI to optimise room pricing, helping our hotel investors get the best yield. It’s already being deployed in nearly 3,000 hotels, and by next year, it will be in all 6,500 of our properties. This tool uses data analysis to help revenue managers make smarter decisions on pricing and availability. On the customer service side, AI plays a huge role in language translation. Whether it’s live voice or chat support, AI helps our teams communicate with guests in different languages, even understanding nuances in the way words are used across cultures. For example, a guest calling from India might speak English, but their language and customs could differ from what a Portuguese-speaking agent would expect. AI helps bridge that gap, enhancing customer service. When it comes to innovation and new brands, how do you decide what is best for the group? Could you share some examples?
We don’t launch new brands casually. We do it when we identify a gap in the market — when there’s customer demand and a significant number of hotel investors looking to build for that demand. If we’re not present in that segment, and it’s of scale, we move forward. For example, when
we launched the Garner brand, we saw a need for a conversion brand in the midscale US market — high-quality properties that could join IHG without undergoing a complete overhaul. It’s been a great success, already expanding beyond the US to Europe and Asia. On the luxury side, we acquired Six Senses because we saw that some guests wanted an even more exclusive and experiential luxury experience than what InterContinental offered. Six Senses has no meeting spaces, is designed for total relaxation and privacy, and caters to customers looking for exclusivity. Our acquisition of Six Senses and our focus on expanding the luxury lifestyle segment have been very successful. How is sustainability playing out at IHG?
Sustainability is integral to how we operate and grow our business responsibly. Our ‘Journey to Tomorrow’ sustainability programme focuses on three key areas: people, communities and the environment. For people, we aim to create an inclusive, diverse workplace where everyone has the same opportunities for growth and success. We believe in fostering a welcoming culture, which is especially important in a global company. In terms of community, we’re committed to supporting local communities, particularly in times of crisis, through disaster relief and workforce education. On the environmental front, we focus on reducing our carbon footprint and energy consumption. We work with our hotels to implement energy-efficient technologies and ensure we’re doing our part to keep the planet welcoming for future generations. What are your plans for the year, and what can we expect from IHG in the future?
I’m optimistic about the future. We don’t give quarterly guidance but have longterm confidence in the growth of the hospitality industry. While the global economy faces challenges, particularly with crises like the ones in Ukraine and the Middle East, other regions like Southeast Asia, the US and Europe are stable, and we see strong growth in the Middle East. We expect continued growth in key markets, though we remain mindful of the cyclical nature of the industry. We believe that, over the long term, the hotel industry will continue to thrive. January 2025
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RING LEADER THE SAMSUNG GALAXY RING, ULTRAHUMAN RING AIR, AND OURA RING 4 — THREE HEAVYWEIGHTS IN THE WORLD OF WEARABLE TECH. LET’S SEE WHICH ONE FITS YOU THE BEST
Pics: Samsung
Samsung Galaxy Ring
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he Samsung Galaxy Ring merges cutting-edge technology with luxury, available in three finishes – Titanium Black, Titanium Silver, and Titanium Gold. Weighing between 2.3gms and 3gms, depending on its size, this Grade 5 Titanium ring offers both durability and comfort, measuring 7mm in width and 2.6mm in thickness. It’s built to withstand daily use with a 10ATM (100 metres) water resistance rating and IP68 certification. This makes it ideal for swimming but not high-pressure water activities like diving. Inside, the Galaxy Ring boasts an accelerometer, PPG heart rate sensor, and skin temperature sensors for real-time fitness tracking. The 8MB of internal memory ensures smooth Bluetooth 5.4 connectivity with Android devices (Android 11 or higher). Battery life lasts between 6 to 7 days, depending on size, with a compact charging case providing up to 40 per cent charge in 30 minutes. Samsung’s thoughtful design ensures comfort 24/7, whether you’re exercising, sleeping, or going about your day. A free sizing kit helps users find the perfect fit, crucial for accurate tracking. The ring’s elegant design, advanced health features, and long battery life make it an excellent choice for users seeking both style and function. PROS: • Lightweight, stylish design • Advanced health sensors • Long battery life (up to seven days) • Water-resistant (IP68, 10ATM)
CONS: • Wireless charging sold separately • Not suitable for high-pressure water activities
Price: From Dhs1,499 Available: Samsung UAE and across major retail stores in the UAE
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Lifestyle / Gadget Review
Ultrahuman Ring AIR
PROS: • Real-time heart rate tracking • Sleek, lightweight design • Great battery life for extended use • Comfortable for all-day wear CONS: • Workout Mode still in beta, potential data fluctuations • Fewer features than larger devices like smartwatches
Price: Dhs1,364 Available: Virgin Megastore UAE
Pics: Oura
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he Ultrahuman Ring AIR is designed with fitness enthusiasts in mind. A standout feature is its Workout Mode (Beta), providing real-time heart rate monitoring during workouts. This feature is essential for optimising workout intensity, whether you’re running, cycling, or weightlifting. While in beta, the heart rate tracking may occasionally fluctuate during high-intensity movements, but Ultrahuman is refining this for better accuracy. Made with lightweight, durable materials, the Ultrahuman Ring fits seamlessly into daily life, offering 24/7 wearability. It’s sleek, unobtrusive, and available in multiple sizes and finishes. Users can expect several days of battery life, even with continuous heart rate monitoring, and the included charging case provides convenient on-the-go power. Despite the Workout Mode being in beta, it offers valuable insights and is likely to evolve into a more reliable tool. The Ultrahuman Ring AIR is a great option for those who prioritise fitness tracking in a discreet, comfortable form factor.
Oura Ring 4 The Oura Ring 4 continues the brand’s legacy of precision health tracking. Known for its exceptional sleep tracking, the Oura Ring 4 measures light, deep, and REM sleep, offering a ‘Sleep Score’ based on duration and quality. It also tracks daily activity and provides a ‘Readiness Score’, which helps guide your exercise intensity based on your recovery status. New to the Oura Ring 4 is a SpO2 sensor, which tracks blood oxygen levels, an essential metric for monitoring sleep quality and overall health. The ring uses infrared sensors, accelerometers, and gyroscopes to track movement, temperature fluctuations, and heart rate. With a battery life of our to seven days, the Oura Ring 4 only needs an 80-minute charge, making it convenient for busy lifestyles. It’s crafted from titanium, ensuring both comfort and durability. The Oura App (available on iOS and Android) provides detailed insights and integrates with other services like Google Fit and Apple Health for holistic health tracking. This ring is perfect for those seeking a stylish, high-tech wearable that delivers accurate health data, especially for sleep and recovery optimisation.
Pics: Ultrahuman
PROS: • Sleek, comfortable design • Comprehensive health tracking (including SpO2) • Impressive battery life (up to seven days) • Detailed insights via the Oura app
CONS: • Higher price point than basic trackers • Requires the Oura app for full functionality • Limited device compatibility
Price: Dhs1,400-Dhs2,000 Available: Amazon UAE, Noon, Oura official website
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January 2025
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JAN
The SME Story
25
A dedicated hub for the regional startup and SME ecosystem
Driving digital transformation Whizmo and Locad are redefining the digital landscape for SMEs in the GCC. From financial inclusion through mobile wallets to smart digital logistics for e-commerce, both companies are offering innovative solutions that enable businesses to scale, simplify operations and tap into new global markets BY NEESHA SALIAN
Whizmo was built with the mission of democratising financial services, where ease, accessibility, and empowerment are at the forefront. Since its inception, we have envisioned it as a preferred mobile money solution delivering comprehensive, seamless financial services that cater to the unique needs of both individuals and businesses. Our founding members noticed and identified several financial barriers that limit opportunities and inclusion, particularly for underserved and unbanked communities that heavily rely on cash. We recognised the urgent need to bridge this gap and, driven by a strong commitment, we set out to create a solution that empowers everyone to fully participate in the nation’s financial ecosystem. The concept for the Whizmo App further took shape within the supportive environment of the UAE. With nearly 96 per cent smartphone penetration, widespread internet connectivity reaching up to 99 per cent, and a progressive regulatory environment fostering innovation, the country offered an ideal foundation for building an allin-one financial app, poised to serve as a 64
January 2025
transformative solution for financial inclusion. Can you share what makes Whizmo different from the others in the market?
Whizmo sets itself apart by focusing on simplicity and convenience. At its core, it offers you a secure digital mobile wallet packed with a multitude of innovative features. Whether storing funds securely, making smart QR payments, paying utility bills, or facilitating local and international money transfers, Whizmo simplifies these daily tasks for its users. A key market differentiator for the Whizmo wallet is that it operates without the need for a traditional bank account, offering greater flexibility to users. This is feasible through our growing distribution network of cash points and merchants. Merchants are businesses that accept payments through the Whizmo App, while cash points facilitate the conversion of physical currency into e-money, allowing users to load their Whizmo wallets or withdraw funds. These cash points are local businesses, such as grocery stores, restaurants, salons, and more. By transforming these micro, small, and medium Enterprises (MSMEs) into
Pics: Supplied
Tell us what inspired you to start this business.
Eric Karobia, CEO, Whizmo
financial access points, Whizmo aims to empower them by increasing their transaction-based revenue, as well as driving more footfall to their establishments. Talk us through the tech driving your business.
Whizmo takes pride in being a locally developed mobile app, created entirely in the UAE by a team of dedicated technology professionals. Leveraging state-of-theart design and cloud-native technology, we’ve created a highly scalable platform that meets market demands and adapts swiftly to customer expectations, which is our competitive advantage in the rapidly evolving fintech sector. Our dedicated gulfbusiness.com
Tell us about your funding, expansion and regulatory permissions.
Whizmo is a service offering of Whizpay Technology, a company that has secured significant seed funding from founding members and strategic investors. We are licensed and regulated by the Central Bank of the UAE to conduct stored value facilities and retail payment services and card schemes. At this stage, our focus remains squarely on expanding within the UAE market and prioritising this as our key objective. We are grateful for the enthusiastic support of our early adopters and remain committed to enhancing our users’ experience through their valuable feedback. As our business continues to grow, we will look into
the possibilities of forming new alliances and welcoming partnership opportunities with prospective investors in the future. What are some of the key trends you see driving the fintech market, and how do you see that evolving in the next year?
The UAE’s flourishing fintech sector stands as a testament to the nation’s commitment to innovation and digital advancement. With rapid growth in the adoption of digital services, the use of financial apps has experienced a remarkable surge. Digital payments in the UAE are expected to hit about $30bn this year and are growing at 8 per cent annually. With over 800,000 businesses, including 600,000 MSMEs, and a population exceeding 10 million, the demand for accessible and efficient financial solutions is ever-increasing. Also, there has been remarkable growth in peerto-peer payments in the UAE, facilitated by platforms like Whizmo. The country is strategically positioned to lead the GCC’s P2P payment market, which is projected to expand at a CAGR of 8.68 per cent between 2024 and 2030. I am confident that we will see even greater investments and breakthroughs in the fintech space, positioning the UAE as a global leader. Beyond transactions, fintech platforms are also addressing the holistic wellbeing of people by empowering them to take control of their finances, introducing tools for alleviating financial stress, and supporting mental wellness by acting as a catalyst for change. We are witnessing a customer-led revolution where evolving consumer needs shape both demand and competition. The UAE’s fintech industry is well-positioned to meet these dynamic changes, staying agile and responsive to the shifting expectations of its users.
DIGITAL PAYMENTS IN THE UAE ARE EXPECTED TO HIT ABOUT $30 BILLION THIS YEAR AND ARE GROWING AT 8% ANNUALLY
gulfbusiness.com
Pics: Supplied
R&D team consistently monitors emerging trends, enabling Whizmo to stay ahead and proactively respond to ever-evolving consumer needs. We’ve introduced an intuitive chat-based interface, allowing users to access services without navigating through multiple pages, making interactions fast and straightforward. The app’s robust architecture enables seamless integration with a broad range of financial systems, fostering interoperability across diverse third-party networks. Our platform is also designed to handle substantial transaction volumes efficiently, supported by its high TPS (transactions per second) capabilities. Our users are digitally onboarded and authenticated through UAE Pass, enabling instant, compliant verification in line with KYC and AML regulations. To further enhance the customer experience, we offer 24/7 support across various channels, including calls, social media, and in-app chat, ensuring users have assistance whenever they need it.
Constantin Robertz, CEO, Locad
What inspired the creation of Locad, and how does its business model work?
Locad was founded with the aim of providing a cloud-based supply chain solution for consumer brands, ranging from small and mid-size businesses to leading global enterprises. The vision behind Locad was to create a plugand-play platform for smart digital logistics, tailored for e-commerce and modern retail. Our goal was to enable any brand to make their products available in key markets, across all sales channels, while delivering a localised customer experience. We encourage brands to “Go Local, to Grow Global”, meaning they should place their stock closer to consumers in target markets, sell omnipresently across various sales channels, and offer localised experiences in areas like checkout, last-mile delivery, and returns. Our own experiences working with large e-commerce platforms revealed how challenging, costly, and time-consuming it is to build logistics infrastructure from scratch. This led us to the idea of offering “commerce infrastructure as a service”, which allows brands to grow faster by leveraging a strong global logistics partner built specifically for e-commerce. Today, Locad supports over 300 consumer brands, offering smart digital logistics solutions that enhance operational efficiency and customer experience. January 2025
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The SME Story / Interview
What challenges does Locad address, and what makes it uniquely positioned to solve these issues?
Locad addresses three key trends that are shaping global commerce: Rise of e-commerce: As e-commerce penetration increases across all major markets, it disrupts traditional consumer goods supply chains. Traditional logistics methods, which were slow and lacked visibility, are no longer sufficient for today’s world of instant commerce, where products are delivered in a day, and real-time inventory and supply chain visibility are expected. To meet these demands, there is a need for smart digital logistics networks. Omnichannel commerce: Modern brands often sell across multiple channels, both online and offline. Managing each channel as a separate entity with segregated inventories, siloed data, and fragmented logistics creates inefficiencies and waste. Locad solves this by offering both software and logistics infrastructure as a service, which streamlines operations and creates more transparent, cost-efficient supply chains. Borderless commerce: As commerce becomes increasingly global, many brands want to expand into international markets. However, cross-border e-commerce presents complex challenges, including dealing with duties, taxes, customs, and local delivery networks. Locad simplifies this by providing a plug-and-play solution for seamless international expansion. Congratulations on raising $9m recently. Tell us more about it.
We are excited to have secured $9m in our pre-Series B round, and we are grateful to welcome new investors, including Global Ventures and Sumitomo Equity Ventures, alongside our existing supporters. We plan to allocate the proceeds from our Pre-Series B funding into three key areas: Market expansion in the GCC: We will be focusing on entering the GCC markets, starting with the UAE and Saudi Arabia, where we plan to go live in January 2025 with four regional fulfilment centres and extensive local and cross-border logistics solutions. Tech investments: A significant portion of the funding will be directed towards developing the technology and AI stack 66
January 2025
LOCAD HAS SECURED $9M IN ITS PRE-SERIES B ROUND, WELCOMING NEW INVESTORS
Locad co-founders (L-R): CTO Shrey Jain and COO Jannis Dargel
that powers smart digital supply chains for e-commerce and retail. Locad Borderless: We will invest in “Locad Borderless”, our offering for brands that sell across international markets. This will leverage our network of 25 local fulfilment centres and integrate factory-to-door supply chain solutions, enabling seamless cross-border commerce. How do you see the e-commerce landscape and trade market evolving in the GCC region?
The region has experienced remarkable growth in e-commerce, and the market has now reached a critical mass. The annual double-digit growth rates indicate that much of this market growth is still ahead of us. The region offers huge potential for further integration of e-commerce trade, such as helping UAE-based sellers reach customers in Saudi Arabia and vice versa. The free trade zones in the UAE, combined with its efficient air and sea transport links, make it an ideal hub for distributing inventory across the region. Saudi Arabia, in particular, is making significant investments in logistics infrastructure, positioning itself as a competitive hub both regionally and globally in alignment with Vision 2030. The region’s strong consumer markets provide attractive opportunities for global brands to localise and expand within the GCC, and we also see substantial potential for homegrown brands to go global. Given the GCC’s strategic geographical position as a supply chain hub between APAC, Europe, and MENA, along with its top-tier infrastructure, we believe the region is well-positioned to enable global trade and commerce. Can you share any success stories or case studies that highlight the impact of Locad’s technology?
Our technology stack is built around
three core systems, all of which are closely integrated: Commerce OS: Our merchant-facing operating system integrates order and inventory management with a Merchant Control Tower and API connections to major e-commerce and retail platforms. Warehouse OS: Our warehouse operating system streamlines fulfilment processes across our network of warehouses, enhancing efficiency, accuracy, and realtime traceability. Transport OS: Our transport and shipping management system connects Locad to a broad range of carriers, enabling efficient last-mile delivery. Several success stories highlight the impact of our technology, including Love Luggage, which successfully transitioned from offline retail to e-commerce, and Ayurveda, which expanded into new markets like Australia. We also enable seamless integration with major platforms like Shopify, Amazon, and Zid, which allows brands to optimise inventory and delivery management across multiple sales channels. What is your long-term vision for Locad, and where do you see the company in the next five to 10 years?
Locad’s long-term vision is to build the infrastructure of modern commerce, offering a global platform for smart digital logistics. We are uniquely positioned to become a leader in providing comprehensive solutions for brands with global aspirations. Our mission is to expand Locad internationally, with plans to grow our presence in the US and the GCC. We aim to make it easier for brands to sell anywhere in the world while providing a fully localised customer experience. Through our continued growth and expansion, we hope to empower brands globally, ensuring they have the logistics infrastructure to grow seamlessly and efficiently. gulfbusiness.com
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