How AI Will Change the Workplace
We asked some top thinkers from different fields to weigh in on what’s ahead, as the AI explosion compels businesses to rethink, well, almost everything
11 min
Artificial intelligence has been affecting how we work for some time—helping to craft job postings and evaluate applications, judging how efficiently we complete jobs and, for gig workers, determining assignments and pay.
But in the past year, and especially the past six months, generative AI has supercharged the potential of technology to help, hinder or reorient how we work. Visual tools like DALL·E 2 and Midjourney may drastically change graphic design. Large language-model text generation, beginning in earnest with the release of ChatGPT, promises to affect every activity that involves touching a keyboard.
To learn more about how the worlds of work and AI will interact, we spoke with experts in computer science, human resources, recruiting, corporate leadership, psychology and more. Here are some of their predictions.
Automating ideas
AI will continue the current process of automating parts of workers’ jobs. But while today’s automation is often described as applying to dull, dirty and dangerous tasks such as moving parts in a factory or warehouse, generative AI brings a new dynamic: Primarily, it supports knowledge work by providing the ability to create first drafts of documents, emails, presentations, images, video, product designs, etc.
So, knowledge workers might spend more time editing than creating, particularly as generative AI is embedded into all the software products they use today. For instance, instead of an email system just typing ahead a few words, it could draft several paragraphs. Customer-relationship-management software could suggest topics to discuss with a sales prospect and even a script to follow. And a salesperson could describe a presentation in natural language, and draft slides could be created, accessing corporate data and images to fill out details.
But there are some GenAI applications where the potential to have transformative impact really comes to the fore: For example, in research and development, some experiments using generative AI to support writing software code have shown very high levels of increasing productivity. But that doesn’t mean we’ll need a lot fewer software engineers, because the world needs more software. Generative AI also has the potential for improving the productivity of contact centres. There already were technologies that could automate interactions with customers; generative AI has the potential for making these interactions feel much more natural.
—Michael Chui, partner, McKinsey Global Institute
Flatter organisations
Artificial intelligence is likely to flatten many organisations due to its ability to automate work activities. Right now, most organisations have entry-level people who perform routine tasks, midlevel individuals who supervise them and high-level employees who set the direction of the organisation.
That organisational structure will no longer be necessary. AI can automate many of the tasks performed by entry-level workers. Accounting features, purchase orders and job requisitions are already being automated, and workplaces no longer need people who manually compile or analyse information.
As generative AI becomes more widely deployed, even more tasks will be automated. In addition, job supervision and assessment won’t need as much human oversight. Customers can rate employees on how well they perform basic tasks and allow people to get the services they want. Using data analytics and AI, companies can use the responses to weed out low-performing workers and reward their top individuals. The end result will be fewer layers of management and a smaller number of employees overall in the organisation.
—Darrell West, senior fellow, governance studies, Brookings Institution
How human are we? Machines will tell us
In the past, managers turned to software to judge workers on technical matters—counting keystrokes or time away from the screen. Now companies are using machines to judge how much empathy their employees show.
I was recently sent a “management tip of the day,” advice on how to prepare for a job interview conducted by an artificial intelligence—a process that is all too common these days. A good score required that I appear “natural” with the machine, defined as injecting “authenticity and humanity to the interview.” It seemed a through-the-looking-glass request. A machine would be judging me on qualities that only human beings can exhibit.
The AI judgments don’t end with interviews. It is increasingly common for corporations to use AI programs to monitor employee empathy on the job. For instance, in call centres, AI programs coach and score workers on an empathy scale to judge their performance with callers.
With the addition of ChatGPT to a full suite of office products, texts, emails and calls, there is no limit to the interactions that may be judged by pretend-empathy machines. They will pretend to understand jealousy, competition, depression and insecurity, all the messy human feelings that come up in the life of a firm.
When machines test us on how we respond to such human complexities, high scores may go to those who exhibit qualities that machines value most—consistency and a bias toward tidying up what seems messy. Those who don’t stack up may lose their jobs.
It is backward thinking: Technology redefines human empathy as what machines can understand. Having built the machines that will judge us, now we will train ourselves to please the machines.
—Sherry Turkle, author and Abby Rockefeller Mauzé Professor of the Social Studies of Science and Technology, Massachusetts Institute of Technology
A threat to ethics
We are already seeing the rise of digital assistants that speak with a human voice and can use human appearance and social intelligence to negotiate disputes, brainstorm business strategies or conduct interviews. But our research illustrates that people may act less ethically when collaborating via AI.
Traditionally, teammates establish emotional bonds, show concern for each other’s goals and call out their colleagues for transgressions. But these social checks on ethical behaviour weaken when people interact indirectly through virtual assistants. Instead, interactions become more transactional and self-interested.
For instance, in typical face-to-face negotiations, most people follow norms of fairness and politeness. They feel guilt when taking advantage of their partner. But the dynamic changes when people use an AI to craft responses and strategies: In these situations, we found, people are more likely to instruct an AI assistant to use deception and emotional manipulation to extract unfair deals when negotiating on their behalf.
Understanding these ethics risks will become an active focus of business policy and AI research.
—Jonathan Gratch, professor of computer science, University of Southern California
An edge for the aged
AI will enable older workers to be seen, even by those with ageist eyes, as young again.
Younger adults tend to excel at work that uses fluid intelligence that involves analysis and solving discrete problems quickly. Older workers are thought to exhibit greater crystallised intelligence—the capacity to leverage experience and knowledge gained over years to quickly see patterns, nuance and emotional insights, and the capacity to determine which problems should be addressed and which are just noise.
AI is likely to provide a kind of augmented intelligence to older workers, enabling experienced professionals to fully leverage their talent and skills.
For example, AI will be an invaluable collaborator with physicians, speeding the collection and organisation of critical information such as patient symptom history, genetic profiles, medication interactions, as well as past successful treatment plans for similar conditions, etc. These systems will enable physicians of all ages to gather information quickly, but older doctors will be better equipped to apply their years of experience and knowledge to validate AI diagnoses and treatment recommendations.
AI will be more than a collaborative assistant to older workers. It will also be a valuable coach. The sheer growth and velocity of knowledge and technology is making training and upskilling essential. Unfortunately, many employers don’t invest in older-worker education. Now AI applications are being deployed in workplace education to address individual learning and knowledge gaps, helping older workers remain current and competitive.
—Joseph F. Coughlin, director of AgeLab, Massachusetts Institute of Technology
Navigating new tech
Today, most organisations suffer from a “digital dexterity gap,” where the workforce is largely unable to keep pace with fast-changing technology. Organisations have more technology than their employees are comfortable using, creating barriers to efficiency and productivity growth.
AI services strip away complexity. By using conversational interfaces and natural-language processing, AI removes the need for workers to master complex computer functions and menus. People simply describe what is needed, in nontechnical language, and refine their requests to get better output.
An employee, for example, could give an AI historical data and say, “Find and rank all the variables that will determine the market potential for this new product.” Before conversational interfaces were developed, getting the information would require a lengthy and complex series of interactions.
—Matt Cain, vice president and distinguished analyst, Gartner
An opportunity for building talent
As AI takes over routine tasks, there will be a temptation to cut the whole tier of entry-level employees: Summarising documents, answering routine emails, writing basic computer code and solving simple logistical challenges are all tasks that AIs can do about as well as an inexperienced human, and at much lower cost.
But employers still need an on ramp for new hires. If you stop hiring entry-level employees, you’ll have to do all your midlevel hiring from outside the organisation. And if every organization pares back on entry-level hires, it will get harder and harder to find experienced midcareer talent anywhere.
That’s why it pays to cultivate your own long-term talent pool by hiring green employees, but rethinking how they are tasked and trained. Instead of piling your juniors with grunt work and trusting that they’ll learn through observation, assign them more challenging tasks, like drafting reports instead of just summarising them—the explosion in AI research and writing tools means that kind of work is now well within the grasp of inexperienced hires. With more active coaching and mentoring, these green employees can grow into valuable colleagues, much more quickly.
—Alexandra Samuel, digital-workplace speaker and co-author of “Remote, Inc.”
The danger of following blindly
So many jobs involve writing standard responses—thank-you notes to customers, responses to job applicants and unfortunately term papers—that AI is instantly and easily used in almost every white-collar role.
The concern isn’t that the responses produced aren’t original or creative. How creative does a performance appraisal need to be? It is that if ChatGPT writes the report, the “author” hasn’t thought about it, hasn’t weighed the arguments and then come to their own conclusions in the text. They cannot explain to someone why the report says what it does, but they now have to live with its conclusions.
What happens when the ChatGPT report fails to include proprietary information that you could have found if you searched yourself, and it changes the conclusions? How do we explain to a subordinate why the appraisal written by ChatGPT gave them a lower score compared with last year, even though their performance seemed to be the same? The temptation to use it without thinking through the arguments and explanations could lead to big mistakes.
—Peter Cappelli and Sonny Tambe, professor and associate professor, Wharton School of the University of Pennsylvania
Big-picture thinking
Workers are already using ChatGPT to craft the perfect Facebook ad or tools like Descript to edit videos, but AI will get incorporated in more upstream work. AI will be in the boardroom, brainstorming sessions and planning meetings.
Imagine an AI system that runs global simulations and impact analyses for 5,000 different budget plans. Or an AI that proactively writes new code for you when it discovers that you have a bottleneck in your sales planning. Or a proxy AI trained on customer research that allows you to have simulated conversations with your target market. We’re moving from task-oriented AI to goal-oriented AI, and enterprises are looking to leverage it safely, securely and ethically.
—Allie K. Miller, AI entrepreneur, adviser and investor
Money management and the human touch
Many asset-management companies are now offering hybrid advisory services—involving both human advisers and algorithms—to their clients. But these new services are unlikely to reduce the demand for human advisers.
Instead, automation is expanding the market for financial advisers by making it more cost effective to serve clients with lower levels of wealth. Human advisers can now cater to more clients, since certain tasks, such as addressing simple customer queries and constructing portfolios, can be automated. As a result, asset managers are now hiring more human advisers instead of laying them off.
In addition, the requirements for a financial adviser’s success are changing. As more portfolio management is turned over to algorithms, technical portfolio-allocation skills are becoming less significant. However, it is becoming more important for advisers to explain how algorithms operate and assist investors in navigating turbulent market conditions. Our research shows that human advisers are still essential for customer satisfaction and retention because of their ability to reduce clients’ discomfort from interacting with algorithms and reducing clients’ uncertainty regarding the algorithms’ performance.
—Alberto Rossi, finance professor and director of the AI, Analytics and Future of Work Initiative, Georgetown University
Navigating the corporate-benefits maze
AI-powered “concierge” systems will reduce or eliminate the frustrating search for answers that many employees endure today when seeking services from their employer. These systems will help employees make the most of their benefits, stay compliant with policies or simply find out information about their colleagues, organisation structure or customers that can sometimes be difficult to unearth in large organisations. When do my health benefits renew? What is my current deductible? What is the policy for meal expenses in New York?
What’s more, in the hybrid work environment, AI-driven concierge tools will book conference rooms, optimise the location of colleagues in the office so they can better collaborate, and help office managers manage capacity and services.
—Joe Atkinson, U.S. chief products and technology officer, PwC
Don’t forget human judgment
At its best, AI will drive better collaboration and productivity. It will help employees turn notes into documents and documents into presentations. Yet human judgment is key to unlocking AI’s power. Our data reveals that only around half of employees believe they know when to question the results of automation or AI—the other half don’t think they have that skill. But generative AI is already known to hallucinate—make up false facts—and employees who blindly follow its outputs risk failing.
So, companies must equip employees with the skills and inclinations needed to successfully use AI. Rather than acting on the AI’s meeting summary alone, employees must understand that talking to human colleagues who attended the meeting isn’t optional. They must also learn to proofread AI-produced text, confirming cited facts with outside sources. And governance structures must ensure that AI-produced content always includes a human in the loop before it is used.
—J.P. Gownder, vice president and principal analyst, Forrester
Machines get into human resources
The emergence of AI tools and data analytics is transforming the way organisations discover, assess and select talent. If trained with the right data, AI models can also compare candidate profiles to a company’s most successful employees, identify professionals with a proven record and determine who is most likely to consider a job change.
For example, for certain roles, high performers’ profiles include a broad range of skills that are relevant to multiple roles, while for other functions, optimal skill sets are much more narrow and specific. Our data indicates that the comparison of a candidate’s skills to those of high performers produces the most predictive indicator of future success, particularly on contract jobs.
Also, AI models can be further enhanced by incorporating individual performance data for employees or contractors who have previous experience with an employer. There is a wealth of such data available to talent solutions firms that employ hundreds of thousands of contractors annually.
Ultimately, though, it is important to think of AI as a tool—not a substitute—for the human art of recruiting. Assessing and selecting talent requires insight about a candidate’s communication skills, attitude and determination level and what it takes to succeed.
—M. Keith Waddell, president and CEO, Robert Half
A productivity boost
Early research suggests that while generative AI is likely to boost the productivity of all workers, it may benefit low-skilled workers more. A randomised field experiment by Microsoft reported that generative AI enabled a 55% decrease in average task-completion time for software developers, with the most benefit for older developers and those with less programming experience. Similarly, a study from MIT reports that ChatGPT’s use in professional writing raises average productivity and quality for low-ability workers more than their high-ability peers.
In an ongoing experimental study with M.B.A. students who were tasked with writing business reports, I found that ChatGPT’s availability not only increased productivity but also student satisfaction. More students expressed a desire to write when a tool like ChatGPT was available. In short, the impact of generative AI might not just be a general increase in productivity but also a narrowing of the productivity gap between low-skilled workers and high-skilled ones.
—Kartik Hosanagar, John C. Hower Professor, Wharton School of the University of Pennsylvania
A tool for hackers
It is the classic email scam: An employee receives a bogus note that appears to be from their manager, telling them to transfer funds to some account. For this to be convincing, the attacker needs to access the company’s computer systems to learn about the firm and the target, including their personal details.
AI makes this scamming much easier—and more dangerous.
By getting access to companies’ internal emails and nonpublic reports, hackers can use AI to generate very convincing messages. For example, the message might start with: “Fred, it was great to have dinner with you and your wife last Wednesday, we should do that again. Meanwhile, I need you to…”
Or how about a phone call or videoconference with your boss? Deep fakes make it possible to imitate the voice and even the image of your manager.
AI may also lead to smaller and smaller targets for scams. If it takes lots of manual labor to create customised spear-phishing emails, it is not worth it for hackers to cheat people out of $100. But if AI makes it trivial and cheap to create phoney emails, no one is too low on the totem pole to be ignored.
All this raises the level of skepticism that we must have substantially. Procedures will have to be put in place to validate the authenticity of who you are dealing with. In many cases, a phone call might be sufficient. A somewhat deeper approach might be a phone call to the boss’ administrative assistant, in addition to a boss—a bit like doing multifactor authentication on the computer. In extreme cases, a face-to-face meeting might be necessary.
—Stuart Madnick, professor of information technologies, MIT Sloan School of Management
Spotting the skill gaps
AI helps organisations build for the future by automatically detecting employee, team and organisation wide skills—and identifying ways to address gaps before management is even aware of them.
For roles like nurses, software developers and marketers, necessary skills are constantly changing, and it can be tough for organisations to keep track of what is needed. Nurses, for instance, must become familiar with an ever-increasing number of tech platforms, as well as data analysis to help patient outcomes.
As these needs evolve, AI can help keep track of what skills organisations need and predict what they might need next. For instance, a business could use AI to scan job descriptions in its industry to look for trends. The AI might notice that lots of marketing jobs now require employees to understand new types of analytics—and your employees must understand them, too, or miss out on important strategic insights.
—Mahe Bayireddi, CEO and co-founder, Phenom
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Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
From a $500 Start to Leading Multi-Industry Success
4 min
Samer Zayat’s entrepreneurial journey began at just 18, with a humble investment of $500. Through his perseverance and determination, he overcame the early challenges and built a career defined by resilience and innovation.
From founding Crown Capital Investments to establishing Investium, Zayat has expanded his scope of work across multiple industries, including hospitality, technology, and real estate.
In this interview, Zayat shares insights into the key moments that shaped his path, the lessons learned along the way, and how he continues to push boundaries while planning for the future growth.
You began your entrepreneurial journey at just 18 with a small investment of $500. Can you share more about the challenges and lessons you faced during those early years?
Starting with just $500 at 18 taught me the importance of resourcefulness and resilience. The early challenges included navigating a highly innovative & competitive market with limited capital and building trust with partners and customers. However, these experiences reinforced the values of staying adaptable, thinking creatively, and maintaining a strong work ethic. Each small victory helped build the foundation for future successes, and those early lessons continue to inform my approach to business today. But my biggest learning remains, that staying resilient through setbacks & failures is crucial to one’s entrepreneurial success.
How did CCI transition from its beginnings in Beirut to its expansion in Dubai, and what were the key factors that fueled its rapid growth?
The transition from Beirut to Dubai marked a significant milestone in our journey. Dubai offered a dynamic, globally connected environment that provided the perfect setting to scale our operations. Our rapid growth was driven by a strategic emphasis on achieving swift returns on investment coupled with a commitment in customer service excellence. We leverage these successes to generate further internal investment for our future projects, and crucially, we were focused on building a strong diverse team that shared our vision for growth.
Looking back on your journey from launching Crown Capital Investments to founding Investium, what do you consider the most important and life changing moments or decisions in your career?
One of the most life-changing decisions was to expand our focus beyond single-sector iterations to a diversified investment strategy across multiple sectors. This decision allowed us to leverage our strengths and broaden our impact. Another key moment was our move into the Dubai market, which significantly accelerated our growth and opened new opportunities. The decision to maintain a balance between entrepreneurial spirit and operational discipline has also been foundational in shaping our success.
What motivates you to keep pushing boundaries in the investment world, especially after achieving such remarkable success at a young age?
What drives me is the desire to continuously innovate and create lasting value. Success, to me, is not just about financial achievements but also about making a meaningful impact on the industries we operate in and the communities we serve. I approach each opportunity with a sense of humility, recognizing that there is always more to learn and areas to improve. The ever-evolving nature of the investment world, combined with the potential to explore new opportunities and challenges, keeps me motivated to push boundaries and strive for excellence, while staying grounded in the values that got us here.
Investium has seen exceptional growth over the past years. What strategies and practices do you credit for sustaining this level of growth?
Our sustained growth can be attributed to a few key strategies: a relentless focus on delivering value to our customers, maintaining transparency and trust, and consistently executing on our vision. We’ve also been strategic in identifying growth opportunities, whether through regional expansions, launching new verticals, or enhancing our offerings. Our entrepreneurial spirit, combined with a disciplined approach to investment, has been essential in sustaining our momentum.
Investium has successfully expanded into multiple verticals, including hospitality, technology, and real estate. How do you identify and decide on these new areas for expansion?
Our approach to expansion is guided by a combination of consumer-centricity, strategic foresight, rigorous financial studies and deep understanding of industry trends. We venture into sectors where we can make a significant impact by filling gaps and where there is strong growth potential. Each new vertical is chosen based on how well it aligns with our overall mission and whether it allows us to deliver exceptional value to our customers and contribute to maintaining or enhancing our strong EBITA.
The investor’s confidence and trust are crucial to Investium’s success. How do you maintain strong relationships with your investors?
If we want to highlight investors: Maintaining strong relationships with our investors is a top priority. We do this by ensuring consistent communication, transparency, and delivering on our promises. We make it a point to keep our investors well-informed and involved in our strategic decisions, fostering a sense of partnership and trust. By focusing on their long-term success as much as our own, we’ve been able to build enduring relationships that are foundational to our growth.
If we don’t want to highlight investors: Our success is built on a foundation of transparency, trust, and consistent performance. We prioritize open communication and delivering on our commitments, ensuring that all stakeholders are aligned with our vision and strategy. By fostering a culture of accountability and continuously striving for excellence, we’ve been able to maintain strong relationships and sustain our growth trajectory.
What are your long-term goals for Investium? How do you see the company evolving in the next 5 to 10 years?
In the next 5 to 10 years, our goal is to further solidify Investium‘s position as a leading force in alternative investments, with a strong emphasis on sustainable growth and innovation. We plan to continue expanding our presence in the GCC and emerging markets, while also exploring opportunities in international markets. Our hospitality brands, such as Al Beiruti, Logma, Crown Catering, along with our new additions of Al Beiruti Café and the soon-to-launch Capitale Café, will remain cornerstones of our regional expansion efforts. Additionally, we aim to advance our technology segment with Clapp App and successfully establish our new real estate division. Ultimately, our vision is to create a legacy of excellence that not only drives financial returns but also contributes positively to the industries we operate in and the communities we serve.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Ahmad Gamal shares how Nvidia AI Solutions is driving digital transformation and shaping the region’s AI and Web3 landscape.
4 min
During our participation in the Dubai AI & Web3 Festival as media sponsors, we had the opportunity to sit down with Ahmad Gamal, Regional Business Development Manager for Nvidia AI Solutions, to discuss the latest trends and innovations shaping the future of AI and Web3 technologies. Representing Advanced Integration, a company renowned for its expertise in AI solutions, Ahmad shared insights into how the company is helping businesses across the Middle East navigate the rapidly evolving landscape of artificial intelligence.
With strong partnerships with Nvidia, Advanced Integration offers a wide range of solutions for data centers, serving industries like healthcare, retail, and higher education. Based in Dubai, the company is focused on delivering innovative and efficient AI solutions that meet the evolving needs of businesses in the region.
In this interview, Ahmad talks about the role of the Dubai AI & Web3 Festival in bringing together innovators, startups, and established tech companies, and shares insights on how Advanced Integration is tackling the challenges of this industry.
What motivated your participation in the Dubai AI & Web3 Festival, and how do you see it aligning with your organization’s goals?
Our participation in the Dubai AI & Web3 Festival was driven by the opportunity to showcase our innovative AI solutions alongside cutting-edge technologies from Nvidia. The festival serves as a perfect platform to demonstrate how AI and Web3 technologies are transforming industries and empowering organizations. It aligns with our company’s mission to drive digital transformation through AI, focusing on solutions such as Generative AI, LLMs, and AI-driven infrastructure. Additionally, this event aligns with our goal of contributing to the region’s vision of becoming a global leader in AI and Web3 innovation.
Do you think events like this can foster collaboration between innovators, startups, and established tech companies?
Absolutely. Events like the Dubai AI & Web3 Festival are critical in fostering collaboration across the tech ecosystem. They create a melting pot of ideas and innovations, bringing together startups with fresh ideas, established tech companies with resources and expertise, and innovators who bridge the gap between vision and execution. Such collaborations are key to pushing the boundaries of AI and Web3, creating synergies that can lead to new business models, technological advancements, and real-world applications.
What are the key challenges your company faces in integrating AI and Web3 solutions, and how do you plan to address them?
One of the key challenges we face is ensuring the seamless integration of AI and Web3 technologies in a way that adds tangible value to our clients. Many organizations struggle with the scalability of AI and managing the decentralized nature of Web3. To address this, we are focused on creating scalable, secure, and efficient AI-powered solutions that align with existing business processes. Additionally, we are investing in robust infrastructure, particularly through our partnership with Nvidia, to ensure we can handle large-scale AI deployments and data processing while addressing issues around privacy and security in the Web3 ecosystem.
What strategies are you using to stay ahead of the rapidly evolving AI and Web3 landscape?
Staying ahead requires continuous learning and innovation. We ensure that our team stays at the forefront of technological advancements by partnering with industry leaders like Nvidia, investing in R&D, and actively participating in global tech events such as this festival. We also focus on building a flexible AI and Web3 infrastructure that can easily adapt to emerging technologies. Additionally, we’re adopting a collaborative approach, working closely with other tech companies, startups, and academic institutions to stay agile and informed.
What impact do you see AI and Web3 technologies having on your company’s growth and long-term strategy?
AI and Web3 are integral to our company’s long-term strategy. We anticipate that these technologies will significantly expand our service offerings, enabling us to enter new markets and industries. AI’s ability to automate processes, analyze massive data sets, and generate insights will drive efficiency and innovation within our organization. Meanwhile, Web3’s decentralized approach promises to enhance data security and transparency for our clients. Over the long term, these technologies will help us scale rapidly and differentiate ourselves in a highly competitive market.
What role does your company play in advancing AI governance or standards, either regionally or globally?
We believe in responsible AI development and are committed to advancing AI governance both regionally and globally. Our involvement includes adhering to and advocating for ethical AI standards, particularly around data privacy, algorithmic transparency, and bias mitigation. Through our partnerships and participation in industry forums, we contribute to the development of governance frameworks that ensure the ethical and sustainable deployment of AI technologies. Additionally, we collaborate with regulators and stakeholders to promote best practices and build trust in AI-driven solutions.
How has your participation in events like the Dubai AI & Web3 Festival influenced your company’s strategy or approach to innovation?
Events like the Dubai AI & Web3 Festival provide valuable insights into emerging trends and customer needs, allowing us to fine-tune our innovation strategy. The festival exposes us to diverse perspectives and potential partnerships that help us rethink our approach to AI and Web3. By engaging with other innovators and industry leaders, we gather fresh ideas and solutions that feed into our product development cycle. This continuous feedback loop is essential for us to remain relevant and ahead of the curve in an ever-changing tech landscape.
What are the key milestones your company aims to achieve in the next 2-3 years in the AI and Web3 space?
In the next 2-3 years, our focus is on expanding our AI product offerings, particularly in Generative AI, AI-driven infrastructure, and AI-powered 3D Avatars. We aim to build scalable solutions that cater to industries like healthcare, finance, and smart cities, leveraging AI for better decision-making and operational efficiency. In the Web3 space, we are focusing on integrating blockchain technologies to enhance security and transparency. Our ultimate goal is to position ourselves as a leader in AI and Web3 solutions within the region, contributing to the global ecosystem while fostering innovation locally.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Interior designer Thomas Hamel on where it goes wrong in so many homes.
When will Berkshire Hathaway stop selling Bank of America stock?
3 min
Berkshire began liquidating its big stake in the banking company in mid-July—and has already unloaded about 15% of its interest. The selling has been fairly aggressive and has totaled about $6 billion. (Berkshire still holds 883 million shares, an 11.3% interest worth $35 billion based on its most recent filing on Aug. 30.)
The selling has prompted speculation about when CEO Warren Buffett, who oversees Berkshire’s $300 billion equity portfolio, will stop. The sales have depressed Bank of America stock, which has underperformed peers since Berkshire began its sell program. The stock closed down 0.9% Thursday at $40.14.
It’s possible that Berkshire will stop selling when the stake drops to 700 million shares. Taxes and history would be the reasons why.
Berkshire accumulated its Bank of America stake in two stages—and at vastly different prices. Berkshire’s initial stake came in 2017 , when it swapped $5 billion of Bank of America preferred stock for 700 million shares of common stock via warrants it received as part of the original preferred investment in 2011.
Berkshire got a sweet deal in that 2011 transaction. At the time, Bank of America was looking for a Buffett imprimatur—and the bank’s stock price was weak and under $10 a share.
Berkshire paid about $7 a share for that initial stake of 700 million common shares. The rest of the Berkshire stake, more than 300 million shares, was mostly purchased in 2018 at around $30 a share.
With Bank of America stock currently trading around $40, Berkshire faces a high tax burden from selling shares from the original stake of 700 million shares, given the low cost basis, and a much lighter tax hit from unloading the rest. Berkshire is subject to corporate taxes—an estimated 25% including local taxes—on gains on any sales of stock. The tax bite is stark.
Berkshire might own $2 to $3 a share in taxes on sales of high-cost stock and $8 a share on low-cost stock purchased for $7 a share.
New York tax expert Robert Willens says corporations, like individuals, can specify the particular lots when they sell stock with multiple cost levels.
“If stock is held in the custody of a broker, an adequate identification is made if the taxpayer specifies to the broker having custody of the stock the particular stock to be sold and, within a reasonable time thereafter, confirmation of such specification is set forth in a written document from the broker,” Willens told Barron’s in an email.
He assumes that Berkshire will identify the high-cost Bank of America stock for the recent sales to minimize its tax liability.
If sellers don’t specify, they generally are subject to “first in, first out,” or FIFO, accounting, meaning that the stock bought first would be subject to any tax on gains.
Buffett tends to be tax-averse—and that may prompt him to keep the original stake of 700 million shares. He could also mull any loyalty he may feel toward Bank of America CEO Brian Moynihan , whom Buffett has praised in the past.
Another reason for Berkshire to hold Bank of America is that it’s the company’s only big equity holding among traditional banks after selling shares of U.S. Bancorp , Bank of New York Mellon , JPMorgan Chase , and Wells Fargo in recent years.
Buffett, however, often eliminates stock holdings after he begins selling them down, as he did with the other bank stocks. Berkshire does retain a smaller stake of about $3 billion in Citigroup.
There could be a new filing on sales of Bank of America stock by Berkshire on Thursday evening. It has been three business days since the last one.
Berkshire must file within two business days of any sales of Bank of America stock since it owns more than 10%. The conglomerate will need to get its stake under about 777 million shares, about 100 million below the current level, before it can avoid the two-day filing rule.
It should be said that taxes haven’t deterred Buffett from selling over half of Berkshire’s stake in Apple this year—an estimated $85 billion or more of stock. Barron’s has estimated that Berkshire may owe $15 billion on the bulk of the sales that occurred in the second quarter.
Berkshire now holds 400 million shares of Apple and Barron’s has argued that Buffett may be finished reducing the Apple stake at that round number, which is the same number of shares that Berkshire has held in Coca-Cola for more than two decades.
Buffett may like round numbers—and 700 million could be just the right figure for Bank of America.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.
“Only with competition can we become stronger and allow the industry to remain healthy,” Ma said
2 min
Alibaba Group co-founder Jack Ma said competition will make the company stronger and the e-commerce giant needs to trust in the power of market forces and innovation, according to an internal memo to commemorate the company’s 25th anniversary.
“Many of Alibaba’s business face challenges and the possibility of being surpassed, but that’s to be expected as no single company can stay at the top forever in any industry,” Ma said in a letter sent to employees late Tuesday, seen by The Wall Street Journal.
Once a darling of Wall Street and the dominant player in China’s e-commerce industry, the tech giant’s growth has slowed amid a weakening Chinese economy and subdued consumer sentiment. Intensifying competition from homegrown upstarts such as PDD Holdings ’ Pinduoduo e-commerce platform and ByteDance’s short-video app Douyin has also pressured Alibaba’s growth momentum.
“Only with competition can we become stronger and allow the industry to remain healthy,” Ma said.
The letter came after Alibaba recently completed a three-year regulatory process in China.
Chinese regulators said in late August that they have completed their monitoring and evaluation of Alibaba after the company was penalized over monopolistic practices in 2021. Over the past three years, the company has been required to submit self-evaluation compliance reports to market regulators.
Ma reiterated Alibaba’s ambition of being a company that can last 102 years. He urged Alibaba’s employees to not flounder in the midst of challenges and competition.
“The reason we’re Alibaba is because we have idealistic beliefs, we trust the future, believe in the market. We believe that only a company that can create real value for society can keep operating for 102 years,” he said.
Ma himself has kept a low profile since late 2020 when financial affiliate Ant Group called off initial public offerings in Hong Kong and Shanghai that had been on track to raise more than $34 billion.
In a separate internal letter in April, he praised Alibaba’s leadership and its restructuring efforts after the company split the group into six independently run companies.
Alibaba recently completed the conversion of its Hong Kong secondary listing into a primary listing, and on Tuesday was added to a scheme allowing investors in mainland China to trade Hong Kong-listed shares.
Alibaba shares fell 1.2% to 80.60 Hong Kong dollars, or equivalent of US$10.34, by midday Wednesday, after rising 4.2% on Tuesday following the Stock Connect inclusion. The company’s shares are up 6.9% so far this year.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
100 percent Shari’a compliant structured under the tenets of Islam.
2 min
Porsche ownership is now easier than ever after the new agreement between Porsche Services Middle East & Africa (PSME) and Dubai Islamic Bank (DIB). This partnership strengthens their relationship and brings added benefits to customers across the UAE.
Through Dubai Islamic Bank, customers can take advantage of a fully Shari’a-compliant financing process, following the Islamic ‘Murabaha’ model, ensuring a straightforward and seamless experience from start to finish.
“We are thrilled to partner with Dubai Islamic Bank to bring Shari’a compliant financing solutions to our valued customers in the UAE,” said David Picandet, the managing director of Porsche Services Middle East & Africa.
DIB’s suite of innovative, flexible and robust automotive financing solutions tailored for the UAE will enhance the customer experience not just for the Porsche brand but for all brands operating under the Volkswagen Group in the UAE.
“This collaboration underscores our commitment to enhancing the ownership experience for Porsche owners,” added Picandet.
The association expands PSME’s portfolio of innovative and flexible financing options, opening up Porsche ownership to a wider audience.
“Our partnership with Porsche Services Middle East & Africa marks a significant step forward in expanding access to Shari’a-compliant automotive financing in the UAE,” said Sanjay Malhotra, Chief Consumer Banking Officer at Dubai Islamic Bank,
“Through this enhanced collaboration, we are not only broadening the horizons of ownership but also ensuring that our customers can enjoy a luxury driving experience, with financing solutions that align with their values. This initiative is a testament to DIB’s commitment to innovative financial products that cater to the specific needs of our customers, enhancing their buying experience with further value-added services.”
Customers can visit their nearest Porsche Centre to view the options available from Dubai Islamic Bank and tailor a financing solution to suit their needs.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Playbook will partner with tech enabled businesses targeting large market opportunities
2 min
India-based growth capital firm, Playbook Partners, has announced the first close of its fund, having secured over $130 million from prominent global investors across the Middle East, Europe, the US, and India.
Considering the strong interest from institutional investors, the fund is utilizing the green shoe option, with the potential to grow to $250 million. Playbook intends to collaborate with growth-stage, tech-enabled companies operating in large, addressable markets that demonstrate significant scale, healthy operating margins, and high growth potential.
Playbook’s focus on the Middle East aligns with the region’s increasing appeal to institutions and family offices, particularly in key countries such as the UAE, Saudi Arabia, and Qatar, which are attracting global ultra-high-net-worth (UHNW) families.
According to Knight Frank’s 2024 Wealth Report, the region saw around 18,800 UHNW investors in 2023, marking a 6.2% rise from the previous year. Special economic zones like the Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) are playing a key role in drawing UHNWIs to the Middle Eastern market.
Playbook is founded and led by senior professional, entrepreneur and investor Vikas Choudhury, who has held leadership roles at multinational public companies including Reliance Jio and Aimia Inc, bringing vast experience in scaling large global and Indian businesses profitably in the digital economy. His long-standing investment portfolio includes 10 unicorns, IPOs and exits such as inMobi, Myntra, Fractal, Nazara, PolicyBazaar, Rapido, amongst other marquee companies.
Vikas Choudhury, Founder & Managing Partner, Playbook, said, “Powered by a 5x growth in the digital economy to over $1 Trillion, India will account for over 15% of the entire global economic growth over the next decade. Our purpose is to fuel India’s aspirational growth and transformation at scale. Our playbook isn’t just to fund, but to forge – capital, relationships, and strategic insight – necessary for visionary companies to master the art of scale and institutionalize their leadership position. Our global investors’ trust and momentum is an endorsement of our differentiated strategy and its alignment with the market opportunity.”
Playbook is an operator-driven GC firm with leadership comprising seasoned entrepreneurs and professionals who have built, scaled, listed and exited multi-billion-dollar companies. The fund’s intrinsically embedded industry representation includes operating partners Manish Choksi (Asian Paints), Aakash Chaudhry (Aakash Education) and Milan Sheth (Ex Automation Anywhere), who have come in through their family offices or in their personal capacity. The firm’s deep, localized understanding across markets, sectors and life cycles – as operators, advisors and investors – brings a compelling edge to growth investing and value creation for digital India.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Mair Group for Strategic Investments announced the launch of its operations in Abu Dhabi, to utilize its potential in developing businesses within key economic sectors.
3 min
Mair Group‘s investment portfolio includes a number of major local institutions and companies, including the Abu Dhabi Cooperative Society, which was launched in 1980, and then expanded after its merger with Al Ain, Dalma, and Al Dhafra Cooperative Societies in 2023, based on the decision issued by the Department of Economic Development – Abu Dhabi, to enhance its role in economic and social development.
Under the umbrella of Mair Group is Makani Real Estate Company, which operates a diverse chain of community shopping centers in the emirate, and SPAR for retail, which has been operating in Abu Dhabi for more than ten years and aspires to expand in the Middle East region.
The group operates according to a vertical integration model, which ensures quality standards and the sustainability of supply chains, in fulfillment of its mission to enhance the country’s economic position and its commitment to contributing to the well-being of society, in addition to its efforts to support the UAE’s food security strategy.
Captain Mohamed Juma Al Shamsi, Chairman of the Board of Directors of Mair Group, said: “The launch of the group represents a pioneering step that enhances the contribution of national institutions to enhancing the economic position of the United Arab Emirates, and achieving the well-being and sustainable development of society in line with the vision of our wise leadership. Mair Group is committed to the main directions of the National Food Security Strategy 2051, which is based on facilitating food trade and diversifying its import sources.”
“At Mair Group, we look forward to achieving our ambitions through strategic partnerships with institutions that are consistent with our vision and goals, and we will work to transfer global experiences, sponsor innovations, and employ smart solutions to enhance strategic capabilities in the food and retail sectors, and invest in the commercial real estate sector and related businesses, with a focus on qualifying national cadres to contribute to supporting these efforts and actively participating in the development of retail trade and achieving food security for the country.”
Mr. Nayhan Hamad Bal Rakkad Al Ameri also assumes the position of Managing Director and CEO of Mair Group to lead the group’s ambitious expansion strategy locally and regionally. Mr. Nayhan Hamad Bal Rakkad Al Ameri previously held the position of Chairman of the Board of Directors of Al Ain Cooperative Society and employs his extensive experience at the highest levels of the retail sector to achieve these ambitions.
In turn, he said: “The launch of Mair Group represents an important milestone for the sector, as it allows the major institutions under the umbrella of the group to build on its long history and successful journey and work to unify efforts to make a prominent impact in the food sector, and seize new opportunities in related sectors across the supply chains, relying on our expertise in this field and our strategic approach to investment.”
He added: “Inspired by the directives of our wise leadership, we have set a specific goal of empowering society in the UAE by developing a solid economic system for our operational activities in the food sector, while at the same time working to expand our portfolio and actively contribute to achieving the goals of the UAE’s National Food Security Strategy.”
Mair Group is one of the five largest food companies in the United Arab Emirates, and its total revenues reached 2.34 billion dirhams in 2023. The group has more than 120 food shopping destinations and more than 12 community shopping centers in the country, where it provides its services to more than 65,000 customers daily, with an occupancy rate of 90% across 320,000 square meters of commercial space.
The group’s plans include increasing its market share, expanding the scope of its shopping destinations, taking advantage of digital e-commerce opportunities, and continuing to explore new activities that are consistent with its core operations.
The group is working to secure strategic locations for new shopping destinations to complement its current network of assets, to become major destinations that attract customers, in addition to acquiring companies that are consistent with the company’s vision in a way that achieves integration for its operations in the food sector and related retail trade.
Mair Group is interested in sustainable investments aimed at driving companies towards success and sustainable growth of their businesses, in the UAE and the region.
In addition to Mair Group’s successful contribution to achieving food security in the country, it continues its efforts to support local communities through initiatives and partnerships. The group is committed to attracting Emirati competencies and working to develop the capabilities and expertise of the young Emirati generation and rely on its capabilities. The group succeeded in providing its cadres with 92 citizens during 2023, and it has drawn up an ambitious plan to attract 400 Emirati employees during the next three years.
The group looks forward to taking advantage of Abu Dhabi’s stable, diversified, and prosperous economy to support its core retail business, enhance its presence in the local market and the region, and expand its business to a range of similar commercial activities in the future.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
This week marked significant signings for innovation and technology pioneer, Holon Global Investments Limited (Holon)
< 1 min
The first with ArcLive Limited (ArcLive), to effectively deliver a joint solution aimed at enhancing energy performance and sustainable data management for both domestic and commercial premises.
Launching this strategic and promising collaboration, Holon and ArcLive signed a Memorandum of Understanding (MoU) on the first day of the Dubai AI & Web3 Festival. Holon’s Managing Director Heath Behcncke and ArcLive’s Co-founder Nicholas Edwards were present to sign the agreement.
This significant event represents the coming together of two innovative forces committed to sustainability and technological advancement.
Holon, a reputed leader in green, verifiable distributed data storage and computing, operates energy-efficient, immersion-cooled edge data centers powered by renewable energy sources. Utilizing blockchain technology, Holon provides robust governance over the data stored in its systems, ensuring security and sustainability.
ArcLive specializes in the collection, storage, collation, analysis, and presentation of real-time data from various premises and buildings. By leveraging sensors and other hardware, ArcLive collects performance data to help customers analyze and improve the energy efficiency of their buildings.
This joint solution enables regulatory compliance with sustainable finance objectives and helps property owners and their lending banks achieve their decarbonization targets, all while being powered by green energy.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Together, Michael and Heath Behncke will lead the significant megashift toward recognizing data.
< 1 min
Holon Global Investments Limited (Holon) officially appointed Michael Clark as its Global Holon Evangelist at the highly anticipated Dubai AI & Web3 Festival.
Michael, a renowned data scholar and industry advisor, will work closely with Heath Behncke, Holon‘s Managing Director, to advance Holon’s pioneering roadmap for data custodianship, decentralized sustainable storage, and tokenization.
Together, Michael and Heath will lead the significant megashift toward recognizing data as a valuable asset – fostering a trusted, inclusive data economy that empowers individuals and benefits society at large. The partnership will explore new opportunities and joint projects to drive innovation and create lasting value.
At the festival, Michael also announced the launch of his upcoming book Data Revolution: Unlocking Human Potential, with the subtitle The Journey Never Walked set to be released mid-2025.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
OneDegree and Dubai Insurance started this partnership last year and have since provided insurance solutions to several digital asset companies.
2 min
OneDegree and Dubai Insurance Company have started offering custodial risk insurance for digital assets to their customers in the UAE, following key approval from the Central Bank of the UAE.
The partnership between OneDegree and Dubai Insurance, established last year, has provided insurance solutions for numerous digital asset companies. The addition of custodial risk insurance now completes their product range, allowing the partners to deliver a comprehensive suite of services to digital asset firms in the UAE under the “OneInfinity” brand.
Custodial risk insurance is a crucial element in the risk management strategies of digital asset exchanges, custodians, and other service providers. Many global regulators require this coverage, alongside professional indemnity and directors & officers’ insurance.
In Dubai, VARA (the Virtual Assets Regulatory Authority) mandates such protections. With this approval, specialized custodial risk insurance can now be directly offered in the UAE for the first time. It safeguards companies against the loss of digital assets due to external hacks, theft, internal fraud, and physical damage to storage media.
Robin Scott, General Manager of Middle East for OneDegree, said, “UAE has only strengthened its position as a digital asset hub since our market entry last year. There are hundreds of companies setting up across the Emirates and looking to obtain key licenses. For this they need strong, tailored insurance policies. It’s fantastic that we are now able to offer the full suite of OneInfinity digital asset products to these inspiring companies.”
Abdellatif Abuqurah, CEO of Dubai Insurance, added, “We are thrilled to work with OneDegree on this important development in the UAE. Dubai Insurance is committed to bringing the most innovative insurance products to the UAE. Custodial risk insurance is something brand new to the market but that satisfies an urgent demand as UAE cements its position as a global leader in digital assets.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
The partnership will help accelerate the adoption of WorkFusion’s Artificial Intelligence (AI) Digital Workers for anti-money laundering (AML) and anti-financial crime throughout the Middle East.
2 min
WorkFusion, a regtech company specializing in AI agents that fight financial crime, has announced a new go-to-market partnership with Advanced Financial Solutions, a member of the MDS SI Group, which has a network of 60 companies across 11 countries. This strategic alliance aims to accelerate the adoption of WorkFusion’s AI Digital Workers for anti-money laundering (AML) and anti-financial crime initiatives across the Middle East.
Advanced Financial Solutions will utilize its regional expertise, market insights, and infrastructure to introduce and implement WorkFusion’s AI agents within the Middle East’s rapidly growing financial services sector. WorkFusion’s AI Digital Workers are designed to automate document-intensive, repetitive tasks, mirroring roles in financial crime compliance, such as adverse media and sanctions screening, transaction monitoring, and Know Your Customer (KYC) processes. Organizations can employ these AI AML analysts to complement their teams, enhance efficiency, and reduce risk.
“Working together with Advanced Financial Solutions, we will introduce our AI Digital Workers to banks and financial institutions throughout the Middle East,” said Adam Famularo, CEO of WorkFusion. “AI holds the promise to shape the anti-financial crime compliance industry in the region. By incorporating AI Digital Workers as a core component of their compliance programs, banks and financial institutions will be able to leapfrog over the historical challenges that plague AML programs in other parts of the world establishing a true blueprint for modern anti-financial crime compliance operations.”
Comprised of more than 2,600 employees who have partnered with the largest firms in the world, MDS SI Group excels at providing a deep bench of expertise, local infrastructure, and successful execution. MDS SI Group’s experience in delivering advanced IT products and solutions to their customers has benefited their clients for over 40 years.
Juan Jarjour, Managing Director at Advanced Financial Solutions said “the demand for artificial intelligence-based solutions in the Middle East is growing fast and the banking sector is fast adopting new AI based technologies to significantly enhance the automation of the growing regulatory requirements related to risk & compliance management. With the introduction of WorkFusion Digital Workers solutions in the Middle East, we aim at supporting our clients in improving automation with a technology that has fast return on investment, and a proven ability to support financial institutions in their digital transformation journey.”
“At MDS System Integration Group, we are committed to leveraging cutting-edge technology to drive business excellence and innovation. Our partnership with WorkFusion through our affiliate Advanced Financial Solutions, allows us to bring advanced AI solutions to the financial sector in the Middle East, enhancing compliance and efficiency. This collaboration underscores our dedication to providing unparalleled expertise and local infrastructure to our clients, ensuring they remain at the forefront of digital transformation and financial crime prevention.” Gaby Matar, EVP, MDS System Integration Group.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
The contribution of the banks is critical through the development of the bank legislation and sustainable development.
3 min
According to Dr. Fahad bin Mohammed Al Turki, Director General and Chairman of the Board of Directors of the Arab Monetary Fund, Qatar’s banking sector ranks highly among Arab countries in terms of capital adequacy ratio, which has reached 19.2 percent, showcasing the sector’s resilience and ability to absorb shocks.
Speaking at the Arab Banking Conference 2024, Al Turki commended the performance of Qatar’s banking sector, noting that it accounts for 11.9 percent of the assets in the Arab banking industry, placing it third among Arab nations. He emphasized the need for banking institutions to innovate by offering financial products that support investments in sustainable infrastructure, clean energy, and projects with social and environmental objectives.
Al Turki also highlighted the importance of incorporating sustainability standards into lending and investment practices, as well as the vital role banks play in developing banking legislation that supports sustainable development.
Regarding the financial solvency of the Arab banking sector, he noted that the average capital adequacy ratio stood at 17.4 percent by the end of the previous year, significantly exceeding the international benchmark of 10.5 percent.
In his opening remarks, Mohamed Mahmoud El Etreby, Chairman of the Union of Arab Banks, stressed that efforts to achieve the 2030 Sustainable Development Goals (SDGs) are more crucial than ever. He added that Arab countries, individually and collectively, can achieve these goals if they overcome developmental challenges and intensify their efforts towards sustainable development.
“We need to transition to sustainable development models, including in order to tackle issues such as the shortage and scarcity of water and also the desertification. We need to exert efforts in order to develop new methods to achieve sustainable developments and green economy.
“We need to reinforce and strengthen our cooperation between all the countries on the regional and international level that is likely to impact positively the ability to attract more FDI’s and also to enhance the international partnership in order to be able to harness the sustainable development,” he added.
One of the factors that could play a role in Arab countries is the FDI, which means that the requirements of sustainable development. El Etreby said, “We have been able also to achieve and make some progress in the green economy. Some Arab countries in this regard issued green bonds between 2015 and 2020, amounting in total to $14bn of these bonds and 84 percent of which were considered as sustainable and green bonds.
El Etreby added “We in the financial sector, can play an important and active role in order to achieve the long term goals and vision for our economies and growth because the financial sector can help to achieve the sustainable development goals.
The Arab financial sector has seen significant progress in recent years, with advancements in fintech and other technological tools, alongside the modernization of regulatory frameworks.
Additionally, green bonds have been introduced in the Arab world to support the achievement of the Sustainable Development Goals (SDGs). Many Arab banks have begun incorporating Environmental, Social, and Governance (ESG) metrics into their investment and lending activities, further strengthening their role in promoting sustainable development, he highlighted.
Dr. Rola Dashti, Under-Secretary-General and Executive Secretary – (ESCWA) also delivered the keynote address.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Alexandre de Betak and his wife are focusing on their most personal project yet.
Gross banks’ assets exceed $1.17trln by end of June
3 min
The Central Bank of the UAE (CBUAE) reported a 0.5% increase in total gross bank assets, including bankers’ acceptances, from AED 4,287.0 billion at the end of May 2024 to AED 4,310.2 billion at the end of June 2024.
In its June 2024 Monetary and Banking Developments report, the Central Bank highlighted a 1.1% rise in gross credit, from AED 2,077.7 billion in May to AED 2,100.9 billion in June. This increase was driven by domestic credit growth of 0.8% and foreign credit expansion of 2.9%. The domestic credit rise was attributed to a 1.4% increase in credit to government-related entities and a 1.0% increase in private sector credit, which offset a 1.1% decrease in credit to the government sector and a 0.6% reduction in credit to non-banking financial institutions.
Bank deposits saw a 0.5% rise, reaching AED 2,692.5 billion at the end of June, up from AED 2,678.2 billion in May. The growth in deposits was largely due to an 8.4% increase in non-resident deposits, which compensated for a 0.1% decline in resident deposits. The drop in resident deposits was mainly due to a 3.0% reduction in government sector deposits and a 0.1% decline in deposits from government-related entities, though this was mitigated by a 0.4% increase in private sector deposits and a 6.6% rise in deposits from non-banking financial institutions.
In June 2024, the Central Bank reported that the M1 money supply increased by 0.6%, from AED 879.2 billion in May to AED 884.1 billion, driven by a AED 7.3 billion rise in monetary deposits, despite a AED 2.4 billion decrease in currency circulation outside banks. M2 money supply rose by 0.4%, from AED 2,160.3 billion in May to AED 2,169.4 billion in June, boosted by M1 growth and a AED 4.2 billion increase in quasi-monetary deposits. M3 increased slightly by 0.1%, from AED 2,629.7 billion in May to AED 2,632.0 billion in June, as M2 growth outweighed a AED 6.8 billion decline in government deposits.
The monetary base contracted by 0.3%, from AED 727.1 billion in May to AED 725.0 billion in June, primarily due to a 2.3% decrease in currency issued, a 42.2% reduction in banks’ current accounts and overnight deposits at CBUAE, and a 0.5% drop in monetary bills and Islamic certificates of deposit. However, the reserve account increased by 37.3%.
Foreign assets of the Central Bank surpassed AED 770 billion for the first time, growing by 0.5% from AED 766.73 billion in May to AED 770.6 billion in June 2024, a rise of AED 3.88 billion. Year-on-year (YoY), foreign assets increased by 30%, or AED 178.5 billion, reaching AED 592.11 billion in June 2023. This rise was attributed to increased bank balances and deposits abroad, which reached AED 533.86 billion, alongside an increase in foreign securities to AED 179.72 billion and other foreign assets surpassing AED 57 billion. The Central Bank clarified that these foreign assets exclude its Reserve Tranche Position (RTP) and Special Drawing Rights (SDR) holdings with the International Monetary Fund (IMF).
As of June 2024, the Central Bank’s balance sheet reached AED 806.39 billion, marking a 24.2% YoY increase from AED 649.4 billion in June 2023. The balance sheet allocation included AED 352.79 billion for cash and bank balances, AED 206.43 billion for investments, AED 208.78 billion for deposits, AED 1.71 billion for loans and advances, and AED 36.68 billion for other assets. On the liabilities and capital side, AED 396.72 billion was allocated to current and deposit accounts, AED 226.93 billion to monetary bills and Islamic certificates of deposit, AED 145.36 billion to currency notes and coins issued, AED 26.56 billion to capital and reserves, and AED 10.82 billion to other liabilities.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Sydney’s prestige market is looking up, here’s three of the best on the market right now.
Collaboration to support Dubai-based sellers to establish a digital presence, expand to new markets, and reach sustainable growth.
3 min
The Dubai Department of Economy and Tourism (DET) has entered into a partnership with noon, the local digital leader, to launch an e-commerce initiative aimed at boosting the growth of small and medium enterprises (SMEs) in Dubai. This collaboration is part of the broader Dubai Traders initiative, one of the ten transformative projects announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, under the Dubai Economic Agenda (D33).
The initiative is designed to empower Dubai-based SMEs by helping them adopt new digital tools and platforms, enabling them to expand both domestically and internationally.
Dubai Traders aims to strengthen Dubai’s position as a global hub for entrepreneurship and SME growth by supporting these businesses in establishing an online brand presence, digitizing supply chain processes, and accessing e-commerce channels. The initiative focuses on building strong private sector partnerships with leading B2B, B2C, and specialized digital solution providers to offer a comprehensive suite of tools, incentives, and support mechanisms for SMEs to engage with online customers.
The partnership agreement was signed in the presence of H.E. Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism, and Mohamed Alabbar, Founder of Noon. Hadi Badri, CEO of Dubai Economic Development Corporation (DEDC), and Faraz Khalid, CEO of noon, signed the agreement.
Initially, the program will prioritize the e-commerce sector, providing SMEs with the resources they need to establish a robust online presence and succeed in the digital marketplace. Through this collaboration, Dubai Traders will offer an onboarding incentive package to encourage both new and experienced sellers to join the noon platform, gaining increased visibility. Emirati sellers will receive additional benefits, including personalized support through noon’s Mahali program.
Exclusive incentives and support for Dubai Traders program participants include:
Onboarding support: A bespoke onboarding journey with dedicated day-to-day account management to expedite and facilitate the sign up and set up process
Trainings: Access to curated workshops, seminars, and sales insights throughout the selling journey
Increased seller exposure and visibility: Advertising credit packages and prioritised online product placements on noon platforms
Rapid delivery: Preferential access for eligible sellers to noon’s quick-commerce platform (15-minutes delivery model)
Hadi Badri, CEO of Dubai Economic Development Corporation at DET, commented: “SMEs are the backbone of Dubai’s economy and a critical enabler to accelerate economic growth. We welcome noon as a strategic partner in the Dubai Traders program, reflecting our joint commitment towards delivering on the objectives of the Dubai Economic Agenda D33. By directly supporting and investing in the success of local SMEs, the Dubai Traders program serves to unlock the digital potential of Dubai-based sellers and will directly contribute to growing the emirate’s digital economy and fostering innovation. By harnessing e-commerce as a powerful tool to digitise traditional SMEs, we aim to equip businesses with the essential tools to engage with new customers and share their propositions with new markets.”
Faraz Khalid, CEO of noon, commented: “One of noon.com‘s core objectives has always been to empower local entrepreneurs and foster a vibrant e-commerce environment, providing all sellers, regardless of their scale, an equal opportunity to succeed. With the introduction of the Dubai Traders initiative, we are proud to work alongside our partners at the Dubai Department of Economy and Tourism to offer Dubai-based entrepreneurs and SMEs a new avenue to extend their online presence and reach using noon’s tools and fleet.”
The partnership between DET and noon underlines the unique model of collaboration between government and the private sector in Dubai to leverage key strengths and knowledge-share and create a unique and compelling value proposition to support Dubai’s SME ecosystem. Through noon’s expertise and track-record, this collaboration marks a significant steppingstone in driving the Dubai Traders initiative’s vision, and D33 ambitions.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Majid Al-Qasabi: the e-commerce sector constitutes 8% of the total trade in Saudi Arabia.
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The Saudi Minister of Commerce, Mr. Majid Al-Qasabi, has highlighted that the e-commerce sector now accounts for 8% of Saudi Arabia’s total trade.
The projections indicate that the sector’s revenues are expected to reach SR260 billion by 2025. Speaking at a meeting with business leaders and entrepreneurs at the Qassim Chamber, Al-Qasabi noted the impressive growth of financial technology companies, which surged by 95%, increasing from just 10 companies in 2018 to more than 170 today.
On the topic of consumer protection, he mentioned that new rules have been established to regulate the market, control prices, combat fraud, and address commercial cover-ups. A consumer protection system is currently under review by the Experts Authority.
Al-Qasabi also emphasized the collaborative efforts of 13 government agencies within the supervisory committee of the National Program to Combat Commercial Cover-Up, noting the use of artificial intelligence in developing the cover-up index.
When discussing support for small and medium enterprises (SMEs), he outlined six key areas the Small and Medium Enterprises General Authority is focusing on: access to financing, streamlining procedures and fees, fostering an entrepreneurial culture, providing support services, promoting innovation, and facilitating market access. He revealed that SMEs currently account for SR275 billion in credit facilities, representing 8.7% of total credit. He encouraged enterprises and entrepreneurs to take advantage of the upcoming Biban 24 Forum, scheduled for November 5 in Riyadh.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Self-tracking has moved beyond professional athletes and data geeks.
