Saudi Council of Ministers Reaffirms Commitment to Education and Economic Stability

Kuwait’s economic position remains strong, with Fitch Ratings affirming its Long-Term Foreign-Currency Issuer Default Rating (LTFC IDR) at ‘AA-‘ with a Stable Outlook. Despite its solid fiscal foundation and vast sovereign wealth, Kuwait faces ongoing challenges, including heavy dependence on oil revenues, a large public sector, and the need for significant fiscal reforms.

While Kuwait benefits from exceptionally strong external assets, managed primarily by the Kuwait Investment Authority (KIA), the country’s reliance on oil continues to present vulnerabilities. Market observers are particularly focused on Kuwait’s ability to navigate political complexities, implement reforms, and reduce dependence on hydrocarbons. As Kuwait looks to diversify its economy and manage public sector expenditures, the timing and execution of key reforms will be crucial to sustaining long-term growth and maintaining its financial strength in a rapidly changing global environment.

Key Rating Drivers

Fundamental Rating Strengths and Weaknesses: Kuwait’s ‘AA-‘ rating is supported by its exceptionally strong fiscal and external balance sheets. The rating is constrained by weaker governance indicators than peers’, Kuwait’s heavy dependence on oil, its generous welfare system and large public sector that could be challenging to sustain in the long term. Another weakness is the continued absence of both meaningful fiscal adjustments to address structural challenges and legislation to allow debt issuance and improve fiscal financing flexibility.

Exceptionally Strong External Assets: Kuwait’s external balance sheets remain the strongest of all Fitch-rated sovereigns. We forecast Kuwait’s sovereign net foreign assets will rise to 538% of GDP in 2024 and average 553% in 2025-2026, more than 10x the ‘AA’ median. The bulk of the assets are held in the Future Generations Fund managed by the Kuwait Investment Authority (KIA), which also manages the assets of the General Reserve Fund (GRF), the government’s treasury account.

Parliament Suspended, Endling Political Deadlock: The Amir has dissolved parliament and suspended parts of the constitution for no more than four years, during which the country’s democratic process will be reviewed to address its shortcomings. This followed the April 2024 parliamentary election, the fourth since December 2020 and eighth since 2012. Fitch believes this should smooth policymaking, which has been hindered by the long-standing political deadlock between the government and parliament. However, this could affect voice and accountability, and uncertainties over the implementation of critical structural and fiscal reforms weigh on the rating.

Reform Implementation Timeline Uncertain: The newly-appointed government has yet to unveil its four-year policy program. Initial reform plans focus on diversifying oil revenue, improving government efficiency, rationalizing government spending and capping medium-term expenditure at KWD24.5 billion (48% of projected GDP the fiscal year ending March 2025; (FY24)), which is slightly below FY23’s. While parliamentary gridlock is no longer an obstacle, the timeline for implementing key reforms remains uncertain. The government also faces a backlog of laws requiring revision, likely limiting prospects for significant reforms in the near term.

Liquidity Law Assumed; Timeline Uncertain: The government aims to pass a liquidity/debt law (as previous governments have), which is currently under revision, but the implementation timeline is uncertain. The enactment of this law would enable Kuwait to raise new debt, following the expiry of the previous debt law in 2017. Our forecasts assume that a liquidity law will be passed in FY25, although delays are possible. Even without a liquidity law, the government would still be able to meet its financing obligations in the coming years, given the assets at its disposal.

Budget Position to Deteriorate: Under the government’s reporting convention, which excludes KIA’s investment interest income in revenue, and which is not officially disclosed, we expect the budget deficit to widen in FY24. The government plans to rationalize spending in line with its expenditure target, which we anticipate is achievable through modest reductions in non-core expenditures and continued under-spending of the budget. However, significant reform of the generous public employment and welfare spending (81% of total expenditure; 41% of GDP) is unlikely, thereby keeping total expenditure near the target ceiling.

Fitch expect revenue to continue to decline, even as non-oil revenue rises modestly. Oil revenue loss from lower oil prices is partly mitigated by the potential unwinding of OPEC+ oil production quotas from 4Q24. Under the government’s convention, we expect the deficit to widen to 4.4% of GDP in FY24, from 3.1% in FY23, and further to 6.0% in FY25. Including an estimate for investment interest income, we forecast the budget to post lower surpluses of 7.8% of GDP in FY24 (from 7.9% in FY23) and 5.3% in FY25.

Continued Reliant on GRF Financing: Our FY24 forecasts assume that the government will continue to rely on GRF’s assets to cover its budget deficit and meet domestic maturities. Our FY25 forecast assumes that the government will resume borrowing, with about 30% of deficit being financed by debt issuance.

Oil Assumptions: Our forecasts assume Kuwait’s average oil price at USD79.7/bbl for FY24, down 5.1% from FY23, with output declining to 2.42mmbbl/d given OPEC+ constraints. In FY25, we assume Kuwait’s average oil price will fall to USD71/bbl, while crude oil output will rise to 2.51mmbbl/d, as OPEC+ eases constraints. Under this scenario, we anticipate a nearly 4% rise in oil production in FY25 compared with FY24. We estimate Kuwait’s fiscal break-even Brent oil price (including investment income) at USD58-61/bbl in FY24-FY25, with the non-oil primary deficit/non-oil GDP at 70%-76%, significantly worse than regional peers’.

Very Low Government Debt: Gross government debt/GDP remains low, at 3.1% of GDP in FY23. We expect the debt level to remain broadly unchanged in FY24, but assuming the passage of a liquidity law in FY25, along with projected deficits and lower oil prices, we forecast government debt will rise to 4.8% of GDP in FY25 and further in FY26, despite a USD4.5 billion Eurobond maturing in March 2027. Nonetheless, we expect debt levels to remain well below the projected 2025 ‘AA’ median of 50% of GDP.

Regional Conflict Risk; Oil Dependence: Ongoing conflicts in the Middle East and disruptions to Red Sea shipping have had minimal impact on Kuwait, which has large government assets that provide an important buffer to support the economy if tensions were to escalate. However, hydrocarbon dependence weighs on Kuwait’s rating. Kuwait remains heavily dependent on oil revenue, with budget outcomes highly sensitive to oil prices. A USD10/bbl change in our oil price assumption for 2024 would affect the budget balance by about 4% of GDP, all else being equal. A change of 100,000bbl a day of production affects the budget by 1.5% of GDP.

ESG – Governance: Kuwait has an ESG Relevance Score (RS) of ‘5[+]’ respectively for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption. Theses scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in our proprietary Sovereign Rating Model (SRM). Kuwait has a medium WBGI ranking at 53, reflecting low scores for voice and accountability, and middling scores across other governance indicators.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

-Structural Features/Public Finances: Signs of sustained pressure on GRF liquidity, for example, due to the continued absence of a new liquidity law and of alternative measures to ensure that the government can continue to meet its payment obligations, including but not limited to debt service

-Public and External Finance: Significant deterioration in fiscal and external positions, for example, due to a sustained period of low oil prices or an inability to address structural drains on public finances

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

– Structural Features/Public Finances: Strong evidence that Kuwait’s institutions and political system are able to tackle long-term fiscal challenges, for example, through actions to implement a clear deficit reduction plan that is resilient to lower oil prices, as well as adopt a transparent and sustainable government funding strategy.

Sovereign Rating Model (SRM) and Qualitative Overlay (QO)

Fitch‘s proprietary SRM assigns Kuwait a score equivalent to a rating of ‘AA+’ on the LTFC IDR scale.

Fitch’s sovereign rating committee adjusted the output from the SRM to arrive at the LTFC IDR by applying its QO, relative to SRM data and output, as follows:

– Structural Features: -1 notch, to reflect a political context that has prevented meaningful progress in enacting key economic reforms and addressing structural public finance challenges stemming from heavy oil dependence, a generous welfare state and a large public sector, and adopting a transparent and sustainable financing strategy

– Public Finances: -1 notch, to reflect our expectation of continued budget deficits and rising debt over the short- to medium term, due to persistent difficulties of reining in a generous public employment and welfare system that could pose challenges if oil revenues decline for a sustained period of time, even as the large government assets provide an important buffer

Fitch’s SRM is the agency’s proprietary multiple regression rating model that employs 18 variables based on three-year centered averages, including one year of forecasts, to produce a score equivalent to a LTFC IDR. Fitch’s QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the LTFC IDR, reflecting factors within our criteria that are not fully quantifiable and/or not fully reflected in the SRM.

Country Ceiling

The Country Ceiling for Kuwait is ‘AA+’, two notches above the LTFC IDR. This reflects strong constraints and incentives, relative to the IDR, against capital or exchange controls being imposed that would prevent or significantly impede the private sector from converting local currency into FC and transferring the proceeds to non-resident creditors to service debt payments.

Fitch’s Country Ceiling Model produced a starting point uplift of two notches above the IDR. Fitch’s rating committee did not apply a qualitative adjustment to the model result.

References for substantially material source cited as key driver of rating

The principal sources of information used in the analysis are described in the Applicable Criteria.

The following limitations were identified and addressed:

KIA’s assets are not officially reported by the government.

Fitch estimates these assets by compounding the government’s transfers into the KIA, using assumptions about returns and asset allocations that are informed by discussions with the KIA. Fitch benchmarks government transfers into the KIA and KIA investment income against the balance of payments.

The data used was deemed sufficient for Fitch’s rating purposes because it expects that the margin of error related to the estimates would not be material to the rating analysis.

ESG Considerations

Kuwait has an ESG Relevance Score of ‘5[+]’ for Political Stability and Rights as WBGI have the highest weight in Fitch’s SRM and are, therefore, highly relevant to the rating and a key rating driver with a high weight. As Kuwait has a percentile rank above 50 for the respective governance indicator, this has a positive impact on the credit profile.

Kuwait has an ESG Relevance Score of ‘5[+]’ for Rule of Law, Institutional & Regulatory Quality and Control of Corruption as WBGI have the highest weight in Fitch’s SRM and are, therefore, highly relevant to the rating and are a key rating driver with a high weight. As Kuwait has a percentile rank above 50 for the respective governance indicators, this has a positive impact on the credit profile.

Kuwait has an ESG Relevance Score of ‘4’ for Human Rights and Political Freedoms as the Voice and Accountability pillar of the WBGI is relevant to the rating and a rating driver. As Kuwait has a percentile rank below 50 for the respective governance indicator, this has a negative impact on the credit profile.

Kuwait has an ESG Relevance Score of ‘4[+]’ for Creditor Rights as willingness to service and repay debt is relevant to the rating and is a rating driver for Kuwait, as for all sovereigns. As Kuwait has a record of 20+ years without a restructuring of public debt and captured in our SRM variable, this has a positive impact on the credit profile.

Except for the matters discussed above, the highest level of ESG credit relevance, if present, is a score of ‘3’. This means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or to the way in which they are being managed by the entity. Fitch’s ESG Relevance Scores are not inputs in the rating process; they are an observation of the materiality and relevance of ESG factors in the rating decision.

Fils, a trailblazer in ESG-focused financial technology, a pioneering force in ESG-focused financial technology, has announced a partnership with Madkhol, a Saudi-based technology platform specializing in Robo-advisory investment services. The partnership was formalized at the 24 Fintech event, marking a major achievement for both companies and the broader region.

This collaboration enables Madkhol’s users to invest seamlessly in carbon credits and actively reduce their carbon footprint directly through the platform. By integrating Fils’ sustainability technology, Madkhol is raising the bar for capital market fintechs in Saudi Arabia and beyond, offering a unique opportunity for users to incorporate meaningful climate action into their investment portfolios.

Capital markets are vital to advancing economic growth and sustainability efforts. Globally, an estimated $9.2 trillion annually is needed to meet sustainability and climate targets. Achieving these goals will require participation from all industries, with capital markets playing a pivotal role in this transition. In 2020 alone, sustainable investments accounted for over $35 trillion in assets, underscoring their importance in the movement.

Saudi Arabia is at the forefront of this transformation with its Voluntary Carbon Market (VCM) initiative, aimed at establishing one of the region’s largest carbon trading platforms. Led by the Public Investment Fund (PIF) and the Saudi Tadawul Group, this initiative aligns with the Kingdom’s Vision 2030 and is designed to support companies in meeting their net-zero targets by investing in carbon credits. The first auction under the Saudi VCM saw the sale of 1.4 million tons of carbon credits, signaling the sector’s immense growth potential.

The partnership between Fils and Madkhol is in perfect alignment with Saudi Arabia’s VCM goals. By utilizing Fils’ sustainability infrastructure, the collaboration provides users with a transparent, trusted, and reliable way to engage in the carbon credit market, setting a new benchmark for ESG investments in the region.

CEO of Fils, Nameer Khan, commented: “Our partnership with Madkhol comes at a critical time when sustainable finance is becoming a cornerstone of capital markets, and Saudi Arabia’s VCM initiative is setting the stage for the region. Together, we are enabling users to make investments that not only drive returns but also contribute to a sustainable future. This collaboration highlights Fils’ commitment to transparency and trust, essential elements in building a credible and superior solution in the sustainability space.”

He added, “The global challenge of reaching $9.2 trillion annually in climate investments can only be met through the leadership of key industries, and capital markets are at the forefront of this transformation. Fils’ integrity-driven platform ensures that businesses and investors can participate in carbon markets with confidence, helping to foster a more sustainable world.”

Saad bin Atyan, CEO of Madkhol, added: “At Madkhol, we are committed to providing our customers with innovative and responsible investment solutions. Partnering with Fils allows us to take our platform to the next level by integrating carbon credit investments and giving our customers a practical way to offset their emissions. Signing this partnership at 24 Fintech highlights our dedication to pioneering sustainable fintech in Saudi Arabia.”

By utilizing Fils’ comprehensive API-driven sustainability stack, Madkhol customers can now access a variety of carbon credit projects, enabling transparent reporting and ensuring investments align with environmental goals. This seamless integration also supports Saudi Arabia’s Vision 2030 objectives of promoting sustainability and reducing carbon emissions.

Ahson Saeed, Partner – Strategy & Commercials at Fils, commented: “At Fils, we believe that the future of finance is not just about returns, but about responsible, impactful investments. Our partnership with Madkhol is a testament to this vision, bringing together cutting-edge technology and a deep commitment to sustainability. By integrating carbon credit investments into everyday financial decisions, we are empowering investors to take actionable steps towards a greener future. This collaboration marks a new chapter in sustainable finance, aligned with Saudi Arabia’s ambitious climate goals and the broader global movement towards ESG-driven growth.”

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence of the UAE, and Chairman of the Board of Trustees of Dubai Future Foundation (DFF) has approved the launch of the ‘Dubai Research, Development, and Innovation (RDI) Grant Initiative’.

This initiative aims to fund research projects that will drive advancements in Dubai’s key economic sectors. It stems from the Dubai Research and Development Program, which Sheikh Hamdan launched in September 2022. The Dubai Future Foundation will spearhead this initiative, setting a framework for RDI activities in Dubai and defining strategies for managing and investing in RDI projects, initiatives, and legislation.

“Research and development initiatives are central to achieving Dubai’s vision for the future of its key economic sectors. We will spare no effort in supporting research projects that aim to positively impact our journey towards global leadership across all scientific fields. With the launch of this initiative, we aim to make Dubai amongst the most future-ready cities in the world, and the most prepared to harness scientific research to achieve impactful accomplishments,” Sheikh Hamdan said.

The next phase of the initiative will support up to 20 research projects, with a focus on two key RDI Priority Sectors: Cognitive Cities and Health and Life Sciences. These will be explored through Cross-cutting Technologies like Artificial Intelligence (AI) and Robotics Systems. Cognitive Cities research could involve Smart Mobility, Traffic Management, Smart Grids, and PropTech, while Health and Life Sciences may address Precision Medicine, Preventive Genetic Sequencing, Cell-Cultured Foods, and Crop Resilience.

Sheikh Hamdan emphasized that “Dubai will become a destination of choice for regional and international scientists and researchers. To achieve this goal, we must strengthen collaboration and partnerships between the public and private sectors, as well as universities and research institutions.”

The Dubai Future Foundation will work closely with local and international partners, spanning both public and private sectors, as well as academic institutions, to bring eligible projects to life. For more information on the ‘Dubai RDI Grant Initiative’, interested parties are encouraged to visit the Dubai RDI website.

As part of our coverage of the Dubai AI & Web3 Festival, we had the privilege of interviewing Mr. Garen Mehrabian, COO of Public Masterpiece UAE.

Public Masterpiece has been at the forefront of blending art with blockchain technology, transforming how high-value assets like fine art are tokenized and traded in the Web3 ecosystem. At the festival, the company unveiled the $3 million ‘Golden Khmer Flower Of Life,’ another innovated way to integrate blockchain into the art world.

In this interview, Garen shares insights into how Public Masterpiece is navigating the challenges of educating people about blockchain, forming key partnerships, and staying ahead in the rapidly evolving AI and Web3 landscape. We also explore how events like the Dubai AI & Web3 Festival foster collaboration across industries, as Public Masterpiece continues to lead the way in tokenizing Real-World Assets (RWAs) and driving innovation in the art world.

 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 our vision to blend art with blockchain technology, especially as we continue to tokenize Real-World Assets (RWAs) through Public Masterpiece. The festival provided an invaluable platform to showcase our innovative approaches, including the unveiling of the $3 million ‘Golden Khmer Flower Of Life.’ This event aligned perfectly with our mission to push the boundaries of how high-value assets, like fine art, can be integrated into the Web3 ecosystem and provide new investment opportunities.

Do you think events like this can foster collaboration between innovators, startups, and established tech companies?

Absolutely. The Dubai AI & Web3 Festival demonstrated how events like this are key to fostering collaboration between innovators, startups, and established tech companies. The diverse ecosystem created an environment where new partnerships were formed, and synergies between art, technology, and finance could flourish. As a premium partner, Public Masterpiece leveraged these interactions to further our mission and gain valuable insights into the latest developments in AI and blockchain.

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 main challenges we face is educating people about blockchain technology and bringing more individuals on-chain. Many potential users are unfamiliar with how blockchain works or its benefits in terms of security, transparency, and decentralized ownership. As a company, we are addressing this by providing educational resources and hands-on experiences at events like the Dubai AI & Web3 Festival. We also create content and workshops to help the broader community understand the value of blockchain in tokenizing art and assets, ensuring that our platform is accessible and user-friendly for newcomers. By focusing on education, we aim to bridge the gap and bring more people into the Web3 space.

What strategies are you using to stay ahead of the rapidly evolving AI and Web3 landscape?

Our strategies are centered around innovation, collaboration, and staying at the forefront of technology. By working closely with international artists like Rocketbyz and Romulo Kuranyi, as well as forging partnerships with entities like Golden Silk, we ensure that our product offerings remain cutting-edge. We also focus on integrating Web3 technologies into various industries, from art to fashion, and consistently refine our platform with real-time feedback and research. Events like the Dubai AI & Web3 Festival keep us connected to global trends, allowing us to adapt and evolve quickly.

What impact do you see AI and Web3 technologies having on your company’s growth and long-term strategy?

AI and Web3 technologies are critical to Public Masterpiece’s long-term growth. They enable us to unlock new forms of art ownership and investment, ensuring that we stay ahead in an increasingly digital world. Through Web3, we are decentralizing access to high-value art, making it possible for anyone to invest in masterpieces. AI, on the other hand, can improve how we analyze and curate assets, enhancing the user experience. Over the next few years, these technologies will allow us to expand our marketplace and create more immersive and secure experiences for our community.

What role does your company play in advancing AI governance or standards, either regionally or globally?

While we are primarily focused on the art and asset tokenization space, Public Masterpiece recognizes the importance of contributing to the development of AI and blockchain standards. Our partnerships, such as with Golden Silk and the Cambodian government to implement blockchain certification for historical artifacts, demonstrate our active role in advancing governance frameworks in these areas. By working closely with international regulators and participating in events like the Dubai AI & Web3 Festival, we aim to help shape the global conversation around the responsible use of these technologies.

How has your participation in events like the Dubai AI & Web3 Festival influenced your company’s strategy or approach to innovation?

The Dubai AI & Web3 Festival has had a profound impact on our strategy and approach to innovation. Engaging with leaders in the AI and Web3 spaces has reinforced the need for us to remain agile and open to new technological advancements. The feedback we received from our Metaverse VR experience and the unveiling of the ‘Golden Khmer Flower Of Life’ has encouraged us to pursue more immersive and interactive digital experiences. Our strategy now places a stronger emphasis on integrating these innovations into our core offerings and expanding our presence in the Web3 space.

What key milestones are your company targeting over the next 2-3 years in the AI and Web3 sectors?

In the next 2-3 years, Public Masterpiece is focused on achieving several key milestones. First, we aim to fully launch our gallery in Q1 2025, where we will showcase our tokenized masterpieces. We also plan to deepen our integration with Web3 technologies by expanding the range of tokenized Real-World Assets, including art, fashion, and historical artifacts. Collaborations with artists and brands like Rocketbyz and Golden Silk will be key to our growth. Additionally, we are exploring new ways to enhance the Metaverse VR experience, making art more accessible in the digital space while continuing to grow our marketplace and community.

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.

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.

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.

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.

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.

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.

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.

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.

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.”

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.