The Art Market Is Tanking. Sotheby’s Has Even Bigger Problems.
The auction house, owned by highly leveraged billionaire Patrick Drahi, is pushing off payments, awaiting a financial lifeline from an Abu Dhabi fund
10 min
The art market is grinding through a rough patch, and no one is feeling the pain more than Sotheby’s.
The sales downturn, driven in part by China’s economic slowdown, wars and volatile U.S. elections, has hit at a crunchtime for the auction house’s highly leveraged billionaire owner, Patrick Drahi , who is fighting fires amid restructuring in his broader telecom empire, Altice .
Sotheby’s had been riding a rollicking art market wave in recent years, bringing in at least $7 billion in sales annually and setting record-level prices for trophies by Gustav Klimt and René Magritte.
Now, amid signs cash is running low, it is pushing off payments to its art shippers and conservators by as much as six months. Several former and current employees said Sotheby’s this spring gave senior staffers IOUs instead of their incentive pay. And at a meeting this month of higher-ranking executives, some executives expressed worries about whether the company would be able to keep paying its employees on time, according to a person familiar with the discussion.
Drahi has at the same time been under pressure to slash the crushing debt of roughly $60 billion at Altice. The conglomerate’s French arm is now going through restructuring talks with creditors, with the U.S. arm expected to enter restructuring talks later. Some Wall Street analysts had hoped Drahi might sell part of Sotheby’s to help bolster Altice.
Sotheby’s itself carries $1.8 billion in debt, almost double the level it had before the Franco-Israeli billionaire purchased it in 2019. The value of its bonds swooned in the first half of the year as investors worried that declining sales and higher interest rates would choke off the company’s cash flow.
The auction house received a lifeline with a $1 billion deal to sell a stake to Abu Dhabi sovereign-wealth fund ADQ , announced Aug. 9 but not expected to close until later this year. At the time, Drahi said he would contribute an undisclosed amount as part of the deal.
As it awaits the funds, Sotheby’s is toeing a high-wire act with an uncertain outcome.
Charles Stewart , Sotheby’s chief executive, dismissed fears about Sotheby’s financial standing as overblown, and the company disputed the meeting with higher-ranking executives occurred. Stewart said the company’s bonds, which have rebounded in price since the ADQ rescue was announced, are proof that Sotheby’s has smoothed over any worries. He said the ADQ investment will position the house for growth moving forward. “It’s a massive credit positive,” he said.
A Sotheby’s spokeswoman said: “Under Mr. Drahi’s ownership, Sotheby’s is significantly larger, more diversified and more profitable than ever before. During this period, we have invested hundreds of millions to enhance our facilities, technology and expand our offerings to clients.”
ADQ declined to comment.
The crisis at Sotheby’s comes at a time when the entire art market is reeling . Over the past year, collectors who see art as a financial asset have winced as higher interest rates and inflation made it more expensive to trade art. Contemporary art buyers have also suffered sticker shock after years of paying ever-higher prices for emerging artists—who may never pay off. Some smaller galleries, who rely on collectors to vouch for unknown artists, have shuttered, while dealers have reported lacklustre sales at art fairs.
Those factors have hurt collectors’ overall confidence. “I don’t feel like there’s a bunch of collectors waiting out there to save the day this time,” said Dallas collector Howard Rachofsky.
Growing debt load
Drahi, 61 years old, is famous for taking on a mountain of debt to build telecommunications empire Altice, which operates in the U.S. and Europe. He borrowed from Wall Street when interest rates were low, but now that rates have risen sharply, he has started selling off chunks of his companies to lower his debt burden. Last month, his Altice UK sold a 24.5% stake in its BT Group to the Indian international investment arm of Bharti Enterprises in a deal valued at roughly $4 billion.
Drahi used a similar high-debt strategy to buy Sotheby’s in 2019 for $2.7 billion. Drahi issued $1.1 billion in new bonds and loans to finance the deal, and separately also assumed some portion of Sotheby’s existing $1 billion debt.
He has since spent lavishly, including signing a deal to pay at least $100 million for New York’s Breuer building, a Madison Avenue showpiece once home to the Whitney Museum of American Art and temporarily used by both the Metropolitan Museum of Art and Frick Collection. The company is planning to move in at the end of next year and to lease out part of its current glassy headquarters closer to the East River in Manhattan. Sotheby’s has spent tens of millions more to renovate new luxury-retail-style spaces in Paris and Hong Kong.
Drahi also expanded Sotheby’s ability to auction multimillion-dollar homes by buying a chunk of real-estate seller Concierge, and added RM Sotheby’s, an entity that sells high-end cars.
At the same time, the owner has pulled funds out of the company via dividends. In total since the purchase, Sotheby’s has paid out $1.2 billion of dividends to a parent company controlled by Drahi, according to New Street Research.
The ballooning debt didn’t draw much attention during flush years when an influx of newly wealthy collectors from across China, Russia, the Middle East and even the world of cryptocurrency were clamouring after Sotheby’s offerings.
That changed when the market cooled. Sotheby’s told its bondholders the auction portion of the business had a loss of $115 million in the first half of the year, compared to a $3 million profit in the first half of 2023, according to a copy of Sotheby’s unaudited financials for the first half of the year reviewed by The Wall Street Journal.
Rival Christie’s, owned by luxury magnate François Pinault , has also taken a hit, with its auction sales dropping nearly a quarter during the first half of the year.
Sotheby’s adjusted operating free cash flow fell to $144 million in the 12 months ended June 30, a 43% decline from the same time last year, according to data from New Street Research. The figure measures whether a company is making enough money to pay its bills and turn a profit.
Credit rating firm Moody’s Investors Service in February knocked down the ratings for Sotheby’s bonds to B3, one of its lowest categories of junk debt, specifically citing the dividends paid out. “The downgrade also reflects governance considerations, particularly the company’s decision to continue dividend payments out of its credit group in 2023 despite its operating performance deterioration,” Moody’s said in its decision. S&P downgraded the debt into deep junk territory in June.
Stewart said the company’s credit rating has been lower since the Drahi purchase. He said its updates to bondholders revolve around its auction performance only and don’t include fees from the company’s real-estate holdings or financial-services arm, which Stewart said remain in the black. He declined to divulge the company’s full financial figures.
Stewart also said the dividends remain in the Sotheby’s ecosystem and aren’t being redirected to shore up Drahi or his other businesses.
Drahi’s arrival
Sotheby’s was flush with cash but lagging behind Christie’s in 2018 when Tad Smith, the auction house’s then-CEO, suggested to his board that it find a buyer. The company had been public for three decades, but Smith believed the demands for public shareholder returns hampered its ability to go toe-to-toe with the bigger and privately held Christie’s.
In early 2019, the board let Smith make overtures to prospective buyers, including an entity connected to Abu Dhabi’s royal family that expressed interest, according to a person familiar with the negotiations. Drahi moved more quickly and emerged as the winner.
At first, the art establishment didn’t know much about Drahi. The self-made billionaire was born in Morocco, educated in France and has homes in Switzerland and Israel. He was familiar to Sotheby’s staffers in their Tel Aviv office but wasn’t widely known in art circles.
At the time, he was a traditional collector of 19th- and 20th-century artists rather than trendier, contemporary ones, owning pieces by Pablo Picasso, Henri Matisse and Marc Chagall. But he didn’t sit on major museum boards or pop up regularly on the art-fair circuit.
The Sotheby’s purchase marked Drahi’s first foray into luxury. The art world wondered if he would manage a house that started off auctioning books in London in 1744 the same way he ran his broadband communications companies, where he was known for aggressively cutting costs and using debt to fuel ambitious expansions.
Drahi told Sotheby’s he saw the company as an investment for his family, regularly dismissing rumors he was teeing up Sotheby’s to be resold. In 2021, Sotheby’s promoted his son Nathan, then 26, to run Sotheby’s operations in Asia, a key market.
As part of the sale, Sotheby’s divided its various endeavors—such as its real-estate arm and its financial services arm, which lends against people’s art collections—into affiliated but separate entities from the main unit, which handles Sotheby’s auctions and private art sales.
Stewart said Drahi’s move was intended to keep each division nimble.
The art-world ecosystem noticed Drahi’s arrival in other ways. Soon after the sale, a network of smaller companies that auction houses typically enlist to conserve, frame, crate and ship its art around the world said they got word that the house would be lengthening its pay schedules, from a typical month to two or more. One conservator said payments started to arrive six months after a job was completed.
Sotheby’s also started paying sellers more slowly than its rivals. In the past, both Sotheby’s and Christie’s asked winning bidders to pay for their pieces within 30 business days of a sale, and then paid sellers five days later. Sotheby’s changed its contracts to allow it to pay sellers 15 days later, according to sellers familiar with the house’s contracts. The move allowed the house to hold the funds in its coffers longer.
Sotheby’s said its processing deadlines have been in place for many years to allow the company to adequately process payments.
Pay for top talent
When the pandemic hit, Drahi and his management team reoriented the company to sell art online, a pivot Sotheby’s is credited with embracing faster than its rivals.
Sotheby’s also started laying off staff during the lockdown, and continued to do so after the pandemic. When the ever-swirling calendar of fairs and museum openings and biennials got under way again, advisers including Philip Hoffman of the Fine Art Group said they noticed fewer Sotheby’s staffers turned up. The company would send one or two rainmakers, not a whole team.
Stewart confirmed the pandemic-related staff cuts “like many other companies” and winnowed travel were meant to make the company more efficient, though he said it remains “mission critical” to put its top specialists in front of collectors.
Drahi needed Sotheby’s key dealmakers to remain in place. High-end art deals at auction houses are wrangled primarily by a handful of executives and specialists able to cultivate an air-kiss closeness with collectors. They also must be able to discern a fake Picasso from a real one, and price it to sell well in good markets and bad.
In 2021, Drahi revised the incentive pay program for these top performers. In exchange for accepting an immediate pay cut of up to 20%, employees were told they could expect a cash payout in three years based on the company’s performance and representing up to half of their total compensation.
Some powerful executives still left, dealing a blow to the auction house. Patti Wong , Sotheby’s former international chairman for Asia, now works as a private adviser, and Brooke Lampley , its former global chairman of fine art, is now a senior director at the blue-chip gallery Gagosian.
When the delayed payout came due, staff were told in conference calls—some say last fall and others say in March—that it needed to be postponed; enrollees were issued promissory notes this spring instead, according to several former and current specialists. Specialists said they now are hoping to get paid by year’s end with a portion of the Abu Dhabi funds.
The company disputed the description of the incentive program but declined to give further details.
New fees for sellers
In February, Sotheby’s shocked the art world when it fundamentally restructured the way it collects fees for works that it auctions.
Both Sotheby’s and Christie’s, in efforts to bring sellers to their doors, often waived their fees. They even shared with sellers increasingly fatter slices of the fees they charge buyers—which can add up to roughly 27% to a work’s winning price.
At the same time, buyers have bristled over the fees they pay. Rachofsky, the Dallas collector, said he has long agitated that “auction fees are unsustainably high.”
Sotheby’s new fee plan, which went live in late May, now charges buyers a flat 20% for anything it sells for $6 million or less, and 10% for anything it sells for more. For sellers, Sotheby’s charges a fee of 10% on the first $500,000 of anything it sells for $5 million or less. Terms for larger deals continue to be negotiated.
Christie’s and smaller house Phillips said they also charge an undisclosed seller’s commission, but their fee is negotiable.
Stewart said the goal is to create a system that is “simpler and fairer.”
It’s too soon to tell if Sotheby’s new fee structure will help or hamper its effort to win consignments. Sotheby’s has landed the prized estate of the season, an estimated $200 million collection amassed by Palm Beach beauty mogul Sydell Miller that includes a Claude Monet water lily scene estimated to sell for $60 million. The collection will headline the November sales.
Art adviser Anthony Grant said one of his collectors reasons that Sotheby’s might hustle harder to find bidders for each work now that they’re charging sellers a fee to do so. But Grant said he worries the change could also steer sellers of midmarket pieces to other houses who may not charge them extra for anything.
“It’s one more thing that’s gotten harder for them,” he said of Sotheby’s, where he once worked.
Asia is expected to play a crucial role in Sotheby’s prospects. In recent years, newly wealthy bidders in Asia—spanning mainland China to Seoul to Singapore—have been relied upon to mop up art at the highest levels even when collectors elsewhere held back. Now, China’s economy has slowed, sparking fears about its buyers’ willingness to splurge on blue-chip art.
Instead of scaling back, the major auction houses are all doubling down on the region. Sotheby’s and Christie’s both just opened luxurious new spaces in Hong Kong. Sotheby’s Maison space in Hong Kong’s Central neighborhood, opened in late July, said it has already had 300,000 visitors.
This month, on the eve of what was supposed to be its inaugural fall sale series in Hong Kong, the house announced it was pushing back these sales to November. Advisers who work in the region said the move left the impression that the house had failed to gather enough marquee material.
Sotheby’s said the calendar shift gives it more time to organise shows and a sale lineup, and said the delay wasn’t because the art was too tough to source. It cited its plan to sell an estimated $30 million Mark Rothko from 1954, “Untitled (Yellow and Blue),” in Hong Kong later this year.
Collector and dealer Hong Gyu Shin initially consigned an Oscar Wilde manuscript of “The Picture of Dorian Gray” to Sotheby’s to offer in its Hong Kong sales, he said, but he later changed his mind. He said he wanted the auction house to revel in the piece, which contains Wilde’s own handwritten edits, and he wanted to brainstorm the best way to position it to buyers. Instead, there was little conversation after the paperwork was signed.
“Specialists used to be so excited,” he said, “but now they just slap an estimate on it. When you have historical work, it’s a form of art to sell it.”
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Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
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This collaboration aims to expand Utimaco’s footprint and impact across the Middle Eastern markets.
2 min
AmiViz, the leading cybersecurity-focused value-added distributor headquartered in the Middle East, has announced a strategic partnership with Utimaco, a global platform provider of IT security solutions. This collaboration aims to expand Utimaco’s footprint and impact across the Middle Eastern markets, offering organizations access to advanced data protection, key management, secure payments and Trust as a Service offering through AmiViz’s comprehensive network and robust channel partner ecosystem.
As cyber threats continue to escalate globally and regionally, organizations in the Middle East are facing increased pressure to protect their critical data and communication networks. By partnering with AmiViz, Utimaco can reach a broader range of customers, helping enterprises safeguard sensitive information while ensuring compliance with local and international regulations.
Utimaco’s comprehensive security solutions, including Hardware Security Modules (HSMs), key management, and data encryption technologies, form the foundation of digital trust across diverse industries. By safeguarding data, identities, and communications, Utimaco enables secure operations for critical sectors such as financial services, telecommunications, and government entities.
“Partnering with Utimaco represents a significant step forward in our mission to deliver unparalleled value and advanced security solutions to our customers,” said Ilyas Mohammed, COO at AmiViz. “Utimaco’s reputation for reliability and innovation in cybersecurity aligns perfectly with our commitment to providing top-quality, robust security infrastructures for businesses across the Middle East.”
AmiViz will offer comprehensive support, from pre-sales consultancy to post-sales implementation, ensuring that Utimaco’s solutions are seamlessly integrated into customers’ cybersecurity ecosystems. The AmiViz Partner Program will also play a key role in helping Utimaco build and nurture relationships with local partners, thereby increasing its market share and footprint in the region.
Scott Kemish, global vice president channel sales & partnerships, Utimaco, commented on the partnership, “We are delighted to join forces with AmiViz to expand our presence in the Middle East. AmiViz’s deep understanding of the regional market, coupled with its vast partner network, makes it the ideal partner to help us deliver our cybersecurity and compliance solutions to organizations throughout the region. Together, we can empower businesses to protect their data, identities, and communications in an increasingly complex digital landscape.”
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This partnership spotlights the combined efforts of Binance and TOKEN2049 to foster deeper connections within the blockchain community
2 min
Binance has announced a strategic partnership with TOKEN2049, the premier global events platform for digital asset professionals and enthusiasts. TOKEN2049 is known for hosting the largest global events focused on cryptocurrency, blockchain, and decentralized technologies in Dubai and Singapore, where founders and executives of leading Web3 companies share their insights on the industry’s past, present, and future.
Set to take place in Dubai from 30 April to 1 May 2025, TOKEN2049 is returning to Dubai to feature high-profile speakers and unparalleled networking opportunities designed to unite the Web3 community and professionals in the space. This partnership underscores Binance’s and TOKEN2049’s leadership in the blockchain space, particularly within the MENA region, as Dubai continues to solidify its status as a global hub for cryptocurrency and blockchain innovation.
“We are thrilled to join forces with TOKEN2049 for their Dubai event in 2025, bringing back our much-loved Binance Clubhouse. This strategic collaboration enhances our shared vision of empowering the next chapter of Web3 while reinforcing our commitment to building trust and fostering engagement among the community. We look forward to collaborating with TOKEN2049 in creating a vibrant and inspired Clubhouse space for 2025.” – Rachel Conlan, CMO at Binance.
“TOKEN2049 Dubai is set to be a landmark event, bringing together the global crypto ecosystem for a spectacular new experience. With 15,000 attendees and over 500 side events, Dubai will be the industry’s focal point on 30 April – 1 May 2025. Our partnership with Binance underscores TOKEN2049’s position as the premier global platform for showcasing the latest industry developments and driving technological innovation.” – Alex Fiskum, Co-Founder of TOKEN2049.
In line with TOKEN2049’s dedication to celebrating and unifying the blockchain industry, Binance Blockchain Week is also returning to Dubai this year. Under the theme ‘Momentum,’ the event will highlight the Middle East’s crucial role in the global digital economy and explore how decentralized finance has continued to evolve. Binance Blockchain Week will feature some of the most influential and educational leaders within the industry and is an opportunity to network with some of the most fast paced networks and ecosystems in the word, paving the way for newcomers and opening more doors for developers and enthusiasts alike.
This partnership spotlights the combined efforts of Binance and TOKEN2049 to foster deeper connections within the blockchain community, empowering developers, enthusiasts, and newcomers to collaborate with industry leaders. By uniting these key players, the partnership aims to accelerate innovation and shape the future of decentralized finance globally.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
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Blackstone and TikTok’s parent are among those investing in data centers in Malaysia’s Johor, known for palm-oil plantations
4 min
ISKANDAR PUTERI, Malaysia— Gary Goh was the chief executive of a publicly listed property developer three years ago when prospective clients started asking whether his company had land for data centres.
Goh was vaguely aware that technology companies needed computer centres to manage heaps of data, but he had never seen such a building. “I didn’t know whether it was round, was it a rectangle, was it a triangle?” he said.
But after the 10th inquiry, Goh realised the tech industry was about to spend billions of dollars on data centres in his sleepy corner of Malaysia. So he quit his job to cash in.
Nowhere else on Earth has been physically reshaped by artificial intelligence as quickly as the Malaysian state of Johor. Three years ago, this region next to Singapore was a tech-industry backwater. Palm-oil plantations dotted the wetlands. Now rising next to those tropical trees 100 miles from the equator are cavernous rectangular buildings that, all together, make up one of the world’s biggest AI construction projects.
TikTok’s Chinese parent company, ByteDance , is spending $350 million on data centres in Johor. Microsoft just bought a 123-acre plot not far away for $95 million. Asset manager Blackstone recently paid $16 billion to buy AirTrunk , a data-centre operator with Asia-wide locations including a Johor facility spanning an area the size of 19 football fields. Oracle last week announced a $6.5 billion investment in Malaysia’s data-centre sector, though it didn’t specify where.
In all, investments in data centres in Johor, which can be used for both AI and more conventional cloud computing, will reach $3.8 billion this year, estimates regional bank Maybank.
“At first glance, Johor seems unlikely, but once you double click on it, it makes a lot of sense,” said Peng Wei Tan, a Blackstone senior managing director who helped lead its acquisition of AirTrunk.
To understand how one of the first boomtowns of the AI era sprouted at the southern tip of the Malay Peninsula, consider the infrastructure behind AI.
Tech giants want to train chatbots, driverless cars and other AI technology as quickly as possible. They do so in data centres with thousands of computer chips, which require a lot of power, as well as water for cooling.
Northern Virginia became the world’s biggest data-centre market because of available power, water and land. But supply is running low. Tech companies can’t build data centres fast enough in the U.S. alone.
Enter Johor. It has plentiful land and power—largely from coal—and enough water. Malaysia enjoys generally friendly relations with the U.S. and China, reducing political risk for companies from the rival nations.
The other important factor: location. Across the border is Singapore, which has one of the world’s densest intersections of undersea internet cables. Those are modern-age highways, enabling tech companies to sling mountains of data around the world.
“This Johor development isn’t for serving just Malaysia,” said Rangu Salgame , chief executive of Princeton Digital Group, a data-centre operator that counts some of the world’s biggest tech companies as clients. “This is AI being deployed globally.”
Working with government
Salgame said companies previously built data centres in Singapore because of its interconnectivity. But in 2019, the tiny and densely populated island nation put a moratorium on new centres because of energy constraints. So data-centre operators did the next best thing, which was to go an hour across the bridge.
While Amazon , Google, Meta and other tech giants run their own data centres, they also rely on third-party data-centre operators for 30% of their needs in the U.S. and about 90% of their needs internationally, Salgame said.
The third parties construct data centres, which cost $1 billion to $2 billion each. Tech companies act as tenants, installing their own hardware inside. Most Johor data centres are run by third parties, which don’t necessarily have agreements with tech clients before starting projects.
“We’re going in speculatively,” Salgame said.
Salgame said he gets insights from big tech companies before beginning projects, so he has a sense of what they want. And the sense now is they want Johor.
Salgame predicts that the Malaysian state will become the world’s second-biggest data-center market within five years. “I’ve never seen anywhere in the world come up at this speed,” he said.
The industry measures data-centre markets by the electricity they use. Northern Virginia has about 4.2 gigawatts active and an additional 11.4 gigawatts under construction, committed or in early stages, said Vivian Wong , an analyst at research firm DC Byte.
Johor, after having less than 10 megawatts—or 0.01 gigawatts—three years ago, now has 0.34 gigawatt active and an additional 2.6 gigawatts under construction, committed or in early stages.
Help from government
Government officials have mostly encouraged the investments, streamlining the permitting process. Salgame said his company’s Johor center was proposed, constructed and operating within 15 months.
But the mayor of Johor Bahru, the state capital, said the government must balance economic benefits with local needs. He said it should consider building desalination plants, among other things, to ensure locals have enough water. The area has faced shortages.
“We know that people are too hyped about data centres,” said the mayor, Mohd Noorazam Osman, at a recent conference.
After quitting his property-development job, the 40-year-old Goh started consulting for potential land buyers and sellers. His specialty was knowing which sites among the plantations and swamps could be easily converted into data centres.
He found success in the Johor city of Iskandar Puteri, where telecom carriers recently broke ground on a 42-acre lot across the street from a McDonald’s. The site isn’t perfect. A hill needs to be flattened before further construction occurs.
But on a recent sweltering day, Goh pointed at the power lines and light-blue water pipes running through the lot, signifying easy access to electricity and water. “These conditions are hard to come by,” he said.
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Geoffrey Hinton hopes the prize will add credibility to his claims about the dangers of AI technology he pioneered
4 min
The newly minted Nobel laureate Geoffrey Hinton has a message about the artificial-intelligence systems he helped create: get more serious about safety or they could endanger humanity.
“I think we’re at a kind of bifurcation point in history where, in the next few years, we need to figure out if there’s a way to deal with that threat,” Hinton said in an interview Tuesday with a Nobel Prize official that mixed pride in his life’s work with warnings about the growing danger it poses.
The 76-year-old Hinton resigned from Google last year in part so he could talk more about the possibility that AI systems could escape human control and influence elections or power dangerous robots. Along with other experienced AI researchers, he has called on such companies as OpenAI, Meta Platforms and Alphabet -owned Google to devote more resources to the safety of the advanced systems that they are competing against each other to develop as quickly as possible.
Hinton’s Nobel win has provided a new platform for his doomsday warnings at the same time it celebrates his critical role in advancing the technologies fueling them. Hinton has argued that advanced AI systems are capable of understanding their outputs, a controversial view in research circles.
“Hopefully, it will make me more credible when I say these things really do understand what they’re saying,” he said of the prize.
Hinton’s views have pitted him against factions of the AI community that believe dwelling on doomsday scenarios needlessly slows technological progress or distracts from more immediate harms, such as discrimination against minority groups .
“I think that he’s a smart guy, but I think a lot of people have way overhyped the risk of these things, and that’s really convinced a lot of the general public that this is what we should be focusing on, not the more immediate harms of AI,” said Melanie Mitchell, a professor at the Santa Fe Institute, during a panel last year.
Hinton visited Google’s Silicon Valley headquarters Tuesday for an informal celebration, and some of the company’s top AI executives congratulated him on social media.
On Wednesday, other prominent Googlers specialising in AI were also awarded a Nobel Prize. Demis Hassabis, chief executive of Google DeepMind, and John M. Jumper, director at the AI lab, were part of a group of three scientists who won the chemistry prize for their work on predicting the shape of proteins.
Thinking like people
Hinton is sharing the Nobel Prize in physics with John Hopfield of Princeton University for their work since the 1980s on neural networks that process information in ways inspired by the human brain. That work is the basis for many of the AI technologies in use today, from ChatGPT’s humanlike conversations to Google Photos’ ability to recognise who is in every picture you take.
“Their contributions to connect fundamental concepts in physics with concepts in biology, not just AI—these concepts are still with us today,” said Yoshua Bengio , an AI researcher at the University of Montreal.
In 2012, Hinton worked with two of his University of Toronto graduate students, Alex Krizhevsky and Ilya Sutskever, on a neural network called AlexNet programmed to recognise images in photos. Until that point, computer algorithms had often been unable to tell that a picture of a dog was really a dog and not a cat or a car.
AlexNet’s blowout victory at a 2012 contest for image-recognition technology was a pivotal moment in the development of the modern AI boom, as it proved the power of neural nets over other approaches.
That same year, Hinton started a company with Krizhevsky and Sutskever that turned out to be short-lived. Google acquired it in 2013 in an auction against competitors including Baidu and Microsoft, paying $44 million essentially to hire the three men, according to the book “Genius Makers.” Hinton began splitting time between the University of Toronto and Google, where he continued research on neural networks.
Hinton is widely revered as a mentor for the current generation of top AI researchers including Sutskever, who co-founded OpenAI before leaving this spring to start a company called Safe Superintelligence.
Hinton received the 2018 Turing Award, a computer-science prize, for his work on neural networks alongside Bengio and a fellow AI researcher, Yann LeCun . The three are often referred to as the modern “godfathers of AI.”
Warnings of disaster
By 2023, Hinton had become alarmed about the consequences of building more powerful artificial intelligence. He began talking about the possibility that AI systems could escape the control of their creators and cause catastrophic harm to humanity. In doing so, he aligned himself with a vocal movement of people concerned about the existential risks of the technology.
“We’re in a situation that most people can’t even conceive of, which is that these digital intelligences are going to be a lot smarter than us, and if they want to get stuff done, they’re going to want to take control,” Hinton said in an interview last year.
Hinton announced he was leaving Google in spring 2023, saying he wanted to be able to freely discuss the dangers of AI without worrying about consequences for the company. Google had acted “very responsibly,” he said in an X post.
In the subsequent months, Hinton has spent much of his time speaking to policymakers and tech executives, including Elon Musk , about AI risks.
Hinton cosigned a paper last year saying companies doing AI work should allocate at least one-third of their research and development resources to ensuring the safety and ethical use of their systems.
“One thing governments can do is force the big companies to spend a lot more of their resources on safety research, so that for example companies like OpenAI can’t just put safety research on the back burner,” Hinton said in the Nobel interview.
An OpenAI spokeswoman said the company is proud of its safety work.
With Bengio and other researchers, Hinton supported an artificial-intelligence safety bill passed by the California Legislature this summer that would have required developers of large AI systems to take a number of steps to ensure they can’t cause catastrophic damage. Gov. Gavin Newsom recently vetoed the bill , which was opposed by most big tech companies including Google.
Hinton’s increased activism has put him in opposition to other respected researchers who believe his warnings are fantastical because AI is far from having the capability to cause serious harm.
“Their complete lack of understanding of the physical world and lack of planning abilities put them way below cat-level intelligence, never mind human-level,” LeCun wrote in a response to Hinton on X last year.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
China is Australia’s largest trading partner, but Australia’s growing security ties with the U.S. has added complexity to its relationship with Beijing
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SYDNEY—China will lift a ban on Australian rock lobster imports by the end of the year, Australia’s prime minister said Thursday, as ties between the two major trading partners continue to stabilise.
The announcement, following months of speculation, comes after China previously lifted trade barriers on various other Australian goods including barley, wine and beef. Beijing imposed the restrictions in the aftermath of the Covid-19 pandemic, during a diplomatic spat with Australia’s previous government.
Many of Australia’s live lobsters were sent to China prior to the ban, which sent prices spiralling downward.
“With our patient, calibrated and deliberate approach, we’ve restored Australian trade with our largest export market,” Australian Prime Minster Anthony Albanese said Thursday after meeting with Chinese Premier Li Qiang alongside an Asean summit in Laos. “We’ve worked for the removal of trade impediments one by one.”
Albanese said the lifting of the ban would support Australian jobs, and noted the ban will be lifted in time for Lunar New Year in early 2025.
China is Australia’s largest trading partner, but Australia’s growing security ties with the U.S. has added complexity to its relationship with Beijing. Ahead of the meeting with Li, Albanese said his message would be that “we’ll cooperate where we can, we’ll disagree where we must.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
By 2026, the initiative seeks to ensure that 90% of transactions within the city are cashless.
2 min
Dubai has introduced the “Dubai Cashless Strategy,” an initiative from Digital Dubai a forward-thinking initiative designed to accelerate the adoption of secure digital payment solutions across both the public and private sectors. This strategy is a key move in reinforcing the city’s position as a global leader in the digital economy.
The strategy supports Dubai’s broader economic ambitions outlined in the Dubai Economic Agenda (D33) and Digital Dubai’s goal to integrate digital solutions into all aspects of daily life. By 2026, the initiative seeks to ensure that 90% of transactions within the city are cashless. This shift is anticipated to contribute more than AED 8 billion to the economy annually, largely driven by fintech advancements.
Abdulrahman Saleh Al Saleh, Director-General of the Department of Finance, highlighted that Dubai’s financial infrastructure meets international standards, making the city a frontrunner in cashless transactions. He noted that almost all government transactions were conducted digitally in 2023, showcasing Dubai’s advanced digital capabilities. Al Saleh also emphasized how this initiative aligns with His Highness Sheikh Mohammed bin Rashid Al Maktoum’s vision to enhance Dubai’s global business status.
Helal Saeed Almarri, Director-General of the Department of Economy and Tourism, reiterated the strategy’s alignment with the D33 agenda, which focuses on transitioning the majority of transactions to digital formats by 2026.
Hamad Obaid Al Mansoori, Director-General of Digital Dubai, stressed the growing importance of cashless payments in everyday life and the city’s goal of becoming a global digital hub. The strategy promotes innovation through AI-driven solutions and contactless technology, aiming to simplify digital transactions for both consumers and merchants while reducing payment processing fees.
Fintech is seen as a key player in realizing the Dubai Cashless Strategy, supporting the emirate’s standing as a leader in digital innovation. By encouraging digital payments, the strategy aims to offer a more secure and efficient way for businesses, government entities, and consumers to manage transactions across the city.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
To be part of the GMCI Indices, a coin must be actively traded on at least one of eight major centralized exchanges (CEXs).
3 min
Bitget has introduced the GMCI indices to its futures market, offering traders secure access to a diverse range of assets. The GMCI indices are meticulously curated to provide a reliable snapshot of the market, based on strict inclusion criteria.
To be part of the GMCI Indices, a coin must be actively traded on at least one of eight major centralized exchanges (CEXs) and meet minimum trading volume requirements. Additionally, each coin must be backed by at least one of three custodians, ensuring asset security and integrity. The indices prioritize coins with transparent circulating market capitalizations, with data sourced from CoinMarketCap and CoinGecko, and live pricing provided by Coin Metrics, which also acts as the third-party index calculation agent for GMCI.
The GMCI 30 index stands out by featuring the top 30 coins within the GMCI asset universe, excluding stablecoins, wrapped assets, and staked assets such as USDC, WBTC, and stETH. This index provides traders with exposure to a comprehensive set of the leading digital assets, capturing the broader market’s movements while maintaining diversification and reducing over-concentration in any single asset.
“At Bitget we prioritize the security of our users while delivering world-class innovation. This aligns with Bitget’s broader strategy of accelerating utility and mass adoption of crypto within a safe and secure ecosystem,” said Gracy Chen, CEO at Bitget. “By providing a curated set of assets backed by trusted custodians, we aim to empower traders with informed, diversified options to enhance the ease of managing wealth,” she added.
Rebalancing occurs monthly, on the last Friday of each month, with adjustments made according to the circulating market capitalization of the coins. This process ensures the indices remain up to date with market fluctuations, allowing them to reflect current trends and price movements accurately. While individual token positions are capped at 25% during rebalancing, they can float based on price performance, offering a dynamic representation of the market’s momentum throughout the month.
The GMCI Meme index, caters to the growing interest in meme coins, a segment that has garnered significant attention and trading volume within the crypto community. This index includes the top meme coins traded across selected exchanges, allowing users to hop on emerging memecoin trends securely.
“Our collaboration with Bitget to launch a perpetual contract on the GMCI 30 index is a significant step in expanding the accessibility of our index solutions to a broader market. As a leading crypto exchange in terms of trading volume and innovation, Bitget shares our vision of delivering cutting-edge, reliable products to the trading community. This marks the beginning of further partnerships that will see GMCI indices used as the benchmark of choice for innovative trading products across leading platforms,” said Maarten Botman, CEO at GMCI.
Offering exposure to a range of assets, GMCI indices help traders navigate diverse market segments. GMCI indices provide the robustness and transparency investors are accustomed to on the traditional financial markets while tapping into expertise in crypto much like Bitget. With this, Bitget users can now access GMCI indices including memecoins indices on the platform.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
This partnership aims to utilize Facilio’s advanced Connected CaFM platform to optimize Berkeley FM’s service offerings and boost operational efficiency across the UAE region.
2 min
Facilio has announced a major new deployment with Berkeley Services Group, a well-established integrated facilities management (IFM) company based in Dubai. This partnership aims to utilize Facilio’s advanced Connected CaFM platform to optimize Berkeley FM’s service offerings and boost operational efficiency across the UAE.
Founded in Dubai in 1984, Berkeley Services Group (BSG) has been a leader in the industry, offering a wide range of services such as building maintenance, soft services, smart solutions, landscaping, and security. Known for its strategic collaborations and technology-driven approach, BSG has become a trusted leader in IFM, setting new standards for client-focused and people-centric management solutions.
Speaking about the deployment, Fayaz Mohammad, Head of Facilities Management, Berkeley Services said, “Facilio’s platform-led approach to operations & maintenance aligns perfectly with our needs. Its scalable infrastructure, robust automation and real-time KPI reporting capabilities stand out – it not just improves our operational capabilities but also helps boost growth and profitability across verticals. By leveraging this innovative technology, we can position ourselves at the forefront of technology-driven integrated facilities management, delivering exceptional experiences to our clients across diverse industries.
“Our Connected CaFM solution will enable Berkeley to deploy services swiftly while meeting demands for high-quality service, rapid response times, and zero downtime. It is a solution that is purpose-built to solve for IFM firms such as Berkeley. Being a no-code/low-code adaptable self-serve platform, it allows them to onboard customers and expand usage to cover everything from asset management to audit and compliance management seamlessly. It not only elevates their operational capabilities but also enhances customer satisfaction and retention, drives business expansion across verticals and ensures they continue to stay at the forefront of innovation,” said Prabhu Ramachandran, CEO of Facilio.
With Facilio‘s Connected CaFM platform, Berkeley Services can now streamline their operations through a single, centralized platform, allowing them to manage all facilities and operational tasks efficiently. The platform enables cost optimization by tracking expenses and identifying potential savings, while providing 360-degree visibility into operations, allowing the team to monitor tickets raised and resolved to improve service response times and overall efficiency.
Compliance is assured with automated reporting and health, safety, and environmental (HSE) management, ensuring regulatory standards are consistently met. Additionally, the platform accelerates deployment by templatizing onboarding workflows, leading to a faster return on investment. It also holds vendors accountable by monitoring their adherence to service level agreements (SLAs), ensuring high performance and reliability. The platform’s scalable infrastructure further allows Berkeley Services to easily add new service lines through customizable modules without the need for coding or extensive IT efforts.
This deployment echoes Facilio’s success stories with other prominent FM Service providers such as Musanadah and CIT Group in Saudi Arabia, Quality FM in the UAE, and Q3 Services in the UK.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
These investments span various regions overseen by OPAZ.
2 min
Oman achieved significant growth in investments across its special economic zones, free zones, and industrial cities during the first half of 2024, with a 20% increase compared to the same period in 2023.
A report published early October 2024 by the Public Authority for Special Economic Zones and Free Zones (OPAZ), revealed that total investments reached over RO20.1 billion, an increase of RO3.4 billion from the previous year.
These investments span various regions overseen by OPAZ. The Special Economic Zone at Duqm (SEZAD) saw a notable surge, with a 55% increase in cumulative investment compared to last year. New investments in SEZAD amounted to RO2.1 billion, bringing total investments there to over RO6 billion.
In Oman’s industrial cities, total investments reached RO7.5 billion, while the Salalah Free Zone secured RO4.6 billion by mid-2024. Investments in the Sohar Free Zone stood at RO1.3 billion, and the Al Mazyunah Free Zone surpassed RO139 million. Additionally, Khazaen Economic City reported a cumulative committed investment of RO459.5 million.
The report also noted a rise in new business registrations, with 1,885 registered within OPAZ-supervised areas in the first half of 2024. During this time, OPAZ issued 735 public service licenses, 740 activity licenses, 156 building permits, and 5,466 work and investor licenses, while conducting over 15,000 inspection and supervision visits. A total of 191 environmental permits were also granted.
Employment in these economic zones, free zones, and industrial cities grew to 71,684 by the middle of 2024. The Omanisation rate reached 35%, with industrial cities leading with an Omanisation rate of 38%.
To encourage further strategic investments, OPAZ introduced a project tracking system through Odoo, which streamlines project monitoring and documentation. By mid-2024, there were 160 projects under execution registered in the system. OPAZ also launched an awareness initiative, with 145 companies applying and 20 following up.
Currently, OPAZ oversees 15 established zones, which include two economic zones, three free zones (Sohar, Salalah, and Al Mazyunah), and 10 industrial cities. There are also eight new zones under development, such as the integrated economic zone in Ibri, Dhahirah Governorate; an economic zone in Al Rawda, Buraimi Governorate; a free zone at Muscat International Airport; and five more industrial cities. This brings the total number of operational and developing areas under OPAZ to 23.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
This includes Dell’s IT infrastructure and workload migration solutions, the Dell AI Factory models and frameworks, cybersecurity enhancements, as well as client, edge, and multicloud solutions.
2 min
Dell Technologies and Alinma Bank today signed a Memorandum of Understanding (MoU) to accelerate the Saudi-based bank’s digital transformation initiatives.
The MoU signed during the 24 Fintech Summit in Riyadh by Mohammed Talaat, VP, KSA & Egypt at Dell Technologies and Yaser Alofi, Chief Information Officer (CIO) at Alinma bank marks a significant step forward in the Shariah-compliant bank’s digital transformation strategy.
The agreement outlines a collaborative framework for both parties to jointly develop and deliver innovative data center transformation solutions. This includes Dell’s IT infrastructure and workload migration solutions, the Dell AI Factory models and frameworks, cybersecurity enhancements, as well as client, edge, and multicloud solutions delivered with flexibility through Dell APEX.
Dell APEX is an end-to-end portfolio of as-a-Service and subscription services where customers pay only for the services consumed. It helps customers scale resources based on their needs and simplifies IT management through consistent performance, predictable costs, and on-demand access to Dell’s infrastructure and services.
Alinma Bank, established in 2006, has earned a reputation for its innovative offerings, customer-focused approach, and pioneering efforts in digital banking.
Mohammed Talaat, VP, KSA & Egypt at Dell Technologies said: “The Saudi banking sector is at a pivotal stage of growth spurred by technological advancements and an increased focus on innovation. We are happy to contribute to this evolution and support Alinma Bank in its digital transformation journey. By combining our strengths, we can deliver innovative and scalable solutions that address the evolving needs of the bank while delivering even greater value to their customers.”
Yaser Alofi, Chief Information Officer (CIO) at Alinma Bank said:“We are excited to deepen our relationship with Dell and leverage their expertise in delivering cutting-edge technology solutions. This collaboration aligns perfectly with our long-term growth strategy and our commitment to raising benchmarks and setting new standards for the financial industry.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
The collaboration enables a near-seamless integration, empowering employers on Oracle Fusion Cloud Recruiting to reach millions of qualified candidates.
2 min
Bayt.com announced its collaboration with Oracle to elevate the experience for both employers and job seekers. Bayt.com‘s integration with Oracle enables employers to quickly and easily publish their job openings – created with Oracle Fusion Cloud Recruiting – on the Bayt.com platform to access to a broader pool of talent and help ensure they reach a diverse and highly qualified audience.
Employers using Oracle Recruiting now benefit from a streamlined recruitment process that eliminates the need for repetitive data entry and minimizes the risk of application drop-offs by job seekers. Candidates can use their existing Bayt.com CVs to apply for opportunities directly, without needing to re-enter information or leave the platform, saving valuable time in the application process. With Bayt.com’s reach and Oracle’s robust infrastructure, organizations can efficiently connect with candidates, enhancing the speed and success of their hiring efforts.
Another key feature of this collaboration is the integration of Bayt.com’s Evalufy, an advanced applicant video assessment tool with AI-powered transcription and translation capabilities. This tool is now available to Oracle Recruiting users, enabling employers to assess candidates more effectively, reduce time-to-hire, and help ensure a better match between candidates and job requirements.
Akram Assaf, Co-founder and Chief Technology Officer at Bayt.com, said, “Our collaboration with Oracle underscores our commitment to enhancing the recruitment ecosystem in the Middle East. Leveraging Oracle Recruiting not only amplifies our capacity to connect employers with their ideal candidates, but reaffirms our commitment to stand at the forefront of recruitment innovation. This collaboration ultimately underscores a shared dedication to leveraging technology in fostering more efficient, accessible, and engaging recruitment experiences.”
The collaboration between Bayt.com and Oracle introduces a series of benefits aimed at streamlining the recruitment process for both job seekers and employers. Job seekers can now enjoy a near-seamless application process through Bayt.com, enhancing the efficiency of application completion due to its simplicity and ease of use. This highlights Bayt.com’s commitment to enhancing the job seeker experience and providing tools that empower them to build a lifestyle of their choice. Employers, on the other hand, are poised to benefit from unparalleled access to an extensive database of over 52 million professionals across the Middle East. This access not only expands their talent pools, but it also increases the visibility and diversity of potential candidates.
“Our collaboration with Bayt.com further highlights the commitment of both entities to deliver cutting-edge solutions tailored to meet the dynamic needs of the global workforce. Employers can now benefit from a near-seamless job posting process and automatic status updates, helping ensure a smooth experience for both recruiters and candidates,” said Nagaraj Nadendla, senior vice president of HCM product development at Oracle. “The easy apply application process enriches the job seeker experience, helping them remain engaged and well-informed throughout their application journey.”
Bayt.com’s collaboration with Oracle Recruiting exemplifies a shared vision of leveraging technology to simplify the hiring process, expand access to quality talent, and elevate the overall candidate experience. As this partnership continues to evolve, Bayt.com and Oracle are set to redefine talent acquisition dynamics, setting new benchmarks for efficiency and engagement in the competitive job market.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
VFS Global has remained committed to the Saudi Vision 2030, with 72% of its employee strength being Saudi nationals, and 40% of the employees being women.
2 min
Further highlighting the organization’s commitment to its people and practices, VFS Global has been Great Place To Work® Certified™ in the UAE and KSA (from September 2024 to September 2025). The company has also secured the certification in India, China and Philippines this year, truly highlighting the company’s focus on creating a welcoming and supportive professional environment.
Nirbhik Goel, Chief Human Resources Officer, VFS Global said, “Being certified a Great Place to Work here in the Middle East is a truly special accolade. It acknowledges our tireless efforts towards ensuring that all our employees feel valued and have the support and tools required to excel in their professional endeavors. I would like to thank all our employees who contributed to this survey. Needless to say, we would not be a Great Place to Work without a great workforce driving us to success every day.”
VFS Global employees in the UAE and KSA ranked the company highly on employee value creation, with a strong majority agreeing that the organization makes employees feel safe, welcome, and equipped to succeed. A large majority showed faith in the way the Management runs the company and feel proud to tell people they work at VFS Global.
VFS Global has remained committed to the Saudi Vision 2030, with 72% of its employee strength being Saudi nationals, and 40% of the employees being women.
Dedicated to the career development of Saudi nationals, VFS Global has a slew of initiatives for employee empowerment and professional growth. Their Global Resource Pool program deploys Saudi employees in VFS Global offices abroad, providing international exposure and experience. Their Leaders of Tomorrow program identifies and upskills promising employees for leadership positions.
Dedicated to investing in Saudi talent, the organization also actively participates in the Employment Support Programs in the Kingdom. The Human Resource Development Fund (HRDF)-run Tamheer program saw 25 employees enrolled in trainings across VFS Global offices in Saudi Arabia. The organization also aligned with the Tawteen Program, aimed at enhancing employment opportunities for the Saudi Youth. Between the two initiatives, VFS Global employed 71 and 121 Saudi nationals respectively over the last two years.
Most recently, the organization launched its Alumni program, to connect former VFS Global employees with current staff members, offering networking, mentorship, and career development support.
Great Place To Work is the global authority on workplace culture. Since 1992, they have surveyed more than 100 million employees worldwide and used those deep insights to define what makes a great workplace: trust. Their employee survey platform empowers leaders with the feedback, real-time reporting, and insights they need to make strategic people decisions.
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.
The Fund has successfully secured its initial capital from a group of professional investors, including family offices and high-net-worth individuals.
2 min
Phoenix Venture Partners Ltd. (“PVP”), a leading venture capital firm based in the Abu Dhabi Global Market (ADGM), has announced the first close of its private placement for the Phoenix Venture Partners Innovation Fund CEIC Ltd. (“PVPIF” or the “Fund”). The Fund has successfully secured its initial capital from a diverse array of professional investors, including family offices and high-net-worth individuals.
PVP plans to deploy the newly raised capital to invest in promising early-stage technology startups across the MENA region and G20 economies. The Fund focuses on seven key sectors: (i) Fintech, (ii) Healthtech, (iii) Edtech, (iv) Agrifoodtech, (v) Logtech & Mobility Tech, (vi) Enertech & Sustainability, and (vii) Consumer Tech. Its strategy emphasizes identifying and supporting visionary entrepreneurs who are spearheading transformative innovation in their industries.
“We are thrilled to achieve this significant milestone,” said Mr. Steve Khayat– Founder, Managing Director & CEO at PVP. “The strong interest and commitment from our investors underscore the confidence in our investment strategy and our ability to identify and nurture the next generation of industry leaders.”
Faris Al-Obaid, Co-Founder & Non-Executive Director at Phoenix Venture Partners, added, “This successful capital raise is a testament to our team’s ability to identify and attract high-potential investments. We are excited to leverage this capital to support the next generation of tech founders and drive innovation in the region.”
Dr. Mussaad Al Razouki, Co-Founder and Executive Director at Phoenix Venture Partners, commented, “With the influx of capital, we are well-positioned to capitalize on the growing opportunities in the MENA tech ecosystem. We are committed to investing in startups that have the potential to disrupt their industries and create a positive impact on society.”
The first close marks a pivotal step in PVPIF’s journey, enabling the firm to begin deploying capital and supporting its portfolio companies. The fund will continue to raise additional capital in subsequent closes, with a target of reaching $50 million by March 31st, 2026.
The founding partners bolster a 60-year collective experience in investing and investment management, and a deep understanding of the venture capital landscape. The firm is committed to creating long-term value for its investors and portfolio companies through strategic guidance, operational support, and access to a robust network of industry experts.
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.
The bourse launched its financial literacy program “The Bell” in collaboration with the Union of Investment Companies, The Kuwait Financial Center (Markaz), the CFA Society, Kuwait University and the Kuwait Credit Information Network (CINET)
8 min
For the fourth year in a row, Boursa Kuwait joined more than 100 stock exchanges globally to highlight the importance of financial literacy as part of World Investor Week (WIW) 2024. This week-long initiative, spearheaded by the International Organization of Securities Commissions (IOSCO) and the World Federation of Exchanges (WFE), starts on Monday, October 7th, and runs through the 13th.
The campaign’s focus is on sharing crucial messages about investor education, protection, and financial literacy, while also creating learning opportunities for investors. Beyond that, it aims to bolster cooperation among WFE and IOSCO member countries, spotlighting emerging issues that could reshape the landscape for investors everywhere.
“As a member of the World Federation of Exchanges (WFE) and an affiliate member of the International Organizations of Securities Commissions (IOSCO), Boursa Kuwait is pleased to join stock exchanges from around the world in the eighth edition of World Investor Week, marking the fourth year in a row for the Kuwaiti stock exchange. This participation stems from our commitment to promoting financial literacy in the Kuwaiti capital market and expanding the knowledge base of its participants as we firmly believe that investing in financial awareness contributes to the development of capital markets and enhances the ability of investors to make informed decisions, which is in line with Boursa Kuwait’s vision to strengthen its position as a reliable and sustainable investment destination,” said Boursa Kuwait’s Chief Executive Officer Mr. Mohammad Saud Al-Osaimi.
The principal themes for this year’s World Investor Week include Technology & Digital Finance, Crypto Assets, and Sustainable Finance, which will be complemented with discussions and workshops on Fraud and Scam Prevention, Investor Resilience, and the Basics of Investing. IOSCO’s Committee 8 agreed upon these themes, which conducts its work on retail investor education and financial literacy and includes 38 members from established and emerging markets. Participating members can choose any week in October and November to organize initiatives related to World Investor Week.
Mr. Jean-Paul Servais, Chair of IOSCO’s Board, and Chairman of the Financial Services and Markets Authority, Belgium, said: “Last year’s World Investor Week saw the involvement of 118 jurisdictions and reached almost 730 million individuals. We have to keep the ball rolling as with technological advancements and increased use of AI, new challenges arise. We also see how fractional trading, gamification and copy-trading are trending. I am confident that WIW2024 will build on the success of previous years to drive greater investor awareness of these issues and look forward to contribute to its success.”
IOSCO believes the need for investor education and financial literacy has never been greater than today. As the financial marketplace continues to evolve and innovate, investment products are becoming increasingly complex and financial services increasingly diverse. A greater understanding of key financial concepts is required on the part of retail investors to understand and evaluate the choices available to them and to avoid financial fraud. As part of World Investor Week, IOSCO is holding webinars on technology and digital finance and navigating the new economy on October 7 and 8. These webinars are available on the World Investor Week website with free registration for everyone.
“The Bell” initiative to raise financial literacy
Boursa Kuwait launched ‘The Bell’ initiative in collaboration with the Union of Investment Companies, The Kuwait Financial Center (Markaz), the CFA Society, Kuwait University, and the Kuwait Credit Information Network (CINET). This initiative reflects Boursa Kuwait’s longstanding commitment to educational programs that empower individuals and strengthen the community, ultimately contributing to Kuwait’s economic development. By fostering financial awareness and literacy, Boursa Kuwait aims to solidify its position as a leading regional and international exchange.
The initiative’s title, “The Bell,” is symbolic on multiple levels. It evokes Boursa Kuwait’s crucial role in signaling market changes and investment opportunities to investors, much like a bell announces important events. Additionally, it alludes to the bell ringing that signifies the start of trading sessions, emphasizing the importance of being prepared and knowledgeable when making investment decisions. Throughout the month, the initiative will delve into a wide array of investment trends from the growing influence of artificial intelligence to the rise of digital finance.
Al-Osaimi added: “Today, we launch “The Bell” initiative to promote financial literacy, which contains training programs, workshops, seminars, and panel discussions, organized in collaboration with experts in the capital markets industry and the financial sector. I would like to thank our partners in this initiative and look forward to more fruitful collaborations in the interest of the Kuwaiti capital market in the future.”
The initiative is packed with workshops, seminars and educational events, including a seminar for university students organized in collaboration with CINET focusing on financial management and a seminar by Dr. Fahad Waleed Al-Mudhaf, Associate Professor in the Department of Finance at the College of Business Administration at Kuwait University who will explore the intersection of technology and digital finance. Additionally, Boursa Kuwait will organize a virtual workshop with UIC which delves into the importance of sustainable development and a workshop with Markaz, which aims to provide valuable insights into the complexities of mergers and acquisitions and examine bonds and sukuk as an alternative way of financing.
In addition to these engaging events, Boursa Kuwait is also planning to revamp its Boursa Academy online financial education portal, which aims to enhance capital market knowledge for both novice and seasoned investors. Boursa Kuwait’s partners in this initiative will also be enriching Boursa Academy’s content with a whitepaper from Markaz on sustainable finance in the GCC, a podcast on utilizing artificial intelligence finance and investments from the CFA Society, and educational videos that shed light on the basics of investing from UIC.
Union of Investment Companies Chairman Mr. Abdullah Hamad Al-Terkait spoke about UIC’s involvement in “The Bell”, saying “The Union of Investment Companies (UIC) is proud to collaborate with Boursa Kuwait in this initiative, which coincides with World Investor Week. This partnership reflects the commitment of both organizations to educate Kuwaiti society, from students to financial institutions, about the importance of financial knowledge, responsible investing, and adhering to best practices within the financial market. I would like to thank Boursa Kuwait for its efforts in putting this initiative together and look forward to more collaborations in the future.”
The Union of Investment Companies was established to contribute to the development of Kuwait’s investment market. By advocating for revised economic legislation and proposing solutions tailored to the diverse needs of Kuwaiti investment companies, the Union plays a key role in driving economic growth and development in Kuwait. Its efforts are focused on fostering a thriving investment environment and creating innovative financial tools that will position Kuwait as a leading financial center in the region.
Kuwait Financial Centre “Markaz” CEO Mr. Ali Khalil also hailed Boursa Kuwait for this initiative, saying: “At Markaz, we firmly believe that financial literacy is fundamental to empowering individuals and communities, paving the way for a more sustainable society. This belief underpins our commitment to corporate social responsibility, where we prioritize sustainable economic development and good governance. By promoting financial knowledge and responsible investment practices, we aim to equip investors with the tools to make responsible investment decisions based on fundamental factors that enable the right companies to attract capital, grow and prosper, contributing to the country’s economic growth. I applaud Boursa Kuwait for their commendable initiatives and efforts aimed at building a more financially aware and empowered Kuwait.”
Established in 1974, Kuwait Financial Centre ‘Markaz’ is one of Kuwait’s leading asset management and investment banking institutions with a presence in 13 countries and a total of KD 1.38 billion in assets under management.
Additionally, CFA Society President Mrs. Aminah Abotalaf spoke about the Society’s collaboration with Boursa Kuwait, saying, “The CFA Society is proud to partner with Boursa Kuwait in all initiatives that seek to raise financial literacy levels and awareness in Kuwait. Both entities have a shared goal of empowering individuals, from students to seasoned professionals, to invest with confidence through effective and innovative financial literacy programs. Together, we are committed to building a more financially aware future for Kuwait.”
The CFA Society Kuwait is an association of local investment professionals, consisting of portfolio managers, security analysts, investment advisors and other financial practitioners, that has served CFA charter holders and CFA Program candidates locally since 2008.
Boursa Kuwait entered a Memorandum of Understanding (MoU) with the CFA Society in October 2018, aiming to educate the public on the fundamentals of investing through the Boursa Academy Online platform and collaborating to organize training programs and seminars.
“Technology has removed geographical barriers, allowing everyone to access financial services and expanding their scope, in addition to promoting financial inclusion and reducing the digital divide. Digital finance offers tremendous opportunities in a rapidly changing world, but that requires keeping pace with technological and regulatory developments. I extend my sincere thanks to Boursa Kuwait for their efforts in organizing this initiative, and I look forward to more fruitful collaborations,” said Kuwait University Associate Professor of Finance Dr. Fahad Waleed Al-Mudhaf.
Commenting on CINET’s participation, company CEO Mrs. Mai Bader AlOwaish stated, “Credit information and credit score services are among the most important indicators for improving and developing financial systems worldwide. They contribute to creating efficient systems with added value through the collection, request, and analysis of credit information, which in turn enhances the efficiency of financing operations and the granting of credit facilities in all forms. Therefore, we must raise awareness in the community and provide society with the necessary knowledge and skills to be fully aware of their credit rights and obligations. I extend my sincere thanks to Boursa Kuwait for this initiative and look forward to further cooperation in the future.”
The Kuwait Credit Information Network (CINET) is the sole and leading provider of credit information and credit scores in the State of Kuwait, operating under the supervision of the Central Bank of Kuwait. The company aims to assist the financial and banking sectors in making informed and sound decisions, helping the entities it serves facilitate financing processes, increase the collection rates of customer loans, and reduce non-performing loans. Additionally, CINET contributes to facilitating individual transactions and reducing credit and financing risks.
“The Bell” initiative forms part of Boursa Kuwait’s efforts to develop and educate market participants as well as create a lasting meaningful impact on the communities where it operates. Part of the company’s Corporate Sustainability (CS) strategy, they are in line with Goal 4 – Quality Education – and Goal 17 – Partnership for the Goals – of the UN’s Sustainable Development Goals (SDGs).
Boursa Kuwait’s support of World Investor Week comes from the company’s Corporate Sustainability (CS) strategy, which stipulates ensuring initiatives apply and fall in line with the company’s corporate social responsibility (CSR), industry best practice standards and investor expectations, creating strong and sustainable partnerships that ultimately achieve success and allow it to leverage the capabilities and strengths of other companies or organizations that have experience in different fields, and integrating sustainability efforts with the company culture, in order to achieve longevity and an ongoing impact that is carried on and instilled in the day-to-day operations of the stock exchange.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
This is aligning with QIB’s ongoing commitment to innovation.
2 min
Qatar Islamic Bank (QIB) has unveiled the Auto Marketplace on its QIB Mobile App—a cutting-edge platform that directly connects car dealers with QIB customers. This innovative marketplace provides a seamless, end-to-end car purchasing experience, allowing users to browse vehicles, book test drives, and secure auto financing, all within the award-winning QIB Mobile App.
Recognizing the growing demand for enhanced customer experiences in today’s digital age, QIB’s new Auto Marketplace is a significant leap in convenience. From browsing vehicle details to securing real-time financing, QIB customers can now enjoy a smooth and simplified car-buying journey.
The Auto Marketplace currently features a wide range of well-known car brands, including Mercedes, GMC, Cadillac, Chery, Ford, Kia, BYD, JAC, Lincoln, and Subaru, with additional dealers and brands to be added in the coming weeks. This broad selection ensures that customers have access to diverse options that meet various preferences and budgets, all in one location.
The introduction of the innovative Auto Marketplace is aligned with QIB’s ongoing commitment to innovation, providing customers with an efficient and accessible way to purchase cars and get instant financing. This platform builds on the trusted relationships QIB has fostered with several car dealers and leverages its existing digital ecosystem to offer a complete automotive shopping experience.
Mr. D. Anand, QIB’s General Manager – Personal Banking Group, commented: “The Auto Marketplace launch highlights QIB’s focus on adapting to our customers’ changing needs. We see a rising demand for quicker and more convenient digital solutions in the automotive industry. We have partnered with a specialized fintech company and are working alongside our partner car dealers to ensure that we will make the experience of buying a car more enjoyable and efficient for our customers. By providing a comprehensive solution, we are empowering our customers to make the right decision for them and complete their car purchases effortlessly.”
QIB has consistently led the market in digital innovation. The Bank has invested heavily in enhancing its digital channels, resulting in the QIB Mobile App becoming Qatar’s top-rated banking application. The app boasts over 280 features, more than 4 million monthly logins, and is responsible for 95% of the bank’s retail financial transactions.
Available on “App Store”, “Google Play”, and “Huawei AppGallery”, customers can download the QIB Mobile App and easily self-register using their Debit Card details. The App offers customers the ability to have full control of their accounts, cards, and transactions, and to fulfill all their banking requirements remotely. New customers can open their first banking account with QIB instantly. Existing QIB customers can open additional accounts, instantly get personal financing or a Credit Card, all via the QIB Mobile App.
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