Wholesale Investor and CapitalHQ Bring Investment Leaders to Marina Bay Sands for Venture and Capital 2024

Alpen Capital‘s latest report on the GCC retail sector forecasts a complex annual growth rate (CAGR) of 4.6% for the industry from 2023 to 2028, with the UAE and Saudi Arabia driving growth at CAGRs of 5.4% and 5.1%, respectively.

The report by the UAE-based investment banking advisory firm provides a detailed analysis of the retail industry’s trends, growth drivers, and challenges. It also features forecasts and profiles of key retail companies operating in the region.

“The long-term prospects of the GCC retail industry continue to remain positive owing to economic growth, favorable demographics, relaxation of visa rules and liberalization policies. Furthermore, the ambitious agendas adopted by the GCC governments to diversity their economies are leading to significant advancements in the infrastructure and tourism sectors. This is expected to further enhance the value proposition of the region. As the industry continues to mature, several emerging trends such as Buy Now Pay Later, and evolving consumer preferences are reshaping the market dynamics. Amid the growing prominence of e-commerce, retailers are adopting dynamic business strategies to better meet consumer demands and widen market presence”, says Sameena Ahmad, Managing Director, Alpen Capital (ME) Limited.

“GCC retailers have increased their focus towards adopting and integrating technology to streamline operations and provide personalized offerings. Regardless of margin pressures, majority of them are investing in advanced digital solutions and creating omni-channel strategies to improve customer experience. As the regional retail landscape continues to evolve, larger e-commerce players are likely to acquire niche operators offering customized products and services while traditional players will continue to collaborate with digital platforms to reach out to a wider audience. As such, consolidation in the retail industry is expected to intensify as the pressure on companies to drive earnings and gain market share continues to mount in the face of rising competition”, says Hameed Noor Mohamed, Managing Director, Alpen Capital (ME) Limited.

According to Alpen Capital, retail sales in the GCC are projected to grow at a CAGR of 4.6 percent to reach US$ 386.9 billion in 2028 from US$ 309.6 billion in 2023. This growth is expected to be supported by an increase in population, rise in per capita income and boost in tourism activities. E-commerce is expected to continue to play a critical role as several new players are gaining prominence, and there remains a scope for niche platforms to adopt innovative business models to make the GCC retail landscape more competitive.

Non-food retail sales are anticipated to grow at a CAGR of 4.3 percent, while food retail sales are expected to rise at a pace of 5.0 percent CAGR between 2023 and 2028 in the GCC.

Retail sales in the GCC nations are projected to grow in the range of 1.0 percent and 5.4 percent CAGR between 2023 and 2028. Saudi Arabia and the UAE are projected to grow at a CAGR of 5.1 percent and 5.4 percent to reach US$ 161.4 billion and US$ 139.1 billion, respectively. Growth will be driven by its diverse and expanding population base, and vibrant infrastructure that makes them top international shopping destinations. These two nations are expected to cumulatively account for 77.7percent of the total GCC retail sales by 2028.

Retail sales in Kuwait and Bahrain are projected to witness a CAGR of 3.1percent each between 2023 to 2028, whereas Qatar and Oman are expected to grow at a CAGR of 2.2 percent and 1.0 percent, respectively.

Duty free sales at the airports in the GCC (Dubai, Abu Dhabi, Qatar and Bahrain) are expected to reach US$ 4.7 billion in 2028, growing at a CAGR of 9.3 percent between 2023 and 2028. This growth can be attributed to the anticipated rise in passenger traffic, largely driven by government initiatives to promote tourism.

At 80 percent completion of projected additions, 3.9 million sq. m. of retail space is likely to come up in the GCC between 2023 and 2028, taking the total organized retail GLA to 24.3 million sq. m. This is a modest growth scenario, wherein organized retail GLA is anticipated to grow at a CAGR of 2.9 percent during the period.

As per the report, rising population, with a high concentration of expatriates and HNWIs, remains one of the primary factors for driving growth of the GCC retail industry. Anticipated pick up in the economic activity and improvement in per capita income is expected to further advance the appetite for global brands and luxury items. Amid expanding infrastructure developments, the GCC economies are establishing themselves as a hub for global business, entertainment, and sporting events. At the same time, religious and cultural tourism has been a key driver of growth within the GCC, attracting a large portion of tourist arrivals, especially during pilgrimages and other festivals.

Despite the diversification efforts of the GCC nations coupled with strong growth momentum in the non-oil sector, vulnerability in hydrocarbon revenues due to oil production cuts, coupled with rising geopolitical concerns and global macro-economic headwinds might put the industry under pressure. The region is also sensitive to supply-side shocks, which could lead to inflationary pressures on the economies and affect spending power of the consumers. Furthermore, intensifying competition is causing operators to adopt aggressive promotional strategies that are impacting profit margins.

GCC retailers continue to adopt omni-channel business models to remain competitive and meet the rising demand of consumers for seamless and integrated shopping experiences. Operators are utilizing technological advancements and data analytics to streamline procedures, reduce costs, increase revenue and enhance customer experience. Furthermore, trends like Buy Now Pay later, enabled by Fintech providers, are experiencing significant growth as consumers become more price conscious.

Going forward, the need for businesses to remain competitive amid proliferation of e-commerce and online channels is likely to enhance the retail M&A landscape in the GCC.

The Information & eGovernment Authority (iGA) has published its Foreign Trade report for August 2024, detailing figures related to Trade Balance, Imports, National Origin Exports, and Re-exports.

The report highlights a 7% decline in the value of non-oil imports, which totaled BD494 million in August 2024, down from BD534 million in the same month of 2023. The top 10 importing countries accounted for 66% of the total import value.

China ranked as Bahrain’s top import partner, contributing BD66 million (13%) to total imports, followed by Australia with BD52 million (11%) and the United States with BD39 million (8%).

Among the imported products, Non-Agglomerated Iron Ores and Concentrates led with a value of BD59 million (11.9%), followed by Other Aluminum Oxide at BD57 million (11.5%), and Parts for Aircraft Engines at BD21 million (4%).

Meanwhile, the value of non-oil exports (National Origin) dropped by 8%, reaching BD298 million in August 2024, compared to BD324 million in August 2023. The top 10 export destinations represented 72% of the total export value.

Saudi Arabia was Bahrain’s largest non-oil export destination, receiving BD66 million (22%), followed by the United States with BD57 million (19%) and the United Arab Emirates with BD27 million (9%).

Unwrought Aluminum Alloys were the top exported product in August 2024, totaling BD73 million (24%), followed by Unwrought Aluminum Not Alloyed at BD36 million (12%) and Agglomerated Iron Ores and Concentrates at BD31 million (10%).

Re-exports of non-oil products fell by 14%, amounting to BD60 million in August 2024, down from BD70 million in August 2023. The top 10 re-export destinations accounted for 87% of the total re-export value.

The United Arab Emirates ranked first for re-exports with BD31 million (52%), followed by Saudi Arabia with BD11 million (18%) and Luxembourg with BD3 million (5%).

Smartphones were the top re-exported product from Bahrain, with a value of BD12 million (20%), followed by Gold Ingots at BD4 million (7%) and Four-Wheel Drives at BD3 million (5%).

Regarding the Trade Balance, which reflects the difference between exports and imports, Bahrain recorded a deficit of BD136 million in August 2024, slightly improving from a deficit of BD139 million in August 2023.

Wizz Air introduced the Apple Pay and Google Pay on its mobile app, offering passengers even greater convenience in booking and managing their travel. This new feature is now available on the Wizz Air app for both iOS and Android devices.

By integrating these widely-used digital payment options, Wizz Air continues to enhance the customer experience, providing more flexible ways to pay. Travellers can now enjoy a fast and secure checkout process for both tickets and additional services. This move follows the recent acceptance of Revolut cards onboard, reflecting Wizz Air’s ongoing efforts to expand its payment options. The introduction of Apple Pay and Google Pay highlights the airline’s commitment to meeting the evolving needs of its customers, making travel planning smoother and more efficient.

The new feature allows customers to make quick and seamless payments up to 10 days prior to the departure, especially useful to the last-minute customers who need to complete the booking quickly to catch a good deal. Over 30% of travelers prefer to purchase additional services and products at a later stage in the booking process, and nearly half of the customers are doing so via the app. With the introduction of these new payment options, adding additional services to a booking has become easier than ever.

Remus Moraru, Head of e-Commerce at Wizz Air, said: “We are excited to enhance our payment options with the introduction of Apple Pay and Google Pay. This addition not only simplifies the booking process for our passengers, but also underscores our commitment to providing innovative and convenient solutions that meet the needs of modern travelers. It is particularly useful for last-minute customers who appreciate a quick booking process or those willing to add services to their booking just a few days before the flight.”

KERKDRIEL, the Netherlands—For much of the spring and summer, Jeroen van Diesen got paid for using electricity.

Sometimes his neighbours came over to power up too, generating even more cash.

Van Diesen’s situation reflects the strange, new dynamics of electricity that could soon become the norm in many parts of the world: A big increase in wind and solar power has pushed wholesale prices to zero or below for many hours of the year, spurring a sea change in the way people use power—based on whether the sun is shining or the wind is blowing.

Most people pay a fixed price for each kilowatt-hour of electricity they consume throughout the day. The price is set by their power company and only changes at infrequent intervals—once a week, a month or even only once a year.

Van Diesen, a software salesman, recently signed up to receive electricity from two providers that charge him the hourly price on the Dutch wholesale power market, rather than a fixed price that resets monthly or annually. When the price of electricity falls low enough, smart meters in his house begin charging his two electric cars.

Wholesale prices swing wildly each hour of the day, and even more so as a larger share of electricity flows from wind and solar installations. Because the generation costs of wind or solar farms are negligible, market prices will be near zero when there is enough renewable power to cover most of a region’s electricity demand.

Electricity market dynamics get weirder when renewable-energy producers don’t have an incentive to stop feeding power into the grid, usually because of government subsidies. Then grids can be flooded with excess power, pushing prices into negative territory.

Van Diesen said he’s made 30 euros, equivalent to around $34, over the past five months charging his car, enough to cover the service fee from his power supplier, a Norwegian company called Tibber.

“I’m charging the car for free,” said van Diesen, who is part of a group of clean-energy enthusiasts in the Netherlands who call themselves green nerds. “To me it’s also like a hobby and a game—how far can I go?”

Doing laundry in the evening? The electricity could be free a few hours later when demand dies down and the wind picks up. Likewise, in regions with lots of solar power, charging an electric vehicle in the morning is usually far more expensive than powering up under the midday sun—or whenever the price is right.

In the U.S., most states don’t currently allow such real-time pricing, but many think that will change. Already, in some of the world’s biggest economies from Western Europe to California, the occurrence of zero and negative wholesale power prices is growing fast.

Negative prices

Wholesale prices across continental Europe have fallen to zero or below in 6% of all hours this year, up sharply from 2.2% in 2023 and just 0.3% in 2022, according to data collected by Entso-E, the group of European transmission system operators. In markets with lots of renewable capacity, this year’s figure was higher: 8% in the Netherlands, 11% in Finland and 12% in Spain. Analysts expect those numbers will grow as more solar panels and wind turbines are installed.

The changes sweeping Europe’s electricity markets, which were accelerated by the energy crisis brought on by the war in Ukraine, show what could happen in the U.S. in a few years when renewable capacity reaches a similar scale. In 2023, 44% of EU electricity was generated by renewables, compared with 21% in the U.S.

In some U.S. markets—sunny California, the wind-swept Great Plains, and Texas—zero and negative prices are already common. The wholesale price in Southern California was negative nearly 20% of all hours this year because of the region’s boom in solar-panel installations. That compares to around 5% last year, according to data collected by the U.S. Energy Information Administration.

U.S. regulators have been cautious about allowing households and companies to sign up for electricity plans that charge them wholesale prices, fearing consumers could be hit with big bills if prices jump. Texas consumers who signed such contracts were walloped with huge bills in 2021 when a rare winter storm sent prices soaring.

States’ reluctance, however, may now be waning as policymakers increasingly see real-time pricing as a way to lower peak demand, reduce the need for costly infrastructure and integrate more renewables into the grid.

California regulators this year ordered the state’s utilities to expand dynamic price pilot programs that have only been available for a select group of customers.

Your overall power bill still won’t be zero in a clean-energy future. Generation costs comprised around 60% of customer bills on average in the U.S. in 2023. Transmission and distribution costs account for most of the rest—and are expected to grow sharply in the coming decade to reinforce the grid for electric heating, electric transport and data centers.

Negative prices could also be reined in over the next few years as governments from Europe to California pare back renewable-energy subsidies. Governments are particularly focused on trimming subsidies for solar power, which is driving negative prices in a number of markets.

Green nerds

In Europe, energy-hungry manufacturers are shifting their operating strategies to maximise energy consumption when prices are close to zero or negative, while throttling back when prices are high.

Linde, a U.K.-based engineering company, is building a new generation of industrial gas plants that can be quickly ramped up and down depending on the wholesale price of power.

When solar and wind power drive prices down, Linde’s plants fire up and send the output to large tanks. When electricity prices shoot up again, the plants can ramp back down and supply customers out of the gases stored in the tanks.

“The tank functions like a virtual battery,” said Klaus Ohlig, a research and development executive at Linde Engineering.

Trimet, an aluminium producer that is one of Germany’s single-largest power consumers, is overhauling its smelters to vary their power consumption depending on the availability of renewable energy on the grid.

A new European Union law requires dynamic-price power contracts be made available to consumers across the 27-nation bloc. Tibber, a power retailer based in Norway that charges its customers the wholesale hourly price, has signed up more than one million households across the Nordic countries, Germany and the Netherlands.

Edgeir Aksnes, Tibber’s co-founder and chief executive, says he doesn’t expect customers to constantly track the hourly price before deciding when to charge their car or run appliances.

“We can automate all of this for you. You don’t have to think about it,” he said.

Some enthusiasts, however, like to get into the weeds.

Wouter van Embden, a 49-year-old Dutch entrepreneur and one of the country’s so-called green nerds, switched to Tibber earlier this year. On a recent summer Sunday, the battery in his home began charging as solar power flooded the Dutch grid and the wholesale power price fell to zero. He also charged his two electric cars and programmed his heat pump to make the water in the house tank extra hot.

Toward the evening, as prices rose with the drop-off in solar, van Embden’s battery—which he and his son built at home—would power his home as well as feed into the Dutch grid.

“I have to be honest, when I started building the battery I had so many outages. There was a lot of testing to do,” he said. “But now it’s working pretty stable.”

South Korea is taking a page from Japan to boost its stock market. There are certainly some low-hanging fruits to pick, but the country’s large family-controlled corporate empires, known as chaebols, could be an obstacle to more meaningful structural change.

The country’s stock exchange is set to unveil a stock index that will take into account factors such as profitability and shareholder returns. That is modeled after a similar move taken in 2014 by Japan, which uses its new index to essentially name and shame companies that failed to make the grade.

The new index is just a part of Korea’s “corporate value-up” program announced in February, aiming to boost the valuations of its market with shareholder-friendly policies. The government also proposed making changes to the tax code to encourage companies to pay more dividends. More broadly, South Korea hopes to copy the success of Japan’s drive to improve corporate governance and returns to investors.

Buybacks and dividends in Japan have risen, and shareholders have grown more vocal. Companies also are unloading their nonstrategic shareholdings in other companies, slimming down their balance sheets.

As a result, Japan has been one of the best-performing markets in the world in recent years. The Topix index hit a record high in July, nearly 35 years after its famous bubble burst.

On the other hand, South Korea’s stock market has long suffered from a so-called Korea discount, as it trades more cheaply than other emerging markets. Its main benchmark, Kospi Composite index, has been valued at an average 12 times forward earnings in the past decade, compared with around 15 times for Japan’s Topix and Taiwan’s Taiex each.

Japan’s index has gained 40% since the end of 2022, while Taiwan’s has surged 57%. Korea’s, by contrast, has gone up only 16% over the same period.

Similar to their counterparts in Japan, Korean companies haven’t historically been willing to return much capital to shareholders. The dividend yield on the Kospi is below 2%, which is lower than many markets. Buybacks are paltry and, more important, many Korean companies don’t cancel the shares they have bought back, instead keeping them as treasury shares, using that as a tool for major shareholders to keep control of the company.

On that front, there seems to be some progress. Treasury share cancellation, excluding Samsung Electronics, so far this year has already more than doubled the full-year level of 2023, according to Goldman Sachs. New regulations restricting how companies can use their treasury shares is probably one reason. Financial companies, in particular, have been eager to buy back and cancel their shares.

The elephant in the room, however, is the power of chaebols, which dominate Korea’s economy and stock market. Companies in the Samsung group, for example, make up more than 20% of the Kospi index. Besides the electronics brand, this includes companies in areas as disparate as financial services and shipbuilding. The interests of the families who control these vast corporate empires don’t usually align with those of the minority shareholders.

Instead, they have long used convoluted corporate structures, including extensive cross-shareholdings, to maintain their grip on the conglomerates. Given the chaebols’ strong economic and political influence in the country, they won’t be so easily pressured as Japanese companies have been to unwind these arrangements.

High inheritance taxes are another reason the families might not necessarily want high share prices for their companies. The government has proposed reducing the tax, but it might not be enough.

Korea’ stock market, which houses some of the world’s best-known brands, including Samsung and Hyundai Motor, has long been a laggard. The government’s new push might yield some successes, but its biggest companies could remain the toughest nuts to crack.

William P. Lauder might be a familiar name. His grandmother, Estée Lauder, founded her namesake brand in 1946 and grew it into one of the largest beauty companies today. Currently, the Estée Lauder Cos. have more than 45,000 employees worldwide and own over 20 brands, including Clinique, Tom Ford Beauty, La Mer, and Jo Malone.

Lauder, 64, is now the company’s executive chairman and chairman of the board of directors. He got his start in 1986 as the regional marketing director of Clinique U.S.A. in the New York metro area, helped launch the natural ingredients brand Origins, and eventually rose all the way to serve a stint as CEO of Estée Lauder in the late aughts. (It was recently announced his successor, longtime CEO Fabrizio Freda , will retire next summer amid slumping sales.)

In addition to his current position, Lauder teaches a class that he designed, “Decision-Making in the Leadership Chair,” at the Wharton School of the University of Pennsylvania for second-year MBA students.

Penta recently spoke to Lauder about his most memorable career moments, consumer preferences in the beauty industry, and his thoughts on leadership.

Penta : What is your role at Estée Lauder?

William P. Lauder: We have two great assets: brands and people, and my primary focus is to build great brands and to engage with our people. I travel and visit a lot of our markets and see how we can grow in that market. We have a presence in London, Paris, Korea, and many other international destinations. I host a town hall for Estée Lauder Cos. employees in many of our markets and talk to them about what makes us special and what our values are.

I also visit our factories and research and development facilities to do the same thing.

Can you share a career highlight since you joined 38 years ago?

I was one of the people who created and launched the Origins brand in 1990. The idea was to create a line that was backed by science but made with natural ingredients. We had a product called Peace of Mind to put on your temples and wrists to help relieve stress. We let people sample it in stores, and they loved it so much that they immediately came back to buy it. From there, the brand exploded, and we opened Origins stores. This was innovative at the time because single-brand stores didn’t exist.

Since I’ve moved into corporate management, my highlight is to be able to travel and show the Estée Lauder Cos. flag, as I like to call it, to our employees.

Have are consumer preferences with respect to luxury fragrances and beauty products changing?

post-Covid, there has been an explosion in interest in luxury fragrances, which is reflected in our brands like Jo Malone London, Le Labo, Editions de Parfums Frédéric Malle, Tom Ford, and Kilian Paris.

Also, we have new, much younger consumers in their late teens to early 20s who are very into makeup and buy our brands like Too Faced. They are getting into skin care by buying products from our brands, including Clinique and the Ordinary. Teenage boys are very interested in fragrances and buy Kilian Paris and Tom Ford. Our hope is that this younger generation continues their loyalty to us, especially as they get older and have more disposable income.

You teach a leadership class at Wharton. In your opinion, what are the attributes of a successful leader?

First and foremost, the most effective leaders must be effective communicators. I believe in short, quick, and concise comments and statements that you repeat, like mantras. These mantras should be able to be passed down to the people they lead.

Also, you have to be a great teacher to be a great leader. You need to make time for an in-depth conversation with the people you lead to get your message across.

And it’s important to have big ears and a little mouth. Listen more and talk less.

Breast cancer research is a priority for Estée Lauder. Can you tell us more about this? 

The Breast Cancer Research Foundation (BCRF) is a nonprofit that my mother, Evelyn, started more than 30 years ago. We, as a family, chose breast cancer because it’s the most common cancer that women are diagnosed with. One in eight women in the U.S. will be diagnosed with breast cancer, and 80% of our employees are women, so the statistic resonates.

The Estée Lauder Cos. Breast Cancer Campaign, our initiative that funds BCRF, is key to our company culture and a cause that brings us together meaningfully. In October, for Breast Cancer Awareness Month, we launch products across some of our brands, and proceeds from sales go toward the foundation. The campaign and the Estée Lauder Cos. Charitable Foundation have raised more than US$131 million to date for BCRF.

This interview has been edited for length and clarity.

Ultra-rich families have often run their wealth from a single-family office located where their business exists, or their money was made, and where most members of their family live. But the dynamics for many of these families has radically changed as their businesses, homes, and children spread across the world, according to a report from Citi Private Bank.

Dealing with multiple jurisdictions creates possibilities but also complexities and raises a question for families of where the bulk of their assets should reside, as the bank details in the report, titled Asset Location and Global Mobility. Citi, through its global family office group, works with 1,800 family offices with an average net worth of US$2 billion, says Hannes Hofmann, head of the group.

“A lot more families are now saying, ‘how do you professionalize the decision where these assets are sitting?’” Hofmann says.

Citi’s family office clients are very global. In a survey published last week, 71% of the bank’s clients reported that they were international in some way. Of that group, 53% said they have assets in multiple countries; 44% cited having family members in several countries; and 19% said they have family who are considering a move to another country or changing their citizenship.

Potential changes to tax regulations affecting the wealthy resulting from elections in the U.K. and France in Europe, and several countries in Latin America, could spark further globalisation of the world’s wealthiest families, the survey said.

In selecting a location for a family office, Citi recommends considering four criteria: the stability of the country’s financial, economic, and political systems; its financial and legal infrastructure; access to talent and cost considerations; and convenience, “including where family members live, work, and play,” the report said.

“We’re telling everyone: As you think about your asset strategy, you want safety that there’s a rule of law and there’s also a financial system that will protect your assets if things go wrong,” Hofmann says. “We might assume this is something that you get everywhere in the world, but the truth is you don’t.”

Strong financial and legal infrastructure also ensures families can find informed advisors and that regulations are secure, supporting, for instance, the movement of assets across jurisdictions.

The purpose of Citi’s report is to show how the four criteria are interlinked, Hofmann says. It may make sense to place a family office in a major wealth centre such as the U.S., Switzerland, or Singapore, but assets can also be kept in jurisdictions such as Jersey in the Channel Islands, or Luxembourg, Monaco, and Dubai.

The report details key factors in each of these places. Monaco, for instance, is less than a square mile in size but “has for centuries attracted the wealthiest families in the world given its favorable tax system, robust, if limited economy, safety, advanced medical facilities, and agreeable Mediterranean climate,” Citi said.

The Bahamas, meanwhile, is a politically and economically stable country just off of Florida’s east coast, making it convenient to the U.S., Canada, and Central and South America.

The U.S., meanwhile, accounts for 32% of global liquid investable wealth, and attracts ultra wealthy individuals with its “almost unrivalled breadth of education, lifestyle, business, innovation, and investing opportunities.”

“People need to think about these places and where they want to have their assets, where they want to base their residency, and then of course, what potentially their exit strategies and contingency plans are,” Hofmann says. The latter is important for a world facing rising instability and conflict.

For those who don’t have a plan in place yet, the report offers several locations where golden visas and residency programs offer a path to a backup location, such as Spain, Malta, St. Kitts and Nevis, and New Zealand. Most of these are countries where the wealthy already have connections through education or business interests, the report said.

Some of these jurisdictions don’t have tax regimes or their tax regulations don’t apply for short stays. As a result, people are choosing to become “tax nomads”—dividing their time between countries so they don’t spend long enough in one place to be taxed.

“There are some very wealthy people [who] we work with and some very wealthy families who’ve taken this global location topic to an art form,” Hofmann says.

“A lot of people want to be in L.A. or Miami or New York and London, so you can spend a third of the year in the U.K. and the U.S. and then the remainder of the year you spend in other places and you’re not a tax resident anywhere for tax purposes,” he says.

This strategy is “completely legal,” Hofmann adds. “This is not tax avoidance, it’s just tax management.”

To get what you want, try closing your mouth.

A well-deployed silence can radiate confidence and connection. The trouble is, so many of us are awful at it.

We struggle to sit in silence with others, and rush to fill the void during a pause in conversation. We want to prove we’re smart or get people to like us, solve the problem or just stop that deafening, awkward sound of nothing.

The noise of social media and constant opinions have us convinced we must be louder to be heard. But do we?

“I should just shut up,” Joan Moreno , an administrative assistant in Spring, Texas, often thinks while hearing herself talk.

Still, she barrels on, giving job candidates at the hospital where she works a full history of the building and parking logistics. She slips into a monologue during arguments with her husband, even when there’s nothing good left to say. She tries to determine, via a torrent of texts, if her son is giving her the silent treatment. (Turns out he just had a cold.)

“I should have just held it in,” she thinks afterward.

We often talk ourselves out of a win. Our need to have the last word can make the business deal implode or the friend retreat, pushing us further from people we love and things we want.

“Let your breath be the first word,” advises Jefferson Fisher , a Texas trial lawyer who shares communication tips on social media.

The beauty of silence, he says, is that it can never be misquoted. Instead, it can act as a wet blanket, tamping down the heat of a dispute. Or it can be a mirror, forcing the other person to reflect on what they just said.

In court, he’ll pause for 10 seconds to let a witness’s insistence that she’s never texted while driving hang in the air. Sure enough, he says, she’ll fill the void, giving roundabout explanations and excuses before finally admitting, yes, she was on her phone.

For a mediation session, he trained a client to respond in a subdued manner if the other party said something to rile him up. When an insult was lobbed, the client sat quietly, then slowly asked his adversary to repeat the comment. No emotional reaction, just implicit power.

“You’re the one who’s in control,” Fisher says.

Acing negotiations

To be the boss, “you gotta be quiet,” says Daniel Hamburger , who spent years as the chief executive of education and healthcare technology firms.

He once sat across the negotiating table from an executive who was convinced his company was worth far more than Hamburger wanted to pay to acquire it. What Hamburger desperately wanted to do was explain all the reasons behind his math. What he actually did was throw out a number and then shut his mouth.

Soon they were shaking on a deal.

Hamburger, who retired last year and now sits on three corporate boards, also deployed strategic silence when running meetings or leading teams. If the boss chimes in first, he says, some people won’t speak up with valuable insights.

Days into one CEO job, Hamburger was confronted with two options for rewriting a piece of the company’s software. He didn’t answer, and instead turned the question back on the tech team.

“People were like, ‘Really? Are you really asking?’” he says. By morning, he had a 50-page deck from the team outlining the plan they’d long thought was best. He left them to it, and the project was done in record time, he says.

A day without speaking

Staying mum can feel like going against biology. Humans are social animals, says Robert N. Kraft , a professor emeritus of cognitive psychology at Otterbein University, in Ohio.

“Our method of connecting—and we crave it—is talking,” he says, adding that it excites us, raising our blood pressure, adrenaline and cortisol.

For years, Kraft assigned his students a day without words. No talking, no texting. Some of the students’ friends reported later that they’d been unnerved. After all, silence can be a weapon.

Many students also found that when forced to listen, they bonded better with their peers.

When we spend conversations plotting what to say next, we’re focused on ourselves. Those on the receiving end often don’t want to hear our advice or semi related anecdotes anyway. They just want someone to listen as they work through things on their own.

The question mark trick

Without pauses, we’re generally worse speakers, swerving into tangents or stumbling over sounds.

Michael Chad Hoeppner , a former actor who now runs a communications training firm, recommends an exercise to get used to taking a beat. Ask one question out loud, then draw a big question mark in the air with your finger—silently.

“That question mark is there to help you live through that fraught moment of, ‘I really should keep talking,’” Hoeppner says.

At a cocktail party or in the boardroom, you can subtly trace a question mark by your side or in your pocket to force a pause.

Sell with silence

Fresh out of college, Kyler Spencer struggled through meetings with potential clients. Some sessions stretched to two hours and still didn’t end in a yes.

The financial adviser, based in Nashville, Ill., realized he was rambling for 15-minute stretches, spouting off random economic facts in an attempt to sound savvy and experienced.

“I basically just bulldozed the meeting,” says Spencer, now 27.

He started meditating and doing breathing exercises to calm his nerves before meetings. He now makes sure to stop talking after a minute or two. The other person will jump in, sharing about their life, fears and goals. It’s information Spencer can use to build trust and pitch the right products.

His client list soon started filling up, and happy customers now send referrals his way.

“It’s amazing,” he says, “what you learn when you’re not the one talking.”

UBS announced the launch of its Female Founders Award 2024, marking the fourth consecutive year of its dedication to fostering gender diversity in the fintech and enterprise tech sectors. The award celebrates visionary female founders, co-founders, and C-level executives who are shaping the future of technology and redefining leadership in innovation.

UBS is calling on all female founders and C-suite leaders in fintech and enterprise tech who are pushing the boundaries of innovation to apply for the 2024 Award. “We are committed to helping female founders break through the barriers that still exist in today’s entrepreneurial landscape,” says Emma Wheeler, Head of Women’s Wealth at UBS Global Wealth Management. “Through the Female Founder Award, we are not only recognizing their incredible achievements but also offering them resources and opportunities to reach new heights. We believe that female founders represent a largely untapped source of innovation and investment potential.”

The 2024 award process is now underway with a nomination and application period that runs until 20 October. The award ceremony, where the winner and the “Rising Star” will be announced, will take place on 13 December. The award winner will receive a USD 10,000 prize and finalists will gain access to a year-long mentorship program and networking opportunities. Additionally, they will get the chance to participate in Project Female Founder 2025, a one year-long, global investor readiness, networking and mentorship program sponsored by UBS, designed to help early-stage founders gain access to aligned capital. Moreover, finalists will be introduced to key industry players, including leading venture capitalists, giving them a unique platform to scale their businesses.

For the first time in the award’s history, UBS is partnering with institutions from venture capital and the broader investment community, including Anthemis, Tenity, European Women in VC, Epic Angels, and AMAM Ventures. These investor teams will play a central role on the jury, offering a diverse and global perspective. “Supporting female entrepreneurs isn’t just about diversity – it’s about unlocking incredible potential. We’re thrilled to be part of this initiative, offering guidance and resources to help these women scale their businesses globally,” said Andrea Fritschi, Managing Partner at Tenity.

Female entrepreneurs receive significantly less funding than their male counterparts, despite often outperforming them when they do secure investment. These findings are from UBS’s “The Funding Gap – Investors and Female Entrepreneurs” 2021 report, which provided the starting point for UBS to address this imbalance, offering a platform to recognize, support, and propel women entrepreneurs towards greater success while also addressing the missed opportunities for investors.

Al Fardan Exchange has introduced an exciting new promotional campaign, offering two lucky winners the chance to receive free flight tickets every day from 23^rd September 2024 until 10th November 2024.

The campaign was unveiled on 23rd September at Al Fardan Exchange’s head office by one of the company’s oldest and most loyal customers. In a touching surprise, the Chief Operating Officer Tharanath Rai presented the customer with a complimentary flight voucher as a token of appreciation for his continued trust and support in the exchange house over the years. The launch event was attended by influencers and guests from various nationalities, adding to the celebratory atmosphere.

The promotion is open to customers who complete transactions through any of Al Fardan Exchange’s branches across the UAE. The voucher can be redeemed for flights to the winners’ home countries or any other destination, making it a perfect opportunity for those looking to travel.

Commenting on the launch, Hasan Fardan Al Fardan, CEO of Al Fardan Exchange, said, “This campaign isn’t just about giving away flight tickets, it is about acknowledging and appreciating the trust our customers have placed in us for decades. This campaign is our way of giving back to our valued customers, especially those who rely on our services to stay connected with their families back home. Our customer loyalty is the foundation of our success, and we are delighted to offer them the chance to win free flights as a way to stay connected with their loved ones.”

Customers can participate in the campaign by simply completing a money transfer transaction at any Al Fardan Exchange branch across the UAE. Each transaction offers a chance to win, with winners selected randomly on a daily basis throughout the promotional period.

The non-oil exports in Saudi Arabia saw a 19 percent increase in July this year, reaching SR25.4 billion, compared to SR21.3 billion in July 2023. Excluding re-exports, non-oil exports rose by 6.5 percent, while the value of re-exported goods surged by 78.4 percent during the same period.

These figures were highlighted in the July 2024 Statistical Bulletin of International Trade, released by the General Authority for Statistics (GASTAT) on Wednesday. The report also revealed a two percent rise in total commodity exports, amounting to SR94.5 billion compared to SR92.6 billion in July 2023, despite a 3.1 percent decline in oil exports, which fell to SR69.1 billion from SR71.3 billion the previous year. As a result, the share of oil exports in total exports decreased from 77 percent in July 2023 to 73.1 percent in July 2024.

Additionally, the bulletin showed that imports rose by 12.6 percent in July, reaching SR75.2 billion, while the trade balance surplus shrank by 25.4 percent compared to July 2023. Month-over-month, commodity exports increased by 6.5 percent in July compared to June 2024, with non-oil exports rising by 13 percent and imports by 8.8 percent. However, the trade balance saw a 1.8 percent decline.

The bulletin also noted a rise in the ratio of non-oil exports to imports in July, which stood at 33.7 percent, up from 31.9 percent in July 2023. This improvement was driven by the 19 percent increase in non-oil exports outpacing the 12.6 percent rise in imports during the same period.

Chemicals, along with plastics, rubber, and related products, made up the largest portion of non-oil exports, accounting for 25.8 percent and 25.6 percent, respectively. On the import side, machinery, electrical appliances, and equipment dominated with a 26.5 percent share, followed by transportation equipment at 14.6 percent, according to the GASTAT report.

The Central Bank of the UAE (CBUAE) has raised its GDP growth forecast for 2024 to 4 percent, up from the previous estimate of 3.9 percent, reflecting stronger performance in the oil sector. For 2025, growth is expected to increase to 6 percent, driven by continued momentum in the non-hydrocarbon sector and a significant increase in hydrocarbon production.

According to the CBUAE‘s Quarterly Economic Review released recently, growth projections are supported by key sectors including tourism, transportation, financial and insurance services, construction and real estate, and communications. However, the current levels of oil production in 2024 are expected to slightly temper overall growth.

Non-hydrocarbon GDP is projected to remain robust, with growth forecasted at 5.2 percent in 2024 and 5.3 percent in 2025. This growth is largely attributed to government initiatives aimed at attracting foreign investment and bolstering sectors that make significant contributions to non-oil GDP, along with ongoing structural reforms such as 100 percent foreign ownership and tax reforms.

In the hydrocarbon sector, growth is expected to reach 0.7 percent in 2024, followed by a substantial increase of 7.7 percent in 2025.

The fiscal balance for Q1 2024 stood at AED 23.5 billion, accounting for 4.9 percent of GDP, compared to AED 23.2 billion or 5.1 percent of GDP in Q1 2023. Consolidated budget revenues for January-March 2024 grew by 4.3 percent year-on-year, reaching AED 120.6 billion or 24.9 percent of GDP, largely driven by a notable 32.5 percent rise in tax revenues.

The UAE’s fiscal conditions have become increasingly stable, as evidenced by the growing share of tax revenue, which rose from 45.8 percent in Q1 2022 to nearly 70 percent in Q1 2024. This shift is mainly due to the introduction of corporate tax.

Government expenditure for the first quarter of 2024 totaled AED 97.1 billion, or 20 percent of GDP, reflecting a 5 percent year-on-year increase. Significant expenditure areas, including employee compensation (AED 30.3 billion), goods and services (AED 25.9 billion), and social benefits (AED 16.8 billion), increased by 6.3 percent, 15.2 percent, and 3.4 percent, respectively. Additionally, capital expenditure surged more than sevenfold, reaching AED 5.6 billion.

The number of employees covered by the CBUAE’s Wage Protection System (WPS) remained relatively stable year-on-year as of June 2024, while the average employee salary saw a 4.8 percent year-on-year increase. These positive trends in employment and wage growth suggest robust domestic consumption and sustained GDP growth.

The 16 non-oil sectors continued to expand in Q2 2024, although at a more moderate pace. Key sectors driving non-oil growth include wholesale and retail trade, manufacturing, and construction.

In the wholesale and retail trade sector, Comprehensive Economic Partnership Agreements (CEPA) and visa reforms have boosted trade volumes and transactions. The manufacturing sector continues to attract foreign direct investment, in line with the “Operation 300 Billion” strategy. The construction sector saw growth through various new and ongoing infrastructure projects, such as Etihad Rail and Dubai Creek Harbor.

SecureLink, the region’s leading Trusted Risk Advisor announced collaboration with BeamSec, a leading provider of comprehensive cybersecurity solutions against e-mail-based threats and vulnerabilities. BeamSec offers cutting-edge tools to address email security challenges, including phishing and other attack vectors, while equipping users with essential knowledge through interactive audiovisual training modules available on the BeamSec Cybersecurity Awareness Simulation and Training Platform.

For outbound email protection, the BeamSec Emcrpt portfolio utilizes robust encryption algorithms to safeguard emails from interception during transmission. BeamSec’s solutions cater to both on-premises and cloud environments, with fully customizable options to meet the unique requirements of clients.

Through this partnership, the two companies will work together to drive BeamSec’s geographical expansion across the EMEA region. Leveraging SecureLink’s expertise in sales and service, the partnership will provide comprehensive support for the BeamSec portfolio, including future customizations and technical integrations. SecureLink’s capability to deliver end-to-end sales and post-sales services makes them an ideal partner for this initiative.

Commenting on the partnership, Manish Pardeshi, Director, SecureLink said, “Leveraging SecureLink’s established market expertise as a ‘Risk Advisor’ alongside BeamSec’s comprehensive, scalable, and proven technology, we aim to meet customers’ cybersecurity needs with the most integrated approach available in the market.  There is a massive need for email security in the region and together we look forward to bringing in advanced email security practices to our customers to stay compliant in a rapidly evolving cyber landscape.”

“Customer satisfaction is our number one priority,” said Murat Guvenc, Managing Director of BeamSec. “What sets us apart is our commitment to understanding the unique needs of our customers and responding to their inquiries responsively and swiftly. BeamSec’s four pillars BSpeed, Adaptability, Feasibility, and Expertise are designed to make our clients feel safe and confident in partnering with us.

“Our collaboration with SecureLink, a trusted and respected partner, will enable us to bring our value-added offerings to the market, faster. This partnership will serve as a secure link, connecting our product innovations to the local market and empowering our clients with an agile and robust security strategy.”