Pending regulatory approval, Google plans to acquire multi-cloud security platform provider Wiz in an all-cash deal worth $32 billion. Once the transaction closes, Wiz will be incorporated into Google Cloud’s business line.
The two companies “share a joint vision to make cybersecurity more accessible and simpler to use for organizations of any size and industry,” said Thomas Kurian, CEO of Google Cloud, during the announcement.
Wiz’s platform connects to major cloud computing offerings from Amazon, Microsoft, Oracle, and IBM. It also provides a coding environment that helps prevent cybersecurity incidents.
“These are necessary tools for you to provide what might be called an integrated SecOps platform play,” says Philip Bues, Senior Research Manager for Cloud Security at research firm IDC. “Bringing this into Google Cloud Security Command Center Enterprise, which is its cloud-native app, further strengthens the offering to the market.”
The deal also reflects how the cloud-native application environment is consolidating. Before its planned Wiz acquisition, Google Cloud acquired cloud security provider Mandiant for $5.2 billion and cybersecurity vendor Siemplify for $500 million in 2022. Wiz has also made numerous acquisitions since exiting its stealth mode in 2020. In 2024, the Israeli firm purchased security vendors Dazz and Gem Security for a reported $450 million and $350 million, respectively.
According to Bues, the cloud-native applications market is gravitating toward platforms that provide security, integration, and compliance benefits “all in one place.”
“There is an amazing correlation of data and prioritization, which saves a lot of time for the security practitioner from alert fatigue and reduces false positives,” he adds.
Bues notes that having one of the major cloud providers acquire a multi-cloud platform provider might cause some customers to do a double take. However, cloud security platform providers have democratized the market to the point where cloud providers have implemented third-party security products. “I think the two do not necessarily cancel each other out,” he says. “It just strengthens the position when you have an ecosystem involved in providing cybersecurity in the face of an ever-evolving threat landscape.”
Abu Dhabi is positioning itself as a major hub for international asset managers and hedge funds, challenging Dubai’s long-standing dominance in the region. The emirate currently ranks second in the Middle East and Africa and 35th globally on the Global Financial Centres Index (GFCI 36).
Dubai International Financial Centre (DIFC) remains the Gulf region’s powerhouse; in 2024 alone, over 260 banking and capital market firms, 410 wealth and asset management companies (including 75 hedge funds), and 125 insurance and reinsurance firms established offices there.
Abu Dhabi, the capital of the UAE, is closing the gap, however. At the heart of this effort is Abu Dhabi Global Market (ADGM), the emirate’s financial free-zone. ADGM reported an impressive 245% growth in assets under management (AUM) in 2024, compared to 35% in 2023. It now hosts 134 asset and fund managers overseeing 166 funds. Global financial giants like Nuveen, PGIM, and General Atlantic have all established operations in Abu Dhabi, highlighting its rising appeal.
ADGM’s expansion has propelled the financial sector’s share of GDP in the emirate, which has expanded by an average 11% a year over the last three years, says Justin Alexander, director of Khalij Economics and Gulf Cooperation Council (GCC) analyst for GlobalSource Partners. While some of this growth is due to the post-Covid rebound, four key factors make ADGM a compelling international financial center, he argues.
“Firstly, is the ease of establishment,” he says. “Second is a growing ecosystem of peers and services: the network effect. Third is the location within global trading time zones, filling a gap between Singapore/Hong Kong and Europe. And fourth is the quality of life in Abu Dhabi, which helps attract and retain global talent.”
Robust Legal And Regulatory Frameworks
Like DIFC, ADGM operates under English Common Law, which means transparency and a familiar legal framework for international financial firms.
Uddin, Monroe: Abu Dhabi is an attractive location.
“ADGM supports businesses of all sizes,” a spokesperson says, “with a competitive tax environment with low to zero percent tax on profits and no restrictions on capital repatriation, cutting-edge digital infrastructure, and a plug-and-play ecosystem that simplifies the process of setting up and doing business within the jurisdiction.”
“The set-up process was seamless and ADGM’s legal and regulatory framework offers transparency and predictability, which appeals to global asset managers,” says Zia Uddin, president of Monroe Capital, a US-based investment manager that is in the process of establishing a presence in ADGM. “Additionally, ADGM provides cost efficiencies compared to other financial hubs, making it particularly attractive for start-ups and smaller firms.”
While ADGM operates under regulations like those DIFC adheres to in Dubai, it has greater flexibility in some fund structures, says Dounia Mansour, a Dubai-based partner at US law firm King & Spalding who advises international firms on setting up in ADGM and DIFC.
“An ADGM fund manager can establish and manage a fund platform without the requirement of a specific endorsement on their fund manager license,” she notes. “This streamlines the licensing process and makes it more flexible. Additionally, ADGM allows the creation of limited partnerships without legal personality, which may be, under certain circumstances, more efficient from a tax perspective.”
ADGM’s Financial Services Regulatory Authority has further enhanced its appeal by creating a progressive regulatory environment that encourages innovation.
“ADGM leads in digital assets and sustainable finance, offering innovative regulatory frameworks, including the region’s first Sustainable Finance Regulatory Framework,” says a spokesperson. For example, in December, it introduced a comprehensive framework for the issuance of fiat-referenced tokens (FRTs), broadening the range of digital assets available in a regulated environment.
Sovereign Wealth Connection
One of ADGM’s strongest selling points is its proximity to Abu Dhabi’s sovereign wealth funds. The emirate manages some $1.7 trillion in sovereign wealth assets through institutions including the Abu Dhabi Investment Authority (ADIA), Mubadala, and ADQ.
In the first three quarters of last year alone, these three funds invested $36 billion globally: two-thirds of all Persian Gulf and 26% of global sovereign fund investments placed during that period, according to research firm Global SWF.
“The existence of Abu Dhabi’s sovereign wealth funds, their strong reputations and their track record of investment activities, are all major incentives for funds to setup in Abu Dhabi or expand their presence,” says Robert Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington.
Beyond its sovereign funds, Abu Dhabi is home to the Central Bank of the United Arab Emirates, influential UAE government bodies and business leaders, creating valuable networking and partnership opportunities.
“Abu Dhabi would still be an attractive location regardless of the federal entities that conduct business there,” Monroe’s Uddin says, “but it certainly allows us to maintain relationships more easily with those organizations.”
A Leader In Sustainable Finance And Digital Assets
ADGM is playing an active role in the UAE’s push for sustainable finance and innovation, keyed to its goal of achieving net-zero emissions by 2050.
Alexander, Khalij Economics: Abu Dhabi made significant progress in diversification.
“Sustainability is a core pillar of ADGM’s financial ecosystem,” an ADGM spokesperson says. “We integrate ESG [environmental, social, and governance] frameworks and innovative financing instruments to support responsible investing.”
In 2019, ADGM launched its Sustainable Finance Agenda, built on four principles: regulation, awareness, cooperation, and ecosystem. Three years later, it became the first jurisdiction globally to regulate carbon credits and offsets as emission instruments as well as issue licenses for exchanges to operate both spot and derivative markets. In 2023, it introduced a sustainable finance framework that includes sustainability-labelled fund rules and mandatory ESG disclosures for listed companies.
ADGM is also advancing in digital assets and alternative investments, offering a regulatory framework geared to attract fintechs, hedge funds, and start-ups involved in digital currencies and tokenized assets.
Fintech firms including Blockdaemon, Thndr, Tuum, Klub, Aspen Digital, and Symphony have all expanded into ADGM, reinforcing its position as a financial innovation hub.
The freezone is also home to HUB71, a global tech ecosystem connecting start-ups with investors, government entities, and corporate partners.
Outgrowing Oil And Gas
Despite conspicuous progress, some experts argue that ADGM still has work to do to fundamentally reshape Abu Dhabi’s economy for the future. In multiple ways, the emirate remains a typical Gulf energy producer.
“[ADGM has been] key in terms of financial sector diversification and has helped attract foreign direct investment [FDI],” says Steffen Hertog, associate professor at the London School of Economics and a Gulf specialist. “But I don’t think it has yet structurally changed the Abu Dhabi economy, which remains dominated by the hydrocarbons sector and a number of large state funds and state-owned enterprises.”
The third largest oil producer in OPEC, Abu Dhabi relies on hydrocarbons for around 50% of its GDP. As a key driver of the UAE economy, it contributed 68% of the country’s total output in 2023. Under its Vision 2030 strategy, the emirate is focused on diversifying and decarbonizing by investing in sectors like tourism, finance, and logistics.
“Abu Dhabi has made some significant progress on diversification, including finance and manufacturing,” says Alexander. However, “given the extent of its hydrocarbon wealth, it doesn’t really have a huge need to diversify—from a fiscal perspective, at least. The dominance of state-owned enterprises would generally be seen as a problem in standard development economics, but it seems to work fairly well in Abu Dhabi.”
Nonetheless, the emirate is betting it can continue positioning itself as a global investment hub.
To support this ambition, the UAE launched its National Investment Strategy last November, targeting FDI growth to nearly $600 billion by 2031. Aligned with the “We the UAE 2031” national plan, which projects doubling the country’s GDP, the emirate aims to become a global investment destination by developing emerging sectors and attracting top-tier talent. ADGM is likely to remain a key player in supporting these efforts.
Conflict aside, the Middle East is anticipating a period of economic growth. Here are some of the trends shaping the future of the MENA economies.
Last year was a sadly eventful one for the Arab world. The wars in Gaza and Lebanon sent shockwaves across the region: disrupting key trade routes, derailing normalization talks between Israel and Saudi Arabia, accelerating Egypt’s economic bailout, and precipitating the fall of the Assad regime in Syria. Further west, conflicts in Sudan and the Sahel put pressure on North African economies like Egypt, Libya, and Morocco.
The long-term effects of these conflicts are still a question mark, and the arrival of Donald Trump in the White House adds further uncertainty. The new US administration’s economic policies, particularly regarding trade and oil, could have deep implications for Middle Eastern economies.
And yet, growth persists.
According to the IMF, the region is expected to enjoy 3.8% growth in GDP in 2025, up from 1.9% in 2024, while North Africa is projected to expand by 4% compared with 2.9% last year. The United Arab Emirates (UAE), Saudi Arabia, and Egypt—the region’s largest economies—are also expected to be its strongest performers, with projected GDP growth rates of 5.1%, 4.6%, and 4.1%, respectively, in 2025.
The Middle East, and especially the Gulf Cooperation Council (GCC), remain heavily reliant on hydrocarbon exports; a gradual phase-out of OPEC+ production cuts is expected to support immediate revenue growth. In parallel, the non-oil sector is getting stronger year over year, a sign that diversification stra-tegies, put in place over the last decade, are beginning to bear fruit. With over $2 trillion in planned infrastructure projects, the Middle East appears to be at the starting point of a long-promised economic transformation.
Here are some of the trends to keep in mind.
Arab Banks Thrive
The banking sector is likely to remain a pillar of the MENA economies, as governments remain strongly committed to driving development through local financial institutions, be they in mature markets or war-torn nations (see interview on page 79 with Wissam Fattouh from the Union of Arab Banks).
In December, Fitch Ratings confirmed Middle East banks’ “neutral” outlook. The agency predicted that credit growth will pick up in most countries and that lenders will maintain profitability, liquidity, and asset quality.
While traditional banks remain the region’s main financial players, fintech continues to thrive in the MENA markets, driven by regulatory reforms and a strong push for digital transformation across sectors. The six-nation GCC clearly has the lead in innovation as governments and local banks partner with small companies on projects around digital payments but also blockchain, crypto, and artificial intelligence.
Last year, 119 Arab fintechs attracted $700 million in investment, 30% of total startup funding for the region. The most dynamic market was the UAE, closely followed by Saudi Arabia. The biggest deals include $157.5 million for Egypt’s MNT-Halan, $67.5 million for Dubai open banking firm Lean Technologies, and $50 million for Bahrain payment solution provider AFS.
Fintech enables leading economies to offer cutting-edge financial services to affluent customers and stay competitive in the global AI race, but it also promises to help bridge divides across the MENA region by addressing the needs of the underbanked in the region’s poorest countries. This will be a hot topic in 2025 in troubled countries like Syria, Lebanon, Yemen, Iraq, Tunisia, and Egypt, where financial inclusion tools are creating new ways to handle money.
Surge In IPO And M&A Activity
Opportunities are also opening up in the region’s capital markets. Last year saw a strong rebound in MENA’s investment banking sector, with 701 mergers and acquisitions, up from 679 in 2023, totaling more than $92 billion in value, up 7%. The MENA countries were collectively one of the busiest areas globally for IPOs, with 54 deals raising $12.6 billion, for a 12.5% year-on-year increase in the number of deals and a 17.6% jump in proceeds, according to Ernst & Young’s February IPO EYE MENA report.
The IPO surge is expected to carry on this year with over 50 deals already in the pipeline, including Abu Dhabi’s Etihad Airways, Saudi Arabia’s Panda Retail chain and Dubai’s Amanat Holding, which invests in the health care and education sectors. A growing number of family offices are also expected to list in the years to come.
Saudi Arabia and the UAE dominated the regional IPO markets, both for number of deals and value of shares traded in 2024, but there are signs that the geographical range will be higher this year.
In October, the sultanate of Oman stepped out with its largest IPO ever, selling 25% of government-backed OQ Exploration and Production for $2 billion. In January, Asyad Group, a public logistics company, announced it would sell 20% of its shipping unit, Asyad Shipping. In total, Oman plans to list at least 35 state firms in an effort to reduce debt and increase foreign investment.
Egypt is another huge market for IPOs, also driven by state-owned companies looking to bring in private investors. Last year, the Egyptian Stock Exchange (EGX) saw the successful listing of United Bank, which raised $92 million by selling 30% of its ownership. Act Financial, a private investment company, raised over $30 million. Many more companies are anticipated to go public in 2025, including Misr Pharmaceuticals Industries; the Gabal el-Zeit wind station; Wataniya, a telecom firm; water bottle manufacturer Safi; Silo Food; Tabarak Developments Holdings, a real estate group; Alexandria Bank; and Banque du Caire.
Algeria is another unexpected yet surprisingly dynamic market. Last year, the Algiers Stock Exchange saw the listing of Crédit Populaire d’Algérie, a local bank that raised $837 million, as well as its first digital start-up IPO called Moustashir. At least three more public offerings are expected in 2025 as Africa’s biggest country tries to modernize and open up its financial sector.
From Oil To Renewables
While the MENA region is home to some of the world’s biggest hydrocarbon producers, governments are recognizing the need to adapt to climate change. Some see themselves as leaders in tomorrow’s energy markets.
MENA renewable energy capacity is set to triple from 53 gigawatts (GW) in 2023 to 150 GW by 2030, with solar panels driving 85% of this growth according to the 2024 renewables report from the International Energy Agency. Major projects are underway in the region’s largest economies, including Saudi Arabia’s Al Shuaibah solar plant, the UAE’s Mohamed Bin Rashid Al Maktoum solar park, Egypt’s Benban energy station, and the Noor projects in Morocco.
Even crisis-hit countries are joining the trend. In Lebanon and Syria, solar panels have become a common sight on rooftops, providing households with a reliable alternative during frequent power cuts.
The corporate sector is also shifting as more MENA-area companies commit to solar-powered production as one of their sustainability strategies.
Other clean energy sources are gaining traction across the region as well. Last year, Saudi Arabia and Egypt signed some of the world’s first green ammonia contracts, while blue and green hydrogen projects are commencing in several GCC states.
To boost their green energy initiatives, MENA countries are also securing access to rare metals. Last year, Saudi Arabia revised its estimate of its untapped mineral resources from $1.3 trillion to $2.5 trillion and began signing exploration MoUs with international firms. Countries lacking domestic resources are seeking them abroad. The UAE, for example, has inked several mining agreements in Africa, including a $1.9 billion deal with the Democratic Republic of Congo.
For now, however, oil and gas will remain the regional mainstay. Despite growing investments in renewables, fossil fuels still account for over 80% of global energy consumption, according to S&P Global. With demand on the rise, countries like Algeria, Libya, Egypt, Iraq, Oman, Saudi Arabia, the UAE, Kuwait, and Qatar have no plan to stop pumping hydrocarbons.
On the contrary, many will be substantially expanding production capacities in the next few years, ensuring robust revenues and business prospects.
In the final stretch of its Vision 2030 development blueprint, Saudi Arabia is counting on FDI to play a bigger role.
The clock is ticking for Saudi Arabia. With just five years remaining on its ambitious Vision 2030 program to modernize and diversify away from its economic dependency on oil, the world’s biggest petroleum exporter and the region’s largest economy is nearing a crossroads.
The kingdom has made significant strides, crossing key milestones that were once unimaginable: granting women the right to drive and dress freely, legalizing concerts and cinemas, and opening its doors to foreigners. Saudi Arabia, which didn’t issue tourist visas until 2019, now claims to have hosted over 100 million visitors.
Over the past decade, the kingdom’s GDP has grown by 70%, driven mainly by non-oil sectors. Foreign direct investment (FDI) has tripled, and the number of investors has increased tenfold.
Investment-Friendly Rules
To strengthen the business climate, Saudi Arabia has enacted a number of regulatory reforms, including a new investment law that came into effect in February. For the first time, foreign and local investors follow a single set of rules. While some sectors, notably the military and activities around the holy sites of Mecca and Medina, remain reserved for Saudi nationals, in others, foreigners appear to have more leeway, or at least the possibility to apply for exemptions.
The new law streamlines the licensing process, reducing ministries’ decision time from 30 days to five. It also introduces stronger intellectual property protections and simplifies funds transfers. Additionally, investors now have options for dispute settlement other than the local courts, including mediation, arbitration, and conciliation.
In a country where quick change by unilateral decree is the norm, the new framework offers investors a sense of predictability and transparency. It remains to be seen how this will play out in practice, however.
“The countries in this region are changing very quickly, and this is something that businesses must take into consideration,” says Angelica Schempp, head of Swiss Business Hub Middle East, which helps Swiss and Liechtensteiner companies expand in the region. “It creates opportunities, but for example, laws and regulations evolve rapidly. Sometimes you wake up in the morning and something has changed, so as a business, you have to be able to live with this dynamic.”
One such major change was when the authorities decided that foreign companies wishing to secure public-sector contracts must establish regional headquarters in Saudi Arabia. This policy, beginning last year and often described as a carrot-and-stick approach, aims to reinforce the kingdom as a commercial hub by shifting business away from Dubai. Initially expected to be taken up by 540 companies by 2030, the kingdom surpassed this goal within the first year.
“We have just passed the inflection point,” Khalid Al-Falih, Saudi Arabia’s minister of investment, said during the WAIPAC World Investment Conference held in Riyadh last November. “This is the most comprehensive transformation in our history and there is much more to come.”
OCO Global, an advisory firm specializing in investment promotion, has been working with Saudi Arabia since 2017 and just registered its regional headquarters in Riyadh.
“Many companies have been doing business in Saudi without being in Saudi,” says Gareth Hagan, CEO, “and I think they’re now realizing that for a bunch of reasons, that probably has to change.” While he admits the new law played a role in his decision, he also stresses the commercial logic behind it. “Our philosophy has always been to go where the opportunity is, and when I talk about Saudi, basically, I see investment opportunity everywhere.”
Not everyone is rushing through the door, however. Some companies express concerns over the cost of relocation or the desert kingdom being an unfamiliar market from which to operate.
“There’s still a perception that it’s a difficult place to do business,” Hagan acknowledges. “It is evolving, but perception is not something that changes overnight. So I think the Saudis need to keep reinforcing that message.”
Nineblocks, a crypto hedge fund licensed in Dubai, plans to maintain regional operations in the United Arab Emirates due to its more favorable cryptocurrency legislation.
“There’s a lot of misconceptions that people in crypto want to avoid regulations,” says Henri Arslanian, Nineblocks’ co-founder. “Actually, all we want is a clear set of rules that we can operate by. For everybody in the digital asset space, the big question is, When is Saudi Arabia going to open-up to crypto assets?”
A Wealth Of Opportunities
Opportunities getting a look from foreign investors span sectors from food and beverages to retail, automotive, aviation, mining and rare metals, real estate, health, technology, and renewable energy. A significant portion are being driven by megaprojects with, collectively, over $1 trillion worth of planned developments. Some projects, such as the Al-Ula tourist area, the Riyadh metro, and parts of Diriyah’s urban development, are already in use.
So far, most of these have been financed locally, largely with oil money. In recent years, however, lower hydrocarbon prices and production cuts have hurt government revenues, forcing the kingdom to prioritize spending and scale down on some projects, including the emblematic futuristic city The Line, a component of the NEOM desert development that was cut back from 170 kilometers to just 2.4.
Robinson, Diriyah: It’s not about raising a pile of capital, it’s about building long-term international partnerships.
Those in charge, however, remain positive. “We’re on time and we’re on budget,” Jonathan Robinson, CIO of Diriyah, a $60 billion landmark urban development in Riyadh scheduled to open in 2030. The new city’s foundation and underground phases are complete and visible construction is expected to follow soon. The developer plans to monetize 35% to 50% of the project and is looking for investors with a potential ticket size starting at $500 million.
“The momentum is here and we will be announcing some pretty innovative news this year,” says Robinson.
To realize their ambitions, the Saudi state and developers are looking not just for capital but for long-term investors who can bring “brains, talent, and sustainability,” as Ibrahim Al-Mubarak, CEO of the Saudi Investment Promotion Agency, puts it.
“It’s not about raising a pile of capital—we have other means to do that if we have to—it’s about building long-term international partnerships,” says Robinson. “We’re talking to parties in Asia, in the GCC [Gulf Cooperation Council] region, in Europe, and in the US, and those are real conversations, not shaking hands and exchanging cards.”
US companies have long-standing relationships in the kingdom, but their European counterparts are getting into the game as well in such key sectors as energy transition, infrastructure, tourism, and tech. The first EU-Saudi investment forum, held in Riyadh in October 2023, attracted over 1,400 companies; the EU opened a chamber of commerce in Riyadh the following May.
But the kingdom is also courting the global south, countries that represent 60% of global GDP and are often less inclined to tie business decisions to concerns over human rights or political reform. “We make sure we’re having conversations with the widest possible breadth of capital providers,” says Robinson, adding that he is in talks with sovereign funds, family offices, private equity firms, and other sources. “Capital means equity and debt, and debt can mean export credit agencies, bank debt, and eventually, it will mean the capital markets.”
As Saudi Arabia endeavors to wean itself off oil revenue, its transformation is likely to reshape not only its own economy but the broader region as Kuwait, Qatar, Oman, and other states in the region adopt similar “vision” strategies. The path forward remains fraught with challenges, ranging from geopolitical tensions to the acute consequences of global warming in desert areas, but Saudi Arabia is keen to persuade investors that it offers substantial opportunities for those willing to navigate its evolving business landscape.
Almuth Steinkühler has been CFO of SCHOTT Pharma, which designs drug containment products and drug delivery systems for pharmaceutical and biotech companies, since August 2022. Originally a division of glass manufacturer Schott AG, the company went public on the Frankfurt Stock Exchange in 2023. Steinkühler previously worked at ThyssenKrupp and Continental AG.
Global Finance: What has been the biggest challenge of your tenure as financial head of SCHOTT Pharma, given its new status as a public company?
Almuth Steinkühler: Looking back, the past few years have been incredibly dynamic and rewarding for SCHOTT Pharma as well as for me as a person. I would point out three distinct phases, each presenting its own unique challenges. Initially, it was all about laying the groundwork: establishing SCHOTT Pharma as an independent company with all its processes, structures, and new departments. The foundational work was crucial for our success.
After reaching this milestone, my focus shifted entirely to the process of going public and building a loyal and supportive investor base while taking our employees with us on this journey. I can tell you that our successful initial public offering [IPO] was a great achievement.
However, for a CFO, the real deal starts at day one after the listing day. From that moment on, the main challenge is achieving strong growth and margin expansion for our business: something we’ve been able to deliver on, especially in a challenging market environment.
GF: What has absorbed most of your energy over the last 12 months, and why?
Steinkühler: I’ve devoted the majority of my time and energy to managing SCHOTT Pharma’s first steps as a public company, which, as one would imagine, requires a lot of attention and strategic oversight. Together with my team, I focused on telling our equity story to investors and the public, ensuring that our vision and potential are clearly understood and appreciated.
At the same time, we managed a tremendous change process. We worked to build a strong commitment to our IPO internally, bridging information flows and adjusting to the new dynamics of being a publicly listed company.
GF: How important is it for you to have a top team, and what do you do to get it?
Steinkühler: A strong team is the most important factor in delivering consistent results. Being new to the public markets and building teams at the same time is not easy. But with the right spirit, it can work.
For me, it starts with hiring for attitude: finding people who have the ambition to improve processes and always keep an eye on the result. Then it continues with trust: giving them room to tap into their expertise and competencies while empowering them to take responsibility. We have many such people at SCHOTT Pharma and their commitment and dedication is what makes our success.
GF: How do you see artificial intelligence in finance evolving? How can AI be most useful?
Steinkühler: AI presents a tremendous opportunity in the field of finance, primarily because it facilitates the use and analysis of vast amounts of data. By making data easily accessible to a broad audience, AI empowers individuals to quickly extract valuable insights.
I believe this shift will transform finance from simply providing analyses to enabling others to work with data more effectively. Essentially, this will give us a more comprehensive understanding of the big picture and spark greater creativity. While it is crucial to ensure that data ownership and security remain top priorities, the benefits of AI will shape the future of finance.
GF: What keeps you up at night?
Steinkühler: I’m thinking about how to ensure the continued success and growth of SCHOTT Pharma, how to maintain the trust of investors and stakeholders, and how to navigate the complex market environment. But this is what makes me dream at night and motivates me for the day. We are very well positioned in an intact market with strong megatrends and have great prospects for the future. Therefore, we are ready and well underway to execute our strategy.
Wissam Fattouh, secretary general of the Union of Arab Banks (UAB) and the World Union of Arab Bankers, talks about the issues facing the Arab banking sector and the challenges of rebuilding Syria’s banking system.
Global Finance: The UAB has been bringing together the Arab world’s banking sector for over 50 years. What are the critical issues you are working on now?
Wissam Fattouh: Today, we have two key priorities. Firstly, recognizing the critical role of the banking sector in driving sustainable economic growth, we are actively working to align Arab financial institutions with the UN’s Sustainable Development Goals. This includes promoting green finance, investments in climate resilience, and financial inclusion to support small to midsized enterprises, women, and youth entrepreneurship.
Secondly, as several Arab countries—including Syria, Yemen, Lebanon, Sudan, and Libya—face economic crises and geopolitical instability that have severely impacted their banking systems, we are committed to supporting the restructuring and revitalization of these banking systems by providing technical assistance, policy guidance, and capacity-building programs.
GF: The region is very heterogeneous, and rocked with uncertainties. How does your membership find common ground?
Fattouh: Despite this heterogeneity, I do believe there are fundamental commonalities that unite the Arab banking sector. On one hand, all Arab countries recognize the critical role of the banking system in driving economic development and stability. There is a shared commitment to strengthening financial inclusion, enhancing regulatory frameworks, and promoting digital transformation. In this regard, the UAB acts as a platform for dialogue and cooperation.
On the other hand, many of the challenges facing the Arab banking sector—such as de-risking, compliance with international regulations, financing for development, and climate change—transcend national borders. The UAB plays a role in fostering regional collaboration to develop harmonized strategies that address these shared concerns.
GF: What are Arab banks’ biggest strengths in global finance today?
Fattouh: One of Arab banks’ greatest advantages is their strong capitalization. Over the years, they have maintained solid liquidity buffers and adhered to prudent risk management strategies, allowing them to withstand global economic shocks and geopolitical uncertainties. Regulatory reforms have further reinforced their ability to navigate complex financial landscapes.
Another defining strength is their rapid embrace of digital transformation. The expansion of digital payment systems and open banking initiatives underscores the sector’s adaptability and competitivity.
Additionally, Arab banks play a strategic role in regional and international financial markets. Their engagement in trade finance, cross-border investments, and remittance flows has strengthened economic ties between the Arab world and global markets.
GF: Looking to the year ahead, what are your members’ biggest concerns?
Fattouh: Compliance with international banking regulations, particularly those related to anti-money laundering; combating terrorism financing; and climate-related financial disclosures, remain a priority. Striking a balance between regulatory compliance and business growth is essential for maintaining strong ties with global financial markets.
Another major challenge is managing geopolitical and economic uncertainties in the region. Hence, strengthening risk management frameworks and reinforcing financial-sector resilience will be crucial for mitigating risks.
GF: With the UAB’s recent plan to reform Syria’s banking system, what key challenges do financial institutions face in the country’s rebuilding efforts?
Fattouh: The country’s banks have been largely isolated from the international financial system due to sanctions and de-risking measures imposed by global institutions. A key priority now will be reintegrating Syria’s banks into the global financial system, which will involve aligning regulatory frameworks with international standards, rebuilding correspondent banking relationships, and addressing compliance with anti-money laundering and counter-terrorism financing regulations.
At the same time, efforts must be made to recapitalize banks, resolve non-performing loans, modernize the banking infrastructure, and expand financial inclusion. The UAB is taking a proactive role in preparing for the reconstruction of Syria’s banking sector once the political situation stabilizes. We are committed to working with regional and international stakeholders to provide technical assistance, capacity-building programs, and policy guidance to ensure a smooth and effective transition.
As part of their diversification and job-creation efforts, MENA states are turning themselves into a new global hub of professional sports.
Drop your guard for an instant, and you’ll get clobbered by a barrage of sporting investments in the Middle East and North Africa (MENA).
The sports market for the region is primed for a 16.5% compound annual growth rate (CAGR) from 2023 to 2030, according to consultancy Grand View Research. Qatar’s sports market alone is projected to hit $3.7 billion this year, according to a 2024 white paper by Middle East Sports Investment Forum.
Morocco is slated to co-host the 2030 soccer World Cup (with Portugal and Spain), with Saudi Arabia following four years later, nearly on the heels of the 2022 edition in Qatar. And Egypt is preparing a bid for the 2036 Summer Olympics.
With a $2 billion annual investment, the sports industry’s contribution to Saudi GDP should equal $16.5 billion a year, or 1.5% of output, by 2030, says a report published in December by SURJ Sports Investment, a unit of the Public Investment Fund (PFI), the kingdom’s sovereign wealth fund. The sector’s market value is projected at $22.4 billion by then, up from $8 billion today, which should translate into over 100,000 jobs.
“It’s new, sexy, and different compared to the stock market,” says Viktoria Tsvetanova Lightbody, a competition lawyer with Dentons, a global law firm, and a director of Badminton Europe, the regional governing body for that sport.
“The Middle East is such a hot market,” says Marquel Martin, CEO of 3Point0 Labs, a sports and entertainment management firm that spearheaded two boxing matches in Riyadh for its then-client Francis Ngannou, a mixed martial arts crossover fighter. “There is tremendous growth to be had in sponsorships and leagues.”
Heavyweights hail from the oil-rich Persian Gulf, but markets like Egypt and Morocco are punching above their weight. “It’s pretty much everywhere. It’s the new Klondike,” says Simon Chadwick, a business consultant specializing in sports and geopolitical economy, comparing it to the frantic late-19th century Canadian gold rush.
A Cascade Of Deals
To get a sense of the velocity, consider these highlights from the first quarter of 2025.
TKO Group Holdings, parent company of the Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE), confirmed the launch of a new boxing organization in partnership with Sela, an events company owned by PFI.
Abu Dhabi hosted the first-ever Middle Eastern leg of the World Surf League Championship, held in an artificial wave pool. The competition numbered as one of at least 19 major international events featuring at least 14 different sports this year in four countries: United Arab Emirates (UAE: notably, Abu Dhabi and Dubai), Bahrain, Qatar, and Saudi Arabia.
Mercedes-AMG, the high-performance subsidiary of Mercedes-Benz AG, announced plans to build an auto racing theme park in Qiddiya, Saudi Arabia, working with another PIF subsidiary. It is expected to rival Abu Dhabi’s Ferrari World, which opened in 2010.
NIP Group, an esports (video game) firm, inked a five-year, $40 million deal with the Abu Dhabi Investment Office (ADIO), a publicly owned investment booster agency, to drive expansion in the region and around the world. NIP was formed in 2023 from a merger between Swedish esports outfit Ninjas in Pyjamas and the Chinese digital sports group ESV5.
SURJ Sports Investment bought a stake in the London-based DAZN sports streaming service, throwing down the MENA gauntlet to Qatar-based rival beIN Sports.
Qatar Sports Investments (QSI), a subsidiary of the Qatar Investment Authority (QIA), the state’s sovereign wealth fund, announced the launch of PSG Labs, a high-tech “innovation hub” as an extension of its ownership since 2011 of the Paris Saint-Germain football club.
Maverick Carter, business partner of basketball legend LeBron James, secured PIF’s backing for a $5 billion venture to organize a new global professional basketball league, The Financial Times reported. The deal is reminiscent of the 2022 launch of the PIF-backed LIV, a golf tour that forced a merger last year with the established PGA Tour.
Etihad Airways, the UAE’s national airline, announced a multi-year sponsorship agreement with the Badminton World Federation (BWF), starting with the 2025 season.
Still pending in early March, Moroccan amateur golf phenom Adam Bresnu appeared set to sign with 3Point0 Labs. The agent deal may prove symbolic beyond its size as a step toward the development of local sports heroes, helping establish a sustainable homegrown sports ecosystem in the region by giving local fans “a stable champion to get behind,” as Martin put it.
Forays into golf and badminton aside, money tends to be channeled into the three Fs: “fighting, football, and fast cars,” notes Chadwick, a fact that may reflect something deeper. “Not that women don’t participate, but the society is still incredibly masculine.”
21st Century Kickoff
The Middle East is hardly new to sports. “Wrestling, athletics, and fencing all originated in Egypt,” notes Victor Olivereau, a geopolitical consultant specializing in the Middle East and sports who has worked with Peace and Sport, an international organization.
The groundwork for today’s skyscraper-scale outlays was laid in 2013-2017, however. In 2016, Saudi Crown Prince Mohammed bin Salman pushed PIF to flex “its financial might globally, including in the sports world.” Some mark the beginning of the current craze to pioneering investment in Formula 1 (Bahrain), tennis (Dubai) and English Premier League (Abu Dhabi). The next year, Saudi Arabia launched its ambitious Vision 2030 program.
For the hydrocarbon-dependent MENA economies, the official rallying call extends beyond economic growth to diversification for job creation, especially for individuals entering the workforce. More than 250 million children and young people, from newborns to age 24, lived in MENA countries in 2023, making them around 47% of the population, according to UNICEF. Youth (15-24) unemployment in the region stood at 24.9% the same year, according to the World Bank.
Lightbody, Dentons: It’s new, sexy, and different compared to the stock market.
“Diversification through sports can create wealth and jobs,” says Chadwick.
Another key goal is “nation branding through sport, which acts as a veritable showcase for a country,” Olivereau notes. Following the footsteps of the US and the UK, notably, but also Brazil (football) and South Korea (K-Pop), MENA countries want to “manage their reputations through sport” and other activities such as fashion and music, says Chadwick.
Public health factors in, too. State officials hope that a combination of spectator sports and other initiatives that encourage physical activity will reverse a trend that projects MENA as the inauspicious world champion in youth obesity in 2050, according to a recent article in The Lancet, a leading medical journal.
Questions remain as to how justifiable and sustainable the MENA states’ investment in sports will prove to be in the long run. “These states are primarily seeking political gains, not economic ones,” Olivereau points out.
Saudi Arabia, for one, “will not be able to invest, without limit and in this way, over a long period,” he predicts. “When we observe the delays in the construction of NEOM and the revision of the kingdom’s ambitions in this area, we can legitimately wonder whether this policy of massive investment will continue beyond 2034.”
The region’s track record thus far suggests that “the sums invested are often greater than the benefits generated,” he adds. Take the World Cup in Qatar, which is estimated to have cost the Qatari authorities some $200 billion to stage and to have generated only $20 billion to $40 billion in indirect gains and investment.
“On the other hand, the organization of these events constitutes a vast stimulation for the local economy, at the level of built infrastructures, tourism, and others.”
Like the Klondike over a century ago, every participant is not guaranteed to come out ahead.
The GCC’s open-door economic policy is at a crossroads as geo-fragmentation rises and the US-China rivalry heats up.
A long-held policy of the six-member Gulf Cooperation Council (GCC) is to forge commercial ties with countries around the world, regardless of their political inclinations. Amid geoeconomic headwinds, that policy now hangs in the balance.
Western attempts to decouple from China and a drastic turnabout in US trade policy are “key strategic” concerns for leaders and executives in Bahrain, Kuwait, Oman, Qatar, and, especially, Saudi Arabia and the United Arab Emirates, says Steven Wright, a political economist at Hamad Bin Khalifa University in Doha.
These developments are “increasingly feeding into economic policy discussions,” pointing to an “inevitable shift” from the “straightforward balancing act” the GCC has maintained, where security comes from the US and trade depends on China, to a “more complex calculation,” Wright says.
The Persian Gulf states are still looking to preserve and expand bilateral business ties, at least for long enough to build domestic capacity. But the clock is ticking.
Gulf state officials see the US-China rivalry as “a significant issue” as they strive to diversify away from oil and gas, and are responding with “a delicate game of balance,” says M.R. Raghu, chief executive of Marmore MENA Intelligence, a subsidiary of Kuwait-based asset manager and investment bank Markaz,
While President Trump’s tariff and trade policies might push the Gulf states further into China’s pocket or prompt them to search for other partners, their reliance on the US for security makes it unlikely that any “significant shifts” will occur in the short term, he argues. “GCC states are likely preparing for multiple scenarios, emphasizing diversification and flexibility.”
In the same vein, it is naïve of the US to expect the Gulf to fully distance itself from China and other Asian nations as cooperation runs wide and deep, especially in the massive regional construction market, says Junaid Ansari, director of investment strategy and research at Kuwait-based Kamco Invest.
“This is expected to continue in the near to mid-term as these countries are heavily involved with the strategic visions of GCC governments,” Ansari notes.
In fact, some experts believe that China’s long-term political stability, strategic planning and focus on development, might ultimately make it the preferred partner.
A closer look at three industries—AI, renewable energy, and critical minerals—highlights the region’s position while central turf in a rising great-power competition as the US and China vie to entrench their products in the region to keep each other out, providing insight about how difficult the GCC’s balancing act really is.
All About AI
The GCC—and particularly its heavyweights, Saudi Arabia and the UAE—are betting big on AI. But this is a space where the policy of pursuing the best offer, regardless of who is offering, is complicated by the growing US-China animosity.
In its latest annual report, the US-China Economic and Security Review Commission—a bipartisan advisory panel of the US Congress—singled out AI tie-ups between Chinese and Gulf firms as a “new vector of vulnerability.” Already in 2023, then-President Joe Biden tightened restrictions on exports of dual-use semiconductors to a host of countries, many across the Middle East, that could provide a backdoor for Chinese access.
But advanced American chips are precisely what Saudi Arabia and the UAE need to turn themselves into global data-center hubs, and they appear willing to create at least some distance from China to get access.
Backroom negotiations led to a $1.5 billion investment by Microsoft last year in Emirati AI development firm G42, which is backed by Mubadala, an Abu Dhabi sovereign wealth fund. The deal, which required G42 to divest its holdings of Chinese tech companies, exemplifies both the concessions the Gulf has been open to making and the complexities that remain. G42 sold the “blacklisted” stakes, but to Lunate, an alternative asset manager in Abu Dhabi supported by ADQ, another emirate sovereign fund.
Other data-center partnerships have followed in the US and the Gulf involving American, UAE, and Saudi entities from Google to Dubai-based developer Damac to MGX, a technology investment firm launched last year with G42 and Mubadala as foundational partners.
This flurry of activity suggests the Gulf is striving to stay in Washington’s good graces and preserve its access to next-gen chips while it advances its homegrown tech ecosystem. But Saudi Arabia and the UAE are also continuing to cooperate with Chinese tech companies, which dominate the development of 5G telecommunication networks across the GCC.
Junaid Ansari of Kamco Invest says he has yet to see indications that GCC governments or firms are taking sides.
“Since the present situation is very volatile, it is best to keep an open policy,” he cautions.
Diversifying During Change
Could the moment come when the Trump administration issues a “You are either with us or against us”-style ultimatum?
This is no laughing matter for the Gulf, which is seeking to transition away from its hydrocarbons-reliant economy amid growing global turbulence.
Ansari, Kamco Invest: Since the present situation is very volatile, it is best to keep an open policy.
The GCC has thrived in the post-pandemic years thanks to diligent governance, development programs like Saudi Arabia’s Vision 2030, and the wars in Ukraine and the larger Middle East. Meanwhile, the Gulf region has become a safe haven for businesses of all sorts. International Monetary Fund Managing Director Kristalina Georgieva recently called it “a bright spot in the world economy.”
There are challenges, however, and the fraying of global trade makes tackling them that much harder.
A glut of supply amid soft demand has kept crude prices below many Gulf states’ breakeven levels, putting pressure on public finances. The massive spending required by Vision 2030 is straining Saudi coffers as private investment has been slow to come aboard. Bahrain’s soaring debt led to Fitch Ratings downgrading its outlook to negative in February. And Kuwait is gripped by political uncertainty, nearly a year into an indefinite suspension of parliament.
Against this backdrop, Trump’s likely inflationary approach to economic policymaking risks keeping interest rates high in the US and the Gulf, where currencies are pegged to or weighted toward the US dollar. A slowdown in global consumer demand would impact the GCC, which depends on an unrestrained flow of goods and services. And the US president’s promise to “drill, baby, drill!” could cause oil prices to slide further, especially as OPEC+ is taking steps to hike output.
“It is very difficult to assess where things will converge,” says Ansari, noting that widespread volatility and the “brute nature” of some of Trump’s policies make shifts in international relations likely.
For the GCC, the way forward remains centered on economic reform and diversification, like raising some corporate, individual or sales taxes to improve the health of public finances and streamlining regulations, Georgieva said in Dubai in February.
Localization, Localization, Localization
Renewable energy is an area where, for lack of alternatives, the Gulf states continue to work closely with China, even as they push to develop their domestic industries.
In 2022, the UAE and Saudi Arabia imported 11.4 GW of photovoltaic components from China, a 78% year-on-year jump. Today, electric Chinese cars dot Dubai’s highways as they offer a better bang for the buck than the likes of Tesla.
The Middle East, led by Saudi Arabia, Iraq, and the UAE, received more investments funds through China’s Belt and Road Initiative than any other region last year, a total of $39 billion. Nearly $12 billion went to projects in the solar, wind, and waste-to-energy spaces.
Here too, however, change is afoot.
“What I think is quite noteworthy is how GCC states are increasingly looking to develop their own domestic manufacturing capabilities,” says Wright at Hamad Bin Khalifa University.
Oman’s Mays Motors recently delivered its first electric vehicles (EVs). Saudi Arabia’s Ceer says it will follow in early 2026. And one of Saudi Arabia’s biggest bets in EV manufacturing is a partnership with California-based Lucid Motors.
The Gulf retains an outsized reliance on China for imports of renewable-related raw materials and finished products, Ansari notes. But this will change, he predicts, as regional companies grow capacity and Saudi Arabia develops alternative procurement channels for critical minerals and rare earths.
Copper, lithium, nickel, scandium, and gallium—crucial inputs for wind turbines, EV batteries, and other such systems—will become exponentially more sought-after. China controls large shares of deposits and upward of 90% of processing capacity for some of these elements. But Saudi Arabia sees mining as another vital pillar of economic growth.
Its state-owned mining company, Ma’aden, is pursuing more domestic output, including through partnerships with start-ups from Australia, the US, and elsewhere, to identify untapped riches under the Arabian Shield rock formation and to recycle elements from industrial waste.
Manara Minerals, a joint-venture between Ma’aden and the Public Investment Fund—the preeminent Saudi sovereign investor—is on a global shopping spree for mines, or shares thereof, from Zambia to Chile. A year ago, Manara bought 10% of Vale Base Metals, a subsidiary of the Brazilian metals and mining giant, for $2.5 billion.
That’s an example of the GCC looking for partners beyond the US and China as it seeks to protect its independence and, especially for Saudi Arabia, to raise its global profile, says Raghu of Marmore MENA Intelligence.
The Gulf is proving sophisticated and pragmatic in how it advertises deals, says Wright, including emphasizing those with US companies in an effort to appease Trump. But the superpowers’ own very different approaches to relationship-building beg the question of which one the Gulf states prefer in the long term.
“The key question,” he argues, “is what has more sustainability: a large-scale transactional announcement that is unlikely to be fully realized, or a series of billion-dollar agreements in a variety of sectors? My view is that the trends with China look far more promising over the long term.”
Two of India’s biggest telecom providers, Reliance Jio and Bharti Airtel, separately inked deals with Elon Musk’s Starlink last month to provide satellite-based internet services there. The pacts open up vast opportunities for Starlink and its parent company, SpaceX, in the multi-billion-dollar Indian satellite communication services market. As of early 2025, approximately 654 million people have yet to gain internet access, according to DataReportal.
Starlink offers high-speed internet and data services via a constellation of 5,600 low-Earth-orbit satellites. Internationally, Starlink provides 2.7 million customers with internet services at speeds ranging from 50 to 200 Mbps.
Tying up with Starlink gives a significant leg up in the Indian telecom market to billionaires Sunil Bharti Mittal, owner of Bharti Airtel, and Mukesh Ambani, proprietor of Reliance Jio. The country’s third biggest telecom player, Vodafone Idea, will have to rework its strategy, although there is talk of it signing with Starlink as well. State-run BSNL is reported to have rejected a deal.
SpaceX and Starlink have been looking to enter the Indian market since 2019. Musk’s role in the Trump administration and his private meeting with Prime Minister Narendra Modi in Washington last month reportedly helped pave the way.
Looking ahead, Reliance Jio and Bharti Airtel view Starlink as a collaborator to complement their traditional fiber-based data and telecom services in remote and uncovered areas of India. As per their announcements, both companies will sell Starlink equipment and services through their vast networks of stores. Approvals from the Telecom Regulatory Authority of India and the Indian Space Promotion and Authorization Centre for the Reliance Jio and Bharti Airtel deals are yet to come. Data security and geopolitical concerns have been flagged by opposition political parties, citing Starlink’s threat to cut services to Ukraine in the midst of its war with Russia. But policy analysts expect a smooth ride with regulators, given the stature of the two top telecom services providers.
HomeTechnologyElectric Vehicles: Innovation, Cost Fueling BYD’s Global Momentum
Is momentum shifting in the global electric vehicle (EV) market?
Chinese EV maker BYD has surged ahead of Tesla, reporting $107 billion in 2024 revenue compared with Tesla’s $97.7 billion. BYD’s net income in the fourth quarter was a record $2.07 billion, an increase of 73% year-on-year and up 29% quarter-on-quarter.
Tesla’s Chinese rival is gaining global momentum, says Jacob Falkencrone, global head of investment strategy at Saxo Bank, with record-breaking earnings, rapid international expansion, and stock performance that’s outpacing the industry leader.
Innovation is driving BYD’s success, according to Falkencrone, from ultra-fast five-minute charging for 400 km of range to a diversified vehicle lineup that includes hybrids and cleantech solutions beyond cars. The five-minute charge bests the 15 minutes offered by Tesla’s supercharger system.
“This isn’t an incremental improvement,” says Falkencrone. “It’s revolutionary, directly addressing one of consumers’ biggest barriers to EV adoption: lengthy charging times.”
Once reliant on price-cutting, BYD’s pivot toward innovation and technological improvement comes as Tesla’s aging and expensive vehicle models are finding it hard to compete. Founder Elon Musk’s polarizing behavior as a Trump administration adviser hasn’t helped, prompting boycotts against Tesla in Europe and the US.
Looking ahead, Tesla is rumored to be releasing new models this year, including affordable ones, which might rejuvenate sales. But details are scant and the pipeline is small. Nobody is writing off Tesla, however, and the company’s long-time leading role in EV innovation should not be underestimated.
In its favor, BYD has announced it will equip all vehicles with free self-driving technology. The company also makes its own chips and batteries, helping to cut manufacturing costs.
That ambitious agenda won’t be easy to fulfil. Risks include price competition, regulatory hurdles, and the threat of ever higher tariffs from both Europe and the US. Upcoming plants in Hungary and Turkey will help BYD avoid European tariffs and President Trump once voiced his support for Chinese EV makers setting up plants in the US. But for now, geopolitical risks pose a serious challenge as tariffs have kept BYD from entering the passenger car market in the US and regulatory scrutiny around Chinese EV subsidies could complicate its expansion efforts in Europe.
