Sovereign wealth funds (SWFs) and other asset managers in the Arabian Gulf should establish dedicated 'thematic investing' teams to identify long-term opportunities from technology-driven trends such as robotics and artificial intelligence (AI), according to an advisor at Bank of America Merrill Lynch (BoAML).
"Asset owners across the world, be it petro-funds or SWFs, are becoming increasingly systematic in terms of the way they take these trends on board," said Sarbjit Nahal, head of thematic investing strategy at BoAML, in an interview with The National.
“We’ve seen far more by way of dedicated thematic investing teams being created to do deep dives on global trends, and investors are taking major stakes in companies off the back of this.
“That type of systemic thinking and creation of teams has happened in other regions of the world and it’s likely to be followed here, particularly given the importance of [some of the national funds].”
AI is expected to push global GDP up to 14 per cent higher by 2030 than it is now – the equivalent of an additional US$15.7 trillion – according to forecasts from PwC.
The consultancy notes that while there could be an initial loss of some jobs, AI would drive productivity gains from businesses automating processes and augmenting their labour force, with increased consumer demand for personalised and higher quality AI-enhanced products and services.
Gulf SWFs, including Abu Dhabi’s Mubadala Investment Company and Saudi Arabia’s Public Investment Fund (PIF), have shown significant appetite to invest in companies, products and services born out of new technologies and demographic trends.
This week, Mubadala chief executive Khaldoon Al Mubarak said the company was looking to increase its investment in Japanese telecoms firm SoftBank's US$100 billion Vision Fund, with a view to gaining greater exposure to fast-growing global technology firms. He said Mubadala was actively seeking investment opportunities in AI, virtual reality and e-commerce.
PIF, which also participates in the Vision Fund, has stakes in fast-growing companies such as transport app Uber, and plans greater exposure to technology in line with Saudi Arabia's Vision 2030 economic diversification strategy.
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“What we’re finding is that capital is becoming increasingly thematic around the world,” Mr Nahal said. “There’s a move away from that biopic obsession with the quarterly results, towards better understanding of the long-term factors at play with regard opportunities and risks.”
Institutions in Asia, Europe and the US have created dedicated teams to examine such issues, including Singapore’s investment fund GIC, which has created the Integrated Strategies Group, and Canada Pension Plan (CPP), which has a 20-strong thematic investing team, Mr Nahal said.
“I think Gulf sovereign wealth funds are next [for setting up such teams]. Think about PIF, Vision 2030 and the sorts of things they’re moving towards. It very much sits within that space: the future of mobility, autonomous vehicles, robotics and AI,” Mr Nahal said.
He added: “From a macroeconomic perspective, we’re not seeing the same growth we did decade after decade from the 1950s to the 1990s. We are living in a world characterised by the 3 ‘Ds’ – disruption, notably technological disruption; demographics, and, debt, which is excessive in many parts of the world.
“Because of this, we’re finding investors increasingly need to think about establishing a longer term shopping list.” Asset managers AXA and Credit Suisse have even established dedicated robotics and AI funds to provide greater exposure to their clients, he added.
Virtual and augmented reality was the best performing business category in BoAML’s latest monthly Theme Watch report, with performance up 30.8 per cent on an annualised basis in November, according to Mr Nahal.
Robotics and AI was the second best performer, up 18.2 per cent, followed by the ‘bottom billions’ or microfinance sector, which was up 15.5 per cent.
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The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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Abandon
Sangeeta Bandyopadhyay
Translated by Arunava Sinha
Tilted Axis Press
Killing of Qassem Suleimani
