Investcorp, the biggest alternative asset manager in the Middle East, is optimistic about US growth during Donald Trump’s second stint in the White House and improving prospects for investments across regions, but geopolitics and inflation could derail investment momentum, its executive chairman has said.
“I believe it's a great moment and we are optimistic,” Mohammed Alardhi told The National in an interview on the sidelines of the World Economic Forum in Davos. “The American economy continues to be strong and I think it will do much better in 2025.”
The investment environment has improved in the past two years, with better market activity, private equity investments rising, initial public offerings bouncing back and the chances of a global recession sharply dropping from 70 per cent to 30 per cent.
“Since President Trump won, [and] even before the inauguration, we started to see the positiveness actually reflecting in the market. There are more activities, there is more confidence with investors,” Mr Alardhi said.
Risks remain
It is however, not all rosy for investment prospects. Challenges remain, including geopolitics amid the continuing Ukraine-Russia war and sticky inflation that has forced central banks around the globe to increase interest rates.
“I think geopolitics continues to be a big risk, for sure, because there are still a lot of flashpoints around the world,” he said. “If inflation [turns] 180 degrees and starts coming back again because of different dynamics, [then] that can be a really big risk.”
I think geopolitics continues to be a big risk, for sure, because there are still a lot of flashpoints around the world
Mohammed Alardhi,
executive chairman of Investcorp
Some of Mr Trump's policy priorities, including imposing sweeping tariffs, also present challenges and could disrupt global trade flows, which in turn could dampen investment momentum.
“Will tariffs go [up] like the President Trump has spoken about them? If they do, then there are ramifications with that,” Mr Alardhi said.
The issue of migration and deportations from the US is also concerning as migrant workers add to the productivity of American companies, he said. “We have companies that have migrants working in them.”
On Monday, Mr Trump refrained from using executive orders to impose higher tariffs on imported goods, although he said during his inaugural address that he will be asking federal agencies to scrutinise current US trade policies and its relations with the rest of the world including China, Canada and Mexico.
The broader view of the market, Mr Alardhi said, is that “President Trump and his administration is going to look at the market and see what works and what doesn't work because at the end, they really are pro-growth”.
“They don't want too many regulations, they don't want bureaucracy, and they want to have a good, efficient and attractive tax system. So, all in all, we are optimistic,” he added.
Palestine, Lebanon and Syria reconstruction
Investcorp, which counts Abu Dhabi’s Mubadala Investment Company among its shareholders, is known for its shareholding in Tiffany & Co and Gucci during its early years of investing. It has grown to become a global investment powerhouse and has raised funds from global financiers to invest across sectors and countries.
Mr Alardhi sees opportunities for the private sector to get involved in the reconstruction of Palestine and Lebanon after 15 months of war with Israel that destroyed infrastructure in Gaza and affected large parts of neighbouring Lebanon. The ousting of Bashar Al Assad’s regime has also opened Syria up to the private sector, which could help the rebuilding process.
“They need infrastructure, and they need health care and education. Those three countries are … great opportunities,” he said.
Pooling the resources of institutions such as the Islamic infrastructure bank, as well as the Arab Development Fund, with private capital can ensure that the infrastructure being built will position these countries for growth.
Gaza needs housing, road infrastructure, ports and airports and its reconstruction alone will require up to $50 billion over the next decade, according to analysts. About 46,900 people have been killed in the Israeli bombings, with more than twice that number injured, according to Gaza's health authorities. Most of the Palestinian enclave's 2.3 million people have been displaced and vast built-up areas have been reduced to rubble.
“Governments obviously, all over the region, need to take the lead in this, but I think public-private partnership in this is a great opportunity,” Mr Alardhi said. The involvement of governments in the PPP deals will ensure de-risking for the private sector and will also help projects run efficiently and make them commercially viable. “I think the private sector is a lot more set for that kind of thing,” he added.
$100 billion asset target
Established in 1982, Investcorp invests across different asset classes through its six business lines: private equity, real estate, absolute return investments, infrastructure, credit management and strategic capital.
The company, which maintained a brisk pace of acquisitions through the Covid-19 pandemic, has continued its aggressive portfolio expansion since. Its assets under management have grown to $55 billion and it aims to boost it to $100 billion by investing in areas including the Americas, Europe, and the broader Asia region, including the Middle East.
Last year, Investcorp reorganised its business verticals and made top-management changes to ensure profitability and growth. It is now present in the right markets, invests in the right asset classes and has streamlined its strategy to eliminate silos from all its businesses, Mr Alardhi said.
“By the end of this year, we should be just north of $60 billion [in AUMs],” he said, adding that growth is not going to be “as steep as we did in the last 10 years”, but it will continue to maintain a pace where it can be efficient and rewarding for all shareholders.
Transforming Gulf capital markets
Capital markets in the UAE, the Arab world’s second largest economy, as well as in the broader six-member economic bloc of the GCC have grown rapidly over the past few years and have opened new avenues for investments.
“The capital markets are really transforming. They are becoming more efficient. Governments are ensuring that privatisation deepens the markets here,” he said.
“I think Abu Dhabi in particular, has really done very well, and it's becoming an important financial hub in the region,” he said. Investcorp has listed its subsidiary Investcorp Capital on the ADX because it expects the bourse to continue to grow and attract more companies and capital, he added.
Tech investments and Asia focus
Mr Alardhi remains bullish about technology investment and said the company plans to build on almost two decades of success and will continue to seek opportunities to expand its technology portfolio globally.
“What helped us is that we've been investing in technology now for almost 17 [or] 18, years. We've done it in Europe, we've done it in the US and we're doing it in the Gulf,” he said.
In 2022, Investcorp, through one of its subsidiaries, invested in Saudi Arabia-based NourNet, a connectivity, cloud, cybersecurity and managed services provider that Mr Alardhi said is “bridging east and west” in that space.
In September 2023, Investcorp also led a $100 million funding round for Trukker, an Uber-like digital network for lorries and pick-up trucks in the Mena region. It is buying 100 electric trucks from China to service the region, he said. “We've invested in companies that are changing the dynamics of trade and co-operation between regions.”
Markets in Asia are also a central plank of Investcorp’s investment strategy, he said. “Our focus on Asia is really big, whether it is India or China, South-East Asia or North China or North Asia, Japan, Korea [as well as] Malaysia, and Indonesia,” he said.
Within Asia, fundamentals of China in particular have not changed and it still remains a huge market and a big economy where a lot of innovation is taking place, Mr Alardhi said.
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UAE currency: the story behind the money in your pockets
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
McIlroy's recent struggles
Last six stroke-play events (First round score in brackets)
Arnold Palmer Invitational Tied for 4th (74)
The US Masters Tied for 7th (72)
The Players Championship Tied for 35th (73)
US Open Missed the cut (78)
Travellers Championship Tied for 17th (67)
Irish Open Missed the cut (72)
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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The 90th Academy Awards will be aired in the UAE from 3.30am on Monday, March 5 on OSN, with the ceremony starting at 5am
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
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Engine: four-litre V6 and 3.5-litre V6 twin-turbo
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What is dialysis?
Dialysis is a way of cleaning your blood when your kidneys fail and can no longer do the job.
It gets rid of your body's wastes, extra salt and water, and helps to control your blood pressure. The main cause of kidney failure is diabetes and hypertension.
There are two kinds of dialysis — haemodialysis and peritoneal.
In haemodialysis, blood is pumped out of your body to an artificial kidney machine that filter your blood and returns it to your body by tubes.
In peritoneal dialysis, the inside lining of your own belly acts as a natural filter. Wastes are taken out by means of a cleansing fluid which is washed in and out of your belly in cycles.
It isn’t an option for everyone but if eligible, can be done at home by the patient or caregiver. This, as opposed to home haemodialysis, is covered by insurance in the UAE.
KILLING OF QASSEM SULEIMANI
The five pillars of Islam
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
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
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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Normcore explained
Something of a fashion anomaly, normcore is essentially a celebration of the unremarkable. The term was first popularised by an article in New York magazine in 2014 and has been dubbed “ugly”, “bland’ and "anti-style" by fashion writers. It’s hallmarks are comfort, a lack of pretentiousness and neutrality – it is a trend for those who would rather not stand out from the crowd. For the most part, the style is unisex, favouring loose silhouettes, thrift-shop threads, baseball caps and boyish trainers. It is important to note that normcore is not synonymous with cheapness or low quality; there are high-fashion brands, including Parisian label Vetements, that specialise in this style. Embraced by fashion-forward street-style stars around the globe, it’s uptake in the UAE has been relatively slow.
Match info
Bournemouth 0
Liverpool 4 (Salah 25', 48', 76', Cook 68' OG)
Man of the match: Andrew Robertson (Liverpool)
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