Despite relatively low levels of general awareness and knowledge about its applications in the Middle East and North Africa, blockchain technology is rapidly gaining momentum. Whether the region chooses to step up its adoption depends largely on the availability of regulatory frameworks, an enabling ecosystem as well as confidence in the added value and security the technology offers.
New economic activities, cost reduction, transparency and security represent the main benefits encouraging public and private sector organisations to adopt blockchain technology. While many expect it to revolutionise numerous sectors, it is still in its "proof of concept" stage and yet to go mainstream. This is good news for a region where several countries are struck by a prolonged socio-economic impasse, whereby the advent of blockchain could mark a great opportunity to make a noticeable change.
Globally, blockchain is having an impact on major sectors with pilot projects in place to evaluate its feasibility. Nations such as the US, Canada, China, Japan and countries in Western Europe are witnessing impressive growth in blockchain investments.
In an effort to develop a global supply chain platform, enterprise software giant SAP was one of the first few to establish a blockchain consortium comprising firms such as HP, Intel, UPS and Airbus. Today, dozens of such consortiums exist globally, bringing together businesses from various sectors such as banking, transport and hospitality, among others.
Blockchain solutions have yet to expand into a full-blown implementation in the Mena region or even globally. However, our region has begun embracing the transformative technology, which promises a positive impact on local communities and economies.
Blockchain has yet to go mainstream. This is good news for a region where several countries are struck by a socio-economic impasse
The proliferation of blockchain in the region has been mainly seen in crypto, NFTs and the financial services sector. Being an early adopter, the sector is leveraging the technology in banking, remittances, securities and investments.
Vast blockchain spending is expected to focus on manufacturing, retail and professional services sectors in the years to come. IT and business services will also account for the majority of all blockchain spending this year. Other sectors such as food and health care can also benefit from the technology.
Poverty, conflict, unemployment, poor quality of education and scarcity of resources such as electricity are some of the most common socio-economic issues facing a number of countries in the Mena region today. But where there are challenges there are bound to be opportunities as well, and there is little doubt a number of sectors stand to benefit from the so-called Web3 applications.
Governments, for instance, can use blockchain for record keeping, from real estate transactions to student loan disbursements and tracking of humanitarian aid. Such use cases may reduce corruption, fraud and cost by steering away from the obscurity of typical government transactions and paper use. Port authorities around the globe, for instance, have been using the technology to develop tamper-proof methods to track shipments. The goal is to ensure payments reach the right parties, eliminating fraudulent accounts and money laundering.
Corruption is such an all-pervasive problem in several countries in the Middle East, particularly conflict-ridden ones, that, even though donors want to support humanitarian efforts, they are often hesitant to do so, fearing misuse of donations. Blockchain offers donors and philanthropies a high level of transparency about how their contributions are being distributed among beneficiaries. The technology is likely to amplify donations towards various causes, from food and medical supplies to education and infrastructure. In effect, this move could alleviate poverty and improve the quality of life in underprivileged communities.
Another form of corruption is piracy. Anti-piracy organisations and local authorities are working hand-in-glove to crack down on counterfeit music, films and other products. Purchasing songs and music using cryptocurrency could eliminate copyright infringement. As a result, an enabling environment for budding artists could emerge, allowing them to reach their audience directly without bearing the cost of distributors.
Blockchain can also serve as a global platform for patients’ medical records, eliminating the risk of hacking or deletion. A decentralised ledger of medical data may help provide the necessary insights to fight disease, while supporting the allocation of humanitarian aid in war-torn countries.
Land ownership records in our region, too, are vague and susceptible to tampering through bribery. Blockchain allows tracking of land ownership history, verifying registrations and running background checks on payments, title deeds and taxes. In fact, in more developed markets such as the UAE, real estate is being tokenised as a means of trade. Landlords can now issue blockchain-based tokens, which represent the value of their shares in certain assets. In addition, many developers and real estate agencies have started selling land and virtual properties as NFTs.
Another major challenge, particularly in countries suffering from unrest or emerging from it, has been the lack of regular power supply. But with the help of the technology, consumers can share their energy with their neighbours for a fee.
This is a useful option to have not just in unstable environments but in stable ones too, where a consumption model called the "sharing economy" is becoming increasingly popular, particularly among millennials. As the short-term lease of some products and services gradually replaces full ownership by a single person or entity, the use of blockchain can yield positive results for Mena-based businesses and individuals while tackling pollution and saving resources.
A new technology becomes infinitely more important if it can enable financial inclusion. And blockchain has proved to be handy for lenders who want to extend micro-loans to people in disadvantaged communities with no access to banking services. Street vendors, for instance, will need minimal financial support to set up food stalls. The technology allows micro entrepreneurs to borrow money without the need for the thorough credit checks currently required by banks, leading to a reduction in unemployment.
According to the World Bank, 1.7 billion people around the globe are unbanked. But for those living in remote areas or conflict zones, where banks are not present, blockchain can come in handy. The technology also facilitates faster and more cost-efficient transactions such as remittances, which many families across the region rely on to secure a decent living.
Furthermore, consumers can track their foods from farm to counter. Of particular interest to the Middle East, consumers might be able to tell whether the food is Halal-based on food source and preparation methods. They can also verify and ensure various aspects of food security and quality or the source of food contamination.
The potential benefits of the technology, therefore, are amply clear. But in order to perfect it, one needs to be patient.
When a new medicine is produced or an innovative therapy is developed, it undergoes a series of rigorous tests and approvals before being administered to patients. It may take months and even years before tangible benefits materialise. Even the most promising innovations will face obstacles throughout their pilot phase. Blockchain may have emerged nearly 15 years ago. But no different than a groundbreaking medication en route to achieving its full potential, this technology appears to be a promising panacea for a set of socio-economic issues our region is facing.
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
%3Cp%3EMATA%0D%3Cbr%3EArtist%3A%20M.I.A%0D%3Cbr%3ELabel%3A%20Island%0D%3Cbr%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
ESSENTIALS
The flights
Etihad (etihad.com) flies from Abu Dhabi to Mykonos, with a flight change to its partner airline Olympic Air in Athens. Return flights cost from Dh4,105 per person, including taxes.
Where to stay
The modern-art-filled Ambassador hotel (myconianambassador.gr) is 15 minutes outside Mykonos Town on a hillside 500 metres from the Platis Gialos Beach, with a bus into town every 30 minutes (a taxi costs €15 [Dh66]). The Nammos and Scorpios beach clubs are a 10- to 20-minute walk (or water-taxi ride) away. All 70 rooms have a large balcony, many with a Jacuzzi, and of the 15 suites, five have a plunge pool. There’s also a private eight-bedroom villa. Double rooms cost from €240 (Dh1,063) including breakfast, out of season, and from €595 (Dh2,636) in July/August.
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
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
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
MEYDAN CARD
6.30pm Al Maktoum Challenge Round-1 Group One (PA) US$65,000 (Dirt) 1,600m
7.05pm Handicap (TB) $175,000 (Turf) 1,200m
7.40pm UAE 2000 Guineas Trial Conditions (TB) $100,000 (D) 1,600m
8.15pm Singspiel Stakes Group Two (TB) $250,000 (T) 1,800m
8.50pm Handicap (TB) $135,000 (T) 1,600m
9.25pm Al Maktoum Challenge Round-1 Group Two (TB) $350,000 (D) 1,600m
10pm Dubai Trophy Conditions (TB) $100,000 (T) 1,200m
10.35pm Handicap (TB) $135,000 (T) 1,600m
The National selections:
6.30pm AF Alwajel
7.05pm Ekhtiyaar
7.40pm First View
8.15pm Benbatl
8.50pm Zakouski
9.25pm: Kimbear
10pm: Chasing Dreams
10.35pm: Good Fortune
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
MATCH INFO
Karnatake Tuskers 114-1 (10 ovs)
Charles 57, Amla 47
Bangla Tigers 117-5 (8.5 ovs)
Fletcher 40, Moores 28 no, Lamichhane 2-9
Bangla Tiger win by five wickets
How%20to%20avoid%20getting%20scammed
%3Cul%3E%0A%3Cli%3ENever%20click%20on%20links%20provided%20via%20app%20or%20SMS%2C%20even%20if%20they%20seem%20to%20come%20from%20authorised%20senders%20at%20first%20glance%3C%2Fli%3E%0A%3Cli%3EAlways%20double-check%20the%20authenticity%20of%20websites%3C%2Fli%3E%0A%3Cli%3EEnable%20Two-Factor%20Authentication%20(2FA)%20for%20all%20your%20working%20and%20personal%20services%3C%2Fli%3E%0A%3Cli%3EOnly%20use%20official%20links%20published%20by%20the%20respective%20entity%3C%2Fli%3E%0A%3Cli%3EDouble-check%20the%20web%20addresses%20to%20reduce%20exposure%20to%20fake%20sites%20created%20with%20domain%20names%20containing%20spelling%20errors%3C%2Fli%3E%0A%3C%2Ful%3E%0A
The Dark Blue Winter Overcoat & Other Stories From the North
Edited and Introduced by Sjón and Ted Hodgkinson
Pushkin Press
THE SPECS
Engine: 6.0-litre, twin-turbocharged W12
Transmission: eight-speed automatic
Power: 626bhp
Torque: 900Nm
Price: Dh1,050,000
On sale: now
How to invest in gold
Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.
A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).
Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.
Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”
Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”
Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”
By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.
You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.
You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.
