Related Articles

• 
  Is market turbulence a crisis or opportunity?

  12 May 2025

  

   

  Periods of market turbulence often provoke fear, hesitation and retreat. Yet history shows that such phases, while undeniably testing, also serve as fertile ground for innovation, repositioning and growth. For those with strategic foresight, disciplined risk management and a human-centric ethos, downturns can offer more than survival: they present an opportunity to thrive.

  As an executive deeply involved in risk governance and financial innovation, I have long observed how resilient strategies emerge not despite adversity, but because of it. In this piece, I will reflect on how downturns can be transformed into turning points for both investors and entrepreneurs, drawing lessons from global markets as well as the unique dynamics of the UAE and broader Middle East.

  Investment strategies in downturns: discipline over reaction

  Downturns typically trigger indiscriminate sell-offs, creating mispriced assets and panic-driven exits. This emotional volatility, however, creates a landscape in which structured, forward-looking investment strategies can flourish.

  For investors, the priority should be to reassess portfolios with a clear view on risk tolerance, time horizon and liquidity needs:

  • Asset rebalancing: Long-term investors may find it opportune to reallocate towards undervalued equities, high-quality fixed income, or inflation-resilient assets. Historical downturns, from the global financial crisis to the Covid-19 crash, have shown that disciplined dollar-cost averaging and rebalancing can significantly enhance long-term returns.
  • Alternative assets: Real assets, such as infrastructure or real estate investment trusts (REITs), and commodities can serve as hedges in volatile inflationary environments.
  • Private equity and venture capital: For sophisticated investors, downturns may offer entry points into private equity and venture capital at favourable valuations. Startups and scaleups often accept more reasonable terms in uncertain times, and historical data shows that some of the most successful venture capital (VC) vintages followed periods of market stress.

  Risk mitigation, however, is essential:

  • Diversification remains the first line of defence.
  • Stress-testing portfolios for various macro scenarios, including stagflation, monetary tightening and geopolitical risk, should be standard practice.
  • Liquidity buffers must be maintained to manage redemptions or unforeseen personal financial needs.

  In the UAE, where family offices and sovereign wealth funds play a significant role, we see a growing interest in regionally diversified portfolios, with a focus on sectors such as clean energy, logistics and digital infrastructure – sectors positioned to benefit from Vision 2030 and broader Gulf transformation agendas.

  Entrepreneurship in adversity: the birthplace of bold ideas

  While some consolidate, others create. Market downturns often spur a new generation of entrepreneurs who identify gaps exposed by the crisis. Historically, some of the most impactful companies – Airbnb, Uber, WhatsApp – were launched during or immediately following downturns.

  In the UAE and broader Middle East, several dynamics favour venture creation during market resets:

  • Fintech and digital payments: Platforms such as Tabby and YAP have drawn regional and international funding by offering payment and banking solutions tailored to Gulf consumers. The regulatory support from the Abu Dhabi Global Market and Dubai International Financial Centre (DIFC) further accelerates fintech scale-up.
  • Healthtech and telemedicine: UAE-based Okadoc capitalised on post-pandemic shifts in healthcare delivery, showcasing how digital-first approaches can meet new regional demand.
  • Clean and renewable energy: The UAE’s Net Zero 2050 Strategy opens doors for ventures in solar, green hydrogen and smart grid optimisation. Public-private partnerships and accelerators such as Masdar enable innovation in sustainability.
  • AgriTech and food security: Startups such as Pure Harvest Smart Farms have demonstrated that even in resource-scarce environments, high-tech agriculture can scale successfully, addressing critical regional needs.
  • Logistics and e-commerce infrastructure: The exponential growth of e-commerce during Covid-19 created demand for smarter logistics solutions. Startups such as Fetchr and Trukker leveraged this need with tech-enabled delivery models.
  • Web3 and digital assets: Dubai’s VARA regulatory framework is a regional first, creating a clear and supportive environment for blockchain innovation and digital asset management, even amid global uncertainty in the sector.

  These examples show that even under pressure, the ecosystem in the UAE supports entrepreneurship through:

  • Government support: Programmes across the UAE – such as Hub71 in Abu Dhabi or DIFC Innovation Hub in Dubai – continue to provide funding, mentorship and regulatory pathways.
  • Investor appetite: Well-articulated business models in fintech, sustainability, healthtech and logistics continue to attract funding.
  • Regional resilience: The Gulf’s relative macroeconomic stability, energy-backed liquidity and demographic growth offer a unique buffer and growth runway for new ventures.

  However, launching a venture in a downturn is not without risk. Key mitigation strategies include:

  • Lean operations: Emphasising capital efficiency, iterative development and realistic runway expectations.
  • Market validation: Prioritising early market feedback over aggressive scaling.
  • Regulatory alignment: Ensuring the business is structured in accordance with evolving compliance and governance frameworks, particularly in regulated sectors like financial services.

  Historically, some of the most impactful companies – Airbnb, Uber, WhatsApp – were launched during or immediately following downturns

  Leadership at the crossroads: vision, culture and responsibility

  Market downturns are not only tests of capital – they are tests of leadership. A true leader demonstrates the ability to remain composed amid noise, uphold governance while embracing calculated risk and never lose sight of the human dimension of business.

  Visionary leadership in such times involves:

  • Cultural awareness: Understanding the national and organisational culture within which one operates is not a soft skill, but a strategic necessity. In the Middle East, this includes navigating regulatory nuance, relationship-driven business cultures and evolving expectations around environmental, social and governance (ESG).
  • Sustainability orientation: Downturns accelerate the shift toward long-term thinking. Investors and founders alike must align with ESG principles not as a checkbox, but as a pillar of long-term viability.
  • People-first mindset: Whether stewarding a portfolio or leading a new venture, the ability to care for, communicate with and empower people becomes the differentiator. Even in the most technologically advanced sectors, success is ultimately shaped by the people behind the systems.

  A call to engage, not withdraw

  Downturns are not the time to retreat into conservatism or wait for clarity that may never fully arrive. They are, instead, the ultimate environment to test one’s assumptions, refine one’s vision and act with conviction.

  Whether deploying capital, designing ventures or steering institutions, leaders must adopt a dual lens: caution informed by risk and courage fuelled by purpose. For those willing to engage with complexity, lead with empathy and plan with resilience, downturns may not be crises at all – they may be catalysts.

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13847463/main.gif

  MEED Editorial
• 
  Soudah tenders staff accommodation package

  12 May 2025

  

   

  Saudi Arabia’s Soudah Development Company (SDC) has invited firms to bid for a contract to develop an employee housing package at its Soudah Peaks project.

  Public Investment Fund (PIF)-backed SDC is the developer of Soudah Peaks, a mountain tourism destination set 3,015 metres above sea level on the kingdom's highest peak in the Asir region.

  According to Fathi Al-Asir, development procurement senior manager at SDC, the contractor housing package will be developed using a design, build, finance, operate and maintain model.

  "The package was tendered in March," Al-Asir told the ongoing MEED Saudi Gigaprojects 2025 Summit in Riyadh.

  Al-Asir also disclosed that SDC expects to tender the contract for the construction of the development's site-wide utilities package before the end of the year.

  Al-Asir said the utility infrastructure catering to Soudah Peaks will include one bulk supply point with a capacity of 380kV /132kV, two primary substations and 142 distribution substations.

  The development will also require 15 water storage tanks and pump stations. The tanks will have a storage capacity of 93,150 cubic metres, to cater to an expected demand of about 10,984 cubic metres a day (cm/d).

  A total of 14 sewage treatment plants are also planned, with a total capacity of 10,690 cm/d. The development will require 52 sewage lifting stations.

  The infrastructure package will also cover 24 mobile telecommunications or GSM (global system for mobile communications) towers and the relocation of eight existing GSM towers, as well as a package for the drainage culvert.

  In March, SDC appointed US-based engineering firm Aecom as the lead design consultant for the Soudah Peaks development.

  Aecom’s scope of work covers the design work for the first phase of the development.

  The masterplan covers an area of more than 635 square kilometres and consists of six development zones: Tahlal, Sahab, Sabrah, Jareen, Rijal and Red Rock. The development will have 2,700 hotel rooms, 1,336 residential units and 30 other attractions.

  The masterplan will be developed in three phases.

  The first phase will include the development of five of the six zones, namely Tahlal, Sahab, Sabrah, Rijal and Red Rock. 

  Jareen will be developed as part of the third phase, when the infrastructure and connectivity are fully established within the development.

  Launched in 2021, SDC is wholly owned by Saudi Arabia’s sovereign wealth vehicle, the PIF

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13865220/main5309.jpg

  Jennifer Aguinaldo
• 
  Diriyah offers fit-out opportunities worth $5bn

  12 May 2025

  

   

  Saudi Arabia's Diriyah Company expects fit-out works worth about SR20bn ($5.3bn) on several ongoing developments at its gigaproject in Riyadh to be available to the market.

  "We are expecting fit-out works worth about SR20bn across our portfolio, including retail, commercial, schools and other assets," Sharat Kumar, executive director of retail design and delivery at Diriyah Company, said at the MEED Saudi Gigaprojects 2025 Summit in Riyadh on 12 May.

  Kumar added that since the beginning of the project, Diriyah Company has awarded construction contracts worth over $20bn out of a total $63bn.

  The client is executing three masterplans, known as Diriyah, Wadi Safar and Wadi Hanifa.

  When asked about the project delivery challenges facing Saudi Arabia's official gigaprojects, Diriyah Company's chief projects officer, Matthew Boot, said: "Diriyah has devised a superblock strategy, where we combine assets for a particular development, and we have seen a positive response from contractors."

  Diriyah Company is continuing its multibillion-dollar contract awards this year. In April, MEED exclusively reported that the client had awarded an estimated SR4bn ($1.1bn) contract for a utilities relocation package for King Salman University, located in the second phase of the Diriyah Gate development (DG2).

  The contract was awarded to a joint venture of Beijing-headquartered China Railway Construction Corporation and China Railway Construction Group Central Plain Construction Company.

  Last month, MEED also reported that Diriyah Company had awarded an estimated SR5bn ($1.3bn) construction deal to build the Royal Diriyah Opera House.

  The contract was awarded to a joint venture of local firm El-Seif Engineering & Contracting, Beijing-headquartered China State Construction Engineering Corporation and Qatari firm Midmac Contracting.

  Tendering activity is also progressing on several other major schemes at Diriyah, including the King Khalid Road project, which passes through the development. The client received bids from firms in the second week of April for the main construction works on this project.

  The client is also expected to finalise the contract award soon for the Arena Block assets in the Boulevard Southwest section of DG2.

  Diriyah gigaproject

  The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it spans 14 square kilometres and combines 300 years of history, culture and heritage with hospitality facilities.

  The project will feature entertainment, retail, educational, business and residential areas, including hotels, food and beverage amenities and several museums.

  The mixed-use urban community will be created in the traditional Najdi architectural style, typical of ancient Saudi villages.

  The historic city of Al-Turaif is the centrepiece of Diriyah. Built in 1766, Al-Turaif was designated a Unesco World Heritage Site in 2010.

  Once complete, Diriyah will have the capacity to accommodate 100,000 residents and visitors.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13864695/main.jpg

  Yasir Iqbal
• 
  AI reshapes the future of cybersecurity

  12 May 2025

  

   

  Register for MEED’s 14-day trial access 

  In the fast-evolving space of cyber threats and cybersecurity, artificial intelligence (AI) is emerging as a force multiplier that raises both the scale and seriousness of cyber threats while equally enabling ever-greater sophistication in the tools and solutions used to combat such threats.

  In January, the UAE Cyber Security Council reported that cyberattacks targeting strategic sectors in the country had reached a count of more than 200,000 incidents daily, with many of the attacks coming from ‘persistent threat groups’ such as the notorious ‘BlackCat’ cyber gang.

  The threats are diverse, targeting everything from credit card transactions to identity verification processes, but the most common threat in 2024 was ‘phishing’ – cyberattacks using exploits in information technology (IT) and communications systems to lure individuals into either divulging sensitive information or accidentally providing a route for malware to enter their IT systems.

  AI-powered arms race

  Speaking to MEED, Daumantas Grigaravicius, head of Middle East at Netherlands-based payments solutions provider Adyen, explains that the days of crude ‘Nigerian prince’ scams are long gone and that “attackers now use AI to create flawless, personalised phishing emails and fake customer service chats, making scams nearly impossible to spot”.

  He highlights how in one serious incident in recent years in the UAE, “a group of fraudsters used deepfake audio and forged emails to impersonate a company director, tricking an employee into approving a $35m transfer for a fake acquisition”.

  Today, AI can make such scams appear “shockingly convincing”, and Grigaravicius advises that the best practice for businesses should be to both “verify financial requests via multiple channels and use AI tools to detect fraudulent activity”.

  The UAE reported that phishing scams accounted for 61% of the reported cyber security incidents in the country last year, and AI is increasingly being used to support phishing and ransomware attacks through social engineering tools, deepfake media and AI-enhanced malware.

  At any given time, AI-powered attack bots are also out there on the internet, “hacking accounts, testing stolen passwords, and scraping personal data at massive scale” to probe for weaknesses.

  Emerging AI-powered cyber threats are, in turn, leading to the development of a whole new generation of AI-powered cybersecurity tools to counter them.

  Grigaravicius notes how AI-powered fraud detection systems can now flag unusual patterns in real time, while AI-powered security software can “fight fire with fire […] adapting as fast as the attackers do, backed by strong multi-factor authentication to block them at the source”.

  The result is an AI-driven arms race that is generating a dizzying array of both threats and solutions, but one that businesses must master if they are to safeguard their digital services and assets.

  By upgrading infrastructure, enforcing better security and training more experts, businesses can stay ahead of evolving cyber risks

  Addressing infrastructure gaps

  While some cybersecurity weaknesses spring from a basic lack of awareness or the nature of the rising threats, other obstacles include institutional barriers, a lack of investment and talent gaps.

  In the 2024 Kyndryl Readiness Report, 43% of UAE and Saudi business leaders admitted their IT infrastructure was not future-ready, while the 2025 UAE Cybersecurity Report found that security misconfigurations caused 27% of incidents. Grigaravicius adds that “many companies lack multi-factor authentication, rely on manual processes, and fail to detect threats promptly”.

  However, there are positive signs. Grigaravicius notes that UAE businesses are fighting back by retiring legacy systems, introducing zero-trust security models and multi-factor authentication, and “investing more in AI-powered security tools to combat AI-driven fraud”. The UAE government is also “expanding data protection laws and drafting stricter AI governance to close legal gaps”.

  Cyber threats are a major concern for governments, with the UAE Cyber Security Council reporting that 30% of attacks in 2024 were directed at government targets. Acknowledging the rise in cyber threats, the UAE’s Telecommunications and Digital Government Regulatory Authority (TDRA) has implemented a dedicated strategy of proactive measures to enhance its cybersecurity framework.

  Across the GCC, a diversity of transaction systems and cybersecurity platforms can leave security gaps, while the lack of cross-border integration makes fighting back more difficult by making “fraud detection and data flow more vulnerable”, notes Grigaravicius.

  With each country having its own payment networks, security frameworks and regulations, cross-border protection becomes harder, while the degree of fragmentation creates inconsistencies and gaps in the cyber defences that cybercriminals can exploit.

  In 2021, the GCC established the Arabian Gulf System for Financial Automated Quick Payment Transfer (Afaq), a Real Time Gross Settlement System (RTGS) system with a view to streamlining the $2tn in cross-border transactions still handled by legacy banking networks in the region.

  As of 2024, Bahrain, Kuwait, Oman, Saudi Arabia and the UAE had all implemented the framework, and since 2022, a GCC Cybersecurity Ministerial Committee has convened to align cyber defences and ensure that businesses and governments are sharing real-time cyber threat intelligence.

  On top of cyberattacks that exploit human error, weak infrastructure, outdated security protocols, unpatched software, gaps in regulation and a shortage of cybersecurity talent can all leave organisations vulnerable at a system or institutional level to AI-driven cybersecurity threats.

  Nurturing cybersecurity talent is a particular must, with the UAE having notably taken productive steps by developing tech-focused visa schemes, cyber academies and AI talent programmes.

  The region’s trajectory is nevertheless positive, says Grigaravicius, who assesses that “AI threats are getting smarter, but so are the region’s defences. By upgrading infrastructure, enforcing better security and training more experts, businesses can stay ahead of evolving cyber risks”.

  Ongoing adaptation is a must, however, and in one way or another, all regional organisations and institutions will have to rise to the cyber challenge. As Grigaravicius notes: “AI is here to stay, for better or worse. The key is to stay ahead, stay sceptical and use AI smarter than the criminals do.”

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13851391/main.gif

  John Bambridge
• 
  Kahramaa awards $3.7bn Ras Abu Fontas contract

  12 May 2025

  Qatar General Electricity and Water Corporation (Kahramaa) has signed strategic and power-purchase agreements with QatarEnergy, Qatar Electricity & Water Company and Japan's Sumitomo Corporation in a consortium with Luluah Sky Energy to develop a new power generation and water desalination plant in Ras Abu Fontas.

  The plant will have an electricity production capacity of 2,400MW and water desalination capacity of 110 million gallons a day (MGD).

  The project will cost  QR13.5bn ($3.7bn), and is expected to provide about 23% of Qatar's total power and 20% of its water production once completed.

  "The agreement comes as part of Kahramaa's ongoing efforts to strengthen supply security and promote sustainability within the electricity and water sectors and is in alignment with Qatar National Vision 2030,"  the Qatar News Agency said.

  The new Ras Abu Fontas facility will help meet growing demand for energy and water, driven by the country's rapid population and economic growth.

  It will also enhance the efficiency of the national grid and support the integration of renewable energy sources, reflecting Qatar's commitment to developing a modern, sustainable energy infrastructure.

  The agreement includes a three-phase commissioning plan for the facility/

  The first power date is set for 25th April 2028, with 836MW of power coming online.

  The final water date is scheduled on 1st August 2028, to reach a final water capacity of 110MGD.

  The target full operations date is scheduled for 1st June 2029, with total power capacity reaching 2,400MW.

  This is the latest and largest in a series of contracts awarded by Kahramaa over the past several weeks.

  In late February, Kahramaa and QEWC signed a power-purchase agreement (PPA) for the peak electricity generation plant at Ras Abu Fontas.

  The total contractual capacity for the units is 511MW, with a total cost of approximately QR1.6bn ($439.5m). The peak power plant is scheduled to become operational by January 2027.

  Last week, the state utility also signed four contracts, which have a total combined value of approximately QR3.1bn ($850m),  for the construction of substations and overhead transmission lines.

  It awarded the contracts to the following firms:

  • Elsewedy Cables Qatar Company (local/Egypt)
  • Voltage Engineering (local)
  • Best/Betas Consortium (Turkey)
  • Taihan Cable & Solution (South Korea)

  Kahramaa said the projects aim to “meet electrical network demand in light of the country's fast-growing …urban development”.

  The contracts include the provision and installation of underground cables and overhead lines extending around 212 kilometres to connect these substations.

  Photo credit: Qatar News Agency

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13864651/main.jpg

  Jennifer Aguinaldo