Business Extra

Left holding the mic: Will shareholders still love Twitter and Facebook?

Shares in Facebook, Twitter, Apple, Amazon and Alphabet, the parent company of Google, all slid at the start of the week. But analysts said they won’t fall far.

This week, co-hosts Mustafa Alrawi and Kelsey Warner dig into the unfolding drama at the world’s biggest platforms and what it means for the future of US civility and shareholder sentiment.

The National’s social media editor Cody Combs lays out the partisan debates over anti-trust and censorship levied against Facebook prior to the events of January 6, and the fallout for Mark Zuckerberg’s company and other platforms as Big Tech’s role in the insurrection came to light.

Then, we hear from Mirabaud Securities head of research Neil Campling, on his outlook for Big Tech stocks in 2021 amid mounting risks. He shares his thoughts on whether break-ups are in the offing and, if so, how much room is left for these giants to grow (hint: a lot).

In this episode:
The role of social media (0m 37s)
Social media and politics (2m 02s)
Neil Camping on Big Tech stocks in 2021 (7m 34s)
What's the outlook for 2021? (15m 13s)

What the US-China economic rivalry means for the Middle East

China is expected to overtake the US to become the world’s biggest economy in 2028, five years earlier than previously anticipated, as it recovers faster from the coronavirus pandemic, the Centre for Economics and Business Research said. But what does it mean for the Middle East?

This week, co-hosts Mustafa Alrawi and Kelsey Warner unpack the complicated power dynamic between the world's two biggest economies, from trade and technology to energy and finance, and how it impacts the region.

In this episode:
The US-China economic tensions (0m 43s)
The green transition of China (3m 20s)
Middle East and China (5m 52s)
China's ambition for digitized currency (8m 49s)
UAE's link between US and China (12m 45s)

Read more on our website:

• China set to overtake US as the world’s biggest economy by 2028
• Markets welcome NYSE’s decision to reverse delisting Chinese telecoms firms
• Iraq confirms $2bn oil prepayment agreement with Chinese firm
• EU and China risk Washington reaction with new investment pact
• Tesla to deliver China-made Model Y SUVs this month
• Trump signs order prohibiting US investments in Chinese-linked firms
• Opinion: China will become the largest economy in a very different world

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Counting down 10 big business moments from 2020

This week, Business Extra takes a look back at the 10 biggest business moments from the UAE and beyond in 2020. Co-host Kelsey Warner is joined by The National’s personal finance editor, Felicity Glover, to count down.

In this episode:

1. Dr Rajesh Suri in February, delivering a message to residents from Cleveland Clinic Abu Dhabi as it prepared for the pandemic (1m 05s)
2. Naim Yazbeck of Microsoft UAE on the fate of the 9 to 5 in the WFH revolution (4m 41s)
3. Ian Ohan, founder and CEO of restaurant operator Krush Brands, on the impact of the delivery economy on small businesses (6m 36s)
4. Jennifer Scott, chairman of the Commons Project, describes a new, open market for data amid antitrust allegations against Big Tech (8m 37s)
5. The National’s business editor Massoud Derhally puts the Beirut port blast into historical perspective days after the explosion (11m 58s) 
6. Muhammad Albakri of IATA on how the legacy of aviation will be critical to its recovery after a summer of empty skies (14m 01s) 
7. The National’s senior business correspondent Michael Fahy describes how BR Shetty got caught (14m 59s)
8. Qamar Energy CEO Robin Mills on if 2020 marks the end of peak oil demand (16m 51s) 
9. Emirates Nuclear Energy Company chief executive Mohamed Al Hammadi explains why the UAE became a producer of nuclear energy (18m 57s)
10. Noor Sweid, partner at Global Ventures, predicts the sector most transformed by the pandemic - and why it’s the Middle East’s biggest investment opportunity (20m 39s)

How global trade will be remapped in the 2020s

Rising protectionism and technology are changing the shape of trade. To capitalise on emerging dynamics, unprecedented global cooperation is needed - with the UAE a critical hub.

Co-hosts Kelsey Warner and Mustafa Alrawi are joined this week by Feryal Ahmadi, chief operating officer of Dubai’s trade free zone at the Dubai Multi Commodities Centre. Ms Ahmadi maps out the scenarios for how trade will develop in the 2020s based on DMCC’s research and interviews with experts across eight key trade hubs including Dubai, Houston, Shenzhen, Silicon Valley and Zurich. DMCC, which oversees the trading of commodities from pulses to diamonds, has 17,500 member companies in its free zone.

In this episode:
DMCC and the future of trade (0m 40s)
UAE's opportunities in international trade (3m 41s)
Recommendations for businesses and governments (9m 38s)

Read more on our website:
• DMCC extends support package to help businesses deal with economic impact of Covid-19

• DMCC slashes set-up costs by 50% for diamond companies

• UAE has rolled out Dh388bn in economic support since pandemic began

• Sail of the century: Sweden to build world’s largest wind-powered ship

• EU seeks to forge improved relations with US under President Joe Biden

‘Adapt or die’: the UN’s corporate sustainability pioneer shares lessons of 2020

Arabesque Partners chairman Georg Kell speaks to Kelsey Warner this week on the future of responsible investing, including the role of artificial intelligence to drive decisions. As the founding director of the United Nations Global Compact, Mr Kell was a pioneer in defining and assessing environmental, social and governance factors that can drive corporate strategy and investment decisions to improve the state of the world. 

Since September 2016, Mr Kell has also chaired the Volkswagen Sustainability Council, an independent body that advises VW on issues of social responsibility and the future of mobility. The group was formed following the high-profile diesel emissions scandal. He jumped at the chance to serve on the council, and explains why coming out of the shadow of controversy, VW is now at a competitive advantage five years later.

Hosted by Mustafa Alrawi

In this episode:
Mustafa and Kelsey on ESG (0m 39s)
Where are we with sustainable finance? (2m 28s)
Arabesque and sustainable intelligence (7m 00s)
How to address biased machine learning (13m 52s)
The lessons learnt by Volkswagen (15m 15s)
Who gains and loses because of the ESG criteria (20m 06s)
Headlines (22m 29s)

Read more on our website:
• Airbnb and DoorDash IPOs may raise $6.2bn based on new price ranges

• UAE businesses bullish about returning to pre-Covid profitability by 2022

• Emirates to take delivery of 3 A380s as it prepares to launch premium economy

Noor Sweid on how to pitch start-up investors in a challenging time

What do Toyota, Disney, IBM and Airbnb have in common? They were started during – or right after – a crisis. Whether the Great Depression, the Second World War or the 2007-2008 global financial crisis, major struggles have led visionary founders to build some of the world's biggest, most durable companies. So what will 2020 yield?

Host Kelsey Warner is joined this week by Noor Sweid, founder and general partner at UAE venture capital firm Global Ventures, to discuss how entrepreneurs can capitalise on opportunity even during times of uncertainty.

In this episode:
What is Global Ventures? (0m 50s)
Investor appetite in the UAE (1m 59s)
What tech will stay after 2020? (4m 57s)
The change in dynamic between the founder and the investor (7m 09s)
The path to liquidity (11m 33s)
Headlines (13m 25s)

Read more on our website:
• UK retailer Debenhams to close, putting 12,000 jobs at risk

• Shanghai replaces London as the most connected city in the world, according to Iata

• Tony Hsieh, former 'visionary' CEO of Zappos, dies at 46

What changes to UAE company foreign ownership rules mean for you

The changes to the UAE Commercial Companies' law, which were announced allowing almost all companies to be fully foreign owned, have been widely welcomed. The idea of further opening up the economy to foreign investment will have obvious potential benefits such as attracting more FDI and spurring business activity. This has been an evolution of a number of steps over the last 17 years or so, making doing business in the UAE easier for all nationalities. 

The changes to the law will prove interesting in terms of how it will impact the well established ecosystem of onshore and offshore jurisdictions in the country and it will take some time after the amendments are in effect for the landscape to be fully realised.

Host Mustafa Alrawi discusses this landmark development with Omar Momany, partner and head of the corporate and commercial practice group at Baker McKenzie Habib Al Mulla, and another partner at the leading law firm, Hani Naja, who is also a corporate and commercial legal expert.

In this episode:
The commercial companies law (0m 32s)
The changes the new law would bring (2m 06s)
The onshore and offshore ecosystem (9m 10s)
Why does owning 100% of a company matter? (14m 08s)
What we don't know yet (20m 47s)
Headlines (25m 23s)

Read more on our website:
• Oil surges to an eight-month high on vaccine hopes

• Adnoc to put Dh160bn into UAE economy over the next five years

• Amazon grows storage capacity in the UAE to meet demand

What mobility looks like post Covid-19

The nexus of technology has had a real impact in the way we work and live. What happens when the disruptors have to move even more quickly than they expected? This week, Richard Sikkel, chief executive of Massar Solutions, and Tino Waked, regional general manager of Middle East & Africa at Uber, join Mustafa Alrawi to talk about all things transportation.

In this episode:
What happens when the disruptor becomes disrupted? (0m 41s)
The changes the pandemic has brought (5m 28s)
How Uber moved fast to face the challenge (10m 15s)
The future prospects for Massar Solutions and Uber (11m 33s)
Headlines (15m 52s)

Read more on our website:
• Opec+ weighs options as markets hope for extension of production cuts

• World leaders to address most pressing global challenges at upcoming G20 summit

• Bitcoin retraces 2017 record highs amid pandemic uncertainty

Huawei's Paul Scanlan on 5G and why it is better

Mustafa Alrawi and Kelsey Warner talk to Huawei's chief technology officer, Paul Scanlan, on the advantages of 5G and why it is better for the future of telecommunication.

In this episode:
Let's talk 5G! (0m 43s)
How is 5G different? (1m 55s)
Living with 5G (5m 32s)
Why is Huawei number one in 5G tech? (9m 24s)
Why is China ahead of the curve? (15m 00s)
Working under the Trump and the new administration (20m 13s)
Information security and Huawei 5G (21m 58s)
Headlines (25m 20s)

Read more on our website:
• Huawei to appeal Sweden’s ‘draconic’ 5G ban

• Investcorp sells US residential properties for $900m

• Britain's jobless rate rises to 4.8% while redundancies reach record high

• Adnoc to explore potential of new fuels such as hydrogen

The US election and the markets

Uncertainty in Pennsylvania is a potential “perfect storm” for a contested election that would send shockwaves through the markets, but investors are otherwise betting on a Joe Biden win.
 
“The market is a bit pre-positioned for the Democratic wave, unlike last time,” John Hardy, head of FX strategy at Saxo Bank, said, while adding that markets were in no way prepared for President Trump's victory in 2016. He joins co-hosts Mustafa Alrawi and Kelsey Warner this week to outline market scenarios depending on the election’s outcome.

In this episode:
How are the markets affected in the run up to the election? (1m 16s)
Biden win and blue wave scenario (4m 39s)
Where does coronavirus fit in? (7m 54s)
The power of Pennsylvania (9m 35s)
The possibility of a contested election (12m 03s)
The three scenarios (14m 06s)
Markets don't like uncertainty (17m 10s)
Headlines (20m 10s)

Read more on our website:
• Russia’s Sberbank seeks more partnerships with Middle Eastern sovereign investors

• Global travel restrictions mean 174m travel and tourism jobs are at risk

• Why India's poor air quality is taking a toll on its economy