Since the start of the early 2000s, technology has transitioned from a luxury product to a necessity.
The 21st century has witnessed companies that emerged during the tech bubble turning into core providers of many essential daily activities.
Seven out of the top 10 organisations by market cap are tech companies, highlighting the remarkable growth the overall tech space has seen over the past 20 years.
Making this even more impressive is the fact that January was the best start to the year for the tech industry since 2001.
More than 20 years on, tech companies are still able to attract investors, despite a relatively challenging macro environment.
While some might tie the recent performance to seasonality effects, other forces in play would also have played a crucial role in the record uptick.
We’ll focus on some of these reasons, including post-Covid China, shifting from innovation to efficiency and the emergence of artificial intelligence.
2022 was quite a challenging year from a business perspective.
Central banks around the world were left to deal with the aftermath of Covid-19 and stimulus programmes by increasing interest rates and inhibiting further economic growth.
This is highly relevant to tech stocks, which are seen as growth assets whose value depends on future cash-flow generation.
So once the outlook begins to worsen, prices directly reflect that.
On top of that, many tech companies deal with China somewhere along their supply chain. The second-largest economy in the world only managed to get out of the coronavirus loop around the end of last year when it eased zero-Covid policies.
Due to these restrictions, productivity has been largely affected, decreasing the already complicated operational capacities of tech companies.
As China enters its post-Covid stretch, significant value from supply chains will be directly unlocked, resulting in a more promising outlook.
One example could be Apple’s ties with production in China, which have reduced over the past few years.
When looking over the past couple of decades, the tech industry has been mainly known for its innovation and growth.
From the first iPhone to the rise of social media platforms and other digital services, such products are now well ingrained in our daily lives.
Much of the value of tech companies has been derived from their ability to provide offerings that have added a layer of simplicity or efficiency; others have been punished by their failure to adapt to cutting-edge technology (yes, we’re looking at you Blackberry and Nokia).
In the last months of 2022 and going into the early days of this year, tech companies have collectively shifted their strategy in light of lower earnings.
Instead of accelerating further innovation and technological advancements, these companies have resorted to cost-cutting.
Meta, Amazon and Alphabet have all initiated workforce reductions; while this might seem a colossal hit for such organisations, it actually provides an interesting insight into their way of work going forward.
The transition from releasing newer technology to increasing organisational efficiency highlights a possible change of mindset, which hovers around sustainable growth, regardless of short-term macro conditions.
This will definitely increase attractiveness for investors, whether retail or institutional.
Despite this shift towards efficiency, innovation still plays a fundamental role in creating value for tech companies.
One area that has witnessed notable growth is the emergence of AI platforms and tools.
Both services for retail users and add-ons and extensions for enterprise products are expected to add about $16 trillion to the global economy leading to 2030, according to a study by PwC.
Tech companies, as well as specialised firms, have been making efforts to position themselves to benefit from this growing market.
Alphabet’s recent AI slip has had massive implications on its stock price. This only shows the extent of anticipation and potential that such a product would present.
Focusing on the short term, there is no denying that the macro environment can most definitely affect the sector’s performance.
While the US Fed has returned to “normal” rate hikes, the number of such increases, as well as the stance that officials communicate will tilt the sentiment one way or the other.
As for the long term, the tech sector has shown glimpses of what it could further contribute, not only with regard to its own products, but also to most other sectors.
The recent tech rally might primarily be a result of a change of investor sentiment, but other developments are bound to support growth in the years ahead.
Mark Chahwan is co-founder and chief executive of wealth management platform Sarwa
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The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
UAE currency: the story behind the money in your pockets
Profile
Name: Carzaty
Founders: Marwan Chaar and Hassan Jaffar
Launched: 2017
Employees: 22
Based: Dubai and Muscat
Sector: Automobile retail
Funding to date: $5.5 million
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
RESULTS
5pm: Maiden (PA) Dh80,000 1,200m
Winner: Shafaf, Sam Hitchcott (jockey), Ahmed Al Mehairbi (trainer)
5,30pm: Wathba Stallions Cup Handicap (PA) Dh70,000 1,200m
Winner: Noof KB, Tadhg O’Shea, Ernst Oertel
6pm: The President’s Cup Listed (TB) Dh380,000 1,400m
Winner: Taamol, Jim Crowley, Ali Rashid Al Raihe
6.30pm: The President’s Cup Group One (PA) Dh2,500,000 2,200m
Winner: Rmmas, Tadhg O’Shea, Jean de Roualle
7pm: Arabian Triple Crown Listed (PA) Dh230,000 1,600m
Winner: Ihtesham, Szczepan Mazur, Ibrahim Al Hadhrami
7.30pm: Handicap (PA) Dh80,000 1,400m
Winner: AF Mekhbat, Antonio Fresu, Ernst Oertel
Points to remember
- Debate the issue, don't attack the person
- Build the relationship and dialogue by seeking to find common ground
- Express passion for the issue but be aware of when you're losing control or when there's anger. If there is, pause and take some time out.
- Listen actively without interrupting
- Avoid assumptions, seek understanding, ask questions
RESULT
Australia 3 (0) Honduras 1 (0)
Australia: Jedinak (53', 72' pen, 85' pen)
Honduras: Elis (90 4)
Zayed Sustainability Prize
Teachers' pay - what you need to know
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
'Moonshot'
Director: Chris Winterbauer
Stars: Lana Condor and Cole Sprouse
Rating: 3/5
