Museums showcasing ancient and modern art are popping up across the region. Department of Culture and Tourism - Abu Dhabi
Museums showcasing ancient and modern art are popping up across the region. Department of Culture and Tourism - Abu Dhabi
Museums showcasing ancient and modern art are popping up across the region. Department of Culture and Tourism - Abu Dhabi
Museums showcasing ancient and modern art are popping up across the region. Department of Culture and Tourism - Abu Dhabi

The emergence of a GCC creative economy


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In 18th century Paris, the Louvre, a former residence of the French royal family, was opened to the public as a museum, beginning the story of arguably the world's most famous cultural institution. It is now the largest museum on the planet and plays a key role in making France the most visited country in the world.
In 2017, a new branch of the institution came to the Middle East, with the opening of Louvre Abu Dhabi – now one of Abu Dhabi's most recognisable landmarks.
Throughout history, governments have used culture and the arts to tell the world about the uniqueness and vibrancy of the societies they govern. They also play an important role domestically in creating social and cultural ties, as well as jobs across a number of sectors. The investment definitely pays off. Unesco estimates that the global value of the creative economy is more than $2.2 trillion annually.

The Louvre Abu Dhabi was designed by architect Jean Nouvel. CCI
The Louvre Abu Dhabi was designed by architect Jean Nouvel. CCI
Syria's tourism industry was estimated to contribute 12 per cent of the nation's GDP in 2010

In an interview yesterday, Mohamed Al Mubarak, chairman of Abu Dhabi's Department of Culture and Tourism, announced that the emirate will invest $6 billion in culture and the creative industries over the next five years. This will see the opening of new western institutions, including the Guggenheim Abu Dhabi, which will bring to the Middle East a rotation of the most important works of contemporary art.
The strategy will entail a wider push to make the UAE's cultural sector part of its post-oil diversification programme. From gaming to media, a target of the new investment plan is to create 16,000 new jobs in the industry, and bring a new generation of creative talent into the country.
In recent years, GCC nations have been investing to highlight the uniqueness of Gulf heritage and culture. In the UAE, the coming Zayed National Museum will highlight 200,000 years of Emirati history. Saudi Arabia's National Transformation Program includes plans to develop 13 museums.

The cultural and economic importance of showing the world the uniqueness of Arab culture extends to all corners of the region. In some parts, instability and economic difficulties have hampered the industry.
Syria's tourism industry, built on its rich cultural offering, was estimated to contribute 12 per cent of the nation's GDP in 2010. Since the civil war, this pillar of the country's economy, and a vital source of hard currency, has dried up.

Other countries, such as Egypt, are addressing lower tourism numbers, worth almost $25bn in 2018, with modernisation programmes. This year, Egypt opened the Grand Egyptian Museum, a vast complex to relieve the world-renowned but overflowing Cairo Museum. 
Numbers demonstrate the economic profitability of an investment in culture and the creative industry. But there are deeper, civilisational aims, too. Part of Abu Dhabi's emerging cultural landscape will be the new Abrahamic Family House, a site that includes a new mosque, church and synagogue, intended to be an investment in a civic identity built on tolerance.
The UAE's economic ascent over recent decades has been remarkable. Now, it is turning its attention to a task as grand as civilisational progress, built on pride of heritage, highlighting how today's society is more open than ever before.

Titanium Escrow profile

Started: December 2016
Founder: Ibrahim Kamalmaz
Based: UAE
Sector: Finance / legal
Size: 3 employees, pre-revenue  
Stage: Early stage
Investors: Founder's friends and Family

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

Second Test, Day 2:

South Africa 335 & 75/1 (22.0 ov)
England 205
South Africa lead by 205 runs with 9 wickets remaining