Category: Finance

MasterCard launches Start Path Global Programme for Startups

Applications currently being accepted for Start Path Global.

In today’s crowded and competitive business environment, startups across the world are seeking global opportunities that will rapidly scale their business.

To address this need, MasterCard announced on Thursday 3rd September, the launch of Start Path Global ‘ a unique six-month partnership programme for startups that extends Start Path’s existing footprint to a greater number of countries globally in Asia Pacific, Middle East, Africa and Latin America.

The programme builds on Start Path’s efforts over the past 18 months having provided a variety of operational support, partnership, or investment for over 40 startups developing the next generation of commerce solutions, including Nymi, ZenCard, BillHop and Gone.

Start Path Global has also been designed to put the startup first: specifically, there is no need for a startup to relocate, no equity taken, immediate access to over 60 MasterCard experts, opens the door to pilot opportunities with MasterCard or MasterCard customers, and with full ownership for any intellectual property (IP) developed.

‘Start Path thoughtfully connects the right partners with the right startups to build the future of commerce together,’ said Stephane Wyper, Global Lead of MasterCard Start Path. ‘And now with our global expansion we will be able to target a broader range of startups and help them achieve success.

As Start Path expands internationally, startups will also benefit from access to Start Path Partners, a group of more than 20 leading companies in banking, retail, and technology including Rakuten, SAMSUNG CARD, TSYS, Target, Bank of Montreal, and Santander InnoVentures. Start Path Partners was created to provide carefully selected MasterCard customers with a first look at unique technologies and to offer startups a direct line into these corporates to test their solutions.

‘Working with MasterCard Start Path introduces us to disruptive, early stage companies that may have the answers to overcoming the critical pain points facing global commerce,’ said Mariano Belinky, Managing Partner at Santander InnoVentures. ‘Businesses graduating from the Start Path program should all be well prepared, proven, and ready to go to market. These are just the types of ambitious startup businesses we’d like to meet.’

How to Apply to Start Path Global:

Each quarter, MasterCard Start Path will recruit a new class of startups to embark on the six-month virtual programme. The call for applications to join the next class is open until September 18, 2015. To enter, visit: www.startpath.com. The programme is open to all non-US based startups who meet the following criteria:

• Solution live in market
• Established and experienced team
• Targeting sizeable market opportunity in the retail and financial technology space
• Demonstrable unfair advantage over competitors
• Seed or Series A investment recently secured

  Up to 18 promising startups will be invited to pitch their commerce solution to the MasterCard Start Path team in London on October 27 and 28, 2015. From there, a final list of six to eight companies will be chosen for the upcoming global class which will begin in early November. Members of the next class will also be invited to attend the first Start Path Global Partner Summit to be held in Berlin on November 16 and 17, where they’ll have the chance to engage with prospective Start Path Partners and industry thought leaders.

Deloitte: VAT in the GCC – Old News or New Chapter?

The recent action taken by the UAE to eliminate fuel subsidies with effect from 1 August 2015 ignited the debate on tax reform in the Gulf Cooperation Council (GCC) countries.

Whilst these countries are facing an increasing amount of pressure on their national budgets, every GCC government understands the urgent need for fiscal-sustainability in the long-term. This urgency, according to Deloitte’s latest report “VAT in the GCC – Old news or new chapter?” would be addressed if GCC governments could commit to the domestic implementation of a broad-based Value Added Tax (VAT) on goods and services.

According to Deloitte’s report, VAT is considered efficient, cheaper to operate, less open to fraud, and less likely to distort investment decisions by businesses than any other form of direct tax. This latter point is significant, as governments do not want to generate new revenue at the expense of investment by the private sector. Also since the majority of the cost of VAT falls on the consumer rather than on businesses, it is capable of balancing these potentially competing requirements.

“Faced with a need to raise additional government revenues, implementing a VAT would be a rational response by government. That is not to say that the implementation of corporate or personal income tax can be ruled out; rather it is a reflection on the fact that a VAT seems to “tick more of the boxes” than the others,” said Nauman Ahmed, partner and regional tax leader at Deloitte Middle East. “Compared to a VAT, a corporate income tax is more likely to act as a disincentive to businesses considering investment in the region and hence more negatively impact GDP growth as a result. On the other hand, a personal income tax presents an obvious challenge to the “tax-free” branding that has served the region so well in the past.”

Deloitte’s report indicates that it seems increasingly likely that there will be a unilateral or multilateral move to implement VAT in the GCC in the relatively near term. Whilst no government has committed to implementing any tax at this time, the signs indicate that the status quo will change because of persistently low oil prices, increasingly large fiscal break-even gaps faced by most GCC countries, and the need to find sufficient revenue to fund ambitious economic growth plans in the long term. The momentous decision by the UAE to slash fuel subsidies is likely to drive the decade long GCC tax debate to a meaningful conclusion within the next six months.

“The significant move by the UAE to slash fuel subsidies will, aside from anything else, bring fiscal planning into sharp focus around the region,” explains Stuart Halstead, Indirect tax leader at Deloitte Middle East. “Looking purely at what we know about the economic impact of a Value Added Tax, implementing such a tax does appear to be an appropriate approach given the range of needs that need to be balanced. Policy makers do not necessarily want to trade any economic growth for public revenues, but if you have to do it, a VAT is more likely to offer more bang for its buck.”

Saudi Fransi Capital Successfully Closes SAR 1.0bn Maiden Sukuk Issuance for Abdullah Al Othaim Real Estate Investment and Development Company

Saudi Fransi Capital announces the successful closing of the SAR 1.0 billion five year Sukuk offering on behalf of Abdullah Al Othaim Real Estate Investment and Development Company “OREIDCO”.

The Sukuk (senior secured) has been issued through OREIDCO Sukuk Limited, by way of a private placement in the Kingdom of Saudi Arabia. OREIDCO Sukuk has attracted strong interest from the investors community in the Kingdom, with demand originating from government-owned funds, banks, asset managers, corporates and insurance companies. The Sukuk, priced at six-month SAIBOR 1.7%, has helped OREIDCO achieve its objective of diversifying its sources of financing and in extending the liability profile. OREIDCO plans to use the Sukuk proceeds for meeting its requirements for capital investment and for general corporate purposes.

GIB Capital, NCB Capital and Saudi Fransi Capital acted as Joint Lead Managers and Joint Book Runners on the transaction.

OREIDCO (via its subsidiaries) is engaged in the development and operation of retail shopping malls in the Kingdom of Saudi Arabia as well as providing entertainment and leisure amenities in Saudi Arabia, UAE, Egypt and other neighbouring markets. It also owns and operates food and beverage outlets in some of its retail shopping malls.

Qatari Businessmen Association (QBA) in Cooperation with Aqua Trust Holds a Seminar on How to Achieve Tax Efficient Investment in UK Real Estate

Award-winning Aqua is first off-shore Trust Company to achieve License Status in the State of Qatar at the QFC.

The Qatari Businessmen Association (QBA) in cooperation with Al-Faisal International for Investment, AlSawari Group, and Aqua organized a private seminar entitled, ‘Achieving Value in the UK Real Estate Market’, led by Jersey and Qatar based offshore practitioners and tax planners, UK legal experts andestate agents. The seminar took place at the QBA headquarters at the Marriott Marquis Hotel.

The seminar was attended by private entities, local companies,and businessmen interested in the UK real estate market. The Qatari Businessmen Association opened the seminar by welcoming the attendees and noted that this seminar isin line with QBA’s vision to serve the business community by providing leading and unique services.The seminar was introduced by QBA as part of a series of specialized seminars to highlight the latest business trends in the markets that are of interest to the Qatari business community.

Joanne Luce, Managing Director of Aqua Group, based in Qatar, Jersey and Malta, and Peter Burnside, senior tax counsel at BDO UK led the first panel discussion revealing how tax planning can add value by interpreting the latest tax changes from a practical perspective.

Aqua’s presentation “Tax Efficient Investment into UK Real Estate’ compared the tax liabilities of basic investment structures in the UK withmore favorable investments via Jersey companies. The optimum solution presentedwas atax exempt real estate structure through Jersey private wealth trusts and UK unit trusts. The tax exempt structure was said to be relevant for both commercial and residential rental property as secure succession options. The presentation concluded by presenting the ideal private residential property solution for families usingprivate trusts in Jersey limited partnerships.

The following panel discussions wereled by Matthew Khalil of Kahlil & Kane on ‘How to achieve strong returns and value from residential and developmentopportunities’ and by Nick Clayson of Norton Rose on ‘The Legal view on what structures work and how to retain value’.

Joanne Luce, Managing Director of Aqua Group, said: “According to recent reports, confidence has returned to real estate markets in Europe and London is still a firm favorite with investors. This is why we felt this seminar was particularly relevant, offering advice on potential investments in this field. The sessionis aimed at Qatari audiences to ensure they are familiar with the latest tax implications associated with UK real estate investment and receive the best advice they need for secure succession. We believe such seminars are ofinterest to local families andfamily-led businesses who are investing abroadso they receivethe tax planning advice they may need.”

Aqua Group was created in Jersey to provide family-led businesses with a unique and very personal service offering families tax-efficient offshore solutions before it becamethe first off-shore Trust Company to achieve License Status in the State of Qatar. Aqua GCC was set up to help existing clients in the region and drive in value to the families Aqua serves either through improving their return on investment or by adding value to help family businesses grow and develop. Aqua’soffices in Malta and Jersey give it access to offshore and onshore structuring.

Joanne Luce continued: “Aqua offices offer Qatari investorswhat they need to achieve. Malta is a gateway into Europe and Africa allowing Aqua to structure commercial solutions that add value through structuring at the Family Trust level to protect against punitive Real Estate taxes. We are strong in this area and have very effective networks with other key and trusted advisers to build optimum commercial services. Jersey is more traditional with a fantastic jurisdiction for Estate planning, through investment in the UK and the bespoke creation of Fund platforms – so by having offices in both locations we can achieve what international families may need.”

2016 Report to Explore New Investment Opportunities in Dubai

Oxford Business Group appoints new team for its forthcoming economic publication.

Dubai – Positive outlook for the economy and investment opportunities in 2016 will be given wide-ranging analysis in a forthcoming report to be produced in Dubai.

The international publishing, research and consultancy firm, Oxford Business Group (OBG) has brought in a new team to start conducting a new important edition on the country’s latest economic developments.

Nihan Alan takes on the role of Country Director in Dubai, working alongside Marc-Andr’ de Blois who is the group’s new Editorial Manager in the emirate. They will lead the Group’s research operations for The Report: Dubai 2016 that will contain a detailed sector-by sector analysis with an emphasis on the most significant economic segments.

The Editorial Manager highlighted that “global trade is accelerating its move towards the East and Dubai successfully positioned itself at the heart of it, over the last few years”.

“By continuous efforts on the fronts of innovation, efficiency and sustainability, the emirate of Dubai is on the right track to secure its regional leadership and comparative advantages as a starting point to do business and to further integrate with other global hubs”, he said.

According to the Country Director, “in these very interesting and challenging times for the region, Dubai’s macro-economic environment is unfolding and responding quite positively to global changes.

With the implementation of the National Innovation Strategy (NIS) by the authorities this year, technology, innovation and sustainability are becoming a much greater force for growth and a comparative advantage for Dubai to always remain ahead of the game and ready to address the challenges of today’s global economy. Dubai can capitalise on strong relationships with organisations and multinationals from a wide range of sectors in order to remain competitive and continue to diversify its economy, with an increased focus on technology and human capital.”

Nihan Alan, Country Director, has been working for OBG in the GCC region for more than 5 years and is returning to Dubai this year, after spending two years working on annual our economic research in Qatar. Ms Alan was the Country Director in Dubai back in 2011-2012, with the re-opening of the Dubai economy, and she’s glad to take part to the new edition of The Report: Dubai.

Thorough knowledge of governing and trade structures in emerging countries, Marc-Andr’ de Blois, Editorial Manager, has been working with Oxford Business Group (OBG) for more than seven years across the Middle East and Africa and he is thrilled to return to the region and with the company after having worked for 3 years as the Press Secretary and Spokesman of the Minister of Culture and Communications and the Chief of the Official Opposition in Quebec, Canada.

The Report will feature key exclusives viewpoints and interviews from the local and international government officials and business leaders.

The new publication on Dubai’s economy will assess trends and developments across the economy including macroeconomics, infrastructure, financial sector, real estate & construction, tourism and other sectoral developments. The publication will be available in print or online.

GFH Distributes $53m to Its Funds’ Investors

GFH Financial Group “GFH” has announced that it has distributed $53m to its funds’ investors who currently have underlying investments in Bahrain, United Arab Emirates (UAE), United States of America (USA) and India.

Based on its revised strategy, GFH has over the last 18 months invested in projects which provide steady cash yields for its investors. In line with this, Diversified US Residential Portfolio (DURP) an investment in multi-family US residential assets distributed dividends of $1.3m on to its investors. The portfolio consists of two multi-family residential properties, one based in Houston and the other based in Atlanta. The properties together comprise nearly 1,300 apartments and have an overall occupancy of 94%. The GFH Group has also distributed semiannual dividends of $1m for the year 2014- 2015 for Philadelphia Private School (PPS) based in Dubai- UAE. The estimated worth of the school is AED140m which provides excellent education for a growing base of students with a capacity of up to 1,900 students.

Focusing on the industrial sector, Cemena Investment Company has distributed dividends of $7.9m. Cemena owns Falcon Cement Company’s (FCC) which is Bahrain’s first integrated cement plant and Aluminum Extrusion Company (“Balexco”).

Furthermore, during the last three years GFH has been able to return part of Mumbai Economic Development Zone’s (MEDZ) Project capital, which sums to $43m, which was returned over several payments ending with the recent distribution of $28m. MEDZ is GFH’s flagship project in India and is comprised of two core components – the Energy City Navi Mumbai (ECNM) and Mumbai IT & Telecom City (MITTIC) projects covering nearly 1,300 acres of prime development land at Navi Mumbai in the Indian state of Maharashtra. The group signed partnership agreements with the most reputable developers for developing parts of the project in India.

Hisham Alrayes, Chief Executive Officer of the Group, said, “With these cash distributions we were able to fulfil our promise to our investors which confirms the flexibility and the efficiency of the Group’s strategy. During the year we have also invested in an operating mall in Jeddah and another British curriculum school in Dubai, dividends for which will flow to investors from next year. We will continue to look for promising investment opportunities which are expected to provide the Group and our co-investors with high cash yields and double digit total returns.”