After pledging $20 billion to build data centers in the U.S. while sharing the Mar-a-Lago podium with President-elect Donald Trump, Damac Group CEO Hussain Sajwani needs to deliver.

In a television interview with Bloomberg today, the billionaire property developer said that level of investment will require close involvement with banks and other financial institutions.

“This is an asset-based business. With infrastructure, normally you borrow 60% to 70% from the banks or financial institutions, or bonds – leverage,” he said.

“Damac Properties will be able to put the equity, which will be in the range of the other 30%, which will be around $5 to $6 billion.”

Janus Henderson, a London-based investment firm with more than $380 billion under management and 25 offices around the world, is growing increasingly bullish on markets across the Gulf.

With its acquisition last year of NBK Capital Partners, the alternative investment arm of the National Bank of Kuwait, Janus Henderson deepened its footprint in the region and declared its intention to expand further. The firm cites stability in governance and massive infrastructure investments as central reasons that the Gulf states have become magnets for global capital.

In an interview with The Circuit, Meshal AlFaras, Janus Henderson’s Dubai-based Head of Middle East, Africa & Central Asia, goes into specifics about why the firm is boosting its investments in the region.

Among the growth areas drawing Janus Henderson and its peers are Sharia-compliant investments, where AlFaras sees great potential for expansion. The interview has been lightly edited for length and clarity.

What are some of the emerging trends in the region that you believe investors should be closely watching?

The Middle East? We believe in it. We are expanding in it. What are we seeing? We’re seeing lots of growth. That growth is happening in the UAE and it’s continuing. It’s reflected in Abu Dhabi, Dubai, the other Emirates, and now you see the focus going to Saudi. With their  Vision 2030, that’s another country where everyone should expand. With the higher ratings… as a quality sovereign and the money that is available in the local market, this can easily generate growth for the multiple decades that are coming. The Public Investment Fund is doing great work with their ambitions. MBS [Crown Prince Mohammed bin Salman] is driving that. He’s got the strategy, got the plan. Asset managers and global firms like us will do nothing but back them up. That is how I see the view for the region.

What sectors are you going to focus on at Janus Henderson?

There’s our recent acquisition of NBK Capital Partners as part of National Bank of Kuwait. We acquired that private credit team, and that private credit team invests in the GCC and the wider MENA region. If you just look at the growth in Saudi and their plans and ambitions, most of the banks are lending for the large infrastructure projects and they’re reaching their capital ratios with lending to all the mega projects in Saudi and elsewhere. But the focus should be on the neglected sector  –  the small and mid-cap sector.

It’s large here, but it’s small to the rest of the world, to Europe or the U.S. So that’s our focus area where we’re spending that money. We’re creating a new fund, a private credit fund, Sharia-compliant for the first time, and we are going to invest the money here. We are raising the money. We are seeding it. We’re raising money from abroad. Lots of people, including U.S. family offices, are committing to this fund to be invested in the region and those sectors.

What are some of the unique challenges when it comes to investing in the region?

The regulations are adapting. The governments here are working together to enhance the regulations. While the entire GCC has been formed for multiple years, they still don’t have full regulation where we can work across the entire GCC. Once we have one set of rules and regulations, that will make any investment much easier.

Look at the UAE, for example. There are three regulators when it comes to the financial world. You have the DIFC (Dubai International Financial Centre), you have ADGM (Abu Dhabi Global Market), and they both have their own regulators, plus the SCA (Securities and Commodities Authority). So that’s just in one country. We have three regulators. Then to move to Saudi, you have another regulator, and Kuwait is the same thing. I’d love to expand in Kuwait and other countries, but we need better and clearer regulations before we can move into them.

What do you think is the role of the sovereign funds here in terms of shaping market trends?

Sovereigns have deep pockets to invest. And the focus right now for them – yes, they can invest – it depends on which sovereign wealth funds you’re talking about. In every country, there are multiple sovereign wealth funds now. If you look at Sanabil or the PIF, their focus is mainly to invest in the country. If they invest outside, it will be in the core direct investments, something that aligns with the future and the growth in their country. The scale-back that many people talk about in Neom and that other projects face? We don’t see it as a scale-back. We see it as an opportunity for them to focus on those projects piece by piece. As they say Rome was not built in one night. People like us, Janus Henderson, and other international firms have emerging market credit teams focusing on investing in regions like the GCC. 

Are we seeing cross-border investments, for example, from the Middle East to Central Asia or Africa?

Yes, though not as much as we’d like to see. Foreigners are taking baby steps. I opened the office here or the regional office back in 2012. We knew nothing ,or the firm knew nothing. We have 2,500 employees around the world. For the employees or the teams or top management to learn more, it took us that long to learn more about the region. And that’s where now we’re tapping into the market and doing the acquisitions and the expansions and the investments.

We’re hiring more teams. We acquired NBK Capital Partners. So we believe we know where they’re coming from and their track record, and we’re investing. And with that, I also see our peers doing exactly the same thing. Now they’re investing in local talent, investing in local knowledge, and aligning themselves with the governments in order for them to grow. Not just Janus Henderson, but you’ve probably seen lately that BlackRock created a new infrastructure fund worth $5 million to be invested in Saudi or in the region.

I’m sure many others will create more, including us, to invest in the region. And we see demand. We see lots of demand for investors, especially to invest in the region. I mean, if you look at the emerging market debt, that’s by itself within the region. It wasn’t covered as much as it is today. We have a team that sits in Denmark, covering emerging market debt, and they come here regularly. They used to come once every three to five years. Now they’re coming three to four times a year. So that’s a big shift, and that’s where I see the trend.

Why are we seeing this trend? Why are we suddenly seeing more influx of capital?

I think the stability of the government is playing a big role. The GCC is not like other emerging markets or frontier markets where you see instability in governments and changes in governments. Our rulers have been here for multiple decades, and their aim and vision are to believe and flourish, to invest in the people of the countries. And the people have seen it. They’ve seen the World Cup in Qatar. It’s one of the best organized globally. You’ve seen many World Cups. The best was in Qatar. And in Saudi Arabia, they just won the next World Cup for 2034. That will be another impressive organization and event. Many others are following.

Now, the entire region is shining globally. You see how many firms are coming to the region. Look at the DIFC by itself. Five years ago, we were 20,000 employees. Today, we’re over 41,000 employees. See the growth, see the demand. That’s just in the past five years. Similarly, in ADGM, record growth. And then, even if you come, any small or large institutions get supported by the infrastructure, by the sovereign wealth funds.

Wa’ed Ventures, Aramco’s venture capital unit, is teaming up with Japan’s Sumitomo conglomerate, to fund a Saudi consumer electronics startup.

The two companies joined Dubai-based Global Ventures in a $30 million financing round for Zension Technologies, which provides warranties, buy-back services and upgrades for mobile phones, Bloomberg reports.

Middle East startups raised $1.5 billion last year, a 29% decline compared to the previous year, according to a Magnitt report

Saudi Arabia attracted almost half of the region’s VC investing in 2024.

Competition between sovereign wealth funds in Saudi Arabia, the UAE and Qatar is likely to deepen in 2025 as the three Gulf states pour money into China and other developing markets.

The growing focus on Asia is evident from data assembled by Singapore-based Global SWF, whose 2024 report released last week showed Abu Dhabi’s Mubadala edging past Saudi Arabia’s Public Investment Fund as the world’s most active sovereign investor.

Mubadala and its subsidiaries invested $29.2 billion last year, up from $17.5 billion in 2023, and a 67% increase in total deals. The PIF chopped its investment spending by 37% to $19.9 billion last year, down from $31.6 billion in 2023.

Three other Gulf funds were ranked among the top 10 global dealmakers: Abu Dhabi Investment Authority, ADQ and the Qatar Investment Authority, the Global SWF report showed.

Over the past 12 months, Gulf sovereign wealth funds invested almost $10 billion in China, the largest such volume in history, Global SWF Managing Director Diago Lopez said in an interview published today with Arabian Gulf Business Insight.

Every time investment managers come across “a good opportunity to invest in emerging economies, they are now taking it because they know that they need to diversify away from developed markets,” Lopez told AGBI.

Oman is resuming copper exports after nearly 30 years as part of efforts to diversify its economy.

Minerals Development Oman announced the first shipment of copper concentrates this week from its Lasail mine and plans to start mining operations in Al Baydha by 2026.

“The project is a natural hedge for Oman,“ Michael Widmer, head of metals research at Bank of America, told The National. “The country’s export revenue [is] heavily geared towards oil and gas, making the investment in metals and mining interesting.”

Copper mining in Oman ceased in 1994. The country has been taking steps to resume production since 2017.

As 2024 careens to its close – with financial markets jumping even as geopolitical conflicts multiply – Gulf sovereign wealth funds continue to pile up assets.

Leading the way has been ADIA, the Abu Dhabi Investment Authority, which entered the elite $1 trillion club this year with assets reaching $1.06 trillion – trailing only Norway and China – the Sovereign Wealth Fund Institute reports.

Among regional neighbors close to joining the club, the Kuwait Investment Authority holds $980 billion in assets and Saudi Arabia’s Public Investment Fund has about $950 billion. The Qatar Investment Authority stands at $530 billion, according to the SWF ranking.

In Abu Dhabi, a regional center for investing sovereign wealth, Mubadala trails ADIA with $330 billion, followed by ADQ with $250 billion.

Amid the explosive performance of cryptocurrencies this year – with Bitcoin breaking the $100,000 ceiling last week – investors are buckling up for what looks to be a wild ride in 2025.

Eric Trump was greeted with hoots and hollers when he took the stage at December’s Bitcoin MENA conference in Abu Dhabi and promised that his dad will be “most pro-crypto president in the history of America.”

The event coincided with an announcement from the UAE’s Central Bank that it will issue the AE Coin, a so-called stablecoin that will be subject to government regulation to assure its trustworthiness as a digital currency.

After opening the year at $44,204, Bitcoin has soared more than 130%, hitting an all-time high on Tuesday of $107,778 – before slipping yesterday to $94,569 and illustrating crypto’s unpredictability.

In an interview with The Circuit, Tim Popplewell, owner and CEO of Dubai-based Scintilla Network, talks about his investment firm’s crypto strategy, the critical role of regulation in building trust and how the Gulf is poised to lead the next chapter in digital innovation.

Where do you think the UAE is headed in addressing Crypto?

One of the key aspects of cryptocurrencies and digital assets is regulation, and that’s crucial. Generally speaking, there have been some not-so-great stories in recent years, with people paying heavy prices, including prison time.

The UAE, and the Middle East more broadly, has been fantastic in taking the lead. They’ve gone from having little to no framework to establishing authorities like VARA – the Virtual Asset Regulatory Authority – here in Dubai, which is truly leading the world. And I don’t think it’s just me saying that from Dubai. I travel enough to know that this is a widely held opinion in the industry regarding regulation in this space.

With solid regulation comes bigger players. Once the major players realize it’s safe to operate here, they start moving in. You saw it at the [Bitcoin MENA event]. The caliber of international players coming to this region is precisely the kind you want to attract. Regardless of your political views, having Eric Trump speak about crypto is a significant endorsement. Bitcoin MENA is the region’s first event of this kind, and for its debut, it attracted someone of that stature. That speaks volumes about the importance of this space in the region.

As for trends, it’s completely inevitable that digital assets and currencies are the future. Just this [month], we’ve seen leaders from Russia, China, the US, Europe, Britain, and others all make statements in favor of cryptocurrencies, digital assets, central bank digital currencies, or stablecoins. The direction is clear – this is unstoppable.

You also have influential figures like Michael Saylor, BlackRock’s Larry Fink, and many others backing this movement. The trajectory is inevitable; it’s just a matter of what form it will take.

How is digital currency used here in the MENA region?

The MENA region started off behind but is now moving ahead very quickly. One example is the use of Central Bank Digital Currencies (CBDCs). That is an area where the Middle East region has really taken a bit of a lead. A CBDC is a digital currency issued by central banks. In this region, for large oil transactions, CBDCs help cut out middlemen, reduce fees, and speed up transaction times. Another key advantage is that once a transaction happens, it cannot be reversed or disappear — it’s immutable. It is impossible for it to disappear. It is impossible for funds to go missing. 

CBDCs also help legitimize trade in the region. A few years ago, there was still skepticism about whether the Middle East could play a significant role in global finance. Now, digital currencies are helping change that perception. For example, at Abu Dhabi Finance Week, the slogan was “The Capital of Capital,” and no one questions that anymore. I think digital currencies have played a role in that.

What is happening in the UAE regarding digital currency, especially with the recent stablecoin announcement?

At one end of the spectrum, you have central bank digital currencies (CBDCs). These are essentially the digital version of what central banks currently do when they print money, backed fully by the government. At the other end, you have cryptocurrencies, which aren’t backed by anything tangible—only by market sentiment. In the middle, you have stablecoins. The idea behind a stablecoin is that it’s backed by actual assets. For example, the recently announced AE Coin, a new stablecoin for the UAE, is backed by dirhams and other assets. If you buy one dirham worth of stablecoin, it’s fully supported by an equivalent dirham in reserve, ensuring its stability and security.

Can we predict what’s going to happen in the next 5 to 10 years?

In terms of major cryptocurrencies, I think their growth is somewhat inevitable. Far be it from me to make a price prediction, but if you were to ask whether Bitcoin, for example, will be higher in five years than it is today, I’d say it’s almost inevitable. I really can’t see any reasons for that not happening.

The real fascination lies in the interplay between CBDCs, stablecoins, and cryptocurrencies over the next five years. How these entities interact will be key. If you look at CBDCs, on one hand, they offer benefits like cutting costs and reducing transaction times. On the other hand, they bring concerns about government surveillance and tracking how people spend their money. It’s a two-sided story, and I don’t know how it will play out, but it will definitely be fascinating to watch.

Stablecoins, again, seem inevitable. They’re clearly the way of the future, and I don’t think there’s much doubt about that. Cryptocurrencies, however, are more complex. Right now, there are millions of them, and I think we’ll see a split. The larger cryptocurrencies that can be traded in regulated spaces will grow stronger because people trust them. They’re not going to experience “pump and dump” schemes or other risks that jeopardize their money. Then there’s the speculative, “Wild West” side—meme coins and unregulated cryptocurrencies. They’ll continue to exist outside regulation, but good luck to anyone investing in those. They won’t disappear entirely, but the space will split: regulated cryptocurrencies will attract most players, while unregulated ones will remain high-risk.

How do you advise your clients to ensure their investments are secure in crypto?

We are in an interesting position because we are regulated by VARA and we were incubated within a global law firm. So, we saw this coming years ago – the Wild West phase would eventually end, and regulation would become the only way for people like yourself to feel comfortable putting your hard-earned money into this space, whether as an investment or as a way of paying bills.

This ties back to what I mentioned earlier about the importance of regulated players. For example, we’re regulated for exchange services. This means that when you put your money with a regulated provider like us, you can trust that it’s safe. We have to abide by VARA’s regulations, which allow us to do certain things but also prevent us from engaging in others. That’s the direction this space is heading.

On the other hand, if you put your money into a meme coin just because some influencer or KOL (Key Opinion Leader) thinks it’s funny or trendy, well, good luck. Those coins aren’t regulated, and unfortunately, when things go south – and it really is “when,” not “if” – it’s a case of “buyer beware.”

I think we’re going to see a clear shift toward quality, and that quality will revolve around regulated providers.

Companies in the Middle East have raised $13 billion from IPOs in 2024, making it the region’s second-best year since the pandemic.

Strong early returns from those share sales, however, are no longer guaranteed, Bloomberg reports.

The three largest Gulf IPOs of the year — Talabat, OQ Exploration, and Lulu Retail — had muted debuts despite strong demand.

Still, the desire of Gulf governments to diversify their economies and deepen capital markets virtually guarantee a continued rush of listings in 2025.