This issue’s discussions covered a diverse array of economic and political trends across multiple countries. In Europe, political shifts and election outcomes could influence future economic policies. Czechia’s insights came from a recent investment conference, focusing on market trends and sustainability. Spain’s vibrant investment scene is marked by growth in real estate and venture capital. From Saudi Arabia, significant governmental borrowing and new financial instruments were noted. In the UAE, the market remains stable with strong growth in sectors such as real estate, healthcare and AI. Japan is experiencing political changes and economic inflation. The United States sees ongoing political uncertainty impacting economic conditions, with discussions on the influence of politics on investment decisions and market dynamics.

What is happening in Europe?

Werner Schuenemann, Founder at Xandance & Partners, shared insights on the shifting political landscape in Europe, emphasizing the rise of right-wing movements and their impact on recent elections. While in Germany, Werner noted observations from his travels, including the outcomes of snap elections in Britain and France where left-leaning parties gained advantage, potentially leading to a hung parliament in France. This shift could stymie President Macron’s business-friendly policies, which have made France more attractive for investment. He highlighted concerns about potential wealth movement away from countries with high taxes and restrictive financial environments like Britain, France and Germany, pointing to Southern European nations such as Italy, Greece, Spain and Portugal as potential beneficiaries.

What is happening on Czechia?

Pavel Cech, Private Fund Manager at Czech Portfolio Investments, provided an update on recent developments in Czechia and shared insights from his attendance at the Investment Management Convention in Monaco. The convention also addressed the ongoing impacts of current geopolitical situations on the financial markets and investment strategies for the upcoming years. Additionally, artificial intelligence was a prominent topic, reflecting its increasing relevance and influence within the investment community.

What is happening in Spain?

Marta Albert, Principal at QG Family Office, provided an update on the current atmosphere in Spain, especially in the context of investment activities. She remarked on the vibrant and active investment scene during the typically slow summer months, noting a departure from the traditional lull. Real estate and venture capital opportunities are particularly thriving, reflecting a dynamic shift in the economic landscape. Marta also mentioned her recent relocation from London to Madrid, expressing satisfaction with the change amid governmental shifts in Spain.

What is happening in Saudi Arabia?

Gaston Bilder, Head of Legal at ENOWA, shared insights into the recent financial activities in Saudi Arabia, particularly emphasizing the significant borrowing and leveraging by the Saudi government. He highlighted that Saudi Arabia has managed to secure $33 billion in borrowing, positioning it as one of the highest borrowers in the global market, comparable to China. Additionally, Gaston noted that Saudi Aramco has issued its first bond since 2021, aiming to raise about $6 billion in U.S. debt. Moreover, the Saudi government has issued $12 billion in U.S.-demanded bonds this year. These financial maneuvers indicate a robust and active economic environment in Saudi Arabia, with numerous ongoing projects continuing to drive the nation’s economic vibrancy.

What is happening in the UAE?

Jawad Wehbi, Founder at AJ Middle East Management Consulting, provided an overview of the current economic landscape in the UAE and broader MENA region. Despite geopolitical challenges in the Mediterranean area, Jawad noted that the UAE market remains stable and continues to exhibit promising growth. Investment opportunities are robust across various sectors, with significant focus on real estate and sustainable food sources. Healthcare and agriculture are highlighted as key areas of government interest and investment, reflecting their strategic importance in the region’s development plans. Additionally, advancements in AI and technology continue to play a crucial role in shaping the economic future of the UAE. Wehbi’s insights underscore a dynamic and forward-looking economic environment in the UAE, marked by stability and diversified growth prospects.

What is happening in Japan?

Yoshiyuki Oba, Co-Founder at COREangels Pacific, recently returned to Malaysia from Tokyo, Japan, where he observed significant political and economic developments. He reported on the Tokyo governor election, highlighting the re-election of Governor Koike amidst discussions on Japan’s escalating inflation. This economic concern is marked by rising prices affecting Tokyo’s residents. Governor Koike, according to Oba, is in a fortunate position to manage a substantial budget for a city with over 16 million people, presenting her with ample opportunities to address these economic challenges.

What is happening in The US?

Anthony Jarrin, CEO at The Cannaregio Group, discussed the current political and economic climate in the United States. He expressed concern over global political instability, which he feels adds uncertainty about potential solutions and outcomes in the near to medium future. In the U.S., while the economy has not yet been significantly impacted by political issues, Anthony anticipates potential effects as the November elections approach. He highlighted the discontent among voters with the available political options and noted recent debate performances that suggest the need for a Plan B, although it’s unclear if one will emerge. This political pressure sidelines policy discussions, placing the economic outlook in a state of limbo. Despite these challenges, the U.S. economy continues to perform strongly, particularly in public markets, though private markets face difficulties due to inflation and banking restrictions. Anthony emphasized the ongoing strong global demand for the U.S. dollar but cautioned that political outcomes could rapidly alter this positive scenario.

Kiki Mwiti, CEO at DYVVYD, expanded on the sentiments shared by her colleague regarding the current climate in the U.S., particularly focusing on political volatility and its impact on investment strategies. Kiki highlighted the shift in dominant issues during the 2020 election to clean tech and climate change currently, noting the significant change in focus within the investment community. Additionally, she discussed the broader implications of the work-from-home trend, which has significantly influenced real estate markets as professionals seek homes with office space. Kiki also mentioned that while there is substantial capital availability, the investment climate is cautious due to uncertainties about future government policies on technology, particularly AI. She noted a careful approach to investment, with more scrutiny on deals, particularly in the wake of volatility in sectors like cryptocurrency. Mwiti concluded by pointing out the global impact of political and migration issues, underlining the interconnected nature of politics and economic decisions.

Depinder S. Grewal, Managing Member at Tiger Alternative Investments LLC, shared insights into the current business and investment climate in New York and the broader U.S. Despite a rising stock market, he observed a lack of enthusiasm in fundraising efforts, attributing this to more reasonable valuations and limited traction in deal-making. Depinder pointed out that the underlying cause of this cautious investment atmosphere is the uncertainty surrounding the upcoming elections, with many feeling disillusioned by the options available. He also noted specific trends in New York City, such as commercial spaces operating at 75% occupancy, indicating a partial return of workers but still below pre-pandemic levels. Additionally, he highlighted an anomaly in the hospitality sector, where high-end restaurants remain difficult to access despite other economic challenges.

Rob May, Founder at Dianthus, shared his perspective on the current investment landscape in the United States, highlighting significant excitement in sectors such as clean tech, deep tech, AI and digital transformation. He emphasized the long-term investment approach, focusing on creating sustainable value rather than short-term gains. Rob described the technological transformation as akin to being “a kid in a candy store,” with an abundance of innovative ideas in health tech and social arenas. He encouraged looking beyond the noise of current events to recognize global shifts, such as the emergence of digital nomads and changing investment focuses from traditional industries to cutting-edge technologies across various regions, including the UAE, Africa and Asia. Rob pointed out the strategic realignments on the global stage, such as collaborations between nations like India and stressed the importance of anticipating long-term trends and opportunities, advocating for a proactive and optimistic approach to global investment opportunities.

What is happening in India?

Ambuj Mathur, Managing Partner at Indite Ventures LLP, discussed the economic and political landscape in India, noting a stabilization following recent elections. He highlighted a divide between a small, thriving population and a larger group facing deepening challenges. India’s public markets are notably vibrant, with high valuations and an influx of capital into stocks, driven by mutual funds and new investors, which is distorting the investment environment. Ambuj also mentioned significant trends in corporate governance improvement and emerging business opportunities in sectors like elder care and life coaching. Additionally, the IPO market is particularly active, with substantial opportunities for profit, despite some concerns about overvaluation in new listings compared to more established companies.

The 182nd G.I.L.C. Summit brought together top investment professionals from around the globe to delve into the evolving economic landscapes across various countries. Position yourself at the forefront of the ever-changing world of global finance by reserving your place at our upcoming Club events.