Liquidity constraints are reshaping venture capital dynamics in the region. As Fast Company Middle East highlights, VC funding in Emerging Venture Markets dropped by 41% in 2024, reflecting a more cautious investment climate. However, this shift is not necessarily a bad thing. it signals a move toward more disciplined, long-term capital deployment.

One key trend to watch is the role of public markets as liquidity solutions. The rise of dual listings and stronger equity markets could offer new exit pathways for startups, potentially creating a new generation of tech power brokers in the region. Investors and founders who align with this reality -focusing on sustainable growth rather than short-term funding cycles - will be best positioned for success.

The next phase of VC in the Middle East will be about resilience, adaptability, and bridging private capital with public market opportunities.

How does the strong US dollar impact retail investors? As the US dollar remains near a two-year high, our CEO, Tony H., shared his perspective with The National News Deepthi Nair on what this means for investors globally and in the GCC.

Tony highlighted that while a strong dollar boosts purchasing power for those investing in international markets, it can also reduce returns on investments in weaker currencies. For GCC investors, where currencies are often pegged to the dollar, this can mean greater stability and opportunities in sectors benefiting from US economic growth, such as technology and pharmaceuticals.

His thoughts? Take a strategic approach. Diversify into assets like commodities or equities in stronger currencies to mitigate risks and maximize growth opportunities.

What will investment trends look like in 2025?

Our CEO, Tony Hallside, shares valuable insights in The National News about the potential shifts in global equities and emerging opportunities. European and Chinese equities could gain ground in 2025. Europe may benefit from renewed focus on industrial and defence sectors, while China remains attractively valued. 2024 was a remarkable year for US markets and cryptocurrencies like Bitcoin, but the upcoming year may bring new dynamics as markets evolve.

The US Federal Reserve's recent interest rate cut isn't just a headline for Wall Street; it’s already having real-world effects here in the UAE. For residents and businesses with loans, this means immediate relief from the pressure of higher borrowing costs, a welcome reprieve.

But while the lower rates bring short-term relief, it’s crucial not to lose sight of the bigger picture. Now is the time for businesses and individuals to focus on reducing debt, managing cash flow more effectively, and preparing for future rate fluctuations. This isn't just a moment to breathe easy, but a chance to strengthen financial resilience.

What this move by the Fed really underscores is how closely connected our economies are. It’s a reminder that staying proactive in the face of changing monetary policies is essential for long-term stability. Adaptability will continue to be key as we navigate these evolving financial landscapes.