Hi Spot; A new dawn for Saudi market, scepticism on Dubai.

Hi Spot; A new dawn for Saudi market, scepticism on Dubai.

Saudi Arabia announces plans to open its course to foreigners leading experts to expect a bullish response from investors.

Following last month’s news that the Tadawul exchange will open up to direct foreign investment, more than two thirds of leading investors have expressed their interest in increasing their stakes in the $550 billion valued STOCK MARKET, a Reuters survey has found.

Although there has been no official indication, the move is set to pave the way for Saudi Arabia’s inclusion in the MSCI EMERGING MARKETS index.

Speaking to AMEInfo’s sister publication TRENDS, head of Mena Equities, Bassel Khatoun, explained: 

“Entry into the MSCI EM index would likely boost TRADING volumes, enhance market liquidity and potentially bring down transaction costs through improved scale effects.”

The benefits to the Saudi economy will be vast, as the government attempts to revamp its non-oil industries. 

Namely, the introduction of foreign investors is also likely to accelerate M&A activity, as its private sector will be monitored more closely. 

Anum Saleem of the Eversheds Saudi Arabia office says 

“this will bode well for the Saudi private sector as their BUSINESS VALUATIONS are likely to increase serving as an impetus to entrepreneurship and employment opportunities for the local population.”

Moreover, according to Mena Equities, 

“such measures are likely to lead to an increase in initial public offerings (IPOs), thus leading to a much-needed deepening of the equity market in the region and improved sentiment from global investors.”

While sentiments and investor confidence in the region may well boom with this development, concerns have been raised that companies and shareholders from around the GCC may redirect much of their capital to Riyadh.

According to the Reuters survey, INVESTMENT MANAGERS have responded bearishly to the UAE’s market forecast, with only seven per cent willing to increase their equity allocations and 47 per cent expected to slow down their UAE activity. 

Citing overheated prices and inadequate regulation, particularly brought to light throughout Arabtec’s market roller coaster in previous months, the opening of Tadawul to foreign investors may redefine the appeal of the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX).

In saying this, experts remain adamant that there will be no mass outflow of funds from other GCC MARKETS into the Tadawul. Instead, new capital will be created. Moreover, with development giants Damac and Emaar’s retail branch, Emaar Malls, expected to be listed on the DFM in the coming weeks, with a total market capitalisation of $12.5 billion, Dubai’s market is also set for an exciting H2.

Hi Technology Insight; We Talk To Business.

Hi Technology Insight; We Talk To Business.

Liquid cooling start up Iceotope talks about the basics of its business;

Fluids don't always mean death for electronics, as founder Peter Hopton explains.

Iceotope has developed an efficient liquid cooling technology that allows supercomputers and data centers in the UK, and even in hot equatorial regions, to run as efficiently as those based the Arctic Circle. Iceotope's system was modeled using computational fluid dynamics, and eliminates the need for air conditioning units and fans to carry heat away. Wired.co.uk spoke to founder Peter Hopton.

HQ: Sheffield, UK

Founder: Peter Hopton

Launched: 2012

Funding: £2 million ($3.2 million) from Investment Partners of Guernsey. £6.4 million ($10.5 million) Series A funding round with Aster, OMBU and the regional growth fund.

What is your proposition to potential customers?

The company was set up with the objective of making fans and air conditioning units obsolete. Spinning fans that push air over electronics is an incredibly inefficient way of removing heat and liquid cooling has long been seen as a winning alternative. The problem has always been developing a liquid cooling system that actually works and will have big server farm operators willing to use it. I believe we've cracked this nut with Iceotope.

What problem do you solve?

IT generates heat and if this heat is not taken away, electronics will begin to bend, break, and fail. Iceotope's technology removes this heat and it does so much more effectively than traditional cooling methods. It also allows this heat to be recycled in the form of hot water, which can be fed into domestic radiators to reduce heating bills.

On a larger scale, Iceotope helps to solve the biggest problems associated with the rapid growth of the Internet. The global digital footprint is estimated to account for ten percent of energy use worldwide and data centers represent a big part of this. Our technology can halve the energy use of these facilities and therefore has the potential to have a big impact on global energy use as a whole.

How do you plan to make money?

Through shipping equipment, but ultimately we intend to create a product ecosystem around our liquid cooling technology by opening the technology up to other vendors.

Where did you get the idea for the business?

In 2005 I was studying the history of liquid cooling used in old equipment in the 70's and 80's such as the Cray 2 supercomputer. I was interested in making a modern version that met the needs of a modern server user. Immersion cooling has had its issues in the past, whether using lots of energy to pump primary coolant or by degradation during the boiling of coolant in a phase change system. During our experimentation we discovered the convective cell used in Iceotope's technology and filed patents—this eliminates the need for pumping primary coolant and solves problems previously associated with phase change.

What's the biggest misconception about your business?

Most of the liquids people encounter on a daily basis don't mix well with electronics. Everyone's spilled coffee on their laptop or dropped their smartphone down the toilet, probably to disastrous effect.

People can get nervous at the thought of mixing electronics and liquids but fortunately the substance we use doesn't conduct electricity so it's completely safe to do so. I've dunked my phone in the stuff countless times and it still works perfectly.

Can you express in some tangible terms how the business has developed?

18 months ago, all we had was the proprietary technology. Now Iceotope has a commercial product and multiple customers using it daily. We've also had a significant financial boost following the closure of our £6.4m funding round.

What has been the most challenging time for the company?

In late 2011/early 2012, when the company was in flux and we were faced with the mammoth task of making Iceotope's technology into a product. There were lots of new faces in the team (particularly at the management level) and long hours to work, so it's hardly surprising that this was a difficult period.

How did you overcome that?

Hard work and not much sleep. As soon as the new team started to bond, that really helped matters too.

What is the best piece of advice anyone has ever given you?

"Ain't no presentation, without caffeination". I think this stuck with me because it was so well delivered at the time. It's especially true if you've just got off the plane in another time zone and are expected to take a meeting within the hour.

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by Olivia Solon, wired.co.uk Feb 9 2014, 2:07am AUSEDT