Industry Update

For years, the advertising industry has pondered the potential of big tech consultancies like Accenture and Deloitte to eat its lunch. This week, one of those consultancies made clear its interest in taking on the creative industry. Accenture Interactive, the consultancy’s “experience agency,” said Wednesday it has agreed to acquire Droga5, the independent creative agency behind work like IHOP’s “International House of Burgers” stunt and this year’s Super Bowl spot promoting “Game of Thrones” and Bud Light. The deal could sound alarm bells for traditional agencies, which may worry about keeping pace when consultancies have historically had strong ties to the executive suites at major marketers. But some experts say the deal is actually good news for the advertising industry because it signals that companies are getting more serious about creativity in marketing.

Source: https://www.cnbc.com/2019/04/04/accenture-buys-droga5-what-it-means-for-the-advertising-industry.html

Abu Dhabi is considering combining Abu Dhabi Islamic Bank PJSC with First Abu Dhabi Bank PJSC to create the Middle East’s largest lender, according to people with knowledge of the matter. The emirate plans to wait for a three-way combination of Abu Dhabi Commercial Bank PJSC, Union National Bank PJSC and Al Hilal Bank to close before starting fresh talks to condense the finance industry further, the people said, asking not to be identified as the talks are private.

Source; https://www.bloomberg.com/news/articles/2019-04-03/abu-dhabi-said-to-weigh-merging-abu-dhabi-islamic-bank-with-fab

Identity verification start-up Onfido says it’s raised $50 million from investors including Salesforce and Microsoft. The firm’s software validates a person’s identity by taking their selfie and applying a mix of machine learning and human fraud experts to match their face with a government-issued ID.

Source; https://www.cnbc.com/2019/04/03/onfido-an-id-verification-startup-gets-funding-from-salesforce-sbi.html

Elsewedy Electric in a consortium with Mitsubishi Hitachi Power Systems (MHPS) has announced that it has won a $550 million contract to build a power plant project in Sharjah. The contract has been awarded by Sharjah Electricity and Water Authority (SEWA) for the Al Layyah Combined Cycle Power Plant. The 1,026 megawatt gas-fired power project is scheduled to start producing energy by 2020 and will consist of one power block made by MHPS containing two gas turbines, two heat recovery steam generators, one steam turbine, and three


Source; https://www.arabianbusiness.com/energy/417073-consortium-wins-550m-sharjah-power-project-contract

An independent group set up to oversee Google's artificial intelligence efforts, has been shut down launched. The Advanced Technology External Advisory Council (ATEAC) was due to look at the ethics around AI, machine learning and facial recognition. One member resigned and there were calls for another to be removed. The debacle raises questions about whether firms should set up such bodies. Google told the BBC: "It's become clear that in the current environment, ATEAC can't function as we wanted.

Source: https://www.bbc.com/news/technology-47825833

Dubai-based car manufacturer W Motors has achieved a whopping 400% growth rate in less than two years from 2017 to 2019, according to CEO and founder Ralph Debbas. The company is known for making multi-million dollar cars, including the $3.4m Lykan Hypersport that featured in American action film Fast & Furious 7 in the famous scene that saw it crash through Abu Dhabi’s talent skyscrapers Etihad Towers. The company also boasts an electric car making division called Iconiq, which it launched in partnership with a Chinese firm to create level 4 and 5 autonomous cars.


Source; https://www.arabianbusiness.com/transport/417210-dubais-w-motors-reveals-400-growth-in-less-than-2-years

The UAE Government’s new foreign direct investment (FDI) law could accelerate FDI flows by up to 20 percent this year, according to the Ministry of Economy. The landmark law, which is predicted to further strengthen the business-friendly climate in the country, will be discussed at the Annual Investment Meeting 2019 in Dubai next week. High-level representatives from the country are expected to present the key provisions of the law before a global audience alongside other factors that make the emirate a preferred FDI destination in the Arab region, state news agency WAM

Source: https://www.arabianbusiness.com/banking-finance/417157-uaes-new-fdi-law-could-accelerate-inflows-by-up-to-20

Uber and Careem have reached an agreement for Uber to acquire Careem for $3.1 billion, consisting of $1.7 billion in convertible notes and $1.4 billion in cash. The acquisition of Careem is subject to applicable regulatory approvals. The transaction is expected to close in Q1 2020. Uber will acquire all of Careem’s mobility, delivery, and payments businesses across the greater Middle East region, ranging from Morocco to Pakistan, with major markets including Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates.

Source: https://www.uber.com/newsroom/uber-careem/

Carmaker Ford is expanding production of all-electric vehicles after deciding that rapid growth in market meant it needed to accelerate its plans. It is investing about $900m (£682m) in new production capacity at a plant in Michigan, creating about 900 jobs. Ford, the number two US carmaker, also said it would start production of autonomous vehicles in about two years. Carmakers are investing heavily in alternative vehicle (AV) technology because of pressure from regulators in the US, China and Europe to cut carbon emissions.

Source: https://www.bbc.com/news/business-47644323

Google has been hit with a €1.49bn (£1.28bn) fine from the EU for blocking rival online search advertisers. It is the third EU fine for the search and advertising giant in two years. The case accuses Google of abusing its market dominance by restricting third-party rivals from displaying search ads between 2006 and 2016. In response, Google changed its AdSense contracts with large third parties, giving them more leeway to display competing search ads. "Google has cemented its dominance in online search adverts and shielded itself from competitive pressure by imposing anti-competitive contractual restrictions on third-party websites. "This is illegal under EU anti-trust rules," said EC commissioner Margrethe Vestager.

Source;https://www.bbc.com/news/business-47639228