September Issue; Investors’ Outlook on What is Happening Around The World: The US faces economic uncertainties and a shift in interest towards tech amidst real estate concerns. India exhibits a mixed landscape with green tech advancements and ed tech stabilizing, yet witnessing some unicorns struggle. Mexico deals with political turmoil while offering attractive investment opportunities due to its proximity to the US. The UAE emerges as a promising business hub with a flourishing real estate sector and government support across industries. The UK experiences a pivot from tech to diverse investments, with observations of fluctuations in sectors like lithium.

What is happening in Canada?

Mira Sirotic, Director of Investors Relations at Maxwell Biosciences highlighted that in Canada, despite the fall season bringing vibrant hues to the landscape, challenges abound. The ongoing housing crisis is palpable, with a surge in mortgage renewal ads reflecting concerns over rising interest rates. In Ontario, debates are intensifying around green belt developments and a potential new highway, signaling infrastructural challenges and a balancing act between preservation and growth. The healthcare sector too is feeling the pinch, witnessing a decline in new entrants since the pandemic. Nonetheless, the business climate exhibits resilience, indicative of a nation navigating through both captivating and demanding times.

What is happening in Belgium?

Jeltsin Neckebroek, Investment Manager at EIT Food, shared that in Belgium and across Europe, there is a noticeable resurgence in interest and investment in the fields of food technology and agricultural technology. Following a lull in 2022 characterized by minimal deal flow, the past two quarters have marked a significant uptick in activity within these sectors. Large funds exceeding 100 million are currently being raised, with numerous family offices engaging in deals. This renewed enthusiasm mirrors trends observed three to four years ago but is anticipated to be more sustained compared to the pre-pandemic period, indicative of a rejuvenated and hopeful landscape in food tech and agri-tech.

What is happening in the US?

Anthony Jarrin, CEO at The Cannaregio Group, pointed out that the year has been marked by strong market performance in both public and private sectors, despite recent sell-offs and overarching concerns about interest rates. Political uncertainties loom, reflecting a global trend of instability, with upcoming elections poised to shape the nation’s future. However, a sense of resilience prevails, with the country maintaining a robust pace and sectors showing signs of recovery, even surpassing 2019’s revenues in some areas. Challenges are evident, particularly in operations, where a 30% increase in expenses has led to margin compression. The situation calls for innovative solutions through technology and other means over the next 12 months. Additionally, David Weaver, President Emeritus at City Side Ventures, LLC, said that the U.S. is witnessing a state of economic flux. With the stock markets in a downturn and commercial real estate proving less appealing, angel investing is emerging as an attractive option for many. Despite the challenging landscape and high operational costs curbing optimism for economic growth, there is a notable abundance of deal flow, with companies actively seeking transformative solutions. John Castro, Investor Management at The Faktory, also noted how in the heart of the country, Oklahoma presents a microcosm of varied economic activity. Despite being fairly rural, the area is not immune to the nationwide trends of rising mortgage rates and escalating cost of living. Abraham Zeigermann, MP at FoxStone Group, also stated that there is a sense of uncertainty in the investment world, with inflation acknowledged as a serious issue affecting a hurting population. The real estate sector anticipates challenges, with loans predicted to be underwater by 2025, and funds preparing for potential difficulties. This anticipation results in limited investments and a noticeable slowdown, as it is expensive to build, buy, and make returns. In contrast, there is a shift of interest towards tech, with many real estate professionals diversifying into this sector.

What is happening in Uganda?

Jon Bennion-Pedley, CEO at Investment Owl, mentioned how in Uganda, as in many parts of the world, there’s a sense of being on the brink of a financial precipice, with various factors threatening stability in different territories. While concerns over fixed-rate mortgages and union issues trouble the West, Ugandans find joy and a sense of unity in the shared hosting of the African Cup of Nations, alongside Kenya and Tanzania. This prestigious event has brought widespread euphoria, overshadowing the looming challenges of infrastructure, as the country grapples with the need to construct a new stadium within a limited timeframe and in a less structured economic environment. Despite the potential challenges, the spirit remains optimistic, embracing the opportunities that come with both ascent and descent on the financial spectrum.

What is happening in the UAE?

Suhail Ahmad, CEO at VentureBANC, stated how the UAE’s property market is notably vibrant, with strong prices and rapid sales of new developments, indicating a thriving real estate sector. This buoyancy is attributed to higher oil prices and an influx of people, fostering growth and instilling confidence in startups, especially in ventures, FinTech, healthcare, and sustainability. Such economic vibrancy and investor confidence in the UAE present a distinctly optimistic picture compared to the more cautious atmosphere observed in regions like the UK. Nahel Jarmakani, Co-Founder at GreenKey Facility Management Services Ltd, mentioned how the real estate sector’s strong performance is attracting significant investment into the country, contributing to the positive economic atmosphere. The government’s actions across various sectors also seem to be reinforcing this favorable business environment.

What is happening in the Netherlands?

Ajay Sharma, CEO at ASR Ventures, shared how the business climate is experiencing challenges, mirroring the country’s gloomy weather. The investment sentiment in the region is not as robust, particularly in light of rising interest rates, making it a tougher environment for projects like fiber deployment and infrastructural development. This contrasts with more vibrant growth prospects observed in the Middle East, Africa, and India, particularly in the telecom and energy sectors. As a result, companies based in the Netherlands are increasingly looking globally for investment opportunities, underscoring a shift in focus away from Europe to regions showcasing more dynamic economic landscapes.

What is happening in India?

Ramesh Kumar, Founder at Vishan Consulting, noted how the atmosphere is imbued with optimism, particularly in the domain of angel investing. Despite the current global environment, there is significant momentum in this asset class, with expectations of substantial returns and growth. Investors who have been focusing on deep-tech and high-tech areas since 2016 have experienced impressive returns, ranging from 4X to 20X, since 2021. Building on this success, there is an ongoing effort to establish a deep tech-oriented growth fund, aiming to raise $50 million this year, which has been well-received. India’s vibrant activities, such as landing on the moon and hosting the G20 summit, signal that the country still holds immense potential and vitality for the coming decades. In addition to that, Ambuj Mathur, MP at Indite Ventures LLP, pointed out how excitement in green tech contrasts with a stabilization in ed tech. Despite potential and optimism for the future, there’s a funding slowdown and some unicorns face devaluation, causing job losses and business closures. However, select sectors still attract capital, with investors increasingly focusing on asset protection and the bottom line, reflecting a mix of caution and hope in the market.

What is happening in Mexico?

Ricardo Zea, Chief Strategy Officer at ABEX Abogados Spain, highlighted how in Mexico, political turbulence marks the scene with a president facing growing unpopularity and two female candidates emerging for the upcoming presidential race, a historical first. Economically, Mexico presents appealing investment opportunities, benefiting from near-shoring phenomena and a strong peso. With high returns on investment and a growing FinTech sector, Mexico competes robustly in Latin America. The proximity to the United States enhances its attractiveness for businesses, particularly manufacturing for export.

What is happening in the UK?

Mina Nozari, Chief of Staff at LVC Global Holdings, stated that in the UK, there has been a noticeable shift in investment trends. Interest in the tech sector, which was prominent in 2020 and 2021, has seen a decline, possibly due to market saturation. Investors are diversifying and exploring various projects beyond technology. The market is gradually recovering, with notable developments in agri-tech and fluctuations in lithium projects, which are often acquired by Chinese or Russian entities.

The 144th GILC Summit acted as a global nexus, bringing together leading investment authorities to provide comprehensive insights into the evolving scenarios across various nations. To stay abreast of international financial trends, ensure your participation in the upcoming GILC Summit by registering here.