At Formula One’s Miami Grand Prix in May, the displays of cryptocurrency companies sponsoring the sport were inescapable, with Crypto.com’s blue branding covering every imaginable surface along the racetrack.
When Singapore hosts the most popular motor sport this weekend, the visibility of digital assets will be far more subdued.
The Monetary Authority of Singapore will let teams show their cryptocurrency sponsors’ logos only on cars and uniforms at the Singapore Grand Prix, but no advertising will be permitted around the track or in the local area.
The shift underscores the changing mood around cryptocurrency, both from a regulatory and a financial standpoint.
Jurisdictions in Singapore, the UK and France have intensified scrutiny this year after digital asset prices soured, billion-dollar projects collapsed and major market players went bankrupt.
As a result, F1’s newest throng of advertisers are finding ways to make their mark without moving too boldly.
The rout in cryptocurrencies in recent months, which has wiped out around $2 trillion in value since November, has left cryptocurrency brands more cash-strapped but still keen to maintain what they have already invested to keep a foothold on the world stage.
Jeremy Walls, a senior executive for the Miami venue who helped to close the deal with Crypto.com, said that current market dynamics may make cryptocurrency companies “be a little more thorough and thoughtful” about the deals they sign going forward.
“I’m still seeing people doing crypto partnerships now, it’s just maybe not the pace that it once was,” Mr Walls said.
Partnering with an F1 team has turned into a status symbol for cryptocurrency companies, a flashy multi-million-dollar accessory that signals affluence and success at a time when market prices reflect the opposite.
Around 80 per cent of F1 teams have at least one cryptocurrency partner, in addition to Formula One Group itself, which has its own $100 million deal with Crypto.com.
Zak Brown, head of McLaren Racing, said that F1 teams “don’t want to get left behind” when a new sponsor or trend emerges.
McLaren signed a five-year deal worth hundreds of millions of dollars with cryptocurrency exchange OKX in May and will debut a special cryptocurrency-themed car for the circuits in Singapore and Japan in compliance with the stricter advertising guidance.
Rob Bloom, chief marketing officer at Aston Martin Lagonda Global Holdings’s F1 team, said the need to alter sponsor branding to suit different locations is par for the course in the sport.
Certain locations require bans on alcohol or tobacco marketing, for example, where companies like Philip Morris International historically showed the shape or coloured branding of their cigarettes without actually displaying a logo.
Aside from emblazoned logos across drivers’ uniforms and cars, F1 teams are also getting into cryptocurrency themselves. Several now offer fan tokens — team-specific cryptocurrency assets that can be earned, traded and used to pay for experiences or rewards — and non-fungible tokens assigned to individual car parts.
What makes F1 a promising proposition for sponsors is the sport’s global and loyal audience. Next year’s competition is expected to reach a record of 24 races in 21 countries, held over the course of nine months.
Cryptocurrencies - in pictures
Fans are also typically wealthier thanks to the sport’s high cost of entry, where tickets start at hundreds of dollars and TV channels pay high fees for exclusive broadcasting rights.
Whether cryptocurrency companies will be able to keep up the pace of deal-making in sports remains unclear, with waning demand for digital assets now taking its toll.
Crypto.com and Bybit were among several major companies to lay off staff earlier this year, while the likes of FTX opt to value their F1 partnerships on an annual basis, according to Avi Dabir, the exchange’s vice president for business development.
Since signing with Mercedes, Mr Dabir said FTX had seen a “noticeable” increase in new customers, as well as more interest from existing clients who want to take advantage of access to F1 races.
McLaren also had a previous cryptocurrency partner in Turkish exchange Bitci.com, which at the time was the first to run a fan token for an F1 team.
The deal was quietly wound up in February after less than a year, Bloomberg reported at the time, along with two other Bitci.com deals with European football clubs after it failed to make payments to certain partners.
“That was one that we jumped into pretty quickly,” Mr Brown said. “You need to do your homework to understand” a cryptocurrency deal. As a result, the subsequent partnership with OKX was scrutinised by a 15-person external advisory board, he said.
Due diligence has become even more important this year amid a spate of major cryptocurrency collapses, in addition to rising regulation.
McLaren is now exploring a new fan token with OKX, which it hopes to launch in 2023 after taking its time to ensure “really robust” development, the team’s director of licensing, e-commerce, e-sports and gaming, Lindsey Eckhouse said.
Despite racing team sponsorships typically being more expensive than other sports, Crypto.com chief marketing officer Steven Kalifowitz said its F1 deals were among the first that the exchange made.
“I was really looking for ways to meet a global audience and meet them quickly,” Mr Kalifowitz said. “F1 really delivers on that in a way I don’t think really any other sport does.”
But with cryptocurrency hovering around yearly lows and the general economic environment signalling a potential turn for the worse, the future of F1’s multiyear deals hang in the balance.
It is typical in the sport for partners to come and go, if a sponsor suddenly cannot meet the millions of dollars required to stay in the race, said Ted Dobrzynski, president of F1 sponsorship agency VIAGP.
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MATCH INFO
Uefa Champions League, Group C
Liverpool v Red Star Belgrade
Anfield, Liverpool
Wednesday, 11pm (UAE)
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Directed by Sam Mendes
Starring Dean-Charles Chapman, George MacKay, Daniel Mays
4.5/5
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
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%3Cp%3EAuthor%3A%20S%20Frederick%20Starr%3Cbr%3EPublisher%3A%20Oxford%20University%20Press%3Cbr%3EPages%3A%20290%3Cbr%3EAvailable%3A%20January%2024%3C%2Fp%3E%0A
'Nightmare Alley'
Director:Guillermo del Toro
Stars:Bradley Cooper, Cate Blanchett, Rooney Mara
Rating: 3/5
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
The Pope's itinerary
Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport
Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial
Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport
Jumanji: The Next Level
Director: Jake Kasdan
Stars: Dwayne Johnson, Kevin Hart, Karen Gillan, Jack Black, Nick Jonas
Two out of five stars
