FinaMaze, a hybrid asset manager regulated by the Abu Dhabi Global Market, unveiled two new investment themes – cryptocurrency and inflation protection – for professional investors on Tuesday.
A hybrid asset manager offers investment advice through a combination of human experience and machine learning outcomes.
FinaMaze also offers generalised cross-asset-class investments in US, European, Gulf, Indian and Chinese stocks, fixed income, commodities and currencies, thematic investments in different sectors and geographic regions and specialised investments.
FinaMaze's "opportunistic" investment themes were in response to rising demand for cryptocurrency. It also claims to be the first robo-advisory offering cryptocurrency investment solutions in the Mena region.
We will never recommend to put a significant share of clients' wealth into opportunistic portfolios
"Such investments are made to benefit from market opportunities, but cannot be used to sustain a large portion of our customers' wealth. They complement an already existing portfolio," Mehdi Fichtali, chief executive and founder of FinaMaze, told The National.
“We will never recommend to put a significant share of clients’ wealth into opportunistic portfolios. Instead, they can put 50 per cent to 60 per cent of their wealth into generalist portfolios.”
Robo-advisers have become popular within the wealth management sector because algorithms can crunch large and intricate data sets across different parameters faster and more precisely and at greater volumes than most people.
In addition, they reach a historically underserved market of middle-class investors unable to access portfolio management services due to minimum investment requirements.
Launched during the FinTech Abu Dhabi 2020 forum in November 2020 and regulated by the ADGM’s Financial Services Regulatory Authority, FinaMaze customises profiles for investors from thousands of different options and then offers investment advice based on a combination of human experience and machine-learning outcomes.
The site’s in-house AI algorithm uses this information to determine each investor’s personality.
Clients then pick one or more investment themes – FinaMaze calls it a SmartFolio – across regional and global financial markets.
Under the cryptocurrency theme, FinaMaze offers four investment strategies: a diversified cryptocurrency basket including Bitcoin, Ethereum and Cardano, among others; a mix of cryptocurrency and blockchain companies; market-neutral (long altcoins versus short Bitcoin); and a contrarian Bitcoin, which tracks the digital currency’s inverse performance, Mr Fichtali said.
Cryptocurrencies are not licensed by the UAE Central Bank although a number of cryptocurrency exchanges have been given permission to operate within the ADGM.
The UAE dirham is the only legal tender in the country that is recognised by the Central Bank.
Under the market-neutral portfolio, clients make money based on the relative outperformance of altcoins against Bitcoin, he said.
Meanwhile, the “inflation-protection” portfolio aims to resolve investor concerns as inflation increases in the market.
“We designed a cross-asset-class SmartFolio that opportunistically profits from the inflation upsurge. It includes yield products, commodities, Swiss franc, real estate and structurally inflation-resistant sectors versus the S&P,” said Mr Fichtali.
FinaMaze charges a fee that ranges between 0.45 per cent and 0.95 per cent of a client’s investment per year, the founder said.
The wealth manager recently launched other opportunistic themes such as “China Dragon Tech Leaders” and “Covid-related” portfolios.
“The China Dragon Tech Leaders portfolio leverages on the massive sell-off in March when hedge fund Archegos Capital Management went bankrupt and dragged down Chinese tech stocks. The idea is to profit from the rebound of Chinese tech companies,” the chief executive said.
The “Covid-related” portfolio includes securities and stocks of companies, such as technology and biotech, which benefited from the pandemic in 2020. FinaMaze has also created a portfolio of stocks in companies that were hammered by Covid-19, such as airlines and tourism companies.
“Customers can invest in them to take advantage of a market rebound and the fast pace of vaccinations globally,” Mr Fichtali said.
The FinaMaze platform is intended for professional investors only and its hybrid human/machine model currently manages more than 100 portfolios, the statement added.
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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
