The woes of Telegram founder Pavel Durov are likely to mark a watershed for when positive sentiment around the global technology sector peaked.
It is not just about the messaging service company. The shockwaves of the actions by authorities in France against Mr Durov will probably herald a more circumspect attitude to what was assumed to be the unlimited potential of technology companies in general.
Clouds are hovering. Nvidia, a darling of investors, has seen the remarkable bull run on its share price stall, as the outlook for the chipmaker and AI’s potential impact lose some of the euphoria of the past year. Meanwhile, Apple is battling regulators in different regions, including the UK, forced to defend the dominant position it owes to the ubiquitous iPhone. These are just two illustrations of what has become a trend.
Telegram’s own run-ins with governments are nothing new, but the detention of its chief is unprecedented in the story of how global technology companies emerged to dominate 21st-century life. There should be a wariness among analysts, investors, employees and users about what could come next for the sector in terms of government regulation.
We are now well beyond the theatre of US congressional hearings, with Meta’s Mark Zuckerberg, in particular, under greater scrutiny, but which resulted in little tangible consequences for how they operate.
Another person in the spotlight – but one who arguably seeks out confrontation – is Elon Musk. Having turned what was Twitter, the world’s “town square”, into X, his own personal megaphone, he has frequently flirted with the line between confidence and arrogance. Yet like Mr Zuckerberg, he has not yet been subject to any serious government intervention.
Cult of personality has always been a part of success in tech. So it is not surprising that people associate these platforms with the men running them
Mr Durov is, however, a bit of a contradiction in comparison to his peers. He comes across as old Hollywood, with the physique and mystique of a 1950s movie star while espousing the neo-geek chic of the messianic Neo character in The Matrix movie franchise. His own attitude to family life, as well as the remote fathering of many children as a sperm donor, evokes more a Howard Hughes vibe than that of a Patagonia-wearing Silicon Valley tech bro.
Still, cult of personality has always been a part of success in tech, for good and ill, and so it is not surprising that people associate these platforms with the men (and it is usually men) running them. Blame for failures should fall on them, too, then. Yet none of the above, other than Mr Durov, have ever been charged with any crime despite the catalogue of problems and issues caused by actions taken by users on their sites over many years.
That’s despite content moderation, in particular, remaining a flash point between technology companies and authorities, and one that has afflicted almost every site.
The journey goes a little something like this: at first, there is little concern beyond the content being needed to bring the users. So, the content drives advertising revenue. So far, so good. But the content also represents danger to the integrity of institutions and elections, and to people – most importantly children. Ultimately, when things go too far, there will be a wringing of hands. Some money will be thrown at the problem, but it will never go away because it is intrinsic to the business model of these platforms.
Muddying the waters, there is often – and in Telegram’s case, too – a distraction in the form of debates about how clamping down on content affects free speech and human rights. Yes, these issues are important, but they make us forget too quickly that these large companies are businesses with the power of governments. When Mr Musk and others promote rhetoric about free speech, it is better to watch what they do, rather than what they say. Profit is always the most important factor and that will undermine anything else.
Over the past decade, the situation has improved though, and online content has lost some of its early Wild West atmosphere in favour of a kind of semi-autonomous chaos theory. Some resources have been directed at controlling the quality and veracity of what is seen by users. It is an uphill battle. The scale of the task and, by implication, its potential stymying of platform growth has led to the results being less than satisfying for all parties.
For example, Meta has admitted having taken content down at the request of the US government, and Mr Zuckerberg recently expressed regret over some of these decisions. Globally, regulators, law enforcement agencies and authorities might argue that tech industry co-operation is, at best, patchy.
With the advent of the era of Generative AI, the technology could push us in two very different directions. First, the borders of what information AI can, and should, have access to are already porous. In addition, while AI would, in theory, allow the filtering and censoring of almost any content we choose, to be done quickly and automatically, this would certainly have implications for free speech. Equally, because individuals have such powerful AI capabilities at their fingertips, creating their own content in seconds could easily return us to a Wild West where anything goes.
As we navigate the way forward, the executives controlling the platforms will have to tread very carefully about how they use their influence and positions. No matter how big they might seem now as personalities, they should not be complacent about their own positions.
Even Jack Ma fell from grace. He was once an inspiration for a whole generation of ambitious young Chinese would-be entrepreneurs. Now he is a cautionary tale about the limits of power, for anyone seeking to follow in the footsteps of Alibaba’s co-founder.
Should Mr Durov’s experience prove to be an isolated case and not a sign of things to come, then we would have at least learnt that it is safer to build a global technology platform if you are American.
'Skin'
Dir: Guy Nattiv
Starring: Jamie Bell, Danielle McDonald, Bill Camp, Vera Farmiga
Rating: 3.5/5 stars
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About Tenderd
Started: May 2018
Founder: Arjun Mohan
Based: Dubai
Size: 23 employees
Funding: Raised $5.8m in a seed fund round in December 2018. Backers include Y Combinator, Beco Capital, Venturesouq, Paul Graham, Peter Thiel, Paul Buchheit, Justin Mateen, Matt Mickiewicz, SOMA, Dynamo and Global Founders Capital
T20 World Cup Qualifier
October 18 – November 2
Opening fixtures
Friday, October 18
ICC Academy: 10am, Scotland v Singapore, 2.10pm, Netherlands v Kenya
Zayed Cricket Stadium: 2.10pm, Hong Kong v Ireland, 7.30pm, Oman v UAE
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Ashfaq Ahmed, Rameez Shahzad, Darius D’Silva, Mohammed Usman, Mohammed Boota, Zawar Farid, Ghulam Shabber, Junaid Siddique, Sultan Ahmed, Imran Haider, Waheed Ahmed, Chirag Suri, Zahoor Khan
Players out: Mohammed Naveed, Shaiman Anwar, Qadeer Ahmed
Players in: Junaid Siddique, Darius D’Silva, Waheed Ahmed
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.”
Results
6.30pm: The Madjani Stakes (PA) Group 3 Dh175,000 (Dirt) 1,900m
Winner: Aatebat Al Khalediah, Fernando Jara (jockey), Ali Rashid Al Raihe (trainer).
7.05pm: Maiden (TB) Dh165,000 (D) 1,400m
Winner: Down On Da Bayou, Royston Ffrench, Salem bin Ghadayer.
7.40pm: Maiden (TB) Dh165,000 (D) 1,600m
Winner: Dubai Avenue, Fernando Jara, Ali Rashid Al Raihe.
8.15pm: Handicap (TB) Dh190,000 (D) 1,200m
Winner: My Catch, Pat Dobbs, Doug Watson.
8.50pm: Dubai Creek Mile (TB) Listed Dh265,000 (D) 1,600m
Winner: Secret Ambition, Tadhg O’Shea, Satish Seemar.
9.25pm: Handicap (TB) Dh190,000 (D) 1,600m
Winner: Golden Goal, Pat Dobbs, Doug Watson.
The five pillars of Islam
Day 2, Dubai Test: At a glance
Moment of the day Pakistan’s effort in the field had hints of shambles about it. The wheels were officially off when Wahab Riaz lost his run up and aborted the delivery four times in a row. He re-measured his run, jogged in for two practice goes. Then, when he was finally ready to go, he bailed out again. It was a total cringefest.
Stat of the day – 139.5 Yasir Shah has bowled 139.5 overs in three innings so far in this Test series. Judged by his returns, the workload has not withered him. He has 14 wickets so far, and became history’s first spinner to take five-wickets in an innings in five consecutive Tests. Not bad for someone whose fitness was in question before the series.
The verdict Stranger things have happened, but it is going to take something extraordinary for Pakistan to keep their undefeated record in Test series in the UAE in tact from this position. At least Shan Masood and Sami Aslam have made a positive start to the salvage effort.
New process leads to panic among jobseekers
As a UAE-based travel agent who processes tourist visas from the Philippines, Jennifer Pacia Gado is fielding a lot of calls from concerned travellers just now. And they are all asking the same question.
“My clients are mostly Filipinos, and they [all want to know] about good conduct certificates,” says the 34-year-old Filipina, who has lived in the UAE for five years.
Ms Gado contacted the Philippines Embassy to get more information on the certificate so she can share it with her clients. She says many are worried about the process and associated costs – which could be as high as Dh500 to obtain and attest a good conduct certificate from the Philippines for jobseekers already living in the UAE.
“They are worried about this because when they arrive here without the NBI [National Bureau of Investigation] clearance, it is a hassle because it takes time,” she says.
“They need to go first to the embassy to apply for the application of the NBI clearance. After that they have go to the police station [in the UAE] for the fingerprints. And then they will apply for the special power of attorney so that someone can finish the process in the Philippines. So it is a long process and more expensive if you are doing it from here.”
If you go:
The flights: Etihad, Emirates, British Airways and Virgin all fly from the UAE to London from Dh2,700 return, including taxes
The tours: The Tour for Muggles usually runs several times a day, lasts about two-and-a-half hours and costs £14 (Dh67)
Harry Potter and the Cursed Child is on now at the Palace Theatre. Tickets need booking significantly in advance
Entrance to the Harry Potter exhibition at the House of MinaLima is free
The hotel: The grand, 1909-built Strand Palace Hotel is in a handy location near the Theatre District and several of the key Harry Potter filming and inspiration sites. The family rooms are spacious, with sofa beds that can accommodate children, and wooden shutters that keep out the light at night. Rooms cost from £170 (Dh808).
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More on animal trafficking
AGL AWARDS
Golden Ball - best Emirati player: Khalfan Mubarak (Al Jazira)
Golden Ball - best foreign player: Igor Coronado (Sharjah)
Golden Glove - best goalkeeper: Adel Al Hosani (Sharjah)
Best Coach - the leader: Abdulaziz Al Anbari (Sharjah)
Fans' Player of the Year: Driss Fetouhi (Dibba)
Golden Boy - best young player: Ali Saleh (Al Wasl)
Best Fans of the Year: Sharjah
Goal of the Year: Michael Ortega (Baniyas)
Countdown to Zero exhibition will show how disease can be beaten
Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a month before Reaching the Last Mile.
Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.