Telegram founder Pavel Durov's attitude to family life evokes more a Howard Hughes vibe than that of a Patagonia-wearing Silicon Valley tech bro. Reuters
Telegram founder Pavel Durov's attitude to family life evokes more a Howard Hughes vibe than that of a Patagonia-wearing Silicon Valley tech bro. Reuters
Telegram founder Pavel Durov's attitude to family life evokes more a Howard Hughes vibe than that of a Patagonia-wearing Silicon Valley tech bro. Reuters
Telegram founder Pavel Durov's attitude to family life evokes more a Howard Hughes vibe than that of a Patagonia-wearing Silicon Valley tech bro. Reuters


Is Pavel Durov's arrest a cautionary tale for 'tech bros' outside America?


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September 06, 2024

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.

Elon Musk has frequently flirted with the line between confidence and arrogance. Reuters
Elon Musk has frequently flirted with the line between confidence and arrogance. Reuters
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.

Jack Ma was once an inspiration for a whole generation of ambitious young Chinese would-be entrepreneurs. Getty
Jack Ma was once an inspiration for a whole generation of ambitious young Chinese would-be entrepreneurs. Getty

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.

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

Results

5pm: Maiden (PA) Dh80,000 (Turf) 2,200m; Winner: Gurm, Antonio Fresu (jockey), Eric Lemartinel (trainer)

5.30pm: Handicap (PA) Dh80,000 (T) 1,600m; Winner: Al Nafece, Al Muatasm Al Balushi, Mohammed Ramadan

6pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,200m; Winner: Ashton Tourettes, Adrie de Vries, Ibrahim Aseel

6.30pm: Arabian Triple Crown – Group 3 (PA) Dh300,000 (T) 2,200m; Winner: Ottoman, Adrie de Vries, Abdallah Al Hammadi

7pm: Liwa Oasis – Group 2 (PA) 300,000 (T) 1,400m; Winner: Hakeemat Muscat, Szczepan Mazur, Ibrahim Al Hadhrami

7.30pm: Handicap (TB) Dh80,000 (T) 1,600m; Winner: Ganbaru, Antonio Fresu, Musabah Al Muhairi

Vidaamuyarchi

Director: Magizh Thirumeni

Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

Rating: 4/5

 

The Case For Trump

By Victor Davis Hanson
 

UAE currency: the story behind the money in your pockets
Episode list:

Ep1: A recovery like no other- the unevenness of the economic recovery 

Ep2: PCR and jobs - the future of work - new trends and challenges 

Ep3: The recovery and global trade disruptions - globalisation post-pandemic 

Ep4: Inflation- services and goods - debt risks 

Ep5: Travel and tourism 

Avatar%20(2009)
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EJames%20Cameron%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ESam%20Worthington%2C%20Zoe%20Saldana%2C%20Sigourney%20Weaver%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A
The Brutalist

Director: Brady Corbet

Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn

Rating: 3.5/5

Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

The Perfect Couple

Starring: Nicole Kidman, Liev Schreiber, Jack Reynor

Creator: Jenna Lamia

Rating: 3/5

F1 The Movie

Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills

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.”

First Person
Richard Flanagan
Chatto & Windus 

Updated: September 08, 2024, 2:37 PM