The Finance World Magazine| Edition: March 2023
The March edition of The Finance World Magazine (TFW) delves into the Zayed Ambition 2 project, which strives to investigate the feasibility of leveraging the UAE's burgeoning space economy for sustainable development. This initiative showcases the country's commitment to diversifying its economy and reducing its reliance on oil. In a featured interview, CEO Shaaista Khan Osman and Managing Director Osman Osman of Blu Blood share their insights about the event management industry in the UAE. This issue also includes insights from Sridhar Vembu, CEO of Zoho Corporation, on emerging AI tools, along with some advice for SMEs and startups. Through this edition, we also bring you insights on topics like the UAE's steadfast dedication to sustainable growth and development, Dubai surpassing global and regional tourism recovery levels, the sports industry emerging as a promising sector magnetizing international investors, and many more key informational articles in the finance sector. Keep yourself up to date with all financial sector news with our current news segments. Each person can find something unique from us. We believe our readers deserve real value from what we have to offer.
The March edition of The Finance World Magazine (TFW) delves into the Zayed Ambition 2 project, which strives to investigate the feasibility of leveraging the UAE's burgeoning space economy for sustainable development. This initiative showcases the country's commitment to diversifying its economy and reducing its reliance on oil.
In a featured interview, CEO Shaaista Khan Osman and Managing Director Osman Osman of Blu Blood share their insights about the event management industry in the UAE. This issue also includes insights from Sridhar Vembu, CEO of Zoho Corporation, on emerging AI tools, along with some advice for SMEs and startups.
Through this edition, we also bring you insights on topics like the UAE's steadfast dedication to sustainable growth and development, Dubai surpassing global and regional tourism recovery levels, the sports industry emerging as a promising sector magnetizing international investors, and many more key informational articles in the finance sector.
Keep yourself up to date with all financial sector news with our current news segments. Each person can find something unique from us. We believe our readers deserve real value from what we have to offer.
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Investing in Art<br />
Art as a Financial Asset: Investing in<br />
Art Stocks<br />
In the past, there was a notion that only certain individuals with specific skills,<br />
abilities, and interests were able to invest in art effectively. This stereotype<br />
created barriers for people from certain social classes, educational backgrounds,<br />
and economic status from entering the art world. However, over time, this belief<br />
has diminished, and the idea of investing in art is gaining broader acceptance.<br />
Over time, many hurdles<br />
and preconceptions about<br />
investing in artworks have<br />
been dispelled, and industry<br />
insiders have been more open to<br />
divulging their trade secrets to outsiders.<br />
Investing in art is now a chance that<br />
everyone can take advantage of, and<br />
the amount you gain has very little to<br />
do with where you begin. It may be<br />
a fantastic investment opportunity<br />
with a lot of study, preparation, and<br />
knowledge of the art industry.<br />
Recent big-ticket auction transactions<br />
have generated substantial interest<br />
around the fine art market. <strong>The</strong> artwork<br />
Shot Sage Blue Marilyn (1964) by Andy<br />
Warhol sold for a record-breaking $195M<br />
at an auction in May 2022. According<br />
to Art Basel and UBS Global Art’s 2022<br />
annual study, global art sales were<br />
expected to exceed $65.1B in 2021.<br />
This marked a 29% rise in sales from<br />
2020, exceeding pre-pandemic levels in<br />
2019. <strong>The</strong>y also discovered that sales<br />
volume rebounded from Covid-19 levels,<br />
climbing by 17% in 2021 to a predicted<br />
36.7 million transactions.<br />
Low Correlation to Traditional<br />
Markets<br />
Risk is always a factor to consider<br />
while investing. Market risk is the<br />
systemic risk inherent in the stock<br />
market that cannot be mitigated by<br />
diversification. During a market slump,<br />
no matter how many different index<br />
funds someone invests in, they will<br />
lose money. Artwork, on the other<br />
hand, is unrelated to any stock index<br />
or market. Buying art operates as a<br />
store of wealth wholly distinct from<br />
regular asset movements.<br />
According to a 2022 Citibank Report,<br />
the connection between art and all<br />
other asset classes is mildly positive<br />
or near to zero. Contemporary Art<br />
and Developed Equities exhibited<br />
a connection of -0.04 between 1985<br />
and 2021, while Contemporary Art<br />
and Investment Grade Fixed Income<br />
showed a correlation of 0.15. In fact,<br />
art had the highest association with<br />
real estate - another tangible asset<br />
sector - with a correlation of 0.21.<br />
No Price Depreciation<br />
While art may and has historically<br />
provided price appreciation, another<br />
key benefit of art as an asset is the lack of<br />
price decline. Art, unlike other tangible<br />
assets, as houses and automobiles, does<br />
not degrade after years of hanging on<br />
a wall. A 500-year-old picture is likely<br />
to be more valuable today than it was<br />
v<br />
108 www.thefinanceworld.com <strong>March</strong> <strong>2023</strong>