Veteran Middle East CEO says business in the region isn’t retreating—it’s resetting
In today’s CEO Daily: A CEO in the UAE has a message for Western peers. The big leadership story: The case for a Space X-Tesla merger. The markets: Mixed globally as investors await developments on an Iran peace deal. Plus: All the news and watercooler chat from Fortune. Good morning. What’s it like doing business in the Middle East right now? The Strait of Hormuz has closed again, a lasting U.S.-Iran peace deal remains elusive, and global airline profits have been cut in half this year, according to IATA, which blames high fuel costs and war-related disruptions in the Middle East. Visitor arrivals to the region dropped 14% in the first quarter. You could be forgiven for thinking things look dire. But that’s not the case, argues Johannes Hummer, the Dubai-based CEO of Freedom Telecom International, an arm of Freedom Holding Corp., which helps telecom operators embed fintech services into their platforms, primarily across emerging markets. He’s spent more than a decade operating out of the region and previously ran Vodafone’s Middle East and Africa business. His message to Western executives watching from a distance: the companies showing up right now are the ones that will own the next chapter of Gulf growth. Hummer points out that while the UAE reported 13 deaths from the fallout of drone attacks early on, there have been no fatalities reported since late March. He says local companies are using the war-related downturn to improve their operations and infrastructure. “Hotels are closing down for innovation, doing long-overdue maintenance and getting ready for autumn when the season comes back up,” he told me recently, pointing to the government’s rollout of a range of new infrastructure projects, too. “Traffic was getting out of control because too many people came in and the infrastructure couldn’t keep up. Now, they’re focusing on getting it right.” Moreover, he notes that companies like Revolut and Nubank have recently moved headquarters to Duba