Anna Zeitlin: Hi Brittany, really nice to welcome you today to our first ever episode of the Money Flows podcast. By way of a quick introduction, my name is Anna Zeitlin. I'm a partner at AG. I'm leading the FinTech and financial services practice. Brittany, we've been long-time friends, but perhaps you can introduce yourself.

Brittany McDonough: Yes, absolutely. Thank you for the invitation, Brittany McDonough. I am a long time UAE resident and very excited to be here for the podcast. I was most recently the Head of Innovation with the Abu Dhabi Investment Office, left over the summer and we have a lot of overarching work now in the FinTech space.

Anna Zeitlin: Incredible. I mean, it's such a journey and some really, really big names on your CV along the way. What made you finally make the leap from living in the US to coming to the UAE on a more permanent basis?

Brittany McDonough: There were three primary things. One, there is a unique moment in time here in the UAE and going back, you know, 2 ½, three years ago where all of these agreements were being signed. ADIO had just been created. So, the Abu Dhabi Investment Office is responsible for foreign direct investment into Abu Dhabi. So, it was a real vehicle and a partner for the private sector to be supported in an intentional way around, you know, 5-to-10-year long partnerships using rebate subsidies, different kind of schemes that are very common in government support services to empower companies to be here. But you're seeing in real time the development of an ecosystem that is super exciting. So being at the forefront of what these programmes can offer. And that was what first made me think this is a really great opportunity to be here and then plant a flag and stay.

Anna Zeitlin: So, I totally see that actually. I mean, we're doing a lot of work with financial services clients, but those particularly in the blockchain industry, the virtual assets industry. And we're seeing a true birth of an ecosystem here at the moment. And it's very exciting both from a legal perspective where we're helping a lot of clients shape the regulation and lobby the authorities to grow that regulation to meet their business models. But also, just to see the flourishing of all of the seeds of hard work that have been planted over the last few years in the UAE. 

One of my pet topics, and I think that it's really been a buzzword in the region now for a couple of years is, is crypto. Have you worked with many virtual asset clients? Perhaps you can tell us a bit more about those that you have?

Brittany McDonough: Yeah, I think that's one of the industries and clusters here that's going to see explosive growth over the next couple years. There are a critical mass of companies, whether it's through Solana or through being regulated in ADGM. Hub 71 actually has a digital assets, both a working group, so for leaders to come together. They also have a market entry programme for a digital asset companies. So there's groups like Fuse that are doing a lot of really good work. And then Zebu is another company that I really like. They have a solid team here, like a couple dozen people, which is like a large team for a Web3 company. I think the companies though, navigating the crypto market in the landscape is a little bit difficult. 

So, in finding attorneys is actually hard as well. So, are you guys working with crypto companies?

Anna Zeitlin: Yeah, I mean, absolutely. We had a hand in our last firm at setting up the virtual asset regulatory authority here. And indeed we do a huge amount of work with crypto currency companies and more broadly the blockchain and digital asset companies that support those crypto companies. 

I think lots of lawyers in the region are having a go at FinTech, but to really call yourself a specialist is, it's not easy to do that.  And I think that it shouldn't be, that word shouldn't be thrown around too lightly, to be honest with you. I mean, we have a huge number of clients in the digital asset space who are looking for counsel with all parts of their business, but really requiring lawyers to have a deep understanding of how the technology works. And I think that that is a real challenge for FinTech lawyers to not just have, you know, an impeccable legal standard of advice, but also to really understand how these businesses work and, and how that technology works. And I think that that's probably one of the most interesting growth areas that we will see in the region. 

I last night quite late was putting together a contract for a company in the blockchain space. Incredible. But some of the points were just so technical. I don't think that law school would have ever prepared me for this or indeed much of my experience to date. So, I think I personally spend a good hour or two of my day reading up on technological developments and general sort of corporate developments in that space because I think if you don't, you fall behind.

Brittany McDonough: 100% and it makes a difference. I think there was a moment, you know, after some of the undulation within the crypto space where like the term crypto was almost like a bad word, right? 

Anna Zeitlin: Absolutely. 

Brittany McDonough: It doesn't always land that crypto could also represent a real-world asset that's just being digitised or digitalised. It's an opportunity for inclusivity in an economic space where historically there might not have been that access.

Anna Zeitlin: Absolutely. I was giving some presentations last week to banking clients in Saudi and it was so interesting to see how some relatively basic concepts have just been spoken about in such a way that people almost feel like they can't ask what does this really mean and how does that really impact us and how does that really affect us? And I think part of our job in our space is to educate, and not in a patronising way, but simply because we are all students in this world. The technology is developing so fast. Anyone who claims to be, you know, a complete expert probably isn't. 

On the note of regulators. I mean, as a lawyer, I'm always looking at things through a legal and regulatory lens and I'm always sort of thinking about what could be improved in order to help really grow that ecosystem and help more and more companies come to the region and really flourish. 

From your perspective, what do you think that the regulators or the authorities could do to improve things and what do you think they've already been doing that has worked really well?

Brittany McDonough: So, in terms of what's worked really well-being so available to have conversation, I think is second to none literally in the world. That opportunity for a company to have that conversation and have a real dialogue is invaluable. 

What I think needs to exist somewhere, whether it's within the regulator or maybe even a federal level is an actual just checklist of what companies need to do and anticipating those steps. I think that is something that will because the private sector can do this. So, you know, if Forbes and their Middle East magazine wants to publish, you know, a checklist of like how to do this, that's awesome. But that's a perspective from outside of the kind of where the buck ends group. There needs to be some type of very clear delineated path. I think that would make it a lot easier for a lot of companies because there's going to be deviation points at every one of those boxes. And so, it might be 1 box, but that one box might take six months and have 15 steps into it.

Anna Zeitlin: Yeah, I mean so much, so much of our job as lawyers is actually to help guide companies through those steps. And it's interesting, The Economist produces a, a sort of a, a comparative graph every year on the ease of doing business and in particular how easy it is to enter a particular market. And I always find that our region really comes quite high on the top of the country's most difficult to do business, most difficult to enter the market. And it's a pity because there is a wealth of opportunity here and people are ready to do business. We see that with the regulators here unlike anywhere else in the world. But definitely there is still that opacity that needs to be dealt with. And certainly, it's something that we help a lot of clients navigate, but it would be great if we could see a perhaps more joined up approach from the number of authorities and the number of regulators in the region. 

I spent probably a couple of hours last week sitting down with one of the regulators from the FSRA looking at how a client of ours has a very new innovative idea that simply just doesn't fit within their regulatory regime. And the regulator made time for me to come sit down and discuss how we can fit within parts of their regime, how we can perhaps lobby for change and other parts of their regime. I just don't think that would happen elsewhere in the world, certainly wouldn't happen in the UK, don't think it would happen in the US either. So, it's a unique opportunity that we have in this region to foster those relationships.

Brittany McDonough: On the regulator point, I admire both ADGM, Vara, the folks that are responsible for the growth of this Web 3 cluster, they take this role so seriously as something that they care about and they see a legacy in making the UAE the home really for Web 3 and crypto. Being able to interface with the regulator and have a conversation about what fits, what doesn't, changes the way that a scale up startup is able to then build their business and grow their team.

Anna Zeitlin: So unfortunately, we're drawing to a close and we have a question for all of our interviewees of which you are the 1st, so also the first to answer this question. And that is what are your predictions for the next 12 months in the region? I suppose yours might have a particular start up focus, but even some wider predictions would be most welcome.

Brittany McDonough: Yeah, I think there is nothing but opportunity here. And I think the next year we'll see more venture groups from the US opening up offices here. The past year was the first time I have a number of friends from Miami that moved over, and they are setting up funds. So, I think we're going to see a real growth in the number of venture capital funds that are open in the UAE with principles that are investing locally and regionally. Super, super excited for that. 

I think we're going to see in an increased talent pool of folks that are living, working, thriving in the UAE from abroad that want to be here and especially the with the non-Dom actions in the UK, we're going to see a different kind of group of potential investors on that side. And overall, I think we're just going to see just growth in both Abu Dhabi, Ras Al Khaimah, Dubai in terms of offerings, capacity, and just the number of people that are going to be here.

Anna Zeitlin: Brittany, thank you. It's been a pleasure. Thank you very much for appearing on our very first podcast episode. It's been super engaging conversation. We could have stayed all day, but unfortunately, we had to wrap it up. But we look forward to working with you again very soon.

Brittany McDonough: Thank you. It has really been a delight. Congratulations on the podcast and much success.

Anna Zeitlin: Thank you.