– Fintechs focused on remittances are capturing legacy lenders’ market share – The UN and other bodies are calling for remittance fees to be capped at 3% – Emerging markets have been at the forefront of mobile-first fintech growth – Cryptocurrency is also increasingly disrupting the remittances space A number of remittance-focused financial technology (fintech) start-ups are gaining…
With the world economy heading into a complex post-pandemic recovery, GCC governments have outlined a wide-ranging set of environmental targets – and shone a stronger spotlight on sustainability. At a time when sustainable finance is reaching maturity in more developed markets, regulators and financial services providers across emerging markets are working to adapt environmental, social and governance…
– A first wave of M&A in GCC banking was prompted by the 2014 oil price crash – The coronavirus pandemic has given rise to the start of a second wave – Saudi Arabia and Qatar have seen major tie-ups finalised in recent months – Covid-19 fallout and an excess of smaller banks will prompt further consolidation More than a year after the initial onset of the coronavirus pandemic, the…
The UAE was relatively well placed to withstand the sudden shock of the Covid-19 pandemic thanks to its diversified economy, record forex reserves, moderate public debt levels, high credit rating and strong net external asset position. Home to a large number of expatriate workers, the country had become the world’s second-largest source of remittance outflows before Covid-19. Despite the subsequent…
Interview:Hareb Masood Al Darmaki What more can be done to minimise local banks’ exposure to potential risks from financial instabilities? HAREB MASOOD AL DARMAKI: The UAE’s banking system as a whole remains resilient with adequate capital, liquidity buffers, profitability and operational efficiency. With certain financial indicators, such as profitability or efficiency, the UAE banking…
Following GDP growth of 1.5% in 2019, a shift to a more expansionary fiscal stance in response to the Covid-19 pandemic and associated global economic downturn in the first half of 2020 has helped Abu Dhabi establish a springboard for continued growth moving forwards. While public spending and investment remain important drivers of economic expansion, a major overhaul of the investment framework a
Interview:Khalifa Salem Al Mansouri How is financial innovation impacting local capital markets and streamlining business operations? KHALIFA SALEM AL MANSOURI: According to the 2019 “MENA FinTech Venture Report” the UAE is the largest financial technology (fintech) centre in the region, accounting for 46% of all fintech start-ups, as well as 47% of all deals and 67% of total fintech funding. In…
Interview:Ebrahim Obaid Al Zaabi To what extent could greater consolidation in the insurance sector help lower pressure on margins, and could regulatory reform help in this regard? EBRAHIM OBAID AL ZAABI: The desire of investors and international insurance companies to operate in the UAE reflects the strength and solvency of the local market. After the full implementation of the financial regulations…
Despite the adverse effects of a low oil price environment over recent years, Abu Dhabi’s banking sector has remained well capitalised with a high degree of liquidity. Meanwhile, its financial performance has been characterised by rising net profits and lower cost-toincome ratios. A recent phase of consolidation has significantly altered the structure of the local market, with the larger…
In terms of gross written premium (GWP), the UAE’s insurance market has ranked first within the MENA region since 2008. In 2018 it had the highest insurance penetration and density levels in the GCC, at 2.9% of GDP and $1195, respectively. Abu Dhabi’s insurers play an important role in the sector, but as of 2020 they faced a number of changes to the domestic business environment, including new…