Financial Services
From The Report: Sharjah 2023
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Sharjah’s financial services sector features prominent banks and a thriving insurance industry. The financial technology space is also advancing, propelled by national strategies promoting digital finance and Sharjah’s commitment to innovation. The sector is subject to Emiratisation policies, with an aim for the sector’s workforce to include 45% Emirati nationals by 2026. Additionally, the UAE’s financial landscape is adapting to sustainable finance, evident in Sharjah’s issuance of the GCC’s first sustainable sovereign bond in 2023. The insurance sector is also undergoing transformation, with the Central Bank of the UAE overseeing its development and adherence to stringent solvency guidelines. The future outlook remains positive, driven by the UAE’s economic growth, and initiatives fostering innovation and sustainability.

This chapter contains interviews with Khaled Mohamed Balama, Governor, Central Bank of the UAE; Mohamed Khadiri, CEO, Bank of Sharjah; and Ahmad Abu Eideh, CEO, Invest Bank.

Articles from this Chapter

Overview

Securing a foothold: Banks and insurers have carved out a dependable and secure local base with the support of the emirate’s government
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Sharjah is home to some of the UAE’s largest banks, along with a healthy insurance sector. Local government and corporate entities are also active in the debt and Islamic bond markets, while 2023 saw Sharjah launch a sustainable financial services framework that sets the rules for future green bond issuances. At the same time, the emirate has a fast-developing start-up and financial technology (fintech) scene, aided by the UAE’s overall strategies to encourage digital finance, as well as Sharjah’s…

Interview

Technological breakthroughs: Khaled Mohamed Balama, Governor, Central Bank of the UAE (CBUAE), on the importance of innovation in finance
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Interview:Khaled Mohamed Balama To what extent can the regulatory landscape help banks benefit from disruptive technologies? KHALED MOHAMED BALAMA: The regulatory landscape in the UAE is under continuous review to ensure that it develops in line with the changes seen in financial technology. As such, we are constantly updating regulations to enable the responsible use of emerging technologies, such as artificial intelligence, blockchain and financial cloud, while at the same time ensuring…

Interview

Future equipped: Mohamed Khadiri, CEO, Bank of Sharjah, on the evolving importance of banks amid sector changes
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Interview:Mohamed Khadiri What role do you see banks playing in Sharjah’s longterm economic development and diversification? MOHAMED KHADIRI: Banks in the emirate play a crucial role in providing financial services, capital and investment opportunities to businesses and individuals. They support economic growth by providing loans, facilitating trade, and promoting saving and investment among individuals. Additionally, banks contribute to the diversification of the economy by financing projects…

Analysis

On the up: The macroeconomic climate is set to boost public offerings
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The GCC saw a rise in initial public offerings (IPOs) in 2022 despite volatility in secondary markets, surpassing the previous year’s record high. The total number of IPOs in the region increased from 20 in 2021 to 48 in 2022, marking a 140% rise, and proceeds from GCC issuers increased by 211% from $7.5bn to almost $23bn over the same period. The growing number of successful IPOs in the region has resulted in greater interest from investors. Following an uptick in activity in the UAE and Saudi…

Interview

Keeping pace: Ahmad Abu Eideh, CEO, Invest Bank, on the response of financial institutions to international economic trends
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Interview:Ahmad Abu Eideh What has been the banking sector’s response to recent shifts in the global economic landscape? AHMAD ABU EIDEH: The banking sector has witnessed a multifaceted response to the current global economic landscape. Lenders have been navigating a high-interest rate environment, which is challenging for legacy institutions that have historically offered premium rates in order to attract deposits. To adapt, banks have been conducting repricing exercises, balancing the…

Analysis

Crypto rush: Decentralised financing could play an important role in GCC countries’ efforts to diversify their economies
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As GCC countries look to harness new forms of financial technology (fintech), expand services and improve financial inclusion, governments are embracing decentralised finance (DeFi) and attracting cryptocurrency companies. DeFi – peer-to-peer financial services with no central authority or intermediary involved in trading, lending and investing – is seen by GCC countries as an opportunity to diversify their economies and embrace Web3 technologies, such as blockchain, the internet of things and…