Abu Dhabi holding company ADQ received in-principle approval from the Central Bank of the UAE to launch Wio, a new digital banking platform.
The total invested capital in the Abu Dhabi-based Wio is Dh2.3 billion ($626 million) plus “in-kind contribution”, ADQ said in a statement on Friday.
The digital banking platform’s primary shareholders are ADQ and investments holding company Alpha Dhabi, which hold a controlling stake of 65 per cent. Etisalat holds 25 per cent, while First Abu Dhabi Bank, the UAE’s largest lender by assets, has the remaining 10 per cent, according to the statement.
“As part of our efforts to future-proof Abu Dhabi’s economy, we are committed to enhancing the financial services sector,” Mohamed Al Suwaidi, chief executive of ADQ, said.
“By delivering secure, transparent and seamless access to a cutting-edge, customer-centric digital banking platform, Wio’s unique business model will further strengthen the UAE’s digital economy that is already supported by robust infrastructure and progressive regulations.”
The rise of FinTech companies, an increasingly digital-savvy consumer base and a jump in digital services have forced banks globally to invest in digitisation.
The Covid-19 pandemic, which led to lockdowns and social distancing around the world, hastened the move into digital services as consumers switched to cashless payments and online shopping.
Digital-only banks are not a new concept in the UAE. In the first half of 2017, Emirates NBD launched Liv. bank, which is aimed at millennials. Mashreq, Dubai’s oldest lender, also unveiled Mashreq Neo in the same year.
Abu Dhabi Islamic Bank, the biggest Sharia-compliant lender in the emirate, launched a digital-only bank called Amwali last year to tap into the UAE’s growing segment of tech-savvy youths.
However, independent digital banks are also entering the market, including Al Maryah Community Bank, which secured a licence from the UAE Central Bank in April last year.
This was followed by the launch of the UAE’s first independent digital bank, Zand, which caters to retail and corporate clients.
Our Dh850m investment in Wio is part of the strategy we announced last December to invest in promising sectors within and outside the UAE
Hamad Al Ameri,
managing director and chief executive of Alpha Dhabi
Wio will enhance Abu Dhabi’s reputation as a global financial services centre at the leading edge of digital banking, FAB said.
Led by globally experienced FinTech experts, banking professionals and technology specialists, Wio will offer customers in the UAE a fully digital banking choice, the lender added.
“Our Dh850m investment in Wio is part of the strategy we announced last December to invest in promising sectors within and outside the UAE,” Hamad Al Ameri, managing director and chief executive of Alpha Dhabi, said.
The FinTech industry is a key driver of digital transformation in the UAE and has grown exponentially due to changing consumer payment behaviour, as well as new tech-driven offerings, according to Khalifa Al Shamsi, chief executive of Etisalat Consumer Digital.
“Customers are increasingly adopting contactless payments in physical stores as well as using fully digital financial products. Building on our FinTech portfolio, the Wio partnership is part of our strategy to meet growing consumer demands with 360-degree products and services that enhance their daily digital lives,” Mr Al Shamsi added.
ADQ, set up in 2018, holds government stakes in companies spanning key sectors of Abu Dhabi’s non-oil economy, including utilities, tourism and hospitality, aviation, transportation, logistics, industrial, real estate, media, healthcare, agri-foods and financial services.
Its portfolio includes Abu Dhabi Power Corporation, Emirates Nuclear Energy Corporation, Abu Dhabi Airports, Abu Dhabi Ports, Etihad Rail, Seha, insurer Daman, media companies Abu Dhabi Media and twofour54, and Abu Dhabi National Exhibitions Company, among others.
FAB was formed following a merger of First Gulf Bank and National Bank of Abu Dhabi in 2017.
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
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- Avoid leather interiors as these absorb more heat
Company%20profile
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
OPINIONS ON PALESTINE & ISRAEL
Full Party in the Park line-up
2pm – Andreah
3pm – Supernovas
4.30pm – The Boxtones
5.30pm – Lighthouse Family
7pm – Step On DJs
8pm – Richard Ashcroft
9.30pm – Chris Wright
10pm – Fatboy Slim
11pm – Hollaphonic
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
Tickets
Tickets start at Dh100 for adults, while children can enter free on the opening day. For more information, visit www.mubadalawtc.com.
ACL Elite (West) - fixtures
Monday, Sept 30
Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)
Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
Checks continue
A High Court judge issued an interim order on Friday suspending a decision by Agriculture Minister Edwin Poots to direct a stop to Brexit agri-food checks at Northern Ireland ports.
Mr Justice Colton said he was making the temporary direction until a judicial review of the minister's unilateral action this week to order a halt to port checks that are required under the Northern Ireland Protocol.
Civil servants have yet to implement the instruction, pending legal clarity on their obligations, and checks are continuing.
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
