The revenue of UAE banks is expected to surge by 52 per cent to about $25 billion by 2030, with digital transformation playing a key role in boosting operations and customer services, the chairman of the institutions' professional representative body said.
The Emirates' “robust” banking sector will remain healthy and stable in the long term, and the effect of financial technology is evident in the changing trends over the past years, Abdulaziz Al Ghurair, chairman of the UAE Banks Federation, said in a keynote at the inaugural Abu Dhabi Finance Week on Tuesday.
The share of cash in payments declined to 20 per cent in 2021 from 69 per cent, while the number of digital accounts jumped. They comprised 51 per cent of all bank accounts in 2021 from 7 per cent in 2018, Mr Al Ghurair said, quoting figures from the Central Bank of the UAE.
Among the UAE's largest and leading banks, about 95 per cent of banking transactions are now done digitally, with mobile banking comprising “well over” 90 per cent of activity, he said.
The UAE is already the “undisputed” top financial hub in the Middle East and one of the top seven globally, he said, and the industry has invested heavily in technology to boost customer bases and bottom line to keep in step with an economy undergoing a rapid digital transformation.
“Changing customer needs have triggered a significant digital transformation across banks. This has resulted in a significant upgrade across ... banks' end-to-end and digital channels to deliver superior customer experience,” Mr Al Ghurair said.
“As a result of all these changes, we have seen digital adaptation increase ... this positive momentum and investments in technology [means UAE banks are] well positioned for the future.”
The UAE has long championed the critical role digital transformation plays in its economy and society as the country positions itself as a global hub for innovation.
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The banking and financial sector is poised to be one of the main benefactors of this shift, given the critical role it plays in the economy and the opportunities it brings to entrepreneurship.
GCC banks have been projected to recover almost to pre-pandemic levels in 2022 starting in 2023, S&P Global Ratings said in its latest report last week.
FinTech, meanwhile, remained the highest funded sector across emerging venture markets — which includes the Middle East — in the first half of 2022, more than tripling to almost $1.68bn in the first half of 2022 from a year ago, start-up data platform Magnitt said in a recent study.
Banks in the UAE have also gone beyond their boundaries to create a more inclusive FinTech environment. As a result, funding for FinTech companies leapt more than threefold to $310 million in 2021 from $92m in 2017, Mr Al Ghurair said.
“Strong digital and financial capabilities will give banks opportunities to expand their model,” he said.
Digital trends are set to continue and grow further in the financial sector, and this means more customer data that needs to be processed and protected.
Banks are addressing this by ramping up their talent pool, hiring designers, engineers and data scientists, Mr Al Ghurair said.
“Managing and using data effectively will become a competitive advantage for banks,” he said.
Changing customer needs have triggered a significant digital transformation across banks. This has resulted in a significant upgrade across ... banks' end-to-end and digital channels to deliver superior customer experience
Abdulaziz Al Ghurair,
chairman of the UAE Banks Federation
The changing landscape will require the financial system and its players to constantly adapt, requiring “continued adjustment of their operating models”.
“Digitisation is now mainstream across all products and segments ... it will continue to be on the rise, and data will be essential for banks to raise their capabilities,” Mr Al Ghurair said.
As a consequence, the number of physical bank branches have declined, down about a third to 581 in 2022 from 823 in 2018.
However, this is a necessary step, as “we need to fundamentally restructure our operating model and reducing our branch network is only the first step”, Mr Al Ghurair said.
Mr Al Ghurair credited the UAE financial system's strength to the efforts of the Abu Dhabi Global Market and the Dubai International Financial Centres, which regulate the industry in their respective emirates and who have a positive effect throughout the country.
Combined, there are more than 7,100 businesses that have licences and about 44,000 employees at the two hubs, with more than 22,000 working in the banking sector alone.
“Collaboration with various stakeholders in the ecosystem will unlock greater value for the industry and unleash innovative solutions for UAE customers,” Mr Al Ghurair said.
PSA DUBAI WORLD SERIES FINALS LINE-UP
Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)
Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Revibe%20%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Hamza%20Iraqui%20and%20Abdessamad%20Ben%20Zakour%20%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Refurbished%20electronics%20%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2410m%20%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Resonance%20and%20various%20others%0D%3C%2Fp%3E%0A
SERIE A FIXTURES
All times UAE ( 4 GMT)
Saturday
Roma v Udinese (5pm)
SPAL v Napoli (8pm)
Juventus v Torino (10.45pm)
Sunday
Sampdoria v AC Milan (2.30pm)
Inter Milan v Genoa (5pm)
Crotone v Benevento (5pm)
Verona v Lazio (5pm)
Cagliari v Chievo (5pm)
Sassuolo v Bologna (8pm)
Fiorentina v Atalanta (10.45pm)
The Gandhi Murder
- 71 - Years since the death of MK Gandhi, also christened India's Father of the Nation
- 34 - Nationalities featured in the film The Gandhi Murder
- 7 - million dollars, the film's budget
Dubai World Cup Carnival card
6.30pm: Al Maktoum Challenge Round-2 Group 1 (PA) US$75,000 (Dirt) 1,900m
7.05pm: Al Rashidiya Group 2 (TB) $250,000 (Turf) 1,800m
7.40pm: Meydan Cup Listed Handicap (TB) $175,000 (T) 2,810m
8.15pm: Handicap (TB) $175,000 (D) 1,600m
8.50pm: Handicap (TB) $135,000 (T) 1,600m
9.25pm: Al Shindagha Sprint Group 3 (TB) $200,000 (D) 1,200m
10pm: Handicap (TB) $135,000 (T) 2,000m
The National selections:
6.30pm - Ziyadd; 7.05pm - Barney Roy; 7.40pm - Dee Ex Bee; 8.15pm - Dubai Legacy; 8.50pm - Good Fortune; 9.25pm - Drafted; 10pm - Simsir
Killing of Qassem Suleimani
More from Neighbourhood Watch:
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Strait of Hormuz
Fujairah is a crucial hub for fuel storage and is just outside the Strait of Hormuz, a vital shipping route linking Middle East oil producers to markets in Asia, Europe, North America and beyond.
The strait is 33 km wide at its narrowest point, but the shipping lane is just three km wide in either direction. Almost a fifth of oil consumed across the world passes through the strait.
Iran has repeatedly threatened to close the strait, a move that would risk inviting geopolitical and economic turmoil.
Last month, Iran issued a new warning that it would block the strait, if it was prevented from using the waterway following a US decision to end exemptions from sanctions for major Iranian oil importers.
UAE currency: the story behind the money in your pockets
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
OPINIONS ON PALESTINE & ISRAEL
Bharat
Director: Ali Abbas Zafar
Starring: Salman Khan, Katrina Kaif, Sunil Grover
Rating: 2.5 out of 5 stars
RIVER%20SPIRIT
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The specs
Engine: 5.2-litre V10
Power: 640hp at 8,000rpm
Torque: 565Nm at 6,500rpm
Transmission: 7-speed dual-clutch auto
Price: From Dh1 million
On sale: Q3 or Q4 2022
UAE currency: the story behind the money in your pockets
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
The Sky Is Pink
Director: Shonali Bose
Cast: Priyanka Chopra Jonas, Farhan Akhtar, Zaira Wasim, Rohit Saraf
Three stars
Scores
Bournemouth 0-4 Liverpool
Arsenal 1-0 Huddersfield Town
Burnley 1-0 Brighton
Manchester United 4-1 Fulham
West Ham 3-2 Crystal Palace
Saturday fixtures:
Chelsea v Manchester City, 9.30pm (UAE)
Leicester City v Tottenham Hotspur, 11.45pm (UAE)
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
All about the Sevens
Cape Town Sevens on Saturday and Sunday: Pools A – South Africa, Kenya, France, Russia; B – New Zealand, Australia, Spain, United States; C – England, Scotland, Argentina, Uganda; D – Fiji, Samoa, Canada, Wales
HSBC World Sevens Series standing after first leg in Dubai 1 South Africa; 2 New Zealand; 3 England; 4 Fiji; 5 Australia; 6 Samoa; 7 Kenya; 8 Scotland; 9 France; 10 Spain; 11 Argentina; 12 Canada; 13 Wales; 14 Uganda; 15 United States; 16 Russia
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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