Mashreq, the Dubai lender controlled by the Al Ghurair family, launched a digital bank account to cater to the UAE’s growing population of tech-savvy youths.
The facility, called Neo NXT, will enable parents of Generation Z aged between 12 and 18 to open an account on their behalf. It will offer young customers a debit card and the ability to conduct transactions through the Mashreq Neo mobile app, the lender said in a statement on Tuesday.
“We are helping the next generation take their first steps on the journey towards financial responsibility in a safe and secure environment,” Fernando Morillo, senior executive vice president and group head of retail banking at Mashreq, said.
“It is more important than ever to encourage good financial management from as young an age as possible. Developing good habits early on can last a lifetime.”
Millennials and their younger cohort will reshape the financial industry in their tech-savvy, mobile-first image, with ramifications for all consumers, companies and investors, according to research by investment bank Morgan Stanley.
“The very anticipation of their coming-of-age could remake the financial landscape in the coming years,” Morgan Stanley said in the report.
“After all, Generation Z … has been practically raised with a smartphone within eyeshot at all times. They breathe mobile, juggle payment apps and consider terms like ‘online shopping’ redundant,” it said.
Meanwhile, a 2019 financial literacy survey by Visa found that about 43 per cent of respondents in the UAE aged between 16 and 24 said they are not ready to manage their own money, while 53 per cent said schools did not prepare them enough to take care of their finances.
The rise of FinTech companies, an increasingly digital-savvy consumer base and a jump in digital services have forced banks to invest in digitalisation.
The coronavirus pandemic, which led to lockdowns and social distancing around the world, hastened the move to digital services as consumers switched to cashless payments and online shopping.
The UAE has seen the emergence of digital-only banks. In the first half of 2017, Emirates NBD launched Liv. bank, which is aimed at millennials. Mashreq also unveiled Mashreq Neo in the same year. Abu Dhabi Islamic Bank unveiled Amwali, a digital-only bank targeted at Generation Z, last year.
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.
Abu Dhabi holding company ADQ received in-principle approval from the Central Bank of the UAE to launch Wio, a digital banking platform, in February this year. Wio’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.
“Neo NXT allows Generation NXT to set their personal financial goals, foster positive savings habit and spend wisely,” Sridhar Iyer, head of Mashreq Neo and consumer banking at Mashreq, said.
Parents need to be existing Mashreq customers to open the Neo NXT account. They can apply to open an account on the Mashreq or Mashreq Neo mobile apps, the lender said.
Young customers can set financial goals and save towards them on the Neo NXT account, according to the statement.
They will also be entitled to discounts on purchases done using the Neo NXT debit card, Mashreq said.
Both parents and young customers can track transactions from their respective logins to the app, the lender said.
Mashreq will offer a recurring allowance option with the account. Parents can set challenges for their children on the platform and they will earn an allowance for completing those tasks, the lender said.
The Bloomberg Billionaire Index in full
1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion
The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
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Roll of honour: Who won what in 2018/19?
West Asia Premiership: Winners – Bahrain; Runners-up – Dubai Exiles
UAE Premiership: Winners – Abu Dhabi Harlequins; Runners-up – Jebel Ali Dragons
Dubai Rugby Sevens: Winners – Dubai Hurricanes; Runners-up – Abu Dhabi Harlequins
UAE Conference: Winners – Dubai Tigers; Runners-up – Al Ain Amblers
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Tamkeen's offering
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
If you go
The flights
There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.
The trip
Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.
The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.
