The green auto loan market has ramped up after two new players launched eco-friendly car finance products to encourage customers to buy hybrid or electric vehicles as part of the UAE’s 2021 Sustainability Vision
National Bank of Fujairah last week unveiled its Green Auto Loan of up to Dh1 million for customers looking to finance environmentally friendly vehicles, while Emirates Islamic also announced a new promotion on its sharia-compliant Green Auto Finance product for cars financing of up to Dh1.5m.
Vince Cook, chief executive of National Bank of Fujairah, said banks have a big role to play in accelerating the transformation towards increased sustainability in the UAE “by making significant capital available to support green initiatives especially with hybrid and electric cars being available at higher price points”.
Emirates NBD and HSBC were the first banks in the UAE, the second-biggest Arabian Gulf economy, to announce eco-friendly car loans in May 2017 after the lenders signed a memorandum of understanding with the Ministry of Energy. At the time the government hoped the favourable fees and rates would catapult sales of zero-carbon emission vehicles, as part of the UAE’s clean energy drive.
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NBF’s Green Auto Loan is available to residents over the age of 18, earning more than Dh5,000 per month and are able to extend the tenure over five years for new cars or 48 months for used cars.
Sharif Rafei, the head of the retail banking & Fujairah region at NBF said the product offers EV owners a flat rate of 2.2 per cent compared to a range of 2.75 to 4.25 per cent for conventional cars. The financing comes with a processing fee of 1 per cent of the loan value or Dh2,500, whichever amount is lower.
“The main difference is the lower interest rate as compared to conventional car loans, which is currently at 2.75 per cent for new cars,” said Mr Rafei.
Emirates Islamic’s sharia-compliant Green Auto Finance, first launched in February this year, is also available to customers earning over more than Dh5,000 per month. Under the new promotion launched last week a 50 per cent waiver is applied on processing fees to customers earning less than Dh30,000, at 0.5 per cent of the finance amount, anyone earning over Dh30,000 has zero processing fees.
However, Bill Carter, chief systems and innovation officer for Autodata, a Dubai-based automotive data supplier, said hybrid and EV owners should still compare the market as there may be better options.
"In the current market, it pays to go to the dealership armed with these deals to see if they will better them," Mr Carter said. “Many dealers are desperate to sell and so will offer such things as zero deposit or zero per cent finance. In real terms they are using their margin to subsidise these deals. They may also get financial support from the car manufacturers to try and stimulate sales.”
Ambareen Musa, the chief executive of the financial comparison website Souqalmal.com, said she expects more banks to jump on the "green loan bandwagon".
"With Tesla’s foray into the UAE market, and big car manufacturers like GM and Ford announcing the launch of their electric cars in the Middle-East, the future of electric vehicles in the country looks promising", she said. "Incentives like free charging at Dewa-approved charging stations until 2019 as well as free designated green parking and free Salik tags by the Roads and Transport Authority, are all aimed at boosting demand for electric cars and hopefully driving up sales in the coming years."
However, Mr Carter said there was unlikely to be a surge in green auto loans unless more incentives for residents to own and run eco-friendly cars are rolled out.
"Those unsure about the technology and the residual value should consider a lease rather than buying to mitigate the risk," he said: "In the UK market, where "green" cars have been around much longer than the UAE, we are seeing used electric cars rising in value so this may happen in the longer term in UAE."
Marwan Hadi, head of retail banking and wealth management, UAE, at HSBC, said hybrid and EV owners over the age of 21 earning over Dh7,500 a month can borrow a minimum of Dh30,000 and a maximum of Dh918,000, depending on their eligibility, with the bank's Green Car Loan.
"HSBC Green Car Loan customers are rewarded with a discounted interest rate and fee for buying an electric or a hybrid vehicle – a 50 basis point discount on applicable reducing interest rate and a 50 per cent discount on applicable arrangement fee," he said.
Emirates NBD’s Green Auto Loan, meanwhile, offers a 0.25 per cent discount on the applicable rate of interest to customers interested in buying electrical hybrid cars.
Suvo Sarkar, senior executive vice president & group head - retail banking and wealth management, at Emirates NBD said its green auto loan was part of the bank's investment strategy to create a sustainable environment. The bank was the first in the region to launch a charging station as well as providing designated 'green' parking spaces for electric vehicles at select branch locations.
“We are taking several steps to enhance and encourage a greener marketplace, in addition to digitisation of internal and customer-facing processes to lower paper usage, putting in place energy saving initiatives and working towards making our customer events carbon neutral," said Mr Sarkar.
Emergency phone numbers in the UAE
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
Scores
Oman 109-3 in 18.4 overs (Aqib Ilyas 45 not out, Aamir Kaleem 27) beat UAE 108-9 in 20 overs (Usman 27, Mustafa 24, Fayyaz 3-16, Bilal 3-23)
THE SPECS
Engine: 3.5-litre supercharged V6
Power: 416hp at 7,000rpm
Torque: 410Nm at 3,500rpm
Transmission: 6-speed manual
Fuel consumption: 10.2 l/100km
Price: Dh375,000
On sale: now
The biog
Favourite films: Casablanca and Lawrence of Arabia
Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
Favourite dish: Grilled fish
Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
EMIRATES'S REVISED A350 DEPLOYMENT SCHEDULE
Edinburgh: November 4 (unchanged)
Bahrain: November 15 (from September 15); second daily service from January 1
Kuwait: November 15 (from September 16)
Mumbai: January 1 (from October 27)
Ahmedabad: January 1 (from October 27)
Colombo: January 2 (from January 1)
Muscat: March 1 (from December 1)
Lyon: March 1 (from December 1)
Bologna: March 1 (from December 1)
Source: Emirates
Tips from the expert
Dobromir Radichkov, chief data officer at dubizzle and Bayut, offers a few tips for UAE residents looking to earn some cash from pre-loved items.
- Sellers should focus on providing high-quality used goods at attractive prices to buyers.
- It’s important to use clear and appealing photos, with catchy titles and detailed descriptions to capture the attention of prospective buyers.
- Try to advertise a realistic price to attract buyers looking for good deals, especially in the current environment where consumers are significantly more price-sensitive.
- Be creative and look around your home for valuable items that you no longer need but might be useful to others.
GCC-UK Growth
An FTA with the GCC would be very significant for the UK. My Department has forecast that it could generate an additional £1.6 billion a year for our economy.
With consumer demand across the GCC predicted to increase to £800 billion by 2035 this deal could act as a launchpad from which our firms can boost their market share.
SPECS
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Despacito's dominance in numbers
Released: 2017
Peak chart position: No.1 in more than 47 countries, including the United States, the United Kingdom, Australia and Lebanon
Views: 5.3 billion on YouTube
Sales: With 10 million downloads in the US, Despacito became the first Latin single to receive Diamond sales certification
Streams: 1.3 billion combined audio and video by the end of 2017, making it the biggest digital hit of the year.
Awards: 17, including Record of the Year at last year’s prestigious Latin Grammy Awards, as well as five Billboard Music Awards
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
If you go…
Emirates launched a new daily service to Mexico City this week, flying via Barcelona from Dh3,995.
Emirati citizens are among 67 nationalities who do not require a visa to Mexico. Entry is granted on arrival for stays of up to 180 days.
ETFs explained
Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.
ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.
There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.
How to help
Call the hotline on 0502955999 or send "thenational" to the following numbers:
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Company Profile
Company name: Hoopla
Date started: March 2023
Founder: Jacqueline Perrottet
Based: Dubai
Number of staff: 10
Investment stage: Pre-seed
Investment required: $500,000
COMPANY PROFILE
Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)
Abu Dhabi Equestrian Club race card
5pm: Abu Dhabi Fillies Classic (PA) Prestige; Dh110,000; 1,400m
5.30pm: Abu Dhabi Colts Classic (PA) Prestige; Dh110,000; 1,400m
6pm: Maiden (PA); Dh80,000; 1,600m
6.30pm: Abu Dhabi Championship (PA) Listed; Dh180,000; 1,600m
7pm: Wathba Stallions Cup (PA) Handicap; Dh70,000; 2,200m
7.30pm: Handicap (PA); Dh100,000; 2,400m
A QUIET PLACE
Starring: Lupita Nyong'o, Joseph Quinn, Djimon Hounsou
Director: Michael Sarnoski
Rating: 4/5
Forced Deportations
While the Lebanese government has deported a number of refugees back to Syria since 2011, the latest round is the first en-mass campaign of its kind, say the Access Center for Human Rights, a non-governmental organization which monitors the conditions of Syrian refugees in Lebanon.
“In the past, the Lebanese General Security was responsible for the forced deportation operations of refugees, after forcing them to sign papers stating that they wished to return to Syria of their own free will. Now, the Lebanese army, specifically military intelligence, is responsible for the security operation,” said Mohammad Hasan, head of ACHR.
In just the first four months of 2023 the number of forced deportations is nearly double that of the entirety of 2022.
Since the beginning of 2023, ACHR has reported 407 forced deportations – 200 of which occurred in April alone.
In comparison, just 154 people were forcfully deported in 2022.
Violence
Instances of violence against Syrian refugees are not uncommon.
Just last month, security camera footage of men violently attacking and stabbing an employee at a mini-market went viral. The store’s employees had engaged in a verbal altercation with the men who had come to enforce an order to shutter shops, following the announcement of a municipal curfew for Syrian refugees.
“They thought they were Syrian,” said the mayor of the Nahr el Bared municipality, Charbel Bou Raad, of the attackers.
It later emerged the beaten employees were Lebanese. But the video was an exemplary instance of violence at a time when anti-Syrian rhetoric is particularly heated as Lebanese politicians call for the return of Syrian refugees to Syria.
COMPANY PROFILE
Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures
Everybody Loves Touda
Director: Nabil Ayouch
Starring: Nisrin Erradi, Joud Chamihy, Jalila Talemsi
Rating: 4/5
Mobile phone packages comparison
Dubai World Cup factbox
Most wins by a trainer: Godolphin’s Saeed bin Suroor(9)
Most wins by a jockey: Jerry Bailey(4)
Most wins by an owner: Godolphin(9)
Most wins by a horse: Godolphin’s Thunder Snow(2)
Grand slam winners since July 2003
Who has won major titles since Wimbledon 2003 when Roger Federer won his first grand slam
Roger Federer 19 (8 Wimbledon, 5 Australian Open, 5 US Open, 1 French Open)
Rafael Nadal 16 (10 French Open, 3 US Open, 2 Wimbledon, 1 Australian Open)
Novak Djokovic 12 (6 Australian Open, 3 Wimbledon, 2 US Open, 1 French Open)
Andy Murray 3 (2 Wimbledon, 1 US Open)
Stan Wawrinka 3 (1 Australian Open, 1 French Open, 1 US Open)
Andy Roddick 1 (1 US Open)
Gaston Gaudio 1 (1 French Open)
Marat Safin 1 (1 Australian Open)
Juan Martin del Potro 1 (1 US Open)
Marin Cilic 1 (1 US Open)
The biog
Name: Timothy Husband
Nationality: New Zealand
Education: Degree in zoology at The University of Sydney
Favourite book: Lemurs of Madagascar by Russell A Mittermeier
Favourite music: Billy Joel
Weekends and holidays: Talking about animals or visiting his farm in Australia
Everton 1 Stoke City 0
Everton (Rooney 45+1')
Man of the Match Phil Jagielka (Everton)
Company Profile
Name: Direct Debit System
Started: Sept 2017
Based: UAE with a subsidiary in the UK
Industry: FinTech
Funding: Undisclosed
Investors: Elaine Jones
Number of employees: 8
SQUAD
Ali Khaseif, Fahad Al Dhanhani, Adel Al Hosani, Mohammed Al Shamsi, Bandar Al Ahbabi, Mohammed Barghash, Salem Rashid, Khalifa Al Hammadi, Shaheen Abdulrahman, Hassan Al Mahrami, Walid Abbas, Mahmoud Khamis, Yousef Jaber, Saeed Ahmed, Majed Sorour, Majed Hassan, Ali Salmeen, Abdullah Ramadan, Khalil Al Hammadi, Fabio De Lima, Khalfan Mubarak, Tahnoun Al Zaabi, Ali Saleh, Caio Canedo, Muhammed Jumah, Ali Mabkhout, Sebastian Tagliabue, Zayed Al Ameri
COMPANY PROFILE
Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside
Company Profile
Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Team Angel Wolf Beach Blast takes place every Wednesday between 4:30pm and 5:30pm