Rain Management, a cryptocurrency platform licensed by the Central Bank of Bahrain, said trading volumes grew 20-fold during the first half of 2021 to more than $1 billion for the first time.
The increase comes as retail investors pile into digital assets, encouraged by a rebound in the price of Bitcoin, the world's largest cryptocurrency.
“Expedited digital adoption in the region [in 2020] ... surely had a positive effect on our growth,” said Rain Management director Joseph Dallago on Monday.
Cryptocurrencies are not licensed by the UAE Central Bank although a number of cryptocurrency exchanges have been given permission to operate within the Abu Dhabi Global Market, the emirate's financial free zone.
The UAE dirham is the only legal tender in the country that is recognised by the Central Bank.
The Manama-based platform allows customers to buy, sell, and store cryptocurrency assets in a regulated, secure and compliant way.
It is part of Rain Financial, which is based in Delaware.
The platform was founded in 2017 by Mr Dallago and fellow Bitcoin enthusiasts Abdullah Almoaiqel, A J Nelson and Yehia Badawy.
“Crossing $1bn in trading volume is indeed a key moment for us. It reflects the incredibly positive reception our platform has had in the region,” said Mr Dallago.
Rain's user base also grew nine-fold in the first half of 2020 compared with the same period in 2019 and 19-fold in 2021, with more than 100,000 active users currently, according to the company.
Rain Management also increased its employee headcount to 105 as demand rose for its services. The FinTech had between 100-120 employees in February.
Cryptocurrencies have become more popular over the past year as the coronavirus pandemic spurs digital adoption.
Bitcoin has increased in value by more than 276 per cent over the past year and on Monday was trading at $34,822.23 at 1.27pm UAE time.
Despite the popularity of digital assets, central banks across the world have been reluctant to endorse them because of their speculative nature.
Cryptocurrencies are speculative assets that in many instances enable criminal activity and "work against the public good", the Bank for International Settlements, the global body for central banks, said in a report last week.
"It is clear that cryptocurrencies are speculative assets rather than money and, in many cases, are used to facilitate money laundering, ransomware attacks and other financial crimes," the BIS said.
Bitcoin has “few redeeming public interest attributes when also considering its wasteful energy footprint”, it said.
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Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
Leap of Faith
Michael J Mazarr
Public Affairs
Dh67
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.”
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Most sought after workplace benefits in the UAE
- Flexible work arrangements
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- Financial well-being incentives
What is Reform?
Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.
It was founded in 2018 and originally called the Brexit Party.
Many of its members previously belonged to UKIP or the mainstream Conservatives.
After Brexit took place, the party focused on the reformation of British democracy.
Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.
The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
