Forbes Middle East - April 2023 - English by Forbes Middle East

NOTABLE NATIONAL FINTECHS IN MENA SILICON VALLEY BANK: FROM FAME TO FAILURE

50 MOST VALUABLE BANKS 2023

THE PRICE OF AUTHENTICITY 5 BILLIONAIRES INVESTING IN FINTECH

APRIL 2023 ISSUE 127

NADINE MEZHER AND MARK CHAHWAN Sarwa Cofounders

“A LOT OF SERVICES THAT WERE ONCE RESERVED FOR THE 1% ARE NOW AVAILABLE TO ALL.”

TOP

APRIL 2023 ISSUE 127

FINTECH COMPANIES

MEET THE REGION’S MOST INNOVATIVE COMPANIES USING THE LATEST TECHNOLOGY TO DIGITIZE BANKING, FINANCE, AND INVESTMENT.

Stay connected with our latest business news. UAE...........................................................AED 15 SAUDI ARABIA...................................... SAR 15 BAHRAIN.............................................. BHD 1.5 KUWAIT..............................................KWD 1.25 OMAN.................................................... OMR 1.5 QATAR..................................................... QAR 15 OTHERS........................................................... $4

THE CITY OF EARTH

F O R B E S M I D D L E E A S T.C O M

APRIL 2023

6 I Sidelines Over A Bump

By Claudine Coletti LEADERBOARDS

BILLIONAIRES

8 I 5 Billionaires Investing In Fintech

CONTENTS

The aggregate net worth of these five billionaires—who are all investing in the Fintech sector—declined by $25.7 billion in over a year, hitting $50.4 billion on March 14, 2023, down from $76.1 billion on March 11, 2022. Here’s how their fortunes have changed. Net worths are as of March 14, 2023. By Hagar Omran PAYMENTS

10 I Notable National Fintechs In MENA MENA’s central banks are disrupting Fintech, laying the groundwork with regulations and launching national gateways to help move to cashless economies. Here are five national payment gateways owned by central and public banks in the Middle East.

By Amr Abdelhamid

REAL ESTATE

11 I World’s 5 Most Expensive Residential

Cities In 2022

Despite average price growth for luxury housing slowing, the buying prowess of the wealthy still made 2022 the second strongest year on record, according to Knight Frank’s 2023 Wealth Report. Here are the world’s most expensive cities according to how much prime space $1 million could afford in 2022. By Cherry Aisne Trinidad CONSUMER TECHNOLOGY

12 I The Price Of Authenticity Twitter and Meta are now charging a fee for account verification, while other major networks like YouTube, TikTok, and China’s WeChat are sticking to a free verification model—for now. By Muhammad Addam ECONOMY / MONEY

13 I 5 Middle Eastern Currencies Decline

Against USD

These five Middle Eastern currencies declined in early 2023, from the end of December 2022 to March 19, 2023.

CONTRARIAN

16 I The Nuclear Option Old-fashioned fission may be the best way to wean the world off fossil fuels. So BRET KUGELMASS wants to deploy 10,000 inexpensive, off-the-shelf microreactors— but not in America.

By Christopher Helman

By Hagar Omran BANKING & FINANCE

14 I 40 Years Of Silicon Valley Bank:

From Fame To Failure

The collapse of Silicon Valley Bank (SVB) has sent shock waves through global financial systems, leaving many to wonder how the U.S.’s 16th largest lender in terms of assets, which served thousands of innovative tech startups, could break. Here’s a brief look at how the now-defunct bank rose to fame and fell to ruin.

By Ola Noureldin

F O R B E S M I D D L E E A S T.C O M

26 I Paying It Forward Ashraf Sabry, Cofounder and CEO of Fawry for Banking Technology and Electronic Payments (Fawry), Egypt’s largest e-payments network, has had a significant impact on introducing Fintech to the cash-centric country. Despite the backdrop of an economic downturn, he’s continuing to ride the digital wave toward banking the unbanked population.

By Samar Khouri

72 I Thoughts On Volatility

APRIL 2023

THE MIDDLE EAST’S

50 MOST VALUABLE BANKS 2023

CONTENTS

TOP 30 FINTECH COMPANIES 2023

THE MIDDLE EAST’S

F O R B E S M I D D L E E A S T.C O M

APRIL 2023

F O R B E S M I D D L E E A S T.C O M

APRIL 2023

April 2023

Issue 127

•

CONTENTS

INSIDE •

COVER STORY

Power Shift Mark Chahwan, Nadine Mezher, and Jad Sayegh, Cofounders of the U.A.E.-based investment platform Sarwa, have raised $25 million in total funding since establishing their Fintech in 2017. Buoyed by a consumer shift towards digital banking and trading, they’re now looking at new ways to scale while navigating an evolving ecosystem. By Hagar Omran

F O R B E S M I D D L E E A S T.C O M

APRIL 2023

YOUR DESTINATION FOR COMPLEX & INNOVATIVE TREATMENTS F O R B E S M I D D L E E A S T.C O M

APRIL 2023

SIDELINES

FORBES MIDDLE EAST

Over A Bump This month we release our latest lists revealing the Middle East’s biggest players in banking and Fintech. These come at an odd time for both sectors. March was a bit of a crazy month for the global banking industry, with worries about a new financial crisis circulating and some key acquisitions swopping in to prevent mayhem in the markets. According to Forbes, over $300 billion was wiped off U.S. bank stocks in March. This was largely caused by ramifications from the collapse of Silicon Valley Bank, the largest U.S. bank failure since the 2008 financial crisis, followed closely by the collapse of specialist bank Silvergate and crypto-focused Signature Bank. By March 20, New York Community Bancorp had inked a deal to acquire Signature Bank, and on March 26, First Citizens Bank agreed to buy $72 billion worth of SVB’s assets at a $16.5 billion discount from the Federal Deposit Insurance Corporation. In an unrelated deal, on March 19, UBS agreed to buy Zurich rival Credit Suisse for $3.2 billion in a deal arranged by the Swiss government, the central bank, and market regulator, following over 12 months of turmoil that saw Credit Suisse lose more than 75% of its value, according to Reuters. Experts are now reporting that the worst is over and a global crisis unlikely, which should be coming as a relief to, well, pretty much everyone. While the banking and finance industry continues to seek stability and growth, it is also navigating a digital transformation, with more tech-based companies than ever offering banking and investment services via apps. According to a white paper released by Mastercard at the end of 2022, the global Fintech market was worth $112.5 billion in 2021 and is estimated to hit $332.5 billion by 2028. As of the end of 2022, there were more than 470 Fintech unicorns globally. MENA alone is expected to have 45 Fintech unicorns by 2030. In terms of which countries in the region are incubating these startups, the power seems to be shifting. In our list of the Middle East’s 15 Top Fintechs in 2021, six of the 15 companies were based in the U.A.E., followed by four in Egypt, three in Kuwait, one in Jordan, and one in Saudi Arabia. In this year’s 2023 list, which features 30 companies, Egypt dominates with eight entries, followed by Saudi Arabia with six, and the U.A.E. and Kuwait with five each. This is being helped by central banks and governments increasingly implementing legislation and initiatives offering more support and regulatory provisions to encourage financial innovation. All in all, it’s an interesting time for money managers. I hope you enjoy learning more about the movers and shakers in MENA.

—Claudine Coletti, Managing Editor

F O R B E S M I D D L E E A S T.C O M

APRIL 2023

INNOVATING SINCE 2010 APRIL 2023 ISSUE 127

Dr. Nasser Bin Aqeel Al Tayyar President & Publisher nasser@forbesmiddleeast.com

Khuloud Al Omian khuloud@forbesmiddleeast.com

Editorial

Business Development

Claudine Coletti Managing Editor claudine@forbesmiddleeast.com

Ruth Pulkury Senior Vice President - Business Development

Laurice Constantine Digital Managing Editor laurice@forbesmiddleeast.com

ruth@forbesmiddleeast.com

Fouzia Azzab Deputy Managing Editor fouzia@forbesmiddleeast.com

Joseph Chidiac joe@forbesmiddleeast.com

Amany Zaher Senior Quality Editor amany@forbesmiddleeast.com

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Jamila Gandhi Senior Reporter jamila@forbesmiddleeast.com

Karl Noujaim karl@forbesmiddleeast.com

Rawan Hassan Senior Translator rawan@forbesmiddleeast.com

Sarine Nemchehirlian sarine@forbesmiddleeast.com

Samar Khouri Online Editor samar@forbesmiddleeast.com Cherry Aisne Trinidad Online Editor aisne@forbesmiddleeast.com

Research

Sarah Gadallah Hassan sarah.g@forbesmiddleeast.com Upeksha Udayangani Client Relations Executive upeksha@forbesmiddleeast.com Tayyab Riaz Mohammed Financial Controller riaz@forbesmiddleeast.com

Jason Lasrado Head of Research jason@forbesmiddleeast.com Nermeen Abbas Senior Researcher nermeen@forbesmiddleeast.com Elena Hayek Researcher elena@forbesmiddleeast.com Layan Abo Shkier Research Reporter layan@forbesmiddleeast.com

Carlos Robles Chief Marketing & Communications Officer carlos@forbesmiddleeast.com Soumer Al Daas Head of Creative soumer@forbesmiddleeast.com Julie Gemini Marquez Brand & Creative Content Executive julie@forbesmiddleeast.com Mohammed Ashkar Assistant IT Manager ashkar@forbesmiddleeast.com Muhammad Saim Aziz Web Developer saim@forbesmiddleeast.com Habibullah Qadir Senior Operations Manager habib@forbesmiddleeast.com

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Billionaires

5 Billionaires Investing In Fintech The aggregate net worth of these five billionaires—who are all investing in the Fintech sector—declined by $25.7 billion in over a year, hitting $50.4 billion on March 14, 2023, down from $76.1 billion on March 11, 2022. Here’s how their fortunes have changed. Net worths are as of March 14, 2023.

• Jack Ma Net worth: $23.5 billion Annual change: $700 million Company: Ant Group Citizenship: China Jack Ma’s Fintech company Ant Group was first established as Alipay in 2004 to provide online sellers and buyers with payment solutions. Today, Alipay China delivers payment services to more than one billion users and 80 million merchants. In January 2023, Ma announced that he was giving up control of Ant Group to allay regulatory concerns about the business. This move comes more than two years after regulators in Beijing suspended the company’s planned IPO as part of a larger crackdown on Chinese tech giants. Ma is one of the world’s richest e-commerce billionaires and is also the cofounder of Alibaba.

• Pierre Omidyar Net worth: $8.7 billion Annual change: $2.6 billion Company: PayPal Citizenship: U.S. Founder of online auction firm eBay Omidyar purchased the online payment company PayPal in 2002. He currently has a 5% stake in eBay and 6% in PayPal. Omidyar’s net worth plunged by $2.6 billion in over a year, with PayPal Holdings’ share price slashing by 24.2% to $73.2 on March 14, 2023, bringing the market cap to $83 billion. By the end of 2022, PayPal had 435 million active F O R B E S M I D D L E E A S T.C O M

Patrick and John Collison

consumer and merchant accounts, $1.36 trillion in total payment volume, and 22.3 billion payment transactions. Omidyar is also the founder of First Look Media, the parent company of online news site The Intercept, and the entertainment company Topic Studios.

com raised $1 billion from private investors in its Series D funding round, valuing the company at $40 billion, yet it has reportedly slashed its internal valuation to nearly $11 billion. Pousaz, who is still CEO of Checkout.com, owns an estimated nearly two-thirds of the company.

• Guillaume Pousaz

• Patrick and John Collison

Net worth: $7.2 billion Annual change: $15.8 billion Company: Checkout.com Citizenship: Switzerland Pousaz founded the Londonbased startup Checkout.com in 2012 and has lost 68.7% of his net worth in almost a year. In January 2022, Checkout.

Net worth (each): $5.5 billion Annual change (each): $4 billion Company: Stripe Citizenship: Ireland Patrick cofounded Stripe with his brother John in 2010, which allows businesses and

individuals to accept online payments. They lost $8 billion from their joint net worth in nearly a year, bringing it to $5.5 billion each on March 14, 2023. Stripe has reportedly slashed its $95 billion valuation internally several times since June 2022, implying a valuation of $63 billion. In November 2022, the company, which is dual-headquartered in San Francisco and Dublin, reduced the size of its team by about 14%, bringing the headcount to almost 7,000 people. The cofounders highlighted several challenges, including inflation, energy shocks, higher interest rates, reduced investment budgets, and sparser startup funding. APRIL 2023

BY HAGAR OMRAN; PHOTOGRAPH BY LEVON BISS FOR FORBES

LEADERBOARD

F O R B E S M I D D L E E A S T.C O M

APRIL 2023

Payments

Notable National Fintechs In MENA MENA’s central banks are disrupting Fintech, laying the groundwork with regulations and launching national gateways to help move to cashless economies. Here are five national payment gateways owned by central and public banks in the Middle East.

• InstaPay Country: Egypt InstaPay was launched in March 2022 by the Egyptian Banks Company, the Central Bank of Egypt’s (CBE’s) technological arm, to allow direct access to bank accounts and instant transfers via an app. As of March 2023, the app had partnered with nearly 26 banks in Egypt, including the National Bank of Egypt, Banque Misr, Banque du Caire, ALEXBANK, and CIB. Since its establishment, InstaPay has processed over 20.3 million instant money transfer transactions worth a total of $3.7 billion, with 2.16 million customers. In midMarch 2023, CBE raised the maximum limit of transactions through the app to $2,263 for a single transaction, $3,879 for daily transactions, and $12,930 for monthly transactions.

• International Smart Card (QiCard) County: Iraq QiCard is the flagship card brand of the International Smart Card (ISC), which was established in 2007 as a joint venture between the Iraqi Electronic Payment Systems and two government banks, Rafidain and Rasheed Bank. ISC issues biometric identification cards and provides electronic financial services to banks, government departments, and private enterprises across Iraq. The company issues and acquires payment cards, including F O R B E S M I D D L E E A S T.C O M

InstaPay was launched in March 2022 by the Egyptian Banks Company, the Central Bank of Egypt’s (CBE’s) technological arm.

QiCard and Mastercard, on behalf of 14 affiliated banks. In 2022, the company issued a million multi-biometric cards and processed transactions worth $105 billion. ISC has issued around eight million QiCards and has a network of 10,000 point-of-service terminals equipped with biometric readers, operated by approximately 3,000 cash-out agents in Iraq. It also runs around 500 enrollment centers.

• Jordan Payments and Clearing Company (JoPACC)

and governmental entities. JoPACC has five payment systems: CliQ, JoMoPay, eFAWATEERcom, Automated Clearing House, and Electronic Cheques Clearing System. In 2022, it processed 78 million transactions worth a total of $87.7 billion and launched “JOIN Fincubator” to support Fintech startups and entrepreneurs. As of December 2022, the company had 561,000 users using its CliQ system, over two million using JoMoPay, and 3.6 million using eFAWATEERcom. It plans to introduce an electronic know-yourcustomer platform in 2023.

County: Jordan Established in 2017 by the Central Bank of Jordan and all commercial banks in Jordan, JoPACC provides instant money transfers, electronic bill payments, corporate retail transactions, and cheque payment processing to banks, mobile payment service providers,

• Saudi Payments (mada) County: Saudi Arabia mada is operated by Saudi Payments, a subsidiary of the Saudi Central Bank. It is the national payment debit scheme that connects ATMs, point-of-sale terminals, and

ecommerce stores offered by local banks and Fintechs throughout Saudi to a central payment switch that re-routes financial transactions between merchant and card issuer banks and Fintechs. To date, there are over 42 million active mada cards in circulation in Saudi, making it the most widely used payment card in the kingdom. In 2022, mada processed transactions of $149 billion through 1.43 million point-of-sale devices and processed 610 million ecommerce transactions worth a total of $32 billion.

• The BENEFIT Company County: Bahrain Founded in 1997 by 17 commercial banks in Bahrain, the BENEFIT Company provides payment services for individuals and businesses. Its BenefitPay app provides money transfers, bill payments, and contactless payments. In 2022, the company processed electronic financial transactions worth a total of $67.5 billion. As of December 2022, the app had been downloaded 134,500 times, with 754,919 active users. In January 2023, it signed an MoU with JoPACC to support Fintech and innovation initiatives and participate in the “JOIN Fincubator” program. As a result of merger and acquisition activity in the retail banking sector, the original 17 shareholders have been reduced to 14 banks. APRIL 2023

BY AMR ABDELHAMID; IMAGE BY ORHAN CAM / SHUTTERSTOCK.COM

LEADERBOARD

Real Estate

World’s 5 Most Expensive Residential Cities In 2022

1. Monaco Sqm per $1 million: 17 Price per sqm: $58,824

BY CHERRY AISNE TRINIDAD; ALEX TIHONOVS / SHUTTERSTOCK.COM, EARNESTTSE / SHUTTERSTOCK.COM, SPYARM / SHUTTERSTOCK.COM, MOLPIX / SHUTTERSTOCK.COM, S.BORISOV / SHUTTERSTOCK.COM

In Monaco, $1 million would get a buyer of prime property 17 sqm of space in 2022, a notable increase compared to just 14.6 sqm in 2021, making the city the world’s most expensive residential market. Its tiny geographical territory makes buying a property in the European microstate costly, but in 2022 Monaco was one of 15 cities out of 100 that witnessed a negative price growth on Knight Frank’s Prime International Residential Index. The price of luxury residences plunged 3.8% in 2022 after surging 10% in 2021.

Price per sqm

$58,824 $47,619

$30,303 Monaco Sqm per $1M

Hong Kong SAR Sqm per $1M

$29,412

New York

Singapore

London

Sqm per $1M

Source: Knight Frank’s 2023 Wealth Report

2. Hong Kong SAR

3. New York

4. Singapore

Sqm per $1 million: 21 Price per sqm: $47,619

Sqm per $1 million: 33 Price per sqm: $30,303

Sqm per $1 million: 34 Price per sqm: $29,412

Hong Kong has long been known for being one of the world’s costliest cities, taking the top spot on Mercer’s 2022 Cost of Living City Ranking. Owning a prime property in the dense city would give a buyer a compact 21 sqm of space for $1 million in 2022, compared to the previous year’s 21.3 sqm. Knight Frank ranked the city with negative growth in luxury residential prices last year, declining 1.6% against a 7.2% rise in 2021. But the city’s reopening is now driving a much-needed recovery, according to Knight Frank’s Hong Kong February 2023 analysis.

New York benefited from a strong dollar against a basket of currencies last year. In 2022, a $1 million budget could afford a buyer 33 sqm compared to 33.3 sqm in 2021. Luxury real estate of the same price could buy 64 sqm in Miami and 39 sqm in Los Angeles. As the nation grappled with higher interest rates in 2022, New York registered slow growth in prime property prices, with 2.7% compared with 2.6% in 2021, but the Big Apple retained its status as the world’s most active superprime market, with 244 home sales of $10 million or more.

In Singapore, a buyer could get 34 sqm for $1 million in 2022, down from 35.4 sqm in 2021. Property sales in the city-state dwindled in 2022, with 296 luxury non-landed homes sold compared to 487 transactions in 2021, primarily due to a shortfall in supply. Real estate firm CBRE’s 2023 Singapore Real Estate Market Outlook suggests that the lack of participation from Chinese buyers contributed to a decline in foreign home sales last year. According to Knight Frank, Singapore saw a 3.9% surge in luxury residential prices in 2022, and growth should continue in 2023, with

F O R B E S M I D D L E E A S T.C O M

$29,412

the rise in wealthy individuals fueling the uptrend.

4. London Sqm per $1 million: 34 Price per sqm: $29,412 In London, the space you could buy for $1 million increased from 30.6 sqm in 2021 to 34 sqm in 2022. London joins New York in the top three cities with the highest super-prime sales in 2022, racking up 223 transactions. Regarding the price for a luxury property, London logged a slow growth uptick of 1.5% last year from 1.3% in 2021, but Knight Frank has forecast the U.K. capital to be a sweet spot for wealthy individuals looking to buy a second home in 2023. APRIL 2023

11 LEADERBOARD

Consumer Technology

The Price Of Authenticity Twitter and Meta are now charging a fee for account verification, while other major networks like YouTube, TikTok, and China’s WeChat are sticking to a free verification model—for now.

Twitter Blue Costs: Twitter Blue can be purchased for $8 a month or $84 a year on the web, or $11 a month or $114.99 a year on iOS and Android. In November 2022, Musk described the process of obtaining a blue checkmark on Twitter as a “lords & peasants system,” mobilizing support for accessible, paid verification. In December 2022 the company relaunched Twitter Blue, a paid subscription service that lets users add the venerable blue checkmark to their accounts and have early access to new features aimed at personalizing the user experience, including longer tweets, editing tweets, NFT profile pictures, themes, and more.

Meta Verified Verification on social networks began in 2009 when Tony La Russa, the former coach of the American professional baseball team St. Louis Cardinals, filed an impersonation lawsuit against Twitter

Verification on social networks began in 2009 when Tony La Russa, the former coach of the American professional baseball team St. Louis Cardinals, filed an impersonation lawsuit against Twitter, alleging that an account used his likeness to post obnoxious tweets referring to two dead Cardinals pitchers. Although the suit was eventually dropped, Twitter introduced F O R B E S M I D D L E E A S T.C O M

its account verification process in the summer of 2009, granting accounts of public figures and notable brands a blue checkmark that implied authenticity, activation, and status. In 2012, Facebook initiated its own verification program, allowing users to verify their accounts with valid IDs before it introduced the blue checkmark to verified

accounts a year later. In 2014, it was Instagram’s turn after an impersonation of American pop star Rihanna prompted her to warn her followers on Twitter not to follow the fake account. Since then, many social networks have followed suit and begun verifying user accounts for free before Twitter CEO Elon Musk instigated a revamp in late 2022.

Costs: Meta Verified is available for a monthly subscription of $11.99 on the web and $14.99 on iOS and Android. Meta, the parent company of Facebook and Instagram, launched a new subscription bundle on both platforms in late February 2023 called Meta Verified, which gives subscribers a verified badge, added account security, and boosted visibility and reach, in addition to a customer support service. The new feature was initially tested in Australia and New Zealand, and expanded to the U.S. in March. APRIL 2023

BY MUHAMMAD ADDAM; PHOTO BY JASON MILLER / GETTY IMAGES NORTH AMERICA / GETTY IMAGES VIA AFP

LEADERBOARD

5 Middle Eastern Currencies Decline Against USD These five Middle Eastern currencies declined in early 2023, from the end of December 2022 to March 19, 2023.

One USD exchange rate as of March 19

LBP 112,000 Lebanese Pound

SYP 7,250 Syrian Pound

EGP 30.96 Egyptian Pound

SDG 599.5 Sudanese Pound 3.2%

TRY 19 Turkish Lira 1.5%

20%

BY HAGAR OMRAN

62.1%

58.4%

In early 2023, five Middle Eastern currencies declined against the U.S. dollar in the wake of continuous interest rate hikes by the Fed Reserve to curb high inflation. The Lebanese, Syrian, Egyptian, and Sudanese pounds fell by nearly 62.1%, 58.4%, 20%, and 3.2%, respectively, while Türkiye’s lira weakened by 1.5% against the greenback. But it wasn’t all bad news, the Algerian dinar improved by nearly 1% to DZD 136 per USD. The Libyan dinar and Moroccan dirham slightly rose against USD by less than 0.5% to LYD 4.8 and MAD 10.8, respectively. Additionally, the Central Bank of Iraq strengthened the dinar against USD to IQD 1,320 in February from IQD 1,470 at the end of 2022, while the USD was trading on the black-market for nearly IQD 1,556 as of midMarch 2023.

F O R B E S M I D D L E E A S T.C O M

1. Lebanese Pound One USD exchange rate as of March 19: LBP 112,000 Decline since the end of 2022: 62.1% The Lebanese pound, officially pegged at 15,000 to the dollar, sank by 62.1% between the end of December 2022 to March 19, 2023, hitting LBP 112,000 per one USD, according to Lira Rate estimation. Lebanon has been facing a severe economic crisis over the course of more than three years. The country’s foreign currency reserves declined by 23.8% in a year, reaching nearly $10.4 billion at the end of December 2022 compared with $13.6 billion at the end of 2021. Lebanon’s annual inflation rate hiked to 171.2% in 2022 from 154.8% a year earlier. Central Bank governor Riad Salameh was interrogated by

2. Syrian Pound One USD exchange rate as of March 19: SYP 7,250 Decline since the end of 2022: 58.4% The Syrian pound has lost 58.4% of its value since the end of last year, resulting in an exchange rate of one US dollar to 7,250 Syrian pounds, according to the Central Bank of Syria. The central bank devalued the Syrian currency twice this year: in January to SYP 4,522 from SYP 3,015 and in February to SYP 6,650. Before earthquakes struck Türkiye and Syria on February 6, the Syrian economy was already facing critical challenges and weak macroeconomic conditions due to 12 years of armed conflict in Syria and the Russian war in Ukraine. Syria’s direct physical losses from the earthquakes are worth $5.1 billion, according to the World Bank. The damaged capital stock is currently worth around 10% of Syrian GDP.

3. Egyptian Pound One USD exchange rate as of March 19: EGP 30.96 Decline since the end of 2022: 20% The Egyptian pound has lost 20% of its value against USD in less than three months, continuing a wave of sharp decline that started a year ago, coinciding with Russia’s war in Ukraine. On March 21, 2022, the Central Bank of Egypt devalued the currency to EGP 18.3 per USD from the long-time fixed exchange rate of EGP 15.8 and stressed the importance of exchange rate flexibility. Egypt’s annual core CPI inflation rate hiked to 40.3% in February 2023 from 31.2% in January 2023, reflecting the effect of supply chain disruptions and exchange rate fluctuations. Yet, the CBE kept

the interest rate unchanged at 16.25% for overnight deposits, 17.25% for overnight lending, and 16.75% for main operations in February 2023, before raising it by 2% in March. Egypt’s net international reserves dropped by $6.6 billion in a year, hitting nearly $34.4 billion in late February 2023.

4. Sudanese Pound One USD exchange rate as of March 19: SDG 599.5 Decline since the end of 2022: 3.2% The Sudanese pound fell by 3.2% from the end of December 2022 to March 19, 2023, reaching 599.5 pounds per USD. Despite the International Monetary Fund’s expectations for Sudan’s inflation rate to ease further—to 76.9% in 2023 as an annual average, from 154.9% in 2022—it remains very high. Sudanese gold exports, a key resource of the economy, surpassed $2 billion in 2022, constituting 46.4% of the country’s total exports. In September 2022, Sudan urged the international community to carry out commitments it made in 2020 and 2021 and eliminate the country’s foreign debts.

5. Turkish Lira One USD exchange rate as of March 19: TRY 19 Decline since the end of 2022: 1.5% The Turkish lira continued its declining trend against the USD this year, hitting TRY 19 on March 19, 2023. Türkiye’s annual CPI hit 55.18% in February 2023. After the February earthquakes, uncertainty loomed over the indicators related to economic activity. In February 2023, the Central Bank of the Republic of Türkiye (CBRT) reduced the policy rate by 50 basis points from 9% to 8.5% to keep financial conditions supportive after the earthquakes, and kept it unchanged in March. CBRT is concerned about recession in developed economies because of the ongoing geopolitical risks and interest rate hikes globally. APRIL 2023

13 LEADERBOARD

Economy / Money

the European judiciary through Lebanon’s first investigating judge, Charbel Abu Samra, in March 2023. He is accused of multiple financial crimes such as bribery, forgery, money laundering, and tax evasion.

Banking & Finance

40 Years Of Silicon Valley Bank:

From Fame To Failure

1983 The concept for SVB was envisioned by Silicon Valley businessmen Bill Biggerstaff and Robert Medearis over a game of poker. The bank opened its first office in San Jose in 1983 to provide innovative banking and credit services to support tech startups.

1987 SVB went public and began trading stock on Nasdaq under the symbol SIVB, and completed its IPO in 1988 by raising $6 million in equity.

1992 SVB diversified into the highrisk real estate loan business, which reportedly amounted to 50% of its portfolio by the early 1990s, leading to the bank’s first net loss.

2019-2021 SVB saw massive growth between 2019 and 2021, leading to high deposits and assets. Its deposits surged from $61.8 billion in 2019 to $189.2 billion in 2021. While a small amount of those deposits were held in cash, most of the surplus was used to buy treasury bonds and other long-term debts, which are low in risk and in returns.

2015 1996

The bank claimed it served 65% of startups in the U.S. New offerings included syndicated loans and foreign currency management, according to the New York Times. SVB was the only U.S. financial institution working with virtual currency startups at the time.

The rise of computer technology companies in the U.S. led to an inflow of clients seeking lending from the bank. By 1996, SVB reportedly had around 2,000 clients, including Cisco Systems and Bay Networks. The bank expanded across the U.S.

2002 SVB entered the private banking business, by launching broker-dealer subsidiary SVB Securities; acquiring Woodside Asset Management, personal investment advisor.

2004

2008- 2009

The bank announced an international expansion drive in 2004, with new operations in Bangalore and London.

In December 2008, SVB Financial Group, the parent company of Silicon Valley Bank, received $235 million in investment from the federal government in exchange for preferred stock and warrants under the Troubled Asset Relief Program (TARP) Capital Purchase Program. In December 2009, it paid $10 million in dividends to the U.S. Department of the Treasury, then used the proceeds of a $300 million stock sale to buy back the government’s interest.

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APRIL 2023

BY OLA NOURELDIN; IMAGE BY REBECCA NOBLE / AFP

LEADERBOARD

2022

2023

SVB began to use short-term deposits from tech-startups to buy mortgage-backed securities and U.S. Treasury bonds. Following hiked interest rates by the U.S. Federal Reserve, SVB’s bonds became riskier and less valuable. By Q4 2022, SVB reported having $212 billion in assets, $74 billion in total loans, and $342 billion in total client funds.

• 55% •

• 56% •

of SVB’s $212 billion assets invested in fixed-income securities in 2022.

of SVB’s loan portfolio was given to venture capital firms and private equity firms in 2022.

• 71% •

• 14% •

of fintech IPO since 2020 were public offering by SVB clients.

of its loans were mortgaged to highnet-worth individuals.

• 24% • of its loans were to technology and healthcare companies.

Ending on a low note SVB was forced to sell off the mortgage-backed securities and treasury bonds it was counting on holding until maturity, to fund their clients’ withdrawals. With the start of the year, rising inflation and unprecedented hikes in interest rates took a toll on tech-startups, as firms looked to secure funding to pay salaries and manage expenses. Firms quickly withdrew money from their accounts at SVB, outpacing deposits and for SVB to fund clients’ withdrawals, it sold off the mortgage-backed securities and Treasury bonds it was counting on holding until maturity.

• March 8: SVB Financial Group announced

its $1.8 billion loss on its $21 billion securities sale, along with plans to sell both common and preferred stock to raise $2.3 billion.

• March 9: SVB Financial Group stock plunged

by 60%. More SVB customers began withdrawing their money for a total attempted withdrawal of $42 billion on one day.

• March 10: Trading was halted for SVB Financial

Group stock. The California Department of Financial Protection & Innovation closed the bank. Deposits were moved to a bridge bank created and operated by the Federal Deposit Insurance Corporation (FDIC)

• March 12: Regulators announced emergency

measures, allowing customers to recover all funds, including those that were uninsured.

• March 13: HSBC acquired U.K. arm of SVB for $1.2 (£1)

• March 17: SVB’s parent company, SVB Financial Group, filed for bankruptcy.

• March 26: FDIC entered into a purchase and

IMAGE BY NOAH BERGER / AFP

assumption agreement for all deposits and loans of Silicon Valley Bridge Bank, National association by First–Citizens Bank & Trust Company. The International Monetary Fund’s Chief Kristalina Georgieva warned that risks to financial stability have increased, with global growth slowing to below 3% in 2023. Georgieva noted that even with a better outlook for 2024, global growth will remain well below its historic average of 3.8%.

F O R B E S M I D D L E E A S T.C O M

APRIL 2023

15 LEADERBOARD

The beginning of the end

DARE TO DO DIFFERENTLY

CONTRARIAN • ENTREPRENEURS

•

CONTRARIAN •

By Christopher Helman

ENTREPRENEURS

Photograph by Benedict Redgrove for Forbes

The Nuclear Option Old-fashioned fission may be the best way to wean the world off fossil fuels. So BRET KUGELMASS wants to deploy 10,000 inexpensive, off-the-shelf microreactors— but not in America.

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PATRICK WELSH FOR FORBES

An hour west of Houston, where suburban sprawl surrenders to cow pasture, sits a cavernous industrial workshop in which welders and pipe fitters assemble equipment bound for oil refineries and drilling platforms in the Gulf of Mexico. “These guys have been working for decades to modularize components for high pressures and temperatures,” says Bret Kugelmass, 36, the founder and CEO of Washington, D.C.-based Last Energy. That’s why he came here, to VGas LLC, when he wanted a prototype of the small, modular nuclear fission reactors he’s betting could play a big role in cutting down on fossil fuels. Inspired by Kugelmass’ open-sourced design and using mostly off-the-shelf components, VGas fabricated almost all the parts for a basic small light-water reactor and crammed them into nine shipping container-size modules. It took only two days to bolt them together. To be clear, this wasn’t a working prototype— in fact, its 75-ton reactor pressure vessel is cut away to show how standardized fuel assemblies of zirconium rods filled with pellets of enriched uranium fuel could nestle inside. “We’re not doing any new chemistry or reactor physics,” Kugelmass emphasizes. “Our core innovation is the delivery model of a nuclear power plant. We’re just packaging it in a different way.” We’re talking old-fashioned fission technology here—the kind that for decades has been used to generate energy by splitting uranium atoms apart. It’s the opposite of nuclear fusion, which is how the sun generates energy: by fusing hydrogen atoms. For decades fusion research has stalled because scientists could not coax more energy out of fusion reactions than it took to trigger them. Recent breakthroughs show promise, but even in the most optimistic scenarios commercial fusion is many years away. Leaning into science is one way to make

F O R B E S M I D D L E E A S T.C O M

By Jon Markman Basic micro-reactors are the future of nuclear power generation. The best way to play this trend is Cameco, the Saskatchewanbased uranium producer that holds some of the world’s largest deposits. Nuclear power is impossible without uranium U-235, the fissionable material used in all current nuclear facilities. Momentum is building in the West to expand the life of existing nuclear plants, and numerous companies and countries are pursuing the development of small modular reactors and advanced reactors, according to the International Atomic Energy Agency. This interest will ultimately increase demand for uranium. Cameco could trade to $34.50 within 12 months, a gain of 28% from the current price of $27. Jon Markman is president of Markman Capital Insight and editor of Fast Forward Investing.

APRIL 2023

17 CONTRARIAN • ENTREPRENEURS

HOW TO PLAY IT

things easier; picking his regulatory shots is another. Although Kugelmass is working with federal agencies to get export permissions for Last’s nuclear technology, he isn’t yet asking for approval to build his plants in the U.S. Instead, he hopes to have his first 20-megawatt reactor (enough to power 20,000 homes) up and running by 2025 in Poland, which has been getting 70% of its power from burning coal since Russian natural gas supplies were cut off. Poland has agreed to buy the electricity from 10 of the units, which Kugelmass hopes to make for $100 million each, under a long-term contract that requires Last Energy to operate the reactors and take on the risk of cost overruns. Kugelmass aims to build 10,000 of these minireactors worldwide, which sounds fantastical for a nuclear industry newbie who has so far raised just $24 million in venture capital. It’s smart money, though: $21 million came in a round led by Austin, Texas-based Gigafund, whose managing partner, Luke Nosek, was the first VC investor to back Elon Musk’s SpaceX. You can still hear in Kugelmass’ voice the Long Island kid who loved building robots and who studied math at SUNY at Stony Brook before earning a master’s in mechanical engineering at Stanford. In 2012, when he was just 25, he launched a business that used a fleet of fixedwing drones to assess storm risk by conducting photographic surveys of millions of rooftops for insurance companies. He raised $5.8 million for his venture, known as Airphrame, and sold it in 2017. At that point, he decided to devote himself to fighting climate change. Kugelmass quickly homed in on nuclear power as a big part of the solution. According to Columbia University’s International Research Institute for Climate and Society, nuclear is the only fix for the “energy trilemma”—a source that is reliable, affordable and sustainable. Wind? Solar? They require more than ten times as much material per unit of electricity generation as nuclear, notes Marc Bianchi, an energy analyst at Cowen & Co. Moreover, land access and NIMBYism make it hard to scale up—wind and solar farms worldwide already cover an area twice the size of Texas and deliver just 5% of the planet’s electricity needs. Generating the same 20 megawatts as one of Kugelmass’ proposed mini-reactors would take, on average, 600 acres of solar panels or 4,000 acres of wind turbines. Kugelmass was still a nuclear novice in 2018, so he began interviewing experts via a podcast,

The Vault

METAL DETECTORS

GREEN DREAMS Last Energy power plants will blend into the environment, with reactor cores underground and fans and steam turbines replacing hulking cooling towers. Each 20-megawatt unit requires less than an acre.

At the dawn of the Cold War, the U.S. government was desperate for American uranium—and willing to pay. In 1948, Uncle Sam made an offer: a minimum of $1.50 per pound of uranium discovered (about $19 today), setting off a midcentury radiation rush as average Joes rushed West hoping to strike it big.

Besides some 200 government and industry geologists hunting uranium on Colorado’s Plateau, hundreds of amateurs packing pick, shovel and Geiger counter are trampling American soil. For them and the thousands of arm-chair ’49ers with vacation get-rich ideas, [the United States Atomic Energy Commission] makes no secret of exploratory methods in a neat, pocket-sized, 128-paged manual: “Prospecting for Uranium.” Packed with plain poop on where and how to find it, the copper-colored books adequately describe all the U-ores from chemistry to value, explain the use of “radiation detection instruments,” brim with tables and appendices.

—Forbes, August 1, 1953

a newfangled meltdown-proof uranium oxycarbide fuel for its 320-megawatt reactor, which will result in greater regulatory scrutiny. NuScale Power, the first publicly traded mini-nuke developer, got its 50-megawatt design approved in January after spending a decade and $1 billion to navigate the U.S. Nuclear Regulatory Commission but doesn’t expect to finish a first plant until the early 2030s. So how does Last Energy, using old technology, answer the safety fears (justified and not) that have held up nuclear projects for decades? Kugelmass says that even if its multiple redundant cooling mechanisms failed, the underground vault encasing the reactor in 550 tons of steel would efficiently dissipate excess heat and contain fuel in the unlikely event of a meltdown. As for radioactive waste, most nuclear plants remove the bundles of spent fuel rods from the reactor and store them outside in concrete and steel casks. Last Energy’s plan, by contrast, calls for bringing in a new reactor module, preloaded with fuel, once every six years. The old cores stay behind, secured underground, cooling off until the eventual decommissioning of the plant. It might seem a waste to replace an entire reactor module rather than just the fuel, but it does make life simpler. “We’ve deliberately accepted certain plant inefficiencies to achieve economic efficiencies,” Kugelmass says. “Any other approach and you’d be right back where we started.”

F I N A L T H O U GH T

“THERE IS NO EVIL IN THE ATOM, ONLY IN MEN’S SOULS.” —Adlai Stevenson

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APRIL 2023

COURTESY LAST ENERGY

CONTRARIAN • ENTREPRENEURS

Titans of Nuclear, that has now grown to nearly 400 episodes. He studied the obstacles to building more nuclear capacity and concluded that too much complexity, along with excessive regulation, were major problems. Another issue: the historically runaway costs of large nuclear projects, which he attributes in part to skewed incentives in the way they have been financed and built. In the U.S., utilities that dare try to build new nuclear plants bear little risk from outrageous cost overruns, since they know they can always cover bills by charging more for their electricity. After all, their monopolistic rates are set by regulators. Kugelmass’ solution is to adopt the financing model from wind and solar projects: Last Energy will build and own the plants, using longterm contracts as the basis for borrowing the large amounts of money needed—around $1 billion in the case of the Polish project. Last Energy is hardly the only startup aiming to build a new generation of smaller reactors. Deeppocketed competitors include TerraPower, a joint venture between Bill Gates and Warren Buffett’s Berkshire Hathaway, which is seeking to build a novel molten chloride, liquid sodium-cooled 345-megawatt reactor in Wyoming. Despite $2 billion in federal subsidies, TerraPower’s costs have ballooned to more than $4 billion amid years of delays. X-energy, soon to be a public company via SPAC sponsored by Ares Management, is also using

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Creative tech for Better Change APRIL 2023

• COVER STORY •

SARWA

POWER SHIFT

Mark Chahwan, Nadine Mezher, and Jad Sayegh, Cofounders of the U.A.E.-based investment platform Sarwa, have raised $25 million in total funding since establishing their Fintech in 2017. Buoyed by a consumer shift towards digital banking and trading, they’re now looking at new ways to scale while navigating an evolving ecosystem.

BY HAGAR OMRAN F O R B E S M I D D L E E A S T.C O M

APRIL 2023

Mark Chahwan, Nadine Mezher, Cofounders of Sarwa.

IMAGE BY FORBES MIDDLE EAST

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SARWA

On March 17, 2023, California-based SVB Financial Group, the parent of Silicon Valley Bank (SVB) filed for bankruptcy after weeks of speculation had already led to volatility across the U.S. and global financial stock markets. While this left many players in the banking and Fintech industries feeling the pressure, some leaders in the Fintech world are clearly feeling optimistic. “This is Fintech’s time to shine,” says Mark Chahwan, Cofounder and CEO of U.A.E.-based investment platform Sarwa. “Fintechs were born after the 2008 financial crisis. People had lost trust in banks and sought alternative financial services. Technology and access today make it a lot easier to diversify. A lot of services that were once reserved for the 1% are now available to all.” Having been established in 2017, Sarwa—meaning “wealth” in Arabic—today employs around 50 people and offers four main products via its app. Sarwa Invest is the long-term investment arm, whereby clients create personalized portfolios and choose their risk profile, and fees are charged based on assets under management. Sarwa Trade is a zero-commission “do-it-yourself” trading platform, with revenue streams coming from the foreign exchange market. And Sarwa Save, which launched in February 2023, is a high-yield cash account, which Sarwa offers through banking partners, whereby clients earn interest on their cash while Sarwa takes a small percentage. In 2022, the company also launched Sarwa Crypto, which allows customers to trade Bitcoin, Ethereum, and other coins. All products are regulated by the Abu Dhabi Global Market’s Financial Services Regulatory Authority, and Sarwa Invest is also regulated by Dubai’s Financial Services Authority. According to the cofounders, Sarwa’s user base grew from 1,000 in 2018 to over 10,000 in 2019, while the pandemic effect saw it accelerate from 20,000 to over 100,000 in 2021. In 2022, it hit more than 180,000. “We’re a one-stop shop where all the revenue streams F O R B E S M I D D L E E A S T.C O M

get combined, and that’s how we make our business economics work,” says Nadine Mezher, Cofounder and CMO at Sarwa. “We use technology to lower all the costs for the clients and then generate revenues transparently.” The company also has an advisory team to help clients manage their assets and a support team that’s available to answer any questions. “Sarwa does everything with the technology, but if clients need extra support around their personal financial plans, Sarwa’s advisory team can look at these plans and assess them,” adds Mezher. Sarwa’s users are spread across several different regions, with the top five being India, the U.A.E., the U.K., the Arab world, and Europe. Over the last six years, the company has raised $25 million through four funding rounds: $220,000 from a seed round in 2017, $1.5 million from a pre-Series A round in 2018; $8.4 million from a Series A round in 2020; and $15 million from a Series B round in 2021. It is now planning to raise a new funding round in 2024, as well as grow its client base by five times over, despite a number of challenges.

“We use technology to lower all the costs for the clients and then generate revenues transparently.” These include the continued ramifications of the war in Ukraine. “In terms of the business impact, we’ve seen a lot of volatility after the Russian war eruption as inflation ratios hiked, which puts more importance on good investment behavior. During these tough times, our role becomes more important,” says Chahwan. As markets began to panic after the Russian invasion in February 2022, Sarwa implemented educational sessions and webinars for young investors. However, It appears to have had a positive impact for Sarwa. The company reports that the amount executed through its digital channels in 2022 grew by 223.5% to hit $550 million over 3.88 million transactions. The cofounders say they’re working on launching new products and features in 2024 that “make money work,” although they decline to reveal specific details. This year, they say the focus remains on continuing to invest systematically in the stock market, with a diversified approach across geographies and industries. “The main challenge for Fintech APRIL 2023

IMAGE FROM SOURCE

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23 SARWA

companies is the save and grow their necessary regional money weren’t sure nuance when scaling how to because they geographically,” says felt intimidated. Even Said Murad, Partner some of his friends at Global Ventures. that were working “Each market in management comes with unique consulting felt too regulatory dynamics busy to invest and and customer needs left their money in and appetites. savings accounts. Crossing borders Whereas in Canada, requires a thoughtful finding an investment and somewhat platform to help bespoke approach to people manage Jad Sayegh, Nadine Mezher, and Mark Chahwan, Cofounders of Sarwa. growth.” their money was Crossing borders relatively easy, many is not something new to the three cofounders, who international investment platforms didn’t allow people are all originally from Lebanon. Chahwan was born in to sign-up from the Middle East. Canada but grew up in Lebanon and met Jad Sayegh, While the Middle East’s population is digitally savvy, Cofounder and CTO at Sarwa, at high school. He with smartphone penetration ranging from 80% to moved back to Canada in 2006 to live with his brother 90% in leading markets, the region has remained and study finance and entrepreneurship at McGill heavily dependent on cash, according to a 2021 University in Montreal. In 2010, Sayegh joined him at McKinsey report. The World Bank estimates that in McGill to study engineering and finance. 2021, 11.6% of the adults in MENA aged 15 or over Both also began their careers in Canada. Chahwan saved money using an account at a bank or financial worked at BLOMINVEST Bank and the $300 billion institution or using a mobile money account, compared pension fund Caisse de depot et placement du Quebec to the global percentage of 30.8%. “When we asked before moving on to Hugessen Consulting and then people why they weren’t investing, people would Accenture Strategy, where he advised banks on building think they are not rich enough, or too busy for that, digital experiences. Elsewhere, Sayegh started out as a and that it required a huge learning curve,” Chahwan software engineer, taking roles at GBS Group, Ericsson, remembers. “We knew that it had to be a technology and Vigilant Global, a hedge fund specializing in highstartup that solved this problem of getting people in the speed trading technology. region to make their money work. We were resolving a Back in the Middle East, Mezher completed her problem for ourselves and our loved ones.” bachelor’s degree in business administration from the The cofounders decided to establish their startup in American University of Beirut before moving to France the U.A.E. lured by economic stability, a high level of and studying fashion at Esmod Paris. She started her average wealth per adult, and forward-thinking Fintech career working in fashion in Italy and France before regulation, which allowed an app to provide investment moving back to Lebanon and starting her own fashion advice rather than a human advisor. In 2017, while business. In January 2008, she moved to Dubai, where Sarwa was still at the early idea and PowerPoint stage, she worked as a growth consultant, eventually closing the budding entrepreneurs were accepted into the her business in 2012 and joining Dubai’s Department Fintech accelerator program at Dubai’s DIFC FinTech of Economy and Tourism as a retail strategy consultant Hive. They obtained a regulatory license, funding in 2013. themselves by raising venture capital through a seed While living in Canada, Chahwan and Sayegh round from angel investors and Shorooq Partners. In regularly headed home for holidays to visit Lebanon August that year, Chahwan and Sayegh left their jobs and Dubai. They knew Mezher through her sibling, who in Canada and moved back to the region. Shortly after, they’d met at school, and as the three hung out, they Mezher joined the company full-time. came up with an idea. Notable investors in the company so far include Chahwan was attempting to convince his mother to U.A.E.-based Shorooq Partners, which has been diversify away from real estate and noticed that many investing since the seed round, and the Kuwait Projects potential investors in the Middle East who wanted to Company (Holding), which participated during its Series

SARWA

A. Emirati sovereign wealth fund Mubadala led the Series B round, while other big names include U.S.-based 500 Global, Middle East Venture Partners, the DIFC Fintech Fund, ADQ, Hambro Perks, Phoenician Ventures, Vision Ventures, and Hala Ventures. “Robo advisory thesis was garnering a lot of momentum globally, with the likes of U.S. Wealthfront and Canada’s Wealthsimple leading the pack in 2017,” says Shane Shin, Founding Partner at Shorooq Partners. “We had the thesis and conviction that the MENAP region was the next frontier for this model to flourish in, and we believed that Sarwa was perfectly positioned to champion this model as the first mover in a regulated market.” Shorooq Partners has also backed two other investment platforms in MENAP: KTrade, an investment application in Pakistan, and SmartCrowd, a fractional real estate investment platform in the U.A.E. While growth has been steady so far, the Middle East’s Fintech and investment ecosystem is becoming more crowded as consumers look to digital platforms to park and grow their money. Among investors on the Sarwa platform, the U.S. stock market remains the main draw for users, led by trust in the U.S. economic outlook. However, the CEO says that users seem to be diversifying in which stocks they choose. Rather than instinctively picking specific big-name stocks like Tesla, Apple,

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and Amazon, investors are now looking across various areas, including consumer staples, technology, and energy. There is also a growing interest in cryptocurrency investments among GCC investors, and in May 2022, Sarwa introduced Sarwa Crypto in response to consumer demand. “We wanted to give the option for clients to make their own selective bets in sectors and asset classes that they believe in, and crypto was definitely one of them, and it still is,” explains Sayegh. “The increasing interest in cryptocurrencies isn’t just at the market level; it also extends to the policy level, local authorities, and regulatory bodies. They recognize the immense potential of the industry, which is why they’re pioneering the creation of frameworks to open the door to these investments.” Although interest in crypto is high, the industry remains volatile. And it’s not the only market facing fluctuations as other economic and global factors play out. Still, for the Sarwa cofounders, their strategy remains more risk-averse and focused on passive investing, which the CEO explains outperforms over 90% of active fund managers who fail to beat the market in the long-term. “For the future, our strategy is consistent, as we’re anchored around passive investing. Our investment depends more on a buy-and-hold strategy and long-term thinking,” says Chahwan. “Instead of trying to beat the market, we track it.”

Investing Fintechs Here are the four U.S.-based Fintechs working in investing from Forbes’ “The Fintech 50 List 2022.” Company

Headquarters Texas

Administers 401(k) plans for small businesses and partners with payroll service providers including Square, Intuit, Gusto and ADP.

• iCapital

New York

Connects more than 10,000 financial advisors and their hundreds of thousands of high-net-worth clients to private equity, private debt, venture capital, real estate and hedge funds with as little as $25,000 invested per fund.

• Public.com

New York

Brokerage app offering commission-free investing in stocks, ETFs and crypto, as well as fractional trading of NFTs and other collectibles and the ability for users to share their portfolios and trades—if they want to.

• Stash

New York

Stash’s app offers fractional investing in stocks and ETFs, IRAs, checking accounts and a debit card that rewards purchases with fractional shares back.

• Guideline

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• TOP 30 FINTECH COMPANIES •

ASHRAF SABRY • FAWRY

PAYING IT FORWARD

Ashraf Sabry, Cofounder and CEO of Fawry for Banking Technology and Electronic Payments (Fawry), Egypt’s largest e-payments network, has had a significant impact on introducing Fintech to the cash-centric country. Despite the backdrop of an economic downturn, he’s continuing to ride the digital wave toward banking the unbanked population.

BY SAMAR KHOURI F O R B E S M I D D L E E A S T.C O M

APRIL 2023

Ashraf Sabry, Cofounder and CEO of Fawry.

IMAGE FROM SOURCE

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APRIL 2023

ASHRAF SABRY • FAWRY

The increasing accessibility of Fintech is having a significant impact on the way people control, spend, and grow their money, in the Middle East and globally. This is particularly true in Egypt, where the level of financial inclusion remains low but is now growing exponentially. Financial inclusion rates in Egypt grew 131% between 2016 and June 2022, resulting in 39.6 million, or 60.6%, of the eligible population over the age of 16 owning transactional accounts, according to the Central Bank of Egypt. “The number of unbanked Egyptians has decreased a lot,” observes Ashraf Sabry, Cofounder and CEO of Egypt’s largest e-payments company, Fawry. “When you look into the Findex, which is the World Bank database for financial inclusion, you’ll find that the percentage of banked people in Egypt has reached around 37% or 40%, which was 12% six or seven years ago.” Having been established in 2008, Fawry has been at the forefront of transforming the country’s Fintech ecosystem for nearly 15 years, helping foster an e-payment culture that is changing many people’s lives. It offers electronic banking and financial services through non-traditional channels, serving Egypt’s banked and unbanked populations and providing B2B and B2C digital payments for businesses, including through electronic bill payments and mobile top-ups. The company—which is listed on the Egyptian Stock Exchange—processes over three million transactions daily, with a customer base of approximately 49 million on a monthly basis. At the time of its listing in August 2019, it had a market cap of $275.1 million; by March 2023, this stood at $575.2 million—an increase of nearly 290% in local currency. It posted over 55% year-on-year growth and had total assets worth $259.4 million as of the end of 2022. In 2019, the company launched its direct-to-consumer super app, myFawry, with the aim of consolidating F O R B E S M I D D L E E A S T.C O M

services such as savings, lending, and insurance on a mobile app. The myFawry app, which allows consumers to pay bills, car fines and licensing, settle loans and installments, and reserve tickets, reached 8.1 million downloads in 2022, a 63.9% increase compared to 2021. The CEO is now planning to evolve myFawry into a Neobank in 2023, offering financial services such as consumer lending and investments, and it’s set to launch a BNPL service this year. Fawry has also been expanding its market reach, recently signing agreements with a host of other tech-based companies, such as Kuwait’s Myfatoorah, the U.A.E.’s Syrve, and Orange Egypt. “Our growth strategy is to consolidate financial services and payment and rewards for consumers, as well as for small merchants and SME businesses,” says Sabry. In February 2023, BOTIM, a U.A.E.-based “ultra app” acquired by Astra Tech in January 2023, entered an agreement with Fawry to provide digital bill payments for Egyptian expats in the U.A.E. and GCC via the BOTIM app. Abdallah Abu Sheikh, Cofounder and CEO of Astra Tech, says that Fawry has become a crucial part of its vision. “To better serve expats in the U.A.E. and simplify the process of

“Our growth strategy is to consolidate financial services and payment and rewards for consumers, as well as for small merchants and SME businesses.” sending money home and paying bills in Egypt, we made the strategic decision to tap into the Egyptian market,” he explains. “With a population of nearly 100 million people and 66% of them now online, we recognized the potential for a Fintech boom in Egypt in the coming years.” The Fintech ecosystem in Egypt has become a vital tool for making financial services more accessible for the still cash-centric country. “Over the last nine years, the Fintech industry [in Egypt] has extensively grown from two startups in 2014 to around 149 Fintech and Fintech-enabled startups in 2023,” says Walid Al Sayed, Senior Partner and leader of the Consulting Practice in Egypt at PwC Middle East. “Replacing cash has been hindered by a few societal factors, top of which is the perception that digital APRIL 2023

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Egyptian technology conglomerate Raya Holding. He was attending an industry roadshow to raise capital for Raya when he became aware that what investors were really looking for was recurring revenues. He started looking for gaps in the market. “When I started looking into payments, this is really where the gap was,” he remembers. “The idea of building a network that would enable people to pay their utility bills, phone bills, and school fees by creating from one end convenience to the consumer and from the other end a more efficient connection mechanism for enterprise businesses.” He established Fawry in 2008 with his brother Amjad Sabry and three people he knew from Raya Holding, Medhat Khalil, Magda Habib, and Seif

Coutry. At the time, the world was still reeling from the global financial crisis, and three years later the Egyptian uprising hit the country. According to the CEO, Fawry emerged relatively unscathed from both crises. As the business grew, it diversified from bill payments to banking and payment tech services, gaining the trust of its consumers and gradually building its ecosystem. Institutional investors soon began taking note, including the International Finance Corporation, a member of the World Bank Group, which invested $6 million in Fawry in 2013 to encourage economic development in Egypt. In August 2019, Fawry was listed on the Egyptian Stock Exchange. Its IPO was oversubscribed 30 times at a price of 39 cents. A year later, amid a global pivot to digital financial services during the Covid-19 pandemic, Fawry made headlines when it became Egypt’s first Fintech company to achieve unicorn APRIL 2023

29 ASHRAF SABRY • FAWRY

transactions aren’t as secure as cash transactions.” However, the expert believes that security concerns seem to be subsiding, largely thanks to services such as Fawry becoming widely accessible and popular among users. Egypt has issued a number of initiatives and new laws to transform its financial landscape. For example, the CBE launched a Fintech and innovation strategy in March 2019, and in February 2022, Egypt issued a Fintech law in the non-banking financial sector. In March 2022, Egypt’s three biggest stateowned banks—the National Bank of Egypt, Banque du Caire, and Banque Misr—partnered with VC firm Global Ventures to establish a Fintech and Fintechenabled focused fund with a target capital of $150 million. In January 2023, the CBE’s “FinTech Egypt” initiative launched the country’s first digital academy to help upskill the sector’s workforce. A 2022 report published by FinTech Egypt revealed that Fintech and Fintech-enabled investments in the country increased 12 times in the first half of 2022 compared to 2017, reaching almost $167 million across 31 deals. “The central bank has fully paid for the point of sales that have been used by Fintech companies like Fawry to increase the acceptance footprint and the electronic payment footprint in the market,” says Sabry. “I have never seen something like that. The central bank pays for the infrastructure you require to expand the electronic payment ecosystem.” Egyptians have been increasingly embracing digital payment methods. According to Mastercard’s New Payments Index 2022 report, 88% of consumers in Egypt used at least one emerging payment method in 2021, while 15% used less cash. But despite the rise in Fintech usage, Sabry forecasts that cash will still cover the majority of payments in Egypt for the time being, saying “layers of infrastructure services are needed to enable the ecosystem to be end-to-end electronic.” He explains that the conversion cycle from cash to digital will probably take 12 to 15 years. “There is a change in the way people are used to paying, and people are used to accepting money, and this is an evolution that takes time. It took time everywhere.” It’s an evolution for which Sabry has had a frontrow seat. Before founding Fawry, he spent 10 years leading sales at IBM Egypt and served as CEO of

ASHRAF SABRY • FAWRY

status, reaching a market capitalization of $1.07 billion in August 2020. Since then, it’s continued to post positive financial results in the local currency. In 2021, it posted a 34.3% growth in revenues, generating $105 million compared to $78.2 million in 2020, and booked a 13.2% year-on-year increase in profitability. In 2022, it reported 37.5% year-on-year growth, generating $75 million in revenues, predominantly fueled by the expansion of its banking services by over 56%. It also grew 70% year-on-year to post $12.8 million in adjusted net profit to yield a net profit margin of 13.9%. In April 2022, Abu Dhabi’s ADQ—Fawry’s biggest shareholder— purchased 215.1 million shares for $68.6 million and signed a rights issue for another 201.6 million shares worth $54.9 million. Sabry says they are not currently in discussions with other sovereign wealth funds to take up a stake. Still, the company is operating in challenging circumstances. Egypt has been going through an economic and financial transformation since Russia’s February 2022 invasion of Ukraine. On top of battling crippling inflation, in January

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2023, the local currency crashed to a record low against the U.S. dollar . For now, Sabry says its impact on Fawry’s economic performance is minimal. “Our business is positively sensitive to inflationary pressures because our business model is dependent on the percentage of revenue,” he explains. “When the transaction value increases because of inflationary pressures, our revenues increase accordingly. So, we are not really seeing a very big threat. However, some of our businesses have to be prudently tackled, like the lending business, for example.” While Egypt’s economy continues to struggle, Sabry remains positive about Fawry’s outlook. “We have more of a supply issue than a demand issue. This is actually why the Egyptian economy is very resilient,” insists the CEO. “When you look at how the domestic has been a source of finance to the government all the time, you’ll find that we have a very strong, resilient, and domestic economic power. And since we are basically working on domestic needs, we are seeing our numbers growing. Our forecast is we should see growth rates in 2023.”

Top Listed Egyptian Companies These three Egyptian companies featured on our ranking of the Top 100 Listed Companies 2022. Company

• Commercial International Bank (CIB)

• QNB ALAHLI

• Telecom Egypt

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Rank on 2022 list

Sector

Banks & financial services

CIB was established in 1975 as a joint venture between the National Bank of Egypt and the Chase Manhattan Bank. It has several subsidiaries under its umbrella, including CVentures and the Mayfair CIB Bank in Kenya. In April 2022, Alpha Oryx Limited—a subsidiary of the U.A.E’s ADQ— acquired a 18.6% stake in CIB for $987.5 million.

Banks & financial services

In 2013, the QNB Group acquired a majority stake in Egypt’s NSGB Bank and changed its name to QNB Alahli. It provides services for more than 1.3 million clients and employs over 6,991 people across a network of 231 branches.

Telecommunications

Telecom Egypt provides mobile, fixed lines, and data services. The company owns 45% of Vodafone Egypt. It acquired a 4G mobile license in late 2016 and began mobile services in 2017. The Egyptian government owns 80% of the company.

APRIL 2023

PRO M OTI O N Scan this QR code to open the website

Technology With Impact Reem Asaad, Vice President of Cisco Middle East and Africa, explains how technology is impacting the way we work and how companies can embrace it to ensure a balanced, secure, and sustainable future.

Reem Asaad, Vice President, Cisco Middle East and Africa

What are the implications of rapid technological growth on work and the workforce? In the workplace we have entered the era of flexibility, choice, and inclusivity. There’s a clear opportunity for organizations to lay the foundation for the future of work, supported by technology and workplace cultures that nurture work-life balance and creative collaboration. To support our customers in that process, Cisco does three things. The first is technology innovation, developing the next generation collaboration technologies. Secondly, we openly share insights into our own journey that we call the “great hybrid work experience”. And thirdly, we lead comprehensive global and regional studies to examine the impact of hybrid work on performance, with a focus on quality of work, new skills, wellbeing, and growth.

How are the security imperatives changing in the digital era? The new business reality is that people and devices are always connected, yet today’s cybercriminals are more relentless and sophisticated than ever before. To manage the risks posed by highly distributed teams, security must be built in, not bolted on as an afterthought. While organizations cannot erase human error, they can certainly mitigate it. Businesses should also be holding data securely in the cloud and allowing access based on zero-trust principles—aligning all access with individual needs and contexts. At Cisco, we help businesses transition from a reactive mindset to a more proactive one–anticipating threats, learning from experiences, and evolving to strengthen their security environment. In the next decades, there will be a tremendous amount of innovation in security driven by automation, AI, and machine learning, hence allowing proactive detection, remediation, and prevention. How can businesses ensure their actions have a positive impact on society? While technology can contribute to solving many real-world challenges, it must be accompanied by a moral imperative that business and technology leaders become ethical stewards of digitization.

The expressed inOthis F O Rthoughts BESMIDD L E E A S T.C M advertorial are those of the client.

At Cisco, we believe that the tech industry has a unique opportunity to lead the twin transition to a digital and green future. Hence, we focus on our own practices, including the use of renewable energy sources and circular economy, and we build new, energy-saving solutions to help customers reduce their own impact. We also need to address the skills gap. Cisco has long realized that technology is truly powerful when combined with education. The Cisco Networking Academy, one of the world’s longest-standing IT skills-to-jobs programs in the world, is very active in the Middle East and Africa. Since its establishment in the region, more than 2.7 million learners have been trained and upskilled, of which 33% are female. Finally, I believe that it is the responsibility of companies like Cisco to support national visions for digitization to unlock the full potential of countries’ digital ambitions. And this is the core of Cisco’s Country Digital Acceleration Program that is heavily active across the region.

www.cisco.com

APRIL 2023

TOP 30 FINTECH COMPANIES

THE MIDDLE EAST’S

TOP 30 FINTECH COMPANIES 2023

hile the companies on our 2023 list of the Middle East’s top Fintechs confirmed having zero or limited exposure to Silicon Valley Bank (SVB) and are expecting it to have a minimal impact on regional players, the global banking and finance system is still reeling from the bank’s collapse and the potential longer term effects are still playing out. SVB was also a lender, banking partner, and payments technology provider. SVB’s clients accounted for 71% of all Fintech IPOs between 2020 and 2022. Our list this year features 30 regional Fintechs. Egypt is the most represented country in the list with eight entries, followed by Saudi Arabia with six companies, and the U.A.E. and Kuwait with five each. Payment companies dominate, with Egypt’s e-payment platform Fawry ranking first, having processed transactions of $6.8 billion and serving 49.4 million customers in 2022. Jordan’s MadfooatCom ranks second, having served over 3.6 million active users and processed transactions of $14.7 billion in 2022. Several companies have raised funding in the last year, including Egypt’s MNT-Halan, which secured over $200 million from Chimera Abu Dhabi in February 2023 to become the latest unicorn from the region. Tabby raised $58 million in a Series C funding round in January 2023, bringing its valuation to $660 million, while Saudi’s Tamara announced in March 2023 a debt facility of $150 million from Goldman Sachs, bringing its total funding in equity and debt to $366 million.

Methodology We compiled the list by considering companies that are applying technology to financial sectors, including payments, insurance, digital banking, investing and wealth management, saving, and lending and personal financing. We excluded Fintech operations owned by exchange houses, traditional banks, governments, and telecommunication companies. We gathered data through primary sources, statements, and questionnaires. We took into account: • The amount of money executed through the digital channels in 2022. • The number of app downloads and active users. • The number of countries that the companies operate in. • Growth over the past year. • Examples of innovation in digital payments. • Impact on consumers and businesses. • Funding from venture capitalists and valuation. New entries are marked with an asterisk (*).

Disclaimer: All data given was provided by the companies. Forbes Middle East holds no responsibility for any investment decisions. To nominate yourself or someone else for our lists, email: info@forbesmiddleeast.com

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Fawry for Banking Technology and Electronic Payments

• E-payment platform Founders: Ashraf Sabry, Seif Coutry, Medhat Khalil, Magda Habib, Amjad Sabry Established in: 2008 Headquarters: Egypt

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Fawry’s primary services include enabling electronic bill payments and mobile top-ups. Through its peer-to-peer model, it enables corporates and SMEs to accept electronic payments through websites, mobile phones, and POS systems. With a network of 36 member banks and more than 280,000 agents, Fawry serves 49.4 million users and processed transactions of $6.8 billion in 2022. In November 2022, the company’s subsidiary, Fawry Microfinance, launched a digital loan request and tracking mobile app, “Tamweelak Fawry,” while it plans to launch BNPL service in 2023. The company’s revenue grew by 37.5% in 2022 to $75 million. Its market cap stood at $542 million as of March 21. ADQ is the largest shareholder, with a 12.6% stake.

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Optasia

• Financial services provider for mobile operators and financial institutions Founder: Bassim Haidar Established in: 2012 Headquarters: U.A.E.

MadfooatCom for ePayments Company 2

• Bill presentment and payment system Founder: Nasser Saleh Established in: 2011 Headquarters: Jordan MadfooatCom was first established with Oasis500 to provide real-time electronic bill and payment solutions. It operates in Jordan, Egypt, Saudi Arabia, Oman, Palestine, the U.A.E., and Morocco, with 3.6 million active users and over 1.4 million app downloads as of March 2023. In 2014, the company won the exclusive tender of the Central Bank of Jordan to build, operate and administrate the electronic bill presentment and payment service “eFAWATEERcom” in Jordan, which is linked to all banks in Jordan, as well as mobile wallets, post offices, and payment service providers. In 2022, eFAWATEERcom processed 42.5 million transactions, and MadfooatCom processed transactions of $14.7 billion.

MNT-Halan

• Lending, BNPL and payments platform Founders: Mounir Nakhla, Ahmed Mohsen Established in: 2018 Headquarters: Egypt

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MNT-Halan offers digital banking services to unbanked customers, including small and micro business lending, payments, consumer finance, and e-commerce. It also obtained through its subsidiary an electronic wallet license from the Central Bank of Egypt to disburse, collect, and transfer money digitally through mobile applications. The company has 1.5 million monthly active users and serves more than six million customers in Egypt, of which four million are financial clients and over 2.5 million are borrowers. MNT-Halan processed transactions of $1.8 billion in 2022. In February 2023, the company announced that it had become a unicorn after raising over $200 million from Chimera Abu Dhabi.

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Optasia, formerly known as Channel VAS, provides financial services such as airtime credit services, micro-lending, and data monetization services. The AI-powered company serves customers in more than 30 countries, with a focus on emerging markets in Sub-Saharan Africa, the Middle East, Asia, and Latin America. Today, it has over 45 active deployments, with 40 billion credit decisions delivered over the past 10 years. Optasia disbursed advances of over $10 billion between 2019 and 2022, including $3.5 billion in 2022 alone. In 2022, Optasia’s average monthly unique users hit 95 million, and its valuation exceeded the $1 billion mark with Promoter Holding, Chronos Capital Limited, Waha Capital, and Ethos among its investors.

Tabby

• Shopping and financial services app Founders: Hosam Arab, Daniil Barkalov

36 TOP 30 FINTECH COMPANIES

Established in: 2019 Headquarters: U.A.E. and Saudi Arabia Tabby provides buy-now-paylater solutions to four million active shoppers across Saudi Arabia, the U.A.E., Kuwait, and Bahrain. It sells over 10,000 brands, including H&M, adidas, IKEA, SHEIN, noon, and Bloomingdale’s. It launched its Tabby Card in May 2022 to tap into offline retail, with over 150,000 cards issued by February 2023. Tabby raised $58 million in a Series C funding round in January 2023, bringing the valuation to $660 million. Its investors include Sequoia Capital India, STV, PayPal Ventures, Mubadala Investment Company, Arbor Ventures, and Endeavor Catalyst. It witnessed five times year-on-year revenue growth in 2022.

PayTabs Group

• Payment solutions company Group CEO & Founder: Abdulaziz Al Jouf Established in: 2014 Headquarters: Saudi Arabia

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PayTabs provides the infrastructure for B2B payment solutions, including digital invoicing for businesses, QR code payments, social media payments, point of sale, and switching platforms. It currently operates in Saudi Arabia, the U.A.E., Egypt, Oman, Kuwait, Jordan, Palestine, Türkiye, and Azerbaijan. In 2022, the company launched its unified payments processing orchestration solution, PayTabs SwitchOn. It also acquired the Saudi point-of-sale company Digital Pay in November and Türkiye’s social commerce platform Paymes in December to complement its existing retail portfolio. With over 225,000 app downloads and 1.1 million active merchants, PayTabs processed transactions worth $8.2 billion in 2022.

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TOP 30 FINTECH COMPANIES

Tamara

• Buy-Now, Pay-Later platform Founders: Abdulmajeed Alsukhan,Turki Bin Zarah, Abdulmohsen Albabtain Established in: 2020 Headquarters: Saudi Arabia

Tamara allows online and in-store shoppers in Saudi Arabia, the U.A.E., and Kuwait to split their payments across three installments with no hidden fees. Today, it serves more than six million customers and 15,000 partner merchants, including IKEA, SHEIN, adidas, noon, and Jarir. Tamara says it has witnessed over 4.5 times growth in its gross merchandise value in 2022 compared to 2021. In March 2023, it secured a debt facility of $150 million from Goldman Sachs, bringing its total funding in equity and debt to $366 million. Tamara’s investors include Sanabil, a subsidiary of Saudi’s Public Investment Fund, Checkout.com, Coatue, Shorooq Partners, and Endeavor Catalyst.

HyperPay

• Payment gateway Founder: Muhannad Ebwini Established in: 2014 Headquarters: Saudi Arabia

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HyperPay offers ecommerce payment services to merchants, including e-payment gateways, invoicing services, pay-out solutions, and reporting and analytics. It has a presence in Saudi Arabia, the U.A.E., Jordan, Egypt, Iraq, and Lebanon and facilitated transactions of $7 billion between merchants and companies in 2022, up from $4.7 billion in 2021. Its clients include Absher, Jarir, Bcare, and Tameeni, along with banks such as Al Rajhi Bank, FAB, and SABB. In January 2023, it signed a cooperation agreement with Arab Bank to provide e-payment services to the bank’s customers in Jordan. Today, HyperPay has 5,000 active users.

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MyFatoorah

• Payment solutions company Founder: Abdullah Aldabbous Established in: 2016 Headquarters: Kuwait

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TOP 30 FINTECH COMPANIES

MyFatoorah offers digital payment services to e-commerce merchants and business owners, including electronic invoices, payment gateways, shipping, and POS terminals. It operates in Kuwait, Saudi Arabia, the U.A.E., Qatar, Bahrain, Egypt, Jordan, and Oman and has clients in Lebanon, Türkiye, the U.S., and Europe. MyFatoorah processed $3.8 billion in transactions in 2022, with more than 367,000 app downloads and over 75,500 active users as of December 2022. In February 2023, MyFatoorah signed a cooperation agreement with Fawry to provide FawryPay reference code service for MyFatoorah’s customers and merchants in the Egyptian market.

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Rasan Information Technology 10

• Insurtech and banking solutions Founders: Moayad Alfallaj, Suliman Alfallaj, Thamer Alfallaj, Ayman Alfallaj Rasan offers insurance and banking solutions through Tameeni Motor, Tameeni SME Health, AwalMazad, and Treza Motor Leasing. It has over 10 million users. Tameeni enables retail and SME customers to compare insurance prices and coverage, then select and pay for a policy. Other brands under the company include Treza, which is a B2B leasing insurance platform connecting various banks with insurance companies, in addition to AwalMazad, an online auction platform helping insurance companies and banks selling salvaged or repossessed vehicles in Saudi Arabia. The company operates mainly in Saudi Arabia and has offices in Egypt and the U.A.E. In 2022, customers used the platform to buy insurance policies worth $1.2 billion. It plans for an IPO in 2023.

Eazy Financial Services (EazyPay) 11

• Payment services provider Founder: Nayef Tawfiq Al Alawi Established in: 2016

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Headquarters: Bahrain EazyPay offers online payment services, payment gateways, and POS systems in Bahrain. In September 2022, it partnered with Binance to allow customers to pay at merchants’ stores in real-time in cryptocurrency by scanning a QR code generated by Eazy’s POS using their Binance app. The company also provides customers in Bahrain and the GCC with a digital banking app allowing them to obtain a virtual IBAN, wallet account, and Eazy’s Mastercard virtual and physical branded cards. With 1,200 merchants and more than 8,400 POS terminals across Bahrain, EazyPay processed transactions of $1.8 billion in 2022, up from $794 million in 2021.

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Established in: 2016 Headquarters: Saudi Arabia

Paymob

• Financial technology company Founders: Islam Shawky, Alain El Hajj, Mostafa Menessy Established in: 2015 Headquarters: Egypt Paymob enables merchants to accept digital payments in Egypt, Pakistan, the U.A.E., and Oman. Today, it offers over 40 online and in-store payment methods via its gateway, point of sale, and Paymob app. Paymob serves over 170,000 businesses and enables 18 million mobile wallet users on its infrastructure railways. Its prominent customers include Vodafone, LG, Virgin, Chalhoub Group, Tabby, Uber, Foodics, and Decathlon. In 2022, the company launched the Paymob app in Egypt. Paymob raised $50 million in a Series B funding round in May 2022, led by Kora Capital and PayPal Ventures, bringing its total funding to $68.5 million.

AMAN Holding

• E-payment and financial services providers Founders: Mohamed Wahby, Hazem Moghazi Established in: 2015 Headquarters: Egypt A subsidiary of Raya Holding, AMAN provides e-payments, consumer finance, microfinancing, and SME services. It operates through 163 offices, 230 retail stores, and more than 170,000 point of sale terminals, serving 40 million customers in Egypt monthly. AMAN Holding lends to more than one million customers between microfinance and consumer financing. AMAN’s app provides several services like ecommerce and bill and utility payments. It had been downloaded over a million times with 550,000 active users as of December 2022. The company processed transactions of $1.5 billion in 2022, up from $1.3 billion in 2021. In February 2023, AMAN’s securitization arm got regulatory approvals for a three-year $161.8 million securitization program. In 2022, the company launched a money market fund to support unbanked customers.

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Iraq Wallet For Payment (ZainCash Iraq)* 14

• E-payment platform Founder: Yazen Altimimi

Headquarters: Iraq Iraq Wallet was licensed as a mobile wallet payment company in 2016. Today, it offers current accounts, international and local money transfers, bill payments, cash-in/out, mobile recharge, and QR payments to individuals, SMEs, large enterprises, humanitarian agencies, and government entities. Owned by the U.A.E-based company March Holding, it operates under the brand name of “ZainCash Iraq” through a partnership with Zain Group. Iraq Wallet has 252,000 active users and 10,000 agents across Iraq. It processed transactions of $1.4 billion in 2022. It supported the Iraqi government in disbursing cash assistance of $100 million to a million families during the Covid-19 lockdowns.

valU

• Buy-Now, Pay-Later platform CEO: Walid Hassouna

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Established in: 2017 Headquarters: Egypt valU, a subsidiary of EFG Hermes Holding, is a BNPL app that allows users to shop across more than 4,000 retailer partners and 1,000 websites in Egypt, with payment plans of up to 60 months. The platform saw 2.5 times growth in 2022, with more than a million transactions worth a total of $300 million and over 935,000 app customers as of December 2022. In August 2022, valU acquired the HR-focused platform Paynas, an employee management and benefits company that provides services to micro, small, and medium enterprises. In June 2022, the Alhokair family acquired a 4.99% stake in valU through a capital injection of $12.4 million.

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Established in: 2015

Sarwa

• Online independent investment platform Founders: Mark Chahwan, Nadine Mezher, Jad Sayegh Established in: 2017 Headquarters: U.A.E.

IMAGE BY FORBES MIDDLE EAST

TOP 30 FINTECH COMPANIES

Sarwa is an investment and personal finance platform that provides a one-stop shop for money management. The startup has 180,000 registered users. Sarwa Trade, a commission-free stock trading platform, allows investors to trade on all U.S. exchanges with zerotransfer fees for local AED accounts, while Sarwa Crypto is a crypto-trading service where users can buy and sell cryptocurrencies. Sarwa Invest is a hands-off auto-investing service with customized passive globally diversified portfolios. Sarwa’s annual trading volume grew to $550 million in 2022, a 25 times increase compared to 2021.

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HPS*

• Payment solutions provider Founders: Mohamed Horani, Abdeslam Alaoui Smaili, Samir Khallouqui, Driss Sabbahe Established in: 1995 Headquarters: Morocco HPS is a card and payment technology company providing payment solutions to card processors, financial institutions, retailers, national and regional switches, wallet providers, energy companies, insurance companies, and MNOs, among others. Its comprehensive suite of payment solutions, “PowerCARD,” is used by more than 450 institutions in over 90 countries. The company plans to expand into North America in 2023. HPS is listed on the Casablanca Stock Exchange with a market cap of $435 million as of March 22. Its revenue increased by 20.8% in 2022 to $96 million.

One Global*

• Financial services company Founders: Mohammed AlRashidi, Hamad AlMogahwi Established in: 2004 Headquarters: Kuwait

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One Global provides financial services such as payment acceptance, procurement, a B2C ecommerce application, a technology solution marketplace, blockchain technology and white label technology services, among others. It has 3.2 million customers, with a presence in more than 20 countries, including Kuwait, Saudi Arabia, Bahrain, Jordan, Egypt, India, and Uganda. Its applications include Og Money, Og Travel, Og Business, and Og stack. Og Money is a mobile financial service platform that offers a one-stop-shop for all gaming vouchers, entertainment cards, bill payments, top-ups, and other digital services. Og Money offers its services in more than 12 countries across the GCC, MENA, and Africa. One Global’s partners include Kuwait Finance House, Banque Misr, Zain, Vodafone, MTN, Ooredoo, stc, and Mastercard, among others.

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Hala*

• Digital financial platform Founders: Maher Loubieh, Esam Alnahdi Established in: 2018 Headquarters: Saudi Arabia Hala allows SMEs to digitize their payments and manage their sales and operations. Its services include digital wallets, cards, cashier solutions, and POS devices. Today, it serves more than 50,000 merchants and reached $350 million in monthly gross merchandise value during 2022, with over 233 million transactions, as of December 2022. In February 2023, Hala acquired the U.A.E.-based online payment platform Paymennt.com. The startup has raised $43.4 million in funding to date. It is licensed in Saudi Arabia and the U.A.E.

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Telr

• Online payment gateway Founder: Khalil Alami Established in: 2014 Headquarters: U.A.E.

Ottu

• Payment solutions company CEO: Talal AlAwadhi Established in: 2019 Headquarters: Kuwait Ottu’s online payment management system allows businesses to integrate digital payments into their operations without having to build their own payment infrastructure. Using Ottu’s single API, companies can connect directly with multiple payment gateways, aggregators, or PSPs. Ottu was first launched in Kuwait and has offices in Saudi Arabia, Bahrain, and the U.A.E. and serves Oman, Qatar, and India. It empowers merchants across multiple industry verticals like airlines, hotels, education, retail, automobile, governments, and healthcare.

MoneyFellows*

• Digitized ROSCA system Founder: Ahmed Wadi Established in: 2017 Headquarters: Egypt

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MoneyFellows digitizes money circles or rotating savings and credit associations (ROSCA), widely known as “Gameya” in Arab countries. The total value of money circles digitized by MoneyFellows quadrupled in 2022 compared to 2021. The MoneyFellows app had been downloaded 4.2 million times with 332,000 active users as of December 2022. In October 2022, the company raised $31 million in a Series B funding round, bringing its total funding to date to $38 million.

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Telr enables merchants to accept digital payments in over 120 currencies and 30 languages. Other services include social commerce, QR code payments, BNPL, payment links, anti-fraud protection, and shopping cart integration. It has served over 30,000 merchants in the U.A.E. and Saudi Arabia. In February 2023, Telr signed a strategic partnership with the digital wallet “urpay,” allowing customers of Telr’s merchants in Saudi Arabia to purchase goods and services online. Telr has raised $30 million in total funding, with iMENA, Codify, and Cashfree Payments India among its investors.

Tarabut Gateway

• Open banking platform Founder: Abdulla Almoayed Established in: 2018 Headquarters: U.A.E. Tarabut Gateway is a regulated open banking platform that provides a data and payments infrastructure that enables banks, Fintechs, and merchants to build advanced financial products and services. The platform has offices across Bahrain, the U.A.E., and Saudi Arabia. It works with 35 banks in MENA, including 22 banks covering 90% of Bahrain, and 11 banks In Saudi Arabia, including Riyad Bank, Saudi British Bank, Alinma Bank, and Banque Saudi Fransi. Tarabut Gateway is engaged with over 60 Fintech companies in MENA and recently partnered with the Saudi micro-lending company Tamam—a subsidiary of Zain—to provide it with Account Information Services.

Lean Technologies*

• Open banking platform Founders: Hisham Al-Falih, Aditya Sarkar, Ashu Gupta Established in: 2019 Headquarters: Saudi Arabia Lean is an open banking technology service provider that connects companies to their users’ bank accounts to initiate instant payments and retrieve account information. Headquartered in Saudi Arabia, it has offices in the U.A.E., Egypt, and London. Lean has over 100 clients, including Binance, e&, Careem, Al Futtaim, and Tabby. In January 2022, the startup raised $33 million in a Series A funding round led by Sequoia Capital India.

PaySky*

• Digital payment solutions company Founder: Waleed Sadek Established in: 2017 Headquarters: Egypt PaySky provides digital payment solutions to financial institutions, businesses, and individuals across 11 countries. It helped build the national payment gateways for multiple central banks in MEA. In 2022, PaySky partnered with Visa to launch the Yalla Card and Yalla Super app, providing more than 30 mini apps including financial and non-financial services for individuals and businesses in Egypt and the U.A.E., with plans to launch in Saudi Arabia and Pakistan in 2023. As of December 2022, Yalla Super app had been downloaded more than 2.5 million times, with over 1.6 million active users. In February 2023, the startup launched its Yalla Invest mini-app for investing in gold starting from 0.25 grams as part of Yalla Super App’s expansion strategy.

F O R B E S M I D D L E E A S T.C O M

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TOP 30 FINTECH COMPANIES

Thndr*

• Digital investment platform Founders: Ahmad Hammouda, Seif Amr Established in: 2020 Headquarters: Egypt Launched in late 2020, Thndr is a digital investment platform that allows users to invest in Egyptian mutual funds and publicly listed companies in addition to the U.S. stock market. Its app has recorded 1.1 million downloads with over 271,000 active users as of December 2022. Thndr claims that 86% of new registrations in the local Egyptian exchanges come through its platform. Cofounder and CEO Ahmad Hammouda is a former general manager of Uber in Egypt, while Cofounder and COO, Seif Amr, is a former operations manager of Uber MENA.

TOP 30 FINTECH COMPANIES

UPayments

• Payment services provider Founders: Ali Al Habshi, Nasser Al Humaidi Established in: 2016 Headquarters: Kuwait UPayments offers online invoicing systems, an ecommerce platform, property management, and a payment gateway. It currently operates in Kuwait, with expansion plans in Qatar and Saudi Arabia. Today, the company has over 10,000 merchants. Its clients include Bukhamseen’s real estate company “Tanmiya Realty”, Trolley, Digits, and LaBaguette. Upayment’s merchant clients have processed $726 million in transactions for their customers. The company is licensed by the Central Bank of Kuwait and provides its services through its website and app.

Dinarak*

• Payment services provider Founders: Imad Aloyoun, Bassem Farradj, Khaldoun Mohammad, Muntasir Homsi Established in: 2016

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Headquarters: Jordan Dinarak provides mobile payment services to individuals and merchants, including money transfers, bill payments, QR payments, and loan management systems, among other services. It serves more than 400,000 customers and 3,000 businesses, merchants, and government agencies across Jordan. In 2022, it executed transactions of $540 million. Its app has more than 500,000 downloads, with 175,000 active users during the last 12 months.

F O R B E S M I D D L E E A S T.C O M

APRIL 2023

VI Markets*

• Trading platform Founder: Talal Al Ajmi Established in: 2010 Headquarters: Kuwait

TOP 30 FINTECH COMPANIES

Trading platform VI Markets allows Kuwaiti investors to trade forex and CFDs on indices, commodities, energies, bonds, and futures. It is partnered with One Financial Markets, which was established in London in 2007 and is regulated in the UK by the Financial Conduct Authority, with offices throughout the Middle East, Europe, South America, and Central and South East Asia.

YAP*

• Financial super app for individuals and businesses Founders: Marwan Hachem, Anas Zaidan Established in: 2021 Headquarters: U.A.E.

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YAP partners with traditional banks to provide users with digital bank accounts. It has been operating in the U.A.E. since 2021 and has partnered with Bank AlJazira to expand into Saudi Arabia in 2023. YAP is now in pilot in Ghana and Pakistan, with plans to launch commercially in 2023. The company raised $45 million in funding and had onboarded approximately 200,000 customers and over 10,000 SMEs.

F O R B E S M I D D L E E A S T.C O M

APRIL 2023

PRO M OTI O N Scan this QR code to open the website

Ariane de Rothschild, CEO of Edmond de Rothschild Group, explains why the familyowned investment house is focusing on the Middle East and shares its conviction-driven approach to managing wealth.

Ariane de Rothschild, CEO, Edmond de Rothschild Group

What inspired you to expand Edmond de Rothschild’s activities to the Middle East? Choosing Dubai International Financial Centre (DIFC) as one of our bases outside Europe was a natural decision for me. The region has established itself as one of the most innovative and dynamic financial areas in the world and we value its stability and position as a trusted center of talents. An important part of our client base was already located in the region. For the past 10 years, we have served them through our international hubs in Switzerland and Europe and used a representative office in Dubai. Opening an advisory office in DIFC will accelerate our growth, allowing us to propose our full range of products and services on the ground and improve our proximity to our clients. Why are you committed to the region? In many ways, the region’s business mindset aligns with my family’s

heritage and our approach to finance. We share a dedication to innovation, collaboration, and excellence. We are an entrepreneurial and family-owned bank, and are uniquely placed to serve the likeminded, familydriven business owners who have themselves chosen Dubai as their hub. Our commitment to deliver a convictions-based approach to wealth management and investment resonates with the mindset of this clientele. What goals do you have for Edmond de Rothschild in the Middle East? I am keen for us to bring the best of our wealth and asset management capabilities to directly address the needs of our high-net-worth and ultra-highnet-worth clients in Dubai and in the broader region. We also want to establish ourselves as the conviction-driven, go-to partner for local entrepreneurs. Beyond this, the region is home to one of the most talented pools of professionals in finance and attracting this talent is another target for us. As a mother of four daughters, I attach particular importance to the immense pool of female talent in the Middle East.

The expressed inOthis F O Rthoughts BESMIDD L E E A S T.C M advertorial are those of the client.

How do your convictions impact your vision of wealth and the ambitions you have for your clients? I am always looking to push the boundaries of what wealth can achieve and put impact at the center of what we do. We are more than a bank; we are investors and entrepreneurs. We approach every investment with a long-term view and select areas of investments where we can make a difference. This means making sure that we address current challenges and support the major trends that will shape the global economy in the future. Our private markets offering is particularly reflective of this approach. We invest in urban development, SMEs in the Middle East and Africa, energy transition, and even the agricultural revolution. This gives clients the opportunity to add purpose to their investments and to invest alongside our family in a perfect alignment of interests.

www.edmond-de-rothschild.com

APRIL 2023

49 TOP 30 FINTECH COMPANIES

Built On Values, Driven By Conviction

M O S T VA LUA B L E BA N KS

THE MIDDLE EAST’S

50 MOST VALUABLE BANKS 2023

his year has been a tough one so far for the global banking sector, with the collapse of Silicon Valley Bank flaming fears of a contagion effect. However, to date, MENA’s banks appear immune to the financial unrest thanks to solid liquidity buffers, low-cost and stable customer deposits, and a lack of exposure to failed U.S. banks. According to a report by Moody’s, GCC banks are resilient to the U.S. banks’ distress thanks to broad franchises and their sovereign footprint. The report also referred to the rapid growth of Islamic finance across GCC banking systems, adding that deposits at these banks are lower cost than at conventional banks and support the banks’ profitability at times of high-interest rates. Our list of the region’s most valuable banks features entities from 10 markets. The 50 banks had an aggregate market value of $548.1 billion as of February 28, 2023. GCC banks dominate with 41 entries, representing 82% of the list. Saudi Arabia and the U.A.E. are the most represented countries, with 10 entries each. Saudi Arabia’s 10 most valuable banks have an aggregate market value of $223.5 billion. The U.A.E.’s 10 entries are worth $121.2 billion, Qatar’s eight banks have a market value of $81.3 billion, and Kuwait’s seven entries are worth $76.2 billion. Saudi Al Rajhi Bank tops the list with a market cap of $75 billion, followed by Saudi National Bank with $56.4 billion. Methodology

We collected data from Middle Eastern banks listed on stock exchanges in the Arab world and ranked them based on their reported market value as of February 28, 2023. Listed subsidiaries of other listed companies were excluded. Currency exchange rates were taken as of February 28, 2023.

To nominate yourself or someone else for our lists, email: info@forbesmiddleeast.com

F O R B E S M I D D L E E A S T.C O M

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F O R B E S M I D D L E E A S T.C O M

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Al Rajhi Bank

• CEO and Managing Director: Waleed Abdullah Al-Mogbel

Country: Saudi Arabia Market value: $75 billion Established as an exchange house in 1957 and converted to a bank in 1988, Al Rajhi is the largest bank in the region in terms of market cap. In September 2022, the bank increased its stake in the Al Rajhi Company for Cooperative Insurance from 22.5% to 35%. In December 2022, Al Rajhi partnered with the Tatweer Education Technologies Company, a state-owned company specializing in educational technologies, to develop digital financial solutions for the education sector and its employees. As of December 2022, the bank had 13.3 million active customers and 19,964 employees across 557 branches. It recorded $4.6 billion in net profit in 2022, an increase of 16.3% compared to 2021.

QNB Group

• Group CEO: Abdulla Mubarak Al-Khalifa Country: Qatar

Market value: $42.8 billion Established in 1964, QNB is the largest bank in Qatar. It is a Qatari-owned commercial bank, with 51.93% owned by the Qatar Investment Authority. The group has a presence in more than 28 countries across three continents. It employs 28,000 people serving over 27 million customers. In 2022, the group’s assets hit $326.7 billion, with net profits of $4 billion, an increase of 9% compared to 2021. In November 2022, QNB signed a strategic partnership agreement with SADAD Payment Solutions to develop electronic payments in Qatar. It also partnered with Ajlan & Bros Holding to develop its digital banking presence in Saudi Arabia.

Saudi National Bank (SNB) 2

• Acting CEO: Talal Ahmed Al Khereiji Country: Saudi Arabia

Market value: $56.4 billion As of December 2022, SNB employed 15,906 people across 494 branches and 16 retail service centers in Saudi Arabia and four overseas branches in Bahrain, the U.A.E., Qatar, and Singapore. Its net profit hit $5 billion in 2022, an increase of 46.5% compared to 2021, with over 12.2 million customers across eight countries. SNB acquired a 9.88% stake in Credit Suisse for $1.5 billion in late 2022 but lost nearly $1.2 billion on its investment after UBS’s acquisition of Credit Suisse in March 2023. SNB says that this will have no impact on its growth plans as it constituted less than 0.5% of SNB’s total assets and 1.7% of its investment portfolio as of the end of 2022. Saudi’s Public Investment Fund owns 37.2% of SNB.

Saudi Arabia F O R B E S M I D D L E E A S T.C O M

Number of banks: 10

Aggregate market value: $223.5 billion APRIL 2023

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First Abu Dhabi Bank (FAB)

Kuwait Finance House (KFH)

• Group CEO: Hana Al Rostamani

• Acting Group CEO and Group Chief Treasury and Financial

Market value: $42.4 billion

Country: Kuwait Market value: $37.5 billion

The U.A.E.’s largest bank, FAB was created by a merger between the First Gulf Bank and the National Bank of Abu Dhabi in 2016. It has a presence in 20 markets, with more than three million U.A.E. customers and 6,765 employees globally, as of December 2022. In 2022, FAB’s total assets increased by 11% to $302.5 billion, and it facilitated over $7 billion in financing for sustainable projects across the energy supply, buildings, transportation, waste, water, and food sectors. In December 2022, FAB’s Magnati collaborated with PayRow Net to establish a digital payment platform for Dubai’s Ports Sector.

KFH was the first Islamic bank to be established in Kuwait in 1977. Today, it has operations in 10 countries with 631 branches. In 2022, KFH acquired Ahli United Bank Bahrain for $10.9 billion, bringing its total assets to $120.7 billion, up from $71.4 billion in 2021. It also became dual-listed on both the Boursa Kuwait and the Bahrain Bourse. Kuwait’s government owns 38.4% of KFH’s shares through the Kuwait Investment Authority, the Public Institution for Social Security, the Public Authority for Minors Affairs, and the Kuwait Awqaf Public Foundation.

Institutions Officer : Abdulwahab Iesa Alrushood

Country: U.A.E.

National Bank of Kuwait (NBK) 6

• Vice Chairman and Group CEO: Isam Jasem Al-Sager Country: Kuwait

Market value: $26.3 billion

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Established in 1952, NBK operates through 138 branches across 13 countries, of which seven are in the Middle East. NBK also offers alternative investments through its NBK Capital subsidiary, which since its establishment in 2005 had executed over $91 billion worth of investment banking mandates as of November 2022. The bank’s net profit hit $1.7 billion in 2022, an increase of 40.5% compared to 2021. Under the bank’s pledge to achieve carbon neutrality by 2060, it installed 12 electric vehicle charging stations at different levels of the multi-story car park attached to its green headquarters in 2022. The bank also joined the United Nations Global Compact In February 2023.

U.A.E. F O R B E S M I D D L E E A S T.C O M

Number of banks: 10

Aggregate market value: $121.2 billion APRIL 2023

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Emirates NBD

• Group CEO: Shayne Nelson

• Managing Director and CEO: Tony Cripps

Market value: $23.4 billion

Market value: $18.2 billion

Emirates NBD was formed in 2007 by a merger between Emirates Bank International and the National Bank of Dubai. In 2022, it served over 17 million customers in 13 countries in the MENAT region through a network of 879 branches. In February 2023, Emirates Islamic, the Islamic subsidiary of Emirates NBD Group, issued a dirhamdenominated sukuk valued at $272.5 million, following its $272.5 dirham-bond sale in January 2023. The group’s net profit hit $3.5 billion in 2022, an increase of 39.8% compared to 2021. The Government of Dubai owns 55.8% of Emirates NBD through the Investment Corporation of Dubai.

SABB was established in 1978 as a Saudi joint-stock company. In 2019, it merged with Alawwal Bank. SABB provides financial and banking services through 109 branches. The bank serves 1.3 million retail customers. In 2022, its net profit jumped by 52.2% to hit $1.3 billion. In September 2022, the bank completed the sale and transfer of certain lines of business from HSBC Saudi Arabia to the Alawwal Invest Company in a deal valued at $320.9 million. The HSBC Group owns 31% of SABB.

Country: U.A.E.

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Saudi British Bank (SABB)

Country: Saudi Arabia

Riyad Bank

ADCB Group

• CEO: Tareq Al-Sadhan

• Group CEO: Ala’a Eraiqat

Market value: $20.8 billion

Market value: $15.9 billion

Country: U.A.E.

Country: Saudi Arabia

Riyad Bank has 338 branches in Saudi Arabia, one in the U.K., an agency in the U.S., and a representative office in Singapore. The bank employs over 5,593 people. Its profits grew by 16.5% in 2022 to $1.9 billion, while its total assets hit $95.9 billion, an increase of 10.4% compared to 2021. In October 2022, It completed the issuance of a SAR-denominated additional tier 1 capital sukuk worth $1 billion. Saudi’s Public Investment Fund is the bank’s largest shareholder, with a 21.8% stake.

Qatar F O R B E S M I D D L E E A S T.C O M

Number of banks: 8

The ADCB group was formed in 2020 through the merger of the Abu Dhabi Commercial Bank and the Union National Bank and the acquisition of the Al Hilal Bank. Today, it has over 115 branches and more than 8,400 employees across the U.A.E., Egypt, and Kazakhstan. In September 2022, ADCB raised $500 million with its debut green bond to support the financing of low-carbon initiatives. In January 2023, it signed the U.A.E. Climate-Responsible Companies Pledge. Its net profit increased by 22.6% to hit $1.8 billion in 2022. The Mubadala Investment Company owns 60.20% of the group through its wholly-owned subsidiary, the One Hundred and Fourteenth Investment Company.

Aggregate market value: $81.3 billion APRIL 2023

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Alinma Bank

• CEO: Abdullah Ali Al Khalifa Country: Saudi Arabia

Market value: $15.7 billion

Qatar Islamic Bank (QIB)

• Group CEO: Bassel Gamal Country: Qatar

Market value: $12.1 billion Established in 1982, QIB has 23 branches in Qatar and one branch in Sudan, with investments in the U.K. and Lebanon. The group has stakes in a number of Qatari Shariahcompliant financial services companies, including QInvest, Beema, and Al Jazeera Finance. In October 2022, QInvest and the Qatar Insurance Company established the Epicure Islamic Investment Management Company in Qatar. QIB’s net profit grew by 12.7% to hit $1.1 billion in 2022, while its total assets stood at $50.5 billion, a 5.1% decrease compared to 2021. The Qatar Investment Authority is QIB’s largest shareholder, with a 17.2% stake.

Dubai Islamic Bank (DIB)

• Group CEO: Adnan Chilwan Country: U.A.E.

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Market value: $11.3 billion DIB is one of the largest Islamic banks in the Middle East, with more than five million customers globally and over 10,000 employees. In 2022, DIB’s net profit grew by 26% to reach $1.5 billion, marking the highest net income in its history. In February 2023, DIB issued a $1 billion sustainable sukuk, following the issuance of a $750 million sustainable sukuk in November 2022. In January 2023, DIB launched Islamic auto financing for Tesla customers in the U.A.E. DIB acquired Noor Bank in a share swap deal in 2020. The Investment Corporation Of Dubai is DIB’s largest shareholder, with a 28% stake.

Kuwait F O R B E S M I D D L E E A S T.C O M

Number of banks: 7

Aggregate market value: $76.2 billion APRIL 2023

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Established in 2006, Alinma Bank’s total assets recorded $53.4 billion in 2022, an increase of 15.5% compared to 2021, while its net income grew 32.8% to $959.8 million. By the end of 2022, Alinma was serving 3.93 million customers in Saudi Arabia. In February 2023, the bank’s board of directors approved the purchase of a maximum of five million of its shares to allocate them within the Employee Stock Long-Term Incentive Plan. Saudi’s Public Investment Fund is the bank’s largest shareholder, with a 10% stake.

Banque Saudi Fransi (BSF)

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Bank Albilad

• CEO: Bader Alsalloom

• CEO: Abdulaziz Mohammed Alonaizan

Market value: $10.5 billion

Market value: $9.5 billion

BSF was known as the French Banque de l’Indochine et de Suez until 1977 when foreign banks in Saudi Arabia were nationalized. The bank has 82 branches and employs 3,105 people across Saudi Arabia. In November 2022, BSF issued $700 million in USDdenominated notes under the medium-term note program. The bank’s total assets reached $61.9 billion in 2022, while its net profit grew by 3.6% to hit $953.4 million. Prince Alwaleed bin Talal’s Kingdom Holding Company is the bank’s largest shareholder, with a 16.2% stake.

Established in 2004, Bank Albilad provides Shariah-compliant banking services. It operates through 105 branches and employs 4,494 people across Saudi Arabia. The bank’s total assets were worth $34.5 billion in 2022, an increase of 16.9% compared to 2021, while its net profits increased 23.4% to $555.1 million. In August 2022, Bank Albilad established the Enjaz Payment Services Company with a share capital of $53.3 million. It also owns the Albilad Investment Company and the Albilad Real Estate Company.

Country: Saudi Arabia

Abu Dhabi Islamic Bank (ADIB)

• Group CEO: Nasser Al Awadhi Country: U.A.E.

Market value: $10.3 billion ADIB provides banking services to a million customers, with 146 branches and 5,000 employees across the U.A.E., Egypt, Saudi Arabia, Qatar, Sudan, Iraq, and the U.K. In January 2023, ADIB acquired 9.6 million shares in ADIB Egypt from the National Investment Bank, bringing its ownership to 52.6%. The bank has facilitated $1.7 billion in sustainable project financing and saved five million sheets of paper in 2022 through its ongoing Al Ghaf paperless program. The bank recorded $986.1 million in net profits in 2022, an increase of 55.3% compared to 2021. The Emirates International Investment Company holds 39.4% of ADIB’s shares.

Morocco F O R B E S M I D D L E E A S T.C O M

Number of banks: 4

Arab National Bank (ANB)

• CEO and Managing Director: Obaid Alrasheed Country: Saudi Arabia

Market value: $9.2 billion Established in 1979, ANB has 127 branches and 75 remittance centers in Saudi Arabia and one branch in the U.K. It recorded net profits of $817.9 million in 2022, an increase of 41.2% compared to 2021. The bank’s total assets also grew by 10.5% to $56.7 billion. Its subsidiaries include ANB Capital, which provides financial advisory, asset management, and brokerage services, among others. The Jordan-based Arab Bank owns 40% of ANB’s shares.

Aggregate market value: $17.8 billion APRIL 2023

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Attijariwafa bank

Masraf Al Rayan

• Chairman and CEO: Mohamed El Kettani

• Group CEO: Fahad Al Khalifa

Market value: $8.7 billion

Market value: $6.9 billion

Attijariwafa bank is the largest bank in Morocco and one of the largest in Africa. As of April 2022, it had 10.6 million customers with operations in 26 countries. The group expanded its footprint in 2022, launching a subsidiary in Chad called Attijari bank Tchad and opening a representative office in China. In June 2022, it partnered with Finastra to take part in “Hack to the Future,” an international Fintech movement that aims to establish sustainable and inclusive finance. Attijariwafa bank’s net profit climbed by 21.1% in 2022 to hit $714 million.

Established in 2006, Masraf Al Rayan is a Shariah-compliant bank with a presence in Qatar, the U.K., the U.A.E., and France. In April 2022, Masraf Al Rayan announced the launch of its sustainable financing framework to offer ESG-linked funding opportunities to investors. The bank completed its merger with the Al Khaliji Commercial Bank in 2021, marking the first merger of publicly-listed banks in Qatar. The bank’s total assets stood at $46 billion by the end of 2022. The Qatar Investment Authority owns 15.9% of the bank.

Country: Morocco

Country: Qatar

Commercial Bank

• Group CEO: Joseph Abraham Country: Qatar

Market value: $6.8 billion Established in 1974, Commercial Bank operates in Qatar and has a presence in Türkiye through its fully-owned subsidiary, Alternatif Bank. It owns and operates the Diners Club franchise in Qatar and Türkiye. In June 2022, Commercial Bank closed a $750 million Asian syndicated term loan facility. The bank recorded $772 million in net profits in 2022, an increase of 22% compared to 2021, while its total assets hit $46.5 billion. The Qatar Investment Authority owns 16.8% of the bank.

Mashreqbank

• Group CEO: Ahmed Abdelaal Country: U.A.E.

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Market value: $7.2 billion Founded in 1967 by the Al Ghurair Group, Mashreqbank currently has branches in the U.A.E., Bahrain, Kuwait, Egypt, Hong Kong, India, Qatar, the U.K., and the U.S. In June 2022, Mashreqbank issued $300 million in additional tier 1 notes. In November 2022, it signed a strategic partnership with Bank Al Habib Limited Pakistan to offer free remittance transfers from the U.A.E. to Pakistan. The bank’s net profit jumped by 252% in 2022 to hit $1 billion. The Al Ghurair Group is the major shareholder in the bank through its subsidiaries, with over 70.7% ownership.

Oman F O R B E S M I D D L E E A S T.C O M

Number of banks: 4

Aggregate market value: $9.2 billion APRIL 2023

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• CEO: Waleed Khamis Al Hashar

Banque Centrale Populaire (BCP Group)

Market value: $5.7 billion

Country: Morocco

Bank Muscat

• Chairman and CEO: Mohamed Karim Mounir

Country: Oman

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Established in 1982, Bank Muscat operates in six countries, with 173 branches in Oman, one branch each in Saudi Arabia and Kuwait, and three representative offices in the U.A.E., Singapore, and Iran. The bank is the largest in Oman by total assets, which stood at $33.2 billion in 2022. It has 2.4 million customers. In October 2022, the bank sold its 27.29% stake in SICO Capital KSA (previously Muscat Capital) and acquired an additional 2.76% stake in SICO Bahrain, increasing its stake to 13.14%. The Omani bank is listed on the Muscat, London, and Bahrain Stock Exchanges.

Commercial International Bank (CIB) 23

• CEO and Managing Director: Hussein Abaza Country: Egypt

Market value: $5.2 billion CIB was established in 1975 as a joint venture between the National Bank of Egypt and the Chase Manhattan Bank. Today, it employs 7,700 people and serves two million customers across 190 branches and 21 units. In January 2023, CIB acquired the remaining 49% stake of Mayfair CIB in Kenya for a total transaction value of $40 million. CIB has several subsidiaries, including CVentures, Damietta Shipping, and Commercial International for Finance. In April 2022, Alpha Oryx Limited—a subsidiary of the U.A.E.’s ADQ— acquired an 18.6% stake in CIB for $987.5 million. The bank’s net income grew by 21.9% in 2022 to $653 million.

Jordan F O R B E S M I D D L E E A S T.C O M

Number of banks: 3

Market value: $4.7 billion BCP Group has a presence in 32 countries, including 18 countries in Africa. The group serves nine million clients. In 2022, BCP launched its first digital banking offering for children aged 12-17 called SWIPE. Its foundation Attawfiq Microfinance financed 142,000 people in 2022, carrying out incomegenerating activities worth more than $191.4 million. The bank’s consolidated net income stood at $335 million in 2022.

Arab Bank

• CEO: Randa Sadik Country: Jordan

Market value: $4.38 billion The Arab Bank was established in 1930 in Palestine. It moved its headquarters to Amman in 1948. The bank operates through 73 branches in Jordan and 129 branches abroad. It also has subsidiaries that include Europe Arab Bank, Arab Bank Australia, Arab Sudanese Bank, and Arab Tunisian Bank, among others. In 2022, Arab Bank’s net income grew by 73.1% to $544.3 million, and its total assets stood at $64.5 billion.

Aggregate market value: $6.9 billion APRIL 2023

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• CEO: Abdulbasit Ahmed Al Shaibei

Dukhan Bank

• Acting CEO: Ahmed Hashem Country: Qatar

Country: Qatar

Market value: $4.17 billion

Market value: $4.36 billion

Dukhan Bank was incorporated in 2008 under the name Barwa Bank and commenced operations in 2009 as a full-service Shariah-compliant bank. It rebranded to Dukhan Bank in October 2020, following the merger with the International Bank of Qatar in 2019. The bank was listed on the Qatar Stock Exchange in February 2023 with a free float of 33.34% and a market cap valuation of $6.3 billion. Dukhan had total assets worth over $29.2 billion in 2022. The General Retirement and Social Insurance Authority is the largest shareholder, with a 24.5% stake.

Established in 1990, QIIB provides personal and corporate Islamic banking solutions across 17 branches in Qatar. In October 2022, QIIB established Takaful Insurance Company in Morocco in cooperation with Atlanta Insurance Company, CIH Bank, and Qatar Islamic Insurance Company. The bank also held 40% of the Moroccan Umnia Bank as of December 2022. The Qatar Investment Authority is the largest shareholder in QIIB, with a 16.62% stake.

Saudi Investment Bank (SAIB) 27

• CEO: Faisal Abdullah Al-Omran Country: Saudi Arabia

Market value: $4.22 billion

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SAIB provides investment banking services for individuals and companies, as well as stock trading and asset management, among other services. It operates through 51 branches in Saudi Arabia. In January 2023, SAIB increased the size of its tier 1 capital sukuk issuance program from $533.3 million to $1.3 billion. The bank recorded net profits of $402.1 million in 2022, an increase of 42%. The General Organization for Social Insurance is its largest shareholder, with a 25.6% stake.

Bahrain F O R B E S M I D D L E E A S T.C O M

Number of banks: 2

Bank AlJazira (BAJ)

• CEO and Managing Director: Naif A. Al Abdulkareem

Country: Saudi Arabia Market value: $4 billion BAJ was created in 1975 after it absorbed the activities and services of the National Bank of Pakistan. Today, the Shariah-compliant bank has 82 branches and 54 Fawri Remittance Centres. The bank employs 2,421 people. Its subsidiaries include AlJazira Capital, the Aman Development and Real Estate Investment Company, the Aman Insurance Agency Company, AlJazira Securities Limited, and BAJ Sukuk Tier 1 Limited. BAJ had total assets of $30.9 billion as of the end of 2022.

Aggregate market value: $5.8 billion APRIL 2023

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Qatar International Islamic Bank (QIIB) 26

Commercial Bank of Dubai (CBD) 30

• CEO: Bernd van Linder Country: U.A.E.

Market value: $3.8 billion CBD offers retail and commercial banking products and services, as well as Shariah-compliant banking services. In September 2022, it partnered with Sharaf DG Energy to enable customers to adopt clean energy by installing Solar PV Systems for their homes from Sharaf DG Energy via a sustainable and digital financing option from CBD. The Investment Corporation of Dubai is the largest shareholder in CBD, with a 20% stake. It had total assets worth $31.6 billion as of December 2022.

Bank of Africa

• Chairman and CEO: Othman Benjelloun Country: Morocco

Market value: $3.4 billion Bank of Africa has a presence in 32 countries throughout Africa, Europe, Asia, and North America. It employs nearly 14,900 people across 2,000 branches serving 6.6 million customers. In 2023, the Bank of Africa partnered with the SANAD Fund for MSME to improve access to finance for small and medium enterprises in Morocco through a $26.6 million loan. In July 2022, Bank of Africa’s subsidiary, Damane Cash, partnered with the U.K. Fintech company Paysend to enable Moroccans with a bank account to carry out instant international transactions.

National Bank of Bahrain (NBB) 31

• Group CEO: Usman Ahmed

Commercial Bank of Kuwait (Al-Tijari)

Market value: $3.5 billion

Country: Kuwait

• CEO: Elham Yousry Mahfouz

Country: Bahrain

Market value: $3.3 billion

Established in 1957, NBB operates in Bahrain, the U.A.E., and Saudi Arabia. The bank owns 78.8% of the Bahrain Islamic Bank, which operates under an Islamic retail banking license. In 2022, NBB reported a 28.5% increase in net profits to $187.5 million, compared to $145.9 million in 2021. In 2022, NBB partnered with SWIFT to introduce Swift-Go payment solutions to its customers. Usman Ahmed assumed his role as Group CEO of NBB in January 2023.

Egypt F O R B E S M I D D L E E A S T.C O M

The Commercial Bank of Kuwait is the second oldest bank in Kuwait, operating through banking and investment activities. It also provides brokerage services through its subsidiary, the Al-Tijari Financial Brokerage Company. Al Sharq Holding Company owns 23.9% of the bank. It has an 8.7% stake in Boubyan Bank. The bank had $14.1 billion in total assets as of December 2022.

Number of banks: 1

Aggregate market value: $5.2 billion APRIL 2023

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• Acting CEO: Waleed Mandani

National Bank of Fujairah (NBF)

Market value: $3.2 billion

Country: U.A.E.

Gulf Bank

• CEO: Vince Cook

Country: Kuwait

Established in 1960, Gulf Bank today operates over 50 branches across Kuwait, with total assets worth $22.5 billion as of the end of 2022. In January 2023, Gulf Bank and Kamco Invest issued a KWD-dominated corporate bond worth nearly $537 million for the Kuwait Projects Company (Holding), known as KIPCO. In 2022, the bank recorded net profits of $201.8 million, an increase of 46.8% compared to 2021. Alghanim Trading Co. is the largest shareholder, with a 32.75% stake.

Ahlibank

• CEO: Hassan Ahmed AlEfrangi Country: Qatar

Market value: $2.8 billion

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Ahlibank was established in 1983 as a public shareholding company. Today, it has a network of 14 branches and 89 ATMs across Qatar. In April 2022, Ahlibank and the Qatar Development Bank signed an enhanced Al Dhameen program agreement to support SMEs and micro-enterprises in Qatar. In the same month, the bank launched a new direct payment service in cooperation with the General Tax Authority to facilitate tax payments for the bank’s customers. In 2022, the group’s total assets reached $13.3 billion. The Qatar Investment Authority owns 47.71% of the bank.

Tunisia F O R B E S M I D D L E E A S T.C O M

Number of banks: 1

Market value: $2.7 billion NBF serves 11,000 corporate customers and 29,000 individuals across 15 branches in the U.A.E. In February 2023, the bank signed a facility agreement with Yellow Door Energy to refinance 31 solar power plants with a total capacity of 39 megawatts in the U.A.E. In November 2022, the bank partnered with HongQI Motors to finance imports of electric vehicles into the U.A.E. Fujairah’s Department of Industry and Economy is the largest shareholder with a 40.9% stake, while the Easa Saleh Al Gurg Group owns 21.5%. The bank’s net profits jumped by 195.4% in 2022 to hit $92.7 million.

Burgan Bank Group

• Vice Chairman and Group CEO: Masoud Jouhar Hayat

Country: Kuwait Market value: $2.4 billion Burgan Bank Group was established in 1977 by the Government of Kuwait and privatized in 1997. Today, it has 127 branches and 284 ATMs across Kuwait, Türkiye, Algeria, and Tunisia. In February 2023, Burgan Bank Group completed the sale of its 51.8% stake in Bank of Baghdad to Jordan Kuwait Bank for $125 million. In December 2022, the Capital Markets Authority granted Burgan Bank Group initial approval to offer its clients investment advisory, unregistered securities brokerage, and investment portfolio management. The bank’s net profit soared 20.5% in 2022 to $191.2 million. The Kuwait Projects Company (Holding), known as KIPCO, owns 64.3% of the bank.

Aggregate market value: $1 billion APRIL 2023

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Bank of Bahrain and Kuwait (BBK) 38

• Group CEO: Abdulrahman Ali Saif Country: Bahrain

Market value: $2.32 billion BBK operates through its branches in Bahrain, Kuwait, and India. It also engages in credit card operations and business process outsourcing services through its subsidiaries, CrediMax and Invita. In July 2022, Al Salam Bank acquired Ithmaar holding group’s 26.19% stake in BBK. In November 2022, the bank signed a partnership agreement with Eskan Bank to provide housing loans to Bahrainis eligible to benefit from the housing finance program, Mazaya. BBK’s recorded net profits of $172.8 million in 2022, an increase of 21.5% compared to 2021.

National Bank of Ras Al Khaimah (RAKBANK) 39

• Group CEO: Raheel Ahmed

Al Ahli Bank of Kuwait (ABK)

• Group CEO: Georges Richani Country: Kuwait

Country: U.A.E.

Market value: $2 billion

Market value: $2.28 billion

Established in 1967, ABK is operational in Kuwait, the U.A.E., and Egypt. In August 2022, ABK and Gulf Bank signed an MoU for a potential acquisition of one of the two banks over the other, with the possibility of converting one of the banks into a Shariah-compliant entity. In January 2023, ABK and ABK-DIFC closed an $825 million term loan facility. ABK reported a net profit of $105.2 million in 2022, an 18.2% increase compared to 2021.

RAKBANK provides retail, commercial banking, and treasury services through a network of 20 branches. In 2022, RAKBANK joined AMF’s Buna payment platform to allow customers to send and receive cross-border multicurrency payments. It also signed an MoU with the Abu Dhabi Global Market (ADGM) in November to provide preferential banking services to ADGM-licensed entities. Around 99% of the bank’s financial transactions were processed through digital channels in 2022. RAKBANK is 49.3% owned by the government of Ras Al Khaimah. Its net profit soared by 53.4% in 2022 to hit $317 million.

Sharjah Islamic Bank (SIB)

• CEO: Mohamed Abdalla Country: U.A.E.

Market value: $1.9 billion SIB is mainly engaged in corporate, retail, and investment banking activities through 34 branches across the U.A.E. It provides hospitality, brokerage, and real estate services through its subsidiaries, Sharjah National Hotels, Sharjah Islamic Financial Services, and ASAS Real Estate. In 2022, SIB had assets of $16.1 billion, and its net profits grew by 26.6% to hit $177.4 million. The government of Sharjah owns 37.5% of SIB through Sharjah Asset Management (28.5%) and the Sharjah Social Security Fund (9.1%), while Kuwait Finance House has an 18.2% stake.

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The Housing Bank for Trade and Finance (HBTF) 42

• CEO: Ammar Al-Safadi Country: Jordan

Market value: $1.6 billion HBTF operates in nine countries through 162 branches and three representative offices. It also has subsidiaries in Jordan, Syria, Algeria, and the U.K. In February 2023, the bank launched its Fast Track financing service, which grants loans and financing solutions for SMEs. It also signed an agreement to promote green financing with CRIF Information Technology Solutions in Jordan. The bank’s net profits rose to $186.5 million in 2022, a growth of 20.2% compared to 2021.

Warba Bank

• CEO: Shaheen Hamad Al Ghanem Country: Kuwait

Market value: $1.5 billion Founded in 2010, Warba Bank offers Shariah-compliant services through 18 branches in Kuwait. In September 2022, the bank launched its first drive-thru teller service to allow customers to conduct various transactions, such as cash deposits and withdrawals. It also launched the SiDi Digital Wallet, a new mobile app for low-income workers and unbanked clients, which provides them with a simple and digital financial experience. The bank raised $100 million for the Warba Ijara Fund I in 2022. Warba Bank reported $63 million in net profits in 2022, a 20.8% increase compared to 2021.

Country: Qatar

Market value: $1.4 billion Established in 1979, Doha Bank serves more than 470,000 active customers. It has overseas branches in Kuwait, the U.A.E, and India and representative offices in Japan, China, Singapore, South Africa, South Korea, Australia, Türkiye, the U.K, Canada, Germany, Bangladesh, Sri Lanka, and Nepal. In January 2023, the bank launched its Q-Trade platform to allow customers to buy and sell stocks listed on the Qatar Stock Exchange. The bank had total assets worth $26.8 billion in 2022. The Qatar Investment Authority holds a 17.15% stake.

F O R B E S M I D D L E E A S T.C O M

Sohar International Bank

• CEO: Ahmed Al Musalmi Country: Oman

Market value: $1.19 billion Sohar International Bank operates through a network of 30 commercial branches and nine Islamic branches in Oman. In November 2022, it established a branch in Riyadh, which is expected to be operational in 2023. In February 2023, Sohar International Bank received approval from the Central Bank of Oman for its proposed merger with HSBC Oman, which is expected to complete in the second half of 2023. In June 2022, the bank confirmed its commitment to pursue a possible merger with Bank Nizwa.

Doha Bank

• Acting CEO: Gudni Stiholt Adalsteinsson

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BankDhofar

• CEO: Abdul Hakeem Al-Ojaili Country: Oman

Market value: $1.18 billion BankDhofar provides corporate, retail, and investment banking activities through a network of 75 branches, including 11 branches of its Islamic banking arm, Maisarah Islamic Banking Services. In October 2022, it completed the issuance of $300 million in additional tier 1 bonds by way of private placement to investors. The bank’s net profits increased by 36% in 2022 to record $91 million. It had total assets of $11.5 billion as of the end of 2022.

APRIL 2023

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National Bank of Oman (NBO)

Banque Internationale Arabe de Tunisie (BIAT)

Country: Oman

Country: Tunisia

• CEO: Abdullah Zahran Al Hinai

• General Manager: Moez Hadj Slimen

Market value: $1.1 billion

Market value: $1 billion

NBO was established in 1973 to provide conventional and Islamic banking services. It serves over 500,000 retail customers and 25,000 corporate and SME customers through 66 branches. The bank has two overseas branches in the U.A.E. In November 2022, it completed the issuance of $134.1 million in additional tier 1 capital securities. The bank had total assets worth $11.2 billion in 2022. The Commercial Bank of Qatar and the Omani billionaire Suhail Bahwan are among the bank’s major shareholders, with 34.9% and 14.75% stakes, respectively.

Established in 1976, BIAT is a banking group with subsidiaries in insurance, asset management, investment capital, and consulting. It has five subsidiaries, including Assurances BIAT, BIAT Capital Risque, Tunisie Valeurs, BIAT Consulting, and BIAT France. As of the end of 2022, the bank employed nearly 2,000 people across 206 branches in Tunisia. In September 2022, BIAT signed a new partnership with Visa to expand its electronic banking offering and increase card usage. The Mabrouk Group had a 38.6% stake in BIAT as of April 2022.

CIH Bank

• Chairman and CEO: Lotfi Sekkat Country: Morocco

Market value: $954 million CIH BANK serves over 1.1 million customers through more than 301 branches across Morocco. In February 2023, CIH BANK acquired BMCI Asset Management, BMCI’s subsidiary specializing in UCITS management, with the deal to be finalized in the first half of 2023. In 2022, it signed a financing agreement with the European Investment Bank for $63.3 million to support SMEs and intermediate-size enterprises whose activities have been impacted by the pandemic. CDG Group holds a 67.9% stake in CIH BANK.

Capital Bank Group

• CEO: Dawod Al Ghoul Country: Jordan

Market value: $915 million The Capital Bank Group operates in Jordan, Iraq, Saudi Arabia, and the U.A.E. It employs 2,190 people across 63 branches. In June 2022, the Saudi Public Investment Fund became a strategic investor in the bank with a 23.97% stake worth $185 million through the issuance of 63 million new shares. In October 2022, the Capital Bank Group completed a merger with Société Générale de BanquJordanie (SGBJ). The bank’s total assets reached $9.8 billion in 2022 compared to $6.1 billion in 2021. The group acquired Bank Audi’s operations in Jordan and Iraq in 2021.

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APRIL 2023

WOMEN‘S

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APRIL 2023

• TRAVEL •

By Fouzia Azzab

A Journey Through Time Set amongst sand rock formations, ancient dwellings, and monuments that have been carefully carved by the hand of nature, AlUla tells the story of a city that has remained the meeting place of ancient civilizations.

Traveling to AlUla is like going on a journey through time to learn about a 200,000-year-old heritage and centuries-old historical sites. Today, thanks to its unique and picturesque natural environment, AlUla has become a thriving tourist destination and open-air museum, with events and festivals held throughout the year. Just an hour and a half flight from King Khalid Airport in Riyadh, AlUla International Airport opened in 2021, F O R B E S M I D D L E E A S T.C O M

covering a total area of 2.4 million square meters. It includes many facilities and services, including a VIP lounge designed with advanced technologies and integrated infrastructure. A four-wheel drive convertible was waiting for me upon arrival to take me on a short ride to the reception area. Set to the tunes of the traditional Qanun, we received a warm welcome from the Royal Commission for AlUla, marking the start of a new adventure. A stay in the mountains AlUla offers a variety of options for accommodation, from luxury resorts and high-end villas with all amenities to Airstream caravans equipped with all the necessities you might need during a trip. Whatever you choose, you will be surrounded by the most amazing mountains and landscapes.

This media trip was arranged and covered by the Royal Commission For AlUla.

APRIL 2023

CORKSCREW/SHUTTERSTOCK.COM

T R AV E L • A LU L A

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I stayed at the Habitas AlUla resort, in an oasis surrounded by the desert of Wadi Ashar, among palm groves and sandstone cliffs. It’s like no other hotel I’ve experienced, with a reception area shaped like a fully-equipped desert tent filled with the aroma of Arabic coffee. Upon arriving, we’re greeted with coffee and dates, which is a traditional regional custom. The hotel rooms are sprawled along the sand, and each of them has a private outdoor space, which includes an Arabic majlis or lounge deck that directly overlooks the mountains. The resort has 96 villas divided into three categories: celestial villas, alcove villas, and canyon villas. It also has a space designated for yoga and meditation practices, the Thuraya Wellness spa, a recreation and fitness center, the Tama restaurant, the Ashar Deck, and a large infinity pool. Each of these spaces is built using sustainably-crafted organic materials designed to blend in with the natural surroundings. Where civilizations meet AlUla is located 1,100 km from Riyadh in the northwest region of Saudi Arabia. Besides its picturesque nature, it is distinguished by a number of archaeological sites that are more than 200,000 years old. Part of it has been explored, while excavations are still underway to reveal more. The archaeological site of the ancient Nabataean Kingdom city “Hegra” is one of the most famous places in AlUla and was F O R B E S M I D D L E E A S T.C O M

APRIL 2023

T R AV E L • A LU L A

F O R B E S M I D D L E E A S T.C O M

region was also famous for its fertility and the cultivation of various types of crops. Elsewhere, Jabal Ikmah is located in a desert valley. The site is like an open library containing hundreds of pre-Arabic inscriptions and writings in several languages. Along the road leading to the vibrant monuments, you feel as if you are conversing with the sculptures of people who lived in the past and still bear witness to the details of the history living behind those volcanic and sandy rock blocks, grooves, and cliffs. In these sculptures, you see the faces of women and children and sometimes images of animals or the heads of pharaonic gods. The oases that permeate these roads form a lush paradise, shaded by palm and citrus trees, fields of wheat and barley, olive groves, figs, and oats. AlUla is home to around two million palm trees. Camel racing Through the AlUla development project, the Royal Commission seeks to become a global destination for heritage, culture, history, and natural tourism. It aims to attract two million visitors annually and contribute to raising Saudi Arabia’s GDP by $31.95 billion by 2035. My trip to AlUla coincided with the AlUla Camel Cup, which is the most expensive camel race in the world. The race was held in an oval-shaped stadium with 40 of the best camels racing over 16 rounds, with six runs for marathons and 10 for elite racing, with a grand prize pool of $21.29 million awarded to the winners at the closing ceremony. APRIL 2023

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Saudi Arabia’s first UNESCO World Heritage Site. Today, Hegra includes more than 110 monumental tombs carved into the rock formations of the Nabatean elite, who occupied the area between 100 BC to 106 AD. I explored Hegra with a tour guide who told me interesting stories about the Nabataean people. The ancient civilization was inspired by the Romans, who invaded the Nabataeans in 106, the Pharaohs, and different myths of ancient gods, including spells engraved on the tomb doors to prevent them from being tampered with. In 2008, archaeologists discovered a skeleton of a 2,000-year-old Nabataean woman and named her “Hinat.” Recently, a facial approximation was made for her using modern techniques. I visited the tomb of Hinat, which is the only grave that visitors are allowed to enter. As we were examining the tomb structures in the family cemetery, our guide explained that the woman had made the tomb for her and 80 of her children and grandchildren. The next day I visited the ancient city of Dadan, which dates back to between the late 9th and early 8th century BCE. It’s the capital of the two kingdoms of Lihyan and Dadan, and the inscriptions discovered there contributed to the development of the Arabic language. The Dadan people built tombs in the mountains, 50 meters above the ground. They were carved without any advanced construction equipment at the time. Some of them are believed to be tombs for the elite by their distinguished carvings called the “crouching lion” as a symbol of strength and protection. The

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Camels are an integral part of Saudi’s cultural heritage, as evidenced by the inscriptions that I saw in Jabal Ikmah, and in the rest of the archaeological areas that were once used as a passage for commercial convoys. Camel racing dates back to the 7th century, making it one of the oldest popular sports in the kingdom. Camels have a deep significance rooted in AlUla, which was a meeting place for convoys throughout its ancient history. The AlUla Camel Cup 2023 attracted a large number of tourists from the U.S. and Europe, including global star Will Smith, who attended to cheer for his friend Swizz Beatz’s team, which participated in “The Pinnacle of Camel Racing.” After the race ended, I went on a tour of the Heritage Village, which is adjacent to the site and was specially designed to host the events of the AlUla Camel Cup. Many diverse activities were on offer each day, including art, music, and cultural performances. Other various entertainment options available include restaurants, food stalls, and shops designed to simulate the ambiance of ancient commercial caravans and conveys, in addition to comfortable seats in the stands close to the racetrack and art and craft exhibitions showcasing the ancient culture of camels. In AlUla, I traveled back to ancient times, experienced many civilizations, and saw the faces of sculptures telling the story of a glorious history. I will return soon to listen to the rest of its story. F O R B E S M I D D L E E A S T.C O M

APRIL 2023

Kuwait Top Entrepreneurs 2023 Forum

Group picture: Kuwait Top Entrepreneurs 2023 at the recognition ceremony.

Kuwait Top Entrepreneurs 2023 Forum Discuss Boosting Innovation, Collaboration, And Impact

Forbes Middle East, in collaboration with Al-Qabas, convened an impressive line-up of speakers at the Kuwait Top Entrepreneurs 2023 Forum on March 15, 2023. Held at the American University of Middle East in Kuwait, the conference and its illuminating discussions were centered against the backdrop of Kuwait’s Vision 2035. The national vision aspires to transform Kuwait into a financial and trade hub where the private sector leads the economy, creating competition and promoting production efficiency. The forum convened interdisciplinary visionaries and stakeholders to discuss business challenges and key disruptive trends shaping 2023. Nasser Al-Momen, Executive Director of Al-Qabas, kickstarted the forum with a keynote address, inviting attendees to continue to create a connected ecosystem of solutions, integrated markets, and an inclusive environment for companies, citizens, and consumers alike. The forum featured three thought-provoking panels with conversations delving into the different time-critical challenges and opportunities facing Kuwait’s current economy and future. The first panel on “Fintech Revolution: Reshaping Kuwait’s Financial Landscape” analyzed the nation’s key Fintech trends and developments in payments, insurtech, wealthtech, cybersecurity, blockchain, and cryptocurrency. Industry experts contributing to the dialogue were: Faisal AlMashal, Group CEO of MyFatoorah; Mohammed Khaled Al-Othman, Group General Manager, Consumer and Digital Banking at the National Bank of Kuwait; and Faisal Al Haroun, Group SVP and Managing Director Kuwait at Tap Payments. The session was moderated by Fadia Al Hajj, Assistant Professor in Economics at the American University F O R B E S M I D D L E E A S T.C O M

of the Middle East. Participants of the “Kuwait’s E-commerce Outlook: Delivery Intelligent, Connected, and Personalized Experiences” panel revealed how they navigated the shift in buying patterns to stay relevant, re-energized their digital capabilities, and how technology aided them in their endeavors. The speakers were: Saleh Al-Tunaib, Cofounder and CEO of Raha; Athbi Alenezi, Cofounder and CEO of JustClean; and moderator Majid Makki, Director and Head of Management Consulting and Technology Advisory at KPMG Kuwait. Finally, the discussion on “Creating A Globally Relevant Marketplace: Enabling Entrepreneurship and Innovation” highlighted strategic insights on the significance of fostering entrepreneurship fueled by innovations and how digitization can create an integrated, seamless, and impactful future for future generations. The dialogue was led by Talal Al Awadhi, CEO of Ottu, and Mohammed AlMunifi, Head of Investments at Faith Capital. The session was moderated by Mohammed Sadeq Al Qattan, Board Member of the Association of Small and Medium Enterprises, Kuwait. The forum concluded with a glittering recognition ceremony and a gala dinner that celebrated Kuwait’s most innovative entrepreneurs featured on Forbes Middle East’s list of Kuwait’s Top 20 Entrepreneurs 2023. The list celebrated those embodying innovation and helping the country achieve its vision of a future-focused and prosperous economy. APRIL 2023

Event Coverage

Panel 1: The FinTech Revolution: Reshaping Kuwait’s Financial Landscape Nasser Al-Momen, Executive Director, Al Qabas

Fadia Al Hajj, Assistant Professor in Economics, American University of the Middle East (moderator), Mohammed Khaled Al-Othman, Group General Manager, Consumer & Digital Banking, National Bank of Kuwait

Panel 2: Kuwait’s E-Commerce Outlook: Delivering Intelligent, Connected, and Personalized Experiences Majid Makki, Director, Head of Management Consulting & Technology Advisory, KPMG Kuwait (moderator), Saleh Mohammed AlTunaib, Co-founder and CEO, Raha, Athbi Alenezi, Co-founder and CEO, JustClean

Panel 3: Creating a Globally Relevant Marketplace: Enabling Entrepreneurship & Innovation Mohammed Sadeq Al Qattan, Board Member of the Association of Small and Medium Enterprises, Kuwait, and Entrepreneur (moderator), Mohammed AlMunifi, Associate, Faith Capital, Talal AlAwadhi, Chief Executive Officer, Ottu F O R B E S M I D D L E E A S T.C O M

APRIL 2023

• THOUGHTS ON •

Volatility

THOUGHTS

“Markets love volatility.”

levers under the control... something erupts to remind us that the idea that anybody is in control of everything is hubris.”

Christine Lagarde “Never think that lack of variability is stability. Don’t confuse lack of volatility with stability, ever.”

—Lloyd Blankfein “Look, I think if you’ve got a niche portfolio or just operating in one country, like the United States, your ability to absorb the volatility is much less.”

—Nassim Nicholas Taleb “In my view, the biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital. Not only is the mere drop in stock prices not risk, but it is an opportunity. Where else do you look for cheap stocks?”

—Heather Bresch “Investors have few spare tires left. Think of the image of a car on a bumpy road to an uncertain destination that has already used up its spare tire. The cash reserves of people have been eaten up by the recent market volatility.”

—Li Lu “Accounting does not make corporate earnings or balance sheets more volatile. Accounting just increases the transparency of volatility in earnings.”

—Mohamed El-Erian “It doesn’t matter whether the market is up or down. All the day-traders want is volatility.”

—Diane Garnick “Fear tends to manifest itself much more quickly than greed, so volatile markets tend to be on the downside. In up markets, volatility tends to gradually decline.” —Philip Roth “While I take no pleasure in others’ misfortunes, we’ve historically made most of our profits from other investors behaving in

F O R B E S M I D D L E E A S T.C O M

Janet Yellen

a panicked and irrational fashion and selling us certain stocks at prices far below their intrinsic value. More volatility equals cheaper stocks, which equals higher returns.” —Whitney Tilson “We will not allow our country ever to be at the

—Omar Amanat mercy of commodity price volatility or external markets.” —Mohammad bin Salman “Every time I get accustomed to low volatility, like we were towards the end of the Greenspan era, and we think we have all the

“Efforts to promote financial stability through adjustments in interest rates would increase the volatility of inflation and employment. As a result, I believe a macro-prudential approach to supervision and regulation needs to play the primary role.” —Janet Yellen

APRIL 2023

IAMGE FROM WIKIPEDIA.ORG

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APRIL 2023

F O R B E S M I D D L E E A S T.C O M

APRIL 2023

Forbes Middle East - April 2023 - English

Articles inside

Over A Bump