29 minute read
Can the global economy survive without fossil fuels?
OIL AND GAS FOSSIL FUEL USAGE
Global temperatures could rise by more than 3°C and the world economy could shrink by 18% in the next 30 years
IF CORRESPONDENT
As the news regarding climate change becomes more and more alarming, we have also come to understand that humanity’s use of fossil fuels is severely damaging our environment. Fossil fuels cause local pollution where they are produced and used, and their ongoing use
Robots is causing lasting harm to the either allow climate of our entire planet. surgeries to Nonetheless, meaningfully be performed changing our ways has been with better very difficult. In 2020, the accuracy than unsubsidized human surgeons or allow remote surgeries Covid-19 pandemic brought trade, travel, and consumer spending to a near-standstill. With billions of people recently under stay-at-home orders and economic activity plunging worldwide, the demand for and price of oil have fallen further and faster than ever before. This has made some experts ask the question if this crisis could be the push the world needs to move away from oil. One asked: “Could the coronavirus crisis be the beginning of the end for the oil industry?” Another: “Will the coronavirus kill the oil industry and help save the climate?” In 2020, the annual greenhouse gas emissions declined by 4-7 percent due to the world coming to a standstill and some of the world’s most polluted cities enjoyed clear skies. The idea that a pandemic could help ave the planet misses crucial points. Firstly, damaging the world economy s not the way to deal with climate change. When it comes to oil, we still need to find a suitable replacement. in terms of its availability and fitness for purpose. Although the supply is finite, oil is plentiful and the technology to extract it continues to improve, making it ever-more economic to produce and use. The same is also largely true for natural gas.
Having said all of that, climate change is very real and we are seeing its more clearly than ever. Fossil fuel usage has roughly doubled since 1980, however, in the present day, coal consumption is falling in many parts of the world. Oil and gas usage, on the other hand, is still growing. Data shows that despite alternative energy sources such as renewables have become cheaper comparatively, the share of fossil fuels in the world’s energy mix still remains high compared to a decade ago. According to a report by REN21, fossil fuels’ share in the global energy mix was 80.2 percent in 2019, compared to 80.3 percent in 2009. The report further revealed that renewable energy share in the energy mix has grown to 11.2 percent in 2019 from 8.7 percent in 2009.
In 2019, we witnessed 15 extreme weather events, primarily as a result of climate change and caused more than $1 billion in damage each. . Four of these events each caused more than $10 billion
in damage. The large-scale use of fossil fuels tops the list of factors contributing to climate change. But the concentrated energy that they provide has proven hard to replace. Why?
Impact of Covid-19 on fossil fuels The effect of the Covid-19 pandemic can still be felt and seen all over the world. Natural gas prices in Europe have soared by over 400 percent since the beginning of 2021. Electricity prices have also increased by over 250 percent during the same period. Meanwhile, in the US natural gas price has more than doubled. Natural gas is mostly used for electricity and to generate heat in the UK during the winter season. Furthermore, the price of coal in the US has soared by nearly 400 percent this year to reach $270 per ton. The crisis is as we understand is considerably worse in Europe. Electricity prices in the continent have soared significantly as well. Natural gas prices have surged as well to $30/mm Btu.
This is resulting in inflation which means prices for energy-intensive metals are also increasing. For example, prices of metals such as nickel, steel, silicon have increased due to the energy crisis. Besides metals, prices of fertilizers have ramped past 2008 record highs to nearly $1,000 a ton. It is noteworthy that the prices were around the $300 to $450/ton mark in the last couple of years. The price for copper too has increased to a record high of $4.50 per pound. Copper is an important metal and raw material for the solar or wind energy industry, which emphasis is growing day by day as and is seen as an important factor to tackle climate change.
In Britain, renewable power production this year was much lower than normal as a result of a windless summer. The region meets around 24 percent of its energy needs through the wind. However, due to low production this year, it means the UK has to rely on coal. Over the years, Britain has transitioned away from coal as an electricity source. Prime Minister Boris Johnson said that the UK remains committed to wind
Natural gas prices in Europe have soared by over
400 percent 250 percent
since the beginning of 2021
Electricity prices increased by over
during the same period
OIL AND GAS FOSSIL FUEL USAGE
power generation. He went on to say that he wants the UK to become the ‘Saudi Arabia of wind power’ with offshore wind farms generating enough electricity to power every home in the UK in the next 10 years.
However, the landscape is pretty different in the present time. Soaring electricity prices is a matter of growing concern for politicians across Europe. The crunch in the gas market is forcing countries to revert to coal. This goes against Europe’s fight against climate change and the fact that the UK hosted the 2021 United Nations Climate Change Conference, more commonly referred to as COP26 at the SEC Centre in Glasgow.
In Asia, thermal coal prices also keep hitting record highs. In short, there isn’t enough coal to meet demand. Economies in the region are slowly resuming activities and are in the process of an economic revival, be it China, Malaysia or India. It has led to greater demand and is one of the primary causes of an emerging electricity crisis in China. Coal stockpiles are running low in India too, however, the government claimed there are enough stockpiles to keep the wheels running.
Climate change & fossil fuels During the beginning of winter in 2021, the northern hemisphere witnessed a series of very cold and extreme weather events. If the same trend is seen happening next year, the northern hemisphere witnessed a series of very cold and extreme weather events. In order to deal with climate change, we must start by understanding the fossil fuel
Global greenhouse gas emission
Carbon dioxide (fossil fuel)
65%
Carbon di oxide (Forestry and other Land use)
11%
Methane
16%
Nitrous oxide
6%
Fluorinated gases
2%
system, how energy is produced and used. While there is no denying that fossil fuel companies are immensely powerful, in the United States and around the world, their lobbying prowess is not the key reason that their fuels dominate the global energy system. Similarly, the transition to an all-renewable energy state is not a simple task to say the least. As we have seen during the 2020 Presidential elections, the politics of blame is quite popular. For years now, fossil fuel companies have denied the problem to policymakers reluctant to enact the policies needed to force real change. It has been easier for everyone to stick with the status quo. Since we are standing at a critical juncture of climate change, what we need is technology and strong policy to move in a new direction. Throughout history, humanity’s energy use has moved toward more concentrated, convenient, and flexible forms of energy. By understanding the advantages of current energy sources and the history of past transitions, it can help us understand how to move toward low-carbon energy sources. With a greater understanding of the climate challenge, we are making huge strides in developing the technology we need to move toward a low-carbon future. Still, understanding how we got here and why the modern world was built on fossil fuels is crucial to understanding where we go from here.
Bio-based energy system Prior to the technological revolution, solar energy met all our needs. This balance between human energy use and sunlight sounds like a utopia, but as the human population grew and
became more urban, the biobased energy system brought problems. This is when fossil fuels opened new doors and options. First coal, then oil and natural gas allowed rapid growth in industrial processes, agriculture, and transportation. The world today is unrecognizable from that of the early 19th century before fossil fuels came into wide use. Along with this, human health and welfare have improved immensely, and the global population has increased from 1 billion in 1800 to almost 8 billion today. The fossil fuel energy system is the lifeblood of the modern economy. Fossil fuels powered the industrial revolution, pulled millions out of poverty, and shaped the modern world.
Greatest challenge to humanity While fossil fuels helped us advance our technologies and society, the world slowly understood the huge disadvantages it comes with. Currently, we understand the devastating effects of Co2 has had on Earth. As a result of the release of these gases, along with the massive deforestation, burning fossil fuels is warming our planet faster than anything we have seen in the geological record. One of the greatest challenges facing humanity today is slowing this warming before it changes our world beyond recognition.
With eight billion of us present on the planet, the impact of Co2 is being clearly witnessed. But going back to the old ways and relying on biomass for our energy needs is clearly not a solution. But, we still have to find a solution to get back to reliance on real-time solar flows and perhaps nuclear energy to meet our needs. While there are a lot more of us now, compared to a century earlier, we are also a part of a vastly larger and more integrated global economy, and using much more energy. But we also have technologies today that are much more efficient than photosynthesis at transforming solar flows to useful energy.
Alternatively, wind turbines and solar photovoltaic (PV) cells convert solar energy flows into electricity, in a process much more efficient than burning biomass, the pre-industrial way of capturing solar energy. With rising demand, the cost for wind and solar PV have been dropping rapidly and they are now mainstream cost-effective technologies. Some existing forms of generating electricity, mainly nuclear and hydroelectricity, also don’t result in CO2 emissions. Bringing these together presents us with an opportunity to decarbonise or eliminate CO2 emissions from the electricity sector. Electricity generation is an important source of emissions, responsible for 27 percent of U.S. greenhouse gas emissions in 2018.
editor@ifinancemag.com
Business Dossier - TRANSOM Sats cargo
TRANSOM Sats, paving a new way for air cargo in Oman
It is also the exclusive cargo handler of the national carrier, Oman Air and Salam Air, where the company supports the airline’s hub
The Covid-19 pandemic was a health and a humanitarian crisis, as well as an economic shock. The pandemic brought the world to a standstill and every economic sector was impacted by the virus. While essential sectors like oil and gas, energy, real estate, and aviation saw a sharp decline, a few emerging industries became our saviors. Among the frontline workers who made it possible for us to keep some semblance of sanity during these trying times, the cargo industry barely receives the recognition it deserves. Air cargo is a critically important industry. During the crisis, it became the lifeline of society by delivering critical medical supplies and vaccines across the globe and keeping international supply chains open. Additionally, for many airlines, cargo became a vital
source of revenue when passenger flights were grounded.
Introduction to Company TRANSOM SATS’ started as a joint venture between Oman Airports and SATS from Singapore and the company aims to serve the local aviation industry and the Sultanate of Oman while strengthening Oman’s position as a cargo hub and the cargo gateway to the GCC. The company aspires to be the best cargo handling terminal in the international arena while keeping its Omani identity intact. TRANSOM SATS operates from the three dedicated freight aircraft bays, with 284 permanent staff along with the capacity to handle 350,000 tonnes of cargo annually. It also boasts a warehouse with an area of 23,000 square meters.
The company provides cargo services to more than 34 world-leading airlines flying to and from the airport and it is also the service partner for the national carrier, Oman Air where the company supports the airline’s hub operations at its head office in Muscat. In order to keep up with the fast-paced and changing demands, TRANSOM SATS stepped up its transformation, made some tough calls in order to be more efficient and financially sustainable.
The Company operates from its state of the art brand new facility since 2018, and this has benefitted its customers and users of the facility. TRANSOM SATS‘ customized self-service kiosk and electronic signature delivery pads are just some of the features that set it apart from its competitors, making it one of the best cargo terminal operators in the region.
The critical role of TRANSOM SATS TRANSOM SATS cargo is one of the most efficient cargo terminal operators at Muscat International Airport. Its capabilities were put to the test during the pandemic crisis. The company made sure that food supplies didn’t stop due to airport closure during the pandemic. The PPE kits were also delivered almost immediately as the supplies came through from the aircraft.
The company also ensured the timely processing and handling of the vaccines so that they reached the Ministry of Health in the desired condition and in the quickest possible time. Additionally, the company helped manage the supply of food as we coordinated with the various government ministries and the national carrier Oman Air, to ensure an adequate supply of eggs, vegetables and meat from India, Africa and Europe to the Sultanate.
Transformation through digitalization for a more secure future S.T. Tan, CEO of TRANSOM SATS said, “We had our digitalisation plans on hand, but the pandemic forced us to quicken the
Business Dossier - TRANSOM Sats cargo
pace of transformation. As a result, we introduced many digital initiatives the past year as our response against the virus, as well as continuing our efforts to be more efficient and productive with the help of technology. We have also obtained the IATA CEIV certification in Pharma and Fresh, and it allows the industry to know that we have in place the right processes and facilities and equipment to service special cargo for the industry and the country. Digitalization is the way to go for the air freight industry.”
Two of the key innovations are the SelfService Kiosk and the mobile app.
Self Service Kiosk (SSK)
Implementation of SSK made the whole documentation process transparent and the customers were empowered to take control of their shipments. Being available at various locations of the building, and on a 24/7 basis, users can process their documents easily and efficiently. The SSK promotes social distancing as human interactions were not necessary, thus saving on manpower cost and stationery cost.
Key Features: 1. Convenience for all customers including walk-in customers 2. Easy to operate – Perform transactions with minimal/no data entry 3. Pay charges in SSK using multiple payment modes – credit card, Pre-
Deposit (PD a/c) and Credit. 4. Generate Pick Orders for Inspection/
Delivery 5. Customers can log in using a username and password or signed-in using a unique
QR code triggered by the customer.
Benefits of SSK are:
1. Convenience: eliminate waiting time at the counter. With SSK, the customer can complete transactions of 30+ shipments in less than 1 minute. 2. Ease of access to information: all data including shipment status are available. This gave a clear view of the charges and status of the shipments. 3. Lower costs: Reduction in manpower and
associated costs. 4. Paperless environment- Usage of paper was drastically reduced where the invoices and pick orders are sent to their email address electronically.
Mobile Application
The mobile app allows users to view and transact the operations through their mobile phone, thus providing convenience as well as the freedom to operate as and when they need.
Benefits of mobile Application are:
1. Speed-up cargo clearance: real-time alerts and information on the documents/ cargo awaiting clearance 2. Reduce waiting time: eliminate waiting time at the counter by processing transactions on the phone and performing transactions anytime & anywhere. 3. Normal transaction for a single shipment at the counter- 15mins 4. Transaction via mobile app for 50 shipments –10 seconds. 5. Lower costs: Reduction of cost, especially manpower and stationary. The road ahead The company’s performances are being measured through key performance indicators (KPIs) and the information are being shared with the public. This is the company’s service promise to its customers and users of its services. The key to customer satisfaction is to keep its service promise to its customers through meeting its KPIs.
Moving forward, the company will primarily focus on building a sustainable environment. In order to remain relevant in the market and be successful, sustainability is important for the company’s security, survival, and a better future.
TRANSOM SATS plans on growing a sustainable business by remaining financially strong and investing in technology and training to deliver its best services to its stakeholders and customers. TRANSOM SATS will also offer tailored-made services for niche markets to meet the unique needs of its customers. In all, the Company works to fulfil its role to serve the industry and the Sultanate of Oman.
INDUSTRY FEATURE TELECOM BRAZIL TELECOM 5G BRAZIL ECONOMIC DRIVER
5G Could Become the Next Big Economic Driver in Brazil
MOUMITA BASU
For a commoner, the meaning of 5G would be to increase the speed of data sent from one party to another. By 2021, we all know that everything is on the internet, right from buying groceries to completing an educational degree. The advent of 5G also touches upon the transformation of Industry 3.0 to 4.0 and AI, Blockchain and IoT in most economies. Industry 4.0 is transforming the way businesses function and 5G could be the next significant factor determining the success of developing countries. Speaking about developing countries and the 5G network, Brazil opened up a 5G tender with a view of $9 billion investment. One of the agendas in pumping $9 billion in Brazil was to accelerate the development of agriculture, businesses, and industries to compete with the developed nations.
The result of agriculture and industries also diverts our minds to a less-discussed aspect of 5G being an economic growth driver than just an internet speed enhancer. PriceWaterCooperhouse predicts that by 2030, 5G would add $330 billion to the global gross domestic product and $15 billion to the manufacturing sector.
Why will 5G Be the Next Big Economic Driver?
Infrastructure plays an essential role in an economy to uplift the gross domestic product
INDUSTRY FEATURE TELECOM BRAZIL TELECOM 5G BRAZIL ECONOMIC DRIVER
(GDP), and the introduction to Industry 4.0 means the use of digitisation in every industry possible. A white paper published by Nokia claims that in Latin America, there is only one broadband service for five families, making it difficult for them to reach out for new sources. The 5G network spectrum will thus play a crucial role in supporting the deep-tech services for digitisation to work efficiently in the face of the scarcity of broadband services. 5G spectrum will improve the telecom sector by a colossal margin and will be helpful in the overall infrastructural development of the country. Infrastructure includes development in logistics, transportation, network connections, public services, etc. By economic law, with the rise in infrastructure, there would be more jobs and thus rising gross domestic product in the global market. A $50 billion infrastructure investment in Brazil is the right step toward developing livelihoods and disposable income. A significant challenge in this segment would be 5G spectrum deployment at the right time at the right place.
In Brazil, 5G would be more focused on the mining and agriculture sector. 5G would bring more digitalisation in the primary industry of the economy like the agriculture and manufacturing sector. It would help to be an integrated ecosystem between the technology partners and agribusinesses. Industry leaders understand the disadvantages of operating without technology and the internet in today’s competitive world. Industry 4.0 focuses on the use of 5G-powered smart farming and agriculture practices. The 5G-powered farm includes machine-to-machine data transferring, proper rainwater and crop harvesting, livestock tracking and
management, adequate water irrigation and drone sprayers giving real-time data to the farmers or companies.
Countries like Brazil are primarily based on agriculture, and thus, having precision agriculture practices is necessary to increase productivity. 5G in the industrial sector enhances the use of machine learning and data monitoring. Gone are the days when employees collected data and analyzed it. Today, AI machines and IoT have taken over these roles. Due to intense competition and a shorter product life cycle, deep-tech is necessary for the manufacturing sector. High-end technologies are entirely dependent on high bandwidth internet and network connection. In Brazil, industry leaders are adopting foreign manufacturing techniques like cellular IoT, augmented reality and virtual reality. Brazil has been a supplier of automobiles, manufacturing 2 million vehicles per year. Automotive being the core manufacturing sector of Brazil, the companies are trying to adopt the 5G spectrum for efficiency and effectiveness to extend the market share.
It is believed that 5G will offer 10 Gbps speed for businesses to transfer and simulate data in real-time quickly. The introduction of 5G will benefit the manufacturing sector in various ways. It integrates more machines to gather a single stream of data, followed by companies using 5G networks for advanced predictive maintenance. It can establish a better assembly line at the production unit and efficiently manage resources. All these practices will lead to better production and reflect on the growth of the country’s economy.
The telecom industry of Brazil could see a change in paradigm after setting up 5G spectrum on a pan-country basis. Stretching out the use of 5G to the secondary sector would solve problems from the roots. For example, retailers and wholesalers should be given 5G cards by the telecom providers in Brazil
FEATURE
IOB APPLICATION
for better connectivity. Brazil is the 9th largest economy and a contender for being the largest economy in the world. Implementing 5G in the country means more job creation, faster payment methods, less margin of error, digitalization of all government activities, including tax payments and customs payments.
One of the backbones of any country is the logistics and supply chain industry. Logistics acts as a bridge between the supplier and the customer. Introducing 5G in transportation and logistics would increase the process by 5 times. We all are aware of the data and paperwork required for each shipment. The 5G spectrum will ensure that all the operations are transparent and with no delay in lead times.
Brazil's tertiary and service sector contributes 65 percent to the total GDP. The 5G telecom network in health, financial, retail sales, e-commerce would lift the economy. 5G in the health sector means an advanced tool for the management and doctors to make apt decisions at the right time, tracking patients’ movement inside the facility, identifying hotspots when there’s an outbreak, etc. Speaking about 5G in the financial sector boils down to better monetary analysis, better financial decisions, improved cash management techniques, faster and better transfer of financial data, and better investments.
Last but not least, 5G telecom networking will play a massive role in transforming the e-commerce industry. Since 2010, we have seen a rise in last-mile delivery and e-commerce platforms like Amazon. Hyper data mining is possible due to 5G technology, allowing companies and governments to understand consumer behavior better. The companies can sit on a heap of data and analyze it within seconds. Brazil is a country with a majority workingage population; 5G telecom networking would mean better service for the younger generation, more spending, and a rise in the country’s GDP. The open 5G telecom network development will create a competitive and secure ecosystem in Brazil, helping them be in the ambitious game of globalization.
Implementation of 5G telecom network in Brazil
In a developing democratic country, the superiors and democrats vest most of the power, leaving the commoners with old/scarce resources. This approach shouldn’t be the case while implementing Brazil's 5G network spectrum. $9 billion is a considerable investment for any developing nation, and that investment shouldn’t be debt in the future. 5G is expected to be available in Brazil by July 2022, making these nine months crucial for proper planning and implementation of 5G spectrum deployment.
Deploying 5G to more than 200 million active mobile connections will
INDUSTRY FEATURE TELECOM BRAZIL TELECOM 5G BRAZIL ECONOMIC DRIVER
be an enormous task for the Brazilian Government. The main job for the government would be to assign the 5G contract to the right company carefully. According to an interview with the superintendent of Anatel, telecommunication and technologies are directly related to the country’s success because they move the most diverse sectors of the economy.
Rolling Out the 5G Telecom Network in Government Offices
Government offices and providers are the locus point for all the citizens. The government carries out most of the public services, and implementing the 5G spectrum in these services would improve the overall living index of the country. For example, in South Korea, the government has set up 5G telecom network dongles that are less costlier than broadband for visitors to use whenever necessary. When measuring the growth of an economy, we have to consider factors like the happiness index, living standard index, and security index. With the introduction of 5G, all of the mentioned factors could see a positive marginal change.
Along with government ownership, the private players should also get the 5G spectrum allotment depending on the auction basis. For example, there is enormous competition between Airtel, Reliance, and Vodafone Idea to win India’s 5G telecom spectrum bid. The private players have a hierarchy that is beneficial for developing the system, resulting in the economy’s growth. Privatization will also enable huge companies like Petronas in Brazil to collect data and store them faster, increase communication speed, rely less on other networks, and make better use of Internet of Things technology like
Deploying 5G to more than 200 million
active mobile connections will be an enormous task for the Brazilian Government. The main job for the government would be to assign the 5G contract to the right company carefully
RFID chips and Navigators.
One of the significant challenges for Brazil would be to eradicate the difference between urban and rural society concerning the arrival of 5G. Thus, the responsibility falls on the private players to enter the local markets with 5G technology in Brazil. Due to globalization, privacy is being affected on a large scale. Recently, we have seen many legal cases concerning data breaches and cyber security. With the advent of 5G, companies and individuals could develop better software systems requiring high bandwidth.
The introduction of 5G in Brazil will improve its status at the global level. But it could still encounter a few issues. Firstly it would be the involvement of the US and Huawei in Brazil concerning the 5G spectrum, followed by the announcement of the 5G network in only developed parts of the cities. Such bias development could be a hindrance for development. The next issue would be disagreements concerning the auction notice between the technical areas of the federal audit court. Last but not least, placement of antennas all over Brazil. Industry 4.0 started in Germany using Drones, AI-powered machines, blockchain technology, and the Internet of Things. Due to globalization, Industry 4.0 is spreading like fire, and we can already see the effects in Brazil with the introduction of data-driven technology. The major industries of Brazil are iron and steel production, automobile assembly, petroleum processing, chemicals production, and cement making. The leaders of these companies should make an effort to implement 5G as much as possible and reduce the reliance on 4G and slower broadband services.
What lies ahead
All the technology and software in Industry 4.0 will require high-speed internet, and thus 5G will play an essential role in deciding the future of Brazil’s economy. Implementing the 5G telecom network in Brazil would be a tough challenge for the government, especially when determining the providers and handling the barriers within a democratic society. But with a $9 billion investment of 5G telecom spectrum, the government and businesses can surely increase job opportunities for Brazilians. The government could focus on improving the standard of living for the citizens and visitors, thus attracting more tourists and increasing the tourism revenue. Being a primarily agrarian country, using 5G in agricultural practices will surely enhance the entire pipeline of the secondary and tertiary markets. The 5G implementation would be like a domino effect, improving from the primary to the tertiary sector. Yet, an addition to this chain would be wholly integrating the data collected and information shared.
editor@ifinancemag.com
Providing a safe and secure trading platform for QSE-listed assets
Subah Al-Kuwari, Marketing / Sales Support Officer | CBFS,
Commercial Bank Finance Services (CBFS) is one of the top three licensed brokerage houses in Qatar, regulated by the Qatar Financial Markets Authority (QFMA). Established in 2011, CBFS is a wholly-owned subsidiary of Commercial Bank with paid-up capital of QAR 700 million. Our business mission is to become a “Brokerage House of Choice” for our domestic and international clients by offering them first to market and best in class products and services leveraging digital technology to help them meet their financial goals.
CBFS provides customers with secure platforms to trade on Qatar Stock Exchange-listed stocks, bonds and Treasury bills. Customers can trade directly through our numerous channels during the trading hours i.e. online and mobile trading applications from anywhere during market trading hours. Clients can also call directly at our dealing room phone lines to place their trades. CBFS
also provides periodic local and global market economy and company research for clients to help them make informed investment decisions.
International Finance Magazine spoke to
Subah Al-Kuwari, Marketing / Sales Support
Officer | CBFS, where he discussed how CBFS provides the best customer service, how Qatar has become one of the most attractive markets globally, the impact of Covid on the business and the long-term plan of the company.
CBFS long term strategy remains centred around clients and we continue to invest in our product and service offerings that are relevant and provide them with best in class experience at every client touchpoint. Covid-19 has fundamentally shifted the way we interact with our clients with more and more financial transactions executed through mobile, online and other self-serve channels. Our goal is to enable clients to execute 100 percent of their transactions from anywhere using our best in class self serve platforms.
Almost half of our trade transactions now are coming from mobile and online channels which are up almost 10-12 times over 2019. Covid-19 has reaffirmed the investments we have made in technology platforms, products and people as part of our strategic plan, as it has given us a greater degree of resilience and the ability to adapt quickly to capture the changes in customer behaviours that have been accelerated by the pandemic.
As a market leader in innovation, we excel in bringing the best practices, new technology and new products that are relevant to clients' changing needs. Last year, we introduced Margin Trading Product, which is the first pure margin product in the country that allows clients the flexibility to take advantage of market opportunities, at the same time offering flexibility for clients to hold long term positions for potential capital appreciation and earning attractive dividend yields. Another marketleading innovation was to offer clients a fully digitised onboarding experience that reduced account opening time from an average of 5-6 days to within one hour and led to substantial enhancement in client experience and delight. Several other new products are in the pipeline for next year including Liquidity Provisioning, Market Making, Investment Advisory etc.
Making trading attractive for the younger generations
We aim to expand our services to the younger domestic client base by offering the best in class technologydriven products and services. We are tailoring special packages for this promising but under-served segment. By doing so, CBFS will become the first brokerage house in Qatar to take this step forward towards engaging the youth of this country in financial services offerings. This year we launched our “Award Winning” Trading Mobile Application which will help equip the young audience with the tools necessary to achieve a bright, successful financial education with simple & easy navigation tools and the latest market research.
During the peak of the pandemic, when the whole country was under lockdown, we at CBFS were resilient and none of our services was affected due to a robust Business Continuity Framework that we had put in place.
All our efforts and focus is geared towards creating a market-leading franchise that offers the best brokerage services for our domestic and international clients. In the end, industry profitability level will be supported by the growing retail share; increase in margin funding interest income, and distribution of financial products despite the pricing pressure and contracting yields. Entities with established information technology (IT) infrastructure, enhanced product suites, strong balance and controls will fare better driving economies of scale and ROI while delivering top of the line experience to clients.
