June 2023

June

Leading Change Leading Change

Leadership is…

We warmly (a nod to summer) welcome you to the June 2023 issue of MEA Finance Magazine. Once again we present our usual diverse array of news, articles and coverage of the regional banking and financial scene, with the general theme in much of this issue around and about leadership. Not the kind of leadership summed up in jargonised motivational one-line quotes often seen on LinkedIn profile pages or on framed posters adorning the walls of the meeting room, but that based on taking new business directions, by markets performing well in challenging times and by achievement, success and recognition in your sector.

The first of such examples can be read in this month’s cover story, from page 36. Featuring Hisham Hammoud, CEO of Aafaq Islamic Finance, he discusses leading change at the bank through digitisation, their plans for expansion and enhancing customer experience, “At Aafaq, our goal extends beyond merely meeting customer expectations; we strive to amaze customers at every touchpoint.”

The theme is clear too in our coverage of the regional Equity Capital Markets, from page 22. We learn that the region is performing well against the current global backdrop and is set to lead the way for some time to come, “The region remains underinvested to an extent and valuations are more attractive today, so the interest from global investors is only increasing,” says Citi’s Rudy Saadi.

In this issue we bring you coverage of our MEA Finance Banking Technology Summit, starting at page 46. The 2023 iteration of this industry leading and powerfully attended event,

again saw the region’s banking, finance and technology industry leaders debating the latest, and forthcoming developments in banking and finance technology and how our lives will adapt to what is coming.

As always, the summit is followed by a celebration of the leadership and achievements secured by the people and businesses leading us into newer and better financial services, in the 2023 MEA Finance Banking Technology Awards. From page 61, read about the successes, the winners and the awards that were presented at this year’s gala occasion.

Kuwait is the subject of our Market Focus this month, highlighting how the nation can benefit from reenergising their reform process, and in this edition’s look at banking technology, Endava’s Nick Curran wonders why the UAE’s banks are not leading the current remittance boom.

We focus on the regional real-estate sector from page 14, where a resurgence in the sector is taking a lead role in the economy and helping market diversification efforts, and at page 18, we cover sustainable finance, where a reorientation in the financial system is needed to meet the financing requirements for transitioning to a greener economy.

Discussing how SMEs can work through uncertainty, MEA Finance partnered with Fintech Surge to host a roundtable discussion at The Capital Club in Dubai. Read, from page 40, about how the challenges they face can be mitigated, in the discussion composed of leaders working with this key market sector.

Finally, you can catchup with some of the leading highlights of the region’s banking and finance markets in our regular glance at events in our Market News at the start of the issue.

So, if you truly want or need to know what leadership is… then lead yourself through the varied pages of this issue and read about the latest important successes in our region’s banking and financial markets.

Business Prepaid Cards to be launched in Bahrain and Oman by AFS and Visa’s SME Partner Programme

Arab Financial Services (AFS) and Visa announced their SME Partner Programme to launch prepaid cards for businesses in Bahrain and Oman

As the leading digital payment solutions provider and fintech enabler in the Middle East and Africa, AFS is also a prominent merchant acquirer in Bahrain and Oman, with state-of-the-art digital payments acceptance solutions and services that have become the payments solutions of choice in both markets. AFS and Visa’s collaboration will pave the way for digitising merchant settlements through prepaid cards and launching digital credentials for AFS’s large merchant base in both countries.

Samer Soliman, Chief Executive Officer at AFS said: “The strategic partnership between AFS and Visa represents a step forward for business’

digital payments in Bahrain and Oman as well as our shared vision of digitised payments ecosystems. This will be the first B2B use case for prepaid cards, and we plan to expand this offering to other markets in the Middle East and Africa. Together, AFS and Visa can quickly bring to the market prepaid cards that are designed with security at the core and have the potential for enhancement and growth over time. I look forward to a fruitful and ever-growing collaboration that will evolve to other areas like Fintech Partnership amongst others.”

Ali Bailoun, Regional General Manager – Saudi Arabia, Bahrain and Oman at Visa, said: “Through this partnership, AFS would be enabling their merchant

community with Visa prepaid credentials in both Bahrain and Oman, which is in line with our mission of digitising the merchant ecosystem. We look forward to deepening our partnership with AFS and expanding our collaboration with them across digital acceptance, Fintech enablement and other areas.”

Regulated by The Central Bank of Bahrain, and majority-owned by Bank ABC, AFS boasts numerous ground-breaking end-to-end digital payment services and solutions. These span debit, credit and Islamic card processing, merchant acquiring, fintech and a suite of state-ofthe-art value-added services. Providing the highest quality payments solutions that are trusted by businesses, AFS has offices and data centres in Bahrain, Egypt, Oman and the UAE. Its dedication to innovation has positioned AFS as a driving market force delivering a rich portfolio of payment solutions including popular digital mobile wallets, marketleading merchant acquiri ng services, Bahrain’s leading digital payroll solution, global contact centres and more.

FAB hosts UAE investment summit for Chinese companies in Middle East

China has become the Middle East’s largest trading partner with exports to the UAE in 2022 valued at USD 64 billion and UAE exports to China worth USD 22.8 billion. China has also become the UAE’s largest non-oil trading partner, reflecting the deep strategic partnership between both countries.

Forming part of a UAE visit organised by the Sino-International Entrepreneurs Federation, discussions at the summit focused on expanding existing economic partnerships by leveraging the UAE’s role as a business and finance hub. Topics of interest included capital raising by Chinese entities in the UAE, local debt and equity markets, debt and equity in the GCC and Egypt, as well as promoting the UAE as an attractive hub for international businesses.

Martin Tricaud, Group Head of Investment Banking at FAB, said: “There is enormous potential to expand the important and growing role of Chinese investment, knowledge, and capability in the UAE economy. The increasing importance of Abu Dhabi as a regional and global business hub, along with the maturity of its debt and capital markets, can provide a platform for Chinese

businesses seeking to accelerate their international expansion, and to finance future growth. As the UAE’s leading bank, FAB is deeply connected within bilateral China-UAE economic relations, including through our portfolio of trade finance and global transaction banking services. We are excited by the opportunity to evolve these relationships and bring greater mutual value for China, the UAE, the region and globally, by supporting Chinese entities that wish to access the UAE’s full strategic and investment possibilities.”

Sara Al Binali, Group Head of Corporate and Commercial Banking and Acting Group Head of International Banking at FAB, said: “The UAE is well known as a

centralised logistics hub for the Middle East, North Africa, the Horn of Africa and South Asia, and is by far the most connected country for Chinese companies trading in the region. The UAE is also an appealing location for Chinese expatriates to live, making it a favourable destination for Chinese companies to set up regional headquarters, where employees and their families can live in a tolerant, cosmopolitan and stable country. Already, the UAE has by far the largest Chinese community in the Middle East, servicing contracts across multiple regions and countries. The UAE will continue to grow its position as an international location of choice for Chinese partners, with our strategic location at the crossroads between Eastern and Western markets, business-friendly environment, and compelling lifestyle offering for global employees.”

Delegates at the China-Arab Entrepreneurs’ Summit came from a diverse range of industries, including banking, finance, and payments.

As the UAE’s largest and most global bank, FAB has a strong record of enabling China-UAE trade links. In 2022, FAB became the first UAE bank to open a fully licensed branch in Shanghai, China. Being a full-service branch, FAB in Shanghai offers wholesale banking services to corporate clients and financial institutions in China and the Asia-Pacific region.

Clarence Singam-Zhou, Head of International Banking at FAB, said: “With representation in twenty countries, FAB can offer Chinese clients unrivalled connectivity into GCC and MENA markets. Through the local representation offered by our Shanghai branch, FAB is well placed not only to open new markets to entrepreneurs with global ambitions, but also to help unlock sources of capital and finance needed to drive their growth.”

First Abu Dhabi Bank has highlighted the UAE’s potential as an investment gateway for Chinese companies, hosting more than 60 Chinese entrepreneurs, executives and government officials for a China-Arab Entrepreneurs’ Summit at the Conrad Abu Dhabi Etihad Towers hotel on Friday, 19 May

Martin Tricaud, Group Head of Investment Banking at FAB

Standard Chartered partners with DIFC to advance treasury excellence across the region

pleased to have Standard Chartered, join us as the exclusive partner of the DIFC Treasury Leadership Forum to address how businesses can build robust treasury infrastructures. Showcasing the benefits of setting up regional treasury divisions in DIFC, the forum will also provide corporates with strategies on how to centralise, manage and consolidate regional resources, offering a competitive advantage by reducing operating costs.”

Hosted at The Atrium, Gate District, DIFC, on the 31 st of May, themed ‘A deep dive into the future of treasury centres’, the DIFC Treasury Leadership Forum will showcase the latest trends in treasury solutions designed to streamline financial operations, optimise liquidity management and enhance risk management strategies.

Speakers and panellists include:

Standard Chartered announced its exclusive partnership of the DIFC Treasury Leadership Forum, marking a new milestone in the collaboration between Standard Chartered and Dubai International Financial Centre (DIFC), the leading global financial centre in the Middle East, Africa, and South Asia (MEASA) region.

Organised by DIFC, the forum will bring together senior treasurers from leading banks, multinationals and services providers to focus on how to optimise treasury operations for growth and the key trends shaping treasury across different sectors.

Christopher Parsons, Senior Executive Officer, Standard Chartered at DIFC said, “We are delighted to partner with DIFC to host the DIFC Treasury Leadership Forum, a dynamic platform that brings together thought leaders to share insights, exchange ideas and collaborate to shape the future of treasury management. This partnership demonstrates the strong synergies between Standard Chartered and DIFC and is a testament to our long-term commitment to optimising growth and creating a better future for the industry.”

Alya Al Zarouni, Chief Operating Officer, DIFC Authority said, “We are

Alya Al Zarouni, Chief Operating Officer, DIFC Authority; Ankur Kanwar, Head of Cash Management (ASEAN), and Global Head of Structured Solutions, Standard Chartered; Christopher Parsons, Senior Executive Officer, Standard Chartered; Irwin Medford, Director, Treasury Advisory, PwC Middle East; Motasim Hasan Iqbal, Head Transaction Banking Sales, Africa Middle East, Standard Chartered; Ricky Kaura Head, Transaction Banking, Asia Pacific, Africa & Middle East, Standard Chartered; Ruta Jukneviciute, Executive Director, Structured Solutions, Standard Chartered; Shashi Kumar Goyal, CFO, Reliance International; Syed Khurrum Zaeem, Head, Transaction Banking, Africa & Middle East, Standard Chartered. The event will be moderated by Viplav Rathore, Managing Director, Head of Cash Products, AME, Standard Chartered.

Standard Chartered is exclusive partner of the DIFC Treasury Leadership Forum 31 May

Innovative financing solutions attract firms to the UAE amid global capital crunch

Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank (EDB), stressed the indispensable role of a robust financial sector in supporting the manufacturing industry. He said: “A proper manufacturing sector cannot thrive without a strong financial sector backing it.” Al Naqbi also noted that development banks play a key role by offering tailored solutions and supporting sectors that may carry higher risk compared to commercial banks.

The panel session also heard from Hana Al Rostamani, Group CEO, First Abu Dhabi Bank (FAB), who said: “Innovation is integral for the development of economic growth and partnerships with financial institutions are very important to all of this.”

Khalil Al Mansoori, Acting Director General of Abu Dhabi Exports Office (ADEX), noted: “By ensuring access to financing, the financial sector is supporting the manufacturers in scaling up their operations, improving product quality, and fostering innovation.”

Speaking at the ‘Competitive Financing as a Key Enabler’ panel on the final day of the Make it in the Emirates Forum, Raja Al Mazrouei, CEO of Etihad Credit Insurance (ECI), highlighted the crucial role of innovative financing solutions in driving manufacturing growth in the UAE and attracting outside players.

Al Mazrouei stated: “Everybody sees this as an opportunity to bring their businesses here. Accessing capital can be challenging, but fortunately the government has established a substantial pool of subsidies, financing, and guarantees that are available for all entities looking to enter the market.”

While Mohamed Al Marzooqi, CEO of HSBC Bank Middle East, stressed the importance of early engagement with financial institutions and highlighted HSBC’s partnership approach: “We consider ourselves as equity contributors. Your success is our success, and your failure is our failure.”

The Make it in the Emirates Forum takes place from 31 May to 1 June at the Abu Dhabi Energy Centre under the theme ‘Investment. Sustainability. Growth.’ It is being hosted jointly by MoIAT, the Abu Dhabi Department of Economic Development and ADNOC.

At the Make it in the Emirates Forum, the CEOs of major national banks have underscored the importance of the UAE government’s efforts in providing subsidies, financing and guarantees to facilitate market access in the UAE amid rising global challenges to capital access

Cloud acceleration = Business acceleration

For banks that advance their cloud journey, the checkered flag awaits.

Banks today are missing scale and speed in cloud adoption - our research indicates that the full value of cloud transformation is only realized upon migrating at least 60% of your bank’s workload to cloud. Yet most banks are far from that milestone, and they lack a clear roadmap to get there.

Infosys Finacle has made huge investments and created multiple proven use cases in cloud technology. Access our latest point-of-view 'Banking on Cloud: the next lap' for a detailed roadmap of how banks can accelerate their cloud adoption journey with agility and decisiveness.

High Rise Performance

The GCC real estate sector is enjoying a resurgence of activity and will play a major role in the region’s recovery from the slowing global economy while supporting the broader diversification efforts

Globally, the real estate sector was one of the worst affected sectors during the 2009 global economic slowdown and events of the past three years have led to a further strain on the industry.

However, the GCC is bucking the global trend, moving beyond what the real estate sector perceives as cyclical headwinds, rising interest rates, declining gross domestic product (GDP) and sinking deal flows while taking a long-term approach to real estate assets.

The Gulf region’s real estate market has become even more attractive for developers and investors interested in having safe returns for their funds, with Dubai ranking in the upper echelon of the global luxury residential market.

The sale of a coveted plot of land on a luxury island in Dubai for $34 million (AED 125 million) in April, according to Knight Frank, the real estate firm that brokered the off-market deal, set a record in a market that continues to benefit from an influx of wealthy foreign investors.

“With the continued growth of institutional and private capital in real estate from the Middle East, we expect the influence of outbound capital from the GCC region to continue to expand, in particular in the coming years as a result of rising allocations to real estate and buying opportunities with market volatility,” said JLL.

The GCC real estate market’s fortunes are closely connected to other important non-oil sectors such as construction,

retail and hospitality. The industry is poised to play a major role in the Gulf region’s recovery from the slowing global economy while supporting the broader diversification efforts in the region.

Bolstered by strong demand

Gulf Arab states’ strong recovery from the pandemic continued at an accelerated pace in 2022, with the year seeing a resurgence in travel, hospitality and real estate demand.

British real estate services firm Savills said the encouraging performance of the real estate sector comes against the backdrop of global economic uncertainties, the prime of which have been inflation, rising interest rates, and therefore, stalling economic growth.

The world is being confronted by a broad-based and sharper-than-expected slowdown with inflation higher than seen in decades. With the ongoing global banking crisis, the International Monetary Fund (IMF) downgraded its forecasts for the global economy in April citing the increase in financial market volatility.

The protracted challenges posed by the current economic conditions are impacting investor sentiment globally and triggering delayed decision-making in real estate. However, sentiment among some investors in the GCC is bucking the trend as the region’s relatively healthy economies have maintained confidence as well as the appetite for global investment opportunities.

“GCC economies and real estate markets, on the whole, are expected to continue to see performance levels remain relatively strong over the coming year, despite the weaker global economic backdrop,” said Taimur Khan, Head of Research – MENA at CBRE in Dubai.

The performance of the GCC’s office market is projected to remain relatively upbeat throughout 2023. Demand for office real estate remained buoyant as major companies have returned their workforce to the office.

“Office rents have recovered to prepandemic levels registering an increase of 12% at the end of 2022 over the same period last year,” said Deloitte.

Prime offices occupied by government organisations and multinational corporations will remain core assets in major cities across the UAE, Saudi Arabia, Bahrain, Oman and Egypt in 2023. This trend is projected to be followed by multilet offices in good locations across Cairo and Riyadh.

CBRE projected that the occupancy rate in Riyadh will average 99%, Bahrain’s occupier rate – which currently sits at 74% – is set to tick up and rental rates to remain stable and in Dubai, the current occupancy rate stands at 88%, up from 78.8% last year.

Office rental rates are expected to continue to increase in 2023, driven by a lack of existing supply and strong pre-leasing activity taking place in new projects which are not scheduled for delivery in the immediate future.

GCC countries have made significant progress in building the tourism and hospitality sector as part of a broader strategy to grow and diversify national economies. Dubai welcomed 4.67 million tourists in the first three months of 2023, representing a 42% increase as compared to the same period last year.

The latest data from UNWTO showed that the Middle East enjoyed the strongest recovery in tourism with the international arrivals climbing to 83% of pre-pandemic numbers in 2023. Similarly, given that 2023 will be the

first year without any pandemic-related restrictions, CBRE projected that KPIs will almost uniformly surpass 2019 levels in the GCC by year-end.

With the continuous growth in tourist numbers and a well-planned calendar of events throughout the year to cater to various segments of the market, the hospitality industry is expected to sustain its growth in the GCC. The GCC’s hotel sector recorded increasing visitation numbers, higher average daily rates (ADRs) and ultimately higher RevPARs.

The increase in consumer demand and spending has accelerated the recovery in the retail sector in both online and traditional mall formats, as industrial and logistics facilities have witnessed consistent growth since 2021 driven by e-commerce, 3PL (third-party logistics) and energy companies.

Reshaping GCC real estate

For years, real estate megaprojects have been part of GCC countries’ efforts to diversify their economies away from heavy reliance on oil revenues. “The total value of real estate projects currently planned or under construction currently stands at an estimated $1.36 trillion,” according to CBRE.

– CBRE

Saudi Arabia accounts for 64.5% of this total or $877 billion, and the UAE, which is at $293 billion, accounts for 21.6% of the total value of real estate projects in the GCC region. Bahrain, Kuwait, Oman and Qatar share 1.7%, 4.4%, 4.6% and 3.3% of the total, respectively.

GCC ECONOMIES AND REAL ESTATE MARKETS, ON THE WHOLE, ARE EXPECTED TO CONTINUE TO SEE PERFORMANCE LEVELS REMAIN RELATIVELY STRONG OVER THE COMING YEAR, DESPITE THE WEAKER GLOBAL ECONOMIC BACKDROP

– Taimur Khan, Head of Research – MENA at CBRE in Dubai

THE TOTAL VALUE OF REAL ESTATE PROJECTS CURRENTLY PLANNED OR UNDER CONSTRUCTION CURRENTLY STANDS AT AN ESTIMATED $1.36 TRILLION

The kingdom famously used megaprojects in the 1970s to transform Yanbu and Jubail into industrial port cities.

Real estate has long been a core economic sector and investment of choice in the GCC, bolstered by strong demand fundamentals from solid population and GDP growth as well as excess liquidity from oil and gas.

The region’s megaprojects take two fundamentally different forms. Some are greenfield projects set on large swaths of vacant land to create completely new communities or provide new offerings.

Kuwait’s Al Harir City, Lusail City in Qatar, the Red Sea project and NEOM in Saudi Arabia and the Riyadh City project in Abu Dhabi (formerly known as the South Shamkha and North Wathba) are some of the region’s greenfield projects. Moreover, projects such as Muharraq in Bahrain and the work currently underway in the downtowns of Jeddah and Riyadh in Saudi Arabia are focused on reviving and restoring existing assets and communities.

GCC countries are diversifying and opening their economies by developing productive sectors outside the oil and gas industry and real estate is central to regional governments’ socioeconomic transformation strategies—though hydrocarbons will continue to play a critical role in the foreseeable future.

Global commercial real estate services firm JLL, said, “A key long-term objective for many oil-producing nations in the region is to reduce their reliance on hydrocarbons through diversification, including through real estate investments.”

Saudi Arabia’s $620 billion wealth fund, once a sleepy government holding company, is central to the country’s global ambitions under Vision 2030. The Public Investment Fund is funding a host of new cities in the desert including the $500 billion futuristic NEOM City and a slew of giga projects that were unveiled over the last 12 months including Sindalah and Trojena.

Qatar, which spent an estimated $300 billion in preparation for the 2022 FIFA

ALLOCATIONS TO REAL ESTATE AND BUYING OPPORTUNITIES WITH MARKET VOLATILITY

World Cup, invested as much as $45 billion for the construction of Lusail – a mega-development north of central Doha that was still desert 13 years ago and will be home to 200,000 people post-World Cup.

Driving real estate growth

The GCC real estate is witnessing a growing demand for luxury branded residences as fashion giants such as Armani, Bulgari, Fendi and Missoni have made the transfer from the catwalk to Dubai’s beachfront offering branded flats, penthouses and villas.

According to Savills, Dubai is currently the world’s number one destination for ‘labelled living,’ with its 46 branded residences and more than 30 new residential developments in the pipeline.

The spectacular recovery in the GCC property market is being led by Dubai, as the city has registered 29,323 residential transactions as of March 2023 – the highest total ever recorded during the first quarter of the year.

Morgan Stanley projected that the rally in Dubai’s property prices will continue this year – even after a 20% jump since 2020 – due to cash buyers, yield-hunting investors and the reopening of China. The city’s luxury property market is benefitting from an influx of high-net-worth individuals (HNWIs) including wealthy Russians,

Indian billionaires, crypto millionaires and hedge fund executives.

Dubai is currently the hottest market in the world and new luxury property sales records are being registered on a monthly if not weekly basis.

Meanwhile, reforming the housing sector in Saudi Arabia and improving the access of Saudi nationals to housing that meets their needs is a key element of Vision 2030. Riyadh and Jeddah are together expected to see real estate and infrastructure development projects worth over $200 billion by the end of 2030.

The kingdom unveiled the Saudi Downtown Company in October 2022 to develop downtown areas and mixeduse destinations in 12 other secondary cities. Knight Frank said its 2022 Saudi Report showed that 84% of tenants were interested in purchasing property, but affordability challenges emerged as a key barrier between aspirations and reality.

GCC economies are among the fastest growing in the world, due to higher government revenues and increased spending as part of a broader strategy to diversify the economy and ensure sustainable growth. The structural reforms that are being introduced in the region that include foreign-ownership rules and pioneering long-term residence categories for top talent are likely to drive investments in the real estate industry.

WITH THE CONTINUED GROWTH OF INSTITUTIONAL AND PRIVATE CAPITAL IN REAL ESTATE FROM THE MIDDLE EAST, WE EXPECT THE INFLUENCE OF OUTBOUND CAPITAL FROM THE GCC REGION TO CONTINUE TO EXPAND, IN PARTICULAR IN THE COMING YEARS AS A RESULT OF RISING

Your next investment decision is just three simple steps away: our th

Step

•

The Challenge of the Times

The UAE wants the Conference of the Parties (COP28) it is hosting this year to be practical and show solidarity between the global north and south that “leaves no one behind”, Dr Sultan Al Jaber, the COP28 President-Designate said earlier in January.

Speaking at the Global Energy Forum in Abu Dhabi, Al Jaber said adaptation finance for the global south – funds to help countries adapt to climate change –should be doubled to $40 billion annually

by 2025 and urged more affordable and more accessible climate finance.

PwC, in its ESG Middle East 2023 report, highlighted that despite the region’s active participation in the green finance market, a significant funding gap still exists, with climate funding-related constraints cited as a major barrier to environmental, social, and governance (ESG) implementation.

The financial system must be reoriented to meet the huge financing demands required to transition towards

a 2050 net zero target. GCC financial institutions including First Abu Dhabi Bank (FAB), Qatar National Bank and HSBC Bank Middle East have facilitated billions of dollars in sustainable finance and adaptation-related investments.

The hosting of COP28, the climate change conference taking place in Dubai this year, after COP27 in the Egyptian town of Sharm El-Sheikh last November is expected to translate into fiscal policies to fight against climate change.

The Middle East and North Africa (MENA) region has transformed from an obstructionist negotiation bloc to a group of countries with ambitious climate goals.

The region’s leading economies made a seismic shift by unveiling a raft of measures to eliminate planet-warming emissions within their borders in these two years despite its heavy reliance on oil and gas—which accounts for 70% of Gulf Arab states’ total goods exports and government revenues.

Climate hazards, which are ranked as the top dangers in the World Economic Forum’s Global Risks Report 2022, make the MENA region vulnerable to high levels

The financial system must be reoriented to meet the huge financing demands required to transition towards a carbon-neutral economy

of desertification, loss of biodiversity, drought and water scarcity.

Towards COP28

With roughly six months left until COP28, the UAE is determined to carry the climate talks forward and deliver meaningful progress. This year’s meeting, which will be hosted at Expo City Dubai, seeks to transform and urgently accelerate climate action to meet the commitments the world has made.

“We must ensure countries have the resources and plans in place to adapt to climate impacts. And we must supercharge climate finance, making it more available, more accessible, and more affordable finance to drive delivery across every climate pillar,” Al Jaber said in a speech at the Petersberg Climate Dialogue in May.

Playing host to two consecutive COPs is a landmark achievement in the climate sphere for the Middle East—the world’s hottest, driest and most water-scarce region. The COP27 climate talks in Egypt ended with a deal to create a fund to pay developing countries for the harm caused by climate change.

The United Nations’ COP climate summit will be the most significant event hosted by the UAE this year and the meeting marks the conclusion of the first global stocktake—a comprehensive assessment of the progress made in achieving the goals of the Paris Agreement.

“We must work closely with the UAE, which will host COP28, to ensure that the first global stocktake under the Paris Agreement produces a meaningful outcome setting the stage for even greater climate ambition in the years ahead,” US climate envoy John F. Kerry said in his COP27 closing statement.

Scepticism remains among climate activists that the hosting of COP in a Middle Eastern nation that relies on oil and gas sales for a second consecutive year could stall the transition towards low-carbon economies. Kerry touted COP28 UAE saying the meeting would encourage fossil fuel economies to lead the transition to clean energy.

The UAE was the first country in the Middle East to ratify the Paris Accord and has committed to reaching net-zero emissions by the middle of the century. UAE’s President Sheikh Mohamed bin Zayed Al Nahyan declared 2023 the “Year of Sustainability” while emphasizing that effective climate action requires a shared vision and collective will.

The Gulf state has unveiled several strategic initiatives to achieve carbon neutrality by investing more than $163 billion (AED 600 billion) in renewable energy.

The country operates three nuclear power reactors that feed energy to its grid and is home to three biggest solar plants in the world—the GW Noor Abu Dhabi solar park, the Mohammed bin Rashid Al Maktoum Solar Park which will produce 5,000MW of power by 2030 and Masdar City’s 17,500MWh solar plant.

Over the past 15 years, the UAE has invested more than $50 billion in renewable energy and clean tech globally and plans to invest another $50 billion in the years ahead as part of the country’s broader strategy to burnish its green credentials. The Gulf state also reached an agreement with the US in November 2022 to invest $100 billion in clean energy projects to produce 100 GW by 2035.

Meanwhile, the UAE’s Gulf allies – Saudi Arabia, Bahrain, Kuwait, Oman and Qatar – have all bolstered their commitment to cut their greenhouse gas emissions by 2030. While GCC economies have taken

steps to establish effective regulatory frameworks related to sustainability, progress across the region has been uneven.

The International Monetary Fund called on GCC states to consider implementing fiscal reforms “geared towards economic diversification and inclusive growth while addressing intensifying vulnerabilities from climate change”.

Financing the net-zero transition

The GCC countries are accelerating their transition to a carbon-neutral economy, but the switch is expected to require investments of as much as $6 trillion a year until 2030 and delivering such funding will require a swift and comprehensive transformation of the global financial system, its structures and processes.

The Grantham Research Institute on Climate Change and the Environment said emerging markets and developing countries other than China will need to invest around $1 trillion per year by 2025 (4.1% of GDP compared with 2.2% in 2019) and around $2.4 trillion per year by 2030 (6.5% of GDP).

Combating climate change requires action from all parts of society. The GCC financial service industry has started to grasp the opportunities of the green transition with assets under management of ESG funds projected to have almost tripled since 2015.

“Sustainable finance has grown fast from almost nothing five years ago to

DESPITE THE MIDDLE EAST’S ACTIVE PARTICIPATION IN THE GREEN FINANCE MARKET, A SIGNIFICANT FUNDING GAP STILL EXISTS, AND CLIMATE FUNDING-RELATED CONSTRAINTS ARE A MAJOR BARRIER TO ENVIRONMENTAL, SOCIAL AND GOVERNANCE IMPLEMENTATION

become a major theme for banks,” said McKinsey & Co.

FAB facilitated more than $9 billion worth of sustainable projects last year as part of its target to disburse $75 billion by 2030. The Abu Dhabi lender revealed that more than half of its bond issuances in 2022 were in a ‘green’ format. It has also grown its range of sustainable accounts, loans and finance offerings to support customers to achieve their sustainability goals.

Mashreq Bank has financed sustainable and adaptation-linked investments worth $15.5 billion since January 2021. The bank also joined the World Green Building Council’s advancing net zero readiness framework as a collaborator in the MENA region to advance sustainable investing.

Abu Dhabi Islamic Bank also continues to play a crucial role in helping to deliver the region’s sustainable finance agenda having facilitated as much as $2 billion worth of sustainable projects. Most GCC banks such as Dubai Islamic Bank, Saudi National Bank, Qatar National Bank and Kuwait Financial House now have sustainable finance frameworks in place.

The frameworks allow the banks to issue green and sustainability-linked Islamic and conventional bonds to fund projects as investor demand for ESGlinked financing is surging in the GCC and wider MENA region.

Globally, financial institutions are aligning their strategies and operating models with the Paris Agreement on climate change and the UN’s 2030 agenda for sustainable development. However, optimism that the financial sector is stepping up to its responsibilities in tackling climate change has waned over the years due to a lack of transparency and mixed messages on how banks will provide the $200 trillion in financing to achieve net zero by 2050.

There is growing concern that members of the Net-Zero Banking Alliance (NZBA) are abandoning the group after the methodology set out by the UN’s

Race to Zero initiative was made more stringent last summer. NZBA counts FAB, Egypt’s Commercial International Bank, Oman’s Bank Nizwa and Bahrain’s Gulf International Bank among its members from the Middle East.

Navigating transition risks

When it comes to transition risks, banks have an even more challenging job on their hands. Financial institutions could see their earnings decline, businesses disrupted and funding costs increase due to policy action, technological changes as well as consumer and investor demands for alignment with sustainability policies.

The world’s top banks including Credit Suisse, Goldman Sachs and HSBC are increasingly in the crosshairs of wealthy investors, shareholders and climate activists over their role in funding coal, oil and gas projects—the leading causes of man-made greenhouse gas emissions.

“Transition risks materialise on the asset side of financial institutions, which could incur losses on exposure to firms with business models not built around the economics of low carbon emissions,” said the International Monetary Fund.

“Financial watchdogs including the European Central Bank are stepping up their supervisory engagement with banks on climate-related efforts and this may result in punitive measures on those institutions that fail to meet expectations,” said S&P Global.

Despite the wider economic downturn last year, sustainable investments managed to weather the storm reasonably well driven by wealthy investors’ growing demand for sustainability. Capgemini said that asset and wealth managers are increasingly integrating ESG into their primary portfolios in response to growing client demand—a trend that can be attributed to a paradigm shift in client demography.

However, the pivot toward sustainable investing has also led to greenwashing as companies and financial institutions are purporting to be environmentally conscious for marketing purposes but they are not making any notable sustainability efforts.

The scale of the problems facing humanity are too big for any organisation, sector or country to tackle alone. It is rapidly becoming clear that without adequate climate finance, it will not be possible for the world to reach net zero emissions or adapt to a changing climate – particularly for countries in the Global South.

COP27 in Sharm El-Sheikh ended with the landmark loss and damage fund and experts say that COP28 in the UAE must do more. Moving from commitment to meaningful action is more essential than ever.

WE MUST ENSURE COUNTRIES HAVE THE RESOURCES AND PLANS IN PLACE TO ADAPT TO CLIMATE IMPACTS. AND WE MUST SUPERCHARGE CLIMATE FINANCE, MAKING IT MORE AVAILABLE, MORE ACCESSIBLE, AND MORE AFFORDABLE FINANCE TO DRIVE DELIVERY ACROSS EVERY CLIMATE PILLAR

– Dr Sultan Al Jaber, the UAE’s Special Envoy for Climate Change and COP28 PresidentDesignate

The GCC’s Burgeoning Capital Markets

While global initial public offerings have slowed down, the GCC is bucking the trend, with the region’s boom estimated to continue throughout 2023

GCC economies continue to be resilient amid global uncertainty. Buoyed by higher commodity prices, robust balance sheets and a steady growth outlook, inflationary pressures and growth prospects remain well-balanced in the region.

The region has undergone critical structural reforms over the past years as governments seek to diversify their finances away from heavy reliance on hydrocarbons and attract foreign investment.

Franklin Templeton said the weighting of the Gulf region in global emerging

market indexes has steadily increased over the past five years to 7%-8% and is expected to rise more than 10% in the medium term, driven mainly by foreign ownership limit removals in Saudi Arabia and the UAE as well as expected initial public offering (IPO) inclusions.

Nearly half of listing proceeds in Europe, the Middle East and Africa in 2022 came from the GCC, as the region bucks a global downturn in IPO activity on the back of high oil prices and strong investor demand.

“IPO markets remained buoyant despite volatility in secondary market indices such as the MSCI GCC, as issuers

remained confident of their business fundamentals, communication to the market and investor appetite for their issuances,” said Kuwait asset investment firm, Kamco Invest.

The GCC IPO activity continues to defy global trends and remains a bright spot in 2023 after companies from the wealthy oil-rich region raised nearly 16% of the total proceeds from listings globally in the first quarter – continuing the momentum from a blockbuster 2022.

There are signs of growing optimism in Q2 2023, and analysts said that some degree of investor confidence appears to be returning which is being reflected in the number of companies that plan to go public in the last half of the year.

GCC investors consider shares of well-known companies, especially from the public sector, as an excellent way to diversify their savings from real estate, hugely subject to swings in demand and supply, and bank deposits that yield low returns.

The booming GCC IPO market has seen a surge in reverse roadshows for investors over the past year as top Wall Street banks including Citigroup and JPMorgan Chase have brought their fund managers into the region to meet with several companies that are considering listing in the near term.

GCC shows the way

GCC equity markets are enjoying perfect conditions as the deal flow has gone from strength to strength at a time when interest rate hikes and stickier-thanexpected inflation continue to plague global IPO activities with a total of 299 IPOs raising $21.5 billion, an 8% and 61% decrease year-over-year, respectively.

The region continues to buck the global trend after a stellar 2022, with listings remaining strong in the first quarter of 2023, and a positive outlook throughout the year. MENA markets’ 10 IPOs in Q1 2023 raised $3.4 billion, a 33% decrease in listings and a 14% drop in proceeds, respectively compared with the first quarter of 2022.

ADNOC L&S drew orders worth $125 billion for its $769 million IPO after the UAE’s ADNOC Group raised the size of the stake that was being offered in its marine and logistics unit to 19% from 15% due to strong demand as investors flocked to the share sale amid a dearth in deals in other regions.

ADNOC L&S’s IPO is the latest in a string of listings that Abu Dhabi has attracted over the past 12 months as state-backed entities in the GCC region are stepping up efforts to boost domestic equity markets while supporting governments’ efforts to diversify their economies away from heavy reliance on oil revenues.

Earlier this year, ADNOC raised $2.5 billion from the listing of its gas business, ADNOC Gas, a deal that also increased in size and pulled in $124 billion in orders. The Abu Dhabi-based energy giant has been selling stakes in its units since about 2017.

“Q1 2023 proved MENA IPOs continue to go against global trends. Even though the number of IPOs in Q1 2023 was lower

than Q1 2022, the mega IPO of ADNOC Gas stood out for the region with the highest proceeds globally ($2.5 billion) for the quarter,” said Brad Watson, EY MENA Strategy and Transactions Leader.

Money exchange and remittance firm Al Ansari Financial Services is one of the first family-owned businesses to go public in the UAE after the company soared as much as 20% in its trading debut on the Dubai Financial Markets (DFM) in April. Family businesses account for about 60% of the gross domestic product in

The IPO was Oman’s largest offering since 2010 when telecom operator Nawras — now known as Ooredoo Oman — raised $475 million.

Meanwhile, Qatar Stock Exchange (QSE) is set to welcome the listing of IT services firm MEEZA, the first company in the Gulf state to use the book-building mechanism to carry out an IPO and the country’s first offering in almost three years under new regulations.

Saudi generic drugmaker Jamjoom Pharma will raise $336 million via an IPO

the Gulf and employ about 80% of the workforce, according to KPMG.

The Al Ansari family sold 750 million shares in the offering, equivalent to 10% of the company’s paid-up capital, to raise $210 million. The company’s stock is trading higher than the company’s listing price of $0.28 (AED 1.03) at $0. 33 (AED 1.22) per share as of 26 May 2023.

Oman’s Abraj Energy Services, the drilling business of state energy company OQ, received orders worth $2 billion for $244 million in its IPO in March.

in Riyadh after the company’s shares were priced at the top of a marketed range, ending a drought in listings in the kingdom this year.

“The GCC will continue to generate interest for its strong idiosyncratic businesses and family office listings from international investors, given their strong competitive positioning and established reach in the market,” KAMCO Invest said in a report.

The GCC IPO pipeline for 2023 remains strong and based on KAMCO Invest’s

GCC IPO MARKETS HAVE CONTINUED TO THRIVE ON THE BACK OF THE LARGE GOVERNMENT LISTINGS THAT ARE BEING UNDERTAKEN IN THE UAE AND SAUDI ARABIA

– Anish Ailawadi, Global Head of Investment Banking at Acuity Knowledge Partners

EVEN THOUGH THE NUMBER OF IPOS IN Q1 2023 WAS LOWER THAN Q1 2022, THE MEGA IPO OF ADNOC GAS STOOD OUT FOR THE REGION WITH THE HIGHEST PROCEEDS GLOBALLY ($2.5 BILLION) FOR THE QUARTER

– Brad Watson, EY MENA Strategy and Transactions Leader

estimates at the beginning of the year, the pipeline could range between 27 and 39 companies between announced and rumored listings.

Market momentum

The GCC’s primary equity capital markets outperformed global peers in Q1 2023, despite mixed secondary market performances across stock exchanges, as quality IPO issuers continued to achieve significant oversubscription for their issuances. The trend is expected to continue in the medium term, with governments implementing several initiatives to support private and state-owned entities on their path to IPO.

Qatar Investment Authority is setting up a $275 million (QAR 1 billion) marketmaking program as the Gulf state seeks to draw more foreign investor interest and deepen its capital markets after QSE missed out on an IPO frenzy that rocked the UAE and Saudi Arabia over the past two years.

EY projected that the outlook in the MENA region for the rest of 2023 remains positive with initiatives such as the Abu Dhabi IPO Fund expected to support private companies on their path to becoming an IPO.

Over the years, GCC stock markets have unveiled an array of initiatives including flexibility on the minimum stake size required for share sales and promising to reduce or forgo listing fees in a bid to encourage more domestic listings.

Abu Dhabi launched a $1.4 billion (AED 5 billion) IPO fund in October 2021 to incentivise private companies to list on the local exchange. The IPO fund will be reportedly overseen by the Supreme Council for Financial and Economic Affairs, managed by the Abu Dhabi Department of Economic Development and it will invest in five to ten private companies per year.

Abu Dhabi Securities Exchange also slashed its trading commissions by 50 per cent and extended trading hours by

TERM,

one hour to enhance market liquidity and attract foreign investors.

Dubai approved the establishment of a $545 million (AED 2 billion) marketmaker fund in November 2021. The city is also launched an AED 1 billion fund to encourage tech companies to list on Dubai Financial Market Governments in the GCC remain active in both listing state-owned names to exchanges and providing additional support to private and family-owned companies that are looking to execute an IPO.

Cashing in on the IPO boom

The privatisation programs in the GCC together with the rules and guidelines for equity capital markets issuance especially for IPOs are driving an increase in public offerings that is heightening competition among local and international banks for advisory mandates.

The value of global IPOs may have fallen by 61% in the first quarter of 2023, but new listings on GCC stock exchanges are having a sparkling year. “GCC IPO markets have continued to thrive on the back of the large government listings that are being undertaken in the UAE and Saudi Arabia,” Anish Ailawadi, Global Head of Investment Banking at Acuity Knowledge Partners, told S&P Global Market Intelligence.

“The oversubscription levels for the retail parts of IPOs in the region were glaring evidence of the investment appetite of investors,” said Ailawadi.

The glut of public offerings is attracting growing interest from global banking groups that have strengthened their teams in the region in a bid to take more share of the IPO boom as listings have dwindled in London, Hong Kong and New York.

Goldman Sachs Group and Citigroup hired more wealth managers and investment bankers in the UAE and Saudi Arabia. Fellow Wall Street giant JPMorgan Chase & Co. is following suit and London Stock Exchange-listed Barclays Bank is reportedly seeking a Saudi Arabian license so it can manage IPOs.

Citigroup ranks fourth after Goldman Sachs, HSBC Holdings and EFG Hermes among banks that have worked on the most listings year to date, according to data compiled by Bloomberg.

The Middle East has seen continued appetite for offerings at a time when recession concerns, high inflation and rate hikes by central banks have damped investor sentiment in the global IPO market. The MENA region remains buoyant despite the weaker global sentiment, with ADX expecting at least eight listings this year and Saudi Exchange receiving 100 listing applications in Q1 2023.

THE WEIGHTING OF THE GULF REGION IN GLOBAL EMERGING MARKET INDEXES HAS STEADILY INCREASED OVER THE PAST FIVE YEARS TO 7%-8% AND IS EXPECTED TO RISE MORE THAN 10% IN THE MEDIUM

DRIVEN MAINLY BY FOREIGN OWNERSHIP LIMIT REMOVALS IN SAUDI ARABIA AND THE UAE AS WELL AS EXPECTED INITIAL PUBLIC OFFERING INCLUSIONS

– Franklin Templeton

Well Placed Confidence

In the realm of Equity Capital Markets, the region remains a bright spot says Rudy Saadi Head of MENA Equity Capital Markets at Citi, where barring unforeseen events, growth looks to remain positive into the near future

last year, but Q1-23 remains very healthy when you take into consideration the global macro challenges, the constant increase in interest rates, the growth uncertainty globally, risk sentiment etc. Excluding 2022, the issuance we have seen in Q1-23 remains the highest Q1 since 2008. We cannot deny that 2022 was an exceptional year with c. $29bn of issuance in MENA in total, it is obviously very difficult to match that number every year, but from the conversations we have had with international investors, MENA remains a bright spot for them with an increased focused on the region.

Also, a number of issuers who were keen to IPO in H1-23 are probably assessing the optimal window to list especially if interest rates are expected to start dropping early next year – given the importance of Dividend Yield in Middle East IPOs, issuers or selling shareholders could afford to pay a lower yield and may not need to match the current bond yields being offered by GCC governments.

What proportion of the region’s 2023 ECM activity results from IPO activity?

We have seen about $5.5bn of total issuance in 2023YTD, of which approx. 87% results from IPO issuance.

What is behind MENA’s decline in proceeds from ECM activity in Q1 2023 when compared to the same period in 2022?

MENA markets remain active, especially when comparing to EMEA or the US. We have seen already six important IPOs price this year, all very well covered with significant demand from international and local investors: ADNOC Gas c. $2.5bn, ADNOC L&S c. $770m, Al Ansari c. $210m

in the UAE, Jamjoom Pharma c. $336m in KSA, Abraj Energy c. $235m in Oman. Also note First Mills IPO, c. $266m IPO in Saudi Arabia which has priced at the top end of the range. Of course, MENA markets are not immune to global macro and ongoing challenges but remain open for new issuance especially after the success seen over the past 2 years.

The ECM activity in Q1-23 is c. $3.7bn compared to c. $5bn in Q1-22. Yes, the number is lower when you compared to

Which sectors are currently the most responsible for ECM activity in the region?

The most active sectors this year are Oil & Gas and Transportation. These two sectors are skewed by the larger IPOs of ADNOC Gas c. $2.5bn and ADNOC L&S c. $770m. If you take into consideration 2022, then we have seen a good diversification into a number of sectors with the ECM activity mainly driven by Utilities, Energy,

Rudy Saadi, Head of MENA Equity Capital Markets, Citi

Finance, Transportation, Dining / Lodging, Chemicals and Electronics

How are the region’s secondary markets performing?

The overall post IPO performance remains solid in the Middle East. The Saudi Tadawul index is up about 6% YTD despite the difficult start to the year. Liquidity and volumes in Saudi Arabia have improved too compared to end of last year. The most recent listing in Saudi Arabia, Luberef with an IPO size of $1.3bn recovered well and is trading c. 36% above issue price, as well as Marafiq c. $897m IPO, up 31%.

Dubai is up about 7% YTD which is a healthy level for Dubai Capital Markets, recent IPOs also performed well, the most recent one, Al Ansari is up about 17% vs offer price, Empower 30% and SALIK 50%. DEWA which was the largest IPO in 2022 is now trading above issue price.

These are critical stats to give comfort and confidence to international and regional investors that the GCC has a functioning ECM market. While Abu Dhabi is down 7% YTD, the weakness is driven by 1 or 2 names where we see a rotation from a particular set of investors – there is absolutely nothing wrong with Abu Dhabi Capital Markets, the fundamentals remain very strong with continued interest from global investors. Recent IPOs such as ADNOC Gas, Borouge and Abu Dhabi Ports are all trading in positive territory. ADNOC L&S attracted a total of $125bn in gross demand equivalent to an oversubscription of 163x.

How do you see 2023 concluding for MENA’s equity markets?

We continue to be optimistic and positive on MENA equity markets in H2-23 assuming continuous stability with no geopolitical shocks globally or in the region that could destabilise markets.

The region has already attracted foreign inflows in record numbers last year i.e., c. $6bn in the UAE and c. $11bn in the Saudi Arabia. We will continue to see foreign inflows towards the region, with

potentially higher weights in the MSCI and FTSE ECM indices, albeit impossible to match last year’s record numbers every year.

The region remains underinvested to an extent and valuations are more attractive today, so the interest from global investors is only increasing. We are seeing more mid-caps issuance in the GCC (Al Ansari, Jamjoom, First Mils etc), more is expected this year paving the way for more diversification and opening new doors for different issuers. Once a sign

the extremely high demand from local investors, which is understandable, but we need to ensure that international investors do not lose interest in GCC offerings too.

When it comes to follow-on offerings, we need to see more activity outside IPOs in line with international markets, to help companies or selling shareholders to monetise via Accelerated Equity Offerings, Fully Marketed Offerings or Convertible / Exchangeable Bonds depending on their objectives.

that the increase interest rates is halting, we will see another big boost to Middle East equities.

What are the long-term trends for the region’s equity markets?

IPOs are great victories for local issuers and GCC exchanges – recent issuances have not only attracted international demand but helped some foreign investors in opening offices in the GCC.

The long-term trajectory is a continued issuance and diversification into new sectors, higher liquidity, issuances from private companies not necessarily linked to the government, fresh rules and guidelines to further support the ECM pipeline. However, it is critical that we look fairly at recent IPO allocations and explore ways to allocate more to international investors, especially when they do significant work prior to launch, provide clarity on valuation and ticket sizes and help issuers in de-risking IPOs. Recent allocations have been very low given

Of course, regulators and exchanges will be supportive in promoting the local markets and willing to amend specific rules to facilitate such issuances, for example allowing a primary raise in Accelerated Equity Offerings and allowing retail to participate in follow-on offerings. We should also see more “growth” companies coming to market, reflecting the new face of the UAE and KSA economies such as Retail, Services, Hospitality, Tech and more. With that in mind, we hope that we gradually move away from the focus and the addiction to Dividend Yield – hopefully, we start focusing on growth and Total Shareholder Return (TSR) when valuing growth companies.

Another enhancement we should explore in GCC IPOs is to allow international investors to act as cornerstone investors but without a lockup – we have seen genuine interest from top tier foreign accounts however they are unable to abide to 6-12 months lockup on IPOs.

THE REGION REMAINS UNDERINVESTED TO AN EXTENT AND VALUATIONS ARE MORE ATTRACTIVE TODAY, SO THE INTEREST FROM GLOBAL INVESTORS IS ONLY INCREASING

On the Right Path

this latest quarter has seen more UAE deals come to the market.

What proportion of the region’s 2023 ECM activity results from IPOs?

ECM activity in the MENA region has always been driven by IPOs given the maturity level of its equity market and related infrastructure.

What is behind MENA’s decline in proceeds from ECM activity in Q1 2023 when compared to the same period in 2022?

The MENA region has seen a very strong pick up in ECM activity in recent years, despite some softness across other global markets. Investors have therefore been spending an increased amount of time on the MENA transactions and on the ground expanding their connectivity in the region.

Whilst the $3.6bn raised in the region in Q1 2023 was down 27% versus the same period last year - 2022 being a record year for MENA issuance - it still represents the second largest Q1 proceeds in the region in the past 10 years and places MENA as one of the most active regions in EMEA, raising c. 10% of EMEA Q1 volumes.

The MENA region is especially relevant in the context of IPOs, where it accounted for c. 60% of EMEA IPOs in Q1, putting MENA as the number 1 region in terms of IPO volume raised in EMEA.

Last year’s activity in this period was mainly driven by the Saudi market while

In 2023, 97% of the ECM activity in the region has been driven by IPOs, in line with last year’s numbers.

Q1 2023 IPO volumes were mainly underpinned by the UAE, the largest IPO being ADNOC Gas raising over $2.4bn.

Since then, we have seen two important IPOs in the Middle East coming to market – Jamjoom Pharma in Saudi and ADNOC Logistics & Services in the UAE, demonstrating the strong investor confidence in the MENA’s capital market ecosystem and international appetite to gain exposure to this market.

We are also expecting a solid level of equity activity in the MENA region in the second half of this year.

Which sectors are currently the most responsible for ECM activity in the region?

While the Energy sector is very much present in the MENA eco-system and driving the equity activity in the region, representing c. 40% of issuance since 2020, we see more and more Tech and Telecom, Finance, Retail & Consumer as well as other diversified companies coming to market.

This trend around diversification mirrors the efforts made by the region to

Gokul Mani Head of CEEMEA ECM at J.P. Morgan observes the region’s markets maintaining commendable performance, continuing as an important focus for global investors and to keep attracting foreign equity flows

Gokul Mani, Head of CEEMEA ECM at J.P. Morgan

move away from an economy depending on oil & gas to a more diversified economy, and more reliant on the private sector rather than governments.

The growing shift away from oil & gas also encourages a higher participation from international funds and ESG funds to local offerings and gives more access to growth stories.

Whilst historically investors have been focused on dividend metrics to value MENA businesses, we would expect that the sector diversification of ECM issuances will help focus the buyside to a more fundamental driven way to look at valuation, which was witnessed in some high growth companies that have come to market over recent years – the likes of ACWA Power, Americana Restaurants and some parts of the ADNOC family (Drilling, L&S).

How are the region’s secondary markets performing?

Since 2021, the MENA markets have peaked – major indices were up ~50% on average (+88% for Abu Dhabi, +43% for Dubai, +31% for Saudi), and continued to show strong performance and resilience in 2022 while the rest of the world was heavily impacted by several macroeconomic challenges.

The secondary markets have been more range bound in recent months and are c. +2% YTD, nevertheless we expect further upside in the MENA financial markets by year-end. The region’s market performance is partly driven by valuation, indeed P/E multiples in the region are

amongst the highest globally (22x for Abu Dhabi, 9x for Dubai and 16x P/E for Saudi versus 20x for the US and 13x for Europe). We expect these valuation levels to be sustained and potentially further increase in the short to medium term.

How do you see 2023 concluding for MENA’s equity markets?

Looking ahead, and notwithstanding the broader headwinds being experienced in the global IPO market and the prospect of a US/European recession, we expect multiple sizeable $1bn+ IPOs to come from the MENA region during the course of 2023.

We think that the second half of the year will be active, and the pipeline to be relatively balanced across sectors and products. Indeed, we expect revived IPO activity, privately owned businesses and not just privatisations, well as some selected large follow-ons. We also expect major shareholders to continue their monetisation exercises diversifying away from traditional sectors.

More generally, we believe the region’s markets will still benefit from a positive

dynamic this year. Beyond oil, the strong macroeconomic backdrop in a rapidly diversifying economy, the demographic booster, the stable political environment, and the USD-pegged FX (defensive), will continue supporting the equity markets. The risks remain around relatively high valuations and geopolitics.

What are the long-term trends for the region’s equity

markets?

Within MENA, we expect that Saudi Arabia and UAE will continue to represent the lion’s share of the mid-term MENA ECM volumes given their profiles as the two largest and most active markets. In both markets we would expect the IPO landscapes to comprise a mixture of privatisations and privately owned businesses coming to market across a diverse range of sectors.

In addition, we would expect to see the multiple listing theme remaining relevant in select circumstances both (i) in respect of regional issuers looking to access the deep pools of capital available across multiple exchanges in the region and (ii) non regional issuers looking to tap the MENA markets to support their offerings and strategy growth within MENA.

We also expect to see the ECM market further maturing and developing across the region with the development of the follow-on market as a natural evolution in the next step of the MENA capital markets’ landscape.

We believe the MENA region will continue to be a major focus for global investors and is likely to keep attracting foreign equity inflows.

THE GROWING SHIFT AWAY FROM OIL & GAS ALSO ENCOURAGES A HIGHER PARTICIPATION FROM INTERNATIONAL FUNDS AND ESG FUNDS TO LOCAL OFFERINGS AND GIVES MORE ACCESS TO GROWTH STORIES

BEYOND OIL, THE STRONG MACROECONOMIC BACKDROP IN A RAPIDLY DIVERSIFYING ECONOMY, THE DEMOGRAPHIC BOOSTER, THE STABLE POLITICAL ENVIRONMENT, AND THE USD-PEGGED FX (DEFENSIVE), WILL CONTINUE SUPPORTING THE EQUITY MARKETS.

FOR THE WORLD, YOU HAVE ARRIVED. FOR YOU, YET ANOTHER JOURNEY BEGINS.

FOR THE WORLD, YOU HAVE ARRIVED. FOR YOU, YET ANOTHER JOURNEY BEGINS.

Banking - Privileges & Benefits team-based approach puts together investment experts to address every unique requirement of yours.

With a legacy of over 50 years, we combine the best in expertise & experience as the oldest and largest banking specialists.

With a legacy of over 50 years, we combine the best in expertise & experience as the oldest and largest banking specialists.

Private Banking - Privileges & Benefits

Private Banking - Privileges

Our team-based approach puts together wealth and investment experts to address each and every unique requirement of yours.

Our team-based approach wealth and investment each and every unique requirement

wide range of solutions ranging investment portfolios, wealth legacy planning including set up foundations. banking services

Seamless access to a wide range of solutions and a digital first ethos that leverages technology to bring you bespoke financial solutions.

Seamless access to a wide range of solutions and a digital first ethos that leverages technology to bring you bespoke financial solutions.

We offer a wide range of solutions ranging from bespoke investment portfolios, wealth preservation, legacy planning including set up of trusts and foundations.

We offer a wide range from bespoke investment preservation, legacy planning of trusts and foundations.

Exclusive Benefits

Exclusive Benefits

Preferential pricing across all our products with complementary banking services

Preferential pricing across all our products with complementary banking services

process for 10 year UAE golden visa

Dedicated desk to help and guide you through application process for 10 year UAE golden visa

Dedicated desk to help and guide you through application process for 10 year

outside UAE

Invitation only experience to exclusive premium events in and outside UAE

Invitation only experience to exclusive premium events in and outside UAE

The Digital First Approach

The Digital First Approach

foray into digital banking and get

We are the first to adopt cutting edge technology, lead the region’s foray into digital banking and get globally recognised for our game changing initiatives

We are the first to adopt cutting edge technology, lead the region’s foray into digital globally recognised for our game changing initiatives

Seamless account opening and on-boarding

Award winning proprietary investment trading platform with access to over 400 funds worldwide

Anytime, anywhere banking including transfer of money and unlimited Forex service

Seamless account opening and on-boarding

Easily access your special privileges as Private Banking Customer

Anytime, anywhere banking including transfer of money and unlimited Forex service

Award winning proprietary investment trading platform with access to over 400 funds worldwide

Easily access your special privileges as Private Banking Customer

Award investment platform over 400

Products and solutions with Unique advantages and flexibility

Tailormade Accounts and deposits

Family office Services

Mortgage and Real estate financing

In all major currencies for residents and non-residents

Financing Solutions

FOR THE WORLD, YOU HAVE ARRIVED. FOR YOU, YET ANOTHER JOURNEY BEGINS.

Dynamic financing to help you acquire, diversify and leverage a wide range of assets

MENA region's first comprehensive dedicated family office

FOR THE WORLD, YOU HAVE ARRIVED.

Specially tailored products including equity release and commercial financing for both resident and non-UAE residents

Lombard Lending

FOR YOU, YET ANOTHER JOURNEY BEGINS.

A lending solution that creates liquidity against your investment portfolio

Offshore Accounts & Wealth Services

Full Range of investment solutions

Investment Solutions

Our investment solutions help you invest with confidence, navigate uncertainty and explore potential opportunities in all market conditions

With a legacy of over 50 years, we combine the best in expertise & experience as the oldest and largest banking specialists.

Mutual Funds, Equities

FX & Commodities

With a legacy of over 50 years, we combine the best in expertise & experience as the oldest and largest banking specialists.

Structured Products

Seamless access to a wide range of solutions and a digital first ethos that leverages technology to bring you bespoke financial solutions.

Mashreq Capital Funds

Fixed Income Solutions

Exclusive Benefits

Private Banking - Privileges & Benefits

Our team-based approach puts together wealth and investment experts to address each and every unique requirement of yours.

Seamless access to a wide range of solutions and a digital first ethos that leverages technology to bring you bespoke financial solutions.

We offer a wide range of solutions ranging from bespoke investment portfolios, wealth preservation, legacy planning including set up of trusts and foundations.

Global Portfolio and Discretionary Mandates

Exclusive Benefits

Preferential pricing across all our products with complementary banking services

Comprehensive Offering

Private BankingOur team-based wealth and investment each and every unique

We offer a wide range from bespoke investment preservation, legacy of trusts and foundations.

Preferential pricing across all our products with complementary banking

Dedicated desk to help and guide you through application process for 10 year UAE golden visa

Dedicated desk to help and guide you through application process for

Private Banking

Business Banking

Invitation only experience to exclusive premium events in and outside UAE

The Digital First Approach

A team of experts to help with settling needs such as business setup, housing, education and retirement through our preferred partners

Corporate Banking

Invitation only experience to exclusive premium events in and outside

Dedicated Relationship Manager to help you with your investment, wealth & legacy planning

The Digital First Approach

End to end solutions tailored to meet the needs of your business

Fully integrated services on Investment banking, Financing, treasury & Capital Markets

We are the first to adopt cutting edge technology, lead the region’s foray into digital banking and get globally recognised for our game changing initiatives

We are the first to adopt cutting edge technology, lead the region’s foray into globally recognised for our game changing initiatives

A worldwide reach in over 12 locations to match your ambitions

Seamless account opening and on-boarding

Please scan to have us call you back

Anytime, anywhere banking including transfer of money and unlimited Forex service

Easily access your special privileges as Private Banking Customer

Seamless account opening and on-boarding

To reach out to our call centre call 800 PRIVATE (7748283) from within UAE or +971 4 424 4466 from outside UAE

Anytime, anywhere banking including transfer of money and unlimited Forex service

Award winning proprietary investment trading platform with access to over 400 funds worldwide

Easily access your special privileges as Private Banking Customer

Award over

Now is the Time for Focus

The country remains heavily reliant on oil, which accounts for around 90% of government revenue and has failed to significantly reduce its spending on energy subsidies, social benefits and a large and unproductive public sector.

The Gulf state’s economic fortunes are intertwined with the vagaries of the international oil market and the volatility in crude prices and surprise production cuts by OPEC+ could weigh on activity and macroeconomic balances.

Kuwait set June 6 as the date for its legislative elections, the third in 30 months, after the Gulf state’s parliament was dissolved by royal decree – a decision that was made “in respect of the will of the people”.

The parliament, elected in 2020, was first dissolved last year and a new parliament was elected in September. But the Constitutional Court in March annulled those results and restored the previous assembly.

The country has seen prolonged bickering between the government and the elected parliament that has

hampered fiscal reforms. According to the International Monetary Fund (IMF), “Delays in key fiscal and structural reforms could amplify the risk of procyclical fiscal policies, and hinder progress toward more economic diversification and higher competitiveness.”

Kuwait’s recovery remains in the balance in 2023 as growth is likely to moderate, reflecting slowing external demand and oil production cuts under the OPEC+ agreement. Overall real GDP is projected to increase by just 2.6% - lower than the average forecast for the region – after soaring above 8% in 2022 from 1.3% in 2021.

Going forward, Kuwait’s growth potential hinges on higher oil prices, expansionary fiscal policy, increased traction on project implementation and the ability of the executive and the legislature to work handin-hand to push through the much-needed reforms, improve institutional efficiency and stimulate the private sector.

A temporary respite

Kuwait’s economy enjoyed a strong finish to 2022, the performance, in a decade after the Gulf state posted its sharpest contraction since the Iraqi invasion of 1990, in 2020. The Gulf state, home to a projected 8.5% of the world’s oil reserves, posted a $9.8 billion (KWD 3 billion) deficit in the 2021/22 fiscal year, a decrease of more than 72% on the previous year as oil prices surged to record highs amid the war in Ukraine.

With crude oil prices closing last year near $80 per barrel after earlier

Though Kuwait’s economy was showing strength at the end of 2022, its growth is expected to moderate in this year, and momentum needs to return to reform programmes to ensure positive outcomes

skyrocketing to $100, the current crude price outlook has created an ideal environment for Kuwaiti authorities to proceed with ambitious reforms under favourable macroeconomic and financing conditions.

The World Bank said economic growth rebounded sharply in 2022, reaching 7.9% year-on-year, driven by the strong performance of the oil sector which grew by 13.3%.

Yet the relief brought about by soaring oil prices last year was short-lived as the dominant narrative in the oil market over the previous quarter has been one of expected tightening in the second half. Signs of a slowing oil sector have been evident since November 2022 and reflect OPEC+’s latest agreement on cutting production quotas.

Morgan Stanley slashed its forecast for Brent crude prices in the second

half of the year to the $75 - $85 per barrel range, saying Russian supplies remain high enough and that much of the demand boost from China’s reopening has likely already played out.

Martijn Rats, Morgan Stanley’s Global Commodity Strategist said oil prices will probably plunge towards the bottom end of that range later in 2023 when the market enters a period of seasonal softness again and OPEC’s voluntary cuts come to an end.

Kuwait’s preliminary 2023/24 draft budget (for the year ending March 31, 2024) projects revenues of $63.4 billion (KWD 19.5 billion) and expenditures of $85.8 billion (KWD 26.3 billion), up 11.7% on the current year’s estimate.

While 88% of government income for the year is set to come from oil, 80% of spending has been earmarked for public sector salaries and subsidies.

The Gulf state is forecasting income of KWD 21.23 billion in 2023/24, compared to KWD 24.75 billion estimated in the previous fiscal year, after including profit generated by government entities such as Kuwait Petroleum Corporation – not historically added to the state’s budget revenue streams. The change is expected to be a more accurate representation of the budget’s true revenue.

Non-oil income is expected to account for 19% of total projected income, compared with around 10% in previous years. The finance ministry said Kuwait is expecting a $16.4 billion (KWD 5 billion) funding shortfall after the government said its oil price outlook to $70 a barrel and increasing spending.

“Softer projected oil prices will narrow fiscal balance surpluses and raise deficit concerns in the medium term,” the World Bank cautioned in April. The 2023/24 budget must be approved by parliament.

Political impasse derails reform momentum

The squabbles that have delayed Kuwait’s fiscal reforms have left the country economically paralysed. The dissolving of the parliament by royal decree ahead of fresh polls in June has not only delayed the approval of the 2023/24 budget, but it has stalled the passing of a new debt law after the previous one expired, blocking any debt issuance since 2018.

“Political gridlock and the prospect of fresh elections after the Constitutional Court in March voided the 2022 parliament on procedural grounds will delay its approval and weigh on the previously hoped-for rebound in investment in 2023,” the National Bank of Kuwait warned in 2022/23 economic report.

Kuwait sold its first and only Eurobond –an $8 billion dual-tranche deal consisting of a $3.5 billion 2.8% 2022 note and a longer-dated $4.5bn 3.6% 2027 piece — in March 2017. The issuance received orders amounting to $20 billion.

Though the deal was welcomed by international bond investors, thanks to the country’s high sovereign credit rating, domestically it received strong criticism from different segments including political and business class over corruption and wastefulness.

Following the expiration of public debt legislation in 2017, successive parliaments have failed to pass a permanent law, despite past government efforts.

Fitch Ratings said despite a high level of uncertainty surrounding the passing of the debt law, Kuwait can meet its limited debt service obligations in coming years given the assets at its disposal, even if a debt law is not passed.

However, the difficulties in passing the law forced the government to rely on stop-gap measures, unusual for Kuwait’s rating level, to replenish the

DELAYS IN KEY FISCAL AND STRUCTURAL REFORMS COULD AMPLIFY THE RISK OF PROCYCLICAL FISCAL POLICIES, AND HINDER PROGRESS TOWARD MORE ECONOMIC DIVERSIFICATION AND HIGHER COMPETITIVENESS

liquid assets of the General Reserve Fund (GRF). “We forecast Kuwait’s sovereign net foreign asset position will average 470% of GDP in 2022/24, the highest among all Fitch-rated sovereigns and more than 10x the ‘AA’ median,” Fitch said earlier in 2023.

While the country can service its deficit from its GRF, the IMF cautioned that the fund’s readily available assets would be exhausted within two years if this trend were to continue without input from other funds.

The bulk of Kuwait’s foreign assets are held in the Future Generations Fund, managed by the Kuwait Investment Authority (KIA), which also manages the assets of the GRF – the government’s treasury account.

Kuwait needs to rise above domestic bickering to make any progress. The country’s long-term economic challenges are linked to its dependency on oil, domestic consumption as a key driver for growth and slow implementation of its diversification agenda.

Credit due

The global banking system is still wobbling despite actions by the US and Swiss authorities to deal with troubled banks on their watch. However, despite the turbulence in the global banking sector, the Gulf state’s banking system is relatively well-placed to manage the contagion risk from volatility due to limited lending activity in the US.

“With strong bank buffers and prudent oversight and proactive monitoring of financial risks by the Central Bank of

POLITICAL GRIDLOCK AND THE

AFTER THE

COURT IN MARCH VOIDED

IN 2023

Kuwait (CBK), the banking system has weathered the recent shocks well,” said the IMF.

Kuwaiti banks had “quite marginal” exposure to Silicon Valley Bank (SVB). The National Bank of Kuwait had ‘minimal’ exposure to SVB in off-balance sheet items in the form of letters of guarantee worth $4.9 million and the bank stressed that the exposure will not affect its financial position.

Kuwait Finance House’s exposure to SVB was valued at around $1.2 million and the bank said the exposure would entail no “fundamental financial effect” on the banking group’s financial status.

“Shares of banks globally and in the GCC region, especially, were affected due to fears of a contagion as the collapse of SVB was the biggest lender failure since the global financial crisis of 2008,” Kuwait-based asset management firm Kamco Invest said in a report while noting that the broader GCC banking sector is expected to experience

limited indirect impact from the global banking crisis.

Banks in Kuwait, like their peers across the GCC, recorded higher profits in 2022 on the back of improved operating conditions marked by economic recovery and CBK’s move to tighten monetary policy rates from 1.6 to 4% (seven times) since March 2022 – with the most recent hike in February 2023.

The banking sector is playing a vital role in supporting the economy by financing development projects in line with Kuwait Vision 2035 while contributing to the diversification of the economy and the growth of the nonoil sector.

Kuwait’s exchange rate continues to be pegged to an undisclosed basket of currencies. This basket is dominated by the US dollar, the currency in which the majority of Kuwaiti exports are priced and transacted. The Kuwaiti dinar is the world’s most valuable currency, and thanks to some nimble monetary policies, it is likely to remain so.

The country’s banking sector continues to be well-capitalised and liquid. Financial soundness indicators also remain strong with non-performing loans estimated to reach 1.9% of total gross loans in 2023. Kuwait needs deeper reforms if its future generations are to enjoy the same standard of living that is currently enjoyed, and the authorities cannot afford to implement these at the current leisurely pace.

WE FORECAST KUWAIT’S SOVEREIGN NET FOREIGN ASSET POSITION WILL AVERAGE 470% OF GDP IN 2022/24, THE HIGHEST AMONG ALL FITCH-RATED SOVEREIGNS AND MORE THAN 10X THE ‘AA’ MEDIAN

PROSPECT OF FRESH ELECTIONS

CONSTITUTIONAL

THE 2022 PARLIAMENT ON PROCEDURAL GROUNDS WILL DELAY ITS APPROVAL AND WEIGH ON THE PREVIOUSLY HOPED-FOR REBOUND IN INVESTMENT

– National Bank of Kuwait

Change is happening

Leading Change

Describing their ongoing digitisation, clear strategy for growth and commitment to ESG principles, Hisham Hammoud CEO, Aafaq Islamic Finance explains how they stay at the vanguard of the rapidly modernising and expanding Islamic Finance market

By nurturing an ongoing dialogue, facilitating strategic collaborations and driving advancements at the intersection of Islamic finance and technology, the industry can unleash its full potential and shape the future of Islamic finance.

The landscape is ripe for exploration and partnerships, as both IFIs and Fintechs recognise the immense value in combining their expertise. By capitalising on the expertise of Fintechs, IFIs can enhance their product offerings, streamline operations and elevate the overall customer experience. At the same time, Fintechs can tap into the deep-rooted principles of Islamic finance and leverage the vast customer base of IFIs, opening doors to new markets and growth opportunities.

To realise this vision, fostering an environment of collaboration and innovation is crucial. Regulatory bodies, industry associations and stakeholders must work together to create conducive frameworks that facilitate collaboration, encourage experimentation and ensure compliance with Sharia principles. By nurturing an ecosystem that supports IFIs and Fintechs in their joint pursuit of innovation, the Islamic finance industry can carve its own unique path in the digital era, catering to the discerning needs of its customers and redefining the boundaries of financial services.

Hisham Hammoud CEO, Aafaq Islamic Finance

Are Islamic Financial Institutions adequately served by Fintechs and Technology providers in the region?

The question of whether Islamic Financial Institutions (IFIs) are adequately served by Fintechs and Technology providers in the region evokes a nuanced exploration of the current landscape. As of 2023, the global Islamic fintech market was valued at approximately $9.6 billion, reflecting the increasing recognition of technology’s role in Islamic finance. While advancements in financial technology have undeniably made

significant strides in the conventional banking sector, the unique needs and intricacies of Islamic finance require tailored solutions.

The demand for Sharia-compliant financial services has witnessed a significant upsurge, prompting the need for collaboration between IFIs and Fintechs to create innovative solutions that adhere to Sharia principles while leveraging technological advancements. This collaboration is essential to empower the Islamic finance industry to foster financial inclusion and provide accessible, ethical and efficient financial services to its discerning customer base.

How will Aafaq Islamic Finance’s digital transformation improve the services that your customers receive?

Aafaq Islamic Finance’s ongoing digital transformation is poised to revolutionise the financial landscape, aligning seamlessly with the evolving needs and expectations of customers in the UAE. As of 2023, the UAE remains a digital frontrunner with over nine million active social media users. Recognising this digital shift, we have embraced cuttingedge technologies, such as artificial intelligence (AI), to deliver exceptional services and drive customer satisfaction to new heights.

By harnessing the power of AI algorithms, Aafaq Islamic Finance has unlocked the ability to analyse vast volumes of customer data, enabling the delivery of personalised recommendations and tailored financial solutions. This datadriven approach empowers customers to make informed decisions that align with their unique preferences and goals. In fact, in a recent survey conducted in the UAE, 72% of respondents expressed a preference for personalised financial services that cater to their specific needs.

This commitment to customercentricity is further exemplified through our digital platforms and mobile applications. These robust digital channels offer customers the flexibility and convenience of managing their finances anytime, anywhere. With self-service options at their fingertips, customers can conduct transactions, access account information and monitor their financial activities with ease. Moreover, the incorporation of AI-powered chatbots ensures real-time communication and prompt assistance, enhancing the overall customer experience.

Through its digital transformation, Aafaq Islamic Finance is not only optimising operational efficiency but also redefining the very fabric of customer interactions within the financial services realm. By embracing digital innovation, we are reshaping the financial landscape of the UAE, delivering unparalleled convenience, personalised experiences,

and seamless accessibility to its esteemed clientele.

How do you see Islamic Finance evolving in the region and the wider world over the coming decade?

The world of Islamic Finance is on the brink of a transformative journey, poised to revolutionise the global financial landscape in the coming decade. With its market value surpassing an impressive $2.88 trillion in 2023, this thriving industry is experiencing rapid expansion and garnering attention worldwide. The Middle East and North Africa region, in particular, has witnessed a remarkable presence, with Islamic banking assets reaching a staggering $1.7 trillion in the same year.

The escalating demand for ethical and Sharia-compliant financial solutions has been a driving force behind the exponential growth of Islamic Finance. As conscious consumers seek financial alternatives that align with their values, this industry has attracted a larger customer base and sparked a surge in innovative products and services. From digital banking to blockchain solutions and artificial intelligence, technology has emerged as a catalyst, propelling Islamic Finance into the digital era. These technological advancements not only enhance operational efficiency but also elevate the customer experience to unprecedented levels.

To ensure the sustained growth and stability of Islamic Finance, regulatory

frameworks have been continuously refined, fostering an environment of trust and transparency. Moreover, collaborations and partnerships among institutions within and across borders have been actively pursued, promoting knowledge sharing and cross-pollination of ideas. These initiatives bolster the industry’s resilience and position it as a key driver of economic development and financial inclusion.

Aafaq Islamic Finance won for the Best Digital Transformation in Islamic Finance at our 2023 Banking Technology Awards. What do you think was behind this success?

Aafaq Islamic Finance’s momentous achievement of winning the prestigious title for Best Digital Transformation in Islamic Finance at the esteemed 2023 MEA Finance Banking Technology Awards can be attributed to a powerful blend of factors that have propelled the institution to the forefront of innovation and success. Our unwavering commitment to embracing digital transformation as a catalyst for change within the realm of Islamic finance, coupled with the relentless dedication of its exceptional team, has been instrumental in securing this remarkable accolade.

At Aafaq, our goal extends beyond merely meeting customer expectations; we strive to amaze customers at every touchpoint. By harnessing cuttingedge technologies such as artificial intelligence, blockchain and data analytics, we have strategically revolutionised our operations, resulting in elevated customer experiences, streamlined processes, fortified security measures and ground-breaking product offerings. This prestigious recognition serves as a testament to Aafaq’s unwavering commitment to remaining at the vanguard of digital advancements in Islamic finance, while staying true to its core principles of delivering superior, Sharia-compliant financial products and services.

The Best Digital Transformation award is a testament to the extraordinary human factor behind Aafaq’s unparalleled success,

shedding light on the collective efforts of its exceptional team and their unyielding dedication to customer-centricity and relentless pursuit of excellence within the industry. Our aim is not just to meet customers’ expectations, rather we aim to wow our customers through all our touchpoints. Aafaq Islamic Finance’s triumph at the 2023 Banking Technology Awards serves as an inspiration to the entire Islamic finance community, reaffirming the significance of digital transformation in reshaping the industry and redefining the boundaries of success.

How will your digital transformation change your business at Aafaq Islamic Finance?

Embarking on an unprecedented journey of digital transformation, Aafaq Islamic Finance stands resolute in its pursuit of revolutionising the financial landscape. As of 2023, the United Arab Emirates (UAE) remains at the forefront of technological advancement, with a staggering 98.9% internet penetration rate and a mobile phone penetration rate surpassing 200%. Harnessing these trends, we are poised to capitalise on the fertile digital ground, leveraging cuttingedge technologies to propel its business into uncharted territory.

By embracing digital channels and state-of-the-art technologies, we are also poised to redefine the customer experience paradigm. The UAE’s digitalsavvy population, which constitutes over ten million active social media users, demands a seamless and personalised journey. Through the introduction of digital wallets, mobile banking applications and online investment platforms, Aafaq Islamic Finance seeks to cater to this growing appetite for convenience, empowering customers to manage their finances effortlessly.

The transformative impact of digitalisation extends far beyond the realm of customer experience. By leveraging automation, data analytics and artificial intelligence, we aim to optimise its internal operations, boosting efficiency

and reducing costs. This strategic move aligns with the UAE’s commitment to fostering a knowledge-based economy, with 45% of UAE-based organisations planning to invest significantly in artificial intelligence by 2023.

Aafaq Islamic Finance’s digital transformation is not confined within its walls; it extends outward, forging strategic alliances with fintech startups and technology providers. The UAE, with its vibrant fintech ecosystem, serves as fertile ground for collaboration and innovation. As of 2023, the UAE hosts over two hundred fintech companies, fuelling our ambition to co-create cutting-edge solutions and expand its market reach. By capitalising on the digital transformation wave sweeping the UAE, we aim to position ourselves as a pioneering force within the Islamic finance sector. As digitalisation continues to reshape the financial landscape, our commitment to enhancing customer experience, digitising product offerings, optimising operations and fostering collaboration will undoubtedly cement our position as a trailblazer, redefining the boundaries of success in the digital era.

How is Aafaq managing the increasing ESG related concerns of today’s customers?

Aafaq Islamic Finance is diligently managing the escalating Environmental,

Social and Governance (ESG) related concerns of today’s customers by aligning its practices with the robust ESG regulations and initiatives established by the UAE. As a testament to the UAE’s commitment to sustainability, the country has introduced comprehensive ESG regulations and frameworks, making it a regional leader in sustainable finance.

We recognise the importance of these regulations and have embedded them into our operations. The institution has implemented rigorous environmental and social risk assessment processes, ensuring compliance with UAE ESG guidelines. By systematically evaluating and mitigating ESG risks, Aafaq upholds its commitment to responsible business practices and contributes to the overall sustainability agenda of the UAE.

Furthermore, we actively engage with stakeholders to understand their specific ESG concerns and expectations. Through regular dialogues, customer surveys and feedback mechanisms, Aafaq stays attuned to the evolving needs and preferences of its customers. This customer-centric approach enables us to tailor its products and services to meet the ESG demands of its clientele, fostering sustainable financial solutions that align with the UAE’s ESG regulations.

Our dedication to managing ESG concerns extends to its product offerings. The institution has developed a diverse

portfolio of sustainable financial products that adhere to the UAE’s ESG regulations. These offerings encompass green financing options, social impact investments and Sharia-compliant funds that promote sustainable development, social welfare and ethical principles. By providing these innovative solutions, Aafaq empowers customers to invest in alignment with their ESG values while contributing to the UAE’s sustainability objectives.

Additionally, Aafaq actively contributes to the advancement of ESG awareness and education within the UAE. The institution participates in industry forums, conferences and initiatives focused on sustainable finance, sharing best practices and fostering collaboration. By promoting knowledge exchange and thought leadership, we play a vital role in driving the adoption of ESG principles across the financial sector in the UAE.

What are your key ESG priorities at this time?

One of our key ESG priorities is environmental sustainability. We are dedicated to minimising our ecological footprint and promoting environmentally friendly practices throughout our operations. This includes implementing energy-efficient measures, reducing waste generation and exploring renewable energy sources. By prioritising environmental sustainability, we aim to contribute to the UAE’s ambitious sustainability goals and preserve our planet for future generations.

Social responsibility is another essential focus area for us. We prioritise initiatives that foster social inclusion, empower local communities and enhance societal well-being. Through various social impact programs, we actively support education, healthcare and entrepreneurship, promoting economic growth and social development. We believe that by investing in people and communities, we can drive positive change and create a more equitable society.

Governance excellence is fundamental to our operations. We prioritise transparent and accountable practices, maintaining the highest standards of corporate governance. By adhering to regulatory requirements and promoting ethical behaviour, we ensure that our stakeholders’ trust and confidence in us are upheld. Our commitment to governance excellence extends to promoting diversity and inclusion, both within our organisation and in the wider business community.

In addition to these key priorities, we actively engage with our stakeholders to understand their specific ESG concerns and expectations. This ongoing dialogue allows us to continuously refine our ESG strategies and initiatives, ensuring that they remain relevant and impactful.

By addressing these key ESG priorities, we aim to create long-term value for our stakeholders while contributing to the sustainable development of the UAE. Our commitment to environmental sustainability, social responsibility and governance excellence reflects our dedication to being a responsible corporate citizen and a catalyst for positive change in the financial industry.

At Aafaq Islamic Finance, we understand that ESG considerations are not just good for business, but essential for a sustainable future. We will continue

to prioritise these key ESG pillars, leveraging our expertise, resources and partnerships to make a meaningful difference in the lives of our stakeholders and the communities we serve.

What are your future plans for Aafaq Islamic Finance?

We strive to continue expanding our business scope and develop products to meet the needs of customers in accordance with Islamic principles. The company aims to increase its presence in the country by opening new branches and establishing strategic partnerships with financial institutions in the UAE market and Gulf countries. Moreover, the company is committed to recruiting and developing local talent to enhance its competitive capabilities and achieve sustainable success. Additionally, Aafaq Islamic Finance is intensifying its efforts to implement digital transformation and leverage modern technologies such as artificial intelligence and data analytics to improve its operations and deliver better services to its customers. The company invests in advanced technologies and collaborates with technology partners to enhance its technical capabilities and performance.

In addition, our digital transformation not only propels us into the forefront of technological advancements but also aligns with the UAE’s unwavering commitment to sustainability. By embracing digitalisation, we contribute to the UAE’s vision of a sustainable future, marked by economic diversification, environmental stewardship and social progress. Our digital solutions have resulted in significant environmental benefits, with a reduction of paper usage a decrease in carbon emissions. By incorporating sustainability principles into our core operations, we actively support the UAE’s ambitious goal of achieving 50% renewable energy by 2050. Together, we pave the way for a more sustainable and inclusive financial landscape, where innovation and sustainability go hand in hand, fostering a brighter future for generations to come.

How SMEs Navigate Through Times of Uncertainty

Part of the series of exclusive roundtables led by Fintech Surge in partnership with MEA Finance, the Capital Club Dubai hosted a discussion on the 16th of May this year, focusing on SMEs - finding the best route to funding, managing cost of capital, operational risk and adopting new technologies.

Shaker Zainal, Chief Business Officer, Emirates Development Bank (EDB), Belal Jassoma, Head of Business Development, DMCC, Brian Byagaba, Head of Tech and Data Governance, ADGM, George Hojeige, Group CEO, Virtugroup, Oscar Wendel, Senior Manager, DWTC

With an estimated 557,000 Small and Medium Enterprises (SMEs) in the UAE at the end of 2022, the sector is faced with significant challenges as it navigates increasingly turbulent times. “As always, markets are hard to predict, and right now more than ever. We often know that we do not know, and that is dangerous,” said Oscar Wendel, Senior Manager, DWTC, who moderated the panel discussion entitled ‘Navigating SMEs Through Times of Uncertainty’.

Wendel said in his opening remarks that an overarching trend, due to the ongoing disruption in global markets, is that the funding route for SMEs is changing. This is due to factors like venture capital (VC) funding drying up, combined with rising interest rates and inflation, while traditional banks are being challenged by neobanks and alternative funding models. “What is the best route to changing the funding model for SMEs? And how can SMEs best take advantage of any changes to lower their cost of capital and operation risk?” Wendel posed to the prominent panel.

The main challenges facing SMEs in the UAE are ease of banking, financial literacy and the financing gap, said Shaker Zainal, Chief Business Officer, Emirates Development Bank (EBD), a financial engine for economic development and industrial advancement in the UAE. Zainal revealed that EBD has partnered with fintech company YAP to launch a business banking application with zero fees attached to it that is already available for SMEs and startups. “We open an account within 48 hours. It is only in dirhams, but there is no minimum balance. It is totally free and designed to enable SMEs and help them set up a business in the UAE. The app also integrates a digital lending feature, allowing eligible SMEs to apply for loans of up to AED5 million and get a reply in five days.”

Looking at financial literacy, Zainal said many SMEs lack basic bookkeeping

skills. “Banks are a little bit complicated. If you want to find out about loans, processes and approvals, we offer a two-day course every three months that is both in-person and online.” Held in conjunction with the Emirates Institute of Finance (EIF), the aim is to plug the knowledge gap for SMEs and micro businesses in particular.

George Hojeige, Group CEO, Virtugroup, concurred that there is an “important nuance” between SMEs and micro businesses. “Banks are

In keeping with these developments, Hojeige added that Virtugroup has transformed from setting up companies to being a corporate services provider. “There is a myth that with a trade license and a bank account, you can start doing business. You need many other elements to become functional.” Virtugroup now provides its services to about 6,500 SMEs and micro businesses as its main clients. “We offer accounting, legal services, tax registration, VAT filing. It is because we have realised that the

profit organisations, and this area is not where their profit comes from. That is understandable. However, the SME segment is a huge part of the economy. We have always been the defenders or the voice of these SMEs and micro businesses, and aggregating all the solutions that are being offered. The aim is to increase the service level and provide a turnkey solution to entrepreneurs, such as a tech platform where you can access everything you need,” said Hojeige.

sector does not have access to that many resources.”

Funding and incubation are important priorities for Dubai Multi Commodities Centre (DMCC), added Belal Jassoma, Head of Business Development. DMCC provides VCs with a curated deal flow for SMEs that have been thoroughly vetted and checked. “There are a lot of post onboarding, monitoring, reporting and inspection requirements that serve to give VCs and investors the necessary

SMES NEED TO BE ABLE TO COMPILE CLEAN CREDIT PROFILES THAT HAVE BEEN ORIGINALLY SOURCED

level of confidence and trust when evaluating these sorts of companies,” said Jassoma.

Jassoma continued to highlight the importance of conducting thorough due diligence and not just trusting social media. It is important not to show desperation with investors as they may take advantage and try to cut you a bad deal, and also not to let them waste your time, because at the end of the day, time is money and opportunity cost is there.”

The panel discussed the challenge of addressing the “information asymmetry” that this level of due diligence requires. Building a profile is not immediately straightforward and requires a comprehensive overview of any SME prior to lending. The aim is to provide a bridge between SMEs, lenders and equity investors.

SMEs need to be able to compile clean credit profiles that have been originally sourced. In addition, these can be augmented with management accounts for the last quarter, projections for the next six months, and even uploaded invoices to present a complete picture. In order to assist SMEs further with nonfinancial issues such as access to legal services or auditing, an ecosystem of tried-and-tested service providers can be populated.

Another factor is the element of the unknown, as SMEs cannot really prepare for what they do not know is coming. Here the UAE is establishing the core infrastructure needed to support SMEs. Another consideration is potential growth. Even at a modest growth rate of 10% a year in the total number, SMEs definitely need to look beyond the UAE’s borders.

Questions raised by the panel were, what happens to the market when one country catches a cold? Do you continue to operate? If the UAE has a challenge, what does that mean for your operation? Naturally, they have to look outside. The analogy was used of the UAE being a garden and anyone setting up a business as planting a seed. That seed needs

nurturing and critical elements such as a drip line in the dry season when interest rates change, for example, were highlighted by the panel.

Commenting on opportunities in a downturn, Jassoma said, “Whenever there is an economic downturn, people tend to move from markets that are not performing too well, to markets that are performing better, such as Dubai. It opens up opportunities to access the talent pool and hire people, look at acquiring services, establishing partnerships, or vertical integration to complement your business. Obviously, you need to have the cash or capital to

The evolution in the dialogue between regulatory agencies, and how much it has improved, has been noticeable. The aim is to put policies and frameworks in place to foster innovation in all jurisdictions. The sector must also have a cohesive voice because the voices of individual SMEs and micro businesses tend to get drowned out, it was pointed out.

Technology has a key role to play in giving the sector a unified voice, said Hojeige. “We need new technology; we need a new view on things. We need a new strategy because artificial intelligence (AI) has developed into a game changer.” He revealed that Virtugroup

support that, but downturns can be an opportunity to look to expand and take a bigger market share.”

The panel pointed out that regulatory bodies are increasingly engaging in discussions as to how best to service the SME and micro business sector.

is developing an online platform called Swift to develop business plans and financial projections for SMEs and micro businesses. “AI means that all this can now be done within minutes, which is something that used to take days, if not weeks and months before.”

THE EVOLUTION IN THE DIALOGUE BETWEEN REGULATORY AGENCIES, AND HOW MUCH IT HAS IMPROVED, HAS BEEN NOTICEABLE

Deals and Transactions

Dispute Resolution

Regulatory Compliance

Managing investments in developing markets is not smooth sailing

AMERELLER has been piloting clients in the Middle East through uncharted waters for twenty-five years.

Whether it’s negotiating with sovereigns, litigating in court, or managing complex regulatory matters, AMERELLER has done it all.

When business charts a course to the Middle East - THINK AMERELLER

A full service international law firm built for the Middle East

Baghdad . Basra . Berlin . Cairo . Dubai . Erbil . Munich . RasAlKhaimah . Tripoli

Keeping up with Payments

Highlighting key areas for banks to address, Nick Curran Head of Endava Middle East and North Africa asks why should banks be excluded from the UAE’s remittance boom when they can lead it?

family reasons believed the recipients had a subsistence-level dependency on the funds.

Never one to rest on its laurels when an emerging trend is afoot, the nation is responding. It is preparing to launch a central bank digital currency (CBDC) as part of its Financial Infrastructure Transformation (FIT) Program. And in March, the UAE Central Bank teamed up with the Reserve Bank of India (RBI) to explore the interoperability of CBDCs, specifically for the purposes of streamlining remittances and trade.

Cross-border payments is big business, and yet the nation’s banks have an unusually small stake in this market. In 2020, US$43 billion crossed the UAE’s borders enroute to families and nest eggs all around the world, making the Gulf country the world’s second largest remittance source after the US. Some 80% of this transaction value went through exchange houses such as Al Ansari (which is going through its IPO at the time of writing). Wire services have also traditionally helped to fill market space, which is now becoming increasingly crowded by FinTechs looking to get in on the action.

Meanwhile, consumers are expecting more and more from remittance services, such as instantaneous transfer of funds, low costs, guaranteed security and process transparency. Despite the crowded nature of the market, consumers will flock to whichever brand gives them the best experience — something we know to be true of most industries in the digital age. To capitalise on the opportunity presented by cross border payments, banks must address four areas.

The United Arab Emirates’ large expat community prospers daily from a stable economy and a thriving business ecosystem. One of its financial traditions therefore is cross-border payments — the remittances sent in a continuous flow back to countries of origin, mostly

for family support. A poll by Western Union found that 76% of people in the UAE intended to remit more money this year, with 60% citing family support as the main reason for their transactions. And a Mastercard study from last year showed that 51% of those who made online cross-border payments in 2022 for

1. Get on board the open-banking train

Open banking allows the interoperability necessary to add the value consumers are seeking. ISO 20022 is an open global standard for financial information. It provides consistent, rich and structured data that can be used for every conceivable financial transaction.

Nick Curran, Head of Endava Middle East and North Africa

When applied to cross-border payments, ISO 20022 ensures enriched data that can streamline the international payments process, greatly reducing the DSO (days sales outstanding) accounting metric. Disparate payments systems and interfaces no longer pose the challenges they used to, and the costs of the transaction are (as consumers now demand) lower than traditional wire and ACH (automated clearing house) services. Additionally, enhanced reconciliation leads to faster payments settlement and minimised ambiguity in metadata.

2. Pay attention to risk and liquidity

It is an unfortunate and unavoidable fact that because each transaction has an associated risk, if volume grows, risk grows. Consumers expect to be free of fraud, and they expect those in charge of their payments to ensure this security. The origination, execution, settlement and governance of international money movement is more complex than in domestic business. The too-big-to-fail global financial institutions at the heart of this global ecosystem require the strictest risk-mitigation policies. Even banks that do not operate outside their domestic jurisdictions are subject to regulations on liquidity. International banks are required to hold liquid assets and collateral in different currencies across multiple countries and legal domains. To ensure coverage of defaults, banks engaging in cross-

border transactions must manage their liquidity shrewdly. They must also have a strategy for credit risk in case a situation arises that prevents settlement of a payment request within an agreed time period, which is a trickier proposition in countries that lack local government enforcement for settlement of international transactions.

Even the time lag on transactions represents a source of risk. Time-zone synchronisation is problematic enough between two nations but if one of them is spread across different time

on global liquidity and are vital for business customers.

4. Delve into APIs and connectivity

Through real-time FX rates that are made available to treasurers, APIs (application programming interfaces) can be easily integrated into the treasury infrastructure. Treasurers can manage currency exposure and risks, improve reconciliation with continuous availability of FX rates, and lock rates to get the best conversion deal between client and base currencies.

zones with different banking hours, the problem is exacerbated. Delays or failures in payments can require manual intervention and may lead to a decline in service.

3. Consider virtual accounts

Differing from traditional accounts in that they do not actually store funds, virtual accounts are one alternative to deposit accounts when conducting transactions between different countries with different banks. Treasuries can use virtual accounts to manage cashflow across different currencies via a centralised account structure. This gives companies the flexibility to transfer balances held in one account and currency to another account in a different currency. It also allows the funding of local payments using a centralised account. Virtual payments also provide a better view

With better connectivity to global settlement systems, new technologies like SWIFT gpi (global payments innovation) provide greater visibility and transparency on payment transactions. From the ability to see pre-transaction FX rates to the provision of real-time payment status tracking, APIs provide better experiences for customers.

Future stars

The winners in the cross-border payments market need not necessarily be the current leaders. Banks have the economies and experience needed to move in on this lucrative arena. By introducing innovative, API-driven products that account for the factors shown here and address the pain points and demands of customers, banks can defend their dominant positions even as agile FinTechs continue to take market share.

THE WINNERS IN THE CROSS-BORDER PAYMENTS MARKET NEED NOT NECESSARILY BE THE CURRENT LEADERS

DESPITE THE CROWDED NATURE OF THE MARKET, CONSUMERS WILL FLOCK TO WHICHEVER BRAND GIVES THEM THE BEST EXPERIENCE — SOMETHING WE KNOW TO BE TRUE OF MOST INDUSTRIES IN THE DIGITAL AGE

A New World of Banking Taking Shape

The advancement in financial technologies is offering banks the potential to boost revenues at lower costs by engaging and serving customers in radically new ways using new business models

The global banking sector is at a turning point. Faced with changing consumer expectations, emerging technologies and new business models, financial institutions will need to start putting strategies in place now to help them prepare for an artificial intelligencepowered bank of the future.

Banks in the Middle East have the substantial advantage to gain market share in the digital space. The region’s financial service sector is buzzing with talk and activity on digitalisation strategy

and banks are leveraging innovative technologies to advance services and products while reassessing industry boundaries to create new sources of value.

The new sources of value creation may exist in several areas, including embedded finance, tokenised assets, financial technology, digital identity or green finance. The majority of banks in the Middle East have begun this journey, but many could fall behind.

Banking customers’ lifestyle habits are increasingly motivated and directed

by the speed and simplicity of online services – the same is true of how they want to bank.

“Customer expectations are not static and will continue to evolve with people counting on their bank to cater for them every step of the way, from mobile-first offerings and the secure handling of sensitive data to swift and seamless processes,” said EY.

Financial regulators in the MENA region are undisputedly mature when it comes to preparedness for open banking compared to other emerging markets while in wealth management and private banking divisions, digitalisation is changing the way wealth managers deliver advice and serve their high-networth individuals (HNWI) clients.

With an enhanced regulatory system and the prospect of normalised interest rates, technology will be the future battleground of differentiation for both consumers and investors.

MEA Finance hosted its Banking Technology Summit & Awards 2023 on 11 May 2023. The exclusive annual forum attracted leading bankers and technology professionals in the Middle East, who discussed the latest developments in the financial services sector while identifying emerging trends and opportunities in the region.

Jamal Saleh, Director General of UAE Banking Federation (UBF) highlighted in his keynote address that the UAE banking sector was the only one that has grown 12 times in the last 20 years and is also the only one in the MENA region to achieve customer satisfaction of more than 80%.

The UBF is working with the Central Bank of the UAE (CBUAE) on several strategic initiatives, Saleh said, adding that all the initiatives will channel back into what UAE banks are offering to customers with the aim to achieve 100% penetration of services as well as 100% financial inclusion.

Open banking and APIs

The growing demand for digital financial services and the rapid adoption of financial technology solutions is driving constant growth, enhancing customer experience and industry competitiveness.

Banks in the Middle East are exploring new avenues through which to provide

value and thrive in an ever-shifting business environment. Open banking is offering banks a window to expand their ecosystems and extend their reach while shifting the financial services sector towards hyper-relevant and platformbased distribution.

Moderated by Rajesh Nagpal, Director of Financial Services at GBM, the Open Banking & APIs panel highlighted the role that is being played by financial technology (fintech) companies to give banks and financial institutions a competitive edge in this multidimensional market such as the Middle East. The discussion had the participation of Ali Imran , Chief Operating Officer, Commercial Bank of Dubai; Samer Soliman, CEO, Arab Financial Services; Srinivasan Sampath, Group CTO, First Abu Dhabi Bank; Gabrielle Inzirillo, Head of Ecosystem Development at ADGM; Pinaaz Kulkarni , Managing DirectorDigital Channels & Data Analytics at Standard Chartered Bank; Mohamed Wassim Khayata , CEO, Al Maryah Community Bank and Saud Al Dhawyani, CTO at Emirates NBD.

Nagpal said open banking started more than 20 years ago and over the past 10 years there has been a lot of activity in this space as regulators are pushing for

innovation in the fintech space to drive competitiveness in the market.

Open banking has the potential to reshape the financial services landscape and several financial centres in emerging markets, the Middle East included, are making considerable moves in this space.

“Given that the consumer data permission is going to be a norm in the market, how do financial institutions expect these developments to reshape the financial services industry – both in terms of competition to incumbents as well as opening new revenue streams?” Nagpal posed a question.

Al Dhawyani said traditionally for banks to excel, they were required to be strong at the front side, at the processing capabilities and their execution engine. “This is a vertically integrated bank, from the back processing capability and also from the front, which is a distribution channel and a layer that allows an interaction with the customer,” he said.

He said that open banking offers the capability or the possibility for banks to choose either. “For example, a financial service provider can excel at the channel or the distribution layer while aggregating and integrating with different execution engines,” added Al Dhawyani.

Sampath weighed in saying the UAE has been at the forefront of implementing the latest innovative digital capabilities and from that perspective, “such capabilities will come into the market at some point in time, such as open finance, which allows organisations, both from technology and business perspective, to be ready to adopt the technology when it is being implemented in the market.”

He underscored that ecosystems foster innovation and bring more innovative services and products to the market because open banking gives a customer a lot of choices and drives sales in terms of a lot of innovative products.

Open banking platforms allow financial services customers to securely share financial data in real-time and share account information as well as transaction history with external parties such as vendors, suppliers, business partners and other banks using Application Programming Interfaces (APIs).

Kulkarni said open banking has been around for a while, but it is an innovative trend that has now taken root, driven by the growing interest from regulators who wants to create standardised frameworks in different jurisdictions worldwide.

“Open banking is going to introduce increased competition and a lot of nonbanking players are going to enter very traditional scenarios where only legacy banks have played before, which is going to lead to increased competition and drive a need for differentiation,” he said.

Nagpal concurred with Kulkarni while highlighting that regulators are not only aiming to drive standardisation in terms of data protection and data privacy but also to foster innovation and boost competition to ensure that the consumers have more choices –probably so the consumer has access to the data points, so that they make a well-informed decision.

Imran believes that the UAE straightaway leapfrogged into the open finance framework rather than an open banking one. Drawing from the contribution from other panellists, Imran said opening banking has three layers: one is the infrastructure, which is API-related

and that banks have been exposed to for decades, second the data and the third component is the business model.

For centuries, incumbents have been sitting on tonnes of information, but they were not very successful in leveraging this data to augment their services and products. “Fintech firms, paytechs and the new challenger players in the ecosystem have taught the incumbents that they have been able to monetise that data in much more innovative and better ways,” said Imran.

Khayata opened by posing a question what is open finance and what does the regulation want to achieve? He described open finance as more competitiveness, more fair pricing to customers and more innovation that works in line with the digital strategy of the UAE.

From a payments perspective, Soliman said when he joined AFS, the company identified open finance as the biggest disruptor to the financial industry overall and the target of the company’s future investments.

Soliman said they identified two options to which they could approach open finance – account information service provider and payment initiation service provider – and the banks will have to expose data points. “These use cases

GIVEN THAT THE CONSUMER DATA PERMISSION IS GOING TO BE A NORM IN THE MARKET, HOW DO FINANCIAL INSTITUTIONS EXPECT THESE DEVELOPMENTS TO RESHAPE THE FINANCIAL SERVICES INDUSTRY – BOTH IN TERMS OF COMPETITION TO INCUMBENTS AS WELL AS OPENING NEW REVENUE STREAMS?

– Rajesh Nagpal

could be payment initiation, movement of money from one bank account to another, locally and internationally,” he said adding that when the AFS team assessed the future of payments they discovered that the shape and the form and how the payments are initiated will be transformed with open finance.

AFS invested in its own aggregator hub and integrated with the banks across multiple geographies to start building the platform that enables our customers to utilise this data pool that is governed by the regulators within different markets.

“I’m pleased to say that, today, AFS has its first use case which is a ‘payment initiation service provider’ in Bahrain. We are part of the fintech sandbox in Saudi Arabia and we are currently working with some banks in the UAE to enable customers to either share data or move payments across for different use cases,” added Soliman.

From a partner ecosystem point of view, Inzirillo said ADGM started studying open banking and how to facilitate thirdparty providers many years ago. “We began by studying what was happening in the ecosystem and when we were designing ADGM’s frameworks on how to license and authorise open banking

OPEN BANKING IS GOING TO INTRODUCE INCREASED

firms, we did a bit of market scouting and considering what had happened in other markets,” she said.

The ADGM discovered that one of the use cases that was being used in other global financial markets was alternative lending. This allows financial institutions to lend to customers that do not bank with them. With open finance, banks access customer account details and determine a person or an establishment’s creditworthiness.

Given that it is not the regulator’s mandate to decide whether technology is worthy or not, the ADGM partnered with

financial institutions to determine how they were creating payment aggregators, and how they were connecting APIs and the financial hub unveiled its third-party provider framework in 2021.

AGDM has since licensed a couple of open banking services providers including Lean Technologies. Taking a leaf out of the European and Brazilian book, Imran said the region has learnt a lot from what is happening in these two markets over the past five to seven years.

Imran said that what regional players can learn from the progression in the UK and other developed markets, is that evolution is typically when banks first try to comply with the regulations such as data security and then figure out the value-added services they can adopt to monetise customer data.

Mostafa Zaher, Vice President of IBM Data, AI and Automation, Middle East and Africa at IBM gave a presentation where he emphasised the importance of innovation and differentiation in digital banking. Zaher said that the future of the banking and financial industry is all about differentiation, innovation and the end user – the millennials.

With around 45% of millennials willing to switch banks or banking products without any concern, Zaher said hyperdigitisation over the past three years has added to the differentiation in the financial industry, allowing banks to offer banking in non-traditional ways.

COMPETITION AND A LOT OF NONBANKING PLAYERS ARE GOING TO ENTER VERY TRADITIONAL SCENARIOS WHERE ONLY LEGACY BANKS HAVE PLAYED BEFORE, WHICH IS GOING TO LEAD TO INCREASED COMPETITION AND DRIVE A NEED FOR DIFFERENTIATION

– Pinaaz Kulkarni

SPONSORS

OFFICIAL BANKING PARTNER

GOLD SPONSORS

SILVER SPONSORS

STRATEGIC TECHNOLOGY PARTNER

ASSOCIATION PARTNER

KNOWLEDGE PARTNER

BADGE SPONSOR

SUPPORTING PARTNERS

Engagement banking

The relationship between banks and their customers has transformed significantly in the recent past and for banks that strive to be dynamic and maintain a competitive edge in the market, integrating core personalisation elements across the range of touchpoints will be critical to delivering a superior experience and better outcomes.

According to McKinsey, “The reimagined engagement layer should provide the artificial intelligence (AI) bank with a deeper and more accurate understanding of each customer’s context, behaviour, needs and preferences.”

The discussion around engagement banking and how technology will build lasting bonds between banks and customers was moderated by Anna Zeitlin , Fintech Director at PwC. The panel had the participation of Finali Fernando, Managing Director, Regional Head of Products, CCO at HSBC; Anand Krishnan , Head of Technology at Emirates Investment Bank; George Hojeige, CEO of Virtugroup; Mohammed Hussein, Regional Director of Finshape; Glen Fernandes , Managing Director, Global Client Management at BNY Mellon and Jamal Al Awadhi, Chief Operations and Customer Experience Officer at Wio Bank.

Zeitlin opened the panel by asking Hojeige how technologies can build longlasting and enduring bonds between banks and customers. Hojeige said that traditional banking as we know continues to exist but the access to banking services and products has changed significantly over the years, thanks to the new innovative technologies.

“Innovative financial technologies have certainly made access to banking products and services a lot easier, a lot simpler and a lot faster for entrepreneurs and micro, small and medium enterprises (MSMEs),” he said.

Incumbents face intense pressure from new entrants in financial services including technology platforms such as

Alibaba, Stripe and Square that have raised the bar by creating engaging and compelling customer journeys built around offering instant and seamless experiences.

Bank of New York Mellon’s (BNY Mellon) Fernandes weighed in saying innovative

technologies are driving transformation in the financial service industry but “we need to take stock and pause a little bit around the fundamentals of banking.”

“Banking is built on bonds (relationship) and trust,” he said adding that BNY Mellon has been in existence for 239 years and that’s all paramount to trust. Fernandes believes that banking as a trust factor is driving investments in financial technologies as banks seek to invest in technologies that retain and enhance that trust.

“From a BNY Mellon standpoint, we provide a lot of infrastructure in the marketplace. We are the backbone of a lot of capital markets and what we see is that we are a big trust bank in custody, there is $46 trillion of assets we have in the custody,” said Fernandes.

To stay competitive, forward-leaning banks must become ‘AI first’ in vision and execution and this calls for the transformation of the full capability stack including the engagement layer, AI-powered decision-making, core technology and data infrastructure and operating model.

Asked how Wio Bank is leveraging technology to build bonds with customers, Alawadhi said Wio is the UAE’s first digital platform bank, not just the digital bank. “Wio is a ground-up built digital native

FINTECH FIRMS, PAYTECHS AND THE NEW CHALLENGER PLAYERS IN THE ECOSYSTEM HAVE TAUGHT THE INCUMBENTS THAT THEY HAVE BEEN ABLE TO MONETISE THAT DATA IN MUCH MORE INNOVATIVE AND BETTER WAYS

– Ali Imran

bank and we are using technology to solve customers’ problems, not just to build a bank, but a bank that meets customers’ demand,” said Alawadhi.

Finshape’s Hussein said technology has been quite fundamental in the growth of humanity, but I believe we need to make the distinction between how far technology can take us.

“Technology is an enabler, but a bank needs to adopt a customer-centric approach to fully get the benefits of a digital transformation,” he said adding that several banks nowadays have a myriad of platforms and technologies, but they are not able to portray the same kind of amazing customer experience.

Banks and financial institutions can meet rising customer expectations by focusing on ‘engagement banking’ to offer intelligent propositions and smart servicing that can seamlessly embed in partner ecosystems.

Emirates Investment Bank’s Krishnan said building a bond between a bank and its customers is a journey. He said the life cycle of engagement evolves around onboarding, execution and sustaining the bank-customer relationship.

From an investments banking standpoint, Krishnan said that there is a growing number of overseas customers who are investing in the Middle East. Banks require robust and innovative tools that will enable banks to establish that connection with the customer, primarily to ensure that there is transparency.

Financial institutions also require a robust technology infrastructure to ensure that customers are kept up to date on everything that’s happening in their journey of establishing the relationship with the bank, said Krishnan.

“When a bank has established a relationship with a customer and seeks to further build on that relationship, it’s a combination of the breadth of product on offer as well as the efficiency of the processes that the financial institution wants to establish that will further ensure that a customer gains trust,” he said.

The combination of digital convenience and personal touch is what sets leading banks apart. Customers’ lifestyle habits are increasingly being motivated and directed by the speed and simplicity of online services - the same applies to how they want to bank.

From a personalised experience perspective, HSBC’s Fernando said that use cases always help to bring to light the problem and the responses. “Virtual accounts make reconciliations simpler, faster and more streamlined and HSBC’s offering has been taken to the ultimate level with the launch of a nextgeneration virtual account that offers large corporates the ability to achieve efficiency in cash management,” he said.

According to Fernando, “Streamlined, cost-effective and most importantly endto-end client journeys ensures that banks solve not only problems of today, but it helps the bank to future proof its business models for the future.”

Digital proficiency involves a wide range of capabilities and for financial institutions to thrive in the new operating environment, they need to calibrate their value proposition, bearing in mind the power of simultaneously simplifying and upgrading the customer experience.

The blurred lines – Competitors, vendors & partners

Financial technology is shaking up the financial services industry in big ways. The unbundling of financial services and embedded finance has created opportunities for big technology companies to enter the banking sector. Banks and fintech startups initially sought to compete, but these days, they are thinking differently about each other. According to Standard Chartered, “The positive impact of the partnership between banks and fintech firms is supporting new business models and better ways of doing business, with far-reaching implications for clients and markets.”

The competitors, vendors and partners – the blurring line panel was moderated by Oscar Wendel , Director, DWTC & Fintech Surge and it had the participation of Maria Parpou, EVP Payment Gateway Services, Mastercard Payment Gateway Services; Jagadeshwaran K, Managing Director, Treasury & Trade Solutions, MENA at Citi, Sandeep Chouhan , Group Chief Business Transformation and Technology Officer at Network International; Cem Soydemir , Head of Payments GTM, MEA & India Sub-continent at SWIFT,

Srinivasan Sampath, Group CTO at First Abu Dhabi Bank (FAB) and Mohamed Wassim Khayata , CEO of Al Maryah Community Bank.

Wendel said in his opening remarks that it is a very exciting yet challenging time for the financial services sector today, not only because technology regulations and players are changing but the entire industry is changing with new sectors being created.

Asked about exciting new technology trends, Mastercard’s Parpou said that from the merchant perspective – whether they are e-commerce or retail merchants – it’s not payments that interest them. “But what they want is to sell their products, delight their customers and ensure that their customers have a great experience and will return and shop from them again,” she said.

Parpou highlighted that the interesting part is that payments can play an important role by augmenting the customer journey, “a delight that many e-commerce and retail merchants sometimes really forget.”

From a cross-border payments perspective, Soydemir said innovation results in much faster international transactions, in a seamless and more competitively priced way. He said over the past 10 years ago, there were only the traditional correspondent banking and money transfer operators (MTOs) mainly for banking customers, but today, the low-value payments landscape is growing very fast – fintech companies, Big-tech, banks and also MTOs are investing in it.

Soydemir said SWIFT is providing advanced cross-border payment solutions to incumbents, especially in the low-value payments segment. From March 2023, SWIFT started using the same standard language which offers data and rich transactions globally, which is ISO 20022.

Since March 2023, 15% of the world’s cross-border transactions are leveraging ISO 20022, resulting in frictionless payments. Soydemir also noted

that with SWIFT Go, transactions are reportedly completed in three minutes or less, and more than 500 banks in 120 countries have signed up to enable a fast, transparent low-value payments system as of November 2022.

On risk management, Jagadeshwaran said as a global Citi process moves around $3 trillion and the bank has a presence in almost 95 countries, hence managing risk is of paramount importance.

adding that innovation is taking place outside the main providers of financial services and products - which is what the world is calling from the fintech sector, and it is here to stay, radically changing all aspects of the life cycle of payments.

“From origination to carrying the transactions, payments providers such as Mastercard and Visa, who build the global railroads are partnering with fintech firms and other payments

Given that incumbents are partnering with fintech companies to augment their services and products, Jagadeshwaran urged fintech firms to focus on three areas to manage risks including ensuring that an entity has all licenses required to offer a product/service, fintech partners should have continuity and disaster recovery in place, especially when working with global banks such as Citi and fintechs should be 100% compliant with all regulations.

Asked about the ecosystem, Network International’s Chouhan said the financial services sector is going through the same phenomena that the pharmaceutical industry went through 30 years ago when the players in the industry realised that the pace of drug development and the investment was not sufficient to beat the new viruses.

“The financial services sector has come to realise that it cannot be the crucible of innovation,” Chouhan said,

solution providers. Processors such as Network International and incumbents are partnering with fintech companies that can help them transform the underlying processing algorithms away from messaging to tokenisation,” he said.

Asked about due diligence when partnering with fintech companies and adopting new technologies, Sampath said FAB has a structured and defined methodology on how to engage with the fintech companies.

The first thing that a bank needs to consider when partnering with a fintech is the use case that the institutions seek to address. “There are currently a lot of value-added services that incumbents need to deliver to their customer base. To provide these value-added services, banks should engage with a fintech so that you can accelerate the offering of the service to the customers,” said Sampath.

WE BEGAN BY STUDYING WHAT WAS HAPPENING IN THE ECOSYSTEM AND WHEN WE WERE DESIGNING ADGM’S FRAMEWORKS ON HOW TO LICENSE AND AUTHORISE OPEN BANKING FIRMS, WE DID A BIT OF MARKET SCOUTING AND CONSIDERING WHAT HAD HAPPENED IN OTHER MARKETS

– Gabrielle Inzirillo

Sampath said that aside from FAB’s in-house approach and methodology to engage with fintech, the bank also leverages DIFC Fintech Hive, Hub71 and ADGM RegLab – the region’s leading innovation ecosystems that conduct due diligence of fintech across the different geographies.

“We partnered with Hub71 in February to launch Hub71+ Digital Assets, a dedicated Web3 specialist ecosystem, with more than $2 billion of capital committed to funding Web3 startups and blockchain technologies from the UAE’s capital,” said Sampath.

On emerging opportunities to collaborate for new services and innovative business models, Khayata said as a digital bank, Wio is employing a twopronged approach to collaboration. On the retail side, Wio is working on a platform that would make payments smarter by bringing together all the components that users would want to segregate such as costs and rewards that could be automated by triggering a recycle of purchases.

Similarly, on the corporate banking side, the digital bank is working on making payments smarter by ensuring that payments go to the right accounting entry and performing other tasks such as calculating corporate tax income.

Payments

Payments are supporting the development of digital economies and driving innovation – all while functioning as a stable backbone for our economies. The changes in the payments space are being accelerated by the advancements in innovative technologies and evolving customer expectations that have shattered the status quo and opened the window for new players that are challenging legacy banks.

Cross-border payments

Moderated by Nitin Bhandari , SVP & Head of Payit Wallet, the Future for the Cloud in payments and data spotlighted the opportunities that the cloud brings for the realisation of useful insights from data, plus the speed and agility it brings to payments. The panel had the participation of Ellis Wang , Board of The Executive & Advisory Team, Sheikh Maktoum Private Office; Peter Hainz , Global Head of Strategic Initiative, Smartstream; Mohamed Roushdy , Founder & Fintech Advisor, Fintech Bazaar and Adam Woolford, CTO, Zand.

Bhandari opened by noting the evolution in the payments space as it is one of the most disrupted domains within the financial services industry. Bhandari

said each paradigm shift in payments has brought hundreds of millions of new people into its fold and the cloud-powered paradigm has the potential to further democratise payments and the entire financial services sector.

Roushdy said the financial services sector has been buzzing with innovation including AI, machine learning (ML), buynow, pay-later (BNPL), digital economy and Open banking – all of which generate massive and growing amounts of data.

“Cloud storage allows entities to store big data and large files, offers a costeffective and scalable alternative to storing files on on-premise hard drives or storage networks and provides elasticity,” said Roushdy.

Asked how Zand Bank is leveraging cloud-based parameters to accelerate innovation, Woolford said the bank was born in the digital banking space and the cloud enhances customer experience while allowing financial institutions to test new products quickly and quite easily.

Woolford stated that the financial service sector sees a huge potential for cloud technology to make their systems faster, nimbler and more responsive to the needs of their customers while developing tools to quickly introduce new features, products and services or detect fraud.

Smartstream’s Hainz weighed saying the payments solutions provider has worked with more than 2000 financial service providers over the past 13 years and they were all on-premise. He noted that the combination between AI and the cloud is a powerful driver of innovation that generates and stores gigantic amounts of data, respectively.

Considering that large quantities of data take time to put on-premise leveraging the cloud only requires the server. Roushdy concurred with Hainz saying, “The cloud brings ready-to-use business models that allow banks to build capabilities, innovate at speed and scale to achieve growth and deliver efficiencies.”

“The cloud is the last mile that allows financial institutions to meet customers where they are and through the Internet of Things (IoT) integration, fintech companies can provide new services and clients can pay on the go,” said Wang.

Cloud provides banks with the choice to move from a capital-intensive model to a flexible business approach that brings the operational cost down while keeping data security the top priority.

On building confidence and credibility of cloud-based solutions, Hainz said confidence in the banking sector is security. “Through the deployment of a combination of cloud and colocation environments, banks can create a more resilient and secure foundation for growth, improvements in customer experience and development of new services,” he said.

Cloud security has advanced in leaps and bounds in recent years, with leading cloud providers investing heavily in a multitude of measures such as zero-trust verification, data encryption and access controls to ensure secure connections and full visibility of the data stored in each cloud environment.

Evolving payments landscape

The Making the Best of the Changing Payments Landscape in the Middle East and Africa panel was moderated by DWTC & Fintech Surge’s Oscar Wendel and underscored that technology is the enabler of the transformation in payments.

He was joined on the stage by Viplav Rathore , Managing Director - Head of Cash Management Products for Africa & MENAP, Standard Chartered Bank; Vibhor Mundhada , CEO of Neopay, Mashreq; Mohit Aery, Regional Director, Payment Gateway Services – EEMEA at Mastercard; Alaa Al Rousan, Senior Account Director at SWIFT; Gautam Dutta , Global Head of Cash Product

Management at First Abu Dhabi Bank; Mahmoud Abuebeid , CEO of Global Software Solutions and Naresh Killa , Head of Corporate Banking and Payments Products, TCS Financial Solutions.

The sustained cash-to-noncash conversion, the ongoing growth of e-commerce and the increasing integration of payments into retail and corporate customer journeys is driving payments revenues globally. In response to a question about how Mastercard benefits from collaborations with financial institutions, Aery said the global payments firm provides multiple solutions and its customers are multi-fold.

“We work with licensed banks as our prime customers, we service telecommunications companies, we count some of the world’s biggest airlines and the growing industry of fintechs – which is a growing industry for Mastercard,” he said.

“The company also runs a startup programme that caters to budding new companies that are set up in the Middle East region while helping them to grow by leveraging the rails and the technology that we have set up,” said Aery.

The UAE is about to roll out its instant payment platform (IPP), which industry experts say will benefit people, businesses and the financial service sector. Aery said the rolling out of an IPP in UAE will create good collaborative opportunities between them.

INNOVATIVE FINANCIAL TECHNOLOGIES HAVE CERTAINLY MADE ACCESS TO BANKING PRODUCTS AND SERVICES A LOT EASIER, A LOT SIMPLER AND A LOT FASTER FOR ENTREPRENEURS AND MICRO, SMALL AND MEDIUM ENTERPRISES

– George Hojeige

Mastercard is partnering with the UAE, bringing the technology that the payments giant has introduced in other countries into the region including Saudi Arabia while offering payment infrastructure to the existing players that are already working with Mastercard.

A core advantage of instant payments is that transactions use the ISO 20022 messaging format – a new format that provides richer and high-quality data using more fields, better structure and improved flexibility to adapt to new business processes.

SWIFT’s Al Rousan said the payments ecosystem has gone through a massive disruption over the past five years as customers are clamouring for faster and more frictionless payments. To meet the growing demand for frictionless payments, SWIFT partnered with financial institutions to achieve the agenda.

“Since the start of SWIFT GPI, which was introduced in 2017 and is considered one of the biggest payment initiatives, now we can look at the whole ecosystem in terms of speed, fees and full transparency of payments as well as their flowing around the world,” said Al Rousan.

Fast forward to 2023, Al Rousan said 90% of the world’s cross-border transactions are flowing on SWIFT GPI and 90% of the transactions are handled within 24 hours.

SWIFT said the migration to ISO 20022 for cross-border payments and reporting (CBPR+) officially began in March (2023) after years of intense preparation by the global financial industry, marking the start of a coexistence period until November 2025 when both message types (MT) and ISO 20022 messages will be supported.

“ISO 20022 is one of the great foundations for banks and SWIFT to process payments much faster than before and where we used to talk about hours, we are going to talk about minutes,” added Al Rousan.

Asked about new payment trends evolving in Africa that can be applied to the Middle East, Rathore said the majority

of financial regulators are coming up with payment strategies and many of them have a 2025 target.

Rathore underscored that growth in instant payments in MENAP is here to stay. The central bank digital currency (CBDC) initiative is being implemented by several countries across the region including the UAE, Nigeria, South Africa and Ghana, he said.

and secure mechanism in the domestic payment, primarily for low-value payments,” Abuebeid said, adding that it provides instant payments 24/7 on bank transfers, on peer-to-peer, peer-tobusiness and peer-to-merchant.

From a payments services provider perspective, Neopay’s Mundhada said all banks operating in the country including Mashreq are “very well entrenched” in the whole process of going live and it is a new thing for the financial service sector but it’s a strategic initiative for the nation.

“We are working very closely with the central bank to go live on instant payments and Mashreq is one of the banks that is in the first phase and some testing is already on for our internal folks,” added Mundhada.

From a resiliency perspective on the transition to the cloud and IPP, Dutta said a lot of rigorous work has been done in terms of laying out the architecture, building the proxy layer, testing the API management, doing a scaling test, regression test and ensuring that the volumes of payments pushed through this mechanism stand future growth.

“Within the UAE and the entire Middle East, the volume of transactions is projected to reach 2.6 billion by 2027, which is about 30% growth in the volume and the systems are built up accordingly,” added Dutta.

CBDCs are digital currencies issued by central banks and their value is linked to the issuing country’s official currency.

On the lessons that can be learnt from the UAE’s implementation of an instant payment platform, Abuebeid said the Gulf state’s IPP is a path-breaking initiative that is part of the Financial Infrastructure Transformation (FIT) programme. The transformation is expected to change banking customers’ lives while leading to a better quality of life.

“The programme seeks to provide a robust infrastructure with a seamless

Killa weighed in saying transaction velocity is one of the important factors that banks need to put into consideration when banks are making the transition to instant payments including how they will strategise bringing it into their infrastructure.

On ISO 20022, Killa underscored that though it is a standard that is now widely being used, not only on the cross-border side but also on the various clearings, what we are observing as a financial solutions provider is that even those formats have started having variations.

The rich and structured data enabled by ISO 20022 is an essential element of the next generation of payments.

THE CLOUD IS THE LAST MILE THAT ALLOWS FINANCIAL INSTITUTIONS TO MEET CUSTOMERS WHERE THEY ARE AND THROUGH THE INTERNET OF THINGS (IOT) INTEGRATION, FINTECH COMPANIES CAN PROVIDE NEW SERVICES AND CLIENTS CAN PAY ON THE GO

– Ellis Wang

Digital transformation

Banks in the Middle East were already at the forefront of innovation and digital transformation well before the pandemic hit. Industry experts who attended MEA Finance see this trend continuing to dominate the banking sphere driven by changing customer needs and regulatory initiatives such as regulatory sandboxes.

Technology in Banking

Banking customers now not only expect a superior experience from retail banks, but one that is tailored to their unique needs and financial institutions can demonstrate their unique value proposition by aligning distribution models and delivering datadriven offerings.

The discussion on How Can Technology Help to Give Banks and Edge in Banking was anchored by Fintech Surge’s Oscar Wendel. The panel had the participation of Irfan Bhatti , Head of Enterprise Transformation & Delivery at Banque Saudi Fransi; Todd Schweitzer, CEO & Co-founder of Brankas; Noman Rasheed , Chief Information Officer at Dubai Islamic Bank; Zul Javaid, CEO at UAE Trade Connect; Devid Jegerson , Chief Operating Officer at Invest Bank and Abhijeet Singh Hazare, DirectorBanking & Capital Markets at Azentio.

Wendel opened the discussion by emphasising that digital transformation is now the norm and the key aspects are how banks are differentiating services, products and offerings from an efficiency perspective as well as how financial institutions work with the new ecosystem of vendors and partners.

In response to Wendel’s question on the impact of blockchain on the mainstream banking sector, Javaid said distributed ledger technology (DLT) as an underlying technology has immense potential to transform the financial services sector. However, much of the potential has been diverted towards cryptocurrency and all the effort is being diverted away from what could be fundamental applications in the banking space.

“The most important feature of blockchain or DLT technology is that it distributes the control and should consider the technology’s use cases, applications, opportunities, syndication and tokenisation,” added Javaid.

Dubai Islamic Bank’s Rasheed said the innovative technologies have lifted the gatekeeping and barriers to entry in the banking industry. “We are partners with colleagues in the financial service ecosystem and we have been experimenting with the smart trade contracts, especially in trade finance,” Rasheed said, adding that the uses cases do not end here but it is all about how technology has revolutionised banking over the past five to six years.

On digital transformation, Banque Saudi Fransi’s Bhatti said financial regulators are accelerating digital transformation in the GCC banking sector, cashless society and open banking are good examples. Saudi Central Bank introduced an ‘Open Banking Lab’ in December 2022 as part of a broader strategy to speed up the development of open banking in the country.

“Wherever a bank is in its transformation journey and whatever its key focus areas may be, I think it’s important for incumbents to focus on revitalising that core to ensure that they are adopting the cloud to implement best practices and

move away from the traditional way of doing business,” added Bhatti.

There’s big value potential in the cloud, Schweitzer said while noting that financial institutions that are guided by their needs and by the stage they have reached in their cloud journey.

“Brankas is an open banking technology firm that was founded in Southeast Asia to deliver open banking infrastructure in a region that did not have and still does not have open banking requirements,” said Schweitzer. He said this created a situation where financial institutions adopted open finance, embedded finance and banking as a service not because of a compliance exercise, but because they saw business use cases that came with the cloud.

Jegerson weighed in saying the adoption of open banking goes beyond a regulatory exercise, but the real reason behind incumbents’ accelerated adoption of open banking and open finances stems from the use cases, such as augmenting customer experience, enhancing service delivery as well as creating multiple end-user apps for multiple different customer segments.

“The real reason for the adoption of open finance is to extend, as much as we can, the business use cases that are available in the market, keep it efficient and easy for the third-party users,” he said.

On use cases, Hazare said incumbents with digital spinoffs (digital units) are offering traditional banks an opportunity to get new customers as the cost of customer acquisition for a speedboat is half of what is required by a fintechs.

Banking in the future

Moderated by Arjun Vir Singh , Partner Global Financial Services Practice for Arthur D. Little, the discussion on the emerging landscape in banking technology entitled, What is Coming and How Will Banking Technology Look at the End of the Decade?, included the participation of Amith Rajan , Executive Vice President of Wholesale Digital and Advanced Analytics for Mashreq; Giulia Finkbeiner-Bertoni, Senior Executive Officer at Sygnum Bank; Krishna Kumar Nair, Chief Operating Officer, Emirates Development Bank; Shiba Nair , Senior Manager, Product Development, National Bank of Fujairah; Sanat Rao , Chief Executive Officer, Infosys Finacle and Thomas Cherian , Chief Information Officer, Commercial Bank of Dubai.

Vir Singh opened the panel by saying the financial service sector is set to deal with more technology than it has ever done in the past. “We are witnessing the unprecedented confluence of innovative

technologies because they are all coming together and interacting whether it’s AI, the cloud and blockchain or decentralised finance (DeFi),” he said.

Asked about emerging tech-led innovations across the banking sector, Infosys Finacle’s Rao said innovative technologies are one of the big tools that financial institutions have at their disposal, but banks have to go the extra mile to stay ahead of the competition.

The real excitement around innovative technologies lies in how technology can be used to fundamentally change the business models in the banking sector. “Business models such as banking-as-aservice (BaaS) do not change daily and they certainly have a long-term impact on a financial institution’s long-term strategy and everything that goes with it,” said Rao.

Emirates Development Bank’s Kumar Nair said bank branches are traditionally points of customer interaction, but technology has done away with the need to have footfall at brick-and-mortar branches – “so if you ask me, strictly speaking, the relevance of the branch no longer exists.”

In response to a question about the role of blockchain in the banking value chain, Nair said the potential of blockchain is definitely beyond bitcoin. He said the banking sector needs to understand the potential of tokenisation.

When talking about tokenisation and NFTs, one usually thinks of the real estate sector, but a consortium of banks in the UAE are leveraging tokenisation for electronic Know Your Customer (e-KYC).

Sygnum Bank’s Finkbeiner-Bertoni said technological innovations have disrupted many industries and the banking and financial industry has been among the most disrupted or the most impacted. “DeFi is already here. It is aimed at eliminating intermediaries and barriers, which empowers players in the sector by allowing them to be more active role in their banking and finance services sector.

From an incumbent perspective, Commercial Bank of Dubai’s Cherian said the banking and financial services industry is probably the biggest user and adopter of technology. “If you talk about any of the latest innovative technologies such as the metaverse, AI, ML and blockchain, the banking sector has adopted these technologies. However, the return on investments (ROI) from the growing adoption of technology is set to be seen have to see.

Rajan said wholesale banking typically is part of banking, which is bespoke and deals with relationship management mostly, hence the field has certain inherent reasons why it will be difficult to bring advanced analytics into that space. He noted that digital transformation started with retail banking and moved to SME banking and finance and most bankers expect it to revolutionise corporate banking financial institutions soon – just like it has done with payments, risk management and fraud detection as well as AML/CTF.

Leading bankers and technology professionals who attended the MEA Finance banking technology summit agreed that the emergence of innovative technologies is offering banks a window to be more innovative and efficient in-service delivery while opening the door for new entrants such as fintechs, global retail giants and neobanks into the financial services sector.

Swift Go

Nap Estampador Group Commercial Director, MEA Finance Magazine

Celebrating Innovation in Middle East Banking Technology

My warmest congratulations to all the winners of the MEA Finance Banking Technology Awards 2023, and sincere thanks to all you who actively supported and participated in this year’s awards and summit events.

Welcome to the MEA Finance Banking Technology Awards 2023 winners highlights edition. The awards celebrate the remarkable advancements and innovation within the banking and finance sector across the Middle East region. In an era of rapid technological transformation and a globally challenging environment, the Middle East has emerged as a vibrant hub for ground-breaking financial technologies.

Recognising excellence and inspiring change, The MEA Finance Banking Technology Awards have played a pivotal role in acknowledging and celebrating the outstanding achievements and innovations within the banking and finance sector. The awards ceremony stands as a testament to the tireless efforts and exceptional achievements of industry leaders, organisations and fintech pioneers who have revolutionised the landscape of banking technology, paving the way for a more efficient and customer-centric future. These awards provide a platform for the industry’s brightest minds, visionaries and disruptors to showcase their cutting-edge solutions and market changing strategies. By recognising excellence, the awards inspire a culture of innovation and maintain the setting new benchmarks for the industry to strive towards.

The MEA Finance Banking Technology Awards, 2023 were, once again, an enormous success and we are proud to have had the opportunity to highlight and showcase so many achievements in our market over the past year.

Financial Institutions in the region readily embrace change and enthusiastically strive to stay ahead of the curve, keeping on par with, and frequently edging ahead of financial institutions around the world. They are ably partnered in this by innovative and dedicated technology companies that ensure that our banks are providing the best levels of service and agility.

At MEA Finance Magazine, we will continue to award outstanding institutions and companies that lead the industry forward.

Congratulations again on all your accomplishments; we are keen to see what you will bring the business in the coming year.

The MEA Finance Banking Technology Awards 2023 highlights the achievements of the region’s top banking and financial technology players

The winners of the MEA Finance Banking Technology Awards 2023, held at the Armani Hotel Burj Khalifa, were announced on the 11th of May in a ceremony attended by over 250 senior executives from banking and financial technology providers. These awards recognise the market building achievements of technology leaders across the banking, finance and financial technology sectors, highlighting their delivery and implementation of smart banking solutions for driving growth in the Middle East and Africa’s increasingly competitive regional markets.

Organized by MEA Finance Magazine and recognised as the pinnacle of

recognition for banking technology excellence across the region, the awards programme spotlights the genuine innovations and stand-out performance of institutions in the banking and financial technology space.

A record number of entries underwent rigorous evaluation by a panel of judges comprised of industry experts before conferring the prestigious awards to the winners. The panel selected fifty-four category winners following concentrated consideration of their research and knowledge of the market, understanding of the needs of their full range of clients and customers and an assessment of all relevant developments and achievements from the preceding year.

The fifty-four winners of the awards were presented in two groups, firstly for technology vendors, followed by banks and financial institutions.

Here follows the full list of the MEA Finance Banking Technology Awards 2023 winners:

FINANCIAL INSTITUTIONS:

1. Digital Banking Innovation of the Year - UAE - Mashreq

2. Digital Banking Innovation of the Year – KSA - Riyad Bank

3. Best Neobank - Wio Bank

4. Bes t Digital Transformation in Islamic Finance - Aafaq Islamic Finance

5. Best Data Management - Standard

24. Be st Open Banking & API Implementation - Mashreq and GBM

25. Best Retail Payments Implementation - Emirates NBD and TCS BaNCS

26. Be st Treasury Management

- First Abu Dhabi Bank

27. Best Fintech Enabled Corporate Service Provider - Virtuzone

28. Technology Leadership Award - Zul Javaid, CEO, UAE Trade Connect

29. Chief Technology Officer of the Year - Saud Al Dhawyani, Chief Technology Officer, Emirates NBD

TECHNOLOGY PROVIDERS:

1. Digital Banking Provider of the Year - Backbase

2. Islamic Digital Banking Provider of the Year - Azentio Software

3. Best RegTech Solutions Provider4most powered by Paragon

4. Bes t Core Banking Solutions Provider - Tech Mahindra

5. Bes t User Experience Solution Provider – UAE - Skiply - RAKBANK

6. Bes t User Experience Solution Provider – Bahrain - The Family Office Company B.S.C.

7. Best Risk Management Solutions

- UAE Trade Connect

8. Bes t Islamic FinTech Solutions

- DDCAP Group for ETHOS AFP

9. Best Analytics Solutions ProviderFinshape

10. Mos t Innovative Cloud Banking Services Provider - Amazon Web Services (AWS) and GBM

11. Best AI Technology Implementation - SmartStream Technologies

12. Bes t Trading Infrastructure

Provider - Premium Technology

13. Best AML/KYC Solutions ProviderNewgen Software Technologies Ltd

14. Best Open Banking & API Solutions

Provider - Ericsson and MTN

15. Best Collection Solution ProviderLoxon

16. Most Innovative Payments Solutions

Provider - Arab Financial Services (AFS)

17. Best Payments Provider Contribution to Digital Transformation - Mastercard Payment Gateway Services

18. Bes t Cross-Border Payments

Provider - Swift

19. Best Digital Platforms ProviderBackbase

20. Bes t B2B Payments Solutions

Provider - TCS BaNCS

21. Be st Composable Banking Technology Solutions ProviderInfosys Finacle

22. Bes t Wealth and Investment Technology Provider - additiv

23. Mos t Innovative Digital Wallet Deployment - Ericsson and MTN

24. Best Issuer & Acquirers Payments

Provider - netcetera

25. Bes t Payments Implementation

Provider - Global Software Solutions (GSS) Group

26. Financial Ser vices Technology Leadership Award - Nandan Mer, Group Chief Executive Officer, Network International

Digital Banking Innovation of the Year - UAE Mashreq

Mashreq Bank was the recipient of the Digital Banking Innovation of The Year – UAE award. The Digital Banking Innovation of The Year - UAE award was conferred to Mashreq in recognition of the bank’s NEOBiz Connect API.

The ‘first in the market’ innovation allows any free zone or trade license authority to submit a full NEOBiz account application from its platform, enabling a one-click SME account opening, subject to approval, for the first time in the region.

NEOBiz Connect streamlines the account opening process for SMEs as part of the bank’s commitment to supporting entrepreneurs with their banking needs. In addition to NEOBiz Connect, Mashreq provides a full suite of value-added services that enable fledgling enterprises to grow their businesses faster.

Digital Banking Innovation of the Year - Saudi Arabia

Riyad Bank walked away with the Digital Banking Innovation of the Year – Saudi Arabia award. The award was given in recognition of Riyad Bank’s unveiling of a virtual location in the metaverse as part of the bank’s several ongoing digital transformation initiatives and the first of its kind in the kingdom’s banking sector. Riyad’s digital transformation strategy includes the launch of an array of digital banking innovative services and products including BAB Digi – Liabilities, Enjaz (Money Transfer Operator), Enjaz Digi – Remittance Market Place and Retail Digi – Home Market Place.

The bank’s BAB Digi allows customers, retail, corporate and Enjaz, to open accounts digitally without the need to visit the branch, acquire or collect any physical signature or even video authentication. The account opening process is conducted digitally without any intervention from any human beings.

The initiative helped Riyad Bank to reduce operating costs, increase customer acquisition and enhance overall customer experience.

Wio Bank was honoured with the Best NeoBank award in recognition of the digitalexclusive bank as the first platform bank in the Middle East that is revolutionising banking with intuitive banking apps, embedded finance and banking as a service (BaaS) capability.

Launched in September 2022, Wio Bank first launched Wio Business – the neobank’s business app that is a tailor-made SME application and offers a convenient and seamless banking experience. Wio Business provides startups, freelancers and SMEs access to banking services seamlessly while empowering them with innovative beyond-banking services.

Wio Bank seeks to contribute to the UAE’s digital vision by creating a robust digital financial system while building disruptive solutions. The digital bank leverages the strength of its shareholders - ADQ, Alpha Dhabi, e& Group and First Abu Dhabi Bank.

Best Digital Transformation in Islamic Finance

Aafaq Islamic Finance

In the Islamic finance category, Aafaq Islamic Finance was awarded with the Best Digital Transformation in Islamic Finance in the Middle East region. The Shariahcompliant bank has been at the forefront of the digital transformation in the Islamic finance sector, introducing cutting-edge solutions such as mobile apps (including Aafaq Drive), online services and digital payments to enhance the customer experience.

Of note is the bank’s commitment to digital innovation providing smart solutions to streamline processes and enhance customer experience. Aafaq partnered with Electronic Documents Centre in March 2023 to implement a digital onboarding solution that will simplify the onboarding process.

The digital onboarding solution will enable customers to open accounts and access financial services through a seamless digital experience while ensuring compliance with the KYC regulations of the central bank.

Best Data Management Standard Chartered Bank

The Best Data Management award was given to Standard Chartered Bank in recognition of the bank’s Straight2Bank NextGen platform upgrade for its corporate, commercial and institutional banking segments.

The platform offers services such as self-admin, data dashboards, lending and APIs and it achieved a net promoter score of 74% – ahead of the bank’s global operating regions. The online banking platform allows the bank’s corporate clients to manage their transaction banking needs.

Straight2Bank allows corporate clients to track the maturities of their outstanding transactions and repayment dates through an easy-to-use interface in addition to providing a real-time view of the facility limits and utilisations.

By digitising and simplifying the end-to-end exchange of information, clients can view real-time updates on the progress of their loan requests, thereby benefiting from greater transparency and cost efficiencies across the supply chain. This eliminates the challenges associated with paper-based loan drawdowns, including the inefficient process of physical signatures.

Best Data Management - Egypt EFG Holding

EFG Holding (formerly EFG Hermes) was honoured with the Best Data Management – Egypt award for its analytics systems which are recognised as powerful and effective tools for optimising and aiding the decision-making processes.

The banking group has invested significantly in developing advanced analytics systems that can examine raw data and generate useful conclusions to guide insightful business decisions. EFG Holding has established itself as a leader in the industry by leveraging cutting-edge technology to enhance its capabilities and deliver exceptional value to its clients.

The implementation of an effective analytics solution has become increasingly important for financial institutions such as EFG Holding in today’s data-driven world. They have demonstrated their ability to effectively utilise analytics to gain a better understanding of its clients’ needs, preferences and behaviours. This has resulted in improved customer experience and retention, increased revenue and enhanced efficiency – thereby providing a positive ROI.

Connect with external systems using Open APIs, fostering collaboration and expanding your services.

Harness the power of AI for informed decision-making and personalized customer experiences

Embrace flexibility, scalability, and cost-efficiency while ensuring robust security measures.

Best Analytics System Dubai Islamic Bank and GBM

Dubai Islamic Bank (DIB) and GBM received the Best Analytics System award in the Middle East, in recognition of the partnership which allows the UAE’s biggest Shariah-compliant bank to consolidate data into a single, centralised repository. Founded in 1975, DIB has large amounts of data on all of its account holders, generated from several sources. Though collecting that data was never the issue, the Islamic bank had silos of data stores distributed at the different lines of business. The bank partnered with GBM to overcome the problems of data silos and the time-consuming process to get insights into the data that was scattered across different departments. GBM proposed a data warehouse solution based on IBM’s PureData System for Analytics and the company’s InfoSphere Information Server. DIB and GBM’s unified data warehouse serve as the backbone of the banks’ analytics infrastructure.

Best Mobile Banking Services Commercial Bank of Dubai

Commercial Bank of Dubai (CBD) was honoured with the Best Mobile Banking Services award in the Middle East region. Digital transformation remains a strategic priority for the bank and the CBD Mobile App is a digital banking solution that offers a wide range of functionalities and services to both existing and new customers. The app provides a simplified and user-friendly interface that allows customers to easily manage their daily banking needs, from opening accounts and applying for loans and cards, to tracking expenses and enjoying exclusive 1,000 ‘buy one get one’ offers across different segments including dining and entertainment.

CBD Mobile App users can access the app using UAE Pass, making CBD the first bank in the country to successfully integrate authentication services on its CBD Mobile App with UAE Pass. With more than 120 services, the mobile banking app is the highest rated in the UAE with a 4.8 rating from over 20,000 users.

Most Innovative Emerging Technology Implementation

First Abu Dhabi Bank

First Abu Dhabi Bank (FAB) was the recipient of the Most Innovative Emerging Technology Implementation award, which was awarded to them in recognition of the bank’s digital onboarding journeys across multiple channels including mobile applications (FAB Mobile, National Housing Loan) and staff tablets.

FAB said 80% of all CASA products onboarded in the UAE’s largest bank by assets are through digital journeys and complete Straight Through Processing solutions. The bank said 60% of all its asset products including cards onboarded through digital journeys and over 250,000 products were sold in 2022 to the banking group’s existing and new customers.

Customers acquired through digital journeys prefer to bank digitally and this segment has parked total deposits worth $1,2 billion (AED 4.5 billion) with FAB.

Best Cloud Implementation Network International

The Best Cloud Implementation award was given to Network International in recognition of the payments company’s cloud-first approach that lets the company operate free of physical assets and data centres – eliminating complexity and hardware-based technology infrastructure.

The company leverages the benefits of the Cloud across its newest platforms, applications and new market entry strategies. This ‘cloud first’ strategy is applied to all new market entries where permissible.

The use of the cloud has differentiated and accelerated Network’s entry into Saudi Arabia, enabling the payments company to offer a fully modernised and digital ‘Payment-as-a-Service’ capability.

Network also created its new Data Lake capability on Microsoft’s Azure Cloud to act as its unified source of data across the group. This enables its merchant partners with access to real-time insights into their portfolios or payment transactions. The company is an anchor tenant for the deployment of Azure across the MENA region.

Best Innovation in User Experience Dubai Islamic Bank

In recognition of its pioneering leadership in digital banking with a strategy focused on enhanced customer experience, Dubai Islamic Bank (DIB) received the Best Innovation in User Experience award.

DIB set out to be a ‘digitally intelligent bank’ at the height of the pandemic three years ago, with a strategy focusing on enhancing the customer’s experience. In line with Dubai’s “Smart City” agenda, the bank launched the “Smart Bank” initiative, which is a revolutionary concept promising an exceptional digital customer experience.

Digital customer journeys were also launched for pre-approved credit cards and personal financing providing a seamless and simplistic journey with a customercentric approach. This service significantly enhances the application process from end to end involving zero paperwork.

New customers can now complete their account opening formalities and walk out with their instantly issued ATM cards and chequebook within 15 to 20 minutes, the same process used to take up to two days before the implementation.

Best Innovation in Retail Banking Mashreq Bank

Mashreq Bank was the recipient of the Best Innovation in Retail Banking award in the Middle East. The bank is one of the leading and long-established financial institutions in the UAE, whose service in retail banking has been acknowledged innumerable times over the decades of its operational service.

The bank’s inherent drive to be at the forefront of the market can be evidenced in its NEObiz Connect API, recognised for making opening an account seamless and free of the usual pain points. NEOBiz Connect streamlines the account opening process for SMEs as part of the bank’s commitment to supporting entrepreneurs with their banking needs.

Mashreq became the first bank in the Middle East to launch an API developer portal in 2021. Since then, the bank’s APIs have powered a wide variety of innovative digital journeys and personalised experiences for its customers.

Best Innovation in Corporate Banking and Finance RAKBANK

RAKBANK was honoured with the Best Innovation in Corporate Banking and Finance award in recognition of the bank’s SME Digital Loan, which is aimed at enabling the digital application of asset products from SME customers in UAE, providing instant in-principal approval and reducing TAT substantially in Loan disbursal.

The SME loan service allows customers to apply for business loans digitally from the RAKBANK portal or from the invitation that is sent by the relationship manager. The bank’s customer can either complete the loan application journey by himself or opt for sales assistance.

The new strategy helped in digitalising the business loan process and in less than one year, RAKBANK has disbursed more than $54.5 million (AED 200 million) of loans digitally providing enhanced customer and sales experience. The new system involved integration across nine systems, with enhancements and automation enabling lead qualification, lead filtration and aiding faster decision making.

Best Innovation in Trade Finance National Bank of Fujairah

The Best Innovation in Trade Finance award went to the National Bank of Fujairah (NBF). The award was given in recognition of NBF for being the first bank in the region to go live with AI-based Traydsteam implementation to automate its Letters of Credit Documents Checking process.

The platform reduces complexities and timescales of the trade processing department improving efficiency, processing capability, turn-around-time and enhanced customer experience. The system maintains a digital repository of data providing MIS, statistics and audit trails for the bank and the MIS can also be shared with the customers for their business decisions.

NBF also implemented Finverity for its supply chain financing program, which provides end-to-end automation through the digital transformation of documents from the seller to the buyer and the financing bank.

The platform has improved the bank’s turnaround time in supply chain financing avoiding any physical document submission.

Best Fintech Solutions Implementation Network International

Network International was the recipient of the Best Fintech Solutions Implementation award in the Middle East. Thanks to the payments solution provider’s reach, Network has established itself as a major implementer of payment solutions for financial institutions and fintechs alike.

Network partnered with Mastercard on a payment processing platform intended to transform digital payments for ten million banked and unbanked e& money users in the UAE. A million cards powered by Network One, the company’s end-to-end card processing and management system, are set to be issued by 2026.

The company also joined forces with e& money, the fintech arm and the financial super-app of UAE telecoms major e& Group, and Mastercard on an exclusive prepaid product value proposition to give cardholders the flexibility and convenience of using both virtual and physical cards.

Most Innovative Mobile Banking App – UAE Wio Bank

Wio Bank walked away with the Most Innovative Mobile Banking App – UAE award. The award was conferred to Wio in recognition of the digital bank being the first greenfield banking platform in the Middle East that is built to revolutionise the banking sector.

The digital bank is known in the industry for its Banking-as-a-Service (BaaS) which allows non-banking apps to integrate with their banking app and provide their services to their customers. The banks’ Wio Business app is tailor-made for SMEs and delivers a convenient and seamless banking experience.

Launched in September 2022, Wio Bank first launched Wio Business – the neobank’s business app that is a tailor-made SME application and offers a convenient and seamless banking experience. Wio Business provides startups, freelancers and SMEs access to banking services seamlessly while empowering them with innovative beyond-banking services.

Most Innovative Mobile Banking App – Saudi Arabia Bank Albilad

Bank Albilad was honoured with the Most Innovative Mobile Banking App – Saudi Arabia award. The Saudi lender’s mobile banking application offers customers a wide variety of services including subscription for initial public offering, e-KYC service – which allows customers to update information through digital channels and buy ‘Adahi’ through the Hajj pilgrimage season.

The bank’s mobile app has 94% eligible registered customers, 58% of registered customers are active on the bank’s digital channels, the bank registered a 41% increase in transactions volume on the mobile app in 2022 compared to 2021 and 66% of new accounts that were opened in 2022 were through the mobile app. Bank Albilad’s mobile app offers several banking services including personal finance requests – new finance, refinance and top-up finance – allowing customers to apply for personal finance digitally without the need to visit the branch. The process is fully digital and STP with the capability to configure the approval process to be through credit risk analysts for high-value finances and is auto-processed starting from initiation, eligibility and fulfilment.

Most Innovative Trading Platform National Bank of Fujairah

In trade finance, the National Bank of Fujairah (NBF) was conferred with the Most Innovative Trading Platform award in the Middle East region. NBFX offers a bespoke digital experience to hedge customers’ treasury requirements featuring fully automated, transparent and competitive prices in foreign exchange and precious metals. The platform provides a complete overview and automated interface ensuring higher efficiency and viewing of complete trade and order history using the advanced audit log.

As an extension of the bank’s digital offerings, NBFX is available for both conventional and Shariah-compliant banking customers and its 24/5 availability means that customers can execute transactions during and beyond the bank’s working hours and benefit from liquidity across all time zones.

NBF’s NBFX provides users with a tailored experience that is based on their needs with instant and easy execution of FX trades, order management and readily available transaction history.

Best Branch Digitisation Implementation – UAE First Abu Dhabi Bank

The Best Branch Digitisation Implementation award-UAE was given to First Abu Dhabi Bank (FAB). FAB’s corporate cheque deposit (CCD) is a convenient service launched for corporates to deposit their cheques remotely.

The service is designed to speed up the cheque-clearing cycle by simply scanning cheques through FAB-installed scanners and submitting them through the CCD portal. It gives corporates faster access to their funds by eliminating the need to physically deliver the cheques to FAB branches before clearing.

Focused on customer experience, CCD provides corporates with an enhanced user experience throughout the cheque deposit lifecycle, right from cheque scanning to cheques being submitted to the bank. This service is also extended to postdated cheque deposits which allow corporates to get better visibility of their collections and helps them forecast cash flows.

Illuminative dashboards, immersive status tabs and detailed reports provide customers with all the necessary information and assist them in their daily reconciliation process.

Best Branch Digitisation Implementation – Jordan Capital Bank of Jordan

Capital Bank of Jordan walked away with the Best Branch Digitisation Implementation award in Jordan. The bank has made significant investments in recent times to undergo a major transition in modernising its IT infrastructure and achieving notable advances in digital innovation and customer experience.

Capital Bank’s commitment to advancing customer experience has resulted in increased levels of satisfaction and loyalty. Furthermore, the bank integrated sustainable practices across its business to reduce the environmental impact of its operations while bolstering its commitment to corporate responsibility.

Branch digitalisation at Capital Bank has helped not just the bank’s customers and the environment but has also produced significant financial outcomes, including higher sales and profitability. One of the key initiatives that the bank ran this year was the transformation of its branches, which came along with the acquisition of two other banks. The bank streamlined processes, people, premises and solutions at its branches, which resulted in tremendous brand awareness while creating an opportunity for the bank to cross-sell.

Best Corporate Payments Service Dubai Islamic Bank

Dubai Islamic Bank (DIB) was honoured with the Best Corporate Payments Service award in the Middle East. DIB cash management has developed customised hostto-host connectivity solutions for large public and private sector clients. The solution enables a direct interface between client enterprise resource planning (ERP) and the bank’s core banking platforms. The bank’s customers have the benefit of authorising payments at their end and the transactions are transferred under secured encrypted protocols for straight-through processing (STP) by the bank without any manual intervention.

The real-time status of transactions is also made available to the client on their ERP platform. Corporate clients who have benefited from this value-added payment solution operate across diverse industry segments such as real estate, government ministries, utilities, free zones, hospitality, oil and gas.

The underlying nature of corporate payments typically relates to supplier payments, staff salaries and pension payouts. The Shariah-compliant lender processed more than $40.8 billion (AED 150 billion) in payment value through this digital channel.

Best Risk & Compliance Implementation Emirates NBD

Emirates NBD walked away with the Best Risk & Compliance Implementation award in recognition of the bank’s ability to adapt to the complex and dynamic global regulatory landscape. The events of the past two years brought sanctions screening to the forefront in 2022.

The UAE central bank issued new guidance requiring the screening of all domestic transactions, in addition to the current practice of screening all international transactions. In response to a three-fold increase in the number of transactions requiring investigation, Emirates NBD embarked on an ambitious project “Fifty 50” to reduce false positives by 50% in 50 working days while enhancing the screening capabilities to achieve the highest possible compliance standards.

The bank used Microsoft PowerBI to analyse large volumes of payment data, resulting in a significant and measurable decrease in false positive alerts and allowing for higher straightthru processing of customer payments. The initiative enabled Emirates NBD to prevent $3.3 million (AED 12 million) per year in staff costs while improving the customer experience.

Best Open Banking & API Implementation Mashreq

and GBM

In the open banking and API implementation category, Mashreq and GBM were honoured with the Best Open Banking & API Implementation award in recognition of the two entities’ collaboration on a range of key APIs in payments, foreign exchange and trade finance. Mashreq’s platform allows developers ranging from businesses and fintechs to browse APIs, test them in a secure environment and consume the bank’s APIs for use in their own applications. The bank’s first flagship API product is NEOBiz Connect, which gives licensing authorities the capability to allow a customer to send a full NEOBiz application directly from their digital platform, in one click. NEOBiz is Mashreq’s exclusive digital bank for SMEs, which has revolutionised SME account openings and helped to support the growing SME ecosystem in the UAE. The bank’s partner in creating these offerings, GBM, was involved at the outset, from articulating the value proposition to the rollout of the first phase of the project.

Best Retail Payments Implementation

Emirates NBD and TCS BaNCS

In recognition of their pioneering Payments as an ‘Enterprise Payment Hub,’ Emirates NBD and TCS BaNCS received the Best Retail Payment Implementation award. With a multientity, multi-currency, multi-channel enterprise payments hub, Emirates NBD has become the market leader in innovation.

The platform is deployed as a single instance, multiple entity solution supporting payments rails across seven entities in the banking group. It supports standardised payment processing and operations, including clearing and settlement for international and domestic payments. At the branch level, employees can manage exceptions in much better and more efficient ways while for corporate customers, the extensive parameterisation of the TCS BaNCS solution enables the bank to cater to their specific needs.

TCS BaNCS APIs have been essential in supporting Emirates NBD’s innovative digital transformation journey. The bank offers intuitive digital apps that deliver a wide range of fast and flexible capabilities, which are connected to real-time payments data through granular, real-time APIs.

Best

Treasury Management Implementation

First Abu Dhabi Bank

First Abu Dhabi Bank (FAB) was the recipient of the Best Treasury Management Implementation award in the Middle East region. The role of the treasurer has evolved to become far more strategic over the years and FAB was conferred with the award in recognition of its White Label Treasury Management System, launched as a ‘SaaS’ model in December 2022.

FAB is a dominant player in the MENA region with a strong network and combined with its presence in 20 markets, the Abu Dhabi-based bank has one of the largest international networks of any GCC bank.

FAB’s global and regional branches work as a closely integrated network. The bank’s management of trade finance and cash management products is globally integrated with a specific focus on regional branches. The product management is globally managed with specific variations to local products based on in-country specifics. The bank’s White Label Treasury Management System provides optimum solutions to operational, technical and financial challenges.

Best Digital Wallet User Experience payit powered by FAB

First Abu Dhabi Bank’s payit was honoured with the Best Digital Wallet User Experience in recognition of the convenience of this digital wallet and the account management it offers. Beyond payments, Payit offers cash-dependent consumers an accessible alternative to traditional bank products, including international money transfers, peerto-peer payments, merchant payments, bill payments and local bank transfers.

Launched in 2018, FAB’s payit is the UAE’s first fully featured digital wallet created to support the transition to a cashless society. The wallet launched its digital card for hassle-free local and international payments in March 2023 and adding the Letsgo payit Visa Platinum Card to the wallet, reflects a rapid consumer shift away from cash even for small everyday purchases.

The Letsgo payit Visa Platinum Card is available in both physical and digital versions and provides a practical, accessible and hassle-free payment instrument, ready to be used at any place where a bank card would usually be accepted. Unlike other cards, each Physical Letsgo payit Visa Platinum Card incorporates a unique and personalised QR code, making receiving payments a very easy.

Best Fintech Enabled Corporate Service Provider Virtuzone

The Best Fintech Enabled Corporate Service Provider award was given to Virtuzone in recognition of the company’s realisation that fintech is a critical component of the overall financial and economic ecosystem.

Virtuzone has partnered with several fintech companies in the UAE to help their clients with easy access to the latest financial technologies, which will enable them to access the latest cutting-edge fintech technologies while providing SMEs with easier access to corporate banking facilities.

The corporate services provider partnered with Wio Bank in October 2022 to offer entrepreneurs seamless access to banking services through the greenfield bank’s SME-focused digital banking application – Wio Business.

Mashreq Bank also unveiled its NEOBiz Connect API integration with strategic partner, Virtuzone, in March 2023. NEOBiz Connect allows any free zone or trade license authority including Virtuzone customers to submit account applications from the company’s platform – enabling a one-click SME account opening.

Technology Leadership Award

Zul Javaid, CEO, UAE Trade Connect

Zul Javaid, the CEO of UAE Trade Connect was the recipient of the Technology Leadership Award in the Middle East. Javaid leads a fintech that is uniquely built by a consortium of banks for the banking sector focusing on trade finance. He has previously held senior positions as Chief Financial and CEO at various telecommunications and IT businesses including Etisalat – now e& Group, and through living in the Middle East, Africa and Asia has accumulated experience and knowledge of how digitisation can fast-track the development of economies. Under Javaid’s stewardship, UAE Trade Connect is enabling banks to send invoice information into a private permissioned blockchain network through their own node. This data is then processed by the company’s proprietary fraud detection platform, whose primary objective is to identify duplicate or over-financing and to prevent fraudulent activity through consensus mechanisms.

The fintech firm protects banks by leveraging technology that inherits immutability, transparency, auditability, data encryption and operational resilience. Once an entry is registered on the blockchain, it cannot be changed, modified or altered, resulting in a time-stamped version of the truth and fostering trust within its network.

Chief Technology Officer of the Year

Saud Al Dhawyani, Chief Technology Officer, Emirates NBD

Saud Al Dhawyani, Chief Technology Officer, Emirates NBD was the recipient of the Chief Technology Officer of the Year award in the Middle East. Al Dhawyani, an exceptional leader in the technology industry, was the Chief Architect during Emirates NBD’s major technology transformation program from 2017 until 2021 and he took over the Chief Technology Officer role in 2020.

He led a technology team of more than 1000 engineers and architects in 2022 to achieve remarkable accomplishments, driving innovation and digital transformation within Emirates NBD. Al Dhawyani spearheaded the development of new digital products and services, including the bank’s mobile app, a tablet banking solution that powers the bank’s sales and customer service agents as well as a corporate banking channel that incorporates rich corporate offerings in a single platform.

Al Dhawyani led the bank’s first on-premises cloud platform setup that is enabled with advanced DevOps tools and developer portal capability. The cloud platform provides Infrastructure as a service (IaaS) and Platform and a service (PaaS) capability for all Emirates NBD applications, which are deployed via standard tools as a code (IaaC), which resulted in improving the applications’ resilience, scalability, flexibility, deployment consistency with 54% reduction in rework and 20% IT cost reduction.

A single touchpoint for all your commerce needs

We provide the reach, resiliency, security and innovation you need to compete in the world of digital payments

Connectivity

Scale globally and accept payments across channels and devices with over 200 acquirer connections

MASTERCARD GATEWAY

Flexibility

Exceed customer needs with a dynamic suite of services, partners and solutions

Security

Protect all players from fraud and risk with advanced technology and built-in compliance

With the right connections, anything is possible

mastercard.com/gateway

Innovation

Futureproof your business and lead the competition in an always evolving market

Digital Banking Provider of the Year Backbase

Backbase was the recipient of the Digital Banking Provider of the Year award in the Middle East. The Digital Banking Provider of the Year award recognised Backbase as the leader in the sector for creating and implementing products and services that meet the requirements of financial service institutions in the region.

The company’s engagement banking platform (EBP) is a clear evolution of the digital banking experience and is used by large financials around the world, helping them to scale up operations and keep pace with change as well as competition. The platform enables any journey, from digital sales to everyday banking, to deliver seamless, frictionless experiences for both your customers and employees.

The digital-first banking company seeks to enhance banks’ and financial institutions’ digital transformation to allow them to deploy digital sales and banking experiences across all segments, channels and products through turnkey customer and employee apps.

Islamic Digital Banking Provider of the Year

Azentio Software

Azentio Software walked away with the Islamic Digital Banking Provider of the Year award. The company was given the award for their successful iMAL core banking system implementation experiences with Islamic banks in the Middle East and Africa.

The company has a comprehensive set of Shariah-compliant services for the financial services sector that brings unique convergence of domain and technology. The company offers the widest range of AAOIFI-certified solutions and technology services for the Islamic financial services industry.

The award was also conferred to Azentio in recognition of the implementation of an Islamic core banking solution for Bank AlJazira in Saudi Arabia and Amana Bank, a challenger bank in Somalia offering Sharia-compliant banking solutions; plus providing workable solutions to varied institutional types. iMAL is highly reliable, cloud-enabled, deployable on a fully scalable N-tier architecture and supports digital transformation and open banking through AI, blockchain and other technologies.

Best RegTech Solutions Provider

4most powered by Paragon

Paragon-backed 4most received the Best RegTech Solutions Provider in the Middle East region. 4most supports compliance with the Central Bank of UAE’s Model Management Standards and Guidance Regulation via the first release of their ‘Focus’ technology solution. 4most developed a technology solution called ‘Focus’ powered by Paragon when the regulation was initially drafted and in discussions with the banks in 2021. The company held multiple demos with the local banks presenting the prototype and taking notes for further enhancements as per the banks’ requirements - which were later included in the initial first release of “Focus.”

The innovative solution is currently under evaluation by several tier 1 banks in the UAE, which issued RFPs on the same and looking to onboard 4most as a vendor for this specific technology solution called ‘Focus’.

4most also advised the UAE central bank on the creation and release of the technology solution on the market, being well received and appreciated.

Best Core Banking Solutions Provider Tech Mahindra

The Best Core Banking Solutions Provider award was given to Tech Mahindra. Tech Mahindra adopted the Temenos Implementation Methodology (TIM) of implementation, which is a synergy of waterfall and agile and follows a seven-stage approach starting from the project initiation to the deployment stage in planned phases.

Tech Mahindra proposed an ideal implementation that is comprehensive, scalable, flexible and provides a secured solution with specialised service offerings to KCB Group, a Kenya-based financial corporation. The core banking solution, which Tech Mahindra proposed to KCB Group, was implemented in several countries across eastern and Central Africa and it brought numerous benefits and added value to the banking group’s customer base.

With $6.5 billion total revenue and 1297 global customers - including Fortune 500 companies – Tech Mahindra represents the connected world, offering innovative and customer-centric information technology experiences, enabling enterprises, associates and social empowerment.

Best User Experience Solution Provider – UAE

Skiply from RAKBANK

In recognition of its platform for managing school fees and expenses that they have made even simpler and more efficient through its app, Skiply from RAKBANK was accorded the Best User Experience Solution Provider in the UAE.

The platform allows more than 120,000 users to manage their educational institutions’ payments and activities. It became much easier and more efficient due to fast shortcuts, snappy navigation and showing content which is relevant to the users.

Skiply has onboarded more than 200 educational institutions so far, making it the leading application in the UAE educational sector. For parents, Skiply means they can skip the queues and inconvenience of physical payments for school fees, excursions, uniforms and school expenses.

Meanwhile, for schools, the platform means increased efficiencies, security and ease in accepting and processing all payments and reducing the time spent managing orders, receipts and cash.

Best User Experience Solution Provider – Bahrain

The Family Office Bahrain Company BSC

The Family Office Company was the recipient of the Best User Experience Solution Provider award in Bahrain. The wealth management firm unveiled its digital investment platform in 2022 to empower investors and democratise access to exclusive global private market opportunities.

The platform gives prospects a customised asset allocation proposal and allows them to build a portfolio and simulate its performance over 10 years. The Family Office offers innovative solutions to preserve and grow their clients’ wealth.

Investors benefit from interactive tools including the portfolio builder and retirement planner, investment insights, events featuring global experts and exclusive global international investment opportunities across asset classes starting from just $300,000.

The Invest-Now-Pay-Later feature offers a monthly payment of up to five years. Since the first release, we have been optimising the experience constantly based on observed user behaviour and needs, adding new features and user-friendly options along the journey.

Best Risk Management Solution Provider UAE Trade Connect

UAE Trade Connect was the recipient of the Best Risk Management Solution Provider award in the Middle East region. The Best Risk Management Solution Provider award was given to UAE Trade Connect in recognition of the company’s risk management capabilities that have seen more banks and financial institutions being onboarded on their platform. The platform’s financial industry analytics solution, which is built by banks for banks, inspects and validates trade invoices and detects fraudulent activity in real time. A pioneer in the niche space of applied blockchain technology, UAE Trade Connect’s innovative solution was innovated through ‘co-creation.’

The collaborative approach taken to build the platform has enabled the company to become the first commercialised blockchain application in the UAE. UAE Trade Connect is the fintech arm of e& enterprise, currently servicing trade finance divisions of UAE banks. The platform went live in 2021 with the collaboration of seven local banks including Commercial Bank International, First Abu Dhabi Bank and Mashreq.

Best Islamic FinTech Solutions Implementation

DDCAP Group for ETHOS AFP

In recognition of its ETHOS Platform that consistently performs to the highest levels, providing Shariah-compliant financial technology, DDCAP Group walked away with the Best Islamic FinTech Solutions Implementation award. Integrating fintech solutions is a complex and vital activity in today’s banking world. Following the increasing and overlapping resonance of responsible financing, DDCAP with its ETHOS Asset Facilitation Program connects the global Islamic financial market responsibly.

The London-based firm unveiled ETHOSTerminal in 2021, bringing additional integration functionality to its clients via an open market environment that enables users’ full discretion in choosing trade counterparts. The company works with several Shariahcompliant banks globally and aspires to connect to the global Islamic financial market responsibly while promoting awareness of the business. Since its establishment 25 years ago, DDCAP is one of the biggest intermediaries in the Islamic finance sector.

Best Analytics Solutions Provider Finshape

Finshape was the recipient of the Best Analytics Solutions Provider award in the Middle East region. The company blends digital banking platforms and deep personalisation capabilities into a driver of digital success for banks in Europe, the APAC and MENA regions.

Over the past three decades, Finshape has brought together more than 400 experts who all share the same ambition: to become banks’ trusted partners as they reconnect with customers in the digital world.

Finshape counts First Abu Dhabi Bank, Riyad Bank, National Bank of Bahrain, International Bank of Yemen, AM Bank and Trade Bank of Iraq among its clients in the Middle East and the company has been working on digital banking and data monetisation projects with incumbent banks. The company is empowering bank digitisation with hundreds of its engineering, data scientist and business consultant experts, serving over 100 customers in 25 countries across four continents.

Most Innovative Cloud Banking Services Provider

Amazon Web Services (AWS) and GBM

The Most Innovative Cloud Banking Services Provider award was given to Amazon Web Services and GBM in honour of the partnership’s ability to set up a data processing centre, despite the time frame, regulatory and compliance requirements among other cybersecurity measures.

The solution was reached through a partnership that leveraged the cloud services of one of the parties into the equation and so enabling in-country processing. GBM has nurtured partnerships with the world’s leading technology companies and has invested in skills and resources to assist banks and financial institutions on their path towards digital transformation. With more than 30 years of experience, eight offices and more than 1,500 employees across the region, GBM is the leading digital solutions provider. As an end-to-end digital transformation partner, GBM offers the region’s broadest technology portfolio, including industry-leading infrastructure, digital business solutions, security and services.

Best AI Technology Implementation

SmartStream Technologies

SmartStream Technologies was honoured with the Best AI Technology Implementation award in the Middle East. This award recognised SmartStream’s significant investments in R&D and for exhibiting dedication to researching ways in which advanced technologies such as AI and machine learning can be deployed by their solutions.

The company’s proactive strategy allows its clients to keep ahead in the fast-changing and furiously competitive environments of today’s banking and payments sectors. SmartStream offers a wide range of cloud management solutions that offer advanced assessment services ensuring that financial service institutions’ path to cloud transformation is seamless, quick and cost-effective.

Its managed services bring many of its market-leading solutions to its banking customers in a scalable, reliable, secure and cost-effective way. As the cloud is becoming a key enabler of banks’ digital transformation initiatives, SmartStream’s cloud-enabled solutions are the norm, and they are the basis for its rapidly growing managed services.

Best Trading Infrastructure Provider

Premium Technology

Premium Technology was the recipient of the Best Trading Infrastructure Provider award. The award honoured Premium Technology for its market-leading digital supply chain finance and working capital solutions.

The company’s supply chain finance solution has been battle-tested and proven in production environments since 2006 in global banks and corporate clients. Today, Premium Technology offers FinShare as a modular single-platform ecosystem linking anchor clients with their counterparties throughout the supply chain life cycle, integrating and unlocking working capital solutions to enhance the bank’s value proposition.

The Middle East is a rapidly growing supply chain finance market, driven by a need for businesses to optimise their working capital, reduce financial risks and improve their cash flow. Premium Technology counts First Abu Dhabi Bank, Boubyan Bank, Abu Dhabi Commercial Bank and Gulf International Bank among its clients in the Middle East.

Best AML/KYC Solutions Provider

Newgen Software Technologies Ltd

Newgen Software Technologies was the recipient of the Best AML/KYC Solutions Provider in the Middle East award. The award was presented to Newgen Software in recognition of the company’s partnership with Oman’s Bank Muscat. Bank Muscat wanted to deliver premium digital services to its customers and enhance their experience. Using Newgen’s retail lending software, the Omani lender automated its end-to-end retail lending process, from pre-screening, application processing and underwriting to disbursal in a paperless and electronically driven workflow environment.

Newgen was able to achieve this in a paperless workflow environment, integrating with core banking and supporting third-party systems to manage the retail loan lifecycle. The company’s industry applications transform business-critical operations with agility while enabling digital transformation initiatives for superior customer experience, optimised costs and improved efficiencies.

Best Open Banking & API Solutions Provider

The Best Open Banking & API Solutions Provider award was conferred to Ericsson and MTN partnership. Ericsson and MTN were given the award in honour of their work in the remote parts of the Middle East and Africa, where they are closing the formal financial inclusion gap left by a lack of banking and card penetration using mobile money.

Mobile money is alternative to banking that provides everyone with a mobile phone, whether unbanked or banked, access to real-time, easy-to-use, secure, affordable and innovative mobile financial services. MTN Mobile Money (MTN MoMo) is Africa’s largest mobile money service available across 17 countries.

MTN joined hands with Ericsson to accelerate the pace of mobile money growth and encourage innovation in the MEA region by opening a mobile money platform for all third parties. The decision led to the creation of an inclusive partner ecosystem which includes banks, corporates, utility firms, financial institutions, remittance companies, retail chains, SMEs and startups.

Best Collection Solution Provider

Loxon was the recipient of the Best Collection Solution Provider award. The award honoured Loxon for its SaaS Collection Solution, a cloud-based platform that addresses the needs of financial institutions for effective, secure and customer-centric accounts receivable management.

The company’s collection system can be easily integrated with other systems and supports seamless interaction with existing tools and platforms that are being used by financial institutions, banks and merchants among other businesses. The well-integrated system enables better communication between departments, reduces manual processes and streamlines the overall debt collection operation. Loxon is a trusted business solutions provider with more than 20 years of experience in endto-end credit management offering comprehensive, integrated lending, collection and risk management solutions to the financial services sectors.

Most Innovative Payments Solutions Provider Arab Financial Services (AFS)

Arab Financial Services (AFS) was honoured with the Most Innovative Payments Solutions Provider award in the Middle East. This award recognised AFS’s leading position in offering a wide range of payment solutions across processing and payments, merchant acquiring solutions, fintech and innovation and other value-added services.

The company currently offers its merchant acquiring services in Bahrain, Oman and recently expanded into Egypt in partnership with Bank ABC in 2022. The AFS acquirer processing and payments platform connects directly with merchants of all sizes to facilitate innovative, smart and secure payment acceptance while also managing payment processing strategies and solutions.

AFS is owned by 37 regional banks and financial institutions including Bahrain’s Bank ABC (majority shareholder) and Saudi National Bank. The payments firm serves more than 60 clients in over 20 countries across the Middle East and Africa. It partnered with Brankas, a Singapore-based fintech, to provide new and open finance infrastructure in the region.

Best Payments Provider Contribution to Digital Transformation Mastercard Payment Gateway Services

Mastercard Payment Gateway Services was accorded the Best Payments Provider Contribution to Digital Transformation award in recognition of its extensive partnerships with organisations from diverse sectors and municipalities in the Middle East to help foster environments for the adoption of digital payment solutions in everyday life.

Mastercard Payment’s collaborations in Egypt, Saudi Arabia and the UAE are great examples of how the payment solutions firm is supporting the development of countrywide digital transformation. The company partnered with the Greater Amman Municipality to launch Jordan’s first transit payment ecosystem.

The partnership with Greater Amman Municipality will enable seamless digital payments across the municipality-operated public transport network, powered by Mastercard’s Payment Gateway Services.

The company’s portfolio of integrated services and solutions is generating new business, deepening customer engagement, driving loyalty, protecting digital systems and creating new opportunities beyond payments.

Best Cross-Border Payments Provider Swift

Swift received the Best Cross-Border Payments Provider in the Middle East region. Swift’s presence in banking and financial services is indispensable, thanks to the company’s everevolving services, including gpi and Go, enhancing payment processes.

Swift gpi instant payments service combines the power of Swift gpi with domestic real-time payment networks to make cross-border payments as fast and as seamless as domestic payments. Swift unveiled Swift Go, a transformative new service that enables small businesses and consumers to send fast, predictable, highly secure and competitively priced low-value cross-border payments, in 2021.

The payments enabler remains committed to modernising and enhancing cross-border payments in this region and across the world. Swift serves as the primary interbank messaging service for financial institutions globally. It works with 11,000 member institutions and facilitates $150 trillion in transactions per year.

Best Digital Platforms Provider Backbase

The Best Digital Platforms Provider award was given to Backbase. The banking industry is changing rapidly and will be nearly unrecognisable in a few years and Backbase is championing digital transformation in the sector by providing its products and services that are not only unique but meet the requirements of its clients in the region. The digital-first company enables any journey, from digital sales to everyday banking, to deliver seamless, frictionless experiences for both your customers and employees. Its Engagement Banking Platform is a clear evolution of the digital banking experience and is used by large financials around the world, helping them to scale up operations and keep pace with change as well as competition. Backbase seeks to enhance banks’ and financial institutions’ digital transformation to allow them to deploy digital sales and banking experiences across all segments, channels and products through turnkey customer and employee apps. Their enthusiasm for bringing about the new world of banking and finance is exampled in their book, The Engagement Banking Revolution.

Best B2B Payments Solutions Provider TCS BaNCS

TCS BaNCS was honoured as the Best B2B Payments Solutions Provider in the Middle East. The firm received the award in recognition of its ‘Enterprise Payments Hub,’ deployed as a single instance, multiple identity solution that supports payment rails across seven entities in the technology landscape of one of the biggest banks in the UAE. Encompassing solutions for payments, transaction banking, treasury, reconciliations and risk management, their solutions help banks foster rapid growth, innovate at scale and realise a shared purpose through the TCS BaNCS ecosystem.

The platform supports standardised payment processing and operations, including clearing and settlement for international and domestic payments, which gives TCS BaNCS’ customers a competitive edge in the financial services sector in the region.

Best Composable Banking Technology Solutions Provider Infosys Finacle

In the composable banking technology field, Infosys Finacle was honoured with the Best Composable Banking Technology Solutions Provider in the Middle East. The award was given in recognition of the company’s success in the increasingly competitive technology arena of composable banking technology solutions that aim to make banking services meaningfully better.

The componentised structure of Infosys Finacle’s product allows banks to deploy and upgrade solutions flexibly, with the company’s robust offering gauged by key architectures including cloud, security, API, data, process and system. Finacles’ cloud-native solutions allow banks to compose contemporary digital business models such as Banking as a Service (BaaS) with ease, using the company’s open APIs, webhooks and pre-integrated API management infrastructure. The company is supporting incumbents, greenfield banks and neobanks to drive truly digital transformation to achieve frictionless customer experiences, larger ecosystem play, insights-driven interactions and ubiquitous automation.

Most Innovative Digital Wallet Deployment Ericsson and MTN

Ericsson and MTN were awarded the Most Innovative Digital Wallet Deployment award in the Middle East. The company, which focuses on business assurance, quality assurance and software testing for the banking, insurance and financial services sector, was given the award in recognition of how it is supporting financial services providers to achieve operational excellence.

MoMo APIs are not only for large corporates such as merchants, retail chains, banks, financial institutions, utility companies, e-commerce companies and remittance companies, but it has also encouraged SMEs, small and medium-sized merchants, startups, tech companies and fintechs to launch innovative payments use-cases and applications, fostering innovation in the region.

With its open API approach, the MTN MoMo platform is one of the largest inclusive mobile money platform in the region, which can be used by any big or small third-party enterprise or developer to start accepting payments digitally from 69 million MoMo customers.

Best Issuer & Acquirers Payments Provider Netcetera

Netcetera was the recipient of the Best Issuer & Acquirers Payments Provider award in the Middle East region. The Swiss software firm is offering cutting-edge IT products and individual digital solutions in the vital sectors of authentication and secure digital payment technologies. The company is indeed prominent for its 3-D Secure portfolio which includes 3D-Secure ACS for issuers and 3D-Secure Server and SDK for acquirers. Its solutions interconnect the entire digital payment ecosystem, providing the best online shopping experience for your customers.

Netcetera’s acquiring products enable processing transactions with 3-D Secure protocols and PSD2 SCA exemptions, certified with many card networks including Saudi Arabia’s MADA and is fully compliant with the standards in the payment industry, such as PCI – DSS and PCI-3DS.

By using Netcetera’s payment solutions, issuers and acquirers can easily integrate with the company’s secure digital payment products, according to card networks and government regulations.

Wealth and Investment Technology Provider additiv

In recognition of their Orchestrated Finance Platform, additiv was honoured with the Wealth and Investment Technology Provider award. The company has made significant strides in the Middle East market with its business model enablement solutions since opening its regional office in Dubai in 2020.

The company provides wealth-as-service related insurance services and collateralised credit and combines all parts within the financial value chain, enabling companies to design and operate contextually rich financial experiences in the right form for each customer at their point of need.

additiv offers a range of solutions including Hybrid Wealth Manager, Wealth Robo Advisor and Embedded Wealth. It is scoring on many fronts including the clear separation between interaction channels and the orchestration platform or its DFS system which offers an extensive set of APIs for integration and interaction with other systems and data providers. additiv also offers a unified data structure for the integration of external data feeds.

Best Payments Implementation Provider Global Software Solutions (GSS) Group

Global Software Solutions (GSS) Group won the Most Innovative Payment Solutions Provider award in the Middle East. The award was given in honour of the firm’s reliable and robust, drag-and-drop digital banking automation and payments solutions and are currently the first technology provider to be powering two banks in pilot 1 of NPSS.

The company is the first vendor to support customers to go live on the UAE’s new Instant Payments Platform. GSS Group worked on the UAE’s first unified, secured and efficient card payment platform to facilitate the growth of e-commerce and digital transactions in the country.

The software solutions firm is also driving innovation, competitiveness and collaboration in the financial services sector through interconnectivity and interoperability among all players and institutions. Founded in 2000, GSS Group counts First Abu Dhabi Bank and Finance House among its clients.

Financial

Services Technology Leadership Award

Nandan Mer, Group Chief Executive Officer, Network International

Nandan Mer, Group Chief Executive Officer, Network International was the recipient of the Financial Services Technology Leadership award in the Middle East. Mer is a payment, consumer finance and corporate banking veteran with a deep understanding of the Middle East and Africa as well as experience in Japan, India, the Czech Republic, Israel, Russia and the UK.

For over three decades, he has successfully built and grown businesses for prominent financial institutions including American Express, Citigroup, United Bank for Africa and Mastercard – helping them achieve profitable scale and dominant market share.

Mer is championing Network’s refreshed purpose of helping businesses and economies prosper by simplifying commerce and payments. He also advocated cultural transformation as the core of the organisation’s growth, putting the ‘Network Way’ at the heart of the business, instrumental to the delivery of the organisation’s strategy.

His ambition of turning Network into the fastest-growing and most innovative customer-centric payments firm in the region has placed the organisation at the forefront of payments technology development and deployment.

On this photo, Jamal Al Nassai, Group Chief Operating Officer & Country Head –UAE of Network International accepted the award on Nandan’s behalf.