MENA Banking and Fintech Update - May 25th 2024
Benedict Xavier
Global Head - Payments Specialist, Blockchain Architect, Open Protocols, Build Open Platform, Digital Banking, Open Headless Commerce, Payment Gateway, Open Banking, Wallets - Expert in Digital Transformation & Payments
Banking & Industry News
UAE Banks to Gradually Roll Out Jaywan Debit Cards Over Next 2.5 Years
All UAE banks will phase out existing debit cards and replace them with @Jaywan debit cards. The transition will cover over 10 million cards and is expected to take two and a half years, according to Abdulaziz Al Ghurair, chairman of the UAE Banks Federation . The Jaywan card, set to begin issuance in the second quarter of 2024, aims for future acceptance across the GCC and beyond. The initiative is part of a broader effort that includes the Digital Dirham and the Aani instant payment platform.
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QCB Issues Cloud Computing Regulations
Qatar Central Bank (QCB) has introduced regulations for cloud computing in the financial sector to protect data, promote digitalization, and foster innovation. These regulations align with the Financial Sector Strategy and Qatar National Vision 2030, aiming to create a secure framework for cloud adoption and encourage technological advancements in financial services.
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Emirates NBD Reports Record Q1-24 Profit of AED 6.7 Billion
Emirates NBD witnessed a remarkable 67% surge in profits to a record AED 6.7 billion in the first quarter of 2024, driven by regional expansion, increased transaction volumes, and strong recovery of impaired loans. The bank's asset base crossed the AED 900 billion mark, with robust performance in retail and corporate lending. Market-leading deposit growth and improved credit quality further solidified its position as a regional powerhouse, poised for continued growth.
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UAE Floods: Central Bank Allows 6-Month Loan Instalment Deferral
In response to the recent heavy rains, the Central Bank of The UAE has instructed banks and insurance companies to permit affected customers to defer repayment of personal and car loan instalments for six months. This deferral comes without additional fees or interest. The CBUAE advises the public to review their insurance policies carefully and seek assistance from Sanadak , the financial and insurance ombudsman, for any disputes with insurance companies.
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Goldman Sachs Receives License for Saudi Arabia Regional HQ
Goldman Sachs Group is poised to become the first Wall Street bank with a regional headquarters in Saudi Arabia after obtaining a license from the Ministry of Investment. This move aligns with new government rules requiring companies with state contracts to establish regional headquarters in the Kingdom. The decision offers significant tax benefits, including a 30-year exemption from corporate income tax.
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Fintech News & Regional News
UAE Islamic Bank Assets Surge $23.4 Billion in One Year
The Islamic banking sector in the UAE experiences significant growth as assets soar by $23.4 billion over the past year, according to data from the Central Bank of The UAE . Islamic banks' assets reached $195.4 billion at the end of February 2024, marking a 13.61% annual increase. Deposits also rose by 15.8% to $509.4 billion during the same period. Despite this growth, conventional banks still dominate, holding 82.9% of the country's total banking assets.
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Vision 2030: Saudi Arabia's Economic Transformation Attracts Global Investors
Saudi Arabia's Vision 2030 is driving significant economic shifts, making it an enticing investment destination. Experts from J.P. Morgan , Bloomberg , and ASFAR highlight the positive impact of economic diversification strategies, including tourism promotion, industrial development, renewable energy initiatives, and healthcare advancement. The country's regulatory reforms and incentives are attracting international investors, setting the stage for sustained growth and innovation.
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Deutsche Bank Forecasts Rise in Fees for China-Middle East Deals
Deutsche Bank adjusts its regional structure to bring Middle East corporate banking operations closer to Asia amid a surge in Chinese companies expanding into the Middle East. Deutsche Bank’s revenue from assisting Chinese firms invest and expand in the Middle East has doubled over the past 12 months. This trend is expected to continue, driving significant growth in fees for the bank.
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Egypt Maintains Record High Interest Rate Despite Slowing Inflation
Egypt opts for caution by keeping interest rates at an all-time high, despite a slowdown in inflation. The decision, announced by the Central Bank of Egypt 's Monetary Policy Committee, comes after a period of economic turbulence marked by a steep devaluation of the pound in March. While inflation slowed in April, it remains elevated, prompting the central bank to maintain its tight monetary policy stance to anchor inflation expectations. This move is likely to be welcomed by investors and international organizations like the International Monetary Fund , as Egypt continues to navigate its economic recovery.
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Saudi Fintech's IPO Generates $29 Billion in Orders
Rasan Information Technology Co.'s initial public offering (IPO) in Saudi Arabia attracts significant demand, with orders totaling $29 billion, oversubscribing the institutional investor portion by 129.1 times. The IPO, priced at the top of the range at 37 riyals per share, is set to raise 841 million riyals. This success follows a series of strong IPO performances in the Saudi market.
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Comera Pay Receives Approval to Drive UAE's Cashless Economy
UAE-based fintech firm, Comera Financial Holding , obtains preliminary approval from the Central Bank of The UAE for key financial licenses, enabling it to launch payment solutions that simplify transactions and enhance security. Leveraging advanced encryption, Comera Pay aims to accelerate digital payments, fostering financial inclusion and enriching the payments landscape in the UAE and beyond.
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Fils and AFS Partner to Drive Sustainable Finance and Climate Action
In a bid to integrate sustainability seamlessly into business operations, Fils , a UAE-based digital infrastructure provider, collaborates with Arab Financial Services (AFS), a digital payment solutions provider. Leveraging Fils's fintech technology and AFS's expertise, the partnership aims to improve customer journeys and financial transactions while tracking and mitigating emissions. This strategic alliance sets a new standard for responsible finance, empowering businesses to prioritize sustainability and take measurable action to tackle climate change.
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InvoiceMate and 24SEVEN: Revolutionizing SME Financing with Blockchain Solutions
InvoiceMate , a blockchain and AI-powered invoice financing platform, joins forces with retail technology provider 24SEVEN to offer innovative financial solutions to SMEs across the UAE. By leveraging blockchain technology and retail data, the partnership aims to streamline invoicing processes and enhance access to working capital for retailers and suppliers.
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Recommended by LinkedIn
Startup Roundup
Hambro Perks Spring Studios Invests in Bahrain’s Daleel: Accelerating Financial Inclusion in the MENA Region
Bahrain-based financial marketplace Daleel secures an undisclosed investment from Hambro Perks Spring Studios. Daleel is spearheaded by founders Dania Alshowaikh , PK . and Ridaa S. . This investment marks a significant milestone in Daleel's journey to revolutionize the financial services landscape in the MENA region. Founded in 2022, Daleel's platform facilitates financial product comparison for consumers and provides valuable insights for banks and financial institutions to enhance customer acquisition strategies.
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Egyptian fintech startup Mnzl raises USD 3.5 mn in funding round
Egyptian fintech startup MNZL closes a significant funding round of USD 3.5 million led by international and Africa-focused venture capital firms, including P1 Ventures , LocalGlobe and Ingressive Capital . Supported by a consortium of investors such as Flat6Labs and ChargeLink , Mnzl aims to enhance its local operations and advance its asset-backed lending technology. Co-founded by Sameh Saleh , Ahmed Dessouky , and Bassem E. , Mnzl offers a groundbreaking e-wallet platform for asset-backed lending, enabling users to leverage assets like homes and cars as collateral for accessing credit.
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e-finance Acquires Stakes in Al Ahly Momkn and EasyCash for Digital Payments
Egypt’s e-finance for Digital and Financial Investments expands its digital payments portfolio with acquisitions of minority stakes in Al Ahly Momkn For E-payments and easycash . These strategic moves align with Egypt’s Vision 2030 for digital transformation and aim to drive innovation in the country’s burgeoning fintech sector.
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Jordan’s liwwa secures $5 million loan from DFC
Jordan-based fintech liwwa has secured a $5 million loan from the U.S. International Development Finance Corporation . Founded by Ahmed Moor and Samer Atiani, liwwa connects investors and small businesses through smart business loans. This funding will enable liwwa to further support SMEs across various sectors in Jordan.
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Abyan Capital Raises $18M in Series A Funding
Saudi Arabia-based Abyan Capital has raised $18 million in Series A funding. The round was led by STV , with participation from Wa'ed Ventures and RZM Investment Founded in 2022 by Abdullah Aljeraiwi , Omar Almania, PhD, CFA , and Saleh Alaqeel , Abyan Capital offers automated, Shariah-compliant investment and savings solutions. The funds will be used to enhance its platform, expand its financial product offerings, and accelerate market penetration.
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Lune Raises $1.5M Seed Round to Expand Financial Data Solutions
Dubai-based data analytics startup Lune® has raised $1.5 million in a seed round from Dubai Future District Fund , Plus VC (+VC) , JUDAH Ventures , as well as family offices and angel investors. Founded in 2020 by Helal Tariq Lootah and Alexandre Soued , Lune offers transaction data enrichment solutions for banks, fintechs, and financial institutions. The funding will enhance regional expansion and product development, supporting Lune's mission to revolutionize the financial services landscape by turning customer transaction data into actionable insights.
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