Lack of funds hinder Saudi scale-ups:
Small-to-medium-sized companies (SMEs) in Saudi Arabia looking to take the next step in the growth of their businesses often struggle due to a lack of funding options in the Kingdom, a report found.
Saudi Arabia has an underdeveloped private equity and venture capital market compared to other countries in the region and the banks remain wary of lending to these so-called “scale-up” businesses, according to research published on Tuesday by consultancy Strategy& and Endeavor — an entrepreneur mentorship provider based in New York.
Scale-ups are defined as SMEs with proven business models on the verge of a phase of rapid growth in revenue or staff numbers. Typically they account for 5 percent of a country’s SMEs, the report said.
Wednesday, 12 December 2018
Gulf must brace for long-term low oil price
Gulf must brace for long-term low oil price:
Gulf states which depend heavily on energy exports for most of their revenues should brace for a long period of low oil prices and subdued economic growth, experts warned on Wednesday.
Signs of an "economic war" between the US and China, the world's largest economies, and an expected global economic slowdown starting next year will dampen demand for oil, the experts told a conference in Dubai.
"Oil prices will remain low for a long period," former Lebanese minister of economy and trade Nasser Saidi told the one-day Arab Strategy Forum.
Gulf states which depend heavily on energy exports for most of their revenues should brace for a long period of low oil prices and subdued economic growth, experts warned on Wednesday.
Signs of an "economic war" between the US and China, the world's largest economies, and an expected global economic slowdown starting next year will dampen demand for oil, the experts told a conference in Dubai.
"Oil prices will remain low for a long period," former Lebanese minister of economy and trade Nasser Saidi told the one-day Arab Strategy Forum.
QFMA vision for upgrading #Qatar’s capital market
QFMA vision for upgrading Qatar’s capital market:
Qatar Financial Markets Authority (QFMA) works on implementing its duties as was stipulated in Law No (8) of 2012 and its vision, which focuses on upgrading Qatar’s capital markets to serve as a model in financial services.
It also aims to maintain the stability, integrity and transparency of capital markets, as well as develop the skills and knowledge to support the growth and diversification of the national economy.
QFMA announced, on the occasion of the National Day 2018, a number of measures, including the approval of Qatar Aluminum Manufacturing Company’s (Qamco) Initial Public Offering (IPO), the introduction of unified listing rules and a new system of governance of funds listed on the Qatar Stock Exchange to consult all stakeholders through its official website.
Qatar Financial Markets Authority (QFMA) works on implementing its duties as was stipulated in Law No (8) of 2012 and its vision, which focuses on upgrading Qatar’s capital markets to serve as a model in financial services.
It also aims to maintain the stability, integrity and transparency of capital markets, as well as develop the skills and knowledge to support the growth and diversification of the national economy.
QFMA announced, on the occasion of the National Day 2018, a number of measures, including the approval of Qatar Aluminum Manufacturing Company’s (Qamco) Initial Public Offering (IPO), the introduction of unified listing rules and a new system of governance of funds listed on the Qatar Stock Exchange to consult all stakeholders through its official website.
Late Reversal Sends Oil Lower as Bulls Can't Kill Fears of Glut - Bloomberg
Late Reversal Sends Oil Lower as Bulls Can't Kill Fears of Glut - Bloomberg:
Oil gave up all of its gains in the last half hour of trading and skidded to a loss as a smaller-than-expected decline in U.S. crude stockpiles revived fears of a global glut.
Futures in New York settled 1 percent lower on Wednesday. A warning from Iran about discord among OPEC members added to worries that major oil exporters won’t succeed with last week’s pledge to curtail output.
The U.S. Energy Information Administration said earlier in the day that American crude inventories had fallen 1.21 million barrels, well below the 10.2 million cited in an industry report Tuesday that had raised oil bulls’ hopes. While record U.S. gasoline exports kept prices higher for at time, sellers gained momentum as trading drew to a close.
Oil gave up all of its gains in the last half hour of trading and skidded to a loss as a smaller-than-expected decline in U.S. crude stockpiles revived fears of a global glut.
Futures in New York settled 1 percent lower on Wednesday. A warning from Iran about discord among OPEC members added to worries that major oil exporters won’t succeed with last week’s pledge to curtail output.
The U.S. Energy Information Administration said earlier in the day that American crude inventories had fallen 1.21 million barrels, well below the 10.2 million cited in an industry report Tuesday that had raised oil bulls’ hopes. While record U.S. gasoline exports kept prices higher for at time, sellers gained momentum as trading drew to a close.
#Qatar's CBQ Has Plan B to Boost Buffers If UAB Stake Sale Fails - Bloomberg
Qatar's CBQ Has Plan B to Boost Buffers If UAB Stake Sale Fails - Bloomberg:
Commercial Bank of Qatar plans to use retained earnings to bolster capital if it can’t sell its stake in a United Arab Emirates-based bank, Chief Executive Officer Joseph Abraham said.
Qatar’s third-largest lender by assets has one of the weakest capital buffers among publicly traded banks in the gas-rich country, according to data compiled by Bloomberg. Abraham said in an interview that CBQ, as the Doha-based bank is known, plans to raise the so-called common equity Tier 1 ratio to as much as 11.5 percent from the current level of 9.7 percent.
“I’d say over the next one year to 18 months we should be getting to that position,” he said in Doha.
Commercial Bank of Qatar plans to use retained earnings to bolster capital if it can’t sell its stake in a United Arab Emirates-based bank, Chief Executive Officer Joseph Abraham said.
Qatar’s third-largest lender by assets has one of the weakest capital buffers among publicly traded banks in the gas-rich country, according to data compiled by Bloomberg. Abraham said in an interview that CBQ, as the Doha-based bank is known, plans to raise the so-called common equity Tier 1 ratio to as much as 11.5 percent from the current level of 9.7 percent.
“I’d say over the next one year to 18 months we should be getting to that position,” he said in Doha.
Middle East Market Risks for 2019: Saudi Politics, Oil, and Wars - Bloomberg
Middle East Market Risks for 2019: Saudi Politics, Oil, and Wars - Bloomberg:
The list of potential pitfalls for Middle East investors next year is long.
With oil in a bear market, pressure on energy exporters is mounting. Saudi Arabia’s global standing is being questioned and Washington has turned its back on Iran, opening the way for increased -- and some say destabilizing -- Russian influence.
The region has never been for the faint-hearted. Traders who snapped up Saudi assets in the first half of the year, only to see the market turn against them after the murder of columnist Jamal Khashoggi in Istanbul, are nursing steep losses. Bahrain’s friends only bailed out the nation after its bonds got a battering and Aramco’s postponed share sale has dealt a blow to investor confidence.
The list of potential pitfalls for Middle East investors next year is long.
With oil in a bear market, pressure on energy exporters is mounting. Saudi Arabia’s global standing is being questioned and Washington has turned its back on Iran, opening the way for increased -- and some say destabilizing -- Russian influence.
The region has never been for the faint-hearted. Traders who snapped up Saudi assets in the first half of the year, only to see the market turn against them after the murder of columnist Jamal Khashoggi in Istanbul, are nursing steep losses. Bahrain’s friends only bailed out the nation after its bonds got a battering and Aramco’s postponed share sale has dealt a blow to investor confidence.
OPEC Data Suggest Deeper Supply Cut May Be Needed in Late 2019 - Bloomberg
OPEC Data Suggest Deeper Supply Cut May Be Needed in Late 2019 - Bloomberg:
Production cuts agreed by OPEC and its allies are on track to balance global oil markets in the first half of 2019, but more work may be needed after that.
If Saudi Arabia, Russia and other countries in the so-called OPEC+ coalition cut production by 1.2 million barrels day as promised for the first six months of next year, world supply and demand will be in equilibrium. However, booming U.S. shale supplies mean they would need to almost double the cutback to prevent a new surplus in the fourth quarter, a report from the group showed.
Oil prices remain stuck in a bear market, trading just above $60 a barrel in London, even though the Organization of Petroleum Exporting Countries and its partners surprised traders with the size of the supply reduction announced on Dec. 7. Traders remain concerned that record American oil production and shaky fuel consumption could foment a new glut.
Production cuts agreed by OPEC and its allies are on track to balance global oil markets in the first half of 2019, but more work may be needed after that.
If Saudi Arabia, Russia and other countries in the so-called OPEC+ coalition cut production by 1.2 million barrels day as promised for the first six months of next year, world supply and demand will be in equilibrium. However, booming U.S. shale supplies mean they would need to almost double the cutback to prevent a new surplus in the fourth quarter, a report from the group showed.
Oil prices remain stuck in a bear market, trading just above $60 a barrel in London, even though the Organization of Petroleum Exporting Countries and its partners surprised traders with the size of the supply reduction announced on Dec. 7. Traders remain concerned that record American oil production and shaky fuel consumption could foment a new glut.
#UAE's Agthia looking at acquisitions in bid to hit 2020 revenue target, CEO says | ZAWYA MENA Edition
UAE's Agthia looking at acquisitions in bid to hit 2020 revenue target, CEO says | ZAWYA MENA Edition:
Abu Dhabi-based food group Agthia is studying potential acquisition targets in order to help it meet a target set by its chairman of reaching $1 billion in revenue by the end of 2020, its CEO has said.
The target, which was reiterated in the company’s 2017 annual report by chairman Dhafer Ayed Al Ahbabi, is some way off being met as things stand, with revenue for the first nine months of 2018 declining by 5.2 percent to almost 1.49 billion dirhams ($405.7 million).
“Definitely, I think to hit that particular milestone in the year 2020, it might slip a little bit based on the current economic situation,” Tariq Al Wahedi told Zawya in an interview at the company’s headquarters in Abu Dhabi last month. “It also depends on how soon we can find our M&A targets as well – whether we find the right targets.”
Abu Dhabi-based food group Agthia is studying potential acquisition targets in order to help it meet a target set by its chairman of reaching $1 billion in revenue by the end of 2020, its CEO has said.
The target, which was reiterated in the company’s 2017 annual report by chairman Dhafer Ayed Al Ahbabi, is some way off being met as things stand, with revenue for the first nine months of 2018 declining by 5.2 percent to almost 1.49 billion dirhams ($405.7 million).
“Definitely, I think to hit that particular milestone in the year 2020, it might slip a little bit based on the current economic situation,” Tariq Al Wahedi told Zawya in an interview at the company’s headquarters in Abu Dhabi last month. “It also depends on how soon we can find our M&A targets as well – whether we find the right targets.”
Draft MoU against corruption in Saudi Arabia | ZAWYA MENA Edition
Draft MoU against corruption in Saudi Arabia | ZAWYA MENA Edition:
The Council of Ministers on Tuesday authorized president of the National Anti-Corruption Commission or his deputy to discuss with the United Nations Development Program (UNDP) about preparing a draft memorandum of understanding (MoU) between the two sides in a project for risk management against corruption in government agencies.
The commission is tasked with submitting the MoU to the Cabinet for completing the legal procedures.
The Council of Ministers hoped that the King Salman Energy Park (SPARK) project in the Eastern Province would propel the Kingdom’s position as a regional and global energy hub by developing a competitive Saudi industries and services sector at the international level.
The Council of Ministers on Tuesday authorized president of the National Anti-Corruption Commission or his deputy to discuss with the United Nations Development Program (UNDP) about preparing a draft memorandum of understanding (MoU) between the two sides in a project for risk management against corruption in government agencies.
The commission is tasked with submitting the MoU to the Cabinet for completing the legal procedures.
The Council of Ministers hoped that the King Salman Energy Park (SPARK) project in the Eastern Province would propel the Kingdom’s position as a regional and global energy hub by developing a competitive Saudi industries and services sector at the international level.
OPEC offsets Iran oil loss, sees lower 2019 demand | Reuters
OPEC offsets Iran oil loss, sees lower 2019 demand | Reuters:
OPEC said on Wednesday it had offset a drop in sanctions-hit Iranian oil exports and lowered the 2019 forecast of demand for its crude, underlining the challenge the producer group faces to prevent a glut even after last week’s decision to trim output.
In a monthly report, the Organization of the Petroleum Exporting Countries said 2019 demand for its crude would fall to 31.44 million barrels per day, 100,000 bpd less than predicted last month and 1.53 million less than it currently produces.
Worried by a drop in oil prices and rising supplies, OPEC and its allies including Russia last week agreed to return to supply cuts next year. They pledged to lower output by 1.2 million bpd, of which OPEC’s share is 800,000 bpd.
OPEC said on Wednesday it had offset a drop in sanctions-hit Iranian oil exports and lowered the 2019 forecast of demand for its crude, underlining the challenge the producer group faces to prevent a glut even after last week’s decision to trim output.
In a monthly report, the Organization of the Petroleum Exporting Countries said 2019 demand for its crude would fall to 31.44 million barrels per day, 100,000 bpd less than predicted last month and 1.53 million less than it currently produces.
Worried by a drop in oil prices and rising supplies, OPEC and its allies including Russia last week agreed to return to supply cuts next year. They pledged to lower output by 1.2 million bpd, of which OPEC’s share is 800,000 bpd.
Fitch says killing of Khashoggi unlikely to affect Saudi rating | Reuters
Fitch says killing of Khashoggi unlikely to affect Saudi rating | Reuters:
Rating agency Fitch said the killing of Saudi journalist Jamal Khashoggi at the Saudi Arabian consulate in Istanbul is unlikely to affect its assessment of the kingdom’s credit risk.
Khashoggi, a royal insider turned critic of Saudi policy, was killed in the Saudi consulate in Istanbul on Oct. 2. He was a U.S. resident and columnist for The Washington Post and his death has provoked a political crisis in Saudi Arabia as well as a deterioration of its relations with Western allies.
Yields on Saudi bonds have risen since early October and the cost of insuring Saudi debt against default has increased by around 30 basis points.
Rating agency Fitch said the killing of Saudi journalist Jamal Khashoggi at the Saudi Arabian consulate in Istanbul is unlikely to affect its assessment of the kingdom’s credit risk.
Khashoggi, a royal insider turned critic of Saudi policy, was killed in the Saudi consulate in Istanbul on Oct. 2. He was a U.S. resident and columnist for The Washington Post and his death has provoked a political crisis in Saudi Arabia as well as a deterioration of its relations with Western allies.
Yields on Saudi bonds have risen since early October and the cost of insuring Saudi debt against default has increased by around 30 basis points.
Emirate of #Ajman plans debut international bond | Reuters
Emirate of Ajman plans debut international bond | Reuters:
Ajman, the smallest emirate in the seven-member UAE federation, plans to sell its first U.S. dollar-denominated bond next year, a government official told Reuters.
Governments in the Gulf have increasingly relied on foreign funding over the past few years as the region’s economy has slowed down following a slump in oil prices.
Should it go ahead with its plans, Ajman would be the fifth emirate to issue debt internationally after Dubai, Abu Dhabi, Sharjah and Ras Al Khaimah.
Ajman, the smallest emirate in the seven-member UAE federation, plans to sell its first U.S. dollar-denominated bond next year, a government official told Reuters.
Governments in the Gulf have increasingly relied on foreign funding over the past few years as the region’s economy has slowed down following a slump in oil prices.
Should it go ahead with its plans, Ajman would be the fifth emirate to issue debt internationally after Dubai, Abu Dhabi, Sharjah and Ras Al Khaimah.
House to hold hearings on Saudi Arabia next year: Engel | Reuters
House to hold hearings on Saudi Arabia next year: Engel | Reuters:
U.S. Representative Eliot Engel said on Wednesday the House Foreign Affairs Committee will hold hearings after the first of the year on all aspects of Saudi behavior, including the killing of Saudi journalist Jamal Khashoggi.
“We’ll let the chips fall where they may,” Engel, the presumptive chairman of the committee when Democrats take over Congress in January. “I think that we need to have an assessment of our relationship with Saudi Arabia.”
U.S. Representative Eliot Engel said on Wednesday the House Foreign Affairs Committee will hold hearings after the first of the year on all aspects of Saudi behavior, including the killing of Saudi journalist Jamal Khashoggi.
“We’ll let the chips fall where they may,” Engel, the presumptive chairman of the committee when Democrats take over Congress in January. “I think that we need to have an assessment of our relationship with Saudi Arabia.”
MIDEAST STOCKS-Emaar's leap lifts #Dubai, banks boost Egypt | Reuters
MIDEAST STOCKS-Emaar's leap lifts Dubai, banks boost Egypt | Reuters:
The Dubai stock market rose sharply on Wednesday, boosted by blue chip Emaar Properties, while Egypt gained for a third straight day on rebounding bank shares.
In Dubai, which has been languishing at five-year lows partly because of weak real estate prices, the index added 1.5 percent, its biggest gain in 2-1/2 months.
Emaar surged 6.4 percent, its largest rise since June 2017, after saying it had started business development operations in China. A cheap valuation, at 5.4 times trailing earnings, also encouraged buying back of the stock.
The Dubai stock market rose sharply on Wednesday, boosted by blue chip Emaar Properties, while Egypt gained for a third straight day on rebounding bank shares.
In Dubai, which has been languishing at five-year lows partly because of weak real estate prices, the index added 1.5 percent, its biggest gain in 2-1/2 months.
Emaar surged 6.4 percent, its largest rise since June 2017, after saying it had started business development operations in China. A cheap valuation, at 5.4 times trailing earnings, also encouraged buying back of the stock.
Saudi prince’s flagship plan beset by doubts after Khashoggi death | Financial Times
Saudi prince’s flagship plan beset by doubts after Khashoggi death | Financial Times:
When a business delegation met Crown Prince Mohammed bin Salman recently, they were surprised to hear a candid admission about Neom, his $500bn mega plan to turn virgin Saudi shoreline into a futuristic business hub.
“No one will invest [in the project] for years,” the de facto Saudi ruler said, according to a colleague of those in the meeting.
His comments were a recognition that the crisis triggered by the killing of Jamal Khashoggi threatens to undermine his bold plans to modernise the conservative kingdom with the backing of foreign capital and expertise.
When a business delegation met Crown Prince Mohammed bin Salman recently, they were surprised to hear a candid admission about Neom, his $500bn mega plan to turn virgin Saudi shoreline into a futuristic business hub.
“No one will invest [in the project] for years,” the de facto Saudi ruler said, according to a colleague of those in the meeting.
His comments were a recognition that the crisis triggered by the killing of Jamal Khashoggi threatens to undermine his bold plans to modernise the conservative kingdom with the backing of foreign capital and expertise.
What a Difference $10 Billion Aid Makes to Gulf's Weakest Link - Bloomberg
What a Difference $10 Billion Aid Makes to Gulf's Weakest Link - Bloomberg:
Bahrain and Oman are the most vulnerable economies in the Gulf, but one has a $10 billion bailout package and the other is on its own.
That’s why the bonds of Bahrain, whose dwindling foreign-currency reserves fueled concern this year that its currency’s peg to the dollar may be at risk, became 2018’s best performers in the six-nation Gulf Cooperation Council after Saudi Arabia and other rich allies came to the rescue in October.
The aid helped shrink the risk premium that investors demand to hold the island-state’s debt due 2028 over Oman’s to about 40 basis points from an all-time high of 346 basis points in June. That gap will probably narrow further as JPMorgan Chase & Co. starts to include Bahrain’s securities in its emerging-market bond indexes from the end of January.
Bahrain and Oman are the most vulnerable economies in the Gulf, but one has a $10 billion bailout package and the other is on its own.
That’s why the bonds of Bahrain, whose dwindling foreign-currency reserves fueled concern this year that its currency’s peg to the dollar may be at risk, became 2018’s best performers in the six-nation Gulf Cooperation Council after Saudi Arabia and other rich allies came to the rescue in October.
The aid helped shrink the risk premium that investors demand to hold the island-state’s debt due 2028 over Oman’s to about 40 basis points from an all-time high of 346 basis points in June. That gap will probably narrow further as JPMorgan Chase & Co. starts to include Bahrain’s securities in its emerging-market bond indexes from the end of January.
#Dubai Aerospace signs $535 mln revolving credit facility | Reuters
Dubai Aerospace signs $535 mln revolving credit facility | Reuters:
Dubai Aerospace Enterprise (DAE) said on Wednesday it signed a $535 million four-year unsecured revolving credit facility, inlcuding the option to increase to $600 million.
The deal was arranged by Dubai-based bank Emirates NBD as sole mandated lead arranger and bookrunner, DAE said in a statement on Wednesday.
The initial commitment of $535 million is from a group of eight regional banks, it said, adding the facility brings DAE’s total unsecured revolving credit facilities to $2.1 billion.
Dubai Aerospace Enterprise (DAE) said on Wednesday it signed a $535 million four-year unsecured revolving credit facility, inlcuding the option to increase to $600 million.
The deal was arranged by Dubai-based bank Emirates NBD as sole mandated lead arranger and bookrunner, DAE said in a statement on Wednesday.
The initial commitment of $535 million is from a group of eight regional banks, it said, adding the facility brings DAE’s total unsecured revolving credit facilities to $2.1 billion.
CNPC suspends investment in Iran's South Pars after U.S. pressure: sources | Reuters
CNPC suspends investment in Iran's South Pars after U.S. pressure: sources | Reuters:
China National Petroleum Corp (CNPC) has suspended investment in Iran’s South Pars natural gas project in response to U.S. pressure and to minimize tensions amid trade talks between Beijing and Washington, three Chinese state oil executives said.
South Pars is the world’s largest gas field and CNPC’s investment freeze is a blow to Tehran’s efforts to maintain financing for energy projects amid the re-imposition U.S. sanctions on its energy sector earlier this year.
Iran said on Nov. 25 that CNPC replaced Total (TOTF.PA) as the operator of Phase 11 project at South Pars after the French company ended its participation rather than violate the sanctions.
China National Petroleum Corp (CNPC) has suspended investment in Iran’s South Pars natural gas project in response to U.S. pressure and to minimize tensions amid trade talks between Beijing and Washington, three Chinese state oil executives said.
South Pars is the world’s largest gas field and CNPC’s investment freeze is a blow to Tehran’s efforts to maintain financing for energy projects amid the re-imposition U.S. sanctions on its energy sector earlier this year.
Iran said on Nov. 25 that CNPC replaced Total (TOTF.PA) as the operator of Phase 11 project at South Pars after the French company ended its participation rather than violate the sanctions.
Mideast Stocks: Real estate aids #Dubai, most of Gulf quiet | ZAWYA MENA Edition
Mideast Stocks: Real estate aids Dubai, most of Gulf quiet | ZAWYA MENA Edition:
Dubai's stock market recouped some losses early on Wednesday as most of its real estate stocks gained, while other major Middle Eastern markets were little changed.
In Dubai, the index added 0.6 percent with Emaar Properties rising 2.2 percent after saying it had started business development operations in China.
Outside the real estate sector, Takaful Emarat rose 3.6 percent after Goldilocks Investment, part of Abu Dhabi Financial Group, bought a 29.5 percent stake in the firm. Gulf Navigation climbed 2.9 percent after Goldilocks said earlier this week it had acquired a 18.32 percent stake.
Dubai's stock market recouped some losses early on Wednesday as most of its real estate stocks gained, while other major Middle Eastern markets were little changed.
In Dubai, the index added 0.6 percent with Emaar Properties rising 2.2 percent after saying it had started business development operations in China.
Outside the real estate sector, Takaful Emarat rose 3.6 percent after Goldilocks Investment, part of Abu Dhabi Financial Group, bought a 29.5 percent stake in the firm. Gulf Navigation climbed 2.9 percent after Goldilocks said earlier this week it had acquired a 18.32 percent stake.
Oil prices climb on OPEC-led supply cuts, Asian stock rally | Reuters
Oil prices climb on OPEC-led supply cuts, Asian stock rally | Reuters:
Oil prices rose by around 1 percent on Wednesday amid a stock market rebound and on expectations that an OPEC-led output cut for 2019 would stabilize the supply-demand balance.
Disruptions to Libyan crude exports after local militia seized the country’s biggest oilfield, El Sharara, were also buoying prices, traders said.
International Brent crude oil futures LCOc1 were at $60.84 per barrel at 0742 GMT, up 64 cents, or 1.1 percent, from their last close.
Oil prices rose by around 1 percent on Wednesday amid a stock market rebound and on expectations that an OPEC-led output cut for 2019 would stabilize the supply-demand balance.
Disruptions to Libyan crude exports after local militia seized the country’s biggest oilfield, El Sharara, were also buoying prices, traders said.
International Brent crude oil futures LCOc1 were at $60.84 per barrel at 0742 GMT, up 64 cents, or 1.1 percent, from their last close.
#UAE, Saudi Arabia using fintech for cross-border settlements | Reuters
UAE, Saudi Arabia using fintech for cross-border settlements | Reuters:
The United Arab Emirates and Saudi Arabia have started using fintech for cross-border settlements, including a digital currency which they jointly developed for that purpose, the UAE’s central bank governor said on Wednesday.
Mubarak Rashed al-Mansouri, speaking at a financial technology conference in Abu Dhabi, also said the UAE central bank was working on a strategic plan to develop fintech which would be supported by a legislative and regulatory framework.
Mansouri said fintech could play a major role in improving financial inclusion — the provision of affordable financial services across the economy — and noted that the legal mandate of the central bank now included fostering financial inclusion.
The United Arab Emirates and Saudi Arabia have started using fintech for cross-border settlements, including a digital currency which they jointly developed for that purpose, the UAE’s central bank governor said on Wednesday.
Mubarak Rashed al-Mansouri, speaking at a financial technology conference in Abu Dhabi, also said the UAE central bank was working on a strategic plan to develop fintech which would be supported by a legislative and regulatory framework.
Mansouri said fintech could play a major role in improving financial inclusion — the provision of affordable financial services across the economy — and noted that the legal mandate of the central bank now included fostering financial inclusion.
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