The revenue of UAE banks is expected to surge by 52 per cent to about $25 billion by 2030, with digital transformation playing a key role in boosting operations and customer services, the chairman of the institutions' professional representative body said.
The Emirates' “robust” banking sector will remain healthy and stable in the long term, and the effect of financial technology is evident in the changing trends over the past years, Abdulaziz Al Ghurair, chairman of the UAE Banks Federation, said in a keynote at the inaugural Abu Dhabi Finance Week on Tuesday.
The share of cash in payments declined to 20 per cent in 2021 from 69 per cent, while the number of digital accounts jumped. They comprised 51 per cent of all bank accounts in 2021 from 7 per cent in 2018, Mr Al Ghurair said, quoting figures from the Central Bank of the UAE.
Among the UAE's largest and leading banks, about 95 per cent of banking transactions are now done digitally, with mobile banking comprising “well over” 90 per cent of activity, he said.
The UAE is already the “undisputed” top financial hub in the Middle East and one of the top seven globally, he said, and the industry has invested heavily in technology to boost customer bases and bottom line to keep in step with an economy undergoing a rapid digital transformation.
“Changing customer needs have triggered a significant digital transformation across banks. This has resulted in a significant upgrade across ... banks' end-to-end and digital channels to deliver superior customer experience,” Mr Al Ghurair said.
“As a result of all these changes, we have seen digital adaptation increase ... this positive momentum and investments in technology [means UAE banks are] well positioned for the future.”
The UAE has long championed the critical role digital transformation plays in its economy and society as the country positions itself as a global hub for innovation.
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The banking and financial sector is poised to be one of the main benefactors of this shift, given the critical role it plays in the economy and the opportunities it brings to entrepreneurship.
GCC banks have been projected to recover almost to pre-pandemic levels in 2022 starting in 2023, S&P Global Ratings said in its latest report last week.
FinTech, meanwhile, remained the highest funded sector across emerging venture markets — which includes the Middle East — in the first half of 2022, more than tripling to almost $1.68bn in the first half of 2022 from a year ago, start-up data platform Magnitt said in a recent study.
Banks in the UAE have also gone beyond their boundaries to create a more inclusive FinTech environment. As a result, funding for FinTech companies leapt more than threefold to $310 million in 2021 from $92m in 2017, Mr Al Ghurair said.
“Strong digital and financial capabilities will give banks opportunities to expand their model,” he said.
Digital trends are set to continue and grow further in the financial sector, and this means more customer data that needs to be processed and protected.
Banks are addressing this by ramping up their talent pool, hiring designers, engineers and data scientists, Mr Al Ghurair said.
“Managing and using data effectively will become a competitive advantage for banks,” he said.
Changing customer needs have triggered a significant digital transformation across banks. This has resulted in a significant upgrade across ... banks' end-to-end and digital channels to deliver superior customer experience
Abdulaziz Al Ghurair,
chairman of the UAE Banks Federation
The changing landscape will require the financial system and its players to constantly adapt, requiring “continued adjustment of their operating models”.
“Digitisation is now mainstream across all products and segments ... it will continue to be on the rise, and data will be essential for banks to raise their capabilities,” Mr Al Ghurair said.
As a consequence, the number of physical bank branches have declined, down about a third to 581 in 2022 from 823 in 2018.
However, this is a necessary step, as “we need to fundamentally restructure our operating model and reducing our branch network is only the first step”, Mr Al Ghurair said.
Mr Al Ghurair credited the UAE financial system's strength to the efforts of the Abu Dhabi Global Market and the Dubai International Financial Centres, which regulate the industry in their respective emirates and who have a positive effect throughout the country.
Combined, there are more than 7,100 businesses that have licences and about 44,000 employees at the two hubs, with more than 22,000 working in the banking sector alone.
“Collaboration with various stakeholders in the ecosystem will unlock greater value for the industry and unleash innovative solutions for UAE customers,” Mr Al Ghurair said.
The biog
Birthday: February 22, 1956
Born: Madahha near Chittagong, Bangladesh
Arrived in UAE: 1978
Exercise: At least one hour a day on the Corniche, from 5.30-6am and 7pm to 8pm.
Favourite place in Abu Dhabi? “Everywhere. Wherever you go, you can relax.”
If you go
The flights
There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.
The trip
Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.
The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.
Sanju
Produced: Vidhu Vinod Chopra, Rajkumar Hirani
Director: Rajkumar Hirani
Cast: Ranbir Kapoor, Vicky Kaushal, Paresh Rawal, Anushka Sharma, Manish’s Koirala, Dia Mirza, Sonam Kapoor, Jim Sarbh, Boman Irani
Rating: 3.5 stars
UAE SQUAD FOR ASIAN JIU-JITSU CHAMPIONSHIP
Men’s squad: Faisal Al Ketbi, Omar Al Fadhli, Zayed Al Kathiri, Thiab Al Nuaimi, Khaled Al Shehhi, Mohamed Ali Al Suwaidi, Farraj Khaled Al Awlaqi, Muhammad Al Ameri, Mahdi Al Awlaqi, Saeed Al Qubaisi, Abdullah Al Qubaisi and Hazaa Farhan
Women's squad: Hamda Al Shekheili, Shouq Al Dhanhani, Balqis Abdullah, Sharifa Al Namani, Asma Al Hosani, Maitha Sultan, Bashayer Al Matrooshi, Maha Al Hanaei, Shamma Al Kalbani, Haya Al Jahuri, Mahra Mahfouz, Marwa Al Hosani, Tasneem Al Jahoori and Maryam Al Amri
WHAT%20MACRO%20FACTORS%20ARE%20IMPACTING%20META%20TECH%20MARKETS%3F
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The specs: 2018 Mitsubishi Eclipse Cross
Price, base / as tested: Dh101,140 / Dh113,800
Engine: Turbocharged 1.5-litre four-cylinder
Power: 148hp @ 5,500rpm
Torque: 250Nm @ 2,000rpm
Transmission: Eight-speed CVT
Fuel consumption, combined: 7.0L / 100km
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Off-roading in the UAE: How to checklist
First Person
Richard Flanagan
Chatto & Windus
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
'Midnights'
%3Cp%3E%3Cstrong%3EArtist%3A%3C%2Fstrong%3E%20Taylor%20Swift%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ELabel%3A%3C%2Fstrong%3E%20Republic%20Records%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Carzaty%2C%20now%20Kavak%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%20%3C%2Fstrong%3ECarzaty%20launched%20in%202018%2C%20Kavak%20in%20the%20GCC%20launched%20in%202022%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%20140%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Automotive%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3ECarzaty%20raised%20%246m%20in%20equity%20and%20%244m%20in%20debt%3B%20Kavak%20plans%20%24130m%20investment%20in%20the%20GCC%3C%2Fp%3E%0A
Company profile
Name: Steppi
Founders: Joe Franklin and Milos Savic
Launched: February 2020
Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year
Employees: Five
Based: Jumeirah Lakes Towers, Dubai
Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings
Second round raised Dh720,000 from silent investors in June this year
Building boom turning to bust as Turkey's economy slows
Deep in a provincial region of northwestern Turkey, it looks like a mirage - hundreds of luxury houses built in neat rows, their pointed towers somewhere between French chateau and Disney castle.
Meant to provide luxurious accommodations for foreign buyers, the houses are however standing empty in what is anything but a fairytale for their investors.
The ambitious development has been hit by regional turmoil as well as the slump in the Turkish construction industry - a key sector - as the country's economy heads towards what could be a hard landing in an intensifying downturn.
After a long period of solid growth, Turkey's economy contracted 1.1 per cent in the third quarter, and many economists expect it will enter into recession this year.
The country has been hit by high inflation and a currency crisis in August. The lira lost 28 per cent of its value against the dollar in 2018 and markets are still unconvinced by the readiness of the government under President Recep Tayyip Erdogan to tackle underlying economic issues.
The villas close to the town centre of Mudurnu in the Bolu region are intended to resemble European architecture and are part of the Sarot Group's Burj Al Babas project.
But the development of 732 villas and a shopping centre - which began in 2014 - is now in limbo as Sarot Group has sought bankruptcy protection.
It is one of hundreds of Turkish companies that have done so as they seek cover from creditors and to restructure their debts.
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
Start times
5.55am: Wheelchair Marathon Elites
6am: Marathon Elites
7am: Marathon Masses
9am: 10Km Road Race
11am: 4Km Fun Run
Fixtures and results:
Wed, Aug 29:
- Malaysia bt Hong Kong by 3 wickets
- Oman bt Nepal by 7 wickets
- UAE bt Singapore by 215 runs
Thu, Aug 30: UAE v Nepal; Hong Kong v Singapore; Malaysia v Oman
Sat, Sep 1: UAE v Hong Kong; Oman v Singapore; Malaysia v Nepal
Sun, Sep 2: Hong Kong v Oman; Malaysia v UAE; Nepal v Singapore
Tue, Sep 4: Malaysia v Singapore; UAE v Oman; Nepal v Hong Kong
Thu, Sep 6: Final
Mohammed bin Zayed Majlis
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Quick%20facts
%3Cul%3E%0A%3Cli%3EStorstockholms%20Lokaltrafik%20(SL)%20offers%20free%20guided%20tours%20of%20art%20in%20the%20metro%20and%20at%20the%20stations%3C%2Fli%3E%0A%3Cli%3EThe%20tours%20are%20free%20of%20charge%3B%20all%20you%20need%20is%20a%20valid%20SL%20ticket%2C%20for%20which%20a%20single%20journey%20(valid%20for%2075%20minutes)%20costs%2039%20Swedish%20krone%20(%243.75)%3C%2Fli%3E%0A%3Cli%3ETravel%20cards%20for%20unlimited%20journeys%20are%20priced%20at%20165%20Swedish%20krone%20for%2024%20hours%3C%2Fli%3E%0A%3Cli%3EAvoid%20rush%20hour%20%E2%80%93%20between%209.30%20am%20and%204.30%20pm%20%E2%80%93%20to%20explore%20the%20artwork%20at%20leisure%3C%2Fli%3E%0A%3C%2Ful%3E%0A
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