Standard Chartered expects its revenue from the Middle East and Africa region to maintain a mid-single digit growth trajectory over the next five years as the growth potential of the region remains intact, despite economic slowdown this year, the bank's regional chief executive has said.
The London-based lender expects all segments of its business to perform well.
The non-oil sector of major economies such as Saudi Arabia and the UAE, as well as markets in Africa, remain in expansion mode that will continue to drive its top-line growth, Sunil Kaushal told The National on Tuesday.
“We are looking at a healthy underlying growth, mid-single digit … that's what we'll deliver as a group, about 5 to 7 per cent,” he said on the sidelines of the International Monetary Fund and World Bank annual meetings in Marrakesh.
“We spoke about Saudi Arabia, we spoke about [the] UAE, we've had very good growth in parts of southern Africa, and East Africa has been pretty good [as well] … so I think it's been overall a pretty decent performance.”
Standard Chartered remains focused on growing its business in the region, which is vital for the emerging market-focused lenders’ global growth agenda.
The UAE, the Arab world’s second-largest economy, is among the top three global markets for Standard Chartered and the broader Middle East Africa accounts for about 20 per cent of the bank’s total global revenue, Mr Kaushal said.
Last year, the lender reported a 25 per cent jump in its underlying profit to $937 million on a constant currency basis as operating income jumped 14 per cent to $2.6 billion.
The drop in the pace of economic expansion in the region this year is largely underpinned by the slowdown in the oil sector as Opec push for caps on production to stabilise the global energy market, he said.
The regional economies, especially those in the six-member economic bloc of the GCC were due for moderation after an exceptional 2022 with Saudi Arabia growing at about 9 per cent last year.
“It's the base year effect in these markets,” Mr Kaushal said. “But, if you look at activity on the ground [for example] in Saudi Arabia, investment is still going on under the Vision 2030 programme.”
The market in the UAE continues to be very strong and after post-World Cup moderation, Qatar is also expected to see accelerated growth next year, he added.
Growth in the Middle East and North African economies is expected to slow sharply this year as the regional oil exporters continue to cap crude production amid stiff global economic headwinds, according to the World Bank.
Aggregate economic growth in Mena markets is expected to drop to 1.9 per cent in 2023, sharply down from the 6 per cent gross domestic product expansion recorded last year, the World Bank said in its Mena Economic Update earlier this month.
The latest forecast is lower than the Washington-based lender’s 3 per cent Mena growth projection released in April.
Economies in the GCC, which accounts for about a third of the world’s proven oil reserves, grew sharply in 2022 when oil prices surged after Russia invaded Ukraine. They are expected to expand by 1 per cent this year after 7.3 per cent GDP growth in 2022, according to the World Bank.
Standard Chartered is closely monitoring the economic slowdown as well the direction of oil prices amid a rise in geopolitical uncertainties in the region, Mr Kaushal said.
Last year, the bank announced its complete exit from seven markets: Angola, Cameroon, Gambia, Jordan, Lebanon, Sierra Leone and Zimbabwe and said it would shut its consumer, private and business banking in Tanzania and Cote d’Ivoire.
Standard Chartered does not plan to exit other regional markets and it remains focused on investing in existing markets to accelerate growth, according to Mr Kaushal.
The lender is setting up a wealth management centre in the UAE, which will be the third largest in the world after Hong Kong and Singapore.
“We are investing on the ground as performance has been good. Our business model has been resilient,” he said.
The bank is also keen to boost its business in Saudi Arabia to capitalise on opportunities created by the overarching Vision 2030 programme as the kingdom continues to overhaul its economy.
It also plans to launch operations in Egypt, the most populous Arab nation, next month, as it remains bullish on long-term growth prospects of the market, despite current economic headwinds in the country, Mr Kaushal said.
“It's under [economic] stress … but you know, we're going there for the next 50 to 100 years,” he added.
With growth plans for Saudi Arabia and the launch of Egyptian operations, the bank has its “hands full” however, it keeps “reviewing markets” for further expansion.
Mr Kaushal is also bullish on prospects of growth in Africa, where it sees potential for expansion of its trade finance business amid a push for a single market under the African Continental Free Trade Area (AfCFTA) pact.
Standard Chartered expects Africa’s total exports to reach $952 billion by 2035 and AfCFTA will increase that number by 29 per cent. With greater connectivity, intra-Africa trade is expected to reach $140 billion by the middle of next decade, accounting for 15 per cent of Africa’s total exports, the bank said in its Future of Trade: Africa report on Wednesday.
Africa’s trade corridors with some of the world’s fastest-growing regions including South Asia and the Middle East also bode well for the region’s growth prospects, with their combined trade volume expected to reach almost $200 billion by 2035.
The bank also sees exponential growth in the sustainable financing business in the region as both government and private sector clients push for green funding options.
“There are new technologies coming and more investments are going into hydrogen, more investments are going into solar. You've never seen before that sort of investment,” he said.
“The diversification is real, and that's what is very exciting.”
if you go
The flights
Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes.
The hotels
Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes.
When to visit
March-May and September-November
Visas
Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.
I Care A Lot
Directed by: J Blakeson
Starring: Rosamund Pike, Peter Dinklage
3/5 stars
Company profile
Date started: December 24, 2018
Founders: Omer Gurel, chief executive and co-founder and Edebali Sener, co-founder and chief technology officer
Based: Dubai Media City
Number of employees: 42 (34 in Dubai and a tech team of eight in Ankara, Turkey)
Sector: ConsumerTech and FinTech
Cashflow: Almost $1 million a year
Funding: Series A funding of $2.5m with Series B plans for May 2020
Bookshops: A Reader's History by Jorge Carrión (translated from the Spanish by Peter Bush),
Biblioasis
The Great Derangement: Climate Change and the Unthinkable
Amitav Ghosh, University of Chicago Press
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Australia tour of Pakistan
March 4-8: First Test, Rawalpindi
March 12-16: Second Test, Karachi
March 21-25: Third Test, Lahore
March 29: First ODI, Rawalpindi
March 31: Second ODI, Rawalpindi
April 2: Third ODI, Rawalpindi
April 5: T20I, Rawalpindi
Getting%20there
%3Cp%3EGiven%20its%20remote%20location%2C%20getting%20to%20Borneo%20can%20feel%20daunting%20even%20for%20the%20most%20seasoned%20traveller.%20But%20you%20can%20fly%20directly%20from%20Kuala%20Lumpur%20to%20Sandakan%20and%20Sepilok%20is%20only%20half%20an%20hour%20away%20by%20taxi.%20Sandakan%20has%20plenty%20of%20accommodation%20options%2C%20while%20Sepilok%20has%20a%20few%20nature%20lodges%20close%20to%20the%20main%20attractions.%3C%2Fp%3E%0A
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
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
UAE currency: the story behind the money in your pockets
Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
The most expensive investment mistake you will ever make
When is the best time to start saving in a pension? The answer is simple – at the earliest possible moment. The first pound, euro, dollar or dirham you invest is the most valuable, as it has so much longer to grow in value. If you start in your twenties, it could be invested for 40 years or more, which means you have decades for compound interest to work its magic.
“You get growth upon growth upon growth, followed by more growth. The earlier you start the process, the more it will all roll up,” says Chris Davies, chartered financial planner at The Fry Group in Dubai.
This table shows how much you would have in your pension at age 65, depending on when you start and how much you pay in (it assumes your investments grow 7 per cent a year after charges and you have no other savings).
|
Age
|
$250 a month
|
$500 a month
|
$1,000 a month
|
|
25
|
$640,829
|
$1,281,657
|
$2,563,315
|
|
35
|
$303,219
|
$606,439
|
$1,212,877
|
|
45
|
$131,596
|
$263,191
|
$526,382
|
|
55
|
$44,351
|
$88,702
|
$177,403
|
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
How do Sim card scams work?
Sim swap frauds are a form of identity theft.
They involve criminals conning mobile phone operators into issuing them with replacement Sim cards by claiming to be the victim, often pretending their phone has been lost or stolen in order to secure a new Sim.
They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.
The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.
MATCH INFO
Chelsea 1 (Hudson-Odoi 90 1')
Manchester City 3 (Gundogan 18', Foden 21', De Bruyne 34')
Man of the match: Ilkay Gundogan (Man City)
'C'mon C'mon'
Director:Mike Mills
Stars:Joaquin Phoenix, Gaby Hoffmann, Woody Norman
Rating: 4/5
Bio
Age: 25
Town: Al Diqdaqah – Ras Al Khaimah
Education: Bachelors degree in mechanical engineering
Favourite colour: White
Favourite place in the UAE: Downtown Dubai
Favourite book: A Life in Administration by Ghazi Al Gosaibi.
First owned baking book: How to Be a Domestic Goddess by Nigella Lawson.
Global state-owned investor ranking by size
|
1.
|
United States
|
|
2.
|
China
|
|
3.
|
UAE
|
|
4.
|
Japan
|
|
5
|
Norway
|
|
6.
|
Canada
|
|
7.
|
Singapore
|
|
8.
|
Australia
|
|
9.
|
Saudi Arabia
|
|
10.
|
South Korea
|
PAKISTAN SQUAD
Abid Ali, Fakhar Zaman, Imam-ul-Haq, Shan Masood, Azhar Ali (test captain), Babar Azam (T20 captain), Asad Shafiq, Fawad Alam, Haider Ali, Iftikhar Ahmad, Khushdil Shah, Mohammad Hafeez, Shoaib Malik, Mohammad Rizwan (wicketkeeper), Sarfaraz Ahmed (wicketkeeper), Faheem Ashraf, Haris Rauf, Imran Khan, Mohammad Abbas, Mohammad Hasnain, Naseem Shah, Shaheen Afridi, Sohail Khan, Usman Shinwari, Wahab Riaz, Imad Wasim, Kashif Bhatti, Shadab Khan and Yasir Shah.
TV: World Cup Qualifier 2018 matches will be aired on on OSN Sports HD Cricket channel
Company%20profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Ogram%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Karim%20Kouatly%20and%20Shafiq%20Khartabil%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20On-demand%20staffing%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2050%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3EMore%20than%20%244%20million%3Cbr%3E%3Cstrong%3EFunding%20round%3A%3C%2Fstrong%3E%20Series%20A%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EGlobal%20Ventures%2C%20Aditum%20and%20Oraseya%20Capital%3Cbr%3E%3C%2Fp%3E%0A
UAE and Russia in numbers
UAE-Russia ties stretch back 48 years
Trade between the UAE and Russia reached Dh12.5 bn in 2018
More than 3,000 Russian companies are registered in the UAE
Around 40,000 Russians live in the UAE
The number of Russian tourists travelling to the UAE will increase to 12 percent to reach 1.6 million in 2023
MATCH INFO
Real Madrid 2
Vinicius Junior (71') Mariano (90 2')
Barcelona 0
UAE currency: the story behind the money in your pockets
MATCH INFO
Tottenham Hotspur 3 (Son 1', Kane 8' & 16') West Ham United 3 (Balbuena 82', Sanchez og 85', Lanzini 90' 4)
Man of the match Harry Kane
OPTA'S PREDICTED TABLE
1. Liverpool 101 points
2. Manchester City 80
3. Leicester 67
4. Chelsea 63
5. Manchester United 61
6. Tottenham 58
7. Wolves 56
8. Arsenal 56
9. Sheffield United 55
10. Everton 50
11. Burnley 49
12. Crystal Palace 49
13. Newcastle 46
14. Southampton 44
15. West Ham 39
16. Brighton 37
17. Watford 36
18. Bournemouth 36
19. Aston Villa 32
20. Norwich City 29
