Digital economies require digital currencies. Technological developments and innovation have transformed the payment system landscape in the past decade, with an additional boost from the pandemic.
Personal, government and business payments shifted away from mainly cash to online and digital payments, embraced FinTech (eg, for financial market transactions, lending, wealth management), with tech companies such as Apple and Alibaba disintermediating banks.
Retail, wholesale, cross-border and financial payment systems now enable e-commerce and digital finance including digital assets and cryptocurrencies such as Bitcoin and Ethereum.
Data suggests there is substantial appetite for cryptocurrencies in the Middle East and North Africa: the region had the sixth largest crypto economy globally, with an estimated $389.8 billion in on-chain value received, in the year ending June 2023 (about 7.2 per cent of global transaction volumes).
Saudi Arabia reported the highest growth globally in the volume of cryptocurrency transactions during this period.
As the use of cash declines, central banks have been exploring the feasibility of establishing their own peer-to-peer payment systems through Central Bank Digital Currencies (CBDCs). Currently, about 134 countries and currency unions (representing 98 per cent of global gross domestic product) are exploring CBDCs, including 13 in the Arab world.
While many are in pilot stages, Bahrain, Saudi Arabia and the UAE have moved to the more advanced “proof-of-concept” stage.
Globally, three countries have launched a retail CBDC – the Bahamas, Jamaica and Nigeria – and a 2022 BIS survey forecasts there could be 15 retail and nine wholesale CBDCs publicly circulating in 2030.
A retail CBDC is used by the general public, while a wholesale CBDC is accessible only by financial and certain non-bank institutions.
In contrast to cryptocurrencies, which are mainly decentralised, CBDCs are digital cash, legal tender, issued by and a liability of the central bank. They are basic payment infrastructure for increasingly digital economies, enabling secure, efficient, monetary, financial and digital transactions.
The International Monetary Fund highlights the need to build trust in CBDCs through robust institutional, legal and technological safeguards to protect user privacy while ensuring compliance with anti-money laundering and combatting the financing of terrorism (AML/CFT) standards.
The successful implementation and adoption of CBDCs requires secure and inclusive public digital infrastructure to facilitate integration and competition between public and private payment providers.
The adoption requirements pose challenges for developing countries. There are large digital and financial divides across the Mena region, with only about two thirds of the population in the Arab states using the internet (in line with the global average). The wide disparities within the region reflect the economic and digitalisation divide between the oil-rich GCC and the non-oil countries.
Benefits for Mena region
The roll-out and use of CBDCs offer multiple macro and socio-economic benefits in the Mena region as the digital economy expands.
Firstly, for the developing nations subset, a retail CBDC could lead to greater financial inclusion. As per the Global Findex Database 2021, only 48 per cent of adults in the region (excluding high-income nations) have a financial account, about 23 percentage points lower compared to the developing economy average.
Secondly, CBDCs can be used for social transfers, for targeting subsidies as well as for payment of fees and taxes in an efficient and cost-effective manner.
Thirdly, for the more advanced nations such as the UAE and Saudi Arabia that aspire to be international financial centres, wholesale CBDCs would facilitate cross-border payments and settlement. Interoperability would enable greater adoption and usage of the CBDC, but this requires ongoing co-operation between central banks. This will ensure that differences in legislation and national standards for data handling or cyber security provisions can be aligned.
Fourthly, leveraging data derived from CBDC usage can be used to establish credit profiles to reduce lending gaps.
What needs to be done?
CBDCs need to be complemented by secure and inclusive digital public infrastructure, a cohesive, integrated digital network including digital ID, payments and data exchange.
This could be along the lines of a national digital ID (eg, India’s success with the Aadhar card), real time payment systems (eg, Thailand’s PromptPay, Brazil’s Pix or Egypt’s InstaPay) or integrated payment systems (eg, digital Yuan e-CNY pilot programme and integration with Hong Kong) among others.
Digital inclusion needs to be one of the pillars of a CBDC rollout, along with financial literacy and data protection integrated into the process. Effectively, CBDCs are public goods and require swifter action and implementation.
Will CBDCs accelerate de-dollarisation?
Following the visit of President Sheikh Mohamed to China, a joint statement by the Chinese and UAE central banks highlighted the role of CBDCs in enhancing cross-border trade and investment. The UAE had completed in late January its first cross-border payment using the digital dirham – a payment of Dh50 million to China using the BIS mBridge cross-border CBDC platform where both countries are participants.
Saudi Arabia joined the mBridge project on June 6.
These moves could result in an alternative to conducting cross-border transactions without depending on the dollar.
The UAE and Saudi Arabia’s successful Project Aber in 2020 to settle cross-border payments, and their co-operation under the mBridge project, can be seen as a stepping stone towards greater economic and financial integration in the wider GCC region.
Globally, the dollar’s dominance in transactions has been long-standing: according to SWIFT, it accounted for 47.37 per cent of total transaction value as of March. However, oil sales are also being transacted in non-dollar currencies including the Chinese yuan and the UAE dirham.
Weaponisation of the dollar (eg, via financial sanctions or freezing of assets and using the income on sanctioned assets) renders “risk-free” US assets risky, encouraging countries to reduce the share of dollar assets, including in international reserves.
The dollar in allocated reserves globally stood at 58.4 per cent as of end-2023, from around 70 per cent at the turn of the century, with central banks raising the share of non-traditional reserve currencies (including the yuan, Australian dollar, and the Nordic currencies among others) as opposed to euro, yen or pound.
There has also been a distinct shift to holding gold as a hedge instead, helping boost gold prices. A successful implementation of CBDCs could boost de-dollarisation – reduce the dependence on SWIFT and the use of dollars, thereby changing and challenging the current geopolitical financial topography.
Given the role of China as the world’s biggest trading nation, it is the yuan and the petro-yuan that will become the de facto Brics+ trade finance and payments currency.
Nasser Saidi is the president of Nasser Saidi and Associates. He was formerly Lebanon's economy minister and a vice-governor of the Central Bank of Lebanon
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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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
Mohammed bin Zayed Majlis
Titanium Escrow profile
Started: December 2016
Founder: Ibrahim Kamalmaz
Based: UAE
Sector: Finance / legal
Size: 3 employees, pre-revenue
Stage: Early stage
Investors: Founder's friends and Family
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The Specs
Price, base Dh379,000
Engine 2.9-litre, twin-turbo V6
Gearbox eight-speed automatic
Power 503bhp
Torque 443Nm
On sale now
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Killing of Qassem Suleimani
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
Rating: 4/5
Bob Honey Who Just Do Stuff
By Sean Penn
Simon & Schuster
THREE
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
A Long Way Home by Peter Carey
Faber & Faber
What is an FTO Designation?
FTO designations impose immigration restrictions on members of the organisation simply by virtue of their membership and triggers a criminal prohibition on knowingly providing material support or resources to the designated organisation as well as asset freezes.
It is a crime for a person in the United States or subject to the jurisdiction of the United States to knowingly provide “material support or resources” to or receive military-type training from or on behalf of a designated FTO.
Representatives and members of a designated FTO, if they are aliens, are inadmissible to and, in certain circumstances removable from, the United States.
Except as authorised by the Secretary of the Treasury, any US financial institution that becomes aware that it has possession of or control over funds in which an FTO or its agent has an interest must retain possession of or control over the funds and report the funds to the Treasury Department.
Source: US Department of State
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
UAE currency: the story behind the money in your pockets
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UAE currency: the story behind the money in your pockets
The UAE squad for the Asian Indoor and Martial Arts Games
The jiu-jitsu men’s team: Faisal Al Ketbi, Zayed Al Kaabi, Yahia Al Hammadi, Taleb Al Kirbi, Obaid Al Nuaimi, Omar Al Fadhli, Zayed Al Mansoori, Saeed Al Mazroui, Ibrahim Al Hosani, Mohammed Al Qubaisi, Salem Al Suwaidi, Khalfan Belhol, Saood Al Hammadi.
Women’s team: Mouza Al Shamsi, Wadeema Al Yafei, Reem Al Hashmi, Mahra Al Hanaei, Bashayer Al Matrooshi, Hessa Thani, Salwa Al Ali.
How has net migration to UK changed?
The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.
It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.
The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.
The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.
Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Ovasave%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20November%202022%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Majd%20Abu%20Zant%20and%20Torkia%20Mahloul%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Healthtech%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%20Three%20employees%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Pre-seed%3Cbr%3E%3Cstrong%3EInvestment%3A%3C%2Fstrong%3E%20%24400%2C000%3C%2Fp%3E%0A
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
Killing of Qassem Suleimani
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
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Series information
Pakistan v Dubai
First Test, Dubai International Stadium
Sun Oct 6 to Thu Oct 11
Second Test, Zayed Stadium, Abu Dhabi
Tue Oct 16 to Sat Oct 20
Play starts at 10am each day
Teams
Pakistan
1 Mohammed Hafeez, 2 Imam-ul-Haq, 3 Azhar Ali, 4 Asad Shafiq, 5 Haris Sohail, 6 Babar Azam, 7 Sarfraz Ahmed, 8 Bilal Asif, 9 Yasir Shah, 10, Mohammed Abbas, 11 Wahab Riaz or Mir Hamza
Australia
1 Usman Khawaja, 2 Aaron Finch, 3 Shaun Marsh, 4 Mitchell Marsh, 5 Travis Head, 6 Marnus Labuschagne, 7 Tim Paine, 8 Mitchell Starc, 9 Peter Siddle, 10 Nathan Lyon, 11 Jon Holland
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Russia's Muslim Heartlands
Dominic Rubin, Oxford
Company%20profile
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Avatar%20(2009)
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