UAE-based low-cost robo-advisory platform Sarwa, will roll out a zero-commission stock trading service within the next six months to tap demand for online trading, which has surged during the Covid-19 pandemic.
Sarwa Trade will allow retail investors to buy and sell global stocks and exchange-traded funds through the Sarwa app, co-founder and chief executive Mark Chahwan said on Wednesday.
"We made investing accessible [and] it’s time trading follows suit," Mr Chahwan said. "Many members of the [Sarwa] community are trading small amounts in companies they are passionate about, so we built this new service to allow them to do that in a safe and regulated environment."
Retail investors are increasingly seeking direct access to markets with the help of technology, leading to a surge in popularity for zero-commission trading apps such as Robinhood, eToro, Interactive Brokers and Sarwa. Demand for trading apps jumped during the pandemic due to monetary easing by the US Federal Reserve and other central banks, giving people more money to invest during pandemic lockdowns.
The recent GameStop trading frenzy, which saw the video game retailer hit a high of $483 at the end of January then plummet to below $100 a week later, led Robinhood to suspend trading in the stock. The phenomenon put the spotlight on online trading apps and raised concerns about their safety for novice investors.
A similar scenario is unlikely to happen in the UAE with Sarwa Trading, which will be regulated by Abu Dhabi Global Market and is currently in private beta mode, Mr Chahwan said.
“We've been around for three years and building our infrastructure for a long time in a very regulated, safe environment where we don't push this insane activity and all the hype,” he added.
“If you go on Robinhood, it’s super gamified and that’s not what we are doing. We are providing accessibility, simplicity and transparency and putting it into trading. Robinhood popularised the zero-commission model and we love the fee aspect and accessibility aspect of it … the gamification element, we are not sold on.
"We still believe the smartest way to build wealth is through regular, long-term, and diversified investing. That does not mean there is no place for buying and selling stocks, as long as it’s done responsibly, especially when it comes to themes you really believe in, whether it’s crypto, green energy, or innovative tech companies."
Founded in 2017, Sarwa Invest uses artificial intelligence to rate an investor’s risk tolerance and assigns them a tailored investment portfolio of exchange-traded funds, charging them lower advisory fees than traditional financial advisers and wealth managers. The FinTech platform currently has 25,000 registered users.
In January, Sarwa secured a financial technology experimental permit from Saudi Arabia's Capital Market Authority, allowing it to operate in the Arab world's biggest economy. However, Sarwa Trade will not be available to investors in the kingdom.
The FinTech platform is also about to launch a new funding round after raising $8.4 million in new financing in January 2020.
“It’s going to be in the double digits and we are targeting both regional and global investors to fuel the growth of the company and expand the team around the project,” Mr Chahwan said.
The funding round will close in the first half of the year, he added.
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.
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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UAE currency: the story behind the money in your pockets
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
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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
Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months
More on Quran memorisation:
Ticket prices
General admission Dh295 (under-three free)
Buy a four-person Family & Friends ticket and pay for only three tickets, so the fourth family member is free
Buy tickets at: wbworldabudhabi.com/en/tickets
Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
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Political flags or banners
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Bikes, skateboards or scooters
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
