Dubai, UAE- The Islamic Development Bank Group in partnership with the UAE Ministry of Economy and Annual Investment Meeting, will conduct a live webinar entitled “IsDB Group Private Sector Action Response to COVID-19” on the 6th of July at 01:00 PM (KSA Time) to discuss the challenges facing the private sector and global economy during the COVID-19 outbreak.
The live session will also present the immediate joint action response of the IsDB Group Private Sector Entities namely, the Islamic Corporation for Insurance of Investments and Export Credits (ICIEC), Islamic Corporation for the Development of the Private Sector (ICD), and the International Islamic Trade Finance Corporation (ITFC), in order to overcome the COVID-19 pandemic.
The webinar will discuss the future outlook to overcome the COVID-19 pandemic. In addition, the webinar will highlight the IsDB Group’s US$2.3 billion Strategic Preparedness and Response Programme for COVID-19 under its 3Rs approach “Respond, Restore and Restart”.
The keynote speakers who will share their in-depth perspectives in the webinar are Mr. Ousama Kaissi, the Chief Executive Officer of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC); Mr. Ayman Sejiny, the CEO & General Manager of the Islamic Corporation for the Development of the Private Sector (ICD), Eng. Hani Salem Sonbol, the Chief Executive Officer of the International Islamic Trade Finance Corporation (ITFC) and Ms. Cornelia Meyer, the Chairman & CEO of Meyer Resources.
Mr. Ousama Kaissi, the Chief Executive Officer of The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and one of the keynote speakers in the webinar, stated: “While the disruption to global trade and investment flows is unavoidable due to the unprecedented nature of the coronavirus pandemic, it is essential that institutions with the mandate and means to stabilize the trade ecosystem during the crisis heighten their efforts to do so.
ICIEC is honoured to be a part of this webinar with the UAE Ministry of Economy and our IsDB Group peers in order to share how we are employing our multilateral insurance solutions toward the collective recovery of member countries.”
“The private sector can play a pivotal and proactive role to close funding gaps in the COVID-19 response. It is capable to minimize short-term risks to employees and long-term costs to businesses and the economy as a whole. ICD will work closely with 100+ local and regional financial institutions in its network to provide necessary support so they can continue to fund private sector, particularly SMEs in affected sectors within the markets they operate in” stated Mr. Ayman Sejiny, the CEO of the Islamic Corporation for the Development of the Private Sector (ICD), and one of the keynote speakers in the webinar.
Eng. Hani Salem Sonbol, the Chief Executive Officer of the International Islamic Trade Finance Corporation (ITFC) and one of the keynote speakers in the webinar, stated: “Since the outbreak of the pandemic, ITFC has moved quickly to put in place emergency financing measures to ensure that member countries continue to receive the support needed.
Our COVID-19 ‘Rapid Response Initiative’ (RRI) has made US$ 300 million immediately available.
This has facilitated the immediate access to medical equipment, the supply of staple foods and critical energy needs. Continuing to work closely with IsDB and partners, ITFC is moving forward with its Recovery Response Plan (RRP) with the provision of US$550 million for deployment over the next two years.
The RRP is aimed at fixing the socio-economic damage which is expected to last longer than immediate impact of the virus; including the provision of lines of financing to fund the private sector and SMEs.”
“It is a great privilege to be in collaboration with the UAE Ministry of Economy and Islamic Development Bank Group in organizing this live webinar session that will tackle the major challenges currently being confronted by the private sector and the global economy as a whole,” Mr. Walid A. Farghal, Director General of the Annual Investment Meeting mentioned.
“The private sector is indispensable to economic growth. In fact, it contributes up to 90 per cent of employment and provides over 80 per cent of government revenues in developing countries. Thus, it is essential to highlight this huge initiative by the IsDB Group that enables the sectors adversely affected by COVID-19 to continue their business activities,” he furthered.
During the webinar, 3 online initiatives will be launched jointly by IsDB Group Private Sector Entities and AIM.
These initiatives will support the private sector, trade and exports in OIC member countries and will be focusing on:
- Digital Country Presentations: to promote and showcase the investment and trade opportunities in OIC member countries which will serve as a virtual gathering and strategic innovative platform to support the investors, government agencies, private institutions, investment promotion agencies to discuss the best possible means to attract FDI.
- Startups Virtual Pitch Competition: to connect Startups globally and support them in meeting potential partners and investors from other parts of the world.
- MADE IN…..SERIES: this digital platform is open to all SMEs who want to showcase and present their local products, project and services to international audience.
The webinar will gather more than 700 participants from multiple sectors across the globe such as government officials, Chairmen, Presidents & CEOs of local and international companies, multilateral and financial institutions, Chambers of Commerce & Industry, business associations, investment promotion agencies, individual investors, and entrepreneurs.
Smart cities are expected to boost lucrative business opportunities for the UAE and the region. However, the Internet of Things (IoT), the technology underpinning these complex and interconnected urban networks, offers a considerably expanded attack surface for cyber adversaries of all kinds, according to a report by Digital14, a UAE-based advisor in digital transformation and cyber resilience.
There are an estimated 22 billion networked devices worldwide. The interconnected nature of smart cities means that by 2025, that number is forecast to rise to 38.6 billion.
Each of these devices serves as an entry point for malicious actors, with everyday gadgets such as IP cameras and digital video recorders (DVRs) likely to be at the greatest risk.
In fact, more than 25 percent of attacks against enterprises this year will involve IoT devices. The GCC is increasingly prone to IoT attacks, with 18.45 percent of public-facing hosts in the UAE alone potentially vulnerable to such attacks, according to the report.
Key highlights of the report showed that the UAE is hit by an average of 304 attacks per day, the highest in the GCC. Over 42,500 IP cameras are potentially vulnerable to cyberattacks in the GCC while nearly 8,000 digital video recorders (DVRs) in the region are openly exposed to an outside network.
With the UAE embracing smart city technologies and taking a leadership role in this field, it is no surprise that the country takes the regional top spot in the Global Connectivity Index.
Expecting the growth of this sector to continue, the report proposes six actionable takeaways for organisations to defend themselves against new and evolving threats, including validating IoT devices before deployment, continuously monitoring all devices on the IoT network, and isolating IoT devices away from crucial and sensitive networks.
With the vast opportunities that smart cities bring, both in terms of improved business productivity and consumer experience, operators and device owners must be conscious of the potential vulnerabilities within their networks.
Only by safeguarding their networks, can smart cities truly realise their promised potential.
source: sme10x
The total gross deposits of the private sector in the UAE banks amounted to circa AED1.076 trillion by the end of March 2020, a 1.7 percent growth of AED18 billion from AED1.058 trillion in December 2019, figures by the Central Bank of the United Arab Emirates have shown.
These deposits account for around 58 percent of the total gross deposits held by the UAE banks, which stood at around AED1.852 trillion by the end of the same month.
In the meantime, the domestic credit to private sector amounted to AED1.149 trillion, a growth of 1.3 percent from AED1.134.6 trillion in December 2019.
The growth in private sector credit is a significant indicator of its contribution to economic activity and reflects increase in the sector's investment activity.
source: wam.ae
The central banks of the United Arab Emirates (UAE) and Saudi Arabia, the two largest Arab economies, on Saturday announced stimulus plans worth a combined $40 billion to ease the impact of the coronavirus outbreak in their respective countries.
The UAE regulator plans to support banks and businesses in the country, where the outbreak is affecting major economic sectors such as tourism and transport, with a 100 billion dirham ($27 billion) economic plan, it said on Saturday.
In a separate statement, the Saudi Arabian Monetary Authority said it had prepared a 50 billion riyal ($13.32 billion) package to help small and medium-sized enterprises (SMEs) cope with the economic impacts of coronavirus.
The disease has so far infected 85 people in the UAE and 105 in Saudi Arabia.
The Saudi funding aims to grant SMEs six-month deferrals on bank payments, concessional financing and exemptions from the costs of a loan guarantee program, SAMA said.
Concerts, sporting events and industry conferences have been canceled or postponed in the past few weeks in the UAE to contain the spreading of the new coronavirus.
In Dubai, the Middle East’s trade, finance, tourism and transportation hub, some businesses have started to feel the pain from the global travel slowdown caused by the outbreak.
Saudi Arabia, which has already suspended the Umrah pilgrimage and locked down its eastern Qatif region where many infections are located, plans to halt all international flights for two weeks from Sunday.
The UAE central bank said it will provide 50 billion dirhams through collateralized loans at zero cost to all banks operating in the UAE while an additional 50 billion dirhams will be freed up from lenders’ capital buffers.
“The CBUAE is allowing banks to free-up their regulatory capital buffers to boost lending capacity and support the UAE economy,” it said in a statement.
It said the scheme offers banks relief for up to six months from the payments of principal and interest on outstanding loans for affected private sector companies and retail customers.
Committed to peg
Adding to a likely economic slowdown caused by the virus, Saudi Arabia and the UAE are also expected to face wider fiscal deficits this year because of lower oil prices, due to an oil price war between Riyadh and Moscow.
The Gulf states’ currencies, which are pegged to the U.S. dollar, weakened in the forwards market last week.
The UAE regulator said on Saturday it maintained its commitment to the peg for the dirham, and said foreign currency reserves amounting to 405 billion dirhams as of March 10 were “adequate” to safeguard the stability of the currency.
Other measures introduced by the UAE central bank on Saturday include reducing by 15-25% the amount of capital banks have to hold for loans to SMEs, and better terms for first-time home buyers.
Importantly for the local real estate sector - which has been struggling in Dubai for the past decade - banks will be allowed to increase their exposure to real estate loans.
“When the exposure reaches 20% of the banks’ loan portfolio (measured by risk-weighted assets), banks will be allowed to increase it to 30%, but will be required to hold more capital,” it said.
The central bank also introduced regulations which reduce banking fees for small companies.
The Dubai and Abu Dhabi stock exchange indices dropped last week amid coronavirus concerns and because of tumbling oil prices.
To contain volatility in the markets, the central bank said it plans to issue guidelines on margin calls, asking banks to request additional collateral before liquidating stocks in the event of a market downfall.
source: cnbc
Large banks based in the United Arab Emirates (UAE), one of the Middle East’s leading financial hubs, have been investing in digital transformation projects to compete in an industry with rapidly changing consumer requirements – according to analysis performed by Bloomberg Intelligence.
The analysis revealed that technological innovation is vital when it comes to acquiring market share and developing flexible, cost-effective solutions.
Higher IT spending may lead to a consolidation of smaller financial institutions as larger banks upgrade their legacy platforms, the analysis noted.
It also mentioned that traditional banks might also merge with other institutions in order to become stronger and more competitive.
The analysis found that Emirates NBD (ENBD), one of the largest banking groups in the Middle East, is ahead of its competitors in the region in terms of its digital transformation efforts.
It was notably among the first to migrate its core banking platforms to an application program interface (API)-enabled solution, which was backed by a AED 1 billion (appr. $272.3 million) investment.
ENBD’s API Sandbox, introduced back in November 2018, offers a controlled environment where Fintech firms can pilot various solutions that could be used to enhance the bank’s core operations.
Competitors are likely to work on similar projects, and would have to follow policy requirements that are somewhat similar to Europe’s Payment Services Directive, which requires giving open-banking access to all businesses, which includes Fintech firms.
source: crowdfundinsider
Leadership determined to scale new heights by boosting all sectors
UAE - Rapid economic diversification underpinned by a string of bold reforms and a series of government stimulus measures are set to drive UAE growth at a steady pace as its gross domestic product (GDP) remains on track to surpass the $500 billion mark over the next few years.
The latest projections by the International Monetary Fund (IMF) show that the UAE's non-oil sector, pivotal to this all-round growth, will surge from 1.3 per cent in 2018 to 1.6 per cent in 2019 and 3 per cent in 2020.
As a result, oil GDP growth is forecast to slow down from 2.8 per cent in 2018 to 1.5 per cent this year and 1.4 per cent next year when non-oil sectors such as tourism, aviation, retail, hospitality, real estate and construction will spur the expansion as the World Expo gives an added momentum to the pace of growth.
According to the Institute of Chartered Accountants in England and Wales (ICAEW), Expo 2020 Dubai and the government's Dh50 billion fiscal stimulus would be quite pivotal to the rebound that is expected to boost the country's non-oil GDP growth to about 2.8 per cent.
In its Economic Update: Middle East Q4 2019, produced in partnership with Oxford Economics, the ICAEW says Expo 2020, which is anticipated to attract 25 million visitors - 14 million from overseas - is forecast to contribute up to 1.5 per cent of the UAE's overall GDP in 2020.
According to economists, the expansion in non-oil activity is slowly beginning to translate into stronger job creation, although at a modest rate. Total employment in the private sector increased by one per cent year-on-year in the second quarter 2019, up from just 0.1 per cent year on year in first quarter.
Although the legacy of Expo 2020 is hard to estimate, the investment climate remains positive with infrastructure upgrades.
In 2019, the UAE has attracted $12.7 billion in foreign direct investment in the first half, an increase of 135 per cent year-on-year, while tourist arrivals rose 3 per cent in the same period to reach 8.4 million.
The IMF predicts that the UAE's oil output will continue to increase from 3.02 million barrels per day (bpd) last year to 3.10 million bpd in 2019 and 3.17 million bpd next year.
Jihad Azour, director for the Middle East and Central Asia Department at the IMF, said in the current context, the encouraging signs is that despite the volatility in crude prices, non-oil growth is growing steadily but it has not reached the level of first five years of this decade.
"We expect non-hydrocarbon real GDP growth to pick up to 1.7 per cent in 2019 and 2.2 per cent in 2020, supported by Abu Dhabi's three-year stimulus package and Dubai's spending linked to Expo 2020," said Garbis Iradian, chief economist for the Middle East and North Africa at the Institute of International Finance (IIF).
With a GDP of $414 billion in 2018, the UAE has been successfully diversifying away from oil, which accounted for more than 85 per cent of the economy in 2009.
The UAE Ministry of Economy has predicted that the share of the non-oil sector in the GDP to rise to 80 per cent by 2021, compared to 70 per cent in 2017.
A massive construction boom, an expanding manufacturing base and a thriving services sector are helping the UAE diversify its economy while tourism continues to be a key non-oil source of revenue with some of the world's most luxurious hotels being based in the UAE.
Nationwide, there is currently $350 billion worth of active construction projects underway.
The IMF has also predicted that a negative inflation in UAE this year at minus-1.1 per cent and 2.2 per cent for 2020.
While the Emirates' nominal GDP is expected to slip from $414.2 billion in 2018 to $405.8 billion this year, it will recover again next year to $414 billion in 2020 on the back of non-oil sector growth.
Another growth driver of the UAE economy is the aviation market that is poised to grow 170 per cent by 2037 while supporting 1.4 million jobs and contribute $128 billion to the nation's economy, according to the International Air Transport Association, or Iata, said on Tuesday.
In its latest study on the importance of air transport to the UAE, the International Air Transport Association said the domestic aviation industry at present supports nearly 800,000 jobs and contributes $47.4 billion to the economy, accounting for 13.3 per cent of the UAE's GDP.
However, given the ongoing prioritisation of aviation by the UAE government as a key strategic asset, the sector could generate an additional 620,000 jobs and an extra $80 billion in GDP for the nation's economy by 2037, the trade body of 290 airlines across the world said.
According to Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Industry, the UAE is reviewing a new strategy that seeks to raise the industrial sector's contribution to GDP and boost economic growth.
The goal is to build a diversified and sustainable knowledge-based economy in which the industrial sector plays a pivotal role led by qualified national cadres, according to Al Mazrouei.
The new national strategy aims to achieve sustainable development through several pillars, including supporting innovation, efforts to reduce carbon emissions, stress on small and medium enterprises, adoption of Fourth Industrial Revolution (4IR) technologies, sustainable manufacturing, developing advanced skills and establishing partnerships to integrate local businesses into global value chains in order to increase our export prospects, the minister said.
Already, the UAE's economy is moving towards greater diversification and a future-based on leadership in non-oil sectors. Currently, the contribution of the industrial sector to the UAE's GDP is around 9 per cent and is poised to grow further.
Industrial activity, which increased by 4.8 per cent during 2017 alone, is certainly one of the main engines of our economic development and plays a pivotal role in boosting the country's GDP.
The steady growth witnessed over the past five years demonstrates the success of the state in establishing a strong manufacturing base and its contribution to economic diversification.
According to figures revealed by the Federal Competitiveness and Statistics Authority, the manufacturing sector's contribution to the UAE's non-oil GDP grew 2.5 per cent to Dh122 billion in real prices in 2018 from Dh119.7 billion in 2017.
The fast diversifying and innovation-driven industrial sector, a key driver of economic growth, is expected to account for 20 per cent of the nation's gross domestic product by 2030.
The UAE's advancement in economic diversification has been demonstrated by a number of international indicators. The nation has advanced 13 places in eight years on the Unido's Industrial Competitiveness Index.
The UAE ranked 41st on the Index in 2018, compared to 54th in 2010. The UAE also ranked first regionally and fifth globally among the most competitive countries in the world in the IMD World Competitiveness ranking 2019 report. And the UAE is ranked third globally in the Economic Diversity Index in the same report.
The UAE Centennial 2071 project stresses the importance of building an economy equipped to compete with the world's best as the nation sustains efforts to establish itself as a global platform and open laboratory for the applications of 4IR, given that the Arab world's second-largest economy has made the adoption of innovative technologies central to its economic development through the UAE Strategy for the Fourth Industrial Revolution.
According to analysts, achieving this objective will involve raising the level of productivity in the national economy, supporting national companies to gain access to international markets, investing in research and development in important sectors, focusing on innovation and entrepreneurship, and improving the professional level of Emiratis and providing them with a new working culture.
The outlook for the industrial sector in the UAE is very bright indeed, especially considering the success of some of its national industrial companies in establishing themselves as major contributors to global value chains in a variety of advanced industrial sectors, such as aviation and defence, aluminium and other leading industries.
Over the next 10 years, UAE's specialised industrial zones are on track to play an important role in attracting local and international capital to invest in the industrial sector. The UAE also seeks to attract international companies to launch pioneering projects in this country and to develop strong partnerships with industrial companies at both the local and international level.
Adding to this, the UAE is giving strong emphasis to the SME sector, expect them to enter the advanced industrial sector and contribute to global value chains. The government also expects homegrown companies to eventually play a major role in driving innovation and employing new technologies within the national industrial sector.
The federal government has stressed that education will remain a priority and the nation's path to the future. The new year's federal budget has allocated a large proportion to funding federal schools and development projects. The UAE views Emiratisation as a true measure for success.
The Cabinet has approved a national fund to support and train Emirati jobseekers and made legal amendments to ensure Emiratis in the private sector receive a pension as they would in the public sector.
The Emiratisation plan includes issuing regulations and setting new targets to provide 20,000 job opportunities for Emiratis in strategic sectors over the next three years, with an average of 6,700 jobs annually.
Under the plan, a Dh300 million fund will be established to create specialised training programmes for Emiratis as well as a new system will be adopted to train 8,000 Emirati graduates annually in government, semi-government and private entities for 6-12 months.
A string of recent reforms and new liberal rules will see that the UAE sustain its growth momentum to become a $500 billion economy in the not too distant future. The government's move to allow up to 100 per cent foreign ownership of some companies operating in 13 sectors is one of such bold recent initiatives, according to analysts.
KPMG's 2019 Growth Promise Indicators (GPI) report said the UAE offers the best growth prospects among the Arab countries, even better than bigger economies such as China, India and South Korea. The country has jumped three places to 22nd position among 180 countries, thanks to infrastructure development, particularly in transport and human development.
source: zawya
Investors and buyers looking at Dubai's real estate landscape are spoilt for choice
The right place and the right time are the two most critical factors to consider before making a real estate investment. At some point in our lives, we all think of buying property. While some look for inspiring spaces where they can live fulfilling lives with their loved ones, others seek properties that add value to their investment portfolios.
Irrespective of the reason behind investing in real estate, the decision is based on the same two factors - the right place and the right time. When it comes to 'the right place', Dubai ticks all the right boxes. The Emirate's stable and growing economy, pro-people government, cultural diversity, and a future-proof outlook, are a significant draw for people from every corner of the world. Anyone who has ever been to Dubai or lives here aspires to own a piece of this magnificent city. For those wanting to invest in a property in Dubai, now may be the perfect time to do so.
As Dubai evolves into a city of the future, its real estate landscape is undergoing a transformational evolution. What was once just a go-to destination for global investors seeking good returns, is now maturing into a place where people are looking to settle in and invest for the long term. The days of unsustainable price growth are behind us, and Dubai has become a more affordable buyer's market, prompting many to invest.
On September 2, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, announced the launch of the Higher Committee for Real Estate, which will chalk out a long-term growth strategy for the sector. The announcement received a phenomenal response from the market, which witnessed a 134 per cent rise in real estate transactions within a month of the announcement. More and more people are seeing this as the right time to invest in Dubai's real estate. Here's why you should too.
The price is right
Property prices are perhaps the most influential factor while making a real estate investment decision. At this stage, Dubai's property market presents the right conditions for buyers, investors and renters alike. Compared to Q2 2019, in Q3 2019, the average price per square foot declined by 8 per cent for apartments and 6.6 per cent for villas across the board. However, the decline is softening, and we believe that the market is bottoming out. The declining prices have prompted many to take advantage of market conditions and make their first property investment in Dubai. In 2018, nearly 66 per cent of the total investors in Dubai's real estate were first time buyers; and we expect that this trend will continue in 2019. We are also witnessing a trend where long-term renters are instead considering buying their own home in the Emirate. Those who invest now are sure to benefit in terms of long-term returns once there is an uptick in the market in the coming years.
So many options
Today, investors and buyers looking at Dubai's real estate landscape are spoilt for choice. From off-plan projects to ready-to-move-in units, from gated communities to exquisite branded residences, the market offers unique products that suit different needs. It is also an excellent time for buyers who are looking for luxury real estate as Dubai is set to overtake New York as the global branded residences capital by the end of the year, with 23 existing projects and another 22 in the pipeline. At Damac, we have always believed that creating a diverse range of living experiences is the key to success in a market such as Dubai. From Ghalia, our first Shariah-compliant project, to Damac Hills, our master community that caters to residents' holistic lifestyle needs, our projects have been inspired by the different cultural needs and aspirations of buyers and investors.
Attractive returns
Dubai has always been a preferred destination for those who are looking at property as an investment. Despite the decline in prices, at 7 per cent, average rental returns of Dubai in the first half of 2019 remain stronger than in most big cities around the world. Besides long-term returns on investment, Dubai's real estate landscape offers multiple ways to make money from your investments. Compared to long-term rentals, holiday homes offer up to 25 per cent more returns to investors. As per a recent report by Knight Frank, the holiday home market of Dubai accounts for two per cent of its total households, which is the highest in proportion, compared to other big cities.
Better financing and easy payment plans
To encourage mortgage-based home purchases, the UAE Central Bank recently instructed banks and other finance providers to reduce early settlement fees to a maximum of 1 per cent or Dh10,000, whichever is less, for borrowers who want to exit their mortgage early. The UAE Central Bank also scrapped the 70-year age limit for the last mortgage repayment. These reforms will bring more flexibility for those who wish to buy a property through financing. Buying a home is a big decision that involves a complex emotional and logical reasoning. Whether you're an investor looking for returns or a buyer in search of your dream home, Dubai will never disappoint. However, it's all about taking the right decision at the right time.
source: zawya
Under the theme, “Investing for the Future: Shaping the Global Investment Strategies”, government leaders and officials, economic experts, global investors, entrepreneurs from over 140 countries will convene and collaborate on improving investment dynamics at the 10th edition of AIM to be held on 24-26 March 2020 in Dubai.
15 December 2019, Dubai, UAE- UAE Ministry of Economy has launched the 10th edition of Annual Investment Meeting (AIM) which will be held on 24-26 March 2020 in Dubai. AIM is under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of
Dubai.
AIM has consistently provided a unique platform mostly for emerging economies to attract FDI. Now in its milestone edition, AIM is adhering to the call for a more extensive and inclusive economic growth and has added, aside from FDI, four more pillars- Small and Medium Enterprises, Foreign Portfolio Investment, Startups, and Future Cities. It will also hold One Belt, One Road which is an exclusive side event.
Praising the expanded network of AIM 2020, HE Abdullah Al Saleh, the UAE Ministry of Economy’s Undersecretary for Foreign Trade Affairs, said, “Attracting investments does not only link its spillovers to the local economy. It enables inclusive growth providing long-term benefits to host countries in terms of job creation, enhancement of skill base, transfer of technology and increase in competitiveness. With the addition of new pillars, AIM can exert stronger influence to achieve wider economic prosperity and improve domestic economic imperfections.”
Under the theme “Investing for the Future: Shaping the Global Investment Strategies”, AIM will traverse the shifting investment landscape at the global scale and assist world economies to attract investment. AIM’s flagship pillar, FDI, will link municipalities, cities and countries with quality FDIs that match the necessary condition of their market and their existing infrastructure. It will also unfold recent trends and foreseeable movement of FDIs to assist both governments and investors in gauging and reformulating their next plan.
AIM 2020 will also work toward narrowing the credit gap to benefit SMEs by providing a global platform to promote their products and services to genuine investors. While world economies are fuelled by SMEs which represent 90% of business and 50% of employment worldwide, 65 million SMEs in developing countries have to endure unmet financing need of $5.2 trillion every year, according to the International Finance Corporation (IFC). SMEs that are recognized for integrating sustainable investing in their operations will gain distinct focus among impact investors anticipated at AIM. Impact or sustainable investing have gained popularity among investors who are keen in financing companies and organizations that address social and environmental concerns.
The rise of the global population of ultra-high net worth individuals (UHNWIs), which is anticipated to increase by 22% over the next five years, will further boost the flow of foreign portfolio investments. AIM networking function dedicated to foreign portfolio investment will drive discussion between companies with tradable assets and wealth managers who are eager to capture market opportunities that ensure real returns. According to International Monetary Fund data, top destinations for foreign portfolio investment are Turkey, Germany, Czech Republic, France, Italy, United Kingdom, Poland, Luxembourg, United States and the Republic of North Macedonia.
AIM 2020 will continue to support startups with expanded networking opportunities and focused discussions including mentoring sessions. A series of National Pitch Competitions will be held in 80 countries where top winners will be hosted in Dubai to compete in the Final AIM 2020 Startup Competition with cash awards amounting to USD50,000. Previously a co-located event, Startup, now an AIM pillar, will take a prominent position at AIM 2020 to further build on growing interest in funding which has reached $407 billion 2018, an increase of 23.3% from 2017. The top sectors for funding were software and SaaS, fintech, medtech, media and entertainment, health and wellness which represented
52.7% of total disclosed funding.
Funding remains the biggest challenge in implementing smart city solutions. AIM 2020 will seek to bridge the funding gap through its Future Cities pillar, aimed at linking project owners with legitimate investors. Future Cities will not only showcase projects, but assist project owners derive inspiration from success stories built on having successfully created close relationships with private partners.
AIM 2020 will also hold the second agenda of One Belt, One Road. OBOR will present investment opportunities across continents involving regional collaboration to modernize China’s ancient Silk Road trade route. Belt and Road Initiative spans across 70 countries with $1 trillion investment requirement and has been hailed as the most ambitious infrastructure initiative aimed at improving physical, trade, economic and digital connectivity across various sectors. AIM launched this exclusive side event last year and saw the participation of 200 project owners and investors from GCC.
AIM 2019 attracted 16,051 visitors from 143 countries as well as 150 FDI specialists and economic experts, 66 high-level dignitaries, 436 exhibitors and co-exhibitors and was covered by 256 local and international media.
For interest to attend or to exhibit, visit AIM 2020 website: www.aimcongress.com. You may also view event agenda and know about event features online.
The new framework is set to encourage small and medium-sized investments, according to the MOF
With UAE Cabinet’s approval an insolvency law that regulates cases involving individuals facing financial difficulties, the legal framework is now set to better ensure the rights of both creditors and debtors, according to the Ministry of Finance.
“This law creates a safe environment for personal loans to the satisfaction of both the creditor and the debtor, as it provides the balance to ensure the rights of both creditor and debtor,” Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, told reporters in Abu Dhabi.
“The law thereby encourages increased cash flows and attracts small and medium-sized investments to the state,” he added.
These are the key details of the law, based on additional information from the Ministry of Finance:
- The new legislation is expected to make it easier for individuals to obtain loans, as there are clear and easy-to-apply rules for the collection of bad debts and rehabilitation of debtors financially.
- This improves creditor banks’ confidence in retail lending and encourages individuals to engage in calculated borrowing.
- The law ensures the protection of the debtor’s dignity as a natural person (that is, an individual, rather than a company or organization) and helps create an opportunity for them to reduce their financial burden.
- The law provides two means to address the insolvency of individuals: first, by possibly settling financial obligations, and second, through insolvency and liquidation of funds.
The debtor can file an application with the court for an opportunity to settle their financial obligations, and the court will appoint one or more experts to assist them during these proceedings.
- When preparations begin on a plan to reorganize and settle financial obligations, the settlement plan shall be voted on by the creditors.
- The debtor may choose the second option (of liquidating their funds to pay their debts) if they have stopped paying any of their debts on the due dates for more than 50 consecutive working days due to financial inability.
- In the event of liquidation of funds, a trustee shall be appointed to control and facilitate the liquidation of the debtor’s funds.
- Funds excluded from liquidation procedures are pension or social benefits provided to the debtor as well as funds required by the debtor to meet their basic needs and those of their dependents. The latter amount is specified by the court.
- The period for the execution of the financial liability settlement plan may not exceed three years from the date of the ratification of the plan by the court.
source: zawya
From 2013 to 2018, the GCC insurance industry grew at a CAGR of 8.9%
The GCC insurance market is projected to grow at a moderate pace of 4.3 percent compound annual growth rate (CAGR) to reach $36.1 billion in 2024 from $29.2 billion in 2018, Alpen Capital said in a report.
The outlook for the GCC insurance industry remains positive, “primarily led by a sustained economic growth, diversification of the economy, increase of the population as well as the implementation of mandatory insurance,” Krishna Dhanak, Executive Director at Alpen Capital said during a media roundtable.
From 2013 to 2018, the GCC insurance industry grew however at a higher CAGR of 8.9 percent from $18.4 billion to $28.2 billion, the Alpen report showed.
The market share of each GCC country is expected to remain constant through 2024 according to Alpen Capital. The UAE will continue to maintain its position as the largest market in the region.
The gradual slowdown of the insurance industry that was witnessed in the last two years as various players adapted to new regulations such as solvency requirements, minimum capital requirements and pricing policies, is likely to continue until 2024, Dhanak said.
Dhanak said that M&As in the sector remained active over the past two years as companies sought to build stronger balance sheets to sustain the stringent reserve and solvency requirements.
“In addition to interest from foreign players, we expect to see continuing M&A activity as companies develop technological capabilities to broaden their product offering and improve profitability,” he added.
According to the report, insurance penetration (ratio of total insurance premiums to GDP) in the region is expected to remain between 1.8 percent and 1.9 percent from 2019 to 2024, below the global average of 6.1 percent, offering scope for growth in the sector.
Insurance density (ratio of premium underwritten to total population) in the GCC is expected to increase from $502.9 in 2019 to $555.8 in 2024. Life insurance gross written premium (GWP) is projected to grow at a CAGR of 4.9 percent to reach $4.7 billion in 2024.
The non-life segment will continue to comprise 86.9 percent of the total insurance market at $31.4 billion in 2024, the report noted.
In the next 5 years, the UAE’s insurance market is forecasted to grow at a CAGR of 4.2 percent while the Saudi Insurance market will grow at a CAGR of 5 percent and the Kuwaiti insurance market is anticipated to grow at the fastest annualized average pace of 8.2 percent.
In 2018, the UAE recorded the highest insurance penetration and density at 2.9 per cent and $1,194.7 respectively, the report said.
One of the challenges facing the sector is its exposure to risky assets according to Alpen Capital, as insurance firms in the region have a relatively high exposure to capital markets, making them more prone to volatility in equity markets.
Another challenge is weak profitability. With 200 insurers operating in the region, the sector remains highly fragmented, pushing companies to face profitability pressure due to mounting competition, high regulatory costs and strict accounting standards, the report said.
source: zawya
