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Capital adequacy of applicants to be assessed on a case-by-case basis
Saudi Arabia's central bank is reviewing licence requests for two digital banks to operate in the kingdom, the Saudi Arabian Monetary Authority (SAMA) confirmed to Zawya on the phone.
“Work is underway to evaluate these two licence requests,” Yazeed Alsheikh, director for general of banking control at SAMA, was earlier quoted as saying in local daily Aleqtisadiyah.
He added that the policy for granting licenses for digital banks is done through a comprehensive evaluation process that takes into account what added value a provider can bring to the Saudi banking sector.
Earlier this week, SAMA issued licensing guidelines for digital-only banks in Saudi Arabia.
It stipulated that online banks must set up as a locally incorporated joint-stock company and maintain a physical presence in the kingdom.
The Saudi regulator will assess the adequacy of capital of applicants “on a case-by-case basis considering the scale, nature and complexity of the operations,” SAMA said.
source: zawya
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Advisers and investors said that the Foreign Capital Investment Law will contribute to establishing new investment entities and open up investment and employment opportunities in the Sultanate, directly or indirectly.
The new law will help combat illicit trade and regulate the labour market, said observers, noting that the Sultanate’s business infrastructure is now ready to attract investments, with penalties stated in the new law serving as a deterent against fraud.
Ahmed bin Abdulkareem al-Hooti, Oman Chamber of Commerce and Industry (OCCI) Board Member, said that the Foreign Capital Investment Law is an element among a set of laws that regulate commercial and economic activities, as well as investment in general.
Al-Hooti pointed out that the Foreign Capital Investment Law also functions alongside the Law on Partnership Between Public and Private Sectors, Privatization Law, Investment Law and Bankruptcy Law. This is in addition to the establishment of the Commercial Arbitration Centre, which will help investors in decision making.
Meanwhile, Dr. Yousef bin Hamad al-Balushi, CEO of Investment Smart Portal, said that investment, in general, and foreign investment, in particular, assume great significance in any development process, and this prompts all countries to grab investment opportunities.
He added that there is currently an urgent need to speed up steps towards encouraging and attracting investments, locally and internationally, for a variety of realities dictated by the growing stage, which has almost attained its prime in infrastructure and legislations.
This, in turn, dictates transformation into a new model that is capable of yielding fruits, in terms of major investments, and maximizing benefits from the Sultanate’s preparedness and high status among world countries.
The Foreign Capital Investment Law enables the investor to exclusively own the land of a project or share it with another foreign investor or Omani investor, said Dr.
Adil al-Maqdadi, a former Associate Professor, Faculty of Law, Sultan Qaboos University (SQU), an advocate and legal adviser at the Office of Dr.
Ahmed Said al-Jahwari Legal Consultants. This law has not imposed any bottom-line capital for his company, unlike the previous law, which imposes a minimum of RO15,000 for approaching an investment venture.
source: omannews
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UAE's new insolvency law to create a 'safe environment for personal loans'
01 Dec 2019 Written by Admin AdminThe 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
GCC insurance sector to reach $36bln in 2024; UAE remains biggest market
01 Dec 2019 Written by Admin AdminFrom 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
Dubai's FDI more than doubles to Dh46.6 billion in first half of 2019
29 Oct 2019 Written by Admin AdminNew FDI law and economic incentives help increase foreign capital inflows by 135%
Dubai attracted foreign direct investment (FDI) of Dh46.6 billion in the first half of 2019, up 135 per cent on the same period last year, according to the Dubai Media Office.
In a statement published at the start of Dubai Investment Week, the Dubai government said it ranked third in the world for attracting FDI, both in terms of the capital value flows and number of greenfield projects.
“A new FDI Law, numerous economic incentives and concerted efforts to deepen cooperation and partnerships with the private sector have all contributed to Dubai’s record FDI achievements,” said Sami Al Qamzi, director-general of Dubai Economy.
“The FDI results of the first half of 2019 is a testament to the Dubai economy’s competitiveness and resilience in the face of global shifts and challenges that have adversely affected the flows of FDI globally in recent years,” he added.
In the first half of 2019, Dubai attracted 257 FDI projects with 61 per cent of total projects being greenfield, 27 per cent new forms of investment, 6 per cent reinvestments, 5 per cent made via mergers and acquisitions, and the remaining 1 per cent through new joint ventures.
In terms of investment sources, 34 per cent of the capital invested came from the US, 28 per cent from China, 11 per cent from the UK, and 5 per cent from both France and Singapore, according to the Dubai FDI Monitor.
These five countries together accounted 83 per cent of total FDI capital flows into Dubai in the first half of 2019.
Notable FDI deals recorded in Dubai during the first half of 2019 include Uber's acquisition of Careem and Mastercard's investment in payment processor Network International.
Around Dh13bn of capital flowed in through such investments.
Major FDI projects announced during the first six months included Zhejiang China Commodities Group's investment in the new ‘Merchant Market’ joint venture and China Co-Op Group's investment in a new food processing plant in Dubai.
Both projects amount to Dh12.5bn in greenfield FDI.
There were also increased corporate reinvestments in Dubai, such as HSBC's new Middle East headquarters worth an estimated Dh918 million, Siemens’ new Solar Hydrogen Facility worth Dh248m and the BMW Training Centre project worth Dh29m, among others.
The FDI flows and rankings results were revealed by Dubai Investment Development Agency (Dubai FDI), which is part of Dubai Economy, the emirate's economic development arm.
source: thenational
This new record represents a growth of 135% compared to the same period last year, Sheikh Hamdan, Crown Prince of Dubai and Chairman of Dubai Executive Council, announced.
The Emirate of Dubai has witnessed exceptional growth during the first half of 2019, with foreign direct investments, FDIs, reaching a record-breaking AED46.6 billion, H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, announced on Sunday( 29 october).
This new record represents a growth of 135 percent compared to the same period last year, His Highness added, noting that this FDI growth within the emirate is "a testament to global confidence in Dubai's economy." During the first half of 2019, Dubai has continued to progress in global rankings of the most attractive cities for FDI, ranking third in the world in attracting FDI, in terms of both capital flows and the number of greenfield projects.
"Dubai is among the top three global FDI locations thanks to the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, who created a global investment environment in Dubai that keeps pace with the aspirations of investors, entrepreneurs and technology shifts in the region and the world," Sheikh Hamdan bin Mohammed continued.. The FDI flows and rankings results were revealed by Dubai Investment Development Agency, DUBAI FDI, an agency of Dubai Economy, based on the Financial Times’ fDi Markets, a global online platform that monitors data on capital flows and greenfield FDI projects around the world and the ‘Dubai FDI Monitor’ data.
His Highness pointed out that Dubai has been particularly successful in attracting advanced technology and specialised talent in the first half of 2019.
"This is a proud achievement for Dubai. With the growth of talent and technology, Dubai will accelerate its drive to become the smartest and most sustainable city of the future.
" According to ‘Dubai FDI Monitor’ data, FDI projects with High and Medium Technology component reached 47 percent of total FDI projects in the first half of 2019, based on the Organisation for Economic Cooperation and Development, OECD, classification criteria.
Moreover, FDI projects with a high and medium technology component were at the forefront of creating new jobs with a 48 percent share of the 24,294 new jobs created by FDI projects in the first half of 2019.
Sheikh Hamdan noted that according to the Financial Times’ fDi Markets data, the emirate ranking ninth globally in job creation through FDI.
"This achievement will further strengthen Dubai’s position as one of the most attractive destinations for promising talent, thanks to our leadership’s initiatives to develop legislative frameworks that enhance the role of talent in building a knowledge and innovation economy in Dubai and the UAE," he concluded.
source: zawya
The UAE has ranked first in the Arab region according to the 2019 Government Electronic and Mobile Services, GEMS, Maturity Index.
Issued by the United Nations Economic and Social Commission for Western Asia, ESCWA, the indicator is a measuring tool of progress at the national level in achieving transition to digital services. It was carried out across 13 countries including, the UAE, Saudi Arabia, Syria, Oman, Palestine, Iraq, and Lebanon, amongst others.
The GEMS Maturity Index is measured across three sub-indices - Service Availability and Sophistication, Service Usage and Satisfaction, and Public Outreach.
According to the ESCWA report, the UAE achieved a 90 percent score in the 'Service Availability and Sophistication' category. This category uses various metrics to provide insights on what government services are available online or via mobile applications, and also measures accessibilty of government data via these channels.
Despite scoring 79 percent in the 'Public Outreach' category -- which determines what governments have done to make citizens aware of digital services in vital sectors -- the UAE scored 51 percent in the 'Service Usage and Satisfaction' index. The latter measures how frequestn government digital services are used, as well as end-user satisfaction with the digital service.
The GEMS index is measured across 84 core services. According to ESCWA, these services offer a fair representation of government services and illustrate the potential consequences if they are not provided effectively. Core services range across the health, education, work, transportation, tourism and social welfare sectors, among others.
Out of the 84 core services sectors, the GEMS Index report revealed that the UAE has a total of 70 that provide electronic services. It noted that e-Government services could be improved in the judicial and immigration services mechanisms -- each of which registered only two e-services provided within the country.
Commenting on the results, Hamad Obaid Al Mansoori, Telecommunications Regulatory Authority, TRA, Director-General, said, "Smart and advanced services are the key to customer happiness, therefore, we develop our government services in the UAE, inspired by the directives of our wise leadership, which emphasise on people as the goal and aim of the overall process of digital transformation."
"Achieving the first position in GEMS Maturity Index is the result of the collective efforts of the UAE Government towards full digital transformation," he added.
The Index allows to track the progress in the transition to e-channels for government service provision, by annual comparison of the national performance.
Salem Al Housani, Acting Deputy Director-General for Information an e-Government Sector, said, "This achievement comes one year after announcing the TRA as the entity responsible for smart government and digital transformation of the UAE’s model of digital government maturity."
"The UAE model of digital government maturity is a unified reference for electronic/digital government in the UAE, which guides the work on the various pillars of digital transformation, and measures the capability to create a digitally mature government and maintain its stability. TRA has launched the Digital Government Maturity Model to achieve the National OSI, and to reach the first position globally in OSI," he added.
According to the TRA, the UAE Government provides about 3,730 federal and local online services through its official portal. It also provides more than 270 procedural services at the federal level.
source: wam
Pension funds are the main pillar to manage assets in the advanced world
The UAE is likely to attract further overseas investments despite the obstacles facing foreign investors in the country, senior portfolio manager at Emirates NBD Richard Lee told Mubasher.
Lee also suggested a raft of solutions to overcome these challenges and provide a safe environment for long-term foreign investments.
Most of the GCC stock markets, mainly in the UAE, have joined or are on the verge of being included in the main indices, he indicated.
This step will help in attracting foreign investors and boosting the local assets, the bank’s senior portfolio manager said.
The markets are expected to benefit from overseas inflows related to the JP Morgan Emerging Markets Bond Global Index, he added.
He noted that pension funds are the main pillar to manage assets in the advanced world.
The absence of public or private pension plans in the UAE and the GCC region in general throws sand in wheels of assets management growth, Lee said.
He also highlighted that the restrictions imposed on foreign ownership and the government’s holding of assets have led to a lack of initial public offerings (IPOs).
Restrictions on foreign investors have reduced the trading volume in the local markets, he noted, projecting a positive outlook in the long-term for assets management.
The recently upgraded stocks in the JP Morgan EM index are likely to attract foreign liquidity until the end of the year.
Source: zawya
DMCC – the world’s flagship Free Zone and Government of Dubai Authority on commodities trade and enterprise – has completed three roadshows this month visiting Sweden, the United Kingdom and China highlighting the opportunities available through DMCC for companies seeking expansion to global markets through Dubai.
DMCC’s senior management visited the cities of Gothenburg and Stockholm in Sweden for the first time with its Made for Trade Live international corporate roadshow. The events were held in partnership with the Swedish Trade and Investment Council (‘Business Sweden’), and with the support of the United Arab Emirates Embassy in Sweden, and the Swedish Embassy in the UAE.
80 Swedish business leaders and senior delegates attended the events, and discussed wide ranging issues such as Dubai’s economic growth, governance, regulation and trade; as well as DMCC’s infrastructure, products and services, and the positive impact Expo 2020 Dubai will have on the city’s local economy and the opportunity on offer to foreign companies.
The next stop on the Made for Trade Live roadshow was London. Staged in partnership with the London Chamber of Commerce and Industry, over 100 leading names of British business gathered in the room to discuss the opportunities for growth presented by Dubai.
DMCC’s position as a commercial hub and gateway to global trade flows was the focus of the discussion, especially within the context ongoing developments connected to Brexit.
To date, there are over 1,400 British firms registered with DMCC.
“Our mandate at DMCC is to drive new trade flows to Dubai.
These roadshows enable us to do just that by communicating the Dubai story and highlighting DMCC’s commercial appeal to foreign businesses. Our first visit to Sweden was very successful, and we look forward to working more closely with the Swedish business community and building partnerships in a new market,” said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC.
“With bilateral trade between the UAE and the United Kingdom expected to reach approximately Dhs 121 billion by 2020, it was important to visit London again this year.
DMCC offers British firms an unprecedented opportunity to expand their enterprise, and the economic impact of Expo 2020 Dubai should be appealing to all ambitious companies looking to do business in this part of the world,” he added.
Peter Bishop, Deputy Executive Chief, London Chamber of Commerce and Industry, added: “The London Chamber of Commerce and Industry was delighted to partner with DMCC on this project. Representing the interests of London businesses, it made sense for us to support the latest Made for Trade Live roadshow and communicate the tremendous opportunity in Dubai for British firms.
Our members represent some of the finest businesses in the capital, and I was encouraged to learn of the support offered by DMCC to foreign companies seeking to do business in the Middle East, Africa and Asia and beyond.” Feryal Ahmadi, Chief Operating Officer at DMCC was invited by the Chinese Government to speak at the International Forum on Free Trade Zones Development, a two-day forum in Hainan focused on promoting free trade.
The event was organised by the China Council for the Promotion of International Trade (CCPIT) and The People’s Government of Hainan Province.
“DMCC has become a commercial hub and a critical connection point for trade ties between the UAE and China. Committed to driving the next phase of commercial growth between the two countries, DMCC has embarked on a comprehensive strategy to attract Chinese firms to DMCC.
We have launched a range of bespoke Chinese-language services that have seen a rise of Chinese companies set up in Dubai and register with DMCC. This is only the beginning and we look forward to creating more opportunity for Chinese firms in Dubai which will in turn, support China’s Belt and Road Initiative,” said Feryal Ahmadi, Chief Operating Officer, DMCC.
Since its inception, DMCC attracted over 3,000 businesses from 17 cities around the world to its international roadshows. The programme brings together business leaders interested in expanding their home base and offers them insights into the commercial appeal of Dubai and the opportunities it offers for growth in the region and beyond.
DMCC Headquartered in Dubai, DMCC is the world’s most interconnected Free Zone, and the leading trade and enterprise hub for commodities.
Whether developing vibrant neighbourhoods with world-class property like Jumeirah Lakes Towers (JLT) and the much-anticipated Uptown Dubai, or delivering high performance business services, DMCC provides everything its dynamic community needs to live, work and thrive. Made for Trade, DMCC is proud to sustain and grow Dubai’s position as the place to be for global trade today and long into the future.
Source: .Gulftoday
Updated: UAE launches permanent residency visas for investors and skilled expatriates- Dubai ruler
24 May 2019 Written by Admin AdminTweets from Sheikh Mohammed bin Rashid state that there are around 6,800 investors eligible for the first batch of visas
The United Arab Emirates has launched the permanent residency system for investors and exceptionally skilled foreigners, the ruler of Dubai and prime minister of the UAE announced.
The permanent residency visa named the ‘Golden Card’ will be granted to investors and exceptionally competent individuals in the fields of medicine, engineering, science, and all arts, according to the official twitter of account of Sheikh Mohammed bin Rashid Al Maktoum.
The first batch of those eligible for permanent residency for a "Golden Card" in the UAE reached 6,800 investors, whose total investments reach 100 billion UAE dirhams ($273 million), according to one Arabic tweet by the ruler of Dubai.
Another tweet added that the permanent residency will be granted to those who contribute positively to the success story of the UAE.
”We want them to be permanent partners with us in our journey. All residents in the UAE are our brothers and part of our great family in the UAE,” the Arabic tweet said.
According to Anir Chatterji, Middle East immigration & employment leader at PwC Legal, the UAE has been at the forefront of driving change to the existing immigration structure (which is broadly the same across the GCC) and for opening opportunities for highly-skilled professionals to benefit from longer-term residency - thereby offering these individuals greater investment security and stability.
“This new development of permanent residency is an extension of this policy and it is likely to be viewed positively by the ‘in-scope’ individuals and business community at large as it will open the doors to more foreign direct investment and, in turn, sustained economic activity and development,” he said in emailed comments to Zawya.
“Many expatriates call the UAE home and this new development will allow individuals to stay in the UAE for a longer period, which is welcome news for investors, entrepreneurs, specialised talents, researchers, and outstanding students (and their dependents),” he added.
The announcement follows the approval of the Saudi Cabinet last week for granting ‘green card’-style visas for highly-skilled foreigners and owners of capital funds with other sets of benefits as part of a ‘Privileged Residence System.
“The recent announcement in Saudi didn’t necessarily have a direct impact on this. That being said, there has been a drive to standardise a number of initiatives in the immigration space in the GCC countries, and to continue to find innovative ways to attract sustained economic investment activity and prosperity,” Chatterji said.
“This means the opening up of the historically static immigration regime is a key enabler for facilitating such change, and we consider that the recent announcement in the UAE is a welcome step for the business community at large,” he added.
Source: ZAWYA
Card payments in the UAE in 2018 were recorded at 70% compared to 68% in 2017.
The e-commerce sector in the UAE is all set to record a strong performance over the next few years, driven by an ever growing number of online shoppers, who are confident about making various purchases online.
Experts have noted that shoppers across the UAE and the Middle East and North Africa (Mena) region are enjoying the many benefits that come with using cards over cash for their transactions. The popularity of cards will only continue to grow as retailers in the region look to capitalise on their popularity with shoppers.
"With the world becoming more connected and consumers' trust on online shopping evolving, we believe that consumer spend via online retail platforms will see significant growth in the coming years," said Shahebaz Khan, general manager for the UAE at Visa.
"The UAE's e-commerce market is estimated to be worth $27.1 billion in 2022. The possibilities for merchants, financial institutions and consumers are enormous, and it is vital, therefore, that we continue to build consumers' trust and improve the infrastructure of online payments so that consumers can benefit from more seamless, rewarding and secure shopping experiences."
"We're seeing positive trends in terms of UAE consumers' attitudes towards e-commerce," he added. "As part of Visa's annual Security Week, we conducted a survey that examined how they perceive online shopping, with the findings revealing that 66 per cent of consumers in the UAE trust online shopping and that 70 per cent trust online payments."
Similarly, Girish Nanda, general manager, UAE & Oman at Mastercard, noted that transactions in the e-commerce space are growing at a much faster rate than transactions at Point-of-Sale (POS) terminals. "We expect this trend to continue in 2019 and 2020; there are two key factors driving this trend: first, the growth of online or e-commerce merchants with business models that can be scaled up faster than traditional brick and mortar models, and second, a growing number of retail, F&B and travel businesses going online with their operations.
Consumers across the globe now expect their cards to work across all popular platforms, whether it is for e-commerce, mobile wallets like Apple Pay, Google Pay, Samsung Pay or contactless payments.
The UAE is no different, given consumers' increasing demand for safe, secure and seamless payment experiences."
"We've seen a six-fold increase in contactless transactions in the UAE since 2017," he added. "In fact, one in every four transactions in the UAE is now contactless, highlighting two key trends: first, the country's gradual transition into a cashless economy, and second, growing confidence in card payments, mobile wallets and new payment technologies."
According to data published by Visa, cards are continuing to gain popularity over cash. When it came to digital transactions, card payments in the UAE in 2018 were recorded at 70 per cent, compared to 68 per cent in 2017.
Cash on delivery, during the same period, fell from 22 per cent in 2017 to 15 per cent last year. Visa's research also indicated that once shoppers have found new ways of payment, they are going to continue using them. Looking at contactless cards, 52 per cent of non-users said that they are likely to start using them in the near future.
Similarly, 46 per cent of non-users say that they are likely to start using digital wallets in near future.
Offering a review of the UAE's spend trends in 2018, Pankaj Kundra, SVP, head of Payments at Mashreq Bank, said that consumer card spends experienced a six per cent growth in 2018, compared to 2017. The biggest winner, he said, was e-commerce, which saw spending increase by 48 per cent as opposed to 2017. In terms of sector wise performance, growth was driven by food and beverage, which increased by 20 per cent, followed by a 16 per cent growth in supermarket spends. Hospitality continued growing with a modest increase of two per cent.
"While brick-and-mortar merchants have already expanded their product offering into the e-commerce space, this expansion may be at the cost of the cannibalisation of their traditional business, through the equivalent growth in their e-commerce channel," he said. "However, merchants who have been unable to expand their offering into the e-commerce space can expect to lose business to innovative and multi-channel competitors. The growth of e-commerce marketplaces, such as Souq and Noon, is encouraging increased confidence in buying online, which in turn is driving this growth. The UAE is also seeing a rapid rise in the use of e-commerce service providers like ride aggregators, who have delivered growth of 12 per cent, and food delivery services have seen a growth of over 100 per cent."
"For 2019, as we gear up towards Expo 2020, we are very optimistic about sustained growth in payments volume in the UAE," he added.
"We have identified four key trends that we anticipate will drive transaction volumes: continued e-commerce growth, contactless gaining more traction via increased usage of digital wallets, cash-to-card conversion in segments like B2B payments, education, government, real estate and sustained increase in international spends."
Sanjit Gill, general manager, Middle East at Collinson, revealed that the evolving world of loyalty means that brands must continuously adapt and look for ways to meet their customers' needs.
"Consumers shop through a mixture of in-store and online, providing data at every touchpoint in their browsing and purchasing journey.
This data is there for retailers to respond to, providing it is collated into a single customer view.
If used effectively, this single view can tell you who your customers are and what they want. If brands choose to ignore this data, however, they stand to lose out.
Our research found that 81 per cent of UAE consumers feel frustrated when promotions aren't aligned in-store and online. Not using available data effectively can leave customers feeling uncherished and as though their custom isn't a priority."
In addition, 78 per cent of UAE consumers would be unhappy if retail brands they were loyal to had poor communication around the latest promotions and discounts.
"Brands have a duty of service to offer better, more personalised communication experiences with the customer data they accrue, otherwise they risk people opting out of consent and losing their initial attention, and perhaps in the long term, their loyalty," he said.
Source: khaleejtimes
Now UAE consumers can start banking via WhatsApp, Emirates NBD announces
27 Apr 2019 Written by Admin AdminPeople can do more than just chat on messaging app, as first 'chat bank' service rolls out.
Dubai: So much has changed in the way people communicate and share updates since the introduction of social media and instant messaging apps. Now, the way people bank is changing, too.
One of the leading financial institutions in UAE has rolled out for the first time a chat banking solution, enabling savers and banking customers in the country to execute financial transactions on WhatsApp.
Emirates NBD confirmed on Sunday that its customers can now “chat bank” via the instant messaging app, said to be a first in the Middle East region.
The new service seeks to tap the growing population of consumers who bank via the internet on a regular basis.
The bank said it has seen a rapid increase in digital transactions, with over half of its customers actively using mobile and online banking The latest innovative solution is made possible through Infobip, an easy-to-use secure channel that lets people do banking transactions without having to log in to their online accounts or walk into a physical branch.
With the “chat bank” service, customers, particularly those who are constantly on their mobile phones, can now check via WhatsApp their account balances, the last five transactions of their accounts or credit cards and last credit-card mini statements.
They can also temporarily block or unblock cards and request for new chequebooks or the latest foreign exchange rates.
Lest users are afraid the transaction can easily get hacked into by fraudsters, the bank assured that all messages on its “WhatsApp Business” account are encrypted.
To ensure the communication is secure and official, customers only need to watch out for the green badge next to the bank’s name in the chat window.
And what’s more, customers can bank via WhatsApp anytime, as it’s available 24/7.
“We believe the new offering will complement our existing ddigital banking channels and offer security along with the simplicity and convenience of instant responses, 24/7,” said Abdulla Qassem, group chief operating officer of Emirates NBD.
“WhatsApp is a simple, reliable and private way to talk to anyone in the world, which will lend further convenience to banking with Emirates NBD," added Suvo Sarkar, senior vice president, head of retail banking and wealth management at Emirates NBD.
How to subscribe?
Customers are requested to SMS ‘WhatsApp’ to 4456 using their registered mobile number, or alternatively, they can subscribe through mobile or online banking, to start banking via WhatsApp.
Source: gulfnews
