AI & Innovation: The Digital Revolution
Eljo JP, Chief Business Officer at Finesse, on how the company is transforming business with AI and digital innovation.
Introduction
Introduction
Welcome to this special issue of MEA Business, dedicated to celebrating the MEA Business Achievement Awards. At MEA Business, we are committed to delivering comprehensive business news across the Middle East and Africa. Our mission is to provide a dynamic platform where business leaders can share ideas, engage in meaningful debates, and forge strategic partnerships that will shape the future of the region.
Our goal is to equip business leaders and professionals with the skills and insights they need to thrive in these dynamic regions. By focusing on positive news stories, detailed case studies, and inspiring interviews, we aim to foster a narrative of growth and success.
MEA Business magazine offers clear and concise information through various sections, including up-to-the-minute news, market updates, and exclusive CEO interviews. Our readers benefit from a comprehensive blend of our printed magazine, e-magazine, and social media content, providing coverage on the latest developments in the Middle East and Africa.
Additionally, MEA Business proudly features several sector specials throughout the year, tailored to coincide with major industry exhibitions and events. In line with our commitment to celebrating industry excellence, this issue culminates with a special focus on the MEA Business Technology Awards 2024, recognizing outstanding contributions and innovative breakthroughs across various sectors.
We hope you find this issue both informative and inspiring.
Kenneth Mitchen Publisher, MEABusiness
Kenneth Mitchen Publisher, MEA Business
partners with Nikki Beach Global to bring branded waterfront residences to Ras Al Khaimah
British digital logistics company Zencargo launches operations in the UAE to expand in MENA
Emirates SkyCargo advances its digital customer experience with CargoAi
Announces New Point of Presence for Cloud Security in the UAE Ahead of GITEX Global 2024
Hotpack celebrates milestone achievement of reaching 50 retail stores across the MEA
Etihad Cargo ramps up cargo capacity for China
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EXECUTIVE DIRECTOR AND PUBLISHER : Kenneth Mitchen
Email: ken.mitchen@mea-finance.com
EXECUTIVE DIRECTOR ANDPUBLISHER : Kenneth Mitchen
Email: ken.mitchen@mea-finance.com
Salam Mobile Renews Partnership with Zain KSA Until 2030
New Agreement Aims to Enhance Service Offerings and Leverage Advanced 5G Infrastructure for Digital Growth in Saudi Arabia
Our partnership with Zain KSA has been instrumental in supporting our growth and expansion plans
The Integrated Telecom Company (Salam Mobile) has renewed its strategic partnership with Zain KSA, the leading telecommunications and digital services provider in Saudi Arabia. This new agreement extends their collaboration until 2030, with a focus on expanding and enhancing Salam Mobile’s services by leveraging Zain KSA’s state-ofthe-art hosting capabilities and advanced telecommunications infrastructure.
This collaboration aligns with Salam Mobile’s strategy to enhance user
experiences, strengthen its market presence, and expand its services across the Kingdom. By leveraging Zain KSA’s advanced 5G infrastructure and digital capabilities, Salam Mobile aims to provide superior mobile solutions while contributing to the Kingdom’s broader digital objectives. The partnership further underscores Zain KSA’s commitment to promoting digital inclusion and advancing Saudi Arabia’s telecommunications and smart services sectors. Through strategic investments in innovation and
expansion, Zain KSA empowers mobile virtual network operators (MVNOs) like Salam Mobile, along with other digital service providers, to thrive and actively participate in the Kingdom’s digital transformation journey.
Commenting on the collaboration, Salam Mobile CEO, Eng. Ahmed Al-Anqari, said: “Our partnership with Zain KSA has been instrumental in supporting our growth and expansion plans, playing a pivotal role in our transformation as a key contributor to the Kingdom’s digital transformation journey. With the renewal of this strategic partnership, we will leverage one of the most advanced 5G networks in the region, enabling us to expand our coverage and enhance our service and product portfolio for both individuals and businesses. This move reaffirms our commitment to building strong partnerships and harnessing cutting-edge technologies to accelerate digital transformation and support the Kingdom’s broader objectives.”
Acting CEO of Zain KSA, Eng. Saad bin Abdulrahman Al-Sadhan, commented: “We remain committed to supporting the realization of Saudi Vision 2030 and our leadership’s aspirations to transform the Kingdom into a global hub of innovation and a smart digital economy. As a leading telecommunications provider, we recognize our duty to promote digital inclusion, which enhances the daily experiences of our customers and helps them achieve their goals. Our responsibility also extends to our partners in this vital telecom sector, particularly mobile virtual network operators (MVNOs). Empowerment drives impact, and inclusive partnerships yield widespread benefits. This is why we are focused on creating a level playing field that serves everyone and improves the overall quality of services and solutions. In line with this vision, we are pleased to extend our strategic partnership with Salam Mobile until 2030, building on years of successful collaboration.”
The partnership between Zain KSA and Salam Mobile, initiated in 2021 with Salam’s licensing to offer mobile virtual network services, remains robust utilizing Zain KSA’s advanced infrastructure.
Scalo technologies: guiding startups into global markets
Empowering Founders with Tailored Support for Global Growth in the Tech and Gaming Sectors
Scalo Technologies is a Dubai tech venture company which works closely with founders to scale startups for expansion into global markets.
Beyond the initial funding, we provide startups with all the other practical support and guidance they need for rapid growth, on a founder-to-founder basis.
Scalo specializes in AI, SaaS, HPC, B2B services, gaming and other frontier sectors of the digital economy, and we focus on quality over quantity, opting for fewer deals with more substantial investments.
Dubai, the home of GITEX, is the perfect international hub to drive our plans in the tech and gaming sectors, with its
high level of business activity, a growing economy, and strong government initiatives to attract entrepreneurs and professionals from across the globe.
The city is becoming a global hub for artificial intelligence, which has eased its way into our daily routines, making changes beyond our wildest dreams.
Scalo is part of this revolution, supporting and developing incredible technologies for the masses, and making these technologies more accessible. We’re dedicated to developing technology that positively impacts the world we live in, to build a better future.
Like AI that brings access to finance and education for people in poor and remote regions. So, we’re looking for like-minded founders.
Gaming is huge, with about 2.6 billion gamers worldwide, and growing. PWC says the global value of gaming could rise well beyond $300 billion by 2027. We’re very interested in Web3 and want to be a major player in the sector. One of our investments is Hexacore, a mobile game publisher.
Hexacore lets players own in-game assets, and be involved in the way games are managed. We’re excited to help change the way people play games with web3.
Our investment has helped Hexacore grow its team, launch games on Telegram, and speed up its flagship space fantasy product for global launch next year.
Another of our investments, Megarender, is a cloud-based 3D rendering company that makes life easier for small business owners and freelancers.
Megarender them create 3D scenes quickly without needing expensive computers.
Our investment has boosted the online service by adding one of the world’s most popular 3d computer graphics softwares. We’ve also added thousands of registered users from 25 countries, including Saudi Arabia, UAE, US and the EU.
Voctiv is a leading conversational AI company that makes virtual assistants for businesses to automate customer support.
It’s helpful robot receptionist who answers customer calls and messages, to help people get on with their work. Investment by Scalo led to the launch of a mobile app to help small business owners and self-employed.
Noah is the all-in-one money app ensuring swift and secure transactions to pay, save, earn, and lend money. It aims to transform global payments by providing businesses with same-day settlement, and support for over 60 currencies. As a result of our investment, Noah has added new cash withdrawal options in Brazil, Vietnam, Africa, Europe.
ZainTECH and DATANUUM enter strategic partnership to elevate Customer Data Enrichment, Engagement & Retention
Unlocking Customer Data Potential with Advanced Compliant Solutions for Optimized Marketing Spend
ZainTECH, the integrated digital solutions provider of Zain Group entered a strategic partnership with DATANUUM, the comprehensive customer data enrichment, engagement and retention platform for retailers and healthcare businesses. This collaboration aims to provide innovative solutions that enhance customer data driven growth and retention capabilities for businesses across the Middle East and beyond.
This partnership will leverage ZainTECH’s extensive regional expertise in implementing compliant cloud infrastructures with DATANUUM’s cutting edge platform, to address the growing need for data privacy and regulatory compliance in the region. This should appeal to businesses looking for robust solutions to handle data securely while optimizing customer relationships, engagement and marketing spend.
Andrew Hanna, CEO of ZainTECH commented, “ZainTECH’s mission is to deliver state-of-the-art digital solutions to our clients and exceed expectations while doing so. By combining DATANUUM’s solutions with our services, we can offer businesses with compliant value-added technologies that support differentiation and growth.”
Salam Saadeh, CEO of DATANUUM said, “Partnering with ZainTECH represents a significant step forward in our mission to empower B2C businesses in the MENA region and beyond with the best data enrichment and engagement capabilities. ZainTECH’s robust infrastructure and regional market presence will enable us to reach more businesses and help them transform their customer interactions. The collaboration will drive innovation and growth for both our clients.”
DATANUUM was founded from the deep
understanding of the daily challenges faced by businesses to consistently capture customer data, enrich it, retain customers, manage the full customer lifecycle, increase customer life-time value, while providing a consistent customer experience.
The partnership will initially focus on Retail and Healthcare establishments offering several key benefits, including:
1. Data Privacy Compliance: Through helping businesses meet compliance without compromising performance.
2. Enhanced Customer Engagement and Retention: Through implementing hyperpersonalized cutting-edge customer engagement and retention tools, allowing businesses to focus on growing and retaining their customer base, while driving long-term loyalty.
3. Maximized Digital Advertising ROI:
Through easily and efficiently leveraging their secure customer data and behavior, businesses can decrease customer acquisition costs, improve ROI on lead acquisition marketing initiatives, while ensuring accurate attribution and performance tracking.
4. Cost Efficiency and Scalability: Through ZainTECH’s scalable cloud solutions, coupled with DATANUUM’s flexible engagement tools, businesses can adapt their customer strategies as they scale, optimizing both costs and performance.
Together, ZainTECH and DATANUUM are committed to driving digital transformation and supporting regional businesses to unlock the full potential of their customer data in a simple, integrated and efficient manner, that will elevate customer relationships and engagement, as well as optimize marketing spend.
Andrew Hanna, CEO of ZainTECH & Ms Salam Saadeh, CEO of DATANUUM (center) with their respective senior executives
ME A Business Technolog y Achievement Awards 2024 (Winners)
The winners of the MEA Business Technology Achievement Awards 2024 were recently announced. The awards recognise exceptional excellence in the technology sector The award winners’ presentations will take place during GITEX Technology Week from 14-18th October 2024.
Financial Technology
Data Platforms
AI and Machine Learning
Exceptional Products/Services (Achievement Award) Bitpanda
Exceptional Products/Services (Achievements) DIZLEE
Exceptional Products/Services (Achievement Award)
Epicor Software Corporation
Telecoms Innovative Collaborations and Partnerships (Achievement Award) Ericsson
Hardware New Product/Service launch (Achievement Award) FINESSE
Security and Cyber Security
Cloud Services
AI and Machine Learning
Ground-breaking products/services (Achievement Award) Forcepoint
New Technology (Achievement Award) Google Cloud
Ground-breaking products/services (Achievement Award) IBM
Sector Based Technology Government Sector - Innovative Collaborations and Partnerships (Achievement Award) IT Max Global
AI and Machine Learning New Product/Service launch (Achievement Award) Juniper Networks
Open Nomination Award Outstanding technology Sustainability Initiative KROHNE Group
Sector Based Technology Aviation Technology - Exceptional Leadership - (Personal Achievement Awards) Mehmet Kerem Ozturk - TAV Technologies
Cloud Services
Ground-breaking products/services (Achievement Award)
Open Nomination Award New Product/Service launch (Achievement Award)
Software Exceptional Products/Services (Achievement Award)
Telecoms New Technology (Achievement Award)
Financial Technology Exceptional Leadership - (Personal Achievement Awards)
Nishit Doshi - Managing Director, Product, Data & Propositions Magnati
Telecoms New Product/Service Launch (Achievement Award) Nokia
Telecoms Ground-breaking Products/Services (Achievement Award) Nokia
AI and Machine Learning Innovative Collaborations and Partnerships (Achievement Award) Nokia Bell Labs and e&
Cloud Services
Exceptional Products/Services (Achievement Award) Nutanix
Hardware Ground-breaking products/services (Achievement Award) NVIDIA
Security and Cyber Security Exceptional Products/Services (Achievement Award) Omantel
Cloud Services New Product/Service launch (Achievement Award) Omantel
Open Nomination Award Home Broadband : New Technology (Achievement Award) Omantel
AI and Machine Learning New Technology (Achievement Award) Open AI
Financial Technology Ground-breaking products/services (Achievement Award) Policybazaar.ae
AI and Machine Learning AI and Machine Learning + Technology Sector Investment: Exceptional Leadership Rashit Makhat (Scalo Technologies)
Telecoms Ground-breaking products/services (Achievement Award) Samsung
Financial Technology Outstanding leadership and growth (Achievement Award) SAS
Open Nomination Award New Technology (Achievement Award) Saudi Telecom Company
Telecoms Exceptional Products/Services (Achievement Award) Saudi Telecom Company
Sector Based Technology Oil & Gas Sector - Exceptional Products/Services (Achievement Award) SharpEagle Technology
Ecommerce Exceptional Products/Services (Achievement Award) Shopify
Open Nomination Award Technology Marketing Campaign Excellence soundcore
Financial Technology Outstanding sector leadership and growth (Achievement Award) TAMAM
Sector Based Technology Airport Management Technology - Outstanding sector leadership and growth (Achievement Award) TAV Technologies
Telecoms New Product/Service launch (Achievement Award) T-Mobile
Security and Cyber Security Best Cyber Security Provider in Finance Trend Micro
Software Outstanding sector leadership and growth (Achievement Award) Trimble
Software Ground-breaking products/services (Achievement Award) Veeam Software
AI and Machine Learning Outstanding sector leadership and growth (Achievement Award) Webidoo
Open Nomination Award Innovative Collaborations and Partnerships (Achievements) ZainTech and Datanuum
Cisco Announces New Point of Presence for Cloud Security in the UAE Ahead of GITEX Global 2024
Empowering Local Organizations with Advanced Cybersecurity Solutions to Combat Evolving Threats
Ahead of GITEX Global 2024, Cisco announces plans to establish a Point of Presence (PoP) for clouddelivered security in the United Arab Emirates (UAE). This initiative aims to help customers protect their users, infrastructure, and investments against threat actors. The announcement is part of Cisco’s continued effort to empower organizations locally and regionally with flexible security services and data loss protection for devices, remote users and distributed locations. Cisco targets service availability by end of 2024 for the Secure Service Edge (SSE) PoP.
“Today’s announcement reaffirms Cisco’s commitment to rapidly extend its global reach for customers and provide advanced cloud security protection and services to the UAE and surrounding region,” said Abdelilah Nejjari, Managing Director for Cisco in the Gulf and Levant region. “Our goal is to help companies in the UAE accelerate the deployment of cybersecurity capabilities by adopting a platform approach. This will enable the seamless integration of various solutions within their stack, allowing them to maximize their potential.”
The new PoP will play an important role in delivering agile, highly resilient, highcapacity secure access closer to users in the UAE. It will support Cisco’s cloud services including its Secure Service Edge (SSE) solution, Cisco Secure Access. This cloud-delivered platform helps organizations solve a variety of security challenges.
Empowering Users and Organizations
Users can now safely and seamlessly access the resources and apps they need, regardless of protocol, port or level of customization. As a result, customers can move away from the complex web
Abdelilah Nejjari, Managing Director for Gulf region at Cisco. Image Courtesy: Cisco
of point products that weren’t designed to support today’s highly distributed environment. With Cisco Secure Access, decisions about how users connect to the Internet, Software-as-a-Service (SaaS) and private applications are automated, removing complexity and helping to increase productivity.
“This initiative marks a new milestone in Cisco’s commitment to help strengthen the region’s cybersecurity efforts,” Fady Younes, Managing Director, Cybersecurity, Middle East, Africa and Romania, commented. “In February, we announced a local data center for our Duo multifactor authentication (MFA) offering and I am pleased to say that this is already up and running, in line with our original schedule. As a next step, with the new PoP for the converged cloud security SSE solution, grounded in zero trust, to
provide our customers with seamless, transparent, and secure access from anything to anywhere.”
Cybersecurity Readiness in the UAE
In the UAE, organizations will experience the benefits of Cisco’s SSE PoP with the scalability of public cloud. The PoP will be carrier-neutral and available on any Internet Service Provider (ISP) in UAE.
Findings of the Cisco Cybersecurity Readiness Index underscore the importance of security resilience. The study revealed that in the UAE, only 2% of organizations are at the Mature stage of readiness, 33% are at the Progressive stage, 54% are Formative and 11% are Beginners. It also found that 73% of companies expect a cybersecurity incident to disrupt their business in the next 12-24 months.
13-16 OCTOBER 2024 - DUBAI HAR BOUR REGISTER
The Growing Demand for Premium, Sustainable, and Flexible Office Spaces
Bayti Real Estate CEO Tariq Williams Discusses
Key Trends Shaping the Future of Office Spaces in the
UAE
What key trends are you seeing in the UAE’s commercial real estate market, and how are they shaping the future of office spaces?
Tariq: The shift towards flexible and adaptable office spaces is one of the most significant trends we’re seeing at the moment. There is an accelerated demand for spaces that are both functional and scalable. The rise of hybrid work models is driving an increasing preference by businesses for high-quality, well-located offices that offer collaborative environments with the latest technological and sustainability features. This is especially true in key business districts such as Business Bay, Downtown Dubai, and DIFC as more and more companies are no longer satisfied with traditional, static office layouts.
How has the demand for premium office space evolved in the region, and what does it indicate about the future of commercial real estate in the UAE?
Tariq: The demand for premium office spaces has been on a steady rise, driven by both local and international businesses. In Dubai, prime locations are becoming scarce due to high demand, which is fueling competitive bidding for Grade A spaces. This trend reflects a larger shift toward quality over quantity, as businesses prioritize high-end locations that offer prestige, convenience, and the ability to attract top talent. Looking ahead, I believe this demand will continue to grow, particularly as Dubai strengthens its position as a global business hub. How are global economic shifts and
Dubai’s urban planning initiatives influencing real estate investment in the region?
Tariq: Dubai’s real estate market is underpinned by strong economic fundamentals, which continue to attract global investors. Strategic initiatives like the Dubai 2040 Urban Master Plan are enhancing the city’s infrastructure and its global appeal,
with long-term investments creating a stable environment for both domestic and international businesses to thrive. As a result, we’re seeing sustained demand for premium office spaces, driven by companies looking for longterm growth in a region that offers both economic stability and businessfriendly policies.
How has the growing presence of
Tariq Williams, CEO of Bayti Real Estates
international businesses in Dubai impacted the local office space market?
Tariq: The influx of international businesses, especially post-pandemic, has significantly boosted demand for office spaces in Dubai. Companies from Europe, Asia, and North America are setting up regional headquarters here, drawn by Dubai’s strategic location, business-friendly policies, and robust infrastructure. This demand has driven up the value of premium office spaces, especially in prime locations. It has also created a more competitive market, with businesses looking for spaces that reflect their global stature while offering flexibility and scalability for future growth. We expect this trend to continue as Dubai solidifies its position as a leading global business hub.
Are there any emerging business districts in Dubai or the UAE that you think investors should be aware of?
Tariq: While traditional business hubs like Business Bay and DIFC continue to attract high demand, we’re seeing growing interest in emerging districts like Dubai Hills Business Park and Uptown Tower. These areas offer the same level of prestige but with a modern twist— cutting-edge infrastructure, access to new facilities, and the ability to attract businesses looking for less saturated markets. They’re becoming particularly attractive to tech companies, startups, and businesses that value a fresh, innovative environment. I would encourage investors to look closely at these up-and-coming areas as they have the potential for strong returns in the near future.
How have corporate work trends, particularly the shift to hybrid and remote work, impacted office space requirements in the UAE?
Tariq: Hybrid work models have fundamentally changed the way businesses approach office space. Companies are moving away from traditional, large-scale offices and are instead opting for smaller, premium
spaces that are fully serviced and offer flexibility. This allows them to adapt to changing workforce needs while maintaining a prestigious corporate presence. As a result, we’ve seen a surge in demand for Grade A office spaces that provide not only functionality but also flexibility to accommodate hybrid teams.
With sustainability being a growing priority globally, how are businesses in the UAE integrating this into their office space decisions?
Tariq: Sustainability is no longer just a buzzword—it’s a priority for many businesses. Companies are looking for office spaces that not only enhance their corporate image but also align with their sustainability goals. This means energy-efficient buildings, smart technology integration, and environmentally responsible practices are features that companies are also looking for when choosing their office location. We are indeed seeing a growing preference for spaces that have sustainability certifications and are designed to reduce the carbon footprint in its daily operations.
Can you expand on the specific sustainability features that are in demand in office spaces?
Tariq: Sustainability is becoming increasingly important in commercial real estate. Businesses are looking for offices that are energy efficient, use environmentally friendly materials, and have low carbon footprints. Key features in demand include energyefficient lighting, HVAC systems, and water-saving fixtures. Additionally, many companies are seeking buildings with LEED or similar green certifications, which not only reduce operational costs but also enhance the company’s reputation. Smart building technologies, such as automated energy management systems, are also gaining popularity as they allow businesses to monitor and control their energy usage more effectively.
What role does technology play in
shaping the future of the real estate industry in the UAE?
Tariq: Technology is playing a transformative role in real estate. From smart buildings that use AI to optimize energy efficiency, to virtual tours that allow potential tenants or buyers to explore properties remotely, technology is enhancing both the user experience and operational efficiency. In the commercial space, we’re seeing more demand for offices that are equipped with the latest tech, whether it’s advanced security systems, automated building controls, or highspeed connectivity.
What should businesses consider when investing in office spaces in Dubai’s competitive market?
Tariq: Companies should focus on scalability, flexibility, and location. Premium office spaces in strategic locations, such as Business Bay and DIFC, will continue to appreciate in value as demand grows. Businesses should also seek spaces that can adapt to future needs, whether that’s through technology integration or sustainability features. Ultimately, the right office space can enhance a company’s image, improve employee productivity, and offer long-term financial benefits.
With increasing competition for prime office spaces, how can businesses ensure they secure the best locations in such a dynamic market?
Tariq: The key is to act strategically and be proactive. Businesses need to have a clear understanding of their current and future space requirements, and they should work with real estate partners who understand the market and can help them navigate the competition. At Bayti Real Estate, we help our clients identify opportunities early and provide them with insights on market trends and emerging areas. Securing a prime location requires not just quick decision-making but also a forward-looking approach that takes into account potential growth and future needs.
Empowering Business Through AI, Innovation, and Digital Transformation
Digital transformation is reshaping industries at a rapid pace. Finesse has been helping businesses stay ahead by leveraging AI, cloud technologies, and enhanced cybersecurity. In this Q&A, Eljo JP, Chief Business Officer at Finesse, shares insights on the key trends and how these innovations are redefining customer experiences and business success.
What are the major trends you are seeing in digital transformation among your clients?
As a trusted partner to a diverse range of clients and product vendors across multiple industries, Finesse has a unique vantage point on the digital transformation landscape. Through our collaborative work with clients and solution partners, we’ve gained a deep understanding of the complex challenges and opportunities that organizations face in their digital journeys. This proximity to the market has allowed us to identify key patterns and trends that are shaping the digital transformation agenda for businesses today.
Here are some of the major trends we’re seeing among our clients:
Integration of AI and Automation: AI and automation are becoming central to digital transformation strategies. From automating routine tasks to implementing intelligent systems for customer service and supply chain management, businesses are using these technologies to enhance efficiency and reduce operational costs.
Increased Adoption of Cloud Technologies: Many businesses are shifting to cloud-based solutions to gain scalability, flexibility, and costeffectiveness. This move is enabling them to streamline operations, reduce infrastructure costs, and enhance collaboration across teams.
Focus on Cybersecurity: With the
rise in cyber threats, there is a growing emphasis on robust cybersecurity measures. Businesses are investing more in comprehensive security solutions to protect their data and maintain trust with their customers.
IoT and Smart Solutions: The Internet of Things (IoT) is gaining momentum, especially in industries like manufacturing, healthcare, and logistics. By connecting devices and systems, businesses are achieving greater operational visibility, predictive maintenance, and improved asset management.
Digital Skills and Workforce Transformation: As digital tools and platforms become more prevalent, there is an increasing need for upskilling employees. Businesses are investing in training programs to equip their workforce with the necessary digital skills to thrive in a tech-driven environment.
What are the key components of Finesse’s digital transformation strategy?
Finesse’s digital transformation strategy is built around three core business units, each playing a crucial role in guiding businesses through the digital landscape and ensuring customer success:
1CXO (Advisory services): This unit provides strategic guidance to senior executives, helping them develop a clear digital transformation roadmap, technology strategy, and ensure alignment between business and technology. They also offer expertise in
cyber strategy, risk, compliance, data rights, and privacy. This helps customers by providing a clear vision and direction for their digital journey, minimizing risk, and ensuring compliance with evolving regulations.
Finesse - Enabling Digital Transformation: Finesse offers a suite of advanced digital solutions designed to enhance business intelligence, streamline operations, and improve customer and employee experiences. These solutions include AI-powered chatbots, Business Intelligence (BI)
Eljo JP, Chief Business Officer at Finesse
Finesse offers
a suite of advanced digital solutions designed to enhance
business
intelligence, streamline operations, and improve customer and employee experiences.
and Analytics, Customer Experience Management (CEM), Enterprise Content and Treasury Management Systems, AI powered multi experience platform, Human Capital Management (HCM), Robotic Process Automation (RPA), and Fully Managed IT Services. This empowers customers to optimize their processes, gain valuable insights, and deliver exceptional experiences to their own customers and employees.
Finesse CyberHub (Securing digital Transformation): Finesse’s state-ofthe-art cybersecurity solution provides comprehensive protection through Managed Security Services (MSS), Digital Risk and Compliance Solutions (DRCS), Zero Trust Frameworks (ZTF), Cloud and Application Assurance (CAA), Digital Identity Management (DIM), Advanced Data Protection and Privacy Offerings , Security Assessment Services, Threat Intelligence (TI), Incident Response, and Compliance Management. This safeguards customers from evolving cyber threats, ensures data privacy and security, and builds trust with their stakeholders.
This integrated approach ensures that Finesse provides tailored solutions to address the specific needs and challenges of each client, helping them navigate the complexities of digital transformation and stay ahead of the competition. By combining strategic guidance, advanced solutions, and robust cybersecurity, Finesse empowers customers to achieve their digital transformation goals, enhance their business performance, and gain a
competitive edge.
How is Finesse leveraging AI to reshape customer experiences and drive business outcomes for its clients?
Finesse is leveraging artificial intelligence to revolutionize customer experiences and drive business outcomes for its clients. As customer expectations continue to rise, businesses must adapt by embracing innovative technologies. Finesse harnesses the power of AI to deliver personalized, efficient, and secure interactions that exceed customer expectations. Here are six key ways that Finesse is reshaping the customer experience through AI:
Cyberhub 24*7 CSOC Cybersecurity Solutions: Finesse integrates AI into its Cyber Security Operations Center (CSOC) for round-the-clock threat detection and response. AI algorithms analyze vast amounts of network data in real-time to identify anomalies and potential security breaches. Machine learning models are trained on historical threats to predict future vulnerabilities and automate responses, ensuring clients can counteract cyber threats swiftly and efficiently. This proactive approach helps clients secure their data and maintain customer trust, creating a safe online environment.
Enhanced Customer Support: By implementing AI-powered chatbots and virtual assistants, Finesse delivers efficient 24/7 customer support. These AI systems use natural language
processing (NLP) to understand and respond to customer inquiries in real time. They can handle a high volume of routine questions, recommend solutions, and facilitate transactions, allowing human agents to focus on more complex customer issues. This AI-driven support improves service quality, reduces response times, and increases customer satisfaction.
Personalized Interactions: Finesse employs AI-driven analytics to gather and analyze customer data from various touchpoints. This helps businesses understand individual customer preferences, behaviors, and purchase history. Using this information, organizations can craft personalized marketing messages and tailored communications that resonate more deeply with each customer. This level of personalization not only enhances customer satisfaction but also boosts engagement and loyalty.
Predictive Analytics and Proactive Engagement: Finesse leverages predictive analytics powered by AI to foresee customer needs and preferences based on historical data and behavior patterns. Machine learning algorithms analyze this data to identify trends and predict future actions, enabling businesses to engage proactively. For instance, by anticipating potential issues with a product or service, organizations can reach out to customers with solutions before they experience problems, thereby enhancing customer experiences and reducing churn.
Sentiment Analysis for Real-Time Insights: By employing AI-driven sentiment analysis tools, Finesse monitors customer feedback and emotions across various channels, including social media, surveys, and customer support interactions. These tools analyze text and voice data to discern sentiment, whether positive, negative, or neutral. This real-time feedback enables businesses to understand customer perceptions and sentiment trends, allowing them to adjust their strategies promptly and refine their offerings to better align with customer expectations.
Technological Momentum
With Islamic finance now entering what has been described as the third phase of its evolution, and supported by the increasing application of technology, it seems poised to maintain its growth and continue to expand its appeal
Digital transformation has been a longstanding trend in Islamic finance, but it has gained momentum in the recent past, driven by the rising popularity of financial technology (fintech) firms and innovative operating models.
The Islamic finance sector is rapidly growing, with an increasing number of fintech firms and neobanks offering shariah-compliant structured finance solutions. The adoption of innovative technology such as blockchain, artificial intelligence (AI) and the cloud is expected to have a positive impact on the Islamic finance sector, creating new benefits and opportunities for banks and consumers.
“Though technology is agnostic to either Islamic or conventional finance, the untapped opportunities within Islamic finance are eminent,” Suhaimi Ali, Assistant Governor of Bank Negara Malaysia, said in an address at the 3rd Annual Islamic Fintech Leaders’ Summit in Kuala Lumpur.
“We can consider this from the perspective of traditional roles of Islamic financial institutions, as well as from a collaborative viewpoint, given the emergence of fintech companies offering diverse, innovative and potentially disruptive solutions.”
The $3 trillion Islamic finance market continues its growth path and
is projected to grow by around 10% per year in 2023/2024, similar to 2022. However, S&P Global said the industry is being confronted by two interrelated challenges – the high complexity of structures and transactions that reduce its attractiveness beyond core Islamic markets and a significant concentration in the Middle East and Southeast Asia.
The increased digitisation of Islamic finance and collaboration with fintech companies holds the potential to fortify the resilience of the industry in volatile environments while paving the way for new growth opportunities.
S&P Global said that improving access to bank services through digital channels, issuing sukuk or Islamic bonds on a digital platform using blockchain technology, and advanced cybersecurity measures can bolster Islamic finance’s ability to withstand challenges.
The impact of innovative technologies on Islamic finances comes in four parts: connectivity, automation, innovation and decision-making. These advancements allow financial institutions not only to acquire customers and cross-sell but
also streamline operations, advance customer engagement and elevate overall user experience.
Pockets of opportunity
Global Sukuk issuance is projected to reach approximately $ 170 billion in 2024, compared to $168.4 billion in 2023 and $179.4 billion in 2022, according to S&P Global.
The surge in Sukuk or Islamic bond issuance has pushed the total global outstanding Sukuk to an estimated $875 billion, spanning 27 currencies and surpassing the size of both the European high-yield market and the Swiss bond market.
Saudi Arabia, the Arab world’s biggest economy, raised $5 billion in May through the sale of dollar-denominated Sukuk as the kingdom seeks to plug its budget deficit and fund its economic diversification drive under Vision.
The issuance was followed by a string of offerings from countries such as Bahrain, Indonesia, the Philippines, Egypt and South Africa, as well as numerous financial institutions, development banks and government-related entities across the Middle East.
Saudi Arabia’s Public Investment Fund raised $2 billion through the sale of Islamic bonds in February, Abu Dhabi’s Mubadala raised $1 billion in March and Sharjah Islamic Bank issued a $500 million Sukuk in June.
However, the issuance of Islamic bonds faces hurdles such as higher issuance costs, time-to-market complexity compared with bonds and bank loans, and standardisation gaps. The industry is largely fragmented and plagued with several challenges, including the uneven implementation of rules and the probability of human error due to the multiple intermediaries involved in the issuance process.
The rapid advancement in financial technologies, increasing socio-economic pressures and infrastructure investments are opening doors to disruptive innovation in Islamic capital markets.
The tokenisation of Islamic bonds by leveraging blockchain technology holds the potential to reduce the various costs associated with the issuance process.
“Blockchain technologies hold promise to modernise Shariah compliance through embedded smart contracts, updated and transparent management of obligatory charitable giving (Zakat) and a more efficient platform for Sukuk issuance,” said Moody’s.
Islamic finance operates on principles that prohibit interest, uncertainty and involvement in speculative activities. Blockchain technology has features that align well with these principles by promoting transparency, reducing fraud and facilitating decentralised transactions.
its efficiency and, ultimately, its value proposition for investors and issuers,” said S&P Global.
Higher digitalisation and fintech collaboration present a great opportunity for the sector to streamline and strengthen processes and practices to broaden the appeal of Shariah-compliant financial products beyond core Islamic finance markets in the Middle East, Africa and South Asia (MEASA) region.
Digital banking
The drive for digitalisation has benefitted the banking side of the Islamic finance industry as more financial institutions are now offering their products via digital platforms. Shariahcompliant banks are fast-tracking and
THOUGH TECHNOLOGY IS AGNOSTIC TO EITHER ISLAMIC OR CONVENTIONAL FINANCE, THE UNTAPPED OPPORTUNITIES WITHIN ISLAMIC FINANCE
ARE EMINENT
–
Suhaimi Ali, Assistant Governor of Bank Negara Malaysia
Furthermore, the global Islamic finance industry continues to grow its assets rapidly, but only in a few core markets.
“The GCC region still accounts for the largest share of global Islamic finance assets (45.4%), followed by the rest of the Middle East and South Asia (25.9%) and Southeast Asia (23.5%),” according to BNY.
S&P Global said in its Islamic Finance Outlook 2024 Edition that Islamic finance is a collection of local industries rather than a truly globalised sector and Saudi Arabia and Kuwait drove most of the growth in banking assets in 2022. Malaysia and GCC countries accounted for a large portion of the Sukuk market during the period under review.
“ Leveraging emerging technologies could help Islamic finance enhance
enhancing the digitalisation of intricate processes, as well as end-to-end customer experiences, in parallel with traditional banks.
“We saw many new digital banks open in Malaysia and Indonesia in Asia, Bahrain and Saudi Arabia in the Middle East, and Türkiye and the UK in Europe,” ICD-LSEG said in a report in February.
Shariah-compliant neobanks’ success is often attributed to several key features, including their digital and mobile-centric services, robust user experiences, cloud-based platforms with a modular architecture, lean and agile technology-first culture and the development of emotionally relatable brands.
A recent study by Boston Consulting Group revealed that neobanks in the
ISLAMIC FINANCE TECHNOLOGY
GCC will account for more than $2 trillion in market size by the end of the decade, growing at a CAGR of 53.4%.
Ajman-based Ruya, a digital-native Islamic community bank, is the latest Shariah-compliant neobank to join the GCC’s growing challenger bank ecosystem after receiving preliminary approval from the UAE central bank in February.
“Ruya is not just another bank. We are a new style of Islamic bank, catering to the growing demand for more ethical, convenient and digital-first banking solutions, particularly among younger customers,” Marwan Obaid Al Muheiri, Vice Chairman of Ruya, said at the launch of the challenger bank earlier this year.
ICD -LSEG Islamic Finance Development 2023 report identified fintech, digital banking and AI as catalysts that had material impacts on the development of Islamic banking in the decade leading up to 2022.
Globally, there are more than 560 banks that adhere to Islamic principles and the number is set to grow further with the licensing of new neobanks, such as Australia’s first Islamic bank, Islamic Bank Australia. This digital bank aims to attract the growing tech-savvy Muslim population in the country.
In 2021, Boubyan Bank-backed Nomo Bank launched in the UK as a Shariahcompliant cross-border neobank offering multi-currency accounts. It partnered with Abu Dhabi Commercial Bank (ADCB) and Al Hilal Digital Bank,
allowing UAE customers to apply for UK home financing via the ADCB-Nomo and Al Hilal-Nomo banking apps on their smartphones.
Digital banks are emerging in core Islamic finance markets, which are in line with global trends, because of new licensing frameworks that financial regulators are introducing. Unlike the incumbents, digital banks are not burdened by legacy infrastructure.
The growth of Islamic banking neobanks represents a significant trend in the financial industry, driven by a combination of technological innovation, demographic factors and increasing demand for ethical and Sharia-compliant financial services.
Islamic fintechs
The full potential of Islamic finance will be unlocked through technological innovation. The GCC region is witnessing a significant surge in fintech innovation, driven by technological advancements and a burgeoning youth demographic seeking digital solutions. Accompanying this surge is the rise of Islamic fintech firms.
The global Islamic fintech market is experiencing an upsurge, estimated to reach $306 billion by 2027, with an average annual growth of 17%, according to DinarStandard’s Global Islamic Fintech Report 2024 edition.
“Countries across Asia, Europe, the Middle East and the US have created dedicated startup hubs, venture capital initiatives, regulatory sandboxes and
BLOCKCHAIN TECHNOLOGIES
SMART
OF OBLIGATORY CHARITABLE
(ZAKAT) AND A MORE EFFICIENT PLATFORM FOR SUKUK ISSUANCE
– Moody’s
funding programs to develop Shariahcompliant fintech innovations, helping to fuel this trend,” said BNY.
Islamic fintech innovation has the potential to increase the efficiency of the Islamic finance sector and promote financial inclusion in some key markets, such as Indonesia and Bangladesh. Indonesia, the UK, the UAE, Saudi Arabia, Qatar and Malaysia are home to 59% of Islamic fintechs currently operating globally.
Qatar is a significant player in the Islamic fintech ecosystem, boasting the sixth-highest number of Sharia-compliant fintech firms globally (24 out of 417) and ranking as the 8th most conducive ecosystem for such innovations, according to a report by DinarStandard.
The UAE’s leading fintechs include Beehive, a Dubai-based peer-to-peer lending platform that provides Shariahcompliant financing and solutions for small and medium- sized enterprises (SMEs), and Aafaq Islamic Finance - which offers banking, financing and Takaful solutions.
Meanwhile, Indonesia boasts 61 fintech companies, including peer-to-peer lending platforms and digital bank Hijra (formerly Alami), neobank Bank Aladin, the digital payments portal LinkAja and the Islamic investment platform Tanamduit.
These Islamic fintech firms, along with digital-only banks, are competing directly with traditional brick-and-mortar Islamic banks.
“Globally, there are already 34 Islamic digital challenger banks and 163 Islamic fintechs offering financing services,” Moody’s said while projecting growth in the Islamic fintech sector due to the regulatory shift towards digitalisation and evolving open banking regulations.
The Islamic finance sector is now entering what industry experts call the third phase of its evolution. With technology firmly integrated into existing financial frameworks, the focus is shifting to the benefits that innovative technologies such as the cloud and blockchain can deliver to enhance the way financial institutions operate, offering improvements in operational efficiency and cost savings.
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Aviation Sustainability
Emirates Airline and Etihad Clean Energy Launch Major Solar Initiative
Partnership Aims to Boost Sustainability and Reduce Carbon Emissions at Emirates Engineering Centre
Emirates Airline and Etihad Clean Energy Development signed a partnership agreement for a largescale solar energy project at the Emirates Engineering Centre in Dubai, witnessed by His Highness Sheikh Ahmed bin Saeed Al Maktoum and His Excellency Saeed Mohammed Al Tayer.
The agreement was signed by Waleed bin Salman, Vice Chairman of Etihad Clean Energy Development, and Yousuf Mohammad Ali, DSVP of Group Procurement and Logistics at Emirates Airline.
The signing ceremony took place during the 2024 World Green Economy Summit, a strategic platform dedicated to promoting sustainable development and fostering global collaborations. This initiative underscores a strong commitment to enhancing energy efficiency and sustainability, aligning with the objectives
of the World Green Economy Summit.
In a significant step towards improving energy efficiency and sustainability, the partnership encompasses the development, engineering, procurement, construction, testing, and commissioning of solar PV systems at the Emirates Engineering Centre, along with 20 years of operation and maintenance services.
The total capacity is 23,177 kWp, with an estimated annual generation of 34,301,960 kWh. A total of 39,960 solar panels will be installed, providing 37% of the facility’s annual energy consumption and reducing CO2 equivalent emissions by over 13,000 tonnes each year when fully operational.
HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy; and Chairman and Chief Executive, Emirates Airline & Group, said: “This initiative highlights Emirates’ commitment and continued investment
in renewable energy solutions as part of our sustainability strategy. By integrating solar energy into the Emirates Engineering Centre, we are significantly reducing our carbon footprint while supporting the UAE’s clean energy goals. We are pleased to partner with Etihad Clean Energy Development in this solar PV project, which adds another milestone in our sustainability journey and greatly expands the number of solar installations at our facilities.”
HE Saeed Mohammed Al Tayer, Vice Chairman of the Dubai Supreme Council of Energy; and Managing Director and Chief Executive Officer of DEWA, expressed, “Etihad Clean Energy Development, a leading provider of energy efficiency solutions in the region, will spearhead the project, showcasing its expertise in delivering high-performance energy systems. Through this partnership, Etihad Clean Energy Development and Emirates Airline will ensure the long-term operational efficiency of the solar PV systems while achieving substantial reductions in carbon emissions and energy costs. We are proud to collaborate with Emirates Airline on this landmark project. Our partnership not only supports the UAE’s vision for a sustainable future but also sets a precedent for renewable energy adoption in the aviation sector.”
With a 20-year agreement for operation and maintenance, the solar PV systems will contribute to long-term environmental benefits, ensuring that Emirates Engineering Centre continues to operate efficiently using clean energy. This project is part of both companies’ broader efforts to support the UAE’s sustainability agenda, which focuses on reducing reliance on non-renewable energy sources and driving progress towards a low-carbon future.
Dubai Civil Aviation Authority launches ‘Autumn with Dubai Civil Aviation Authority’ initiative
In collaboration with Air Chateau and Thukher Social Club, and Community Development Authority in Dubai
Dubai Civil Aviation Authority (DCAA) has announced the launch of a pioneering community initiative titled ‘Autumn with Dubai Civil Aviation Authority’, in collaboration with helicopter operator Air Chateau and the Community Development Authority, to express its gratitude to senior citizens who witnessed Dubai’s development and contributed to its prosperity. To give back to them, the Dubai Civil Aviation Authority has organized flights in the skies of Dubai to give them an exceptional opportunity to enjoy watching the emirate and its charming beauty from its sky.
The ‘Autumn with Dubai Civil Aviation Authority’ initiative embodies the spirit of appreciation and respect for senior citizens, and this oneof-a-kind trip provides them with unforgettable moments to explore the breathtaking views of Dubai’s creative landmarks, reflecting its sustainable development. The trips start from Al Barsha Community Center, as part of DCAA’s efforts to enhance community participation.
His Excellency Mohammed Abdulla Lengawi, Director General of Dubai Civil Aviation Authority, stated: “This initiative comes in line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which places attention to senior citizens and their active participation in various community activities at the heart of the priorities of the targeted social and family initiatives launched by Dubai. In line with the evolving social system in the emirate, which
His Excellency Mohammed Abdulla Lengawi, Director General of Dubai Civil Aviation Authority. Image courtesy: Dubai Civil Aviation Authority
consolidates Dubai’s position as one of the best cities in the world in terms of standard of living. We believe that investing in the well-being of society is an integral part of our vision to build a sustainable and balanced future, as we are keen to provide services and initiatives that keep pace with the highest international standards of social responsibility.”
Her Excellency Hessa Bint Essa Buhumaid, Director General of Community Development Authority in Dubai, said: “We are delighted to collaborate with Dubai Civil Aviation Authority on this pioneering community initiative, which confirms our vision to build a thriving Emirati society and a cohesive social system, and to develop
services that meet the aspirations of the Emirate of Dubai. This initiative is not only a tribute to senior citizens, but also an embodiment of our commitment to providing opportunities and strengthening national identity and community participation, which contributes to consolidating the spirit of giving and belonging to serve the country for the benefit of current and future generations.”
The Dubai Civil Aviation Authority is committed to continuing to develop initiatives that contribute to supporting community groups, enhancing the overall quality of life, and building a cohesive society by providing innovative opportunities and services that ensure the well-being of all members of society.
Gas Giant
While remaining a world leading gas exporter, their determination to reach the goals set by Qatar National Vision 2030 sees the nation decisively moving away from being predominantly hydrocarbon-based, toward a more diverse knowledge and leisure-based economy
Qatar started an uncertain 2024 on solid footing after its real GDP exhibited modest growth last year to reach 1.6%, anchored by its hydrocarbon sector and, to a much lesser extent, nonhydrocarbon sector growth.
Earlier in 2024, the government in Doha launched the Third National Development Strategy (NDS3) 2024-2030, marking the final phase in the journey towards achieving Vision 2030. This strategy aims to accelerate economic diversification, increase North Field natural gas production, and position the Gulf state as a leading hub for foreign investment.
The World Bank forecasted that the country’s real GDP will strengthen marginally this year but remain modest at 2.1%. Non-oil growth is projected to continue to be robust at 2.4%, driven by a growing tourism sector.
The hosting of the FIFA World Cup boosted tourism and non-oil economic
activity to unprecedented levels, leading to new opportunities for Qatari businesses in the hospitality, real estate, retail and telecommunications industries.
Qatar has ample financial resources to support its ambitions. The Gulf state is one of the leading exporters of liquefied natural gas (LNG) and one of the wealthiest nations per capita. Demand for its natural gas has increased significantly over the years, with global LNG demand expected to surge by over 50% by 2040.
Qatar’s decade-long economic diversification strategy, which culminated in more than four million visitors in 2023, will continue to build a knowledgebased, stronger, more inclusive and greener economy.
The country’s $526.1 billion sovereign wealth fund is set to invest over $1 billion in international and regional venture capital funds in 2024. The investment, which will focus on the technology and
healthcare sectors, underscores its dedication to long-term economic growth and diversification.
Meanwhile, Qatar’s banking system remains relatively resilient, with regulations that are broadly in line with regional peers. “Banks remain well-capitalised, liquid and profitable,” the IMF said, noting that nonperforming loans increased slightly to 3.8% in Q2 2023 (from 3.6% at the end of 2022) but are well provisioned.
The coming years are crucial for Qatar as it advances its transformation journey by accelerating economic diversification and implementing high-impact sectoral strategies guided by NDS3.
Towards Vision 2030
Qatar continues to demonstrate significant resilience against global uncertainty and geopolitical tensions, according to the IMF. The Gulf state – among the world’s top LNG exporters – is expected to register an average growth of 5.5%, boosted by significant expansion in the production of LNG and implementation of fiscal and other reforms.
“The medium-term outlook is more favourable on the back of significant LNG production expansion as the North Field East and South projects complete,” the International Monetary Fund (IMF) said in May.
Qatar has significant resources at its disposal and its gas revenues are likely to swell further. With a two-phase mega-expansion already underway and an enormous new buildout on the horizon, the Gulf nation is poised to control about a quarter of the world’s LNG market
by the end of the decade, significantly increasing its share of global wealth.
Earlier in 2024, Qatar announced plans to expand LNG output from its North Field by 85%, increasing production from the current 77 million metric tonnes per year (mtpa) to 142 mtpa by the end of the decade, exceeding the previously anticipated 126 mtpa.
The Middle Eastern nation has been securing sales contracts for some of that capacity and is still seeking to place volumes in an effort that will ensure the country remains a key supplier for decades to come.
State-owned QatarEnergy said in October 2023 that it would supply Italy’s Eni with gas for 27 years, following similar deals to supply the Netherlands via Shell and France through TotalEnergies. The energy firm also secured two long-term LNG deals with China’s Sinopec and CNPC, each spanning 27 years.
“We’re a country that’s an exporter of gas. We have no other revenue really,” Qatar’s energy minister Saad bin Sherida Al Kaabi said during the unveiling of the LNG expansion plans in February. “We need to make sure that our kids and their kids are in better shape, hopefully than even people today.”
As Qatar grows its LNG exports, the country that already has one of the highest GDPs per capita will be raking in even more cash. Once it is all online, the additional supply will increase the emirate’s annual revenue by about $31 billion, according to Bloomberg calculations.
Though the country’s fiscal surplus is projected to narrow to 4.9% of GDP in 2024, economists expect it to retain budget surpluses until the 2030s as a result of the North Field expansion.
Global credit rating agencies Moody’s and Fitch Ratings both upgraded Qatar to AA ratings in early 2024, citing robust outlook and declining debt. “Qatar’s external balance sheet will strengthen from an already strong level,” Fitch said in a statement in March. “Budget surpluses will still allow Qatar to transfer new funds to the Qatar Investment Authority (QIA).”
QATAR’S BANKING SECTOR IS UNDERGOING A SIGNIFICANT TRANSFORMATION WITH THE ADOPTION OF DATA ANALYTICS AND CLOUD COMPUTING, WHICH ALIGNS WITH VISION 2030 AND MARKS A SHIFT TOWARDS A DATA-DRIVEN AND CLOUD-ENABLED FUTURE
– KPMG
New LNG earnings will primarily be funnelled into QIA – a common playbook for oil-rich Gulf monarchies, including Saudi Arabia and the UAE. Founded in 2005 to handle Qatar’s revenue from LNG, the state investor ranks as the world’s eighth-largest wealth fund and holds stakes in several European institutions, including Heathrow Airport, Barclays, Sainsbury’s and Harrods.
Sustainable growth
While Qatar’s vast oil and natural gas reserves have historically driven its rapid GDP growth, the country is now looking ahead to a more diversified future for its economy.
The Gulf state’s recent gains in key growth sectors, such as tourism and sports, renewable energy, artificial intelligence (AI) and logistics are a testament to the progress and potential that lie ahead.
The combination of sports mega-events and cultural experiences has showcased Qatar’s ability to host international spectators and contribute to its developmental journey. The hosting of the FIFA World Cup in 2022 significantly boosted tourism, with visitor numbers soaring to over four million in 2023, compared to just 600,000 in two years earlier.
“Following its mega-event hosting successes, Qatar embarked on a journey to enhance its tourism infrastructure and diversifying attractions, which included the Hayya visa platform, airport
expansion, and the development of destination resorts and cultural sites,” PwC said in a report.
Qatar commenced work on a new $5.5 billion (QAR 20 billion) tourism development that will be centred around a massive amusement park set to surpass the size of Walt Disney Co.’s iconic Magic Kingdom.
The Simaisma Project, which will span 8 million square meters along 7 km of beachfront, will include an 18-hole golf course surrounded by 300 villas, luxury resorts, a marina and a beach club.
Qatar has leapt to the forefront of becoming a new breeding ground for a flourishing sports events ecosystem following the hosting of the World Cup and other renowned global sporting events such as the FIP World Padel Championship, the Formula 1 Qatar Airways Qatar Grand Prix and Wanda Diamond League.
PwC said that Qatar’s investments in premier sports facilities such as Lusail International Circuit underscores the country’s dedication to leveraging sports and tourism as engines for national branding and economic diversification.
Qatar approved its state budget for 2024 last December, which forecasts a deficit of $1.7 billion (QAR 6.2 billion). The budget projects total revenues of QAR 202 billion, down 11.4% when compared to 2023 estimates and expenditure of QAR 200.9 billion, according to the Ministry of Finance. While non-oil revenue is expected to rise by 2.4% to QAR 43.0
billion, oil revenue is projected to plunge by 14.5% to QAR 159.0 billion from QAR 186.0 billion a year earlier.
Meanwhile, the anticipated introduction of value-added tax, expected in 2025, will offset the reduction in hydrocarbon revenue and bolster the fiscal surplus despite the possibility of a temporary impact on economic activity.
The Qatari authorities are using QIA’s financial firepower, big cash injection from the LNG bonanza and the new infrastructure to develop niche areas in sectors such as healthcare, energy, logistics and education.
Finance focused
Qatar’s financial services development goals, though ambitious, are well within reach, given the Gulf states’ increasing significance within the global emerging markets landscape. The government is strategically positioning finance and banking at the core of its economic diversification efforts, with a particular emphasis on fintech innovation.
The financial services sector is not only critical for driving diversification but also serves as a powerful magnet for attracting increased foreign capital, further solidifying Qatar’s standing in the global financial arena.
Moody’s maintained a stable outlook on Qatar’s banking sector in March, citing robust growth as businesses in the nonoil economy are poised to benefit from projects linked to the expansion of Qatar’s LNG production capacity.
THE MEDIUM-TERM OUTLOOK IS MORE FAVOURABLE ON THE BACK OF SIGNIFICANT LNG PRODUCTION EXPANSION AS THE NORTH FIELD
EAST AND SOUTH PROJECTS COMPLETE
– The International Monetary Fund
“Qatar’s banking sector is large with assets of 255% of GDP and net foreign liabilities of more than $105 billion (50% of GDP) in 2023,” said Fitch Ratings.
Though Qatar’s economic growth may be normalising in the post-World Cup era, the country’s banking sector continues to be buoyed by high interest rates and opportunities emerging from growing gas infrastructure.
The combined profits of Qatar’s top five banks - Qatar National Bank (QNB), Qatar Islamic Bank (QIB), Commercial Bank of Qatar, Masraf Al Rayan and Dukhan Bank – reached $3.63 billion (QAR 13.2 billion) in the six months ended June 30.
QNB Group, the Middle East region’s biggest bank by assets, reported a 7% jump in H1 2023 net profit to QAR 8.2 billion, while QIB, the country’s secondlargest lender, registered a 5.6% increase in profit to QAR2.1 billion.
Profitability in the Qatari banking sector will remain underpinned by higher net interest margins and non-interest revenues as assets grow and by lower loan impairment charges as economic conditions remain solid.
BALANCE SHEET
Qatar Central Bank (QCB) followed the US Federal Reserve’s decision to keep interest rates unchanged to protect Qatar riyal against the US dollar, as the country’s currency is pegged to the greenback. The central bank said it would keep its repo rate unchanged at 6%, its lending rate at 6.25% and its deposit rate at 5.75%
“Monetary policy has been consistent with the currency peg to the dollar. QCB has improved liquidity management through carefully calibrated T-bill issuance, contributing to greater monetary policy transmission,” said the IMF.
Qatar’s banking sector has made significant strides in enhancing customer experience and embracing digital innovation. Digital transformation in the country’s banking sector is gathering pace, with most lenders overhauling their technology infrastructure and deploying innovative front-end services and products.
“Qatar’s banking sector is undergoing a significant transformation with the adoption of data analytics and cloud computing, which aligns with Vision 2030 and marks a shift towards a data-driven and cloud-enabled future,” said KPMG.
Qatar’s hydrocarbon sector is poised to reclaim its role as the primary engine of the country’s economic growth in the coming years, following decades of infrastructure investment and development in support of the FIFA World Cup. The central bank’s prudent policies have underpinned financial stability, and the IMF expects continued diligence to maintain banking sector strength.
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Friend or Foe
While it is understood that AI will likely bring ample tangible benefits to banks, there are also substantial risks that need to remain top of mind for chief risk officers
The emergence of Generative AI (GenAI) tools represents a significant technological leap forward, with the potential to have a substantial impact on the banking sector. “Artificial intelligence (AI) technologies are increasingly integral to the world we live in and banks need to deploy these technologies at scale to remain relevant,” said McKinsey.
GenAI, a subset of deep learning technology or traditional AI, became a buzzword in 2023, setting the financial services industry on a path to experimentation while sparking
discussions around the promise and future of AI in the banking sector.
Artificial Intelligence can be your friend, but it may also be your foe. While it can revolutionise business, enhance efficiency and drive innovation, it also poses real threats that can lead to chaos and costly consequences.
“The pace and scale of AI, like any sweeping innovation, is likely to bring benefits but could pose risks for financial stability,” according to the European Central Bank’s Financial Stability Review.
GCC financial watchdogs have stepped up efforts to combat rising financial crime
risks by urging market participants to adopt technology-driven solutions. The regulators issued regulations and guidance in the recent past to help financial institutions bolster their defences against such cyber threats.
Cybersecurity remains at the top of the executive agenda, and banks are allocating more resources and investments to strengthen their cybersecurity defences. EY said the key AI/ML implementation focus areas for bank risk management teams are credit risk management and fraud detection.
Risk management is a fundamental, vast and fast-evolving part of a bank’s business that encompasses credit, market, operational, liquidity, technology and information risks. Similarly, AI/ML plays a crucial role in fraud detection by analysing vast amounts of data and detecting anomalies or suspicious activities.
Global banking chief risk officers (CRO) anticipate regulators will increasingly focus on the impact of digitisation and data integrity over the next five years.
The GCC banking sector is undergoing a significant transformation as AI technology gains momentum. The region’s growing interest in AI reflects its potential to revolutionise business operations.
AI potential risk management
As banks in the GCC region navigate the rapidly evolving technological landscape, they must carefully evaluate not only the benefits but also the potential risks associated with innovative technologies such as the cloud.
A balanced approach will ensure that financial institutions can leverage new technologies while mitigating potential vulnerabilities. Banks are inherently exposed to risks due to the nature of their business, which involves handling financial assets, investments and the liabilities that come with them.
A joint study by EY and the Institute of International Finance revealed that cybersecurity has remained at the top of the list of near-term risks for banks around the world for the second
THE KEY AI/ML IMPLEMENTATION
FOCUS AREAS FOR BANK RISK MANAGEMENT TEAMS ARE CREDIT RISK MANAGEMENT AND FRAUD DETECTION
consecutive year amid unprecedented levels of volatility, geopolitical tensions and global uncertainty.
Cyber resilience continues to be a top priority for regulators in the GCC region and a key area of attention for financial institutions. GenAI has the potential to revolutionise the way that banks manage risks over the next three to five years.
The innovative technology has the potential to transform the role of risk professionals in the financial services sector. By automating task-oriented activities, risk professionals can focus on strategic risk prevention, partnering with business lines to integrate controls into new customer journeys.
McKinsey said the shift allows risk professionals to contribute more effectively to business decision-making, including new product development and strategic planning. By leveraging GenAI, GCC banks’ risk professionals can proactively explore emerging risk trends, strengthen resilience and enhance risk and control processes.
The Qatar Central Bank, in its ‘AntiMoney Laundering and Combating Terrorism Financing Instructions,’ mandates financial institutions to maintain sufficient resources, including technology, to combat financial crime risk effectively.
The Saudi Central Bank issued its ‘Counter-Fraud Framework’ in October 2022, where it mandates banks and other financial institutions to define, approve and implement a strategy for the sourcing/ development and implementation of counter-fraud systems and technology to manage fraud risks.
Similarly, the central bank of the UAE issued a guidance note in October 2022
encouraging financial institutions to use ‘Digital ID’ systems – technology that uses electronic means to assert and prove a person’s identity online and/or in in-person environments – to perform customer due diligence.
AI is transforming risk management in the banking sector by enhancing efficiency, productivity and costeffectiveness. KPMG highlighted AI’s potential to lower operational, regulatory and compliance costs for banks by efficiently processing and analysing large volumes of unstructured data with limited human involvement, leading to more accurate credit decision-making.
Digital banking channels have become hotbeds for fraudulent activity. The lack of robust controls and timely detection mechanisms enables fraudsters to take advantage of weaknesses, manipulate systems and use stolen personal information to orchestrate elaborate scams.
To effectively implement AI in risk management, industry experts say financial institutions must undergo a cultural and operational transformation. The transformation includes identifying and acquiring the necessary talent and integrating operating model changes into their business-as-usual processes.
A game changer
Financial fraud is increasing at an alarming rate. An INTERPOL report published in March revealed that financial fraud has increased globally as the public embraces new sophisticated technologies that create openings for online criminals.
The convergence of AI, large language models (LLMs), cryptocurrencies and phishing/ransomware-as-a-service
models has fuelled the emergence of more sophisticated and organised fraud campaigns. “GenAI is expected to significantly raise the threat of fraud, which could cost banks and their customers as much as $40 billion by 2027,” said Deloitte.
There is growing consensus among industry experts that AI will drive an increase in the volume and sophistication of fraud and scams. PwC said GenAI can be used to create tailored emails, instant messages and images in phishing and smishing attempts or fraudulent adverts.
Fraudsters are also leveraging elements of AI in chatbots to converse with potential fraud victims to manipulate them into making payments or money transfers. Chatbots have the potential to multiply fraudsters’ ability to contact victims without the need for extensive human involvement, according to PwC.
Similarly, deepfake technology is being used maliciously to lure potential victims. These digitally altered and manipulated videos are used as clickbait to lure people to malicious websites that harvest credit card information for fraudulent purposes.
Deepfake techniques are also often used to modify, through the use of AI, publicly available video, sound or images of a real person to convincingly misrepresent them. Earlier in February, a finance worker at a multinational firm’s Hong Kong office was tricked into paying out $25 million to fraudsters using deepfake technology.
The interconnected nature of modern economies provide plentiful hunting grounds for bad actors. Incidents of fraud will attract the attention of regulators, will damage customer relations and reflect poorly on the image of the bank.
Fighting back with AI
The situation is not entirely bleak. While traditional fraud investigation methods struggle to keep pace with today’s complex schemes, AI’s ability to adapt and learn from evolving patterns makes it a powerful tool for detecting both known and unknown types of fraud.
ARTIFICIAL INTELLIGENCE TECHNOLOGIES ARE INCREASINGLY INTEGRAL TO THE WORLD WE LIVE IN AND BANKS NEED TO DEPLOY THESE TECHNOLOGIES AT SCALE TO REMAIN RELEVANT
– McKinsey
“While most financial institutions have reported that they have used AI systems for years, maturity in utilisation and deployment of AI systems varies by institution and continues to evolve,” said the US Department of the Treasury.
AI technology enables fraud detection systems to analyse vast amounts of data in real-time and identify unusual patterns of behaviour that are indicative of fraudulent activity.
Banks in the GCC region are leveraging AI to automate fraud detection and investigation processes, streamlining workflows and directing cases to the appropriate teams. Similarly, others are already using LLMs to identify potential fraud indicators proactively.
On a global scale, Mastercard is pioneering the use of its Decision
Intelligence tool to prevent credit card fraud. By analysing a trillion data points, this technology can accurately predict the authenticity of transactions.
For years, banks have harnessed AI/ML to analyse credit card portfolios, capitalising on the vast trove of transaction data available to train unsupervised learning algorithms. These models have consistently demonstrated exceptional accuracy in detecting credit card fraud, thanks to the ability to process and learn from massive datasets.
KPMG said credit card payment systems are embedded with workflow engines that monitor card transactions to assess the likelihood of fraud. The rich transaction history available for credit card portfolios presents banks with the ability to distinguish between specific features present in fraudulent and nonfraudulent transactions.
THE PACE AND SCALE OF ARTIFICIAL INTELLIGENCE, LIKE ANY SWEEPING INNOVATION, IS LIKELY TO BRING BENEFITS BUT COULD POSE RISKS FOR FINANCIAL STABILITY
– European Central Bank
Banks have been at the forefront of using innovative technologies to fight fraud for decades. However, a US Treasury report revealed in March that “existing risk management frameworks may not be adequate to cover emerging AI technologies.”
The adoption of AI in the banking sector presents a complex landscape where the technology serves as both a potential threat and a powerful defence mechanism. By embracing an integrated approach that emphasises security by design, ethical development practices and collaborative innovation, banks can harness AI’s full capabilities to bolster cybersecurity defences.
Cloud Bank on the Horizon
Providing opportunities for enhanced services, greater data based and actionable insights, the cloud is where banks will finding new ways to create efficiencies and delight consumers while also serving as a powerful engine for business model innovation
The GCC banking sector is entering one of its greatest transformations ever seen as financial institutions are starting to make the most of the enormous possibilities that digitalisation presents. Today’s banking customers are hungry for digital banking products and services tailored to their individual needs.
“Digital transformation is an ongoing area of investment for the banking sector. In the year ahead, this will continue as banks seek to further enhance customer service and soldier on modernising their technology platforms,” KPMG said in a report in January.
Cloud adoption is the backbone of digital innovation and it is shaping the future of the financial services sector. The cloud gives banks access to on-demand resources – such as networks, servers, storage and APIs – that can be rapidly provisioned and released with minimal management or service provider interaction.
With customer expectations and technology evolving at breakneck speeds, moving to the cloud is increasingly becoming a strategic priority for banks. Furthermore, the disruptions of the past three years have dispelled the perception that cloud migration is a distant proposition.
“Cloud technology is a business game changer that has rewarded early adopters with an ability to scale quickly and innovate rapidly; and time is of the essence — more traditional businesses need to act now,” said Oliver Wyman
The innovative technology is seen as a pivotal factor for operational efficiency and overall transformation, with more than 90% of banks in the GCC region ranking their cloud programs a priority and more than a third regularly discussing progress at the executive-committee level.
Meanwhile, the financial services sector is among the most regulated businesses in the world. As financial institutions accelerate cloud adoption, cybersecurity risks have become a top priority for bank executives and board members in the GCC region.
The cloud is helping banks in the Gulf region develop digital services with greater ease and speed. With so many advanced plug-and-play financial features to tap into in the wider market, through digital and cloud-based banking platforms, the opportunity to augment and digitalise legacy core systems with modern customer experiences is ripe for the taking.
Banking in the cloud
Digital transformation in the banking industry is rapidly reshaping the way financial institutions operate, engage with customers and manage their internal processes. The advancement in technology makes the shift imperative for financial institutions to adapt to changing operating environment.
KPMG said the seismic changes in the banking system are not solely due to advancing technologies, but a confluence of inter-related structural factors –demographic, socioeconomic, regulatory and environmental changes.
Banks are fighting growing competition from fintech firms and big tech – who have been quicker than incumbents to take advantage of the new innovative technologies, develop banking products that meet customers’ expectations, cost less to deliver and are optimised for digital channels.
To maintain a competitive edge, banks in the GCC must innovate and adopt new digital platforms that are more consumeroriented with rich personalisation, new AI-powered digital tools and services that help them remain relevant.
The cloud offers several business benefits for traditional banks including increased flexibility, business agility, lower cost of IT and quicker access to innovation. Banks are unlocking new ways to get closer to their customers as digitalisation is reshaping the financial services sector.
The age of hyper-personalisation
With growing digitalisation in the financial services sector, the way we bank is projected to undergo massive transformation over the next decade. The bank of 2030 will look and operate very different from today.
Growing competition from fintechs and neobanks, also known as digital attacker banks, emphasises how banks currently fall short of providing superior customer experiences. Customers expect personalised engagement from all businesses they deal with, banks included.
“The advent of the digital age is inextricably linked with tailor-made offerings that deliver personalised services, products and pricing to customers. Over the years, banks have deployed personalised offerings including micro-segmentation, packaged products and services to increase customer loyalty and maintain a competitive edge in the market,” according to Deloitte.
Banking customers are redefining their expectations, taking their cues from other industries that offer multichannel access,
access and process large volumes of data more efficiently and securely.
Similarly, there is a growing desire among banking customers to get bundled services with banking products that are aligned with their interests. For banks in the GCC region to be able to engage customers with hyper-personalised or tailored value propositions, they not only need to know customers’ behaviour with financial institutions but also their preferences and behaviours outside the banking realm.
CLOUD TECHNOLOGY IS A BUSINESS GAME CHANGER THAT HAS REWARDED EARLY ADOPTERS WITH AN ABILITY TO SCALE QUICKLY AND INNOVATE RAPIDLY; AND TIME IS OF THE ESSENCE — MORE TRADITIONAL BUSINESSES NEED TO ACT NOW
– Oliver Wyman
product simplicity, seamless integration and ‘segment-of-one’ targeting.
Customers are clamoring for the same level of sophistication, immediacy and personalisation in their interactions with banks as they do in other industries. Industry experts say banking customers are willing to share their data if assured of receiving personalised services.
The cloud can help banks transform the customer experience and improve personalisation thus providing them with a more holistic understanding of their customers. It enables financial institutions to manage and process huge data volumes across multiple sources.
“Banking customers generate an astronomical amount of data every day through hundreds of thousands of individual transactions,” global IT firm Hitachi Solutions said in a report, adding that the adoption of cloud-based banking analytics platforms will enable banks to
Cloud computing offers banks seamless and unified data access, decentralised ownerships, real-time interactions, elastic scalability and superior security. The proliferation of innovative technologies such as generative AI and blockchain as well as the use of data and advanced analytics is expected to accelerate cloud adoption in the GCC banking ecosystem.
Unlocking growth & efficiency
The quest to augment customer experience is driving digital transformation at top banks, and new strategies that take advantage of the cloud and realtime customer data sets are creating real opportunities.
GCC banks that are accelerating cloud adoption are seizing the opportunity to transform not only their technology architectures but also how they operate and their relationships with their customers.
Speaking to the media in May, Abdulaziz Al Ghurair, the Chairman of the UAE Banks Federation said the UAE banking sector is accelerating digital transformation and developing innovative solutions that leverage artificial intelligence, blockchain as well as cloud computing and data analytics to provide services that meet and exceed customer expectations.
“Banking services in the UAE and the rest of the world are currently undergoing a profound transformation to meet the rapidly changing demands of the end-users and to keep pace with the technological revolution,” added Al Ghurair.
Front-to-back digitisation of the customer journey requires developing a data- and analytics-powered digital experience that provides personalised engagement, efficiency and convenience throughout the journey at low cost.
The cloud has been a vehicle of digital transformation in the financial services industry. It is an enabler of advanced analytics in banks as these computer system resources provide space to both stores and analyse large quantities of data in a scalable way, including through easy connectivity to mobile applications used by customers.
Cloud technology and especially the software as a service (SaaS) and banking as a service (BaaS) models offer banks several opportunities such as easier customer data analytics and sharing, improved marketing time, cost reduction and enhanced flexibility and operational efficiency.
Data’s worth depends on its accessibility and application as customer insight plays a critical role in product development and customer communication in the banking sector. “The cloud is the only place where customer data gains scale, agility and the power to drive reinvention so a business can soar,” said Accenture.
Technological innovations such as open APIs and cloud-native solutions enable banks to leverage data to augment their services and allow them to take action quickly when required. The hyper-personalisation of banking
products should be as granular as any other offering and through the capabilities of data insights, banking customers can get the experiences they demand from banks.
Looking into the future, the majority of banks in the GCC region are expected to shift operations and processes from rules-based systems to AI-based systems, driven by advanced analytics that deliver actionable insights from
By leveraging, APIs open banking platforms authorise retail and enterprise clients to access consumers’ financial data in real-time and share account information and transaction history with external parties such as vendors, suppliers, business partners and other banks.
Built on the cloud, open banking platforms are facilitating ever-increasing on-demand needs of financial data. This can include transactions and consumer
BANKING SERVICES IN THE UAE AND THE REST OF THE WORLD ARE CURRENTLY UNDERGOING A PROFOUND TRANSFORMATION TO MEET THE RAPIDLY CHANGING DEMANDS OF THE END-USERS AND TO KEEP PACE WITH THE TECHNOLOGICAL REVOLUTION
– Abdulaziz Al Ghurair, the Chairman of the UAE Banks Federation
customer data. Customer data analytics enable financial institutions to provide personalised services, predict customer requirements and streamline operations.
Open banking & cloud
The radical transformation in the financial services industry is partially being driven by the advancement in digital technology as previously closed industrial systems have become networked and open, providing ideal conditions for open banking to flourish. Cloud computing and other innovations have opened up opportunities for banks to embrace an open banking strategy.
“Open banking provides open access to a customer’s financial data from banks and other financial institutions using APIs. Built on cloud, open banking platforms are facilitating ever-increasing on-demand needs of financial data,” said IT software and consultancy services firm IBM.
experience for third-party providers, payment initiation service providers and account information service providers.
Customer data is critical in enabling multiple use cases for open banking, banking-as-a-service (BaaS) and the closely related concept of embedded banking, said McKinsey.
The cloud and other innovative technologies have opened up opportunities for banks to embrace an open banking strategy. However, banks in the GCC region should build up new ecosystems of services and data that comply with various data privacy regulations while adopting strong security models against cybersecurity risks.
To thrive in the digital era, banks in the GCC must harness advanced banking technology such as the cloud. This will allow them to match the seamless and intuitive customer experiences offered by fintech companies and big tech while maximising areas where they hold a natural edge.
From Legacy to Innovation: How SAS is Transforming Financial Institutions in the GCC
With more than 47 years of expertise in analytics-driven innovation, SAS has established itself as a leader in analytics and AI, recognized for its trust, expertise, and stability. Built on a deeprooted understanding of financial markets, SAS has consistently anticipated trends and formed long-term partnerships that deliver exceptional value. Since its flagship implementation in the GCC in 2006, SAS has expanded its services to over 90 banking customers in the region, solidifying its influence and presence.
In 2019, as regional regulations began to shift, many financial institutions turned to SAS to lead their digital transformation journeys. SAS’s enterprise platform became the go-to solution for financial organizations seeking to modernize and scale efficiently. From detecting fraudulent activities to streamlining compliance processes, SAS solutions have fundamentally transformed how banks and financial institutions operate, providing the tools necessary to stay ahead of the regulatory curve.
Addressing Unique Regional Challenges
The Middle East region faces distinct challenges, including rising fraudulent activities, fragmented solutions that lack a holistic view of customers, and a significant skills gap in fraud management. With the added pressure of meeting both local and international regulatory standards, such as those set by the Financial Action Task Force (FATF), regional banks are under immense scrutiny. SAS has empowered public and private organizations alike by offering advanced compliance solutions and cutting-edge fraud detection systems. For example, one of the region’s leading banks saw its fraud detection rate increase fourfold after adopting SAS’s solutions.
SAS enables banks to combat financial crime with precision, leveraging AI, machine learning, and deep domain expertise. SAS’s comprehensive solutions provide a holistic view of financial crime risk, allowing banks to detect anomalies and emerging threats in real time. By utilizing dynamic segmentation and peer groupings, SAS reduces false positives, improving fraud detection accuracy and operational efficiency. Predictive analytics and model-based scenarios enable proactive identification of threats, leading
to a reduction in fraud losses.
SAS’s cross-channel detection capabilities further enhance financial institutions’ ability to monitor and analyze customer behavior across various channels. This allows banks to efficiently manage large transaction volumes, without compromising detection quality.
Success Story: Transforming Fraud Detection in the Middle East
One of SAS’s most notable success stories in the region involved a leading bank in the Middle East that aimed to enhance its financial crime detection and reporting capabilities. By deploying SAS’s AI-powered Financial Crime Analytics (FCA) solution, equipped with advanced convolutional neural networks, automatic pattern recognition, and continuous model improvement features, the bank achieved significant operational improvements within just six months.
Key outcomes included:
• A 55% reduction in false-positive alerts, enabling the compliance team to focus on more critical cases.
• A 25% increase in Suspicious Activity Report (SAR) yield, resulting in more accurate and meaningful reports.
• A 29% increase in SAR filings, ensuring better regulatory compliance and risk management.
• Optimization of over 60 inefficient scenarios, along with the improvement of an additional 50 scenarios, enhancing overall system performance and detection accuracy.
This deployment has significantly enhanced the bank’s ability to manage financial crime risks while boosting operational efficiency.
Innovating for the Future: Empowering Financial Organizations
SAS continues to drive innovation in the financial sector by delivering cutting-edge solutions that empower organizations to thrive in an increasingly complex environment. One of the emerging trends SAS is focused on is Synthetic Data Generation, which allows financial institutions to rapidly augment or generate data, enabling them to tackle evolving fraud patterns and regulatory demands more effectively.
Additionally, SAS is harnessing the potential of emerging technologies such as Generative AI (GenAI) and Graph Data Science to accelerate analytical tasks, boost productivity, and improve decision-making across various business domains. These innovations will soon be implemented at some of the largest banks in the GCC, further solidifying SAS’s role as a pioneer in analytics-driven financial transformation.
SAS’s forward-thinking solutions provide a strong foundation for financial institutions to not only keep pace with market shifts but also drive sustainable growth, ensure regulatory compliance, and maintain a competitive edge in an ever-evolving industry. By empowering institutions today, SAS is preparing them for the challenges and opportunities of tomorrow.
Gulf Cybersecurity Challenges
Cybersecurity challenges in the GCC’s banking and finance markets are keeping pace with our digitised banking and finance sectors, and besides advancing technology to keep ahead of bad actors, counter-measures should include a culture of transparency and robust incident response plans
The Gulf Cooperation Council (GCC) region is emerging as a significant player in the global banking and finance markets.
The sector has seen unprecedented growth fuelled by economic diversification, digital transformation and an increasingly sophisticated consumer base. However, with this growth comes an array of cybersecurity challenges that are more complex and pervasive than ever before. As we move through 2024, the banking and finance sector in the GCC is grappling with a rapidly evolving threat landscape that demands urgent attention.
Digital Transformation and Its Consequences
Digital transformation has been a blessing and a curse for the GCC’s
banking and finance sector. On the one hand, it has enabled banks and financial institutions to offer more efficient, agile and customer-centric services but on the other, it has greatly expanded the attack surface available to cybercriminals. In 2024, the reliance on digital channels, ranging from online banking to mobile payment systems, has become further entrenched, underlining cybersecurity an ongoing, top priority.
Increased Cyber Threats
As financial institutions in the GCC have embraced digital technologies, the nature and frequency of cyber threats have evolved significantly. Traditional threats like phishing and malware continue to pose risks, but 2024 has seen a sharp rise in more sophisticated attacks such as ransomware, supply chain attacks and advanced persistent threats (APTs) - where attackers establish a long-term presence on a network.
Ransomware remains a major concern, with cybercriminals employing more advanced techniques to infiltrate financial systems. In 2024, these attacks have
become more targeted, with attackers meticulously planning their entry points, often exploiting vulnerabilities in third-party software used by financial institutions. Once inside, they can encrypt critical data and demand exorbitant ransoms, causing significant financial and reputational damage.
APTs have also become more prevalent and are typically carried out by well-funded and highly skilled attackers, often linked to nation-states. These attackers aim to establish a long-term presence within a network, allowing them to steal sensitive information over an extended period. In the GCC, where the banking sector is a key pillar of the economy, the consequences of an APT can be devastating, highly damaging for businesses and potentially undermining national security.
The Rise of Supply Chain Attacks
One of the most concerning trends in 2024 is the rise of supply chain attacks. Financial institutions in the GCC are increasingly reliant on a complex web of third-party providers for everything from cloud computing services to software development. Cybercriminals have recognised this as a vulnerability and are now targeting these third parties to gain access to the systems of banks and financial institutions.
In a supply chain attack, cybercriminals compromise a third-party vendor’s system, using it as a backdoor to infiltrate the primary target. These attacks are particularly dangerous because they can go undetected for long periods, allowing attackers to cause extensive damage before being discovered. The interconnected nature of today’s financial systems means that a breach in one part of the supply chain can have far-reaching consequences, potentially affecting multiple institutions.
Regulatory Pressures and Compliance Challenges
In response to the growing cyber threats, GCC countries have been strengthening
their regulatory frameworks. In 2024, regulatory bodies in the region have introduced more stringent cybersecurity requirements, aiming to protect financial systems from increasingly sophisticated attacks. For example, the Saudi Arabian Monetary Authority (SAMA) and the UAE Central Bank have both updated their cybersecurity guidelines, mandating that financial institutions adopt more robust security measures.
While these regulations are crucial for safeguarding the financial sector, they also present significant challenges for compliance. Smaller banks and financial institutions may struggle to meet these requirements due to limited resources, both in terms of finances and expertise. The rapidly evolving nature of cybersecurity threats means that regulatory frameworks are continually being updated, which can create a moving target for compliance efforts.
Moreover, the global nature of cyber threats necessitates that GCC financial institutions not only comply with local regulations but also align with international standards. This adds another layer of complexity, as institutions must navigate a patchwork of regulatory requirements across different jurisdictions.
The Human Element in Cybersecurity
Despite advances in technology, the human element remains one of the most significant vulnerabilities in cybersecurity. Social engineering attacks, where attackers manipulate individuals into divulging confidential information, have become increasingly sophisticated. In 2024, phishing attacks have evolved beyond generic emails to highly targeted spear-phishing campaigns that are personalised and difficult to detect.
The rise of remote work, accelerated by the COVID-19 pandemic, has also introduced new challenges. As employees access sensitive financial systems from home, often using personal devices, the risk of security breaches increases. In 2024,
ensuring the cybersecurity of a distributed workforce has become a critical concern for GCC financial institutions.
To mitigate these risks, financial institutions must invest in ongoing cybersecurity training for their employees. However, training alone is not enough; there needs to be a cultural shift where cybersecurity is ingrained in the daily operations of the organisation. This includes implementing strong access controls, regular security audits and encouraging employees to report suspicious activities without fear of reprisal.
The Impact of Artificial Intelligence and Machine Learning
Artificial Intelligence (AI) and Machine Learning (ML) are vital tools in the fight against cyber threats. GCC financial institutions are increasingly adopting AI and ML to enhance their defences. These technologies can analyse vast amounts of data in real-time, identifying patterns and anomalies that might indicate a cyberattack.
AI-driven systems are particularly effective in detecting and responding to zero-day threats—vulnerabilities that are exploited before the vendor has issued a patch. By leveraging machine learning, these systems can continuously learn from new data, improving their ability to detect and prevent future attacks.
However, the use of AI and ML in cybersecurity is not without challenges. These technologies require vast amounts of high-quality data to function effectively. If the data is incomplete or biased, the AI system may produce false positives or negatives, leading to either unnecessary alerts or missed threats. Moreover, cybercriminals are also beginning to use AI to develop more sophisticated attacks, an arm race between attackers and defenders.
The Role of Collaboration and Information Sharing
In 2024, collaboration and information sharing have become essential
ONE OF THE MOST CONCERNING TRENDS IN 2024 IS THE RISE OF SUPPLY CHAIN ATTACKS
components of cybersecurity strategies. Cyber threats are global, and no institution can tackle them alone. GCC countries have recognised this and are increasingly participating in regional and international forums to share threat intelligence and best practices.
Public-private partnerships have also gained prominence, with governments and financial institutions working together to strengthen cybersecurity defences. These collaborations can take many forms, from joint cybersecurity exercises to information-sharing platforms that provide real-time updates on emerging threats.
However, effective collaboration requires overcoming several challenges, including issues of trust and the reluctance to share sensitive information. Financial institutions may fear that disclosing a cyberattack could damage their reputation or lead to regulatory scrutiny. To address this, there needs to be a concerted effort to create a culture of transparency where information sharing is seen as a strength rather than a liability.
Preparing for the Future
As we move further into the decade, the cybersecurity challenges facing the GCC banking and finance sector will continue to evolve. Financial institutions must adopt a proactive approach, anticipating new threats and adapting their defences accordingly. This requires not only investing in the latest technologies but also fostering a culture of cybersecurity awareness and resilience.
One of the key areas of focus should be the development of robust incident response plans. In the event of a cyberattack, having a well-prepared response plan can significantly reduce
the impact of the breach. This includes clear communication strategies, predefined roles and responsibilities, and regular drills to ensure that the plan is effective.
Another important aspect is the continuous monitoring and assessment of cybersecurity measures. The threat landscape is constantly changing, and what was effective last year may not be sufficient in 2024. Regular security audits, penetration testing and vulnerability assessments are essential to identify and address potential weaknesses.
Finally, financial institutions in the GCC must recognise that cybersecurity is not just an IT issue but a business imperative. Cybersecurity should be integrated into the overall business strategy, with senior management taking an active role in overseeing and supporting cybersecurity initiatives.
The banking and finance sector in the GCC is at a critical juncture in 2024. The rapid adoption of digital technologies has brought about significant opportunities but also exposed the sector to unprecedented cybersecurity challenges. Financial institutions in the region must navigate a complex and evolving threat landscape, comply with increasingly stringent regulations and manage the risks associated with third-party providers and emerging technologies.
By adopting a comprehensive and proactive approach to cybersecurity, GCC financial institutions can protect their operations, maintain customer trust and ensure the continued growth and stability of the banking sector in the region. As the digital landscape continues to evolve, so too must the strategies and tools used to safeguard against the everpresent threat of cyberattacks.
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