August 2025

Christoph Koster, CEO of ruya

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Forward Vision

Knowing what comes next is usually normal in our lives, after-all you were expecting to read the July/August 2025 copy of MEA Finance, and now you are.

However, the vision to know what lies ahead can be the key to survival; car headlights are a practical example, and the foresight that spurs you to plan for a future without you is recognised as vital to a peacefully enduring legacy. Also vision as more than the practical use of your eyes, can be the rare gift some have to perceive an enhanced or a better way of doing something.

Forward vision forms a common theme through this edition and our section on Family Office and Succession Planning underlines this, highlighting not just that these services are being increasingly taken up across our region, but also how this growth is necessitating greater sophistication, “This is not just about simple wealth transfer anymore; families are thinking holistically,” says Nina Auchoybur, Managing Director, UAE at Ocorian.

The cover story for this issue features Christoph Koster, CEO of ruya, the UAE’s first digital Islamic bank. Christoph points out in his interview that “ruya” means vision in Arabic which he says reflects their forward-looking approach to finance, and he continues to detail how they are aiming to make their vision take shape.

As fiscal deficits fuel issuance, the need to fund forward development priorities and with corporates and sovereigns increasingly tapping the markets, we take a look at the regional Debt Capital Markets. “Debt issuance in the GCC today is fuelled by a dual dynamic of refinancing and fresh capital raising”, states Citi’s Victor Mourad, Co-Head of CEEMEA Debt Financing.

In one of this edition’s focus sections, we take a look at regional PE&VC, where with global geo-political wariness and uncertainty afoot, the scene regionally appears more positive.

Also in this issue, CICC, one of China’s leading investment banks, gives us their perspective on the region and the growing integration of the GCC with Asian Markets, as Barry Chan, CICC’s Head of Asia-Australia Region puts it, “The Gulf and Asian markets are increasingly interconnected, a trend driven by shared economic goals and complementary strengths”. Mashreq comes in with a look at the importance of continual learning for bank employees in these times of change, with Hamda AlShamali, Group Chief People and Intellectual Capital Officer highlighting that, “Banks that foster strong learning cultures are significantly more agile and resilient in the face of disruption”. And, as a practical example of looking ahead, Standard Chartered Bank’s Rajesh Singhi, Global Head of Diversified Industries and Oil, Gas and Chemicals, M&A Advisory explains the increase in regional M&A activity.

Always envisioning the future, our extensive coverage of technology in this edition includes GBM outlining the unavoidable necessity of APIs in modern banking; Maveric Systems divining the future of data-led AI and the necessities and benefits of such; Adria underscoring the need for forward thinking and allying resilience with agility when addressing cyber threats and with AI, very much considered the unavoidable vision of the future, it is given a refreshing perspective by Sanat Rao, Cofounder and Managing Director, Within The Box.ai, who explains why it is important to teach machines to doubt.

Finally, our Market Focus this time is on Qatar which, looking to the future is investing in a knowledge-based economy and non-energy sectors to hedge against future volatility and secure long-term prosperity.

So, completing this letter you now have a vision of your near future reading and can venture unto these pages with the enthusiasm this knowledge provides.

Network International expands SME lending marketplace services with Wio Bank partnership

SME Merchants to benefit from a fully integrated digital, lending experience – from application to disbursement

Network International (Network) has announced a strategic partnership with Wio Bank PJSC to offer digital lending solutions for SME merchants in the UAE.

As a part of this collaboration, Wio Bank’s lending products are now integrated into Network’s platform, an innovative digital merchant lending marketplace designed to simplify and accelerate access to credit for SMEs. The partnership aims to empower SME business owners with faster, more efficient access to credit facilities through an end-to-end digital journey.

Eligible merchants can apply for financing online, receive personalised loan offers from Wio Bank PJSC based on real-time transaction data from Network and complete the entire process, from loan application to loan disbursement, through a single platform.

Murat Cagri Suzer, Group Chief Executive Officer at Network International,

commented: “At Network International, our focus is on building innovative solutions for our customers. In line with this vision, we have established partnerships with leading banks across the UAE to support the growth of SMEs. Small businesses transacting through Network International’s payment platforms will have easier access to loans through our partnership with Wio Bank. Hence, we’re excited to welcome Wio Bank to our platform as a digital lender, offering a lending experience as easy as one-click loans.”

Jayesh Patel, CEO of Wio Bank, said: “Our partnership with Network International simplifies access to credit and financial management for SMEs. Our goal is to foster business growth and drive entrepreneurship across the UAE by enabling a stronger ecosystem where businesses can scale with confidence and succeed.”

This partnership strengthens Network’s commitment to supporting SMEs with accessible financing and providing comprehensive business tools to merchants while expanding Wio Bank’s reach to a broader base of merchants.

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We’ll make a lifelong commitment to partner with you. A partnership built upon the values of honesty and fairness.

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Unlocking the Middle East’s API-Driven Open Banking Era

Rajesh Nagpal Director of Technology, GBM outlines the positive changes and unavoidable necessity of APIs in our modern banking and commerce ecosystem, while highlighting the importance of also maintaining an API-first security model

In today’s fast-paced digital world, technology has made our financial interactions smoother and more intuitive than ever before. For instance, you may have easily split a dinner bill with friends using a payment app or secured a car loan online without ever visiting a bank branch. These seamless, secure financial experiences, unimaginable just a few years ago, are increasingly powered by open banking. This transformative approach allows companies and individuals to collaborate and provide innovative methods for managing their finances.

Open banking is a secure system that allows you to share your financial data, with your explicit consent, between banks and regulated third-party providers. Traditionally, your financial information

was locked within your bank. Now, using Application Programming Interfaces (APIs), that data can be securely accessed by services like budgeting apps, lending platforms or payment initiation tools. The result is more competition and innovation in the financial sector, more personalised offerings and a holistic view of your finances, all while keeping you in control of your data.

A Global Success Story

Open banking is fast becoming the global standard for how financial data is shared. Countries like the United Kingdom, which mandated open banking in 2018 for its nine largest banks, have seen the benefits of this framework in action. Other leaders include Australia, Singapore, Sweden and Germany, where open banking has supported the growth of fintech ecosystems, enhanced customer experience and improved financial inclusion.

The markets in the Middle Easter are catching up quickly as well. In the region, what began as a regulatory necessity is now a strategic enabler of innovation. Initially driven by compliance mandates from the UAE Central Bank and Saudi Arabia Monetary Authority (SAMA), open banking has evolved into a platform for digital transformation.

Rajesh Nagpal, Director of Technology, GBM

As Strategy& Middle East puts it, “The question ‘comply or compete?’ is obsolete.” Today, open banking is not just a regulatory checkbox but a powerful driver of digital innovation, customercentricity and ecosystem collaboration.

Through secure, scalable APIs, financial institutions are monetising data, launching premium API offerings and delivering banking-as-a-service models. Countries like Bahrain and Saudi Arabia were among the first in the region to roll out regulatory sandboxes and open banking frameworks back in 2018. The UAE is expected to introduce its Open Finance framework by 2026, further accelerating momentum.

Gateway to Secure Business Models

As MEA economies become more digital-first, open banking is taking center stage as a driver of monetisation and agility. APIs are no longer just technical connectors; they are the gateways to new revenue streams and ecosystem leadership.

According to Grand View Research, the MEA open banking market was valued at USD 2.26 billion in 2024 and is projected to reach nearly USD 10 billion by 2030, growing at a CAGR of 28.3%.

To fully capitalise on open banking’s potential, MEA banks must mature their API ecosystems from basic exposure to robust platforms that enable realtime, personalised and secure financial services. To thrive in this landscape, banks must design their APIs and business models to collaborate not just with fintechs but also with telcos, retailers and even government entities.

Addressing API Blind Spots

While APIs power modern digital banking, they are also one of the most targeted threat vectors. According to reports, over 70% of internet-facing applications depend on APIs, yet many organisations lack visibility into their API inventory— especially in complex hybrid or multicloud environments.

These “API blind spots” pose real threats, leading to data breaches, fraud and regulatory penalties. In a region where digital transformation is progressing rapidly but unevenly, robust API security is paramount. Financial institutions must ensure that security and innovation should no longer be seen as opposing forces but as two sides of the same coin. In fact, a secure API infrastructure fosters

sandboxing, version control and throttling, which are essential for rolling out safe and efficient open banking solutions.

From Back-End Utility to Strategic Asset

APIs are no longer just technical tools; they are strategic assets. They enable real-time orchestration between banks, fintechs and third parties, accelerating

APIS ARE NO LONGER JUST TECHNICAL CONNECTORS; THEY ARE THE GATEWAYS TO NEW REVENUE STREAMS AND ECOSYSTEM LEADERSHIP

experimentation, speeds up innovation and builds customer trust, all while reducing breaches and simplifying compliance.

Traditional perimeter-based security models are no longer enough. What is needed is an API-first security model that can offer real-time threat detection across hybrid environments, strong identity and access controls and centralised governance and auditing.

Technology solutions providers such as Gulf Business Machines (GBM) are playing a critical role in helping banks and fintechs across the region build secure, scalable API ecosystems. A 2022 GBM survey of CIOs in the UAE, Oman and Kuwait found that more than half of the organisations surveyed had adopted a cloud-first strategy, while nearly 50% preferred a hybrid cloud approach for its balance of agility and compliance.

Many institutions in the region already operate in hybrid environments with cloud-native API stacks supporting on-premises, private and public cloud deployments with consistent security and governance. Hybrid and cloud-native environments are ideal for building secure APIs and enabling features like

product development and unlocking new revenue lines. For instance, stc pay, launched in 2018 under Saudi Arabia’s open banking framework and fueled by widespread smartphone adoption, reached a USD 1 billion valuation within two years, with over 8 million users. According to Strategy&, by offering premium APIs, banks can tap into underserved segments like SMEs, freelancers and early-stage entrepreneurs who can further harness and capitalise on the opportunities that the growing economies offer.

The MEA region is at a crucial turning point. Open banking is no longer just about meeting compliance deadlines; it is about transforming how financial services are delivered, experienced and monetised. To succeed in the API economy, banks in the MEA region must create ecosystems that are secure by design, scalable in architecture, developer-friendly and resilient in hybrid cloud environments. Financial institutions that recognise this shift and make significant investments in their API ecosystems will not only remain competitive but also help shape the future of finance in the region.

Brain Fuel

Qatar is determinedly retooling its economic model, investing in a knowledge-based economy and non-energy sectors to hedge against future volatility and secure long-term prosperity, but nevertheless is poised to control about a quarter of the world’s LNG market with plans to double its export capacity

Qatar has remained largely unscathed in the face of escalating global trade tensions, including sweeping US tariffs and an increasingly uncertain geopolitical environment.

The external headwinds have had limited impact on the Gulf state’s economic trajectory, which continues to benefit from prudent fiscal management, a robust energy sector and ongoing diversification efforts.

“Qatar is looking ahead to an era of transformation and growth, which is underpinned by its Third National Development Strategy (NDS-3),” PwC said in its Qatar Economic Watch report, while highlighting the transformation

that the country is undergoing from a hydrocarbon-dependent economy to a diversified and knowledge-based one.

Qatar’s gross domestic product (GDP) is projected to rise by 2.81% in 2025, according to the Institute of Chartered Accountants in England and Wales (ICAEW), with growth expected to more than double in the next year as additional LNG capacity comes online.

Qatari authorities have both the means and the intent to push ahead with the country’s ambitious economic overhaul. Backed by deep financial reserves, the Gulf state’s decade-long diversification drive is beginning to bear fruit.

Tourism, in particular, has emerged as a notable contributor to non-energy

growth, with overnight arrivals surging to 5 million in 2024, up 23% from the previous year. The broader aim is precise – to lay the foundations of a more resilient, knowledge-driven and inclusive economy, less tethered to the whims of hydrocarbons.

Meanwhile, Qatar’s banking sector has proved to be resilient, adapting with quiet efficiency to shifting global monetary tides and tightening regulatory demands. Despite ongoing shifts in the financial landscape, the sector has maintained a steady hand, balancing caution with a focus on long-term stability.

“Qatari banks are profitable and benefit from strong capitalisation and adequate liquidity, a trend that is expected to continue with only a modest drop in net interest margins owing to interest rate cuts,” according to S&P Global.

Qatar’s economic trajectory continues to demonstrate notable strength, consistently exceeding global growth benchmarks despite a challenging global macroeconomic environment. The robust performance underscores the efficacy of the nation’s proactive strategic orientation and its capacity for economic adaptation.

Sustained optimism

Qatar’s economy has expanded nearly 38-fold, propelled by its vast hydrocarbon reserves. The Gulf state is doubling down on its vast natural gas riches to secure its future as it transitions into the post-2022 FIFA World Cup phase.

Speaking at the Qatar Economic Forum 2025, Energy Minister Saad Al-Kaabi said natural gas is here to stay and there is no dearth of buyers willing to lock in deals for years to come.

Compared to its oil-rich Gulf neighbours, Qatar is leaning into its energy advantage, which includes the world’s third-largest reserves of natural gas, to underwrite the long-term health of its public finances and safeguard longterm economic stability.

The Gulf state is investing tens of billions of dollars to more than double its liquefied natural gas (LNG) export capacity, from 77 million tonnes currently to 160 million tonnes, both domestically as well as at its project in the US.

With a two-phase mega-expansion already underway and an enormous new buildout on the horizon, Qatar 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.

“Medium-term growth is expected to accelerate to 4¾% on average, boosted by the significant LNG production expansion and initial gains from implementing reforms guided by the NDS3 initiative,” according to the International Monetary Fund (IMF).

Last year, the Gulf state unveiled 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.

Qatar’s planned expansion of natural gas production is expected to generate over $30 billion in additional annual revenue, a portion of which will flow into the sovereign wealth fund. Global SWF, assets held by the Qatar Investment Authority, could reach $905 billion by 2030, putting it in the same league as regional giants such as Saudi Arabia’s Public Investment Fund and the Abu Dhabi Investment Authority.

The Gulf state, which is rated ‘AA’ by Fitch and S&P and ‘Aa2’ by Moody’s, is

QATAR IS LOOKING AHEAD TO AN ERA OF TRANSFORMATION AND GROWTH, WHICH IS UNDERPINNED BY ITS THIRD NATIONAL DEVELOPMENT STRATEGY.

– PwC

poised to benefit significantly from its ambitious LNG expansion. The global ratings agencies concur that the surge in gas output will act as an engine for economic growth, fiscal strength and export performance.

Accelerating diversification

Bolstered by significant infrastructure developments for the 2022 FIFA World Cup and strategic reforms in the business and investment landscape, Qatar’s economy has witnessed significant expansion in recent years.

“Strong reform momentum created by NDS3 is encouraging, and the success hinges on proper prioritisation and enhanced inter-agency coordination in reform implementation,” the IMF said, while noting that Qatar’s priorities are to foster innovation, promote foreign investment and domestic knowledge spillovers.

Qatar’s recent gains in high-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 Gulf state is steadily positioning itself as a leading regional hub for the knowledge economy as part of the Qatar National Vision 2030 – the overarching initiative tasked with diversifying the country’s economy.

“Qatar has been actively preparing to embrace the transformative potential of AI, allowing it to lead its Emerging Market peers in AI readiness,” said the IMF.

Qatar’s embrace of artificial intelligence is gathering pace. The government in Doha unveiled a QAR 9 billion ($2.5 billion) incentive package to spur investment in AI

and digital innovation in May 2024, a clear signal of its ambition to become a regional tech hub.

The push is not confined to the public sector. State-owned telecoms giant Ooredoo secured QAR 2 billion in financing from a consortium of local lenders led by QNB Group in September 2024 to help expand its AI and data centre capabilities, with plans to build 120MW of capacity over the next five years.

On the tourism front, buoyed by the success of the FIFA World Cup 2022, Qatar has set its sights on turning football-fuelled euphoria into sustained tourist interest.

The government has rolled out a raft of initiatives to bolster its appeal, including the expansion of Hamad International Airport, the launch of the Hayya visa platform and a push to develop luxury resorts and cultural landmarks.

“Qatar aims to attract 7.1 million overnight guests by 2030, focusing on cultural attractions, sports, urban development and family-oriented activities with plans to increase its hotel supply to 59,000 keys,” Roland Berger said in its Tourism in the GCC report. Hotel supply is also set to expand significantly, with a target of 59,000 keys by 2030.

The Gulf state has emerged as a hub for global sport, building on the momentum of the FIFA World Cup with a steady stream of high-profile events –from the FIP World Padel Championship to the Formula 1 Qatar Grand Prix and the Wanda Diamond League.

The country’s investments in premier venues such as the Lusail International Circuit reflect a calculated strategy to

harness sport not just for spectacle but as a tool for soft power, tourism and economic diversification.

Fiscally fit

Qatar, one of the world’s biggest LNG exporters, has stepped up efforts to diversify its economy away from hydrocarbons but remains reliant on gas revenue for the majority of government income. The country recorded a deficit of QAR 0.5 billion ($133.31 million) in Q1 2025, caused in part by falling oil and gas prices.

To plug the budget gap, Qatar raised $3 billion through a dollar bond sale in February, banking on its reputation as one of the safest emerging-market credits. The sovereign issued $1 billion in threeyear senior unsecured notes and $2 billion in 10-year bonds.

Sheikh Tamim bin Hamad Al Thani, the Amir of Qatar, approved the state budget for 2025 last December, forecasting a budget deficit of QAR 13.2 billion. The budget estimates total expenditures of QAR 210.2 billion, marking a 4.6% increase from a year ago and total revenues of QAR 197 billion.

However, Fitch Ratings strategists projected Qatar’s budget surplus at 3.9% of GDP in 2025, down from 4.8% in 2024, including investment income from QIA’s external assets.

“We expect the budget surplus to narrow further in 2026 at 3.3% due to lower hydrocarbon prices (Brent: $65 per barrel) and a moderate rise in current spending.”

Qatar projects oil and gas revenues at QAR 154 billion for 2025, down 3.1%

QATARI BANKS ARE PROFITABLE AND BENEFIT FROM STRONG CAPITALISATION AND ADEQUATE LIQUIDITY, A TREND THAT IS EXPECTED TO CONTINUE WITH ONLY A MODEST DROP IN NET INTEREST MARGINS OWING TO INTEREST RATE CUTS.

from QAR 159 billion year, while non-oil revenues are seen flat at QAR 43 billion.

The Gulf state’s debt-to-GDP ratio is projected to decline to around 43% by 2027, down from 49% in 2024 and a peak of 85% in 2020, driven by moderate budget surpluses and reduced reliance on external loans.

Fitch Ratings said the future debt trajectory will depend on how Qatar uses its fiscal surpluses.

“Persistent high global yields could encourage Qatar to continue to allocate a share of its surpluses to deleveraging after 2025. The projections include QAR 52 billion in government overdrafts with local banks, which are excluded from the official debt figures,” the ratings agency said.

Meanwhile, the Qatari banking sector experienced a landmark year in 2024 and remains on a strong footing. Fitch Ratings said Qatar has a robust banking sector, with assets reaching 265% of GDP and net foreign liabilities surpassing $117 billion, equivalent to 55% of GDP in 2024.

Moody’s said Qatar’s economic resilience will help offset weakening asset quality in the banking sector, particularly in the real estate and contracting segments. The ratings agency said profitability in the Qatari banking sector will likely remain stable in 2025, buoyed by steady operating income and low costs, despite elevated risk charges.

“The Qatari banking system remains stable, reflecting our expectation of slightly higher economic growth in 202526, as well as the banks’ strong capital and liquidity buffers,” Moody’s said in a note.

Qatar Central Bank (QCB) followed the US Federal Reserve’s decision to keep interest rates unchanged in June to protect the riyal’s peg against the US dollar. “QCB’s progress in enhancing liquidity management is commendable and continued efforts are important to further strengthen the effectiveness of the monetary operational framework,” said the IMF.

MEDIUM-TERM GROWTH IS EXPECTED TO ACCELERATE TO 4¾% ON AVERAGE, BOOSTED BY THE SIGNIFICANT LNG PRODUCTION EXPANSION AND INITIAL GAINS FROM IMPLEMENTING REFORMS GUIDED BY THE NDS3 INITIATIVE.

Qatar’s banking sector remains sound, underpinned by strong capital buffers, prudent oversight from the central bank and abundant hydrocarbondriven liquidity. However, continued regulatory vigilance is needed to preserve stability, particularly in managing rising net foreign liabilities, addressing asset quality pressures at select banks and monitoring growing links between lenders and the public sector.

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Issuing Forth

Borrowing appetite is on the rise across the GCC, with fiscal deficits expected to fuel issuance as corporates and sovereigns post a marked increase and governments tap debt capital markets to fund development priorities

GCC states are uniquely positioned to manage the economic impact of the Trump administration’s tariffs more effectively than many other global regions, according to regional economists and investors. However, the volatility of crude oil prices poses a significant risk to the fiscal budgets of some countries and their planned spending projects.

The Institute of Chartered Accountants in England and Wales (ICAEW) projected GDP growth of 4.4% in the GCC region in 2025, adding that though President Donald Trump’s proposed universal 10% trade tariff poses a new external risk to regional economies, its impact on the region is likely to be limited.

The recently announced US tariffs, combined with growing fears of a global recession, have weighed heavily on global debt markets, driving volatility to levels not seen since the early stages of the pandemic.

“While tariffs are often seen as a means to protect domestic industries and raise government revenue, they carry significant risks for inflation, economic growth and corporate profitability,” according to Morgan Stanley.

Though steep trade tariffs and protectionist policies have several ramifications on market conditions, including scaring off investors and borrowers, global debt markets have so far remained resilient. JP Morgan said the

market is pricing the Fed cutting rates to 3.5% by the end of the year, with the first cut fully priced by June.

“We have turned more positive on bonds given growth risks and the diversification they can provide to a portfolio. We think growth risks will likely outweigh inflation risks as the primary driver, pushing yields lower,” said JP Morgan strategists.

Debt capital markets remain a key funding source for sovereign and corporate issuers in the GCC, linking them to global investors to finance projects, refinance debt, cover fiscal gaps, and diversify funding.

Global debt capital markets activity surged to over $979 billion in 2024, marking the highest total since 2009, according to the London Stock Exchange Group’s annual report. The number of issuances also hit a record high, exceeding 14,058 – the most ever recorded in a single calendar year.

The gradual interest rate cuts by the US Federal Reserve, the European Central Bank and most central banks in the GCC region, buoyed by easing inflation and resilient markets amid

ongoing geopolitical uncertainty, created favourable conditions for sovereign and corporate issuers alike.

Despite pockets of geopolitical uncertainty tempering investor sentiment in H1 2025, a broadly benign backdrop, marked by moderating inflation and modest growth, proved very supportive of risk assets.

“The current economic backdrop, lower interest rates, subdued inflation and modest but positive GDP growth, has set the stage for a rebound in strategic investments and capital raising across debt and equity,” said Morgan Stanley.

Bond issuance in the GCC surged to $4.6 billion in Q1 2025, up from $1.6 billion for the corresponding period a year ago, while Sukuk issuance reached $4.1 billion, according to PwC. Ample liquidity, underpinned by steady inflows into credit funds, has helped maintain a buoyant tone in regional debt capital markets so far in 2025.

A healthy start to 2025

GCC states remain resilient relative to other emerging market economies, making the oil-rich region a rare bright spot amid mounting global uncertainties.

The region’s debt capital markets ended 2024 on a strong note, and this year has remained robust, as sovereign and corporate issuers continue to capitalise on favourable liquidity conditions.

GCC bond issuance is projected to remain buoyant in 2025, supported by modest oil price forecasts and a robust pipeline of government-led projects. Kamco Invest projected that a large portion of the supply is expected to be driven by deficit financing needs and upcoming debt maturities.

Debt issuance is already showing signs of acceleration in 2025. GCC’s fixed income maturities are projected to rise to $89.8 billion in 2025, with refinancing anticipated to drive the majority of sovereign and corporate issuance across the region.

Fiscal deficits by some GCC countries, including Saudi Arabia, Bahrain and Oman,

are expected to drive debt issuance in the region this year.

Saudi Arabia projected a fiscal deficit $26.88 billion (SAR101 billion) or 2.3% of GDP as the kingdom continues to spend on massive megaprojects. The Gulf state plans to tap international and local debt markets to replenish its coffers. Earlier in January, Saudi Arabia’s National Debt Management Centre raised $12 billion from global debt markets in a three-part bond sale.

The kingdom also sold $5 billion, $3 billion, and $4 billion in tenors of three, six, and 10 years in January, days after it secured $2.5 billion from three foreign

gap, the Gulf state raised $3 billion through a dollar bond sale in February, banking on its reputation as one of the safest emerging-market credits.

The sovereign issued $1 billion in threeyear senior unsecured notes and $2 billion in 10-year bonds.

Fitch expects debt issuance from Qatari entities to grow steadily and to exceed $150 billion in the medium term. “The potential development of digital government bonds, as part of the Qatar Central Bank’s Central Bank Digital Currency project, can support the market’s depth and sophistication,” said Fitch.

WE HAVE TURNED MORE POSITIVE ON BONDS GIVEN GROWTH RISKS AND THE DIVERSIFICATION THEY CAN PROVIDE TO A PORTFOLIO. WE THINK GROWTH RISKS WILL LIKELY OUTWEIGH INFLATION RISKS AS THE PRIMARY DRIVER, PUSHING YIELDS LOWER.

– JP Morgan

banks – Abu Dhabi Islamic Bank, Credit Agricole SA and Dubai Islamic Bank.

Oman forecasted a deficit of $1.61 billion (OMR 620 million), a 3% decrease from the previous year’s budget. To plug the deficit and manage public debt, the Sultanate plans to raise OMR 750 million through eight issuances of government development bonds valued at OMR 550 million and two local Sukuk issuances worth OMR 200 million.

However, Fitch Ratings projected that debt issuances by Omani entities would continue, albeit at a slow pace, in 2025/26, in line with the sovereign’s aim to reduce its debt to about 30% of GDP.

Following a surplus on its budget and current account in 2024, Qatar is expecting a shortfall $3.62 billion (QAR 13.2 billion) this year. To plug the budget

Meanwhile, Kuwait’s cabinet approved a draft decree in March, paving the way for the oil-rich Gulf state to sell international debt for the first time in eight years. The original draft law stipulated enabling as much as $98 billion (KWD 30 billion) or 62% of Fitch-estimated GDP in 2024 to be raised over 50 years.

“Kuwait’s financing and liquidity law clears the way for government debt to increase from its very low level, which we anticipated when we affirmed the sovereign’s rating at ‘AA-’/Stable on 7 March,” said Fitch Ratings.

On the corporate front, Saudi banks are accelerating the issuance of risky debt as the kingdom grapples with the mammoth spending demands of building megaprojects and hosting global sporting events.

Saudi banks, including Al Rajhi Bank and Banque Saudi Fransi, have raised over $5.6 billion in Additional Tier 1 bond sales this year, already a record annual total, as lenders shore up capital amid a wave of spending on giga projects that are set to reshape the kingdom’s skyline.

Saudi Arabia’s wealth fund, the Public Investment Fund, secured a $7 billion Murabaha credit facility from a consortium of global and regional banks in January. It also sold $4 billion of debt in the same month.

State-run oil giant Saudi Aramco raised $5 billion in a three-tranche US dollar bond sale in June, stating that the proceeds will be used for general corporate purposes.

ADQ, the smallest of Abu Dhabi’s sovereign wealth funds, raised $2 billion in a dual-tranche bond sale in April, with proceeds earmarked for growth capital and project funding.

Abu Dhabi-based Aldar Properties raised $1 billion through a hybrid bond issuance earlier this year, while renewable energy firm Masdar also secured $1 billion via a green bond offering, bringing the total outstanding under its green bond programme to $2.75 billion.

Sukuk issuance

Sukuk remains the flagship Islamic Capital Market instrument and one of the fastest-growing sectors of the Islamic finance industry. Global sukuk issuance is expected to moderate in 2025, falling to between $210 billion and $220 billion, according to Moody’s. The anticipated decline follows a stronger-than-expected issuance volume in 2024, which marked a record high for the market.

The slowdown will largely be driven by a pullback in sovereign issuance, Moody’s said, citing reduced refinancing requirements and the absence of Saudi Arabia’s large-scale liability management operation, which significantly boosted volumes last year. However,

“Financial institutions and corporate sectors will partially compensate for this fall on the back of lower and expected rate cuts,” said Moody’s.

Abu Dhabi’s Mubadala raised $1 billion through a 10-year dollar-denominated sukuk, marking its first debt issuance of the year. The sale follows PIF’s $1.25 billion seven-year sukuk in April, which attracted strong demand with orders exceeding $8.2 billion.

Dubai port operator raised $1.5 billion via its 10-year sukuk that drew investor bids of more than $3.6 billion, while Abu Dhabi’s energy giant, ADNOC Group, raised $1.5 billion from sale of its 10-year dollar-denominated debut Islamic bond under its newly established International Sukuk Program.

Islamic finance remains heavily concentrated in oil-exporting economies that are accelerating efforts to cut carbon

the issuance process, potentially opening the field to startups and small to mediumsized enterprises.

However, Fitch Ratings’ Bashar Al Natoor cautioned that a proposed change to the regime governing global sukuk risks transforming the asset class into an equity-like instrument that cannot be assessed by credit-rating companies.

Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Standard 62, aimed at strengthening compliance with Shariah, would require sukuk issuers to transfer ownership of the underlying assets to the investors.

Kamco Invest projected a robust issuance environment for the GCC region in 2025, underpinned by subdued

THE CURRENT ECONOMIC BACKDROP, LOWER INTEREST RATES, SUBDUED INFLATION AND MODEST BUT POSITIVE GDP GROWTH, HAS SET THE STAGE FOR A REBOUND IN STRATEGIC INVESTMENTS AND CAPITAL RAISING ACROSS DEBT AND EQUITY.

– Morgan Stanley

emissions – an ambition that is expected to fuel further growth in green sukuk issuance in 2025. The total outstanding volume of ESG-compliant Islamic bonds is projected to surpass $50 billion next year, according to Fitch Ratings, reinforcing their role as a key dollar funding instrument across core Islamic finance jurisdictions including Saudi Arabia, the UAE, Indonesia and Malaysia.

Similarly, the standardised supervision of Islamic finance is expected to lead to greater market confidence and restoration of its attractiveness to issuers. The tokenisation of Sukuk, leveraging blockchain technology, is expected to reduce the various costs associated with

oil price forecasts and a strong pipeline of government-led projects. The majority of issuances are expected to stem from deficit financing and the refinancing of maturing debt obligations.

Globally, fixed income issuance volumes are forecasted to contract in 2025 following the record levels seen in 2024. Rising yields, higher than previously anticipated, are a principal factor expected to dampen year-on-year issuance growth. Within the GCC, debt maturities are set to remain elevated at about $89.8 billion in 2025. The refinancing of these obligations is forecast to drive much of the debt issuance activity across both sovereign and corporate sectors.

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Powering Ahead

With the region’s debt capital markets experiencing strong growth this year, Nour Safa Managing Director and Head of Debt Capital Markets, MENA at HSBC provides a detailed insight into the factors fueling this performance

How would you categorise the performance of the debt capital markets in the GCC in H1?

The GCC’s debt capital markets have seen strong growth in 2025; volumes year to date have reached USD105bn, up by 7.3% year-on-year represent a record period compared to all prior years and are driven by several factors which, collectively, underscore the underlying confidence in region’s credit fundamentals. For the fifth year in a row, HSBC has been ranked as the top DCM bookrunner in the MENA and GCC regions for the first half of the year.

One of the standout stories of debt issuances in H1 2025 is the breadth of issuers, whether sovereigns, corporates or banks. Saudi Arabia was the most active issuer nation during the first half of 2025 accounting for 52% of total bond proceeds, followed by the UAE (25%) and Qatar (8%). While corporates accounted for 55% of the total proceeds raised during the first half of 2025, government and agency issuers contributed 26%.

In terms of key themes, we are seeing increasingly strong appetite from Asian investors to invest in the GCC as they diversify their investments away from their home markets. HSBC’s dominance in both markets has been leveraged to ensure that we capture such interest from Asia into GCC debt offerings.

We also continue to see strong demand for Islamic bonds in the region and HSBC has been at the forefront, as one of the top arrangers and bookrunners. In the first half of the year, GCC Sukuk volumes reached $54.8 billion, a 26% year-on-year increase, another all-time first-half record. Sukuks accounted for 55% of total bond proceeds raised in the region, compared to 49.4% during the same period last year.

What do you deem to be the leading forces and factors behind the growing Debt Capital Markets across the GCC?

Significant infrastructure projects require large funding across sectors,

Nour Safa, Managing Director and Head of Debt Capital Markets, MENA,

from governments, to GREs, corporates and banks. In this context, the bond and sukuk market have offered issuers what other markets could not - longer tenors, in bullet format, and at attractive pricing – providing them with the ability to effectively manage asset/liability mismatch or funding longer term projects.

Access to the market is further helped by the attractive pricing that issuers are achieving. Spreads in the region are at all-time tight levels and are currently comparable to the loan market. We have seen many issuers opt to refi some redemptions in the bond market rather than the loan market, driving further volume.

The range of markets accessed by issuers has been impressive this year and HSBC has been at the forefront of these instruments, having led the majority of capital instruments from the region. More FIG issuers come to market in tier 2 or additional tier 1 format to raise capital as well as some corporate raising hybrid instruments to support their growth plans, debt metrics & ratings. HSBC has led a number of these transactions including a $500mn PerpNC6 Tier 2 for QIC, $ 1.25bn tier 2 bond followed by $250mn tier 2 Sukuk for Saudi National Bank, $800mn PerpNC6 AT1 for NBK and $1bn PerpNC7 for Aldar Properties.

HSBC also led the delivery of the Middle East’s first digital bond, a US$100mn 3-year bond offering for First Abu Dhabi Bank, listed on the ADX. This marks the first step towards a future where digital assets become a mainstream part of the Middle East’s financial landscape

What currently are the leading purposes for the raising of debt in our region?

The GCC’s economic transformation is the key driver behind the increased DCM activity. Sovereigns across the region have initiated a number of projects across sectors, which has resulted in a good breadth of investors accessing the international bond and Sukuk markets.

1 Bloomberg as at H125

Sovereigns have been active in the international bond market, looking to refinance existing redemptions and bridge their deficit gaps. They have also raised debt, along with their GREs, to fund the various vision initiatives. For example, PIF has been a very active issuer in the debt space, raising $5.25bn this year through two visits to the market, both of which HSBC led. The capital raised by PIF is used to diversify funding sources and solidify its role as a

strong, and by issuers who are continuing to prepare to tap the debt capital markets later in the year.

As for public and private markets, the biggest challenge for the region is the volatility caused by broader economic market uncertainty, including oil price fluctuations which – if impacted – would see sovereigns having higher deficits to finance. This in turn means increased reliance on debt markets which would

THE GCC’S ECONOMIC TRANSFORMATION IS THE KEY DRIVER BEHIND THE INCREASED DCM ACTIVITY

key driver of economic diversification and innovation in Saudi Arabia. Meanwhile, banks in the region have been looking to further diversify their debt base, driven by strong growth ambitions.

We have also seen some M&A situations over the last few years which have stirred acquisition related financing, causing increased requirement to raise debt, and we expect this to continue.

In addition to above, we have had a strong line up of maturities in 2025 onwards, mainly caused by large amounts of debt raised during the pandemic. Many issuers have accessed the market for refinancing purposes.

What do you see as the bigger challenge to the debt markets of our region – the US trade tariffs themselves or the uncertainty surrounding the trade tariffs?

The US Trade tariffs have had a limited impact on the GCC, especially when comparing to other regions. This is acknowledged by both investors, whose appetite for regional credits has remained

need to be closely watched. However, at present appetite for the region is strong and investors globally are continuing to see the GCC as a diversification play.

How is the move across our region toward funding diversification progressing?

Corporate funding in the region has gone from strength-to-strength, driven by the Gulf’s underlying economic growth and the long-term investment initiatives. While the primary source of funding has continued to be the bank market, in recent years we have seen corporates and banks turn to the debt capital markets for diversification. The positive reception of regional credits reflects increasing confidence in the region’s fundamentals.

That said, the all-in cost of any funding instrument is closely compared by issuers and balanced against the pros and cons of each choice, for example tenor or repayment format, and we expect this to remain a key factor of consideration when deciding around which funding route to undertake and how robustly to diversify.

Adept Market Management

Detailing the growth and diversification of the GCC’s Debt Capital Markets, Victor Mourad Co-Head of CEEMEA Debt Financing at CITI explains how the challenges of current global uncertainties are being faced

What do you deem to be the leading forces and factors behind the growing Debt Capital Markets across the GCC?

The expansion of the Debt Capital Markets (DCM) in the Gulf Cooperation Council (GCC) is being driven by a confluence of structural, economic and strategic factors. At the macro level, sustained GDP growth—underpinned by elevated oil prices, disciplined fiscal policy and ambitious diversification agendas—has created a solid backdrop for credit issuance. Sovereigns and corporates are increasingly leveraging capital markets to fund multi-billiondollar investment programs across infrastructure, energy transition, logistics and tourism.

The region has also positioned itself as a core component of emerging market fixed income portfolios, thanks to pegged currencies, substantial

reserves, and high credit ratings. This stability has increased the GCC’s appeal to global investors seeking both yield and resilience.

A particularly powerful driver of growth has been the surge in Sukuk issuance. The GCC has cemented its role as the global hub for Islamic finance, with sovereigns and corporates alike using Sukuk not only to broaden their funding base but also to attract demand from deep pools of liquidity across Asia and the Middle East. Sukuk issuance has transitioned to become a core funding tool in regional funding strategies.

The growth of the regional IPO market also meant that several companies continue to focus on debt issuances as part of their pre-IPO capital planning with this being an area of increased focus for Citi in the past years.

What

currently are the leading purposes for the raising of debt in our region?

Debt issuance in the GCC today is fuelled by a dual dynamic of refinancing and fresh capital raising. On one side, issuers are proactively managing their debt profiles, refinancing obligations with some originally taken on during the ultra-lowrate environment of 2020–2021. With key maturities looming in

Victor Mourad, Co-Head of CEEMEA Debt Financing, CITI

2025–2026, many are aiming to smooth out redemption schedules and optimise their cost of capital.

On the other hand, a steady stream of new issuance is supporting ambitious capex programs, infrastructure rollouts, pre-IPO planning and M&A activity—particularly among sovereignrelated entities and increasingly among private-sector corporates. This reflects the evolution of the GCC’s credit markets: debt is no longer treated as an opportunistic tool, but as a core pillar of long-term corporate finance strategies. At Citi, we have been extremely busy assisting a large list of the first-time issuers during their journey to access the markets with a partnership across the various work-streams all the way to the issuance stage.

In summary, attractive all-in yields and tight pricing levels are allowing issuers to extend duration and align financing with optimal capital structures, a key objective for those targeting sustainable balance sheet management.

What do you see as the bigger challenge to the debt markets of our region – the US trade tariffs themselves or the uncertainty surrounding the trade tariffs?

While US trade tariffs may not directly target the GCC, the region remains sensitive to global investor sentiment and capital flows. This interconnectedness means that the uncertainty surrounding tariffs—and the volatility they trigger— can temporarily dampen market access, as evidenced by the issuance freeze observed globally in early April.

The growing ability of regional issuers to execute transactions swiftly—even under volatile conditions—highlights the increasing sophistication and preparedness of GCC borrowers. This resilience is not going unnoticed: investors are reassessing the geopolitical risk premium historically associated with the region, particularly as global asset managers increase allocations and open regional offices across the GCC.

We can now even say that demand for regional credits increased as GCC spreads have become more decoupled from broader emerging market volatility over the years and tested by several shocks.

How are the regional bond and sukuk markets responding to the wider geo-political environments?

More broadly, the GCC has long carried

borrowers are increasingly tapping into EUR, GBP and local currency pools. Issuers are also skilled at navigating various formats—whether through 144A/ RegS deals to reach US investors, or via smaller markets such as Formosa bonds targeting Taiwanese investors.

Sukuk continues to expand its reach, particularly among sovereigns and quasisovereigns, where a rising number of debut issuers is deepening the market.

DEBT ISSUANCE IN THE GCC TODAY IS FUELLED BY A DUAL

DYNAMIC OF REFINANCING AND FRESH CAPITAL RAISING

a geopolitical risk premium. Yet the past few months proved that despite multiple geopolitical shocks, regional bond and Sukuk markets have demonstrated impressive resilience. Strong fiscal fundamentals, substantial sovereign reserves and a maturing investor base have anchored confidence, with the region notably reopening the global EM issuance pipeline after the April market hiatus.

How is the move across our region toward funding diversification progressing?

Funding diversification in the GCC is no longer aspirational—it is a defining feature of the region’s capital markets landscape. Issuers are actively deploying a wide mix of funding tools: conventional bonds, Sukuk, private placements, syndicated loans and structured solutions. The investor base is similarly diverse, spanning regional institutions, global EM funds, Sharia-compliant investors and dedicated ESG mandates.

On the currency side, while USD issuance remains dominant, GCC

Local currency bond markets are also gaining traction with active development of domestic debt programs offering issuers access to onshore and regional liquidity. We expect further growth and developments in this market that will eventually lead to an even wider appeal from international investors into these currencies.

The region is also leading innovation in ESG financing. Green bonds, sustainability-linked Sukuk, and other ESG-aligned instruments are helping issuers meet their net-zero and climate targets—while simultaneously attracting a new class of impact-focused investors.

T he embrace of subordinated structures, such as bank capital and corporate hybrids, also illustrates the region’s growing depth and flexibility across the capital structure.

Looking ahead, we expect to see continued innovation in formats and sophistication in this asset class. This will translate to a steady growth in volumes across all sectors as issuers access an increasingly long list of sources of capital.

Allying Resilience with Agility

Reda Oummouy Chief Marketing, Sales & Innovation Officer at Adria explains how to implement a cutting-edge, highly secure and fully operational digital banking platform, and how Adria partners with clients across the region to ensure positive outcomes for them and their customers

How does Adria approach creating secure digital banking platforms to defend against everevolving cyber threats?

At Adria Business & Technology, we view security not as a feature, but as a core design principle. From the earliest phases of development, we embed a multi-layered security approach that evolves in parallel with the threat landscape.

Our architecture is based on secureby-design principles, with robust security embedded at every level of the platform. We implement end-toend encryption, secure APIs and multifactor authentication to safeguard data and user access. In addition, we align with globally recognised standards and certifications, including PCI DSS for secure handling of payment data and FIDO for strong authentication. These certifications reflect our ongoing commitment to ensuring the highest levels of data protection, regulatory compliance and digital trust across all our digital banking solutions.

We also apply a proactive security posture: real-time threat detection powered by AI/ML, frequent penetration

Reda Oummouy, Chief Marketing, Sales & Innovation Officer, Adria Business & Technology

testing and continuous vulnerability assessments. Our infrastructure follows a zero-trust model with strict access control policies. This enables us to anticipate, rather than simply react to, emerging cyber threats.

How can technologies like biometrics, Optical Character Recognition and real-time eKYC ensure seamless yet highly secure onboarding process?

Customer onboarding is often the first impression a user has of their digital bank.

At Adria, we leverage advanced technologies to make this process both seamless and secure.

Biometrics, such as facial recognition or fingerprint scanning, ensures that the person accessing the account is truly who they claim to be. These identifiers are difficult to replicate and greatly reduce the risk of identity theft.

OCR plays a key role in accelerating the capture and verification of ID documents. It extracts information with precision and reduces manual entry errors, making the process faster and more user-friendly.

Combined with real-time eKYC, these technologies allow us to verify user identity in seconds, cross-reference with national databases or AML watchlists and onboard customers digitally without compromising compliance or security. This is especially critical in regions with growing mobile-first populations and remote banking needs.

What are the key considerations for maintaining regulatory compliance when designing and implementing a next-generation digital banking platform?

Adria’s platform is designed to be compliance-ready from day one. We recognise that regulatory requirements vary widely between countries, especially across the MEA region, so we build with adaptability in mind.

Key considerations include ensuring that sensitive customer data is stored and processed in accordance with local regulations such as GDPR, PDP, or DIFC laws, to guarantee full compliance with data residency and privacy requirements. We maintain immutable audit logs that record all transactions and system activities to provide transparency and accountability.

In terms of financial crime prevention, we integrate robust transaction monitoring systems with both rule-based and AI-powered alerting mechanisms to detect suspicious behaviors in real time. Consent management is also a priority, with mechanisms allowing users to grant, revoke or review their data-sharing permissions in line with open banking and global privacy frameworks. Additionally, we collaborate closely with banks and local regulatory bodies during the deployment phase to conduct compliance assessments and ensure ongoing alignment with evolving regulatory expectations.

How does Adria build in AI-driven personalisation and optimum user experience best practices to create an intuitive and userfriendly banking experience?

Digital banking is no longer just about functionality; it is about relevance and experience. Adria’s platforms embed personalisation and UX excellence at their core.

DIGITAL

BANKING

We also allow banks to A/B test new features and collect user feedback through in-app surveys and analytics tools, creating a cycle of continuous improvement.

Can you give us some examples of how Adria ensures continuous deployment and incident response preparedness to maintain peak operational performance in digital banking?

High availability and reliability are essential for any digital bank. Adria employs a modern DevSecOps pipeline that supports continuous integration and deployment. This allows us to roll out features or fixes quickly, without disrupting service.

We use containerised microservices to ensure resilience and scalability. Each component can be updated independently, minimising downtime.

For incident response, we maintain a 24/7 monitoring framework with automated alerting. Our teams are trained in predefined runbooks and

IS NO LONGER

JUST ABOUT FUNCTIONALITY; IT IS ABOUT RELEVANCE AND EXPERIENCE

Using AI and behavioral analytics, we build customer journeys that adapt to each user’s preferences, behaviors and needs. Our recommendation engines suggest relevant financial products, offer budgeting tips, or highlight upcoming payments, all in real time.

From a UX standpoint, we follow best practices rooted in mobile-first design, accessibility standards and microinteractions. We provide white-label, modular frontends that can be tailored to each institution’s brand identity, while ensuring intuitive navigation and minimal friction.

conduct regular incident simulations. We also implement chaos engineering practices to test system resilience under stress and ensure rapid recovery.

How does Adria help to ensure scalability, flexibility and high availability for digital banking services?

Scalability and flexibility are built into our platform’s DNA. We adopt cloud-native architecture, which allows our solutions to scale horizontally on demand, whether hosted in a private cloud, public cloud or hybrid environment.

Our microservices-based approach ensures that new features or services can be added without major rework. Banks can choose to activate only the modules they need, whether it is retail, corporate, onboarding or treasury, and integrate others later as the business evolves.

High availability is ensured through a combination of load balancing and infrastructure redundancy across multiple data centers, allowing for continuous service even in the event of localised failures. Our use of autoscaling groups enables the platform to dynamically adapt to traffic fluctuations, especially during peak usage hours. Realtime monitoring and predictive alerting systems help us detect and address potential issues before they impact end users. This approach has enabled us to support leading financial institutions across Africa and the Middle East in processing millions of transactions daily with consistent reliability and performance.

How does Adria’s digital banking platform enable open banking and seamless integration with third-party fintech services?

Adria fully supports the principles and technical foundations of open banking. Our platforms are equipped with secure, standardised APIs that allow banks to expose selected data or services to trusted third parties, while maintaining full control over access and consent.

We provide a developer portal and sandbox environment, enabling fintechs and partners to build and test integrations quickly.

Moreover, we offer prebuilt connectors for popular fintech use cases, from instant lending and PFM tools to loyalty programs and insurance products, helping banks to rapidly expand their ecosystem.

This flexibility allows our clients to innovate faster, deliver richer services and respond to changing customer expectations without rebuilding their core systems.

THE DIGITAL INTELLIGENCE ERA:

Harnessing Data-Led AI in Financial Institutions

Subramanian (Subi) Kuppuswami Director & Regional Head, UK & EMEA at Maveric Systems provides valuable insights into the necessities, the benefits and the future of data-led AI in regional banking

What does “Digital Intelligence” really mean in the context of today’s financial institutions?

Digital Intelligence is the convergence of clean, connected data - both structured (such as transaction records and customer profiles) and unstructured data (like emails, social media interactions and call transcripts) with machine-driven insights to drive smarter and more informed decisionmaking across every layer of a financial institution. As this convergence deepens, so does the level of contextualisation, allowing banks to interpret data within relevant business and customer contexts, thereby unlocking richer, more actionable insights.

This contextualisation is critical in enabling banks to understand customer behaviors more precisely, detect emerging patterns with greater accuracy and respond proactively to market changes. This integrated approach not only improves operational efficiency and risk management but also empowers banks to deliver highly personalised financial products and services tailored to individual needs and circumstances.

The real shift comes when Digital Intelligence, enriched by contextual

Subramanian (Subi) Kuppuswami, Director & Regional Head, UK & EMEA

understanding, is embedded into existing systems with minimal disruption, allowing banks to transform without dismantling what already works. Leveraging Digital Intelligence successfully will be critical for seamless innovation and modernisation in the banking and financial services industry.

How are banks and financial institutions adapting to this new era of data-led AI?

Financial Institutions and banks are responding dynamically and quickly to the growing demands of the financial landscape and are getting defined by their

ability to modernise data infrastructure effectively by harnessing AI to turn vast amounts of data into actionable intelligence. Those that successfully integrate AI into their data infrastructure are not only streamlining operations and reducing risk but also unlocking new revenue opportunities and transforming customer experiences.

Maveric Systems developed an advanced AI-powered Customer Support Transformation Solution for a global bank, significantly improving First Call Resolution (FCR) rates and reducing call handling time, transforming their customer service operations, driving greater operational efficiency and enhancing overall customer satisfaction.

What are the most impactful use cases of data-led AI you have seen in banking and FIs so far?

Some of the most impactful data-led AI use cases we are seeing our customers use are:

An ti Money Laundering (AML) solutions which enable banks to gain full visibility across transactions, compliance triggers and CRM touchpoints.

We are seeing use cases in fraud detection and financial crime prevention. At Maveric, we analyse real-time data to spot suspicious patterns, reducing false positives with behaviour-based models, uncovering fraud networks through graph analytics.

Ele vating customer interaction and personalisation through 24/7 chatbots that deliver hyperpersonalised banking experiences.

We have enabled predictive engagement with tailored financial advice that offers seamless service via conversational AI.

Credit-risk solutions leveraging alternative data such as social behaviours that can reduce approval times while enhancing accuracy Driving operational efficiency and workflow automation, equipping relationship managers with call summarisation tools, enable task execution via agentic AI and in some cases, streamline sustainability reporting in green finance.

Reshaping wealth management through robo-advisory and automated trading to drive trades, deliver personalised investment portfolios and enable risk-managed automation across advisory services. Enhancing regulatory compliance and risk monitoring, supporting internal risk assessments to ensure explainability, transparency and consent-driven use of personal data.

What are the data challenges institutions face before AI can be truly transformative?

Most institutions still face data silos, legacy infrastructure and low data governance maturity, and many are not willing to move their data or allow it to train public large language models (LLMs). The goal is to source open market data, train the LLM, and then deploy these models at the customer›s location. The other challenge is cloud adoption. While banks use cloud for analytics and marketing data, they keep operational and transactional data on-premises. These factors are slowing down cloud adoption and scale, while also facing challenges with reducing bias and ensuring explainability with broader data sets.

To enable AI, Financial institutions and banks need to first establish a cohesive and adaptable data backbone. At Maveric Systems, we consolidate data from multiple systems via APIs and CDC mechanisms, while providing a manual interface and

rule-based workflows that align with the organisation’s regulatory hierarchy. In essence, it bridges the gap between the old and new, making AI adoption far less disruptive and more intuitive.

How should institutions measure ROI from their AI investments?

This is one of the most challenging topics for the CXOs of financial institutions. The speed at which the AI tech is evolving is making this even more challenging. In that sense, the ROI from AI driven initiatives lies in both hard and soft returns. We see successful and tangible ROI from measurable factors such as reduction in false alerts and manual case reviews, faster time to compliance and enhanced customer personalisation

high-risk cases, while using intuitive interfaces to view the entire history and data lineage associated with a particular alert or status change, as seen in Maveric’s solution. The future is not man versus machine, it is man plus machine, working in tandem.

The prevailing mantra is to keep the human in the loop, empowering individuals to make smarter and more efficient decisions rather than replacing them. Looking ahead, what should be the AI roadmap for financial institutions in the Middle East over the next 2–3 years?

AI investments in financial institutions across the Middle East are accelerating at an unprecedented rate, yet many of them are struggling with talent shortage and technology capabilities critical for

IF DATA IS THE NEW OIL, AI IS THE REFINERY BUT ONLY WHEN THE PIPELINES ARE WELL LAID OUT

Customer satisfaction surveys represent a valuable means of measuring ROI, as this metric is consistently monitored across industries to evaluate the quality of customer experience (CX). ROI should also capture long-term enablers like scalability, futureproofing and auditability, all of which are core to their platform design.

Where do human roles evolve in an AI-first bank, and is there a fear of redundancy?

Human traits such as ethical judgment, creativity and contextual understanding remain essential for long-term success. AI augments humans. In financial institutions, especially within compliance and risk teams, the role of people is shifting from manual execution to informed supervision. With regulatory compliance where instead of combing through thousands of transactions, officers can now rely on AI to surface

successful scaling of AI adoption. Having said that, significant investments are leading to establishing a robust foundation in talent, technology and transformative capabilities such as data modernisation. Value creation for business is what will set apart the winners in the next 2-3 years. We definitely see most of our customers looking to adopt AI.

The UAE and Saudi Arabia (KSA) are leading this transformation, where regulatory support and a strong digital vision are driving innovation and a rapid adoption of AI technologies.

What is your message to banking leaders in the Middle East embarking on this journey?

If data is the new oil, AI is the refinery but only when the pipelines are well laid out. With the right partner and architecture, you can start experiencing the AI transformation at scale today, not years down the line.

MERGERS & ACQUISITIONS

All Coming Together

There has been a noticeable increase in regional M&A activity across multiple sectors as financial institution have at the same time strengthened their capabilities says Rajesh Singhi Global Head of Diversified Industries & Oil, Gas and Chemicals and M&A Advisory at Standard Chartered

What is behind the resurgence of regional M&A activity taking place this year?

There has been a clear rise in M&A activity across the Middle East in 2025. According to EY MENA M&A Insights report, the region recorded $46 billion in the first quarter of 2025, marking a 66% jump in deal value from the $27.6 billion recorded in Q1 2024. Deal volumes have improved as well to reach 225 deals compared to 172 during the same period last year, with the UAE alone recording 63 deals during the first quarter. This noticeable increase reflects stronger corporate balance sheets, improved liquidity conditions and growing investor confidence in regional economies.

Furthermore, national economic diversification strategies, particularly in Saudi Arabia and the UAE, have moved from policy announcements into active execution phases, encouraging businesses to pursue inorganic growth. Additionally, many family-owned businesses are now more open to exploring strategic partnerships or full exits, creating new deal opportunities. Collectively, these factors have fostered a more dynamic M&A environment.

Singhi, Global Head of Diversified Industries & Oil, Gas and Chemicals, M&A Advisory, Standard Chartered

Which commercial sectors are currently and projected to experience the most M&A action in our region?

Energy and infrastructure continue to be a major driver of M&A in the region, underpinned by strong strategic interest in renewables, clean technologies and sustainable power infrastructure. Recent deals such as Masdar’s acquisition of Greece’s Terna Energy illustrate this momentum, demonstrating the region’s increasing appetite for international renewable assets to achieve energy transition objectives.

Petrochemicals, which is closely linked to the region’s energy sector, have also experienced significant consolidation as firms pursue scale and efficiency. Standard Chartered has been active in this space, having advised on Aramco’s recent acquisition of Unioil Petroleum in the Philippines, a deal that illustrates the ongoing integration of upstream and midstream assets across regional and international energy value chains. The merger between Borouge and Borealis, which marked the largest transaction in UAE history, as well as ADNOC’s reported interest in acquiring a stake in Santos, one of Australia’s largest independent gas producers, further exemplifies this strategic trend as companies focus on enhancing competitiveness and operational strength.

Standard Chartered has played a leading role in these sectors, ranking among the top three M&A advisors across Asia, Africa and MENA since the start of 2021, with more than 35 transactions and USD 60 billion in deal value. The bank has been involved in several landmark deals, including Adnoc and Aramco pipeline transactions, DP World’s monetisation deals with CDPQ and Hassana and most of the District Cooling transactions over the past five years, including the recently announced sale of Multiply Group’s district cooling business.

Beyond energy and petrochemicals, sectors such as healthcare and logistics are also witnessing growth in M&A activity. Both are benefiting from strong demographic trends and national diversification agendas. Logistics, in particular, is gaining attention as companies prioritise supply-chain resilience and regional connectivity, making the sector increasingly attractive for acquisition in light of efforts to enhance intra-regional trade flows.

Rajesh

Digital infrastructure, including data centres and fintech platforms, is another fast-growing area. Accelerated digital transformation programmes across the Middle East are driving demand for critical digital assets. For examples, Group 42’s acquisition of an additional stake in Khazna Data Centres signals the importance regional investors place on infrastructure that supports long term innovation and competitiveness. These deals reflect a clear understanding that digitalisation is central to economic resilience and global economy relevance.

Taken together, these sectoral trends underscore the region’s evolving economic priorities and the central role that M&A is playing in shaping a more diversified, resilient and sustainable future.

How well skilled up are the region’s financial institutions to manage growth in the regional M&As?

Financial institutions in the Middle East have significantly strengthened their capabilities in recent years. Regional banks and advisers now play active roles throughout the transaction process, including deal origination, strategic advisory and execution. However, complex, cross-border deals often require institutions with broader global expertise.

At Standard Chartered, we precisely offer this combination. Our local expertise and global Network allow us to support transactions involving multiple jurisdictions and diverse regulatory environments. Our deep sector knowledge, coupled with strong crossborder connectivity, is highly valued by clients pursuing ambitious expansion or market-entry strategies.

While regional capabilities have improved substantially, there remains a clear role for institutions that can bridge regional opportunities with global capital pools and international expertise. Standard Chartered continues to position itself strongly in this regard.

How are regional regulatory environments changing or affecting the conduct of deals in the region?

Recent regulatory reforms across several Middle Eastern markets have played a positive role in facilitating M&A activity. Governments have actively worked to simplify legal processes, improve transparency and reduce barriers to foreign ownership. This has created a more predictable and attractive investment environment, particularly in the UAE and Saudi Arabia, where reforms have significantly accelerated approval timelines.

Efforts to align regional regulatory standards with international norms have also attracted a wider pool of global investors. Regulators have been proactively raising the bar through improved corporate governance and transparency requirements as well as ESG reporting frameworks.

However, it is worth noting that differences still exist between different markets, and understanding local regulatory expectations continues to be critical. Institutions with a robust regional presence, such as Standard Chartered, provide essential guidance and insight, helping clients navigate complexities smoothly and efficiently.

Have the uncertainties of on/ off tariff declarations had any noticeable effects on regional M&A activity?

Tariff and trade policy uncertainties have certainly affected dealmaking considerations, particularly for companies with significant cross-border operations. While such factors have not substantially reduced regional appetite for M&A, they have influenced diligence processes and timing decisions.

Companies are increasingly factoring trade risks into their strategic thinking and using transactions to strengthen resilience in their supply chains or secure new market access. Standard Chartered’s extensive global network is particularly

valuable here. By leveraging our presence across Asia, Africa, Europe and the Middle East, we assist clients in identifying and securing cross-border opportunities that help mitigate potential tariff-related risks.

Given that the significant majority of recent regional M&A activity involves cross-border counterparts, the ability to navigate international trade complexities effectively remains an essential strength for deal execution.

Is M&A deal making and execution being revolutionised by technology and AI in the same way other parts of the banking and capital markets are?

Technology is increasingly playing a more significant role in the M&A landscape, although the shift has been gradual compared to other banking areas. Data analytics tools are making it easier and quicker to identify potential targets, assess market trends and evaluate transaction risks. In the meantime, artificial intelligence is beginning to streamline certain elements of due diligence, such as contract reviews, risk assessments and ESG evaluations. Additionally, the adoption of virtual data rooms and digital platforms has become standard practice, facilitating smoother cross-border collaboration and faster deal execution. However, the human element remains central to successful dealmaking. Trust, relationships, experience and strategic alignment still heavily influence transactions, particularly in the Middle East.

At Standard Chartered, we continuously invest in digital tools to enhance efficiency, improve client service and manage transactions more effectively. This includes our recent rollout of SC GPT, a Generative AI (GenAI) tool, across 41 markets worldwide. Nevertheless, technology remains a complement to our advisory expertise rather than a replacement. Clients continue to value the combination of informed human judgement and advanced digital capabilities, ensuring that we remain aligned with their strategic objectives.

Generational Change

The GCC has emerged as a key centre for global wealth management and family office services as it undergoes epochal change, essential to how family prosperity and their businesses manage wealth and prepare for following generations to maintain legacies

Majid Al Futtaim, the Dubaibased conglomerate behind the Mall of the Emirates and Carrefour’s regional operations, said earlier in June that recent changes at its parent company will not impact the retail giant’s operations or governance.

The restructuring, which includes the appointment of five government representatives alongside four family members to the parent company’s board, aligns with broader efforts across the GCC region to guide major family-run businesses through generational transitions.

Family businesses play a crucial role in the economies of GCC countries. These enterprising families understand the importance of succession planning and wealth transfer.

“The multi-generational entrepreneurship capability of family businesses has become well recognised as a source of significant competitive advantage. Sustaining it is key to their continued strong performance,” said KPMG.

With over $1 trillion in family wealth subject to transition between generations in the Middle East by the end of the decade, according to Lombard Odier, it

is essential to ensure the protection and growth of this wealth.

The GCC is witnessing a swift shift in wealth management, driven by rising focus on succession planning, alternative assets, digital platforms and sustainable investing – all aimed at preserving and growing family wealth across generations.

Meanwhile, family offices are increasingly drawn to the GCC region as global wealth shifts, with the UAE solidifying its position as the world’s most desired wealth haven. The Henley Private Wealth Migration Report projects that 9,800 High-Net-Worth Individuals (HNWIs) are expected to gain residency in the UAE in 2025, while Saudi Arabia is identified as the fastest-growing destination for HNWIs. Family offices in the GCC region are pivotal to economic expansion and a primary catalyst for diversification. Many family-owned enterprises in the region are transforming into multinational conglomerates with extensive and varied portfolios, thereby significantly contributing to the economic landscape.

Fostering growth

Family offices and family-owned enterprises in the GCC region are no longer content with operating in the shadows of sovereign wealth funds or traditional corporate giants. “A feature of MENA economies is the significance of family businesses, which are an integral part of the social and economic landscape, contributing on average 60% of regional GDP,” said HSBC.

Over the years, many familyowned firms in the Gulf region have grown into sprawling conglomerates, prompting patriarchs to rethink how they manage wealth and succession. One consequence has been the rise of single-family offices – entities designed to handle investment portfolios, governance structures and

intergenerational planning, distinct from the businesses that generated the wealth in the first place.

For others, liquidity events – such as strategic exits or divestments –have catalysed a shift from active entrepreneurship to capital stewardship. These families are no longer just business operators; they are increasingly becoming professional investors, using family offices as a vehicle to navigate global markets and institutionalise decision-making.

The growth and maturity of family offices has emerged as a key feature of the Middle East’s burgeoning wealth management sector. The GCC now boasts a significant population of UHNWIs and affluent families. Data from Boston Consulting Group indicates that, as of 2022, roughly 27% of the region’s total wealth was concentrated in the hands of individuals with a net worth exceeding $100 million.

The segment is projected to maintain its outsized influence on the region’s wealth composition through to 2027, underscoring the central role of private capital in shaping the Gulf’s financial landscape.

Meanwhile, family offices in the Gulf region have diversified their strategic portfolios with investments in technology, renewable energy, healthcare and infrastructure, as well as investments abroad and in private equity.

Family offices in the Middle East maintain a notable preference for real estate, allocating 14% of their portfolios to the sector, compared with a global average of 10%, according to the UBS Global Family Office Report 2025.

However, the investors’ elevated real estate exposure should not be interpreted as an indicator of a conservative investment posture. On the contrary, Middle Eastern family offices are simultaneously demonstrating a robust engagement with private equity, with an allocation of 25%, pointing to a growing appetite for less liquid, higher-risk assets.

The sustained tilt towards real estate likely reflects deepening confidence in the region’s property markets.

THE MULTI-GENERATIONAL ENTREPRENEURSHIP CAPABILITY OF FAMILY BUSINESSES HAS BECOME WELL RECOGNISED AS A SOURCE OF SIGNIFICANT COMPETITIVE ADVANTAGE. SUSTAINING IT IS KEY TO THEIR CONTINUED STRONG PERFORMANCE

– KPMG

The UAE continues to experience a broad-based property surge, buoyed by a steady influx of residents, high-net-worth individuals and new businesses setting up shop in Dubai and Abu Dhabi.

Similarly, Saudi Arabia’s ambitious economic diversification strategy under Vision 2030 is reshaping the investment landscape, with real estate playing a central role in the kingdom’s push to diversify the economy and develop new urban centres.

For family offices in the GCC region, real estate remains more than a store of value – it is a strategic bet on the region’s longterm economic transformation. Paired with rising allocations to private equity, the data paints a picture of increasingly sophisticated investors positioning themselves at the intersection of regional growth and global capital markets.

“The shape of the MENA family office balance sheet may be reflective of the fact that two-thirds own a family business. This is a higher percentage than in North America and Europe, where proportionately more families have transitioned from entrepreneurial business owners to financial market investors,” said HSBC.

The GCC’s family offices and enterprises are no longer just custodians of inherited wealth; they are increasingly active participants in shaping the region’s economic future. These entities’ strategic investments, commitment to long-term value creation and growing sophistication position them as critical anchors in the Gulf region’s journey towards a more diversified and globally integrated economy.

The great wealth shift

Family businesses in the GCC wield substantial economic influence, accounting for more than 75% of the workforce in the private sector. For governments in the region and beyond, enterprising families are vital to meeting ambitious goals for private sector growth.

“Family is the cornerstone of traditional Middle Eastern culture, while family-run businesses are the lifeblood of the economy in the region,” Arnaud Leclercq, Partner Holding Privé and Head of New Markets at Lombard Odier, said in a report.

Family offices are rapidly emerging as a significant segment of the region’s wealth management industry. However, as these businesses transition through generations, sustaining growth, harmony and direction becomes increasingly complex due to dilution.

PwC said that continuity and succession planning are critical to achieving sustainable growth and it includes defining when family members can work in the business, how profits are distributed, who serves on the board and how to plan for next generation leadership.

Succession battles are a recurring challenge in the GCC, where family-run businesses form the backbone of the private sector.

The complexities are often heightened by the sheer size of many Gulf families, some with numerous branches spread across different countries, and the uneven levels of engagement family members have in the business.

These dynamics make effective succession planning both critical and complicated.

“Hierarchy and patriarchal norms often persist in many family-owned businesses, which can contribute to a lack of transparency between family members and lead to difficult behaviours, such as an elder’s reluctance to cede control even if they lack the experience needed to run a business,” according to DBS.

Nurturing the next generation of leaders in a family business is, unsurprisingly, a delicate mix of good corporate practice and good parenting. Governments in the GCC are implementing tailored initiatives to mitigate risks in generational transitions and enhance growth prospects.

The Abu Dhabi Chamber launched the Abu Dhabi Family Businesses Council in December 2024, a strategic initiative designed to strengthen its support for private sector companies and enterprises.

The Council serves as the leading platform for family businesses in Abu Dhabi, dedicated to promoting their sustainability, growth and long-term prosperity, while ensuring their continuity across generations.

The Dubai Chamber established a family business centre in 2023 to offer technical and administrative support, ensuring smooth generational succession. The Dubai Centre for Family Businesses aims to facilitate effective succession planning and contribute to the growth and sustainability of family businesses in the emirate.

Last May, the centre partnered with the Dubai Department of Economy and Tourism to launch a new Dubai family business guidebook. The ‘Family Businesses in the Emirate of Dubai: A Guidebook’ is a comprehensive resource designed to outline ways to protect the wealth of family businesses in the emirate and ensure their sustainability, while supporting business growth, both now and in the future.

Meanwhile, Saudi Arabia’s National Centre for Family Business offers a set of tools to motivate family enterprises to adopt best practices. It works with

A FEATURE OF MENA ECONOMIES IS THE SIGNIFICANCE OF FAMILY BUSINESSES, WHICH ARE AN INTEGRAL PART OF THE SOCIAL AND ECONOMIC LANDSCAPE, CONTRIBUTING ON AVERAGE 60% OF REGIONAL GDP

family businesses, the government, advisors, consultants and the general community to create an ecosystem that supports the continuity and growth of family businesses.

Supporting the future of family businesses has become a strategic priority for governments across the GCC, especially in the UAE and Saudi Arabia. By offering targeted support, these nations are not only mitigating the risks associated with intergenerational handovers but also seizing growth opportunities in various key industries to diversify the economy away from heavy reliance on oil.

The next frontier

Family offices in the GCC are transforming at breakneck speed as they adapt to the evolving priorities of the region’s wealthy families. The shift comes amid rising demand for impact investing, complex intergenerational wealth transfers and greater global diversification.

Once largely custodians of family wealth, many now resemble miniature investment banks, offering services far beyond traditional portfolio management. With the expectations of affluent families and HNWIs growing more complex, so too have been the operations that serve them.

To navigate the evolving operating landscape, family offices are increasingly turning to technology.

Once laggards in the adoption of technology, family offices are accelerating digitalisation, deploying AI, Big Data, robotics and other technologies to enhance clients’ experience and trust, which is central to wealth management.

KPMG said family offices are leveraging artificial intelligence (AI) to streamline operations, enhance investment decisions and manage risk with greater precision. The consultancy firm said AI has also emerged as a powerful driver of growth and productivity.

For every family office partner, building and strengthening client relationships is the most valued asset. With shifting demographics and the ongoing wealth transfer in the Gulf region, the next generation of HNWIs is no longer satisfied with traditional face-to-face meetings and bulky printed reports.

The younger clientele expects a more tech-savvy approach, with access to real-time information and seamless transactional capabilities. “Due to the complexity of their work, family offices must aggregate and analyse vast amounts of research, data and analytics to meet these evolving expectations,” according to EY.

The shifting global macroeconomic landscape is not only complicating portfolio performance but also upending conventional investment strategies. From recalibrating asset classes to reassessing operating models, family offices are undergoing a broad strategic rethink. Family offices in the Middle East are moving quickly to adapt. Many are using long-term vision as a strategic compass, reassessing portfolios, revamping investment strategies and building agile operating models. With enterprising families taking on a larger role in driving the GCC’s economic agenda, talent and adaptability are becoming key differentiators.

Growing Global

Nina Auchoybur Managing Director, UAE at Ocorian underlines the pivotal role of foundations and other key elements that combed make the UAE a globally important family wealth hub

Is the provision of family office and financial services for HNWIs keeping pace with the surge in family private wealth across the region?

Yes, it is clear the provision of family office and financial services in the region is actively and strategically positioning itself to keep pace with the booming surge in family private wealth. The sector is not just reacting; it is genuinely evolving to meet this unprecedented demand. Everyone in the industry can feel it: this region is undergoing a profound transformation, solidifying its standing as a premier global destination for High-Net-Worth Individuals (HNWIs). The remarkable increase in HNWI relocations throughout 2024 has already sent a powerful signal that this expansion is not just temporary, but a long-term trajectory.

In response to this influx, there has been a definitive and widespread movement in the private client space. Major players – from wealth management advisory firms, fund managers to esteemed private banks, leading law firms and corporate service providers – are all meticulously re-evaluating and enhancing their private client service offerings in the region. This is not merely an adjustment; it is a strategic revamp designed to cater to the unique and sophisticated needs of the region’s affluent families. Crucially, regulators are not just observing this growth; they are actively

Nina

Auchoybur, Managing Director, UAE, Ocorian

facilitating and encouraging it. The DIFC (Dubai International Financial Centre), for instance, continues to shine as a clear leader in driving forward-thinking change. Its initiatives, such as the Family Private Register and the launch of a cuttingedge funds centre, are prime examples. Furthermore, the accommodating tax framework, including family foundation tax transparency treatment, has undeniably smoothed the path for families choosing to make this region their new home for wealth management.

In essence, the collective efforts of agile service providers and forwardthinking regulators demonstrate a clear and genuine commitment to addressing the current needs of this dynamic market while proactively anticipating its future demands. The infrastructure is not only

robust but continuously adapting to support the region’s ascent as a global private wealth hub.

Is the growing promotion and understanding of the importance of succession planning starting to make an impact with HNW families across our region?

Yes, the increasing promotion and understanding of the importance of succession planning is making a significant impact with HNW families across our region. We are observing a tangible shift in how families approach long-term wealth and legacy.

At Ocorian, we have seen a clear uptick in the number of foundations being established, and more notably, a change in the profile of clients requesting these structures. What is truly indicative of this growing understanding is the move towards more bespoke structures encompassing multiple asset classes and reflecting families’ diverse interests and motives. This is not just about simple wealth transfer anymore; families are thinking holistically. Interestingly, these structures are not limited to local assets like real estate or UAE businesses. We are increasingly seeing foundations holding diverse portfolios of family assets, including international properties, digital assets, luxury items and companies incorporated in other jurisdictions.

This trend powerfully demonstrates a much better understanding of the UAE succession planning regime and its multifaceted benefits. It also signals a growing confidence in the robustness and reliability of this framework as a tool for intergenerational wealth transfer and preservation. Crucially, a significant number of HNW families are now actively realising it is imperative to re-evaluate their existing succession plans. They are focused on implementing strategies that ensure not only the seamless transition of wealth but also the enduring legacy and continuity of their businesses. This proactive approach underscores a deeper appreciation for

the long-term security and stability that robust succession planning provides.

Which product, regulatory or technological developments in recent years do you feel have made the most significant changes to succession planning in our region?

Without a doubt, the UAE foundation regime has been genuinely life-changing for wealth structuring in the region. For decades, families relied heavily on offshore structures in common law jurisdictions like the Channel Islands to manage their international assets. However, a significant gap existed for structuring their local assets. While a trust option was technically available, its common law nature made it difficult to integrate seamlessly within civil law jurisdictions like the UAE. Furthermore, many families were simply not comfortable with the concept of a third party holding legal ownership of their cherished assets. The UAE foundation, with its distinct legal personality and civil law roots, has elegantly filled this void. It offers a familiar yet robust framework that resonates deeply with regional families. We are now seeing a notable shift not just in the volume of foundations being established, but also in the increasing complexity of these structures. Families are confidently placing not only local assets like real estate and UAE businesses under these foundations, but also their entire global portfolios, including international properties and companies incorporated in diverse jurisdictions.

Complementing the foundation regime, the new UAE Family Law (Federal Decree-Law No. 41 of 2022 on Personal Status for Non-Muslims) has further revolutionised succession planning, particularly for expatriate HNW families. Previously, default inheritance rules could be a significant concern, often leading to uncertainty and potential complications for non-Muslims. This new law introduces clear provisions for non-Muslims to elect their home country’s laws for inheritance

or to explicitly stipulate their wishes through wills registered in the UAE or through structures like foundations.

The recent introduction of Corporate Tax Law (Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses) has also had a profound, albeit indirect, impact on succession planning for family businesses. While seemingly a tax regulation, it has prompted family enterprises to critically re-evaluate their corporate structures, governance and asset holding vehicles to ensure tax efficiency and compliance. For many family businesses, the new tax regime has highlighted the benefits of utilising entities like foundations (especially those that can opt for taxtransparent treatment such as family foundations) as part of their broader succession strategy.

In summary, the combined impact of the UAE foundation regime, the progressive new Family Law, and the strategic implications of the Corporate Tax Law has fundamentally reshaped succession planning in our region.

As emerging family leaders balance long held tradition with innovation, how can family officers navigate change through such sensitive issues and steer clear of conflict?

This can be achieved in a number of ways. I believe education plays a vital role; the training and education of the next generation leaders is key. This can be in the form of mentorship, shadowing or education programs.

Closely working with family members, understanding the dynamics of the families, the sensitivities and putting the right framework in place in terms of bylaws and the family constitution.

Making sure that all the parties are aware of the role they play in the structure and of their respective responsibilities.

Embrace innovation strategically. Positioning innovation as an evolution of family traditions rather than a departure

1 Country Wealth Flows | Wealth Migration 2025 | Henley & Partners

from it is important. Encouraging family members to experiment and adopt a phased approach is one of the tools that can be used to promote acceptance.

Most importantly, use professionals, people with expertise, to assist throughout the process of establishing the right structure for the HNW family.

How are concerns for current ongoing geopolitical stresses and uncertainty factoring in families’ investments and capital allocations?

Geopolitical uncertainties are profoundly impacting HNW families’ investment and capital allocation, leading to a “flight to stability.” This is demonstrated by a significant relocation of millionaires to stable regions like the UAE (projected 9,800 in 2025) 1 . Families are also prioritising asset segregation using diverse holding vehicles, increasing investment diversification.

How do you foresee that the “Great Wealth Transfer” over the coming years will influence succession planning and family offices across our region?

The “Great Wealth Transfer” will fundamentally reshape succession planning and family offices in our region, pushing for heightened sophistication and digital integration. We foresee a surge in demand for more sophisticated, often technologically driven solutions within family offices. This will lead to a growing number of both SingleFamily Offices (SFOs) and Multi-Family Offices (MFOs), driven by the increasing complexity of inherited wealth and the diverse needs of the next generation. Crucially, corporate and private client service providers will evolve to offer comprehensive, integrated solutions under one roof. This “one-stop-shop” approach is vital for providing families, especially UHNWIs, with the heightened levels of privacy and confidentiality essential for navigating complex wealth transitions and ensuring seamless legacy transfer.

Taking the Lead

Tackling questions about regional Family Office & Succession Planning, Yan Mrazek Founder, M/HQ describes how the region has moved from being a follower to a global leader in these important areas

Is the provision of family office and financial services for HNWIs keeping pace with the surge in family private wealth across the region?

More than the region itself - the globe! The surge in private wealth across the Middle East has undeniably triggered a parallel demand for sophisticated family offices and financial services. Encouragingly, the region, particularly the UAE, has responded with notable agility, developing an increasingly mature ecosystem of regulatory tools, infrastructure and advisory services to support high-net-worth individuals (HNWIs) and entrepreneurial families.

We are now seeing a growing number of tailored solutions being deployed, including local foundations, family offices (both exempt and regulated) and bespoke holding structures that reflect international best practice while catering to regional specificities.

The UAE is now one of the fastestgrowing global wealth booking centres. It is on track to surpass long-established offshore jurisdictions such as the Channel Islands and Isle of Man, both in assets under management and relevance. At the same time, Saudi Arabia and Qatar are building robust financial ecosystems of their own, supporting the region’s emergence as a long-term wealth destination.

Of course, the challenge lies in sustaining this momentum. But the financial industry’s seem to have a consensus, ranking Dubai as the

“no.1” Global financial centre to rise in profile over the next 12 months.

The complexity of wealth structures is increasing too, and families expect the ecosystem to remain dynamic, globally competitive and responsive to their evolving needs. The next phase of growth must now be about depth as much as breadth, moving from basic set-ups to truly institutionalised platforms for multigenerational wealth.

Is the growing promotion and understanding of the importance of succession planning starting to make an impact with HNW families across our region?

Absolutely, and the change is significant. Across the Gulf and beyond, we are

witnessing a cultural shift in how families approach business continuity and succession. While legacy planning has historically been a sensitive topic, there is now growing recognition that the cost of inaction is simply too high.

Families in the region, many of them next-generation leaders, are increasingly aware that sustainable transition requires early planning, inclusive dialogue and clear governance. Discussions once considered taboo are now being approached through the lens of business continuity or leadership readiness, which helps create more practical and less emotionally charged entry points.

We have found that reframing succession around operational resilience, such as asking what happens if a principal becomes incapacitated, often helps families ease into more structured legacy planning.

As local legal ecosystems mature, families are also becoming more comfortable with formalised solutions. The growing use of structures such as foundations, family constitutions and advisory boards reflects a region-wide push towards institutionalising succession. The UAE’s local tools are the most wellknown, and demand for similar solutions is spreading to Saudi Arabia, Bahrain, Oman and other neighbouring jurisdictions.

Which product, regulatory or technological developments in recent years do you feel have made the most significant changes to succession planning in our region?

Without a doubt, the introduction of local foundation regimes in the Abu Dhabi Global Market (ADGM), the Dubai International Financial Centre (DIFC) and Ras Al Khamiah International Corporate centre (RAK ICC) has had a transformative effect on succession planning in the region. These structures offer a highly effective, locally based solution for asset protection, intergenerational wealth transfer and family governance, grounded in robust common law principles.

Yan Mrazek, Founder, M/HQ

Crucially, these foundations provide clear legal separation between personal and family assets, shielding wealth from external risks such as probate, forced heirship and creditor claims. They have enabled families to localise their legacy planning, rather than relying on offshore jurisdictions that may be less accessible or culturally aligned.

In fact, foundation regimes in the UAE have seen faster adoption rates and deeper year-on-year growth than in any international jurisdiction, reflecting their practical value and alignment with regional needs.

From a regulatory perspective, the UAE has positioned itself as a global leader by continuously evolving its framework to attract and retain family capital. This is complemented by the adoption of technology that enables real-time reporting, better transparency and more informed decision-making, particularly for globalised families with complex asset holdings.

As emerging family leaders balance long held tradition with innovation, how can family officers navigate their charges through such sensitive issues and steer clear of conflict?

The interplay between heritage and progress is a defining theme for Middle Eastern families today. Family officers are uniquely placed to help bridge this divide, provided they act not just as financial managers but also as cultural translators, strategic advisers and facilitators of generational dialogue.

Conflict most often arises not from disagreement over vision but from a lack of structure or transparency. We have found that establishing clear governance protocols such as family charters, investment committees or generational councils helps create environments where tradition and innovation can coexist.

Importantly, the next generation in the region is not seeking to reject the past. Instead, they are asking how legacy can be reimagined in a changing world.

THE INTERPLAY BETWEEN HERITAGE AND PROGRESS IS A DEFINING THEME

FOR MIDDLE EASTERN FAMILIES TODAY

Across the GCC, North Africa and the Levant, we are seeing younger family members bring global perspectives, sustainability goals and a desire for impact investing into the family wealth conversation. The most effective family officers are those who can support this evolution without eroding family cohesion.

How are concerns for current ongoing geopolitical stresses and uncertainty factoring in families’ investments and capital allocations?

Geopolitical volatility, whether in Europe, Asia or the Middle East itself, has had a profound impact on how regional families allocate their wealth. Families are placing increased importance on diversification, control and jurisdictional safety.

As traditional offshore centres face reputational and regulatory pressures, the UAE in particular has gained ground as a trusted hub for wealth booking. With migration to Dubai having increased four-fold in the last two years, over 9,800 HNWIs expected to relocate to the UAE in 2025 alone, and strong growth projected in Saudi Arabia and Qatar, the region is no longer simply a place of wealth creation. It is cementing its position on top of global safe harbours for wealth preservation. This is particularly true for families from neighbouring markets such as Turkey or South Asia, where wealth is increasingly being restructured through the UAE or wider GCC for long-term asset protection. Families are also recalibrating their portfolios. In addition to shifting capital towards more defensive sectors such as real estate, infrastructure and healthcare, there is renewed interest in structures that protect against succession disputes, litigation or forced

heirship. In this regard, local foundation tools have proven invaluable.

How do you foresee that the “Great Wealth Transfer” over the coming years will influence succession planning and family offices across our region?

The impact of the “Great Wealth Transfer” in the Middle East will be both transformative and immediate. With nearly USD 1 trillion expected to pass from one generation to the next over the coming decade, families are realising that planning can no longer be delayed.

This transition is prompting a more professional approach to family wealth. We are seeing a sharp uptick in the creation of dedicated family offices, the formalisation of investment mandates and the introduction of structures that support long-term governance and leadership succession.

What sets the region apart is the speed and scale of this change. Unlike more mature markets, many families here are still led by their wealth-creating founders, so the decisions made today will define not only their financial future but their legacy. The next generation is stepping into these roles with fresh ideas, global vision and a desire to make a broader impact.

This generational transition is further supported by the region’s pro-business and forward-thinking regulatory reforms, which ensure that the structures available evolve in tandem with families’ aspirations. With the Middle East now emerging as a top destination for global wealth on both the management and structuring fronts, the region is no longer a follower in the succession planning space. It has become a worldwide leader.

Wealth in Motion

Hassen Jaufeerally Regional Coverage Lead –EAM & FI, The Mauritius Commercial Bank Limited (DIFC Branch) addresses the key questions of the times for regional wealth planning and transfer

Is the growing promotion and understanding of the importance of succession planning starting to make an impact with HNW families across the Middle East and Africa?

Wealth planning is now in full motion. Through our DIFC Advisory Office, we regularly receive enquiries from advisers and service providers eager to establish family structures and in search of a banking partner capable of servicing those needs. At MCB, we draw on the strengths of the Mauritius International Financial Centre (MIFC) and combine them with our deep knowledge of select African jurisdictions and long-standing partnerships with entrepreneurial and high-net-worth families.

Our support spans every phase of the family-wealth journey: creation, growth, preservation and transfer. We assist with business expansion strategies, whether organic or through acquisitions, and deliver M&A and corporate-finance advisory when families restructure their shareholding or pursue a liquidity event such as a sale or IPO. We also help design significant wealth structures, from trusts and foundations to dedicated family offices, leveraging our

network of tax experts, trustees and other service partners.

On the investment side, our wealthmanagement solutions are tailored to meet long-term objectives, ensuring family capital is preserved and passed on to the next generation. Our DIFC Advisory Office enhances this proposition by servicing structures in established jurisdictions and offering custody of financial assets in Mauritius. Given its legal framework, stability and global reach, Mauritius remains an attractive booking centre and a compelling diversification alternative to traditional hubs in Europe and Asia.

As emerging family leaders balance long-held tradition with innovation, how can family officers navigate their charges through such sensitive issues and steer clear of conflict?

Balancing heritage with progress is one of the key responsibilities of a family officer. Many senior family members have built businesses in traditional industries and feel a strong emotional connection to what they have created. They often take a cautious approach, shaped by stewardship and stability.

Next-generation leaders bring different perspectives. Many have studied internationally, are technology-literate and want to explore sectors like digital assets, artificial

Hassen Jaufeerally, Regional Coverage Lead – EAM & FI, The Mauritius Commercial Bank Limited (DIFC Branch)

intelligence and blockchain. Some are also looking to leave their own mark.

This generational divergence can lead to friction, and family officers play a critical role in guiding dialogue. More than administrators, they foster intergenerational understanding, uphold governance principles and ensure that decision-making reflects shared values.

Every family has its own dynamic. Some are naturally aligned. Others face divides shaped by location, generational experiences or cultural perspectives. Clear governance plays a critical role in such contexts. Defined roles, structured responsibilities and agreed-upon processes help avoid ambiguity and support mutual understanding.

Effective frameworks for risk and governance allow families to embrace innovation without losing sight of what has sustained them. These structures do not need to be overly complex. They provide a stable foundation for clarity and growth, helping families manage complexity with consistency. The family officer is often seen as the steady presence who ensures that values of the past are honoured, even as new directions are explored.

How are concerns for current ongoing geopolitical stresses and uncertainty factoring in families’ investments and capital allocations?

Uncertainty has always been a part of wealth management, but its patterns keep shifting. Geopolitical tensions, market volatility and changes in global trade are prompting families to re-examine how and where they allocate capital. The emphasis is increasingly on resilience, supported by broader diversification strategies.

Tangible assets are seeing renewed interest. Real estate, gold and commodities are seen as long-term value stores. Families are also looking more closely at private markets. Agricultural land, infrastructure and private equity appeal to those who are focused on multigenerational capital growth.

Jurisdictional diversification is another priority. Wealth is being distributed across multiple regions. Dubai and the broader UAE region are attracting significant attention from families in Europe and Asia, including China. The DIFC offers legal clarity, fiscal reliability and access to global financial services, positioning it as a peer to established centres such as Singapore and Switzerland.

Mauritius is also firmly in view. Its legal framework, based on English common law, is well regarded. The country’s regulatory efficiency and geographic proximity to Africa and Asia make it a practical choice for booking and managing assets internationally.

unstructured, particularly among second- and third-generation entrepreneurial families. Cultural factors, large family networks and complex inheritance considerations can make planning more difficult and delay necessary conversations.

Encouragingly, support systems are evolving. Advisers and service providers are now physically closer to the families they support. This makes for more regular engagement and fosters trust. Legal infrastructure has also matured. Centres like DIFC and ADGM offer strong rule-oflaw systems, dedicated courts and tested mechanisms for building investment vehicles, foundations and trusts.

UNCERTAINTY HAS ALWAYS BEEN A PART OF WEALTH MANAGEMENT, BUT ITS PATTERNS KEEP SHIFTING

At MCB, we focus on preparation rather than prediction. We work with families to develop flexible capital strategies that account for macroeconomic trends, policy shifts and technological developments. This allows us to tailor portfolios that align with long-term goals while remaining agile in the face of change.

How do you foresee that the “Great Wealth Transfer” over the coming years will influence succession planning and family offices across our region?

The scale of generational wealth transfer in the region is unprecedented. By 2030, nearly US$1 trillion is expected to pass between generations in the MENA region alone. Many of the region’s largest families have already acted. They have formalised their structures, created succession plans and worked to secure continuity through appropriate legal and financial frameworks.

Other families are still preparing. In many cases, succession remains

A broader shift is also underway. Families are beginning to separate ownership from management. Private investment offices are growing, and external professionals are increasingly involved in day-to-day operations. Many families are exploring IPOs or restructuring ownership to reinforce longterm continuity.

Technology is supporting this evolution. Digital tools like smart contracts, AI-driven compliance and blockchain systems are already being adopted to make succession planning more transparent and secure. These solutions are no longer hypothetical. They are becoming practical tools for managing generational change. Digital systems are useful, but they are not the full answer. Financial education, clear governance and open communication remain central. When these elements work together, the family office becomes more than an administrative function. It becomes the foundation for continuity, resilience and long-term vision.

A Grand Vision

Christoph Koster, CEO of ruya

With a determined drive to succeed through integrity, transparency and positive community engagement, Christoph Koster CEO of ruya, the UAE’s first truly digital Islamic bank, talks with MEA Finance about how their core principles position the bank for a competitive and successful future

Please tell us about ruya, highlighting your top three USPs.

Thank you for the question. ruya is the UAE’s digital Islamic community bank, launched in 2024 and headquartered in Ajman. Our name “ruya” means “vision” in Arabic, which reflects our forward-looking approach

to finance. We set out to blend cuttingedge technology with the principles of Islamic finance to empower individuals, entrepreneurs and communities with an ethical, user-friendly banking experience. I would like to highlight three main USPs that make ruya stand out: digital-first convenience, Shari’ah-compliant ethical banking and community-centric service.

First, being digital-first means we offer an incredibly convenient banking experience through our mobile app and online platform. Customers can open accounts in minutes using their UAE Pass and they have 24/7 access to services without ever needing to visit a branch. Everything from daily transactions to major financial decisions can be handled on the go, securely and instantly. Essentially, we put a “bank in your pocket,” so you can focus on your life or business rather than paperwork.

Second, our Shari’ah-compliant, ethical banking approach sets us apart. We strictly follow Islamic banking principles –so no interest-based lending, no investing in harmful industries and a strong emphasis on fairness and transparency. In practice, this means our products have no hidden fees or surprise conditions. For example, our savings accounts share profits with customers instead of charging or paying interest and all our

financing deals are backed by real assets and involve risk-sharing. Both Muslim and non-Muslim customers appreciate this ethical stance because it translates to honest, fair banking; you know your money is being handled responsibly and in line with values of trust and justice.

Third, we pride ourselves on a community-centric service ethos. ruya is more than just an app – we are building a supportive community around our bank. We engage in financial education workshops and mentorship programs for young entrepreneurs and we partner with local organisations to uplift small businesses. We even have a community hub (instead of a traditional branch) where people can come for advice, attend financial literacy events or simply have a conversation with our team. By being deeply involved at the community level, we understand our customers’ needs better and can tailor our services accordingly. It creates a sense of partnership – when our customers and communities prosper, we prosper along with them.

Combining these three elements – modern digital convenience, ethical financial practices and genuine community engagement – really defines ruya. We like to think of ourselves not just as a bank, but as a financial partner that innovates with technology, operates with integrity and truly cares about the people we serve.

Why is now the right time for a digital-first Islamic bank?

A few converging trends make this exactly the right time for a digital-first Islamic bank like ruya. Customer expectations have shifted dramatically. People are now very comfortable doing everything on their smartphones – including banking – and they want services on-demand. At the same time, more consumers (especially younger ones) care about how and where their money is managed. They are looking for transparency, fairness and social impact from their financial providers. In short, customers today want convenience and ethics.

Islamic banking naturally aligns with those ethical values, so combining it with a modern digital platform is a timely answer to what people are seeking.

There is also a perfect support system in place now that was not there a decade ago. The UAE’s regulators and government have actively encouraged digital innovation in banking. We have seen the introduction of digital banking licenses and infrastructure like the UAE Pass digital ID platform, which make it much easier to launch and run a digital bank. Technology itself has matured to support secure, seamless digital banking – from widespread smartphone use to advances in cybersecurity and fintech. So, the ecosystem (both regulatory and technological) is primed for a fully digital bank to thrive without compromising on security or compliance.

On the industry side, the Islamic finance sector is booming and the UAE is a global hub for it. Yet before ruya, there was no truly digital Islamic bank catering to the modern, tech-savvy customer. We saw this gap in the market: people who wanted Shari’ah-compliant banking but also expected the slick user experience of a digital bank had no single option that delivered both. We felt it was the perfect moment to bring these two worlds together – fintech and Islamic finance – to serve that unmet need. The rising interest in ethical finance (“ethical consumerism”) means even customers who used to bank conventionally are open to switching if they find an Islamic bank that meets their expectations for usability and service. So, why now? Because the demand is here and the environment is ready. Customers are embracing digital life and craving ethical choices; the infrastructure and regulations are in place to support innovative banks and the market is eager for new solutions. We are essentially meeting the moment. The early response to ruya has reinforced this – people have been very quick to come on board, which tells us that launching a digital Islamic bank at this time was not only right in theory, but it has also been right in practice as well.

What are the stand-out advantages that Islamic banking offers business customers over conventional banking?

Islamic banking offers some unique benefits to business clients that conventional banking does not always provide. One major advantage is the principle of partnership and risk-sharing. In Islamic finance, the relationship between the bank and the business is often set up so that both share in the outcomes. For example, instead of a typical loan with compounding interest, we might finance a business project on a profit-sharing basis. That means we have a vested interest in the business’s success and if the business faces a downturn, it is not buried under mounting interest payments. This creates a more collaborative, supportive relationship. Many entrepreneurs find comfort in knowing their bank is a partner that succeeds when they succeed, rather than a lender that profits regardless of their situation.

Another stand-out advantage is transparency and fairness in costs and terms. Islamic banking principles forbid hidden charges and excessive uncertainty, so we strive to keep things straightforward. At ruya, for instance, our business accounts have a flat monthly fee and no sneaky charges and any financing we provide is based on clear agreements. If we finance the purchase of equipment for a client using a cost-plus structure, the profit rate is agreed upon upfront. The business knows exactly what it will pay over the course of the financing, with no variable interest rate surprises. This predictability helps businesses manage their cash flow with confidence. In contrast, conventional banking might hit a business with fluctuating loan interest or fees buried in fine print. With Islamic banking, what you see is what you get – and that clarity is incredibly valuable for planning and peace of mind.

A third advantage is the ethical alignment inherent in Islamic banking. Business customers not only receive financial services, but they also know

their money is being used in responsible ways. Islamic banks will not finance industries that are harmful or prohibited (like gambling or weapons) and they avoid speculative practices that can create instability. For companies that prioritise corporate responsibility or have an ethical ethos, this is a big plus – it means your banking aligns with your values. Even from a brand perspective, a business can say it banks with an ethical, Shari’ah-compliant institution, which may appeal to clients and partners who value sustainability and ethics. In today’s world, having that kind of alignment and socially conscious image can be a competitive advantage for businesses.

In summary, Islamic banking gives businesses a more partner-like relationship, ensures clear and fair terms and provides the reassurance of an ethical framework. These differences can translate into real benefits: more support from your bank, fewer financial surprises and alignment with principles that can enhance your reputation. It is a model that many business owners find refreshingly in tune with their needs and values.

How would you define ruya’s role in supporting the SME, startup and business ecosystem in the UAE?

ruya’s role is to be an enabler and champion for SMEs and startups in the UAE. We understand that smaller businesses are the backbone of the economy and often the ones driving innovation, so we have made it our mission to support them on multiple fronts.

Firstly, we make banking easy and accessible for SMEs. Opening a business account with ruya is quick and fully digital – entrepreneurs can get set up online without the usual paperwork and long waits. We also removed traditional hurdles like high minimum balance requirements. There is a simple low monthly fee and no need to lock up a large chunk of capital just to keep the account. This means even a very small startup or a solo freelancer can use a full-featured business banking account without stress.

By removing those barriers, we let business owners put their energy into growing their company, not fighting banking red tape.

Secondly, ruya actively integrates into the startup ecosystem through partnerships and community involvement. We have not limited ourselves to just being a service provider; we are participating in the ecosystem as a stakeholder. For example, we partnered with Ajman Free Zone to smooth out banking for new companies setting up there – it is essentially a one-stop solution for business setup and a bank account. We are also the banking partner for DIFC Ignyte (the Dubai-based startup hub), which means we collaborate on mentorship programs, networking events and workshops for entrepreneurs. By being present in these communities –incubators, accelerators, co-working spaces – ruya is there at the early and critical stages of a business’s journey, offering guidance and support, not just a bank account. Furthermore, we tailor our products and services to grow with the business. As our SME clients grow, we intend to roll out financing options and other services so they will not outgrow what ruya can offer. And through all stages, we keep a personal touch that bigger banks often lose.

Being community-based, we get to know our business customers well and understand their stories and that human element is something they really value.

In short, ruya supports the SME and startup ecosystem by simplifying their banking, actively participating in their communities and evolving with their needs. We want to see these businesses succeed and we are doing what a bank should do: providing tools, knowledge and a helping hand to make that success a bit easier to reach. When I think of our impact, I hope it is not just that we provided a bank account quickly – but that we became a partner in each business’s growth story here in the UAE.

How does ruya balance its core values with the demands of operating a bank in such a competitive banking environment? Balancing our core values with competitive pressures comes down to a simple idea: we do not see them as opposed to each other. In fact, our values are a key part of our competitive strategy. Take integrity and transparency – those are core values for ruya. In practice, that means being very open about how we do business, keeping fees straightforward and ensuring every product truly aligns with Shari’ah principles.

This honesty builds trust. In a market as competitive as UAE banking, trust can be a deciding factor for customers. If clients know ruya will treat them fairly, not surprise them with hidden charges, that trust translates to loyalty and referrals. So, by sticking to our values, we actually gain a competitive edge: a strong reputation. We would rather grow steadily on a foundation of trust than chase quick wins that could undermine our credibility. Another way we balance values with competition is through principled innovation. We are committed to being technologically advanced and offering new features – we have to, to stay competitive – but we will not roll out something if it conflicts with our ethical standards. We always find a way to innovate that aligns with our principles. A good example is when we introduced cryptocurrency trading in our app. We knew other fintechs were offering crypto and as a digital bank we wanted to give our customers that option too, but we did it the ruya way. We ensured the service was Shari’ah-compliant, partnered with a reputable licensed crypto platform and provided educational resources so customers approach it as a long-term investment, not a gambling spree. In doing

so, we stayed true to our ethos of ethical, responsible finance while still being innovative. It proved to us that you do not have to abandon your values to compete –you just have to be creative and diligent in implementing new offerings the right way. We also firmly believe in playing the long game rather than chasing short-term gains. If we do right by people, we believe we will earn their business in the long run. Over time, that consistency between what we say and what we do builds a brand that stands out, even in a very competitive environment. We have also ingrained this philosophy in our culture –everyone on the team knows that making decisions with our values in mind is how we do business. In the end, customers notice that authenticity and it draws them to us even amidst heavy competition.

What are the medium- and longterm goals and aspirations for ruya?

In the medium term (the next few years), our goal is to firmly establish ruya as a leader in digital Islamic banking within the UAE. We want to grow our customer base among both individuals and businesses and become a trusted name that people instinctively think of when they want a fair

and modern banking experience. Part of that is expanding our product offerings so that customers can find everything they need in one place. We are working on adding Shari’ah-compliant investment options – like enabling people to invest in stocks or funds through our app – and bringing in new savings and financing products. For businesses, we intend to offer financing solutions (such as equipment financing or working capital support) designed for SMEs but structured in an Islamic way. Basically, medium-term, you will see ruya broaden into a full-service bank. We are also focusing on scaling up in a sustainable way: using advanced technology like AI and automation carefully, to maintain a high standard of customer service even as we grow. We want that growth to be accompanied by innovation, so we will keep introducing features that improve convenience and financial wellness for our users.

But longer term, our vision is even bigger. We want to become a core part of the UAE’s financial infrastructure. Through our Banking-as-a-Service model, ruya is enabling a wave of fintech innovation – from ethical investment apps to SME platforms and cross-border remittance solutions. We are becoming the bank behind the innovators and we are already supporting a number of fintechs through these partnerships.

Additionally, our aspirations are not just financial – they are also about community impact. We hope that as we grow, we are helping shape a more financially savvy and inclusive society. For example, in the long run I would like to see concrete metrics, like thousands of entrepreneurs who started businesses with ruya’s support or families that achieved milestones (buying a home, funding education) thanks to our products. Ultimately, our long-term vision for ruya is to be more than a bank: to be a platform for prosperity and positive change. If we can continue to innovate, expand responsibly and uplift our customers and communities, then we will have fulfilled the aspirations that drove us to start ruya in the first place.

The Catalyst for Banking Excellence in the Digital Age CONTINUOUS LEARNING:

Hamda AlShamali Group Chief People and Intellectual Capital Officer at Mashreq provides an interesting insight into their approach to adapting to the new world of banking services provision by making continuous learning a part of the working lives of their employees and in so doing, building in competitiveness and customer-centricity

The rapid pace of technological disruption, shifting customer expectations and evolving regulations are redefining banking. In this environment, learning and development is not just an HR function but a strategic cornerstone essential for survival and growth. For financial institutions to remain competitive, compliant and customercentric, continuous learning must be at the core of their transformation agendas. For Mashreq, this has never been a supplementary effort – it is foundational to how we have and continue to operate, innovate and grow.

The Strategic Value of Continuous Learning

Banks that foster strong learning cultures are significantly more agile

and resilient in the face of disruption. According to recent studies, such organisations report 52% higher productivity and are three times more likely to lead in innovation. Continuous learning also plays a key role in strengthening regulatory compliance, with structured training reducing compliance-related incidents by

Perhaps most importantly, continuous learning enables employees to deliver consistently exceptional customer service. Engaged, wellinformed teams are better equipped to understand customer needs, resolve issues quickly and act with empathy and integrity – qualities that define longterm customer relationships in today’s trust-driven economy.

Equally critical is ensuring that continuous learning follows a targeted and structured approach. Learning & Development programs should be aligned with the specific skills employees need for their current responsibilities, enhancements of career paths and investment in their readiness for future roles. Measurable, job-relevant learning outcomes ensure that training delivers practical value and drives long-term performance.

Hamda AlShamali, Group Chief People and Intellectual Capital Officer at Mashreq

Aligning with National Talent Development Initiatives

In parallel with our corporate goals, Mashreq is deeply aligned with the UAE’s national agenda to cultivate a highskilled, future-ready workforce. Through initiatives like the ETHRAA program, led by the Emirates Institute of Finance and the Central Bank of the UAE, thousands of UAE Nationals are being trained for specialised roles in compliance, fintech, risk and more. This program has created over 1,000 critical-role placements in a single year.

Mashreq is proud to support this mission, actively participating in Emiratisation and designing learning journeys that accelerate readiness for leadership. Our recent collaboration with ADGM Academy to develop a hub for banking education is another step in that direction, laying the groundwork for a sustainable and future-proof talent pipeline.

We are also proud to contribute to this vision through initiatives like the Pathfinders Graduates Development Programme, which nurtures highpotential Emirati talent through handson experience, leadership mentoring and structured development tracks.

Building a Learning Culture at Mashreq

Our people strategy is centered around development, adaptability and growth. Through a blend of in-house training, e-learning platforms, leadership programs and external partnerships, we offer diverse learning pathways tailored to individual and business needs.

Our collaboration with institutions like the Emirates Institute of Finance offers structured training designed to build critical skills across banking functions. Such programs aim to equip participants with the practical capabilities needed to grow within the sector, and in some cases, may offer access to professional learning opportunities or credentials, depending on the pathway pursued.

We have also invested in a modern digital training infrastructure that puts employees in control of their knowledge journey. AI-powered platforms assess skill gaps, recommend targeted training and deliver adaptive content that

What is essential is not the specific technology, but the mindset – one where learning is embraced as a continuous journey. By nurturing a growth culture where curiosity, adaptability and resilience are encouraged, banks can

BANKS THAT FOSTER STRONG LEARNING CULTURES ARE SIGNIFICANTLY MORE AGILE AND RESILIENT IN THE FACE OF DISRUPTION

evolves with the learner. Microlearning modules support real-time, bite-sized learning in daily workflows, while mobile access ensures flexibility for hybrid and remote teams.

Preparing for the Future

As digital transformation accelerates, so too must our approach to talent development. AI and immersive tools like gamification or VR can offer personalised and engaging learning pathways, helping build critical skills efficiently.

Mobile-first and microlearning formats are also gaining traction, offering employees short, focused lessons that fit seamlessly into the flow of work. These approaches could help banks ensure continuous development without disrupting day-to-day responsibilities.

build teams that are ready to thrive amid ongoing change.

In line with this vision, Mashreq is gearing up to launch its own AI Academy – an initiative designed to empower our teams to harness the transformative potential of artificial intelligence and machine learning technologies in a responsible and effective manner.

The academy is designed to drive digital transformation, enhance workforce capabilities and AI literacy to integrate and adopt AI across all levels across Mashreq through strategic upskilling and right-skilling initiatives. The overall expected outcome of the academy is to empower all employees globally with knowledge that will allow them to navigate the increasingly AI-driven financial landscape, while ensuring adherence to best practices in banking data quality, privacy and governance.

OUR PEOPLE STRATEGY IS CENTERED AROUND DEVELOPMENT, ADAPTABILITY

AND GROWTH

As technology reshapes our sector, the institutions that lead will be those that prioritise learning as a continuous, strategic process. At Mashreq, we see learning not as a response to ongoing disruption, but as a path to future resilience and excellence.

By championing lifelong learning, investing in our people and aligning with national priorities, we are not just building a stronger bank – we are helping shape the future of banking in the region.

PRIVATE EQUITY AND VENTURE CAPITAL

Haven of Hope

As global activity gradually recovers, investors remain wary amid geo-political issues, tariff uncertainties and macroeconomic headwinds, however our region, backed substantial sovereign reserves, government initiatives and a maturing technology ecosystem, emerges a beacon of positivity for PE & VC

Globally, the private equity and venture capital industry has moved beyond financial engineering and multiple arbitrages, pivoting instead towards value creation. The evolution has been on full display in the GCC region, with techenablement emerging as a key driver of deal activity.

Over the years, the private capital landscape in the region has grown more pragmatic, favouring adaptable investment structures and inventive financing models. Rather than insisting on control, many now settle for minority stakes in promising firms, while others

are joining forces with deep-pocketed sovereign wealth funds to gain access to bigger, more ambitious deals.

“The GCC region is currently witnessing the expansion of private capital as an alternative cluster of assets – private equity, private credit, venture capital and infrastructure funds – take flight like never before,” according to OliverWyman.

The growth in alternative investment in the GCC highlights regional economies’ push to diversify away from heavy reliance on hydrocarbon revenues. Backed by strong fiscal buffers, Gulf states are attracting rising investor interest, with private equity and venture capital firms

increasingly setting up operations across the region.

PwC said the GCC’s private equity and venture capital market has grown rapidly in recent years, as investors ranging from family offices to corporations to sovereign wealth funds now view these once-niche asset classes as essential tools for diversification and growth.

Meanwhile, the Trump administration’s sweeping tariffs on all US trading partners have compounded private equity and venture capital’s toughest post-pandemic hurdle: achieving timely exits in a world still recalibrating global supply chains.

The global private capital landscape has been slow to embrace digitalisation, but GCC-based private equity and venture capital firms are bucking the trend. Several have already adopted or are actively exploring innovative technologies such as generative AI (GenAI) to gain a competitive edge in an increasingly crowded market.

Though private equity investments in the Middle East slumped by 29% in 2024, according to venture capital data platform Magnitt, GCC states are embracing the transformative changes reshaping our world, such as digital disruption, the rise of GenAI and demographic shifts, amidst ongoing global uncertainty.

GCC-based private equity and venture capital firms are uniquely positioned to

benefit from these mega forces, including ongoing economic structural reforms under National Visions such as Saudi Vision 2030.

Thriving amidst global drought

The GCC region has emerged as a rare bright spot in a global landscape where private equity and venture capital flows have slowed considerably, leaving many startup ecosystems grappling with a funding drought. Though global funding for startups has slowed sharply, Gulf countries continue to attract capital, buoyed by strong government backing, sovereign wealth fund activity and a maturing tech ecosystem.

“The strength of private capital in the GCC is matched by a healthy venture capital scene, which is good for technological innovation – a key development pillar for most GCC countries,” said OliverWyman.

The GCC’s buoyant private equity and venture capital scene is positioning the region as a prime destination for entrepreneurs seeking funding. Saudi Arabia and the UAE continue to lead as key growth markets, while Qatar is quickly gaining ground, as the Gulf state is laying the groundwork for a vibrant startup ecosystem.

Startups in the Middle East secured $1.5 billion across 310 deals in the first half of 2025, with funding from MEGA deals – transactions valued at $100 million or more – already surpassing the total recorded for all of 2024, according to venture capital data platform Magnitt.

MENA’s strong performance is largely fuelled by Saudi Arabia and the UAE, which together accounted for 85% of total funding and 74% of all deal activity across the region.

The first half of the year has delivered strong year-on-year growth, particularly in key markets such as Saudi Arabia and the UAE, in line with the broader global recovery in venture capital,” said Philip Bahoshy, CEO of Magnitt.

“What is evident is that investor appetite remains robust.

THE GCC REGION IS CURRENTLY WITNESSING THE EXPANSION OF PRIVATE CAPITAL AS AN ALTERNATIVE CLUSTER OF ASSETS – PRIVATE EQUITY, PRIVATE CREDIT, VENTURE

CAPITAL AND INFRASTRUCTURE FUNDS – TAKE FLIGHT LIKE NEVER BEFORE

– OliverWyman

Saudi Arabia, in particular, has demonstrated notable momentum, registering growth in both capital deployed and deal volume – now matching the UAE for the first time,” Bahoshy added.

State-backed initiatives to foster entrepreneurship are propelling the development of venture hubs across the GCC, with Saudi Arabia and the UAE emerging as the principal recipients of venture capital inflows in recent years.

GCC sovereign wealth funds, including Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala Investment Company, have ploughed millions of dollars into regional allocators such as Jada Fund of Funds, Sanabil Investments, Mubadala Ventures and the Dubai Future District Fund.

Backed by both government and private sector conviction in the promise of emerging technologies and the digital economy, these investments are helping to cultivate a dynamic ecosystem for innovation and entrepreneurship.

“Venture debt has gained traction in the GCC region over the past three years, marking a shift in how startups and mid-market firms access capital. With traditional banking channels falling short of meeting the needs of this growing segment, alternative financing tools like venture debt are stepping in to bridge the gap,” according to EY.

The grim outlook for global deals is making the Gulf region more appealing for private equity and venture capital investments. The Qatar Investment Authority is leveraging its $1 billion Fund

of Funds programme to attract venture capital firms to Doha.

B Capital opened its Middle East headquarters in the Qatari capital in February, joining Rasmal Ventures, Utopia Capital Management and Builders VC, venture capital firms that have also signed on to the programme.

Private equity firms began steering clear of the Middle East after the 2018 implosion of Dubai-based dealmaker Abraaj Group. However, a wave of private equity and venture capital firms has set its sights on the oil-rich GCC region to spur deals and profits.

Brookfield Asset Management has become one of the biggest foreign investors in the GCC region by building a private equity portfolio of $8 billion and amassing infrastructure and real estate assets worth $5 billion.

France’s Ardian opened its Abu Dhabi office in 2023, while Warburg Pincus and Permira have set up shop in Dubai. Meanwhile, senior executives from Blackstone, General Atlantic and Carlyle frequent major financial summits in Riyadh, Doha and Abu Dhabi – underscoring the GCC region’s growing prominence in global private equity and venture capital.

GCC countries have witnessed unparalleled backing and financing for startups, especially in the technology sector, despite the decline in global venture capital funding. The region’s thriving private equity and venture capital market makes it a great place for startups to seek their next investor.

PRIVATE EQUITY AND VENTURE CAPITAL

A global perspective

Global private equity and venture capital deal value rose in the first half, extending the trend of fewer transactions but bigger ticket sizes as investors remain cautious in a volatile market.

“The aggregate deal value grew 18.7% to $386.42 billion between January and June from $325.57 billion for the same period in 2024,” according to S&P Global Market Intelligence data.

For June, S&P Global said deal value totalled $55.62 billion, versus $49.78 billion for the same month in 2024. However, the number of deals declined to 1,017 from 1,089.

Though the global private equity and venture capital landscape has seen a gradual recovery in fundraising activity, investors remain cautious amid persistent macroeconomic headwinds.

“Private equity firms entered the year with strong momentum and a desire to deploy significant amounts of the industry’s $1.6 trillion in dry powder,” said EY. However, rising trade tensions and mounting uncertainty are expected to weigh on deal activity in the coming 3 to 6 months.

Geopolitical tensions, US trade tariffs and a slowing global economy continue to weigh on sentiment, prompting a more measured approach to capital deployment and exit strategies.

“Newly imposed US tariffs and a broader shift toward protectionism are rattling global capital markets. While the immediate fallout for startups in MENA, Africa and Southeast Asia may be muted, the ripple effects are poised to reshape the venture capital landscape, tightening funding conditions and recalibrating investor appetite,” according to Magnitt.

Global private equity giant KKR & Co. said in a 10-K filing earlier in 2025 that tariffs “have the potential to increase costs, decrease margins, reduce the competitiveness of products and services offered by portfolio companies and adversely affect the revenues and profitability of portfolio companies”.

Markets reliant on international capital, such as Africa and Southeast Asia, will

WHAT IS EVIDENT IS THAT INVESTOR APPETITE REMAINS ROBUST. SAUDI ARABIA, IN PARTICULAR, HAS DEMONSTRATED NOTABLE MOMENTUM, REGISTERING GROWTH IN BOTH CAPITAL DEPLOYED AND DEAL VOLUME – NOW MATCHING THE UAE FOR THE FIRST TIME

– Philip Bahoshy, CEO of Magnitt

likely feel the pinch from a shifting global economic landscape. The Gulf region, by contrast, remains relatively insulated, buoyed by sovereign wealth funds and state-backed initiatives. Still, those buffers could come under strain if tarifffuelled oil price volatility escalates.

The new playbook

Private equity and venture capital are grappling with the same disruptive forces that are reshaping other industries. The traditional private credit model – long reliant on established, manual processes, is increasingly ill-suited to today’s fast-paced, hyper-competitive dealmaking environment.

The private equity industry, despite sitting on a lot of dry powder, faces mounting pressure to allocate capital more efficiently. Technological advancements such as AI, robotic process automation and blockchain have emerged as key enablers, boosting operational efficiency, enhancing compliance and sharpening decision-making processes.

S&P Global said technology adoption to streamline portfolio management and reporting is no longer a differentiator for asset managers, but it is a requirement.

“Deal, investor relations and portfolio management teams now expect every datapoint at their fingertips to enhance their due diligence, investor reporting and valuation workflows.”

AI is reshaping private equity and venture capital, with applications spanning deal sourcing, due diligence and portfolio optimisation. On the deal

origination front, AI can scan nearly 200 potential targets in the time it takes a junior analyst to evaluate one, according to the World Economic Forum.

Firms like Blackstone and EQT are doubling down on proprietary platforms, such as EQT’s Motherbrain, which aggregates over 140,000 data points to deliver real-time merger and acquisition intelligence.

For decades, the private credit market has inched toward greater transparency – an evolution demanding the exchange of vast, often unwieldy volumes of data. Much of that information, however, has remained locked in PDFs, emails and other unstructured formats.

AI is now bringing that buried data to the surface, offering firms the ability to extract insights, enhance oversight and unlock value.

“With the ability to extract, normalise, consolidate and analyse data at scale, private equity and venture capital are poised to become nimbler, more efficient and better informed than ever before,” said S&P Global.

The GCC’s alternative investment ecosystem is gaining momentum, underpinned by a thriving private equity and venture capital industry that supports the region’s tech-driven development agenda. Since the 2008 financial crisis, private credit has surged as banks pulled back from riskier lending. These non-bank lenders are stepping up to fill the gap – an asset class that is projected to top $3.5 trillion by 2028, according to BlackRock.

View from The East

With CICC, one of China’s leading investment banks recently opening operations in the DIFC, Barry Chan Head of Asia-Australia Region, gives MEA Finance an overview of Dubai’s regional banking, financial and capital markets from their perspective

Why is CICC operating in Dubai?

CICC’s decision to establish a presence in Dubai is rooted in the region’s remarkable economic transformation and its growing prominence as a global financial and trade hub. The overall macroeconomic performance of Gulf countries has been impressive year on year. Historically, the growth in this region has been driven by the oil and gas sector; however, recent years have witnessed a significant pivot toward economic diversification, with investments flowing into infrastructure, technology, healthcare, real estate and renewable energy sectors. Investment activities have also surged, with sovereign wealth funds and private investors actively deploying capital, not only internationally as part of their willingness to ensure future generation’s financial well-being but also into domestic infrastructure, real estate, technology, healthcare and energy transition projects to ensure the countries are ready to embrace the next phase of their development away from oil and gas.

Dubai, as part of the UAE, has emerged as a strategic gateway

to the wider region. Its world-class infrastructure, business-friendly environment and forward-looking policies align with CICC’s goal of fostering crossborder collaboration. By establishing our office in the Dubai International Financial Centre (DIFC), CICC aims to facilitate capital flows within the growing China-GCC economic corridor and provide tailored financial solutions that strengthen long-term partnerships. This move is also part of our broader global development to enhance connectivity between China and other key international markets. Dubai’s strategic location, coupled with its role as a crossroads for trade and investment, makes it an ideal platform for CICC to deliver on its mission of enabling international clients to access opportunities in China and vice versa. China International Capital Corporation Hong Kong Securities Limited formally established its branch in UAE at the Dubai International Financial Centre (DIFC) on 9th January 2025. The entity is operating as CICC (DIFC Branch) and was granted a Category 4 license by the Dubai Financial Services Authority (DFSA). The license authorised the firm to arrange and provide advisory services to institutional and professional clients.

How do you view the current and the future of banking and capital markets in our region?

The Gulf’s banking and capital markets are undergoing a period of dynamic growth and transformation. Sovereign wealth funds in the region are playing an increasingly active role in global markets, with GCC

Barry Chan, Head of Asia-Australia

Region, CICC

sovereigns projected to manage assets worth $18 trillion by 2030.

Another key trend is the region’s growing integration with Asian markets, particularly China. Gulf sovereign wealth funds and private investors have significantly increased their allocations to China, with $9.5 billion invested in Chinese markets as of September 2024. This eastward shift is underpinned by strategic alignment with China’s Belt and Road Initiative and the Gulf’s own diversification ambitions.

Looking ahead, the region is poised to become a global center for capital markets innovation, driven by proactive government policies, regulatory reforms and a focus on sustainability. We expect to see continued growth in cross-border transactions, IPO activity and private equity investments, further solidifying the Gulf’s role as a financial powerhouse.

How are the Middle East’s and Asian markets coming together, as regional economies grow?

The Gulf and Asian markets are increasingly interconnected, a trend driven by shared economic goals and complementary strengths. China’s expertise in manufacturing, infrastructure development and digital technology aligns seamlessly with the Gulf’s diversification strategies. This growing interconnection is evidenced by the bilateral trade between China and the GCC, which continues to grow, supported by large-scale infrastructure projects, energy partnerships and supply chain integration. This relationship is further strengthened by mutual investments in new sectors, including renewable energy, healthcare, technology, tourism and logistics, paving the way for a robust economic corridor.

In addition, capital markets between China and the Middle East are becoming increasingly interconnected through cross-border investments, mergers and acquisitions (M&A) and innovative listing mechanisms. According to Refinitiv, cross-border M&A activity between Asia

THE GULF AND ASIAN MARKETS ARE INCREASINGLY INTERCONNECTED, A TREND DRIVEN BY SHARED ECONOMIC GOALS AND COMPLEMENTARY

STRENGTHS

and Middle East regions has surged, with deal values reaching $78 billion in 2023—a 25% increase from the previous year—as investors seek growth opportunities in high-potential sectors such as renewable energy, technology and infrastructure.

Moreover, the potential for crosslisting and dual-listing is gaining traction, with financial hubs such as Hong Kong, Dubai and Riyadh exploring regulatory frameworks to facilitate two-way capital flows. For instance, Chinese firms are increasingly considering secondary listings in the Middle East. This deepening integration not only enhances liquidity and diversification but also strengthens economic ties, positioning Asia and the Middle East as pivotal players in the evolving global financial landscape.

What role can CICC play in helping the growth of trade and finance between our region, China and wider Asia?

CICC is uniquely positioned to act as a financial bridge between China and the Gulf region. CICC is a key participant in the evolution of the Belt and Road Initiative (BRI). One of our key roles is to connect regional investors—such as sovereign wealth funds, corporations and family offices—with opportunities in China and the broader Asia- Pacific region. We also assist Chinese companies in exploring opportunities in the Gulf, including partnerships and business expansion in the region.

With our deep market expertise in China, extensive footprint and track record, and strong regional reputation among clients with whom we have already built relationships of trust, CICC is well-positioned to support our clients

in navigating relevant opportunities and fostering collaborations that drive sustainable growth between China and the Gulf region.

Can you give us some background about CICC and its position in the Chinese and Asian markets?

CICC was founded in 1995. With Chinese roots and international reach, CICC is committed to providing high-quality and value–added financial services to a diversified set of clients, building up a balanced, full-service model based on research and information technology that empowers investment banking, equities, FICC (Fixed Income, Currencies and Commodities), asset management, private equity and wealth management businesses.

As an investment banking institution with Chinese roots and international reach, our vision is to become a first-class investment banking institution with international competitiveness. CICC has actively expanded into global markets, establishing offices in major financial centers such as Hong Kong SAR, New York, London, Singapore, Frankfurt, Tokyo and now Dubai, reinforcing our international reach.

Since our inception, CICC has been at the forefront of China’s capital market development, integrating international best practices with local expertise. Our experience in professional services includes leading various prominent transactions, reflecting our close involvement in China’s economic reform and development. CICC continues to bring first-class financial services through our extensive network and outstanding cross-border capabilities, helping our clients achieve their strategic development goals.

THE SECOND BRAIN:

Why Dubai’s Top Bankers Need to Teach Machines to Doubt

Sanat Rao Cofounder and Managing Director, Within

The Box.ai posits that as UAE banks continue to modernise, those who invest in Human-AI synergy, rather than submitting to jingoistic AI supremacy, will lead the industry not only in performance, but also in credibility and relevance

Three weeks after a near-miss that could have irreversibly damaged her own reputation and cost her bank a major ESG client, Fatima Al-Rashid spoke with her Head of AI. This was a conversation prompted by both compulsion and some doubt. As an experienced banker and a seasoned risk officer, Fatima was not there to challenge the algorithm that had previously triggered the false alert. Instead, she wanted this conversation to be about how she and her Head of AI could together improve the algorithm. She was certain that this was not a technology issue. Her proposal was unusual.

“I’d like the system to acknowledge what it doesn’t know,” she told Dr. Priya Sharma, the MIT-trained lead on the bank’s AI development team. There was certainty in her voice and not some wishful thinking.

“If I have understood you correctly, you want to… build in doubt?” asked Dr Sharma.

Increasingly, our expectations of AI platforms are that they should be designed to deliver certainty and confidence, and therefore this request seemed paradoxical. Yet, from her past associations with Fatima, Dr. Sharma knew

Sanat Rao, Cofounder and Managing Director, Within

The Box.ai

that Fatima’s instincts were grounded in experience but also in strong gut instinct. It drove home a point that in an algorithminfluenced world, when human judgment challenged machine logic, it often won.

Increasingly, bankers in the region are convinced that the next phase of deploying AI in banking is not going to be about full automation. Rather, the focus shifts to collaboration in a Human + Machine paradigm.

Welcome to the era of the Second Brain, not one where AI thinks for us, but one where AI thinks with us.

The Doubt Advantage

Just as it happened when industries began embracing digital technologies, banks will go through a 3-phase journey when it comes to embracing AI.

Inherent in this 3-phase journey is that the AI will not be perfect initially; powerful, yes but not perfect. In my conversations with bankers in the UAE, there is growing acceptance that instead of chasing perfection, there is the need to embrace strategic uncertainty. And by this, I mean not timid algorithms, but instead they will be confident in knowing their limits, and ready to flag them to the human.

There was a bank in Southeast Asia whose previous model for its trade business operated in a traffic signal like manner, with 3 steps to identify, evaluate, reject. However, the management decided to introduce a new cognitive design which presents a more nuanced set of recommendations, namely “78% confidence this facility meets standard criteria. However, three cultural factors now require human review.”

Approval accuracy rose by 12%. Human effort was not eliminated; on the contrary it was sharpened. By identifying exactly where it was needed, the system created what I refer to as productive doubt.

From Silicon Valley to Sheikh Zayed Road

In running a business, even one as highly regulated as banking is, confidence is good. This is however quite different from what many believe is Silicon Valley’s prevailing AI mindset, where confidence scores often mask blind spots. In relationship-driven markets like the UAE, this can be risky and even dangerous.

The Senior Client Partner of a credible consulting business told me “We noticed a pattern of overconfidence, almost bordering on what I call algorithmic

when evaluating loan applications from family-run businesses, the system flags informal collateral structures and other multigenerational dynamics that do not appear in datasets. These flags are not weaknesses or failings. They are simply invitations for human judgment.

A Competitive Edge That Cannot Be Replicated

This approach is becoming a regional differentiator. While global banks entering the market often rely on standardised AI tools, local institutions are increasingly

IT DROVE HOME A POINT THAT IN AN ALGORITHM-INFLUENCED WORLD, WHEN HUMAN JUDGMENT CHALLENGED MACHINE LOGIC, IT OFTEN WON

arrogance.” He explained that the final 5 to 10% of uncertainty often held the key contextual or cultural insight that made all the difference.

Who knows, maybe one day a technology-savvy and responsible bank will develop a Doubt Protocol, a framework requiring algorithms to highlight gaps in their understanding. Such a framework will likely not undermine confidence. On the contrary, it may just enhance frontline decision-making where relationship managers will spend less time validating obvious outcomes and more time applying nuanced judgment.

Algorithmic Modesty May Not Be Such a Bad Thing Afterall

Some banks are exploring the possibility of adopting advanced models based on some form of calibrated confidence, where the AI is trained not just to be right but also accurately assess its own uncertainty.

In future, we may have banks with credit risk platforms that include a Cultural Uncertainty Index. For example,

able to navigate complex socio-cultural dynamics that global models miss.

And as UAE’s digital banking sector grows at an expected 4.77% CAGR through to 2029, this hybrid model is turning into a strategic advantage. It is not just about efficiency, it is as much about precision, relevance and trust.

There is also a regulatory incentive driven by the core tenets of responsible banking. As GCC regulators grow more vigilant about explainability and bias, these systems create natural audit trails by showing where human oversight shaped final decisions.

The Three-Stage Shift Leading to Maturity

As banks try to figure out a Human + Machine formula in their context, we should expect them to go through a threephase journey -

1. Retrofitting for Transparency by adding uncertainty indicators to existing AI systems, especially in credit approvals, compliance and fraud.

2. Human-AI Collaborative Interfaces where the design dashboards integrate machine recommendations with contextual prompts for human interpretation.

3. Learning from disagreement whereby the AI is trained to improve when its predictions are overridden by human oversight, thereby closing the loop.

Thinking Together Is the Future

Fatima’s request to embed doubt in her bank’s algorithm was not an act of caution but a demonstration of leadership. Maybe in her bank they now have what they playfully call “The Fatima Protocol”, a design principle requiring AI systems to state their limitations before asserting confidence.

Sometimes, the most intelligent thing an algorithm can do is say, “I’m not sure. Let’s think together.” Come to think of it, it is almost human-like, is it not?

In a region where cultural insight and personal relationships remain central to banking success, the Second Brain may prove to be the smartest investment of all in a Human + Machine paradigm that shapes the AI-powered bank of the future in the UAE.

Within The Box.ai is UK-headquartered and based at the DIFC Innovation Hub. It is an AI Enablement and Behavioural Design company that works with banks, hedge funds and fintechs. Their new programme ‘Seizing the AI Advantage: How Human + Machine Will Shape The AI-Powered Bank of the Future’ is scheduled for Sept 15th and 16th

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