May 2025
Wealth Exchanges Osama Al Rahma, Chairman of FERG and Head of Business Development and Wealth Management at Emirates Investment Bank
May 2025
Wealth Exchanges Osama Al Rahma Chairman of FERG and Head of Business Development and Wealth Management at Emirates Investment Bank
A MEA Finance Publication
10 Market Focus: Oman | 14 Cybersecurity | 28 Transaction Banking | 46 Backbase 2025 Trend Report | 52 SME Business and Finance Awards Winners
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Mayday
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ou can view the title of this opening letter in many ways. The first half of the word is the month of this edition of MEA Finance – welcome! It is an expression of possibility. As individual words it is recognised as the International Workers Day. But as a whole word it is the internationally recognised distress signal. Here and now, it works on all levels. The looming threat of distress for economies, workers and consumers from the tariffs imposed by the US government are at the point where they are starting to be noticed, with likely knock on effects such as disrupted supply chains, commodity price uncertainty and the probability of a global economic slowdown. It is a situation that needs resolution before it mushrooms into the possibility of true ugliness. Oscar Wendel Editor-AtLarge, MEA-Finance, contends that those who anticipate the coming shifts and develop strategies to navigate an increasingly complex trade environment will be at an advantage. Our cover story this month features Mr. Osama Al Rahma Chairman of FERG and Head of Business Development and Wealth Management at Emirates Investment Bank. In his interview, he describes his experience in the financial sector and the development of the UAE’s market, “in terms of positioning as a global financial centre, it is a bright future for the UAE.” Oman features as our market report this month, where they are accelerating fiscal reforms, bolstering non-hydrocarbon revenues and encouraging consolidation in its financial sector.
We then look at the growing profile of cyber security as a concern, as keeping at pace with bad actors becomes more of a challenge with the advance of AI, page 14, and a little further in, at page 24, we examine the deepening role of and obligations around insurance across the region. Our look at transaction banking examines our region’s strengths in this important sector and Deyana Cherneva, Head of Global Trade Solutions, Middle East, North Africa and Türkiye, HSBC provides a current market overview of the challenges that are realigning supply chains. Note that at page 20 we have an important contribution from law firm Amereller, where they warn about the tax pitfalls of mispriced intra-group loans. This edition of MEA Finance is key for imparting the latest developments and concerns in the regional banking and finance technology scene with Abrar Khan, Senior Client Manager, BFSI at GBM Dubai describing how financial crime is being countered, and Bill Borden, Global VP of Financial Services at Microsoft, in extracts from his Leadership Series Interview with MEA Finance, discusses the key technology driven developments, priorities and opportunities for banking across the region. Continuing, one of our regular technology partners, Backbase provides an up to the minute report on the fast pace of technological development in regional banking across our region. We end this letter on a brighter note with, from page 52, coverage of our SME Business and Finance Awards, recently presented in Dubai. Read about and see the winning SMEs, banks and fintechs who were successful in these awards recognising the essential contributions this sector makes to the economies of our region. So, as you settle into this issue, you may feel uncertain about the coming months but I am confident that these good reads will make your day.
mea-finance.com
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CONTENTS
CONTENTS 38
MARKET FOCUS
10 Oman’s Optimistic Outlook CYBERSECURITY
14 Threats and Opportunities TRADE TARIFFS Tsunami: Decoding America’s 18 Tariff Trade Reset for Middle Eastern Financial Strategy
OPINION PIECE the Interest Rate Tightrope: 20 Walking Tax Pitfalls of Mispriced Intra-Group Loans
PARTNER CONTENT Open Digital Banking: 22 Multi-Segment, ADRIA’s Vision for the Future of Financial Services
INSURANCE
24 Policy of Change
MEA Finance WEB: www.mea-finance.com EMAIL: info@mea-finance.com PUBLISHED BY: Creative Middle East Media FZ LLE, 19th Floor, Creative Tower, Fujairah Creative City, PO Box 4422, Fujairah, UAE
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Banking and Finance news in the MEA market
18
TRANSACTION BANKING
28 Command of Chain 32 Navigating Challenges FINANCIAL CRIME
34 Unremitting Struggle
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COVER STORY
38 Wealth Exchanges LEADERSHIP SERIES
42 Positioning for the Present SPONSORED CONTENT East banking shows no signs 46 Middle of slowing
SME BUSINESS AND FINANCE AWARDS 2025
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32 52
MEA Finance SME Business and 52 The Finance Awards 2025
EXECUTIVE DIRECTOR AND PUBLISHER Kenneth Mitchen ken.mitchen@mea-finance.com GROUP COMMERCIAL DIRECTOR Nap Estampador nap.estampador@mea-finance.com Tel : +971 50 100 5488 DIRECTOR Andrew Cover andrew.cover@mea-finance.com Tel: +971 50 931 3236
BUSINESS DEVELOPMENT OFFICER Geri Teniozo geri.teniozo@mea-finance.com Tel: +971 50 3036879
EVENT AND CONTENT DIRECTOR Natasha Cristi natasha@mea-finance.com Tel: +971 50 303 4235
ADMIN AND FINANCE MANAGER Marilyn Nainque marilyn@mea-finance.com Tel: +971 58 5025836
EVENTS AND MARKETING MANAGER Cris Balatbat crissyb@mea-finance.com Tel: +971 58 594 4818
EVENTS & MARKETING MANAGER Henry Jr. Dormitorio henry@mea-finance.com Tel: +971 55 345 2088
WEB ASSISTANT Marie Orayan web@mea-finance.com
EVENTS & MARKETING MANAGER Joy Baldenero joy@mea-finance.com Tel: +971 56 174 7426
SENIOR DESIGNER Florante Magsakay Tel: +971 52 570 1811 design@mea-finance.com
EDITORIAL editorial@mea-finance.com
Dubai office: Al Saaha Offices, Old Town Island Burj Khalifa District PO Box 487177, Dubai, UAE Email: info@mea-finance.com
EDITOR-AT-LARGE Oscar Wendel oscar.wendel@mea-finance.com
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MARKET NEWS
Backbase launches world’s first AI-powered Banking Platform, putting banks back in Growth Mode built for banking. Operating safely within guardrails, these agents seamlessly embed into service and sales journeys — automating tasks, guiding next-best actions and boosting productivity across the front and back office.
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o m e nt u m a c c e l e ra te s with the release of its next-generation platform, purpose-built to accelerate growth and efficiency in banking by unifying two mission-critical domains: customer servicing and digital sales. This launch marks the next phase of Backbase’s bold vision: putting bankers at the forefront of the AI revolution, fully equipped to drive sustainable, profitable growth. Built for unified sales and servicing In today’s competitive landscape, banks can no longer afford to rely on passive digital channels and reactive workflows. Backbase’s AI-powered Banking Platform enables banks to: • Transform customer engagement with AI-powered self-service and real-time support • Hardwire AI into daily operations to maximise employee productivity and smarter decision-making • Streamline and scale sales through intelligent activation and end-toend automation • Expand revenue with AI-driven up-
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and cross-sell journeys that deepen customer relationships. “Banks don’t need more pilots – they need outcomes,” said Jouk Pleiter, CEO & Founder of Backbase. “With our AI-powered Banking Platform, we’re going all-in on the AI opportunity and empower banks to boost productivity, automate intelligently and unlock growth faster than ever.” Why now? The industry is at a tipping point. While fintechs surge ahead, many banks are still trapped by legacy tech and fragmented data — unable to fully seize the AI opportunity. The last decade delivered basic digital channels. The next will be owned by banks that master AI-powered growth orchestration: acquiring, activating, expanding, and retaining customers at scale. Powered by the Intelligence Fabric At the heart of the platform is the Intelligence Fabric — a unified data foundation that turns behavioural signals, transactional data and operational insights into real-time, actionable intelligence. A breakthrough addition is Agentic AI: modular, intelligent agents purpose-
Banking and Finance news in the MEA market
Trusted and secure by design Built on a trusted AI foundation, the platform ensures every decision, re c o m m e n d a t i o n a n d a c t i o n i s transparent, secure and auditable. Agents are developed, deployed and governed within a tightly controlled environment, enabling banks to confidently scale while upholding the highest standards of compliance, risk and operational integrity. Closing the talent gap with the AI Factory AI adoption demands new expertise — and Backbase delivers it through the AI Factory: an embedded delivery model designed to bridge the industry’s AI skills gap. By integrating Backbase’s AI experts directly into their teams, banks can rapidly co-create high-impact use cases and turn innovation into execution with speed and confidence. “This isn’t proof-of-concept AI. This is a packaged, production-ready operating model to move banks from experimentation to execution, fast,” said Jouk Pleiter, CEO & Founder at Backbase. “AI waits for no bank. It’s not a wait-andsee – it’s here, and it’s rewriting the rules of the industry. The time to act is now.” Available now The AI-powered Banking Platform is already delivering breakthrough efficiency and unlocking new growth for early adopters. As of today, it’s officially live and globally available — ready to transform how banks operate at scale.
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MARKET NEWS
Emirates NBD’s strategic collaboration with Kinexys by J.P. Morgan set to enhance cross-border payment security
Emirates NBD a leading banking group in the Middle East, North Africa and Türkiye (MENAT) region, announces its strategic decision to join Kinexys Liink, the world’s first bank-led peer-to-peer data sharing network, from Kinexys by J.P. Morgan
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hrough integrating with Kinexys Liink’s ‘Confirm’ Application, designed for the exchange of global account validation information, Emirates NBD aims to enhance cross-border payments security for participants on the Kinexys Liink network. Through the collaboration, Emirates NBD aims to provide participating banks and financial institutions on the network with enhanced security and efficiency and offer benefits to further streamline cross-
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border payment flows in the United Arab Emirates (UAE). Leveraging the ‘Confirm’ Application, Emirates NBD, will be able to validate account information for accounts based in the UAE for participants on the ‘Confirm’ Application. Kinexys Liink is offered by Kinexys by J.P. Morgan – the firm’s blockchain business unit focused on groundbreaking innovation to build the next-generation of financial infrastructure utilising blockchain technology. An Application on the Kinexys Liink network, ‘Confirm’ enables the global
Banking and Finance news in the MEA market
validation of bank account information in advance of payment being made. By providing validation services on the ‘Confirm’ Application Emirate NBD will help network participants ensure that payments are routed correctly, preventing costly delays and reducing the occurrence of payment returns due to incorrect or outdated details. This will also help to control operational costs, improve straight-through processing rates and help reduce payment delays, which could otherwise take several days to resolve, ensuring payments will reach the intended recipients quickly and efficiently. The collaboration positions Emirates NBD as a regional pioneer in utilising blockchain technology to streamline international payments, strengthening its commitment to innovation and payment security. A n i t h D a n i e l , G ro u p H e a d of Transaction Banking Services, Emirates NBD, commented: “We are pleased to integrate with ‘Confirm’ by Kinexys Liink, which positions us at the forefront of payment innovation. By leveraging a blockchain network infrastructure such as the one from Kinexys by J.P. Morgan, we are able to provide real value to banks on the network, ensuring advanced payment security and streamlined operations. As the Kinexys Liink network expands, we are excited about the future opportunities this collaboration will unlock.” Naveen Mallela, Global Co-Head of Kinexys by J.P. Morgan, said: “We are pleased to welcome Emirates NBD as part of the Kinexys Liink network. We are committed to developing solutions that enhance the speed, security and reliability of global cross-border payments and Emirates NBD’s integration with the Kinexys Liink network helps bring these benefits to the region.”
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MARKET FOCUS - OMAN
Oman’s Optimistic Outlook Oman is accelerating fiscal reforms, bolstering non-hydrocarbon revenues and encouraging consolidation in its financial sector, all crucial steps towards achieving long-term fiscal sustainability and meeting its Vision 2040 goals
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m a n m a r ke d t h e f i f t h a n n i ve rs a r y of S u l ta n Haitham bin Tariq Al Said’s ascension on January 11th, a period characterised by sustained economic growth driven by reforms under Oman Vision 2040. The International Monetary Fund (IMF) commended Omani authorities, citing the decisive progress of structural reforms under Vision 2040, particularly in enhancing the business environment, overhauling government-related entities and advancing climate and digitalisation policies. The Sultanate’s economic growth accelerated from 1.2% in 2023 to 2.6% in 2024 and is projected to reach 3.6% this year, supported by a robust nonhydrocarbon sector, according to the IMF. However, the growth trajectory is being tempered by the potential of prolonged lower oil prices following OPEC+’s decision to triple a planned output hike and emerging risks from President
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Donald Trump’s tariffs on nearly all US trade partners. Goldman Sachs projected that Brent crude oil prices could potentially plunge below $40 a barrel if the ongoing global trade war intensifies and oil supplies increase, as tariff shock have stoked recession fears. Though Oman has one of the weakest credits and is more sensitive to volatility in energy prices compared to its GCC neighbours, Sultan Haitham has spent the last five years balancing the country’s budget and planning for a post-oil economy. Oman Vision 2040 economic transformation plan, set out in 2021, has spurred the government to implement significant structural reforms to enhance the non-oil economy, diversify the nation’s economic base and foster long-term sustainable growth. The reforms include cutting subsidies, restructuring government and state entities, introducing a value-added tax
Banking and Finance news in the MEA market
(VAT) in addition to a Domestic Minimum Top-up Tax (DMTT) that was implemented in January, targeting multinationals with a consolidated annual revenue of $779.3 million (OMR 300 million).
Ground realities Oman’s economic outlook remains favourable, driven by robust investments in food production, infrastructure construction and energy-intensive industries, which fuelled a 3.8% non-oil sector growth in the first half of 2024. The growth demonstrates the effectiveness of Oman’s diversification efforts under Vision 2040. The Sultanate’s continued investments in the non-oil sectors, adoption of global tax frameworks and advancements in AI and urban development highlight the authorities’ commitment to building a globally competitive, future-ready economy. “Over the medium term, nonhydrocarbon activity is set to drive overall economic growth as sizable committed private sector investments are executed,” said the IMF. Oman approved its 2025 state budget in January, projecting a deficit of $1.61 billion (OMR 620 million), a 3% decrease from the previous year’s budget. The finance ministry attributed the reduction in deficit to stronger revenue growth, primarily driven by increased gas receipts, which offset a projected 1.4%
decline in oil revenue compared to the 2024 budgeted figures. T h e b u d g e t fo re c a s t s t o t a l expenditures of OMR 11.8 billion, up 1.5% year-on-year and total revenues of OMR 11.1 billion. To plug the deficit and manage public debt, Oman 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. The government issued development bonds in February and April, each valued at OMR 100 million. Further development bond issuances are scheduled for June, July, August, September and October, each valued at OMR 60 million, with a final OMR 50 million issuance in December. The two local Sukuk issuances, each worth OMR 100 million, are planned for May and November. The Sultanate’s improved fiscal performance and reduced public debt have garnered positive recognition from major global rating agencies – Fitch Ratings, Moody’s and S&P Global – which upgraded the country’s credit ratings and outlooks, citing strong economic growth prospects. “Oman’s ratings are supported by higher GDP per capita and World Bank Governance Indicators than peer group medians, the positive impact of recent budget reforms and decreasing government debt/GDP,” said Fitch Ratings. Similarly, S&P Global emphasised that while Oman’s fiscal health remains sensitive to oil price fluctuations, re s i l i e n c e a g a i n s t s h o c ks h a s strengthened as the authorities remain committed to rationalising expenditure and mobilising non-hydrocarbon revenue. PwC said that the 2025 budget accounts for global uncertainties, including volatile oil markets, inflation, high global debt, restrictive monetary policies and geopolitical risks. It also aligns with Oman Vision 2040 and the 10th Five-Year Development Plan (20212025), prioritising financial, economic and social stability.
OMAN’S RATINGS ARE SUPPORTED BY HIGHER GDP PER CAPITA AND WORLD BANK GOVERNANCE INDICATORS THAN PEER GROUP MEDIANS, THE POSITIVE IMPACT OF RECENT BUDGET REFORMS AND DECREASING GOVERNMENT DEBT/GDP – Fitch Ratings
Building on the 10th Five-Year Plan’s success in reducing public debt, diversifying revenues and fostering postpandemic economic recovery, Oman is now developing its 11th Five-Year Plan (2026-2030).
Towards Vision 2040 Sultan Haitham inherited an Omani economy burdened by substantial fiscal and external deficits, slow growth and high youth unemployment, all of which were exacerbated by the COVID-19 pandemic and plummeting oil prices. Since 2020, the Sultanate has navigated the dual challenge of implementing fiscal reforms to curb public spending and ensuring continued progress on economic goals. Central to these efforts is maintaining social cohesion and national stability, as the Gulf state seeks to modernise its economy without compromising the welfare and unity of its citizens. O n g o i n g refo r m s i n c l u d e t h e implementation of VAT in 2021, phased reductions in electricity and water subsidies and stricter control over capital and operational expenditures. Oman has also enhanced transparency by releasing regular economic data, such as quarterly real GDP, monthly fiscal reports, annual international investment positions and IMF Article IV consultations. “Proceeding decisively with the tax administration reform, the implementation of the personal income tax law and Pillar II of the global minimum tax is essential to reduce the tax gap and help re-balance
the envisaged fiscal adjustment over the medium term,” said the IMF. Oman is making progress towards personal income tax, which could bring a small amount of additional revenue. Earlier in January, the Sultanate issued a new draft personal income tax law with key amendments, raising the exemption threshold and lowering proposed tax rates. Under the proposed law, foreign workers earning more than $130,000 annually will be subject to income tax, up from an earlier threshold, which was previously around $100,000. The Sultanate’s introduction of VAT seeks to ensure financial sustainability by tackling rising public debt, a consequence of decreasing oil revenues – part of a broader effort to improve fiscal efficiency through institutional reforms. Meanwhile, Oman is working to catch up to regional peers like Saudi Arabia and the UAE in capital market development, with regulators approving measures to boost private-sector listings and secondary liquidity and pursuing emerging-market status. Oman’s sovereign wealth fund, the Oman Investment Authority (OIA), intends to launch initial public offerings (IPOs) across key sectors from 2024 to 2028 to stimulate the country’s capital market and increase market funds. OIA plans to launch IPOs in key sectors from 2024 to 2028 as part of its plans to privatise 30 firms, aiming to finance its energy transition and deepen its capital markets. A record $2.5 billion haul from IPOs helped Oman leapfrog markets such as mea-finance.com
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MARKET FOCUS - OMAN
the UK in 2024, while analysts viewed the $333 million IPO of OIA-backed Asyad Group’s shipping division as a key indicator of the country’s ability to execute its divestment strategy. OIA, which manages funds on behalf of the Sultanate, is developing the Gulf state’s economic sectors by implementing large projects in partnership with the private sector. Oman’s OMR 19.6 billion state investor launched an OMR 2 billion Future Fund Oman last August to drive SME investment and attract foreign capital in eight strategic sectors over the next five years. Further efforts to reduce state involvement, improve the business environment and accelerate green investments are crucial for sustaining economic diversification and strengthening financial reforms. The Sultanate’s strong diplomatic ties position it to attract business and investment from regional powerhouses like India and the UAE, as well as global markets. With the new US administration’s renewed interest in the GCC region, Muscat can leverage its role as a regional bridge to draw increased American investment.
of Oman (CBO). Omani banks listed on the Muscat Stock Exchange registered a record 15% increase in combined profits, reaching OMR 522.6 million in 2024, driven by strong economic expansion and increased lending activity. Bank Muscat, the richest local financial institution, reported the highest earnings, at OMR 225.5 million, a 6% increase in 2024. Sohar International’s annual profit reached OMR 70.3 million, a considerable increase from OMR 70.3 million in 2023, while the National Bank of Oman posted a net profit of OMR 63 million. “The banking sector is sound amidst continued efforts to strengthen regulatory and supervisory frameworks. Progress on stepping up banking regulatory
Banking sector
frameworks, including the improved D-SIB framework and restoration of the capital conservation buffer to its pre-pandemic level, supports banking sector resiliency,” said the IMF. Meanwhile, Mashreq, the UAE’s fifthlargest bank by assets, expanded its regional reach earlier in January by launching operations in Oman, a strategic move aimed at supporting the Sultanate’s economic diversification initiatives. Banks in Oman have been consolidating to improve economies of scale, reduce operating and funding costs and boost profitability and efficiency. Sohar International Bank and Ahli Bank are considering a merger to form one of Oman’s largest domestic banking groups with nearly $30 billion in assets. Earlier in April, Ahli Bank said that its board would discuss a merger proposal from Sohar International. The proposed
The Omani banking sector remains sound. Profitability has recovered to prepandemic levels, capital and liquidity buffers are ample and asset quality remains strong. “Omani banks’ net income will likely remain broadly stable at around 1.1% of tangible assets in 2025,” Moody’s said in February, adding that loan-loss provisioning continues to fall back, reflecting a more supportive operating environment. Banks in the Sultanate, like their GCC peers, registered record profits in 2024 on the back of improved operating conditions marked by economic recovery and the central banks’ move to tighten monetary policy. Oman’s banking sector recorded robust credit growth of 6.7% in 2024, while deposits surged by over 9% yearon-year, according to the Central Bank
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deal would involve the transfer of all of Ahli’s assets and liabilities to Sohar, with Ahli’s shareholders receiving equity in the merged company. The proposed merger marks the latest development in the ongoing consolidation of Oman’s fragmented banking sector. Sohar merged with HSBC Bank Oman in August 2023 into a banking behemoth with more than OMR 7.4 million in assets as of December 2024. Oman is actively encouraging consolidations in the financial services sector to enhance efficiency and scale within a market of approximately five million people – with over a dozen active banks. Omani central bank followed the US Federal Reserve’s decision to cut
OMANI BANKS’ NET INCOME WILL LIKELY REMAIN BROADLY STABLE AT AROUND 1.1% OF TANGIBLE ASSETS IN 2025 – Moody’s
Banking and Finance news in the MEA market
interest rates by 25 basis points to 5% in December. “Rate cuts in the final three months of 2024 until 2026 will be negative for GCC banks, including the banks in the Sultanate, as interest-earning assets will reprice faster than interest-bearing liabilities,” said Fitch Ratings. The rating agency said that negative net repricing gaps at some banks will mitigate the impact on the Omani and Qatari banking sectors. Oman maintains a favourable economic outlook. The Sultanate’s focus on prudent fiscal management, coupled with the successful implementation of the social protection law, contributes to this positive trajectory. Continued acceleration of fiscal reforms is crucial to ensure fiscal sustainability, promote intergenerational equity and enable growth-oriented investments under Oman Vision 2040.
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CYBERSECURITY
Threats and Opportunities
Cybersecurity is a key priority for regional banks, with concerned executives kept on their toes developing solutions to remain ahead of bad actors equipped with the latest technology, to protect against damaging assaults and schemes
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CC economies entered 2025 with momentum despite rising protectionism, ongoing geopolitical tensions and uncertainty stemming from the Trump administration’s sweeping trade tariffs. The challenges are putting the robustness of financial services business models to the test, prompting bankers to seek novel approaches for generating
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value while simultaneously addressing increasing cybersecurity threats and privacy issues. Global rating agencies, S&P Global and Fitch Ratings, said that banks in the GCC can cope with the fallout from intensifying trade tensions, citing the limited direct impact of the US tariffs on regional economies and banks’ operating environments.
Banking and Finance news in the MEA market
The banking sector is at a crossroads. Banks in the GCC region are realigning to compete in new digital arenas organised around distinct customer needs to maintain a competitive edge and remain relevant in the market. However, the advancements in technology, such as the cloud, generative AI (GenAI) and blockchain, are creating new vulnerabilities for cybercriminals to exploit. To combat the threats, banks must continually invest in cybersecurity innovation and remain vigilant in their efforts to detect and prevent cyber threats. “The pace and scale of AI, like any sweeping innovation, is likely to bring benefits but could pose risks for financial stability,” according to the European Central Bank’s Financial Stability Review. Cybersecurity remains at the top of the executive agenda and banks in the Gulf region are allocating more resources
and investments to strengthen their cybersecurity defences. Cyber risk management is nothing new to the financial services sector, but the importance of a robust, comprehensive strategy has never been more critical and will only increase as institutions expand their technological footprint. “Cyberattacks continue to increase and financial-services companies face well-funded, highly organised and welltrained cyber criminals,” McKinsey said, adding that cybercriminals are adopting innovative technologies to aid in their attacks, including the use of GenAI as part of sophisticated phishing campaigns. Meanwhile, AI is reshaping nearly every industry and cybersecurity is no exception. A study by Acumen Research & Consulting forecasted that the global market for AI-based cybersecurity products was about $15 billion in 2021 and will surge to roughly $134 billion by 2030. The increasing sophistication of AI presents a larger cyberattack surface for financial institutions; however, banking executives in the GCC region are strategically leveraging the same AI advancements to bolster their cyber defences. The use of AI in the banking sector’s cybersecurity framework underscores the dual role of innovative technology in financial services as both a potential risk factor and a critical defensive tool.
State of play The bedrock of the financial industry rests on trust and in the digital age, cybersecurity is a cornerstone of that trust. Globally, banks are inherently in the crosshairs of increasingly sophisticated cyber threats due to the nature of their business, which involves handling financial assets, investments and the data their systems house. Banking customers and employees are vulnerable to attacks that range from fraudulent purchases to drained bank accounts. Ransomware attacks, phishing attempts and social engineering attacks
GCC BANKS LAID THE FOUNDATION FOR SUCCESS OVER SEVERAL YEARS BY INVESTING IN INFRASTRUCTURE AND SYSTEMS, INCLUDING EQUIPMENT AND SOFTWARE, TO MINIMISE THEIR EXPOSURE TO CYBER RISK WHILE ALSO BENEFITING FROM SUPPORTIVE REGULATORY FRAMEWORKS AND CYBER RISK REQUIREMENTS – S&P Global
are some of the more common tactics used by cybercriminals to infiltrate financial institutions’ networks. The constant sophistication of cyberattacks makes it essential for GCC financial institutions to stay one step ahead in their cybersecurity measures. “GCC banks laid the foundation for success over several years by investing in infrastructure and systems, including equipment and software, to minimise their exposure to cyber risk while also benefiting from supportive regulatory frameworks and cyber risk requirements,” said S&P Global. AI has emerged as both a boon and a bane in the realm of cybersecurity. A study by Accenture involving 600 global banks revealed a significant concern among cybersecurity executives regarding the rapid advancement of AI-generated scams. The survey indicated that 80% of bank executives feel overwhelmed by the speed at which AI-powered cyber threats are evolving. “The use of AI to create more convincing phishing attacks, such as the use of deepfakes, is on the rise, making it harder for individuals to distinguish between legitimate and malicious communications,” according to Baker Tilly. Ransomware remains one of the most pervasive threats to banks in 2025, with attackers increasingly targeting payment systems, customer data and critical infrastructure. Modern ransomware
groups operate like businesses, leveraging ransomware-as-a-service (RaaS) models and employing ‘double extortion’ tactics – stealing sensitive data before encrypting systems and threatening to leak it unless paid. “Cybercriminals are increasingly using advanced malware and encryption techniques to attack financial institutions, targeting banks and financial services and seeking to extort companies or sell stolen data on the dark web,” according to Swiss cybersecurity firm Acronis. “With the cost of data breaches in the Middle East averaging $8.7 million, financial institutions in the GCC are under growing pressure to fortify their cybersecurity measures to protect sensitive data and avoid significant financial and reputational damage.” The traditional perimeter-based security model is proving inadequate against modern cyber threats in today’s interconnected environments. Banks in the GCC region are increasingly adopting Zero Trust Architecture, which operates on the principle of “never trust, always verify.” The approach minimises access privileges and continuously authenticates users, thereby reducing the risk of unauthorised access and lateral movement within networks. “The Zero Trust Architecture model has the potential to elevate the organisation’s security posture and protect its assets against imminent
cyber threats,” said EY.
mea-finance.com
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CYBERSECURITY
The banking sector’s resilience hinges on its ability to innovate, share knowledge and prioritise cybersecurity as a cornerstone of customer trust. Banks in the Gulf region must adopt proactive measures – AI-driven defence, quantum readiness and regulatory alignment – while fostering industrywide collaboration.
Bolstering defences Banks in the Gulf region stand on the verge of transformational change. The adoption of the latest iteration of AI, data analysis and storage and cloud computing has created a generational explosion of opportunities in banking. With the GCC banking sector increasingly adopting AI to drive innovation and efficiency, the dual nature of the innovative technology’s impact on cybersecurity becomes a critical focal point. Capgemini said that AI and machine learning (ML) continue to revolutionise cybersecurity, enabling faster, more accurate threat detection and response. AI’s advanced capabilities make it a vital asset in combating cyber threats. Its potential to improve threat detection, automate incident response and adapt to evolving risks strongly supports its strategic integration into cybersecurity defences. Banks are drowning in a deluge of data, including billions of transactions, logins and daily interactions. Human analysts alone cannot sift through the vast trove of data, but this is where AI thrives. ML models analyse historical and real-time data to detect anomalies, such as unusual transaction patterns or unauthorised access attempts, with pinpoint accuracy. “AI models can monitor and identify which transactions present anomalies. The models use a combination of supervised and unsupervised learning to spot peculiar behaviour,” said PwC. Payment fraud, identity theft and account takeovers are increasingly difficult to detect with static security measures. While traditional fraud investigation methods struggle to keep pace with
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today’s complex schemes, AI’s ability to adapt and learn from evolving patterns makes it a powerful tool for detecting both known and unknown types of fraud. PwC said that stressed that GenAI keeps evolving by learning from past instances and adjusting its detection algorithms accordingly to ensure that banks are always ready to meet any imminent threat. Phishing remains a top attack vector, but AI is turning the tide. Banks across the GCC region are leveraging natural language processing (NLP) to scan emails for malicious links, suspicious language or impersonation tactics. Together with AI-driven anomaly detection, the layered approach can help financial institutions pre-empt both external and internal threats.
However, when a data breach occurs, rapid response is paramount. The integration of AI is proving to be a gamechanger in improving incident response times. Automated AI-powered systems can now autonomously address specific types of attacks by taking immediate actions such as isolating compromised devices, deactivating affected accounts and updating firewall configurations. “AI’s ability to automate quarantining affected systems, blacklist IP addresses and send alerts to security teams can help reduce the impact of cyberattacks, curtailing the severity of harm and downtime,” said PwC. A I i s revo l u t i o n i s i n g b a n k i n g cybersecurity by providing unprecedented speed, scale and predictive capabilities. However, realising its full potential
WITH THE COST OF DATA BREACHES IN THE MIDDLE EAST AVERAGING $8.7 MILLION, FINANCIAL INSTITUTIONS IN THE GCC ARE UNDER GROWING PRESSURE TO FORTIFY THEIR CYBERSECURITY MEASURES TO PROTECT SENSITIVE DATA AND AVOID SIGNIFICANT FINANCIAL AND REPUTATIONAL DAMAGE – Acronis
Infosys said that NLP examines customer communications to identify anomalies indicative of laundering risk, while relationship mapping algorithms trace funds flow through seemingly unrelated third parties. Data breaches in the financial services sector are a significant threat, leading to the exposure of sensitive records and impacting both financial institutions and their customers. While hacking and malware remain the primary causes of these breaches, other methods, such as unintentional insider leaks and payment card skimming, also contribute to the problem.
Banking and Finance news in the MEA market
requires a collaborative approach. Banks must integrate AI with strong regulatory frameworks, comprehensive employee training programs and sound ethical governance principles. The cybersecurity landscape is undergoing a period of rapid transformation. The AI-powered attacks and defences, the adoption of Zero Trust architecture, the complexities of API and cloud security, the persistent threat of ransomware and insider threats, the evolving regulatory environment, the future impact of quantum computing and the ongoing talent shortage all demand a proactive, adaptive and multilayered approach.
TRADE TARIFFS
TARIFF TSUNAMI:
Decoding America’s Trade Reset for Middle Eastern Financial Strategy Are we looking at the end of globalisation or a recalibration of global trade that will enhance it? Oscar Wendel Editor-At-Large, MEA-Finance, contends that those who anticipate the coming shifts and develop strategies to navigate an increasingly complex trade environment will be at an advantage
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or Middle Eastern financial institutions that have prospered by facilitating global capital flows, America’s tariff-centered trade strategy represents both a challenge and an opportunity within a rebalanced international economic architecture. Predicting the nature and extent of America’s ongoing restructuring of global trade dynamics is complex, but it will undoubtedly have profound implications for Middle Eastern financial institutions and investors. Sovereign wealth funds, banks and investors who have traditionally allocated significant capital to U.S. markets need to pay close attention. Nicolas Michelon, Managing Partner of Alagan Partners, a Dubaibased corporate geopolitics advisory, characterises the American approach as classic Trumpian negotiation tactics: “He promises you hell so that he doesn’t have to deliver it.” This strategy creates deliberate uncertainty—imposing tariffs, suspending them, reimposing them—
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Oscar Wendel, Editor-At-Large, MEAFinance
Banking and Finance news in the MEA market
to force countries into a binary choice: access to the American consumer market or maintaining China-centered supply chains. The initial policy established a baseline 10% tariff on “everything from everywhere” with additional “reciprocal tariffs” on countries perceived as taking unfair advantage of the United States. The formula used has little economic rationale, suggesting the policy is more geopolitical than economic, with China as the primary target. Trump’s tariffs are commonly seen as protectionist, yet proponents argue that he is not a protectionist or an isolationist. His objective in the tariff negotiations is the opposite: to break down trade barriers, create a fairer and more competitive global economy and promote global capitalism through free market activity. The immediate response to the tariff announcements, where more than 75 countries reportedly expressed interest in negotiating new trade arrangements with the U.S., supports this. Meanwhile, Ray Dalio, founder of Bridgewater Associates, warns that if this is not handled well, the outcome could be “worse than a recession.” Dalio identifies five concurrent forces reshaping the global economy: monetary cycles involving credit and debt, internal political conflict, shifting global power dynamics, technological change and natural disasters—a rare historical convergence with profound implications for global financial stability. Proponents of the current approach argue that comparisons to the Great
Depression are a misunderstanding of both history and current policy. They point to research by economists like Milton Friedman, who attributed the Depression primarily to misguided monetary policy rather than trade restrictions. It was the Federal Reserve’s tight monetary policy—raising interest rates to 6% in an economy with zero inflation—that transformed a market correction into a severe depression. Furthermore, artificially inflating wages and prices t h ro u g h g ove r n m e nt- s a n ct i o n e d cartels prolonged the recession. In contrast, the current administration’s approach combines tariffs with domestic deregulation, tax reduction and government spending cuts— policies diametrically opposed to those implemented during the Depression. Michelon warns that Middle Eastern financial institutions should be aware of China’s counter-strategies: “China has many other weapons at its disposal, such as their willingness to heavily manipulate their currency... They hold a sizable chunk of U.S. debt, which they are starting to get rid of, gradually replacing with nonU.S. dollar-dominated assets and gold. That’s a financial equivalent of the nuclear weapon.” This currency manipulation strategy appears to be underway, with the yuan devaluing more rapidly than the dollar. For Gulf states with dollarpegged currencies, this currency battle creates complex risks for trade financing, investment returns and purchasing power. The U.S. has taken the position that tariffs are sophisticated financial instruments serving multiple functions: revenue generation, leverage in negotiations and economic realignment. With projected annual revenues between $300 billion and $600 billion, compared to just $35 billion under previous frameworks, these tariffs represent a substantial fiscal shift that will affect U.S. Treasury markets, where many Gulf institutions hold significant positions. Despite concerns, initial data from the 20% China tariffs showed a modest 0.7% rise in U.S. price levels. Economic
models suggest that in a 10% tariff scenario, producers absorb 4%, currency adjustments handle another 4%, and consumers bear only 2% of the cost. The tariff strategy appears to aim at “re-industrialising America” by leveraging the country’s strengths in entrepreneurship and innovation. America has been the leader and main beneficiary of capitalism, and its innovation and entrepreneurship underpin it. By creating more equitable global trade conditions under the threat of imposing tariffs, American businesses
America, for Africa, for Central Asia.” The current trade tensions serve as a “wakeup call” that the established international trade architecture—”basically China as the main producer and the US as the main buyer”—has become unsustainable. This reconfiguration creates space for Middle Eastern economies to position themselves as alternative trade partners, production hubs and financial intermediaries.” Several strategic considerations emerge for banks, investment houses and sovereign funds across the Middle East.
THIS RECONFIGURATION CREATES SPACE FOR MIDDLE EASTERN ECONOMIES TO POSITION THEMSELVES AS ALTERNATIVE TRADE PARTNERS, PRODUCTION HUBS AND FINANCIAL INTERMEDIARIES and international trade will benefit in the long run rather than relying on tariffs that lead to economic contraction. If the tariff regime succeeds in strengthening the dollar’s fundamentals, it will have direct implications for Gulf currencies pegged to the US dollar. However, Dalio’s concern about a potential “breakdown of the dollar’s role as a store of wealth” introduces significant long-term risk factors. China’s gradual divestment from U.S. debt instruments amplifies this risk. Financial institutions throughout the Middle East should closely monitor these currency dynamics, as they will impact a range of factors, including remittance costs, trade financing terms and investment returns. While Michelon acknowledges that “everybody is losing” in the immediate term, he sees significant long-term opportunity for regions outside the U.S.China binary: “There is an opportunity for all countries in the world that are not U.S. and China—for the Middle East, the GCC, for Europe, for Southeast Asia, for Latin
Trade finance operations may need realignment as global supply chains adjust. Currency hedging strategies will require revision in anticipation of potential fluctuations in the dollar. Po r t fo l i o a l l o c a t i o n s s h o u l d b e recalibrated to account for the potential outperformance of U.S. industrial sectors over multinational corporations. Islamic banking institutions may experience increased demand for Shariah-compliant trade finance products as companies seek diverse financing sources to manage the complexities of cross-border trade. Sukuk issuances tied to infrastructure development in reshoring initiatives could attract significant investor interest. The arguments over whether the current tariff policies are a protectionist measure or a strategic leverage toward a more open global trading system are neither black nor white and will not be settled anytime soon. However, they will significantly influence how financial institutions throughout the Middle East position themselves for the future. mea-finance.com
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OPINION PIECE
WALKING THE INTEREST RATE TIGHTROPE:
Tax Pitfalls of Mispriced Intra-Group Loans In the gleaming skyscrapers of Dubai and across the UAE’s business landscape, a significant tax shift has quietly transformed how company groups handle their internal financing. Since June 1, 2023, the introduction of corporate tax has put a spotlight on those seemingly innocuous loans, guarantees and cash pooling arrangements between related companies
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he End of Casual Internal Financing
For years, UAE companies within the same group freely set interest rates and fees on internal financing with minimal scrutiny. A parent company might lend to its subsidiary at 1% interest simply because it seemed reasonable or perhaps offer interest-free financing as a matter of convenience. Financial instruments like intercompany loans, cash pooling, guarantees and factoring were implemented with rates often determined by simple preference rather than market conditions. The Federal Tax Authority (FTA) has dramatically changed this landscape. Now these arrangements must follow the “arm’s length principle” (ALP) – meaning related companies must treat each other as if they were independent entities negotiating in the open market.
The Wide Net of “Related Parties” The definition of “relatedness” extends far beyond what many business
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Ownership structures with 50% direct or indirect control Control mechanisms including profit rights, board seats, voting rights or “significant control” over another entity The concept of “Connected Persons” adds another dimension to this framework. This typically refers to relationships between individuals and companies, such as: When an individual directly or indirectly owns or controls a company When someone holds a director or officer position in an organisation W hen partners in unincorporated ventures have other related parties These definitions cast a wide net, capturing many business relationships that previously operated without tax implications in the UAE’s business ecosystem.
Documentation: The New Compliance Burden
Patryk K. Karczewski, Partner, Head of Tax Practice, AMERELLER
owners might expect under UAE tax law. Companies become related parties when they share: Family connections extending to fourth-degree kinship (think distant cousins)
Banking and Finance news in the MEA market
T h e F TA’s e x p e c t a t i o n s f o r documentation represent perhaps the most significant operational change for UAE businesses. For even straightforward financing arrangements, companies must now maintain comprehensive records that demonstrate their adherence to market principles. Take a simple intercompany loan as an example. The tax authority now expects businesses to document: A detailed analysis of loan terms, including issue date, duration, currency, repayment options and interest rate structure A thorough assessment of the borrower ’s creditworthiness to establish the lending risk
E vidence of comparable thirdparty loans with similar terms and credit profiles Calculated adjustments to establish an appropriate “arm’s length range” of acceptable rates This level of documentation transforms what was once a quick internal decision into a process more akin to commercial bank underwriting. For more complex instruments like cash pooling, factoring arrangements or hybrid financing, the documentation requirements become even more extensive.
The Hidden Danger: A Five-Year Window of Uncertainty What makes this compliance challenge particularly concerning is the FTA’s extended review period. Tax authorities have up to five years following the end of the relevant tax period to audit returns and make adjustments to relatedparty arrangements. This creates a prolonged period of uncertainty for businesses. An interest rate or financing fee that was established today might be challenged years later and without proper documentation in place, the business simply becomes defenceless against any adjustments made by the authorities. The time gap between implementation and potential audit dramatically increases business risk.
Severe Financial Consequences The financial implications of noncompliance extend far beyond simply paying the adjusted tax amount. When the FTA determines that an interest rate or fee falls below market value, businesses face: Additional tax liability on the adjusted income Late payment interest of 14% per annum on the underpaid amount P otential accumulated interest charges reaching up to 70% of the underpaid tax if the assessment comes near the end of the fiveyear window. These penalties can transform what seemed like a minor tax issue into a
significant financial burden that impacts both cash flow and profitability.
5. Consult with tax specialists familiar with the FTA’s evolving interpretations
An Unbalanced Power Dynamic
The New Reality of Related-Party Financing
The UAE Federal Supreme Court has established in key cases (No. 814 and 866 of 2020) that the relationship between tax authorities and taxpayers is regulatory rather than contractual. In practical terms, this means the FTA holds considerable enforcement power, while taxpayers face significant hurdles when challenging assessments. Even when businesses disagree with the FTA’s positions or assumptions regarding market rates for financial instruments, the appeal process can be arduous and
The introduction of corporate tax has fundamentally altered the landscape for intra- group financing in the UAE. Arrangements that were once straightforward internal decisions n ow re q u i re m a r ket va l i d a t i o n , exte n s i ve d o c u m e n ta t i o n a n d ongoing monitoring. For multinational corporations with established transfer pricing policies in other jurisdictions, this may represent a familiar extension of global standards.
THESE DEFINITIONS CAST A WIDE NET, CAPTURING MANY BUSINESS RELATIONSHIPS THAT PREVIOUSLY OPERATED WITHOUT TAX IMPLICATIONS IN THE UAE’S BUSINESS ECOSYSTEM unpredictable. This power imbalance underscores the importance of proactive compliance rather than reactive defence.
Practical Steps for Business Protection For UAE businesses utilising intra-group financing, several preventative measures can help maintain compliance: 1. Conduct a comprehensive review of all existing related-party financing arrangements 2. Develop benchmarking studies that establish market rates for each type of financing instrument 3. Implement formal documentation procedures that capture the commercial rationale for each arrangement 4. Consider periodic reassessments of long-term financing deals to ensure continued compliance
However, for local conglomerates and family businesses that have operated solely within the UAE’s previously tax-free environment, this represents a significant compliance challenge requiring new expertise and processes. The days of casual intra-group financial arrangements in the UAE are firmly behind us. As tax authorities continue to refine their enforcement approach, businesses that adapt quickly to these new requirements will minimise risk and avoid costly adjustments. Those who continue with business as usual face an increasingly uncertain future with potentially significant financial consequences. Is your business prepared for this new reality of related-party financing under UAE corporate tax? mea-finance.com
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PARTNER CONTENT
MULTI-SEGMENT, OPEN DIGITAL BANKING:
ADRIA’s Vision for the Future of Financial Services In today’s fast-evolving financial landscape, agility and customer-centricity are no longer optional, they are fundamental. The ability to serve diverse customer bases, integrate with broader digital ecosystems and adapt quickly to market shifts defines the future of banking
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t ADRIA Business & Technology, we view the convergence of open digital banking and a multi-segment strategy as the most powerful response to the challenges and opportunities faced by financial institutions across the Middle East, Europe and Africa.
Serving Every Segment with Precision
Redefining the Digital Banking Experience Open digital banking refers to the shift from closed, legacy banking infrastructures to modular, API-driven platforms. It enables banks to collaborate with fintechs, integrate external services and innovate faster, all while delivering a more personalised and accessible experience to end-users. At ADRIA, we have engineered our digital banking suite with openness at its core. Our API-first platform allows institutions to rapidly launch new services, connect with third-party providers and expand their digital reach without compromising security or compliance. From account aggregation and mobile onboarding to embedded finance and credit scoring, we
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which has also boosted innovative financial products and services across the region. However, even though some countries are more advanced in their digital transformation efforts, others are still in the early stages. For instance, there are variations in the level of digital onboarding adoption across countries in the region. While there are challenges to overcome, the trend towards digital banking in MEA is positive with significant potential to drive economic prosperity.” Philip Benton, Principal analyst at OMDIA
Reda Oummouy, Chief Sales, Marketing and innovation officer – ADRIA Business & Technology
enable our clients to build ecosystems that respond to real market needs. “Digital banking solutions, such as Adria’s all-in-one platform, have increased financial inclusion, enabled the unbanked population in MEA to access banking services through wallet electronic know your customer (eKYC). There is a trend towards partnerships between traditional banks and fintech startups,
Banking and Finance news in the MEA market
A major challenge for financial institutions today is to serve vastly different customer types through a single, scalable infrastructure. Retail users, SMEs, corporates and high-net-worth individuals all expect tailored, intuitive experiences that reflect their unique needs and behaviors. Our approach at ADRIA is deeply rooted in multi-segment architecture. We provide banks with the tools to launch and operate differentiated experiences for each customer group, all from a unified platform: • Retail banking modules enable rapid customer onboarding, card issuance and mobile wallet integration with biometric security and real-time alerts. • SME banking features include automated lending journeys, cash flow analytics and ERP plug-ins to support business growth. • Corporate banking capabilities cover liquidity management, foreign exchange, trade finance and multientity treasury dashboards.
This segmentation is further enhanced by advanced data analytics, allowing banks to generate insights and adapt offerings dynamically, from tailored loan rates to personalised saving plans.
A Platform Built for Collaboration and Growth The MEA region is uniquely positioned fo r d i g i ta l b a n k i n g g row t h , b u t banks must modernise to seize the opportunity. This requires more than just technology; it demands a platform that fosters ecosystem collaboration and scalable innovation. ADRIA’s solution is designed to be more than a system, it is a strategic enabler. Our modular architecture allows banks to start with what they need today, retail onboarding, SME lending or digital KYC, for example, and expand over time. Banks can integrate fintechs, insurers, telcos or government platforms with ease, creating value-added services that keep customers engaged and loyal. We have supported institutions across Africa, Europe and the Middle East in launching digital-native products without disrupting their core systems. For example, one of our banking partners in North Africa deployed a full SME digital channel, from online loan applications to real-time account management, in under four months, achieving a 60% increase in new business accounts.
Open APIs: Unlocking Personalisation and Efficiency O p e n b a n k i n g i s n ot j u st a b o u t connectivity; it is about unlocking hyper-personalised services. With secure, real-time access to customer data, banks can understand behaviors, anticipate needs and offer tailored products in context. ADRIA’s platforms are designed to deliver this level of intelligence. Using data streams from both internal systems and third-party services, banks can deliver predictive insights, trigger automated workflows and create proactive engagement across every segment:
OPEN BANKING IS NOT JUST ABOUT CONNECTIVITY; IT IS ABOUT UNLOCKING HYPER-PERSONALISED SERVICES •
Offer a personalised credit line based on recent cash flow behavior. • Recommend investment products based on life stage and risk appetite. • Trigger fraud alerts or budget tips based on transaction patterns. This level of automation not only improves customer satisfaction but also reduces operational costs and human error.
Future-Proofing with Technology and Compliance Technology innovation is only half the equation, compliance and resilience are just as critical. Our platforms are cloud-native, ISO-compliant and align with evolving regulatory frameworks in the MEA region, including open finance initiatives and data protection standards. We provide our partners with builtin tools for digital identity verification, consent management, audit logging and cybersecurity monitoring. This ensures that as banks innovate, they also meet growing expectations for data privacy and operational resilience.
A Strategic Partner for Banks in MEA At ADRIA, we don’t just provide platforms, we partner with banks to drive their transformation. Our teams work hand in hand with our clients to define digital strategies, map customer journeys, configure products and execute go-tomarket plans. Our presence in Dubai, Tunis and across Africa allows us to deliver localised support, backed by a proven track record of implementation success. We understand the nuances of banking in emerging markets and adapt our approach to meet both business and regulatory realities.
Adria for Empowering Banks to Lead the Change Open digital banking and multi-segment strategies are not trends; they are structural shifts shaping the next decade of financial services. Banks that embrace these models will gain speed, scale and strategic advantage. At ADRIA, we are proud to be at the forefront of this transformation, empowering financial institutions across MEA to launch smarter, faster and more inclusive digital offerings. As we engage with banking leaders at MEA Finance events and beyond, we continue to build the tools and partnerships that will define tomorrow’s financial landscape.
About ADRIA B&T ADRIA B&T is a leading provider of innovative digital banking solutions, with a strong presence across Africa, Europe and the Middle East. We offer a comprehensive suite of solutions designed to help financial institutions modernise their digital infrastructure while delivering enhanced customer engagement. Our offerings include Digital Onboarding with Ekyc, Mobile and Web Banking, Open Banking, Digital Lending, Digital Corporate Banking, E-Wallet, Digital Signing & Sealing, Agency Banking and Trade Finance. At ADRIA B&T, our mission is to empower financial institutions to lead in the digital age. We offer scalable, secure and forward-looking platforms that drive customer engagement and optimise operational efficiency. Our platform is built to ensure seamless customer interactions across multiple touchpoints, maintaining high standards of data security and regulatory compliance. mea-finance.com
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INSURANCE
Policy of Change The insurance business across the GCC, having grown in recent times, driven by robust economics and the implementation of mandatory health insurance schemes is undergoing transformation via M&A action and the implementation of AI
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he GCC insurance market has maintained remarkable resilience even when confronted with unprecedented weather-related losses, difficult global macroeconomic conditions and the competitive drive for market share expansion. S&P Global said that economic conditions in the GCC region will remain favourable in 2025, with economic growth, population growth and mandatory insurance schemes projected to drive insurance demand in most GCC countries this year. The industry has grown exponentially over the years on the back of robust economic growth under National Visions such as We the UAE 2031 and compulsory insurance. Gulf states’ economic diversification away from heavy reliance on oil, with significant infrastructure and tourism investments, is projected to fuel
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non-life insurance demand alongside positive regulatory developments. Growth in the GCC is forecasted to rebound to 4% this year, up from 1.8% in 2024, according to the Institute of Chartered Accountants in England and Wales, driven by robust non-oil sector activity positioning the region favourably to weather President Donald Trump’s tariff storm. The UAE and Saudi Arabia are the Middle East’s largest insurance markets, with health insurance being the dominant sector. The growth is attributed to the implementation of mandatory health insurance in the UAE and Saudi Arabia in 2005 and 2006, respectively, making it the region’s fastest-growing insurance product. Meanwhile, mergers and acquisitions (M&A) activity is heating up across the GCC’s insurance markets for both conventional and takaful players.
Banking and Finance news in the MEA market
“The GCC insurance sector is going through a significant phase of consolidation, with 10 M&A transactions completed or underway over the past 12 months,” Moody’s analysts said in a report while noting that the trend will continue in Saudi Arabia. The insurance industry is undergoing a fundamental transformation fuelled by artificial intelligence (AI), big data, automation and the cloud. The innovative technologies are driving unprecedented change, leading to greater efficiency, enhanced responsiveness and a stronger focus on customers. “Incorporating AI and insurance has many possible benefits, with greater efficiency being one of the most significant advantages. When combined with digitalisation and automation, AI may generate cost reductions for insurers around labour-intensive and repetitive tasks,” said Arthur D. Little. IBM research indicates that while industry leaders see generative AI (GenAI) as a powerful tool for boosting sales, customer experiences and organisational efficiency, they are wary about cybersecurity risks, operational challenges and potential inaccuracies or biases.
An enabling environment The Gulf region is experiencing a heightened demand for insurance
s e r v i c e s , f u e l l e d by e c o n o m i c development, rapid urbanisation and a rise in natural disasters and cyberattacks. One of the most significant drivers of growth in the GCC insurance market is economic diversification and infrastructure development. The GCC states are actively diversifying their economies away from a heavy reliance on hydrocarbon revenues. The trillion-dollar economic makeover involves large-scale infrastructure projects, including the development of new cities, transportation networks and industrial zones. The projects create a substantial demand for insurance products, including property, construction and engineering insurance. “Ongoing infrastructure developments, the introduction of mandatory insurance schemes, population growth and rate adjustments have been key growth drivers, particularly in Saudi Arabia and the UAE, where the size of insurance markets doubled over 2020-2025,” said S&P Global. GCC insurance markets are projected to see a 5%-15% top-line growth in 2025, with the UAE and Oman expecting further growth spurred by post-April 2024 flood rate increases. The April 2024 flash floods across the UAE, Oman and Bahrain underscored a growing pattern of intensified and more frequent extreme weather events in the GCC, a region that has witnessed seven storms and cyclones in the past five years, according to Moody’s. Mandatory insurance schemes are significantly driving growth in the GCC insurance market. Obligatory health insurance in Saudi Arabia, the UAE and Qatar has substantially increased gross written premiums (GWPs) in the health sector. Similarly, compulsory motor insurance is expanding alongside rising vehicle ownership and infrastructure development. These government mandates not only increase insurance penetration but also foster consumer awareness, leading to greater adoption in voluntary segments such as life and savings. Global insurance ratings agency AM Best said that the repeated collaboration
between the insurance industry and governments in the GCC has resulted in the development of innovative mandatory insurance products, creating opportunities for insurers in that market. The UAE initiated the Workers’ Protection Program in 2018 and subsequently introduced the mandatory Involuntary Loss of Employment (ILOE) scheme in 2023. Simultaneously, Oman, Qatar and Bahrain are considering the implementation of their long-awaited mandatory medical insurance schemes. The GCC region has a rapidly growing population, driven by both natural increase and a large influx of expatriate workers. The GCC states’ unique demographics – a youthful population with over 50% under the age of 30 and a substantial expatriate workforce comprising nearly 50% of residents – create a strong demand for specialised insurance products. Expats primarily require health, life and property insurance, while younger demographics are increasingly interested in savings and investment-linked policies. “The UAE, Oman, Saudi Arabia, Qatar and Kuwait continue to broaden their compulsory medical insurance requirements. Saudi Arabia has also widened its compulsory motor, domestic worker, pilgrimage and travel protection coverage, while the UAE has done the same for loss of employment and workers’ protection insurance,” said Moody’s. Similarly, the development of robust regulatory frameworks across the GCC region is a key driver of growth, fostering investor confidence, safeguarding policyholders and aligning with international standards. The GCC insurance sector’s trajectory reflects a region embracing change. With a projected market value of $44.4 billion by 2028 from $34.3 billion in 2023, according to Alpen Capital, growth is underpinned by strategic imperatives and adaptive innovation.
Capturing value The GCC insurance sector, including both conventional and takaful companies, is experiencing a wave of M&A driven by
the pursuit of inorganic growth, improved operational efficiency, expanded market share and access to new customer s e g m e nts , a l o n g s i d e i n c re a s i n g regulatory and competitive pressures. “G C C i n s u ra n c e m a r ket s a re characterised by their fragmented and highly competitive nature, with a high number of insurers vying for limited available insurance premiums,” according to AM Best. S&P Global said that stiff competition, weak capital buffers and regulatory incentives have contributed to M&A in Saudi Arabia since 2018, with a similar trend being forecasted in the UAE, where about 20/25% of listed insurers operate below minimum solvency capital requirements. Analysts are projecting further capital needs and consolidation in 2025, with a heightened risk of regulatory action if insurers fail to rebuild their capital buffers. M&A typically allows insurance companies to enter new markets and increase their sales more quickly than organic growth would permit. Abu Dhabi National Insurance Company (ADNIC) completed the acquisition of a 51% stake in Allianz Saudi Fransi Cooperative Insurance Company in April 2024, a deal that marked the UAEbased insurance firm’s entry into the Saudi market, the largest in the GCC, enhancing its regional footprint. “The GCC insurance market remains significantly fragmented, with the region’s $40 billion of annual premium revenue shared between around 190 competing insurance companies,” Moody’s said while noting that around 50% of the premium volume is earned by the top five insurers in each market. Earlier in January, Saudi Arabia’s sovereign fund, the Public Investment Fund, also completed the acquisition of a 23.08% stake in Saudi Reinsurance Company (Saudi Re). The investment is expected to enable the company to scale up its domestic capacity to meet rapid local growth and strengthen the kingdom’s insurance sector. mea-finance.com
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INSURANCE
Saudi Arabia’s General Authority for Competition approved the Mediterranean and Gulf Insurance and Reinsurance Company’s (MEDGULF) proposed merger with Buruj Cooperative Insurance Company (Buruj). Under the proposed deal, MEDGULF will be the merging company through a share-swap deal. Last February, Saudi Enaya Cooperative Insurance Company signed a non-binding MoU with Salama Cooperative Insurance Company to explore a possible merger as M&A activity in the GCC insurance markets gathers momentum. Solidarity Bahrain secured the Central Bank of Bahrain’s final approval for the acquisition of Bahrain National Insurance Company and Bahrain National Life Company for $199 million (BHD 75 million) in cash. Once completed, the acquisition is projected to nearly double Solidarity Bahrain’s scale in the Gulf state, with a combined annual GWP exceeding BHD 100 million. Consolidation allows GCC insurers to diversify their product range, distribution network and customer base while unlocking synergies across various operational areas, according to Moody’s. Dubai-based Sukoon, formally Oman Insurance, emerged stronger following its acquisition of Arabian Scandinavian Insurance (ASCANA), a deal that advanced the insurance firm’s product offerings and expanded its market reach. ASCANA rebranded as Sukoon Takaful last June. Last September, Sukoon also completed the acquisition of Chubb Tempest Life Reinsurance and Assicurazioni Generali’s life insurance portfolios in the UAE. Similarly, National Life & General Insurance Company and RSA Middle East merged to create Liva Insurance, a regional insurer with 1.5 million customers in the UAE, Oman, Saudi Arabia, Kuwait and Bahrain. The GCC insurance sector is experiencing a typical maturation pattern, where dominant players enhance their capabilities and set higher benchmarks. Thus, the industry is consolidating, leaving a reduced number of powerful insurers that leverage economies of scale.
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GCC INSURANCE MARKETS ARE CHARACTERISED BY THEIR FRAGMENTED AND HIGHLY COMPETITIVE NATURE, WITH A HIGH NUMBER OF INSURERS VYING FOR LIMITED AVAILABLE INSURANCE PREMIUMS – AM Best
Unlocking the potential of AI The insurance sector, long regarded as conservative and paper-heavy, is undergoing a profound transformation driven by the convergence of data and AI. The industry has relied on data for centuries to make informed decisions and provide tailored coverage to its customers. It is the backbone of the industry, serving as the force behind critical functions that drive the sector’s success. “The insurance industry has long been at the forefront of managing risks, yet the rapid emergence of interconnected technologies is revolutionising the risk landscape at an unprecedented pace,” Pravina Ladva, Group Chief Digital & Technology Officer at Swiss Re Group, said in a blog post, adding that innovative technologies like AI not only introduce new risks but render traditional risk models outdated. With traditional insurance models giving way to data-driven decision-making, automation and hyper-personalisation, insurers must embrace the evolution not merely as a necessity for survival but as a crucial strategic imperative. GCC insurers are increasingly leveraging AI-powered algorithms to enhance risk assessment, fraud detection and policy pricing with exceptional precision. By analysing vast datasets, both structured and unstructured, ranging from customer behaviour to meteorological trends, AI models furnish underwriters with deeper and more granular insights. “The future of insurance hinges on integrating data and AI technologies effectively. With strategic implementation,
Banking and Finance news in the MEA market
insurers can optimise their operations, elevate customer experiences and stay at the forefront of the dynamic insurance landscape,” according to Arthur D. Little. The use of innovative technologies can also aid in detecting and preventing fraud by analysing data patterns and identifying suspicious activity, which can help insurers save money by reducing the number of fraudulent claims they pay out. For an insurer, claims processing is one of the most critical insurance operations. Historically, claims processing has been slow and cumbersome, but thanks to automation and AI, it has seen dramatic improvements. AI and machine learning (ML) algorithms can facilitate and speed up the claims handling process without human intervention. ML can help to determine aspects of claims such as image recognition, data unification, data analysis and determine settlement amounts. “While many insurers remain in the proof-of-concept stage, some are starting to integrate gen AI into prioritised areas like claims and customer service,” according to Deloitte. Overall, innovative technologies such as the latest iteration of AI can empower insurers to revolutionise their operations and ensure their continued relevance. However, the evolution necessitates a careful equilibrium between innovation and the safeguarding of user interests. To do so, regulators in the GCC region must continue developing regulatory frameworks that facilitate the adoption of AI while proactively addressing the potential risks associated with its implementation.
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TRANSACTION BANKING
Command of Chain Transaction banking, essential to global supply chains, has emerged as a growth frontier in corporate banking and our region is taking several leads in it with innovative and sophisticated service offerings, digitally native enterprises bypassing traditional channels, a highly strategic location, abundant resources and increasingly diverse economies
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he expansion of gas production in Qatar, implementation of e c o n o m i c t ra n sfo r m a t i o n projects in Saudi Arabia and non-oil economic growth in the UAE and Bahrain will underpin the resilience of GCC banks in 2025. Resilient economic conditions, transformation plans, robust project pipelines and healthy demand support the growth of the transaction banking sector. EY projected that economic resilience, coupled with ongoing transformation plans, a robust pipeline of projects and healthy demand, will provide a solid foundation for the expansion of the transaction banking industry. The transaction banking industry’s role in trade and supply chain finance places it in a crucial position to support global economies. Long viewed as the often unsung hero of the financial world,
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transaction banking, which encompasses cash management, payments, trade finance and securities and custody services, has emerged as a critical growth engine for banks and a linchpin of global trade. “The transaction banking landscape is rapidly evolving, driven by corporate clients’ growing demand for digitalisation, real-time insights and advanced cash management capabilities,” said KPMG. Banks in the GCC region are playing a vital role in facilitating international trade by providing their corporates with a wide array of offerings, including transactional banking, which integrates cash management, correspondent banking and trade finance. “The evolution of the needs of corporates’ treasury management presents an opportunity for banks to differentiate themselves by offering new,
Banking and Finance news in the MEA market
more comprehensive and sophisticated services,” according to EY. Transaction banking’s support of realtime payments and the advancement of cross-border payments around the globe remains a top priority. Beyond faster access to funds, real-time payments enable the seamless transfer of valuable data alongside the transaction. The instant flow of information, including details like invoices, dates and purchase orders, empowers companies to optimise their financial operations and make more informed decisions. Meanwhile, digitisation and automation are fundamentally reshaping the transaction banking landscape. The revolution is characterised by a focus on creating seamless client experiences and enhanced connectivity, providing realtime access to critical data and offering sophisticated tools for managing liquidity. GCC’s transactional banking and payments ecosystem is once again showing resilience as it navigates ongoing geopolitical tensions and the effects of US trade tariffs, which threaten to weaken the global economy and fuel inflation. The region’s strategic location, abundant resources and increasingly diverse economies have significantly amplified its influence on global trade flows and its importance within international financial markets.
Building a robust system The prevailing macroeconomic climate has amplified the significance of working
capital metrics as crucial barometers of an organisation’s financial well-being, compelling companies to increasingly prioritise strategies for optimising liquidity and effectively deploying cash reserves. “The changing treasury landscape, coupled with the transition to digital, has meant that corporates are increasingly looking at scalable and flexible treasury setups that enable real-time visibility, efficient funds control, cash positioning functionalities and business support through constant change,” according to EY. The digitisation of transaction banking is no longer optional. Corporates demand seamless, API-driven solutions that integrate with their ERP systems, provide real-time liquidity visibility and automate workflows. To adopt a holistic stance to digital transformation that goes beyond individual operations, products and processes, banks’ entire business model must be evaluated to achieve a true overhaul. Banks in the GCC region are responding by shedding legacy infrastructure and embracing open banking, APIs, artificial intelligence (AI) and blockchain. Mirroring the broader banking and finance sector, transaction banking is undergoing rapid transformation to meet shifting client demands. Significant trends are reshaping the transaction banking and payments landscape within the GCC – a region historically characterised by a firm reliance on cash transactions. “Transaction banking is changing to fill the need for increased agility and scalability and meet stricter compliance mandates on a global level,” Amazon Web Services said in a report while noting that legacy technology and operations hinder innovation and speed to market. Integrating AI with spreadsheets yields significant time savings, freeing up valuable resources for tasks like forecasting cash flow patterns and addressing hurdles such as automated data collection and the seamless integration of information from diverse sources. Corporate treasurers can generate highly precise forecasts and monitor deviations effectively by leveraging
THE TRANSACTION BANKING LANDSCAPE IS RAPIDLY EVOLVING, DRIVEN BY CORPORATE CLIENTS’ GROWING DEMAND FOR DIGITALISATION, REAL-TIME INSIGHTS AND ADVANCED CASH MANAGEMENT CAPABILITIES – KPMG
algorithms, particularly machine learning (ML), for model refinement. The use of AI in transaction banking can translate into a substantial competitive advantage. Though the digital transformation of transaction banking is essential for bolstering trade and the global supply chain, the sector has, in practice, seen a comparatively gradual modernisation of its long-standing processes. Digitalisation offers a significant opportunity to enhance documentation, testing protocols and risk governance frameworks, satisfy evolving regulatory demands related to risk, strengthen anti-money laundering measures and reinforce change control procedures. Banks across the GCC are adopting cutting-edge technologies to replace conventional, paper-intensive workflows, aiming for real-time transparency, streamlined automation and heightened security measures.
A market of opportunity Trade finance, a core component of transaction banking, is undergoing a significant evolution. Though traditional instruments such as letters of credit and guarantees remain crucial for facilitating international trade, new digital solutions are emerging to streamline processes, reduce costs and enhance transparency. Blockchain technology, for instance, has the potential to revolutionise trade finance by providing a secure and immutable platform for tracking goods, documents and payments. Furthermore, the rise of supply chain finance solutions is transforming how businesses manage
their working capital and optimise their relationships with suppliers and buyers. Digital platforms that offer features such as invoice discounting and reverse factoring are gaining traction, providing businesses with greater flexibility and access to financing throughout their supply chains. “The open and versatile nature of blockchain and Distributed Ledger Technology (DLT) means some processes, such as payments, can be completely automated,” Germany’s Commerzbank said in a report while noting that combined with sensors connected to the Internet of Things, blockchain can directly link financial transactions with the underlying physical exchange of goods. Meanwhile,API integration is transforming the way banks interact with their corporate clients and third-party providers. APIs enable seamless and secure data exchange between different systems, allowing for the integration of banking services directly into clients’ enterprise resource planning (ERP) and treasury management systems, which enhances efficiency, reduces manual processes, and provides a more holistic view of financial data. The advent of open banking and open finance regulations is empowering corporations through APIs. The digital pathways enable unified management of the entire treasury ecosystem, whether accessed via an ERP, fintech solutions or a bank’s portal. Open banking has emerged as a cornerstone of transaction banking’s digital evolution in the Gulf region. Banks mea-finance.com
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TRANSACTION BANKING
in the GCC are forging interconnected ecosystems by adopting open banking frameworks and APIs. The ecosystems foster effortless service integration, elevate customer journeys and fuel a wave of innovation. Furthermore, transaction banking is being embedded into platforms used by businesses every day, whether it is an e-commerce checkout, a logistics ERP or a freelancer management tool. “Embedded finance is a once-in-a-lifetime opportunity for financial institutions to build a whole new class of delivery channels for their corporate services, penetrating the market through collaborations with ERP vendors and fintech firms,” according to Oracle. Banks are partnering with Software as a service (SaaS) providers, marketplaces and B2B platforms to integrate cash management, payments and even trade finance directly into business workflows. The trend is especially strong in the GCC region, where digital-native enterprises are bypassing traditional channels.
Charting a new course The payment landscape is undergoing a significant transformation. For financial institutions with growth ambitions and a desire to remain competitive, understanding and responding to these market innovations is not just important – it is essential. Real-time payments are fundamentally reshaping business transactions by providing near-instantaneous fund transfers. The speed, typically meaning funds are sent and received in under 10 seconds, is moving real-time payments beyond its traditional consumer base to become an increasingly vital tool for corporates. Businesses are leveraging RTP to enhance liquidity management, streamline operations by reducing reliance on slower and costlier intermediaries and ultimately gain a competitive advantage in today’s fastpaced digital financial landscape. “With the provision for anytime settlement, there is no set cut-off time
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EMBEDDED FINANCE IS A ONCE-INA-LIFETIME OPPORTUNITY FOR FINANCIAL INSTITUTIONS TO BUILD A WHOLE NEW CLASS OF DELIVERY CHANNELS FOR THEIR CORPORATE SERVICES, PENETRATING THE MARKET THROUGH COLLABORATIONS WITH ERP VENDORS AND FINTECH FIRMS – Oracle
for end-of-day positions. Corporate customers need to redefine their internal procedures for managing cash positions and forecasting future cash flows to optimally manage financial positions overnight and on weekends and holidays,” according to EY. A study by ACI Worldwide revealed that the Middle East is the fastest-growing real-time payments market globally, with transactions expected to grow at a CAGR of 28.8% from 855 million in 2023 to 3 billion by 2028. Corporatetreasurers are nowclamouring for real-time liquidity management, not just for operational efficiency but for strategic cash deployment. Banks that can offer realtime dashboards, instant payments and 24/7/365 access to services are emerging as preferred partners. The shift is creating new business models around on-demand liquidity, cross-border real-time payments and embedded finance. “Real-time payments have become ingrained in the fabric of the payment landscape and have spawned new expectations and demands from businesses to their financial services providers,” according to BNY’s The Current State of Play of Emerging Payments report. Real-time payment platforms such as the UAE’s Aani instant payment platform, Bahrain’s FAWRI+, SARIE in Saudi Arabia and similar initiatives in Oman, Kuwait and Qatar are transforming the expectations around speed and transparency. The widespread adoption of real-time payments across the region underscores a strong
Banking and Finance news in the MEA market
push towards instant payments and the broader digitisation of financial services. “The contributions from real-time payments to Bahrain’s GDP are expected to rise from $537 million in 2023 to $677.6 million by 2028, 1.32% of formal GDP or equivalent to the output of 12,500 workers,” according to ACI Worldwide. Similarly, Qatar’s payments industry is set for notable growth, with total revenues projected to hit the $4.15 billion mark by 2028, according to Boston Consulting Group. Real-time payments are revolutionising the Gulf region’s financial landscape by removing the traditional bottlenecks of time and inefficiency. The shift is not just about faster transactions; it is laying the groundwork for entirely new business models and applications that were previously unimaginable. Transaction banking is no longer the quiet engine of corporate banking; it has emerged as the growth frontier. The confluence of real-time infrastructure, intelligent automation, open ecosystems and purpose-driven finance is reshaping the industry. To stay ahead, banks in the GCC region must move beyond incremental improvements and embrace platform thinking, agile innovation and clientcentric design. The future of transaction banking will not be defined by banks that offer the fastest payments but instead by financial institutions that best understand their clients’ evolving needs and respond with agility and foresight.
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TRANSACTION BANKING
Navigating Challenges Deyana Cherneva Head of Global Trade Solutions, Middle East, North Africa and Turkiye at HSBC provides a current market overview of the challenges and the developments that are realigning supply chains and also building the growth of our region’s trade finance activities
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iven the recent upheavals and uncertainties relating to tariffs and trade, how will regional banks likely respond to the consequent shifting supply chains? The tariff situation is set to reshape emerging trade corridors, and for banks, our role is to help clients manage risks, seize new opportunities and enhance the resilience of their supply chains – whether existing or new. We expect both intra-regional trade and trade between Asia and MENAT to continue to accelerate, and in particular, trade from India and China into MENAT.
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Deyana Cherneva, Head of Global Trade Solutions, Middle East, North Africa and Turkiye, HSBC
Banking and Finance news in the MEA market
With our deep network and unique position as the leading international bank in both Middle East and Asia, HSBC is well-placed to support clients with local knowledge as they expand and adapt their suppliers, buyers into new markets or also look to set-up corporate offices in the GCC.
How can regional banks assist with any short- or medium-term difficulties trading businesses may face in the current global economic environment? A key focus is in helping clients to manage risk and uncertainty. Solutions like trade loans for pre-and-post shipments can help customers who are facing challenges bridge some of the timing gaps they may suddenly have between fulfillment and payment. Structured trade products can also help support our clients but also the suppliers within their supply chain and even Letters of Credit provide additional risk mitigation when trading with new buyers and suppliers. As the world’s largest trade bank with over 5,000 trade specialists across a
footprint covering 90% of global trade, HSBC is uniquely place to help clients understand the trade environment and help solve problems with innovative product solutions.
Transaction banking technology brings key benefits to trading communities, so does it follow that our current challenges will be handled more effectively than before it was adopted? There are many learnings from the Global Pandemic in 2020 which show that the ability to digitise in trade finance is a key differentiator. It can be and indeed, has often proved to be a lifeline for businesses, and will help to control risk especially during times of uncertainty or when companies are seeing new suppliers and buyers across markets. For example, HSBC’s TradePay allows clients in the Middle East to access trade loans within minutes, giving companies quicker access to cash flow management and flexibility in their trade transactions, and the HSBC Trade Solutions platform which uses advanced technology to provide clients with real-time data analytics and insights so that companies can monitor their transactions, assess risk and make informed decisions in real time – putting them at a significant competitive advantage in an increasingly fast-paced market.
What effects are Real Time Payments systems such as Buna and AFAQ having on regional trade finance activities? Innovations in the region’s payments ecosystem are having a significant impact
WE EXPECT BOTH INTRA-REGIONAL TRADE AND TRADE BETWEEN ASIA AND MENAT TO CONTINUE TO ACCELERATE, AND IN PARTICULAR, TRADE FROM INDIA AND CHINA INTO MENAT on trade finance. Streamlined payment infrastructures will support supply chain financing by reducing liquidity risks and ensuring timely payments to suppliers, which is critical in sectors like manufacturing and agriculture and can help boost financial inclusion across sectors. For financial institutions, Real Time Payments (RTP) systems are also enabling the development of more innovative trade finance products, including dynamic discounting, and are allowing for greater visibility on transactions. However, while moving in the right direction, the streamlining of infrastructure is still a work in progress, with adaptation costs, uniformity of development and cybersecurity risks all acting as challenges to implementation. In short, as the market continues to mature and embed, we expect that the long-term effects of RTP systems will be to drive greater financial inclusion, lower costs and deepen trade connectivity, particularly for emerging markets and SMEs. Background 1. The primary benefits of RTP systems for companies include: 2. Greater access to finance – with
REGIONAL TRADE FINANCE SERVICES ARE INCREASINGLY ALIGNING THEIR STRATEGIES TO SUPPORT THE GCC’S GROWING GLOBAL INFLUENCE AND RAPID GROWTH
increased transparency and efficiency that makes it easier for small and medium sized enterprises to benefit off trade finance solutions; 3. Greater supply chain visibility for companies, as real time payments and messaging give more visibility into payments and logistics flows, allowing companies to optimise their supply chains; 4. E nhanced risk monitoring, due to detailed transaction data that enables the finance institutions to better evaluate creditworthiness of companies, reduce risks and do deep-tier financing.
How well are regional trade finance services adapting to the growing economic strengths of the GCC? Regional trade finance services are increasingly aligning their strategies to support the GCCs growing global influence and rapid growth. HSBC has been moving in lock-step in with the region’s economic transformation and shift away from a hydrocarbon dominated economy to a more diverse, innovative-driven economy. In tandem, we have been deepening our expertise in emerging sectors such as technology, healthcare and industrials to support the broader transformation framework of the GCCs ambitious economic plans. We are also embedding ESG across our sectors and product propositions, as well as accelerating digitisation in line with the GCC strategy to help improve efficiency, reduce fraud and improve operations. mea-finance.com
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TACKLING FINANCIAL CRIME IN THE GCC
Unremitting Struggle Banks and their clients are assailed from all sides by an unending and increasingly sophisticated series of attacks by financial criminals. Abrar Khan Senior Client Manager for BFSI at GBM Dubai talks about these threats and how they are being managed and even neutered
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ow much more sophisticated are instances and methods of financial crime in our region than was the case at the start of this decade?
Over the past few years, financial crime has evolved in both scale and complexity. At the beginning of this decade, financial i n st i t u t i o n s we re p re d o m i n a nt l y tackling conventional fraud methods— simple account takeovers, forged d o c u m e nta t i o n o r u n a u t h o r i s e d transfers. Today, the situation is far more intricate. The digital acceleration seen across the GCC has brought immense convenience and efficiency but has also expanded the threat landscape. Criminal actors are increasingly leveraging advanced technologies and cross-border tactics to orchestrate fraud. Synthetic identities, social engineering attacks, manipulation of trade documentation and the misuse of digital channels have become more common. Fraudsters are highly organised, often operating across jurisdictions, and continuously adapt to evolving banking controls. It is important to recognise, however, that financial institutions in the GCC have kept pace admirably. Banks have invested significantly in cutting-edge
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Abrar Khan, Senior Client Manager – BFSI, GBM Dubai
fraud detection platforms, real-time analytics and AI-powered transaction monitoring. More importantly, the region’s regulatory authorities have shown commendable leadership in driving proactive reforms and setting clear expectations around compliance and risk management.
Excluding cyber threats, what currently are the most prominent types of financial crime occurring in our region? While cybersecurity remains a key concern, other forms of financial crime— particularly those that exploit systemic or procedural gaps—continue to be prevalent. Among the most notable are:
Banking and Finance news in the MEA market
•
Trade-based money laundering (TBML): Often involving the misrepresentation of the value, quantity or quality of goods and services, TBML is used to legitimise illicit funds through seemingly genuine commercial transactions. • Document and identity fraud: This includes the use of forged documents for loan approvals, fake KYC credentials or the manipulation of financial records. • Insider abuse and collusion: Internal fraud—whether through unauthorised approvals, conflicts of interest, or process circumvention— remains a risk area, particularly in high-value sectors. • Over/under-invoicing in procurement and vendor management: These schemes often go undetected due to the complexity of corporate finance flows and the layered nature of commercial relationships. To address these challenges, banks are increasingly combining ruleb a s e d d ete ct i o n w i t h m a c h i n e learning and behavioral analytics. The goal is to identify anomalies not just in transactions, but in patterns of interaction, location, device use and counterparties involved.
In what sectors of the regional banking markets – retail, corporate etc. – do the most instances of financial crime occur? From a volume perspective, retail banking is the most exposed due to its large and growing customer base. Fraudulent account access, identity misuse and scams via social media or messaging platforms are common, especially as digital channels become more mainstream. That said, the corporate and trade finance segments often experience more high-value frauds. These tend to involve
sophisticated schemes like false invoicing, manipulation of letters of credit or the misuse of supply chain documentation. Given the larger transaction sizes, even a single incident can have substantial financial and reputational impact. Additionally, sectors like real estate financing, SME lending and cross-border remittance services can sometimes be targeted for financial crime, especially where due diligence or documentation oversight is limited. Fortunately, banks in the region are becoming more datadriven and risk-sensitive, employing stricter onboarding processes and dynamic credit risk frameworks to mitigate these vulnerabilities.
Despite sophisticated technology and large budgets reserved for fighting financial crime, how much do banks need to rely on customers and clients to curb its effects? The role of customers is absolutely vital. Technology is an enabler, but financial crime prevention ultimately depends on
are helping empower users to identify red flags early. Moreover, when customers promptly report unusual activity, it enables banks to act faster—freezing accounts, reversing unauthorised transactions or alerting law enforcement. The combination of informed customers and proactive institutions forms a strong first line of defence.
may be insufficient. Banks must now adopt multi-factor, behavioral and biometric security measures to stay ahead. That said, regional banks are responding admirably—investing in agile compliance frameworks, robust thirdparty vetting processes and adaptive risk-scoring models.
What do you consider to be the current greatest threats regional banks and FSIs face?
What are the most recent developments and successes of regional banks in the fight against financial crime?
In today’s environment, the most pressing threats stem from three areas: 1. Regulatory risk and compliance pressure: As global AML, CTF and sanctions frameworks become more stringent, banks must ensure their controls, policies and reporting mechanisms are up to international standards. Fortunately, regulators in the GCC have done a fantastic job aligning with FATF guidelines, issuing clear directives and supporting institutions in their compliance journeys.
THE GOAL IS TO IDENTIFY ANOMALIES NOT JUST IN TRANSACTIONS, BUT IN PATTERNS OF INTERACTION, LOCATION, DEVICE USE AND COUNTERPARTIES INVOLVED awareness, vigilance and communication between banks and clients. Many fraud schemes, especially those involving social engineering, rely on human error—such as clicking a malicious link, sharing account credentials or trusting a fraudulent caller. Banks across the UAE and the wider region have recognised this and are doing an excellent job of investing in customer education. Initiatives like multilingual fraud awareness campaigns, in-app alerts, customer verification prompts and secure communication channels
2.
3.
Third-party and ecosystem risk: As banks adopt open banking models, partner with fintechs or move services to the cloud, they are integrating with more external systems. Managing the security, integrity and compliance posture of these extended networks is now a top priority. Fraud enabled by emerging technologies: With the advancement of deepfake technologies and AI-generated identity spoofing, traditional authentication methods
There has been tremendous progress in recent years. One of the most impactful developments has been the adoption of AI-driven analytics, which help banks identify suspicious patterns across millions of transactions. These systems are no longer static—they evolve based on real-time data, allowing banks to preemptively flag emerging threats. Another success is the improvement in Suspicious Activity Report (SAR) quality. Banks are now equipped with case management tools that allow them to compile, analyse and escalate potential red flags more efficiently. Regulators have commended institutions for their proactive posture and transparency, contributing to better regional oversight. We have also seen the rise of industry collaboration platforms. Through consortiums, sandbox environments and public-private initiatives, banks are sharing intelligence and aligning on best practices. This spirit of cooperation—encouraged and supported by regulators—has been instrumental in reducing duplication, closing gaps and boosting industry-wide resilience. At GBM, we are proud to support many of these efforts. Our work with financial institutions includes deploying real-time transaction monitoring platforms, enabling fraud analytics with behavioral biometrics, and enhancing infrastructure resilience to meet regulatory requirements. We view our role not just as a technology partner, but as a strategic advisor helping banks future-proof their risk posture in a rapidly changing landscape. mea-finance.com
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PARTNER CONTENT
THE FUTURE OF ENTREPRENEURSHIP:
Why Financial Acumen is the New Competitive Edge Rachelle Yilmaz Group CEO of Ausphin Group and Founder of Visume App gives an emphatic account of why today’s entrepreneurs can only realistically hope to succeed if their approach to running their business is highly finance-centric
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n today’s fast-evolving economy, entrepreneurship is no longer just about innovation and passion, it requires financial precision. The founders poised to succeed in the coming decade will be those who blend visionary thinking with strong financial discipline. In a world where capital is abundant yet selective, entrepreneurship and finance have merged into two sides of the same coin. Over the past 13 years, I have built my businesses without external investors, relying solely on expertise, resilience and the commitment of my team. This journey has underscored one critical truth: the entrepreneurs of the future must be both builders and bankers. In an environment as volatile as today’s,
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financial stewardship is the backbone of sustainable growth—not just an added skill.
A New Era of Entrepreneurship T h e p a st d e c a d e c e l e b ra te d entrepreneurs who raised millions based on little more than an idea. But the market downturns of 2022-2024—marked by rising interest rates, venture capital pullbacks and collapsing tech valuations, highlighted a painful reality: capital is finite and financial ignorance is fatal. The most successful founders today think like investors, not just dreamers. They demand profitability, margin improvements and viable unit economics. Financial literacy, once reserved for CFOs, is now a musthave language for CEOs. In my ventures, from education and migration consulting to recruitment, I have prioritised cost control, return on investment and resource optimisation. This approach is increasingly reflected in startups across emerging markets, fundamentally reshaping the nature of modern entrepreneurship.
Financial Acumen: The Core Competency Rachelle Yilmaz, Group CEO of Ausphin Group and Founder of Visume App
Banking and Finance news in the MEA market
What sets enduring entrepreneurs apart is not just product-market fit or
storytelling. It is their ability to deploy capital wisely, manage cash flow, forecast downturns and scale without reckless spending. Financial acumen influences every decision: • Pricing Strategy: Balancing margins, value perception and customer acquisition costs. • Expansion Planning: Accurately forecasting capital needs and cash reserves. • Hiring Decisions: Scaling the team in line with revenue milestones. • Risk Management: Diversifying income streams and maintaining solvency during market shocks. Founders who make financial management a core part of their business strategy will not just survive, they will outpace the competition.
B u i l d i n g C o m p a n i e s L i ke Portfolios An emerging trend is for next-gen founders to view their companies as diversified portfolios, a strategy borrowed
ENTREPRENEURSHIP WITHOUT FINANCIAL STEWARDSHIP IS FANTASY Capital Efficiency Over Capital Addiction A per vasive my th in modern entrepreneurship is the idea that more funding equals more success. The real advantage lies in capital efficiency; doing more with less. This is particularly relevant in regions like the UAE, where funding is growing but remains more selective than Silicon Valley. Entrepreneurs who can bootstrap intelligently, raise funds strategically and maximise returns on every dollar will dominate. My approach emphasises self-reliance:
FOUNDERS WHO MAKE FINANCIAL MANAGEMENT A CORE PART OF THEIR BUSINESS STRATEGY WILL NOT JUST SURVIVE, THEY WILL OUTPACE THE COMPETITION from seasoned investors. This mindset mitigates the risks of over-reliance on a single market, product or client. My ventures, spanning sectors like education and hospitality, minimise risk while creating synergies that drive growth across verticals. Today’s entrepreneur must ask: Is my business model diversified enough to weather downturns? Am I creating multiple revenue streams to balance market cycles? Strategic financial fo res i g ht d i st i n g u i s h es l i fest y l e businesses from empires.
build first, prove the model, raise funds when they accelerate growth, protect the cap table and respect the burn rate. In a market where investors scrutinise financials with precision, treating cash as sacred, not as a crutch, is paramount.
Financial Storytelling as a Growth Strategy Being financially literate is no longer enough; entrepreneurs must also be financial storytellers. Investors, partners and potential acquirers respond to a compelling financial narrative.
Entrepreneurs must articulate not just the problem they solve but how that solution translates into revenue, margins and longterm profitability. In my approach, I communicate my ventures’ growth potential through both a visionary and financial lens. This attracts partnerships and investment. The modern entrepreneur must master both balance sheets and storytelling to close deals and secure long-term success.
Lessons for Tomorrow’s Founders The blueprint for success is clear: • Financial fluency is a must. Founders must understand finance just as thoroughly as product, marketing or operations. • Capital efficiency wins. Raising money should be a strategic decision, not the business model. • Por tfolio thinking ensures resilience. Diversification protects against external shocks. • Financial narratives close deals. Investors and clients need a clear path to value creation. • Entrepreneurship is a long game. Without financial discipline, even the best ideas will falter.
Conclusion: The Finance-First Founder In a world obsessed with disruption, the true revolution lies in financial discipline. My journey offers a glimpse into the future of entrepreneurship; a future where founders blend creativity with financial rigor, vision with valuation, and ambition with arithmetic. Finance is not just the language of investors, it is the language of survival, growth and legacy. The next generation of fo u n d e r s w i l l n o t j u s t b u i l d companies, they will create capitalefficient, self-sustaining enterprises that are resilient to whatever the market throws their way. Entrepreneurship without financial stewardship is fantasy. But when vision and finance are aligned, the results are extraordinary. mea-finance.com
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COVER INTERVIEW
Wealth Exchanges Osama Al Rahma, Chairman of Foreign Exchange and Remittance Group - FERG and Vice Chairman of Wealth Management Committee
Osama Al Rahma Head of Business Development and Wealth Management at Emirates Investment Bank and Chairman of FERG tells us about his extensive experience in the financial sector, the developments he has been party to and the changes that technology and the development of the UAE’s market has delivered
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ased on your more than thirty years in regional finance, what is your prognosis for the future of the UAE as a global financial centre in the coming twenty-five tears?
To help us visualise the future of the financial sector in United Arab Emirates,
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and the coming years, while we are looking toward this bright future and how to position the UAE as financial centre on a global level, we also and have a look to the present and to the past. What the UAE has achieved is beyond the normal growth of any ambitious country. Driven by its clear vision, it
has succeeded to bring about a really well structured financial foundation for the top International banks and finance companies, along with asset management, wealth management and private banking, family offices, venture capital funds, international funds and many other related financial services providers. We are truly privileged by the leadership of this country and their vision, and the accelerated level of implementation and agility in applying such strategies toward these objectives they have encouraged. The dynamics of enhancing and continually updating the rules and regulations governing the financial institutions within the UAE are genuinely remarkable. It has attracted many top investors, both institutional and individual to establish here and position their own companies within the geography of the UAE, all trying to avail themselves of the advanced facilities and our thriving financial sector.
It is important that when addressing the country’s vision, organisations within the financial industry position themselves to align their plans with the ambitious strategies of the government. The Central Bank of UAE is playing a pivotal role in not only driving the fiscal policy of the country, but also in advancing it with its own regulatory frameworks which create an advanced ecosystem that allows not only the traditional banks and financial institutions, but also those which lead innovation to be able to address the consumer’s future requirements by embracing technology. Our open finance and open banking programmes are now being implemented within our society along with advanced technology and the deployment of artificial intelligence. And the advanced technology infrastructure which has already been deployed by the Central Bank, as well as the regulatory framework, is evidence that these great strategies are in action now. So really, you do not need to view the achievements of such goals within the long term, but instead within the short and medium range where it will position UAE as one of most and advanced and globally competitive financial centres, benchmarking the
implementation of the democratisation of the financial sector. In terms of positioning as a global financial centre, it is a bright future for the UAE. I base this on real vision and clear strategic plans to achieve such objectives by the year of 2031. The objectives are clear: Taking the GDP from AED 1.49 trillion to AED3 trillion, to increase non-oil exports to 800 billion dirham, to enhance the contribution of the hospitality sector to become more than $450 billion and to increase foreign trade to more than AED 4 trillion. Additionally, with the aim of making the UAE the first global centre for the advanced rules and regulations for the governance the economic sector. All this has a resulted in putting the UAE on the top of competitiveness ratings among different countries especially when it comes to foreign direct investment (FDI) flows. The UAE also ranks as number one in FDI influence to the Middle East and North Africa. There are many reasons for this, but just to mention some you can include zero income tax and more than 140 effective double taxation agreements signed with countries across five continents. Our high rankings from international ratings agencies, including the AA rating from
S&P Global Ratings for our government support for business and companies, and low public debt levels in the same year. The UAE also received a AA rating with a stable economic outlook from Moody’s. This is considered the strongest sovereign rating in the region and reflects the strength of our sectors and economic stability. The UAE has joined the list of top 15 countries worldwide that investors consider a reliable investment destination, and also ranks 14th as per the Kearney FDI confidence index. Additionally, the revision of the UAE business environment law’s, such as a commercial companies laws, has led to an increase in investor interest, making the UAE one of their preferred global investment destinations.
As the Vice Chairman of Wealth Management Committee at Emirates Investment Bank what do you determine as the main drivers growing UAE as a global wealth centre? The UAE has positioned itself as a wealth hub and a capital of wealth, and a key centre of attraction for the HNWIs and UHNIs and corporates. It is already attracting many of those HNI who feel that UAE is their own home for both residing and doing business. Henley and Partners’ 2024 Wealth Migration Report ranked the UAE as the top destination for HNWI inflows globally, with an estimated 6,700 millionaires relocating to the country, exceeding USA and Singapore with 3800 and 3500 respectively. New World Wealth projected a 39% increase in the number of the HNWIs in the UAE by 2026, bringing the total to over 100,000 individuals. Then Ministry of Economy has a clear strategy of making the UAE the Capital of Wealth with clear KPIs: Grow the UAE’s wealth by $ 1 trillion, increase AUM managed from the UAE to $220 billion, double the HNWI to 200,000 and increase the ranking of the UAE in the Wealth Index. This strategy is supported by a comprehensive strategy formulated by the UAE Banks Federation with clear objectives and projects to develop all the requirements which would mea-finance.com
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COVER INTERVIEW
elevate UAE to be able to provide the highest level of quality environments for both HNWIs and institutional investors. We have seen thousands of those HNWI‘s and billionaires already set up and made the decision to be part of the growth of this advanced economy with its security and a lifestyle that cannot be found anywhere else. The Ministry Of Economy and the UAE Bank Federation, and other economic departments already have their own clear strategies to position the UAE as a world hub that has all the features and facilities which are available in any other advanced centres around the world. This not only comes with the regulatory framework and the protection of wealth and capital within this country, but it is also the mix of advanced infrastructure, lifestyle, personal security, a good living environment and the high quality of life.
How do you think that the current USA administration fuelled uncertainty will affect HNWI investment portfolios and decisions over the coming year? The latest tariff wars, their impact on the different global economies and their trade and supply chains, plus the impact on growth in the economies of the developed countries will hinder their ability in regards to their response to economic stresses. It will weaken their financial policies to curb their inflation and limit opportunities to adjust their interest rates, along with protecting their own currencies and their capital markets. This has resulted in unpleasant sentiment that has made a lot of top investors start diverting their investments from the traditional developed markets toward emerging markets and alternative investments within these regions. Definitely the region, and mainly the UAE has become one of those attractive locations to those investors because we can adequately provide for, and are also well enough equipped to receive such investor initiatives to relocate. I firmly believe in the performance of
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the local capital markets. In the past couple of years their level of growth has outperformed even the developed worlds’ capital markets and the level of gains they can provide investors. The current uncertainty of the behaviour of the global capital markets and such challenging environments will create a better understanding and insights about what you can provide to those investors and motivate us
IN TERMS OF POSITIONING AS A GLOBAL FINANCIAL CENTRE, IT IS A BRIGHT FUTURE FOR THE UAE to come up with different investment opportunities within our own capital markets, fixed income, private equity, real estate markets and others too. This has resulted in supporting and justifying the decision of HNWIs from those cities towards the UAE and mobilising a lot of their assets and family offices to be part of this attractive and growing economy.
In your role as Chairman of the Foreign E xchange and Remittance Group - FERG, what do you currently see as the most pressing challenges facing the money exchange and remittances business? The money exchange and remittances business faces many challenges. The Exchange industry in United Arab has evolved in the past five decades, and a major factor in its advancement and progress has been the growing population of the UAE and the differing needs of the growing diasporas and the diverse sectors and segments within the country.
Exchange houses were able to cater to the needs of consumers by outreaching toward technology transformation to better compete with other service providers. Also, the standards and the governance of the service, along with the high level compliance regime and ability to provide real time connectivity for cross-border payments seamlessly, were some of the achievements of those exchange houses. However the impact of the Covid 19 pandemic accelerated the development of financial technology which had a major impact. Fintech companies came up with numerous solutions, banks were able to develop Supper Apps with hyper personalisation, telecommunications companies were also engaging in such services and many others were looking into joining this lucrative and ever growing industry which globally which amounts to more than $900 billion. Today I believe the main challenges will be around business model changes and ability to build a resilient organisation to cater to the new segment of clients who are tech savvy, and to provide beyond the vanilla products and services within the allowed regulatory framework. Leveraging technology to increase efficiency in the utilisation of resources and make improvements to current operating practices is another of the challenges being faced by the exchange and remittances business. The ability to attract talent and those who are specialised in innovation and consumer experience – CX, to make us capable of competing with the global entities coming from overseas, as well as developing advanced platforms and the accompanying experience, all backed by strong capital to deploy effective marketing schemes, are further challenges for exchange companies. Addressing ever growing regulatory requirements, international compliance, AML/CTF requirements, sanctions frameworks and many others add to the many challenges faced. Adding more services and catering to different needs
within the vanilla remittance products, for both the remitter and the beneficiary, as well as the need to develop innovative services that ensure the retention of clients and customers, further add to the list of tasks.
What benefits has the growing ro l e o f t e c h n o l o g y m a d e specifically to foreign exchange and remittances. The industry has gained much from the advancement of technology, from the way that it performs, to the products and services it provides to end users. Along with this has come speed and secured connectivity for its partners and correspondents around the world, with the use of APIs and other advanced systems such as Swift’s ISO 20022. Financial technology companies are focusing their development around the provision of seamless and fast secured channels for transfers and payments, even within the existing ecosystem, as well as the traditional channels and settlement centres. Technology is responsible for advancing existing processes through digitalisation and bringing about the deployment of CBDCs, the digital currencies created by central banks of different jurisdictions. Exchange houses too can avail themselves of all those technology advancements in the way that they deliver their ser vices to clients. However, they must bear in mind the evolving demands and expectations of consumers, as they too are aware of other offerings and applications against which they can benchmark their supplier. Advanced technology is also providing opportunities for interoperability and collaboration with other partners with which they share synergies which can result in unique customer propositions that might, for example allow exchange houses to tackle virtual assets, bill payments, micro-financing, remit now and pay later – RNPL, plus potentially many more services.
Tell us about your financial background, the roles you have held in the markets and the part have you played in developing the skills and abilities needed to build the UAE into a global financial hub. I have been in the financial sector in the UAE for more than three decades, where I have had the opportunity to learn a lot within different positions and engagements in diverse entities. My experiences within the remittance and payments industry, and the level of partnership with international correspondent banks around the globe has equipped me with many skills. I have learned from and built understanding of the ways that international organisations perform from top bankers around the world. This has allowed me to join seminars and workshops in New York, Washington DC, in Switzerland, the UK, Germany, across Europe, China, India, Egypt and Hong Kong, as well as many other parts of the world. I have previously served as a Vice Chairman of Dubai Quality Group and as Chairman of the Banking and Finance sub group of the Dubai Quality Group. I have also been on the advisory board of the American Financial Academy and on the advisory board of Western Union, along with other engagements with different
entities where I shared in, and contributed to their high-level engagements. While in the UAE, I have been part of toplevel engagements with regulators and the different government sectors who are all taking the lead in enhancing the financial infrastructure of the UAE and its regulatory framework. I have also been a part of the building the human resource capacity that has allowed the UAE to create its dynamic atmosphere, enhancing the skills and abilities that positively contribute to our national initiatives. I believe that bringing these skills together to create an environment where we have all the top global financial players across the three bodies, the Central Bank, ADGM and the DIFC provides a unique environment ensuring best practice with state of the art financial infrastructure allowing us to engage with the globe. I find that for me such roles are complementary and provide me a better space to contribute to financial literacy and financial inclusion, themselves areas where a lot of work still needs to be done. I have taken part in numerous studies and learnings, as well as research in the fields of Wealth Technology, Fintech, Blockchain, Compliance, ESG and Governance, allowing me to start initiatives to help young generations of Emiratis to become leaders in the UAE’s financial institutions. mea-finance.com
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LEADERSHIP SERIES
Bill Borden, Global VP of Financial Services, Microsoft
Positioning for the Present In these extracts from his Leadership Series Interview with MEA Finance, Bill Borden Global VP of Financial Services, Microsoft he discusses the key technology driven developments, priorities and opportunities for banking across the region and how Microsoft is integrating AI into its’ financial services offerings
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Banking and Finance news in the MEA market
C
an you elaborate on how AI will transform the industry, especially in terms of scalability and customer service? Generative AI and the accessibility of the power of generative AI, and how it has been accepted and used, has been dramatic and exciting. We’ve been very focused on how we’re using our capabilities through the Microsoft cloud services that we offer around compute and data, AI and modern work and business applications. All are infused with AI so that our customers, and the software providers that build first-party solutions for the industry can use that and leverage that capability. And so, what it is generating is a whole bunch of ways to think about how AI can empower employees differently across the front, middle and back office with assistance, and with the ability to have data and insights in the palm of their hand.
If you are not thinking about how AI is going to help you reshape and rethink business processes, and how you deliver value as a company, you’re going to miss the opportunity to use this technology in ways that are going to help you to compete. And the last area to mention is bending the innovation curve. How are you going to figure out ways to actually operate more efficiently and create value at a faster pace so that you can reinvest in the technology to move faster and quicker? At Microsoft we’ve set up our capabilities in our platform so that our customers do that.
What do you envision as the future of banking, and how should banks prepare for these changes? It is really exciting how services can be brought in a tailored way to an individual or a business or a customer, because that’s what’s going to be expected in the marketplace. And so, this idea of an assistant helping a relationship banker or a customer service provider answer questions quickly, or have immediate access to knowledge about you as a customer to solve your problem on the phone or through the internet, so that you can move on and get to actually talking about how you can be served differently or with different products - that’s what’s happening today. Using the technology to think about how you manage fundamental business processes differently. Those are the things that are going to be exciting. AI is going to fundamentally change how financial services are actually more inclusive and democratised throughout the world.
What steps can banks take to foster an innovation ecosystem within their organisations? The first step is thinking organisationally and culturally about how you want to communicate it to your staff,
SO, IT’S NOT IF THIS TECHNOLOGY IS GOING TO BE USED, IT’S WHEN getting them to be curious about the technology and viewing it as something that’s going to help them in their roles. Because the acceptance and the change management around using the technology is first and foremost going to allow you to accelerate, and use it beyond what the technology itself is doing. So, the institutions that are making the most progress are starting with how they organise in a way that they can understand how to use it across their compliance, security and risk structures, and how they’re going to manage the technology in a safe and secure way. They’re in a regulated industry and therefore have to do things with transparency and in a way that can show they’re protecting the use of the technology and protecting how it is used for customers. So, organising
AI IS GOING TO FUNDAMENTALLY CHANGE HOW FINANCIAL SERVICES ARE ACTUALLY MORE INCLUSIVE AND DEMOCRATISED THROUGHOUT THE WORLD
your organisational culture and your organisational operating model is my first suggestion around how to move fast and quickly. Secondarily, pick use cases that go deep on that and are really going to have a transformative effect around how this technology can be used, as a proof point. Customer service is a space where there’s a lot of focus on how you can actually have much more adaptive s e r vic ing, muc h m ore ser v ic in g associated with knowing the customer’s background and what their challenges are, so that you can serve them quickly on the call, and then provide them with additional value beyond the call. Wells Fargo has created an assistant for their branch sales service managers to engage with customers and give information in a much quicker way. They’re finding out they can take tasks that used to take 10 minutes and now take only 30 seconds. In the development community, the programming community using copilots and GitHub Copilot actually create code faster and are able to test it more quickly. Organisations like Citigroup - 40,000 developers using Copilot to help them get efficiencies around how they code. So, finding large areas and proof points right around how the technology can work and then showing the return on that. That’s going to allow you to create momentum and then continue to roll it out into other areas of your business.
How do you see the rise of AI and cybersecurity impacting the financial services industry in terms of customer experience and operational efficiency? Productivity is top of mind around how this technology is being used, such as a copilot and assistant helping me through my day-to-day tasks, through my emails, through the materials that I have and able to summarise things, and to prioritise the work that I do. We’ve started very much down the productivity path with our M365 Copilot mea-finance.com
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LEADERSHIP SERIES
and many users are learning about what a copilot assistant can mean and how you can start to use that to create productivity around it. Organisations like UBS that have rolled out Copilot to 50,000 employees across their organisation actually start to learn how to immerse themselves in the technology and start seeing where the productivity gains are. So, the idea of employee productivity is one area to think about focusing on.
How is Microsoft integrating AI into its financial services offerings to enhance customer experiences and operational efficiencies? Our whole approach to thinking about how we serve the financial services industry, which we define as banking, capital markets and insurance, is at the forefront is how we take our Microsoft Cloud for financial services and build it in a way that’s robust and has security compliance and control structures that are needed to make it fit for purpose to serve the industry. And so that’s where we spend a lot of time first with our cloud approach, thinking about our compute, our modern work platform within 365, our Biz Apps platform with Dynamics 365, how we build data and AI services into that cloud stack and then how that can actually be used to create applications to serve the industry. That’s where we start first with our Microsoft Cloud. Then we work very closely with our software partners that are building the best in class first party software applications for the industry across banking, capital markets and insurance,
I THINK THERE’S A BIG PUSH HERE TO ACTUALLY THINK ABOUT HOW TO USE THIS TECHNOLOGY TO JUST RESHAPE HOW INSTITUTIONS OPERATE whether they’re mature organisations or startup organisations. We help them bring all of those capabilities together to think about in partnership how they can grow their businesses and use the technology. And you’re starting to see that, whether it is around, solutions for employees, for productivity gains, solutions for customers to actually have their services and their capabilities tailored to them to take friction out of their product and their business processes end to end. You’re going to see some amazing things, I think, come out in the marketplace over the next few months.
How can banks in the UAE benefit from strategic partnerships with technology companies like Microsoft? Banks in the UAE have a history of being forward thinking, and the ability to think about innovation and creating a hub of innovation. The financial institutions here have taken advantage of that push and that forward thinking to position to take advantage of this. This is a region where financial institutions actually moved into the cloud at a faster pace than some of the other regions in the world, taking advantage of the technology and the ability to modernise their applications.
BANKS IN THE UAE HAVE A HISTORY OF BEING FORWARD THINKING, AND THE ABILITY TO THINK ABOUT INNOVATION AND CREATING A HUB OF INNOVATION 44
Banking and Finance news in the MEA market
As they’ve done that, they were able to take advantage of this next wave of generative AI because you’re not going to be able to have a strong generative AI enterprise strategy without it. If you’re not in the cloud you’re not getting your data ready to have analytics on top of it. Banks here have had a good head start in that. They ’ve positioned themselves now with generative AI capabilities and they’re focusing in on those use cases that they think are going to be dramatic, whether it’s around impacting how their services are delivered from a customer point of view or driving employee productivity so that they can serve customers differently. But more importantly, I think there’s a big push here to actually think about how to use this technology to just reshape how institutions operate. We just put out our 2025 Work Trends Report Index and what’s top of mind for customers, I think, as a broad survey that we did shows, it is pretty clear here. Out of that survey, 82% of leaders have already said that they plan to use digital labour in the next 10 to 12 months; 46% I think is around that range of leaders who said that they plan on or are already using agents to actually automate processes and workflows; and then 72% of those leaders have said that they’re already really focused on bringing in AI talent. So, it’s not if this technology is going to be used, it’s when. And I think this region really reflects those results probably even at a higher level with regards to the movement that they have.
Banking Reinvented
Rethink. Reimagine Reinvent. Ready to challenge the status quo? Get insights from the pioneers driving change in AI, digital transformation, and customer-first innovation, one episode at a time.
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Middle East banking shows no signs of slowing Exploring the key forces shaping banking in 2025, from AI-powered personalization to ecosystem banking
At the start of 2025, the pace of digitization in Middle East banking shows no signs of slowing. In the UAE for example, the digital banking sector, which already saw a robust CAGR of 8.7% between 2021 and 2023, is now on track to reach US$175.7 billion by 2029 at a CAGR of 4.8%.1
In this report, we explore five key trends shaping Middle Eastern banking in 2025. These trends highlight how financial institutions can harness innovation to unlock new growth opportunities and redefine the banking experience for their customers.
For traditional banks however, this growth opportunity isn’t without its challenges. Neobanks and other challengers, once focused on younger, tech-savvy customers, now appeal to older generations seeking easy-to-use, personalized services. Alongside them, fintech innovators like Wio, Zand, Ruya, Tabby, Sarwa, and plenty more have come to dominate niche markets.
The next wave of transformation will be driven by:
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Bold government initiatives for innovation
Faced with mounting competition and evolving customer expectations, Middle Eastern banks must embark on yet another wave of transformation. But in a landscape where the pace of change leaves little room for missteps, knowing where to invest is crucial.
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Neobank and fintech innovators
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Digitally discerning customers, young and old
Source: 1Arthur D. Little
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Banking and Finance news in the MEA market
5 must-watch trends for banking in the Middle East
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Trend 01 Agentic AI: personalization at scale AI in banking has evolved beyond efficiency and automation. It is now a cornerstone for delivering hyper-personalized customer experiences, a priority in the Middle East, where customers increasingly demand tailored services. Agentic AI, or AI that feels more human, is set to redefine how banks interact with their customers, combining the power of data analytics with empathetic engagement. According to McKinsey2, 62% of companies in the GCC are using AI in at least one business function, comparable to the adoption rate in North America. Regional banks are leveraging AI for credit scoring, fraud detection, and customer service, but the next phase will focus on predictive capabilities. Imagine AI systems that not only solve problems but also anticipate customer needs before they arise. This shift will allow banks to provide proactive solutions, whether it’s suggesting investment opportunities,
Source: 2McKinsey
Interested in the topic of agentic AI?
optimizing spending, or offering financial wellness advice. Agentic AI represents a powerful opportunity for Middle Eastern banks to deepen customer relationships while driving efficiency. Institutions that invest in these capabilities will stand out in a competitive market.
01 Agentic AI empowers banks to scale personalization while improving efficiency, positioning them to meet rising customer expectations and create a competitive edge.
AI is revolutionizing banking, but what’s next? Agentic AI is redefining personalization, making digital banking smarter, more intuitive, and truly customer-first. Listen to the podcast
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SPONSORED CONTENT 5 must-watch trends for banking in the Middle East
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Trend 02 The rise of lifestyle banking Customer expectations in the Middle East are evolving fast, and traditional segmentation models are no longer enough. The region’s banking sector has long been structured around broad, rigid customer categories—mass, affluent, and highnet-worth—but today’s digital customers demand more. Banks that fail to move beyond one-sizefits-all banking risk losing relevance as more personalized, dynamic financial services emerge.
driven insights, and embedded finance models that allow banks to offer highly personalized services at scale. Instead of broad segments, banks can now tailor offerings based on customer behaviors, financial goals, and realtime needs. Banks that embrace this shift will differentiate themselves by delivering proactive, needbased financial solutions, rather than generic banking products. In 2025, success will belong to financial institutions that move away from legacy segmentation and embrace a customerfirst approach built on data, intelligence, and agility.
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Some financial institutions are already leading the charge. Saudi National Bank’s NEO is a prime example of how banks can rethink customer engagement, offering a fully digital, lifestyleintegrated banking experience that caters to a younger, mobile-first generation. But beyond neobanks, the shift toward personalization is forcing all banks to rethink how they serve different segments. This transformation is being driven by the rapid rise of data-powered engagement platforms, AI-
One region, many financial needs
The Middle East is home to a wide range of banking customers, each with unique expectations. Whether it’s a first-time investor, an SME owner, or a family planning for the future, banks that embrace lifestyle banking will lead in 2025. 48
Banking and Finance news in the MEA market
Young Professional
Established Family
Solo Trader Micro Business
Mass Influent
Expat
Young Families
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5 must-watch trends for banking in the Middle East
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Trend 03 iPaaS adoption will surge as banks embrace ecosystem models The Middle East’s banking landscape is becoming increasingly interconnected and in 2025, banks will no longer be able to rely on siloed, fragmented technology stacks. With mounting pressure to innovate faster, integrate fintech solutions seamlessly, and comply with evolving regulations, financial institutions must move beyond traditional IT architectures.
foundation of ecosystem banking in the Middle East. Banks that adopt industry-specific iPaaS solutions will launch new services faster, comply with open banking regulations more efficiently, and compete on customer experience rather than just infrastructure capabilities.
This is where industry-specific Integration Platform as a Service (iPaaS) is set to play a game-changing role. Unlike generic integration solutions, iPaaS tailored for financial services offers pre-built connectors, APIs, and workflows that allow banks to quickly integrate with fintech partners, payment providers, and regulatory platforms. Regulatory forces are accelerating this shift. The introduction of open banking frameworks by SAMA in Saudi Arabia3 and the UAE Central Bank4 is compelling banks to build more flexible, API-driven architectures. At the same time, customers expect seamless digital experiences that require real-time data exchange across banking and non-banking services.
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With traditional IT integration models proving too slow and complex, iPaaS will become the
Source: 3SAMA - 4UAE Central Bank
As banks move toward ecosystem-driven business models, industryspecific iPaaS will become the foundation for faster innovation, seamless partnerships, and scalable banking transformation.
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SPONSORED CONTENT 5 must-watch trends for banking in the Middle East
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Trend 04 Neobanks moving from disruptors to mainstream players Neobanks have emerged as a serious force in the Middle East, offering digital-first experiences that challenge traditional banking models. While traditional banks still hold the lion’s share of market trust, neobanks are redefining customer expectations with frictionless onboarding, personalized financial tools, and lifestyle-driven banking. Neobanks are cementing their place in the financial ecosystem, driven by strong regulatory backing, customer demand for digital-first experiences, and seamless integration with broader financial services. Countries like Saudi Arabia and the UAE have introduced progressive digital banking frameworks, encouraging new players to enter the market and accelerate financial inclusion. The Middle East’s neobanking landscape is rapidly evolving, with digital-first challengers setting new benchmarks in customer experience. Wio is pioneering embedded finance, catering to SMEs and individual customers in the UAE. ila Bank, a Bahrain-based neobank, delivers seamless digitalfirst banking experiences tailored for a mobilenative audience. Meanwhile, STC Pay, a leading Saudi fintech turned digital bank, is enabling fast payments and everyday financial services through a mobile-first experience.
Key recommendations
Invest in modular digital platforms Enable faster deployment of innovative features, like instant transfers or personalized dashboards.
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For traditional banks, the challenge is clear: compete or collaborate. The rise of neobank challengers signals a shift toward agile, tech-
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driven financial services that cater to digital-native customers. Traditional banks looking to stay relevant in 2025 must rethink their digital strategies, leveraging modular banking platforms, fintech partnerships, and personalization to compete in a market that values speed and convenience.
Banking and Finance news in the MEA market
Focus on customer experience Use data-driven insights to deliver personalized interactions and proactive engagement.
Leverage trust and scale Build loyalty by combining neobank-like agility with the security and reliability customers expect from traditional banks.
5 must-watch trends for banking in the Middle East
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Trend 05 Green finance as a competitive differentiator for banks Sustainability in banking is no longer just about compliance. In the Middle East, it is becoming a strategic driver of growth, differentiation, and long-term resilience. With governments setting ambitious sustainability targets, from the UAE’s Net Zero 2050 to Saudi Arabia’s Vision 2030, banks are under increasing pressure to align.
Banks that treat green finance as a core strategy, not just a compliance checkbox, will stand out. Those that successfully merge sustainability with seamless digital experiences will not only meet regulatory demands but also earn long-term customer trust and loyalty in an increasingly competitive market.
The shift is already reshaping banking priorities. Customers are making conscious choices, favoring banks that embed sustainability into their operations. From paperless banking and carbon tracking to ESG-linked investments, green finance is no longer an option—it’s an expectation. Yet, a gap remains between commitment and execution. Many banks have introduced ESG-linked products, but only a few have woven sustainability into their core banking experiences. While initiatives like digital-first green loans, carbonconscious rewards, and sustainable investment portfolios are gaining traction, the real opportunity lies in making ESG an integral part of everyday banking journeys, rather than a side initiative.
A 2024 survey revealed that 80% of Middle Eastern companies have established formal sustainability strategies, reflecting a significant shift towards ESG integration.5
4 05 Source: 5PwC (2024)
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SME BUSINESS AND FINANCE AWARDS 2025
The MEA Finance SME Business and Finance Awards 2025
The MEA Finance SME Business and Finance Awards 2025 highlighted and celebrated the entrepreneurs, the banks, the business services providers, the technology vendors and the fintechs who together make the region a leading global home for SMEs and startups
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Banking and Finance news in the MEA market
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n Dubai on the 26th February, this year, more than 250 founders, entrepreneurs, senior banking executives, business services providers as well as key fintechs and technology vendors attended the MEA Finance SME Business and Finance Awards 2025. Held at The Ritz Carlton Hotel, JBR, Dubai it was a well-deserved acknowledgement of the indispensable
and nothing less than vital role of SMEs in regional economies. The announcement and showcasing of the winners were rightful acknowledgements of the importance of small businesses to the prosperity of the region and make clear the true magnitude of the collective strengths of regional SMEs. Additionally the underscoring of why it is these small and medium sized enterprises that are the power behind
the diversification of economies and the prosperity of our region. The Awards presentations were attended by over 250 leaders from SMEs and startups, banking, advisory and business services providers key fintechs and technology vendors – all key elements in our thriving SMEs ecosystem. Congratulations once again to all the winners.
Best Overall Bank for SMEs
National Bank of Fujairah
Best Overall Bank for SMEs - Lending and Financing
Emirates NBD
Best Overall Bank for SMEs for Relationship Management Services
RAKBANK
Best Overall Bank for SMEs – Innovative Business Accounts
Mashreq
Best Bank for SME Bank Accounts
National Bank of Fujairah
Best Digital/Neo Bank for SME Bank Accounts
Al Maryah Community Bank
Most Innovative Bank for Financial Product for SMEs
Emirates NBD
Best Financial Advisory for SMEs
Emirates Integrated Registries Company
Best Bank for Working Capital Financing Solutions for SMEs
National Bank of Fujairah
Most Accessible SME Banking Solution
Emirates NBD
Best Digital Banking Solution for SMEs
Mashreq
Best Bank for Microfinance Services
Al Wataniya Microfinance Bank
Best Small Business Banking Technology Provider
Nagarro MENA LLC
Best Cashflow Management Fintech Solutions for SMEs
Xpense
Best SaaS Provider for Startups & SMEs
Hotdesk
Best AI Solutions for Startups & SMEs
InvoiceMate
Best Cloud Solution for SMEs
Nagarro MENA LLC
Most Innovative Fintech SME or Startup
Co-Own
Best Workspace Solution for SMEs
HOTDESK
Best Overall Company Start-up Services
Virtuzone
Best Legal Advisory for SMEs and Startups
CVML
Most Innovative Free Zone Initiative
Meydan FZ
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SME BUSINESS AND FINANCE AWARDS 2025 BEST OVERALL BANK FOR SMES National Bank Fujairah
National Bank Fujairah (NBF) was the recipient of the Best Overall Bank for SMEs award. NBF received the award in recognition of its comprehensive, multifaceted approach and effective use of its key capabilities, spanning treasury operations to trade finance solutions. The strategic application of its strengths has solidified the bank’s standing as a reliable and dedicated partner for small and medium-sized enterprises (SMEs). Last September, NBF unveiled its ‘NBF Emerging Business Unit’ to deliver tailored services and essential support, empowering businesses to reach their goals. The unit caters to both new ventures and established SMEs across the UAE. Leveraging their recently launched digital onboarding platform, EDGE, prospective clients can conveniently open accounts online from any location at any time, eliminating the necessity for in-person branch visits. Furthermore, each customer within this unit will be assigned a dedicated relationship manager. This manager will develop a thorough understanding of the business’s specific requirements to create the most effective banking solutions for their growth.
BEST OVERALL BANK FOR SMES - LENDING AND FINANCING Emirates NBD
Emirates NBD bagged the Best Overall Bank for SMEs - Lending and Financing award. The award was conferred to the Dubai-based lender in recognition of its focus in late 2023 on empowering SMEs and bolstering the national economy. The accolade recognises Emirates NBD’s substantial expansion of its lending to SMEs, demonstrated by an additional AED 3 billion in funding provided in 2024. The increased financial support seeks to address SMEs’ needs for working capital, operational expenses (OPEX), and capital expenditures (CAPEX), as well as to stimulate their business growth through enhanced sales volumes. The bank onboarded over 13,000 new SME and startup clients in 2024, offering a diverse range of business account packages tailored to different needs, each with valuable features and benefits. Reflecting on Emirates NBD’s ongoing commitment to the UAE’s economic growth, the bank’s support for SMEs resulted in a significant 60% increase in lending facilities, a 10% rise in revenue and a 7% growth in net profit within the sector compared to the previous year
BEST OVERALL BANK FOR SMES FOR RELATIONSHIP MANAGEMENT SERVICES RAKBANK
RAKBANK walked away with the Best Overall Bank for SMEs for Relationship Management Services award. The award went to RAKBANK in recognition of its commitment to empowering SMEs by providing innovative banking solutions and unwavering support, thus enabling entrepreneurs to thrive in a competitive marketplace. The bank has consistently prioritised the needs of SMEs, recognising the crucial role the sector plays in the economy. It offers a comprehensive portfolio of products and services specifically designed to address the distinct requirements of SMEs throughout their development. RAKBANK provides diverse financing solutions, including working capital loans and asset-based financing, ensuring our clients can access the necessary capital to pursue opportunities and fuel their business growth. The lender has significantly advanced its services through technology integration. RAKBANK’s digital banking platform provides SMEs with a smooth and efficient banking experience, simplifying their financial management.
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Banking and Finance news in the MEA market
BEST OVERALL BANK FOR SMES – INNOVATIVE BUSINESS ACCOUNTS Mashreq
Mashreq received the Best Overall Bank for SMEs – Innovative Business Accounts award, recognising its pioneering Mashreq Business Banking. The platform introduced the UAE’s first fully digital onboarding process for SMEs, encompassing Sole Proprietorships and Partnership Companies. The innovative approach leverages facial recognition technology combined with Optical Character Recognition (OCR) for all key owners, allowing all partners within a company to verify their identities online, at any time and from any location globally. Mashreq has revolutionised the account opening experience for both Sole Proprietorships and Partnerships by eliminating the necessity for branch visits and physical paperwork. Mashreq’s comprehensive end-to-end digital banking capabilities for SMEs enable seamless digital onboarding and the efficient execution of daily business activities such as payments, foreign exchange conversions and trade via the Mashreq Biz platform. Furthermore, Mashreq’s clients can digitally access value-added services for their business operations through the bank’s network of partners.
BEST ISLAMIC BANKING AND FINANCE FOR SMES Dubai Islamic Bank
Dubai Islamic Bank (DIB) was the recipient of the Best Islamic Banking and Finance for SMEs award. The award acknowledges the Islamic bank’s exceptional SME banking and financing services, particularly its distinguished Al Islami range. The Islamic bank’s offerings feature flexible repayment periods, competitive rates, financing options up to AED 2 million and Sukuk – all supported by streamlined approvals adhering to Sukuk Murabaha principles. Recognising the crucial role of SMEs in the UAE’s economy and the distinct challenges they often encounter, DIB has developed a range of customised financial solutions to address their varied requirements. By understanding the complexities of SME operations, DIB delivers products and services that not only foster growth but also improve operational efficiency. DIB’s comprehensive suite of SME financing options includes working capital financing, which is essential for businesses needing immediate liquidity for daily operations. Offering flexible repayment schedules and competitive profit rates, the bank ensures SMEs can access necessary funds without straining their cash flow.
BEST DIGITAL/NEO BANK FOR SME BANK ACCOUNTS Mbank
The Best Digital/Neo Bank for SME Bank Accounts award was given to Al Maryah Community Bank (Mbank) in honour of its recognition that SMEs require accessible and efficient banking solutions. To meet the banking requirements of SMEs, Mbank offers a free business account that can be set up in under 20 minutes with no minimum balance requirements and no fees. Mbank offers a highly secure platform and streamlines the process of applying for business loans. The bank provides free transfers for employee salaries through the Wages Protection System (WPS) and customisable workflows to suit individual business needs. For SMEs and small businesses looking to grow their finances, Mbank offers fixed deposits with competitive interest rates, standing order instructions and fast fund transfers. The community digital bank also provides Letters of Guarantee and a free first chequebook.
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SME BUSINESS AND FINANCE AWARDS 2025 MOST INNOVATIVE BANK FOR FINANCIAL PRODUCTS FOR SMES Emirates NBD
Emirates NBD walked away with the Most Innovative Bank for Financial Products for SMEs award. The bank’s dedication to fostering the growth of SMEs earned it recognition, with one in four small businesses in the UAE bank with Emirates NBD. The bank supports SMEs’ evolving needs with increasingly comprehensive packages as businesses grow, which culminates in its premium Platinum offerings for larger corporates. Emirates NBD streamlines the onboarding process for new SME clients with a fully digital acquisition journey. Its SME customers benefit from its world-class online banking platform, businessONLINE, which provides fee-free access to a comprehensive suite of services across all business banking markets – the UAE, Saudi Arabia and Egypt. businessONLINE includes real-time financial dashboards, efficient remittances, robust cash management solutions, cutting-edge API connectivity and H2H services. The success of Emirates NBD’s expanding digital services is evident in the launch of 49 new features on businessONLINE, achieving a robust 83% adoption rate with many services delivered instantly.
BEST FINANCIAL ADVISORY FOR SMES
Emirates Integrated Registries Company (EIRC) Emirates Integrated Registries Company (EIRC) was honoured with the Best Financial Advisory for SMEs award. The award recognised EIRC’s dedication to transforming the SME financing landscape in the UAE through its innovative Collateral Registry – a game-changing initiative that enhances financial inclusion and access to credit for SMEs. To address challenges such as credit accessibility and risk assessment, EIRC’s Collateral Registry offers a secure, transparent and efficient framework that allows SMEs to use movable assets as collateral. The solution empowers SMEs with the financial tools necessary for growth, innovation and contribution to the UAE’s economy, unlocking financing opportunities that were previously out of reach. By enabling SMEs to use assets such as receivables, inventory and equipment as collateral, our platform has helped businesses secure funding that would have otherwise been unavailable. Through its partnerships with financial institutions, government bodies and business associations, EIRC provides SMEs with guidance on structured financing, risk management and compliance, ensuring they make informed financial decisions.
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BEST BANK FOR WORKING CAPITAL FINANCING SOLUTIONS FOR SMES National Bank Fujairah
The Best Bank for Working Capital Financing Solutions for SMEs award went to the National Bank Fujairah (NBF). The award recognised NFB as a pioneering partner for companies in services and manufacturing, providing SMEs with solutions through a comprehensive portfolio that includes regular working capital facilities, collateral-free business term loans, long-term loans for the construction of offices/warehouses, CAPEX, project financing and parameterised lending. The bank’s ‘NBF Emerging Business Unit,’ which was launched in September 2024, delivers personalised service and essential support to help businesses achieve their ambitions. The initiative builds upon NBF’s established dedication to empowering SMEs through tailored financial products and services. With a focused approach, the unit aims to cultivate enduring partnerships founded on trust and in-depth industry knowledge, providing banking solutions designed to meet the specific needs of newly formed, flexy desk and established companies within a dynamic business landscape. Leveraging their recently launched digital onboarding platform, EDGE, prospective clients can conveniently open accounts online from any location at any time, eliminating the necessity for in-person branch visits.
MOST ACCESSIBLE SME BANKING SOLUTION Emirates NBD
The Most Accessible SME Banking Solution award was given to Emirates NBD in honour of the bank’s increased access to financing for SMEs, streamlined foreign exchange facilities by eliminating fees for specific services and supported MSMEs and startups with their digital-only Connect Package, which has no minimum balance requirement. Emirates NBD seeks to be a one-stop-shop for SMEs, catering to all their business requirements across multiple products and services in the UAE, Saudi Arabia and Egypt. The bank continues to support the SME community by offering convenient business banking transactional account packages that cater to all customer segments. Emirates NBD facilitates full transactional banking via Mobile Banking and Online services. It provides financial support by lending to respective SME sectors based on their latest financials and business needs, with special offerings for UAE national business owners. Emirates NBD is running the Dubai International Growth Initiative, in conjunction with the Dubai Government, to accelerate the global expansion of Dubaifounded SMEs.
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SME BUSINESS AND FINANCE AWARDS 2025 BEST DIGITAL BANKING SOLUTION FOR SMES Mashreq
Mashreq walked away with the Best Digital Banking Solution for SMEs award. The bank received the award in recognition of its significant digital and physical enhancements, which were implemented to streamline processes, improve customer experiences and drive innovation across the industry. Mashreq’s initiatives have not only strengthened its own business but also positively impacted the banking industry by setting benchmarks for digital transformation and customer-centric banking practices. The bank’s leadership is inspiring other financial institutions to prioritise SMEs and invest in digital solutions. The widespread innovation benefits SMEs across the UAE by providing them with a broader array of banking services, improved access to financing and enhanced customer experiences. Mashreq led the digital transformation of UAE SME banking with the 2019 launch of NEO BIZ, which offers seamless, convenient, secure and cost-effective banking services. Its digital onboarding features a 20-minute digital account opening application, online portal-based queries and tablet fulfilment.
BEST BANK FOR MICROFINANCE SERVICES Al Wataniya Microfinance Bank
Al Wataniya Microfinance Bank were awarded the Best Bank for Microfinance Services award. The award recognised Al Wataniya Microfinance Bank for its role in fostering financial inclusion in Syria by providing small businesses with financing facilities unavailable through traditional banks. To date, the bank has provided approximately 90,000 loans and has made extensive corporate social responsibility programs (CSR) efforts, including significant financial literacy, inclusivity and entrepreneurial support. Al Wataniya Microfinance Bank is redefining the role of microfinance in economic recovery and sustainability. The bank has helped thousands of individuals and enterprises regain financial independence and expand their businesses by addressing the financial barriers faced by vulnerable populations. The bank’s ability to develop need-based microfinancing solutions, coupled with its strong commitment to positive social impact, has positioned it as a key driver of economic empowerment in Syria.
BEST BANK FOR SME BANK ACCOUNTS National Bank Fujairah
National Bank Fujairah (NBF) was the recipient of the Best Bank for SME Bank Accounts Provider award. The award was given to NBF in honour of the bank’s recognition of SMEs as valued business partners, a commitment demonstrated by its SME Business Account Packages. The packages provide a range of tailored solutions, including bank guarantees, export and import letters of credit, document collections, trust receipts, project financing and receivable financing, among others. NBF introduced its NBF Emerging Business Unit in September 2024 to deliver bespoke services and vital support to help businesses achieve their growth ambitions. The unit serves both startups and established SMEs across the UAE, offering a comprehensive banking experience tailored to each stage of a business journey. Central to this offering is NBF’s digital onboarding platform, EDGE, which enables prospective clients to open business accounts online – anytime, anywhere – removing the need for physical branch visits. To ensure personalised support, every client in this unit is paired with a dedicated relationship manager.
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BEST SMALL BUSINESS BANKING TECHNOLOGY PROVIDER Nagarro MENA LLC
The Best Small Business Banking Technology Provider award was given to Nagarro MENA LLC in honour of the company’s MSME loan platform, which streamlines the application process with an intuitive dashboard, allowing customers to easily track their loan progress and even open new accounts for POS and PAYROLL loans if required. To overcome the inefficiencies and customer inconvenience of the old system, characterised by significant documentation and in-person signing at branches, the bank aimed to create a streamlined, one-stop solution. The new platform offers MSME customers an ecosystem of loan products and a much-improved application process. Once the loan is approved, the customer can then withdraw their amount through a unique disbursal process called the Invoice Disbursal/Withdrawal process. It also includes a dashboard view allowing the user to see a summary of their ongoing loan process.
BEST CASHFLOW MANAGEMENT FINTECH SOLUTIONS FOR SMES Xpence
Xpence walked away with the Best Cashflow Management Fintech Solutions for SMEs award. Xpence received the award for its flexible and helpful solutions that empower SMEs to manage their expenses and cash flow. These solutions encompass automated bookkeeping, globally accepted physical and virtual cards, and innovative expense management features like inbuilt roles and custom limits. Notably, Xpence was the first fintech in the region to launch corporate cards. The fintech firm’s platform has empowered thousands of businesses to efficiently manage expenses and streamline their financial operations with solutions designed for both small and large enterprises. Xpence continues to expand its footprint across the GCC, with Bahrain, Saudi Arabia and the UAE already online, with Qatar set to launch this year. The company’s comprehensive business payments ecosystem includes corporate cards, BNPL for SMEs and embedded payment gateways.
BEST FINTECH SOLUTION FOR SMES Pemo
The Best Fintech Solution for SMEs award was given to Pemo in recognition of the home-grown startup’s all-in-one spend management solution is proving to be a transformative force in the MENA fintech landscape, serving the thriving SME economy with its revolutionary business expense management powered by an intuitive and comprehensive platform. The UAE has a thriving SME economy, with almost 94% being SMEs, providing a strong market for Pemo to tap into. Pemo’s rise to prominence is a testament to the innovative spirit and entrepreneurial dynamism that defines the region’s fintech sector. The company has established itself as a transformative force in the fintech landscape, delivering an all-in-one spend management solution tailored to the unique needs of businesses in the Middle East and beyond. Pemo’s intuitive and comprehensive platform has revolutionised business expense management, streamlining financial operations and boosting efficiency through seamless integration of expense management, smart corporate cards and automated accounting. The integration enhances transparency, reduces manual errors, and optimises cash flow.
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BEST AI SOLUTIONS FOR STARTUPS & SMES InvoiceMate
The Best AI Solutions for Startups & SMEs award was given to InvoiceMate. Leveraging artificial intelligence (AI), blockchain and Web3 liquidity, the platform is pioneering AI-powered invoice financing to address liquidity challenges for startups and SMEs. InvoiceMate is transforming how these businesses access working capital, improve cash flow and achieve scalability through this innovative approach. Traditional financing systems often suffer from manual verification, outdated credit scoring and slow approval processes, creating hurdles for businesses. InvoiceMate overcomes these challenges with its AI-driven approach. Its AI Agents analyse invoice authenticity, assess creditworthiness and match startups and SMEs with optimal financing options within minutes, providing faster, more efficient and more transparent funding solutions. The platform makes SMEs credit-ready through AI insights, providing AI-powered working capital via invoice financing and liquidity matching, enhancing trust and security with AI-driven verification and smart contracts and fostering financial inclusion, empowering SMEs and startups to thrive beyond traditional banking constraints in Dubai’s innovative landscape.
MOST INNOVATIVE FINTECH SME OR STARTUP Co-Own
Their recognition underscores the startup’s vision to revolutionise the private market’s real estate investment landscape in the Middle East region by offering a sophisticated and user-friendly digital platform tailored for professional investors. The startup strives to provide unparalleled access to diverse pre-vetted real estate opportunities on its curated marketplace, streamline due diligence processes and risk assessment, digitise the transaction process and optimise portfolio management. Co-Own leverages cutting-edge technology to allow qualified users to purchase, manage efficiently and profit from real estate investments in readyincome-generating projects across the city. The solution aligns seamlessly with the UAE National Strategy for Artificial Intelligence 2031, the Dubai Land Department’s ambitious new strategic plan and Vision 2026 to become the global leader in real estate investments and actively supports the Dubai Economic Agenda D33.
BEST WORKSPACE SOLUTION FOR SMES Hotdesk
Hotdesk was honoured with the Best Workspace Solution for SMEs award. The award acknowledged the company’s dedication to addressing the unique requirements of SMEs and small enterprises with a highly adaptable solution. Notably, it’s the only end-to-end stack powering hybrid work specifically designed to meet the evolving workspace needs of today, such as embracing “asset light” models or hybrid arrangements. Hotdesk helps make this flexible approach not only possible but effortless, granting users instant access to a vast range of options (desks, meeting and board rooms and private offices included) that can be booked online by the day, hour, monthly or yearly. The home-grown company sits at the forefront of a new hybrid notion of work, where the idea of the workspace itself is no longer limited to the four walls of a singular office and individuals can work from home, traditional offices and co-working spaces all over the world.
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SME BUSINESS AND FINANCE AWARDS 2025 BEST OVERALL COMPANY STARTUP SERVICES Virtuzone
Virtuzone bagged the Best Overall Company Startup Services award in the UAE. The award acknowledged Virtuzone as a business innovator for its TaxGPT platform, built on the advanced GPT-4 AI model and for the crucial role it plays in supporting the diversification of the UAE’s economy – a key strategic goal for the country. The ‘world’s first’ AI-powered corporate tax assistant program assists UAEbased businesses in understanding and complying with new corporate tax processes and regulations. Built on OpenAI’s advanced Generative Pre-trained Transformer 4 (GPT-4) language model, TaxGPT delivers instant, specific and complete answers to queries about the new corporate tax law, drawing from online publications by the UAE’s Ministry of Finance and the Federal Tax Authority. TaxGPT is the second AI-assisted tool launched by Virtuzone. Virtuzone has previously launched a Corporate Tax Calculator and a Business Setup Cost Calculator, built an iconic V-shaped headquarters in the metaverse and partnered with Binance, becoming the first UAE corporate services provider to accept cryptocurrency payments via Binance Pay.
BEST LEGAL ADVISORY FOR SMES AND STARTUPS CVML
CVML was the recipient of the Best Legal Advisory for SMEs and Startups award. The legal advisory firm received this accolade for its crucial role in helping SMEs flourish amidst the rapid economic diversification and vibrant startup ecosystem of our region, demonstrating a strong commitment to all its clients. Recognising SMEs’ pivotal role in the UAE’s economy, CVML has emerged as a crucial supporter, providing tailored legal guidance to help these businesses thrive. CVML understands the unique challenges faced by SMEs, from navigating complex regulations to securing intellectual property. The legal advisory firm’s commitment goes beyond traditional legal advice, offering proactive solutions and fostering a supportive environment. By empowering SMEs with robust legal frameworks, CVML is not just serving clients; they are actively contributing to the UAE’s ambitious economic vision, ensuring these crucial enterprises can flourish and fuel the nation’s continued prosperity.
MOST INNOVATIVE FREE ZONE INITIATIVE Meydan Free Zone
Meydan Free Zone received the Most Innovative Free Zone Initiative award in recognition of its distinguished services and the significant opportunities it provides for startups in a highly competitive market, including the free zone’s innovative approach, mAssist foundational services and mCore with its comprehensive assistance menu, complementing their ongoing daily support functions. The economic free zone prioritises business success through mAssist, a suite of solutions designed to tackle various challenges and guide businesses of all sizes through regulatory and operational complexities. For entrepreneurs and startups, mCore delivers essential services for an effortless launch. Meydan Free Zone also offers a single business license encompassing an extensive range of over 2,500 activities, granting business owners significant flexibility without incurring extra costs for multiple categories
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