The Finance World Magazine| Edition: September 2022

Blockchain and its importance in virtual asset world
Air Taxis: From fantasy to reality in Dubai
DeFi modernizing crypto lending routes
How is inflation affecting UAE?
September 2022 thefinanceworld.com
EDTECH STARTUPS
DRIVE EDUCATIONAL
GROWTH IN UAE
The government’s assistance has
accelerated the development of
EdTech startups.
UAE GOLDEN VISA:
FUELING NATION’S
FINANCIAL GROWTH
Golden visa holders in the
UAE can purchase specialized
health insurance plans.
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Blockchain and its importance in virtual asset world
Air Taxis: From fantasy to reality in Dubai
DeFi modernizing crypto lending routes
How is inflation affecting UAE?
September 2022 thefinanceworld.com
Masdar: Global Leader of clean energy
Are NFTs the next revenue generation stream?
BNPL: A new replacement for credit cards?
Guidelines to keep in mind for CT
SHARIF
EL-BADAWI
CEO OF
DUBAI
FUTURE
DISTRICT
FUND
EDTECH STARTUPS
DRIVE EDUCATIONAL
GROWTH IN UAE
UAE GOLDEN VISA:
FUELING NATION’S
FINANCIAL GROWTH
The government’s assistance has
accelerated the development of
EdTech startups.
Golden visa holders in the
UAE can purchase specialized
health insurance plans.
UAE - AED 30 | USA - USD 8.5 | KSA - SR
60 | Qatar - QAR 30 | Oman - OMR 3.5
| Bahrain - BD 3.5 | Kuwait - KWD 2.5
| UK - £6.5 | EU - €7.5
Regulation of NFT trading in the UAE:
Why It Matters?
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Contents SEPTEMBER
PERSONAL FINANCE
P07 | Risk assessment within
portfolio creation
2022
ENERGY
P08 | UAE: Aiming towards
Sustainability and Green Growth
CRYPTOCURRENCY
P40 | DeFi modernizing crypto lending
routes
P48 | Cryptocurrency News
UAE BANKING
P12 | Influence of the Russia-
Ukraine conflict on UAE Banking
P14 | UAE Banking News
P16 | UAE banks’ contributions
to GDP growth
FINTECH
P19 | Fintech laws and
regulations within UAE
P22 | Fintech News
BUSINESS
P24 | How is Inflation
affecting UAE?
P26 | Business News
P34 | Kroma: A success story
of defying odds to reach new
heights
START-UP
P27 | EdTech startups drive
educational growth in UAE
P32 | Start-up News
P11 | Energy News
EVENTS
P30 | UAE residents enjoy
broadening investment into art
MERGERS AND
ACQUISITIONS
COVER
STORY
P16
Regulation of NFT
trading in the UAE:
Why It Matters?
P36 | Mergers & Acquisitions News
INVESTMENT AND
FUNDING
P38 | Investment and Funding
News
P64 | UAE programs to fund
entrepreneurs and start-ups
CORPORATE TAX
P45 | Key points highlighting the UAE’s
corporate tax law
ENTREPRENEUR IN FOCUS
P46 | Ronaldo Mouchawar Co-founder
and CEO of Souq.com
DIGITAL ASSETS
P50 | Blockchain and its importance in
virtual asset world
HEALTHCARE
P53 | UAE: Opportunities in the
Healthcare Industry Post Pandemic
P42 | UAE Golden Visa: Fueling nation’s
financial growth
P56 | Healthcare News
P58 Corporate Results
TRAVEL
P60 | Air Taxis: From fantasy to reality
in Dubai
P62 | Travel News
REAL ESTATE
P68 | New reporting requirements for
real estate transactions in UAE
P70 | Real Estate News
STOCK MARKET
P66 | Al Ansari: UAE exchange
business to consider IPO
P66 | Salik, the latest IPO in Dubai,
aims to raise $1 billion
P67 | DFM announces inclusion of
TECOM to General Index
P67 | UAE excels as 24 MENA IPOs
raise $13.5 billion in H1 2022
P72 | Global News
6 www.thefinanceworld.com September 2022

Personal Finance
Risk assessment within portfolio creation
Risk scoring is a simple yet
clever hack that addresses
an investor’s risk-taking
ignorance and adds a certain
amount of professional
finesse to portfolio construction.
A risk assessment provides investors
with knowledge of their risk appetite
and helps them determine whether
an investment is suitable for their
portfolio. This reduces the likelihood
of risk shocks and keeps the portfolio
on track toward long-term wealth
accumulation without being disrupted
by short-term bear markets or
corrections.
Risk assessment forms the basis
of a sophisticated, three-step, riskoriented
portfolio construction process
practiced by professional investment
advisors and experts.
• Investors undergo a risk
assessment to determine their riskbearing
capacity.
• This risk category for investment
portfolios are chosen with historical
risk levels that correspond to the
desired level of risk.
• Investment portfolios proven
to produce the highest returns are
selected.
This risk-assessment-based approach
allows investors to choose optimal
portfolios designed to maximize
return potential within a set target risk
without being swayed by short-term
volatility surprises or risk shocks.
Because investment losses remain
within expected limits, risk assessment
brings consistency, science, discipline,
and purpose to portfolio construction,
greatly increasing the likelihood of
realizing promised return potential.
Two people, even from the same
socio-economic class, can have very
different personal/economic realities.
Personalization is central to the risk
assessment approach, enabling us to
design optimal investment portfolios
as well as increasing our chances of
success over other approaches driven
by the one-size-fits-all.
Risk assessment is not a one-time
activity. To maximize its potential, a
risk assessment should be conducted
after any significant financial/personal
event. It enables risk assessment
A risk assessment provides
investors with knowledge of
their risk appetite and helps
them determine whether an
investment is suitable for
their portfolio
as an effective tool for creating and
maintaining optimal investment
portfolios over the investment horizon.
Steps and precautions to consider
before portfolio creation
Assess Risk Tolerance
Risk and return are usually inversely
related. The more risk an investor
takes, the higher the potential return
they expect. Individual stocks are
generally riskier than government
bonds. Cash carries little to no risk,
other than the potential loss of
purchasing power over time. Because
of the higher risk, stocks have higher
return potential and lower yields than
government bonds but are much more
stable in value.
Diversify Investments
The next aim should be to build
a diversified portfolio offering you
optimal returns while also safeguarding
corpus from undesirable eventualities.
Allocate Assets Wisely
Tracking your investment
performance allows you to correct
course on time. But don’t react
prematurely to poor performance.
For example, the stock market is
volatile, which can underperform
equity investments and affect portfolio
returns.
Rebalance Portfolio
Regular reviews also help assess
whether we are adhering to our asset
allocation strategy. Without regular
adjustments, the portfolio may
become too aggressive or conservative
concerning its risk profile, making it
less likely to meet its objectives.
Risk Management
Portfolio risk management is one of
many portfolio management processes,
but it has a specific role that affects the
entire portfolio. It is about planning,
assessing, and responding to risks.
To achieve the desired level
of overall risk or tip the scale
on the positive side, a portfolio
risk management plan needs to
be developed. However, because
of the downstream impact on
portfolio components, portfolio risk
management must address the root
causes of potential threats. In other
words, remediation of negative risks
should be done at the root level.
However, positive risk capitalization
must be done at the organizational and
portfolio level.
Developing a portfolio risk
management plan begins with a risk
management plan that describes
the structure of risk management
activities and how they will be carried
out. This is where the plan is created
and completes the procedures,
schedules, and references to
corporate policies, risk management
policies, and procedures that define
the organization’s risk tolerance,
thresholds, and strategies.
The main goal of portfolio risk
management is to reduce the impact
of negative events and increase the
impact of positive events on the
portfolio. Portfolio risk management
requires a balancing act between the
portfolio manager and all stakeholders.
This is because the composition of
the portfolio dynamically shifts and
changes as programs and projects are
improved, delayed or manipulated
to maintain strategic fit for portfolio
balance and reach.
September 2022 www.thefinanceworld.com 7

Energy
UAE: Aiming towards
Sustainability and Green Growth
The UAE has invested more than $40 billion in clean energy over the last 15 years
and has plans to invest an additional $160 billion in clean and renewable energy
sources over the next three decades on the road to net zero.
According to experts, the
Middle East and North
Africa (MENA) are one of
the most climate-vulnerable
regions, with the destructive
impact of climate change
becoming increasingly evident in the
shape of droughts, water scarcity,
and elevated pollution levels. Despite
this, the region is regarded as wellpositioned
to become a leader in
renewable energy and green and
blue hydrogen. While oil and gas will
continue to play a significant role in
the regional energy landscape, the
region has witnessed the promising
emergence of a new, more circular
economy.
According to the plans, the UAE
wants renewables and nuclear
facilities to make up for half of its
installed power capacity by 2050,
which will help decarbonize its grid
and boost green hydrogen production.
Simultaneously, the country will
adopt carbon capture and storage
(CCS) technology enmasse to mitigate
emissions from continued fossil-fuel
production and support blue hydrogen
production. Leveraging on the financial
resources, technological expertise, and
client base it has amassed from being
a top 10 oil exporter in recent decades,
the UAE plans to diversify from fossil
fuels to supplying renewable energy
and clean hydrogen to overseas
customers in the coming decades.
In its first investment in the UK,
ADNOC will take a 25% stake in the
design stage of BP’s blue hydrogen
project, H2Teesside, which is expected
to kickstart the UK’s hydrogen
8 www.thefinanceworld.com September 2022

economy at scale with the development
of two 500-megawatt hydrogen
production units by 2030. The project
is targeting the start of operations in
2027. The Abu Dhabi-based renewable
energy company, Masdar, also signed
a memorandum of understanding to
acquire a stake in BP’s proposed green
hydrogen project, HyGreen Teesside.
This project plans to produce 60
MWe (megawatt electrical input) of
hydrogen at start-up in 2025, increasing
to 500 MWe by 2030. Together, these
two projects could deliver 15% of the
UK government’s recently expanded 10
GW target for hydrogen production in
2030, according to the statement.
According to Global SWF (New
York-based research firm), the Emirati
sovereign wealth fund Mubadala
Investment company’s renewables
arm has already invested more than
$20 Billion in clean energy projects,
surpassing other state investors and
public pension funds. However, UAE
investments in oil-and gas-related
businesses remain higher. The
UAE, which is the seventh-largest
oil producer in the world, plans to
invest in and develop clean energy
projects that generate up to 100
gigawatts at home and overseas by
the end of the decade. This would be
four times the current commitments
and deployments. The government
has merged its national oil company
with Mubadala, a power-generation
company, to jointly own Masdar,
the country’s renewable investment
development and investment arm. No
financial details were disclosed, but
the companies said TAQA will own
43% of Masdar’s renewable business,
Mubadala retains 33%, and ADNOC
holds 24% following the transaction.
ADNOC will hold a 43% stake in
Masdar’s green hydrogen business,
Mubadala has 33%, and TAQA owns
24%.This merger will bring together
renewable assets under one brand,
consolidating them and helping the
government achieve net-zero emission
by 2050.
On the demand side, the UAE has
formed partnerships to develop a
hydrogen economy with major energy
consumers like Japan and Germany,
and government officials said the
country is discussing with its oil and
gas customers over future hydrogen
supply.
The state-owned company produces
over 300,000 mt/year of hydrogen and
plans to raise its output to 500,000
mt/year. The current production is
mainly grey hydrogen, but ADNOC is
promising to shift to green and blue
hydrogen. Phase I of ADNOC’s Al
Reyadah CCUS facility with a capacity
of 800,000 mt/year was commissioned
in 2016. Phase II, which has a capacity
of 2.3 million mt/year, is due by 2025,
and the 2 million mt/year Phase III will
come online by 2030. This is designed
to capture CO2 from steel making and
gas processing.
More than 130 countries have set
or are considering a goal of net-zero
emissions by 2050. Achieving net-zero
on a global scale, however, requires
$125 trillion in climate investment
by 2050, according to research
commissioned by the United Nations
Framework Convention on Climate
Change (UNFCCC). While that level
of investment hasn’t been achieved
yet, it’s ramping up. In 2021, the world
spent $755 billion on deploying lowcarbon
energy technologies, up 27%
from the year prior. The U.S. invested
$114 billion in clean energy last year,
up 17% from 2020. Several European
countries also made the top 10 list,
with Germany, U.K., and France
rounding out the top five. In total,
European countries invested $219
billion in the energy transition.
The Solar Park, is the largest singlesite
solar park in the world, using the
IPP model, and will have a production
capacity of 5,000 megawatts MW by
According to the plans, the UAE wants
renewables and nuclear facilities to make up
for half of its installed power capacity by 2050,
which will help decarbonize its grid and boost
green hydrogen production. Simultaneously,
the country will adopt carbon capture and
storage (CCS) technology enmasse to mitigate
emissions from continued fossil-fuel production
and support blue hydrogen production.
September 2022 www.thefinanceworld.com 9

Energy
The program aims to supply clean electricity to 100 million people by
2035. The program will raise funds from the public and private sectors for
clean energy investment with guidance and coordination from the UAE’s
MoFAIC and Office of the Special Envoy for Climate Change.
2030, with a total investment of 50 AED
billion. When completed, the solar
park will reduce more than 6.5 million
tonnes of carbon dioxide emissions
annually. The capacity of solar energy
projects that have been operated
at the Solar Park is 1,627 MW using
photovoltaic solar panels. DEWA has
1,233 MW projects underway using
photovoltaic panels and concentrated
solar power (CSP). The production
capacity of clean energy amounts to
about 11.5% of the total energy mix in
Dubai and is expected to reach about
14% by the end of this year. The current
production capacity of the Hassyan
Power Complex, which runs on natural
gas, has reached 1,800MW, using the
IPP model. A further 600MW will
be added in 2023. This will raise the
capacity of the Complex to 2,400MW.
The UAE Ministry of Foreign
Affairs and International Cooperation
(MoFAIC) announced the launch of
Etihad 7 at Abu Dhabi Sustainability
Week 2022. Etihad 7, a UAE-led
innovation program, is dedicated
to securing funding for renewable
energy projects in Africa. The program
aims to supply clean electricity to
100 million people by 2035. The
program will raise funds from the
public and private sectors for clean
energy investment with guidance and
coordination from the UAE’s MoFAIC
and Office of the Special Envoy for
Climate Change. Commenting on
the initiative, His Excellency Sheikh
Shakhboot bin Nahyan Al Nahyan,
Minister of State, Ministry of Foreign
Affairs and International Cooperation,
said: “United by economic, cultural,
political, and people-to-people ties,
our two regions are inextricably
linked, with enormous potential for
further cooperation in the years to
come. One of the keys to unlocking
that potential, supercharging Africa’s
economies, and allowing millions of
people to contribute to building a
prosperous continent is electricity–
specifically, renewable energy. As the
proud host of COP 28 next year, the
UAE is committed to partnering with
Sub-Saharan African nations to achieve
sustainable development and promote
the welfare of the larger region by
advancing together in the field of
renewable energy.”
“Etihad 7 is a truly collaborative
program, one that acknowledges and
adapts to the needs and requirements
of our partner nations…The UAE
deeply appreciates the contributions
of all African nations in this shared
journey of development, and we in the
UAE look forward with enthusiasm
and optimism to a future in which our
countries channel our cooperation into
creating new avenues for our peoples
to thrive,” He concluded.
10 www.thefinanceworld.com September 2022

ALEC Energy and
Stantec sign MoU
In a Memorandum of Understanding
(MoU) signed, ALEC Energy
and Stantec, a world leader in
sustainable design and engineering,
aim to combine their respective
expertise in renewable energy to help
private and public sector organisations
meet and surpass the objectives set
forth in the UAE Energy Strategy
2050.According to the agreement,
the two businesses will collaborate
on initiatives to create best practises
in building design, systems, and
services while also providing Net Zero
solutions as they apply to particular
endeavours. Stantec’s expertise in
sustainable design techniques, design
enhancement, creative and renewable
technology integration, performance
optimization, and cost assessment will
be a complement to ALEC Energy’s
demonstrated track record in the
implementation of complicated solar
energy projects.
Soon, 270,000 Dubai
houses will use
sustainable energy
Over 270,000 Dubai homes will
receive sustainable energy from
the fifth phase of Mohammed
bin Rashid Al Maktoum Solar
Park, the largest single-site solar park
in the world, according to officials’
announcement. Saeed Mohammed Al
Tayer, managing director and CEO of
Dubai Electricity and Water Authority
(DEWA), visited the solar park and
checked on the status of the projects
there. The fifth phase, which will
be implemented incrementally until
2023, will also lower annual carbon
emissions by 1.18 million tonnes. By
2030, the solar park is anticipated
to have a total capacity of 5,000
megawatts (MW). One of the main
foundations of the Dubai Renewable
Energy Strategy 2050 and the Dubai
Net Zero Carbon Emissions Strategy
is the park’s projects, which aim to
generate all of Dubai’s electricity from
clean sources by the year 2050.
Masdar will work on
renewable energy
projects in Tanzania
An agreement was inked by
the Emirati renewable energy
company Masdar to create
renewable energy projects in
Tanzania. According to the agreement
between Masdar and the Tanzania
Electric Supply Company, they will
work on two energy projects that
together would eventually generate
2,000 megawatts of onshore wind and
solar power. The UAE is investing in a
range of renewable energy and green
technology projects to diversify its
economy and reduce its dependence
on oil. The agreement with Tanzania
demonstrates the UAE’s continued
interest in strengthening economic
ties with countries on the African
continent.
Coral Energy
overtakes other
petroleum suppliers
of Pakistan
Dubai-based trader Coral Energy
has just overtaken state-run
Pakistan State Oil (PSO) as
Pakistan’s largest importer of
fuel oil after winning a spate of import
tenders. According to a spokesman
for Pakistan’s energy ministry,
Coral Energy obtained contracts
to supply PSO with eight fuel oil
cargoes between April and August
as the nation’s need for oil for power
generation increased as a result of the
sharp increase in the price of liquefied
natural gas. This is equivalent to
more than 475,000 tonnes of fuel oil.
Data from Pakistan’s Oil Companies
Advisory Council showed that in
the first half of this year, Pakistan
imported roughly 992,500 tonnes of
fuel oil. Since PSO started purchasing
fuel oil from Coral Energy this year,
the private trader has taken over as
PSO’s primary supplier in July
and August.
Energy News
Mediclinic Middle
East & EWEC
partner-up for clean
energy in hospitals
One of the top private hospital
groups in the UAE, Mediclinic
Middle East, and the Emirates
Water and Electricity Company
(EWEC) have partnered to offer
renewable energy to power the
hospital’s structures and utilities.
The present deal, which is part of
the hospital group’s attempts to
further advance its decarbonization
campaign, calls for the provision of
clean energy for an entire operational
year. Additionally, EWEC will offer
Mediclinic clean energy certificates
(CECs), a programme launched by the
Abu Dhabi Department of Energy (DoE)
to give Abu Dhabi-based organisations
a powerful route to achieving their
targeted sustainability objectives.
DEWA contributes
to reducing carbon
emissions by
217,370 tonnes
The clever concept of Dubai
Electricity and Water Authority
(DEWA) to conserve microscopic
drops of water is unquestionably
heading toward a powerful ocean. The
utility firm reported that its “High Water-
Usage Alert” service, which identifies
an unusual spike in water consumption
at a user’s premises and sends SMS and
email notifications, has now assisted
in identifying 1,062,781 incidences of
water leakage, 23,199 faults, and 11,566
incidents of excessive load. Since the
service’s debut three years ago, the
savings from using it have reduced
217,370 tonnes of carbon emissions.
To understand the significance of that
reduction, consider that 217,370 tonnes
of CO2 are equivalent to 1.09 million
trees planted or 108,000 gasoline
automobiles driven for a whole year.
September 2022 www.thefinanceworld.com 11

UAE Banking
Influence of the Russia-Ukraine conflict on
UAE Banking
When Russia invaded
Ukraine on February
24, 2022, it was the
first large-scale war of
aggression in Europe
since World War II.
Unimaginable to many, the conflict
also brought many unexpected
impacts that have reverberated across
the globe. The greatest economy in
the Arab world, the kingdom, had a
little increase in annual inflation in
June 2022, from 2.2 percent in May
to 2.3 percent. According to Jadwa
Investment, the Russia-Ukraine warrelated
increase in food costs around
the globe is expected to push Saudi
Arabia’s inflation rate for 2022 to 2.4%
this year.
Rating agencies expect the improving
economic conditions combined with
higher interest margins and a decline
in provisions will improve the overall
profitability of UAE banks. The
four largest banks, First Abu Dhabi,
Emirates NBD, Abu Dhabi Commercial
Bank, and Dubai Islamic Bank, which
account for 78 percent of UAE banking
assets, reported a combined net profit
of $8 billion, up 31 percent from $6
billion in 2020, according to Moody’s.
(Image: https://www.expatica.com/
app/uploads/sites/15/2020/01/atmemirati-dirham-notes.jpg
)
According to S&P Global Ratings’
latest UAE Banking Sector 2022
Outlook, the impact of the Russia-
Ukraine conflict on the UAE banking
The impact of the
Russia-Ukraine
conflict on the UAE
banking system
is expected to be
“limited for the
time being.”
12 www.thefinanceworld.com September 2022

Based on the report, the UAE banking sector will benefit
from expected interest rate hikes, assuming banks take a
prudent approach toward borrowers.
system is expected to be “limited for
the time being.”
“The UAE’s economic activity will
accelerate in 2022, due to higher oil
prices, supportive government policies,
and normalizing non-oil activity,”
according to the report authored by
Mohamed Damak, the senior director –
of Financial Services, and Puneet Tuli,
an associate at S&P Global Ratings.
Based on the report, the UAE
banking sector will benefit from
expected interest rate hikes, assuming
banks take a prudent approach toward
borrowers.
Stable and strong capital buffers,
good funding profiles, and anticipated
government support should keep banks
creditworthy in 2022.
Corporates are gradually recovering
as economic activity normalizes and
the oil price rises, but industries such
as aviation and hospitality remain
vulnerable.
The rise in Dubai real estate prices
may slow because a structural
oversupply of residential property
may pose a long-term challenge to the
market.
Increasing investor risk aversion and
the price of oil are two other factors
that the report claims could have an
indirect effect.
Although higher oil prices are
probably going to help the UAE
economy’s confidence and sentiment,
even more, no significant shift in the
macro-picture of continued lending
acceleration is anticipated.
The UAE’s economic expansion
may spur lending growth, though this
possibility is muted by the anticipated
rise in interest rates, which may
impede lending growth in the second
half of 2022.
The UAE banking system, which
operates with a sizable gross external
debt position, has a sizable amount
of external liquid assets that could
be used if banks’ access to external
funding is restricted due to investor
risk aversion.
“Moreover, we expect the
government to support systemically
important banks should the need
arise,” the report added.
Strong capital buffers supported
the banking sector despite
lower profitability in 2020–2021,
demonstrating that capitalization is still
strong.
“With the anticipated increase in
profitability, we expect banks to further
strengthen their capital buffers. We
think banks will start paying dividends
at pre-pandemic levels from 2022,
as profitability improves,” the report
added.
Deposit growth for banks could be
considered moderate. Because private
corporations and retail depositors
prioritized saving over spending in a
still difficult operating environment in
2021, overall deposit growth increased.
According to the report, the banking
sector’s deposits will increase slightly
in 2022 as the economy continues
to improve and corporate cash flow
generation becomes more robust.
A higher return on deposits under a
higher interest rate environment could
hasten deposit growth.
The SRB intervened in the European
operations of Sberbank, Russia’s
biggest lender, which looked set to fail
due to a run on deposits after Russia
invades Ukraine. A second Russian
bank, VTB, continues to operate in
Europe because, unlike Sberbank,
its largely Germany-based depositors
had not fled. The SRB requires banks
in the EU to issue a set amount of
special debt that can be written down
in a crisis to replenish depleted capital
without the need for taxpayer bailouts.
There were no worries that banks
won’t meet a 2023 deadline for special
debt issuance, SRB officials said, but
banks need to continually be on guard
as existing debt expires over time.
Banks in the UAE, Saudi Arabia,
and South Africa will remain relatively
insulated from the fallout of the
Russia-Ukraine conflict due to limited
dealings with Russian and Ukrainian
counterparties while Turkish and
Tunisian banks are most likely to suffer
from the negative indirect effects,
S&P Global Ratings said. For the UAE
banking sector, the conflict is likely to
have a limited impact for now, given
their limited exposure to Russian and
Ukrainian counterparties.
Egypt’s bank sector remains exposed
due to the country’s significant reliance
on staple food imports, the report
stated, which added that government
support could be vital to mitigate
the damage to the nation’s economy.
Ukraine and Russia accounted for
approximately 85 percent of Egypt’s
wheat imports in 2021. Higher food
prices lifted inflation to 8.8 percent in
February 2022, prompting the Central
Bank of Egypt to increase interest
rates — for the first time in years – by 1
percentage point.
According to S&P, UAE banks are
expected to record an increase in
lending this year as the Arab world’s
second-largest economy charts a strong
recovery from the Covid-19 pandemic.
UAE banks’ funding structures benefit
from strong core-customer deposit
bases and limited reliance on external
funding. The higher interest rate
environment means a higher return
on deposits, which could further
accelerate deposit growth. However,
it would inevitably rise the cost of
funding as some deposits migrate to
interest-bearing products from no-or
low-interest-bearing products. Strong
capital buffers continue to support
the UAE’s banking sector. With the
anticipated increase in profitability,
S&P analysts expect banks to further
strengthen their capital buffers. Some
banks have raised additional capital
in the form of Tier 1 instruments over
the past couple of years to benefit from
existing rates.
September 2022 www.thefinanceworld.com 13

UAE Banking News
Total assets of UAE banks
estimated at Dh 3.44 trillion as
of May 2022
T
he UAE Reserve Bank announced that the total
assets of financial institutions, consisting of lender
approvals, increased by 2.9% from Dh 3.345 trillion
at the end of April 2022 to Dh 3.443 trillion at the end
of May 2022. Total bank deposits increased by 1.6%
from Dh 2.008 trillion at the end of April 2022 to Dh 2.04
trillion at the end of May 2022. The increase in total
bank deposits was driven by a 2.0% increase in deposits
from residents. It hid a decline in deposits from nonresidents
of 1.2 percent.
UAE steps up training of central
bank officials
The launch of the certification
program comes as the UAE
intensifies its efforts to
strengthen its anti-money
laundering and anti-terrorist financing
(AML/CTF) framework to comply with
international standards. Twelve UAE
National Supervisors have already
enrolled in the program’s first cohort.
The bank has announced that further
cohorts are planned. Khaled Mohamed
Balama, the governor of the central
bank, said in a statement that “the
Governor of CBUAE
launch of this intensive programme
is part of the Central Bank’s efforts
to achieve effective supervision on
licenced financial institutions by its
examiners and supervisors, which
would contribute to the UAE’s financial
stability”. The Central bank of the
UAE has recently imposed sanctions
on a number of financial institutions
for having violated tax compliance
policies. In the first half of 2022, the
government imposed fines totalling to
$11.2 million for AML cases.
Dubai’s Nakheel
to raise AED 17bn
to restructure
finances
Dubai-based developer Nakheel
is rumoured to be planning a
loan of around AED 17 billion
(US$4.6 billion) to restructure
existing debt. Nakheel approached
local banking groups such as Dubai
Islamic Bank, Emirates NBD and
others for loans. The banks are also
asking regional and global lenders
to participate in the deal. Nakheel
is the lead developer of other major
residential areas in Dubai such as
Jumeirah Islands, Jumeirah Park and
Al Farjan. Also home to Jumeirah
Village Circle, Discovery Gardens,
International City, the community’s
portfolio has recently attracted
attention with new property sales.
14 www.thefinanceworld.com September 2022

SRC signs SR500
million real estate
loan with Riyadh
Bank
HSBC expands global brokerage
services with ADGM
audi Real Estate Refinance
SCompany (SRC), wholly owned
by Public Investment Fund,
has signed an agreement with
Riyadh Bank to acquire an
SR500 million (US$133.13 million) real
estate financing portfolio. The deal
between SRC and Riyad Bank is the
second largest mortgage refinancing in
the UK. Chaired by SRC CEO Fabrice
Susini and Riyadh Bank CEO Tarek Al
Sadan. “As a result, Saudi citizens are
more likely to have access to mortgage
solutions that meet their needs, thus
achieving the Vision 2030 goal of
increasing family home ownership in
Saudi Arabia from 47% to over 60%
within four years.”
BisB launches
‘End-to-End’
mobile business
account
Bahrain Islamic Bank (BisB)
has launched an end-to-end
mobile account opening feature
for corporate customers via
an enterprise mobile application,
enabling them to open and manage
their accounts electronically. Freeing
corporate customers from the hassle of
visiting branches and financial centres,
the launch of the feature is in line with
the bank’s strategy to continuously
develop innovative digital financial
solutions that enable secure banking
operations. To ensure the highest level
of security, the Face ID sign-in process
requires a copy of the applicant’s
ID card as an additional layer of
authentication. After confirmation
by the bank, the corporate customer
can immediately apply for all of BisB
corporate products and services and
conduct daily financial transactions.
HSBC expands its market and
securities services division
in Abu Dhabi Global Markets
(ADGM) with an arrangement
custody license for government,
institutional and investment
management clients. HSBC, which
is increasingly focused on Asia to
drive income, said all its regions were
profitable in the first half. The Lender
High oil prices
increase the
profits of GCC
banks
Due to the high price of oil,
the GCC banks’ bottom lines
performed well in the second
quarter of this year, with net
income and assets reaching all-time
highs. A robust q-o-q increase of 4.8%
in Q2’s total revenues for GCC banks
was driven by higher interest rates
after local central banks raised their
policy rates in response to US Federal
Reserve rate hikes, totalling $24.9
billion. Consequently, net interest
income grew strongly by 9.6% to
reach $17.1 billion. This rise, however,
was somewhat offset by a quarterly
reduction in non-interest revenue,
which fell by 4.5% and reached $7.7
billion in Q2.
stated that the earning prospects
remain positive based on the current
market consensus and continuous
credit growth of 2022. Earlier this
month, HSBC said its pre-tax profit
was stable in the second quarter,
with higher earnings and net interest
margins offsetting higher expected
credit loss burdens amid heightened
uncertainty in the global economy.
UAE banks help
companies
increase
their rates for
sustainability
The UAE Government might
potentially introduce credit
enhancement incentives for
investments backed by the banking
industry to provide direct funding
through designated funds, or both to
speed up the scaling up of transitionrelated
projects and activities. Banks are
familiar with the tried-and-true project
finance framework, which may be used
to scale up renewable energy projects.
The private sector is responsible for
a relatively large portion of the UAE
economy, and cannot succeed in this
crucial contest unless they accept
the need for change and cooperate
with the banks. Credit facilities with
sustainability/ESG links are a crucial
component of this strategy.
September 2022 www.thefinanceworld.com 15

Cover Story
Regulation of NFT trading in the UAE: Why
It Matters?
NFTs are distinct cryptographic assets and are different from digital currencies and
cryptocurrencies. They portray actual collectibles including trade cards, artwork,
films, music, real estate, and photographs and paintings.
Nonfungible tokens (NFTs)
are unique, non-transferable
assets built on the blockchain.
NFTs are purchased and sold
online in specialized marketplaces and
serve as ownership proof on a digital
ledger system. Similar to the highend
art market, the value of NFTs is
determined by market demand.
Since NFTs contain certifications of
authenticity, they cannot be changed.
Each NFT runs on a decentralized
network that employs blockchain
technology. NFTs can also be used
to represent the identities, property
rights, and domain name ownership
of a person or organization. NFTs
can be used for a variety of corporate
applications, including supply chain,
evidence of ownership of goods or
services, and collectibles for loyalty, all
credit goes to the blockchain, which
prevents copies and destruction.
NFTs are essentially digital versions
of actual collectibles. So the purchaser
receives a digital file rather than an
actual oil painting to display on the
wall.
Additionally, they receive sole
ownership rights. NFTs can only
have one owner at a time. Due to the
distinctive data of NFTs, it is simple
to confirm ownership and transfer
tokens between owners. Additionally,
the author or owner may choose to
store particular data inside them. As
an illustration, artists can sign their
work by putting their signature in the
metadata of an NFT.
Are NFTs subject to regulation in
the UAE?
To determine the regulatory
approach in the UAE, crypto assets are
not generally characterized by their
intended use. Instead, it is generally
determined based on actual use.
For example, a crypto asset may
be designed to be a utility token (and
thus potentially not regulated as a
financial product), but it is commonly
traded for investment purposes due
to its popularity. Such a crypto asset
is likely to be classified as a financial
product and subject to UAE securities
16 www.thefinanceworld.com September 2022

regulations. As a result, considering
the actual use of the crypto asset is
critical in determining whether such an
asset would be subject to any financial
regulations.
As a result, there are no regulations
that specifically regulate NFTs, but
each of the UAE mainlands namely
Abu Dhabi Global Market (ADGM)
and Dubai International Financial
Centre (DIFC), have their regulations
governing crypto or virtual assets,
which regulate such assets based on
their actual use in business.
One of the world’s first jurisdictions
to regulate crypto assets that falls
within its definition of virtual assets.
Within its regulations, the term “virtual
assets” is defined as any “digital
representation of value that can be
digitally traded and functions as:
• a medium of exchange
• a unit of account
• a store of value
But in any jurisdiction, it does not
have legal tender status. A Virtual
Asset is:
• It is neither issued nor guaranteed
by any jurisdiction, and it performs
the aforementioned functions solely
through an agreement among the
Virtual Asset’s users.
• Distinct from fiat currency and
electronic money.
Since the definition of virtual assets
is broad enough to include crypto
assets, which could potentially include
NFTs as well, the financial regulator,
the Financial Services Regulatory
Authority, clarified through guidance
that its regulations are limited to
stablecoins, cryptocurrencies, digital
assets, and derivatives/funds (including
any ancillary activities conducted with
them) and do not extend to utility
tokens, which lack the features and
characteristics of virtual assets.
Following the ADGM’s virtual
asset regulations, the Central Bank
and the Securities and Commodities
Authority (SCA) on the UAE
mainland issued crypto asset
regulations, broadly defining crypto
assets as cryptographically secured
digital representations of value or
contractual rights that use a type of
distributed ledger technology and
can be transferred, stored, or traded
electronically, as a result, potentially
capturing NFTs. Even though the
Central Bank, as the currency
regulator, has limited its regulations
to crypto assets, they are being used
as stored value facilities for storing
currency or payment tokens (e.g.,
stable coins or other tokens backed by
fiat currency). As a result, they do not
apply to NFTs. SCA, on the other hand,
clarified that its regulations apply to
most types of crypto assets, whether
securities or otherwise, that are listed
and traded on an organized market,
except those regulated by the Central
Bank.
The regulations issued by the ADGM,
Central Bank, and SCA were followed
by the Dubai International Financial
Centre’s (DIFC) regulatory framework
on investment tokens. The current
regulatory framework is intended to
regulate:
1. Securities and derivatives in the
form of a cryptographically secure
digital representation of rights
and obligations issued, transferred
and stored via distributed ledger
technology or other similar technology.
2. A digital representation of
rights and obligations that is
cryptographically secure and is issued,
transferred, and stored using DLT or
other similar technology, and:
• Confers rights and obligations
that are substantially similar to those
conferred by security or derivative or
• Has a substantially similar purpose
or effect to security or derivative.
Accordingly, since, by their very
nature, the NFTs may not qualify in
being a financial product, they may still
be subject to financial regulations in
the United Arab Emirates, when it is
dealt with by the way of the business,
depending upon its original use and
the jurisdiction, under which it is being
dealt with.
The UAE’s technology and media
laws apply to NFTs as crypto assets.
NFTs are not addressed in the current
UAE media and content law because
they are a new development. However,
this does not negate the importance
of considering these laws from a legal
standpoint.
In addition, the UAE issued
Federal Decree-Law No. 34 of 2021
on the Fight Against Rumours and
Cybercrime, which includes provisions
for the offering and promotion of
unrecognized crypto assets. The law
specifically prohibits anyone from
using the internet or technology
for “promotion, advertisement,
mediation, or dealing in any form,
or encouraging dealing in a virtual
currency, cryptocurrency, stored value
unit, or any payments unit not officially
recognized in the UAE or without being
there are no regulations that
specifically regulate NFTs, but
each of the UAE mainlands
namely Abu Dhabi Global
Market (ADGM) and Dubai
International Financial Centre
(DIFC), have their regulations
governing crypto or virtual
assets, which regulate such
assets based on their actual
use in business.
September 2022 www.thefinanceworld.com 17

Cover Story
licensed by the competent body.”
As a result, vetting is required for
the content and advertising of the NFT
before creating and offering them in
the UAE, just as it is for the creation
and promotion of other digital assets.
What sets NFTs apart from
cryptocurrencies?
NFT is an abbreviation for nonfungible
tokens. Even though it is
frequently developed using the same
programming style as cryptocurrencies
such as Bitcoin or Ethereum, the
similarities end there. Because
cryptocurrencies and traditional
currency are “fungible,” they can be
traded or converted into one another;
a dollar is always worth another
dollar and a bitcoin are always worth
a bitcoin. This means they are both
of equal worth. Cryptocurrency
is a dependable way to complete
blockchain transactions due to its
fungibility.
Everything you need to know about
NFT wash trade
When a securities transaction, or
several transactions, are staged to
appear as real purchases or sales but
are later revealed to be false, this
practice is known as “wash trading”.
This typically happens when
an investor purchases and then
immediately sells the same security
or investment. As a result, a trader
appears to be trying to pass off trade
as having been made even if it hasn’t
been, claiming a change to their
portfolio when there hasn’t been one.
In financial parlance, wash trading
is also referred to as round-trip
trading, which can occasionally cause
misunderstanding among non-finance
professionals.
This is an explicit attempt at market
manipulation in some instances. In
other cases, wash trading may be the
outcome of a more innocent error
or plain ignorance on the side of
the trader who attempted the deal.
Although they can also happen in
the bitcoin business, wash trades are
typically used to describe the practice
of falsely misrepresenting stock or
securities trade activity. Regardless of
the type of finance, you choose to trade
centralized (CeFi) or decentralized
(DeFi)—it is critical to comprehend the
potential repercussions of engaging in
a wash trade.
In the instance of intentional wash
trading, such action typically occurs
to sway buy/sell judgments in favor of
the trader or party initiating the trade.
Wash trading is strongly discouraged
by most people, whether it’s to
artificially inflate price/activity or to
spuriously impact trend line indicators
that are used to evaluate the market.
$44 billion NFT sales last year
Many people, according to several
sources, think that wash trades may
have had some influence on the $44
billion in non-fungible token (NFT)
sales that were made last year, at least
in part. Although it’s very challenging
to claim this with a high degree
of certainty, some cases are truly
concealed from view.
Attempts are made by bitcoin
exchanges to inflate their trading
volumes. Chainalysis found 262 people
who have sold an NFT more than 25
times to a self-financed address by
using blockchain analysis.
It’s interesting to note that the 110
successful wash traders have together
earned approximately $8.9 million
from this activity, much outpacing the
$416,984 in losses incurred by the 152
unsuccessful wash traders.
Why is wash trading prohibited?
Some governments have opposed
NFT although there is no regulation or
categorization for it. A South Korean
cryptocurrency exchange called
Bithumb, for instance, was charged in
2018 with promoting wash trading with
false volume totaling more than $250
million.
Data from the NFT tracker
CryptoSlam revealed that wash trading
accounted for $18 billion, or 95%, of all
trade volume on the LooksRare NFT
market.
The decentralized nature of
cryptocurrencies makes it challenging
to identify the offenders, even though
crypto wash trading is forbidden in
several places. Unlike conventional
financial products like equities, which
have verified Know Your Customer
criteria, blockchain-powered assets
can be traded anonymously, increasing
the danger of wash trading. Without
a determination by the authorities as
to which jurisdiction is in charge of
overseeing cryptocurrency, the risk is
caused by deceptive price and volume
statistics.
In conclusion, wash trading is a
risky regulatory activity that, if done
on purpose, can even be considered
illegal. This is why it’s crucial to
comprehend what wash trading entails.
A trader must take extreme care to
avoid getting involved in wash trading
to avoid irreparable harm to their
professional reputation. Although
it’s not strictly unlawful in the same
manner, crypto wash trading can
nevertheless harm a trader’s reputation.
Wash trading is prohibited in the
majority of traditional U.S. markets,
but because blockchain exchanges
are conducted anonymously, it is still
challenging to police in the crypto
world. This is something that NFT
traders will use to give the appearance
of great demand and raise the price of
an NFT collection. Typically, there are
warning indicators that an NFT has
been wash traded, such as a significant
disparity between the floor price and
list price of an NFT in a collection.
In the end, determining if an NFT’s
price has been altered requires
investigating an NFT collection and
reviewing the transaction history.
To curb the same, necessary
regulations need to be implemented
by authorities.
18 www.thefinanceworld.com September 2022

Fintech
Fintech laws and regulations within UAE
The United Arab Emirates continues to claim its position as the Middle East’s leading Fintech
market. It has become a popular jurisdiction in the GCC for various Fintech companies in
recent years.
Fintech encompasses a wide
range of activities, but it
should be noted that some
specific categories are
currently trending, such as
BNPL, Digital Payments, InsurTech,
and Cryptocurrencies. The growing
popularity of the Fintech industry
is underpinned by the government
supportive policies and the
implementation of attractive Fintech
programs in both land and free trade
zones.
The Financial Services Regulatory
Authority (FSRA) of Abu Dhabi
Global Market (ADGM) has initiated
consultations to introduce a regulatory
framework to support participants
using innovative technologies in the
financial services (Fintech) sector. This
follows an announcement by ADGM
Chairman earlier this year that Abu
Dhabi aims to become the financial and
technology hub of the Arabian Gulf.
The ADGM proposal is similar to
the announced initiative to open
a regulatory sandbox by Financial
Services regulators in the UK,
Singapore and Australia. However,
ADGM’s announcement provides a
significant first-mover advantage in the
GCC region.
A key feature of the proposed
RegLab is a “blank slate” approach to
regulation. Fintech participants who
are authorized by the FSRA to engage
in regulated activities within the
RegLab are not subject to the standard
rules and regulations applicable to
regulated activities under the Financial
Services and Markets Regulations, 2015
(FSMR). A customized set of rules
can be selectively applied based on
risks identified in the Fintech business
model.
Central Banks, SCA, FSRA and
DFSA have their own laws, rules,
regulations and policies governing
Fintech activities in their respective
jurisdictions, but they coordinate
the regulatory environment and are
responsible for the overall Fintech
ecosystem. Efforts are being made to
promote development.
There are no transit rules in these
jurisdictions. Fintech participants are
therefore required to restrict their
activities within the jurisdiction in
which they are incorporated, requiring
additional licenses to conduct activities
in other jurisdictions.
Last month, Abu Dhabi Global
Markets hosted its annual Fintech
September 2022 www.thefinanceworld.com 19

Fintech
The regulation
categorized retail
payment services into
four licensing categories.
PSPs must apply for one
category. A PSP applying
for a license must
meet the initial capital
requirements. Initial
capital requirements
vary by license category
and can reach up to
AED 3 million for some
categories.
Abu Dhabi Festival, bringing together
stakeholders from around the world
to launch progressive initiatives
within the Fintech ecosystem. The
festival held an innovation challenge
where Fintech companies presented
their specific problems and received
concrete implementation support from
key industry players.
In May, Dubai-based Free Zone
DMCC launched the Crypto Center,
to support companies operating in
the crypto and blockchain space.
DMCC already uses distributed
ledger technology in blockchain
agricultural trading platform Agnota
and international trading platform
Digital Sugar. The Free Trade Zone
aims to provide a full range of services,
including incubation and investment
opportunities for early-stage startups,
educational events, consulting and
innovation services.
UAE laws supporting streamlined
Fintech modulation:
• Central Bank Circular No. 15/2021
regarding Retail Payment Services and
Card Schemes Regulation (RPSCS)
The RPSCS Regulations were
published in the Official Gazette on
July 15, 2021, and came into force
within one month of publication.
Regulations prohibit retail payment
services without prior approval from
the central bank.
The regulation sets out the
requirements and conditions for
obtaining a license to provide retail
payment services and operate card
schemes. Payment Service Providers
(PSPs) have one year to meet their
licensing requirements.
The regulation categorized retail
payment services into four licensing
categories. PSPs must apply for
one category. A PSP applying for
a license must meet the initial
capital requirements. Initial capital
requirements vary by license category
and can reach up to AED 3 million for
some categories.
• Central Bank Circular No. 9/2020
regarding Large Value Payment
Systems Regulations
This regulation focuses on the
Large Scale Payment System (LVPS),
the financial infrastructure system
that supports financial and wholesale
activities in the UAE.
This rule covers licensing
requirements related to LVPS, and
20 www.thefinanceworld.com September 2022

Fintech
obligations and ongoing requirements
related to designated LVPS.
The regulation applies to:
• LVPS that are operated in the UAE,
or
• LVPS accepts the clearing
or settlement of transfer orders
denominated in the AED currency both
in the UAE and outside the UAE.
A prior license from the Central
Bank is required to operate an LVPS in
the UAE. LVPS must ensure compliance
with central bank directives and
information requests.
• DFSA- Consultation Paper No. 138
– Regulation of Security Tokens
The Dubai Financial Services
Authority (DFSA) has initiated a
regulatory framework for “investment
tokens” based on Consultation Paper
No. 138 – Regulation of Security
Tokens, published in March 2021.
“Investment Token” is defined to
include:
• Security (which includes,
for example, a share, debenture,
or warrant) or derivative (an
option or future) in the form of a
cryptographically secured digital
representation of rights and obligations
that is issued, transferred, and stored
using Distributed Ledger Technology
(“DLT”) or other similar technology; or
• A cryptographically secured digital
representation of rights and obligations
that is issued, transferred, and stored
using DLT or other similar technology
and: (i) confers rights and obligations
that are substantially similar to those
conferred by security or derivative; or
(ii) has a substantially similar purpose
or effect to security or derivative.
Major cryptocurrencies (Bitcoin,
ETH, etc.) are not securities and are
not considered to be materially similar
in nature or purpose to securities
or derivatives and are therefore not
subject to this regulatory framework.
Companies wishing to provide
financial services (e.g. issuing, trading,
holding, trading, advising, portfolio
management) related to investment
tokens within or from the DIFC must
meet certain licensing and technical
requirements set by the DFSA.
• The Stored Value Facilities (SVF)
Regulation
The Stored Value Facility (SVF)
Regulation, issued in September 2020,
obsoletes and replaces the regulatory
framework for stored value and
electronic payment systems.
The regulation defines an SVF as a
facility whereby a customer can pay
a sum of money to the SVF issuer in
exchange for the storage of that money
on the facility.
This regulation applies to companies
wishing to undertake an SVF activity,
with certain exceptions. For instance,
the regulation does not apply to the
below SVFs:
• SVFs used for certain cash reward
schemes.
• SVFs used for purchasing certain
digital products.
• SVFs used for certain bonus point
schemes.
• SVFs that can only be used within
a limited group of products or services
providers.
• SVFs within which (subject to
being accepted by the UAECB) the
aggregate amount of the float of the
facilities does not exceed AED 500,000
and the aggregate number of customers
is not more than 100.
SVFs are given 1 year period
to comply with the Regulation’s
requirements. The main change
we noticed is the removal of the
requirement to have a regulated
bank as a majority shareholder.
However, other technical and capital
requirements apply. In addition, this
rule expressly prohibits the sale of his
SVF abroad in the UAE.
• Federal Decree-Law No. 45 of 2021
regarding Personal Data Protection
(PDPL)
The law applies to:
• Organizations incorporated in the
UAE that process data of subjects
inside or outside the UAE; and
• Organizations outside of the UAE
that process data of subjects inside the
UAE.
Regional data processing restrictions
mean that Fintech companies that
collect and process data from UAE
customers must not physically
maintain and store data within the UAE
and transfer it outside the country.
Business in the UAE will need to set
up a physical hub to store data or hire
a service provider in the UAE to host
company’s servers or data.
All foreign companies wishing to
access clients in the UAE must obtain
a license locally in order to carry out
their intended activities. This process is
either in the case of a digital business
or the company itself is based outside
UAE but is interacting with local
customers, as the legal framework for
these evolving digital industries is not
always clear.
Fintech investment in MENA has
already reached $819 million in the first
half of 2022. This is already about the
same as in the whole of 2021 and more
than 14 times what was in 2016. One of
the biggest increases this year is Saudi
Arabia-based cloud company Foodics.
Base technology and payment platform
for restaurants, Rain, a Bahrain-based
cryptocurrency exchange, Tribal Credit
- a business credit card for start-ups in
emerging markets in the United States
and Egypt, Tabby - a BNPL platform
in the UAE, Paymob - an Egypt-based
omni-channel merchant financial
services platform.
The MENA region also attracts
major global crypto companies.
Cryptocurrency exchanges such as
Crypto.com, Binance, FTX, and Bybit
have all moved to Dubai. The world’s
largest cryptocurrency exchanges,
Binance and Bybit, have moved their
headquarters to the city, while Crypto.
com and FTX have opened regional
outposts. All are also licensed by
the Dubai Virtual Assets Regulatory
Authority (VARA).
September 2022 www.thefinanceworld.com 21

Fintech News
Sanabil and Shorooq Partners raise $100
million for Tamara
The most recent investment round
for Tamara brought in $100 million,
increasing the company’s total capital
to $216 million in equity and debt
since its founding. Sanabil Investments, a
portfolio company of the Public Investment
Fund (PIF) of Saudi Arabia, is the lead
investor in the Series B equity round.
Shorooq Partners, a venture capital firm
based in Abu Dhabi, Coatue, and Endeavor
Catalyst also participated. Checkout.com, a
leading global finance company, has made
a follow-up investment in the capital round.
In addition to those who already use BNPL,
31% of inhabitants of the UAE, 27% of Saudi
Arabians, 26% of Kuwaitis, and 18% of
Bahrainis stated they also want to use the
technology in the next 12 months.
FinTech Hive selects
logistics partner as
Emirates Post Group
As part of a sponsorship deal
with FinTech Hive to support
the project, Emirates Post
Group (EPG) has been selected
the logistics partner of the fintech
accelerator programme Hive 22. The
postal group hopes to facilitate the
creation of technological solutions
for the enhancement of the customer
experience as well as the range of
technological co-creation among
various stakeholders within the group
by taking part in the programme. The
chosen start-ups will have access
to a larger network of business
stakeholders, which is anticipated
to foster creative co-creation of
technological solutions.
The Founding Partners of Shorooq
Partners - Shane Shin and
Mahmoud Adi
Hub71 company Zywa
raises $3 million in a
seed round
Zywa, a teen-focused fintech
firm, has launched a $3 million
US seed investment round to
reimagine banking for Gen
Z across the MENA. The start-up
provides a prepaid card for teenagers
and a money management and
saving app. It is a part of Hub71, Abu
Dhabi’s international tech ecosystem.
Strategic angel investors joined the
round’s investors, who also included
Goodwater Capital, the largest
consumer digital venture capital firm in
the world, Dubai Future District Fund,
Rebel Fund, Trampoline VC, Zemu
VC, and some of the most well-known
European family offices.
Saudi Central Bank
approves 2 new
FinTech businesses
Lean Technologies and Mod5r will
supply open banking solutions,
raising the total number of
licenced Fintech companies
working under its regulatory sandbox
to 38, the Saudi Central Bank (SAMA)
stated. The implementation of SAMA’s
sandbox environment function and the
achievement of the Kingdom’s Vision
2030 goals through the Financial Sector
Development Program are just two
of the strategic goals that have been
conquered as a result of the measures
done up until this point (FSDP). The
well-known FSDP is a bold initiative
with the goals of fostering financial
inclusion, savings and investment
behaviour, and economic growth.
ValU prepares to
begin its operations
in Saudi Arabia
The consumer finance division
of EFG Hermes, valU, is getting
ready to increase its roots in
Saudi Arabia before the year is
over. According to the sources, valU
is working to complete all necessary
operational steps in collaboration with
the Saudi Al-Hokair Group, which
recently purchased a stake in the
platform worth about 5%, as well as the
Marakez Company, to finance vaIU’s
points of sale and merchants, provided
that it expands with other products in
the future. A deal to buy a 4.99% share
in ValU for $12.4 million was concluded
by Fawaz Abdul Aziz Al Hokair, Salman
Abdul Aziz Al Hokair, and Abdul Majid
Abdulaziz Al Hokair in June of last
year, raising the company’s value to
$247.4 million.
22 www.thefinanceworld.com September 2022

India’s Beams
Fintech Fund
seeks UAE
investors
As financial services become
more accessible to the
full potential of the digital
environment, an Indian fintechfocused
fund is looking to attract
investments from the UAE and the
Gulf. Fintech is growing in India,
whether it has to do with remittances,
consumer lending, or digital wallets.
Beams Fintech Fund, an early investor
in payments portal BharatPe, is looking
to capitalise on this by acquiring
positions in companies with strong
growth potential. Beams’ objective
is to invest $15 million to $20 million
in firms going through growth stage,
Series B and C rounds, and led by
“high-quality founders,” with a target
size of $120 million and a “green-shoe”
option.
UAE’s new
payment route
opened by
Tranglo
Anew payment route to the UAE
has been launched, according
to the cross-border payments
company Tranglo (UAE).
This is a part of Tranglo’s Middle
East expansion programme, which
concentrates on network development
and infrastructural investment to
introduce additional channels with
significant growth potential. An
integrated collaboration with the
financial system of the UAE, Tranglo
can now provide quick and seamless
fund transfers to that country. The
direct-to-bank payment service from
Tranglo is accessible to one-off senders
and recipients around-the-clock.
DIFC FinTech Hive & ADIB conducts
sixth iteration of “Speed Meeting.”
For the sixth
year running, a
“speed meeting”
session was
sponsored by Abu
Dhabi Islamic Bank
(ADIB) in association
with DIFC FinTech
Hive. This year, eight
FinTech companies
from different nations
had the chance to
present their ideas
and have interactive
discussions with
ADIB management and specialists in digital banking. Islamic FinTech, RegTech,
payments, fraud risk, and gamification were discussed. These firms might keep
looking into different opportunities for cooperation with ADIB as a way to
enhance the bank’s developing digital products.
Tabby raises
$150 million in
debt financing
Atalaya Capital Management
and current investor Partners
for Growth have provided
$150 million in debt financing
to the Gulf region’s “Buy Now Pay
Later” fintech Tabby (PFG). This
credit facility, which followed Tabby’s
Series B extension earlier this year,
is the largest credit facility secured
by a fintech in the GCC to date. The
portal has so far raised $275 million
and provides customers with financing
for small- to medium-sized goods. In
the first half of 2022, Tabby’s revenue,
“active” consumers, and retailer
partners all increased by a factor of
ten. In a market where credit is hard
to come by and consumers can’t
simply overextend themselves, Tabby
continues to function with superior
economics powered by limited risk.
Dubai fintech Ziina
tests “payments
keyboard” for
businesses
The Dubai-based fintech Ziina
is submitting a patent for a
“payments keypad” to facilitate
the movement of money online.
Businesses may use the keyboard,
which is now in beta mode, to generate
payment links and collect money in three
clicks from within the messaging app
of their choosing, such as WhatsApp,
Instagram, or Messenger. According
to Faisal Toukan, the app’s CEO and
co-founder, “The ZiiBoard (was) built
exclusively for enterprises. Since our
founding in 2020, we have focused on
creating the most convenient means for
people to transfer and receive money.”
September 2022 www.thefinanceworld.com 23

Business
How is inflation affecting UAE?
The United Arab Emirates, as an
economy with an open capital
account and pegged foreign
exchange rate regime, has
limited scope for exerting an
independent monetary policy. More
specifically, given that it’s key policy
objective is to maintain a stable peg
with the US dollar, domestic shortterm
interest rates generally follow
US interest rates, and therefore, the
Central Bank of the UAE (CBUAE)
does not anchor the inflation target.
Moreover, inflation in the UAE moves
for the most part in response to other
forces that are not under the direct
control of the central bank. Specifically,
non-tradable account for 63% of the
CPI basket, of which housing accounts
for 39% of the total. Further, inflation of
tradable (37% of the CPI basket) moves
with developments in the nominal
effective exchange rate (NEER) largely
attributed to bilateral movements in
the US dollar concerning major trading
partners.
The inflation rate in the Arab
countries is expected to rise to
approximately 7.5 percent in 2022,
compared to 5.7 percent in 2021,
reflecting the impact of international
supply chain challenges and the
rise in the prices of agricultural and
industrial commodities as well as
energy products due to current global
developments. Dubai’s consumer
inflation rose to 4.6 percent in April,
when compared on a year-on-year
basis. This was the highest reading
24 www.thefinanceworld.com September 2022

since May 2015, according to a report
from Emirates NBD. For the month-onmonth
figure, consumer prices rose 1.2
percent, the biggest monthly increase
since January 2018, according to new
data from the Dubai Statistics Center.
The 16th edition of the Arab
Economic Outlook Report released by
the Arab Monetary Fund (AMF) added
that some inflationary pressures are
expected to emerge over the forecast
horizon due to the anticipated increase
in aggregate demand levels; the rise
in consumption tax rates in some
Arab countries, the depreciation of
some Arab currencies against major
currencies, and the impact of other
inflationary factors that vary from one
Arab country to another. “Food prices
(8.6 percent higher year-on-year) were
the second biggest driver of inflation
in April, followed by recreation and
culture costs and restaurant and hotel
prices.”
CPI is calculated by using a Young
index, which assumes expenditure
weights are constant over time.
The CBUAE has developed a
collection of other operational and
regulatory policy tools, such as
liquidity management and macro
prudential measures, to complement
the traditional monetary policy tools in
the absence of independence to set the
policy interest rate. These tools play
a significant role in better monitoring
monetary conditions (including
inflation) and safeguarding overall
economic and financial stability in the
UAE.
The Young index differs from the
Lowe index, where quantities are
constant over time and expenditure
shares are price-updated every month.
In general, the Young index tends
to underestimate price movements
relative to the Lowe index.
In the first quarter of this year, the
UAE’s inflation increased by 3.35
percent amid higher prices in 11 main
sectors. The country’s Consumer Price
Index (CPI) jumped to 102.70 points
in Q1-22, compared to 99.37 points in
the year-ago period. The UAE Minister
of Economy Abdullah bin Touq Al
Marri said the country is doing all it
can to limit the impact of global price
rises and inflation. He said commodity
price hikes are a worldwide challenge
and that the ministry has “wellstudied
policies and plans” to contain
unjustified increases in the country’s
The inflation rate in the Arab countries is
expected to rise to approximately 7.5 percent
in 2022, compared to 5.7 percent in 2021,
reflecting the impact of international supply
chain challenges and the rise in the prices
of agricultural and industrial commodities as
well as energy products due to current global
developments.
markets.
The economy of the United Arab
Emirates (or UAE) is the 5th largest
in the Middle East (after Iran, Saudi
Arabia, Turkey, and Egypt), with a
gross domestic product (GDP) of
US$501 billion (AED 1.84 trillion) in
2022. The UAE economy is heavily
reliant on revenues from petroleum and
natural gas, especially in Abu Dhabi.
In 2009, more than 85% of the UAE’s
economy was based on oil exports. In
2011, oil exports accounted for 77%
of the UAE’s state budget. In recent
years, there has been some economic
diversification, particularly in Dubai.
Abu Dhabi and other UAE emirates
have remained relatively conservative
in their approach to diversification.
Dubai has far smaller oil reserves than
its counterparts.
The UAE’s economy shrank by
6.1% in 2020. The country’s account
balance dropped to six percent of
GDP in 2020 from 8.5 percent in 2019
due to the underperformance of both
hydrocarbon and non-hydrocarbon
exports mitigated by lower imports. In
late 2021, it was announced that UAE’s
banking assets are expected to grow
by between 8 percent and 10 percent
in 2022 as the second-biggest Arab
economy continues to recover from
the covid-19 pandemic. It was also
announced the UAE’s economy might
grow at a faster than projected rate,
reaching 4.6% in 2022.
In an interview with the Emirates
News Agency (WAM), Michael
Bolliger, Chief Investment Officer
Emerging Markets at UBS Global
Wealth Management, has stated
that the UAE’s economy expanded
by 3.8 percent in 2021 as a result of
appropriate government initiatives and
plans as well as the immunization of
all residents and citizens. Bolliger also
noted that the expansion of the non-oil
sector also contributed significantly to
this economic recovery. Bolliger noted
that the UAE’s economic diversification
is demonstrated by the swift recovery
from the Covid-19 pandemic and the
significant contributions of non-oil
sectors. The transportation, tourism,
and hospitality sectors also made
solid recoveries in the recent period,
as evidenced by the rise in visitor
numbers and hotel occupancy rates. In
2022 and 2023, respectively, the GCC
economies will rise by 6.4% and 3.4%,
he insisted. The US’s GDP fell by 0.9
percent in the second quarter of 2022,
and worries of a recession in Europe
are growing, he observed, which has
caused the global economy to trend
downward.
September 2022 www.thefinanceworld.com 25

Business News
ADNOC signs a $1.17
billion deal with the
logistics division
The logistics and services sector
and Abu Dhabi National Oil
Company (ADNOC) have
agreed to a five-year, $1.17
billion arrangement to increase
offshore capacity. ADNOC Offshore
awarded ADNOC Logistics & Services
(ADNOC L&S) the contract, which
calls for the hiring of 13 self-propelled
jack-up barges. The state-owned oil
corporation stated that the barges
will be “deployed across ADNOC’s
offshore areas and are designed to
support a wide array of operations,
including project work, maintenance,
and accommodation”. Al Suwaidi
continued, “the award enables
exceptionally high ICV, which can
encourage new business prospects to
assist the expansion and diversification
of the UAE’s economy”.
UAE non-oil
commerce
increases to $431
billion in H1-22
In comparison to the same period
in 2021, the non-oil commerce
of the UAE increased by 17%
to around Dh1.58 trillion ($431
billion) in the first half of the year,
according to Sheikh Mohammed bin
Rashid, Vice President and Ruler of
Dubai. According to official figures,
this is the first time the nation’s non-oil
commerce has surpassed the AED
1 trillion threshold. In the first half of
the year, compared to the same period
in 2021, non-oil exports from the UAE
climbed by 8% to Dh180 billion. Nonoil
imports in the nation increased by
19% over the same period last year,
approaching Dh580 billion for the first
time.
SAMA declares the
beginning of the
“POS Service”
The inauguration of point-of-sale
(POS) services between Saudi
Arabia and Qatar was announced
by the Central Bank of Saudi
Arabia (SAMA). SAMA has emphasised
that the service will connect the Qatari
National Network and the national
payments network Mada (NAPS).
Through the Gulf Payments Network
(GCC-Net), Mada and NAPS cardholders
will now be able to conduct pointof-sale
transactions in Saudi Arabia
and Qatar, according to SAMA. Bank
customers in the Gulf can use the GCC-
Net to make cash withdrawals from
ATMs using the host nation’s currency.
According to SAMA, this procedure will
help bank customers - who have used
the available international payment card
networks to conduct POS operations -
pay less.
Abu Dhabi adds 126 new
economic activities to Tajer
The Tajer Abu Dhabi (Abu Dhabi Trader)
licence has been expanded to include 126 new
economic activities, according to the Abu Dhabi
Business Center (ADBC), a division of the Abu
Dhabi Economic Development Board (ADDED).
Business Small and Medium-sized businesses
(MSMEs) can get a company licence without having
to pay three years of rent for a commercial space or
work at a physical location. 29.5% of all economic
activities authorised and regulated by ADDED in 2021
were carried out by Tajer Abu Dhabi, reaching 4062
activities at present by the end of 2021.
EDB and MoCCAE provide financial
support to UAE agribusiness
UAE agribusiness is financially supported by EDB and the
Ministry of Climate Change. The action is a component
of the UAE’s 2051 National Food Security Strategy, which
is centred on putting effective agricultural techniques
into place which will increase output. One of EDB’s five priority
sectors is the UAE’s sustainable economic development and food
security, which is essential to boosting the nation’s competitiveness
and economic resilience. The two organizations will identify
opportunities for cooperation on food security and support small
businesses and start-ups. EDB provides financing solutions for
farms and MoCCAE organizes regular seminars and introductory
courses on the latest agricultural methods and techniques.
26 www.thefinanceworld.com September 2022

Start-ups
EdTech startups drive educational growth in UAE
EdTech, short for educational technology, refers to new technological implementations in
the classroom. In-classroom tablets, interactive projection screens and whiteboards, online
content delivery, and MOOCs are all examples of EdTech. EdTech can be a contentious topic.
As a large portion of the education system is unionized, there are concerns that EdTech is
attempting to phase out specific in-class duties to reduce costs.
With time constraints, it is difficult for a teacher to teach according to
curriculum, catch up with lower-level learners, and keep the top of the
class engaged in their work. By automating the assessment of ability
and adjustment of difficulty, EdTech can lead to better outcomes for
individual students and the class.
The creators of EdTech
emphasize the enhancement
potential of the software and
technology, freeing up the
teacher to move into more of
a facilitator role. With time
constraints, it is difficult for a teacher
to teach according to curriculum, catch
up with lower-level learners, and keep
the top of the class engaged in their
work. By automating the assessment
of ability and adjustment of difficulty,
EdTech can lead to better outcomes for
individual students and the class.
EdTech is still in the early stages of
development for even basic subjects
like math or reading and composition
skills. There are a variety of design
challenges for EdTech. The biggest
hurdle is adjusting to different learning
styles in the classroom. EdTech is
usually delivered through a laptop or
tablet, resulting in a read-and-respond
learning experience. Critics have
noted that this style can disadvantage
other types of learners—auditory and
kinesthetic-. As with any new field of
technological development, EdTech
will improve the more it is used, and
the more feedback is collected.
As the global Edtech market is
expected to reach, according to
Valustrat, UAE’s EdTech industry has
also risen to the occasion. Recently,
we’re seeing a steady rise in Edtech
startups in UAE. Furthermore, the
growth of EdTech startups in the UAE
has been sped up by the government’s
support
An example is Anjal Z, Abu Dhabi’s
Edtech accelerator, which runs a
program to help EdTech startups
specifically. It provides selected
startups with eight weeks of intense
training and mentorship. The topperforming
startup receives a chance
to qualify for $ 100,000 in non-equity
grant money, in-kind services, and
follow-on investments. It has 1300+
legal documents, keeping the current
UAE compliances in mind. Few startups
helping the Edtech industry are as
below:
September 2022 www.thefinanceworld.com 27

Start-ups
3asafeer
3asafeer is an edutainment company.
Their learning materials are
categorized according to difficulty
levels and the child’s age. They also
focus on learning material that will
increase emotional intelligence and IQ
among learners.
Coded Minds
Abjadiyat
Abjadiyat is an Edtech startup in UAE
that has built a platform for kids to
learn the Arabic language. They do this
in a fun and interactive manner. They
are a product of Ibdaa Kids, an Edu
Tech company founded and based in
Abu Dhabi. The platform is carefully
developed with leading linguists,
early childhood experts, world-class
engineers, and designers to deliver a
comprehensive Arabic teaching and
learning ecosystem for in-school and
at-home instruction and practice. They
have partnered with numerous schools
in Dubai with the vision to transform
the way kids learn.
CTS (Creative
Technology
Solutions)
CTS is a company offering IT solutions
for education in the Middle East. The
company was founded in 2013 in Dubai.
They’ve also designed educational
software, tablets, and interactive and
gamified learning platforms. CTS has
partnered with top technology players
like Intel, Microsoft, and Google. The
company has received funding from
Symphony Asia.
Coded Minds serve to educate people
right from kindergarten to adulthood.
Coded Minds also has projects, lessons,
and sessions to clarify students’
doubts. Today, the company educates
students of about 45 nationalities in 6
different countries. They aim to have
over 1 million students by the end
of 2022. Currently, they have raised
funding of AED 10 million.
Coded Minds serve to
educate people right
from kindergarten
to adulthood. Coded
Minds also has
projects, lessons, and
sessions to clarify
students’ doubts.
Almentor.net
Almentor.net is an e-learning platform
for professionals. They have videos in
two languages, namely – Arabic and
English. They even offer crash courses
on various topics. Their mission is
to empower individuals, learn from
experts in every field, and leverage the
power of knowledge.
Englease
The MENA area may take Englishspeaking
lessons online via the portal
Englease. They aim to make education
accessible to all demographics at
reasonable prices. They provide
instruction with native Arabic and
English speakers to assist their
customers in achieving perfect
pronunciation.
Along with preparation for
examinations like the IELTS and
TOEFL, they also provide flexible live
lessons. To study and grow, students
may also take a variety of competency
examinations. They have accreditation
as a CPD Training Provider.
SchoolVoice
An application called SchoolVoice was created
to bridge the communication gap between
parents and schools. One of the UAE’s Edtech
businesses offers an app that lets parents keep
tabs on their children’s classroom activities and
interactions with teachers. Ali Bin Yahia started
the business in 2012.
28 www.thefinanceworld.com September 2022

QiDZ
A working mother group created QiDZ
in 2017 as a resource for entertaining
suggestions for family-friendly
activities. The QiDZ platform motivates
working parents to spend more time
with their children. You may use the
smartphone app to look for kid-friendly
restaurants and attractions in Dubai.
You may plan and organize your
trips with QiDZ, one of the Edtech
companies in the UAE, and keep up
with the newest offers. Daily updates
to QiDZ include the newest DIY
projects, games, online resources, and
more. The business could secure 1.5
million dollars from its eight investors
in its initial investment round.
You may plan and organize your trips with QiDZ, one of the Edtech companies
in the UAE, and keep up with the newest offers.
DeepKnowledge
An E-library platform service called
Deepknowledge offers top-notch
library administration solutions.
This offers individualized access to
materials and information. Their goal
is to provide information that will aid
researchers and information seekers.
It is a cloud-based service that aids
businesses in starting their e-libraries.
The EdTech sector has seen a
sudden growth spurt since the virus
outbreak, and many forecasts that it
is here to stay. Several start-ups have
been catering to the needs of parents,
teachers, and schools, while many
more are now emerging in the market
to cater to various other training and
development requirements.
September 2022 www.thefinanceworld.com 29

Events
UAE residents enjoy broadening
investment into art
UAE residents and expats can count on the emirate to support the arts, be it classical or
contemporary. On the investment side, paintings can provide diversity to your portfolio due to their
volatility as an asset class. The interest in art increased as the UAE developed into a major hub for
trade, logistics, and transportation as well as a haven for jet setters.
The UAE’s booming art
industry benefited from
a variety of perspectives
and experiences thanks
to its expanding ex-pat
population, and galleries popped up
throughout the nation.
The three biggest emirates in the
UAE have adopted the arts in various
ways, each influenced by the goals
of its rulers and patrons. Abu Dhabi
has made investments in large-scale
international collaborations, Sharjah
has linked regional artists to a global
arts scene, and Dubai has evolved into
a hub for commercial art.
The ensuing proliferation of paid
murals, graffiti festivals, packed art
nights, and free performances have
made it possible for art to be seen
as a shared treasure that belongs
equally to the residents and the
more affluent art world. In order to
strengthen this artistic influence, the
Consulate General of India in Dubai
co-hosted an event called Divya
Chakra 2022 with HH Sheikh Ahmed
Bin Faisal Al Qassimi’s private office
on the auspicious occasion of the 75th
anniversary of India’s Independence
Day. This celebration honored India’s
spirit of peace, unity, and cultural
diversity.
An outstanding exhibition of 75
carefully chosen works of art by
artists from various nationalities
was on display at the event.
Additionally, honorable artists gave
LIVE performances as part of the
celebration. The Virtual Art Gallery was
announced, and artists from all over
the world could submit their works to
be a part of this momentous occasion.
30 www.thefinanceworld.com September 2022

H.E. Dr. Aman Puri, The Consul
General of India was seen heartily
interacting with artists exhibiting their
work. “The United Arab Emirates is
one country in the world where it is
also the whole world in one country. I
am sure in the last couple of years of
difficulty, the artist has really helped us
to lift our spirits and give us a message
of hope, peace and prosperity. Here in
the Consulate General of India, Dubai,
we are extremely proud and privileged
to be hosting these celebrations,
bringing artists from different genres
together and celebrating art in its
various forms.” he said, expressing
gratitude.
Many GCC museums and galleries
are also now offering virtual portals to
the interiors of their buildings as well
as to their collections, a great array of
which may now be accessed online.
The museum collections are now
accessible to the global public virtually,
enabling the Gulf states to share their
cultural treasures with international
virtual visitors and to exert a significant
influence beyond their borders keeping
in mind that such access is reserved
for those who are technologically and
culturally connected.
September 2022 www.thefinanceworld.com 31

Start-up News
Agritech start-up Graze-it begins
operation in UAE
Agritech company Graze-it, based in the UAE, has now officially started
operating in the UAE and the Kingdom of Saudi Arabia (KSA) with the goal
of revolutionising livestock feed for a more sustainable future. With the
help of cutting-edge controlled environment agriculture (CEA), which allows for a
water consumption that is 95% lower than conventional agriculture, the company
is resolving a significant food security challenge in the Middle East by growing
sustainable animal feed on-site at the consumer’s location.
Clara and Hub71 for automated
legal services of start-ups
A
relationship between Clara, a legal tech start-up that provides automated
legal services for entrepreneurs, and Hub71, Abu Dhabi’s distinctive
international digital community, was recently revealed. The collaboration
will assist the intricate legal procedures involved in starting, growing, and exiting
a start-up by giving Hub71-based start-ups access to Clara’s cutting-edge digital
platform. Clara is an operating system that digitizes and automates legal expertise
for start-ups. Led by a team of experienced entrepreneurs from the legal and
technology industries, Clara is ready to handle many of the tasks that lawyers do
today, including company formation, contract drafting, cap table creation, data
room building, transfers, and more.
UAE tech startup
Dukkantek
raises $10
million
Technology start-up in the UAE In
order to grow into new markets
and advance its core technology,
Dukkantek raised $10 million in a fresh
investment round. Beco Capital, an
early-stage venture capital firm based
in Dubai, served as the round’s lead
investor. Other investors included
Rocketship, Colle Capital, Comma
Capital, AMK Investment Office, Chaos
Ventures, Wamda Capital. According to
the statement, the funding “will further
access worldwide expansion, enhance
the platform’s technology stack, and hire
the top people in the region.” Previously,
in October, the store management
platform raised $5.2 million in a seed
round, bringing its total capital to $15.2
million.
UAE remains
start-up hub as
it raises $700
million in H1-22
The UAE remains MENA’s
richest and most developed
market, accounting for 50% of
all investments accumulated in the
region. According to the latest data,
the UAE raised nearly US$700 million
through her 85 deals in the first half of
this year, cementing its dominance as
a top destination for start-ups in the
MENA. Saudi Arabia takes second
place with 79 deals raising $584 million,
Egypt takes third place with her 78 deals
raising $307 million. Bahrain went up
three spots to position four in terms of
capital, garnering $116 million, while
Tunisia raised one spot to position five
thanks to a $36 million investment in its
entrepreneurs.
32 www.thefinanceworld.com September 2022

G42 opens
$10 billion
investment fund
The company that develops AI and
cloud computing technologies
revealed the information,
adding that it would launch the
investment fund in collaboration with
the Abu-Dhabi Growth Fund, which
is supported by the government.
The statement didn’t specify which
company of G42 will be in charge
of managing the investment fund”.
Since their founding, 22 start-ups in
the UAE have received investments
totalling almost $1.8 billion, accounting
for more than 60% of the list’s total
funding.
Peng Xio, Group
CEO of G42
Saudi fintech
start-up Tamara
raises $100
million
Saudi Arabia BNPL start-up,
Tamara is planning to go public
in the “future” and has secured
$100 million in its second investment
round to support that goal. Sanabil
Investments, which has the support
of the Public Investment Fund, the
kingdom’s sovereign wealth fund,
served as the lead investor in Tamara’s
Series B investment round. The FinTech
would utilise the profits to offer new
products and grow into “adjacent”
areas, with an emphasis in the MENA
region. In the future, Tamara plans to
list in Saudi Arabia, with a potential
second listing in other countries. The
business, which has already secured
$216 million in debt and equity,
anticipates turning a profit.
12 new start-ups introduced
by Ma’an in Abu Dhabi
Abdulmajeed
Alsukhan -
Co Founder
& CEO –
Tamara
UAE investor
bet on Indian
NFT Artfi start-up
raising $3.2M
A
non-fungible token (NFT)-
focused firm has raised $3.26
million from a number of
investors, including Raza Beig, director
of Landmark Group, UAE, and Sheikha
Hend Al Qassemi, a member of the
Emirate of Sharjah’s ruling family. A
$100 million value was used to raise
the present funds. With the goal of
democratising the fine art market, Artfi
fractions expensive works of art into
limited-edition NFTs. The polygon
network will be used to mint the NFTs.
In addition to preparing for whitelisting
for its initial fine art NFT offering in
August, the fine art fintech start-up is
also planning to create a museum in
the metaverse where the art collection
will always be available.
The Ma’an Social Incubator (MSI) sixth cohort, the first of
2022, was completed by the Authority of Social Contribution
(Ma’an), with 12 participating start-ups that had grown their
business concepts inside the incubator. A strategic cooperation
between Ma’an and start AD, a start-up accelerator situated
at NYU Abu Dhabi, allowed for the organisation of the 6th
Cohort. The 6th Cohort assisted these social entrepreneurs in
developing novel solutions applicable to the financial literacy
and education technology (EdTech) sectors under the theme of
“Entrepreneurship for Social Good. Salama Al Ameemi, Director-
General of Ma’an, and Dr. Mugheer Khamis Al Khaili, Chairman of
the Department of Community Development in Abu Dhabi, both
attended the ceremony.
September 2022 www.thefinanceworld.com 33

Business
Kindly brief us about the company
and its services.
Kroma is the answer to all kinds of
delivery requirements of a customer.
• Courier: We collect and drop off
your papers, packages, and other such
items in a timely way.
• Food: The meals are supplied
without touch and within social
distancing protocols to individuals,
groups, or parties.
• Pharmacy: Pharma needs regular
prescription drugs or emergencies
that will be delivered promptly and
prioritized.
• Grocery: Regular orders may be
made with a range of retailers, which is
handy for customers.
• Heavy Goods: Heavy goods such
as furniture or bulk orders can be
placed.
• B2B Delivery: All pickups and
deliveries for companies of all sizes.
Mayur Gohel, CEO and Founder of Kroma Delivery Services
Kroma
A success story of defying
odds to reach new heights
All start-up companies are looking for growth. While some can
work it out, others are still figuring out how to do the same. Mayur
Gohel, CEO and Founder of Dubai-based Kroma Delivery Services,
spoke exclusively to Finance World Magazine about the changes
caused by the pandemic in the UAE’s food delivery industry and
how businesses are adapting.
We only started 18 months ago, and
in that time, we have 150+ bike delivery
riders working on the road with various
clients. In addition, we are expanding
in other GCC countries such as Qatar
and Bahrain.
How did the pandemic affect
business?
In the midst of the chaos of
COVID-19, restaurants adapted because
they had to, as an estimated 110,000
establishments closed permanently.
The industry quickly learned that it
needed to adapt to survive, which is
to rely on more delivery services. Now
that the sector has had time to adjust to
these changes, their long-term potential
is clearer.
Online ordering has also made it
easier than ever to get takeout or
delivery. Overall, online transactions
increased as delivery became a
popular and preferred option following
the implementation of lockdown
restrictions. It paved the way for
backend technology evolution.
34 www.thefinanceworld.com September 2022

The pandemic may have played the role of a catalyst in the sudden
increase in demand, but UAE was already prepared to handle a
genuine online delivery business flood. So, there is no doubt that the
eCommerce delivery business has a rock-solid future in the UAE.
What do you think the future of
the UAE’s delivery industry will be?
It would not be wrong to say that
digital transformation has touched
almost every industry on earth.
The logistics industry is also not an
exception to this. Due to the growing
craze of online shopping in Dubai,
every industry including logistics has
realized the importance of automation.
The buyers’ gradual inclination
towards online shopping will help
eCommerce delivery businesses to
grow further in Dubai in the future.
This makes a healthy flow of online
orders keeping the courier & delivery
companies busy throughout the year.
The eCommerce delivery business
has an impeccable space for growth
and development in the UAE. The
pandemic may have played the role
of a catalyst in the sudden increase
in demand, but UAE was already
prepared to handle a genuine online
delivery business flood. So, there is no
doubt that the eCommerce delivery
business has a rock-solid future in the
UAE.
What are the key things that you
focus on?
• Customer partnerships.
• Vision of long-term working
relationships with our customers.
• Quality of service.
• Knowledge of services we offer.
• Employee happiness and retention.
• Feedback to improve regularly.
What’s the one thing which helped
your business grow significantly?
There are several factors that
contribute to business growth. But,
if we had to pick one thing, it would
be that the financial assistance
we received from iFund Factoring
Forfaiting Services was a significant
boost to our business. They have a
client-friendly technology, process,
and people. All the process is managed
digitally. They gave us support from
the initial period for working capital in
terms of financing.
September 2022 www.thefinanceworld.com 35

Mergers and Acquisitions
Last year, Agthia
Group made
acquisitions of AED
2.3 billion
After investing more than AED2.3
billion ($626.2 million) in
expansion plans last year, Abu
Dhabi’s Agthia Group is preparing
to make additional acquisitions in
Egypt and Saudi Arabia. In order to
maintain its market leadership, the
business has been staging acquisitions
around the region, especially in the
sizable economies of Egypt and Saudi
Arabia. Agthia most recently bought
a 60 percent stake in the Egyptian
food manufacturer Abu Auf Group. It
made an announcement earlier this
year to invest AED 90 million in the
construction of a new manufacturing
plant in Saudi Arabia.
Emaar decides to
sell Namshi to Noon
Emaar Properties has decided
to sell fashion and accessories
portal Namshi to Noon “in
principle”. It was this week that
Emaar said its Board of Directors
was to take up the potential sale
of Namshi. Immediately thereafter,
Emaar’s stock went through a sharp
rise. “The price shall be a cash
consideration of $335,200,000 noting
that the price is within the range which
has been defined by an independent
valuer approved by the Securities &
Commodities Authority,” Emaar said.
“The above cash consideration is
the equity value of Namshi, which is
equivalent to $350 million of ‘enterprise
value’ of the company.
Huspy purchases UAE mortgage brokerages
Huspy, a proptech business based in the UAE, has announced the acquisition
of Just Mortgages and Finance Lab, two mortgage brokerages. Both
companies’ founders and staff members will join Huspy. The most recent
acquisition deals come after Huspy acquired Home Matters in January of this
year, a move that established the business as a market leader in the UAE’s
mortgage industry. Ankit Shah, head of M&A, mortgages at Huspy, claimed that
the combination of the two companies will enhance the expertise that Huspy was
known for while also providing additional advantages to UAE homebuyers.
Actis to purchase controlling interest in
Yellow Door Energy
As demand for renewable energy sources increases globally, the British
private equity firm Actis will purchase a majority interest in the Dubaibased
renewable energy developer Yellow Door Energy. Actis has signed
the deal’s final transaction agreements, which are still awaiting regulatory
approval. Actis’ Energy 5 Fund, its most recent energy fund with $6 billion in
investable capital, will provide the funding for the acquisition. According to Actis,
it would implement its buy-and-build power strategy to scale the company and
speed up growth. To date, the company has contributed to more than 70 renewable
energy projects, producing about 11 gigawatts of renewable energy worldwide.
Apollo buys a share in Aldar Investment
Properties
For $400 million, New York-based Apollo
Global Management purchased an 11.1
percent share in Aldar Investment Properties
(AIP), a division of the dominant Abu Dhabi
real estate company. The purchase comes after
Apollo previously declared it would invest $1.4
billion to support Aldar’s growth plans. The asset
management division of Aldar, AIP, has a real estate
portfolio worth about $6.3 billion that includes
retail, residential, commercial, and logistics space.
The deal will help the Aldar division’s efforts
to stage more acquisitions in order to grow its
portfolio. Four prestigious office skyscrapers in
Abu Dhabi Global Market were purchased by AIP
last month for $1.2 billion.
36 www.thefinanceworld.com September 2022

IHC purchased 50% share in Kalyon Enerji
International Holding Company
(IHC), located in Abu Dhabi,
declared that it had purchased a
50% share in Turkish clean energy
company Kalyon Enerji. An estimated
AED1.8 billion ($490.1 million) will
be spent on the transaction. IHC will
use its subsidiary International Energy
Holding to purchase the interest in the
Turkish company. The stake acquisition
agreement covers several renewable
energy projects in different Turkish
cities, such as the 100 MW solar project
in Nide, the 50 MW solar project in
Gaziantep, the 1,000 MWe photovoltaic
power plant project of Kalyan Enerji in
the Karapinar neighbourhood of Konya,
Ankara, and the 1 GW wind project
developed by YEKA.
First Turkish
acquisition by UAE
since relations
improved
The first significant business
transaction between the two
nations since relations between
is the purchase of a 50% stake in a
Turkish company with ties to President
Recep Tayyip Erdogan by a United
Arab Emirates company managed
by the nation’s national security
adviser. As wealth funds in the oil-rich
capital of the UAE look for billions of
dollars in investments, the company’s
expansion in Turkey may open the door
for a flurry of partnerships between the
two nations. The agreement also shows
that relations between the two nations,
which had been at odds for much
of the previous decade over issues
ranging from Islamist movements to
the conflicts in Syria and Libya, have
improved.
Adnoc Distribution
to buy 50% share in
TotalEnergies
Adnoc Distribution, the largest
gasoline distributor in the
UAE, is buying a 50% stake in
TotalEnergies’ Egyptian division in order
to continue its regional growth. The
purchase agreement might cost $186
million, with an extra earn-out of up to
$17.3 million “if certain requirements are
achieved.” With 240 refuelling stations,
more than 100 convenience stores, and
more than 250 lube changing facilities in
its portfolio, TotalEnergies Egypt is one
of the country’s top fuel retail operators
in North Africa. The corporation also
engages in the wholesale distribution
of fuel, aviation fuel, and lubricant
operations.
359 M&A agreements
signed across MENA
in H1-22
In the first half of 2022, the MENA
area saw 359 merger and acquisition
(M&A) deals worth $42.6 billion.
The increase in M&A activity reflects
a 12% year-over-year (YoY) increase
in deal volume, which is fueled by
the region’s post-pandemic economic
expansion, which is supported by
high oil prices and rising boardroom
confidence. Domestic transactions
provided 48% and 33%, respectively, of
the overall value and volume of M&A
transactions over the course of the past
six months. In the first half of 2022, the
M&A activity involving PE and SWFs
made up 35% and 38%, respectively, of
the overall deal volumes and values.
Emaar Properties
to pay $2 billion to
acquire Dubai Creek
Harbour
Dubai Holding will surpass Dubai
Investment Corporation, which
now holds 24.07% of Emaar, to
take over as the company’s secondlargest
stakeholder after the prior splitcash
transaction. It was revealed that
Emaar Properties and Dubai Holdings
have reached an agreement for AED
7.5 billion ($2.04 billion) to purchase
100% of Dubai Creek Harbour, a new
construction along the famed shoreline
of Dubai Creek. The Investment
Corporation of Dubai, which currently
owns 24.07 percent of Emaar’s
stock, or roughly 1.97 million shares,
according to Dubai Creek Harbour,
provides breathtaking views of the Burj
Khalifa and the Downtown area over
the creek..
September 2022 www.thefinanceworld.com 37

Investment and Funding
G42 opens $10
billion technology
investment fund
G42, based in Abu Dhabi, raises
$10 billion to finance worldwide
expansion by investing in
“revolutionary technology.” The
fund will act as a private equity
investor with a focus on expanding
businesses in developing nations. The
Mubadala-backed artificial intelligence
company stated that the fund will
function as a private equity investor
with a focus on late-stage growth
enterprises in emerging regions. By
giving portfolio firms special access to
networks, management, and operational
assets through the G42 Expansion
Fund, hopes to increase the scale of
worldwide effect.
Gem Digital to
invest $10 million
in UAE’s Everdome
EEverdome, a metaverse
company with headquarters in
the UAE, has invested in Gem
Digital Limited (GEM), a digital
asset investment company
with headquarters in the Bahamas that
raises utility tokens listed on more
than 30 CEXs and DEXs around the
world. GEM has announced that it has
committed to investing $10 million
through a structured token subscription
agreement. Gem’s funding will prioritise
team development and technology
metaverse advancement, and it will
hasten the game’s virtual reality
capabilities.
ArabyAds raises
$30 million in Pre-
Series B funding
round
ArabyAds, the top AdTech firm in
the MENA area, revealed that
AfricInvest, a top pan-African
investment platform that
manages a variety of alternative
asset classes like private equity,
venture capital, and private credit, had
contributed $30 million to its Pre-Series
B funding round. ArabyAds will use the
additional funding to increase its reach
and make more investments to promote
its technological development and hire
more personnel to assist growth
Venture capital
funding led by UAE
in MENA for H1-22
Companies in the UAE raised
US$699 million in the first
half of 2022, according to data
platform Magnitt, making the
UAE the Middle East and North
Africa’s top venture capital fundraiser.
According to a report released by
Magnitt, the Emirates also held the top
spot in terms of agreements, which
increased by 10% over the previous
six-month period. With a $181 million
convertible note mega-round for Abu
Dhabi-based Pure Harvest in June, the
UAE also hosted the largest deal. This
was the country’s tenth consecutive year
hosting a mega-round, which is funding
totalling $100 million or more. More
than $1.47 billion in venture capital was
invested in the UAE in 2021.
Qatar leads the funding round in Celonis
Software company Celonis, with offices in Munich and New York, raised $1
billion from investors, including the Qatar Investment Authority, to expand
its business providing software that aids businesses in running more
effectively. A year ago, in June 2021, the business raised $1 billion at a $11
billion valuation. A number of businesses are creating “process mining”
tools, including Celonis, which was founded in 2011. These tools help companies
identify operational inefficiencies that a human eye might miss. For instance, the
technology can indicate if a company is paying an invoice twice because of a small
spelling error.
38 www.thefinanceworld.com September 2022

Khalifa fund
announces AED 3.5
billion investment
in Kenya
The Khalifa Fund for Enterprise
Development (KFED), supported
by the Emirate of Abu Dhabi,
recently announced its first $30
million investment in Kenya
(Sh3.57 billion). With a focus on Kenya
agreements, the UAE Fund created a
local innovation and entrepreneurship
centre in February. The capital,
according to the fund funded by the Abu
Dhabi State, will be distributed via the
Kenyan Youth Enterprise Development
Fund. The funds would aim to give
promising start-ups and creators earlystage
finance, it was added.
Qatar’s wealth will fund $3 billion into
Pakistan
In order to boost Pakistan’s faltering economy, the $3 billion investment that
Qatar Investment Authority (QIA) plans to make were confirmed by the Emir of
Qatar. Emiri Diwan stated, without going into specifics, “The Qatar Investment
Authority announced its intention to spend $3 billion in various commercial and
investment sectors in the Islamic Republic of Pakistan.” During Prime Minister
Shahbaz Sharif’s visit to Doha, the idea was announced. PM Shahbaz spoke with
Qatari Ameer Sheikh Tamim bin Hamad al-Thani after meeting with the QIA during
his official visit.
Burjeel Holdings plans to invest $1
billion in Saudi development
UAE investments in
Egypt increased by
169.1% in H1-22
According to the Egyptian
Central Agency for Public
Mobilization and Statistics
(CAPMAS), the value of Emirati
investments in Egypt surged by
169.1% during the first half of the fiscal
year 2021–2022, from $712.6 million to
$1.9 billion (AED 6.98 billion), or $1.9
billion. The value of trade between
Egypt and the UAE increased by 1.4%
to around $1.2 billion during the first
quarter of 2022 from $1.1 billion during
the same time in 2021. The amount of
remittances from Egyptians working
in the UAE increased by 1.4% to $3.5
billion in the 2020–2021 fiscal year from
$3.4 billion in the 2019–2020 fiscal year.
Agoal to invest up to $1 billion by 2030, the private healthcare provider
Burjeel Holdings, located in the UAE, signed an initial agreement with
the Saudi Ministry of Investment in an effort to expand into the Kingdom.
The owner of 39 hospitals and medical facilities will look for investment
opportunities through joint ventures and public-private partnership models
to build and grow different healthcare solutions throughout Saudi Arabia. Offerings
in the healthcare industry will include comprehensive specialised hospitals, day
surgery capabilities, digital health initiatives, and speciality medical facilities.
September 2022 www.thefinanceworld.com 39

Cryptocurrency
DeFi modernizing crypto lending routes
Many DeFi offerings and
products closely resemble
products and functions in
the traditional financial
marketplace. There are decentralized
applications, or dApps, running on
blockchains, that enable people to
obtain an asset or loan upon posting
collateral, much like traditional
collateralized loans. Others offer
the ability to deposit a digital asset
and receive a return. Both types of
products offer returns, some directly,
and some indirectly by enabling the
use of borrowed assets for other DeFi
investing opportunities. In addition,
there are web-based tools that help
users identify, or invest in, the highestyielding
DeFi instruments and venues.
Other applications let users earn fees
in exchange for supplying liquidity or
market making. There are also tokens
coded to track the prices of securities
trading on registered U.S. national
securities exchanges, and then can
be traded and used in a variety of
other DeFi applications. So while the
underlying technology is sometimes
unfamiliar, these digital products and
activities have close analogs within the
SEC’s jurisdiction.
Market participants who raise capital
from investors, or provide regulated
services or functions to investors,
generally take on legal obligations. In
what may be an attempt to disclaim
those legal obligations, many DeFi
promoters disclose broadly that DeFi
is risky and investments may result in
losses, without providing the details
investors need to assess risk likelihood
and severity. Others could accurately
be characterized as simply advocating
a “buyer beware” approach; by
participating, investors assume the risk
of any losses. Given this, many current
DeFi participants recommend that new
investors exercise caution, and many
experts and academics agree there are
significant risks.
In the United States, multiple federal
authorities likely have jurisdiction
over aspects of DeFi, including the
Department of Justice, the Financial
Criminal Enforcement Network,
the Internal Revenue Service,
the Commodity Futures Trading
Commission, and the SEC. State
authorities likely have jurisdiction over
aspects as well. Despite the number of
authorities having some jurisdictional
interest, DeFi investors generally will
not get the same level of compliance
and robust disclosure that are the
norm in other regulated markets in the
U.S. For example, a variety of DeFi
participants, activities, and assets fall
within the SEC’s jurisdiction as they
involve securities and securities-related
conduct.
The SEC is equipped with a wide
range of tools, including the ability
to make rules, different exemptive
or no-action reliefs, and enforcement
actions. Importantly, DeFi development
teams should contact our Strategic
Hub for Innovation and Financial
Technology (“FinHub”) or other
offices and divisions, all of which have
professionals well-versed in matters
relating to digital assets, if they are
unsure whether their project falls
under the SEC’s purview.
DeFi has a total market cap of $50
billion, with over thousands of coins
trading in the sector. To allow you to
navigate through this vast space easily,
below are few DeFi coins that are
popular in 2022.
Tamadoge Uniswap Decentraland
Tamadoge, offers great utility
and enabling investors to
earn rewards. Peer-to-peer
transactions without a middleman
have become possible thanks to
decentralized finance, but Tamadoge
has also made it possible for users to
play games and earn cryptocurrency.
Users must purchase NFTs in the
Tamaverse in order to participate
in order to feed and raise their
virtual pets. The top rankings on the
leaderboard and best rewards will go to
players who have given their pets the
best care and upbringing. Tamadoge
coins are the prize, but players can
exchange them for other money.
Uniswap is a cryptocurrency
exchange which uses a
decentralized network protocol.
Uniswap is also the name of
the company that initially built the
Uniswap protocol. The protocol
facilitates automated transactions
between cryptocurrency tokens on the
Ethereum blockchain through the use
of smart contracts.
Uniswap’s native token, UNI, is the
26th largest coin with a market cap of
$4.7 billion. While UNI has corrected
from a price-high of $43 to only $7, it
has the backing of a strong ecosystem
that provides
easy liquidity to
facilitate peer-topeer
transactions
in a completely
decentralized
manner.
ecentraland is
a project built
on top of the
Ethereum
blockchain
that offers
a virtual
gaming world
that can be
accessed by
all. One of the most innovative things
about Decentraland is that users can
buy virtual land and subsequently build
digital real estate.
In November 2021, the DeFi crypto
token rewarded users with almost a
600% price increase. After reaching an
ATH of $5.4, MANA is trading at just
$1.16 a token. However, Decentraland’s
token still has a market cap of $637
million and is the 40th most valuable
digital token in the cryptocurrency
space.
40 www.thefinanceworld.com September 2022

DeFi Coin (DEFC)
DeFi Coin is a cryptocurrency
token that, as its name suggests,
is deeply ingrained in the rapidly
expanding decentralized finance
(DeFi) industry. The new DeFi Swap
decentralized exchange (DEX), which
provides beneficial swapping, staking,
and yield farming services, has adopted
the token as its native currency. For
those who own DEFC tokens, DeFi
Swap offers some of the best DeFi
interest rates.
DeFi Swap has been under
development for several months, but
the exchange’s team only gave it the
all-clear to launch in early May, which
caused the price of DeFi Coin (DEFC)
to jump by over 300%. Although DEFC
is the exchange’s native token, it also
has a number of other intriguing use
cases, such as “static rewards” for
holders.
Lucky Block
T
owards the end of January,
LBLOCK was officially released
on Pancake Swap - one of the
industry’s biggest decentralized
exchanges (DEX). After releasing at an
ICO of $0.00089, LBLOCK soared to an
all-time high (ATH) of $0.009617. This
equates to a 10x price increase.
Lucky Block games are carried out
by a smart contract in order to provide
a decentralized platform. Knowing
how smart contracts operate will allow
you to understand that the underlying
code is unchangeable and free from
manipulation.
Yearn Finance
Yearn Finance offers these
services through multiple ranges
of products & features.
● APY (Annual Percentage
Yield) - To determine the interest rates
across different lending protocols
● Earn - This feature identifies the
highest interest rates users can earn by
lending out different assets
● ZAP - A tool that bundles multiple
trades, reducing costs & labor.
All these activities take place in
the Yearn Finance ecosystem using
YFI - the native digital token. Users
can earn YFI tokens by locking their
crypto holdings on the Yearn Finance
blockchain.
The Abu Dhabi Global Market
encouraged FinTech companies to
propose their ideas for decentralized
apps as part of the fifth iteration of
its Regulatory Laboratory (RegLab)
sandbox program that took place
recently. The most recent cohort will
concentrate on decentralized finance
(DeFi), Web3, and tokenization and will
function under the Financial Services
Regulatory Authority of the ADGM.
According to the financial free zone,
this will allow FinTech companies
to promote innovation in the UAE
financial services market.
It is a great location for blockchain
enterprises due to the innovative rules
and tax-free business environment. The
first free zone in the UAE to establish
regulations and norms for virtual
assets was the Abu Dhabi Global
Market. For firms with a focus on
cryptocurrencies, it offers a licensing
system that includes a framework
for digital securities offerings, virtual
asset custodians, multilateral trading
facilities exchanges, and digital
settlement facilities for the clearing
and settlement of digital securities. The
Securities and Commodities Authority
(SCA) of the UAE has published rules
and recommendations regarding
digital currency. For blockchain-based
firms looking to conduct business in
the UAE, the regulations offer clarity
and have created new opportunities.
The SCA’s policies have created new
possibilities and portals.
For instance, the Dubai Multi
Commodities Centre (DMCC), a free
zone that is subject to SCA’s regulatory
authority, has granted special licenses
to companies interested in establishing
and operating from DMCC, such as the
distributed ledger technology service
provider license and the proprietary
trading in crypto commodities license.
Market Research Future predicts
that the market for Web3 will be
worth roughly $6.2 billion in 2023 and
will increase at a compound annual
rate of 44.6% from 2023 to 2030. In
the meanwhile, DeFi might displace
intermediaries in the financial system
like brokers and banks. Transactions
based on blockchain technology are
typically thought to be safer this way.
According to Emergen Research, the
market for DeFi platforms would
expand to $507.92 billion in value by
2028, with a compound annual growth
rate of roughly 44%.
September 2022 www.thefinanceworld.com 41

Healthcare
UAE Golden Visa: Fueling nation’s financial
growth
Due to its many advantages, the UAE has overtaken other countries as the most popular
travel destination for wealthy people (HWNIs). Incentives like tax-free status and other
favorable factors forecast a net inflow of 4,000 HNWIs for the UAE in 2022. The residencyby-investment
(RBI) and citizenship-by-investment (CBI) programs are facilitated by Passport
Legacy, a leading and widely regarded government-authorized organization. Passport Legacy
shares its analysis of how the UAE achieved this and how the nation’s future outlook compares
to recent developments.
Global geopolitical
unpredictability has led
to significant changes in
every industry, but the
immigration sector has
experienced particularly
significant changes, including an influx
of European investors. As a result, the
UAE, through the implementation of
investor-friendly policies and alluring
immigration incentives like the nation’s
Golden Visa program, has achieved
great success in luring the most highnet-worth
individuals, globally.
Expats can now live, work, and
study in the UAE without a national
sponsor thanks to the UAE Golden Visa
program, which was first introduced in
2019. Expats who take advantage of the
RBI incentive offered by the nation are
also qualified to keep 100% ownership
of their companies in the mainland
free zone of the UAE. The UAE
widened the requirements for its RBI
program between the end of Q2 and
the beginning of Q3 of 2022. This has
helped a good deal more than 65,000
people obtain the 10-year residency
permit.
Scientists and real estate investors
are now eligible for the UAE’s
expanded ten-year visa requirements.
A Bachelor’s degree or its equivalent,
UAE employment documentation,
an occupation level recognized by
the Ministry of Human Resources
& Emiratization (MOHRE), and a
minimum monthly income of AED
30,000, or the equivalent of USD 8,174,
are requirements for eligibility. With
the implementation of a new program
component this month, investors will
be able to obtain the nation’s Golden
Visa with a minimum real estate
investment of AED 2 million. The
42 www.thefinanceworld.com September 2022

UAE will also roll out five-year Green
Residence Visas to honor exceptional
talent, skilled workers, investors,
freelancers, and business owners.
This initiative will benefit foreign
nationals who plan to invest, work as
freelancers, or operate their businesses
out of the UAE, though eligibility
requirements will vary depending on
the particular industry. This represents
a major shift from the nation’s longstanding
sponsorship model and more
recent alternatives like Virtual Working
Visas and Freelance Visas.
Specialized health insurance plans
Golden visa holders in the UAE can
purchase specialized health insurance
plans with premiums starting at AED
2,393 and an AED 300,000 annual
coverage maximum. “A strong health
insurance plan for Golden Visa holders
ensures security and helps them plan
their next five or 10 years in the UAE,”
Saleh Al Hashimi, CEO of Dubai Health
Insurance Corporation under Dubai
Health Authority (DHA), said in a
statement in one of his interviews.
Saleh Al Hashimi, CEO of Dubai
Health Insurance Corporation
It is a crucial component of their
criteria to remain in the nation. He
stated, “We will urge the industry
to strive toward such products. We
are delighted that Daman, a national
corporation, has taken the effort to
come out with a dedicated plan for
Golden Visa holders. Unlike the more
common resident’s visa, which needs
to be renewed every two to three
years, the UAE golden visa is a special
residency visa that provides recipients
with ten years of residency.
Holders of the Esaad privilege
card have access to some very good
savings on lodging, tuition, dining out,
travel, and more. According to the
National Health Insurance Company
- Daman, owners of the UAE golden
visa will now also be allowed to
take advantage of particular health
insurance products. The National
Health Insurance Company (Daman)
is the first business in the United Arab
Emirates to offer a health insurance
plan created especially for those with
Golden Visas. With a coverage limit of
up to AED 300,000, Cover Silver has a
starting premium as low as AED 2,393.
While the Premier package starts at
AED 39,857 with an AED 20 million
annual restriction, and the Enhanced
Gold package starts at AED 4,985
with an AED 2.5 million annual limit.
Additionally, on vacations or business
trips outside of the UAE, the packages
offer 180-day coverage.
The Golden visa is for:
• Investors
• Entrepreneurs
• Exceptional Talents
• Scientists and Professionals
• Outstanding Students and Graduates
• Humanitarian Pioneers
• Frontline Heroes
The UAE’s ‘Golden visa’ is a longterm
residency visa that enables
foreign talents to live and work or
study in the UAE while enjoying
exclusive benefits which includes:
It is a crucial
component of their
criteria to remain
in the nation. He
stated, “We will
urge the industry
to strive toward
such products. We
are delighted that
Daman, a national
corporation, has
taken the effort to
come out with a
dedicated plan for
Golden Visa holders.
September 2022 www.thefinanceworld.com 43

Healthcare
• an entry visa for six months with
multiple entries to proceed with
residence issuance
• a long-term, renewable residence visa
valid for 10 years
• a self-sponsored visa, as there is no
need for an employment sponsor
• ability to stay outside the UAE for
more than the usual restriction of six
months to keep their residence visa
valid
• sponsoring their family members,
including spouses and children
regardless of their ages
• sponsoring an unlimited number of
domestic helpers
• allowing family members to stay in
the UAE until the end of their permit
duration if the primary holder of the
Golden visa passes away.
According to experts, Indians
looking to invest in foreign real estate
are increasingly choosing Dubai
as their preferred location. “Dubai
has been the preferred investment
destination for Indians interested in
purchasing real estate abroad,” stated
Anuj Puri, Chairman of ANAROCK.
Due to an oversupply and subpar
economic activity, the city’s real estate
market has experienced considerable
instability during the last two to three
years. Because of this, real estate in
Dubai is now fairly reasonable. Luxury
residences in Dubai are particularly
alluring due to their lower price points.
In addition to lower costs and its
proximity to India, several other
factors, such as supportive government
policies, such as the UAE’s longterm
visas of five and ten years
for businesspeople, professionals,
investors, and experts in the medical,
scientific, research, and technical
fields, are to blame for the rising
demand. Luxury properties continue
to draw wealthy Indians searching for
alternatives priced between Rs. 2 and
Rs. 6 crore, even though Indian HNIs
are among the top investors in Dubai.
The Golden Visa route has raised
the demand for upscale homes and
properties in the UAE, turning it into
a second home for Indian citizens,
according to Ajay Sharma, President,
and Founder of Abhinav Immigration
Services Private Limited. Foreign
people may dwell, work, or study in the
UAE for ten years under the Golden
Visa residence. The most qualified
candidates for this route are investors,
entrepreneurs, eminent scientists,
gifted students, humanitarians, and
frontline heroes. To obtain a Golden
Visa, investors might invest in the UAE
or purchase a home there. Dubai is a
great place for international investors
to invest because there is no income
tax there. The recent changes to the
Golden visa program have raised
interest among affluent Indians for real
estate in Dubai.
The new rules state that companies
must continue to pay for Golden Visa
applicants’ health insurance as long as
they are employed in Abu Dhabi. The
second change mandates that those
applying for Golden Visas who do
not fall under the first category must
provide proof of health insurance for
both themselves and their families, as
well as proof that the insurance will
remain in effect for the entire time they
will be living in the UAE.
The applicant for a Golden Visa must
sign an agreement promising to offer
health insurance coverage otherwise,
he will be responsible for paying all
relevant expenses for their healthcare
and medical services, should they be
required. According to the media office,
experts in the sciences and knowledge,
such as doctors, specialists, scientists,
inventors, artistic and sporting talent,
as well as business, start-ups, and
real estate investors, are suitable
candidates for the Golden Visa.
According to ADMO, the UAE’s goal
in providing the Golden Visa is to
entice talent to participate in Abu
Dhabi’s long-term growth and boost the
emirate’s economy.
44 www.thefinanceworld.com September 2022

Corporate Tax
Key points highlighting the UAE’s corporate tax law
The below summary is based on the Public Consultation Document released by the Ministry
of Finance and the final CT Law and Regulations are still expected to be released soon.
What is the rationale for
introducing Corporate Tax (CT) in
UAE?
A competitive CT regime based on
international best practices will solidify
the UAE’s position as a leading global
hub for business and investment, as well
as accelerate the UAE’s development
and transformation to meet its strategic
goals. The implementation of a CT
regime reaffirms the UAE’s commitment
to meeting international tax
transparency standards and preventing
harmful tax practices. The proposed CT
regime will be implemented for financial
years beginning on or after June 1, 2023.
Tax rates applicable in Corporate
Tax (CT)
• 0% tax rate – for taxable income
up to AED 375,000 to support small
businesses and startups and for
qualifying Free Zone Persons
• 9% tax rate – for taxable income
exceeding AED 375,000
Note : There can be different tax rates for large
multinationals that meet specific criteria set
with reference to ‘Pillar Two’ of the OECD Base
Erosion and Profit Shifting project
How will CT impact Free Zones?
Companies and branches established in
a Free Zone are subject to UAE CT. Free
Zone persons can benefit from a 0%
tax rate if they only conduct qualifying
transactions within FZ and with the
Mainland. Persons doing business in the
Free Zone with Mainland companies
(except in qualifying transactions)
will disqualify the FZ entity from
receiving a 0% tax benefit on all of their
income. Free zones should be audited,
registered for CT, and file CT returns.
Taxable persons and income
eligibility in CT
• Natural Person - includes sole
establishments, freelancers,
etc. Taxable income – Includes
commercial activities in UAE,
excludes personal income from
employment, investment, etc.
• Legal Person (Resident) –
includes legal entity established in
UAE and foreign entity effectively
controlled in UAE is considered
Legal Resident Persons. Taxable
Income - Worldwide Income, with an
exemption on income earned from
foreign branches/subsidiaries.
• Non-Resident - Non-Resident Entity
will be taxed on business from their
Permanent Establishment in UAE
and their UAE sourced income.
What effect does CT have on various
business groups?
The UAE CT regime will allow tax
grouping for essentially wholly-owned
groups of companies (common
shareholding of at least 95%) and be
treated as Single Taxable persons. UAE
CT will also allow the transfer of losses
between group companies that are 75%
or more commonly owned. Certain
qualifying intra-group transactions (like
the transfer of assets and liabilities)
will not attract UAE CT. To facilitate
mergers, spin-offs, and other corporate
restructuring transactions, the UAE
CT regime will provide relief in form
of tax exemption or deferral. All above
benefits are subject to fulfillment of
provided conditions.
How does the UAE CT regime hold
transfer pricing?
The UAE CT regime will include
transfer pricing rules to ensure that the
price of a transaction is not influenced
by the relationship between the
parties involved. The UAE will apply
the internationally recognized “arm’s
length” principle to transactions and
arrangements involving related parties
and connected persons. This will apply
to domestic as well as international
transactions. UAE businesses must
follow transfer pricing rules and keep
documentation to support expected
reporting.
What is the process for registration,
filing, and compliance of CT?
A company must register with the
Federal Tax Authority within the
timeframes specified. CT returns
and supporting schedules must be
submitted, and any tax liability (if any)
must be paid within 9 months of the end
of the applicable tax period. CT returns
must be filed once a year. Tax Group has
the option of filing a single consolidated
tax return.
How can we help you in preparing
for Corporate Tax?
• Detailed impact assessment.
• Corporate structure review and
potential changes necessary.
• Mapping of the related party
transactions and impact of Transfer
Pricing on such transactions.
• Identifying Connected Persons and
the impact of Transfer Pricing on
such transactions.
• Review of the Accounting process,
policies, and documentation.
• Evaluate System readiness for data
capturing and reporting.
• In the case of Free Zone, mapping
transactions to identify eligibility to
claim 0% tax benefit.
• Understand the overall impact on
business operations and cash flows.
• Have an implementation plan to
be ready to be compliant with all
reporting requirements.
Khushboo Agarwal
Partner – Tax and Compliance
Fincirc International Management
Khushboo.agarwal@fincirc.com
September 2022 www.thefinanceworld.com 45

Entrepreneur in Focus
Ronaldo
Mouchawar
Co-founder and CEO of Souq.com
S
yrian businessman Ronaldo Mouchawar
is one of the co-founders of Souq.
com, the largest online store in the Arab
World, which he created in 2005, turning it
into the first unicorn in the area. Mouchawar
was named vice president of Amazon MENA
after the company’s 2017 acquisition of Souq.
He was a longtime employee at Maktoob,
a website that Yahoo acquired in 2009. He
started Souq.com in 2005, however as of
September 1, 2021, it has been replaced by its
parent business Amazon.com.
Early Life and Career Background
Ronaldo Mouchawar was born
in Aleppo, Syria. His father was a
merchant, and this inspired the name
of the e-commerce site. Mouchawar is
also a former basketball player of the
Jalaa SC Aleppo.
Mouchawar holds a master’s degree
in digital communications and
a bachelor’s degree in electrical
and computer engineering from
Northeastern University in Boston,
Massachusetts in the United States. He
spent the early years of his career with
the Boston engineering firm working in
technology and business management,
including a role as a technical and
systems consultant at Electronic Data
Systems (EDS).
Mouchawar co-founded Souq.com in
2005 alongside Jabbar, Internet Group’s
Samih Toukan, and Hussam Khoury.
He added products from fashion to
electronics and homeware and the site
became the largest e-commerce retailer
in the Arab world.
‘White Friday’
In 2014, he established the White
Friday sales event to coincide with
Black Friday in the US, explaining that
a “black” Friday doesn’t make cultural
sense in the Arab world, since Friday
is the traditional day of prayer. The
sale was widely popular as it raised
over $275 million. In 2015 Souq.com
more than doubled its sales during
its second White Friday sale, with 13
million visitors and 600,000 items sold
during 25–28 November across the
UAE, Saudi Arabia, Kuwait, and Egypt.
Additionally, it was involved in the
exclusive release of the Huawei Honor
6 launch in Abu Dhabi.
Funding and Amazon acquisition
In February 2016, Souq.com announced
it had received $275m of funding,
with a valuation above $1bn, the Arab
world’s largest-ever funding deal. In
March 2017, it was made public that
Amazon would be acquiring Souq.com.
The sum of this deal was not initially
disclosed, though an Amazon SEC filing
later revealed that the total sum paid
was $580m in cash. Today Mouchawar
serves as VP of Amazon MENA.
Souq.com and expansion
In the Arab world, Souq.com was the
biggest e-commerce site. Dubai hosted
the company’s 2005 launch. Amazon.
com Inc. purchased Souq.com as a
subsidiary on March 28, 2017, for a
cost of $580 million. Souq.com UAE
changed its name to Amazon.ae on
May 1 of this year and Souq.com KSA
changed its name to Amazon.sa on
June 17 of the following year. Last
but not least, on September 1, 2021,
Souq.com Egypt changed its name to
Amazon.eg, officially bringing an end
to Souq.com. However, several blog
articles, pages, and the Sign In/Log In
Page have not been changed to Amazon
and are thus the last remaining Souq.
com pages.
Sales and Growth
Souq now has 9.5 million products
available on its marketplace, which
46 www.thefinanceworld.com September 2022

attracts more than 45 million users
each month and includes consumer
electronics, furniture, clothing brands,
and baby supplies. It employs 4,500
people. The growth of the web in the
area has had a significant impact on
Mouchawar’s professional life.
Because of customers ordering during
global lockdowns, Amazon saw a 38
percent increase in sales to $386 billion
and an 84 percent increase in net
income to $21.3 billion last year. During
the same period, the IT behemoth’s
global sales, which include Souq,
increased by 40%.
“Since then, we’ve introduced Amazon
in Arabic in the United Arab Emirates,
Saudi Arabia, and Egypt,” Mouchawar
stated in one of his interviews. Another
significant event was the release of
our virtual assistant Alexa in several
regional Arabic dialects in December.
Since its inception, Souq has grown
to be the Middle East’s largest
e-commerce supplier and one of its
fastest-growing companies. It now
serves over 135 million people across
seven countries. The workforce has
grown from five to over 3,000 people,
with software engineers, digital
marketers, call center agents, and
delivery personnel now among them.
Technology and software came to
the rescue. Souq developed a digital
solution for retailers and couriers
that serves a variety of functions. To
begin, a cash customer’s Souq product
selection is determined by both their
overall and specific merchant-specific
cash purchase histories; the more
transactions they have made, the more
expensive the products they can afford.
When there is a COD, the courier
accepts the cash payment and records
it immediately on his phone. When
he deposits the entire amount the
next time he visits one of our sorting
facilities, the system immediately
credits the appropriate merchants’
accounts.
Changes after technological
advancement
But over the last two years, we’ve seen
how an entrepreneurial environment
has grown, which has enabled people
to become more knowledgeable.
A rising understanding that oil will
run out eventually and that money
generated from it should be invested in
sectors with stronger growth potential
is one factor in this. The Saudis, for
instance, are making investments in
the internet. Additionally, there is a
greater desire to use oil revenue to
enhance the region’s capabilities.
The Middle East needs to develop
meaningful and long-lasting jobs
because 50% of its population is under
the age of 25. The acquisition of Souq
by Amazon represents a significant
advance in this area. The company has
substantial resources and a wealth of
knowledge, and it shares Souq’s values
and our emphasis on the customer,
technology, and innovation. Together,
we have a lot to look forward to:
We currently only operate in a small
number of geographic areas, but the
Middle East still offers a big potential
for e-commerce. Even in our current
markets, only 2% of retail sales are
made online, compared to 8% in the US,
12% in Europe, and up to 15% in China.
For Middle Eastern tech entrepreneurs,
these are exciting times. As more
investments in new companies like
Amazon’s are made, more opportunities
and jobs will be created, as will be the
case for all of us.
Investments
The primary resource of Souq is its
proprietary software platform, which
connects more than 75,000 businesses
with more than 10 million monthly
visitors. It relies on its engineering
team to keep the platform running, and
on its support team to offer assistance.
With warehouses in the UAE, KSA,
Egypt, Kuwait, and Saudi Arabia as well
as technology hubs in Jordan and India,
the corporation has significant physical
resources. Finally, as a startup, it has
primarily relied on outside finance,
having raised $425 million from seven
investors as of February 2016.
Souq.com had an average of 39M
hits per month from all around the
world in the last year, 68% of which
were desktop visits. This number
has increased by 21% since February
2015. The United Arab Emirates, Saudi
Arabia, and Egypt contributed the most
traffic to souq.com over the past year,
each contributing 22%. While Egypt
has undoubtedly dominated in terms of
overall visits, Similarweb’s engagement
metrics let us understand the nature
of traffic in greater detail. We can
determine which geographic regions
for souq.com will be the most profitable
for Amazon after this acquisition by
using metrics like bounce rate.
The Middle East needs
to develop meaningful
and long-lasting jobs
because 50% of its
population is under the
age of 25. The acquisition
of Souq by Amazon
represents a significant
advance in this area. The
company has substantial
resources and a wealth
of knowledge, and it
shares Souq’s values
and our emphasis on the
customer, technology, and
innovation.
Business expansion in Egypt
Egyptian audiences are the least
attentive, despite their size, with a
bounce rate of 64.8% on average. With
only a 37.3% bounce rate over the
previous year, United Arab Emirates
visitors are the most active. In addition,
while examining the site’s traffic over
time, we discover that although Egypt’s
traffic share has declined by 51% in the
last year, the United Arab Emirates has
increased by 17 percentage points in
its traffic share, passing Egypt for the
first time in January 2017. However,
the Saudi Arabian market operates
differently. Over the past two years,
souq.com’s share in this market fell
by seven percentage points, while
amazon.com’s share climbed by 12
percentage points, surpassing souq.
com’s dominance in that nation.
Ronaldo Mouchawar, who founded
Souq, is still Amazon’s expert on online
commerce in MENA. The pioneer of
the internet in MENA may have sold
the company he founded for $580
million, but he still exhibits the same
determination as when he joined his
first venture 20 years ago.
September 2022 www.thefinanceworld.com 47

Cryptocurrency News
Millennials adopt
crypto for travel
payments
As travel recovers, millennials
use cryptocurrencies to pay for
vacations and engage in AR/VR
(Augmented Reality/Virtual Reality),
according to a recent survey from
US digital consultancy firm Publicis
Sapient. In the UAE, the UK, and the
US, the survey included 3,000 Gen
Z (aged 18 to 25), Millennial (aged
26 to 40), and Gen X (aged 41 to 57)
participants. All three age groups
cited cost as their “top concern,”
however Gen X was found to be the
generation least likely to be open to
using cryptocurrencies for payments
and using AR/VR to experience a
destination before they arrive.
During the crypto crisis, the biggest
Bitcoin miners lost nearly $1 billion
After incurring a number of impairment losses brought on by the decline in
cryptocurrency prices, the three biggest US publicly traded Bitcoin mining
companies lost over $1 billion in the second quarter. In the three months
that ended June 30, Core Scientific Inc., Marathon Digital Holdings Inc., and Riot
Blockchain Inc. all reported net losses of $862 million, $192 million, and $366 million,
respectively. Following the approximately 60% decline in the price of Bitcoin during
the quarter other large miners such Bitfarms Ltd.
Cryptos are still in
danger
Analysts claim that
cryptocurrencies are still in
danger despite recent upward
trends following a prolonged crisis
that reduced their market value
by $2.0 trillion. The two biggest
cryptocurrencies, bitcoin and
ethereum, are still trading close to
50% below their November 2021
record highs. Bitcoin has been trading
between $20,000 and $24,000 since
late June. While there have been
attempts to push higher, there hasn’t
been much of a breakout. However,
there are currently indications of a
minor rally. Even as analysts disagree
on whether bitcoin would experience
more dips similar to those of 2013 and
2017, it began to recover and reached
$24,000. The second-most valued
cryptocurrency, ethereum, was trading
above $1,900 after experiencing greater
gains than bitcoin in recent weeks..
As Ethereum changes its software, dog
themes coins are surging
Coins with canine themes saw a rise as private investors’ enthusiasm for the
market increased. After Ethereum makes progress with its software upgrade,
this change was seen.
According to pricing information
gathered by Bloomberg, “Shiba Innu”
had gained roughly 40% over five
days, while Dogecoin was up about
14%.” Influential figures including
Tesla CEO Elon Musk, businessman
Marc Cuban, and US artist Snoop
Dogg have all supported Dogecoin.
With a total market cap of about $1.2
trillion, the cryptocurrency market
has marginally recovered.
Bitcoin reaches $25,000 for the first time
since June
For the first time since mid-June, Bitcoin temporarily crossed the $25,000 mark
as momentum from lower-than-expected US inflation figures and advancements
in Ethereum’s major upgrade persisted. The biggest cryptocurrency climbed as
much as 2.2% to $25,031, its highest level since June 13. It was trading about $24,750,
increasing on the sixth day in a row on the strength of US consumer-price index data
that came in below expectations. Ether increased by as much as 2% to $2,030.50 after
surpassing $2,000 for the first time since May 31.
48 www.thefinanceworld.com September 2022

DhabiCoin obtains Dubai
DMMC License
After a protracted process to secure the DMCC
licence, DhabiCoin (DBC) has been granted the
same. Felipe Leclerc, co-founder, DhabiCoin, said:
“DhabiCoin is already launched, people can trade on various
exchanges today. However, we are following a launch
schedule, where we first release the DhabiCoin Wallet in
the coming weeks, then the collections in NFTs with Dubai
utilities and soon a marketplace of products and services
by the end of the year. With the DMCC license DhabiCoin
shows the serious commitment it has to generate security
and people to be able to use DhabiCoin on a daily basis.”
Day To Day Hypermarket
accepts crypto payments
According to a recent development by the UAE government,
30 licenses were granted and new regulations were put into
place to allow cryptocurrency exchanges to operate there.
In the United Arab Emirates, Day To Day Hypermarket aims to be
the first retail establishment to accept cryptocurrency payments.
The retail behemoth promotes cryptocurrency payments and
accepts a variety of cryptocurrencies, including Tron, Ethereum,
Bitcoin, and others. The steps for cryptocurrency payments within
the store and on the website have been explained in a tutorial
section that has been set up on the website and banners have been
placed throughout their branches.
Crypto bridge Nomad loses roughly $200
million
An attack on Nomad, a crosschain
token bridge, resulted in
the complete financial theft of
the protocol. About $200 million worth
of cryptocurrency was lost overall as a
result of the hack. Similar to previous
cross-chain bridges, Nomad enables
users to transfer tokens back and forth
between several blockchains. The attack
is the most recent in a line of widely
reported instances that have raised
concerns about the safety of cross-chain
bridges.
Al Jalila Foundation
receives first
donation in
cryptocurrency
The first cryptocurrency donation
for the Hamdan Bin Rashid Cancer
Charity Hospital has been made,
according to the Al Jalila Foundation,
a part of the Mohammed Bin Rashid Al
Maktoum Global Initiatives committed
to transforming lives through medical
innovation. The founders of QUINT,
a revolutionary token promoting the
widespread adoption of DeFi and
cryptocurrencies by providing real-world
rewards and perks to investors, made the
donation, the first of its kind in the UAE.
QUINT has given the Hamdan Bin Rashid
Cancer Charity Hospital a donation in the
amount of $16 million.
September 2022 www.thefinanceworld.com 49

Digital Assets
Blockchain and its importance in
virtual asset world
The rapid progress of blockchain technology shows no signs of slowing down.
Over the last few decades, many things that seemed impossible have turned out
to be wrong, including high transaction fees, double spending, cyber fraud, and
retrieving lost data. But now, with the help of blockchain technology, all of this
can be circumvented.
Blockchain started in 1991 as
a way to store and secure
digital data. Blockchain is
an open ledger that can be
accessed simultaneously
by multiple parties. One of
the main advantages is that recorded
information is less likely to change
without the consent of all parties
involved. IBM explained that each
new record results in a block with a
unique identifying hash. Blockchains
are formed when blocks are linked
to form a series of data sets. Bitcoin
cryptocurrency uses blockchain
technology.
Blockchain helps with the
verification and traceability of
multi-stage transactions that require
verification and tracking. You can
provide secure transactions, reduce
compliance costs, and speed up
data transfer processes. Blockchain
technology can support contract
management and verify product
provenance. It can also be used in
voting platforms, and manage titles and
deeds.
Blockchains are encrypted using
public and private keys to maintain
a kind of virtual security. Blockchain
allows one person to securely send
money to another without going
through a bank or financial services
provider.
The United Arab Emirates
50 www.thefinanceworld.com September 2022

government has adopted blockchain
technology when conducting
transactions. To support this move,
UAE has launched the Emirates
Blockchain Strategy 2021 and the
Dubai Blockchain Strategy. Emirates
Blockchain Strategy 2021 aims to
leverage blockchain technology
to convert 50% of government
transactions to blockchain platforms.
The Dubai Blockchain Strategy will
help Dubai become the first city to
fully utilize blockchain. The strategy
is based on the three strategic pillars
of government efficiency, industry
creation, and international leadership.
As part of its effort to adopt the
latest technology and innovation
practices on a global scale, the Dubai
Future Foundation launched a Global
Blockchain Foundation to study,
discuss and organize transactions
across blockchain platforms for
current and future applications.
The Board facilitates transactions
within various sectors of the financial
and non-financial sector, increasing
efficiency and reliability. The Council
is made up of 46 members, including
government agencies, international
companies, major UAE banks, free
zones, and international blockchain
technology companies.
Vehicle history blockchain project
Roads and Transport Authority
(RTA) is working on a project to create
a vehicle lifecycle management system
using the blockchain technology. The
project aims to provide automakers,
dealers, regulators, insurance
companies, buyers, sellers, and
workshops with a transparent record
of vehicle history from manufacturer
to scrap yard. This blockchain-based
system will help increase transparency
and trust in vehicle transactions,
avoid disputes, and reduce service
costs. Track ownership, sales, and
incident history to create a smarter,
more efficient supply chain system.
The system is part of the Dubai10X
initiative and is expected to be
completed by 2021.
Many in the financial services
industry refer to blockchain technology
as distributed ledger technology.
Others see blockchain as a more
reliable database than existing
Many in the financial
services industry
refer to blockchain
technology as
distributed ledger
technology. Others see
blockchain as a more
reliable database than
existing databases.
With the proliferation
of digital money and
an estimate that more
than 50% of the world’s
population owns a
smartphone, some
believe blockchain
technology will replace
traditional banking
industry technology.
databases. With the proliferation
of digital money and an estimate
that more than 50% of the world’s
population owns a smartphone, some
believe blockchain technology will
replace traditional banking industry
technology.
The Dubai Virtual Assets Regulation
Act aims to create a progressive
legal framework to protect investors,
provide international standards for
the governance of the virtual assets
industry, and promote responsible
business growth in the emirate.
The authority, which is also
responsible for licensing, will have
legal and financial autonomy over the
virtual asset space and will be linked
to the Dubai World Trade Center
Authority (DWTCA). The creation of
VARA is part of the Dubai Securities
and Exchange High Commission’s
strategy.
It also stipulates that the authority is
mandated to organize and set the rules
and controls that govern the conduct
of virtual asset activities, including
management services, clearing and
settlement services, in addition to
classifying and specifying types of
virtual assets.
The law says that it is prohibited for
any person in the emirate to engage
in activities without authorization
from VARA, while any person wishing
to practice virtual asset activities
must establish a presence in Dubai to
conduct business.
The new law and the establishment
of VARA is a step ahead for Dubai
and will have a positive effect on the
emirate’s property market.
Meanwhile, Dubai’s initiative to
establish the law in a relatively new
field represents a welcome leap into
the future that aims to develop and
protect investors, developers, traders,
and marketers.
A qualified investor is broadly
defined as:
• Institutional investors (banks,
financial institutions, corporations,
etc.) or state governments, foreign
governments, and international
organizations with assets of AED 75
million or more or a net turnover of
AED 150 million or more.
• A person who has funds of
September 2022 www.thefinanceworld.com 51

Digital Assets
Non-fungible tokens have risen in price in many collections
and have returned to the public attention, hitting $25 billion
in sales in 2021. As virtual reality evolves and blockchain
becomes more widespread, projects like the Metaverse
will soon take on a new shape, supported by various NFT
projects. However, the bond market is an important missing
factor in the NFT ecosystem.
4 million dirhams or more or an
annual income of 1 million dirhams
or more and who can prove that the
licensee has sufficient knowledge and
understanding of the risks of investing
in crypto assets.
The United Arab Emirates, a country
that has developed a comprehensive
regulatory framework for blockchain
and digital assets, is one example
that is seizing this opportunity. The
United Arab Emirates has many
characteristics that position it as
an ideal global hub for the digital
assets and blockchain industry. It is
ideally positioned in terms of existing
business networks to take advantage of
connectivity in the Middle East, North
Africa, India, and the West. Its role
as a regional financial hub also helps
the digital assets sector thrive in the
country.
The Dubai Blockchain Strategy
will foster entrepreneurship and
international competitiveness, creating
economic opportunities in all sectors
of the city, in line with Digital Dubai’s
mission to become a global leader in
the smart economy. Solidifying Dubai’s
reputation as a global technology
leader.
“By adopting blockchain technology,
Dubai will realize annual savings of
AED 5.5 billion in document processing
alone, equivalent to the annual value of
the Burj Khalifa.” The future belongs to
whoever designs it, and today, through
the virtual assets law, UAE seeks to
participate in the design of this new
and rapidly growing global sector.
52 www.thefinanceworld.com September 2022

Healthcare
UAE: Opportunities in the Healthcare Industry
Post Pandemic
The UAE has a strong healthcare infrastructure as one of the most economically developed
and diverse marketplaces in the Middle East. The UAE government prioritizes the development
of world-class healthcare infrastructure, and as a result, the sector has changed and expanded
greatly in recent years.
Following the onset of COVID-19
in January 2020, the UAE
government took immediate
preventive health measures.
Due to the tremendous efforts
of the UAE leadership, the UAE has
been ranked as one of the top countries
in the world and one of the best in
the Arab world in terms of COVID-19
response.
The healthcare market is growing
rapidly. Total health spending is
expected to account for 4.6% of
countries’ GDP in 2026, compared with
4.27% in 2018.
According to the research, the UAE
has a track record of good health
policy supported by continuous
investment and openness to private
innovation. However, in the years
preceding the pandemic, federal
healthcare spending fell in absolute
terms. This was attributed in part to
the expansion of high-quality private
healthcare facilities, which was fueled
by a favorable regulatory environment.
It illustrates how tight collaboration
between the public and private
sectors has resulted in a reduction
in noncommunicable disease
(NCD) fatalities. The UAE’s medical
infrastructure is dispersed around the
country, however Abu Dhabi boasts
the most private and governmental
hospitals.
SEHA, or Abu Dhabi Health Services
Company, is a key player in Abu
Dhabi’s healthcare sector. It handles
all public hospitals and clinics in Abu
Dhabi and services both natives and
expatriates. SEHA actively collaborates
with the Mayo Clinic in the United
States to assist bringing the emirate’s
care and services up to worldwide
SEHA, or Abu Dhabi
Health Services
Company, is a key
player in Abu Dhabi’s
healthcare sector. It
handles all public
hospitals and clinics
in Abu Dhabi and
services both natives
and expatriates.
September 2022 www.thefinanceworld.com 53

Healthcare
standards.
The organization is focused on
innovation, adaptability, and the
effective use of new technology, and it
has been able to respond swiftly to the
pandemic’s problems and help national
efforts to control the virus’s spread and
effects.
SEHA currently operates two blood
banks, three mobile clinics, four dental
centers, ten disease prevention and
screening centers, 14 hospitals totaling
2,644 beds, 36 primary clinics, and 64
ambulances.
Despite the post-pandemic
environment in Dubai, the healthcare
sector is rapidly developing, attracting
large international firms. The same is
true for the growth of other Emirates.
Dubai’s objective is to be a global
destination for both domestic and
international patients, as well as a
destination for medical tourists from
all over the world, by providing highquality
and cost-effective treatments
and procedures.
However, as the population of Dubai
and the other Emirates grows and ages,
there is a strong need for healthcare,
accompanied by high expenses. The
prevalence of chronic diseases in the
population reinforces this. As a result,
another priority of the government
is to attract reputable, world-class
healthcare providers.
Despite the
post-pandemic
environment
in Dubai, the
healthcare sector is
rapidly developing,
attracting large
international firms.
The same is true for
the growth of other
Emirates.
Dubai’s overall goal is to increase competition
among healthcare providers while also raising
healthcare quality. The Ministry of Health, Abu
Dhabi Health Department (HAAD) and Dubai
Health Department (DHA) are now contributing
to this aim.
Dubai’s overall goal is to increase
competition among healthcare
providers while also raising healthcare
quality. The Ministry of Health, Abu
Dhabi Health Department (HAAD) and
Dubai Health Department (DHA) are
now contributing to this aim.
The healthcare industry has grown
significantly in recent years, especially
in medical spas. According to Euro
monitor International, the UAE spa
market forecast for 2015 was $ 411
million. The Global Wellness Institute
states that the Middle East and North
Africa are the second fastest-growing
spa markets in the world.
United Arab Emirates spa market
revenue is expected to reach up to the
US $ 495 million.
Patients in the UAE tend to overconsume
expensive medical services,
resulting in higher per capita health
care and wellness spending. As the
cost of health care and surgery has
increased by 30-40% over the last three
years, there is also an increase in
medical costs by large corporations.
This is due to overconsumption of
medical services, rising costs of
medical equipment, competition for
skilled workers, and an increase in
chronic illness.
Medical and surgical costs have
increased by 30-40% over the last three
years, and so have the medical costs
of large corporations. This is due to
overconsumption of medical services,
rising costs of medical equipment,
competition for skilled workers, and an
increase in chronic illness.
Dubai is known for its highly
specialized care and excellent clinical
services. Apart from LASIK, dental
and rejuvenation treatment qualified
professionals, the demand for qualified
cosmetologists is increasing. The
men’s plastic surgery market alone
offers opportunities in areas such as
rhinoplasty, flocking, and liposuction.
Due to the growing elderly
population and the high number of
chronic illnesses, long-term care
facilities are in constant demand from
the market. High healthcare costs also
contribute to this, paving the way for
investment in home health services and
private providers.
Leading Sub-Sectors
• Pharmaceuticals
The UAE pharmaceutical market is
growing rapidly. The UAE currently
imports most medicines, but this
is starting to change, with some
international pharmaceutical giants
partnering with UAE companies to
manufacture their products locally.
The COVID-19 pandemic has forced
the UAE to focus on investing in life
sciences both in the UAE and abrad.
• Medical Equipment
The projected growth of the UAE
medical device market largely reflects
the growth of other sectors. Given the
relatively small number of medical
devices produced domestically by the
UAE, this represents an important
business opportunity for international
companies. However, the pandemic
has led the UAE to consider the local
production of certain medical devices.
Diagnostic imaging equipment occupies
most of the medical device market in
the United Arab Emirates.
• Healthcare Information Technology
The UAE medical information
technology market is expected to
grow rapidly over the next few
years. Pandemics continue to create
opportunities for expansion of the
telemedicine/healthcare sector
through telemedicine services through
technology platforms. The Ministry of
Health is working with the Emirates
54 www.thefinanceworld.com September 2022

Numerous programs
are underway to
build and renovate
hospitals. The
growing medical
tourism sector is
driving the demand
for modern facilities
equipped with
the latest medical
equipment, and
there is competition
among the seven
emirates to attract
medical tourism.
Integrated Telecommunication
Company PJSC (DU) to improve
tele-based health care options. This
included a “virtual hospital” where
doctors and nurses could remotely
care for patients using AI and smart
intelligence.
•Education and Research
To meet the growing need for
qualified medical professionals, the
UAE has sought to expand its nascent
medical education and training
capacity. It also aims to make the
country a regional hub for medical
research and events.
Opportunities
Numerous programs are underway
to build and renovate hospitals. The
growing medical tourism sector
is driving the demand for modern
facilities equipped with the latest
medical equipment, and there is
competition among the seven emirates
to attract medical tourism.
The Ministry of Health continues
to modernize national hospitals with
the latest technology to prevent and
treat the development of an increasing
number of non-communicable diseases,
especially cardiovascular disease,
cancer, and diabetes. The Dubai Health
Department will continue to tailor
medical technology to smart city plans
and implementations.
Restructuring efforts proved
necessary not only to increase
efficiency but also to reduce costs,
scale, units, departments, and levels
of the restructured organization and
enhance overall competitiveness.
Globally, even the best-managed
health systems can benefit from an
innovative focus on filling critical
gaps in the healthcare environment.
In the UAE, this approach will be
especially beneficial. The result will
be a more efficient and responsive
one that delivers high-quality services
to industry stakeholders, and the
country’s citizens, and transformative
visions that outline the future progress
of the country.
September 2022 www.thefinanceworld.com 55

Healthcare News
UAE to provide 4
additional health
services by end of
the year
Saudi hospital operator HMG saw a 22%
increase in revenue
The “Automatic Patient Transfer
Service” has been introduced by
Emirates Health Services (EHS)
using its “Smart Nutrition Services”
technology, which is used in all of its
institutions. One of four initiatives
scheduled to be completed by the end of
the year, according to EHS, the service
is the first of its kind in the Middle East.
The four projects that make up the new
services are: Transfer of Malnourished
Children Aged 5 to 19, Type 2 Diabetes,
Tube Feeding for Patients, and, Tracking
Children’s Growth Within Normal
Weights and Automatic Transfer for
Children to Health Centers.
UAE sends medical
supplies worth
AED 60 million to
developing nations
The burden on people suffering
from severe medical problems
and chronic diseases worldwide,
the DIHAD Sustainable Humanitarian
Foundation and the Emirates Red
Crescent (ERC) have dispatched the
first shipment of medications and
medical supplies worth Dh60 million to
countries in need. The delivery is a part
of the foundation’s “FOREVERCARE
Initiative,” which was established
to act as a generous supplier of
pharmaceuticals and medical equipment
in an effort to create a disease-free
world by accumulating and distributing
pharmaceuticals, medical equipment,
and medications.
Dr. Sulaiman Habib Medical Services Group (HMG), the largest private medical
service provider in Saudi Arabia, reported net profits of about $210 million
in the first half of the year. According to a statement from the corporation, it
marks an increase of 22.38 percent over the same period last year. The income gain
was driven by a 16.22 percent increase in half-yearly revenues to SAR 4 billion. The
hospital group, which is listed on Tadawul, also attributed the growth to an increase
in the number of patients as well as an uptick in the occupancy rates of inpatient beds
and outpatient clinics.
Sheikh Hamdan initiates new outpatient
building at Dubai Hospital
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of
Dubai and Chairman of The Executive Council, officially opened the facility
and emphasised that Dubai would keep improving its healthcare system to
meet the highest international standards and specialised care. Sheikh Hamdan
claimed that Dubai has one of the best public healthcare systems in the world. The
32,000 sqm facility was constructed for AED 177 million ($48.2 million). It has 128
specialised clinics, which is more than 2.5 times as many as the previous facility’s
clinics. More than 200 times as many patients can be seen in an hour at these
clinics as at the old building.
56 www.thefinanceworld.com September 2022

Abu Dhabi’s health officials use AI to
forecast future disease risk
AI (artificial intelligence) is being
used by the Department of
Health – Abu Dhabi (DOH) and
Malaffi, the health information exchange
system, to forecast patients’ future risk of
disease. The Patient Risk Profile, which
is integrated into the Malaffi provider
interface, will help clinical decisionmaking
be more effective and more
informed for better patient outcomes and
healthcare quality. The feature forecasts
the likelihood that a certain patient will
experience an acute incident or certain
chronic conditions. The technology
underlying Malaffi’s risk management
system makes use of cutting-edge
artificial intelligence (AI) techniques
and machine learning algorithms to
create predictive risk models based on
the population-level demographic and
clinical data available from the Emirate
in Malaffi.
G42 Healthcare
collaborate with
Amazon Web
Services
Aspen Medical launches its first location
in Abu Dhabi
A
provider of healthcare solutions
with headquarters in Australia
has inaugurated the first of
six primary healthcare facilities in
Abu Dhabi. Following the signing of
a memorandum of understanding
(MoU) with the Department of Health
- Abu Dhabi (DoH) to cover nine
areas in Abu Dhabi and Al Ain, Aspen
Medical opened a community Primary
Healthcare Center in Al Wathba.
Residents of the Al Wathba region and
the neighbouring areas are the target
audience for the new community centre.
General practise, family medicine,
obstetrics, gynaecology, paediatrics,
and dentistry are among the services
offered.
G42 Healthcare, a prominent
provider of health technology
based in Abu Dhabi and a division
of the cloud computing and artificial
intelligence firm G42, has announced
collaboration with Amazon Web Services
(AWS) to create a new worldwide
genomics, proteomics, and bio banking
service. The partnership, which was
announced at the BIO International
Convention in San Diego, California,
aims to give governments, population
genome programmes, and life science
initiatives all over the world access to
G42 Healthcare’s cutting-edge nextgeneration
sequencing, proteomics, and
data analytics capabilities.
New procedures
adopted in UAE
Healthcare industry
According to a senior healthcare
specialist at NMC Royal Hospital
Sharjah, there are other illnesses
that children need to be safeguarded
from even though polio infections have
essentially eradicated across the globe.
The most frequent cause of acute and
subacute flaccid paralysis in newborns
and children is GBS (Guillain-Barre
Syndrome), now that Covid is gradually
fading into the background, healthcare
investments in speciality categories and
therapies are increasing in the UAE.
The provision of tertiary specialties as
well as longer-term out-of-hospital care
is anticipated to rise significantly in the
UAE and Gulf region’s healthcare sector
over the next several years.
September 2022 www.thefinanceworld.com 57

Corporate Results
Emirates NBD result for H1
2022
Net profit: $5.3 billion
Dubai-based bank Emirates NBD’s
Q2 2022 net profit reached AED 3.5
billion, its best quarterly performance
since 2019. The latest figures come
from a 42% year-over-year increase. For
the first six months, Emirates NBD’s
net totaled a robust Dh5.3 billion (up
11 per cent), while gross income came
to Dh14.2 billion. Impairment charges
are down an impressive 28 percent –
“We are extremely well positioned for
rising interest rates and will continue
to invest in our international and digital
capabilities to support further growth,”
a statement said.
Aramex result for H1 2022
Net Profit: AED91.9 million.
The company reported AED2.97
billion in revenues and AED91.9 million
in net profit. With positive free cash
flows and a cash balance of AED592
million so far this year, the company
has maintained a very healthy liquidity
profile. The company’s growth strategy,
which includes investments in digital
and technological infrastructure as
well as an active M&A pipeline, will be
supported by Aramex’s strong balance
sheet.
Air Arabia result for H1 2022
Net profit: AED 451 million
The company posted sales of AED
1,113.83 million for the second quarter,
up from AED 495.71 million in the same
period last year. Compared to AED
10.4 million a year prior, net income
was AED 160.05 million. Basic earnings
per share from ongoing operations
increased from AED 0.002 to AED 0.034.
Sales for the six months totaled AED
2,242.43 million, up from AED 1,067.86
million in the prior year. Compared to a
year ago, net income increased to AED
44.24 million from AED 450.92 million.
Basic earnings per share from ongoing
operations increased from AED 0.009 to
AED 0.097.
ADNOC Distribution result for H1 2022
Net profit: AED 1.56 billion
ADNOC Distribution, the UAE’s largest fuel and convenience retailer, which
is listed on the Abu Dhabi Securities Exchange (ADX), reported strong first half
results for 2022, recording an EBITDA of AED 1.99 billion and Net Profits of AED
1.56 billion. The company witnessed year-on-year growth in total fuel volumes,
up 9 per cent in H1 2022 compared to H1 2021, while their corporate fuel volumes
recorded sustained growth with a 27 per cent year-on-year increase.
TAQA result for H1 2022
Group Revenue: Dh 25.4
billion
Net Income: 4.3 billion
Abu Dhabi-based utility TAQA posted
revenue of Dh 25.42 billion in the first
six months of 2022, up from Dh 22.19
billion a year ago. This generated a
profit of Dh 4.3 billion compared to his
Dh 2.92 billion last year. In line with its
quarterly dividend policy, TAQA will
issue Dh675 million as second interim
one for the year (at 0.6 fils a share). On
the capex side, the H1-2022 total is 10
percent lower at Dh1.8 billion than in
the last year, ‘mainly driven by lower
expenditure in the transmission and
distribution segment’.
ADCB result for H1 2022
Net profit: AED 3,059 million
Abu Dhabi Commercial Bank
(ADCB) has announced its financial
results for the second and first quarters
of 2022. Net profit for the period
ended 30 June was AED 3,059 million,
up 21% year-on-year. It reported an
interest income of AED 4.718 billion, a
YoY increase of 6 percent; and a noninterest
income of AED 1.713 billion,
reflecting an increase of 4 percent over
2021. The operating income reported
was AED 6.431 billion, an increase of
6 percent YoY, impairment charges
of AED 950 million decreased by 31
percent.
58 www.thefinanceworld.com September 2022

Yahsat result for H1 2022
Net Income: AED 167
million
Al Yah Satellite Communications
Company (YahSat), the UAE’s flagship
satellite solutions provider, has
announced its financial results for
the first half of 2022. The company
reported revenue of Dhs755 million
($206 million), an increase of 8.1%
year on year (YoY), driven by doubledigit
growth in managed solutions and
mobility solutions. EBITDA (earnings
before interest, taxes, depreciation,
and amortization) were Dhs448m
($122m), up 5.3 percent year on year,
with a margin of 59.3 percent.
Julphar result for Q1 2022
Net Sales: AED 419.9
million
Sales for the second quarter were
AED 419.9 million, up from AED 220
million in the prior quarter. Compared
to a year earlier, net income dropped
from AED 73.8 million to AED 4.8
million. Basic earnings per share
decreased from AED 0.064 to AED
0.004 over the past year. Sales for the
six-month period were AED 838.5
million, up from AED 383.5 million
in the prior year. Compared to a year
earlier, net income decreased from
AED 49.9 million to AED 6.3 million.
In contrast to a year before, basic
earnings per share were AED 0.006
instead of AED 0.043.
Emaar result for H1 2022
Net Revenue: AED 13.575
billion
Emaar reported strong firsthalf
revenue of AED13.575 billion
(US$3.696 billion), up 10% from H1
2021, driven by strong performance in
its core property development business
and complemented by growing
recurring revenue operations. Earnings
before interest, taxes, depreciation,
and amortization (EBITDA) increased
by 66 percent to AED 6.112 billion
(US$1.664 billion) in H1 2022 compared
to H1 2021, owing to higher revenue,
improved margins, and continued cost
optimisation.
Amlak result for H1 2022
Net Profit: AED 266 million
Amlak reported a net profit of
AED 266 million for the first half of
2022, up from a net profit of AED 197
million in the first half of 2021. The
company concentrated on managing
its UAE operations and balance sheet
prudently. Amlak’s total revenue for
H1 2022 fell by 9% to AED 319 million,
down from AED 351 million in H1 2021.
Revenues from the financing business
fell by 19% to AED 69 million in H1
2022, from AED 85 million in H1 2021.
RAK Ceramics result for Q2
2022
Net Profit: AED 102.2 million
RAK Ceramics PJSC, one of the
world’s largest ceramics lifestyle
solution providers, announced its
financial results for the quarter ended
30 June 2022 today. RAK Ceramics
reported total revenue of AED 927.0
million, a 32.3% increase year on year,
and a reported net profit of AED 102.2
million, a 7.7% increase over Q2 2021.
Deyaar for H1 2022
Net Profit: 196% to AED 66.9 million
Deyaar, a Dubai-listed developer, reported a 196% increase in net profit for the
first half of 2022, owing to stronger performance in its real estate and hospitality
portfolios. The company’s net profit for January to June this year was AED66.9
million dirhams ($18.2 million), up from AED22.6 million in the same period last
year, according to a statement on the Dubai Financial Market (DFM), where its
shares trade. Revenue increased by 24% to AED369.4 million from AED297.4
million the previous year.
Aldar Property result for H1 2022
Net Profit: AED 1.53 billion
The financial results for the second
quarter and the six months ending June 30,
2022, were released by Aldar Properties
PJSC. Sales for the second quarter were
AED 2,669.41 million, up from AED 2,191.64
million in the same period last year,
according to the business. In contrast to
a year before, when net income was AED
520.08 million, it was AED 803.99 million.
Basic earnings per share from ongoing
operations increased from AED 0.066 to AED
0.102. Sales for the six-month period were
AED 5,352.61 million, up from AED 4,232.66
million in the prior year.
Ajman Bank PJSC result for
H1 2022
Net Profit: AED 74.92 million
Ajman Bank earned AED 74.92
million in net profits during the first
half (H1) of 2022, up from AED 61.88
million in H1-21. According to the
income statements, basic and diluted
earnings per share (EPS) were AED
0.036 in H1-22, up from AED 0.029
in H1-21. Meanwhile, the bank’s net
operating income fell to AED 273.20
million in the January-June 2022
period, from AED 331.85 million the
previous year.
September 2022 www.thefinanceworld.com 59

Travel
Air Taxis: From fantasy to reality in Dubai
In a world where fantasies come true, flying taxis will soon be available in Dubai. 35 air taxi and
city air transportation concepts are being developed for Dubai by Falcon Aviation Services and
Eve Holding, an electric aircraft business controlled by Brazilian aircraft manufacturer Embraer.
From Dubai, air taxis might fly as
early as 2026. According to the
agreement, Atlantis, The Palm
will be the starting point for the
first Electric Vertical Take-off
and Landing (eVTOL) flight.
Due to this ruling, electric air taxis
may soon become commonplace.
According to a news release, both
Eve and Falcon will collaborate with
regional authorities and stakeholders
to build the UAE’s urban air mobility
ecosystem. Some start-ups are
attempting to diverge from their
immediate goals.
The Volocopter is the first manned,
all-electric aircraft in the world. The
car’s technical prowess and prospects
for a more ecologically responsible
future were scrutinized during a Berlin
presentation. It is drone-powered, and
a robot changes the battery before each
ride. The Volocopter design is elegant
and cozy. It has leather seats, nine
battery systems, a rescue parachute,
and a battery that charges quickly (in
about 40 minutes).
The maximum speed and range
of Velocity are 110 km/h and 35 km,
respectively. The capacity of an electric
car is two people.
Volocopter used a location on the
outskirts of Paris as a test center and
stated last year that it hoped to provide
the service within the next several
years. It started selling tickets for the
inaugural flights last year because it is
so convinced the project would be a
success.
$355 is the cost of a reservation for
a 15-minute flight on the aircraft.
According to Volocopter, the
project’s performance during
test flights in Germany, Finland,
and Singapore gave the company
confidence.
The Volocopter conforms
with the stringent German and
international safety standards and
is the first multicopter in the world
with a certificate for manned flight.
It is an ultralight aircraft that can
accommodate two passengers at
once. The weight of the Volocopter is
290 kg, and for takeoff, it can lift an
additional 160 kg. The urban helicopter
has 18 rotors and has a top speed of
100 km/h (62 mph). Flying is less noisy
than driving at highway speeds since
the noise level is only 65 dB(A) at 75
meters.
The mission of Volocopter is to
redefine urban mobility by enabling
60 www.thefinanceworld.com September 2022

The business claims that silent,
ecologically efficient, twopassenger
aircraft will transform
urban mobility. Future mobility of
autonomous driving and electric
vehicles is of special interest to
the auto industry.
everyone to fly. According to business
representatives, the first manned
flight of an electric multicopter in
2011 cemented the company’s place in
aviation history. In a vast, developing
market, “I think Dubai is a pioneer,”
asserts Zosel, who is certain that many
other major cities will follow. With
Dubai as our first flagship project,
Zosel continued, “We now have a
fantastic opportunity to cooperate with
RTA to create and test the full future
ecosystem for safe autonomous air
transport.”
Utilizing the new funds, Volocopter
will collaborate with partners to grow
its leadership position in new and
developing industries. Volocopter will
continue to be improved until it is
ready for continuous manufacturing
and has received international aviation
authorities’ commercial certification.
We intend to employ more engineers
with expertise in the creation of
software, electric propulsion, and
commercial activities to further the
project.
The business claims that silent,
ecologically efficient, two-passenger
aircraft will transform urban mobility.
Future mobility of autonomous driving
and electric vehicles is of special
interest to the auto industry.
A vertical takeoff, all-electric
multicopter for carrying people and
large packages is being developed by
Volocopter GmbH. The technological
platform is incredibly adaptable and
can be operated manually, remotely,
or autonomously. Additionally,
the distinctive design offers great
redundancy for all crucial components
together with a high level of security.
The company’s stated objectives are
to fulfill everyone’s desire to fly and
to find a solution to the modern cities’
escalating mobility issues.
After signing a non-binding
agreement for 100 Vertical Aerospace
VX4 electric vehicles with Avolon,
a Dublin-based lender, it was stated
that AirAsia Aviation Group planned
to introduce low-cost flight sharing in
Southeast Asia in early 2022.
The French Riviera, Rome, Venice,
and Bologna airports worked together
to develop and maintain the air taxi
infrastructure, the two firms said in a
statement.
Additionally, the London-based
start-up Bellwether Industries declared
in January 2022 that testing of an allelectric
palm-side eVTOL prototype had
been completed in Dubai.
“This enormous task for both
businesses will help establish Dubai as
a market leader in urban air mobility.
Eve’s global experience, which covers
numerous continents, will undoubtedly
help this initiative succeed”.
September 2022 www.thefinanceworld.com 61

Travel News
UAE-India flights:
August saw nearly
60% decrease in
ticket prices
October to be cheapest month to fly from
UAE to UK
Many Indian cities now offer
significantly cheaper airfares.
According to travel industry
leaders, prices have decreased by close
to 60% in the past month compared to
the peak travel season. The authorities
further stated that summer vacations
for students, Eid holidays, and summer
travel to the UAE were the causes of the
previous month’s increase in airfare.
India’s Vistara to
offer direct flights
to Abu Dhabi
The full-service airline of India,
Vistara, will soon begin offering
new direct flights from Mumbai
to Abu Dhabi. It is planned for the new
flight service to start on October 1,
2022. Additionally, special introductory
roundtrip flights for the economy,
premium economy, and business classes
of Vistara, a joint venture between
Singapore Airlines and the Indian
conglomerate Tata Group, would be
available for $222 (AED 799), $288
(AED 1,199), and $576 (AED 3,999),
respectively. The airline will conduct the
daily flights between the two cities using
its A320neo aircraft.
Direct flights from Dubai and Abu Dhabi to London costing an average of more
than AED 4,000, airfares between the UAE and London appear certain to
remain expensive for the remainder of the summer. However, those who can
wait and book flights later in the year will be able to benefit from reduced average
fares. The cheapest time to fly from the UAE to London is in October. With prices
starting at £568 ($669), October currently offers the best value for direct economy
round-trip flights from the UAE to London.
Etihad adds four weekly flights to
New York
To meet the growing demand for air travel following the epidemic, Abu Dhabi
airline Etihad Airways, will begin offering four additional weekly flights to
New York on Nova Aircraft. With the addition of the new flights, there will
now be 11 weekly stops at John F. Kennedy International Airport (JFK). The new
flights will be run with a Boeing 787-9 Dreamliner, one of the most fuel-efficient
aeroplanes in the world with much lower fuel burn and carbon emissions, while
the everyday services will continue to be operated by Etihad’s new Airbus A350
aircraft.
62 www.thefinanceworld.com September 2022

Emirates set to launch A380 on the Dubai-
Perth service
Emirates halt
business in Nigeria
Beginning on December 1,
Emirates plans to reintroduce
its signature A380 aircraft on the
Dubai-Perth route. The daily Boeing
777-300ER flight between Dubai and
the Western Australian Capital will
be replaced by the A380 service as
part of the UAE carrier’s expansion of
services to Australia. With around 500
seats available on each trip, Emirates’
capacity between Dubai and Perth will
grow. Emirates will also run twice-daily
A380 flights from Dubai to Perth in
addition to its Perth services. Since its
inaugural flight to Perth back in August
2002, Emirates has flown close to 6
million passengers between Perth and
its Dubai hub.
Emirates said it is suspending flights
to Nigeria starting September 1,
as the Dubai carrier struggles to
repatriate funds of around $85 million
from the African country. The airline
said “there has been no progress” in
collecting the payments, resulting in
the decision “limits further losses and
impact on our operational costs that
continue to accumulate in the market.”
In June, the International Air Transport
Association (IATA) said airlines are owed
$1.6 billion from 20 countries. Nigeria,
the most populous African nation, takes
$450 million in that chunk of blocked
remittances.
Abu Dhabi’s private airport reopens
following extensive renovation
Abu Dhabi’s Al Bateen Executive
Airport, which serves only
private aircraft, has reopened
after undergoing extensive renovations
to increase capacity. The runway was
resurfaced and expanded during the
90-day renovation project to handle
wide-body aircrafts. The airport will be
able to handle the additional operating
demand thanks to the renovation. The
Al Bateen Executive Airport renovation
project “embodies the commitment
of our aviation partners in the UAE
to invest in the safety, modernization,
and sustainability of the region’s only
dedicated executive airport,” Over 800
people were employed by the airport
in close collaboration with GACA and
the Abu Dhabi Airports to complete the
project.
Emirates to spend
$2 billion to
upgrade its airline
offerings
The Dubai-based airline Emirates is
spending over $2 billion to improve
the in-flight traveller experience.
The upgrades include a sizable initiative
to revamp 120 aircraft interiors, along
with other amenities available in all
cabins beginning in 2022. According
to Emirates, travellers may anticipate
“elevated dining options, a brand-new
vegan cuisine, a “theatre in the sky”
experience, upgraded cabin interiors,
sustainable choices, and a generous
commitment to the little details that
make travel unforgettable.”Additionally,
fresh vegetables from the largest
hydroponic farm in the world a $40
million facility built by the airlines in
Dubai will be served to passengers.
September 2022 www.thefinanceworld.com 63

Funding and Investment
UAE programs to fund entrepreneurs and start-ups
According to the most recent
data, the UAE continued to
be the preferred location for
entrepreneurs in the MENA, securing
about $700 million in funding through 85
agreements.
The UAE continues to be the topfunded
and most active market in
MENA, accounting for 50% of all
investments made in the area, according
to Magnitt, which published the
inaugural UAE venture capital report
in collaboration with the Emirates
Development Bank (EDB).
With $584 million in financing from
79 projects, Saudi Arabia took second
place, and Egypt took third place with
$307 million from 78 deals.
Pure Harvest acquisition
Over 25% of the total financing raised
by the UAE came from Pure Harvest’s
$180.5 million mega-round ($100M+),
which marked the 10th year in a row of
mega deals for Mena’s top region. The
Pure Harvest acquisition contributed 26%
of the venture capital raised in the UAE
during the first half of 2022.
With a $180.5 million contract from
Pure Harvest, the agriculture industry
in the UAE ranked second in terms of
funding during the first half.
Sky Kurtz – Founder)
Dubai initiatives for UAE start-ups
The UAE has implemented several
new policies to aid startup founders and
entrepreneurs in the region in obtaining
funding, luring in the ideal people, and
gaining assistance.
To support and maintain startup
projects and entrepreneurs in the
emirate, Sheikh Hamdan bin Mohammed
bin Rashid Al Maktoum, the Crown
Prince of Dubai and Chairman of Dubai’s
Executive Council, has created a $100.73
Ahmed Alnaqbi, CEO of Emirates
Development Bank)
million (AED 370 million) Venture
Capital Fund for Start-ups.
The Venture Capital Fund for Startups,
which is governed by the Dubai
International Financial Centre (DIFC),
which also contributes 15% of the fund’s
total assets, will establish an integrated
finance system with a variety of viable
solutions that may meet the demands of
businesses.
Small to medium startup ventures will
receive funding from the fund totaling
$100.73 million (AED 370 million),
enabling their growth in Dubai and
gradual expansion to international
markets.
It will also create more than 8,000
employments for young talent, enhancing
Dubai’s standing as a regional hub for
venture capital, innovation, and financial
technology (fintech). This will help Dubai
draw in investors and businesspeople
from all over the world.
The post-Covid acceleration project
“Sanad” has been launched by the
Emirates Development Bank (EDB),
a crucial financial engine of the UAE’s
goal for economic diversification and
industrial transformation.
The new $27.2 million (AED 100
million) initiative intends to provide
quick, simple, and flexible financing to
Emirati-owned and operated companies
wishing to accelerate their company
growth following the Covid-19 outbreak.
The project is by the National Strategy
of the UAE and several other initiatives
to support SMEs in the UAE.
EDB was able to mobilize more than
$90.38 million (AED332 million) of
funding for SMEs through the launch of a
new loan guarantee platform.
The expansion and development
of large businesses and SMEs in the
following five main industries will
enable this: manufacturing, advanced
technology, infrastructure, healthcare,
and food security. In line with its goal,
EDB will also arrange direct and indirect
loans for a combined $8.16 billion
(AED30 billion) by 2025, supporting
more than 13,500 businesses.
Top start-ups received funding
The top startups in terms of funding
raised during the first half were Tabby
($54 million), Wahed ($50 million), altibbi
($44 million), and Huspy ($37 million).
Ahmed Mohamed Al Naqbi, the
chief executive of EDB, stated that
the organization was “constantly
looking into new initiatives and
opportunities to catalyze the growth
of businesses, strengthen the culture
of entrepreneurship, and provide
the funding solutions to enhance the
ecosystem for entrepreneurial minds
throughout the UAE.”
UAE with the most investments
The UAE has accumulated 27.3% of
deals in the Mena region and 34.4% of
investment this year alone, according to
Noor Sweid, managing partner at Global
Ventures, solidifying its position as a
prominent innovation powerhouse in
the area.
The UAE is quickly turning into an
example of where some of the most
fundamental opportunities of the
future will come from, Sweid said. “We
are consistently witnessing the birth
and growth of pioneering, UAE-born
solutions for the region and the world
across verticals”.
Fintech continues to be the top
sector
Fintech continued to be the top sector
for investors in the Emirates, accounting
for 33% of all deals and 32% of all capital
64 www.thefinanceworld.com September 2022

invested in the first half. By receiving
$234 million in funding, it had a first-half
rise of 249% over the prior year.
With $50 million in funding, the fashion
and lifestyle sector rose 13 spots to take
third place, while the healthcare sector
advanced six spots to take fourth place.
Transportation and logistics made a $40
million profit but fell to sixth place.
Edtech moves up to 6th position as
the most transacted industry spot
Edtech moved up six spots to take the
fourth-most-transacted industry spot in
the first half of the year in terms of the
major industries by several agreements,
behind transportation and logistics,
and e-commerce. To enter the top five
rankings, healthcare also rose three
positions.
Expansions in UAE
“Dubai and the UAE have consistently
dominated the global rankings for
economic growth, and with more than
8% growth in the first quarter of 2022,
the UAE economy is set for the biggest
expansion in almost a decade”
In regards to the UAE’s venture
landscape and the advantages it will
bring to the region, we are more
enthusiastic than ever, he added.
By introducing integrated national
projects to strengthen the role of
entrepreneurship in the economy,
according to Shane Shin, founding
partner at Shorooq Partner, the UAE
has achieved unparalleled success in
attracting venture capital investment
for start-ups and new fund managers
based there. He cited Magnitt’s first-half
report and claimed that the UAE had
taken the top rank in attracting venture
capital investments for startups in the
Middle East, Africa, Turkey, and Pakistan
in 2021, expanding by 93% and reaching
$1 billion in venture capital for startups
for the first time. According to Shin, “the
strong results obtained over the previous
several years confirm the UAE’s ability to
attract great startups and investors, and
cement its position as the premier venue
to connect cutting-edge talent with local,
regional, and international investors.”
Launch of “Start-up Handbook for
Funding” by Dash Venture Labs
To equip founders with the different
funding options accessible in today’s
evolving business ecosystem, Dash
Venture Labs has released a “Start-up
Handbook for Funding.” The objective is
to comprehend the phases of the startup
cycle as well as the various funding
options, including grants from the
government and similar deals from other
financial organizations.
The three main elements of the
handbook, which was created in
partnership with Ascent Partners, are
as follows: 1) why do start-ups need
funding? 2) funding stages, 3) the many
types of funding for each level. Each
section is intended to give readers a
greater grasp of the topic, particularly for
founders and entrepreneurs who want
to understand the motivations behind
and stages of funding. Furthermore,
entrepreneurs, today don’t seem to
have a problem with liquidity, but they
should be aware of the significance
of each round of fundraising and the
contemporary frameworks created
for each capital raising activity. What
matters most is how these will affect
their shareholding composition and
future fund-raising activities.
• The first part of the manual
concentrates on how crucial it is for
entrepreneurs to comprehend why they
need to raise money using the numerous
channels offered by the industry at this
time.
• The second half of the guide focuses
on the different fundraising stages
within the startup ecosystem. Given that
there are numerous sources of funding,
the funding source must generally
correspond to the stages of operation of
the companies.
• The most crucial part of the book
for entrepreneurs is the third section,
which describes the different kinds of
funding that are available throughout
the ecosystem. The founder must
comprehend the significance of each
possible source of funding and how it
will affect the shareholding structure.
Furthermore, it draws attention to the
difficulties in obtaining funding from
various sources and the expectations
of all the stakeholders. The comparison
table for the various financing methods
depending on size, accessibility, and time
frame is also displayed in this section.
The total amount invested in startups
in MENA was $1.73 billion, representing
a 67.6% increase year over year. The H1
of 2022 saw 354 overall deals, up from
294 in the corresponding period of last
year.
September 2022 www.thefinanceworld.com 65

Stock Market
Al Ansari: UAE exchange business to consider IPO
Al Ansari Exchange in the UAE
is considering making an
Initial Public Offering (IPO).
The UAE-based money exchange
company has preliminary discussions
with prospective advisors on the
Dubai IPO that may occur in the first
quarter of 2023, according to the
sources.Preliminary information may
change, they said
Al Ansari Exchange CEO Rashed
Al Ansari responded to a request
for comment by saying, “Al Ansari
Exchange has been considering the
concept of going public for some
time, but no final decision has
been taken yet.” He added that the
business will keep an eye on the
market and “make an announcement
appropriately.”
During the first half, the area was
primarily a standout market for IPOs.
In striking contrast to most other
global markets where listings have
slowed to a trickle owing to surging
inflation and worries about a looming
economic slump, high oil prices have
led to a frenzy of share sales and
massive stock inflows.
Rashed Al Ansari, CEO of
Al Ansari Exchange
Salik, the latest IPO in Dubai, aims to raise $1 billion
The Dubai government hopes to
generate $1 billion by selling
road toll operator Salik shares
as early as next month.
Unnamed sources informed
Bloomberg that Salik received a
$1.1 billion loan from Emirates
NBD to pay a special dividend to
the government and that other IPO
hopefuls in Dubai received similar
loans. The toll operator intends to
go public in September. The Dubai
government said it would keep at
least a 60% share in Salik.
Salik is one of ten potential
privatizations in Dubai as part of the
city-efforts states to strengthen its
capital market.
Several firms in the UAE have
been talking about going public.
TECOM Group launched on the Dubai
Financial Market (DFM) , after raising
$462 million in an initial public
offering in June. Burjeel Holdings,
a well-known healthcare provider
in the UAE, has also announced
intentions to raise $750 million via an
IPO in Abu Dhabi.
66 www.thefinanceworld.com September 2022

DFM announces inclusion of TECOM to General Index
The TECOM Group has been
added to the Real Estate Index
sector and the DFM General
Index, according to the Dubai
Financial Market (DFM).
DFM announced in a statement
that the inclusion of TECOM Group
will start on August 8, 2022.
After completing its Initial
Public Offering (IPO), which
attracted significant demand and
was oversubscribed by just over 21
times overall, TECOM Group started
trading on the DFM on July 5, 2022.
The UAE Retail Offer achieved an
astounding oversubscription multiple
of almost 40 times overall, outpacing
any IPO on the DFM to date.
During the first seven months of
this year, the 27 brokerage companies
at the DFM completed more than 1.41
million transactions, transacting 40
billion shares worth Dh98.25 billion.
UAE excels as 24 MENA IPOs raise $13.5 billion
in H1 2022
The number of firms listing in the
MENA area increased by 500%
year over year in H1 2022. 24
IPOs raised $13.5 billion in proceeds,
an increase of 2,952% in value over
the same time in 2021. Worldwide,
630 IPOs generated $95.4 billion in
revenue, a decline of 46% and 58%,
respectively.
The largest IPO in EMEA since
2019 was raised by the Dubai
Electricity and Water Authority PJSC
(DEWA), which raised over $6 billion.
Saudi Home Loans Company raised
$160 million and was listed on the
Tadawul in Q2 2022.
Retal Urban Development
Company raised $384 million after
62 times oversubscribing their
institutional order book. Three initial
public offerings garnered $40.8
million on the Nomu-Parallel Market.
The Second Market of the ADX was
renamed the Growth Market in April
2022.
September 2022 www.thefinanceworld.com 67

Real Estate
New reporting requirements for real
estate transactions in UAE
The UAE has introduced new reporting requirements for “certain real estate transactions”
conducted in the country to fight money laundering and terrorism financing. As part of the latest
directive, all real estate agents, brokers, and law firms are required to file reports to the Financial
Intelligence Unit on the purchase and sale transactions of freehold properties that involve three
methods of payment, whether for a portion or the entirety of the property value.
T
he Ministry of Economy (MoE)
and the Ministry of Justice
(MoJ), in collaboration with
the UAE Financial Intelligence
Unit (FIU), have announced the
introduction of these new reporting
requirements. The UAE is one of the
first countries to implement such a
mechanism for real estate transactions
involving virtual assets, marking the
latest example of the UAE’s sustainable
and evolving approach to the global
fight against money laundering and
terrorist financing. The decision was
made following multiple meetings and
discussions amongst the MoE, MoJ,
FIU, and other competent authorities
in the UAE, including the Executive
Office for Anti-Money Laundering
(AML) and Countering the Financing of
Terrorism (CFT).
The new requirements, which apply
to both the real estate and legal sectors,
aim to “ensure the development of
their regulatory frameworks, leaving
little or no room for manipulation or
illegal practices that could negatively
impact the work environment and the
economy and investment within these
sectors”, said Mr. bin Touq, Minister
of Economy. In UAE includes any of
the below three methods of payment,
whether for a portion or the entirety of
the property value:
• Single or multiple cash
payment(s) equal to or above AED
55,000
• Payments that include the use of a
virtual asset
• Payments where the fund(s) used
in the transaction were derived from a
virtual asset
One of the requirements for the sale
and marketing of off-plan units will
now include that the developer has set
up an escrow account. The proceeds
from off-plan sales will need to be paid
into this account and only taken out
in stages to fund construction. Given
the restrictions on withdrawals, the
developer will effectively have to selffund
(or obtain finance) for the first 20
percent of construction works. These
accounts also apply to existing projects
as well, unless the building has reached
68 www.thefinanceworld.com September 2022

at least 70 percent completions.
DNFBPs include a wide range of
sectors that are mostly exposed to
the risks of money laundering and
misuse of commercial transactions and
the funds traded by them for money
laundering or other illegal practices,
given the nature of the services they
provide and the products they deal
with. Last year, the country established
the Executive Office of Anti-Money
Laundering and Countering the
Financing of Terrorism, an agency
to deal with money launderers,
organizations, and people suspected
of financing terrorists and organized
crime. In November 2020, the Ministry
of Economy set up a new anti-money
laundering department to ensure
that all non-financial businesses and
professionals comply with local laws.
The CBUAE has also been penalizing
exchange houses operating in the
country for failing to achieve the
appropriate levels of compliance with
anti-money laundering regulations.
The relevant private sector
entities have been informed about the
specific requirements in regulatory
circulars issued by the MoE and MoJ.
Additionally, to ensure preparedness,
UAE authorities have collaborated
to host three separate workshops
with real estate agents and brokers,
as well as law firms, helping to guide
them through the new reporting
requirements and enhance their
familiarization with the FIU’s goAML
system. The MoE and MoJ play a key
role in the UAE’s framework for
AML/CFT as the supervisory authorities
for designated non-financial businesses
and professions (DNFBPs), including
real estate agents and brokers, and
law firms, respectively. DNFBPs
include a wide range of sectors that are
mostly exposed to the risks of money
laundering and misuse of commercial
transactions and the funds traded by
them for money laundering or other
illegal practices, given the nature of the
services they provide and the products
they deal with. The MoE and MoJ apply
a proactive, risk-based supervisory
approach in line with UAE legislation
and the international standards set
by the Financial Action Task Force
(FATF).
Al-Marri noted that the real estate
sector is one of the key sectors for
investment and a vital pillar of the
country’s economic development.
The new requirements, with regards to the
reporting rules of both the real estate and
legal sectors, ensure the development of their
regulatory frameworks, leaving little or no room
for manipulation or illegal practices that could
negatively impact the work environment and the
economy and investment within these sectors.
Therefore, he noted, the UAE is keen
to adopt procedures and regulations
that promote sound financial
practices in the sector in line with
the highest international standards.
The new requirements, with regards
to the reporting rules of both the
real estate and legal sectors, ensure
the development of their regulatory
frameworks, leaving little or no room
for manipulation or illegal practices
that could negatively impact the work
environment and the economy and
investment within these sectors.
HE Abdullah bin Touq Al Marri,
Minister of Economy of UAE
The DMA may fine developers
to compensate purchasers where
the developer is delayed beyond six
months. Importantly, this may apply
to existing developments depending
on the stage of completion. The new
law also includes provisions for the
cancellation of projects or appointment
of a new development where there is a
significant delay.
PwC’s recent report, The UAE
Virtual Assets Market, emphasizes
the highly internationalized customer
base of the real estate sector and its
vulnerability to transactions in cash,
as observed by the global Financial
Action Task Force in its 2020 mutual
evaluation report on the jurisdiction.
Earlier in 2022, Dubai introduced
a virtual assets regulatory regime
supervised by the Dubai Virtual Assets
Regulatory Authority. Some real estate
firms are now accepting payments
in cryptocurrencies, although the
UAE nominally prohibits the use
of cryptocurrencies as a method of
payment. Real estate buyers must
work with a third-party broker to
convert their crypto-assets to fiat
currency before sending them to the
seller. Agents, brokers, and law firms
will also have to obtain and record
identification documents for all parties
to a transaction. The Ministry of
Economy and Ministry of Justice have
issued regulatory circulars informing
private sector entities about the new
requirements. The rules apply to both
individuals and corporate entities.
September 2022 www.thefinanceworld.com 69

Real Estate News
Square Yards launch
3D metaverse real
estate platform
One of the world’s fastest-growing
proptech businesses, Square
Yards, unveiled its 3D Metaverse
platform, which features a high-end 3D
digital replica of Dubai City to highlight
how property search and discovery will
evolve in the future. The platform is the
first of its type to deliver high-definition
3D maps for a high-fidelity, interactive
visualisation of real estate using
cutting-edge technologies including
3D, AI, VR, and AR. With this solution,
customers may utilise its interactive
3D interface to browse more than 2000
potential real estate projects across
Dubai, acquire detailed information
about each project, and log into the
project’s metaverse as an Avatar.
SRC and Riyadh Bank
agree to $ 133m real
estate loan
Saudi Real Estate Refinance
Company (SRC), which is fully
owned by Public Investment
Fund, has a contract with Riyadh Bank
to purchase a portfolio of real estate
loans of SR500 million (US$133.13
million). The second-largest mortgage
refinancing arrangement in the kingdom
is the one between SRC and Riyad Bank.
In the presence of Majid bin Abdullah
Al Hogail, Minister of Municipal and
Rural Affairs and Housing, and Abdullah
bin Mohammed Al-Issa, Chairman of
the Board of Directors at Riyad Bank,
it was signed by Tareq Al-Sadhan, CEO
of Riyad Bank, and Fabrice Susini,
CEO of SRC. According to Susini, the
arrangement is a part of SRC’s ongoing
efforts to develop and solidify its
relationships with the top banks and
lenders in the kingdom.
Villa prices fall amid Dubai’s housing
market recovery
According to a new research from
consulting firm Knight Frank, the
average price of a home in Dubai
increased by 10.1% from the previous
summer to AED 1,100 per square foot
in the second quarter of 2022. Faisal
Durrani, Partner – Head of Middle East
Research, Knight Frank, stated that
price increases in Dubai continued
In addition to 396 sales transactions
totaling AED845.37 million, 110
mortgage transactions total
AED376.93 million, and 11 gift
transactions totalling AED96.55 million.
Russians were among the top five
buyers in Dubai’s hot property market
during the first half of the year as the
emirate benefited from an infusion
of riches after Western sanctions.
in Q2 despite a slowing in the rate of
growth. On the other hand, demand in
the mainstream market has increased
by 10.1% over the past year, with villas
continuing to lead the way. Although the
value of villas increased by 19.3% over
the summer, the “developing tone for
pricing is one of the less steep jumps”
Dubai real estate increases by 60% in H1-22
According to property consultancy
Betterhomes, residential real estate
transaction volumes increased by 60%
in the first half of the year, and the value
of the sold properties increased by 85%.
There were 356 villas and apartments
sold for AED693.98 million, 40 land
parcels were purchased for AED151.4
million, and 94 villas were mortgaged.
70 www.thefinanceworld.com September 2022

Nakheel unveils Dubai Islands master
plan vision
The blueprint for Dubai Islands has been published by Nakheel, developer
of the renowned Palm Jumeirah, to meet the UAE’s growing demand for
premium real estate. The five-island development, formerly known as
Deira Islands, is in line with the UAE’s continued efforts to become a top choice
for travellers and investors, according to the developer in Dubai. According
to Naaman Atallah, chief executive officer of Nakheel, “Dubai Islands are an
integral part of the future vision for the emirate, focusing on enhancing the health,
happiness, and wellbeing of residents and visitors, as well as providing the highest
standards and variety of urban infrastructure and facilities.”
Real estate
transactions in Dubai
total more than $463
billion
562 sales of AED1.42 billion were
made in Dubai’s real estate market,
according to data provided by
Dubai’s Land Department (DLD). Along
with 42 gift agreements for AED 94.62
million and 75 mortgage agreements
worth AED 271.02 million. The sales of
520 villas and apartments for AED 1.08
billion, the mortgages of 64 villas and
apartments for AED 258.99 million, and
the sales of 42 land plots for AED 335.9
million total more than AED 1.7 billion in
real estate expenditures.
Bloom grants contract to Edrafor Emirates for
Abu Dhabi project
Edrafor Emirates has been hired by prominent real estate development
business Bloom Holding as the first contractor for the foundational work
of its fully integrated residential community, Bloom Living, in Abu Dhabi. A
significant step forward
in the growth of Bloom
Living will be reached
when the contractor
starts enabling work in
September, just before
the second phase of the
community is launched.
More than 4,000 homes,
including a variety of
villas, townhouses, and
apartments, are included
in Bloom Living’s 2.2
million square metre
development.
Left - CEO of Bloom Holding, Carlos Wakim , Right -
General Manager of Edrafor, Pierre Fayad )
Launch of Yas Park
Gate by Aldar
Yas Park Gate, the newest gated
community from Aldar Properties,
has just begun construction right
outside Yas Park, Abu Dhabi’s first family
and recreation park of its sort. The AED
1.15 billion residential development will
complement the current communities
and include 508 new homes with a total
area of 255,000 sqm as a logical step in
the creation of North Yas’ second phase.
The property enjoys convenient access
to the 115,000 square metres Yas Park,
which is half the size of Yas Mall and
will serve as the model for landscape
architecture throughout the whole North
Yas master development. By combining
a variety of services for the public, Yas
Park will establish a new benchmark for
parks in the UAE.
September 2022 www.thefinanceworld.com 71

Global News
Lamborghini vehicles sold through 2024
The head of Lamborghini claims
that all of the company’s
production through the beginning
of 2024 has already been presold,
demonstrating that luxury
goods are largely unaffected by the
situation of the global economy
at the moment. According to CEO
Stephan Winkelmann, the Volkswagen
business is seeing “strong demand”
and has an order book for the next 18
months. “More people are getting into
Lamborghinis. By 2024, Lamborghini
intends to provide hybrid versions of
each of its models, and in the second
half of the decade, it will launch its first
entirely electric vehicle.
Lulu Group
confirms $237
million expansion
plan for India
The Lulu Group, based in Abu
Dhabi, has made public its
ambitious aspirations for growth
in India. The group intends
to invest more than INR 190 billion
($237 or AED 871 billion). This will
contain shopping malls, superstores,
and facilities for producing food. The
company, with an annual revenue of
over $8 billion, operates five malls
in India, including their first one in
northern India’s Lucknow, in the state
of Uttar Pradesh. The other four malls
are located in south India in Bengaluru,
Thrissur, Thiruvananthapuram, and
Kochi. Over 60,000 individuals work for
LuLu Group, which has operations in
23 nations throughout the Middle East,
Asia, the US, and Europe.
Global
ransomware
losses will top $30
billion by 2023
According to a report by the
technology and cyber security
company Acronis, the total
cost of ransomware damages
would likely exceed $30 billion
by the following year. In order to
prevent consumers or organisations
from accessing their online data and
files kept on computers or servers,
ransomware is a type of malware.
Criminals demand money for the
decryption key because all data is
encrypted. Businesses are more
vulnerable to cyber risks when they
implement hybrid work models and go
through quick digital transformations
to address Covid-19 problems,
according to industry experts.
Johnson & Johnson
will remove talc
baby powder from
stores worldwide
Johnson & Johnson announced
that it will stop selling talc-based
baby powder internationally
in 2023, more than two years
after it stopped selling the product in
the United States, which prompted
thousands of consumer safety lawsuits.
It added that cornstarch-based baby
powder is already available in many
nations around the world. “As part of
a worldwide portfolio assessment, we
have made the commercial decision to
transition to an all cornstarch-based
baby powder portfolio,” according to
the statement. About 38,000 lawsuits
have been filed against the corporation
by consumers and the survivors of those
who have died from cancer, alleging
that asbestos, a proven carcinogen, was
present in the talc goods.
72 www.thefinanceworld.com September 2022

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