Finance World Magazine| Edition: October 2024
This month, we are pleased to present the October edition of Finance World Magazine, focusing on "Embracing the Future of Investment in the Middle East." Our cover story features Eng. Yaser Al Nuaimi, Acting Head of Infrastructure Partnerships at the Abu Dhabi Investment Office, highlights how the Public-Private Partnerships initiative is reshaping the investment landscape of the UAE. In this issue, we explore the integration of AI and personal finance, Dubai's strategic vision for FinTech and advancements made in the healthcare sector, followed by a special feature on "Finance in 2040" - a captivating time capsule of financial predictions.
This month, we are pleased to present the October edition of Finance World Magazine, focusing on "Embracing the Future of Investment in the Middle East."
Our cover story features Eng. Yaser Al Nuaimi, Acting Head of Infrastructure Partnerships at the Abu Dhabi Investment Office, highlights how the Public-Private Partnerships initiative is reshaping the investment landscape of the UAE.
In this issue, we explore the integration of AI and personal finance, Dubai's strategic vision for FinTech and advancements made in the healthcare sector, followed by a special feature on "Finance in 2040" - a captivating time capsule of financial predictions.
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UAE Banking News<br />
DIFC: Top Choice for<br />
International Brokerages<br />
in Dubai<br />
The Dubai International Financial<br />
Centre (DIFC) has solidified its<br />
status as the preferred hub for<br />
prestigious brokerage firms in the<br />
UAE, now hosting 70 firms. In 2023,<br />
the Dubai Financial Services Authority<br />
(DFSA) authorised 12 new brokerages,<br />
reflecting the robust demand and<br />
opportunities for brokers, particularly<br />
from the MEASA region, Europe, the<br />
UK, and the US. Notably, five of these<br />
firms are among the top ten interdealer<br />
brokers globally by volume, including<br />
BGC Brokers L.P., GFI Securities<br />
Limited, and Interactive Brokers.<br />
These brokers offer trade execution<br />
and broker-dealer services. Salmaan<br />
Jaffery, Chief Business Development<br />
Officer of DIFC Authority, highlighted<br />
that the influx of firms reinforces<br />
Dubai’s appeal as a global financial<br />
services hub and DIFC’s commitment<br />
to enhancing its standing in the international<br />
financial market.<br />
GCC Central Banks cut Interest Rates after US<br />
Fed Reduction<br />
The Gulf Cooperation Council<br />
(GCC) central banks swiftly followed<br />
the US Federal Reserve’s<br />
lead in reducing interest rates. The<br />
Fed cut its benchmark rate by 50 basis<br />
points to a range of 4.75% to 5%, following<br />
11 rate hikes in just 16 months.<br />
This move marks the beginning of<br />
what is expected to be a series of cuts<br />
stretching into 2025. In line with this,<br />
the UAE Central Bank reduced its<br />
base rate for the Overnight Deposit<br />
Facility by 50 basis points to 4.90%,<br />
while maintaining its borrowing rates.<br />
Saudi Arabia also reduced its repo rate<br />
to 5.50% and reverse repo to 5%. Qatar<br />
made a slightly larger cut, reducing<br />
rates by 55 basis points. Bahrain followed<br />
suit, decreasing its overnight<br />
deposit rate to 5.50%, effective from<br />
19th September <strong>2024</strong>.<br />
UAE Banking Sector’s Liquid Assets Exceed<br />
$218B: CBUAE<br />
By the end of Q2 <strong>2024</strong>, the UAE<br />
banking sector’s liquid assets<br />
reached AED 801.52B, marking<br />
a 20.2% increase year-on-year, according<br />
to the Central Bank of the UAE.<br />
This figure rose from AED 666.6B<br />
in the same quarter of the previous<br />
year. Quarter-on-quarter, liquid assets<br />
increased by 2%, or AED 14.9B, from<br />
AED 786.6B at the end of Q1 <strong>2024</strong>.<br />
Liquid assets now constitute 18.9% of<br />
the sector’s total assets, which stand<br />
at AED 4.2T as of June. This growth<br />
highlights the resilience of the UAE<br />
banking sector amid global challenges,<br />
supported by the CBUAE’s record<br />
increases in assets, credit, deposits,<br />
and investments while maintaining<br />
strong capital efficiency and reserves.<br />
DP <strong>World</strong> Partners with Nedbank for Supply Chain <strong>Finance</strong> Solutions<br />
DP <strong>World</strong> Trade <strong>Finance</strong> and<br />
Nedbank Corporate and Investment<br />
Bank have formed a<br />
partnership to improve working capital<br />
access for businesses in sub-Saharan<br />
Africa. This collaboration will provide<br />
supply chain finance for DP <strong>World</strong>’s<br />
regional suppliers through a newly<br />
implemented programme, allowing<br />
them to receive early payments on<br />
approved receivables. The initiative<br />
aims to alleviate the working capital<br />
challenges faced by suppliers, offering<br />
a more cost-effective financing option<br />
than traditional solutions. Additionally,<br />
a risk-sharing agreement between the<br />
two companies will facilitate shared<br />
risk in mutually beneficial transactions,<br />
enhancing overall credit availability<br />
for clients. This partnership is<br />
set to strengthen the financial landscape<br />
for businesses operating in the<br />
region.<br />
54 www.thefinanceworld.com Oct <strong>2024</strong>