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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Bank Investments in Monetary Bills, Islamic CDs reach AED 62B by Q2 <strong>2024</strong><br />
At the end of Q2 <strong>2024</strong>, banks’<br />
investments in monetary bills<br />
and Islamic certificates of deposit<br />
(CD) rose to AED 226.9B, marking a 10.3%<br />
increase from AED 205.7B in the same<br />
period last year, according to the Central<br />
Bank of the UAE (CBUAE). Investments<br />
in Shariah-compliant CDs reached AED<br />
43.9B. The Central Bank’s foreign assets<br />
also grew by 5.3% quarter-on-quarter,<br />
totalling AED 770.6B, driven by a 9.1%<br />
increase in current account balances<br />
and deposits abroad, alongside a 1.0%<br />
rise in other foreign assets. Year-on-year,<br />
these foreign assets surged by 30.1%.<br />
Additionally, total capital and reserves<br />
for UAE banks rose by 3.9% to AED<br />
495.2B, maintaining a capital adequacy<br />
ratio of 18.3%, well above the regulatory<br />
minimum.<br />
UAE Banks’ Net<br />
Reserves Rise 8.1% in<br />
H1 <strong>2024</strong><br />
The UAE’s banking sector<br />
experienced an 8.1 percent growth<br />
in net international reserves during<br />
the first half of <strong>2024</strong>, amounting to an<br />
increase of AED 92.3B. By the end of<br />
June <strong>2024</strong>, these reserves totalled AED<br />
1.238T, compared to AED 1.145T at<br />
the same point last year. The Central<br />
Bank of the UAE played a major role,<br />
contributing AED 769.7B, marking a<br />
14.3 percent rise from AED 673.42B at<br />
the close of 2023. Banks operating in the<br />
country accounted for AED 468.13B of<br />
the total reserves by June. Additionally,<br />
the Central Bank’s gold reserves grew by<br />
22.1 percent year-on-year, reaching AED<br />
20.467B, an increase of AED 3.7B from<br />
AED 16.768B in June 2023. Gold reserves<br />
also rose by 12.8 percent during H1 <strong>2024</strong>.<br />
The Central Bank’s diversified assets<br />
include gold, liquid funds, certificates<br />
of deposit, and securities, reflecting a<br />
robust financial strategy.<br />
AMF Official Praises Qatar’s Banking Sector<br />
Qatar’s banking sector ranks<br />
highly among Arab countries<br />
in terms of capital adequacy,<br />
with a ratio of 19.2%, showcasing its<br />
resilience, according to Dr. Fahad bin<br />
Mohammed Al Turki, Director General<br />
of the Arab Monetary Fund. Speaking<br />
at the Arab Banking Conference <strong>2024</strong>,<br />
Al Turki commended Qatar’s banking<br />
sector, which accounts for 11.9% of<br />
Arab banking assets, ranking third in<br />
the region. He emphasised the need<br />
Emirates Development Bank<br />
(EDB) reaffirmed its role as a<br />
financial catalyst for economic<br />
and industrial growth in the UAE at<br />
the Sharjah Investment Forum (SIF<br />
<strong>2024</strong>), organised by the Sharjah FDI<br />
Office. Since launching its strategy<br />
in April 2021, EDB has allocated<br />
over AED 12B in financing, with AED<br />
954M directly benefiting Sharjah and<br />
contributing AED 442M to the emirate’s<br />
GDP. At the forum, CEO His<br />
for banking institutions to innovate<br />
by offering financial products that<br />
support investments in sustainable infrastructure,<br />
clean energy, and projects<br />
with social and environmental goals.<br />
Furthermore, he highlighted the importance<br />
of integrating sustainability<br />
standards into lending and investment<br />
operations. Al Turki noted that Arab<br />
banks’ capital adequacy averaged<br />
17.4% last year, exceeding the international<br />
target of 10.5%.<br />
Emirates Development Bank Commits to Sharjah’s<br />
Growth at SIF <strong>2024</strong><br />
Excellency Ahmed Mohamed Al Naqbi<br />
praised Sharjah’s potential for innovation<br />
and sustainable growth. He<br />
stressed EDB’s commitment to fostering<br />
a diversified economy through<br />
flexible financing solutions and strategic<br />
partnerships. During a panel<br />
on “Building Smart Economies,” Al<br />
Naqbi also highlighted EDB’s AI Wave<br />
Program, showcasing the bank’s dedication<br />
to utilising AI for innovative<br />
financing approaches.<br />
Oct <strong>2024</strong> www.thefinanceworld.com 55