finance guide - dubai · ing talent attraction strategies de-signed to increase its intake of...
TRANSCRIPT
1
DUBAI
2019
FINANCEGUIDE Financing
Global Growth
Report dated December 2018
WHYDUBAI?
TRADE EVENTS
OVERVIEW FUTURE GROWTH
GOVERNMENT SUPPORT
03 06
08 10
13
CONTENTS
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Dubai is home to some of the MEASA’s largest banks and the region’s major financial free zone, a domestic stock exchange, an international market with one of the largest concentrations of Islamic bonds, a buoyant insurance sector growing at a rate of 10% per annum and three derivatives platform operators; the Dubai Gold and Commodities Exchange, Dubai Mercantile Exchange, and Nasdaq Dubai. Credit card ma-jors Visa and MasterCard are also headquar-tered in Dubai.
1OVERVIEW
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Six of the 23 home lenders are headquartered in Dubai with combined assets of US$247.6 billion; they include Emirates NBD, the city’s biggest with assets worth US$124.2 billion as of June 2017, which operates 85 branches across the emirate plus 16 in Abu Dhabi. Dubai is also the preferred regional hub for some of the world’s most reputable banking institutions such as Barclays, City Bank, HSBC, Standard Chartered and others, which collectively operate 85 branches in Dubai.
A total of 12 national insurance providers are listed in Dubai Financial Market (DFM) with combined written premiums of US$2.8 billion, equivalent to 55% of the UAE’s total. And of the total 27 foreign insurance companies operating in the UAE, all but two are headquartered in Dubai, including behemoths such as AXA, Zurich Insurance and HDFC Life of India.
55%of the UAE
total
national insurance providers listed in DFM
$18.8Bin 2018
UAE HALAL FOOD INDUSTRY WORTH
OVERVIEWF
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totalling$247.6B
in combined assets
totalling$2.8B
in combined written premiums
6 out
of 23Home lenders based in Dubai
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55
OVERVIEW
And as technology is transforming the way financial transactions are enabled and completed, Dubai is taking the lead in the region’s Fintech sector with a wealth of start-ups setting up opera-tions in the city to develop highly inno-vative payment solutions and market them in the wider Middle East and Afri-ca regions. The number of Fintech start-ups in the UAE has doubled to 43 during the last two years with cryptocurrency, crowdfunding, blockchain and e-pay-ment brands such as OneGram, Beehive, Bridg and Sarwa all vying for a slice of the ever increasing financial technology market.
REGIONAL FINTECH HUB
43fintech start-ups in last 2
years
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Dubai is seen as the financial gateway to rapidly growing markets across the Middle East, South Asia and Africa and is updating its regulatory framework and infrastructure to further improve its position as a strong financial hub ideally positioned to tap into a market of an estimated 3 billion people, due to Dubai’s strategic location and con-nectivity to the highest potential emerging economies.
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FUTURE GROWTH
Lending activity is expected to rise as the approach to Expo 2020 Dubai is driving increased economic activity and investment and Dubai is certain to re-main a major banking hub in the region with devel-opments such as financial technology initiatives helping the city extend its cutting edge well into the future. And as Dubai’s capital markets continue to see innovation in a range of areas, growth of the sector will depend on local and regional economic developments.
Dubai continues to attract global Is-lamic Finance (sukuk) listings wit-nessing a jump from US$9 billion in 2013 to US$51.2 billion as of Sep-tember 2017 helping position the emirate at the top of the leading sukuk-listing centres in the world.
GLOBAL ISLAMIC FINANCE
Sukuk listings
2F
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77
FUTURE GROWTH
Dubai’s ambition to become the first govern-ment in the world to execute all transactions using Blockchain technologies by 2020 is set to fuel more growth funneled by a Smart Bourse strategy which has already seen sig-nificant investment in financial technology initiatives including the eIPO Platform, the iVESTOR Card for cash dividends, the Efsah system for company disclosures and the eSAR report for shareholder analysis.
On the insurance front, a strong medium-term growth potential for the sector exists with compulsory health cover and new rules in motor premiums being just two of the factors driving demand. And in a further move de-signed to encourage investment inflows into the sector, the UAE lifted the ceiling on for-eign involvement in locally incorporated insurance companies from 25% to 49%.
Dubai to execute all transactions using
BLOCKCHAINby 2020
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The government has fostered the process of fi-nancial development to transform Dubai into a regional financial hub with a highly integrated financial system. The leadership has also formed the ‘Supreme Committee of Fiscal Policy’, which is mandated to enhance the financial sustaina-bility in Dubai.
To facilitate more innovative enterprises, the government made significant legislative chang-es allowing greater use of the public-private partnership (PPP) model of financing, offering more support for small and medium-sized en-terprises (SMEs), and overhauling its bankrupt-cy laws.
3GOVERNMENT SUPPORT
With Apple Pay, Samsung Pay and other innovative e-payment systems launching in
the UAE, futuristic Dubai is fast becoming
a cashless society
Legislative changes including more support for SME
enterprises
It is also lending string backing for finan-cial technology initiatives working closely together with DIFC, banks and the private sector in a combined effort designed to es-tablish Dubai as the region’s Fintech hub. Prominent amongst these initiatives is Fin-tech Hive, the Middle East’s first Fintech accelerator programme. Its focus on sha-riah-compliant Fintech has established it as the preferred partner for several Islam-ic institutions from the region.
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In yet another move planned to help boost the crowdfunding sector, the DFSA has launched a new regulatory framework cov-ering both debt and equity-based crowd-funding models. The initiative would help the fortunes of SME companies by allowing them to have access to more debt options to fund their growth needs.
GOVERNMENT SUPPORT
And in order to further facilitate the sec-tor’s growth, the Dubai Financial Services Authority (DFSA) has launched a sand-box-inspired initiative by creating a class of financial services licence that allows fintech firms to test out new products and services within DIFC for a period between six to 12 months without having to meet the requirements of a full DIFC licence.
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LOCATION & CONNECTIVITY• Dubai is a key connecting hub between the markets
of the East and West Ideally located to bridge the cru-cial time zone gap between the markets of the East and West to enable 24/7 services and connectivity.
• Easily accessible through two international airports – Dubai International (DXB) and Dubai World Central (DWC) – within a 4 hour flight of one-third of the world’s population, and within 8 hours of two-thirds.
•90 airlines operate 6,500 flights a week from DXB, to 240 destinations.
•15 passenger carriers operate an average of 153 flights weekly to more than 30 international destina-tions across 10 countries from DWC.
•DXB passenger numbers are projected to reach 103.5 million by 2020 while passenger traffic across Du-bai’s two primary airports is forecasted to rise to 200 million by 2030.
• Home to the world largest manmade port – Jebel Ali – a premier gateway for over 90 weekly services connecting more than 140 ports worldwide. Expan-sions currently underway at the Port will bring total handling capacity to 22.1 million TEU by 2018.
• With its diverse and mature consumer base, Dubai has a proven track record of being the launch-pad to test and expand operations across the wider Middle East, Africa and South Asia.
• Non-oil trade between Dubai and Africa is valued at US$34billion having amounted to US$192 billion over the 2012-2017 period.
• Non-oil trade between Dubai and India reached US$27 billion in 2017, representing 7.6 per cent of Dubai’s total non-oil foreign trade for the same year, and is projected to increase by 5% to US$30 billion by 2020.
4WHYDUBAI?
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6,500 flights a week
DUBAI A KEY HUB
$34B non-oil trade value
with Africa
240 destinations
World largest man-
made port connecting
140 worldwide
WHY DUBAI?F
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TALENT POOL
•Dubai is an incubator for exceptional home-grown talent and a magnet for the world’s most ambitious, sophis-ticated and forward-thinking scien-tists, engineers, technologists and innovators who yearn for a rewarding, career-enhancing ecosystem to thrive, prosper and change the world.
•Dubai ranks 6th globally in a list with the most attractive cities for a global workforce according to Boston Con-sulting Group.
•The Dubai government is implement-ing talent attraction strategies de-signed to increase its intake of knowl-edge workers by 40% by 2021.
•Dubai is home to over 200 nationali-ties, bringing together one of the world’s richest and most diverse pool of languages and skills to suit any business.
•The UAE ranks 4th globally in availa-bility of skills and competencies in the talent pool and 5th worldwide in the Appeal index, which measures the extent to which a country taps into the overseas talent pool, according to the IMD World Talent Ranking.
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WHY DUBAI?
FOREIGN DIRECT INVESTMENT
• Dubai ranks among the top 10 international cities in attracting foreign investment esti-mated at US$7.4 billion in 2017, an increase of 7.1 per cent compared to 2016.
• Liberal and pro-investment policy decisions had gone a long way in setting Dubai on a path towards achieving comprehensive and sustainable development based on innova-tion and high productivity.
• Foreign direct investment has played an in-strumental role in realising these achieve-ments through its contribution to job crea-tion and technology diffusion.
• Dubai is ranked #1 in the world in terms of FDI technology transfer and #3 as loca-tion for AI & Robotics.
Top 10 international
cities
Foreigninvestment
$7.4Bin 2017
Increase7.1%
DUBAI
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5TRADE EVENTS
“A very insightful outlook with
regards to the future of the
industry, with the application of
blockchain and AI.”
Co-hosted by Global Reinsurance and the Dubai In-ternational Financial Centre Authority (DIFC), the third annual Dubai World Insurance Congress (DWIC) re-imagines the traditional conference to deliver unrivalled networking, business and thought lead-ership opportunities, all under one roof. The event is held annually at theDubai World Trade Centre
DUBAI WORLD INSURANCE CONGRESS
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1313
TRADE EVENTS
FINOVATE
This event offers the most effective way to stay ahead of fintech innovation in the Middle East. The 2018 event was attended by over 300 delegates who had the chance to hear from more than 25 expert speak-ers. Finovate brings together the Middle East’s fin-tech community to showcase cutting-edge banking, financial and payments technology. See the latest fintech innovations demoed live on stage and hear insights from global financial services experts.
The event is held annually at theDubai World Trade Centre
300 delegates
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“Finovate is the premier financial technology
conference for a reason. You’ll see the best
examples of leading innovators from around the globe, every single time. ”
TRADE EVENTS
450 senior industry ex-perts and leaders
1,801 exhibitors
146 countries
MIDDLE EAST BANKING INNOVATION SUMMIT
Since 2011, the Middle East Banking Innovation Summit has emerged as the largest platform in the region for banking technology and is the only event that brings together over 450 senior industry ex-perts and leaders to discuss the future of banking. The summit explores the emerging technologies, developments, and trends, as well as the new op-portunities arising for financial institutions through-out the UAE.
The event is held annually at theDubai World Trade Centre
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1515
“The Middle East Banking Innovation Summit provided a very good opportunity to learn
from diverse experts in the field. The event opened up
many opportunities for new businesses and networking
connections to multiple platforms.”
TRADE EVENTS
FUTURE BLOCKCHAIN SUMMIT
The annual event combines multi-format content, networking, closed-door sessions and a high-end curated exhibition for an exceptional, tailored expe-rience. Whether you’re an open source developer, a business leader, an IT professional or even a student – everyone will leave feeling empowered from the Future Blockchain Summit in April 2019. Attend the Blockchain 101 sessions which are bite-size 1 hour workshops that simplify the technology, explain how it is improving people’s lives and provide practical guidelines on how to apply blockchain to your organ-isation.
The event is held annually at theDubai World Trade Centre
101 sessions
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The Blockchain Summit is for any forward-thinking company
realising the potential of Blockchain and the
positive impact it could have on their business.
