fbpx

The World Bank anticipated increase in the UAE's current account balance to 12.4% in 2023 and 11.8% in 2024

RIYADH: The World Bank has projected a 3.4% growth in the real Gross Domestic Product (GDP) of the UAE by the year 2023, with expectations of further increase to 3.7% in 2024.

According to the recently published World Bank Gulf Economic Update (GEU) report, the Bank anticipated the UAE's non-oil GDP growth to reach 4.5% in 2023, driven by strong performances in the tourism, real estate, construction, transportation, and manufacturing sectors, along with increased capital expenditure. Meanwhile, the oil GDP is expected to grow by 0.7% in 2023, rising to 3.6% in 2024.

The World Bank anticipated increase in the UAE's current account balance to 12.4% in 2023 and 11.8% in 2024. The UAE is expected to achieve a surplus in the fiscal balance by 5.2% in 2023 and 4.6% in 2024.

According to the report, the Gulf Cooperation Council (GCC) region is estimated to grow by 1% in 2023 before picking up again to 3.6 and 3.7% in 2024 and 2025, respectively. This growth compensated for by the non-oil sectors, which are expected to grow by 3.9% in 2023 and 3.4% in the medium term supported by sustained private consumption, strategic fixed investments, and accommodative fiscal policy.

Khaled Alhmoud, Senior Economist at the World Bank, said that the diversification and the development of non-oil sectors has a positive impact on the creation of employment opportunities across sectors and geographic regions within the GCC.

“GCC countries have witnessed a remarkable increase in female labour force participation,” said Johannes Koettl, Senior Economist at the World Bank. “Saudi Arabia’s achievements in advancing women’s economic empowerment in just a few years is impressive and offers lessons for the MENA region and the world.”

According to the report, the Saudi private sector workforce has grown steadily, reaching 2.6 million in early 2023. Additionally, the labour force participation of Saudi women more than doubled in a span of six years, from 17.4% in early 2017 to 36% in the first quarter of 2023.

Source: zawya

Wize, a UAE-based logistics startup, has successfully raised $16 million in a pre-Seed funding round led by angel investors. This significant investment will fuel the growth and development of Wize's eco-friendly last-mile transportation solutions in the region.

Revolutionizing Last-Mile Delivery with Sustainable Solutions

Founded in 2022 by Alexander Lemzakov, Wize is dedicated to providing sustainable last-mile delivery solutions. The startup offers two core services: a marketplace for electric motorcycles and a subscription platform for businesses to manage their own fleets. Additionally, Wize provides battery-as-a-service and swapping stations, along with a Battery Swap App that allows drivers to reserve batteries in advance and stay informed about charge levels.

Funding for Expansion and Partnership Opportunities

The newly secured funds will be allocated towards product development, strengthening Wize's presence in the UAE market, and exploring new partnership opportunities in the Middle East and North Africa. Wize aims to enhance its offerings and expand its reach, ensuring that more businesses can benefit from their comprehensive ecosystem of sustainable delivery solutions.

A Comprehensive Ecosystem for Sustainable Delivery

Unlike its competitors, Wize has developed a comprehensive ecosystem that aligns with the UAE's net-zero requirements and the UAE Green Agenda. The startup's services include electric motorcycles tailored to meet courier transport regulations, a rental and subscription platform for business owners to manage their fleets, battery-swapping stations, and software components for efficient battery management.

Wize's subscription-based electric motorcycles not only contribute to environmental sustainability but also help businesses reduce transportation costs by up to 30% per month. The Wize Rental and Subscription Online Platform enables clients to manage their fleets 24/7, gathering valuable data on driver behavior, location, speed, and charge levels. Additionally, Wize's battery-swapping stations, known as Wize Power, provide drivers with a convenient way to exchange batteries, ensuring uninterrupted delivery operations.

With a focus on software, Wize has developed its own platform to manage battery swapping stations and monitor the condition of all batteries. This software is fully compliant with local laws, and all data is stored within the UAE, ensuring data security and compliance.

Wize is actively pursuing partnerships with renowned delivery companies in the region. The startup has already established a long-term partnership with Motoboy, the UAE's first sustainable logistics firm, with the shared goal of achieving zero-carbon emissions through the exclusive use of electric bikes. By collaborating with industry leaders, Wize aims to drive real change towards a more sustainable last-mile delivery ecosystem.

In conclusion, Wize's successful $16 million pre-Seed funding round marks a significant milestone for the UAE-based startup. With a focus on sustainability and innovation, Wize is poised to revolutionize last-mile delivery in the region. The investment will support the company's expansion, product development, and exploration of new partnership opportunities, ultimately contributing to a more sustainable and efficient delivery landscape in the UAE and beyond.

  • UAE-based fintech myZoi has raised $14 million from SC Ventures and SBI Holdings.
  • Founded in 2022 by Christian Buchholz and Syed Muhammad Ali, myZoi is a fintech focused on financial inclusion and financial literacy for the underbanked. It recently obtained two regulatory licences from the Central Bank of the UAE.
  • myZoi aims to use the funds to expand its presence in the UAE.

Press release:

myZoi, an innovative fintech focused on financial inclusion and financial literacy for the underbanked, has raised $14 million from SC Ventures and SBI Holdings, as it obtains two regulatory licenses from the Central Bank of the UAE. These achievements mark a significant milestone in myZoi’s mission to enable, digitise and simplify access to essential financial services for over 5 million low-income migrant workers in the United Arab Emirates (UAE) and beyond.

“At the heart of myZoi lies the transformative potential of fintech to innovate with solutions that foster financial inclusion. myZoi will strive towards reducing the transaction cost of migrant remittances to less than 3%, in line with the UN's Sustainable Development Goals 2030 (10c), while providing corporates a digitised, safe and efficient way to process payroll,” said Syed Muhammad Ali, Co-Founder and CEO of myZoi. “As a tech-led, digital-native company, our drive is to make a meaningful difference not just in the lives of the underbanked, but their lifeline, which is their support network of families as well.” 

Headquartered in the UAE, myZoi brings global financial expertise and high standards of compliance. myZoi has secured two licenses from the Central Bank of the UAE: the Stored Value Facilities (SVF) and the Retail Payment Services and Card Schemes (RPSCS) Category II. The licenses enable myZoi to empower the underbanked and support their essential transactional needs through a single platform.

The concept was originally developed by the Co-founder and Chief Product Officer, Christian Buchholz, and incubated under SC Ventures. Buchholz, who led SC Ventures’ design and innovation initiatives across multiple geographies over the last five years, spent extensive time within the communities myZoi will benefit the most. He was deeply inspired by their commitment to remitting up to 80%2  of their income home, leaving little for personal use. The offering, aptly named myZoi, where Zoi means 'life' in Greek, extends beyond the underbanked in the UAE and seeks to also positively impact the families back home. 

“There are over 1.4 billion unbanked individuals globally. At SC Ventures, we invest in innovative business models like myZoi so we can better serve the communities we operate in. We believe that fintech innovations such as myZoi are emerging as the catalyst for change. They are building an ecosystem that delivers simple yet meaningful solutions to low-income migrant workers while offering a commercially viable and socially impactful proposition,” said Gautam Jain, Member, SC Ventures.

myZoi aims to use the funds raised to expand its inclusive and differentiated proposition for the underbanked and their families. myZoi places equal commitment to financial inclusion and financial literacy. myZoi is preparing for its full commercial launch by the end of 2023. 

“We wholeheartedly believe in myZoi’s vision to enable financial inclusion and secure an equitable future for every individual, regardless of their background or social status. Therefore, we are happy to invest in this impactful fintech. Our partnership with myZoi goes beyond mere financial investment and extends to support a more empowered future for all,” said Yoshitaka Kitao, SBI Holdilngs, Inc. Representative Director, Chairman, President & CEO.

Source: Wamda

Thrift for Good wins $50,000 grant from She’s Next UAE-based charity platform Thrift for Good has won a $50,000 grant from She’s Next programme, organised by Visa and First Bank of Abu Dhabi (FAB).

Founded in 2020 by Jennifer Sault, Thrift for Good is a charity shop that rehomes preloved clothes and items to raise funds for children’s charities around the world.

Sault has also won one year of business coaching from ITC SheTrades as well as $3,000 of AWS credits and a 1:1 deep dive consultation to help jump-start the winner’s cloud journey on AWS.

The Founder of The Bookshelf startup Nada Alawadhi was granted the $10,000 People’s Favourite award.

Press release:

Visa (NYSE: V), the world's leader in digital payments, together with First Abu Dhabi Bank today announced Jennifer Sault, the Founder of Thrift for Good, a charity shop in Dubai that rehomes preloved clothes and items to raise funds for children’s charities around the world, as the much-anticipated winner of its second She's Next grant programme for UAE. The winner was selected at an award ceremony held at the Museum of the Future in Dubai.

Handpicked from a pool of over 880 applicants from across the GCC, the winning woman-owned small business received a $50,000 grant along with a year of business coaching from the International Trade Centre (ITC), a United Nations and World Trade Organisation, and $3.000 of Amazon Web Services credits.

The business coaching will be provided by the ITC SheTrades Initiative, ITC’s flagship women and trade programme. The winner was selected from a pool of applicants representing a range of sectors including but not limited to textiles, education, food and beverage, professional services, beauty and wellness.

A jury evaluated entries based on the following criteria: the progression of applicant’s entrepreneurial journey; robustness of their business metrics; digital presence; and demonstrated ability to problem-solve confidently.

The members of the jury included: Shaikha Ali AlNaqbi, Head of Contracting Segment – Corporate Banking, First Abu Dhabi Bank; Khuloud Al Omian, CEO & Editor-in-Chief, Forbes Middle East; Carl Manlan, VP, Inclusion Impact & Sustainability, Visa, CEMEA; Houda Buhumaid, Chief Impact Officer, Dubai Holding; Wendy Paratian, Programme Officer, She Trades; and Hadi Aloh, Head of Sales, Commercial Segment, UAE, AWS.

For the first time, She’s Next included a People’s Favourite award, voted for online by members of the general public. This award with a cash prize of $10,000 went to Nada Alawadhi, the Founder of The Bookshelf, a bilingual book subscription for kids.

Further highlighting the increasing focus on sustainability in today’s local business landscape, most of the She’s Next applicants showcased sustainable business practices. In fact, based on the SMB Digitisation Index commissioned by Visa to support the She’s Next programme, all the women entrepreneurs surveyed in the GCC (100%) acknowledged the increasing importance of sustainability in the current business landscape, indicating their commitment to reduce waste, recycle products (45%), and minimise plastic usage (51%).

Through their participation in the She's Next programme, these women entrepreneurs have already gained access to practical insights from women leaders, valuable tools, educational resources, and facilitated training. This includes access to AWS Connected Community and ITC SheTrades Initiative's "Elevate Your Business" training programme.

Visa and ITC will also provide one-to-one advisory support for 30 finalists – equipping these individuals with the guidance and insights to boost their business and financial strategies.

"In a world where women-owned small businesses consistently demonstrate their resilience and future-forward optimism, Visa is proud to acknowledge and support these trailblazing female entrepreneurs in UAE.

We extend our heartfelt congratulations once again to the winners of She’s Next in UAE and look forward to supporting them in their business journey," said Dr. Saeeda Jaffar, Visa’s SVP and Group Country Manager for GCC.

Sara Al Binali, Group Head of Corporate, Commercial, and International Banking at FAB, said: “The She's Next winners exemplify the strength and depth of women-owned businesses in the UAE.

FAB is proud to be part of a programme that is proving to be so effective at empowering and elevating women entrepreneurs in their journey to success. As we celebrate these exceptional winners, we eagerly anticipate their businesses reaching new heights and making a lasting impact on the UAE's entrepreneurial landscape.”

Source: By Nesma Abdel Azim- Wamda

Nesma Abdel Azim

 

Under the strategic alliance, Network will empower emaratech-owned noqodi’s existing payment channels

Fintech company noqodi has collaborated with Network International to expand digital payments offering that can cover various segments beyond just government and private sector services.

The partnership will enable the Dubai-based firm to provide micro, small, and medium enterprises (MSMEs) with access to additional digital payment solutions while driving shared goal of boosting the UAE’s cashless economy, according to a press release.

Under the strategic alliance, Network will empower emaratech-owned noqodi’s existing payment channels like e-commerce, point of sale (POS), and software point of sale (SoftPOS) to accept card payments.

It will further introduce support to new unbanked segments, including retail and commerce.

General Manager at noqodi, Zahi Kallab, said: “Together with Network, and leveraging noqodi’s unique value proposition, we are committed to supporting MSMEs and simplifying their business operations with accessible and innovative digital payment solutions.”

Kallab added: “This alliance reinforces our dedication to advancing digital payments in line with Dubai’s vision of becoming a fully cashless economy.”

The fintech company is currently integrated with different banks and payment options that come under one payment platform for government and selected private merchants. This includes direct debit, online banking, and cash through partner exchange houses, besides full automation of collections, reconciliation, settlement, and transaction-related services.

Group Managing Director – Acquiring at Network, Andrew Key, said: “Digital payments are becoming more commonplace in the UAE with businesses of all sizes now shifting toward cashless transactions. Given this, there is a growing need for easily accessible innovative digital payment solutions that help simplify business operations.”

Key concluded: “Our partnership further reaffirms our commitment to boosting digital payments in the region in line with Dubai’s bid to become a fully cashless economy.”

Recently, Network joined forces with SerVme, a reservation and guest customer relationship management (CRM) platform for restaurants and hospitality operators, to endorse food and beverage (F&B) merchants in the UAE.

Source: Zawya

UAE-based crypto VC fund Illuminati Capital,  has raised $50 million for a fund that aims to invest in early-stage blockchain and Web3 gaming startups.

Founded by Vickaash Agrawal, Dhaval Parikh, Muhannad Abulhasan and Laura K. Inamedinova, Illuminati Capital aims to build a Web3 ecosystem, driving transformative shifts in decentralised technologies.

Illuminati Capital will focus on multiple verticals, including decentralised finance (DeFi), blockchain gaming, artificial intelligence, NFT infrastructure, and real-world assets (RWA).

Illuminati Capital has raised $50 million to invest in early-stage blockchain startups — including game companies. The hope is to bring its partners’ wealth of experience and expertise to the rapidly evolving Web3 arena.

The firm is based in Dubai and its partners have individually invested in blockchain startups worth over $1 billion, demonstrating impressive growth and valuation.

Setting itself apart from traditional investment firms, Illuminati Capital aims to offer more than just financial support. The venture capital firm is dedicated to building the global Web3 ecosystem and driving transformative shifts in decentralized technologies.

The team behind Illuminati Capital has collectively deployed $30 million, resulting in exits worth $150 million. The partners include blockchain investors, marketing experts, accomplished angel investors, and other talented individuals. The diverse backgrounds of the partners enable Illuminati Capital to provide targeted advice and actively engage with founders.

“We are witnessing a remarkable growth trajectory in Web3 venture investing,” said Vickaash Agrawal, partner at Illuminati Capital, in a statement. “With a track record of 120-plus successful blockchain investments in my investment portfolio, I will bring my expertise in data, infrastructure, regulation and mining.”

Illuminati Capital’s investment focus spans multiple verticals, including decentralized finance (DeFi), blockchain gaming, artificial intelligence, NFT infrastructure, and real-world assets (RWA). By strategically investing in pioneering sectors, Illuminati Capital aims to play a pivotal role in shaping the decentralized economy of the future.

“The possibilities of decentralized technology are endless,” said Dhaval Parikh, a partner at Illuminati Capital and blockchain investor with five-plus years of experience and a portfolio of leading Web3 high-end projects, in a statement. “With a background in VC, I will focus on due diligence, risk assessment, portfolio management, and deal flow while analyzing industry trends and key ecosystem insights.”

The firm’s partnership connections, coupled with its focus on Web3 companies backed by real-world assets, position Illuminati Capital to help portfolio companies grow. Illuminati Capital will provide hands-on assistance with listings, exchanges, business development, public relations, key opinion leaders (KOLs), and more to drive the success of its portfolio projects.

“By leveraging our trusted network and industry know-how, we commit to building a solid foundation for long-term success,” added Laura K. Inamedinova, a partner at Illuminati Capital and CEO of LKI Consulting, in a statement. “As a marketing expert with a portfolio of 250+ Clients, I will advise projects on community building, branding, positioning, marketing strategy, and user acquisition securing early-stage growth.”

Source: Wamda

UAE-based HRtech startup alfii has raised a pre-Seed funding round of $2.5 million, led by US-based venture capital firm, Preface Ventures, Kayan Ventures, UAE-based Aditum Ventures and Wayfinders, along with a collection of local and regional angel investors.

Founded in 2022 by Yousef Albarqawi, Becky Jefferies and Dina Mohammad-Laity, alfii aims to help growing businesses manage their HR workload and reduce time-consuming administrative work.

The recent funding round will support alfii’s plans to expand its team and continue building out its fintech-powered HR automation platform.

Press release:

Dubai-based tech startup alfii announces pre-seed funding of $2.5 million to expand its team and continue building out its fintech-powered HR automation platform. The round was led by Preface Ventures, a U.S.-based venture capital firm that focuses on infrastructure enterprise companies. Kayan Ventures, UAE-based Aditum Ventures and Wayfinders, along with a collection of local and regional angel investors also participated in the round.

Launched in Dubai in November 2022 by Yousef Albarqawi, Becky Jefferies and Dina Mohammad-Laity, alfii was created to help growing businesses manage their HR workload and break free from time-consuming administrative work—ultimately helping them create and deliver a better employee experience.

With sights set on creating the region’s most robust and comprehensive solution for HR and payroll, the team will use the funding to continue developing and enhancing its fintech-powered software platform.

The near-term focus is continuing to build out an innovative suite of payroll features that provide clients with smarter, faster ways to manage payroll and salary disbursements, drastically simplifying a process that is typically tedious and time-consuming for HR owners.

The startup will also invest heavily in engineering and product talent, building out a best-in-class team as it looks to expand the product feature set and optimize the user experience. With a strong focus on product-led growth, alfii will gradually roll out a pipeline of new features to address more core HR processes—like onboarding, time tracking, time off and leave management, and much more—ultimately covering the full employee lifecycle.‍

“We’re looking to build the next generation of this product class, and we’re building it entirely in-house—which means we need to bring on world-class talent to grow our business and better serve our customers,” said Yousef Albarqawi, alfii’s CEO and Co-founder.

Alfii’s progression is part of a bigger trend in the SaaS world towards adapting tools originally available to enterprises and making them accessible and suitable for small- to medium-sized businesses and startups. Yet when it comes to HR software in particular, many pain points have yet to be solved by existing solutions in the MENA region. ‍

“Data interoperability is an industry-wide challenge in the HR stack, but in developing regions like MENA, those challenges are further exacerbated by local and regulatory infrastructure,” said Farooq Abbasi, General Partner of Preface Ventures.

“With alfii's all-in-one software suite, companies will be able to better understand and manage their human capital resources while improving the user experience for employees with features like digital-to-cash remittances, benefits selection, and more. We’re thrilled to invest in a solution built by successful, mission-driven tech alumni.”

HR systems are more relevant and crucial than ever in the wake of major shifts in workforce dynamics, and that especially goes for growing teams with limited HR resources. Meanwhile, the MENA region is at an inflection point in terms of digitizing and automating business processes. "To date, many HR pain points have yet to be solved by existing solutions.

Based on feedback from some of alfii's early customers, it's clear that this platform is effectively addressing those pain points—and doing so with an easy-to-use interface in a wildly scalable format," said Yousef Nassar, Co-founder and Managing Partner of Kayan Ventures. “We are thrilled to be supporting the all-star team at alfii through this funding round.”

source: Wamda

Flyksoft, a UAE-based company that offers SAAS booking software for salons and spas, has successfully raised $55,000 in seed funding from angel investors. This funding will help the company achieve its mission of boosting brand awareness and media presence.

Flyksoft's innovative platform provides an all-in-one solution for managing salon and spa operations.

The software is designed to help businesses streamline their operations by offering features such as appointment bookings, point-of-sale, customer records management, marketing automation, integration with social media, loyalty programs, inventory management, and team management.

Flyksoft also plans to launch the first beta version of its SAAS booking software in May 2023 and will begin registering and onboarding clients from May onwards in the UAE and Gulf markets.

The company aims to be the first salon booking software to offer a competitive pricing range and monthly subscription model.

The first phase of the launch will include mobile apps for Android and iOS, a marketplace, CRM, a marketing module, an integration module, payment gateways, and staff and booking apps. In the second phase, Flyksoft will launch a website builder, accounting and finance and HR module.

Ibrahim, founder of Flyksoft has been working in the same industry for the last 15 years in the UAE and MENA region. He has worked with many technology partners and consulted with current market leaders in the same segment, providing valuable experience and insights to help build the company.

Flyksoft is excited to revolutionise the salon and spa industry by providing a complete solution to simplify business operations and enhance the customer experience.

With this seed funding, the company is poised to make a significant impact in the industry and provide an exceptional level of service to its clients.

Source: khaleej times

Saudi Arabia is expected to surpass the UAE in receiving foreign direct investment in 2023, for the first time since 2012, as both nations continue to be major beneficiaries of the inflow of funds, a recent industry report showed.

According to the Lumina Cross-Border insights report, FDI into Saudi Arabia and the UAE hit record highs with $40 billion in 2022, showing a rise of 58 percent over the previous year.  

“Key MENA projects driving FDI and UK-to-Middle East investment in 2023 will include infrastructure and engineering, tourism and hospitality, and clean/renewable energy, most notably, the megaprojects in Saudi Arabia,” stated the report.  

For instance, Saudi Arabia’s top seven infrastructure projects will cost $690 billion to construct. These schemes are NEOM, ROSHN, Diriyah Gate, Jeddah Central, Red Sea Project, AlUla, and Qiddiya.  

It added: “Regional presence for aspiring global firms to take advantage of such growth is now seen as a must rather than a nice-to-have.”

The report further predicted that the two-way investments between the Middle East and Europe will drive record FDI levels in 2023.

“As global corporates and funds increasingly set up roots in the region, with talent continuing to move in, 2023 is anticipated to be another record year for FDI in the Middle East.”

It said that deal-making is also expected to flourish due to a largely resilient regional-led global mergers and acquisitions environment last year.  

The report also predicts a significant change in existing partnerships in the region as firms in the UK will reassess joint ventures in the Middle East to determine their relevance today.

“2023 will be a tale of two halves, with H1 seeing highly active Middle East corporates and funds continuing to invest into European companies, as domestic markets continue to face varying levels of economic turbulence.

This will create a myriad of investment opportunities to diversify globally and gain access to best-in-class skills and talents,” said Andrew Nichol, partner at Lumina Capital Advisers.  

He added: “In H2 we anticipate improving sentiment across developed markets, which will drive global demand for natural resources, oil included. The region is extremely well positioned for yet another strong year ahead.”

source: Arab News

Higher repayment rates are not yet a widespread deterrent, but budgets are affected, and some are shifting to cash or speeding up transactions to beat rate hikes

Rising interest rates are not yet a widespread deterrent for UAE mortgage customers, although some brokers have noticed rising cash transactions and a trend towards buyers moving faster to secure the lowest payments possible.

Real estate agents and mortgage brokers said that the majority of customers are now looking to fix their mortgage rates rather than remain at the mercy of further interest rate rises.

Morgan’s Realty said it had seen around 50% of mortgage home buyers taking fixed rate mortgage rates in 2021, compared with around 90% in 2022 as fixed rate deals are now averaging 4.49%.

Rates were as low as 2.39% in 2021, Morgan’s said, with customers at that point fixing their rates for three years.

Cash deals

In its most recent market report on Dubai real estate, Morgan’s reported a much higher proportion of cash transactions as the year progressed.

In Q2 2022 and Q3 2022, the agency reported 8,629 and 8,469 cash transactions and 4,801 and 5,254 mortgage transactions respectively.

In the first quarter, the figures were much closer, with 4,564 cash transactions and 4,461 mortgage transactions, the report showed.

For online mortgage broker Huspy, there has been a noticeable surge in people looking to secure mortgages as rates rise, with the most recent increase in applications being 25% month-on-month.

Sawan Karia, head of Huspy’s broker channel, said the increase could partially be attributed to its own increase in market share, but also rising interest rates.

UAE has competitive rates

UAE banks are required by the Central Bank of the UAE to revise offers based on current interest rates, said Karia, with more interest rate hikes expected before the end of 2022.

“On average, mortgage rates are at 4.5% as compared to 2.5% last year. However, the UAE still has competitive rates as compared to a number of other global property markets. Policy makers have played a positive role in balancing market stability with growing demand for property ownership,” he said.

Karia noted the difference in mortgage payments for a customer taking out a fixed rate mortgage now on an AED 2 million property compared to last year, which would be AED2,000 per month. However, the return on investment of 5-8% means buying a home is still a preferred option for those wanting a stable asset amid financial uncertainty, he said.

Rosie Patterson, Better Homes LLC’s mortgage channel partner, said mortgage applications had increased month-on-month and year-on-year, with Q3 2022 up 80% on Q2 2021 and 33% on Q2 2022.

“We have experienced banks changing rates with shorter notice than they used to. However, this is the new normal for us, and we are getting clients to understand the situation and secure properties quicker, as we know rates might change,” she said.

There has been less interest in remortgaging, Patterson said, as the rate rises impact cost effectiveness.

For mortgage consultant Graham Brown of MENA mortgage matters, affiliated to Dubai-based broker haus & haus, Q1 and Q2 2022 saw consistent applications, with a 10% QoQ increase in Q2, while Q3 decreased by 15%

Anecdotally, rate increases did start to deter some buyers from February, but rising rents convinced others into buying, he said, adding that exchange rates for the euro and pound against the dollar are also a consideration.

“The biggest barrier to entry is the cash amount required,” he said, “and of course if your funds are in GBP or EURO then they have taken a hit, which may mean that clients can’t buy at the level required.

“Some are simply reducing their budgets accordingly or waiting until there is a return to some normality. Obviously if your funds are held in US dollar then there’s been no change.”

Source: Zawya

Page 2 of 9

About Us

Enjoy the power of entrepreneurs' platform offering comprehensive economic information on the Arab world and Switzerland, with databases on various economic issues, mainly Swiss-Arab trade statistics, a platform linking international entrepreneurs and decision makers. Become member and be part of international entrepreneurs' network, where business and pleasure meet.

 

 

Contact Us

Please contact us : 

Cogestra Laser SA

144, route du Mandement 

1242 Satigny - Geneva

Switzerland