A framework agreement of cooperation between IsDB and Standard Chartered Bank
27 Oct 2020 Written by Admin AdminIsDB President Dr. Bandar Hajjar and M. Sunil Kaushal, CEO for Africa and Middle East, Standard Chartered Bank (SCB), signed a Memorandum of Agreement to participate in IsDB’s Restore Track Program aimed to supporting IsDB’s member countries’ private sector through stimulus packages to the economic sectors most impacted by the CoVID19 pandemic.
This agreement leverages on IsDB’s $2Bn “COVID Guarantee Facility” to establish an operational cooperation framework for IsDB and SCB to facilitate financing arrangements to IsDB’s Member Countries.
The COVID pandemic has disrupted international financial channels and put pressure on hard currency inflows to Emerging Markets. This pressure led to considerable limitations of the private sector’s access to financial liquidity.
Combined with the loss of income due to reduced demand, the health crisis poses unprecedented challenges to the private sector and especially SMEs.
Through its cooperation with Standard Chartered Bank, IsDB aims to help alleviate some of these pressures by providing blended lines of finance to local banks at competitive prices.
“I am glad to see our, already strong, relationship with Standard Chartered Bank further strengthened with this unique and innovative partnership” stated H.E IsDB’s President, Dr. Bandar Al Hajjar.
He also expressed his firm conviction that SCB’s funding expertise added to IsDBG de-risking guarantees will make a lasting impact for IsDB’s Members Countries.
Sunil Kaushal expressed his thanks to IsDB for the developing partnership between the two institutions noting that IsDB is the first Bank to sign such agreement with SCB. He also expressed his strong commitment to support IsDB member countries to fight COVID-19.
Both agree that this “out of the box” partnerships between MDBs and the private sector are now necessary to overcome the challenges of our times.
The Islamic Development Bank (IsDB) is a multilateral development bank (MDB) counting 57 member countries across four continents - touching the lives of 1 in 5 of the world’s population.
IsDB works to improve the lives of those it serves by promoting social and economic development, delivering impact at scale. IsDB is one of the world’s most active MDBs, and global leaders in Islamic Finance, with a AAA rating.
Headquartered in Jeddah, Saudi Arabia, IsDB is a truly global institution with major hubs in Morocco, Malaysia, Kazakhstan and Senegal; and gateway offices in Egypt, Turkey, Indonesia, Bangladesh and Nigeria.
Standard Chartered Bank (SCB) is a leading international banking group, with a presence in 60 of the world’s most dynamic markets and serving clients in a further 85.
SCB’s purpose is to drive commerce and prosperity through it unique diversity, and heritage; and values are expressed in it brand promise, “Here for good”.
Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges.
Competitive Advantage: Exploring The Middle East's Potential To Become A Global Fintech Hub
04 Jul 2020 Written by Admin AdminInvestment in Middle Eastern fintech companies is expected to grow to around US$2 billion in venture capital by 2022, which will fund 465 fintech companies, an increase from $80 million that was raised by 30 fintech companies in 2017.
As a result of the coronavirus pandemic, the fintech scene has boomed in the past few months, with the world adapting to a new digital and economic environment. According to new research by financial consultancy deVere Group, the COVID-19 crisis has driven a gigantic 72% increase in the use of fintech apps in Europe alone. Meanwhile, fintech companies in Asia and the Middle East have also seen strong increases in the use of their apps.This growth comes as no surprise, since people are now having to rely on digital technology to work, communicate, and entertain themselves during the pandemic.
For the Middle East, the demand for e-commerce has particularly contributed to the rise of fintech in this region, with store closures moving purchases online. Indeed, although the COVID-19 crisis has encouraged fintech innovation to rocket across the globe, the Middle East continues to be at the forefront when compared to other countries. With one of the youngest tech-savvy youth populations, strong international talent, and significant funding from venture capital, the Middle East has the competitive edge it needs to accelerate innovation and consolidate its position on the global fintech stage.
The Middle East and North African region has the largest youth population in the world with two out of every three people being under 24. This equates to approximately 300 million young people in the region. This huge youth population presents an opportunity for the Middle East to be innovative, and to reconstruct their economy, with the number of fintech startups in the Middle East expected to exceed 250 this year. The youth are also more likely to embrace tech/digital products, presenting significant potential demand for fintech companies looking to emerge in the region.
What’s more, a young population translates into a digital native generation. According to GSMA Intelligence, a mobile industry trade body, the number of unique mobile subscribers is predicted to rise from 275 million in 2017 to 459 million by 2025. Smartphone connections are predicted to rise from 49% of all connections to 74% over the same period. This will be important for fintech companies to evolve in the Middle East.
Meanwhile, investment in Middle Eastern fintech companies is expected to grow to around US$2 billion in venture capital by 2022, which will fund 465 fintech companies, an increase from $80 million that was raised by 30 fintech companies in 2017. The Milken Institute Centre for Financial Markets reported that the fintech sector in the Middle East is growing at a compounded annual growth rate of 30% due to the acceleration of fintech and the adoption of technology in the region. The average deal size is currently at $2.5 million, with the UAE accounting for 47% of all fintech deals in the region in 2019.
Countries across the Middle East such as the UAE and Saudi Arabia are also receiving substantial support from their governments when it comes to developing the fintech sector. The largest fintech hub in the Middle East, Dubai established the Dubai International Financial Centre that launched a $100 million fund in 2017 to support fintech startups. In Saudi Arabia, the Saudi Arabian Monetary Association launched Fintech Saudi to develop fintechs in the kingdom as well as supporting fintech companies to join the sandbox, an experimental environment for fintech services.
A number of countries in the Middle East are particularly keen to attract international talent as a way of instigating fintech innovation domestically. For example, the UAE and Saudi Arabia have both established a visa system expansion scheme to make it easier for foreign nationals to reside in their countries. In addition, Abu Dhabi launched Tomorrow 2021 in 2018, a three year vision which focuses on attracting and retaining international talent. The outcome of these initiatives have resulted in many Middle Eastern countries to have populations made up of mostly foreign nationals. In fact, last year, there were 35 million international migrants in the Gulf Cooperation Council countries, transforming the region into an international talent hub.
The coronavirus pandemic has undeniably played a role in the rise of fintech across the world. The Middle East, however, still has an advantage in becoming a global fintech hub due to its large youth population, considerable venture capital funding, government support and international talent. With the MENA fintech market set to reach $2.5 billion by 2022, the Middle East is developing a fintech industry at a staggering rate.
source: entrepreneur
