Business

AMMAN — Dubai is set to host the first-ever Dubai FinTech Summit on May 8 and 9 under the patronage of Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, and Deputy Prime Minister and Minister of Finance of the UAE. 

The summit will be organised by Dubai International Financial Centre (DIFC), the leading international financial hub in the Middle East, Africa, and South Asia (MEASA) region. 

The event will take place at Madinat Jumeirah and will bring together over 5,000 global FinTech C-suite executives and technology experts to discuss the latest innovations and challenges in the sector, according to a statement from Government of Dubai Media Office.

The global FinTech sector is rapidly growing and is predicted to be valued at $305 billion globally by 2025, according to Research and Markets, an intelligence and market analysis firm. In the MEASA region, the industry is expected to double in value from $135.9 billion in 2021 to $266.9 billion in 2027, according to the 2022 report by DIFC FinTech Hive.

The Dubai FinTech Summit will offer a unique platform for startups, investors, and industry leaders to connect and capitalise on the growing FinTech market in the region and beyond, the statement said. 

The MENA region’s FinTech startup and venture capital landscape is booming, with over 800 FinTech startups worth $15.5 billion, according to data by dealroom.co. Dubai alone is home to over 20 per cent of the world’s FinTech businesses, according to the UAE Fintech Market – Growth, Trends, and Forecasts (2023 - 2028) Report by Mordor Intelligence. 

The FinTech Summit will feature a series of panel discussions, fireside chats and over 100 FinTech exhibitors.

Mastercard’s 2022 Digital Payments Index report reveals that digital payments are gaining traction in the MENA region. More than 85 per cent of respondents reported using at least one emerging payment method in the past 12 months, indicating a shift away from cash-based transactions.

 Among MENA countries, the UAE stands out as being ready to embrace a cashless society. According to the event’s co-host sponsor Visa, 52 per cent of UAE consumers are already cashless or plan to be by 2024.

The summit will feature a lineup of distinguished speakers from both local and international arenas. Notable speakers include Abdulla bin Touq Al Marri, UAE Minister of Economy; Bill Winters, Group Chief Executive of Standard Chartered; Brad Garlinghouse, CEO of Ripple; Piyush Gupta, CEO of DBS Bank Singapore; Jenny Johnson, President and CEO of Franklin Templeton; and Brian Armstrong, CEO and Co-Founder of Coinbase, among others.

Mohammad Alblooshi, Head of DIFC Innovation Hub and FinTech Hive, underscored the importance of the Dubai FinTech Summit. “Nearly 60 per cent of all FinTech companies in the GCC are currently based in the city. With the industry growing at an unprecedented rate, it is crucial for stakeholders to gather and discuss the challenges and opportunities that lie ahead. The Dubai FinTech Summit promises to bring together the most prominent figures in the industry, with an agenda that will captivate and inspire audiences worldwide.”

The summit will offer attendees a platform to participate in discussions and exchange ideas on emerging trends, regulatory frameworks and future possibilities. The event will feature discussions on a range of topics, including “Building the Economies of the Future”, “Crypto and the Evolving Regulatory Framework”, “The World of Finance: Where are the Women?”, and “Building a Resilient and Sustainable Financial Sector in the Age of Disruption”. Participants will have the opportunity to gain valuable insights on these critical issues from industry leaders and experts.

The panel discussions will offer a platform for experts to share their insights on current and future issues in the FinTech industry and explore how they can shape the future of the financial sector. The agenda promises to be informative and insightful, providing valuable opportunities for networking and collaboration among participants.

WASHINGTON — The US Federal Reserve is widely expected to raise its benchmark lending rate for a 10th — and possibly final — time on Wednesday, as it aims to bring down inflation while preventing fresh banking concerns from spreading.

The Fed resumed its 2 day meeting Wednesday morning, and will publish its interest rate decision in the afternoon.

The US central bank began its aggressive campaign of interest-rate hikes in March last year, and has since raised rates nine times in a row to help target inflation stuck stubbornly high above its long-term target of two per cent.

"Getting inflation back down to 2 per cent has a long way to go and is likely to be bumpy," Fed Chair Jerome Powell said during a press conference after the March rate decision.

With the Federal Open Market Committee (FOMC) widely expected to raise its base rate by a quarter-point on Wednesday, analysts and traders are instead keeping a keen eye out for any change to the Fed's forward guidance.

Some analysts, including Goldman Sachs chief US economist David Mericle, predict the Fed will signal a pause in hikes from June onward, while Deutsche Bank economists see the Fed maintaining a "tightening bias" due to "stubbornly elevated" inflation.

Banking woes resurface 

After a relatively calm period for banks following crisis-level worry in March, this week saw the reemergence of some turbulence with the collapse of California-based lender First Republic.

The commercial bank's failure, the second-largest in US history, was announced early Monday along with a sale to JPMorgan Chase, with regulators hoping that fears would finally be calmed.

But regional banks came under renewed pressure Tuesday, with some share prices declining by as much as 25 per cent on concerns about the impact of interest-rate hikes on their financial health.

Despite Tuesday's turbulence, futures traders still see a greater-than 80 per cent chance the Fed will stick to its guns and hike rates by a quarter-point, bringing its benchmark lending rate to between 5 and 5.25 per cent.

Heading for recession? 

US economic data remains mixed but is showing some signs of softening, with growth slowing to an annualized rate of 1.1 per cent in the first quarter.

Some analysts believe this will provide the Fed with the justification it needs to come out with more mild forward guidance after Wednesday's decision.

"We expect Chair Powell today to emphasise that the Fed is now data-dependent, and that nothing is guaranteed," Pantheon Macroeconomics economists wrote in a note to clients after markets closed on Tuesday.

The data on inflation paints a picture of slowing price increases in some areas and ongoing stubbornness in others, while figures on employment point to a weakening job market as the economy slows.

"By the time of the June meeting, we believe softness in the data and ongoing worries about the impact of constrained bank credit will probably be enough to deter further hikes," Goldman Sachs economists wrote in a recent note.

Minutes published from the March FOMC meeting showed that the Fed predicted the US will enter a mild recession later this year.

The extent of the recession could depend on how much further the Fed decides to raise interest rates, KPMG senior economist Kenneth Kim wrote in a recent note.

"Any further rate hikes beyond May risk a deeper recession than the mild downturn we currently foresee," he said. 

Tighter credit conditions 

Fed officials have in recent weeks suggested that the tighter lending conditions after Silicon Valley Bank's dramatic collapse in March could act like an additional rate hike and help bring down inflation.

"A significant tightening of credit conditions could obviate the need for some additional monetary policy tightening," Fed governor Christopher Waller said last month.

But he cautioned against "making such a judgment" before good data is published on the effect of the financial turmoil and bank lending.

That data could come as early as next Monday when the Fed releases its quarterly review of banking lending practices.

FOMC members already have access to the report during their deliberations this week, adding to the intrigue among analysts and traders into the Fed's future interest-rate guidance on Wednesday.

"If the Fed intends to pause in June, it will likely use the post-meeting statement to guide market expectations," Oxford Economics' chief US economist Ryan Sweet wrote in a recent note.

DUBAI — The UAE's Emirates airline does not feel threatened by ambitious expansion plans in neighbouring Saudi Arabia and welcomes increased competition, its president said on Tuesday.

Saudi Arabia has announced a new national carrier, Riyadh Air, and a big new airport in the capital to handle up to 120 million travellers per year.

But Emirates president Tim Clark, who put the cost of the plans at $2.5-3 trillion, said there was a long way to go for Saudi airlines and other competitors, including Air India which ordered 470 Airbus and Boeing planes in February.

"You've now got Saudi Arabia announcing these huge plans, the likes of which nobody's really seen before," Clark told journalists at the Arabian Travel Market industry fair in Dubai.

"They made statements such that they want 100 million tourists into Saudi Arabia by 2030. But you don't need one airline, you need 10 airlines to do that," he added.

Saudia and Riyadh Air, which together announced orders for 78 Boeing 787 Dreamliners in March, will be complemented by NEOM Airlines, flying from NEOM, a $500 billion futuristic city being built from scratch, from 2024.

"Paradoxically, you'll hear me saying that the more carriers that come into play, they've got quite a good chance going forward of being profitable," Clark said.

With annual air traffic at four billion worldwide before the pandemic, and rising by 4-6 per cent per year, seven billion passengers could be flying every year by the 2030s, he added.

But Riyadh Air and Air India also need to be served by "seamless, wonderful" airports, Clark said, if they are to follow the model of Dubai-based Emirates which flies out of one of the world's busiest air hubs.

"Do I see this as a threat to us? No, I don't think so. Because Emirates has spent the best part of 35, 36 years building its brand," Clark said.

"Never in my wildest dreams did I think that Emirates would have it all its own way in perpetuity... but is there room for more? Well, bring it on."

Clark would not pre-empt next week's earnings announcement but said it had been a "good year", with a seat factor or passenger load of nearly 80 per cent last week.

Emirates reported record half-year profits of $1.2 billion in November as it bounced back to profit after a $1.1 billion loss in the post-pandemic 2021-2022 financial year.

The United Arab Emirates' biggest airline should regain its full pre-pandemic network of destinations by summer next year, Clark said, when "20-25" Airbus A380s grounded for technical reasons are able to fly again.

In January, Emirates flew a Boeing 777 with one engine powered entirely by sustainable aviation fuel — made from biomass, recycled food oil and synthetic fuel from captured CO2 or green hydrogen — calling it a "milestone".

However, Clark said there were major hurdles to adopting sustainable fuel, pointing to a lack of supply and the cost of repurposing refineries.

"I don't think we should over-promise. I think we should say what we're doing and I intend to get the job done," he said.

"But... you will not fly an A380 to Los Angeles, with 500 passengers on board burning 200 tonnes of fuel, on anything other than fossil fuel for the time being."

AMMAN — Ninety-six per cent of 167 listed companies have provided the Amman Stock Exchange (ASE) with their reviewed quarterly financial statements for the period that ended on March 31.

The deadline for submissions, through the e-disclosure System XBRL, was May 1, Chief Executive Officer of ASE Mazen Wathaifi said on Tuesday. 

Wathaifi added that this high percentage reflects the compliance of listed companies with the laws and regulations, and the compliance of such companies with the principles of transparency and disclosure, the ASE announced on its website.

The CEO added that all listed companies on the ASE should provide their reviewed interim financial statements within the specified period, according to the Directives for Listing Securities on the ASE. 

He also confirmed that the ASE posts these financial statements on the ASE website under Circulars and Disclosures/quarterly reports window.

Wathaifi stated that profits after tax attributable to the company's shareholders for the first quarter of 2023 for the public shareholding companies listed on the ASE that provided their financial statements decreased to reach JD590 million, compared with JD631.2 million for the first quarter of 2022, a decrease of 6.5 per cent. Profits before tax for these companies also decreased, reaching JD812.1 million for the first quarter of 2023, compared with JD822.5 million for the first quarter of 2022, a decrease of 1.3 per cent.

In terms of sectors, profits after tax for the financial sector increased by 14.2 per cent, the services sector decreased by 10.3 per cent, and the industrial sector decreased by 25.4 per cent.

He added that three companies namely, Jordan French Insurance, Gulf Insurance Group – Jordan, and First Jordan Investment Company have failed to provide the ASE with their reviewed interim financial statements for the period ended on March 31, 2023 during the specified period. Accordingly, the ASE suspended their shares from trading as of Tuesday. The trading in these companies’ shares will remain suspended until they provide the ASE with the required financial statements.

Wathaifi also indicated that the ASE will continue suspending the trading in shares of Al Sanabel International for Islamic Investments (Holding), Transport & Investment Barter Company, The Arab Assurers Insurance  and Winter Valley Tourism Investment for failing to provide the ASE with their previous financial statements, in addition to the interim financial statements for the period ended March 31, 2023, noting that the shares of these companies shall continue to be available for trading in the Unlisted Securities Market.  

ROME — Italy's right-wing government on Monday rolled back anti-poverty subsidies introduced four years ago that helped some four million people last year, as critics denounced a "provocation" on the international May Day labour holiday.

Prime Minister Giorgia Meloni, who leads the country's most far-right coalition since World War II, said the "citizens' income" benefits would be replaced by a more limited "inclusion cheque" for qualifying households.

The government says it costs too much, at around 8 billion euros ($8.8 billion) last year, and discourages able-bodied people, especially youths, from looking for jobs.

The new inclusion cheques, set to begin in January 2024, will cost around 5.4 billion euros annually, and be available only to households with minors, seniors 60 or older, or handicapped people.

Since taking office last September, Meloni has pushed corporate tax cuts while also promising to restore Italy's economic credibility by cutting debt incurred most recently during the COVID-19 pandemic.

"We are reforming the citizens' income to make a distinction between those who are able to work and those who aren't," Meloni said in a statement.

Her government also made it easier for companies to hire on short-term contracts — which unions blast as keeping employees in precarious economic situations — while promising tax breaks to firms hiring people benefitting from the new inclusion cheques.

The goal is to stimulate hiring and encourage more youths to find work in the eurozone's third-largest economy, where the employment rate for 15-to-24-year olds, at 22.4 per cent in February, is nearly three times above the national average (8 per cent).

The citizens' income programme was introduced by the populist Five Star Movement (M5S) in 2019, and its supporters say it has provided precious help to millions of low-income households, in particular in impoverished southern regions.

Italy's INPS social security agency says the citizens' revenue benefited four million people last year, with an average monthly subsidy of 550 euros.

The new inclusion cheques will be capped at 500 euros a month, though further aid will be offered for households with elderly or handicapped members, or those that do not own their homes.

"A serious government does not meet on May 1 to condemn young people to a life of precariousness, destroying their dream of having a home or children," said former Five Star premier Giuseppe Conte.

Roberto Fico, a popular former speaker of the lower house of parliament, called Meloni's move a "provocation".

In a statement, Meloni defended "a strong signal and a priviledge to honour workers on this day of celebration, bringing them the answers they are expecting".

Thousands of May Day demonstrators turned out across the country, including Rome where some threw eggs at government buildings, as labour unions held their main joint rally in the southern city of Potenza. 

AMMAN — Arab Bank Group reported solid results for the first quarter 2023, with 30 per cent increase in net income after tax reaching $216 million as compared to $166 million for the same period last year.

The Group maintained its strong capital base with a total equity of $10.4billion. Loans grew to $35.4 billion and deposits reached $47.7 billion. Excluding the impact of devaluation of several currencies against the US dollar, loans and deposits grew by 3 per cent and 4 per cent, respectively, according to an Arab Bank statement.

Sabih Masri, Chairman of the Board of Directors, stated that Arab Bank’s first quarter 2023 performance was strong despite thechallenging environment for banks globally and regionally. 

He also added that the results reflect the bank’s resilience and ability to deliver sustainable growth. Masri commented that the bank remains committed towards serving customers’ evolving needs, and continuing to invest in innovation and digital transformation.

Randa Sadik, chief executive officer, stated that Arab Bank continued to deliver sustainable growth rates during 2023 despite the continued elevated inflation and interest rates. 

Sadik commented that the bank’s net operating profit grew by 50 per cent driven by the growth in revenues from its core banking business as well as disciplined control of operating costs, where provisions held during the period reflect the bank’s prudent strategy against the increased economic uncertainty witnessed globally and regionally.

Sadik added that the Group’s liquidity and asset quality remains solid where loan-to-deposit ratio stood at 74.1 per cent and credit provisions held against non-performing loans continue to exceed 100 per cent. Arab Bank Group maintains a strong capital base that is predominantly composed of common equity with a capital adequacy ratio of 16.8 per cent.

Sadik also highlighted Arab Bank’s commitment towards innovation and digital transformation through expanding digital banking services and solutionsinline with the latest trends and developments. She also noted that the bank is offering initiatives for FinTech entrepreneurs to present their ideas to develop them into innovative FinTech solutions and products.

AMMAN — The Housing Bank’s General Assembly approved a distribution of cash dividends to the shareholders at a rate of 25 per cent of the share nominal value for the year 2022 during a meeting held on Thursday.

The bank’s general assembly meeting also approved the board of director’s annual report, the financial statements for the year 2022 and the bank’s business plan for the year 2023, according to a Housing Bank statement. 

Also at the meeting, Deloitte was elected as an external auditor to audit the bank’s accounts for the year 2023.

In line with the provisions of Defence Order No. 5 of 2020 and the procedures issued by the minister of industry and trade and supply on April 9, 2020, Housing Bank held its 50th general assembly for shareholders on Thursday.

Housing Bank Chairman of the Board of Directors Abdelelah Al Khatib, chaired the meeting, which was attended by shareholders holding 94.791 per cent shares of the bank’s capital. 

The General Controller of the Companies Control Department, as well as representatives from the Central Bank of Jordan and the bank’s auditing firm Deloitte attended the meeting.

Khatib stated that the bank’s performance during 2022 was positive. The profits achieved enabled the bank to maintain a solid financial position, handle local and external challenges, and shield itself from the international repercussions that still affect the economy. 

During the year, the group focused on strengthening its relationships with banks and correspondent financial institutions spread across 70 countries worldwide. 

In addition, it worked on energising the marketing operation, managing investment services and products supported by prudent investment policy, improving the operational efficiency, and continuing to automate its products and services to keep pace with the technological banking developments, the statement said. 

Khatib mentioned that, as a result of the bank’s flexible, strategic approach based on sustainability and continuous development, the group has attained remarkable achievements in the main items of the financial position and income statement for 2022. 

Net profits grew by 20.2 per cent to reach JD132.4 million for the year 2022 compared with JD110.1 million achieved during 2021. 

The net credit facilities increased by 8.2 per cent to JD4.3 billion and a 2 per cent increase in customer deposits reaching JD5.3 billion, as well as maximising the return on shareholder’s equity, which rose to 10.7 per cent by the end of 2022 compared with 9.3 per cent for 2021. 

The total income from main banking operations increased by 6.5 per cent to JD378 million, compared with JD355 million achieved during 2021, while the operating profits recorded a strong increase of 8.3 per cent to reach JD212.9 million. 

The bank maintained a strong capital base, where the total shareholder’s equity amounted to JD1.3 billion, while the capital adequacy ratio reached 18.7 per cent, well above the minimum requirements of the Central Bank of Jordan and the Basel Committee. 

As for the bank’s plan for 2023, Khatib stated that an estimated budget and business plan has been put in place, based on a set of assumptions and expectations aimed at enhancing the bank’s advanced position in the banking sector, achieving sustainable growth in profits, and increasing its market share. The strategic plan focused on finance, market, customers, operations, and human resources.

DOHA — Months after hundreds of thousands of football fans packed into its hotels and stadiums, Qatar is seeking to remedy a bout of the post-World Cup blues by hosting more international events.

Along with the departed football crowds, thousands of foreign workers left the Gulf state after Lionel Messi lifted the coveted trophy on December 18. Many of those who stayed on are counting the cost.

Luxury hotels built for the tournament have laid off hundreds of staff as rooms costing thousands of dollars a night during the tournament can no longer be filled.

In a country normally hungry for labour, a shopping mall on the edge of Doha recently advertised 100 jobs and saw more than 1,000 people jostling outside for interviews.

Qatar estimates that the World Cup, which residents once dreaded, brought 1.4 million people to the state.

Akhtar Patel, who runs a jewellery store in Doha's Souq Waqif market, said business in comparison is "quiet".

"We really miss those fans now," he said.

The Eid Al Fitr Muslim holiday brought back some shoppers, but the decline has been such that Sandeev Kumar, who runs a print workshop, sent two of his four staff back to India because he could no longer afford to pay them.

"We miss the vibe, but we miss the business even more," he said.

On Doha's seafront promenade, host to a World Cup fanzone, some jobless workers have been reduced to asking for cash handouts, leading the interior ministry to issue a public warning against "uncivilised" begging.

But Qatar's economy remains healthy. After recording a trade surplus of nearly $100 billion in 2022, growth in 2023 — bolstered by its natural gas riches — is predicted by the World Bank to hit 3.4 per cent, among the highest in the Middle East.

And a wave of newcomers has added nearly 100,000 to the population since the World Cup final, taking it to over three million, according to official figures.

Akbar Al Baker, head of Qatar's tourism agency and Qatar Airways, said hotel occupancy in the months after a World Cup is "always low".

The tiny country has made investments in tourism and hosting more major events a focus, Baker added, predicting Qatar will welcome more than five million visitors this year — more than twice the number in pre-pandemic 2019.

Mechanical diggers are laying the ground for a six-month horticultural expo from October, which Qatar hopes will draw one million foreign visitors. 

Concrete is also being poured at a new race track to host the second Qatar Formula One grand prix on October 8.

On Friday, Qatar was revealed as the host of the 24-nation basketball World Cup in 2027, despite having no tradition in the sport.

Culture Minister Sheikh Abdulrahman Bin Hamad Bin Jassim Bin Hamad Al Thani said that when Qatar first launched its Years of Culture series with other countries a decade ago it was a struggle to find candidates.

"Countries are now queuing to be part of the Years of Culture," he told an event for this year's partner, Indonesia.

New Prime Minister Sheikh Mohammed Bin Abdulrahman Bin Jassim Al Thani took office in March and is expected to soon announce new economic initiatives, in part a response to growing competition from neighbouring Saudi Arabia, which has embarked on many reforms.

Business executives say they expect measures to attract the skilled expatriates and investment needed to wean Qatar's economy off its reliance on gas and oil.

Bassam Hajhamad, head of the PricewaterhouseCoopers consultancy's Qatar branch, said he is "definitely sure" the government will make changes.

He said businesses are showing a "push for transformation" into digital and other new areas.

Foreign workers currently have to leave once their contract finishes and few have the right to buy property.

Companies want "more resources, more talent", Hajhamd said, adding reforms to "labour and visa" regulations will make Qatar more attractive.

"Qatar has a lot of unique propositions compared to other countries. But we need to develop a more structured approach to attract talent."