FinTech has spurred the evolution of the Islamic finance industry over the last year. It helps to address the need for simplification and innovation in the sector. It also provides a great opportunity for the sector to streamline services and attract new segments, with the key being digital-savvy millennials. Dubai and Dubai International Financial Centre (DIFC) are key players in the Islamic finance sector. DIFC and Dubai Financial Market have launched the first Dubai Sustainable Finance Working Group to create a sustainable financial hub in the region in line with the UAE Sustainable Development Goals 2030. They are encouraging the use of green financial instruments and responsible investing.
FinTech has spurred the evolution of the Islamic finance industry over the last year. It helps to address the need for simplification and innovation in the sector. It also provides a great opportunity for the sector to streamline services and attract new segments, with the key being digital-savvy millennials. Dubai and Dubai International Financial Centre (DIFC) are key players in the Islamic finance sector. DIFC and Dubai Financial Market have launched the first Dubai Sustainable Finance Working Group to create a sustainable financial hub in the region in line with the UAE Sustainable Development Goals 2030. They are encouraging the use of green financial instruments and responsible investing.
Dubai International Financial Centre (DIFC) said it invested in four innovative FinTech start-ups on Monday. The companies receiving funding are: Sarwa, a roboadvisory wealth management firm; FlexxPay, a cloud-based B2B employee benefits platform and two financial services platforms for migrant workers, Now Money and Go Rise. DIFC CEO Arif Amiri said the investments strengthened the free zone’s position as one of the world’s top 10 FinTech hubs. DIFC has rolled out a number of changes in recent months to attract top financial firms and strengthen its credentials.
Maybank Islamic’s move into branch banking in the Middle East aims to attract Gulf investors to Southeast Asia. The Malaysian bank opened its first overseas branch at Dubai International Financial Centre (DIFC) in February. Maybank Islamic deputy CEO Nor Shahrizan Sulaiman said the new Dubai branch would serve as a the bank’s gateway not just to the UAE but to the wider GCC. The bank pursues further growth in Singapore and Indonesia, which it sees as home markets outside of Malaysia. The international business expansion is not new, as it has always been one of the focus areas of Maybank Islamic from early on. Maybank Islamic was granted a full Islamic banking licence from the Dubai Financial Services Authority last July, allowing it to open the DIFC branch. It replaces Maybank Islamic’s office in Bahrain, which has closed down.
Dubai International Financial Centre’s FinTech Hive has announced the commencement of the 2019 edition of its accelerator programme. The third edition of the programme received an overwhelming response of over 425 applications from across the world. Finalists include 15 start-ups specialising in the FinTech sector, four specialising in the Islamic FinTech sector, ten in the InsurTech sector, and two in the RegTech sector. The accelerator programme consists of a three-month curriculum in which a group of selected finalists work closely with stakeholders to address the needs of the region. The programme will culminate in an 'Investor Day', offering the participating start-ups an opportunity to showcase their achievements to prospective investors.
Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum issued a new insolvency law for companies operating in the Dubai International Financial Centre (DIFC). The new law has been issued following the collapse of Dubai-based private equity firm Abraaj. The firm had a row with some investors over the use of money in a $1 billion healthcare fund. The new law introduces a "new debtor in possession bankruptcy regime" for debtors that have filed for bankruptcy but still hold assets. Abraaj, its founder Arif Naqvi and a former executive are being investigated by the U.S. Securities and Exchange Commission on U.S. charges that they defrauded investors.
FinTech Hive at DIFC has announced that its upcoming programme will expand its themes to include insurance, Islamic finance, and regulatory technology services. This year’s cycle will welcome First Abu Dhabi Bank, Arab Bank, and Noor Bank as new Financial Institution partners, along with returning partners such as Abu Dhabi Islamic Bank, Citigroup, Emirates Islamic, Emirates NBD, HSBC, Mashreq, Standard Chartered, UAE Exchange and Visa. The participating Financial Institutions will partner with startups in a wide-ranging 12-week mentorship and networking programme. FinTech Hive at DIFC will also feature the Dubai Islamic Economy Development Centre (DIEDC) as a strategic partner again this year. In addition, FinTech Hive at DIFC will collaborate with Accenture’s FinTech Innovation Labs to connect regional innovators to the international FinTech ecosystem.
Although Islamic banking and Sukuk comprise the lion’s share of Islamic finance assets, there are significant untapped opportunities in the securities, equity markets, investment funds, insurance and microfinance markets. For Islamic finance to flourish, time would be more valuably spent creating new financial products that are Shari'ah-based rather than adapting existing conventional products to become Shari'ah-compliant. The innovative magic is in the roots, not the branches. On 14 November 2017, the Dubai International Financial Centre (DIFC) will host the Global Financial Forum (GFF). The invited industry experts are set to provide valuable insights on the progression of the sector and innovation in Islamic finance.
Dubai-based investment bank Arqaam Capital has announced the launch of two specialist fixed income funds located within Dubai International Financial Centre (DIFC). The high income fund will invest in emerging markets with a focus on the MENA region and will include a mixture of fixed and floating rate investments. The Islamic fixed income fund will invest in sukuk issued by sovereigns, quasi-sovereigns and corporates. Arqaam Capital said the funds are denominated in US dollars and pegged currencies and will target annual returns of 6 and 7%. The new funds will be co-managed by Abdul Kadir Hussain, head of fixed income asset management, and Zeina Rizk, director of fixed income asset management.
Dubai International Financial Centre (DIFC) signed a Memorandum of Understanding (MoU) with Dubai Islamic Economy Development Centre (DIEDC). Earlier this year, DIFC launched FinTech Hive, a 12-week accelerator programme which allows tech start-ups to test and develop FinTech related business ideas. As part of the agreement, the programme will include institutions such as Emirates Islamic Bank, Dubai Islamic Bank, and Abu Dhabi Islamic Bank, to mentor participants in the field of Islamic finance technology. Arif Amiri, CEO of DIFC said this MoU was an important step for FinTech, for the Islamic economy and for FinTech Hive. For his part, Abdulla Mohammed Al Awar, CEO of DIEDC, said FinTech Hive at DIFC will go a long way towards developing segments like mobile banking and payment systems, as well as SME financing.
Dubai International Financial Centre (DIFC) is home to the first Equity Crowdfunding platform in the region, Eureeca. It is the first multi-regulated global Equity Crowdfunding platform and has over 12,000 investors from 42 countries. It enables entrepreneurs and high growth businesses to raise much needed expansion capital and create new partnerships for growth. The platform's co-founder Chris Thomas said Eureeca creates a corridor of investment opportunities between Europe, the Middle East and Southeast Asia. It recently raised $400,000 in 12 days on its self-funding campaign with the funds being used to fuel Eureeca’s international growth plans and continued development of their product offering.
Islamic lending companies from Dubai’s DIFC Investments LLC to Saudi Arabia’s Etihad Etisalat take advantage of falling borrowing costs. As a result, Islamic syndicated lending in Europe, the Middle East and Africa rose to a four-year high this year. Shariah-compliant transactions this year are as high as $8.37 billion (Dh30.74 billion). The largest share belongs to Etihad Etisalat and is worth 10 billion-riyal ($2.67 billion). This year’s lending is over $3 billion higher than last year's.
Dubai Financial Services Authority highlighted the advantages of listing conventional bonds and Sukuk on the region's international exchange, at a forum attended by leading investment banks and law firms.
After the transfer of NASDAQ Dubai's Official List of Securities to the DFSA in October 2011, the event that took place at the Dubai International Financial Centre (DIFC) gave away details of the new listing and admission framework, giving issuers the ability to list debt in a streamlined manner under an aggressive timetable, comparable to listing regimes on other international exchanges.
NASDAQ Dubai is the only exchange in the Middle East that has direct access to Euroclear, an International CSD, supplying an easy transaction process with the NASDAQ Dubai CSD for international and regional investors.