Sharjah: The key roles that both digitisation and diversification will play in shaping the future of the UAE’s banking industry were highlighted by Ahmed Saad, Deputy CEO, Sharjah Islamic Bank (SIB), and Saeed Al Amiri, the lender’s Executive Vice-President and head of investment group, in interviews they gave recently to Oxford Business Group’s online broadcasting channel, Global Platform.
In the wide-ranging interviews, which are now available to view in full at https://bit.ly/2wHqTjm , both SIB representatives also chart the growth of the Islamic banking segment, which has seen its market share within the UAE rise to almost 25 per cent.
Saad told Global Platform that without doubt, digital banking represented the future, describing investment in technology as “a must” for banks. He added that while digitisation was being driven largely by client demand, the benefits would be broad-based, ranging from a better customer experience to an improved cost-to-income ratio.
“So this will be focus for banks in the coming short and medium term, which will make for a lot of changes in the banking sector,” he said.
Saad informed viewers that banks had also sharpened their focus on diversifying its customer base in different economic sectors, with a particular emphasis on small and medium-sized enterprise (SMEs) and startups.
“The SME and the startup is the backbone of any economy, and it’s a good way of diversifying the risk in the financial sector. There are a lot of benefits of supporting and financing SMEs and startups,” he said.
Amiri told Global Platform that in addition, the banking sector was set to benefit from the UAE’s project pipeline of construction and infrastructure-related initiatives, which forms a key component of the country’s drive to diversify its economy away from oil.
“We are lucky in the UAE that the country is having many upcoming events, such as Expo 2020, and these are bringing many infrastructure-financing opportunities,” he said. “We are seeing new companies opening, new buildings and new infrastructure, also government infrastructure, happening.”
Amiri also reflected on the broader outlook for Islamic banking, which is outpacing the conventional component of the industry when it comes to growth and forecast to increase its market share.
“People trust Islamic banking because it’s always asset-backed banking, and there is more security and it has a lower risk than conventional banking,” he told Global Platform. “… they are happy to go with Islamic banking finance because of the vast liquidity which is available now in the market.”
Marc-André de Blois, OBG’s director of PR and Video Content, said the interviews had highlighted the critical part that lenders, and the Islamic banking segment in particular, were expected to play in taking the UAE’s plans for a more diversified economy to the next level.
“The emirates’ efforts to shift the focus away from oil have now reached a new phase, in the form of a raft of mega-projects and infrastructure development that present significant financing opportunities,” he said. “I’m delighted that we’ve been able to provide viewers with a fascinating snapshot of the myriad openings that this huge project pipeline presents, both for banks like the SIB, and investors keen to contribute to the next phase of the UAE’s growth story.”
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About Global Platform
Global Platform is Oxford Business Group’s on-demand digital broadcasting channel. One of several research tools in OBG’s portfolio, the online platform has carved a niche as a leading business intelligence provider in its own right, with data verified independently by Deloitte putting its current circulation at 150,000. Global Platform provides cutting edge video interviews with top-level decision-makers giving key analysis and the latest updates from across all sectors of the global business community.
OBG’s digital content is available both on Global Platform and via major international business news outlets. OBG also has distribution agreements with Bloomberg and Eikon’s terminals, giving it access to the Bloomberg Professional Services’ 325,000 subscribers and to over 150,000 subscribers of Thomson Reuter’s Eikon terminal.
About Oxford Business Group
Oxford Business Group (OBG) is a global research and consultancy company with a presence in over 30 countries, from the Middle East, Asia and Africa to the Americas. A distinctive and respected provider of on-the-ground intelligence on many of the world’s fastest growing markets, OBG has offices in London, Berlin, Dubai and Istanbul, and a network of local bureaus across the countries in which we operate.
Through its range of products, OBG offers comprehensive and accurate analysis of macroeconomic and sectoral developments, including banking, capital markets, tourism, energy, transport, industry and ICT. OBG provides business intelligence to its subscribers through multiple platforms: Economic News and Views, OBG Business Barometer - CEO Survey, Roundtables and conferences, Global Platform - exclusive video interviews, The Report publications and its Consultancy division.
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For more information please contact:
Marc-André de Blois
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E-mail: mdeblois@oxfordbusinessgroup.com
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