Category: Trading

DUBAI: Standard Poor’s (SP) Global Ratings Agency expects robust revenue growth for insurance companies listed in the United Arab Emirates, with insurance premiums forecast to surge by 15 to 20 percent in 2023 compared to 2022.

In an interview with the Emirates News Agency (WAM), Emir Mujkic, Director, Lead Analyst, Insurance Ratings at ýSP, anticipated a 5 to 10 percent growth rate for the car insurance sector.

He stated that profitability of listed insurance companies increased reporting a 19 percent jump in net profits year-on-year for the first nine months of 2023.

Mujkic predicted similar gains for the entire year. He attributed this primarily to improved investment returns fueled by favourable economic conditions and recent structural advancements within the sector.

He expected this trend to continue in 2024, fueled by rising car insurance premiums and higher interest rates further bolstering investment returns.

While acknowledging the evolving nature of the life insurance segment in the UAE, Mujki
c emphasised that SP’s assessment of the property and casualty insurance and health insurance sectors aligns with their global benchmarks for these types of insurance.

Emir Mujkic clarified that the UAE’s property casualty (PC) and health insurance sectors boast strong growth prospects, bolstered by recent health insurance acquisitions. Favourable factors include low risk products, high market entry barriers, and supportive regulatory frameworks. This robust outlook positions the UAE market as one of the GCC’s most profitable for PC and health insurance, primarily driven by the top five listed companies’ outstanding performance.

SP’s observations reveal a trend of increasing business concentration in the UAE insurance sector, referring that the top five players exhibit robust net profit growth among other insurance companies in the market. This suggests a potential shift towards market consolidation.

On the topic of global regulatory alignment, Mujkic commended the UAE’s strong governance and transparency
practices. Both traditional and Islamic insurance companies adhere to International Financial Reporting Standards (IFRS) for financial reporting and generally engage international accounting firms for audits. Notably, all local insurers successfully implemented the new IFRS 17 accounting standards in 2023.

Mujkic observed significant consolidation within the takaful (Islamic insurance) segment, citing mergers that have nearly halved the number of listed takaful companies over the past two years.

He attributed this trend to a combination of merger acquisition activities and the need for smaller companies to mitigate costs through expansion.

Intense competition and cost pressures are likely to fuel further integration among small and medium-sized insurance companies, according to Mujkic.

Source: Emirates News Agency

HONG KONG: Sheikh Saoud Ali Almualla, UAE Consul-General in Hong Kong, has underscored the exceptional and flourishing ties between the UAE and Hong Kong, spanning economic, trade, and cultural realms.

In a statement to the Emirates News Agency (WAM), Almualla emphasised the substantial development in the UAE and Hong Kong relations in recent years. Trade volume reached a robust $7.98 billion in the first half of 2023, reflecting an 8.3% increase compared to the same period in 2022.

Emphasising the UAE’s pivotal role as a primary trading partner for Hong Kong, consistently maintaining the top position in the Middle East and North Africa region for several years, Almualla pointed to various agreements that solidify this partnership.

These include agreements on avoiding double taxation, the Investment Promotion and Protection Agreement, and accords on aviation services, financial markets, and financial technology.

The Consul-General lauded the opening of the Hong Kong Economic and Trade Office in Dubai in O
ctober 2021, fostering new avenues for collaboration.

Source: Emirates News Agency

ABU DHABI: Emirates Development Bank (EDB), yesterday hosted Abu Dhabi edition of EDB Connect at the ADGM Atrium in a strategic partnership with ‘Make it in the Emirates’ initiative, convening key industry leaders, government officials, and business innovators to discuss, debate, and shape the future of Abu Dhabi’s economy.

The event – now in its second edition – serves as a vital platform for discussing strategic investments, exploring innovative solutions, and fostering the growth of SMEs.

Osama Amir Fadhel, Assistant Undersecretary of the Industry Accelerators Sector at the Ministry of Industry and Advanced Technology, said, ‘EDB, along with other national financial institutions, contributed to providing AED 5.3 billion of financing to industrial companies last year. SMEs secured 90 percent of the financing provided by the ministry in collaboration with its strategic partners.’

‘The ministry’s efforts, in collaboration with its strategic partners and EDB, have contributed to boosting investments under t
he Make it in the Emirates initiative by providing industrial companies with financing, as well as incentives and enablers, empowering them to establish and grow their businesses. This helped drive the increase in the industrial sector’s contribution to GDP in 2023,’ he added.

Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, added, “Today’s edition of EDB Connect in Abu Dhabi has showcased the power of collaboration across government, the private sector, and financial institutions. The insightful dialogues and innovative ideas presented here are vital for steering Abu Dhabi’s economy towards new heights of diversification and technological prowess.

“The discussions on strategic investments, especially in renewable energy and SME empowerment, reflect a deep understanding of the complex economic dynamics we navigate today. Discussions explored the intricate balance of economic growth, sustainability, and technological integration, offering critical insights into the future trajectory of Abu Dhabi’s eco
nomy.

“This forum has not only served as a platform for exchange but also as a catalyst for actionable strategies that align with our national economic goals. As we move forward, the partnerships and initiatives fostered during this event will be instrumental in shaping a resilient and dynamic economic landscape for the emirate.”

The day’s agenda explored how strategic investments and innovative financing are pivotal in Abu Dhabi’s economic transformation. As the UAE capital embarks on an ambitious journey of diversification away from oil reliance, forums like EDB Connect underline the strategic efforts to foster an innovation-driven economy, leveraging the emirate’s competitive advantages across sectors.

EDB’s critical role in this transformation is reflected in its initiatives to provide competitive, flexible and inclusive financing, foster large companies, enable SMEs growth, and support its 5 priority sectors. As the financial backbone of these diversification efforts, EDB’s commitment to enabling inno
vative projects and sustainable growth strategies was a central theme throughout the discussions.

The event began with a welcome address by Ahmed Al Naqbi, CEO of Emirates Development Bank, who highlighted the collaboration and partnership spirit of EDB Connect to discuss and realise the vision of the UAE’s leadership, the potential of the nation’s economy and the aspirations of its people.

He said, ‘At Emirates Development Bank, we believe we cannot play a central role in business development and economic growth without close, long-term partnerships and collaborative ventures. Abu Dhabi’s economic landscape is a remarkable narrative of resilience, diversification, and strategic foresight. We are partners in that progress, and architects of that ambition.’

He continued, ‘At EDB, we focus on sectors critical to our nation’s future, and through this work, we have been instrumental in shaping the economic fabric of the UAE. Through our commitment to our core value of ‘excelling through partnerships’, we have
achieved remarkable milestones. Through close collaboration with our partners, we successfully approved billions of dirhams in financing, supporting thousands of businesses and making substantial contributions to the UAE’s non-oil GDP growth. We have also initiated specialised financing programs targeting those priority sectors, for example in our dedicated financing schemes for the renewables and food security sectors.’

The forum featured several panels and discussions, each addressing a critical aspect of Abu Dhabi’s economic landscape. The first panel, titled ‘Unlocking Abu Dhabi’s Strategic Investment Potential,’ hosted senior representatives from the government sector including Salama Al Awadhi, Director of National Value-Added Department at MoIAT; Yaser Al Yousuf, Director of Participation and Conformity, Abu Dhabi Residents Office; and Amier Al Awadhi, Director of Masdar City Free Zone. The speakers exchanged insights on maximising investment opportunities in line with Abu Dhabi’s economic vision. The
panel underscored the importance of fostering an investment-friendly environment and adopting innovative strategies to attract both local and foreign investors.

Following this, the ‘Manufacturing Excellence: A Pillar of Abu Dhabi’s Economic Strategy’ panel, featuring Maadhad Hareb Al Khaili, CEO of Bluetec; Ibtisam Alsaadi, Director of Industrial Policies and Legislation Department, MoIAT; Salem Bafara , Vice President, In-Country Value Industrial Development Division, ADNOC; Haitham Alkhazaleh, Risk Director, Etihad Export Credit Insurance; Mansoor Al Marar, Commercial Director, KEZAD Group; and Gauri Singh, Deputy Director-General, International Renewable Energy Agency (IRENA). The experts on panel highlighted the significant strides made in manufacturing and the sector’s contribution to Abu Dhabi’s diversification and sustainable development.

The third panel, ‘Sustainability and Resilience: Strategic Imperatives in Renewables’ explored how Abu Dhabi is addressing the challenge of renewable energy through
innovative and sustainable solutions. Moderated by Dr. Ahmed Badr, Director, Project Facilitation and Support, IRENA, the panel included Nawal Alhanaee, Director of Future Energy Department, Ministry of Energy and Infrastructure; Shaker Zainal, Chief Business Officer, EDB; Eva Ramos Perez Torreblanca, Division Director, Environmental Policy Analysis and Economics, Integrated Environment Policy and Planning, Environment Agency Abu Dhabi; Sufyan Al Issa, Global Head of Business Development and Client Coverage, IFC, The World Bank; and Martin Nagell, Director of Merger Acquisition, Masdar.

Innovation in healthcare and technology was the focal point of the fourth panel discussion – titled ‘Innovation Frontiers: Driving Competitiveness in Food Security, Healthcare, and Technology’, which brought together speakers from the three sectors in focus and key government representatives. Panellists Fatima Ghanem Alhajri, Director of Investment and Talent Attraction, Ministry of Economy; Massimo Falcioni, Chief Competitiv
eness Officer, Abu Dhabi Investment Office (ADIO); Hassan Halawy, General Manager, Elite Agro Projects; and Dr. Ali Al Suwaidi, founder and CEO of Tarmeem Orthopedic and Spine Specialty Hospital discussed the profound transformation in the healthcare and food security sectors, driven by the integration and wider adoption of advanced technology. The discussion revolved around how technological advancements are revolutionising the healthcare sector and the potential this holds for Abu Dhabi’s economy. In addition, the panel highlighted the importance of accessibility to such advancements and the intrinsic link between health and food security.

Another highlight was the session on ‘Competitive and Inclusive Financing Key to Enabling SMEs growth and economic contributions’ which saw participation from a diverse group of speakers including Sultan Al Wheibi, Investment Division Director, The Abu Dhabi Agriculture and Food Safety Authority; Fatima Al Hammadi, Director of Credit Management, Khalifa Fund; Fatema Al A
li, Initiative Development Specialist, Abu Dhabi Department of Economic Development; Dr. Ankur Dana, CEO, Dana Steel; and Ravi Handuja, CEO and Founder of Vivasvaan Industrial. Moderated by Abdulla Al Hamed, Vice President mSMEs at EDB, this panel discussed the crucial role of SMEs in economic growth and the innovative financing solutions necessary to support their development.

EDB Connect: Abu Dhabi Edition also featured a Partners Award Ceremony, recognising key stakeholders and strategic partners contributing to Abu Dhabi’s economic goals. Additionally, exhibition pods for partners, including KEZAD, ADRO, ECI, Masdar, and Elite Agro, were a notable feature of the event.

The panel sessions and collaborative discussions at the forum underline Emirates Development Bank’s pivotal role in shaping Abu Dhabi’s new economic narrative. Through its support for SMEs, focus on sustainable practices and empowerment of key sectoral growth, EDB is a critical player in Abu Dhabi’s journey towards becoming a global hub f
or innovation and sustainability.

Source: Emirates News Agency

SHARJAH: The Sharjah Airport International Free Zone (SAIF Zone) Authority is taking part in the 53rd Watch Jewellery Middle East Show, held under the patronage of H.H. Dr. Sheikh Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah.

The exhibition, being hosted by Expo Centre Sharjah from 13th January through 4th February, is showcasing opulent displays of gold, precious stones, and jewellery by over 500 exhibitors and elite global brands in the sector.

At its stand, the SAIF Zone Authority highlights viable investment prospects in gold and jewellery manufacturing within the Emirate of Sharjah, along with the concessions available at its Gold, Diamond, and Commodities Park. The park plays host to an ever-rising number of global companies specialising in gold and diamond production and manufacturing, offering an ideal environment for investors and traders in precious stones who are looking to expand their businesses and enter global markets, thanks to the exceptional amenities and top-
notch services it offers. It also provides essential logistical facilities and services, a smooth licensing system, and advanced infrastructure, along with round-the-clock security and surveillance services, easy access to world-class diamond and gold manufacturing hubs, and transport lines that link it to major global markets.

Saud Salim Al Mazrouei, Director of SAIF Zone, said the Zone’s participation in the Watch Jewellery Middle East Show, one of the biggest events of its kind across the Middle East and North Africa, attests to its relentless efforts to draw in a range of global companies to establish their businesses in Sharjah.

SAIF Zone, he said, supports these companies to expand across the region as they benefit from its strategic positioning adjacent to Sharjah International Airport and close to the emirate’s seaports, its state-of-the-art facilities and infrastructure, and the advantages, competitive services, and investment solutions it offers to investors, which enhance their ease of doing busi
ness.

Al Mazrouei said, ‘By participating in the Show, we at SAIF Zone affirm our commitment to creating an exemplar environment for attracting investments to Sharjah. We are especially focused on appealing to companies operating in gold and precious stones, many of which have their regional headquarters at our Gold, Diamond, and Commodities Park.’

Source: Emirates News Agency

DUBAI: Saeed Mohammed Al Tayer, MD CEO of Dubai Electricity and Water Authority (DEWA) announced that the number of requests for electricity connection to projects through ‘Al Namoos’ service increased by 94.4 percent compared to 2022. DEWA received 7,885 requests for electricity connection in 2023. This is a new indicator of the robust performance of all economic sectors in Dubai and DEWA’s ongoing efforts to support the sustainability of Dubai’s growth and development.

‘The increasing demand for our innovative services emphasises that DEWA has all the necessary capabilities to achieve the Dubai Economic Agenda (D33) and support Dubai’s development. We aim to consolidate Dubai’s position as a global city and the best destination in the world to live and work. We provide smart services to accelerate the provision of electricity and water services according to the highest international standards and practices. DEWA provides all the necessary capabilities and smart services that help partners and investors car
ry out their work easily and save their time and effort,’ said Saeed Al Tayer.

Al Namoos (Emirati word for a winner in a race) enables electricity connection for projects up to 150 kilowatts in just two steps and within five days. DEWA accredited consultants and contractors can submit applications digitally through DEWA’s website and smart app.

Rashid Bin Humaidan, Executive Vice President of Distribution Power at DEWA, said that DEWA launched the Al Namoos service in line with its continuous efforts to enhance business performance and as part of a facilitation package for industrial, commercial, and residential projects. He noted that by 31st December 2023, the number of DEWA accredited consultants and contractors reached 2,541.

Source: Emirates News Agency