Latest news with #Islamicfinance
Khaleej Times
4 days ago
- Business
- Khaleej Times
CBUAE: A Future-ready Central Bank Set to Drive Digital Transformation
The Central Bank of the UAE's golden jubilee marks a significant milestone in its journey towards becoming a future-ready institution. Over the past five decades, the bank has evolved alongside the dynamic financial landscape by laying a solid foundation of banking sector, championing innovations in digital transformation and Islamic finance to meet the modern economic needs of its citizens. Embracing digital transformation, the central bank has positioned itself as a future-ready institution, driving the UAE's vision to become a global financial hub. It not only takes appropriate steps to ensure competitiveness and transparency, but also promote Islamic finance in line with the UAE's sustainable economic agenda. Khaled Mohamed Balama, Governor, Central Bank of the UAE (CBUAE), in annual report of 2024 said the central bank continued its journey of excellence and leadership last year and it was reflected in the achievement of exceptional milestones such as the issuance of legislations and regulations to enhance regulatory and supervisory framework; guidance to ensure compliance, improve the governance of licensed financial institutions and efficiently manage risks. 'We are proud to work on the launch of the 'Open Finance Platform', which will be the first platform of its kind globally and distinguished by unique features that take into account the interests of consumers and ensure enhanced customer experiences,' the Governor said. 'We also continue to develop our 'Supervisory Technology Platform', which aims to enhance the efficiency and effectiveness of supervisory operations by automating certain activities and providing access to more insightful regulatory data,' he added. In addition, in line with the vision and directives of the wise leadership on the future of government services and its transformation into a global model, the CBUAE worked to achieve the objectives of the nation-wide ' Zero Government Bureaucracy' programme through improving the quality of services in the financial sector. Under the Financial Infrastructure Transformation (FIT) programme, with an 85 per cent completion rate by 2024, the CBUAE introduced groundbreaking initiatives like the Digital Dirham and Central Bank Digital Currency (CBDC), showcased during the anniversary via a cross-border payment on the mBridge platform. The 'Aani' instant payment platform and 'Open Finance' further enhance seamless, secure transactions, fostering financial inclusion in the country. As part of its digital transformation strategy, the central bank has successfully integrated advanced technologies such as blockchain, artificial intelligence, cloud technologies and digital currencies, enhancing operational efficiency, transparency, and accessibility. This proactive approach ensures that financial services are readily available to all segments of society, promoting financial inclusion and literacy. Pioneer in Islamic Finance The central bank has also been a pioneer in Islamic finance, aligning its banking practices with ethical and Shariah-compliant principles. This commitment has not only diversified the financial sector but also attracted investments from local and international markets, fostering growth and stability. The UAE Islamic banks' assets have crossed the Dh1 trillion mark in 2024, which shows success of the CBUAE policy initiatives as well as confidence of global investors on its Shariah-compliance banking. The share of Islamic banks in the total banking assets was 24 per cent as of end-2024, according to the global rating agency Moody's Ratings. 'Currently, the banks in the UAE operate in a stable environment supported by diversification efforts and structural reforms which will continue to promote growth in the non-oil economy,' said Moody's analysts. On May 6, the UAE announced plans to significantly increase the assets of Islamic banks in the federation and value of locally listed sukuk by 2031. Specifically, the government aims to increase the assets of Islamic banks to Dh256 trillion ($697 billion) from Dh986 billion ($268 billion), the total amount of listed local Islamic sukuk to more than Dh660 billion ($180 billion) and the total amount of international sukuk to Dh395 billion ($108 billion). In 2024, $12.7 billion of sukuk was issued in the UAE, of which the UAE banks issued $4 billion, according to Moody's. 'The projected increase in Islamic banking assets will cement the UAE's position as the third-largest contributor to the Islamic finance market,' it said. Analysts and financial sector experts attribute the success of the UAE's conventional and Islamic banks to central bank and said it is only possible due to solid foundation laid down by the CBUAE. Referring to latest data by Kamco Invest, they said the UAE-listed banks have retained their supremacy in the Gulf region as they once again topped in GCC with the highest return on equity at the end of January-March 2025 quarter at 16.6 per cent. 'The UAE banks once again ranked first in the GCC in terms of Net Interest Margins (NIMs) that reached 3.34 per cent in first quarter of 2025 as compared to 3.39 per cent during the fourth quarter of 2024. The UAE-listed banks showed the biggest absolute growth in net profits with an increase of $639.6 million or 11.8 per cent during the quarter,' Kamco Invest, a financial consultancy, said in its first-quarter report. Looking ahead, the central bank aims to continue its leadership role in shaping a robust financial ecosystem, leveraging digital innovation and Islamic finance to navigate the challenges of the global economy. As the bank celebrates its golden anniversary, the institution stands poised to embrace new opportunities, ensuring sustainable economic development for future generations. In January, the Central Bank of the United Arab Emirates (CBUAE) has announced the issuance of silver coins to mark the bank's golden jubilee. The CBUAE's 50th anniversary silver coin embodies its achievements in developing the banking and financial sector over the past decades. The CBUAE has issued 3,000 of these commemorative coins, each weighing 60 grammes. The obverse features the image of The President His Highness Sheikh Mohamed bin Zayed Al Nahyan surrounded by his name in Arabic and the phrase 'President of the United Arab Emirates'. The coin's reverse features an illustration of the CBUAE building, along with the phrase '50 Years of the Central Bank of the UAE' on the upper and lower edges in Arabic and English, the years 1973-2023, and the nominal value of Dh50.
Malay Mail
17-05-2025
- Business
- Malay Mail
Anwar tells Muslim nations to strengthen economic foundations, empower youth and embrace innovation
KAZAN (Tatarstan), May 17 — The Prime Minister Datuk Seri Anwar Ibrahim called on the Islamic world to work together and strengthen its fundamentals, which begin with the economy, especially the halal industry that is worth US$3 trillion. From the Gulf countries, to the Middle East, Africa, and Asia, we should then formalise and strengthen this cohesion, he said. 'Then, Islamic finance, not a matter of adopting just what you call as 'riba'-free, but to enter into new innovations so that it offers an alternative and economically viable for the Muslim world and also the participation of non-Muslims in our societies and non-Muslim countries,' said Anwar during the Plenary Session of the 16th International Economic Forum 'Russia- Islamic World: KazanForum 2025'. Speaking in front of 2,500 participants from more than 100 countries, Anwar also touched on energy transition and digital transformation, and the need for the Muslim countries to embrace them. 'Because after all, how do we honour, love, and follow the deeds of Muhammad, peace be upon him? Because of values and character. So the issue before us, for the young and for us, is to make sure that there is a difference. Family values are important,' he said. He once again emphasised how to address issues regarding the youth today, echoing his keynote address at the earlier session, urging scholars, intellectuals, and political leaders to take action. 'We have deliberated these issues a number of times, and I have suggested in the strategic meeting this morning that for the youth, we should follow up. 'Let our young boys and girls reflect upon what we have discussed, offer more suggestions, (and) express their support or disagreement, so that the voice of the youth is not only heard, but taken into very serious consideration. 'We must ensure that the young feel and know that in our articulation of issues and decisions in terms of our priorities, they will have a major say in affecting programmes that affect the young,' he added. — Bernama
Finextra
16-05-2025
- Business
- Finextra
Algbra partners with Gatehouse Bank
Algbra Group and its Fintech-as-a-Service division, Algbra Labs, have today announced a new partnership with Gatehouse Bank to deliver the next stage of the Bank's digital transformation strategy. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. Gatehouse Bank is a Shariah-compliant, UK Bank offering ethical savings products for UK customers and residential property finance in England and Wales for UK Residents, UK Expats and International homebuyers and landlords. Algbra Labs is a UK-headquartered financial technology company that offers its full-stack proprietary technology as a turnkey digital banking solution, having previously built Algbra's UK B2C proposition and more recently Shoal, a UK sustainable finance platform incubated out of Standard Chartered Ventures. The partnership between Gatehouse Bank and Algbra will involve creating a new digital account for overseas residents looking to invest in UK property, aiming to deliver an improved customer experience and facilitating greater investment in the UK's growing Islamic finance sector. According to Gatehouse Bank's latest research*, the UK is a leading Western hub for Islamic finance, with the sector projected to grow from an estimated US$7.5 billion in 2024 to US$9 billion by 2030. However, previous research conducted by the Bank in 2024 also revealed the prevailing untapped opportunities in the market, as over half of UK consumers of the Muslim faith have never taken out a Home Purchase Plan.** Algbra has a proven track record of building regulated digital banking platforms in the UK, including Algbra's own proposition and, more recently, the successful launch of Shoal, which partners with the Standard Chartered sustainable finance division. 'Algbra was founded with the mission of building exceptional technology, specifically designed to serve underrepresented communities. Partnering with Gatehouse Bank, an established and growing Islamic Finance provider, is a significant milestone in advancing that mission and we are excited to support their work and bring innovative, ethical financial solutions to more people', said Zeiad Idris, CEO of Algbra. Charles Haresnape, CEO of Gatehouse Bank, commented: 'While there are many vendors in the market, Algbra Labs stands out due to their strong track record of building Shariah-compliant technology. 'Their expertise and innovation align perfectly with our vision for growth and we look forward to working together to deliver our common goal: to help more people seeking Shariah-compliant finance achieve their aspirations.'
