Latest news with #JamalSaleh
Khaleej Times
3 hours ago
- Business
- Khaleej Times
Central Bank of the UAE marks 50 years of financial stewardship and innovation
Central Bank of the UAE (CBUAE) is celebrating its 50th anniversary this year, while continuing to play a pivotal role in guiding the nation's financial landscape and propelling it onto the global stage with increasing speed. Since its establishment with the creation of the UAE Currency Board in 1973, Central Bank has emerged as a bedrock of stability and a catalyst for innovation, navigating the UAE through economic shifts and technological revolutions. 'Over the past five decades, CBUAE has not just overseen monetary policy, but has built the bedrock of confidence that has allowed the UAE to emerge as a regional and global financial centre,' says Jamal Saleh, Director-General of UAE Banks Federation (UBF). 'It has done this through decisive reforms and relentless focus on global best practices.' In 2008, when the financial crisis rippled through economies worldwide, UAE Central Bank was among the first in the region to adopt Basel III Standards, strengthening capital and liquidity buffers. As a result, the capital adequacy ratio of the UAE banking system today is higher than required. At the end of December 2023, it stood at 17.9 per cent —well above the 13 per cent minimum required under Basel III guidelines, according to the CBUAE's Monetary, Banking & Financial Markets Developments Report for Q4 2023. These reforms, says Saleh, 'have ensured that UAE's banks are not only safe but also capable of sustaining growth in the face of volatility.' In 2018, UAE Central Bank introduced the Federal AML/CFT Law, followed by the Executive Office for AML/CTF in 2020, aligning UAE's framework with the Financial Action Task Force's stringent standards. This was a significant step in paving the way to combat money laundering and terror financing. Equally striking has been CBUAE's proactive stance in times of crisis. At the height of Covid-19 pandemic, CBUAE launched the Targeted Economic Support Scheme (TESS), injecting more than Dh100 billion in liquidity to support businesses and protect jobs. 'The TESS programme was not merely a reaction — it was a strategic intervention that underpinned confidence in the banking sector,' says Saleh. Yet, CBUAE's ambition extends well beyond stability. Its National Payment Systems Strategy (NPSS), Digital Dirham (CBDC) pilot project, and the Financial Infrastructure Transformation (FIT) Programme underscore a clear vision for a future-ready financial system. 'Our member banks are investing heavily in modernising their systems to align with these initiatives,' says Saleh. 'From AI-powered risk management to open banking APIs, the sector is embracing the future with vigour.' UBF, which represents 63 members across the UAE, has been as a crucial partner in translating this vision into practice. Saleh describes the relationship between Central Bank and UBF as 'a model for constructive collaboration,' built on technical committees and joint working groups that ensure policy frameworks which are both practical and forward-looking. This close cooperation has yielded tangible outcomes. UBF has spearheaded efforts to promote Emiratisation in the banking sector, supporting CBUAE's workforce emiratisation targets, via dedicated cooperation with Emirates Institute of Finance (EIF), with training programmes and certifications tailored for Emirati professionals. On the consumer front, UBF's Code of Conduct — endorsed by UAE Central Bank — has helped standardise ethical practices and transparency across the sector. Sector's sustainability drive has also gained momentum. At COP28, which was hosted in Dubai, UBF pledged to mobilise over Dh1 trillion in sustainable/green finance by 2030. 'This is not an aspirational goal—it is a clear, actionable roadmap,' says Saleh, noting that some UBF member banks have already met more than half of their 2030 targets. RAKBANK's issuance of the GCC's first social bond last year and FAB's continued leadership in green bond issuance highlight UAE sector's growing appetite for ESG finance. Even amid shifting geopolitical dynamics and heightened regulatory scrutiny, Saleh remains greatly optimistic about UAE's positioning. 'Our capital adequacy ratios, liquidity coverage, and risk frameworks are among the strongest globally,' he says, pointing to the sector's consistent performance despite global derisking trends. According to Fitch Ratings, UAE banks achieved a pre-tax return on average equity (ROAE) of 22 per cent in 2024, up from 20 per cent in 2023, with several banks reporting ROAEs above 25 per cent. Looking ahead, Saleh believes that the next decade will see the UAE cementing its role as a global financial hub, propelled by continued investment in digital transformation, sustainability, and inclusive growth. 'The partnership between CBUAE and UBF exemplifies how public-private collaboration can foster responsible innovation and ensure UAE's place at the forefront of global finance,' he says. As our Central Bank charts its next chapter, the UAE's banking sector stands poised to bridge tradition with innovation, building a future-ready ecosystem that is as resilient as it is ambitious.
Zawya
3 days ago
- Business
- Zawya
SWIFT User Group's AGM supports digital transformation, enhancing UAE's position as financial & trade hub
The SWIFT User Group in the UAE held its Annual General Meeting (AGM), chaired by Jamal Saleh, Chairman of the SWIFT Users Group Steering Committee in the UAE and Director-General of UAE Banks Federation, the sole representative and unified voice of UAE banks. During the meeting, members approved the minutes of the 2024 Annual General Meeting and the audited financial statements for 2024, the budget for the current year (2025), the plans for the Group's activities, and its business plan to improve payment processes and benefit from the digital transformation in payments. The SWIFT User Group's AGM stressed the importance of the Central Bank of the UAE's (CBUAE) initiatives in payments to meet customer needs, enhance confidence in the banking and financial industry, achieve the goals of the National Payment Systems Strategy (NPSS), accelerate digital transformation, and strengthen the UAE's position as a banking, financial and trade leading hub. The AGM commended the initiatives undertaken by the Steering Committee of the SWIFT User Group in the UAE to keep pace with the latest trends in the financial and banking sector, improve payment processes, and enhance the effectiveness and security of bank transfers. The meeting called for capitalising on steps taken by CBUAE, especially on technological development, innovation, resilience, and security to promote innovative and secure payment solutions. It praised initiatives of the Steering Committee of the SWIFT User Group in adopting and employing Open Finance to develop payments, in accordance with the CBUAE's vision, which focuses on benefiting from developments in the banking and financial industry while ensuring the provision of appropriate legislative and regulatory frameworks to stimulate innovation. Participants at SWIFT User Group's AGM urged for enhancing partnerships between banks and fintech companies to accelerate the digital transformation journey, stressing the importance of Open Finance in enhancing the banking sector's efficiency and competitiveness. They expressed their appreciation to the members of the Steering Committee, who have extensive experience and knowledge, for their efforts in developing payments and supporting the banking and financial sector to play its role in socio-economic development and support international trade. Jamal Saleh said, "Payments is an essential element for socio-economic development and contributes to enhancing local and international trade. We continue our efforts and initiatives to provide innovative payment solutions, under the direct supervision of the Central Bank of the UAE, which establishes the necessary frameworks to develop payments and accelerate digital transformation in an environment that meets customer needs while ensuring compliance with local and international legislation and regulations'. He pointed out the importance of the role of SWIFT User Group in adopting and employing the latest payment solutions, stressing the keenness of UBF and the SWIFT User Group Steering Committee to contribute to achieving the strategic goals of the UAE, which seeks to double non-oil foreign trade to AED 4 trillion, and increase non-oil exports to AED 800 billion by 2031. "The Comprehensive Economic Partnership Agreements (CEPA), signed by the UAE with more than 27 trading partners, encourage us to redouble our efforts to improve the performance of payment operations and enhance the effectiveness and security of the bank transfer system to provide the best solutions to increase trade exchange in a reliable and smooth environment," he said. Jamal Saleh added, 'The UAE banking and financial sector has remarkable achievements in employing advanced technologies in various fields of banking, and payments in particular, to accelerate digital transformation. We remain committed to continuing our initiatives, in cooperation with our local, regional, and international partners, to develop capacities and capabilities of payment systems, developing talent, and continuously enhancing payments and bank transfers". The Steering Committee and National SWIFT User Group in the UAE is the first of its kind in the MENA region. Since its establishment in 2021, it has been playing a pivotal role in improving the performance of payment operations and enhancing the effectiveness and security of the bank transfer system. It represents an appropriate platform for exchanging views and insights that support decision-making, in addition to benefiting from the knowledge and experience of members of the SWIFT global network in developing banking work and enhancing the capabilities of employees in the banking and financial sector in the UAE. Swift allows communication and exchange of financial information in a secure and reliable environment for more than 11,000 financial institutions in 200 countries around the world, which contributes to the promotion of financial and trade exchanges.
Zawya
3 days ago
- Business
- Zawya
SWIFT User Group's AGM supports digital transformation, enhancing UAE's position as financial and trade hub
Abu Dhabi- Dubai, United Arab Emirates: The SWIFT User Group in the UAE held its Annual General Meeting (AGM), chaired by Mr. Jamal Saleh, Chairman of the SWIFT Users Committee in the UAE and Director General of the UAE Banks Federation, the sole representative and unified voice of UAE banks. During the meeting, members approved the minutes of the 2024 Annual General Meeting and the audited financial statements for 2024, the budget for the current year (2025), the plans for the Group's activities, and its business plan to improve payment processes and benefit from the digital transformation in payments. The SWIFT User Group's AGM stressed the importance of the Central Bank of the UAE's (CBUAE) initiatives in payments to meet customer needs, enhance confidence in the banking and financial industry, achieve the goals of the National Payment Systems Strategy (NPSS), accelerate digital transformation, and strengthen the UAE's position as a banking, financial and trade leading hub. The AGM commended the initiatives undertaken by the Steering Committee of the SWIFT User Group in the UAE to keep pace with the latest trends in the financial and banking sector, improve payment processes, and enhance the effectiveness and security of bank transfers. The meeting called for capitalising on steps taken by CBUAE, especially on technological development, innovation, resilience, and security to promote innovative and secure payment solutions. It praised initiatives of the Steering Committee of the SWIFT User Group in adopting and employing Open Finance to develop payments, in accordance with the CBUAE's vision, which focuses on benefiting from developments in the banking and financial industry while ensuring the provision of appropriate legislative and regulatory frameworks to stimulate innovation. Participants at SWIFT User Group's AGM urged for enhancing partnerships between banks and fintech companies to accelerate the digital transformation journey, stressing the importance of Open Finance in enhancing the banking sector's efficiency and competitiveness. They expressed their appreciation to the members of the Steering Committee, who have extensive experience and knowledge, for their efforts in developing payments and supporting the banking and financial sector to play its role in socio-economic development and support international trade. Mr. Jamal Saleh, Director General of UBF and Chairman of the SWIFT User Group Steering Committee in the UAE, said: "Payments is an essential element for socio-economic development and contributes to enhancing local and international trade. We continue our efforts and initiatives to provide innovative payment solutions, under the direct supervision of the Central Bank of the UAE, which establishes the necessary frameworks to develop payments and accelerate digital transformation in an environment that meets customer needs while ensuring compliance with local and international legislation and regulations'. He pointed out the importance of the role of SWIFT User Group in adopting and employing the latest payment solutions, stressing the keenness of UBF and the SWIFT User Group Steering Committee to contribute to achieving the strategic goals of the UAE, which seeks to double non-oil foreign trade to AED 4 trillion, and increase non-oil exports to AED 800 billion by 2031. "The Comprehensive Economic Partnership Agreements (CEPA), signed by the UAE with more than 27 trading partners, encourage us to redouble our efforts to improve the performance of payment operations and enhance the effectiveness and security of the bank transfer system to provide the best solutions to increase trade exchange in a reliable and smooth environment," he said. Director General of UBF and Chairman of the SWIFT User Group Steering Committee in the UAE added: 'The UAE banking and financial sector has remarkable achievements in employing advanced technologies in various fields of banking, and payments in particular, to accelerate digital transformation. We remain committed to continuing our initiatives, in cooperation with our local, regional, and international partners, to develop capacities and capabilities of payment systems, developing talent, and continuously enhancing payments and bank transfers". The Steering Committee and National SWIFT User Group in the UAE is the first of its kind in the MENA region. Since its establishment in 2021, it has been playing a pivotal role in improving the performance of payment operations and enhancing the effectiveness and security of the bank transfer system. It represents an appropriate platform for exchanging views and insights that support decision-making, in addition to benefiting from the knowledge and experience of members of the SWIFT global network in developing banking work and enhancing the capabilities of employees in the banking and financial sector in the UAE. Swift allows communication and exchange of financial information in a secure and reliable environment for more than 11,000 financial institutions in 200 countries around the world, which contributes to the promotion of financial and trade exchanges. About UAE Banks Federation (UBF): Established in 1982, UAE Banks Federation (UBF), the sole representative and unified voice of UAE banks, comprising 62 members of banks and financial institutions operating in the UAE. UBF advocates the interests of all its members and enhances cooperation and coordination between them in order to elevate the UAE's banking ecosystem for the benefit of members, customers, and the overall UAE economy. UBF's mission and objectives are focused on representing its members and defending their rights and interest. UBF provides a platform for cooperation and the exchange of ideas and expertise among its members and plays a significant role in raising public awareness about the contributions of the UAE banking sector to the economic and social development of the country. UBF has a 22-member Advisory Council consisting of CEOs and General Managers from member banks and financial institutions, which oversees the implementation of UBF's policies and activities. The CEOs Council also makes directional decisions through UBF's General Secretariat for UBF's 28 technical and 6 advisory committees, which in turn are tasked to discuss all issues relevant to the UAE banking and financial services ecosystem. UAE Banks Federation also includes a CEOs Consultative Council, which consists of chief executives of other member banks.
Khaleej Times
20-05-2025
- Business
- Khaleej Times
Rise of fintech: Reshaping Islamic Finance for global inclusivity
Fintech is poised to significantly reshape Islamic finance by enhancing accessibility, efficiency, and innovation while aligning with Shariah principles and will bridge gaps for the unbanked and underbanked, especially in developing countries with large Muslim populations, experts say. Leading executives, bankers and analysts said platforms like mobile banking, P2P lending, and crowdfunding will provide Shariah-compliant solutions such as microfinance and digital zakat or waqf systems, addressing the $2.5 trillion sustainable development goals funding gap. In addition, blockchain, artificial intelligence (AI) and internet of things will streamline processes and ensure Shariah compliance, enhance transparency and trust, making risk-sharing models like Mudarabah more accessible. 'Fintech will drive Islamic finance towards greater inclusivity, efficiency, and global reach by 2030, leveraging technologies to meet ethical and Shariah-compliant demands. However, success depends on addressing regulatory, literacy, and security challenges while fostering partnerships between traditional institutions and fintech innovators,' according to experts. Jamal Saleh, Director-General, UAE Banks Federation, said the UAE banks are playing a leading role in meeting the growing requirements for Shariah-compliant financial and banking services as well as sukuk issuances, which are witnessing rapid growth. Since the establishment of the world's first Islamic bank in the UAE in 1970s, he said the country has been strengthening its position as a regional and global centre for Islamic banking. 'Accounting for more than 20% of gross banks' credit in the country, and investments of more than Dh150 billion in 2024, UAE's Islamic banks are at the forefront of digitalisation. Smart platforms and solutions integrate artificial intelligence (AI) and blockchain to enhance customer experience while ensuring Shariah compliance,' Saleh told BTR. He said fintech has spurred mobile banking, instant financing, and transparent blockchain-based contracts for Shariah-compliant financial and banking services as well as automating Shariah compliance. 'The UAE's Islamic banks use AI for compliance checks, validating Murabaha agreements, blockchain smart contracts to automate Mudaraba agreements, ensuring transparency and reducing disputes, and machine learning to design ethical investment portfolios aligned with users' risk tolerance and Shariah,' he said. Fitch Ratings views the UAE as a key hub for Islamic finance, with Islamic financing accounting for 29% of total sector financing during the January-June 2024 period as it noticed that financing growth was slightly higher in first half (5.7%) compared to conventional banks (5.3%) despite conventional banks' strong government links. The rating agency expects Islamic banks to continue to grow faster than their conventional peers over the medium term. 'Favourable operating conditions forv 2024 and 2025 should support UAE Islamic banks strong credit fundamentals,' according to Fitch Ratings. Capitalising on Fintech Saleh was of the view that fintech is already helping Islamic banks to develop and promote Shariah-compliant products and services. 'By leveraging AI, blockchain, and data analytics, Islamic banks in the UAE are developing innovative products. Their digital-first strategies are meant to meet all the expectations of customers. 'Many leading Islamic banks are capitalising on fintech to meet the demand for seamless, modern, and secure banking experience while adhering to of Shariah-compliant banking principles. This trend is poised to continue in the coming years in line with Central Bank of the UAE's digital transformation strategy. The UAE's progressive regulatory frameworks, high level of technological adoption, and global partnerships enable the Islamic banks to innovate, grow, and thrive,' he said. Factors Driving Fintech Saleh said Islamic banks are increasingly adopting fintech, balancing between meeting customers' demands and expectations, on one side, and adherence to Shariah principles, on the other side. 'There are many factors driving fintech integration in day-to-day banking such as the regulatory frameworks and initiatives which provide support to further accelerate digital transformation, like the FinTech Office that was launched by Central Bank of the UAE in 2020 as part of its fintech and digital transformation strategy, which is aimed at building a mature ecosystem to position the UAE as the fintech hub regionally and globally. He opined that fintech also enables Islamic banks to automate Shariah compliance checks and develop products like blockchain-based sukuk and AI-driven takaful, ensuring transparency and alignment with Shariah principles. 'Financial inclusion and social responsibility are among the key factors influencing Islamic banks to adopt fintech as they are offering microfinance and other banking solutions via digital platforms, targeting underbanked segments/population.' To a question, he said fintech is poised to significantly elevate Islamic banking by enhancing accessibility, efficiency, and compliance with Shariah principles. 'Customers are moving to digital-first solutions, and Islamic banks and finance houses are addressing this by enhancing their digital and smart offerings. 'From digital onboarding by using AI-driven and blockchain-based KYC and identity verification to simplify account opening, to green finance, risk management, and investment products and solutions, Islamic banks are accelerating the transitions towards smart banking and finance,' he said. He said it is expected to witness a noticeable growth in using AI-powered screening to further automate Shariah compliance checks, blockchain smart contracts for Mudaraba and Ijara agreements, inclusive banking, sukuk issuance, and sustainable underwriting. In addition, fintech will play a greater role in operational efficiency and risk management. 'Metaverse could also be expected to influence the future of Islamic banks. Supported by agile regulatory frameworks and the proactive approach of our Central Bank of the UAE, fintechs should be able to innovate in a secure environment,' he said. A Growing sector Areeb Siddiqui, Founder and CEO at Kestrl, said Islamic fintech is poised to continued expansion across the globe. Referring to people interest in Islamic finance, which is visible as evidenced by new funding vehicles and venture capital allocations, he said the growing sector covers a wide range of customers and financial needs through several emerging technologies. 'I'm incredibly optimistic for this industry of Islamic fintech. The amount of talent that I'm seeing coming from the youth, in particular, people leaving corporate jobs behind or coming straight out of university to start their own businesses within this space incredibly heartening to see,' Siddiqui told BTR. 'Taking the lessons, they've learned from large corporations all over the world. We're seeing that in the UK and the US, but even Pakistan, I'm incredibly proud to see what's going on in Pakistan and how many people are trying to solve this solution. So, I couldn't be more optimistic for the future,' he said. Kestrl was declared the first runner up of the Ethical Finance Innovation Challenge and Awards (EFICA) and awarded Dh75,000 cash prize. Abu Dhabi Islamic Bank (ADIB), in partnership with the London Stock Exchange Group, shortlisted Malaysia-based MADCash, the UK-based Kestrl, and Ethiopia-based Kifiya Financial Technology for the seventh EFICA awards from 150 global applicants. Kestrl, a UK-based fintech supporting over 1.2 million Muslims globally in managing and growing their wealth in line with Islamic finance principles, aims at building a true alternative to the conventional banking system to benefit real people and real economy instead of faceless financial organisations. It offers a platform that helps Muslims to grow their wealth without compromising their beliefs. Siddiqui, a Cambridge MBA with a background in consulting and risk advisory at Deloitte and PwC, sees some challenges for Islamic finance and said fundraising has always been a major issue for the sector. 'A lot of conventional finances see this as a niche, which is bizarre given that we are a two billion population. The other side is regulation, but I'm seeing more and more countries bringing down regulations to allow innovation, particularly in the Muslim world. In Pakistan, we saw five new digital banks; in Malaysia, the same; in the UAE we're seeing more and more, and Saudi Arabia has a huge influx of foreign direct investment, which is really growing the space. So, I think the Muslim world is where it's going to be at for the next 10 or 20 years, In Sha Allah,' said Siddiqui, a specialist in working with banks and wealth managers in the digital space. To a question, he said the UAE has been one of the best places for Islamic fintech evolution, from the DIFC all the way to Abu Dhabi Global Market. 'Even in places like Ajman and Sharjah, all of them are running their own incredible business centres and accelerator schemes. So, fintech is really spoiled for choice when it comes to fundraising and where to set up an office,' he said. Bright Prospects Ahead Faisal Islam, Head of Digital Islamic Finance at Kifiya Financial Technology, sees bright prospects for Islamic finance due to its rising demand across the world. 'I would just like to say that the future is only for Islamic finance because of the risk-sharing model as well as growing appetite from the Muslims. So, it holds the future that we must follow and develop Shariah-compliant products to cater to the rising demand,' Islam told BTR on the sidelines of the seventh EFICA awrads held in Dubai recently. Kifiya was the second runner up of the EFICA and awarded Dh75,000 cash prize. Malaysia-based MADCash won the first prize of Dh300,000. Faisal Islam said the Islamic finance industry has struggled to realise its potential owed to several challenges, including regulatory gaps and lack of adoption stemming from limited awareness and education. 'The challenges are huge because people are used to doing the banking the conventional way. It has been around for 300 years while Islamic banking has just arrived. It's a very new concept with only 70 to 75 years old history. So, the challenge is just the adoption. I cannot see any challenge beyond this because it's just about adoption. We are working on tools to help the people and industry, so Islamic finance gets inclusion and traction,' he said. He said Africa is home to a burgeoning Muslim customer base, which presents significant demand for Islamic finance products and services. About the UAE's role in promoting Islamic fintech, he said the UAE is always at a forefront for innovative and tech initiatives and has developed a strong tech ecosystem in the country. 'Like these EFICA awards, the most prestigious awards in the history of Islamic finance, the UAE has been playing a very active role in promoting Islamic finance. It is connecting people together and doing a lot of good work for this growing sector. And of course, Dubai Islamic Bank and Abu Dhabi Islamic Bank, they are always contributing to the halal economy,' Faisal Islam said. Founded in 2010, Addis Ababa-based Kifiya Financial Technology is pioneering in developing Shariah-compliant digital financing products in Ethiopia as it simplifies complex financial services, bridging the digital divide and fostering financial and market inclusion across Ethiopia. The company offers a diverse portfolio of services in payments, agriculture, micro-insurance, and mobility. Kifiya's mission is to leverage AI driven data and technology for social good, creating a more inclusive and sustainable future. Revolutionising Islamic Banking The Abu Dhabi-based ADIB said advanced technologies like artificial intelligence are transforming financial services and Islamic finance is no different. The second largest Islamic lender in the UAE noticed that Shariah-compliant fintechs are emerging to serve customers and extend financial services to the underbanked. 'Islamic fintech seamlessly integrates Shariah compliance with digital financial solutions, providing customers with easier access to savings, investments, takaful, and financing options that align with Islamic principles,' an ADIB Spokesperson told BTR. 'At ADIB, we believe in partnering with fintech firms and accelerating the development of digital solutions that cater to the evolving needs of our customers. This is why we launched ADIB Ventures, a strategic initiative designed to drive innovation and collaboration within the global financial technology sector. 'Through ADIB Ventures, we aim to build a robust ecosystem by connecting with emerging fintech players and integrating advanced technologies, including Generative AI, to enhance the banking experience for around 1.5 million customers,' the Spokesperson said. Fintech is set to be a major enabler of Islamic banking's next phase of growth, making Shariah-compliant financial products more accessible and appealing to a wider audience. It will allow Islamic banks to reach a larger customer base, including the unbanked and underbanked, thereby enhancing financial inclusion. 'At ADIB, we are committed to partnering with fintech firms across various areas, including automating processes to reduce manual intervention. We are also exploring AI-driven tools for risk assessment and fraud management. For example, we collaborated with Lune, an Emirati fintech company, to launch the region's first personal finance management tool — the ADIB Money Management Tracker. This innovative solution empowers customers with greater control and insight over their financial activities. We are also fostering innovation through initiatives like the EFICA, which recognises fintech solutions that promote ethical banking and financial inclusion. As customer expectations evolve, fintech will continue to shape a more dynamic and inclusive Islamic banking sector.' Fintech Adoption Rising The ADIB Spokesperson said several key factors are driving Islamic banks toward fintech adoption. First, customers increasingly demand seamless, digital-first experiences, prompting banks to modernise their services. Second, regulators across the region are encouraging digital transformation, creating an environment conducive to fintech-driven growth. Additionally, banks are focused on enhancing efficiency, expanding financial inclusion, and improving compliance. 'Fintech adoption supports these objectives by automating banking processes, streamlining financing approvals, and reducing paperwork and manual intervention. From an operational standpoint, automation lowers costs, improves efficiency, and allows banks to scale their services more effectively,' the spokesperson said. Moreover, fintech presents opportunities for Islamic banks to expand into new markets by offering cross-border Shariah-compliant financial solutions. 'ADIB has been at the forefront of this shift, developing API-driven banking solutions and launching innovative digital products such as ADIB Pay and open banking initiatives, reinforcing our commitment to pioneering fintech adoption in the Islamic banking sector.' Reshaping Jobs Role While automation and AI-powered solutions streamline banking operations, they reshape job roles rather than replace them. The key challenge is ensuring that employees are reskilled to manage AI-driven tools and digital banking platforms. 'Islamic banks, including ADIB, are investing in talent development programmes to equip employees with essential digital skills. Additionally, the rapid adoption of fintech introduces challenges related to cybersecurity and regulatory compliance, which require careful oversight.' However, the overall impact of fintech on Islamic banking remains overwhelmingly positive. By enhancing efficiency, lowering costs, and broadening financial inclusion, fintech empowers Islamic banks to deliver more customer-centric and ethical financial services while ensuring long-term sustainability. The ADIB Spokesperson said next five years will witness a significant transformation in Islamic banking, driven by fintech innovation. 'AI-powered Shariah advisory services will become more sophisticated, offering hyper-personalised financial guidance. Digital sukuk and ESG-driven investments will gain traction, enabling wider investor participation in ethical finance through tokenised assets.' Open banking and API integration will foster deeper collaboration between Islamic banks and fintech firms, expanding financial inclusion, particularly in underserved markets. Additionally, sustainable finance solutions, such as green sukuk and carbon trading platforms, will align Islamic banking with global ESG objectives. 'ADIB is actively investing in this future through ADIB Ventures, supporting fintech startups that pioneer next-generation Islamic financial solutions. Through our ADIB 2035 vision, we are leveraging fintech to enhance customer experience, drive efficiency, and reinforce the ethical finance ecosystem,' the Spokesperson concluded.
Zawya
09-04-2025
- Business
- Zawya
UBF: Smart banking empowers future economy
Abu Dhabi, United Arab Emirates: The UAE Banks Federation (UBF), the sole representative and unified voice of UAE banks, has emphasised the importance of continuing initiatives and efforts to advance smart banking services in order to build a future economy characterised by prosperity, resilience, financial inclusion, transparency, diversification, and sustainability. During its participation in the 14th edition of the AIM Investment Summit, UBF reaffirmed the banking sector's commitment to developing and adopting smart solutions and advanced technologies. This is to enhance the UAE's position as a global financial and logistics hub, under the direct supervision of the Central Bank of the UAE, which sets the appropriate frameworks to achieve the country's strategic goals by enabling the financial and banking sector to play its vital role in sustainable economic and social development. The AIM Investment Summit, taking place from April 7 to 9, 2025, under the theme 'The New Wave of a Globalised Investment Landscape: Towards a New Balanced World Structure,' hosts heads of state, more than 60 ministers and central bank governors, 30 city mayors, 1,250 speakers, 16 heads of stock markets, 600 exhibitors, and over 20,000 participants from 180 countries—highlighting its status as a leading global investment platform. In his keynote speech at the 'Future of Finance' session, which featured senior officials and experts from the banking, finance, and technology sectors, Mr. Jamal Saleh, Director General of UBF, said: 'The banking sector is distinguished by its progressive approach in adopting and developing advanced technologies to deliver seamless and secure banking services to customers. The proactive role of the Central Bank of the UAE fosters innovation to meet the evolving needs of diverse customer segments and keep pace with rapid advancements in fintech, while ensuring optimal conditions for protecting digital infrastructure and cybersecurity.' He added: 'Guided by the visionary leadership of the UAE, the country is redefining innovation and ambition across various fields, spearheading digital transformation and smart services. The UAE Digital Strategy aims to double the digital economy's contribution to the GDP—from 9.7% to over 20% by 2031—underscoring the commitment to strengthening its leading status as a global centre for finance, investment, and trade.' The Director General of the UBF noted that 'The initiatives launched by the Central Bank of the UAE have led to a qualitative leap in financial services and strengthened the UAE's pivotal role in shaping a better future for the banking industry locally, regionally, and globally. Supportive regulations, robust frameworks, and ambitious initiatives like the Digital Transformation Programme for financial services have established an integrated ecosystem that empowers financial institutions, tech companies, and investors to innovate, operate with confidence, and manage risks efficiently.' 'UAE banks continue to invest in upgrading their technology infrastructure, offering specialised services, and continuously enhancing digital channels. This has significantly increased the adoption of digital services, with more than 95% of all transactions at leading banks now conducted digitally, and over 90% of services available via smart phones—placing the UAE among the world's top performers in digital banking.' Mr. Saleh highlighted the importance of leveraging rapid developments in digital technologies to create innovative solutions for building the future economy, noting that the UAE banking sector is at the forefront of these efforts by deploying blockchain, artificial intelligence, data analytics, and cloud computing to provide better services, enhance operational excellence, and improve risk management and regulatory compliance. 'To further strengthen the role of smart banking in achieving economic growth and diversification, we must continue to invest in digital infrastructure, cybersecurity frameworks, and supportive regulatory environments that promote innovation while ensuring the protection of customers and the financial system,' he added. Mr. Saleh also discussed the key factors and trends driving digital and smart transformation efforts, and the role of UBF and member banks in fostering collaboration with fintech firms and relevant institutions to develop a thriving smart banking ecosystem. He pointed to initiatives for talent development, raising awareness of digital services, cybersecurity, and fraud prevention, as well as sustainable finance aligned with environmental, social, and governance (ESG) standards, and wealth and investment management solutions integrated through APIs and AI capabilities. He stressed that the UAE has successfully laid the foundation for the growth of open banking and finance in a secure environment—enabling the provision of tailored banking services that meet the needs of all customer segments and enhance financial inclusion. In addition to the future of finance, the main themes of the AIM Investment Summit included global trade, foreign direct investment, startups and unicorns, smart cities, global manufacturing, the digital economy, and entrepreneurship. The current edition featured more than 400 panel discussions and 13 high-level roundtable meetings. -Ends- About UAE Banks Federation (UBF): Established in 1982, UAE Banks Federation (UBF), the sole representative and unified voice of UAE banks, comprising 62 members of banks and financial institutions operating in the UAE. UBF advocates the interests of all its members and enhances cooperation and coordination between them in order to elevate the UAE's banking ecosystem for the benefit of members, customers, and the overall UAE economy. UBF's mission and objectives are focused on representing its members and defending their rights and interest. UBF provides a platform for cooperation and the exchange of ideas and expertise among its members and plays a significant role in raising public awareness about the contributions of the UAE banking sector to the economic and social development of the country. UBF has a 22-member Advisory Council consisting of CEOs and General Managers from member banks and financial institutions, which oversees the implementation of UBF's policies and activities. The CEOs Council also makes directional decisions through UBF's General Secretariat for UBF's 28 technical and 6 advisory committees, which in turn are tasked to discuss all issues relevant to the UAE banking and financial services ecosystem. UAE Banks Federation also includes a CEOs Consultative Council, which consists of chief executives of other member banks. For further information, please contact: Sooyin Lee UAE Banks Federation sooyin@
