Latest news with #RAKBank
Khaleej Times
a day ago
- Business
- Khaleej Times
UAE small businesses show steady optimism despite economic headwinds
The UAE's small and medium enterprises (SMEs) continue to build on the momentum of the resilience demonstrated in recent years. While challenges persist, including rising operational costs, corporate tax implementation, and high borrowing costs, the overall trajectory signals adaptability and optimism among SMEs in navigating the evolving business landscape, a study showed. RAKBank this week released its latest SME Confidence Index, highlighting a promising outlook for sector. Based on insights from over 1,200 UAE-based SMEs collected between October and December 2024, the report – done in partnership with RFI Global – reveals an SME Confidence Index score of 57, a marginal drop by four points from 61 in 2023. Measured against a base score of 50, the findings reflect a stable and optimistic sentiment against a dynamic economic environment. The findings show that optimism remains steady, with over two-thirds (68 per cent) of SMEs viewing the future business environment as favourable, and more than 60 per cent reporting revenue growth over the past two years. Among the SMEs, consumer and retail services remain the highest-performing sector, driven by a continued rise in consumer spending and successful adoption of new business channels. The report also highlights how SMEs across industries are prioritising product innovation and market expansion as key strategies for growth in a competitive landscape. While consumer and retail services SMEs achieved a sector confidence score of 60, construction and manufacturing (57), transport (57), and trading (58) remained steady in confidence, while public services and professional services saw more notable declines to 56, largely due to increased costs and lower confidence in debt servicing. More than three in five SMEs reported an increase in annual revenue over the last two financial years. SMEs with revenue up to Dh30 million posted the highest confidence score at 58, while larger SMEs (Dh30-100 million) dipped to 55. Raheel Ahmed, Group Chief Executive Officer of RAKBank, said: 'Small and medium enterprises are the backbone of every thriving economy, and in the UAE, they play a central role in driving diversification and sustainable development. At RAKBank, we continue to reinforce our commitment to be a trusted partner on their journey, providing the insights, tools and support they need to grow their businesses and contribute to the wider economy.' Over two-thirds of SMEs experienced higher operational costs, while only 39 per cent expressed confidence in meeting debt obligations, down from last year. Twenty two per cent of SMEs now sell their products or services online, and 45 per cent use digital banking channels monthly. Fifty five per cent of SMEs are either on or planning to begin a sustainability journey, with one in three citing it as a short-term business objective. While UAE SMEs remain optimistic, they are also navigating barriers such as increased costs of doing business, rising demand for credit, competitive pressures, and adapting to the corporate tax regime introduced in 2024. To address these issues, many SMEs are investing ambitiously in technology, operational efficiencies, and sustainability strategies aimed at long-term growth. 'SME confidence is still high however moderated slightly due to rising operational and borrowing costs, uncertainty surrounding corporate tax, and a slower growth outlook. While most of the SMEs remain bullish but SMEs, particularly in professional and public services, are cautious about their debt obligations amid ongoing cost pressures,' Vikas Suri, head of wholesale banking, RAKBank, told Khaleej Times. RAKBank is actively addressing SME challenges through digital onboarding, with 92 per cent of accounts opened digitally, as well as tailored solutions for startups and women-led businesses. It has also introduced enhanced services in business banking apps and seamless corporate tax payment integration to improve efficiency. The bank has over Dh10 billion exposure to the SME segment, which is expected to rise this year as well and has recently strengthened its SME lending through a Dh1 billion co-financing partnership with Emirates Development Bank, ensuring funding reaches priority sectors. 'UAE government initiatives like credit guarantee schemes and digital adoption programs further enhance accessibility,' Suri said.
Khaleej Times
21-05-2025
- Business
- Khaleej Times
EDB and RAKBank unveil Dh1 billion fund to boost mSMEs
In a major boost for UAE-based micro, small and medium enterprises (mSMEs), Emirates Development Bank (EDB) and RAKBank have announced the launch of a co-financing partnership totalling Dh1 billion to catalyse growth in national priority sectors. The initiative was unveiled at the Make it in the Emirates Forum, in Abu Dhabi. This strategic collaboration marks one of the largest mSME-dedicated co-lending programmes of its kind in the region, designed to improve access to capital for businesses operating in manufacturing, advanced technology, food security, renewables, and healthcare — the UAE's most critical growth sectors. Backed by a 50/50 contribution – Dh500 million from EDB and Dh500 million from RAKBank – the fund will be channelled through RAKBank to deliver tailored financing solutions for mSMEs across the UAE, with a strong focus on supporting businesses in the Northern Emirates and greenfield ventures. The co-financing structure gives mSMEs access to liquidity at competitive rates and also sets clear impact benchmarks, including percentage allocation for businesses based in the Northern Emirates (RAK, UAQ, Fujairah) national owned business and prioritisation for manufacturing and greenfield ventures. Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, said: 'This partnership with RAKBank is a powerful example of what Make it in the Emirates was designed to achieve — coordinated national action that turns industrial ambition into reality. At EDB, we've committed more than Dh18.8 billion in financing since 2021 to accelerate economic transformation, and we know from experience that unlocking mSME growth is one of the most effective ways to strengthen our industrial base. This Dh1 billion co-financing platform is a signal that we are serious about empowering the entrepreneurs and manufacturers who will lead our economy into its next chapter.' Raheel Ahmed, Group CEO of RAKBank, added: 'At RAKBank, we have always believed that mSMEs are the backbone of the UAE economy. This Dh1 billion partnership fund is a bold step forward in our commitment to serve them better. By joining forces with Emirates Development Bank, we're not just unlocking capital — we're creating real opportunities for entrepreneurs to grow, scale, and contribute to a more dynamic and sustainable national economy.' The agreement reflects a broader effort by both institutions to deepen mSME support, foster economic diversification, and align with the UAE's industrial strategy and national development goals. The fund will be deployed within 12 months of the agreement, with RAKBank overseeing risk underwriting and portfolio management, while providing monthly performance reports to EDB. Both institutions will collaborate on outreach, awareness, and stakeholder engagement to maximise visibility and impact.
The National
29-04-2025
- Business
- The National
'Cyber criminals took Dh39,000 from my account as I planned my wedding'
At a time when UAE resident Ambia Hoque should have been excited for her wedding, she recalls being distressed when fraudsters transferred her credit card to their digital wallet. The experience left her emotionally and financially shattered. The 30-year-old marketing manager says her RAKBank credit card was fraudulently registered on Apple Pay to an unknown device without her authorisation. 'In the span of one hour, nearly Dh39,000 ($10,610) was drained from my account across multiple local and international transactions, which is completely out of character for my spending habits,' she recalls. 'Distracted by wedding preparations, I did not notice the transactions immediately, but the moment I did, I reported the fraud to the bank and filed a police case.' However, she claims the bank has refused to help, insisting that Apple Pay transactions are 'secure' and that she must bear the loss. Ms Hoque says she never shared her one-time password with anyone, yet her card was added to an unknown device. Transactions involving large sums were approved without any security checks. No fraud alerts were triggered, no verification was done, and Ms Hoque says she was left to discover the theft on her own. The bank has also charged her cash advance fees on the fraudulent transactions, she claims. As digital wallets gain popularity for their speed and ease, they become more attractive targets for cyber criminals. US consumer losses involving digital wallet fraud exceeded $347 million in 2024, according to Federal Trade Commission data. A digital wallet is an electronic payment storage system that houses your credit card, debit card and other financial information so you can conveniently pay for purchases by tapping your phone or other connected device at a merchant's contactless checkout terminal. It's usually facilitated by payment applications like Google Pay, Apple Pay or Samsung Pay. Ms Hoque says although the Central Bank of the UAE acknowledged her experience was fraud, since it happened through Apple Pay, both RAKBank and the regulator told her to bear the financial loss. 'Instead of focusing on my wedding and my new life with my husband, I was dealing with endless calls and emails, desperately trying to get back what was stolen from me,' she says. 'How is it fair that scammers can exploit us so easily while we're left to deal with the consequences? I just got married three months ago and don't have the funds to cover transactions I never authorised. How many more people need to fall victim before real change happens?' When she contacted Apple, Ms Hoque was told that Apple Pay is not a payment service and is not involved in authorising, executing or processing transactions. She was asked to raise any dispute related to the authorisation of a transaction or alleged fraud with the financial institution that issued the card, according to Apple's response seen by The National. While RAKBank refused to comment on individual customer cases, a representative says when account credentials are compromised outside of the bank's secure systems, the lender's ability to assist the customer is 'limited' and the appropriate remedy for customers in these instances is to reach out to law enforcement agencies and report the fraud. 'This is why we continuously urge customers to remain vigilant against fraud attempts and to safeguard their personal and banking information. We remain committed to support affected customers to the extent possible and to raising awareness on fraud prevention,' said the representative. Steve Cronin, a financial independence coach and founder of says banks and the UAE Central Bank need to step up to address this challenge, as many people's cards are being added to someone else's Apple Pay and then not getting reimbursed. He advises customers to limit the number of cards they have, use the bank's website or app to reduce their card limit, block international transactions and reduce the maximum transaction limit. He suggests even temporarily blocking cards that aren't used often. Avoid using debit cards online or in shops. Ensure SMS notifications are switched on for all cards. If you see anything suspicious, block the card immediately through the app and then call the bank. Some people have been reimbursed by complaining to Apple or even the merchant, Mr Cronin says. Carol Glynn, founder of Conscious Finance Coaching, says the burden of proof often falls on the consumer and stresses the need for stronger protections, clearer accountability between financial institutions and tech companies, and better education on digital security. Until then, awareness and vigilance are the best defence, she warns. Users should enable biometric and two-factor authentication, use strong and unique passwords, and avoid storing card details in unsecured apps to secure digital wallets, says Maher Yamout, lead security researcher for the Middle East, Turkey and Africa at cyber security company Kaspersky. 'Always download wallet apps from official stores and ensure your device is equipped with online payment protection. Users should also activate real-time banking transaction alerts to catch any suspicious activity, and lock both devices and financial apps with unique passcodes to secure sensitive data in case of theft or loss,' he suggests. 'Lastly, it's essential to have an endpoint security software or modern antivirus to protect against specific malware types that steal digital wallet details.' It's important to use only trusted providers like Apple Pay, Google Pay, Samsung Pay, or PayPal, and take the time to understand the security features each one offers, Mr Yamout recommends. Hackers exploit phishing, fake apps and malware-like banking trojans to steal login credentials or intercept one-time passwords, he warns. Ms Glynn suggests freezing the card immediately, cancelling it and reporting the fraud to the bank. Work with them on their refund request process. 'If you are not happy with their treatment of your case, you can log a complaint with the Central Bank of the UAE through their official channels. You need to give the bank 30 days after lodging a formal complaint with the bank to respond before you can approach the Central Bank. You can also file a police report, especially if large amounts are involved. This creates an official record that may support further action with your bank,' she says. 'Request a full investigation and ask your bank for documentation showing how and when your card was added to the wallet, including IP addresses and device IDs. If your bank refuses responsibility, you can also raise the issue with the consumer protection department at the Central Bank.' She explains that while the Central Bank has stated that Apple Pay transactions are considered secure, persistent complaints and a clear pattern of similar incidents could prompt further scrutiny or even policy changes in the future. While Apple Pay doesn't process payments themselves (the bank or card issuer does), Apple has a duty to investigate if a card was fraudulently added to their platform. Victims can contact Apple Support and request an investigation into when and how the card was added, the device ID and location linked to the unauthorised registration, and whether biometric or password protections were bypassed or exploited, Ms Glynn suggests. 'In some cases, Apple may provide supporting documentation that can be used to escalate the issue with the bank or regulator. However, Apple typically redirects liability to the issuing bank, because the bank is the one authorising the transaction once the payment leaves the Apple Pay environment,' she says. 'That's why it's so important for both companies to be held accountable and for consumers to push back when responses are dismissive.'
The National
29-04-2025
- Business
- The National
OTPs and outrage: How cyber criminals are exploiting digital wallets
At a time when UAE resident Ambia Hoque should have been excited for her wedding, she recalls being distressed when fraudsters transferred her credit card to their digital wallet. The experience left her emotionally and financially shattered. The 30-year-old marketing manager says her RAKBank credit card was fraudulently registered on Apple Pay to an unknown device without her authorisation. 'In the span of one hour, nearly Dh39,000 ($10,610) was drained from my account across multiple local and international transactions, which is completely out of character for my spending habits,' she recalls. 'Distracted by wedding preparations, I did not notice the transactions immediately, but the moment I did, I reported the fraud to the bank and filed a police case.' However, she claims the bank has refused to help, insisting that Apple Pay transactions are 'secure' and that she must bear the loss. Ms Hoque says she never shared her one-time password with anyone, yet her card was added to an unknown device. Transactions involving large sums were approved without any security checks. No fraud alerts were triggered, no verification was done, and Ms Hoque says she was left to discover the theft on her own. The bank has also charged her cash advance fees on the fraudulent transactions, she claims. As digital wallets gain popularity for their speed and ease, they become more attractive targets for cyber criminals. US consumer losses involving digital wallet fraud exceeded $347 million in 2024, according to Federal Trade Commission data. A digital wallet is an electronic payment storage system that houses your credit card, debit card and other financial information so you can conveniently pay for purchases by tapping your phone or other connected device at a merchant's contactless checkout terminal. It's usually facilitated by payment applications like Google Pay, Apple Pay or Samsung Pay. Ms Hoque says although the Central Bank of the UAE acknowledged her experience was fraud, since it happened through Apple Pay, both RAKBank and the regulator told her to bear the financial loss. 'Instead of focusing on my wedding and my new life with my husband, I was dealing with endless calls and emails, desperately trying to get back what was stolen from me,' she says. 'How is it fair that scammers can exploit us so easily while we're left to deal with the consequences? I just got married three months ago and don't have the funds to cover transactions I never authorised. How many more people need to fall victim before real change happens?' When she contacted Apple, Ms Hoque was told that Apple Pay is not a payment service and is not involved in authorising, executing or processing transactions. She was asked to raise any dispute related to the authorisation of a transaction or alleged fraud with the financial institution that issued the card, according to Apple's response seen by The National. While RAKBank refused to comment on individual customer cases, a representative says when account credentials are compromised outside of the bank's secure systems, the lender's ability to assist the customer is 'limited' and the appropriate remedy for customers in these instances is to reach out to law enforcement agencies and report the fraud. 'This is why we continuously urge customers to remain vigilant against fraud attempts and to safeguard their personal and banking information. We remain committed to support affected customers to the extent possible and to raising awareness on fraud prevention,' said the representative. Steve Cronin, a financial independence coach and founder of says banks and the UAE Central Bank need to step up to address this challenge, as many people's cards are being added to someone else's Apple Pay and then not getting reimbursed. He advises customers to limit the number of cards they have, use the bank's website or app to reduce their card limit, block international transactions and reduce the maximum transaction limit. He suggests even temporarily blocking cards that aren't used often. Avoid using debit cards online or in shops. Ensure SMS notifications are switched on for all cards. If you see anything suspicious, block the card immediately through the app and then call the bank. Some people have been reimbursed by complaining to Apple or even the merchant, Mr Cronin says. Carol Glynn, founder of Conscious Finance Coaching, says the burden of proof often falls on the consumer and stresses the need for stronger protections, clearer accountability between financial institutions and tech companies, and better education on digital security. Until then, awareness and vigilance are the best defence, she warns. Users should enable biometric and two-factor authentication, use strong and unique passwords, and avoid storing card details in unsecured apps to secure digital wallets, says Maher Yamout, lead security researcher for the Middle East, Turkey and Africa at cyber security company Kaspersky. 'Always download wallet apps from official stores and ensure your device is equipped with online payment protection. Users should also activate real-time banking transaction alerts to catch any suspicious activity, and lock both devices and financial apps with unique passcodes to secure sensitive data in case of theft or loss,' he suggests. 'Lastly, it's essential to have an endpoint security software or modern antivirus to protect against specific malware types that steal digital wallet details.' It's important to use only trusted providers like Apple Pay, Google Pay, Samsung Pay, or PayPal, and take the time to understand the security features each one offers, Mr Yamout recommends. Hackers exploit phishing, fake apps and malware-like banking trojans to steal login credentials or intercept one-time passwords, he warns. Ms Glynn suggests freezing the card immediately, cancelling it and reporting the fraud to the bank. Work with them on their refund request process. 'If you are not happy with their treatment of your case, you can log a complaint with the Central Bank of the UAE through their official channels. You need to give the bank 30 days after lodging a formal complaint with the bank to respond before you can approach the Central Bank. You can also file a police report, especially if large amounts are involved. This creates an official record that may support further action with your bank,' she says. 'Request a full investigation and ask your bank for documentation showing how and when your card was added to the wallet, including IP addresses and device IDs. If your bank refuses responsibility, you can also raise the issue with the consumer protection department at the Central Bank.' She explains that while the Central Bank has stated that Apple Pay transactions are considered secure, persistent complaints and a clear pattern of similar incidents could prompt further scrutiny or even policy changes in the future. While Apple Pay doesn't process payments themselves (the bank or card issuer does), Apple has a duty to investigate if a card was fraudulently added to their platform. Victims can contact Apple Support and request an investigation into when and how the card was added, the device ID and location linked to the unauthorised registration, and whether biometric or password protections were bypassed or exploited, Ms Glynn suggests. 'In some cases, Apple may provide supporting documentation that can be used to escalate the issue with the bank or regulator. However, Apple typically redirects liability to the issuing bank, because the bank is the one authorising the transaction once the payment leaves the Apple Pay environment,' she says. 'That's why it's so important for both companies to be held accountable and for consumers to push back when responses are dismissive.'
Khaleej Times
21-04-2025
- Business
- Khaleej Times
RAKBank profits rise 22.7% in first quarter of 2025
The National Bank of Ras Al Khaimah (RAKBank) on Monday announced that first quarter profit after tax rose 22.7 per cent to Dh70 million. Operating profit stood at Dh866 million, up 10.2 per cent year on year, on the back of strong growth in balance sheet and non-interest income. Operating expenses grew by 11.8 per cent vs last year driven by continued investments in technology, data, people and customer experience. Cost to income ratio (CIR) at 33.4 per cent vs. 33.1 per cent for the first quarter of 2024. Total assets have crossed Dh90 billion for the first time in the bank's history. Gross loans and advances surpassed Dh50 billion mark, reflecting a 16.7 per cent year on year increase. Growth driven by all segments, with wholesale banking loans growing by 30.1 per cent year on year, aligning with the bank's diversification strategy. Customer deposits reached Dh61.0 billion, up 18.2 per cent year on year, with a CASA1 ratio of 65 per cent, up 10.2 per cent year on year, one of the highest in the industry. Portfolio credit quality remains robust with cost of risk at 0.8 per cent as against 1.5 per cent during the same period last year, supported by a strategic shift in business mix towards secured, low risk assets. RAKBank's impaired loan ratio as at the first quarter of 2025 improved to 2.1 per cent against 2.6 per cent as at the first quarter of 2024 while provisions to gross loans ratio of 5.6 per cent compared to 6.0 per cent as of the first quarter of 2024, providing adequate coverage. Shareholder returns remained strong with return on equity (ROE) of 22.4 per cent against 21.4 per cent in the first quarter of 2024 and return on assets (ROA) of 3.2 per cent against 3.1 per cent in the first quarter of 2024. Capital adequacy ratio The bank remains well capitalised with capital adequacy ratio (CAR) at 18.6 per cent for the first quarter of 2025 against 17.2 per cent as at the first quarter of 2024. Strong liquidity position is reflected by an eligible liquid asset ratio of 17.1 per cent vs. 13.5 per cent at the first quarter of 2024 and advances to stable resources ratio at 76.4 per cent vs. 78.7 per cent at the first quarter of 2024. Total assets increased by Dh12.2 billion, reflecting a growth of 15.5 per cent compared to the first quarter of 2024, with an increase in gross loans and advances of Dh7.2 billion, investments by Dh1.9 billion and cash and balance with CBUAE by Dh4.1billion. Wholesale banking significantly contributed to the growth of the balance sheet, with segmental assets growing by Dh4.8 billion, a 12.3 per cent increase compared to the first quarter of 2024. Business banking assets grew by Dh589 million, a 5.8 per cent increase compared to Q1 of last year delivered primarily through growth in SME and commercial loans. Personal banking loans and advances rose by Dh2.8 billion to Dh23.1 billion compared to last year with mortgage and leverage loans driving growth, bringing in Dh2.0 billion and Dh728 million year-over-year respectively Customer deposits increased by 10.2 per cent to reach Dh61billion, while maintaining one of the industry's highest current and savings accounts (Casa) ratios at 65 per cent. 'Our Q1 2025 performance highlights the sustainability of our strategy, driven by strong growth across all business lines. We continue to invest heavily in our technology, data and experience capabilities whilst maintaining cost discipline,' said Raheel Ahmed, group chief executive officer, RAKBank. 'The global outlook remains uncertain as newly introduced U.S. tariffs raise concerns around trade flows and economic stability. Despite this, the UAE continues to demonstrate resilience, supported by strong economic measures. We remain confident in the UAE's solid foundation and are committed to supporting our customers through these uncertain times,' he added.
