Latest news with #crossbordertrade
Khaleej Times
5 days ago
- Business
- Khaleej Times
UAE's cross-border business horizon brightens, study shows
With 94 per cent of businesses projecting strong growth in cross-border activities despite looming tariff challenges, the UAE leads global trade optimism, according to HSBC's 2025 Global Trade Pulse Survey. Conducted between April 30 and May 12, the survey of over 5,700 firms across 13 markets reveals UAE companies' remarkable resilience, outpacing global sentiment. As geopolitical and tariff uncertainties ripple worldwide, UAE firms are leveraging advanced planning, digital innovation, and strategic market diversification to secure a prosperous future. The UAE's buoyant outlook contrasts with global caution, where two-thirds of corporations report cost increases from tariff and trade uncertainties. While 65 per cent of UAE firms have faced similar cost pressures, with an average rise of seven per cent in operational expenses, they remain undeterred. A striking 76 per cent anticipate further cost hikes within six months, yet their confidence persists, driven by proactive strategies. The survey projects a 19 per cent revenue impact from tariffs on UAE businesses, slightly above the global average of 18 per cent, but firms are countering this with agility and foresight. Deyana Cherneva, head of Global Trade Solutions for the Middle East, North Africa, and Türkiye at HSBC Bank Middle East, emphasised the UAE's strategic edge. 'The UAE corporates are well-prepared for the evolving trade landscape,' she said. 'By harnessing data analytics, strengthening supply chains, and deepening ties with key markets like the Middle East, China, and Europe, they are turning challenges into opportunities.' Indeed, 75 per cent of UAE firms view trade uncertainty as a chance to innovate, with 48 per cent investing in data analytics, 42 per cent enhancing risk management, and 38 per cent improving supply chain visibility. The UAE's trade optimism is underpinned by its strategic market connections. The survey identifies the UAE itself as the top sales market for 83 per cent of local firms, followed by India (34 per cent), the UK (32 per cent), the US (32 per cent), and Germany (19 per cent). For sourcing, 78 per cent of firms prioritize the UAE, with India (40 per cent), the US (39 per cent), the UK (32 per cent), and Germany (25 per cent) as key partners. Regional trade is a cornerstone, with 62 per cent of UAE companies boosting Middle East ties, alongside 47 per cent focusing on China and 43 per cent on Europe. This diversification aligns with the UAE's Vision 2030, which aims to elevate non-oil trade to Dh4 trillion by 2031, per government projections. Additional data from the UAE Ministry of Economy highlights the emirates' trade momentum, with non-oil exports reaching Dh445 billion in 2024, a 12 per cent year-on-year increase. Free trade agreements, including those with India and the EU, have bolstered market access, while investments in digital infrastructure — such as Dubai's blockchain-based trade platforms — enhance efficiency. The UAE's logistics hub status, with Jebel Ali Port handling 14.5 million TEUs in 2024, further solidifies its global trade dominance. Geopolitical shifts, a constant in global trade, are met with resilience by UAE businesses. The survey notes that 55 per cent of firms are exploring new markets to mitigate risks, with Southeast Asia and Africa emerging as growth frontiers. The UAE's economic diversification, with non-oil sectors contributing 73 per cent to GDP in 2024, supports this adaptability. Sectors like technology, renewable energy, and e-commerce are thriving, with the UAE's digital economy projected to grow by 15 per cent annually through 2030, according to Oxford Economics. According to business analysts, while challenges like tariff costs and regulatory complexities persist, UAE businesses are undaunted. Their embrace of technology, strategic market expansion, and robust regional ties position them to lead globally, they added.
Zawya
28-05-2025
- Business
- Zawya
South Africa: Inside Verto's strategy to streamline African trade with a 2030 vision
Cornelius Coetzee, country director for Verto South Africa, shares insights on the company's strategic expansion across Africa, its role in simplifying global B2B payments, and how its licensing and infrastructure empower businesses to scale. In this Q&A, Coetzee unpacks how Verto is shaping the future of cross-border trade on the continent. Could you speak to Verto's footprint in 49 countries including South Africa and Africa, and how you see Verto expanding to meet the B2B needs on the African continent by 2030? Verto's footprint provides access to 49 currencies globally, leveraged through our strategic licenses in the UK and US which enable crucial banking partnerships. For Africa specifically, our focus was to obtain licensing and set up a market presence in key economic hubs: Nigeria, Kenya, and South Africa, with the UAE serving as a vital link for Middle Eastern and North African (MENA) region trade. This existing infrastructure uniquely positions us to manage local cash pools, and the volatility often associated with African currencies - a complex area many global banks avoid. Looking towards 2030, Verto's African expansion strategy is to broaden our direct licensing across the continent. This will further empower us to meet growing B2B needs by enhancing payment infrastructure, significantly fostering both intra-African trade and streamlining Africa's trade flows with the rest of the world. Verto's business model emphasises B2B transactions, offering a platform for multinational corporations to transact seamlessly with suppliers and business ecosystems across continents and currencies — including US dollar-based conversions and real-time payments. Can you elaborate on how this formula works in practice? Verto's formula helps B2B clients navigate evolving global trade, offering flexibility beyond sole USD reliance to transact seamlessly in diverse, even 'exotic', currencies. Our approach integrates a unified platform providing multi-currency accounts (e.g., NGN, KES, ZAR alongside G10), expert FX and liquidity management to handle African currency volatility and convertibility, efficient payment rails enabling near real-time cross-border transactions, and strategic licensing with banking partnerships for compliant global liquidity. This empowers multinationals to transact with their ecosystems in local currencies or USD, simplifying complex cross-border payments. You mentioned two members of Verto's founding team — one a former banker and the other a fintech aficionado — have addressed the challenges faced by companies exporting to multiple countries. One such challenge is the licensing hurdles in regions like the UK and EU, which can delay imports and result in significant holding costs, sometimes amounting to millions. Could you speak more to that? Verto's co-founders, both bringing experience from the technology and remittances sides of banking, understood that robust compliance is paramount, an insight solidified by Verto's foundational experience trading between the UK and the highly illiquid Nigerian market. Their formula for navigating complex licensing hurdles involves proactively cementing relationships with central banks and regulators. Crucially, they engage these institutions by understanding their primary role as policymakers dedicated to their country's treasury stability, rather than as commercial bankers. This deep regulatory understanding and collaborative, policy-first approach are key to Verto's ability to obtain licensing efficiently, thereby helping businesses mitigate costly delays when exporting to multiple countries. For B2B companies looking to partner with Verto, could you explain how your platform helps solve this issue? For example, how does Verto act as a go-between license holder or sponsor for clients needing import/export licensing approval — and how does this enable companies to scale their operations more efficiently? For B2B companies looking to partner with Verto, we solve our clients' pain points by acting as a licensed intermediary, leveraging our regulatory approvals in key jurisdictions. This means we can operate on behalf of clients; for instance, a South African exporter wishing to trade into the EU or UK can utilise our FCA license in the UK to access local GBP or Euro IBANs, without the client needing their own entity registered in that corridor. Essentially, they can receive funds like a local and repatriate that back to South Africa more efficiently. By Verto serving as this licensed intermediary, companies significantly reduce the typical costs, risks, and administrative delays associated with individual licensing processes. This streamlined market access is crucial, enabling businesses to scale their international operations much more efficiently. So far Trump's tariffs have highlighted how expenses such as currency conversions, import taxes, and sudden currency fluctuations have become critical — even lifeblood — costs for importers and exporters. Could you explain how Verto's platform helps mitigate these expenses and addresses this challenge? Businesses have long grappled with substantial 'costs of doing business' internationally, such as high transaction margins, various fees including SWIFT charges, frustrating payment delays, and significant currency risk exposure. These are no longer just accepted overheads, but critical pain points that Verto directly addresses. We help clients mitigate these financial risks and inefficiencies on two primary fronts: Optimising currency risk and transaction costs: Verto leverages strong partnerships with multiple banking partners globally. This network allows us to streamline the entire payment process, offering more competitive foreign-exchange rates and by default, reducing our clients' exposure to volatile currency fluctuations. Accelerating settlement times and reducing complexity: Our well-developed financial ecosystem and banking relationships enable us to drastically cut down transaction settlement periods. Instead of businesses waiting three to five days and navigating complex regulatory hurdles, Verto ensures funds are typically delivered within 24 hours, often even sooner. Could you elaborate on your plans to expand your South African retail footprint—for instance, by partnering with businesses that follow models like Shein or Takealot? How does this tie in with your interest in scaling up your wine import/export operations? Recognising that the third-party payment processing (TPPP) market in South Africa is currently too expensive, Verto aims to extend the cost-reduction and efficiency benefits we've delivered to our global B2B customers to the domestic retail and wholesale sectors. Our strategy involves leveraging Verto's existing, proven global system - which provides fast, near-instant settlements for merchants - and adapting it to create a robust solution for local collections, payment aggregation, and domestic settlement. Crucially, many South African retail and wholesale businesses also conduct high-volume monthly imports from regions like the Far East, the Middle East, or the US. By integrating Verto's capabilities, these companies can not only streamline their domestic payment processes but also simultaneously fast-track settlement lead times and reduce their foreign-exchange risk exposure on their import trade activities. This offers them a powerful, integrated solution to enhance overall operational and financial efficiency. You mentioned that you've recently launched operations in Dubai and would ideally like to expand into Egypt. What opportunities might such an expansion present for Verto? Establishing the UAE as a strategic hub is pivotal for Verto, granting us licensed access to the burgeoning Middle Eastern and North African (MENA) trading block, markets of increasing global prominence previously less accessible to us. Our UAE license is the key to effectively serving businesses operating in and with this dynamic region. Many international businesses are now centralising their operations in the UAE, which also boasts strong trade agreements with key players in the GCC and fosters growing connectivity with other regions. Verto is strategically positioned to leverage this. Our UAE license will enable us to 'connect the dots', fostering seamless trade and payment corridors not only within MENA itself but also crucially bridging MENA with African markets and the wider global economy. This significantly expands our ability to support our clients' international trading and growth ambitions. Given the pressure that the Trump administration and rising tariffs are placing on businesses and their profit margins, what advice would you offer to multinational corporations feeling the squeeze? How might partnering with Verto help turn these challenges into opportunities? We understand that multinational corporations, especially those in South Africa, often have deeply rooted, traditional banking relationships and might be cautious about engaging a fintech partner. Verto respects this loyalty; we don't aim to replace your primary bank. Instead, we position ourselves as a specialised, complementary solution designed to optimise the global trade arm of your business. In today's uncertain economic landscape, the critical question for many MNCs is how to best improve international operational costs and strengthen their financial position. Verto provides a direct answer. Our core mission is to reduce these cross-border transaction costs and significantly accelerate global trade. We achieve this by ensuring greater currency availability across numerous corridors and delivering tangible cost savings, allowing your business to focus more on strategic growth and scaling opportunities. By partnering with Verto, you are assured of a measurable reduction in your international cost of doing business. Furthermore, you gain access to a streamlined, interconnected platform that facilitates trade across multiple corridors, some of which may have been previously challenging or less cost-effective to reach. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Yahoo
09-05-2025
- Business
- Yahoo
XTransfer gains EMI licence from Dutch central bank
Chinese B2B cross-border trade payment platform XTransfer has secured an electronic money institution (EMI) licence from De Nederlandsche Bank (DNB), the central bank of the Netherlands. As a member of the European System of Central Banks (ESCB), DNB's issuance of the EMI licence enables the company to officially launch financial services in the Netherlands. The new licence enables XTransfer to offer localised payment services to Dutch SMEs, such as local accounts and cross-border settlements. XTransfer Founder and CEO Bill Deng said: "Receiving this licence from DNB is a significant milestone in our global strategy, following our earlier authorisation as an Authorised Payment Institution by the UK's Financial Conduct Authority (FCA). 'With the Netherlands as our operational base, we plan to expand our services across all 30 countries in the European Economic Area (EEA). Our goal is to provide secure, efficient, and cost-effective cross-border payment solutions to more SMEs. Additionally, we will seek further opportunities in emerging markets by leveraging the Netherlands' financial connectivity with regions like Africa and the Middle East." Established in 2017, XTransfer has developed a regulatory presence in financial hubs including the US, the UK, Singapore, Canada, Australia, and Hong Kong SAR. The platform currently serves a clientele of over 600,000 global trade enterprises. In January, XTransfer secured a major payment institution (MPI) licence from the Monetary Authority of Singapore (MAS) under the Payment Services Act 2019. This licence authorises XTransfer to provide various financial services in Singapore, including domestic and international money transfers, and issuance of e-money. "XTransfer gains EMI licence from Dutch central bank " was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The National
07-05-2025
- Business
- The National
Abu Dhabi Customs discusses trade with Japanese industry leaders
Abu Dhabi Customs highlighted the main digital initiatives that simplify customs procedures and ease cross-border trade during an economic delegation's visit to Japan on Wednesday. The visitors discussed projects that support Abu Dhabi's credentials as a regional hub for global trade, according to a statement on Wednesday. The visit is aimed at strengthening Abu Dhabi's global economic presence, promoting its pro-business environment and strengthening co-operation with major economies, particularly Japan, said Rashed Al Mansoori, director general of Abu Dhabi Customs. The delegation also plans to explore more opportunities, exchange knowledge and technologies, and build partnerships with Japanese economic and commercial sectors, contributing to the development of a 'future-ready economy' and supporting sustainable development goals, he added. The UAE and Japan have been boosting partnerships in recent years. Bilateral non-oil trade was worth around $13.3 billion in 2021 and increased to $17.3 billion last year, according to Shihab Al Faheem, the UAE's ambassador to Japan. Overall, bilateral trade is more than $49 billion. Senior executives from Abu Dhabi are visiting Japan for the inaugural Abu Dhabi Investment Forum this week. It will help the Arab world's second-largest economy to expand its economic relationship with Tokyo to include sectors such as artificial intelligence, space technology, clean energy and advanced manufacturing. The Abu Dhabi delegation met with senior executives from electronics company Toshiba, Japanese conglomerate Itochu, the Ministry of Economy, Trade and Industry (Meti), Japan Business Federation and Osaka Chamber of Commerce and Industry, among others, to explore collaborations and mutual investments. The meeting with Meti focused on potential collaboration on green energy projects and decarbonisation strategies, including joint research on hydrogen and ammonia fuel technologies as well as investment frameworks for renewable infrastructure, the statement said. The team also met Governor of Tokyo Yuriko Koike to explore opportunities for partnership between the Japanese capital city and Abu Dhabi in areas such as tourism promotion, cultural exchange, and joint initiatives on sustainability. Mr Al Mansoori stressed the role of customs co-operation in advancing trade and economic ties. He said that Abu Dhabi Customs would share its success stories and strategic projects to build bridges and expand partnerships. He added that the 'invisible customs' concept is now a reality in Abu Dhabi, thanks to the use of artificial intelligence, blockchain, and smart automation technologies. The Japan visit presents a 'valuable opportunity for direct engagement' with decision-makers across the customs, trade, and economic sectors, the senior official said. He added that the visit would help strengthen partnerships and open new avenues for business and investment, in line with the shared vision for greater economic integration and prosperity.
Arabian Business
07-05-2025
- Business
- Arabian Business
UAE, regional firms switch to blockchain-based cross-border payments as global trade tensions mount
Ongoing tariff wars, mounting regional tensions and economic sanctions on traditional financial systems are pushing businesses and institutions in the UAE – as well as the wider region – to adopt stablecoins or blockchain-based settlement tools for cross-border trade, sector experts said. Regulatory initiatives such as the UAE Central Bank's move to give legal clarity to payment token issuers through its Payment Token Services Regulation are accelerating the shift, boosting business confidence to adopt the digital asset-based alternative settlement modes. The plans announced by IHC, ADQ, and First Abu Dhabi Bank (FAB) last week to launch a new stablecoin backed by Dirhams are also seen as a major instance of the growing trend of institutions and businesses increasingly opting for alternative financial tools. UAE leads crypto shift Besides businesses, high-net-worth individuals (HNWIs) and institutions across the Middle East are also increasingly turning to Bitcoin and stablecoins as strategic hedges against inflation and currency volatility, experts said. Even major family offices in the UAE are said to be moving a portion of their assets into Bitcoin, seeing it as a long-term store of value, while also using stablecoins for short-term hedging against volatility. 'Crypto's borderless nature provides a perfect avenue away from the uncertainty of tariff battles or trade wars,' Rami Alsridi, Founder and CEO, Mining Grid, a leading Bitcoin mining company operating in the MENA region, told Arabian Business. 'As trade frictions increase, businesses and investors in the region want assets that aren't tied to national borders or single economies,' he said, adding that 'crypto fits that demand perfectly.' Alsridi also cited the UAE Central Bank's move last year to send AED50 million to China via the mBridge blockchain platform as a significant step in decentralised cross-border settlements. سعدت بحضور الاحتفال بمناسبة "اليوبيل الذهبي" لتأسيس مصرف الإمارات المركزي وتخريج الدفعة الأولى من المواطنين الملتحقين في "برنامج إثراء" للتوطين..كما أطلقنا مشاريع ابتكارية لتعزيز البنية التحتية المالية وتسريع التحول الرقمي في القطاع المالي في الدولة.. القيادة حريصة على ترسيخ… — منصور بن زايد (@HHmansour) January 29, 2024 Industry players said the region has long been an economic hub that bridges the East and West, and many businesses and institutions see crypto as a natural extension of that strategic positioning. Digital assets gain traction Market experts said the shift to use digital asset tools for businesses and cross-border settlements is gaining great traction at a time when regional geopolitical factors and fluctuating oil prices are projected to make traditional assets risky. More importantly, the ability to move these assets seamlessly across borders, without the interference of traditional banking systems, gives investors a level of autonomy that was previously unimaginable, they said. Institutional confidence is further evidenced by significant investments, such as Abu Dhabi's MGX fund's $2 billion stake in Binance, and Standard Chartered's launch of digital asset custody services in the UAE, market players said. Alsridi said economic sanctions and tariffs can often disrupt traditional financial channels, especially when it comes to cross-border trade. 'When you rely on centralised banking systems or international financial institutions, you're subject to their restrictions, fees, and, increasingly, geopolitical tensions. This is why many businesses in the Middle East are exploring alternatives like stablecoins and blockchain-based settlement tools,' he said. Vugar Usi Zade, COO at Bitget, a leading global crypto exchange with major operations in the UAE, said besides the risks associated with the ongoing trade wars and regional tensions, the fact that cross-border payments are plagued with several challenges like high cost, delayed settlement time affecting cash flow, limited access, and lack of transparency is also pushing businesses to switch to digital asset-based settlement tools. 'Blockchain technology can reduce the high cost of cross-border payments and minimise payment settlement time to a few seconds,' Usi Zade told Arabian Business. He said Dubai's emergence as a hub for digital asset-based payments, driven by a proactive regulatory environment and strong government support for blockchain and digital assets, is also aiding this shift. 'The progressive stance of regulatory bodies like VARA, DFSA, SCA, and CBUAE is making Dubai a preferred choice for crypto-native businesses from across the globe,' the Bitget COO said. The Mining Grid chief executive, however, said: 'From my conversations with investors, the common feeling is that they're not abandoning traditional finance, but they don't want to be 100 per cent exposed to it anymore.' He said digital assets are increasingly seen as a necessary hedge in a fast-changing world. 'The trend we're seeing in the Middle East is one of growing independence, especially when it comes to finance,' Alsridi said. Gulf investors embrace crypto Market players said institutional investors in the Gulf region are also actively incorporating cryptocurrencies into their portfolios to manage financial risks. Bitcoin, in particular, is being seen not just as an investment, but as a form of financial resilience, as its fixed supply – only 21 million coins ever – makes it attractive in contrast to inflation-driven currency devaluation currently seeing worldwide, they said. 'We're seeing a real shift. In times of uncertainty, people traditionally looked at gold or real estate. But today, digital assets, especially Bitcoin, are becoming part of that 'safe haven' conversation in the Middle East,' Alsridi said. A study by Singapore-based QCP said global currency fluctuations and sustained inflation are key drivers behind this shift, with $34 billion transferred to the UAE in 2024 alone. Besides, according to a recent survey by EY, titled 'Institutional Investor Digital Assets Survey', 67 per cent of institutional investors in the UAE said they plan to increase their digital asset allocations this year. 'This interest is not just about returns. It's about diversification and gaining more control over wealth. In markets where inflation, currency fluctuation, and global instability are concerns, crypto offers a decentralised option,' an industry executive said. Alsridi said institutional investors are increasingly drawn to the fact that crypto offers non-correlation with traditional markets. 'This means that during periods of volatility in traditional markets, such as equities or bonds, crypto can serve as a buffer, protecting portfolios from sudden market swings.' In addition, he said, the regulatory clarity in the Middle East, especially in the UAE, is another major factor encouraging institutional investors. 'So, the combination of regulatory security, inflation-hedging capabilities, and the diversification benefits of crypto are why institutional investors are increasingly adding crypto to their portfolios in the Middle East,' the Mining Grid chief executive said.
