Latest news with #financialexperts
Khaleej Times
2 days ago
- Business
- Khaleej Times
Digital Dirham revolution: UAE's leap in global digital finance
The Digital Dirham represents a significant step towards modernising the UAE's financial ecosystem, promoting innovation, and positioning the country as a leading player in global digital finance, experts say. Top executives, experts, analysts and economists said the Digital Dirham will empower the Central Bank of the UAE (CBUAE) with greater monetary policy control and improved tracking of illicit activities, enhancing financial stability. They are of the view that the project aligns with the UAE's Digital Economy Strategy, aiming to double the digital economy's non-oil GDP contribution to 20 per cent by 2031. 'The Digital Dirham, the UAE's Central Bank Digital Currency (CBDC), set for retail launch in fourth quarter of 2025, is poised to transform the UAE economy. Built on blockchain, it aims to enhance financial inclusion, streamline payments, and support a cashless society,' according to the experts. They said fintech innovation will thrive, fostering new financial products and services. The Digital Dirham positions the UAE as a global fintech leader, driving efficiency, inclusion, and economic diversification. Currently, all the major global currencies — US dollar, euro, yen, rupee, yuan and rouble — have their symbols, reflecting their countries' strength and pride. 'The Central Bank of the UAE became the first central bank in the Arab region to introduce it. By reducing transaction costs and enabling real-time settlements, it will benefit retail consumers with faster, cheaper, and secure payments. For businesses, particularly in trade finance, it will simplify cross-border transactions, crucial given the UAE's expatriate-heavy population and economy.' A Significant Move Governor of the CBUAE Khaled Mohamed Balama described the new currency symbol and announcement of the design of CBDC wallet as reflecting the significant advancements in the implementation of the Digital Dirham programme and a leap towards realising the central bank's vision. 'It is anticipated that the Digital Dirham as a blockchain based platform with cutting edge capabilities shall substantially enhance financial stability, inclusion, resilience, and combatting financial crime. It will further enable the development of innovative digital products, services, and new business models, while reducing cost and increasing access to international markets.' Vijay Valecha, Chief Investment Officer, Century Financial, said the CBUAE is slated to launch its own Central Bank Digital Currency this year, called the Digital Dirham. This marks a significant leap towards financial innovation and digitisation. 'The digital currency is being developed in partnership with two prominent technology firms, namely, G42 Cloud and R3, and will likely be released in the fourth quarter of 2025,' Valecha told Khaleej Times. The CBUAE also developed a unique symbol for the UAE dirham in physical and digital forms in March 2025. Interestingly, the Digital Dirham is characterised by a large, encircled D with two horizontal lines passing through its center. These lines reflect the stability and resilience of the dirham. Inspiration was also drawn from the UAE flag, symbolising both financial and monetary stability. Thus, it also features the colours of the UAE flag, reinforcing its national identity. The Digital Dirham will support retail, wholesale, and cross-border payments while leveraging blockchain, smart contracts, and tokenisation to enhance efficiency and transparency. It is backed by a robust legal framework and will be distributed through licensed banks and fintech companies to ensure widespread adoption and accessibility. 'It will also facilitate cost-efficient transactions by reducing the intermediaries involved in cross-border payments and lower settlement times. Seamless integration with global CBDC systems and adequate defences against cybersecurity risks will drive its successful adoption.' Advanced Digital Infrastructure Hassan Fawaz, Chairman and Founder of GivTrade, said the UAE's introduction of new dirham symbols and digital forms represents a step towards modernising its currency system and is part of the UAE's Financial Infrastructure Transformation Programme. 'The new symbols reflect the UAE's global currency aspirations, supported by its strong economic position with record trade levels of $800 billion,' he said. Samer Hasn, senior market analyst at said the new symbols reflect the UAE's commitment to further cement its position as a global financial hub. Economist Dr Abdul Rahim Al Farhan said UAE has become one of the most advanced countries in digital in the Middle East in general and the Gulf countries in particular. 'The UAE is currently on its way to becoming a global centre for digital and blockchain, thanks to its flexible regulatory policies, advanced digital infrastructure, and the huge investments of global companies, which make it a major destination for in cryptocurrencies,' Al Farhan said. Digital Dirham to Benefit Economy Valeecha said the launch of the digital dirham in the UAE brings several important benefits to both the general economy and the financial sector. It is part of the country's broader Financial Infrastructure Transformation Programme, which aims to speed up digital innovation in financial services. For the wider UAE economy, he said the digital dirham could support the shift toward a cashless society. By promoting digital payments, it would reduce the need for physical cash, making transactions faster and more efficient. 'The CBUAE has also created the Digital Dirham wallet, which is a safe and complete system for businesses and individuals to issue, manage, and use the digital currency. This would allow for more secure and private transactions, which builds trust and reduces the risk of fraud or misuse,' he said. In addition, the cost of payments and money transfers will also go down because digital currency can work without as many intermediaries, such as banks or money transfer companies. The digital dirham also supports the development of new financial products and services, encouraging innovation and entrepreneurship in the UAE's growing digital economy. For the financial sector, the digital dirham can be used with smart contracts to automatically execute complex deals or conditions including multi-party or multi-step agreements. Moreover, the digital dirham supports cross-border payments, which can improve international trade and capital flows into the country. It also allows for tokenisation and fractional ownership of assets, which would increase access to liquidity and participation in the financial system. 'Overall, the digital dirham may help make the UAE's financial system safer and more streamlined. It is also expected to support new types of businesses and make it easier to connect with international markets, while lowering costs and giving more people and companies access to financial services,' Valeecha said. Accelerating Digital Currency Project Vijay Valecha, Chief Investment Officer, Century Financial, said the Digital Dirham is poised to significantly enhance the UAE's digital currency efforts, as indicated by the CBUAE. 'In line with the broader Financial Infrastructure Transformation (FIT) programme initiated in 2023, the CBUAE is gradually launching the Digital Dirham. This digital currency, recognised as a universal payment method under Federal Decree-Law No. (54) of 2023 will be usable across all payment platforms and channels in conjunction with physical currency,' he said. The Digital Dirham presents significant benefits and features promoting development and innovation, such as: Tokenisation: The Digital Dirham facilitates the process of tokenisation, thereby enhancing financial inclusion and efficiency while simultaneously expanding access to liquidity through digital assets fractionalisation. Smart contracts: The Digital Dirham utilises smart contracts to automate the execution of complex transactions, ensuring instant settlement. This includes handling multi-stage and multi-party transactions that require specific conditions or obligations. The key objectives of the Digital Dirham are: Enhancing domestic, cross-border payments: The Digital Dirham aims to strengthen domestic and cross-border payment systems' efficiency, security, and cost-effectiveness. Digital dirham is also a part of international collaborations like Project mBridge, which explores the use of CBDCs for efficient and secure cross-border payments. Supporting the digital economy: This initiative aligns with the UAE's extensive digital transformation strategy, which seeks to foster a strong digital economy by integrating innovative financial technologies. Promoting financial inclusion: It seeks to offer accessible financial services to unbanked and underbanked communities, promoting increased economic involvement across all social segments.
Khaleej Times
3 days ago
- Business
- Khaleej Times
UAE banks spur GCC profit surge with $639.6m Q1 growth
The UAE banking sector has emerged as a standout performer in the GCC in the first quarter of 2025, posting the largest absolute growth in net profits at $639.6 million, an 11.8 per cent increase year-on-year, according to data provided by Kamco Invest. This robust performance contributed to the GCC banking sector's record-high net profits of $15.6 billion, reflecting a 7.1 per cent quarter-on-quarter (q-o-q) and 8.6 per cent year-on-year (y-o-y) growth. Despite a decline in net interest income, UAE banks leveraged higher non-interest income, lower operating expenses, and a sharp seasonal drop in impairments to drive this growth, underscoring the sector's resilience amid evolving economic conditions, analysts at Kamco Invest said. The UAE's banking sector benefited from a dynamic economic backdrop, with outstanding credit facilities surging 24.1 per cent y-o-y in February 2025, outpacing Saudi Arabia's 16.3 per cent growth, as per central bank data. This lending boom, driven by a strong project pipeline and resilient non-oil sector growth, saw net loans in the GCC rise 4.1 per cent q-o-q to $2.2 trillion, the highest in 15 months. Financial sector experts said amid tighter liquidity and shifting deposit trends faced by the GCC banking sector, UAE banks are well-positioned to capitalise on regional opportunities, particularly in project finance and real estate. With a strong economic foundation and strategic lending, the UAE continues to set the pace for banking excellence in the region, driving sustainable growth in 2025, they pointed out. UAE-listed banks contributed $20.1 billion to this growth, a 3.2 per cent q-o-q increase, reflecting robust demand across sectors like real estate, construction, and services. However, aggregate contract awards in the GCC dipped 26.8 per cent y-o-y to $52.4 billion, though the UAE and Kuwait bucked the trend with healthy growth. Despite a 1.7 per cent q-o-q decline in GCC net interest income to $22.8 billion, driven by rate cuts in the second half of 2024, UAE banks mitigated the impact through diversified revenue streams. The aggregate yield on credit in the GCC fell to 4.16 per cent from 4.21 per cent in Q4-2024, reflecting lower interest rates. UAE banks, however, maintained revenue growth of 0.6 per cent q-o-q, reaching a share of the GCC's record $34.6 billion in banking revenues. Non-interest income, including fees from advisory services and wealth management, played a pivotal role in offsetting the decline in interest-based earnings. Customer deposits in the UAE surged to $903.8 billion, a 6.7 per cent q-o-q increase, outpacing the GCC's 5.1 per cent growth to $2.65 trillion. This deposit growth, driven by financial market volatility, bolstered liquidity but led to a decline in the loan-to-deposit ratio to 67.3 per cent ---- the lowest in the GCC --- down 220 basis points from Q4-2024. This shift reflects improved asset utilisation and a strategic pivot towards high-yield lending, with UAE banks increasingly financing projects in Saudi Arabia to support yields, according to Bloomberg. The UAE's economic vitality is evident in its manufacturing activity, with a PMI of 54.0 points in March 2025, slightly below Saudi Arabia's 58.1 but ahead of Qatar's 52.0 and Kuwait's 52.3, per Bloomberg's Markit Whole Economy Surveys. Dubai's PMI stood at 53.2, signaling steady growth driven by new orders and output. This aligns with the UAE's non-oil sector expansion, which supports lending growth in sectors like real estate (up 2.5 per cent q-o-q in Kuwait, a comparable market) and construction. While Saudi banks led in lending growth with a 5.5 per cent q-o-q increase to $801.5 billion, the UAE's strategic focus on diversification and high-yield opportunities positions it as a regional leader. Challenges remain, including pressure on funding costs, with GCC banking sector costs at 3.83 per cent in Q1-2025, and a decline in low-cost CASA deposits to 52 per cent from 54 per cent in Q4-2024. However, the UAE's ability to navigate these pressures through operational efficiency and non-interest income growth highlights its adaptability.
Yahoo
4 days ago
- Business
- Yahoo
Net Worth for Gen X: Are You Poor, Middle Class, Upper Middle Class or Rich?
As a generational cohort, annual incomes among Gen X in the United States are all over the map, especially when compared to the older baby boomers or the younger generations of millennials and Gen Z. The gap between wealthy and poor Gen Xers (those born from 1965 to 1980) throughout American households shows quite the discrepancy in savings account levels, credit card debt and work-life balance. Be Aware: For You: What does set Gen X apart, aside from possibly being the last people to benefit from Social Security, is the gap between how much they want to save and how much they have saved. That gap lays out stark differences in their income levels — let's explore further below. With Gen X next up on the retirement chopping block, many non-retired Gen Xers and financial experts alike believe it will take between $1 and $1.5 million in savings to retire comfortably. This is unfortunate as the average savings for someone of this generation is only $150,000. Gen X, seemingly more so than baby boomers and millennials, has been forced to contend with skyrocketing costs of living, expensive education attainment and even upper-income households living paycheck to paycheck. For those living in a middle-class household with only about 10% of the recommended savings in the bank, this could mean severe delays in retirement planning or a huge downshift in lifestyle expectations. Find Out: It's not that all Gen Xers are struggling to meet their savings goals. The median net worth of Americans between the ages of 45 and 54 is $247,000, according to Federal Reserve data. Those between the ages of 55 and 64 have a median net worth of $364,000. One thing those figures tell you is that a lot of Gen Xers are worth much more than the median and a lot are worth much less. To get an idea of the typical earnings for a Gen Xer, a good place to start is the U.S. Bureau of Labor Statistics data. Here is what the BLS's latest report found: The median weekly earnings for all 119.2 million full-time wage and salary workers in the U.S. were $1,139 in 2024, or $59,228 a year. The median weekly earnings for men ages 45 to 54 were $1,442 a week or $79,984 a year. The median weekly earnings for women ages 45 to 54 were $1,156 a week or $60,112 a year. If you are a Gen Xer and your annual income ranges between about $60,000 and $80,000, you're probably somewhere in the middle-income category of American society. Defining 'upper-middle class' is a little trickier because there is no set measurement everyone agrees on. As USA Today reported, the upper-middle class is often defined as the top 15% to 20% of earners. However, some financial experts say those percentages should be lower. Whether you have lived in middle-income households or consider yourself part of the American upper-middle class, your social class may not get you as far as you think. Here are some income estimates from the Pew Research Center: Lower class: Incomes at or below $30,000 Lower-middle class: Incomes between $30,001 and $58,020 Middle class: Incomes between $58,021 and $94,000 Upper-middle class: Incomes between $94,001 and $153,000 Upper class: Incomes greater than $153,000 Top 1%: Incomes of at least $600,000 Those categories do a good job of giving you a general idea of where Gen X and others fall on the income scale, but they don't capture what it means to be 'poor' or 'rich.' Earning $30,000 a year makes you poor in some areas and lower-middle in others. Similarly, earning $153,000 a year does not really make you 'rich,' no matter where you live. The U.S. federal poverty level for 2025 can also be a good range of where your income will land you in the long term. Here are some estimates: 1-person household: $15,650 2-person household: $21,150 3-person household: $26,650 4-person household: $32,150 Each additional person after eight: Add $5,500 As for being rich, it depends on where you live. As GOBankingRates last reported, the income needed to be in the top 5% of earners ranges from a low of $308,523 a year in Mississippi to a high of $562,886 a year in New Jersey. Again, these figures apply to all generations, including Gen X. The bottom line is that, unlike for previous generations like boomers or even the silent generation, simple ingredients of the American dream such as affordable higher levels of education and real estate, along with retiring at a reasonable age, seem to now be allusive for Gen X. They are the first wave in the attack against the middle class. Each generation has its own relationship with money and it seems to present like the following: Boomers: It's all about the money. Gen X: Is it all about the money? Millennials: Where is the money? Gen Z: What is money? More From GOBankingRates 10 Genius Things Warren Buffett Says To Do With Your Money 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on Net Worth for Gen X: Are You Poor, Middle Class, Upper Middle Class or Rich? Sign in to access your portfolio
Entrepreneur
27-05-2025
- Business
- Entrepreneur
BBC Expands Coverage of Personal Finance Topics
BBC Expands Coverage of Personal Finance Topics The British Broadcasting Corporation (BBC) has broadened its content offerings in the personal finance sector, aiming to provide viewers and readers with more... This story originally appeared on Due BBC Expands Coverage of Personal Finance Topics The British Broadcasting Corporation (BBC) has broadened its content offerings in the personal finance sector, aiming to provide viewers and readers with more comprehensive financial information and guidance. This expansion comes at a time when many UK households face economic pressures from rising inflation, increasing interest rates, and ongoing cost-of-living challenges. The BBC's decision to enhance its personal finance coverage reflects growing public demand for reliable financial information from trusted sources. New Content Initiatives The BBC's expanded personal finance coverage includes a variety of formats across multiple platforms. Television programs, radio segments, online articles, and podcasts now feature more in-depth analysis of financial topics relevant to everyday consumers. Financial experts and journalists are providing insights on subjects ranging from mortgage options and pension planning to investment strategies and budget management. The content aims to be accessible to audiences with varying levels of financial literacy. The public broadcaster has also introduced specialized segments focusing on timely financial concerns, such as: Strategies for managing household budgets during inflation Understanding changes to tax regulations Navigating the housing market amid fluctuating interest rates Planning for retirement in uncertain economic conditions Educational Focus A significant portion of the new content takes an educational approach, helping viewers develop better financial habits and make more informed decisions. This initiative appears to be part of a broader effort to improve financial literacy across the UK. 'Financial education is essential in today's complex economic environment,' noted one financial analyst familiar with the BBC's programming. 'Having a trusted source like the BBC expand their coverage helps people access reliable information without the sales pressure that often comes from commercial sources.' The BBC's personal finance content maintains the organization's commitment to impartial reporting, presenting various perspectives on financial matters without promoting specific products or services. Digital Accessibility Much of the new personal finance content is available through the BBC's digital platforms, making it accessible to audiences who primarily consume media online. The BBC website now features a more prominent personal finance section, while the BBC Sounds app includes dedicated financial podcasts. Social media channels are being utilized to distribute bite-sized financial tips and direct users to more comprehensive resources. This multi-platform approach helps reach diverse demographic groups, including younger audiences who may be encountering financial planning challenges for the first time. The BBC's investment in personal finance content comes as other media organizations have also recognized growing public interest in financial guidance. However, the BBC's position as a public service broadcaster gives it a unique role in providing information that serves the public interest without commercial considerations. As economic uncertainty continues to affect households across the UK, the BBC's expanded personal finance coverage aims to equip audiences with the knowledge needed to navigate financial challenges and make sound decisions about their economic futures. The post BBC Expands Coverage of Personal Finance Topics appeared first on Due.
CBS News
26-05-2025
- Business
- CBS News
How to escape the payday loan debt cycle, according to experts
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. There are strategic steps to follow to escape a payday loan debt cycle. RabiaPayday loans can trap millions of people in expensive debt cycles, even as economic conditions improve. With many Americans living paycheck to paycheck, these high-cost loans offer quick cash when emergencies strike. But interest rates can exceed be exorbitant and fees make full repayment nearly impossible. Unfortunately, the pattern works by design: borrowers can't repay in full, so they roll over loans or take new ones to cover old debt. This isn't necessarily personal failure — it's a structural problem built into the payday lending system. If you're caught in this situation, breaking free requires strategic action and expert guidance. Below, financial experts share actionable ways to pay off your pay day loan debt — along with the benefits and drawbacks of each approach. Start exploring your debt relief options here. How to escape the payday loan debt cycle, according to experts Christopher L. Stroup, a certified financial planner and founder of Silicon Beach Financial, recommends starting with negotiation. "Many borrowers don't realize that some payday lenders will agree to a structured repayment plan if you explain your financial hardship," he says. "While there's no guarantee they'll say yes, it's a low-risk move that can stop the debt from snowballing." Beyond negotiating with your lender, experts suggest taking these steps: Work with a professional who deals with debt "[Consult] a professional [at] a credit counseling agency or debt solutions company," Howard Dvorkin, chairman of says. "They've seen the worst payday loan emergencies you could imagine, so they know how to deal with them." A qualified financial counselor can help you come up with money in your budget to escape the debt cycle. Andi Wrenn, founder of Coaching Capability and board member of the Association for Financial Counseling, Planning Education (AFCPE), regularly helps clients find hundreds of dollars per month in their spending without giving up enjoyable activities. She points to one client who went from overspending to paying all debts and saving money within three months of working together. While working with a professional costs money, Wrenn says clients usually find more savings than they pay in fees. Get started with a professional debt relief company today. Stop using high-interest loans Cutting access to expensive borrowing can help you get out of a payday loan debt cycle. Wrenn suggests trying the following alternatives: Ask your bank about a personal loan Request a reduced interest rate on existing credit cards Transfer high-interest debt to lower-rate cards Ask family members for help Sell unused items around your house These strategies can make a positive impact quickly. For example, Wrenn points to one couple who raised $750 in one month by selling items online and hosting a garage sale. The downside to these approaches varies. Personal loans require good credit, family loans can strain relationships and selling belongings takes time and effort. But even modest progress helps break your dependence on payday lenders. Build a small emergency buffer with a side gig "Building a small emergency buffer — just $250 to start — can prevent future reliance on payday lenders," Stroup emphasizes. The fastest way to build this buffer is through side gigs. Wrenn recommends focusing on services with minimal start-up costs. Dog walking, pet sitting, babysitting and tutoring are some worth considering. The main drawback of this pursuit is time, but you can capitalize on existing skills and work on your schedule. Explore debt consolidation options Debt consolidation combines several debts into one monthly payment at a much lower interest rate. Stroup recalls working with clients who refinanced a few payday loans into a single personal loan through a credit union, cutting rates from over 300% down to 11% to 18%. Qualifying for debt consolidation can be challenging, though. You may need good credit, a co-signer or collateral. Another concern is choosing the right debt consolidation organization. Wrenn warns that many charge fees to manage your debt, but sometimes make late payments. This can further hurt your already struggling credit score. Enroll in a debt management plan (DMP) A debt management plan (DMP) through a nonprofit counseling agency can be a lifeline when payday loans get overwhelming. According to Stroup, it consolidates unsecured debts into one monthly bill while reducing interest rates and late fees. DMPs aren't without consequences, however. Creditors close accounts you include in the plan, and you can't open new credit during the three to five-year timeline. This temporarily lowers your credit score. Dvorkin says this shouldn't be your primary concern, though. At this stage, "worry more about debt and less about credit score," he advises. Because without debt help, it's likely your score will plummet further. The bottom line Overcoming payday loan debt is within reach, but you need to change the spending habits that created the problem in the first place. Wrenn encourages looking at your wants versus needs and coming up with a plan for how to spend, save and eventually invest. It may also help to discuss debt relief options with a financial counselor, who can work with you to create a sustainable plan. Get started with a debt relief plan now.
