Abu Dhabi Global Market, UAE Exchange partner to promote fintech

Richard Teng, the chief executive of the ADGM’s regulator, the Financial Services Regulatory Authority, left, with Promoth Manghat, the chief executive of UAE Exchange. (Courtesy UAE Exchange)
Updated 12 August 2017
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Abu Dhabi Global Market, UAE Exchange partner to promote fintech

ABU DHABI: Abu Dhabi Global Market, the emirate’s global financial free zone, has partnered with UAE Exchange to help startups engaged in the remittance, foreign exchange and payments business develop and deploy financial technology.
UAE Exchange and ADGM will jointly implement innovation programs emerging payments, blockchain and distributed ledgers, artificial intelligence, and P2P solutions, a statement said.
ADGM’s Regulatory Laboratory — or RegLab — is the Middle East region’s first fintech incubator where startups can benefit from a more flexible regulatory regime during the early stages of their operation, before they go on to full regulatory membership at the Abu Dhabi financial free zone.
“This strategic partnership dovetails well with ADGM’s vision to establish a vibrant and well-functioning fintech ecosystem that bolsters innovation, facilitates investment flows and supports greater growth of financial services activities,” Richard Teng, the chief executive of the ADGM regulator Financial Services Regulatory Authority, said in the statement.
“The collaboration with UAE Exchange will create a feedback loop for ADGM as a financial services regulator to fine-tune and enhance its rules and regulatory approach to financial innovation.”
“Collaboration between established financial services providers and fintech start-ups is necessary to build a sustainable innovation ecosystem. Our partnership with ADGM will nurture local fintech innovation through incubator, accelerator and academic programs,” said Promoth Manghat, the chief executive UAE Exchange. “Such partnerships will add greater depth to the financial services industry, creating additional value for customers through digitally delivered services.”
The ADGM in May chose the first batch of fintech startups — from 11 applicants — to mentor under its RegLab program, with two of those in the list coming from the UAE.
The UAE companies, Now Money, which uses mobile technology to help low-income migrant workers to access banking and remittances services, and Titanium Escrow, an automated escrow services company that seeks to bring stability to the cash cycle of small businesses, joined India’s CapitaWorld and Rubique as well as Finalytix, a US robo-advisory platform.


Etihad proposes to invest in Jet Airways at 49% discount

Updated 52 min 27 sec ago
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Etihad proposes to invest in Jet Airways at 49% discount

  • The 25-year-old Indian airline has been roiled by financial difficulties, racking up a pile of dues to pilots, lessors and vendors
  • Jet will not be able to continue funding operations beyond the next week and Etihad is willing to inject $35 million if some conditions are met

Etihad Airways has offered to pick up shares of debt-laden Indian carrier Jet Airways Ltd. at a 49 percent discount and to immediately release $35 million after certain conditions are met, CNBC-TV18 reported on Wednesday.
Shares of Jet Airways, in which Etihad already owns a 24 percent stake, tumbled as much as 7.5 percent to 271.75 rupees ($3.83) in their biggest intraday drop since early December.
The Abu Dhabi carrier has offered 150 rupees for each Jet share, CNBC-TV18 said, citing a letter from Etihad’s CEO.
Tony Douglas has written to the State Bank of India (SBI) , Jet’s biggest lender, on the restructuring plan for the Indian airline, the report added.
The 25-year-old Indian airline has been roiled by financial difficulties, racking up a pile of dues to pilots, lessors and vendors, at a time when intense pricing competition, a weak rupee and rising fuel costs are weighing on the broader airline sector in the country.
Jet will not be able to continue funding operations beyond the next week and Etihad is willing to inject $35 million if some conditions are met, the CNBC-TV18 report cited Douglas as saying in his letter.
Jet and Etihad representatives are due to meet in Mumbai with lenders, led by SBI, on Wednesday to discuss the restructuring proposal that involves Etihad increasing its stake, a source with knowledge of the matter told Reuters on condition of anonymity.
Etihad wants Jet’s founder and Chairman, 69-year-old Naresh Goyal to step down from the board and his stake to be slashed to 22 percent from 51 percent, according to CNBC-TV18.
Goyal’s penchant for control, according to people who have worked with him, has emerged as a major obstacle as the airline tries to negotiate a rescue deal, Reuters reported last month.
Etihad is also seeking an exemption from the market regulator on preference pricing and open offer guidelines to invest more for the bailout, the report added.
Under India’s capital markets regulations, Etihad is required to make an open offer to shareholders for a majority of the shares once its stake goes past 25 percent, unless it obtains a rare exemption from the market regulator.
India Ministry of Civil Aviation Secretary R N Choubey on Wednesday told reporters that the aviation ministry had not yet received an official request from Jet and Etihad for an exemption from an open offer.
Jet and Etihad were not immediately available for comment.