Dubai takes a big swing at crypto business, steps up game

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Updated 18 April 2022

Dubai takes a big swing at crypto business, steps up game

Dubai takes a big swing at crypto business, steps up game
  • Binance Holdings to offer its products to investors in the first phase of its operation in the city

DUBAI:  Binance Holdings, the largest crypto exchange by trading volume, will offer its products to top institutions and accredited investors in the first phase of its operation in Dubai, the regional head of MENA, Richard Teng, told Arab News.

“We want to become the platform that builds tools to bring about faster crypto adoption and improve freedom of money in the region,” said Teng while adding that the company plans to serve a larger clientele by offering more products.

The prospects seem brighter with the crypto exchange last week receiving its official license from Dubai’s Virtual Asset Regulatory Authority. The company can now operate and expand in the region under the emirate’s ‘test-adapt-scale’ model for digital asset markets.




Richard Teng (Supplied)

“It is an extremely innovative approach from the Dubai government. It recognizes that crypto is quite different from securities, digital tokens, and commodities and proposes a dedicated framework that can serve different parts of the value chain, manage risks and support innovation,” he added.

Teng’s beaming confidence is not based on his hardwired optimism. He has spent 20 years in the regulatory space and understands the region well. He was the CEO of Abu Dhabi Global Market for six years before taking over the mantle of the regional head of one of the world’s largest crypto platforms.

“Working with the Dubai government you realize how well the country supports innovation, crypto adoption, and blockchain development, which is helpful since these factors will become the pillars of several segments of the economy in the future,” said Teng.

FASTFACT

Binance is working toward a crypto-friendly ecosystem that is inclusive, transparent and secure.

Last December, the company signed a partnership deal with Dubai World Trade Centre Authority.

It is also hiring 100 positions in the UAE to keep up the momentum in the region.

Cryptocurrencies have been in the news recently for their unprecedented role in the Russia-Ukraine war. The Ukrainian government raised millions of dollars to fund its fight against the invasion, turning the spotlight on the tokens. As long you had Internet and a computing device, you could transact.

“Cryptocurrencies will be the future of finance and financial services. They are playing an important role in cross-border payments,” said Teng while adding that it currently poses a considerable challenge because the fees for making payments across borders are incredibly high.

We want to become the platform that builds tools to bring about faster crypto adoption and improve freedom of money in the region

Richard Teng, head of Middle East, Binance

However, Binance is working toward a crypto-friendly ecosystem that is inclusive, transparent and secure. Last December, the company signed a partnership deal with Dubai World Trade Center Authority to help it set up and regulate an international virtual asset ecosystem, making an excellent case for a public-private partnership in the digital space. It is also hiring 100 positions in the UAE to keep up the momentum in the region.

“We are working closely with institutions to make sure the next generation is ready for crypto, blockchain and tokenomics,” he said. The company will soon be introducing training programs in the region on the markets and how to trade responsibly.

Also, as part of its effort to instill faith in the currency, Binance runs an emergency insurance fund that protects customers, called Secure Asset Fund for Users, or SAFU. Launched in 2018, the fund now stands at over $1 billion. If any user suffers a loss due to illegal activity such as hacking, the company compensates for the loss.

Yet, there is a fair amount of skepticism among potential investors about the concept of a decentralized world of finance and its high volatility. It’s a matter of time when mature businesses and nations embrace the innate strengths of the crypto business and profit from it.


Global growth to hit three-decade low: World Bank  

Global growth to hit three-decade low: World Bank  
Updated 22 sec ago

Global growth to hit three-decade low: World Bank  

Global growth to hit three-decade low: World Bank  

RIYADH: The global economy is set for a “lost decade” according to the World Bank as it forecasts that economic growth is set to hit a 30-year low.

A report from the organization warns average global domestic product growth will drop to 2.2 percent a year between 2022 and 2030 – down from the 3.5 percent rate that prevailed in the first decade of this century.

According to its latest forecast, the decline for developing economies will be especially steep – with growth shrinking from 6 percent a year between 2000 and 2010 to 4 percent a year up until 2030.  

 “A lost decade could be in the making for the global economy. The ongoing decline in potential growth has serious implications for the world’s ability to tackle the expanding array of challenges unique to our times—stubborn poverty, diverging incomes, and climate change.” said the World Bank’s Chief Economist and Senior Vice President for Development Economics Indermit Gill.  

He added: “But this decline is reversible. The global economy’s speed limit can be raised—through policies that incentivize work, increase productivity, and accelerate investment.” 

Analysts from the World Bank theorized that if the world embraced sustainable and growth-oriented policies, potential GDP growth could be raised by 0.7 percentage points to an annual average rate of 2.9 percent. 

“The global economy’s “speed limit”— the maximum long-term rate at which it can grow without sparking inflation — is set to slump to a three-decade low by 2030. An ambitious policy push is needed to boost productivity and the labor supply, ramp up investment and trade, and harness the potential of the services sector,” stated the report.  

Aligning monetary, fiscal, and financial frameworks is the first World Bank recommendation that could be used to moderate the fluctuations of business cycles, therefore instilling investor confidence. 

The report also suggested ramping up investments, cutting trade costs and increasing labor force participation as ways to enhance potential growth in the national economies.  

Additionally, capitalizing on the services sector could become the new engine of economic growth.

The World Bank concluded: “International economic integration has helped to drive global prosperity for more than two decades since 1990, but it has faltered. Restoring it is essential to catalyze trade, accelerate climate action, and mobilize the investments needed to achieve the Sustainable Development Goals.” 


Bahrain GDP grows close to 5% in 2022; fastest pace in almost a decade 

Bahrain GDP grows close to 5% in 2022; fastest pace in almost a decade 
Updated 28 March 2023

Bahrain GDP grows close to 5% in 2022; fastest pace in almost a decade 

Bahrain GDP grows close to 5% in 2022; fastest pace in almost a decade 

RIYADH: Bahrain posted a real gross domestic product growth rate of 4.9 percent in 2022, the highest economic growth pace since 2013, its Ministry of Finance and National Economy announced in its annual economic report.  

The report also highlighted that Bahrain is steadily progressing in its economic diversification journey, as its non-oil real GDP witnessed 6.2 percent growth in 2022, the highest since 2012.  

The growth of Bahrain’s non-oil GDP in 2022 also surpassed the 5 percent annual target set by its economic recovery plan.  

Bahrain launched its multi-year five-pillar economic recovery plan in 2021, aiming to enhance the strength of the Kingdom’s economy, its long-term competitiveness, and its recovery post-pandemic.  

“The positive results posted today are the cumulation of many years of hard work and careful planning by the Government of Bahrain to lay the foundations for a sustainable, diverse, and prosperous economy,” said Bahrain’s Minister of Finance and National Economy Shaikh Salman bin Khalifa Al Khalifa. 

According to him, central to these efforts has been the comprehensive Economic Recovery Plan, launched in 2021, “which is an investment in our nation’s people, our businesses, and the future of Bahrain.” 

The program is touted to be Bahrain’s largest-ever reform program, with over $30 billion catalyzed for investment and significant labor market and regulatory reforms to improve the ease of doing business. 

Al Khalifa added: “These results are a statement of our intent to secure a balanced budget by 2024, provide long-term fiscal sustainability and create an economy that delivers for everyone across the Kingdom.”  

The annual report also revealed that Bahrain reported a drop in deficit to GDP to -1.1 percent, a drop in debt to GDP to 100 percent, and a primary surplus of 3.3 percent.  

In October 2022, speaking exclusively to Arab News, Khalid Humaidan, CEO of Bahrain’s Economic Development Board, said that the country is benefitting from a high level of foreign direct investment, securing $921 million in the first nine months of 2022.  

He also added that the board has identified six priority sectors which include manufacturing, logistics, tourism, information and communications technology, financial services, and oil and gas.  

“We think if we focus on our priority projects, our priority sectors will be achieved, and we will be able to achieve other goals that we have in the economic recovery plan. Fiscal balance by the end of 2024 — we’ve committed to that target as a government, and that will happen by growing the non-oil GDP in the country,” said Humaidan.  


Alibaba to split into six units, explore IPOs

Alibaba to split into six units, explore IPOs
Updated 28 March 2023

Alibaba to split into six units, explore IPOs

Alibaba to split into six units, explore IPOs

RIYADH: Alibaba Group Holding Ltd is planning to split its business into six main units covering e-commerce, media and the cloud, the company said on Tuesday, adding that each of the units will explore fundraising or initial public offerings.

US-listed shares of Alibaba rose 3.5 percent in trading before the bell.

The six units will include Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group.

Each of the six will be managed by its own CEO and board of directors.

Daniel Zhang will continue to serve as chairman and CEO of Alibaba Group, which will follow a holding company management model, the company said in a statement.

Zhang will also serve as CEO of Cloud Intelligence Group, as previously announced.


UAE signs deal with Israel to reduce tariffs

UAE signs deal with Israel to reduce tariffs
Updated 28 March 2023

UAE signs deal with Israel to reduce tariffs

UAE signs deal with Israel to reduce tariffs

RIYADH: The UAE and Israel have inked a custom cooperation deal to activate the pledge they signed in May 2022 to reduce tariffs on 96 percent of goods traded between the countries. 

The agreement aims to enable mutual assistance in ensuring the proper application of customs laws by accurately assessing customs and other tax fees on exports and imports as well as adjusting customs data. 

The new customs deal will take effect from April 1 and will permit Israeli companies to compete for government tenders in the UAE. 

Mohamed Al Khaja, the UAE’s Ambassador to Israel, and Eli Cohen, the Israeli Minister of Foreign Affairs, signed the agreement between the two countries in the presence of the country’s Prime Minister Benjamin Netanyahu at the Prime Minister’s office in Jerusalem. 

“The Comprehensive Economic Partnership Agreement between the UAE and Israel will serve as a major engine to strengthen economic and commercial ties between the UAE and Israel. We expect the agreement to produce significant mutual economic benefits,” Al Khaja said. 

The comprehensive agreement signed in May aimed to align customs between both countries and is expected to increase bilateral trade to more than $10 billion in the next five years. 

In 2022, the value of bilateral trade between Israel and the UAE grew to more than $2.5 billion –  an increase of more than 100 percent on the $1.2 billion in trade between the two countries in 2021, according to Israeli figures. 

The agreement includes food, medicine, diamonds, jewelry, fertilizers, and chemicals with most duties to be removed immediately and others to be phased out over three to five years. 

The trade deal with the UAE was Israel’s first with an Arab country, which comes at a time of heightened tensions in the region over the actions of Israel’s latest government, which has overseen a dramatic rise in Israeli-Palestinian violence with multiple Israeli incursions into Jenin and Nablus


Egypt signs $335.5m agreement with Japan International Cooperation Agency 

Egypt signs $335.5m agreement with Japan International Cooperation Agency 
Updated 28 March 2023

Egypt signs $335.5m agreement with Japan International Cooperation Agency 

Egypt signs $335.5m agreement with Japan International Cooperation Agency 

DUBAI: Egypt signed a 44 billion Japanese yen ($335.5 million) development financing agreement with Japan International Cooperation Agency, to support Egypt's efforts to achieve comprehensive health coverage, a finance ministry statement said on Tuesday.