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Saudi fintech firm Raqamyah gets SAMA license to offer crowdlending solutions  

Saudi fintech firm Raqamyah gets SAMA license to offer crowdlending solutions  
In February 2021, Raqamyah secured $2.3 million in a funding round led by Impact46 which was used to comply with SAMA’s licensing requirements. (Supplied)
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Updated 02 February 2023
Nour El-Shaeri  

Saudi fintech firm Raqamyah gets SAMA license to offer crowdlending solutions  

Saudi fintech firm Raqamyah gets SAMA license to offer crowdlending solutions  
Updated 02 February 2023
Nour El-Shaeri  

CAIRO: Riyadh-based fintech firm Raqamyah has received a license from the Saudi Central Bank, also known as SAMA, to offer its debt-based crowdlending solutions to small and medium enterprises.  

The license was granted after the company successfully passed testing its solutions within the SAMA’s regulatory sandbox, an experimental environment dedicated to innovative financial products and services in Saudi Arabia.  

Founded in 2017, Raqamyah enables SMEs to access Shariah-compliant financing of up to $1.3 million from individual and institutional lenders through its online platform and has been part of SAMA’s regulatory sandbox since 2019.  

SMEs apply for financing applications with the firm and receive approval within three working days to list their business on the platform where lenders start funding the request.  

The financers then receive monthly payments and profits as the businesses make their repayments. The platform also offers lenders to automate their lending investments so whenever there’s an opportunity that fits the criteria.  

In February 2021, Raqamyah secured $2.3 million in a funding round led by Impact46 which was used to comply with SAMA’s licensing requirements. 

The bank said its licensing of fintech companies contributes to achieving the objectives of the Financial Development Sector strategy aligned with Vision 2030.   

“SAMA reiterates its commitment to support the finance sector, increase the efficacy and flexibility of financial transactions and enable innovation in financial services to promote financial inclusion in the Kingdom and provide easy and secure access to financial services to all segments of society,” it said in a press release. 

Last month, the central bank issued licenses to two fintech firms — Forus and Tameed — both specializing in debt-based crowdfunding.  

Also earlier in January, the central bank announced the launch of a new lab to allow businesses to test their products against an established framework.   

The service is a new concept that enables consumers of financial institutions to securely share their data with a third-party provider, facilitating innovative services and products. 

Topics: Saudi fintech SME Investment crowdlending

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Egypt’s central bank raises interest rates by 200 bps to tame inflation

Egypt’s central bank raises interest rates by 200 bps to tame inflation
Updated 13 sec ago
Reuters

Egypt’s central bank raises interest rates by 200 bps to tame inflation

Egypt’s central bank raises interest rates by 200 bps to tame inflation
Updated 13 sec ago
Reuters

CARIO : The Central Bank of Egypt has raised its overnight interest rates by 200 basis points following a meeting of its Monetary Policy Committee, saying it aimed to bring high inflation into check, according to Reuters.

The bank set the lending rate at 19.25 percent and the deposit rate at 18.25 percent.

The median forecast in a Reuters poll of 15 analysts on Monday was for the bank to increase rates by 200 bps as it struggled to control surging inflation. Seven of the analysts expected an increase of 300 bps.

In February, headline inflation soared to a five-and-a-half-year high of 30.9 percent from 25.8 percent in January. Core inflation in February rose to a record high of 40.3 percent.

“The MPC stresses that achieving a tight monetary stance is a necessary condition to attain the CBE’s upcoming inflation targets of 7 percent (± 2 percentage points) on average by 2024 Q4 and 5 percent (± 2 percentage points) on average by 2026 Q4,” it said in a statement.

Domestic supply chain disruptions, a depreciating Egyptian pound, demand side pressures “as evidenced by developments in real economic activity relative to potential capacity” and high broad money growth outturns fueled inflation, the statement said.

Since last March, the Egyptian pound’s official exchange rate has fallen by almost half, to around 30.87 pounds to the dollar, after Russia’s invasion of Ukraine exposed vulnerabilities in the country’s finances, prompting a foreign exodus from its treasuries market.

On the black market it has sunk to between 35 and 36 to the dollar.

M2 money supply, which in Egypt includes deposits in foreign currency, grew by 31.6 percent in January and was up 31.5 percent year-on-year in February.

At its last meeting on Feb. 2, the central bank left interest rates steady, saying 800 bps in rate hikes put in place over the previous year would help to tame inflation, which in December had accelerated to a five-year high of 21.3 percent.

The MPC statement said gross domestic product had slipped to 3.9 percent in the fourth quarter of 2022 from 4.4 percent in the third quarter.

“Real GDP growth is expected to soften in fiscal year 2022/23 compared to the previous fiscal year, before picking up thereafter.” Egypt’s fiscal year ends on June 30.
 

Topics: Egypt central bank Inflation

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SABB awarded ‘Best Private Bank in Saudi Arabia’ gong by Euromoney

SABB awarded ‘Best Private Bank in Saudi Arabia’ gong by Euromoney
Updated 9 min 35 sec ago
Arab News

SABB awarded ‘Best Private Bank in Saudi Arabia’ gong by Euromoney

SABB awarded ‘Best Private Bank in Saudi Arabia’ gong by Euromoney
Updated 9 min 35 sec ago
Arab News

RIYADH: The Saudi British Bank has been named “Best Private Bank in Saudi Arabia” for 2023 by Euromoney in recognition of its services and the investment opportunities it provides.

SABB was awarded the gong at the Private Banking Awards 2023 ceremony, with the decision based on input from industry insiders and independent research which evaluates a series of performance metrics and other factors about private banks.

Reflecting on the win, Bandar Al Gheshayan, the bank’s chief wealth & personal banking officer, said: “Having SABB Private Bank awarded by Euromoney as the Best Private Bank in Saudi Arabia recognizes our ongoing efforts to partner with global entrepreneurs and high-net-worth Saudi Arabian and Expatriate nationals as they manage and grow their wealth.

“For over 40 years, SABB has proudly supported the growth of the financial sector in the Kingdom and offered assistance in bringing innovative banking and investment solutions to our clients.”

SABB was also named Saudi Arabia’s Best Private Bank for environmental, social, and governance investing.

Across the region, BNP Paribas Wealth Management was named the best private bank in the Middle East, with one judge commenting that the institution “appears to have a clear roadmap and vision.” 

“A large focus has also been put on sustainability (and the responsible investment offering is now broad and solid) as well as on digital,” according to comments released after the award was announced.

The awards come just a week after Euromoney crowned SABB as the “Best Trade Finance Service Provider” and “Market Leader” in Saudi Arabia for 2023 – the latter for the seventh successive year.

Those gongs were based on a survey by Euromoney, where Saudi corporates have recognized SABB as the market leader within the trade finance space. 

The survey takes into consideration corporates’ view on their banks’ ability in providing trade finance products, solutions, quality of services and market share.

Topics: Saudi British Bank (SABB)

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China should be global nexus for chemical industry sustainability, says SABIC CEO

China should be global nexus for chemical industry sustainability, says SABIC CEO
Updated 31 March 2023
Arab News

China should be global nexus for chemical industry sustainability, says SABIC CEO

China should be global nexus for chemical industry sustainability, says SABIC CEO
Updated 31 March 2023
Arab News

RIYADH: China should be at the center of global collaboration efforts to boost sustainable economic growth in the chemicals industry, the head of Saudi Basic Industries Corp. has insisted.

Speaking during the Boao Forum for Asia Conference, SABIC CEO Abdulrahman Al-Fageeh said the economic powerhouse was perfectly placed to help foster closer working between countries and companies in the sector.

He called on the international community to strengthen cross-regional and cross-sector collaboration to deliver growth that fit in with the global push for environmentally-friendly policies..

 Following Chinese Premier Li Qiang’s keynote speech at the event’s opening plenary, Al-Fageeh spoke as a representative of the international business community and said: “For sustainable economic growth to flourish globally, close international collaboration will be required – not only between companies but also between countries linked by value chains. 

“Being the world’s largest market for chemical products, China is the obvious place to establish a nexus of global sustainable economic growth. 

“As SABIC expands its local presence, it will focus on investing in the development of technology.

“Innovation-driven economic growth can spread widely under the strategic alignment between Saudi Arabia’s Vision 2030 and China’s Belt and Road Initiative.”

In addition to his comments at the opening ceremony, Al-Fageeh also participated in a panel discussion on ‘Carbon Neutrality: Dilemma and Way Out’ with representatives from financial institutions, businesses, and government organizations. 

During the discussion, the CEO underlined the importance of collaboration across the value chain in the quest for global carbon neutrality. 

He also noted that companies should be focusing on the long-term economic value of their carbon-reduction-related projects to ensure that they are sustainable.

SABIC’s used its exhibition booth at the Forum to showcase its solutions to accelerate the circular carbon economy, increase energy efficiency, and help customers mitigate their environmental footprint.

Relations between China and Saudi Arabia have been growing in recent years, and in December 2022 President Xi Jinping made a three-day state visit to the Kingdom.

Xi and his delegation held talks with Saudi Arabia’s King Salman, Crown Prince Mohammed bin Salman, and the heads of key ministries, resulting in 35 memorandums of understanding and deals worth $30 billion.

Topics: Saudi Basic Industries Corp. (SABIC) China

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Oil Updates – Prices down marginally amid uncertainty over imminent US economic data

Oil Updates – Prices down marginally amid uncertainty over imminent US economic data
Updated 31 March 2023
Reuters

Oil Updates – Prices down marginally amid uncertainty over imminent US economic data

Oil Updates – Prices down marginally amid uncertainty over imminent US economic data
Updated 31 March 2023
Reuters

BEIJING: Oil prices were very slightly down in Asian morning trade on Friday as bullish sentiment about Chinese demand and potential Middle Eastern supply disruptions was tempered by uncertainty over US economic data on Friday, according to Reuters.

Brent futures, which have risen nearly 6 percent this week, were down 19 cents, or -0.24 percent, at $79.08 a barrel at 0415 GMT. US West Texas Intermediate crude fell by 1 cent, or -0.01 percent, to $74.36, having gained about 8 percent this week.

Markets are now waiting for US spending and inflation data on Friday and the resulting impact on the US dollar.

“The market may maintain its rebound if today’s US PCE offers positive signals to the markets that US inflation is expected to cool further,” said Tina Teng, an analyst at CMC Markets in Auckland.

“Disappointing data may cause concerns about Fed policy again and cap the recent gains,” she added.

Prices have ticked up this week over optimism surrounding China’s economic recovery. China’s manufacturing activity rose in March at a slower pace compared with a record-breaking expansion in February, but still exceeded expectations by economists in a Reuters poll.

Industrial activity in China has become a key determinant of prices in recent weeks after its ending of coronavirus-related restrictions, amid weaker global demand.

Oil prices are set to cap a second straight week of gains after the largest bank failure after the 2008 financial crisis spooked traders and roiled markets. Worries about a full-blown global banking crisis have abated after two banks, in the US and Europe, were rescued.

Prices rose more than 1 percent on Thursday because of lower US crude stockpiles and a halt to exports from Iraq’s Kurdistan region, offseting pressure from a smaller-than-expected cut to Russian supplies.

Producers have shut in or reduced output at several oilfields in the semi-autonomous Kurdistan region of northern Iraq following a halt to the northern export pipeline. More outages are on the horizon.

The US Energy Information Administration said US crude oil stockpiles fell unexpectedly in the week to March 24 to a two-year low.
 

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FII Priority: Agricultural production needs to increase by 60 percent to feed projected 2050 population  

FII Priority: Agricultural production needs to increase by 60 percent to feed projected 2050 population  
Updated 31 March 2023
Arab News

FII Priority: Agricultural production needs to increase by 60 percent to feed projected 2050 population  

FII Priority: Agricultural production needs to increase by 60 percent to feed projected 2050 population  
  • Average price of a food basket has increased 66 percent in the US and 3,000 percent in Lebanon in the past three years 
Updated 31 March 2023
Arab News

MIAMI: “What we have right now is the confluence of the currency crisis, a debt crisis and a food crisis,” said Sara Menker, CEO of Gro Intelligence, a data and analytics company focused on food security and climate change, at the FII Priority conference on Thursday.

COVID-19, the Russia-Ukraine war and droughts in South America, among other factors, had disrupted supply chains, trade flows and agricultural production in the past three years, Menker said.

Consequently, the price of a basket of food had risen dramatically — 66 percent in the US, 2,000 percent in Sudan and 3,000 percent in Lebanon.

At the same time, “many countries have issued an unprecedented amount of foreign currency-denominated debt that they have to pay in US dollars, which are the same dollars they have to use to import their food, which has been devalued,” she said.

The three primary drivers of food insecurity and chronic malnutrition across the globe were climate, conflict and economic instability, said Ertharin Cousin, CEO and managing director of Food Systems for the Future, a nutrition impact investment fund.

Although there was a sufficient humanitarian response to the food security challenge, there was a “paucity of investment” in the adaptation of agriculture required to support a sustainable transformation of the food system, which in turn could support the environment and human health, and generate the economic return needed for everyone in the food sector, Cousin said.

For Gabrielle Rubenstein, co-founder and managing partner of Manna Tree, a global food supply chain private equity firm, it was the opposite case.

“I’m here to tell you that we have just announced that we’ve raised 640 million over four and a half years — that is the largest growth equity player in the world,” she said.

“When you look at what food supply chain and food security means, it doesn’t mean any more foreign direct investment. What it means is profitable business models that are your standard private equity firms that have revenue and that, more importantly, the top line growth is growing,” she said.

Yet, there are places where capital did not flow because investors considered those places too risky, Cousin argued.

“The challenge is that the risk lens that we use has limited the flowing of capital to certain geographies and certain entrepreneurs, particularly in the asset classes of food and agriculture.”

Africa, for example, was considered risky by investors who chose to see it as one continent instead of 54 countries, each with a different risk ratio, Cousin said.

It is not just the flow of capital that is debilitating food security globally.

As things stood, the inherent cost of capital was mispriced and needed to be driven down, Menker said. “The minute we do that it will unlock so much innovation, different types of return profiles and opportunities.”

Current food systems were not receiving enough money to undergo the transformation necessary to feed the projected population by 2050, especially when combined with climate disruption, she said.

Agricultural production would need to grow by about 60 percent to feed the population projected for 2050, Cousin said.

It was also important to distinguish food commodities from nutritious food, Menker said. “Yes, we do grow enough commodities, (but) we don’t grow enough nutritious food.”

Cousin concluded: “We don’t have the appropriate subsidies that support the regenerative production of nutritious food. That’s the opportunity that is in front of us if we really want to not only feed the world but nourish the world.”

Topics: FII Priority Conference

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