AN ITP MEDIA GROUP PUBLICATION Mastercard’s J.K. Khalil on driving payment innovation and fuelling fi nancial inclusion in the region INNOVATION AND INCLUSION AN ITP MMMMMMMMMMMMEEEDIAEEDIAEDIAEDIAEDIAEDIADIADIADDIADDIAEDEDIADIADIADIADIAEDIAEDIAEDIADIAEEDIAEDIADIAEDIADIDIADIEDIAAEDIAEEDIADDEDIIAAAAAAEAAADIAEDDIAIIAAEDIAAEDDIDDIADAAAAEAEDEDIADAEEEDIAAEEIAEEDAEIEEDDEEEIADDGGGRGRGGRGGRGRRROROGROROGRRORROROROROROOOOOOOOGRGRGGRRRROOOGGRGGGGRROROOOGRGGRGRROOOOGRGROOOOOOGRGRGGGGROOOOOGGOOGGROOOGOGGGRROOOOOOOOGOOGOGGGOUUUUUUUUUUUUPUPPPP P PPPPUUUUUPUUUUUPPUUUPPPUUUUUPUUUUUPPUUUUUP UPUUUUUUPPUPPPUUBLIUBLIUBLUBLIUBBUBLLCATCACATICACATITITONONONONNNN MAY 2022222224444444442222224444222244222422422224422244242444224222222422• V• V• V•V•V• V• VVV• VV• V• V• VV• • V• VVVVVV• •V•VV VVVVVVVVVVVVVVVVVVVVOL.OOL.OLOLOOL.OLOOLOLOOL.OL.1.1L.11.1OL.11.1.1OLOLOLOL.OOLL.1L1OOOLOOLLL.1L.1.1OOOOOL.OLL111OLL111OO.1L.11L.L1OL1OL.11OOOLLO..11•• • • ••IIII•••II•• IIIII••II•I•II•••III•I•••IIIISSSSSSSSSSSSUESUESSSUESUUESUUESESSSSSSSSSSSSESSSSSSSSSSSSSSSSSSESSSS0404040040400R"(V[R!CR!Rfi nancemiddleeast.comMay 2024 | 3 EDITOR’S LETTER W elcome to the latest edition of Finance Middle East! In this issue, our spotlight shines on the banking sector, with a particular focus on the rise of digital-only banks. These institutions are spearheading the future of banking, driven by shifting customer expectations for convenience, personalised services and the relentless march of technological innovation. Our cover story features an exclusive interview with J.K. Khalil, Division President, East Arabia, Mastercard, where he provides insights into the strategic utilisation of AI, fi ntech partnerships and inclusive fi nancial strategies. Additionally, Raed Bakhrji, CEO of THE RIG., shares the latest updates on the world’s fi rst destination inspired by off shore oil platforms. We also delve into the expansion of the largest GCC telecommunications companies into the payment space and explore how non-fungible tokens (NFTs) are reshaping the landscape of art creation, ownership and investment in the Middle East. Lastly, mark your calendars for the inaugural Finance Middle East Awards, scheduled for May 15. Join us for an evening of celebration and recognition as we honour excellence within the Middle East’s fi nance industry. Happy reading!fi nancemiddleeast.com4 | May 2024 CONTENTS 16 10 20 26 ARE TELCOS THE NEW FINTECHS? Why the largest GCC telecommunications companies are expanding into the payment space HOW ARE DIGITAL-ONLY BANKS TRANSFORMING THE FUTURE OF BANKING? Striking the balance between digital advancements and human touch FUELLING A DIGITAL FUTURE FOR EAST ARABIA J.K. Khalil, Division President, East Arabia, Mastercard, discusses leveraging AI, fi ntech partnerships and inclusive fi nancial strategies to build a robust digital economy GCC PRIVATE CAPITAL ON AN UPWARD TRAJECTORY Breaking down the positive outlook for private capital in the GCC 10 20 16 26fi nancemiddleeast.comMay 2024 | 5 34 28 42 48 PAYING IT FORWARD Experts examine the digital payments landscape in the Middle East THE ART OF NFTS How non-fungible tokens are shaping the future of art creation, ownership and investment in the Middle East CAN AI WIN THE BATTLE AGAINST FINANCIAL CRIME? Combatting fi nancial misconduct requires innovation, collaboration and responsible tech use THE RIG. Transforming off shore oil platforms into adventure tourism hotspots 28 42 48 34fi nancemiddleeast.com6 | May 2024 PO Box 500024, Dubai, UAE Tel: +971 4 444 3000 Web: www.itp.com Offices in Abu Dhabi, Dubai, London, Mumbai, Riyadh & Geneva ITP MEDIA GROUP CEO: Ali Akawi Managing Director: Alex Reeve EDITORIAL Group Editor:Kate-Lynne Wolmarans Tel: +971 4 444 3541 email: kate.wolmarans@itp.com Editor:Nivetha Dayanand Tel: +971 4 444 3887 email: nivetha.dayanand@itp.com Deputy Editor:Beatriz Valero Tel: +971 4 444 3413 email: beatriz.valero@itp.com Commercial Editor:Angitha Pradeep Tel: +971 4 444 3278 email: angitha.pradeep@itp.com ART Art Director: Amjad Ayche Art Editor: Tofi q Memon Contributing Designer: Muhammed Nahas ADVERTISING Group Commercial Director: Anup Nagpurkar Tel: +971 4 444 3573 email: anup.nagpurkar@itp.com Senior Commercial Manager: Ines Ben Rejeb Tel: +971 4 444 3223 email: ines.benrejeb@itp.com PHOTOGRAPHY Videographer:Muhammad Kaleem Senior Video Editor:Liju Cheruvathur Social Media & Production Manager: Andy Ruedas PRODUCTION Production Manager:Denny Kollannoor Production Coordinator: Manoj Mahadevan Senior Image Editor: Emmalyn Robles DISTRIBUTION Distribution Coordinator: Avinash Pereira Circulation Executive: Rajesh Pillai ITP GROUP CEO: Ali Akawi CFO: Toby Jay Spencer-Davies The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. PUBLISHED BY AND © 2024 ITP MEDIA GROUP FZ-LLC. NEWS fi nancemiddleeast.com8 | May 2024 A bu Dhabi-based investment and holding company ADQ has acquired a 49% stake in Plenary Group, an independent investor, developer and manager of public-private infrastructure projects headquartered in Australia. Under the terms of the agreement, ADQ will acquire all the shares currently owned by the Canadian pension fund Caisse de dépôt et placement du Québec. The Canadian company will, however, remain the major shareholder in Plenary’s separate Americas business. The funds obtained from the deal will be used to accelerate Plenary’s growth ambitions across its key markets in Australia, the Middle East, Asia, the UK and Europe, the company said in a statement. As part of the partnership, Plenary and ADQ will also establish a co-investment platform focused on public and social infrastructure opportunities in the Middle East and Central Asia. “This collaboration, marking our inaugural venture in Australia, underscores ADQ’s commitment to developing partnerships that complement our investment strategy, which aims to create long-term value and generate sustainable fi nancial returns,” said Hamad Al Hammadi, Deputy Group CEO of ADQ. Established in 2004, Plenary holds a portfolio of 21 assets under management valued at over $25 billion across Australia ABU DHABI’S ADQ ACQUIRES 49% STAKE IN AUSTRALIA’S PLENARY GROUP ADQ will buy the shares held by Caisse de dépôt et placement du Québec and the GCC. Plenary has said it had been awarded major projects in the Middle East, which are due to be announced shortly. John O’Rourke, Chairman and Founder of Plenary Group, added, “ADQ’s investment in Plenary will help accelerate our growth in Australia and internationally while the co-investment platform will allow us to scale our activities in the Middle East.” ADQ’s expansive portfolio of infrastructure assets encompasses key economic sectors, including transport and logistics, energy and utilities and real estate. Its investment in Plenary is expected to boost its presence in the global infrastructure sector, which is projected to hit $3.69 trillion by 2029, from an estimated $2.72 trillion in 2024.NEWS fi nancemiddleeast.comMay 2024 | 9 A l Etihad Payments (AEP), a subsidiary of the Central Bank of the UAE (CBUAE), has partnered with Core42, to implement open fi nance solutions in the country. The programme will fi rst test open banking insurance services in phases, to provide access to the majority of customers in 2024. All pilot participants will be under the CBUAE licensing and supervision regulations. SAUDI ARABIA’S FLYNAS CONFIRMS PLANS TO GO PUBLIC IN 2024 AL ETIHAD PAYMENTS AND G42’S CORE42 TO LAUNCH OPEN FINANCE SERVICES IN THE UAE The airline reported 32% growth in 2023 net profi t to SAR 6.3 billion “The implementation of open fi nance marks a signifi cant advancement in the UAE’s fi nancial services industry and its fi nancial infrastructure transformation,” said Fatma Al Jabri, Assistant Governor for Financial Crime, Market Conduct and Consumer Protection at the CBUAE. “It will accelerate the adoption of digital fi nancial services, providing more innovative and safer digital fi nancial products and services in the country.” The UAE is the fi rst country to implement a consolidated trust framework and centralised API hub, to provide a single secure connection to access the banking and insurance markets, whilst ensuring that access is only granted, with customer consent, to third parties regulated by the CBUAE. S audi Arabia’s low-cost airline fl ynas has confi rmed its plans to go public on the Saudi Stock Exchange (Tadawul) this year. Bandar Al Mohanna, flynas’ CEO, confi rmed the rumours of an upcoming initial public off ering (IPO) during the Airline Economics Conference. He stressed that the carrier has been posting continuous annual profi t since 2015, except for 2020, when the aviation sector was hit by pandemic-related disruptions. Al Mohanna also revealed that fl ynas’ total revenues for 2023, which amounted to SAR 6.3 billion, marking a 32% increase compared to its 2022 revenues. The listing will support the Kingdom’s IPO boom, as well as the country’s aviation ambitions, including a strategy to unlock $100 billion in private and government investment across the Kingdom’s airports, airlines and aviation support services. Reports of an upcoming fl ynas IPO fi rst emerged late last year, when it was revealed that the Saudi Arabian low-cost carrier had hired Goldman Sachs Group, Morgan Stanley and Saudi Fransi Capital for a potential listing. The programme will commence with open banking followed by open insurance servicesNext >