AN ITP MEDIA GROUP PUBLICATION JUNE 2024 • VOL.1 • ISSUE 05 Binance’s Meera Judge and Stephanie Emile on commitment to compliance, innovation and more A NEW CHAPTERJoin the #1 financial centre to access more capital markets When you join the number one financial centre in the Middle East, Africa and South Asia, you benefit from DIFC’s proven world-class laws, regulations, infra- structure and unbeatable connections. Banks enjoy managing global deals and structuring financial transactions in a DIFC market that is approaching USD 1 trn of activity. DIFC asset managers oversee nearly USD 500 bn in AUM from private and public markets in the region. Over 790 regulated clients are amongst the 5,500 clients that are using DIFC as a catalyst for growth. Join the number one: difc.ae/make-enquiryfi nancemiddleeast.comJune 2024 | 3 EDITOR’S LETTER W elcome to the latest issue of Finance Middle East! In this edition, we shine a spotlight on the winners of the Finance Middle East Awards 2024, celebrating their landmark accomplishments that have propelled the fi nance industry forward. These awards recognise the innovation, resilience and leadership demonstrated by individuals and organisations, setting new standards of excellence and shaping the future of fi nance in the Middle East. Our cover story features an exclusive interview with Binance FZE’s Meera Judge and Stephanie Emile. They discuss the company’s signifi cant milestones, compliance and risk frameworks, and upcoming initiatives or services that Binance FZE plans to introduce to enhance its off erings. Additionally, in its fi rst-ever media interview, Aiden Insight explains its roles and responsibilities within the company’s board to Finance Middle East. “AI’s ability to expedite analysis and decision-making showcases agility and adaptability to market changes,” it explained. “Strengthened compliance mechanisms reduce risk and enhance investor perceptions of corporate governance.” Furthermore, as the cocoa market undergoes rapid fl uctuations, we turn to experts to understand what this means for businesses and consumers. I hope you enjoy fi nding out more. Happy reading! Nivetha Dayanand Editorfi nancemiddleeast.com4 | June 2024 CONTENTS 10 08 16 20 WEATHERING THE STORM How is climate change rewriting the insurance rulebook? FED’S DELAY IN LOWERING INTEREST RATES “GOOD NEWS” FOR GCC BANKS S&P predicts the Fed will cut interest rates by 100 basis points over 2025 THE RACE FOR REAL ESTATE Behind the luxury property market boom in the Middle East NAVIGATING NEW HORIZONS Binance’s Meera Judge and Stephanie Emile on the exchange’s regulatory triumph and regional expansion 16 08 10 20fi nancemiddleeast.comJune 2024 | 5 44 26 50 52 SWEET CONFUSION The market conditions that are driving up the cost of cocoa MEET THE WINNERS A night celebrating the best in fi nance from across the Middle East HOW HAS ADGM’S AL REEM ISLAND EXPANSION ADVANCED IN ONE YEAR? Financial hub expands jurisdiction, eases transition for existing businesses IN CONVERSATION WITH IHC’S AI BOARD OBSERVER–AIDEN INSIGHT IHC’s bold leap into data-driven decision-making 44 52 26 50fi nancemiddleeast.com6 | June 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. 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Your biggest source of industry insights SUBSCRIBE HERE EDITORIAL INQUIRIES e: editorial@industrymena.com SALES INQUIRIES e: sales@industrymena.com ENERGY AVIATION CONSTRUCTION TECHNOLOGYFINANCENEWS fi nancemiddleeast.com8 | June 2024 T he Standard & Poor’s Credit Ratings Agency (S&P Global) has predicted that the US Federal Reserve Board (FRB) could begin cutting interest rates in December 2024, anticipating that most Gulf central banks will follow suit. The credit agency expects the profi tability of GCC Banks to remain strong in 2024, as they continue to benefi t from high interest rates, supportive economies and contain leverage and a high level of precautionary reserves. At the end of 2023, the average return on assets of the top 45 banks in the region reached 1.7%, an increase from the 1.2% recorded at the same time in 2021, S&P said. Going into 2025, S&P predicted that the Fed will cut interest rates by 100 basis points throughout the year, bringing them down to between 4% and 4.25% at year-end. As the currencies of most GCC nations are pegged to the US dollar, the central banks of these nations are expected to mirror the US interest rate policy, the agency added, noting that delaying interest rate cuts would boost their profi tability. The agency added that lower rates are likely to reduce the unrealised losses that GCC banks have accumulated over the past couple of years, estimated at around $2.8 billion for the GCC banks rated by S&P, or 1.9% on average of their total equity. FED’S DELAY IN LOWERING INTEREST RATES “GOOD NEWS” FOR GCC BANKS S&P predicts the Fed will cut interest rates by 100 basis points over 2025 Nonetheless, rate cuts would also bring forth a slight deterioration in profi tability for GCC banks. Earlier this month, the US Federal Reserve decided to maintain interest rates at a 23-year peak of 5.25%-5.50% amidst persistent increases in the cost of living, as well as indications of infl ation easing at a slower rate than desired in recent economic reports. At the time, Fed Chair Jerome Powell emphasised that infl ation levels remained “still too high” and hinted that rate adjustments were not imminent until there was a more robust assurance of price growth trending towards the 2% target.NEWS fi nancemiddleeast.comJune 2024 | 9 O man’s public debt decreased to OMR 15.1 billion ($39.23 billion) from OMR 15.3 billion ($39.75 billion) at the end of 2023, as of March 2024. In Q1 2024, the Ministry of Finance repaid over OMR 206 million ($535 million) UAE’S GDP TO GROW 4% IN 2024, IMF PREDICTS OMAN REDUCES PUBLIC DEBT TO OMR 15.1 BILLION The UAE’s overall government surplus is expected to be around 5% of the GDP in 2024 to the private sector through the e-fi nancial system. Public revenue for Q1 2024 was OMR 2.82 billion ($7.27 billion), down 12% from OMR 3.21 billion ($8.31 billion) in Q1 2023. This decline was attributed to lower net oil and gas revenues and current revenue. Net oil revenue fell by 1% to OMR 1.68 billion ($4.36 billion), with an average oil price of $83 per barrel and production at 1,014,000 barrels per day. Net gas revenue dropped 38% to OMR 444 million ($1.15 billion) due to gas purchase and transport expenses. Current revenue decreased by OMR 96 million ($249 million) to OMR 691 million ($1.79 billion). Oman has reduced its public debt by increasing non-hydrocarbon revenue, managing liabilities and issuing Sukuk and domestic bonds at favourable rates. T he International Monetary Fund (IMF) has estimated the UAE’s 2024 real gross domestic product (GDP) growth rate at 4%. The growth was described as “broad-based” and driven by strong activity in the tourism, construction, manufacturing and fi nancial services sectors. The projection is 0.5 percentage points higher than the 3.5% GDP growth the IMF had estimated in its April World Economic Outlook report. The organisation adjusted the predictions following the conclusion of a team of its experts’ visit to the UAE regarding the 2024 Article IV consultations. The IMF also anticipated that the UAE’s fi scal and external surpluses would remain high, supported by relatively high oil prices. The overall government surplus is expected to be around 5% of the UAE’s GDP in 2024, while the current account surplus is estimated to be about 10% of the GDP for the same year. Oman shrinks debt while boosting non-oil incomeNext >