Middle East transaction banking debate: Providers push new services as region’s economies bounce back

Financial providers are pushing to identify new higher-margin services, while remaining relevant to corporate partners and boosting profitability in a disruptive digital age. Meanwhile, across the Middle East economies, governments want to diversify away from oil and gas, creating opportunities for multinationals, regional banks and export credit agencies.

Published in association with

Learn more about the participants

EXECUTIVE SUMMARY

• Banks see great value in becoming strategic advisers to corporate partners, rather than remaining transaction processors • Corporates and banks are putting themselves ahead of the field by being willing to take risks in exchange for higher returns  • Low oil prices and the UAE’s trailblazing example are pushing Saudi Arabia and others to diversify economically and promote new industries • Training and retaining talent is the biggest challenge facing leading banks and corporates across the region  • Banks face increasing demand from corporate clients to act quicker and more efficiently, and to identify tailor-made solutions to problems  • Non-oil GDP growth is picking up, led by a better business climate and a pick-up in infrastructure investment ahead of Expo 2020 Dubai  • A 5% sales tax, set for introduction by the UAE in January 2018, is slated to add 1.6% to GDP and lessen reliance on oil revenues  • Export credit agencies from Asia and Europe are showing interest in the region, led by rising inward investment from China

Elliot WIlson, Euromoney What are the main macroeconomic challenges facing the UAE and the wider region?

Monica Malik (MM), ADCB We are still facing challenging conditions at the moment, with the region’s economies continuing to restructure to cope with lower oil prices.