UAE ADX (Abu Dhabi Securities Exchange)and HSBC Bank Middle East Limited have announced that they will develop digital fixed income securities leveraging the investment product knowledge of ADX and HSBC’s blockchain capabilities and investment banking expertise.
Abdulla Salem Alnuaimi, Chief Executive Officer of ADX exchange, said, “We are delighted to collaborate with HSBC in developing a digital fixed income product. We believe that digital assets will grow in significance in the future and ADX intends to be at the forefront of this innovation. The project reaffirms our commitment to ADX’s digital transformation journey and complements our efforts to continue providing innovative products to our expanding investor base. ADX exchange and HSBC will explore a framework that enables digital assets, such as digital bonds, to be made available on HSBC Orion, the bank’s digital assets platform, and to be listed on ADX.”
Mohamed Al Marzouqi, Chief Executive Officer, UAE, HSBC, said, “HSBC is digitizing at scale by adopting new technologies like blockchain to enable the issuance of digital assets, hold them in custody and make them available for trading. This capability will help accelerate efficiency and drive new and innovative opportunities for investors. HSBC and ADX are working together to leverage HSBC Orion, our proprietary digital assets platform, and use our collective capabilities in capital markets and custody, to bring this exciting development to the market.”
Digital bonds are financial instruments that are created and managed using blockchain and smart contract technology to create efficiencies in capital markets. With the use of blockchain technology, a broader range of assets such as equity, fixed income, real estate and private equity can be tokenised. This will enable ownership of these assets for a broader range of investors, making securities markets more accessible.
Synechron, a leading global digital transformation consulting firm focused on financial services and technology organizations which works with emerging technologies such as AI, Blockchain and others has opened its new office located in Riyadh, the Kingdom of Saudi Arabia’s (“KSA”). The new office will enable Synechron to expand its array of key services to multiple banking and technology firms within the Middle East. This marks the 44th office Synechron maintains across 19 countries.
Synechron currently operates two offices in the United Arab Emirates, respectively in Dubai and Abu Dhabi. In recent years, KSA has experienced a transformation of its banking and financial technology sectors, presenting an opportunity for Synechron to scale up its business to support the growth of these sectors. Riyadh, the capital of KSA, was selected for the location of this office as it is at the epicenter of where multiple banking and telecom companies maintain their head offices.
The firm has previously executed projects in KSA, including building a digital branch for a global bank, and currently provides payments-related services for another financial firm.
Faisal Husain, Synechron’s Co-founder and CEO, said of the new office opening, “We are excited to join the Riyadh business community and establish Synechron as a key participant in KSA’s financial services industry, while contributing to the region’s vision and growth. With our expanded footprint, we are able to more closely collaborate with our clients and better enable their digital technology-led business transformation.”
Suhail Basit, Managing Director and Head of Synechron’s MENA Business, added, “We are pleased to expand our presence into KSA and look forward to welcoming a local workforce of talented individuals with the knowledge, skills and passion to work in tandem with our global exerts. We are investing in senior talent to lead our ongoing initiatives and to bring in the desired growth from this fast-growing market. Together, we will develop the customized business solutions that our existing and prospective clients require to scale their businesses. This includes bringing advanced methodologies and tools for Digital Transformation, Data and Analytics, Artificial Intelligence, and more.”
Blockchain Trade Finance platform combating fraud, UAE Trade Connect has just added its 13th bank member. Invest Bank will be the 13th bank to join UAE Trade Connect which is paving the way for a secure, efficient and technologically advanced trade finance landscape.
Initiated in 2021 as a collaborative project between the banking industry and e& enterprise, UTC utilizes cutting-edge technologies such as blockchain, Artificial Intelligence (AI), and machine learning to offer a cloud-native solution. This solution enhances transparency by digitizing trade-related documents in real time, detects suspicious transactions, and prevents fraud.
Zul Javaid, CEO, Trade Connect said: “Invest Bank’s inclusion in the UTC consortium demonstrates our commitment to strengthening the UAE banking industry while also playing a fundamental role in advancing the nation’s digital strategy and contributing to its ambitious growth plans. Our platform is not just a technology solution; it serves as a driving force for economic growth and ensures enhanced risk management.”
Helmi Abdullah, Chief Wholesale Banking Officer, at Invest Bank said: “Joining UAE Trade Connect as a member bank is a significant milestone in our journey, as it reinforces our commitment to enhance our digital trade capabilities supports our growth of Trade Finance business in a secure and efficient manner. This decision demonstrates UTC’s dedication to raising banking standards in the UAE.”
As an official member, Invest Bank gains access to a robust system that validates trade finance transactions, identifies duplication, and combats potential fraud in real time. This empowers the bank to make informed lending decisions, increasing lending confidence and safeguarding funds.
The UTC blockchain platform plays a pivotal role in enhancing lending confidence and transparency, facilitating increased lending opportunities towards mitigating risks, enhancing operational efficiency, and validating invoice transactions worth over AED 170 billion equivalent to $46 billion while detecting multi-million-dirham frauds. UTC has made significant progress towards establishing itself as a national invoice registry.
UAE Trade Connect seeks to expand its offering to other banking entities in the region. In a recent LinkedIn post, Zul Javaid, CEO of UAE Trade Connect, the UAE’s first trade finance platform to combat fraud, announced that they had hired Wissam Massud to lead their international expansion. One of the countries on its list is KSA.
The Ethereum Riyadh 2023 conference held on October 11th brought together an array of blockchain experts and entities, including Saudi Digital advisor for a Saudi governmental entity, who gave a presentation on embracing DeFi for business excellence. As per the press release, Abdulelah Aloshayni, digital transformation advisor at a Saudi Governmental entity provided a clear understanding of DeFi and discussed potential applications for large companies and government organizations.
This is no surprise given the work that for example SAMA ( Saudi Central Bank) is doing on CBDC, virtual assets and DeFi. Saudi Central Bank had hired Mohsen Al Zahrani to lead their digital assets and CBDC projects.
Abdulelah Aloshayni gave a presentation on “Embrace DeFi for Business Excellence.” He provided a clear understanding of DeFi and discussed potential applications for large companies and government organizations.
ETH Riyadh 2023 conference successfully took place at the CODE Lab of King Saud University at Riyadh, the capital city of Saudi Arabia. ETH Riyadh 2023, Web3 technology summit, was dedicated to the Ethereum ecosystem and blockchain technology, aiming to gather developers and builders from Riyadh, Saudi Arabia, and other regions in the Middle East.
ETH Riyadh emphasized a strong technical focus and aimed to provide insights from industry experts, fostering discussions on blockchain and Web3 cutting-edge technologies.
The ETH Riyadh organizing committee was composed of Tharawat Technology, Studio1727, ChainIDE, Coffee with Crypto, and Mask Network. The event received guidance and support from the Saudi Ministry of Communications and Information Technology, the Saudi Internet Association, and the KACST Digital Entrepreneurship Center. It was generously sponsored by Ankr (Title Sponsor), with presenting sponsorship from Chiliz, as well as support from Zilliqa, Adaverse, SAO Network, Onekey, Matrix World, and more than ten other Web3 projects.
Over 150 participants attended the event. The ETH Riyadh 2023 conference kicked off with a keynote address by Tim Beiko, a representative of the Ethereum Foundation, who presented “Ethereum Governance Overview.” Tim Beiko outlined various ways to engage in Ethereum technology development and contributions, along with collaboration opportunities.
In the first roundtable discussion, Anton Agafonov, Product Lead at Zilliqa, Arpit Sharma, Managing Partner for the Middle East, India, and East Asia at the Near Foundation, and Aqeel Mohammad from the Ethereum Foundation discussed “L1/L2: Web3 Infrastructures and Innovations from various perspectives, sharing their insights on Web3 infrastructure and innovation.
Xiao Wu, the founder of ChainIDE, then spoke on “The Road to Mass Adoption: Web3 Ecosystem in East Asia x Middle East Africa Region.” He shared insights into the development of Web3 ecosystems in East Asia and the Middle East and Africa regions, discussed the digital economy’s opportunities, and analyzed attempts and cases of large-scale applications in different regions.
While Dr. Waleed Aloriny, Chairman of the Saudi Internet Association, delivered a welcome address and moderated a special roundtable discussion on “Opportunities of Web3 Technology in Saudi.” Yasser Alobaidan, CEO of Tharawat Technology, Xiao Wu, Founder of ChainIDE, Stanley Wu, CTO of Ankr, and Alex Dreyfus, CEO of Chiliz, participated in the discussion. Representatives from various sectors engaged in lively discussions on Saudi’s entrepreneurial environment, policy regulations, Web3 development, digital economic opportunities, and international cooperation. Web3 entrepreneurs present recognized Saudi Arabia as a significant opportunity and expressed their desire to deepen their business and collaborations in the region.
ETH Riyadh 2023 marked a significant milestone as the first dedicated Web3 developer and blockchain technology summit in the Saudi Arabian region, particularly in Riyadh. This event represents a major advancement in the Web3 developer ecosystem of Saudi Arabia. ETH Riyadh has contributed to the flourishing of the local blockchain developer community, providing a platform for learning and networking for local developers and entrepreneurs.
The event has not only attracted local participants but also garnered attention from experts and investors from around the world. It serves as a crucial role in driving the development of blockchain technology in Saudi Arabia, offering a pivotal opportunity for exploring and shaping the future of the blockchain field. Furthermore, it plays a role in promoting digital innovation and economic growth in Saudi Arabia.
Xiao Wu, Founder of ChainIDE and a member of the ETH Riyadh organizing committee, expressed, “ETH Riyadh is the first summit in the Saudi region that focuses on blockchain technology and Web3 developers. It serves as a superhub for the local technology community and ecosystem development. Saudi Arabia is currently experiencing a pivotal period of rapid growth in the digital economy, and blockchain and Web3 technologies are integral components of the next generation of digital economies. We look forward to ETH Riyadh 2024, expecting to attract more builders in blockchain technology and facilitate increased collaboration and exchange among developers in the East Asia and Middle East and Africa regions.”
The Qatar Financial Centre Authority (QFCA), the legal and tax arm of the Qatar Financial Centre (QFC have signed an MOU with the Asian Institute of Digital Finance (AIDF), a research institute of the National University of Singapore (NUS), to embark on projects encompassing ESG, Fintech, digital assets, Web3 and other emerging technologies.
In addition to these efforts, both partners will actively facilitate the exchange of knowledge and insights to further their common goals and objectives.
Yousuf Mohamed Al-Jaida, Chief Executive Officer, QFC, expressed his optimism about this partnership, stating, “We are excited to join forces with the Asian Institute of Digital Finance at the National University of Singapore to explore and capitalize on the numerous opportunities in the ever-evolving digital landscape. This partnership reflects our commitment to innovation and our belief in the power of collaboration to drive positive change. We see this collaboration as a significant step, not only in the direction of constructing a more inclusive financial sector but also in forging a path towards a more sustainable future.”
Likewise, Associate Professor Huang Ke Wei, Executive Director, NUS Asian Institute of Digital Finance expressed their enthusiasm for the collaboration, saying, “The NUS Asian Institute of Digital Finance empowers the future of finance through digital innovation and academic excellence, and provides thought leadership through a holistic blend of education, research, and business incubation. Our vision is to catalyse the evolution of the digital economy by fostering innovation and imparting knowledge. This collaboration with QFC marks a significant step towards fostering cross-regional knowledge exchange, setting the stage for a brighter, interconnected digital future.” The partnership between the QFC and NUS AIDF underscores their shared commitment to innovation and sustainability and catalysing positive global transformation by leveraging technology.
QFC has been moving forward with its digital asset strategy and framework.
21Shares, issuer of digital asset ETPs, continues its international expansion with Shariah approval of its 21Shares Bitcoin ETP (ABTC) and 21Shares BOLD ETP (BOLD) from leading Saudi scholars.
Having launched the world’s first crypto backed ETP in 2018, the company continues to lead the market with the expansion of its products and a catalogue of listings on major global exchanges.
Amidst sustained interest from Saudi investors, the recent Shariah compliance of the BOLD ETP is significant in that the product is at the forefront to become Saudi Arabia’s first hybrid product. Rebalanced monthly, BOLD has a 25:75 Bitcoin to gold ratio, offering investors exposure to the traditional value of gold with the promising return rates of Bitcoin.
In the context of inflationary pressures, and heightened geopolitical risk, the products represent important risk and return diversifiers within both private and institutional portfolios.
According to the press release, “ As regional financial centers compete to provide the latest financial services products, 21Shares’ announcement is an important step in the company’s Saudi market entry. Under Vision 2030 Saudi Arabia is working to transform its financial services industry highlighted by increased digitalization across the economy and the widespread adoption of Blockchain.”
Ahead of the upcoming Future Investment Initiative, co-founder and CEO Hany Rashwan commented “Saudi Arabia presents exciting new market expansion opportunities for us. This milestone reflects our unwavering commitment to operating within the highest regulatory standards and providing a secure and transparent platform for our clients. Our tailored crypto investment solutions will resonate with Saudi investors. We look forward to partnering with local financial institutions, fostering trust, and contributing to the Kingdom’s thriving fintech ecosystem.”
Prior to this 21Shares Bitcoin ETP was listed on Nasdaq Dubai exchange to target major regions in 2022. Following its roadmap, the investment firm offers 46+ products launched almost over 12 exchanges in 7 different countries.
Saudi headquartered Blockchain Fintech startup, Takadao, has raised $1.6 million in pre seed round led by Draper Associates. Other investors include BIM, Core Vision ventures, Prince Sultan Bin Fahad bin Salman Al Saud.
Takadao builds community-owned financial services on the blockchain, with two flagship products in savings and loans (Takaturn) and cooperative life insurance. Takadao’s products are Shariah-compliant and target the Muslim population globally.
According to the Pew Research Centre: “Globally, the Muslim population is forecast to grow at about twice the rate of the non-Muslim population over the next two decades – an average annual growth rate of 1.5% for Muslims, compared with 0.7% for non-Muslims. If current trends continue, Muslims will make up 26.4% of the world’s total projected population of 8.3 billion in 2030, up from 23.4% of the estimated 2010 world population of 6.9 billion”.
Islamic finance grew 17% in 2021 to $4 trillion and is forecasted to keep growing in double digits for the next five years. Takadao extends the reach of Islamic finance by providing shariah-compliant loans and insurance through the blockchain, enabling global access even in countries where populations are largely unbanked.
Co-founder and COO, Sharene Lee, states: “Many of us, Muslims and otherwise, live in countries with unstable economies, weak currencies and high inflation. There is low access to the traditional banking system coupled with increasing distrust. Banks and insurance companies exist to increase shareholder value and this takes priority over consumer well-being. At Takadao, we build community-owned financial services whose shareholders are the users themselves. By vesting ownership with the end users, we ensure that their well-being is the primary focus. Furthermore, shareholder profits get redistributed among the end users. The only way we can do this is through the decentralized blockchain and cryptocurrencies.”
To this end, Takadao has two complementary products, Takaturn and Takasure. Takaturn is based on the ROSCA concept, commonly known as Jamaiyah in the Middle East, Ballot Committee in Pakistan, Tontine in parts of Africa, and chit fund in India. Takasure is a cooperative insurance product based on the Takaful model; it is still in development with an anticipated launch date of June 2024.
This marks the first investment for Tim Draper in a Saudi-based startup. Draper’s investment track record in Baidu, Skype, and Hotmail all precipitated significant changes in consumer behavior that have become the norm today, whether it’s email, search or voip. In recent times, Draper has backed Robinhood and Coinbase and significantly, he is an outspoken advocate of Bitcoin and decentralized finance.
On why he decided to invest, Draper said: “Takadao is one of those companies that you don’t know quite where it’s going to go, but if it succeeds, it’s going to be really impactful and make a big difference in the world and this is a world that I want to live in. The insurance business generally has become corrupted and Takadao is going right after the insurance business with something that’s very pure; the blockchain is pure, Bitcoin is pure, decentralization is pure.”
Takadao has a community of 10,000+ members that is growing by 5% week-on-week.
AI and Blockchain enabled Tribal Credit, based in USA and founded by Egyptian entrepeneurs, which empowers SMEs in emerging markets through a comprehensive suite of financial products,payment tools will be expanding into Saudi Arabia, using a renewed and increased debt facility of $150 million with Partners for Growth.
Renewed through 2025, this upsized facility is not only a testament to Tribal’s remarkable credit performance but also an accelerator for the company’s ambitious growth plans in Mexico, Saudi Arabia and beyond.
As per the press release, this significant expansion will notably enhance Tribal’s presence in Saudi Arabia in accordance with applicable laws and regulations, serving as the core of its global expansion strategy. Further, it will fuel the company’s continued growth across Mexico and Latin America, enabling Tribal to bring more SMEs into the fold of its innovative financial services.
With over $200 million in funding from industry-leading investors like SoftBank, QED Investors, BECO Capital, Stellar Development Foundation, and Coinbase Ventures, Tribal is making strides in bridging the financial inclusion gap. Led by a team of accomplished entrepreneurs, data scientists, and banking executives, and recognized as a top fintech by leading industry bodies.
Over the past few years, Tribal’s diligent investment in credit processes, tools, products, and team has culminated in exceptional credit performance, even amid challenging market conditions. This achievement has facilitated a healthy revenue mix from both financing and payment products, reinforcing the company’s robust financial health and laying the foundation for sustainable growth.
Partners for Growth (PFG), a global specialty lending firm focused on emerging growth companies, highlights Tribal’s exceptional credit performance and sophisticated financial products. “Tribal Credit has consistently demonstrated strong credit performance even in challenging market conditions.
Their continued investment in the credit process, tools, and the team has paid dividends,” says Armineh Baghoomian, Managing Director, Head of Europe, Middle East and Africa, Co-Head of Global Fintech at PFG. “In addition, they have innovated and launched financial products that truly meet the needs of SMEs in emerging markets. We’re thrilled to extend our partnership with Tribal and excited to support Amr, Duane and the team as they continue shaping the landscape of financial services.”
Tribal has reshaped the financial landscape for SMEs in emerging markets by prioritising accessibility to credit and digital payments. In doing so, it has empowered a remarkable number of SMEs to fuel their growth, making a lasting impact in these markets. Throughout its journey, Tribal has facilitated a substantial volume of transactions via its corporate credit cards and B2B cross-border products, demonstrating its crucial role in empowering emerging markets.
“We’re delighted to fortify our partnership with Partners for Growth,” says Duane Good, Tribal COO and Co-Founder. “We emphasize building enduring relationships with our clients, and nurturing our ties with capital partners is equally essential.” Good, alongside Amr Shady, Tribal CEO and Founder, sees the enhanced debt facility as a testament to Tribal’s mission and potential. “This funding will equip us with the necessary resources to seize exciting market opportunities ahead,” Shady adds. “We’re eager to continue our journey of developing innovative tech solutions to help SMEs thrive in emerging markets, especially in Mexico and Saudi Arabia.”
In 2021, Tribal Capital received an initial $3 million from Stellar Development Foundation to advance blockchain products built on stellar. Tribal Credit first raised 5.5 million USD through an investment round led by UAE BECO Capital and Global Ventures.
At the time Amr Shady, Tribal Credit CEO stated, “Our entire mission is about empowering startups and SMEs in emerging markets with access to financial services. Our focus starts in Mexico, a country that will benefit from global accessibility to banking services previously only available to large corporations. By tapping into Stellar’s existing and growing network of anchors, we will be able to leverage existing digital assets to bring our customers with fast, affordable cross-border payments, credit card balance settlement, and other innovative features of the Stellar blockchain that will benefit our global users.”
In addition Mohamed Elkasstawi, Tribal Credit Co-Founder and Chief Strategy Officer who leads the blockchain vision, strategy, and execution also noted “We see blockchain, and our integration with Stellar specifically, as a strategic next step for our business, offering us the ability to provide cheaper, faster payments for our customers,” said. “Working with the Stellar ecosystem, we’ll be able to leverage the network to deliver on some of our most important use cases — like facilitating cross-border payments between businesses in previously underserved markets. This is only one of many exciting blockchain projects we’re working on in partnership with SDF.”
UAE headquartered Fuze, a digital assets infrastructure provider, has raised a seed round of $14mn, the largest Seed investment in a digital assets startup in the history of the Middle East and North Africa region (MENA). The investment was led by Abu Dhabi-based Further Ventures, along with participation by US-based Liberty City Ventures.
Fuze will benefit from the strategic capital and network of these investors, acting as a catalyst for the business as it builds the digital asset infrastructure that will drive the future of finance.
A first-of-its-kind infrastructure provider in MENA, Fuze enables any bank, fintech or traditional enterprise to easily offer regulated digital assets products to their customers through their native apps.
Fuze was founded by an expert team of fintech, traditional finance (TradFi) and decentralized finance (DeFi) leaders, with its co-founders holding extensive knowledge from experience in global hypergrowth businesses.
CEO, Mohammed Ali Yusuf (Mo Ali Yusuf) has held prominent roles at Checkout.com and Visa; Arpit Mehta (COO) was previously in the leadership team at fintech leaders like Simpl and Clear; Srijan Shetty (CTO) built algorithmic trading systems at Goldman Sachs and worked at tech leader Microsoft.
With a regional digital asset market worth $566bn, and growing at 48% YoY, Fuze co-founder and CEO, Mohammed Ali Yusuf believes the Middle East is the perfect home to establish a digital assets infrastructure business.
Yusuf states, “We are excited to build the future of regulated financial infrastructure and digital assets out of the UAE. Regulations have played a pivotal role in propelling the UAE into a central position within the global Digital Assets industry. To receive the backing of Abu Dhabi-headquartered Further Ventures combined with the deep expertise of US-based Liberty City Ventures, confirms the relevancy and potential of Fuze’s mission to rapidly expand our cutting-edge infrastructure across the region.”
Further Ventures commented, “This is an important strategic investment into digital assets, one of our core verticals. The team at Fuze is highly experienced and has a clear vision to develop a trusted, world-class digital assets proposition. Technology that enables a range of stakeholders is vital for the future of the financial ecosystem and Fuze is well placed to be a leader in digital assets across the MENA region and beyond.”
In September 2022, Abu Dhabi’s ADQ and Further Ventures, an investment firm back by ADQ launched a $200 million fund focused on Fintech, digital assets and supplychain.
Fuze was founded in December 2022 and selected earlier this year to join Hub71, Abu Dhabi’s global tech ecosystem through its Company Building Program. Its white label solutions handle the complexities of blockchain and regulatory overheads for enterprises, enabling these organizations to readily offer digital assets such as stablecoins, cryptocurrencies, CBDCs and tokenized assets.
The funding will propel Fuze’s growth as it obtains regulatory licensing, adds strategic hires in key roles, continues to expand its technological capabilities, and accelerates its geographic expansion across the region. Its products, such as Fuze Trader and Fuze Loyalty, allow banks, brokerages and superapps to offer digital asset products in a simple, easy and trusted manner.
“We are building a suite of products that addresses the growing demand for regulated digital asset capabilities through trusted channels. Our technology first approach is a game-changer for the region and offers our customers a reliable bridge to the new era of investments and to the future of finance,” adds Yusuf.
In a recent report by Singaapore funded UnaFinancial, the group said that Fintech funding in UAE could reach $2.8 billion in 2028 from $1.8 billion in 2023. This is boosted by a strong economy and favourable environment.
LFi, Canadian fintech tech startup, leveraging advance computing and blockchain has expanded into the UAE with a presence in Dubai under its new LFi Labs office. According to the news releases, the Lab will serve as a central hub for new advancements and innovations.
As per their website, LFi is a decentralized platform designed to provide equal opportunities for wealth generation and financial independence through crypto. It operates on its own blockchain, guided by a DAO-driven ecosystem.
The startup intends to fuse crypto, finance and technology to foster innovation and financial freedom. The tech startup seeks to provide a diverse range of products and services that give people greater access to tools and information for navigating the crypto and Web3 landscape.
According to the news, the establishment of the Labs locally in UAE gives the brand a strong foothold in one of the most progressive, influential, and technology-oriented economic hubs in the Middle East and North African region.
The company looks to collaborate with visionaries, tech enthusiasts, and creators from various backgrounds to realize revolutionary ideas that will shape the future.
The soft launch of LFi Labs event featured the LFi One smartphone, a smartphone that allows users to mint tokens and enter the crypto world seamlessly It also showcased
xLFi Minters, and other innovative products, the immersive experience offered a taste of what the future holds for the brand.
With the official opening on the horizon, CEO Luiz Góes expressed excitement toward the prospect of fresh collaborative opportunities with experts and market participants within the region. The CEO added that the platform’s new venture in Dubai aims to attain a “brighter era” for global crypto.
It is noteworthy that while LFI is a tech startup and might not need a regulatory license, if it offers any crypto services like minting its token and using its token for utility purposes, it definately will need one.
