CGI Gulf Insights of the Week 19 Feb 2017 (246)

ByCGI Gulf Insights of the Week
Sunday, 19 February 2017
Published inFebruary 2017

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Hello,

CRIF – Dun & Bradstreet is pleased to bring to you the latest edition of our newsletter ‘CRIF Gulf Insights’ (CGI). CGI will keep you informed about the current trends in the GCC markets and highlight key events in the regional and global economy.

We look forward to your feedback at [email protected]

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Best Regards,
CRIF Dun & Bradstreet Communications Team

CGI | Issue 57 | February 2017

Country Risk Update - Oman

The economy is weakening, although business performance is holding up for now. Growth will remain slow in the outlook period due to the drop in oil revenues, which will also force the government to prioritise certain projects. In addition, the government is looking to raise greater levels of debt and has started to reduce subsidies in order to ease pressure on the public accounts. The banking sector (which largely proved resilient to the global financial crisis) will function adequately, although liquidity is starting to tighten as deposits slow and government borrowing continues apace. Government is targeting high-end tourism as an area for growth. The ports of Sohar and Salalah are emerging as regionally competitive infrastructure facilities.

Business, Finance and Commodity News

ADIB's falling profit rounds up mixed results season for Abu Dhabi banks

Abu Dhabi Islamic Bank saw profits fall in the fourth quarter while peer Union National Bank reported a surge in revenues, rounding up a mixed results season for Abu Dhabi lenders. The emirate's five domestic banks are battling tight liquidity and rising bad loans due to the economic impact of lower oil prices. Loan and deposit growth remain in single digits and banks continue to book provisions for bad or doubtful loans.

UAE SMEs changing the renewables landscape

SMEs are going to dominate the renewables space, especially in emerging markets, such as the GCC, with the private sector playing a key role in driving adoption. The potential in clean technology is so sizeable that the World Bank estimates the opportunity for small and medium-sized enterprises (SMEs) at US$1.6tr in developing countries alone. Middle East economies have taken to solar and wind projects in particular.

Merger of Abu Dhabi banks NBAD and FGB to take place on April 1

The official merger of the National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) will take place on April 1. Trading of the new shares following the merger will begin from April 2. The merger of the two banks is expected to create one of the largest banks in the Middle East. The merger will involve a share swap with FGB shareholders receiving 1,254 NBAD shares for each FGB share. FGB shareholders will own roughly 52 per cent of the combined bank.

All six GCC nations plan simultaneous VAT adoption in January 2018

Policy makers in the six-nation GCC are aiming to introduce a 5 per cent value-added tax at the start of next year, despite administrative and technical obstacles. The GCC, its finances strained by low oil prices, has long planned to adopt the tax in 2018 as a way to increase non-oil revenues. To broaden its fund-raising options, the UAE has been working on a debt law that would allow the federal government to issue sovereign bonds.

Commodity Tracker

D&B Article of the Week

Why Fluidity is the Goal to Mastering Your Data

When thinking about master data management (MDM), what’s ultimately needed to keep the business infrastructure from crumbling is clean, unified, well-governed, expertly-stewarded master data content. When trying to span the chasm between sales and marketing, or finance and operations, or enterprises across a value chain – there is only one thing can truly bridge them all in an integrated way: master data. While workflows and processes may be designed for optimal efficiency, the success of those implementations is predicated on the quality of the data that is within them. Simply put – dirty data clogs process pipes. No matter how good your MDM strategy is, resources are wasted if the data in your systems is inconsistent and doesn’t connect.As you look at any MDM program, your data is what makes your software effective. Strong master data content can help strengthen the foundation of your strategic objectives and provide a reliable foundation for enterprise growth. Read more

CRIF D&B Highlights

Dun & Bradstreet acquires Avention
Dun & Bradstreet acquired Avention, which provides company, contact, and market data through its OneSource® solutions.This acquisition combines Dun & Bradstreet’s best-in-class content with Avention’s intuitive, user-friendly platform to provide sales and marketing professionals with actionable market and company information.

CRIF in the 2016 FinTech Forward Top 100 ranking
American Banker BAI ranked CRIF in its prestigious FinTech Forward Top 100 ranking of solution providers that derive more than one-third of their revenue from financial institutions.

CRIF assessments can be used by banks and insurance companies as ECAI ratings
On October 12, the European Commission published the definitive mapping based on which ratings issued by CRIF Ratings from November 1 can be used to fulfill the prudential capital and solvency requirements of banks, financial institutions, and insurance and reinsurance companies.

Upcoming Events this Week

ME-TECH 2017
Feb 21-23
Madinat Jumeirah Conference Centre

Gulfood 2017
Feb 26- Mar 2
Dubai World Trade Centre

Reading Recommendation of the Week

Designing Your Life
Designers create worlds and solve problems using design thinking. Look around your office or home—at the tablet or smartphone you may be holding or the chair you are sitting in. Everything in our lives was designed by someone. Every design starts with a problem that a designer or team of designers seeks to solve.

Release Date:

September 20, 2016