Oman Health Endowment Fund’s Remit Transcends Coronavirus Fight
The launch of Oman’s first endowment fund dedicated to public healthcare services could not have come at a more opportune time, say market pundits. In the week since it was rolled out, the fund has garnered several millions of Omani riyals in contributions from government, public and private sector organizations, and growing numbers of individuals as well.
But the mandate of the so-called Endowment Fund for Enhancing Healthcare Services is not limited to financing the government’s burgeoning campaign to contain the spread of the novel coronavirus (COVID-19), with the Ministry of Health playing a frontline role.
Long in the making, the Endowment Fund grew out of the Health Ministry’s desire to ease its longstanding dependence on the government for its annual funding requirements. It has its origins in reforms initiated by the Ministry in the wake of the fiscal crisis triggered by the slump in global oil prices in 2014 – the fallout of which continues to constrain Oman’s financial situation.
According to a senior official who helped craft the framework behind the first-of-its-kind Fund, the initiative is modelled on ‘Siraj’ – an endowment fund set up at the behest of the Education Council to help fund the development of higher education in the Sultanate.
Dr Halima al Hinai, Senior Consultant at the Ministry’s Directorate of Health Investment and Financing Alternatives, said the new endowment fund offers a “non-traditional approach” to help sustain the financing of the public healthcare sector in the Sultanate.
“The Ministry came up with the idea of setting up an endowment fund that (capitalizes) on some of its assets, uses donations, and explores investments in partnership with Islamic banks,” the official recently told a conference on Islamic finance held in the city.
According to the official, the Healthcare Endowment Fund is being positioned as a primary source of finance for the running of Oman’s public healthcare sector in the future. “The Fund is proposed to eventually take over the financial burden of the Ministry, support the construction of hospitals, establish healthcare institutions at different levels, purchase hospital equipment and medicines, and support medical education and R&D in healthcare,” said Dr Al Hinai. “It will also explore investments in healthcare related projects, such as pharmaceutical industries, private hospitals, and so on.”
Licensed banks, public listed companies, investment funds and private businesses are among scores of organizations that have announced generous contributions to the Fund in recent days.
31/03/2020
Qatar Islamic Bank Launches mPay Digital Wallet
Qatar Islamic Bank (QIB) is one of the first banks in Qatar to go live with the mPay digital wallet initiative on its mobile app. The new payment method supports the efforts led by Qatar Central Bank to achieve a safe, secure and cashless economy, ahead of the FIFA World Cup Qatar 2022 and beyond.
Available to all QIB customers, QIB’s mPay digital wallet provides a cashless and card less payment gateway within Qatar. QIB customers can activate their mPay digital wallet through its award-winning mobile app, which will be linked to their mobile number. Once activated, customers can easily load money on their mPay wallet using their QIB accounts.
With a loaded mPay digital wallet, customers can make instant transfers to other wallets within QIB, or the wallets of customers at other banks that are registered on mPay, by simply entering the beneficiary mobile number from their phone ‘Contact List’. Similarly, QIB customers can receive funds on their mPay wallet from any other mPay wallet. Customers can also choose to move their cash from their mPay wallet back to their QIB accounts at any time, easily, through QIB’s mobile app.
Commenting on the launch, D. Anand, QIB’s General Manager - Personal Banking Group said: “At QIB, we are dedicated to make our banking solutions available at our customer’s fingertips, by digitizing all of our products and services. mPay digital wallet is an innovative payment feature that further enhances our customers’ mobile banking experience and revolutionizes daily transactions. Our customers will be able to send and receive money, as easily as sending an SMS.” He added: “We are committed to supporting Qatar Central Bank in achieving its vision to create a safe, secure and cashless economy ahead of the FIFA World Cup Qatar 2022”.
The mPay digital wallet payment solution provides customers with a range of benefits and features such as the ability to make payments easily through a secured channel, cashless and cardless transactions, reduced fees, receiving transaction details, statement inquires, and SMS notifications for any transaction made. Soon, the mPay digital wallet solution will offer enhanced services such as paying merchants or bills, and withdrawing cash from ATMs, all directly through the wallet.
The QIB Mobile App has undergone an immense transformation over the years, to keep up with the hyper-connected, online world. Updates regularly made on the app make it easier than ever to bank on the go, 24/7, as they were developed to meet the customers’ daily banking requirements.
In recognition of the bank’s digital transformation results, QIB was recently named “Best Digital Bank in Qatar” by the Asian Banker, and “Qatar’s Most Innovative Digital Bank” as well as “Qatar’s Best Consumer Digital Bank” by Global Finance. QIB was also awarded “Digital Bank of the Year 2020” and “Best Mobile Banking Application 2020” in Qatar, by The Asset Triple A.
To download the App, customers can visit Apple App Store or Google Play Store and search for the keyword: QIB Mobile App. Customers can easily self-register using their debit card number and PIN.
31/03/2020
Abu Dhabi Exchange Grants BHM Short-Term Margin Trading License
Abu Dhabi Securities Exchange (ADX) recently granted BH Mubasher Financial Services PSC (BHM), a leading investment firm in the UAE’s financial market, a short-term margin-trading license, making it the first financial services company in the UAE to offer the service to its clients. ADX is keen to support business development opportunities aligned with its triple-pillared “Shape the 20s” strategy of being responsive, transformative and innovative.
Responsive refers to constantly enhancing customer engagement; transformative to facilitating investments that sustain long-term sustainable business development; and innovative is about achieving the most efficient ways to reach new levels of customers satisfaction. The trading license granted to BH Mubasher exemplifies ADX’s commitment to reach its objectives with the efficiency its expertise commands.
Khalifa Al Mansouri, Chief Executive of Abu Dhabi Securities Exchange (ADX), said: “BH Mubasher is recognized as one of the top ranked firms in the country’s financial markets and a pioneer in financial technology. Such an expertise prompted ADX to give BH Mubasher a short-term margin-trading license and therefore provide additional investments opportunities to corporate and individual investors. By enabling access to new and efficient services’ platforms, ADX strengthens its presence as a leading regional economic platform and concretely demonstrates the coherence of its business development strategy that aims to deepen supply and demand while diversifying operating incomes”
Abdel Hadi Al Sa’di, Chief Executive Officer, BH Mubasher said: “It is an honour to be the first firm in the UAE to provide the service to its customers. This milestone reflects BH Mubasher’s vision in increasing the attractiveness and competitiveness through diversifying the products offered to its clients, and reinforces the company’s position as a leading financial services provider in the region. It also provides more investment opportunities for institution and high net worth clients.”
The license allows the company to provide high leverage (up to 5 times the initial placed margin amount) to its customer to buy securities listed in Abu Dhabi Stock Exchange. It is different from a normal margin trading license as the customer should sell the financed securities within a specific short period.
“This initiative adds to our extensive portfolio of services offered to our customers and helps us add to our mission of delivering quality financial products, using cutting-edge technology trading platforms. It also helps us further bolster relations between BH Mubasher and capital markets in the UAE,” added Al Sa’di.
31/03/2020
All Flight Suspensions in Saudi Arabia Extended
Saudi Arabia is extending the suspension of all domestic and international flights and workplace attendance until further notice, said a report in Saudi Press Agency (SPA) quoting an official source in the Ministry of Interior.
“The kingdom will be extending the suspension of workplace attendance in all government agencies, except for those under the exempted sectors,” the report said. Across the private sector, all workplace attendance has been suspended until further notice as well.
Internal travel within the kingdom, including flights, bus, taxi and train activity, has also been suspended until further notice, in a drive against the spread of the coronavirus, the report said.
31/03/2020
Savills Welcomes Dubai Free Zones Stimulus Package
Leading real estate advisor Savills said the announcement of the economic stimulus package for Dubai Free Zones, under the directive of Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, will help to ease the burden on corporate tenants.
The recent announcement will include postponement of rent payments for up to 6 months, facilitating financial payments through monthly instalments, refunding insurance and guarantees (such as tenant deposits), cancelling certain business penalties for companies and individuals and allowing intra-corporate transfer of labor between companies and sectors operating in free zones.
Lauding the Dubai Free Zones move, Paula Walshe, the Head of International Corporate Services, at Savills, said: "This is a very positive and welcome initiative, which will give tenants clear breathing space, and the ability to take a longer term view on business forecasts. Primarily, it helps to reduce immediate costs to maintain business continuity and preserve jobs."
Dubai Free Zones has around 45,000 companies and 390,000 employees, accounting for approximately a third of Dubai’s GDP.
Walshe said the refunding of security deposits and restructuring payments will improve liquidity for businesses located in the free zones and reduce the financial burden, particularly on SMEs.
"While these steps apply to occupiers in free zone-owned buildings, it will be interesting to see if this is mirrored by private landlords. We have seen a trend in recent years for Dubai landlords to work collaboratively with tenants to find solutions, which has really helped to secure business longevity," she stated.
"It’s an uncertain time, but Dubai government is setting an exemplary standard for the commercial real estate market," she added.
31/03/2020
Initiative Launched to Empower Qatari Businesses in Times of Crisis
The Qatar Finance and Business Academy (QFBA) has launched an initiative called "Azm" to empower businesses in times of crisis. The initiative aims at training and assisting talented and promising entrepreneurs from the Qatari community to reduce the key strategic risks associated with the coronavirus on the financial sector, and facilitating the adoption of the best risk management practices by companies during the current global crisis.
The initiative includes several remote training programs and activities, the most important of which are building and managing a virtual work team; effective teleworking skills; an accredited certification program in crisis management; enterprise success in times of crisis; business model and risk assessment for entrepreneurs and SMEs; promoting trainers’ capabilities for distance training and certified consultants in business continuity planning and management.
The training programs and activities will be offered online at the rate of up to seven hours introductory to the various programs during different times, in addition to 18 intensive hours at the rate of two and a half hours for each program. The hours of accredited programs in business continuity strategies to are about 30 training hours in addition to an achievement test.
Commenting on the initiative, QFBA director of professional training, Abdullah al-Jumaily said that this initiative comes in the context of the mission of the academy and its relentless pursuit towards enabling the financial and business sector and supporting the national and private institutions to continue their excellence and growth in various circumstances. It also seeks to invest in strengthening its institutional capabilities and providing human cadres with skills, capabilities and experiences that make them more capable of facing urgent challenges.
Through this initiative, due to kick off on March 30, the QFBA aims to provide companies with the necessary knowledge about the best ways to plan and prepare in times of crisis, in order to increase the professionals’ ability to adapt to unexpected events in light of health crises and the current situation.
Established in 2009 under the umbrella of the Qatar Financial Center, the QFBA seeks to provide practical educational services in the financial sector, develop Qatari talents through its training programs and support the Qatar National Vision 2030 towards establishing an advanced knowledge-based economy.
As a national institution aiming at developing human capital, the academy offers internationally accredited degrees in finance along with learning and development solutions for the financial and business sector in Qatar.
31/03/2020
Brent Futures Dip to 18-Year Low
Brent oil futures with delivery in June 2020 dropped by 12.72% to US$21.76 a barrel on the London-based ICE on Monday, Russian news agency Tass reported. The last time Brent oil futures were below the level of US$22 a barrel in March 2002.
WTI futures prices fell 6.56% to US$20.1 per barrel. The Russian currency is weakening against the US dollar and the euro on the back of plummeting oil prices. The dollar at the same time rose by 1.3% to 79.85 roubles on the Moscow Exchange. The euro rose by 0.43% to 88.11 roubles.
31/03/2020
Bahrain-Based GIB Names New Chief Executive Officer
Jamal Al Kishi, Deutsche Bank AG’s chief executive officer for the Middle East and Africa, has quit to join Bahrain-based Gulf International Bank BSC. Al Kishi, who had been with the German lender since 2007, will become CEO of GIB’s parent company and deputy group CEO, the bank said in a statement.
Headquartered in Bahrain, GIB is almost fully owned by Saudi Arabia’s Public Investment Fund. It also has operations in the U.K., U.S. and the United Arab Emirates, according to its website. Al Kishi is leaving Deutsche Bank as the lender puts on hold plans to cut almost 18,000 jobs over the next three years because of the coronavirus outbreak. The layoffs were part of a restructuring to restore the bank to profitability after half a decade of losses. The bank is in the process of appointing a replacement for Al Kishi and will make an announcement soon, it said in an internal memo seen by Bloomberg. A spokesman for Deutsche Bank declined to comment.
Deutsche Bank’s Middle East operations have recently suffered a number of several high profile departures. Its CEO for Saudi Arabia left last year to become the head of international investments at Prince Alwaleed bin Talal’s Kingdom Holding Co., while Faisal Rahman, co-head of corporate and investment banking for Central and Eastern Europe, Middle East and Africa, left after almost 18 years in 2018 to join SoftBank Group Corp.
31/03/2020
Fall in Oman’s Real Estate Transactions in January
Property transactions fell 30.6 % to reach a value of RO 167.3 million (US$435.955 million) by the end of January 2020, down from RO 241 million (US$628.004 million) for the same period of 2019. According to preliminary statistics issued by National Centre for Statistics and information (NCSI), the number of plots registered by end January 2020 was 17,494, representing a decline of 14.7 % from the end of January 2019, when 20,511 plots were registered.
Of the total traded value until the end of January 2020, RO 60.1 million (US$156.610 million) worth transactions were sales contracts, while RO 103.8 million (US$270.485 million) transactions were mortgage deals. As many as 4,595 sales contracts were executed in January 2020 against 5,599 contracts during the same period of 2019. However, the total number of mortgage contracts fell by 9.8 % to reach 1,087 contracts against 1,205 contracts in 2019.
The Sultanate’s government collected RO 6.6 million (US$17.198 million) as real estate transaction fees until the end of January 2020, which is a drop of 19.2 % compared to the same period of 2019. NCSI data reveal a significant fall in traded value of exchange (barter) contracts by 14.7 % during January 2020 period to RO 3.4 million (US$8.859 million), as against RO 3.9 million (US$10.162 million) posted in the comparable period of 2019.
The number of barter contracts witnessed a rise of 0.6 % to a total of 156, compared to 155 contracts in 2019. The number of plots allocated to GCC citizens fell by 15.3 % to reach 61 plots compared to 72 plots during the same period of 2019, the data showed.
31/03/2020
Oman Oil Price Dips
The Oman Crude was traded at US$23.95 Dubai Mercantile Exchange for May delivery. The crude price witnessed a decrease of US$2.17 compared to Friday’s price of US$26.12. Globally, oil prices fell to the lowest in more than 17 years as demand plunged as a result of the pandemic and an unrelenting price war between Saudi Arabia and Russia showed no signs of easing.
Brent crude prices hit US$23.03 a barrel on Monday morning during Asia hours – the lowest level since November 15, 2002. It has since clawed back some losses following that recorded decline but was last still 5.86 percent lower at US$23.47 a barrel.
31/03/2020