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e& delivers strong H1 2024 performance, consolidated revenue up 6% to AED 28.3 billion

By
Sahfy Sahfy
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e& delivers strong H1 2024 performance, consolidated revenue up 6% to AED 28.3 billion
e& delivers strong H1 2024 performance, consolidated revenue up 6% to AED 28.3 billion

 e& today announced its consolidated financial results for the first half of 2024, reporting consolidated revenues of AED 28.3 billion, a year-over-year (YoY) growth of 6 per cent, demonstrating strong performance across all business verticals.

Reflecting the effectiveness of its strategic focus on growth in local and international markets, the group’s consolidated net profit grew by 17 per cent to AED 5.5 billion. Furthermore, consolidated EBITDA reached AED 12.9 billion, resulting in a healthy EBITDA margin of 46 per cent.

e&’s robust financial results are driven by its relentless focus on maintaining its growth momentum with a strong commitment to drive innovation while enabling a digital future for customers across its markets. This is further evidenced by the group’s growing subscriber base, with total subscribers reaching 175 million in a significant YoY increase of 6 per cent while the total number of e& UAE subscribers reached 15 million, representing a YoY growth of 5 per cent.

Financial Highlights for H1 2024

  H1 2024 H1 2023 Per cent change
Revenue AED 28.3 billion AED 26.6 billion 6% (*)
Net Profit AED 5.5 billion AED 4.7 billion 17%
EBITDA AED 12.9 billion AED 12.8 billion 2% (*)
Earnings per Share AED 0.63 AED 0.54 17%
Consolidated Group Subscribers 175 million 165 million 6%

(*) At constant exchange rates, revenue increased by 8 per cent and EBITDA increased by 3 per cent year-over-year.

Delivering on its promises of maximising value to its shareholders, e&’s Board of Directors approved an interim dividend of 41.5 fils per share for the first half (January to June) of 2024, in accordance with the new dividend policy that was greenlit by the shareholders at the Annual General Meeting (AGM) earlier this year.

The newly approved dividends policy stipulates an incremental increase of AED 0.03 per share every year for the fiscal years 2024, 2025, and 2026.

H.E. Jassem Mohamed Bu Ataba Alzaabi, Chairman, e&, said: “e& showcased remarkable resilience and sustained its upward trajectory in the first half of 2024, achieving consolidated net profits of AED 5.5 billion, representing a year-over-year growth of 17 per cent. This robust performance was driven by our unwavering commitment to excellence and innovation”.

“We are proud of the progress made in the first half of 2024, which was bolstered by our recent acquisitions, partnerships, and strategic expansion of our digital services portfolio. These efforts significantly strengthen e&’s position as a leader in digital transformation, providing state-of-the-art solutions to our diverse customer base”.

Reflecting on e&’s growth trajectory and future prospects despite challenges in some of its markets, H.E. Alzaabi commented, “e& remains committed in delivering top-tier services and advanced technologies with a focus on purpose and value. Our ongoing investments in digital infrastructure and emerging technologies position us as a driving force for innovation and growth, making us the preferred partner in advancing the digital economy. With the support and vision of the UAE leadership, we will continue to play a crucial role in shaping the digital landscape and driving socio-economic progress, thereby reinforcing the UAE’s status as a global innovation hub”.

Hatem Dowidar, Group Chief Executive Officer, e&, said: “e&’s performance in the first half of 2024 highlights our dedication and efforts to foster growth and efficiency while demonstrating resilience and adaptability to the various challenges in some of our markets”.

“e& achieved impressive results with consolidated revenue increasing by 6 per cent to AED 28.3 billion, and consolidated EBITDA rising by 2 per cent year-over-year to AED 12.9 billion. Our success is driven by our relentless pursuit of technological innovation, delivering tangible value to our customers and shareholders. We have embraced advanced and emerging technologies, launching numerous AI-driven initiatives and platforms, underscoring our leadership in digital transformation. Strategic partnerships have enhanced our service portfolio, while we continue to expand our global presence through successful acquisitions”.

“Looking ahead, I am confident that our dedication to empowering individuals, businesses, and communities through technology will pave the way for growth and create a meaningful impact in people’s lives. Despite the challenges in some markets, we will focus on seizing the opportunities ahead. With the unwavering efforts of our teams, we can accelerate our progress, take bold actions to enhance our value proposition, and expand access to connectivity. We are deeply grateful to our customers and shareholders for their continued support and trust as we explore new avenues and achieve new milestones,” added Dowidar.

 Key Operational Highlights

e&

e& was crowned the Fastest Growing Tech Brand and the Most Valuable Brand Portfolio in the Middle East and Africa (MEA), according to the 2024 Brand Finance Global 500 Report in recognition of the group’s exceptional performance in increasing the value of its brand portfolio to US$17 billion in 2024, reflecting the confidence of investors and partners in e&, which has also been named the world’s Strongest Telecom Brand in the World for 2024 with a score of 89.4 out of 100 on the BSI Index with a leadership rating of AAA. e& was also named a Great Place to Work® by the Great Place to Work Institute in recognition of the company’s efforts to foster a positive, supportive, and engaging work environment for its employees.

e& and Abu Dhabi National Oil Company (ADNOC) joined forces to build the world’s largest private 5G network for the energy sector. This groundbreaking initiative will revolutionise the industry by enabling blazing-fast data transfer and connectivity across ADNOC’s 11,000-square-kilometre operation. This powerful network will empower ADNOC’s AI solutions to access remote onshore and offshore sites, driving significant technical advancements and innovation.

e& and Vodafone joined forces to empower other regional and international operators to adapt  to the evolving voice landscape with cross-border managed voice solutions. The group also signed an agreement with Dell Technologies to drive 5G innovation through Dell’s Open Telecom Ecosystem Lab (OTEL) and another with Huawei to build green and energy-efficient networks.

In a major move for the telecom industry, e& and its partners in the Global Telco AI Alliance formed a joint venture in H1 2024. This venture aims to develop cutting-edge Large Language Models (LLMs) specifically designed to revolutionise customer service through advanced AI solutions.

e& Carrier & Wholesale (C&W) has made advancements in accelerating the growth of connectivity with milestone agreements in the subsea cable space with  2Africa subsea cable, the most extensive subsea cable system landing in the UAE to date, making a huge leap forward in positioning the UAE as a global hub for digital connectivity and providing advanced digital infrastructure that supports economic development and innovation.

A collaboration with Ooredoo will introduce the Gulf Gateway Cable (GGC-1), connecting data centres in Abu Dhabi and Doha while facilitating seamless communication and data exchange. In addition, C&W launched the region’s first Smart Connect (Bandwidth on Demand) service, allowing operators to scale their connectivity requirements on the go with unmatched flexibility and control over bandwidth provisioning.

e& joined forces with Telecom Egypt, Indonesia’s Telin, and a major unnamed Indian telecom company to develop the ICE IV subsea cable project. This ambitious project aims to connect Southeast Asia and India seamlessly to the Middle East. Additionally, e& has expanded its state-of-the-art Tier III SmartHub network to Abu Dhabi. This expansion strengthens the region’s entire digital ecosystem by providing advanced infrastructure.

e& Carrier & Wholesale continued its ascendancy, winning the ‘Edge Innovation of the Year’ Award at the 2024 Data Centre Solutions (DCS) Awards, followed by ‘Middle East Regional Operator of the Year’ and ‘Best Regional Data Center Operator’ at the Carrier Community Global Awards (CCGA). In addition, e& group won top positions in the MMA MENA Smarties Awards for its innovative solutions in customer and user experience and design.

e& UAE

e& cemented its leading position in telecommunications and technology, shattering speed records by achieving the world’s fastest data transfer rate of 30.5 Gbps on its live 5G network in the UAE. This breakthrough strengthened the country’s reputation as a global hub for digital innovation and reinforced e&’s leadership in 5G technology.

Setting an industry benchmark in the Middle East, e& UAE announced a network upgrade capability that will deliver speeds of up to 50 Gbps. Powered by the successful completion of the Middle East’s first symmetric 50-Gigabit-capable Passive Optical Networks (50G-PON) broadband service, e& UAE is set to accelerate the digital experience for households and businesses.

Further demonstrating its commitment to advancing 5G technology, e& UAE released a comprehensive whitepaper highlighting the transformative potential of 5G networks in driving progress across various sectors and providing the advanced infrastructure needed for the UAE’s prosperous digital future.

e& continued to play an integral strategic part in the UAE’s global leadership in Fibre-to-the-Home (FTTH) penetration, cementing the country’s top position with a penetration rate of 99.3 per cent. e& UAE remains squarely focused on realising the nation’s connectivity ambitions, enabling homes and businesses to benefit from the latest high-speed internet services, enhancing productivity, and enriching the customer experience.

Championing innovation, e& UAE partnered with Corning Incorporated to bring cutting-edge Fibre-to-the-Yacht (FTTY) services to the water’s edge at Yas Marina in Abu Dhabi. This collaboration utilises Corning’s advanced fibre optic cables to deliver high-speed internet connectivity to all yachts docked there.

e& UAE also collaborated with Nokia to bring Multi-Access Edge Slicing, a first for its network, and also broadened its partnership with Oracle to fuel AI advancements, deploying NVIDIA H100 GPU clusters within e& UAE’s Oracle Cloud Infrastructure (OCI) Dedicated Region, located at its data centres.

e& UAE set a new benchmark as the first company outside North America to deploy Microsoft’s Azure Operator Nexus and Azure Operator 5G Core solutions. Continuing its efforts to elevate customer experiences using custom Generative AI (GenAI), e& UAE partnered with Amazon Web Services (AWS).

In a strategic move to enhance global connectivity, e& UAE became the first operator to join Yahsat’s Direct-to-Device (D2D) ecosystem, which brings satellite coverage to standard smartphones.

Spearheading advancements in aerial mobility and autonomous systems across the country, e& UAE announced a partnership with Multi Level Group (MLG) to drive innovation in electric vertical take-off and landing (eVTOL) aircraft and drone development, as well as integrated solutions utilising its leading 5G network and digital expertise. The partnership was revealed in live demonstrations of eVTOL aircraft and drones powered by e& UAE’s 5G network.

Demonstrating its commitment to delivering outstanding customer service, e& UAE continued to drive innovation, expanding its market reach and opening the second AI-powered autonomous telecom store, ‘EASE,’ in Dubai Mall. The self-service telecom store is designed with cutting-edge technology to help customers seamlessly purchase products and services.

e& UAE has successfully implemented AI-driven solutions to enhance customer experience, resulting in over 30 per cent fewer technical calls and a 40 per cent reduction in technician visits.

In a strategic collaboration to foster economic growth, the company partnered with the Abu Dhabi Chamber of Commerce and Industry to empower Small and Medium Enterprises (SMEs), leveraging its expertise in digital technologies to facilitate digital transformation processes for SMEs in Abu Dhabi.

e& UAE brought Copilot for Microsoft M365, the transformative AI tool, to small and medium-sized businesses (SMBs) and enterprises. Copilot is an AI-powered assistant that integrates with various Microsoft 365 applications, seamlessly boosting productivity, creativity, and overall workflow efficiency while extending the data privacy and security of the Microsoft cloud.

Supporting Small and Medium Businesses, e& UAE celebrated business excellence by launching the third edition of its SMB Awards 2024, a benchmark for recognising and celebrating outstanding achievements of SMBs in the UAE.

Demonstrating its commitment to social responsibility and digital inclusion, e& launched an AI-powered browser extension called “Wider Web” to support an autism-friendly browsing experience. The free-to-use browser extension empowers autistic users and caters for their needs by offering a customisable, sensory-friendly web-browsing experience.

Marking an important step towards digitised education in the country, e& UAE launched its groundbreaking AI-powered platform, GoLearning. The e-learning platform redefines the learning experience, offering a vast library of over 10,000 accredited courses, including a generous selection of more than 4,000 free courses focused on professional and personal development. GoLearning empowers everyone to pursue endless learning opportunities and skill development, focusing on maintaining the highest quality content.

In its continuous effort to support young Emirati talents and empower them with opportunities in the private sector, e& held the 2024 edition of its virtual coding camp to enable students and teachers with the essential technical skills to navigate and succeed in today’s dynamic digital world. It also announced the opening of applications for the sixth cohort of its AI Graduate Programme, which is set to commence in September 2024.

In recognition of its efforts to provide a supportive work environment for employees, e& UAE attained the highest position in Brand Finance’s inaugural Employer Brand Report 2024 ranking as the Top Global Telecom Employer, marking yet another important milestone in its track record.

e& life

e& life, the business pillar of e& that enriches people’s digital lives, continued to embrace its vision of simplifying its services, releasing the updated version of the e& money app, which became the UAE’s number one fintech app in terms of monthly active users. e& money 2.0 now boasts full Arabic language support, making it accessible to a wider audience.

evision, the media and entertainment streaming arm of e& life, continued to enhance and develop its content library to meet the diverse requirements of MENA audiences. In the first half of 2024, evision recorded significant growth, surpassing 5.5 million subscribers. STARZ ON, its ad-supported streaming platform in the Middle East and North Africa, has been a key driver of growth.

The STARZ ON free experience was enhanced with a diverse range of content, including sports, Arabic and Turkish programming with Noor Play, and Mandarin and Korean programming with iQIYI. The strategic partnership with Noor Play also extends to cover a diverse range of premium content across Starzplay, eLife, SwitchTV and other e& platforms

To cater to the sub-continent audience, evision secured exclusive rights to the ICC Cricket World Cup and acquired exclusive rights to exciting Hotstar (Disney Star), Zee, and Viacom 18 content.

evision further solidified its entertainment offerings by signing multi-year deals with major studios including Sony Pictures Television and Amazon MGM. These deals bring the latest blockbusters, renowned classics, and family favourites from both cinema and television to Starzplay, eLife and Switch TV.

In addition, evision strengthened its sports portfolio by acquiring exclusive rights to UFC for the MENA region.

 e& enterprise

e& enterprise remains a powerhouse for digital transformation in the private and public sectors. Its innovative tech solutions and enhanced digital services continue to empower businesses across industries to achieve their goals and accelerate growth.

e& enterprise marked a significant step towards regional digital transformation leadership. It expanded its global footprint by acquiring GlassHouse, a leading Turkish provider of managed cloud, business continuity, and SAP infrastructure services. This strategic move grants e& enterprise entry into the pivotal Turkish market, positioning it for significant growth and expansion.

In the first half of 2024, e& enterprise signed two landmark collaboration agreements with Burjeel Holdings, including the launch of a pioneering telemedicine services project and an MoU to transform delivery models and redefine healthcare in the UAE and beyond. This strategic collaboration represents a transformative approach to healthcare that prioritises accessibility, efficiency, and sustainability across the region.

Pioneering a new approach to digital payments, e& enterprise forged a strategic partnership with Fils. This partnership establishes a sustainable digital payments model, empowering companies to provide customers with greater transparency.  Companies can now share the carbon footprint associated with each transaction, along with the option to offset emissions through reliable methods.

With Abu Dhabi Social Support Authority (ADSSA), e& enterprise developed the “House Visits and Interviews Management System.” marking a significant milestone in ADSSA’s digital transformation journey. The system streamlines social workers’ field visits, ultimately enhancing the efficiency and impact of social support services for low-income families in Abu Dhabi.

e& enterprise continues to champion digital innovation in the region. Through a strategic partnership with SAS, it brings cutting-edge AI solutions and advanced data analytics to businesses in the UAE and Saudi Arabia. This partnership empowers companies across various sectors to leverage the power of AI and data for operational improvements and informed decision-making. e& enterprise also signed an agreement with Dubai Public Prosecution (DPP) to develop the world’s first central digital system for remote investigation and litigation, streamlining the justice system and enhancing its efficiency and speed.

Reaffirming its commitment to accelerating Saudi Arabia’s digital transformation, e& enterprise entered a strategic partnership with the King Abdullah Financial District (KAFD) and the International Data Corporation (IDC). This project focused on analysing the Kingdom’s current digital landscape, e& enterprise’s investments in the region, and its alignment with the goals of Saudi Vision 2030. Creating jobs and boosting customer experience, e& enterprise opened a new state-of-the-art Contact and Customer Experience Centre in Riyadh equipped with the latest technologies to deliver exceptional customer service. The new facility is designed to support Saudisation and is expected to create over 1,500 new local job opportunities across administrative, technical, and specialist roles.

e& enterprise partnered with NICE to bring cutting-edge customer service solutions and the Contact Centre as a Service (CCaaS) platform to businesses in the UAE.

e& enterprise has joined forces with Payit, the leading e-wallet from First Abu Dhabi Bank, to streamline digital payment processes for businesses across the UAE. This strategic partnership leverages e& enterprise’s Payment as a Service (PaaS) platform to increase customer satisfaction and boost digital payment adoption rates.

Demonstrating its commitment to innovation, e& enterprise unveiled haifin, the new brand identity for its leading blockchain-based trade finance platform. Previously known as UAE Trade Connect, haifin simplifies and facilitates trade across the MENA region.

haifin welcomed three new members to its consortium which included two banks and one fintech, including Sharjah Islamic Bank which became the 14th bank to join the platform. Haifin is now ISO/IEC 27001:2022 certified and has 18 members including commercial banks, Islamic banks and fintechs.

e& enterprise, in collaboration with the National Health Insurance Company (Daman), has launched a global first – Hayakom, a revolutionary digital service chain for the health insurance sector. This innovative platform aims to significantly enhance customer service experiences within the UAE’s health insurance landscape.

e& international

e& international marked a significant step forward in its global expansion during the first half of 2024.

Uzbekistan’s Perfectum joined e& international’s Partner Market Programme in a strategic move designed to accelerate digital transformation within the country’s telecommunications sector. The programme offers Perfectum access to e& international’s extensive expertise and cutting-edge solutions. By leveraging this partnership, Perfectum can fuel business growth, drive innovation across industries, and play a key role in Uzbekistan’s digital future.

PTCL launched a new combined UPTCL app that covers PTCL, Ufone, and Flash Fibre in one app. The app is the first platform of its kind in Pakistan that serves as a single digital channel for wireless and fixed line customers to manage their connections, profiles, payments, and more.

e& Egypt launched e& Neo, in conjunction with Mashreq Bank , the first digital banking services in Egypt.

e& Egypt received the “Business Excellence Award – Egypt 2024”, earning special recognition for outstanding Culture and People Practices.

Onic, e&’s digital brand in Pakistan, secured a double victory at the Pakistan Digital Awards, clinching Best Mobile App and Digital Ambassador of the Year.

Etisalat Afghanistan acquired 15 MHz of spectrum in the 1800 and 2600 bands, holding the largest spectrum in the market.

e& capital

e& capital, the investment arm of e&, has become a major player in the Middle Eastern venture capital (VC) ecosystem. It has invested nearly US$ 150 million in startups that are shaping the future of technology in the MENA region and the world.

e& capital’s investments cut across various exciting technology-led industries, including AI, SaaS, edtech, healthtech, telecommunications, and entertainment, strategically complementing the group’s wide range of services. Key investments include Ikigai, an AI platform developed from MiT research that delivers highly accurate forecasts and time series predictions; Airalo, the global leader in travel eSIMs; and Traydstream, a platform digitising and automating the trade finance industry globally.

Global leaders to address: the evolving dynamics of fan engagement at New Global Sport Conference

By
Sahfy Sahfy
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Global leaders to address ‘The Future of Fandom’ and explore the evolving dynamics of fan engagement at New Global Sport Conference
Global leaders to address ‘The Future of Fandom’ and explore the evolving dynamics of fan engagement at New Global Sport Conference

The second edition of the New Global Sport
Conference (NGSC) gathers visionary leaders from esports, gaming, business,
mainstream sports, and entertainment to explore this year’s theme ‘The Future of
Fandom’.
Hosted at the Four Seasons Hotel Riyadh At Kingdom Centre on August 24-25,
NGSC will discuss how fandom is evolving and its significant impact on business
planning, content creation, IP and media rights, marketing, and strategic community-
building.
NGSC will host sessions that will highlight the challenges and opportunities in
crafting a new global sporting legacy, the role of technology in shaping the future of
competitive gaming, and the art of storytelling in esports.
More than 60 global leaders from their respective sectors will share insights on
innovation, market expansion, and the creation of game titles designed to endure for
decades. The theme of the event is especially apt considering an astounding 67% of
Saudi Arabia’s native population identify as gamers.
The first speakers to be announced for this year’s #NGSC24 include:
● HRH Prince Faisal bin Bandar bin Sultan, Chairman of the Saudi Esports
Federation
● Ralf Reichert, CEO of the Esports World Cup Foundation
● Magnus Carlsen, World Chess Champion
● Toshimoto Mitomo, Executive Deputy President and CSO, Sony

● Lisa Hanson, CEO, Niko Partners
● Andrew Chen, General Partner, Andreessen Horowitz
● Dr. Songyee Yoon, Managing Partner of Principal Venture Partners and
Trustee of the Asian Art Museum Foundation of San Francisco
● Sir Leonard Blavatnik, Founder of Access Industries and Owner of DAZN
● Jann Mardenborough, Sim Racing & Motorsports Driver

Ralf Reichert, CEO of the Esports World Cup Foundation, said: “I’m thrilled about
the upcoming New Global Sport Conference, which will bring together some of the smartest and most experienced leaders across esports, gaming, tech, media, sports, and
entertainment, to dive into how esports redefines fan engagement. Building on the success of our first Esports World Cup and hosting it in Riyadh, we aim to spark conversations that will push the industry forward for years to come.”

The conference will focus on key themes such as ‘Fan Engagement in Sports and
Esports’ exploring the latest trends and strategies. These include the use of social
media, gamification, real-time interaction, personalized fan experiences, innovative
marketing tactics, and AI-driven content to enhance fan loyalty and drive growth.
Speakers at the conference will also shed light on the recent news about a historic
milestone for the development of esports, coming out from the International Olympic
Committee (IOC), partnering with the National Olympic Committee (NOC) of Saudi
Arabia to host the inaugural Olympic Esports Games 2025 in the Kingdom for the
next 12 years.

Global leaders to address ‘The Future of Fandom’ and explore the evolving dynamics of fan engagement at New Global Sport Conference

NGSC’s inaugural edition last year saw the unveiling of the first Esports World Cup –
currently taking place in Riyadh – and the Esports World Cup Foundation. The latter,
a non-profit organization, is dedicated to fostering collaboration within the esports
community and ensuring the sector’s long-term sustainability. Building on the
success of its inaugural event, the NGSC continues to grow, having integrated the
2022 and 2023 editions of the Next World Forum under its umbrella.
Together with the Esports World Cup and the Esports World Cup Foundation, NGSC
aligns with Saudi Arabia’s comprehensive National Gaming & Esports Strategy,
which was unveiled in 2022. The strategy is aligned with Vision 2030 and highlights
the Kingdom’s commitment to leadership and innovation in this global dynamic
sector.
Moreover, the strategy reflects Saudi Arabia’s vision to position the country at the
forefront of the global gaming landscape, create 39,000 jobs locally, and contribute
$13.3 billion to the Kingdom’s economy.

CIPS Global State of Procurement and Supply 2024 Report: A Comprehensive Insight into the Future of Procurement

By
Sahfy Sahfy
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CIPS Global State of Procurement and Supply 2024 Report: A Comprehensive Insight into the Future of Procurement
CIPS Global State of Procurement and Supply 2024 Report: A Comprehensive Insight into the Future of Procurement

The Chartered Institute of Procurement & Supply (CIPS) recently published the highly anticipated Global State of Procurement and Supply 2024 report, in partnership with GEP. The survey, which gathered insights from chief procurement officers (CPOs), procurement directors, and heads of procurement and supply across 122 organisations with a combined turnover of $73 billion, sheds light on the evolving landscape of the procurement and supply function.

The report highlights the increasing influence of the procurement and supply function within organisations. An impressive 68% of respondents noted that the influence of procurement and supply is on the rise. In over two-thirds of the surveyed organisations, procurement and supply manage or influence 60% of spend on direct goods. Despite small team sizes (51% of which have fewer than 20 members), CPOs are making significant impact and commonly report to CFOs.

“Sustainability is a key focus for procurement leaders. The report reveals that 69% of organisations plan to invest in sustainability measures, and 77% have an ethical sourcing policy. Respondents believe that procurement has significant power to influence Environmental, Social, and Governance (ESG) issues. The challenge now is to build skills in managing sustainability effectively,” said Sam Achampong, Regional Managing Director, CIPS MENA.

Top 5 areas where procurement and supply will invest in the next 12 months:

  • Sustainability 69%
  • Digital technology 65%
  • Staff development and training 60%
  • Strategic sourcing 39%
  • Supply chain visibility 39%

Technological Advancements in AI and Automation

The role of technology and AI in procurement is another crucial finding. While automation is increasing, with 2% of procurement functions fully automated and 27% partly automated, the human element remains vital. A UK procurement leader noted, “Although automation is growing, it’s only making the relationship element more important to procurement success.” Investment in digital technology is a priority, with 65% focusing on this area in the next 12 months.

Addressing Supply Chain Shortages and Ensuring Continuity

Geopolitical factors are a major concern, cited by 69% of procurement leaders as a cause of potential supply chain disruptions. The report underscores the growing concern over supply chain shortages due to inflation, geopolitical uncertainty, and logistical disruptions. To ensure continuity of supply in a volatile world, strategies such as diversifying suppliers, insourcing, and holding more stock are critical.

To manage volatility and ensure continuity, procurement leaders are focusing on several strategies. Diversifying suppliers reduces dependency on any single source, insourcing critical components increases control, and holding more stock provides a buffer against disruptions. Leveraging data and technology also plays a crucial role in monitoring supply chains and predicting potential issues before they escalate.

“We’re incredibly excited about the year-one findings. It really is a treasure trove of insight into procurement and supply chain issues. It’s also a very senior-level insight,” Achampong added. “Our aim over time is to enable procurement and supply leaders to benchmark their function – and the pressures they’re facing – against other global professionals.”

The CIPS Global State of Procurement and Supply 2024 report provides invaluable insights for procurement professionals worldwide. As the function continues to evolve, the data and trends highlighted in this report will help leaders navigate the challenges and opportunities ahead.

ARAB BANK GROUP PROFITS GROW BY 25% TO $ 503MILLION FOR THE FIRST HALF OF 2024

By
Shams
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ARAB BANK GROUP PROFITS GROW BY 25% TO $ 503MILLION FOR THE FIRST HALF OF 2024

Arab Bank Group reported solid results for the first half of 2024, with 25% increase in net income after tax reaching $503 million as compared to $401 million for the same period last year. The Group maintained its strong capital base with a total equity of $11.5 billion.

Assets grew by 5% reaching $68.7 billion and at constant currency, the Group’s loans grew by 8% to reach $38.1 billion, and deposits grew by 6% to reach $50.5 billion.

Mr. Sabih Masri, Chairman of the Board of Directors, stated that the solid financial performance during the first six months underscores the successful execution of the bank’s prudent risk practices, diversified business model and its focus on core banking activities. Mr. Masri emphasized on the Group’s ability to continue achieving robust performance which reinforces its leading position in the market.

Ms. Randa Sadik, Chief Executive Officer, stated that the strong financial results reflect the bank’s robust assets base and strong capitalization. Ms. Sadik highlighted that the bank’s net operating profit grew by 11% driven by core banking activities coupled with controlled operating expenses. The bank continues to implement its digital strategy, expanding the offering of innovative digital solutions across the bank’s various business segments.

Ms. Sadik added that the bank’s balance sheet strength, solid capitalization, and high liquidity levels have well positioned the bank for sustainable growth. The Group’s loan-to-deposit ratio stood at 75.4% and credit provisions held against non-performing loans continue to exceed 100%. Arab Bank Group maintains a strong capital base that is predominantly composed of common equity with a capital adequacy ratio of 17.5%.

Arab Bank has recently received the “Best Bank in the Middle East 2024” award from New York-based international publication “Global Finance”, for the ninth consecutive year.

UAE Reaffirms Support for Sustainable Finance and Climate Action Empowerment at COP28-G20

By
Shams
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UAE Reaffirms Support for Sustainable Finance and Climate Action Empowerment at COP28-G20

His Excellency Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs, has reaffirmed the UAE’s commitment to sustainable finance and collaboration with Brazil, the current Chair of G20, to achieve climate finance goals, emphasising that finance has been and is still key for enabling climate action.

Al Hussaini announced the UAE’s plan to address the financing gap by the UAE banks offering sustainable financing by 2030 and contributing to the International Monetary Fund for resilience and sustainability to support countries vulnerable to climate change. He also highlighted that the UAE is the largest contributor to the GFMR trust fund.

Al Hussaini made these remarks during his participation in the COP28-G20 Conference on Sustainable Finance, held in Rio de Janeiro, Brazil, on July 24. The conference was part of the G20 finance ministers and central bank governors’ meetings, which was co-organised by COP28 and Brazil.

Present at the conference were Samir Sharifov, Minister of Finance, Azerbaijan; Fernando Haddad, Minister of Finance, Brazil; Marina Silva, Minister of Environment and Climate Change, Brazil; Sri Mulyani Indrawati, Minister of Finance, Indonesia; Marsha Caddle, Minister of Industry, Innovation, Science and Technology, Barbados; and senior representatives of multilateral development banks.

“During the COP28 conference, hosted by the UAE last year, a global consensus was reached on the need to limit the temperature rise to 1.5°C. This requires a fair and orderly transition away from fossil fuels, with global targets set to triple renewable energy and double energy efficiency by the end of the decade. To achieve these objectives, we will need to mobilise all sources of public, private, and charitable funding,” stated Al Hussaini at the COP28-G20.

“Realising this goal demands a shift towards climate investments and this presents an unparalleled opportunity for prosperity and economic growth. We need an international framework that supports the distribution of finance in ways that mitigate investment risks in developing countries,” added Al Hussaini.

His Excellency noted that the launch of the Global Climate Finance Framework at COP28 received support from many G20 member countries, commending the close collaboration with a team of high-level experts, which provided a roadmap for the necessary actions to implement this framework. He highlighted that finance ministries play a pivotal role in leading the transition towards climate investments.

Al Husseini pointed out that the G20’s review of multilateral climate funds this year, under the Brazilian presidency, is a necessary move to promote the agenda for accessible and affordable financing. “We hope that COP28 and G20 will establish a robust foundation for future COP conferences, which will be essential for propelling climate finance progress,” he added.

The conference featured discussions on creating a renewable financial structure to facilitate sustainable finance, unlocking investment opportunities for climate action, expanding concessional financing, and enabling private sector financing. It also discussed the role of multilateral development banks in becoming more effective and mobilising financial resources for national contribution plans.

The UAE, represented by the Ministry of Finance and the Central Bank of the UAE, took part in the third G20 Finance Ministers and Central Bank Governors (G20 FMCBG) meeting.

The UAE delegation was led by HE Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs, and included HE Ibrahim Obaid Al Zaabi, CBUAE’s Assistant Governor of the Monetary Policy and Stability Department; HE Ambassador Majid Al Suwaidi, the COP28 Director-General; Ali Abdullah Sharafi, Assistant Undersecretary of the International Financial Relationship Sector at the MoF; and Thuraiya Hamed Alhashmi, Acting Director of Relations and International Financial Organisations at the MoF.

Brazil, holding the current presidency, has steered the G20’s agenda on sustainable finance through the Sustainable Finance Working Group (SFWG). The group is working to advance the implementation of the Sustainable Finance Roadmap—a comprehensive, multi-year plan designed to guide the G20’s efforts on climate and sustainable finance.

This roadmap outlines four key priorities: enhancing access to international environmental and climate funds; fostering fair, reliable, and robust transformation plans; and establishing sustainability reporting standards that accommodate the diverse needs of all stakeholders, including SMEs, developing countries, and emerging markets.

Hedge funds see net inflows as positive performance continues

By
Shams
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Hedge funds see net inflows as positive performance continues

Equity and Global Macro funds were among the winners as hedge funds maintained their winning streak in Q2, making it seven consecutive quarters of positive returns, while the quarter also saw a return to net inflows for the first time since early 2022.

Funds administered by the Citco group of companies (Citco), the leading asset-servicer with over $2 trillion in assets under administration (AUA), delivered a weighted average return of 1.09% in Q2, to take the overall weighted average return year-to-date (YTD) to 7.62%. Some 80% of funds have now achieved positive returns so far in 2024.

Global Macro and Equity funds stood out in Q2, with weighted average returns of 2.26% and 2.25%, to take their YTD performance to 7.45% and 10.86% respectively. Commodity, Fixed Income Arbitrage and Multi-Strategy funds were also positive in Q2, with weighted average returns of 1%, 0.53% and 0.09%. This took YTD returns for Commodities to 3.66%, with Fixed Income Arbitrage at 0.8%, and Multi-Strategy at 5.93%.

All AUA categories also posted positive weighted average returns in Q2, bar the smallest funds which dipped into negative territory. Funds with between $1B-$3B of AUA were the top performers at 1.49%, followed by funds with between $550M-$1B of AUA at 1.39%. Next were funds with more than $3B of AUA, at 1.11%, while funds with between $200M-$500M of AUA were just positive at 0.09%. On a YTD basis, the largest funds remain in top spot, with a weighted average return of 8.18%, followed by the $1B-$3B category at 8.07%, and the $500M-$1B grouping at 6.54%. The $200M-$500M grouping was next at 4.99%.

In Q2, hedge funds saw their first quarterly net inflows since the start of 2022, with inflows in April and May outweighing June’s redemptions. In total, hedge funds had net inflows of $4.7B in Q2, with subscriptions of $50.3B outweighing redemptions of $45.6B. This was driven by net inflows of $6.6B and $7.1B in April and May respectively, which more than countered June’s redemptions of $8.9B.

Inflows were seen into a number of strategies, with Hybrids the standout after seeing net inflows every month in Q2 to give them $6.5B of net inflows overall. Hybrids continue to be popular, having already seen net inflows of $1.1B in Q1. Multi-Strategy funds had net inflows of $1.3B in Q2 despite a jump in outflows in June, while Fund of Funds were next at $1B, followed by Fixed Income Arbitrage strategies at $0.5B.

The second quarter was also Citco’s busiest to date from a trade volumes perspective. The main drivers of this were high frequency trading strategies, which accounted for a large share of the total trades as managers reacted to changes in market volatility.

Treasury volumes set another record in Q2, closing in on the 150,000 mark after three of the busiest months of record. Treasury payment volumes climbed to 147,267 overall in the second quarter, up 4% quarter-on-quarter.

Declan Quilligan, Head of Hedge Fund Services, Citco Fund Services (Ireland) Limited, said:

“Hedge funds administered by Citco continue to deliver positive performance overall, but the main takeaway in the second quarter was the return to net inflows.

“Funds enjoyed a prolonged period of net inflows prior to 2022, and we have now seen a return to that environment as investors look for options amid an expected switch in economic policy later this year.

“Whatever materializes on that front, there remain lots of opportunities for investors across the broad spread of offerings in the hedge fund market.”

Minister of Planning Discusses Cooperation Opportunities with Singapore’s Second Minister for Foreign Affairs and Education

By
Shams
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Minister of Planning, Economic Development, and International Cooperation Discusses Enhanced Cooperation Opportunities with Second Minister for Foreign Affairs and Education of Singapore

H.E. Dr. Rania A. Al-Mashat discusses future cooperation with Singapore in light of the government’s priorities for industrial localization, human capital development, and private sector encouragement.

The Second Minister for Foreign Affairs and Education of Singapore looks forward to exploring investment opportunities, particularly in the Suez Canal Economic Zone, aligned with common interests.

During her visit to Rio De Janeiro, Brazil, to attend the G20 Development Ministers’ Meeting, H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, met with Mr. Mohamad Maliki Osman, Second Minister for Foreign Affairs and Education of Singapore. They discussed mutual cooperation priorities for the upcoming phase in light of bilateral relations between the two countries, as well as the priorities of the new government, which emphasize human development, industrial localization, and other key agenda items.

During the meeting, H.E. Minister Al-Mashat praised the longstanding Egyptian-Singaporean relations characterized by consultation and joint coordination across all levels. Both countries share a mutual interest in developing these relations, having signed numerous partnership agreements over the past four decades that have enhanced developmental partnerships in various economic, trade, investment, and cultural sectors.

The meeting also discussed cooperation priorities for the upcoming phase, especially in light of the new government’s agenda and its program for the period (2025/2024-2027/2026), which prioritizes human capital development, healthcare, education, and industrial localization. The government’s efforts to attract investments through various incentives and steps were also highlighted, with structural reform policies aimed at enabling the private sector to lead development efforts in the coming period, thereby enhancing efforts to attract both foreign and domestic investments.

The meeting noted the improvement in Egypt’s economic indicators over the past period as a result of state efforts and measures. The government continues to consolidate the foundations of economic recovery, empower the private sector, and build a resilient economy by enhancing overall economic stability and increasing employment rates.

H.E. Minister Al-Mashat also highlighted strong partnerships with multilateral and bilateral development partners, including strategic partnerships with the European Union, the World Bank Group, and the African Development Bank, through which numerous developmental projects are being implemented and structural reform measures supported.

On his part, Second Minister for Foreign Affairs and Education of Singapore praised Egypt’s role amidst the unstable geopolitical conditions in the region and expressed his aspiration to explore investment opportunities in Egypt in light of the country’s ongoing reforms and incentives provided to the private sector, particularly within the Suez Canal Economic Zone, aiming to collaborate in priority areas for both countries.

Egypt, EU Discuss Priorities for Next Stage of Strategic Partnership

By
Shams
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H.E. Dr. Rania A. Al-Mashat discusses with the European Union delegation the priorities for the upcoming phase within the framework of the strategic partnership between both sides

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, convened a meeting with Ambassador/Simon Mordue, Deputy Secretary-General of the European External Action Service (EEAS), in the presence of Ms. Antonia Zafeiri, Head of the Political Section at the EU Delegation. The meeting included follow-up on the implementation of agreements from the Egyptian-European Investment Conference held last month and discussions on establishing a joint framework with the EU to activate a €1.8 billion investment guarantee mechanism to stimulate local and foreign investments in mutually beneficial sectors. Development cooperation relations were also discussed within the framework of implementing the national platform for the “NWFE” program, linking water, food, and energy projects.

At the outset of the meeting, H.E. Dr. Al-Mashat welcomed EU officials, affirming the depth of Egyptian-EU relations reflecting strong historical ties between both sides. She pointed out the recent significant developments in these relations, particularly elevating the partnership level during the Egyptian-European Summit held in March, underscoring substantial opportunities for joint work to enhance development efforts focusing on mutual areas of interest.

The meeting reviewed the successful convening of the Egyptian-EU Investment Conference, which witnessed the signing of numerous joint investment agreements involving European private sector companies. H.E. Minister Al-Mashat stressed the importance of building on this momentum and advancing Egyptian-EU partnership to meet development requirements in the coming phase, supporting Egyptian state efforts to empower the private sector, increase local and foreign investments, and proceed with economic and structural reforms. Discussions also covered cooperation with the European Union in enhancing human development efforts and implementing economic empowerment programs for youth and women, top priorities under the government’s new agenda.

In this context, H.E. Minister Al-Mashat clarified that the government, through its new program, aims to achieve several objectives enabling the Egyptian economy to confront challenges and embark on new horizons. H.E. Dr. Al-Mashat emphasized the government’s determination to govern and enhance the efficiency of investment spending to bolster macroeconomic stability, adding that the Ministry of Planning, Economic Development, and International Cooperation coordinates with development partners, including the EU, to implement structural reforms ensuring macroeconomic stability.

H.E. Dr. Al-Mashat highlighted the importance of investment guarantees provided by the European Union to encourage private sector investments in various priority projects such as renewable energy, green hydrogen, food security, digital transformation, among others. H.E. Dr. Rania Al-Mashat noted efforts to strengthen discussions with other development partners to expand investment guarantees that enhance state priorities in attracting local and foreign investments and increasing private sector participation in development efforts.

The Minister of Planning, Economic Development, and International Cooperation also affirmed the diversification of economic cooperation mechanisms with the European Union in various priority areas for both sides. H.E. Minister Al-Mashat emphasized the EU’s role as a partner in implementing the national platform for the “NWFE” program, which links water, food, and energy projects, enhancing Egypt’s efforts towards green transformation within the framework of the National Strategy for Climate Change 2050. Besides the EU, European institutions represented by the European Investment Bank and the European Bank for Reconstruction and Development play a vital role in mobilizing investments and blended finance for private sector investments across various program axes. Additionally, bilateral cooperation with several European countries, including Germany, enables debt swap programs for climate action.

H.E. Dr. Al-Mashat mentioned that over the past years, under the “Team Europe”  initiative, investments and financing totaling $12.8 billion have been mobilized from European governments and institutions for both government and private sectors. H.E. Minister Al-Mashat emphasized the potential for furthering the bilateral relationship based on developmental priorities and shared interests, particularly following the convening of the Egyptian-EU Investment Conference and the elevation of relationship levels, to support economic development efforts and increase investments.

In another context, discussions during the meeting referred to the fourth round of high-level dialogue on migration between Egypt and the EU recently hosted by the Ministry of Migration, involving representatives from the Ministry of Planning, Economic Development, and International Cooperation. The dialogue focused on Egypt’s efforts to combat illegal migration and host millions of migrants and guests. In this regard, H.E. Minister Al-Mashat highlighted the implementation of several programs supporting Egypt’s guests and migrants through various initiatives, noting the visit to Caritas Egypt Center, which was established in collaboration with the United Nations to improve living conditions and provide educational programs and social protection mechanisms for these families.

 

Gulf Islamic Investments finalises investment in GEMS Education

By
Sahfy Sahfy
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Gulf Islamic Investments finalises investment in GEMS Education
Gulf Islamic Investments finalises investment in GEMS Education

Gulf Islamic Investments group (GII) has concluded its funding arrangements in a consortium led by Brookfield Asset Management Ltd., through its Special Investments (“BSI”) and Middle East private equity programmes, to invest in the Dubai-headquartered private schools operator and service provider GEMS Education.

For GII, a leading Shari’ah-compliant global alternative investment group with over US$4.5 billion of assets under management (AUM), the completion of this investment represents the second transaction with Brookfield this year. In April 2024, GII sold its majority shareholding in its UAE logistics business for an undisclosed amount to Brookfield.  

GEMS has provided educational services in Dubai for over six decades and is the largest private schools’ operator in the Middle East. It expects to welcome more than 140,000 students across its 46 schools in the UAE and Qatar by September 2024, including two schools opening in the emirates of Dubai and Abu Dhabi this August.

Pankaj Gupta, GII’s co-founder and co-CEO, commented, “The UAE’s spectacular economic growth is founded on a strong educational base, empowered by the leadership’s support and attitude that ‘nothing is impossible’. Our investment in GEMS will allow the company to supercharge the next phase of its growth plans”.      

Mohammed Alhassan, GII’s co-founder and co-CEO, added, “As established investors, GII has a track record of investments across the GCC in several verticals, including in education, healthcare, logistics, food, education and real estate. We are very excited to develop our relationship with GEMS Education, the Gulf’s largest provider of private schooling”. 

Sunny Varkey, GEMS’ Founder, concluded, “GEMS has experienced significant growth over its recent history, becoming one of the world’s most respected education companies. These investments demonstrate the breadth of the business, the educational quality, and the critical infrastructure that we deliver collectively for the UAE”.

Bitpanda Technology Solutions annual update: Quarterly Registrations increased by over 100% YoY

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Shams
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Bitpanda Technology Solutions annual update: Quarterly Registrations increased by over 100% YoY

Bitpanda Technology Solutions, the leading European digital assets infrastructure provider, is now trusted by several of Europe’s biggest banks and fintechs to provide the infrastructure necessary for their users to invest and trade digital assets. Thanks to these new partnerships, the total number of end users who can access digital assets via Bitpanda’s infrastructure is now more than 25m. 

Throughout 2023, Bitpanda Technology Solutions developed its product offering to incorporate several of the innovations available as part of Bitpanda’s core offer. This means Bitpanda Technology Solutions partners now have access to a crypto asset offering of over 400 coins, crypto leverage trading, institutional HSM cold storage custody both on-premise and as a service, and operational models ranging from fully in-house hosted to fully remote. This is alongside a fully regulatory setup that includes several licences, a full range of digital assets from stocks and ETFs to commodities and precious metals, and a range of best-in-class security features. All these benefits can still be integrated by partners as part of a modular and scaled 24/7 trading infrastructure in as little as 3 months. 

Lukas Enzersdorfer-Konrad, CEO of Bitpanda Technology Solutions commented: “More and more banks and financial entities are entering this space driven by the adoption of digital assets. Our incredible growth is proof of this and that we have become the preferred digital asset infrastructure partner for institutions. As demand increases, competition also increases, and institutions face a choice: offer digital assets and benefit from new revenues or lose customers to competitors. It’s a clear case of sink or swim.”

Projected to reach a revenue of US$453.2 million in 2024, the sector is anticipated to grow at a steady 8.01% CAGR until 2028, reaching a total value of US$616.8 million.This growth is expected to be driven by a rising user base, projected to increase from 28.79% penetration in 2024 to 31.92% by 2028. While the US remains the global leader in digital assets revenue, the UAE’s market is poised for significant expansion, with average revenue per user estimated at US$164.1 in 2024

Walid BenOthman, Managing Director: “Bitpanda Technology Solutions has consistently set new standards in the digital assets industry, achieving remarkable success year after year. Our goal is to emulate this success in the MENA region, and with the UAE digital assets market expected to grow further, there is a strong appetite. Investors are eager to trade digital assets, and companies must decide whether to provide this opportunity and increase their revenue or let their competitors capture this growing market. The choice is clear.” 

In the last 12 months, Bitpanda Technology Solutions has announced both new partners and expansions to existing partnerships. Additionally, the team has made its first international expansion, opening a new office in the Middle East to serve customers in the UAE.

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