The Finance World Magazine| Edition: March 2023

UAE Banking News
Central Bank Governor
Dismissed in Saudi
Arabia
King Salman bin Abdulaziz
Al Saud of Saudi Arabia
has abruptly replaced the
governor of the country’s
central bank. Fahad Al Mubarak was
dismissed from his role through a royal
decree, according to the state-run
press agency. A new governor, Ayman
Alsayari, has been appointed with
immediate effect through another royal
decree. Last year, Saudi Arabia saw a
budget surplus of SAR 102B ($27.13B)
that was higher by SAR 12B($3.2B) due
to better than anticipated economic
results. The Central Bank Governor
has recently been assigned, with the
kingdom setting a budget estimating
revenue of SAR 1.234T ($328B) and
expenditures of SAR 1.32T($352B). To
maintain its currency’s peg to the US
dollar and align with the US Federal
Reserve’s interest rate hikes, the Saudi
Arabian Monetary Authority (SAMA)
has been increasing interest rates.
Finance Company Hit with AED 1.8M Penalty by
UAE Central Bank
The UAE Central Bank has
fined a finance company AED
1.8M for failing to follow antimoney
laundering and antiterror
financing laws. The central bank
conducted a review with a third-party
consultant and found repeated highrisk
violations by the finance company
along with operational shortcomings
by its board of directors. The company
has been instructed to address the
violations and the board of directors
has been asked to meet and resolve
issues regarding its composition. The
sanctions reflect the weak compliance
culture of the finance company in
regards to AML/CFT policies and
procedures.
Emirates NBD and Dubai Islamic Bank Named
SICO’s Top H1 Picks
SICO, a Bahrain-based financial
services company, has reported
that Dubai-based banks
Emirates NBD and Dubai
Islamic Bank are well-positioned in
the first half of 2023 due to elevated
net interest margins, given the current
high-interest rate environment. The
brokerage views equities as a less
attractive asset class and suggests a
bottom-up stock picking strategy over
top-down or passive investing this
year. In the second half of 2023, SICO
predicts that Qatari National Bank
and Commercial Bank of Qatar will
benefit from government spendingrelated
borrowing demand. Among
Saudi Arabian banks, the report favors
Saudi National Bank and SABB due
to their strong current account and
savings account books, a cheap source
of funds for banks.
Orient Insurance & Mashreq Unveil Guaranteed Return Savings Plan
Orient Insurance, part of Al-
Futtaim Group, has teamed
up with Mashreq, a leading
financial institution in the
UAE, to introduce Orient Educare,
a low-risk savings, investment, and
insurance plan with guaranteed returns.
The plan aims to offer financial security
for life events such as education and
retirement. Orient Educare will provide
customers with investment growth,
insurance coverage, and a guaranteed
maturity. This partnership will expand
Orient’s solutions and provide growth
opportunities for both companies
through Mashreq’s extensive network.
The new product is centered around the
customer’s needs and will complement
Mashreq’s existing offerings, helping
their customers to build a strong
financial plan.
14 www.thefinanceworld.com March 2023