First product launch in 2019, Dubai Holding invest in digital bank for businessesRoemarie Ann Periabras
First product launch in 2019, Dubai Holding invest in digital bank for businesses
Dubai Holding said in a statement, the digital bank will target small and medium-sized businesses. Dubai Holding, the investment vehicle of the emirate’s ruler, said it plans to invest up to 1 billion dirhams ($272 million) over the next five years in a digital bank in the United Arab Emirates that is expected to launch its first product in 2019. The move comes as Dubai and other cities across the Gulf region are competing to establish themselves as regional powerhouses in financial or fintech.
The UAE government and financial institutions in the country are aggressively pushing for digitisation of financial services, moving away from traditional brick and mortar models of business. The move is in line with industry trends globally as corporates look to improve efficiency and reduce costs. A number of banks, including Emirates NBD, the largest lender in Dubai, last year established a digital banking service targeted at millennials as it seeks to bolster its retail business. and Mashreq Bank have invested or are planning to invest substantially on enhancing their digital infrastructure.
Dubai Holding said it plans to eventually expand the bank’s services across the Middle East and North Africa.
Abdulla Al Habbai, said the chairman at Dubai Holding said, “We are enabling digital opportunities with the potential to empower individuals and businesses to leverage new financial technologies for additional convenience and to unlock new business opportunities,”