The UAE is increasingly becoming a hub for FinTech startups by attracting regional and global players to set up shop here.

Attracted by strong support from government-related entities and the adoption of latest technologies by local banks and financial institutions, global FinTech startups have shown keen interest to have a regional base in the UAE to cater to other regional markets.

FinTech startups such as India’s FTCash and FRSLabs, Canada’s Market IQ, Singapore’s Alpha FinTech and Silent Eight and a host of other companies have expressed interest to open an office in the UAE.

“We are actively looking to open an office in Dubai and Abu Dhabi to cater to the Middle East. You need to have a local presence to achieve growth. We are in talks with local partners,” said Deepak Kothari, co-founder, and COO, FTCash.

Singapore’s Silent Eight – which won the Innovation Challenge at Fintech Abu Dhabi on Sunday – is also looking to open a UAE office.

“We came five weeks ago and the first thing we wanted to see in this region is how local banks care about problem statements. We see there is demand for our solutions in this region,” said Martin Markiewicz, CEO of Silent Eight.

Myra R. Ali, head of client relations and strategy, Market IQ, said: “We are looking to open offices in Dubai and Abu Dhabi. We were part of the Dubai Future Accelerator programme earlier.”

India’s FRSLabs, the winner of the Innovation Challenge at FinTech Abu Dhabi, hopes to have an office operational in the next year.

“Not just the UAE, we are also looking to expand in the whole Measa region. We want to have a presence in a place which is not just a sales hub but also a pioneer in terms of supporting the FinTech industry. In this part of the world, we need to have face-to-face meetings due to cultural reasons. We aim to have a presence in one year,” said Shankar P., founder and CEO, FRSLabs.

Ronan McDonnell, marketing coordinator, Alpha Fintech, said the aim is to open an office next year. “In the next couple of weeks, we will be talking to banks and show them the value of our solutions. You need people locally. On average, we have five people in our offices,” he said.

Source: www.khaleejtimes.com/legal-view/banking-laws/global-fintech-startups-keen-to-set-up-base-in-uae

Sage, the market leader in cloud business management solutions, and the RAKBANK announced a partnership agreement. This would entail RAKBANK to offer Sage accounting software to support its Business Banking customers of all sizes and across all industries.

Through this partnership, RAKBANK’s business customers can benefit from  Sage Business Cloud Accounting software at preferential rates.  Sage accounting solutions will enable the Bank’s customers to easily manage their businesses in compliance with the Value-Added Tax (VAT). RAKBANK is one of the largest SME lenders in the UAE and is committed to the growth of the sector through strategic partnerships that provide efficient and convenient solutions to its customers. Five of Sage’s VAT accounting products were accredited by the UAE Federal Tax Authority earlier this year in March, and are on the Approved Accounting Software list.

On the partnership, Mansoor Sarwar, Director of Technical Services and Pre-sales at Sage Middle East, said: “RAKBANK is one of the UAE’s most dynamic financial institutions, and it has a dedicated focus on small and medium businesses. They are aligned with Sage’s vision – to help business builders realise their ambitions – especially as Sage also started as a small business and grew beyond what seemed imaginable. We are honoured to partner with RAKBANK, and together support every type of business in the UAE with their business finance and accounting needs.”

Commenting on the partnership, RAKBANK’s Managing Director of Business Banking, Dhiraj Kunwar said: “Many SMEs  face difficulty in the accounting and cash flow management aspect of their business, especially with the implementation of the VAT. RAKBANK’s partnership with Sage will offer our Business Banking customers new features that meet all their VAT and accounting needs. As one of the largest SME banks in the region, we are delighted to have partnered with a company like Sage. This partnership is in line with our strategy of assisting businesses by offering them convenient digital solutions that support their exact financial requirements.”

In a survey conducted by Sage in the first quarter, 37 per cent of small and medium businesses stated that they struggle the most with accounting, and added that they were ill-prepared for complying with VAT regulations. “Entrepreneurs who are concerned about not managing their business finances or VAT effectively should look at implementing smart accounting products that are capable of automating the majority of these processes. Business owners should be focusing on their core purpose, rather than be burdened by administrative tasks,” added Sarwar.

Source: www.albawaba.com/business/pr/sage-and-rakbank-join-hands-support-accounting-needs-uae-businesses-1144768

In view of financial literacy’s critical role in the success of an economy and sustainable development of a society, the UAE Banks Federation (UBF), has stepped up its efforts to increase the level financial awareness in the country. For organizations, financial knowledge is the foundation for long-term growth as understanding business finance enables companies and business owners to use appropriate information to make effective decisions. Basing financial planning on proper knowledge and skills will prepare business owners to build a viable business that will scale and withstand Market and economic downturns.

Representing over 60 per cent of the country’s GDP and employing 42 per cent of its workforce, small and medium enterprises (SMEs) form the backbone of the UAE’s economy. SMEs, which make up 94 per cent of all companies operating in the country, account for a good share of the customer base of local banks, another cornerstone of the country’s economy. Given the enormity of the SME sector as an economic force, financial literacy skills of entrepreneurs have thus become of immense importance.

In response to the growing relevance of financial awareness and closely aligned with the increasing focus of the UAE government and banks in the country on financial education, UBF s releases a groundbreaking handbook, titled ‘Financial Literacy for SMEs’. Highlighting different aspects of business finance, including governance, financial management, access to finance and borrowing, debt management, the handbook seeks to equip business owners with knowledge and skills that will enable them to make sound financial decisions and ultimately operate their businesses successfully.

“In an increasingly complex financial environment, it is essential for entrepreneurs – particularly owners of SMEs – to have a strong grounding in the principles of business finance to keep their business afloat. SMEs play a critical role in an efficient and competitive economy, and a thriving SME ecosystem will positively contribute to a society’s economic stability and development” said HE Abdul Aziz Al Ghurair, Chairman of UAE Banks Federation.

“Financial education offers entrepreneurs a deeper understanding of business strategies and objectives, as well as the availability of financing options and support services. It also leads to proper financial planning, which enables small businesses to maximize their chances of business success by taking advantage of business opportunities and weathering business downturns. Taking into account the importance of financial awareness of businesses, the UAE Banks Federation has launched ‘Financial Literacy for SMEs’ handbook, which seeks to address various aspects of business finance to empower entrepreneurs with essential knowledge and skills to make sound financial decisions towards operating their businesses effectively.”

The handbook stresses that SME owners must acquire skills to distinguish between personal and business finances and possess sufficient knowledge of key accounting standards and book-keeping as well as legal and regulatory frameworks, rights and resources in order to become financially literate. Emphasizing the importance of knowing the right business structure, the handbook highlights different types of companies and various characteristics of robust and effective corporate governance framework, which is an indispensable building block in creating stable businesses.

Financing is the fuel on which a business runs and companies will require funding across various stages of their development and growth. The ‘Financial Literacy for SMEs’ handbook offers a comprehensive understanding of financial management, which includes managerial finance, book-keeping and accounting, financial statements, financial planning, as well as budgeting and forecasting.

From meeting daily operating expenses, to funding the expansion of business into new markets or products, companies encounter varied instances of the need for finance. The handbook offers an overview of main sources of finance available to SMEs, to keep their business afloat. It further details key factors that affect borrowing and invites the attention of SME owners on key considerations before seeking finance.

Business of all types and sizes establish relationships with banks and for SMEs, building a strong long-term two-way relationship is necessary to enable themselves to thrive in their business. The handbook highlights the importance of such relationships and how SMEs can benefit from establishing a rapport with banks. In addition, it offers tips on increasing financing opportunities and improving the chances of increasing credit limits for SMEs. Furthermore, the UBF handbook discusses ways to build a healthy credit history, which will help create a strong company-reputation and boost the chances of obtaining business loans from banks.

It is important for SME owners to manage debts to protect their business. The ‘Financial Literacy for SMEs’ handbook offers an in-depth insight into different aspects of debt management, and provides tips for identifying debt warning signs and effectively managing debt. Additionally, it sheds light on different types of fraud that can affect a business, including compensation fraud, invoicing fraud, skimming, and cheque fraud, among many others. Furthermore, the handbook offers important tips for SME business owners to prevent fraud.

SMEs are a key pillar of the UAE’s business sector and a driving force of economic growth and employment creation. However, the small firms have often found it difficult to secure credit lines as banks reduced their exposure to the SME sector after several SMEs failed to sustain in the business and repay their loans. With the objective of improving SME lending environment in the country, UBF has launched several initiatives including the ‘modus operandi,’ a mechanism to rescue SMEs in distress that meet specific qualifying criteria. The federation has consistently stressed for stronger market-wide support for SMEs, better auditing standards in the sector and improved due diligence by banks.

Source: www.albawaba.com/business/pr/uae-banks-federation-launches-uae%E2%80%99s-financial-literacy-handbook-smes-1140538