Although Abu Dhabi’s fiscal situation is strong, the US-based rating agency pointed out that there are still issues to be addressed, including the country’s reliance on hydrocarbon revenues, its still-developing policy framework, and governance metrics that fall short of some of its peers.

The UAE’s strong fiscal and external positions were cited by S&P Global in its recent assignment of a “AA/A‑1+” with a stable outlook for its foreign and local currency sovereign credit ratings. Additionally, the agency pointed out that the UAE’s substantial asset base would protect it from fluctuations in the price of oil and regional geopolitical unrest.

Abu Dhabi’s fiscal position remains among the strongest of sovereigns with a Fitch rating, despite these structural constraints. Government debt, which was 17% of GDP at the end of 2024, much lower than the peer median of 48%, is predicted to increase only slightly to 18% by 2026 as a result of local currency issuance intended to support the growth of the domestic debt market.

“We project a budget surplus of 7.0% of GDP in 2025 (3.1% excluding investment income) based on Fitch’s oil price (Brent USD65/b) and production (3.2m b/d) forecasts, along with some spending under-execution, down from 9.9% in 2024,” Fitch stated in its latest report, as reported by Arab News.

“For 2026, higher oil production, modest spending growth, and the start of corporate income tax receipts will widen the surplus to 8% (4.3% excluding investment income),” it added.

The report highlighted the emirate’s resilience to changes in the oil market by estimating that Abu Dhabi’s fiscal breakeven oil price in 2025 will be $42.60 per barrel, or $54.30 excluding investment income. By modifying expenditures or using dividends from Abu Dhabi National Oil Co., the government can preserve economic stability in the event that oil prices fall.

By the end of 2024, sovereign net foreign assets are expected to have grown to 255% of GDP, according to Fitch, with a significant portion of surpluses directed to government-affiliated companies like Abu Dhabi Developmental Holding Co. and Mubadala. Additionally, MGX, a joint venture specialising in investments in artificial intelligence, is anticipated to receive some funding.

The post Fitch affirms Abu Dhabi’s ‘AA’ rating with stable outlook appeared first on International Finance.

According to Property Finder, the primary ready segment of the market, one of the main growth drivers, saw total sales quadruple to AED 17.9 billion in May 2025. Meanwhile, the secondary ready segment recorded AED 24 billion in sales, representing a 21% increase in value year-over-year.

While total secondary sales increased by 23% to reach a new record of AED 29 billion, the value of primary ready and off-plan sales increased by 65% to AED 37 billion. The most recent data shows a robust market sentiment and ongoing demand for real estate in Dubai.

According to Property Finder, there is a high demand for housing in Dubai due to the recent large influx of new residents and tourists.

“With the remarkable growth in population this year, welcoming nearly 1,000 new residents each day – double last year’s daily visitor arrivals, demand for housing is poised to reach peak levels,” Cherif Sleiman, Chief Revenue Officer at Property Finder said.

“Against this backdrop, the real estate market is enjoying positive momentum, fuelled by digital transformation, international investor appetite and a surge in demand for premium living,” he added.

Meanwhile, according to a report by international property consultancy Knight Frank, a substantial USD 103 billion in private capital is expected to flow into Dubai’s residential real estate sector, demonstrating the strength of the real estate market.

Based on information gathered from 387 high-net-worth individuals (HNWIs) in East Asia, Saudi Arabia, the United Kingdom, and India, the report reveals that international investors are increasingly interested in Dubai’s booming real estate market.

As the demand for homes from the world’s elite continues to heat up, Dubai’s real estate market continued to grow in 2024, with values and rents reaching all-time highs and the total value of transactions across all sectors surpassing USD 207 billion, according to the report done in collaboration with YouGov.

The post Dubai home sales surge to record USD 18.2 billion amid population boom appeared first on International Finance.

How Your Price Determines The Type Of Customers You Attract

The type of customers your business attracts will be greatly influenced by the price you set. Customers searching for high-end, superior products might be drawn to your offering if it is priced higher. For high-end features, exceptional service, or exclusivity, these clients are usually willing to pay more.

However, if your price point is lower, you might attract clients who are more cost-conscious and seeking less expensive options. Setting your price requires careful consideration of the kind of customer you wish to serve and what matters most to them. Price high if you want to appeal to a luxury market; if you want to attract budget-conscious customers, think about offering competitive prices.

Pricing Strategy Should Be Flexible

When determining the price of your product or service, it’s critical to keep in mind that your approach should be adaptable. Pricing may need to change to reflect shifting consumer expectations, business environments, and cost structures.

If you want to adjust your prices in response to demand, competition, or seasonal variations, consider implementing a dynamic pricing model. For example, implementing tiered pricing, executing limited-time promotions, or offering discounts can all be successful tactics to increase sales. Being adaptable enables you to satisfy the needs of your clients while maintaining your competitive edge.

Is Your Product’s Price Right?

Examine your expenses and your competitors’ prices to determine if the price of your product is appropriate. First, look for a price that allows for profit while covering production, marketing, and other overhead expenses. Next, find out what comparable goods or services are selling for on the market.

If you charge much more than your competitors, consider whether your product is worth the difference. If your price is much lower, on the other hand, you might be undervaluing your product or losing money. Additionally, pay attention to consumer feedback.

Are customers happy with the price they pay for the value they receive? To ensure you’re on the right track, regularly review your pricing based on these factors.

It takes a balance of strategy, market knowledge, and customer insight to determine the ideal price. By taking into account your target market, staying flexible, and comparing your pricing to the competition, you can position your product or service for success.

The post How to price your product: Here is the guidance appeared first on International Finance.

Shanghai-based Guotai Junan Securities is set to acquire its cross-town rival Haitong Securities via a share swap, the two companies have informed the market. The deal is subject to regulatory and shareholder approval.

The combined entity, with 1.6 trillion yuan (USD 226 billion) in total assets, will overtake Citic Securities as China’s largest brokerage. Trading in shares of Guotai Junan and Haitong was suspended on September 6.

Both Haitong and Guotai Junan are controlled by companies running state assets for the Shanghai government. Under the deal, Guotai Junan will issue new shares to investors in Haitong’s mainland China and Hong Kong listed entities. Guotai Junan will also issue new shares in the onshore market to raise funds for the deal, exchange filings showed.

“This marks the start of an industry-wide consolidation that will see more mergers between major brokerages,” said Huang Yan, fund manager of Shanghai QiuYang Capital, referring to the Guotai Junan-Haitong deal.

“The consolidation focus will be on firms backed by state shareholders, Huatai Securities said in a research note. Beijing has dialled up rhetoric about the need for reform in the brokerage sector, with new directives to encourage mergers and acquisitions and restructuring in an industry in which more than 140 Chinese and foreign players compete,” Reuters reported.

China’s securities regulator said in March 2024 that it aimed to develop about 10 leading institutions by 2029, with two to three internationally competitive investment banks and institutions by 2035. The Xi Jinping administration’s ambition to create large, competitive investment banks comes a few years after a slew of global banks, including Goldman Sachs and Morgan Stanley, took full control of China-based businesses eyeing bigger market share.

There have been announcements about mergers between six pairs of smaller brokerages since end-2023, including, according to official Shanghai Securities News, the merger of Ping An Securities and Founder Securities.

The deal between Guotai Junan Securities and Haitong Securities may fuel market expectations of more mergers including potential deals between CICC and Galaxy Securities, according to Xu Kang, an analyst at Hua Chuang Securities.

“Other possible mergers include a combination of Citic Securities and China Securities,” Xu said.

Shares of Chinese brokerages jumped on September 6 on the merger news. An index tracking China-listed brokerages gained as much as 2.6%, while the CSSW Securities Index rose as much as 2.2%.

Shanghai-listed shares of CICC leapt as much as 8%, while Galaxy Securities rose as much as 10% to a two-month high. In comparison, the blue-chip CSI300 Index fell 0.5% to a seven-month low in the late afternoon trade.

Market volatility, dwindling initial public offerings and other capital market deals in a slowing economy have been weighing on the sector’s earnings, with the performance of the smaller brokerages, in particular, taking a big hit. Haitong suffered from quarters of plunging profits, loss-making international business, and scandals that included a top investment banker at the firm fleeing overseas before being arrested due to suspected job-related crime.

China’s 43 listed brokerages saw their first-half revenue shrink 16%, with net profit slumping more than one-fifth during the same period compared with a year ago, according to a research note from Guolian Securities.

In April 2024, the State Council issued a guideline highlighting the need to strengthen regulation, prevent risks and promote the development of the capital market. It also encouraged leading securities and futures firms to enhance competitiveness through mergers and acquisitions, restructuring, and other means.

“The latest merger could send a positive signal to the market that the supply-side reform in the sector was about to take place due to challenging market cycles and a tightened regulatory landscape,” Morgan Stanley said in a research note, as it continued, “In the near term, we believe the announced deal could revive some investor interest in broker stocks generally, especially those with potential M&A stories.”

The post China creates USD 230 billion brokerage powerhouse, eyes sector consolidation appeared first on International Finance.

A weak global economy and soft data from China, the world’s largest oil importer, have caused oil prices to decline along with other asset classes. The October output hikes were planned by eight members of OPEC+, the Organisation of the Petroleum Exporting Countries and its allies led by Russia.

“The eight participating countries have agreed to extend their additional voluntary production cuts of 2.2 million barrels per day for two months until the end of November 2024,” OPEC said, as reported by Reuters.

Brent futures traded above USD 74 before retreating from gains, indicating that the news had increased oil prices by more than USD 1 per barrel. Recently, Brent marked the lowest point of the year.

Due to rising supply outside the group and uncertainty about demand, OPEC+ decided to support the market by raising its October output by 180,000 barrels per day, which is a small portion of the 5.86 million barrels of output it is holding back. This represents roughly 5.7% of global demand.

OPEC+ was scheduled to move forward with the increase. However, the group was concerned about the unstable mood of the oil market due to the possibility of increased supply from OPEC+ and the resolution of the conflict that was preventing Libyan exports, as well as a dimming outlook for demand, according to sources.

On December 1, OPEC+ ministers convene as a full group to decide on policy.

The Joint Ministerial Monitoring Committee, a group of senior OPEC+ ministers with the authority to suggest modifications, meets on October 2.

Recently, oil has been supported by a dispute between rival factions in OPEC producer Libya over control of the central bank, which resulted in a loss of at least 700,000 bpd of production.

However, prices fell by roughly 5% due to reports that a potential agreement to end the conflict was being worked on; however, no agreement to resume exports has been made public.

The post OPEC+ agrees to delay October 2024 oil output hike for two months appeared first on International Finance.

We have factors like insufficient cash flow, lack of a well-developed business plan, failure to gauge product demand and determine their prices, getting overly optimistic about parameters like achievable sales and money required and the inability to identify the weak operational points, contributing to a business’ struggle or the worst case, demise.

And it’s not like businesses are immune to struggles. Many successful and established businesses of the 21st century have gone through periods where their sales have hit rock bottom and debt levels have gone high, almost inviting bankruptcy in the process. However, they have managed to perform the course corrections and come back in a rocking manner.

Why Do Businesses Face Headwinds?

An entrepreneur should think of the tough times as the “growing pains” he/she experienced as a child.

“You didn’t reach the height you’re at now without experiencing some pains in your joints as your body transformed from a toddler to a young boy or girl. The same logic or growing pains can apply to starting a new business. Take for example never having enough time or constantly putting out fires—you can probably relate to those pains, “Noted educational and business content writer Besma Bihnam commented.

These growing pains can be solved. If struggles start to take over the business, or business owner, they could lead to failure. All the business owners need to do is take a step back, look at the overall state of their business and identify the root cause of the problem.

Apart from the cash flow problems, some headwinds also stem from the fact that entrepreneurs sometimes fail to understand their market and customers. Starting a business without thoroughly researching and identifying the target market, ideal customer, customer buying habits and a clearly defined pricing strategy can lead to failure.

Assuming what worked in the past will always work is dangerous. Businesses that don’t factor in market changes, their competition, changing technology, or the value of experimenting with new ideas are likely to fail. Also, one of the biggest challenges for entrepreneurs is to let go of control and rely on others to finish the job. Yes, businesses, irrespective of their size, need decentralisation of roles and responsibilities to perform like a well-oiled machine, but having way too many hands-off approaches doesn’t help the business leader’s cause either.

While business growth is great, slow and steady wins every time. It’s hard to believe that too much business can lead to failure. While it’s tempting to go for it all, steady, predictable growth that’s properly managed is healthier than uncontrolled jumps and spurts in volume. Keep in mind the 80:20 rule: 80% of your business will come from 20% of your clients.

Successful small businesses have four common characteristics that we recommend all small business owners adopt. They can know their market better and make sure there is a demand for their product/service before they develop it. They can enter the market with a distinction that sets them apart from their competition. Most importantly, stay strong and don’t give up. If required, rely on a mentor while starting out your venture and throughout changing business climates.

How To Revive A Struggling Business?

Innovate

“Markets, people, and technology all change. What’s relevant or trendy today isn’t guaranteed to stay the same. Your business, too, should change in order to adapt to the ever-changing world. Choosing to focus on today’s marketplace without anticipating the future is what made known companies such as Eastman Kodak, Motorola, Sony, and Yahoo lose their edge. Experts call it the strategic trap,” says Robyn Howard, a video enthusiast and content manager over at VideoRemix.io.

There is a psychological trap, where business leaders focus exclusively on what made the business successful and fail to adapt to new changes. Also, not investing in the equipment/other systems that run their company is another way many businesses end up losing on new and relevant investments.

“Put simply, if a business doesn’t innovate or resists innovation, the chance of failure becomes high. At one point, all the companies on the list dominated the market in their respective fields; the great lesson any small business owner can learn here is to never make the same mistakes they made,” Howard stated.

Adapt to new changes, innovate your products and services, and also, rather than trying to deal with everything on your own, listen to your friends, family, employees, and business partners. Invite them to share any ideas that could help revive a failing small business.

Perform A SWOT analysis

A SWOT analysis is a strategic exercise a business owner needs to go through to identify his/her venture’s strengths, weaknesses, opportunities, and threats. It’s a helpful exercise the person can use to analyse your current performance, identify things that are going wrong (problem with product-market fit, pricing, operational processes, etc.), and discover areas where the business leader can make improvements.

The business leader should also know his/her target market and ideal clientele. Performing the task will help the person to understand where he/she should focus the efforts, the market needs and pain points the company’s product/service can solve for clients, apart from targeting clients’ buying behaviour, and develop a strategy that’s the right fit for the business.

Set SMART Objectives And Create A Plan

Make a list of your (addressing business leaders) SMART objectives for your business. This will give you clarity and make it easier for you to stay focused and work towards achieving them.

“SMART stands for: Specific: Clear enough to fully understand. Measurable: Can determine when it’s complete. Achievable: Can be accomplished. Relevant: Is connected to your overall game plan. Time-bound: Has a deadline with specific dates,” stated Bihnam.

Next, create a plan that will put your SMART objectives into action. As you create a plan, think about the steps you’ll need to take, how long it will take, and who will help you.

Put A Solid Financial Roadmap

To keep the business open, cut discretionary or unnecessary expenses. Look at areas where you can cut costs like travel expenses/reduce your utility usage to lower your monthly bills. If you are renting office space, talk to your landlord to see if they will be willing to reduce rent/renegotiate your lease. The last place you will want to cut costs is people. If you find yourself in a tough spot, try reducing employee hours and compensation before laying them off.

“Create a cash flow forecast so you have insight into what’s coming in and what’s going out. Use the forecast to project likely sales and expenses, so you know how much money you’re likely to have in your bank account. You’ll also want to manage your cash flow more efficiently by sending invoices out on time and following up with customers who haven’t paid. You can streamline this tedious process with a payment and invoicing tool like Keap payments to save you time and help you get paid faster,” Bihnam said.

“If you’re like most small business owners, you probably have debt to pay. Many business owners see debt as a sign of failure, but in reality, small businesses who have debt have higher credit scores. Try not to feel too overwhelmed by outstanding debt or avoid creditors. That only makes matters worse. Instead, talk to your creditors and explain your situation and your plans to pay your debt. Most creditors understand and willing to work with you if they’re confident you’ll eventually pay what you owe,” she commented.

Put A Client First Attitude In Place

“Keeping clients satisfied and happy has never been more important than it is today. We live in a world where people demand more, and if business owners don’t meet increasing expectations, people will voice their opinions on social media and go elsewhere. It’s a hard fact, but that comes with running a business nowadays. Tools like Keap make it possible for small businesses to deliver personalised service and create happy clients,” Bihnam remarked.

Aggressive marketing is the best option to gather new customers/clients. Did your previous marketing strategy deliver good results? If not, then it needs to be refreshed.

Small business expert Melinda Emerson lists these essentials of a good marketing plan: market research, target market, positioning, competitive analysis, market strategy, budget, and metrics.

“Each one of these items matters in turning around a failing company, but I think knowing your target audience is one of the biggest factors. Try to understand them by obtaining all the essential information you can about them. You can speak to them directly through email or social platforms, and request them to share feedback on your services or products, plus any other suggestions they may have. Also, try creative and productive ways such as personalised video marketing to convert them,” Binham noted.

The post Looking to revive your struggling business? Here are the tips appeared first on International Finance.

Here are five crucial steps which will help you to ensure a more seamless and successful career transition. These practical suggestions will help you reach your career objectives, from evaluating your present skill set to strategically networking and keeping up with market trends.

Assess Your Current Skills And Interests

Start by examining your present interests and skill set about your financial career transition. You can better understand your strengths and weaknesses by using this self-assessment.

Are you enthusiastic about investment management, financial planning, or auditing? Determining these areas of interest will help you make decisions and make the transition go more smoothly.

Additionally, it makes the adjustment period shorter and more productive by allowing you to concentrate on roles that organically fit with your strengths. The first step is to know yourself well.

Upgrade Your Education

Investing in higher education is one of the best strategies to manage a financial career shift. Acquiring more certifications or advanced degrees can enhance your employability and establish you as a subject matter expert.

These courses give students the conceptual understanding and useful abilities needed to succeed in the financial industry. Furthermore, they demonstrate to potential employers your dedication to continual professional growth.

Network Strategically

Making the move to a new position in the financial industry can be facilitated by networking effectively. Developing connections with experts in your target industry can yield insightful information, employment leads, and mentorship opportunities. Participate actively in online communities like LinkedIn groups, go to industry events, and join organisations for professionals.

Never hesitate to get in touch with former co-workers or graduates from your schools. These contacts can connect you with employers and provide advice. By networking, you can get an advantage over other applicants and gain access to hidden job markets.

Gain Relevant Experience

In order to make a successful transition from one financial career to another, you must acquire relevant experience. Look for opportunities, whether through contract work, part-time projects, or internships, that fit with your new career objectives. You can also gain the essential experience and skills by volunteering for special projects related to your current work.

Practical experience boosts your confidence in your new position and looks better on your resume. Employers are looking for applicants with practical knowledge, so show them that you can apply what you’ve learned to actual situations. This increases your attractiveness as a candidate for your next professional step.

Keep Updated With Industry Trends

In the quick-paced world of finance, keeping up with industry trends is essential. Reading the financial times, Bloomberg, The Wall Street Journal, and other publications on a regular basis can offer priceless insights into regulatory changes and market movements.

You can stay informed by subscribing to pertinent podcasts or newsletters. You can learn more about emerging technologies and best practices by participating in webinars and industry conferences. You can prepare better for interviews and make wiser decisions during your career transition by staying up to date on these trends.

The post Five essential steps to navigate financial career transitions appeared first on International Finance.

Will it help the incumbent Rishi Sunak government to win the general elections later this year? This copy won’t discuss about the political fallouts of the UK inflation, as all the eyes will be upon the Bank of England. Will the apex bank cut down the interest rates?

Falling energy prices, which are out of the BoE’s control, are contributing to the decline in headline consumer price inflation, which peaked at 11.1% a year and a half ago. Inflation, as measured by the consumer prices index (CPI), has now fallen to 2.3% in the year to April 2024, down from 3.2% in March. The April figure is the lowest level since July 2021, when the global economy was handcuffed by the COVID-19 pandemic.

The price pressures created by the British economy are of greater importance to its policymakers, particularly given the country’s tight labour market and the high rate at which many companies are raising wages, which might end up fueling inflation yet again.

According to BoE Governor Andrew Bailey, depending on the facts, the first rate cut might occur as early as June 2024. However, as per a section of the analysts, despite the sharp decline, the latest inflation gauge may have dashed market expectations of a deeper slowdown to 2.1%. So the BoE may likely wait till July to study the May data and figure out whether things are actually touching the 2% mark, a non-negotiable condition imposed by the BoE for their monetary policy relaxations.

However, there are chances that after the publication of the latest CPI data, BoE’s nine-member rate-setting panel may give in to the market pressure of cutting interest rates from the current 16-year high of 5.25%.

Where Are Things Standing Now?

Compared to other large, wealthy economies, Britain’s inflation rate peaked higher. A combination of the spike in energy prices and a labour scarcity to fill positions, a problem already present in other nations but made worse in Britain by Brexit, made it an anomaly among the Group of Seven (G7) for a while.

Inflation in Britain was 3.2% in the year ending in March 2024, which was greater than that of Germany, France, and Italy. However, it was less than 3.5% in the United States.

However, the latest CPI data might have dashed the economists’ hope of witnessing a sharper drop in inflation after a 12% drop in regulated household energy tariffs that took effect in April 2024.

According to Reuters polled economists, they were expecting headline inflation to abruptly fall to 2.1%, before starting the probable ascent again in the latter half of 2024. Even BoE expects the inflation to pick up speed once again, reaching about 2.6% by year-end.

“This is only one month’s data, but it is enough of a surprise to suggest that the inflation process is not tracking as the BoE had expected,” Allan Monks, chief UK economist at JPMorgan, said, while interacting with the Daily Sabah.

“There is still another labour market and CPI report to come before the June meeting, but it is difficult for us to see what that could realistically do to leave most members feeling confident about cutting in June specifically,” Monks added further.

Services inflation inched down to 5.9% from 6% in March 2024. The BoE’s forecasts had pointed to a reading of 5.5%.

Market Pressures For Labour

Wages account for a larger portion of costs for services firms than for other businesses. Because there is a greater need for workers to fill positions than in many other economies, Britain has had an annual pay growth rate of 6%, which has increased prices in the industry.

There are some indications lately that the fever in the labour market is dissipating. The gap between the number of open positions and the unemployment rate—a crucial indicator of the Bank of England—is at its tightest point since the COVID-19 epidemic.

Companies Struggle To Raise Prices

The potential for businesses to pass on increased expenses to customers in the form of higher pricing is another item the BoE is keeping a careful eye on. Regional agents for the BoE predict that this year will be more difficult than 2024.

One of the nine members of the Monetary Policy Committee, Megan Greene, cited comparable indicators from the recent purchasing manager index reports, indicating that prices paid by businesses have increased more rapidly than the prices they charge.

Will The Rate Cut Happen?

June 11 is the official labour market data release, June 19 is the publication of May’s inflation data, and June 20 is the next scheduled policy announcement by the BoE. The BoE will be keeping a closer eye on alternative market indicators than normal due to issues with the official jobs statistics, such as the PMI surveys.

Rate futures are priced with an approximately 56% probability of the Bank of England reducing the Bank Rate to 5% from 5.25% in the upcoming days, and an almost 100% possibility of a reduction by the meeting in August 2024.

The date of the BoE’s first move was also a topic of debate among the 71 economists surveyed by Reuters recently. However, a slim majority of them anticipated it to happen later than investors do: 38 predicted a first cut in August, while 31 suggested June. September is when two people expected it to arrive.

However, analysts at RBC Capital gave a pessimistic view, stating that the overshoot in services inflation did not appear to be driven by one-off factors, suggesting that the much-anticipated rate cut may take some more time.

“Certainly, this morning takes June off the table,” Cathal Kennedy, senior UK economist at RBC Capital Markets, said, while adding, “We’ve been saying for some time that we thought services inflation would be a lot harder to get down than perhaps some other people out there thought, particularly with the backdrop of the U.K. labour market, which has loosened but is still very, very tight.”

“Core inflation, which includes goods but not energy, food and tobacco, also reflected persistent price pressures, with the annual rate falling only to 3.9% from 4.2% in March 2024,” Daily Sabah reported further.

The next rate meeting is on June 20, and economists are a divided lot on what will happen on that day. Some think that the apex bank will cut borrowing costs. However, others believe that the ongoing concerns over the scale of price rises in the crucial services sector, along with the pace of wage increases, will make the rate cut a likely phenomenon from August 2024.

Also, lower inflation doesn’t mean that the cost of living crisis (the worst in around 40 years) is finally over. Things only show that the prices are rising more slowly than they were before.

“Consumers are still living with far higher prices and how you take today’s inflation data will depend on whether your glass is half full or half empty,” said James Smith, research director at the Resolution Foundation.

“While it’s clearly good news headline inflation is back to normal levels, it is disappointing that price pressures haven’t fallen further and that measures of services inflation are proving more stubborn than expected,” he concluded.

The post IF Insights: Will BoE react to plummeting UK inflation with rate cuts? appeared first on International Finance.

CitySavings operates with the principle of “Simple is Good”, thereby offering its clients simple and straightforward banking options, coupled with relevant market products and digital innovations to ensure that the customer gets the best experience he/she deserves.

Established in 1965, CitySavings currently operates in over 140 branches throughout the Philippines. Their goal is to become the leading mass market bank in the Southeast Asian country. CitySavings was recently announced “The Most Customer-Centric Savings Bank in the Philippines” by International Finance.

CitySavings bagged this prestigious award for its various customer-centric initiatives along with its excellent services and innovative products.

Charting A New Course

One of the bank’s major initiatives in 2023 has been its mobile app that provides public school teachers with a fast and secure way to check their savings and loan account balances, as well as apply for a reloan online. Clients can also pay their bills and soon, can receive and transfer funds, and use other customer-friendly features. Take the ‘Teachers’ Salary Loan’ programme for example, where the teaching professionals are getting a maximum lending amount of 2,000,000.00 pesos from the CitySavings, with a flexible term of 12-60 months (accompanied by a variable interest rate) depending on their financial needs.

CitySavings also provides budget-friendly two-wheeler loans, flexible pension loans and other salary loans for public and private sector employees.

Talking about the app, called the ‘Loan Ranger’, helps the CitySavings clients to view their accounts from their smartphones, apart from locating the venture’s branches and ATMs. Also, through the app, one can apply for a reloan. In the coming days, the app will also help CitySavings customers to transfer and receive funds, pay bills, and earn and redeem reward points.

In addition, CitySavings’ innovation game, its chatbot, ‘Talk to Maria’, is now offering a convenient 24/7 enquiry service and a seamless new loan application process. In collaboration with its parent company UnionBank, CitySavings has also rolled out its ‘Bank-on-Wheels’ to make its services more accessible.

“All these initiatives are anchored on CitySavings’ vision to be the leading mass market bank in the Philippines creating innovative solutions that make banking simple for its customers. The thrift bank continues to serve the underserved and the underbanked in the country as it offers them a wide range of financial products,” the venture told International Finance.

The Road Ahead

Like any other 21st century business, CitySavings also strives to create positive economic, environmental, and social changes to be a market leader.

While continuously providing affordable and accessible financial services for its customers, CitySavings is also working towards a better and more inclusive banking experience for its clients, while strengthening engagement with partners, employees, and all stakeholders. CitySavings’ digital transformation initiatives envision the venture modelling a sustainability path that is driven by investments in people, technology, and products.

Keeping that in mind, the venture has set operational objectives like environmental protection, through the responsible management of resources and digital innovations. Also, it strives to empower and equip its organisational structure to create innovative solutions for inclusive prosperity, while elevating the living standards of the communities.

CitySavings’ focus areas in the coming days will be developing digital talent capabilities, gaming up the engagement between its staffers and the communities through the pinch of technology, cultivating inclusive prosperity, ensuring better resource management and operational efficiency, encouraging digital and sustainable innovations more, and making its overall financial services affordable and accessible.

During an interaction with International Finance, CitySavings Chief Executive Officer Lorenzo T. Ocampo, said, “As CitySavings continues to embrace digital tools that enhance and improve the customer experience, we stand by our commitment to provide simple and straightforward banking coupled with our warm and helpful customer service. We always put the needs of our customers first in everything that we do.”

Echoing similar thoughts, CitySavings President Manuel G. Santiago, Jr. said, “The recognition as the Most Customer-Centric Savings Bank in the Philippines is a solid testament to CitySavings fulfilment of its purpose of elevating communities through financial inclusion.”

The post CitySavings: Revolutionising banking with ‘Simple is Good’ philosophy appeared first on International Finance.

Baker McKenzie Johannesburg Tax Practice Group partner and head of Tax Virusha Subban

Recently, the World Bank anticipated that the African Continental Free Trade Area (AfCFTA) would raise intra-African trade volumes by 81%, improving Africa’s income by USD 450 billion by 2035. Due to geopolitical issues, significant global actors are diversifying their supply networks, bolstering AfCFTA’s trade boost.

Recent advances in AfCFTA’s protocols, rules, and procedures on commerce, simplified customs procedures, and dispute resolution mechanisms aim to create a single legal framework for the continent, making cross-border trade and investment easier.

The ultimate goal is to eliminate intra-African trade tariffs, reduce unemployment, build infrastructure, and make cross-border trade more competitive and sustainable.

Trade Financing

Afreximbank and the AfDB continue to monitor market trends and offer sustainable solutions to increase intra-African trade. These institutions are supporting market participants in Africa’s trade finance gap by lending more and offering alternative products.

Recent announcements include Afreximbank increasing intra-African trade finance to USD 40 billion by 2026 from USD 20 billion in 2021. An AfCFTA Adjustment Fund will provide money, technical help, grants, and compensation to state parties and private firms to effectively participate in the AfCFTA.

The Transaction Guarantee Instrument, Pan African Payment and Settlement System, and Base Fund of the AfCFTA Adjustment Fund have also impacted intra-African commerce since AfCFTA’s creation.

Role Of The United States

The African Growth and Opportunity Act (AGOA), which gives qualifying sub-Saharan African countries duty-free access to the US market for over 1,800 products, is expected to change or be replaced.

This may change trade patterns, notably with Africa’s preferential treatment of small and medium firms and women- and youth-owned businesses. Smaller African countries that have not benefited from AGOA may soon be allowed to do so.

The US and Africa trade well. The US announced it would invest USD 55 billion in Africa over three years, with USD 15 billion going to “two-way trade and investment commitments, deals, and partnerships that advance key priorities, including sustainable energy, health systems, agribusiness, digital connectivity, infrastructure, and finance.”

The China Prospects

African commerce with China, its greatest trading partner, grows. Chinese customs authorities reported USD 282 billion in trade in 2022 due to rising commodity prices and China’s promotion of African imports.

The Economist Corporate Network, Baker McKenzie, and Silk Road Associates (BRI Beyond 2020) found that 97% of 33 Africa’s poorest governments’ exports to China were tariff- and duty-free.

The research also noted that China still imported most of Africa’s natural resources, but in recent years, China has imported more manufactured commodities from increasingly diverse African countries.

Crucial Minerals

The energy shift has increased the demand for vital minerals, making Africa a key actor due to its huge mineral base. South Africa, Namibia, Ghana, and Zimbabwe are considering ways to process important minerals locally sustainably to maximize benefits.

Africa’s mineral exports are primarily offtakes, limiting earnings. The European Union and United States have stressed the necessity of commodities supply chain risk mitigation and strategic partnerships with responsible essential mineral suppliers.

African commerce’s future is bright, but tackling infrastructure deficiencies, maintaining sustainability, and navigating changing trade ties will be crucial. Despite hurdles, Africa’s involvement in global trade seems likely.

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