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UAE’s Central Bank Gives Green Light to Launch Digital Bank

The Central Bank of UAE is working on plans to launch the beta version of the Wio platform in the first quarter of 2022 in Abu Dhabi (WAM).
The Central Bank of UAE is working on plans to launch the beta version of the Wio platform in the first quarter of 2022 in Abu Dhabi (WAM).
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UAE’s Central Bank Gives Green Light to Launch Digital Bank

The Central Bank of UAE is working on plans to launch the beta version of the Wio platform in the first quarter of 2022 in Abu Dhabi (WAM).
The Central Bank of UAE is working on plans to launch the beta version of the Wio platform in the first quarter of 2022 in Abu Dhabi (WAM).

The Central Bank of the United Arab Emirates has given the green light to a new digital banking platform known as “Wio” and backed by state holding company ADQ.

The bank will soon launch a beta version, initially targeted to small and medium-sized businesses (SMBs).

The total invested capital in Wio is 2.3 billion dirhams ($626.26 million) plus in-kind contribution.

ADQ and investment holding company Alpha Dhabi will own a combined 65 percent stake in the bank called "Wio".

Other shareholders are UAE's telecoms operator Etilasat, which will own 25 percent, and First Abu Dhabi Bank (FAB.AD), with a 10 percent stake.

“As part of our efforts to future-proof Abu Dhabi’s economy, we are committed to enhancing the financial services sector,” Mohamed Al Suwaidi, chief executive of ADQ, said.

“By delivering secure, transparent and seamless access to a cutting-edge, customer-centric digital banking platform, Wio’s unique business model will further strengthen the UAE’s digital economy that is already supported by robust infrastructure and progressive regulations," Suwaidi added.

“Our 850 million dirhams investment in Wio is part of the strategy we announced last December to invest in promising sectors within and outside the UAE,” Hamad Al Ameri, managing director, and chief executive of Alpha Dhabi, said.

“Building on our FinTech portfolio, the Wio partnership is part of our strategy to meet growing consumer demands with 360-degree products and services that enhance their daily digital lives,” according to Khalifa Al Shamsi, chief executive of Etisalat Consumer Digital.

Hana Al Rostamani, Group CEO, First Abu Dhabi Bank (FAB), added that the launch of Wio will bring “a new and innovative approach to banking”.

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Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
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Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq

Inflation in the 20 countries that use the euro currency rose in November — but that likely won’t stop the European Central Bank from cutting interest rates as the prospect of new US tariffs from the incoming Trump administration adds to the gloom over weak growth.
The European Union’s harmonized index of consumer prices stood up 2.3% in the year to November, up from 2.0% in October, the EU statistics agency Eurostat reported Friday.
Energy prices fell 1.9% from a year ago, but that was offset by price increases of 3.9% in the services sector, a broad category including haircuts, medical treatment, hotels and restaurants, and sports and entertainment, The Associated Press reported.
Inflation has come down a long way from the peak of 10.6% in October 2022 as the ECB quickly raised rates to cool off price rises. It then started cutting them in June as worries about growth came into sharper focus.
High central bank benchmark rates combat inflation by influencing borrowing costs throughout the economy. Higher rates make buying things on credit — whether a car, a house or a new factory — more expensive and thus reduce demand for goods and take pressure off prices. However, higher rates can also dampen growth.
Growth worries got new emphasis after surveys of purchasing managers compiled by S&P Global showed the eurozone economy was contracting in October. On top of that come concerns about how US trade policy under incoming President Donald Trump, including possible new tariffs, or import taxes on imported goods, might affect Europe’s export-dependent economy. Trump takes office Jan. 20.
The eurozone’s economic output is expected to grow 0.8% for all of this year and 1.3% next year, according to the European Commission’s most recent forecast.
All that has meant the discussion about the Dec. 12 ECB meeting has focused not on whether the Frankfurt-based bank’s rate council will cut rates, but by how much. Market discussion has included the possibility of a larger than usual half-point cut in the benchmark rate, currently 3.25%.
Inflation in Germany, the eurozone’s largest economy, held steady at 2.4%. That “will strengthen opposition against a 50 basis point cut,” said Carsten Brzeski, global chief of macro at ING bank, using financial jargon for a half-percentage-point cut.
The ECB sets interest rate policy for the European Union member countries that have joined the euro currency.