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  • The rollercoaster ride for currency-hedged exchange-traded funds (ETFs) shows no sign of slowing, with the up of 2015 and subsequent down of last year followed by increased investor interest in the early months of 2017.
  • The non-deliverable forward (NDF) market has been among the fastest growing corners of the FX market, as investors looking for yield increasingly turn their attention to emerging market (EM) currencies. Now, with Pragma’s algo-trading clients joining the party, liquidity could be set to surge even higher.
  • One of the world’s most ambitious and laborious deals approaches its conclusion and will not be repeated in a hurry.
  • Bankers from across the Middle East gathered to attend the Euromoney Middle East Awards for Excellence dinner at Grosvenor House in Dubai, May 17.
  • The dearth of equity financing in the region plays into the hands of firms with strong debt franchises. The local banks are not leaving this business to the internationals and there is one local in particular whose efforts to develop its debt financing capacity should be recognized, not least for tapping into the local investor base.
  • An increased focus on financing small and medium-sized businesses should be another important step towards unleashing the Middle East’s vast untapped reserves of entrepreneurialism. Although rarely easy for risk-conscious lenders, growing the SME book is vital for the region’s future as a banking market. It is something notably lacking in the most oil-dependent economies.
  • Completed Middle East M&A volumes more than doubled to $110 billion in this awards period, according to Dealogic – although the number of deals fell by about a quarter. Teva’s acquisition of Allergan made up around a third of the volume on its own. The purchase of a 19.5% stake in Rosneft by Glencore and Qatar Investment Authority made up another 10th.
  • Competition in digital banking is not as fierce as in the Middle East as elsewhere. Rarely do banks’ achievements match their rhetoric in this area.
  • Events such as the rise and fall in the oil price and the steep devaluation of the Egyptian pound, made 2016 another eventful year for markets businesses in the Middle East.
  • Last year’s award for best bank transformation honoured Al Ahli Bank of Kuwait, a bank that showed great ambition by acquiring a financial institution larger than itself – the Egyptian division of Greek bank Piraeus. By so doing it became an international player in Middle Eastern banking.
  • The region’s wealthy are another group increasingly targeted by both local and international banks. The regional wealth management award goes to a firm with global breadth and expertise in this area, Credit Suisse, which also keeps the top spot in the Middle East in Euromoney’s 2017 private banking survey.
  • In corporate social responsibility, it is also rare to find financial institutions who manage to take their contributions beyond the occasional charitable donations, but rather put their financial acumen to good use in the community.