Happy Wednesday everyone!

The UAE’s crackdown on hawala transactions is starting to show results, with tighter regulations reducing informal remittance flows, particularly in the Pakistan Rupee and Egyptian Pound. Meanwhile, BlackRock is expanding its footprint in the Middle East through a partnership with Emirates NBD, offering regional investors greater access to private markets. In executive compensation trends, Gulf companies are increasingly adopting long-term incentive plans to attract and retain top talent, with Saudi Arabia leading the shift.

Let’s dive in!

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Tough UAE Regulations Impact Hawala Transactions in Pakistan Rupee, Egyptian Pound

📰 What is it about?

• The UAE’s efforts to regulate hawala (informal money transfer) transactions are starting to show results, with a decrease in flows to major remittance-receiving countries.

• The UAE Central Bank has made it clear that hawala operators must register with the authority to operate legally.

• The move has been supported by a reduction in the volatility of the Pakistan Rupee and Egyptian Pound, which previously had wide gaps between official and parallel market exchange rates.

💡 Why it matters?

• Hawala has been a popular way of sending money due to lower fees, but it’s illegal in the UAE and can disrupt formal currency exchange businesses.

• As exchange rates for currencies like the Pakistan Rupee stabilize, the gap between hawala and official channels has narrowed, making hawala less attractive.

• The UAE’s tough stance on hawala is also aimed at reducing the parallel market for remittances, which is harder to track and regulate.

• By targeting hawala activities, the UAE is encouraging more remittances through formal channels, ensuring greater transparency and compliance.

🔜 What’s next?

• UAE authorities are continuing to clamp down on illegal hawala activities while offering enough time for businesses to comply with the new regulations.

• The shift towards formal remittance channels is expected to further reduce hawala transactions in the coming months.

• UAE remittance companies are focusing on expanding the use of the Wage Protection System (WPS) to bring in more blue-collar workers, offering them salary accounts with special remittance services to attract them away from hawala.

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📰 What is it about?

• Odeum, the content studio built for modern media consumption, partnering with brands to deliver tailored content services while also creating original productions under the Augustus Media network.

💡 Why Choose ODEUM?

At ODEUM, we provide end-to-end media solutions to elevate your brand across multiple platforms.

• Video Production: From AI-powered videos to immersive live streaming and CGI storytelling.

• Animation Services: Dynamic 2D & 3D animation, motion graphics, and visually striking CGI. 

• Audio Production: Podcasting, sound design, and professional voiceovers that elevate content with immersive audio experiences.

• Original Content Development: Conceptualizing and producing shows, short films, and series that engage and inspire.

• Studio Rental: Fully equipped production spaces designed for seamless content creation, offering state-of-the-art filming, podcasting, and photography setups to bring creative visions to life.

🔜 What’s next?

• Have a project in mind? Let's make it happen!

• Book a studio or discuss your next big idea with us today.

Follow ODEUM on LinkedIn, Instagram, Facebook, and X.

Markets

Gulf Companies Boost Long-Term Incentives to Attract and Retain CEOs: Report

📰 What is it about?

• More companies in the Gulf are adopting long-term incentive plans (LTIPs) to secure top executive talent.

• 56.5% of CEOs in Saudi Arabia receive LTIPs, compared to 35.3% in the UAE, according to Cooper Fitch’s 2025 CEO Report.

• Saudi-based CEOs tend to receive higher long-term incentives, with 18% getting nine to 12 months’ salary in LTIs. In contrast, UAE-based CEOs largely depend on short-term incentives.

• LTIPs, which are issued over three to five years, can take the form of cash bonuses, shares, stock options, or profit-sharing plans.

💡 Why it matters?

• LTIPs are crucial for attracting and retaining top executives, ensuring leadership stability and strategic growth.

• Saudi companies, especially those undergoing transformation or expansion, are offering more competitive incentives compared to UAE’s private sector.

• Publicly listed companies in the UAE provide LTIs ranging from 12 to 24 months' salary, but private firms remain less aggressive in long-term compensation.

• The report highlights that 83% of Gulf CEOs expect performance-related bonuses this year, although fewer are seeing year-on-year increases.

🔜 What’s next?

• Saudi firms are likely to continue leading in LTIP adoption, driven by restructuring, expansion, and Vision 2030 goals.

• UAE private sector companies may need to increase LTIs to remain competitive in executive hiring and retention.

• External hiring for CEOs remains common, particularly in the UAE, suggesting a preference for leadership with global experience.

• Chief operating officers (COOs) are the most likely internal successors, especially in Saudi Arabia, where companies favor promoting from within.

BlackRock Teams Up with Emirates NBD to Expand Private Market Access in the Middle East

What is happening?

• BlackRock Inc. is partnering with Dubai-based lender Emirates NBD to launch a new investment platform aimed at Middle Eastern investors.

• The platform will provide Emirates NBD’s wealth clients access to private credit and alternative assets.

• Built on BlackRock’s Alternative Investments platform, which manages over $450 billion in assets, the initiative will introduce flexible "evergreen" offerings focused on income and growth strategies.

• Initially, the products will be available exclusively in the United Arab Emirates.

Why it matters:

• The move reflects growing demand for private credit and alternative investments in the region, as global firms tap into Middle Eastern capital pools.

• International financial giants are increasingly forming partnerships with regional wealth funds, including Mubadala Investment Co., Abu Dhabi Investment Authority, ADQ, and Saudi Arabia’s Public Investment Fund.

• Private credit has been one of the best-performing asset classes in the region, with Mubadala reporting it as their top-performing category for three consecutive years.

What’s next?

• The partnership could pave the way for broader access to private markets across the Gulf, beyond just the UAE.

• Other international asset managers may follow BlackRock’s lead in deepening their presence in the region’s private credit sector.

• Investors in the UAE will now have more opportunities to diversify their portfolios with alternative assets previously out of reach.

🔍In other news…

• Five banks, 2 insurers in UAE hit with fines by Central Bank.

• Sarwa CEO Challenges Traditional Budgeting.

• After a one-year consulting ban by Saudi PIF, PwC faces a £2.9M fine from the UK’s Financial Reporting Council over its flawed 2019 audit of Wyelands Bank.

• Abu Dhabi-based fintech startup Enza, founded in 2023, has raised $6.8 million in its first funding.

• Majid Al Futtaim’s 2024 profits drop 6%.

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