FAB participates in Hong Kong’s RMB Business Facility + joins open finance framework

FAB participates in Hong Kong’s RMB Business Facility + joins open finance framework

First Abu Dhabi Bank (FAB) is positioned as a primary architect for non-USD capital flows, following its participation in phase two of the Hong Kong Monetary Authority’s (HKMA) RMB Business Facility (RBF), which has doubled its RMB liquidity to RMB 100 bn and broadened the scope of what the money can be used for.

Catching up: The RBF was created by HKMA to replace the older trade-only facility with cheaper and more flexible funding. The transition occurs in two main steps: phase one lowers interest rates (matching Shanghai’s market rates), extends loan terms up to one year, and allows banks to send funds to their overseas branches for trade finance. Phase two expands the scope even further, allowing banks to use these funds for corporate capex and working capital loans, thus providing a stable source of RMB to support the broader “real economy” globally.

Why it matters for the UAE: This gives Emirati firms expanding into Asia a competitive advantage. By including FAB among the 40 participating banks, the HKMA is now giving the UAE’s largest lender direct access to offshore RMB to fund its clients’ capex and working capital.

Separately, FAB also rolled out the Open Finance service for retail customers, Gulf News reports. Partnering with fintech Pay10, the first fintech to be authorized under the Central Bank’s initiative, customers will be able to link their specific current and savings accounts to approved third-party financial services and make payments through the open finance network.

CBD did it first: Last week, the Commercial Bank of Dubai (CBD) became the first major bank to fully activate the Open Finance service to its retail customers, after the service had only been adopted by fintechs previously, effectively marking the end of a pilot period.

Beltone folds Chimera regional assets into its balance sheet in USD 1 acquisition

Egypt’s Beltone Holding is centralizing its regional footprint by absorbing a portfolio of UAE and Egyptian assets from its majority shareholder in a USD 1 transaction that signals an internal restructuring by Abu Dhabi-based investment firm Chimera, according to a disclosure (pdf) from Beltone. The Egyptian investment bank’s general assembly approved the acquisition of 100% of Lumen Aegis Enterprises from fellow Chimera-owned outfit EPointZero Limited, a move that effectively folds private regional holdings into Beltone’s publicly listed balance sheet.

DNI rating affirmed at A-

AM Best reaffirmed Dubai National Ins. and Reins.’s (DNI) financial strength rating and long-term issuer credit rating at A-, with a stable outlook, according to a press release.

Behind the results: The ratings came on the back of a robust balance sheet and strong operating performance, alongside limited exposure and disciplined risk management.