Skip to content Skip to Search
Skip navigation

Al Fardan Exchange chases fintech tie-ups

CEO Hasan Fardan Al Fardan said the company was about to conclude a deal with a 'buy now, pay later' fintech Al Fardan
CEO Hasan Fardan Al Fardan said the company was about to conclude a deal with a 'buy now, pay later' fintech
  • Digital transactions currently make up 15% of Al Fardan’s business
  • Fintech partnerships to develop ‘buy now, pay later’ and other features
  • Training institute to educate Emiratis in fighting financial crime

Al Fardan Exchange is ramping up its digital business to compete in the technology-driven financial services industry. 

The 50-year-old money transfer and currency exchange house plans to forge partnerships with fintech firms to double down on growth.

Digital transactions currently make up 15 percent of UAE-based Al Fardan’s business via an app that was launched in 2022 and operates remittance and currency exchange deals.

“We expect to evolve by entering into exciting relationships that will complement our traditional remittance offering,” chief executive Hasan Fardan Al Fardan told AGBI.

The company is about to conclude a deal with a “buy now, pay later” (BNPL) fintech that will enable customers to delay payments on remittance transactions for a set period, Al Fardan said.

Al Fardan Exchange is the national partner for Western Union’s digital app WU.com, a high-value digital currency exchange. It also has partnerships with digital banking startups Jingle Pay and Now Money, offering low-cost online remittances.

Total remittance flows across Mena grew 73 percent in the last quarter of 2022, according to research by Western Union.

But the Middle East and North Africa has seen an influx of fintech startups, boosted by increased venture capital funding and incubation support – according to Statista the number swelled from 30 in 2017 to 465 in 2022.

Al Fardan said there has been impact on the industry from the increasing presence of fintechs, but bricks-and-mortar business was still relevant.

“We haven’t seen any dip in volumes from our traditional channels,” he said, adding he anticipates company revenues, up 30 percent year-on-year in 2022, will continue to grow. 

Al Fardan Exchange has also set up Al Fardan Banking Training Institute, which aims to train 5,000 Emiratis over the next five years in fighting financial crime. Staff will undertake the training in the first year but the long-term plan is to employ dedicated staff. 

In February, the Financial Action Task Force global watchdog upheld its decision to keep the UAE on a so-called grey list, which means that some financial institutions must conduct higher levels of due diligence on transactions. 

“The nation is placing the fight against financial crime as a high priority and we want to play our part in supporting its objectives,” said Al Fardan.

 

Latest articles

FILE PHOTO: United Arab Emirates Minister of State for Foreign Trade Thani Al Zeyoudi gestures during an interview with Reuters in Dubai, United Arab Emirates, June 30, 2022. REUTERS/Abdel Hadi Ramahi/File Photo

UAE and Kenya complete Cepa negotiations

The UAE and Kenya have completed negotiations on a comprehensive economic partnership agreement (Cepa) between the two countries. It is the 12th Cepa deal secured by the UAE and its third in Africa, after agreements were signed last year with Mauritius and the Republic of the Congo (Congo-Brazzaville). “The UAE-Kenya Cepa will not only boost […]

Adnoc has bid for German polymer manufacturer Covestro but its offers €55 and €57 per share were rejected

Adnoc faces hurdles in completing ambitious European deals

Abu Dhabi state oil company Adnoc is facing challenges to a duo of major European deals it is trying to get over the finish line, according to media reports. Talks with Austrian energy group OMV have been put on hold to allow parties to navigate a series of disagreements, the Financial Times reported on Friday. […]

The 450 companies operating at Dubai Science Park include AstraZeneca, and the free zone plans to add 200,000 sq ft of lab and office space

Dubai Science Park reveals expansion plans

Dubai’s biotechnology free zone is adding 60 percent more offices, laboratories and warehouses over the next few years to cater for an influx of new companies, its senior vice-president told AGBI.  Dubai Science Park, part of Dubai-listed Tecom Group, is planning an expansion of 200,000 sq ft of additional storage and logistics facilities at the […]

A worker at a phosphate production plant in Metlaoui, Tunisia. Phosphate accounts for 15% of Tunisia's exports

Saudi Arabia loans $55m for Tunisian rail renewal

Saudi Arabia has signed a $55 million loan deal with Tunisia to finance the renewal of the North African country’s rail network.  The railway is used to transport phosphate, a sector that makes up around 4 percent of Tunisia’s GDP and 15 percent of the country’s exports. Tunisia plans to produce eight million tonnes by […]