DUBAI: Bahraini telco Batelco has expanded into the financial technology (fintech) sector, it was announced on Sunday.
The company obtained the necessary licenses from the Central Bank of Bahrain (CBB) and the new entity, to be called Batelco Financial Services, will provide consumers and small businesses with services such as digital wallet creation, cards issuance, bank accounts aggregation and bank account payments initiation on behalf of clients and third parties.
Digital banking and fintech services have become increasingly popular in the GCC. Saudi Arabia gave licenses last month to two new digital banks, one of them is owned by telecom giant, STC.
Last week, Kuwait’s Boubyan Group announced the launch of Nomo bank in the UK, as competition increases in the digital Islamic banking sector. CEO Adel Al-Majed claimed in a Twitter post on Wednesday that Nomo will be the world’s first Islamic digital bank, despite Zurich Capital Funds Group in April announcing the launch of a new lender branded as RIZQ / BARAKA, which is claimed would be the first bank to provide all banking services online and according to Islamic law.
In the UAE, a survey by the Boston Consulting Group (BCG) last October, showed that 70 percent of respondents said they are actively searching for a new bank, and 87 percent said they would be willing to open an account with a branchless digital-only lender.
Bahrain's Batelco expands into the fintech sector
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Bahrain's Batelco expands into the fintech sector
- Digital banking and fintech services have become increasingly popular in the GCC
Crude oil prices surpass $100 a barrel as the Iran war impedes production and shipping
- 15m barrels of crude oil — about 20 percent of the world’s oil — typically are shipped every day through the Strait of Hormuz
- Iraq, Kuwait and the UAE have cut their oil production as storage tanks fill due to the reduced ability to export crude
CHICAGO: Oil prices have eclipsed $100 per barrel for the first time in more than three and a half years as the Iran war hinders production and shipping in the Middle East.
The price for a barrel of Brent crude, the international standard, was at $101.19 shortly after trading resumed on the Chicago Mercantile Exchange, up 9.2 percent from its settlement price of $92.69 Friday.
West Texas Intermediate, the light, sweet crude oil produced in the United States, was selling for about $107.06 a barrel. That’s 16.2 percent higher than its Friday settlement price of $90.90.
Both could rise or fall as market trading continues.
The increases followed US crude prices jumping by 36 percent and Brent crude prices rising 28 percent last week. Oil prices have surged as the war, now in its second week, ensnared countries and places that are critical to the production and movement of oil and gas from the Arabian Gulf.
Roughly 15 million barrels of crude oil — about 20 percent of the world’s oil — typically are shipped every day through the Strait of Hormuz, according to independent research firm Rystad Energy. The threat of Iranian missile and drone attacks has all but stopped tankers from traveling through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran.
Iraq, Kuwait and the UAE have cut their oil production as storage tanks fill due to the reduced ability to export crude. Iran, Israel and the United States also have attacked oil and gas facilities since the war started, exacerbating supply concerns.
The last time US crude futures traded above $100 per barrel was June 30, 2022, when the price reached $105.76. For Brent, it was July 29, 2022, when the price hit $104 per barrel.
The global surge in oil prices since Israel and the US attacked Iran on March 1 has rattled financial markets, sparking worries that higher energy costs will fuel inflation and lead to less spending by US consumers, the main engine of the economy.
In the US, a gallon of regular gasoline rose to $3.45 on Sunday, about 47 cents more than a week earlier, according to AAA motor club. Diesel was selling for about $4.60 a gallon, a weekly increase of about 83 cents.
The price of natural gas has also climbed, though not as much as oil. It rose about 11 percent last week and ended Friday at $3.19 per 1,000 cubic feet.
If oil prices stay above $100 per barrel, some analysts and investors say it could be too much for the global economy to withstand.
Over the weekend, Israel’s military struck oil depots in Tehran and four oil storage tankers and a petroleum transfer terminal.
Mohammad Bagher Qalibaf, the speaker of Iran’s parliament, said the war’s impact on the oil industry would spiral, warning it soon could become harder to produce and sell oil.
Iran exports roughly 1.6 million barrels of oil a day, mostly to China, which may need to look elsewhere for supply if Iran’s exports are disrupted, another factor that could increase energy prices.
