Finance Archives - Page 13 of 17

Very few traders pay attention to the size of their trading account. In most cases, the traders are biased in favor of leverage and they are enjoying the high-risk trading environment. But leverage is only for the expert Singaporean traders who know the risk management policy from the core. They often find it hard to manage the leverage trading account. The best practice is to use 1:10 leverage (maximum) while trading the real market. You can say that without using the leverage, you won’t be able to support your family. Well, it depends on the size of your account. If you invest $1000, it’s very obvious you are not going to make a significant profit from this market.

This content is not going to be like a traditional article. We are going to give you some key metrics that will allow you to manage the risk in trading. Most importantly, it will help you to find the amount of money which you must have to live your life with trading business.

Your family needs

First of all identity your family needs. Calculate the basic costs of your family life so that you know the minimum amount of money you need to make per month. In most cases, rookies don’t believe in such an approach. They become fairly aggressive with the trading method and try to earn money without having any goal. But such things are not going to work. This is not how the professionals place their trade in real life. They have specific sets of goals and for this reason, they can make a decent profit from this market. Being a new trader in the Forex market, it will be tough to trade with goals. Without developing these skills, you won’t be able to know the amount of money which you must invest in trading.

Depends on your win rate

The success rate of retail traders in the exchange traded funds greatly varies. You have to know your success rate by using the demo account. Those who have a high success rate can effectively use leverage. So, they will require a small amount of money. On the contrary, those who don’t have a high success rate must trade with a low leverage account. For them, leverage is like a time bomb. They will never know when it costs them a fortune. So, work hard on your trading strategy so that you can have a great win rate in trading. Never try to deal with the market with a low win rate as it makes the trading process much more complicated.

Profit factors

You might be thinking about how much money you can earn from this market. The professional usually makes 5-10%+ profit per month. So, use the simple mathematical calculation and find out how much money you need to support your family. If the number of too big, you must increase the size of your capital. But this should be done professionally. Borrowing money from other people to trade the market is a very big mistake. This is one of the most common reasons why rookies are losing money in trading.

The rookies might not be able to earn so much profit for the first few years. They should be happy with a 2-3% profit per month. Once they become good at analyzing the profit factor, they can easily scale up the size of their account balance.

Conclusion

There is no fixed rule to investing money at trading. But stop investing money that you can’t lose in trading. If we talk about the rule of thumb, it is imperative to invest at least $2000 at the initial stage. Anything less than that will force you to overtrade. Once you start overtrading, you are going to have a very long journey towards success.

Finance

How to Achieve Living Debt Free Quickly

ByCFI.co

Nowadays, households in Great Britain owe a sum of around £15,000.

If you find yourself struggling with debt, it can feel like a never-ending slog to pay back each and every penny.

But, if you’re interested in living debt-free and are ready to put in some hard work and diligent dedication, then luckily it’s possible to completely change your life.

Aside from paying off your high-interest debt first, here are a few more methods for helping you live a debt-free life faster:

1. Create an Accurate Budget

In the UK, 10% of people admit that they are terrible with money. But, it’s impossible to pay back debt if you don’t know exactly how much your lifestyle costs you.

Work out everything from how much you spend on food every week, how much your rent and bills cost, and how much you need for expenses such as travel or childcare.

Next, work out how much you spend on luxury expenses, such as clothing, going to the cinema, or eating out.

There are many budget tracking methods including apps, such as Monzo, or simply writing everything down with pen and paper.

Now, budget how much you can spend on monthly debt payments. Don’t overestimate this figure, it needs to be precise to give yourself peace of mind.

2. Take Things Slowly

Pummelling all of your earnings into paying off your debt is simply not sustainable. You’re likely to give up completely.

Instead, consider your debt payments as a slow but sustainable practice. Set yourself realistic goals, such as a year or two to pay off your debts.

Although it’s a good idea to cut down on luxuries, it’s still worth planning when and how you’ll treat yourself. Don’t let your entire working life be spent trying to pay down debt.

3. Learn to Love the Free Things in Life

There is no point in paying off your debt only to start spending again. You need to develop interests that are free.

Luckily, there are many free activities nowadays. Join a free running club with other locals, sign up to free trial classes, visit museums, and go to lectures.

You’ll be amazed by how much there is to do for free when you start looking. Regularly attending free events in your hometown is a great way to meet other people with similar interests and avoid those with expensive tastes!

4. Find a Mentor

Are you struggling to keep up the motivation to pay off your debts? Find someone who has travelled along this path before you to help keep you motivated.

This could be someone you know in your personal life or it could simply be a celebrity. There are hundreds of podcasts dedicated to finances and living debt-free.

You’ll find untapped expertise and knowledge that will help you improve your own circumstances.

For example, read this post by Giles Coghlan, chief currency analyst at HYCM, explaining the secret to trading on the financial markets!

5. What’s Your Reason Why?

Crippling debt has regularly been linked to depression. This is a good reason why you should sort out your finances.

But, if you aren’t struggling with a mental health issue, then perhaps this isn’t a good enough reason for you. Instead, find your own reason why you want to live debt-free.

Develop your own mantra that you repeat to yourself whenever you want to make an impulsive purchase.

6. Leave the Credit Cards Behind

Figure out why you are in debt. If you are simply an overindulger and spender, then there are many ways for you to trick yourself into avoiding spending money.

For example, taking only the exact amount of cash you need with you whenever you go out can stop you from spending too much on nights out.

However, if you are a struggling, single-parent, then speak to your local authorities and even your bank who may help you reduce your monthly payments.

Analyse your circumstances and the reasons for being in debt to help you avoid this situation in the future and repeating the same behaviour.

7. Generate More Income

This is an aggressive method for paying off debt that simply isn’t available to everyone. But, it can certainly help you get out of debt quicker.

By picking up a second job for a few months, you’ll drastically increase how much you earn. But, don’t ever put your mental health at risk by overworking yourself.

Only take a second job if you feel that you feasibly have the time and energy to do this.

Alternatively, consider other ways of making money such as selling unwanted clothes, furnishings, jewellery and kitchenware online. If you have a spare room, then consider renting out your room.

8. Build a Savings Account for Emergencies

As well as focusing on paying off debt, a good idea is to build an emergency fund. By doing this, you’ll have an out when something doesn’t go to plan.

By building up this fund of a few thousand pounds, you will have the peace of mind that you don’t have to stay in a job you hate, or that you can afford rent somewhere else if your tenancy is pulled from under your feet.

While paying off debt and building your savings account, be kind to yourself. Not everything is going to go right every month.

Can You Imagine Living Debt Free?

Picture how great you will feel when you are debt-free and have some savings in the bank. Living debt-free requires dedication and time.

When you’ve paid off your debts, you need to make sure that you don’t slip into your old ways and spend more than you earn. If you’re struggling to pay off your debts, then consider speaking to a financial advisor or make an appointment at your bank.

Are you interested in learning more about finance? Check out the dedicated section of our blog for more information.

Banking

Nigerian bank DLM on the move delivers at all levels – with exciting plans in the pipeline

ByCFI.co Blogger

DLM Capital Group – a developmental investment bank that supports economic and social infrastructure projects with the aim of driving GDP growth and improving lives.

Founding chairman and group CEO of investment firm DLM Capital Group , Sonnie Ayere — Founding chairman and group CEO of investment firm DLM Capital Group, Sonnie Ayere

DLM Advisory Partners (DLMAP), formerly Dunn Loren Merrifield Advisory Partners, is the advisory and capital-raising arm of DLM Capital group. The principal services provided by DLMAP include financial advisory, debt capital-raising, equity capital raising, mergers and acquisitions, and company set-up advisory.

DLMAP has played a leading role in structured finance and securitisation within Nigeria. “We have acted as sole arranger to more than 80 percent of structured finance transactions in Nigeria, and 100 percent of all securitisation transactions in the market,” says CEO Sonnie Ayere.

Most Innovative Transaction of 2019

In 2019, DLM executed the first Bus Rapid Transit (BRT) securitisation in Nigeria, working with the sponsor, Primero Transport Services Limited (PTSL). The system caters to residents of the country’s most densely populated city, Lagos. DLM raised ₦16.50bn ($45.8m) through the securitisation of the company’s BRT tickets receivables. The sponsor is licensed to operate the longest BRT route in West Africa, 35.3km, with its 434-bus fleet.

DLM Capital Group

A feasibility study conducted put the daily passenger carriage at about 226,300 passengers per day. Due to working capital pressures, the company was only able to serve an average of 135,000 daily passengers before the securitisation transaction in 2019.

The ₦16.5bn 17 percent Series 1 Fixed Rate Bonds issued were primarily used to refinance all pre-existing commercial banking loan facilities on the books of the sponsor. The transaction provided the company with savings in interest, shaving the cost of funds from 27 percent per annum to 17 percent. At the same time, it extended the tenor of the company’s debt from three years to seven.

With this transaction, DLM was able to provide the company with up to 10 percent savings in interest, reducing the cash required to service debt and improving the company’s working capital. DLM also advised on the restructuring of the company’s balance sheet by moving the operating assets into a new vehicle and eliminated the strain of depreciation charges.

Focus for 2020

DLM is in discussions with industry stakeholders and umbrella bodies to establish proprietary funding conduits across key sectors of the Nigerian economy. It intends to include microfinance, agriculture, education, health care and a continuation of other funding programmes for the mortgage, real estate and transportation sectors.

Working with a DFI partner, the company recently concluded the design of an aggregation vehicle aimed at providing local currency, wholesale funding solutions to micro-lenders in Nigeria by way of loan book securitisation.

A similar platform to provide financing to primary users of agriculture commodities is currently being developed.

Finance

A Beginner’s Guide to Investing in Foreign Currency

ByCFI.co

More than $5 trillion is traded in foreign currency exchanges every day. Could you jump into investing in foreign currency and get a piece of that amount?

Absolutely! However, trading foreign currency is not as simple as it might sound. A beginner who tries to invest without some knowledge of what they’re doing will find success hard to come by.

There are many insider things to learn about this form of trading. If you’re considering getting into the game, we want to make sure you’re equipped to do so.

In this article, we’re laying out the basics of investing in foreign currency. We’re giving you the terms and the concepts so that you have what you need on hand before you pull the trigger on your first trade.

What is Forex?

Forex is the term used for trading in foreign currency. It is also the Foreign Exchange Market where currencies are traded. Forex is managed by banks and financial institutions rather than a centralized exchange like the Nasdaq.

Forex is, at its simplest, the buying and/or selling of two currencies. It uses the value of one currency against another to determine prices for buying and selling.

The exchange rate is the rate at which your trade will occur. The exchange rate is the value of one country’s currency against another. It is shown as a ratio, so, for example, 1 Euro might be worth 1.68 US Dollars.

Which Currencies Can You Trade?

Investing in foreign currency is always done in pairs. Pairs of currencies are represented by 2 three-letter codes put together. The codes are for each currency in the pair.

For example, EURUSD is a pairing of Euros and US Dollars. The first currency is the base and the second is the quote.

Pairings of currencies come in 3 categories. The categories are major, minor, and exotics.

Major Pairings

Major pairings are a combination of two of the major currencies of the world. The major currencies are:

US Dollars (USD)
Euro (EUR)
Japanese Yen (JPY)
British Pound Sterling (GBP)
Swiss Franc (CHF)
Canadian Dollar (CAD)
Australian Dollar (AUD)
New Zealand Dollar (NZD)

When beginners start investing in foreign currency major pairings draw their attention because they fluctuate more and more often.

Minor Pairings

Minor pairings feature one or more of the major pairing currencies but never the US Dollar.

Exotics

Exotics combine a heavily traded (usually a major currency) with a lightly traded currency. For example, you might combine the US Dollar with the Brazilian Real for a minor pairing.

Keys to Investing in Foreign Currency

When you are starting your journey into investing in foreign currency you need to be aware of terms, how to buy and sell, and what you can expect from your trade.

Buying Foreign Currency

When you want to buy foreign currency you are buying the base currency and selling the quote currency in the pairing you have chosen. So, if you want to buy US Dollars and sell British pounds you will have a pairing of USDGBP.

If you are buying currency you want the value of your pairing to rise. You can then sell it later if it falls to make a profit.

Selling Foreign Currency

The opposite is true if you are selling currency. In that scenario, you will still have a pairing of USDGBP but you will be selling the base currency and buying the quote currency.

When selling currency you want the pairing to fall in value. That way you can buy it back later if it rises in value.

Liquidity

Liquidity is the amount of demand for any given currency. Liquid currencies are bought and sold more frequently. The more liquid a pairing is the more likely you will be able to buy and sell at a profit.

Major pairs are usually more liquid than minor or exotic pairs. This is because there is more international trading of major pairs and more demand for the base and quote currencies.

Liquidity is measured in pips. Pips represent 0.0001 of the quoted price for the pair. If a pair has a quoted price of 1.57789 and moves to 1.57790 that is a change of 1 pip.

Pairings with more liquidity will typically have changes of around 100 pips a day. Pairings with less liquidity have changes of 50 pips or lower a day.

Bid and Ask

The terms “bid” and “ask” are also important to understand when investing in foreign currency.

The bid is what a broker will pay you for a pairing. The ask is what the broker will want you to pay for a pair.

The difference between the two numbers is called the spread. So, if the bid is, say 1.5111 and the ask is 1.5115 the spread is 0.0004, or 4 pips. In order to make a profit from a buying trade, you’ll need the pair to cross the spread above 1.5115.

Study So That You Know All About Investing in Foreign Currency

Forex trading is tricky. Spend time learning about the pairings. Investigate trends and spreads, and look at how liquid a pairing is before you jump in.

Because pairs of currencies don’t move a lot, up or down, investing in foreign currency does not result in huge gains or losses for beginners.

The language and terms can be confusing. It’s an insider’s lingo. Make sure you know what all the things in this article refer to.

At the same time, Forex trading can be fun and rewarding.

If you’d like advice on how to get started with your first Forex trades get in touch with us. We understand the foreign currency markets, and we have a wealth of knowledge to help you make the best choices on pairings and trades. We look forward to helping you.

Corporate Finance

European FinTech Lending Industry to Hit $9.6bn Value This Year

ByCFI.co Blogger

Innovative lending services, such as crowd and P2P marketplace loans, are becoming increasingly popular in many European countries. With the development of financial technology, recent years have witnessed a growing number of business customers and private borrowers using these digital financial services.

According to data gathered by Finanso.se, the European fintech, or the alternative loans industry, is expected to hit a $9.6bn transaction value this year, growing by 10% year-on-year.

Crowdlending Generates Nearly 70% of Total Market Transaction Value

After the financial crisis, many traditional banks became very restrictive in approving loans, especially in some European countries, leaving businesses and individual consumers with no access to much-needed cash. This created space for lending platforms, which connected borrowers directly to lenders, and removed the banks from the equation.

Lending platforms use sophisticated computer algorithms to make lending decisions, provide fast loans, and lower rates to borrowers. Investors, on the other hand, are given the ability to easily invest in loans outside of their countries at attractive returns.

In 2017, the European fintech lending market hit $6.3bn value, revealed the Statista Alternative Lending Market Outlook. By the end of 2018, the market value increased by 20% and reached $7.5bn worth. The rising trend continued in the next twelve months with the entire market reaching $8.7bn value. The statistics indicate European fintech lending industry is expected to show an annual growth rate of 3.0% between 2020 and 2023, resulting in $10.5bn transaction value in the next three years.

The market’s largest segment is crowdlending or peer-to-peer business lending. In 2017, European peer-to-peer loans in the business sector reached $3.6bn worth. Over the last three years, the market value of the crowdlending loans increased by more than 75% and hit $6.5bn transaction value in 2020. Statistics show this amount will grow to nearly $7.2bn in the next three years.

Consumer peer-to-peer loans are forecast to edge up to $3.1bn value in 2020, twice less than business lending.

Number of European Fintech Loans to Reach 1.3 Million by 2023

Although peer-to-peer business loans represent the leading market segment, the statistics indicate a much higher number of consumer peer-to-peer loans in Europe. In 2017, there were more than 911,000 successfully funded alternative loans in the consumer segment.

Business peer-to-peer loans reached over 63,000, or 14 times less compared to consumer loans. In the last three years, consumer and business alternative loans rose to 1 million and 75,900, respectively. The average funding per loan in the crowdlending segment is expected to reach $86,185 this year. Statista survey indicates the total number of European fintech loans will amount to over 1.3 million by 2023.

Compared by geography, the United Kingdom represents the leading European fintech lending market, and the third-largest fintech lending market globally. According to statistics, the total value of UK fintech loans is expected to peak at a value of $4.8bn this year.

Switzerland ranked as the second-largest market in Europe with $1.4bn worth transactions in 2020, growing by remarkable 27.4% year-on-year. With a $796 million transaction value in 2020, Italy ranked as the third-largest fintech lending market in Europe.

However, besides Switzerland, Denmark and Spain are expected to see the highest growth rates in the following years, rising by 23.7% and 22.9% respectively year-on-year.

Read the full story here: https://finanso.se/european-fintech-lending-industry-to-hit-9-6bn-value-this-year/

Finance

What’s the secret to trading on the financial markets?

ByCFI.co Blogger

Giles Coghlan, chief currency analyst at HYCM

There are countless books claiming to elucidate exactingly how to invest over the long-term. However, ask any seasoned trader what the secret is to an effective investment strategy and you’ll quickly find there is no one tactic or panacea for consistent growth.

Instead, what most traders rely on is an informed and reactive understanding of both current affairs and unfolding market trends to help inform their investment decisions. By letting this understanding dynamically inform one’s portfolio, they are able to confidently react to sudden market shocks.

Investors must therefore have one eye on the present and one eye on the future, and understand how different social, political, geographical and economic events could impact their portfolio. This understanding must be informed by an awareness of how past events have affected the prices of different assets. Thankfully, there are plenty of useful ways that investors can prep for the future.

Markets are all about cause and effect

The fundamental operation of the financial market is one of cause and effect; one event or price movement will inevitably affect the prices of other assets. Whilst this is a simple enough concept, big political and social events often trigger a multiplicity of effects, which can in turn impact on one another.

For example, the recent outbreak of coronavirus is having a major impact on global supply chains; China’s productivity has been negatively affected, which has had a flow-on effect on major businesses that rely on China as part of its supply chain.

In terms of market volatility, there is a huge amount of historical evidence which shows how the coronavirus could impact asset prices. One central theme is likely to be the increase of value in ‘hard commodities’ — physical investments like gold, steel and oil. That is because these so-called safe haven assets are perceived as having global appeal and consistent demand, and therefore offer greater resilience in times of volatile trading conditions.

Never overlook the advantages of an informed strategy

I doubt you could find many long-term traders who have not woken up one morning to see that there has been a dip in the value of their investments as a result of an unforeseen geopolitical event. For those who find themselves in this situation, it can be easy to panic and make uninformed decisions. This is the entirely wrong approach to take.

By its very nature, finance is an unpredictable sphere of work, and unexpected shocks are par for the course. That’s why the strongest financial plans tend to include or account for the unforeseen. When prices dip or there is a sudden market shock, it has been for the most past accounted for and leaves little room for sudden trades that are informed by the heart, not the mind.

Remember to diversify (within limit)

Another way of managing market volatility is ensuring your portfolio is diverse, with investments spread across multiple markets. Doing so reduces your portfolio’s risk of suffering significant loses should one particular market or sector be adversely affected by an unexpected event. However, the key to diversification is not to cast your net too wide.

The broad points that need internalising here can be surmised very briefly: knowledge is power.

Mastering the complex nature of different financial markets is not simply about watching the fluctuating prices of assets. It’s also about understanding the historical performance of different markets, analysing previous trends and using all this as a guide to manage your investments during sudden political and economic shocks.

What’s more, any investment decision or trade needs to be part of a bigger strategy with goals, returns and risk exposure all clearly defined. Doing this ensures that investors and traders are in the position to stay on top of their financial portfolio.

High Risk Investment Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. For more information please refer to HYCM’s Risk Disclosure.

Giles Coghlan is Chief Currency Analyst at HYCM – an online provider of forex and Contracts for Difference (CFDs) trading services for both retail and institutional traders. HYCM is regulated by the internationally recognized financial regulator FCA. HYCM is backed by the Henyep Capital Markets Group established in 1977 with investments in property, financial services, charity, and education. The Group via its relevant subsidiaries have representations in Hong Kong, United Kingdom, Dubai, and Cyprus.

Economics

Global sell-off could be seen by investors as best buying opportunity in a decade

ByCFI.co Blogger

The worst global market sell-off since the 2008 crash will become an important buying-opportunity for investors, affirms the chief executive of one of the world’s largest independent financial advisory and services organisations.

The prediction by Nigel Green, CEO and founder of deVere Group, comes after equities lost a tenth of their value this week as investors piled into havens on growing concerns the coronavirus outbreak will hit the world economy and impact corporate profits.

Mr Green notes: “Until this week, the markets had largely shrugged off the impact of the outbreak of coronavirus. We warned about complacency leaving many wide-open to nasty surprises.

“This has now changed. Investors have done a ‘one eighty’ – from a muted overly confident reaction to the serious and far-reaching global issue of coronavirus to running like headless chickens.

“Both extremes are worrying and could potentially wreak havoc on investors’ returns.”

He continues: “However, the worst global market sell-off since the 2008 crash will almost certainly become an important buying-opportunity for many investors.

“With markets on the brink of correction territory, panic-selling, mis-pricing of high quality equities, and lower entry points, this could turn out to be one of the key buying opportunities in the last 10 years.

“Some of the most successful investors will embrace volatility to create, maximise and protect their wealth.

“As ever in times of increased turbulence, there will be winners and losers. A professional fund manager will help investors take advantage of the opportunities that volatility presents and mitigate potential risks.

Earlier this week, Mr Green noted: “In the current volatile environment, investors – including myself – will be revising their portfolios and drip-feeding new money into the market to take advantage of the opportunities whilst reducing risk at the same time.”

The deVere CEO concludes: “Global investors should not be spooked by the return of volatility on stock markets but, where possible use it to their financial advantage.

“Of course, no–one knows for sure what will happen in the immediate future but, as stock markets typically rise over a longer-term period, now is the time to capitalise on the more favourable prices of decent stocks.

“It can be expected that in coming days, serious investors will be bargain-hunting.”

Finance

AlRaedah Finance and Sure Global Tech seal agreement providing POS Financing Across the Kingdom

ByCFI.co Blogger

26th February 2020 – Riyadh – AlRaedah Finance and Sure Global Tech today signed an agreement for providing Point of Sale (POS) financing to SME’s across the Kingdom. Representing AlRaedah Finance, Paul Melotto, AlRaedah CEO, signed the agreement alongside Sure Global Tech CEO, Basem Bn Abdullah Alsallom. The Agreement brings together two industry leaders in providing a unique first of a kind financing solution to SME’s. The signing ceremony took place on the 26^th of February 2020, at the MEFTECH conference hosted at the Riyadh Ritz Carlton Hotel.

POS Financing is one of the most innovative products in alternative business finance. Put simply, it uses the business’s POS terminal to ‘secure’ short term lending — perfect for businesses without many assets, but who have a good volume of credit/debit card transactions every month. SME business owners taking advantage of POS Financing won’t have monthly payments. Instead, repayment is automatic and taken from their daily credit/debit card processing settlements. It’s simple, easy and affordable because repayment is a fixed percentage of POS transactions, and not a fixed Riyal amount. Hence, when POS sales are high, the merchant repays more; when they’re lower, they repay less.

“We have seen other POS financing-related products in the market and they were clearly often one-sided in favor of the Banks so we have tried leveling the playing field to make this product a win-win for both the SME and Financial Institution.”, said Paul Melotto, AlRaedah CEO.

The amount a business can apply for is determined by their average credit/debit card sales. AlRaedah Finance, by way of its advanced Artificial Intelligence models along with AlRaedah’s Financing platform allows it to quickly analyze data and avail funds ranging from SR50,000 to SR500,000 to approved SMEs.

Basem bin Abdullah Alsallom, Sure CEO, said that Sure Global Tech is excited to team up with AlRaedah in leading the digital transformation through effective business and digital solutions. Since the establishment of the company in 2004, Sure Global Tech has been keen on providing different governmental and private bodies with the best digital solutions as a part of its contribution in the Kingdom’s digital transformation journey.

“We are excited that Sure Global Tech has decided to use AlRaedah finance platform to provide financing to their clients” said Abdulaziz Aldawood, AlRaedah Chief Commercial Officer.

Paul added, “We are already working on enhancement to the product based on the feedback of our initial pilot group of SMEs and will continue to provide the Saudi market with new and innovative financing solutions”.

At times, it might be tough for small businesses to get funding through traditional financing. AlRaedah Point of Sale POS Finance Program, in collaboration with SURE Global Tech is the solution. With approval rates of 85%, a simple application, minimal documentation and no guarantors, SME’s can get their financing in a matter of days to grow their business.

About AlRaedah Finance

AlRaedah Finance is the pioneer of bespoke solutions for small and medium sized enterprises, (“SMEs”) seeking to achieve long-term, sustainable growth. Since its establishment in 2014, AlRaedah has become the principal financing institution for SMEs in the Kingdom of Saudi Arabia. Our success is built on our simple, transparent process, our in-depth understanding of the local market, and our flexible financing programs.

AlRaedah Finance offers the most extensive coverage for Sharia’h compliant financing solutions within the Kingdom, with its headquarters located in Riyadh, a branch office in Burayda, and aggressive expansion plans. Our ease of accessibility ensures that we maintain our position within the financial services sector.

About Sure Global Tech

Since its 2004 inception, Sure Global Tech has developed Saudi expertise with international standards to provide technological and consultative solutions for a considerable number of public and private organizations in the country. By national talents, Sure provides services of software development, infrastructure, support and operation along with the digital transformation consultations and other SME-oriented products. Recently, Sure advanced two new fields i.e. FinTech which is embodied by its new company “SurePay”; and investing in promising startups.

Finance

Coronavirus-triggered market correction could hit complacent investors

ByCFI.co Blogger

Investors remain complacent about an imminent Coronavirus-triggered market correction of up to 10 per cent, warns the CEO of one of the world’s largest independent financial advisory organisations.

The warning from deVere Group’s chief executive and founder, Nigel Green, comes as global equities registered losses on Monday following a surge in cases in Italy, Iran and South Korea over the weekend, and as the first cases are confirmed in Kuwait, Bahrain and Afghanistan.

Mr Green comments: “Global financial markets retreated on Monday as they reacted to the coronavirus headlines over the weekend. But it is likely that they will quickly rebound, as they have consistently done in recent weeks.

“Indeed, stocks keep on reaching record highs.

“This is because many investors remain complacent about the far-reaching impact of coronavirus, which is continuing to spread – and a faster pace. This will inevitably hit financial markets and investors’ complacency leaves many wide open to nasty surprises.”

He continues: “Major global companies, especially those with heavy exposure to the Chinese economy, are lowering profit guidances due to the outbreak. This will have a knock-on effect across international supply chains and throughout economies. But is the message being heard by investors?

“In addition, coronavirus has struck at a time when major economies, including Japan, Germany, India and Hong Kong are facing a downturn due to other factors such as the U.S.-China trade dispute and political protestors, which could hit the world economy.”

The deVere CEO goes on to add: “Until such time as governments pump liquidity into the markets and coronavirus cases peak, a near-term correction – of up to 10 per cent – is increasingly likely.

“We are hoping for a V-shaped recovery, but our current view is that it will be U-shaped.

“Against this backdrop and with the ongoing uncertainty over the direction of stocks and other risk assets, multi-asset portfolios might be favoured by global investors, given that they offer diversification of risk as well as of return.”

Nigel Green concludes with a warning: “Global markets are at high valuations and the impact of the coronavirus on profits appears largely underestimated.

“In general terms, stocks have hardly been deterred by the coronavirus outbreak. This complacency is concerning.

“Investors need to ensure that their portfolios are coronavirus-proofed as cases jump and a market correction looks more likely.”

Finance

Restoring competition in ”winner-took-all” digital platform markets

ByCFI.co Blogger

Competition law and policy can help ensure open and accessible markets with fair and reasonable terms for businesses

Digital platforms are at the centre of the global economy and daily lives of consumers.

A handful of these platforms have become dominant in specific markets without facing meaningful competition. They include Amazon as a marketplace, Facebook in social networking, Google in search engines and Apple and Google in application stores.

Digital platforms rely on big data and are characterized as multisided markets with economies of scale, network effects and winner-takes-all features.

These firms offer their products for “free” on one side of the market and earn revenues from online advertising and selling user data on the other side of the market.

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Restoring competition in “winner-took-all” digital platform markets

The growing market power of these platforms raises concerns not only for consumers and smaller businesses but also for competition authorities.

Consumers not in control

Consumers can no longer control the use of their data.

Smaller businesses face unfair market conditions, where they compete with big platforms that offer services by self-preferencing their own products. It is now widely recognized that these markets cannot self-correct.

What needs to be done?

One effective response is competition law and policy that promotes open and accessible markets with fair and reasonable terms for businesses.

This goal is more pronounced in highly concentrated digital markets, where large platforms’ market power is enduring.

The most important competitive threats to monopolists are likely to come from new entrants, which are vulnerable to exclusionary conduct or anticompetitive acquisitions.

Governments should have in place relevant policies and legal frameworks to overcome different challenges of the platform economy. These include competition, consumer protection and data protection policies and legislation.

Adapt to new realities

There is a need for adapting competition law enforcement tools to new business realities by revising laws like in Germany and Austria or issuing regulations or guidelines as has been done in Kenya and Japan.

A 2017 law revision in Germany incorporated in the assessment of the market power of firms in the digital economy such criteria as direct and indirect network effects, parallel use of services from different providers and switching costs for users.

It also factored in economies of scale in connection with network effects, access by firms to data relevant for competition and innovation-driven competitive pressure.

This amendment allowed the Federal Cartel Office in Germany to consider these criteria in analyzing Facebook’s dominance in the social network market during its investigation into Facebook between March 2016 and February 2019.

Merger control regimes should enable competition authorities to scrutinize the acquisition of start-ups by major platforms.

Merger analysis needs to incorporate the role of data in acquiring and sustaining market power and establishing entry barriers to new firms, thereby affecting future competition and innovation.

Not only free but also fair competition

It is important to ensure not only free but also fair competition. This is more so in digital markets, where smaller firms face challenges in their contractual relationship with big platforms.

Competition law provisions on unfair trade practices and abuse of superior bargaining position, as found in competition laws of Japan and the Republic of Korea, would empower competition authorities in protecting the interests of smaller firms vis-à-vis big platforms.

Developing countries could consider this policy measure in revising their competition legislation or introduce a separate regulation concerning digital platforms’ dealings with their business users.

Such measures could facilitate entry of local small and medium-sized enterprises (SMEs) to platform markets, thereby allowing developing countries to reap the benefits of the digital economy.

This is important as SMEs are crucial to job creation and innovation.

Both the implementation of fair competition legislation and review of acquisitions of startups by dominant platforms could play an important role in maintaining an inclusive, competitive and fair business environment in the digital economy. This might eventually enhance innovation.

Apt taxation policy needed

Another critical element needed to ensure fair competition is an appropriate taxation policy. A significant proportion of the value created in the digital economy results from users who provide data.

The current international corporate tax system is not adapted to the digital economy. There is not yet a common understanding of “value creation” for taxation purposes in the digital economy.

This leads to a disconnect between where value is generated and where taxes are paid. According to the UNCTAD Digital Economy Report 2019, taxes paid abroad by Facebook represented only 2.9% of the profits it generated outside the United States in 2017.

Ideally, an international taxation system, which is agreed upon by all countries, and recognizes the main aspects of digital businesses that have significant implications for taxation, should be put in place.