Latest news with #ArthurDLittle
Arabian Business
4 days ago
- Business
- Arabian Business
UAE banks struggle with employee digital readiness despite leading GCC innovation: Report
UAE banks face barriers in empowering frontline employees to deliver seamless customer experiences, despite leading the GCC in digital adoption and omnichannel innovation, a survey by Arthur D. Little revealed. The study, conducted with 42 banks across the UAE and KSA, draws insights from 24 UAE banks surveyed in ADL's Omnichannel Survey 2024. The findings show that 72 per cent of UAE employees operate in mobile-first environments, reflecting the country's digital infrastructure. UAE banks face barriers However, 25 per cent of staff report lacking confidence to manage customer queries across multiple channels. Digital platform complexity creates further obstacles, with 35 per cent citing interface challenges and fragmented user journeys that disrupt service quality. 'UAE banks have invested heavily in digital infrastructure, but now the focus must shift to employee enablement. Bridging the gap between technology and talent is essential to realise the full potential of omnichannel strategies,' Martin Rauchenwald, Partner and Global Head of Financial Services practice at Arthur D. Little said. Data access and usability present concerns for UAE banking staff. Only 10 per cent of respondents say it is extremely easy to retrieve and use customer information across platforms, while 30 per cent find it extremely challenging. Fragmented systems and lack of real-time synchronisation force staff to rely on manual workarounds, increasing friction and reducing productivity. Customer service continuity faces disruption, with 42 per cent of UAE employees experiencing issues transferring customer problems between channels due to inconsistent service availability. This breakdown undermines customer trust and employee morale. The report notes that real-time backend integration, enabled through cloud and blockchain technology, is key to overcoming these hurdles. 'To deliver truly seamless service, UAE banks must prioritise backend modernisation, strengthen cross-channel consistency, and invest in training that's tailored to employee roles, digital fluency, and generational needs,' Rezwan Shafique, Principal, Financial Services at Arthur D. Little Middle East added. Employee training needs focus The survey reveals generational divides in digital tool satisfaction. Younger employees under 35 show 60 per cent satisfaction with digital tools, whilst only 28 per cent of those over 45 report the same level of satisfaction. Among the dissatisfied older group, 42 per cent attribute their struggle to insufficient training. The report suggests targeted mentorship, simulation-based learning, and inclusive upskilling are necessary to bridge these gaps and strengthen readiness across all age groups. Banks such as Emirates NBD and Mashreq are pioneering omnichannel models powered by AI and personalisation. The survey concluded that their success depends on aligning innovation with workforce capability. UAE banks must evolve from technology adopters to integration leaders by ensuring employees receive support, systems are unified, and customer experiences are seamless. The study indicated that the Emirates banks must now focus on backend modernisation and employee training to fully realise their digital investment potential.
Arab News
6 days ago
- Business
- Arab News
Saudi Arabia reshapes workforce with surge in talent mobility solutions
RIYADH: As Saudi Arabia pushes forward with its Vision 2030 transformation agenda, talent mobility services are emerging as a pivotal force in reshaping the Kingdom's employment landscape — streamlining transitions, boosting retention, and aligning workforce development with national diversification goals. From artificial intelligence-powered human resource platforms to targeted upskilling programs and strategic internal marketplaces, both private firms and public initiatives are facilitating dynamic career transitions. These interventions are not only transforming the experience of work in Saudi Arabia but also supporting businesses in building a more agile, tech-enabled, and future-ready workforce. A shift toward internal agility As the labor market evolves, the focus has moved from external recruitment to creating an internally sustainable talent ecosystem. According to Francesco Cotrone, partner at Arthur D. Little, providers are enabling this transformation by deploying tools such as internal job marketplaces, AI-driven role matching systems, and strategic workforce planning platforms. 'These technologies not only give employees visibility into internal opportunities but also match them to roles based on both current capabilities and future potential,' he said. The result is a shift away from static, linear career paths toward more flexible, opportunity-rich trajectories. This is particularly critical in fast-growing sectors such as logistics, tourism, and ICT, where the ability to reskill and redeploy talent quickly has become a competitive differentiator. Cotrone cited Taqat, a leading domestic talent mobility service provider, as a prime example. The company's employee transition program assesses individual skills and delivers customized training to support career moves across industries. 'As it works to connect skilled workers with employers in high-demand sectors such as technology and healthcare, Taqat facilitates seamless transitions, enhances career opportunities, and addresses critical skill shortages in the evolving job market,' he added. Navigating compliance and change Saudi Arabia's workforce is also being shaped by demographic and regulatory dynamics. Abeer Al-Husseini, partner at Fragomen, noted that by the end of 2024, the Kingdom's foreign workforce had grown to over 13.6 million, marking a 13.3 percent year-on-year increase and a 33.4 percent jump since 2019. 'In this environment, mobility providers are essential in helping businesses navigate regulatory frameworks such as Saudization policies under the Nitaqat program, sector-specific quotas, and compliance obligations set by the Ministry of Human Resources and Social Development,' Al-Husseini said. These services often manage interactions with multiple government platforms — such as Qiwa and GOSI — while enabling fast, compliant transitions across functions and sectors. This reduces administrative friction and helps ensure continuity amid shifting business conditions. She emphasized that talent mobility providers not only facilitate expatriate integration but are also playing a vital role in embedding Saudi nationals into the private sector. By supporting strategic workforce planning and Saudization targets, these providers align with national human capital development priorities. From recruitment to retention Modern mobility is no longer just about hiring — it's about mapping skills, identifying gaps, and supporting long-term workforce evolution. Faisal Al-Sarraj, KSA deputy country leader and consulting clients and markets leader at PwC Middle East, underscored the value of internal talent marketplaces — digital tools that align employee skills and interests with internal opportunities. 'As Saudi Arabia continues to advance under Vision 2030, organizations need to be proactive in building teams with the needed market skills. Talent mobility helps with this by upskilling and cross-training existing employees,' Al-Sarraj told Arab News. He acknowledged that while external hiring remains necessary for certain critical roles, internal mobility is gaining ground as a strategy for boosting retention and responsiveness. Mobility providers are essential in helping businesses navigate regulatory frameworks, sector-specific quotas, and compliance obligations. Abeer Al-Husseini, partner at Fragomen 'Providers also help organizations shift from reactive hiring to proactive workforce planning. By using advanced tools, they help companies forecast what skills will be needed in the future and develop strategies to reskill employees. Providers like Mercer, Adecco, Bayt, and Naseej are doing an excellent job in this space,' he said. Serge Eid, a member of Bain & Co.'s Public Sector practice, noted that providers are extending their services beyond hiring logistics to include skilling initiatives and regional talent deployment — key factors for scaling in emerging sectors. 'This support has become increasingly critical as businesses look to scale quickly, pivot into new sectors, or access regional talent pools,' Eid said. 'They also support Vision 2030's broader push for a more dynamic and globally integrated labor market.' AI and reskilling for career growth Mobility providers are increasingly focusing on reskilling and internal progression through AI-driven tools that align employee growth with business and national objectives. Cotrone highlighted the growing need for new roles such as AI specialists and data analysts, which are being addressed through targeted training programs. Importantly, these services enhance retention by making career development tangible. Francesco Cotronei, partner at Arthur D. Little 'Importantly, these services enhance retention by making career development tangible. Companies that offer clear growth pathways, mentoring, and internal mobility opportunities are not only accelerating role fulfillment. They're also building employee loyalty, engagement, and hence, retention,' he said. Al-Husseini added that talent mobility providers help businesses reimagine career paths as technology and regulations evolve. PwC's Al-Sarraj cited platforms such as Pymetrics, Fuel50, and Cornerstone OnDemand that offer employees AI-powered tools to map career journeys and personalize upskilling efforts. He referenced a recent collaboration between Education for Employment Saudi Arabia and Agility, which launched a program using AI tools to help young job seekers tailor their applications and navigate the job market. These efforts not only fill capability gaps but also signal long-term investment in people. Serge Eid, member of Bain & Co.'s public sector practice 'This is a perfect example of how talent mobility can help not just in employee transitions but also in creating a workforce that's future-ready,' Al-Sarraj noted. Eid added that such investments in internal mobility signal long-term commitment to employee growth, improving loyalty and performance. 'These efforts not only fill capability gaps but also signal long-term investment in people, which in turn drives loyalty, higher engagement, and better performance,' he said. Strategic drivers for 2025 and beyond Looking ahead, talent mobility is poised to become a central driver of workforce strategy in Saudi Arabia. Cotrone expects key trends to include personalized, experience-rich career paths and an increasing demand for data analytics literacy. 'Talent mobility providers will increasingly act as strategic partners, helping organizations create adaptive, future-proof talent ecosystems,' he said. He added: 'Talent mobility will be recognized not just as a business advantage but as a profound national imperative. As organizations invest in intelligent, internally driven workforce systems, they will unlock new pathways for growth and ensure that Saudi talent remains competitive, empowered, and at the heart of the Kingdom's cross-sectoral transformation journey.' Al-Husseini projected that companies would require rapid, compliant deployment solutions as sectors like healthcare, tourism, and tech expand. At the same time, local workforce development will become a priority, with providers playing a key role in integrating Saudi talent through internal mobility frameworks and reskilling for leadership roles. She also pointed to the rise of hybrid and remote work, particularly in sustainability-related 'green jobs,' requiring providers to support flexible, compliant mobility strategies. PwC's Al-Sarraj emphasized the growing role of predictive workforce planning, enabled by real-time data analytics. 'The alignment between workforce mobility and national upskilling initiatives will also be a major trend,' he said. He highlighted initiatives like Wa3d, which aims to provide 3 million training opportunities, and the Skills Accelerator, targeting 300,000 placements in emerging fields. 'Talent mobility providers will connect these initiatives to real job opportunities, ensuring that individuals gain the right skills and can apply them directly in the workforce,' he said. He also cited the Ministry of Human Resources and Social Development's Skills Taxonomy — a tool to align labor capabilities with evolving job demands. Cross-sector mobility, especially in digital health and green energy, is expected to play a vital role. 'Talent mobility providers will drive transitions, helping build a skilled, adaptable workforce essential to realizing Saudi Arabia's Vision 2030 and sustaining long-term growth,' he added. From Bain & Co.'s standpoint, Eid believes mobility will evolve into a strategic lever rather than just an operational function. 'AI-led workforce planning, demand forecasting, and personalized career pathways will increasingly inform mobility decisions,' he said. 'Organizations that view mobility as part of a broader talent strategy will likely be better positioned to navigate future workforce shifts and build resilience in a rapidly changing environment.'
Arab News
13-06-2025
- Business
- Arab News
Plant-based diets transform Saudi agriculture and fuel Vision 2030
RIYADH: A green revolution is taking root in Saudi Arabia as plant-based diets gain popularity, reshaping the Kingdom's agricultural landscape and creating new opportunities for local farmers. This growing shift toward plant-based living not only reflects global dietary trends but also represents a strategic step toward economic diversification and environmental sustainability — key pillars of Saudi Arabia's Vision 2030 initiative. The agricultural sector has shown impressive growth, with the Kingdom's agricultural gross domestic product reaching a record SR114 billion ($30.3 billion) in 2024, according to PwC. Despite this progress, Saudi Arabia remains a net importer of both food and animal feed, highlighting ongoing challenges in achieving national food security. Experts say the solution lies in innovation. Phil Webster, partner at consulting firm Arthur D. Little and head of its consumer goods, retail, and agriculture division, emphasized the potential of alternative crops and supporting technologies. According to him, the greatest opportunity in agriculture lies in embracing innovation — from alternative crops to smart technologies — to meet rising demand, reduce costs, and enhance food sovereignty. As plant-based trends continue to flourish, Saudi Arabia's evolving agricultural strategy may well position the Kingdom as a regional leader in sustainable food production. 'Plant-based diets are often inherently more sustainable — production of meat and dairy for example is one of the most land and water intensive activities on the planet, as well as a major contributor to global warming due to land use change and methane emissions from ruminant animals,' Webster told Arab News. He added that plant-based diets necessitate consumers to seek non-meat protein alternatives, creating opportunities to focus more on conventional high-protein crops such as chickpeas, lentils, and quinoa, which naturally exhibit greater tolerance to drought and salinity compared to many other arable crops. The ADL partner noted that crops such as lentils can play a key role in improving meat alternatives, including products like lentil burgers, with ongoing efforts aimed at increasing their resilience to harsh environmental conditions. Webster also pointed to the growing momentum behind vertical farming, which is attracting more than $1 billion in annual venture capital investment. This method supports year-round, high-quality food production in compact urban environments by utilizing advanced lighting, irrigation, and automation technologies — enabling crops to be grown virtually anywhere with minimal risk of pests and diseases. He said: 'Finally, a rise in 'lab grown meat' has seen a temporary boom in investment, but then a subsequent decline due to the costs of production and also consumer appetite when it comes to taste and mouthfeel of unfamiliar products.' According to consultancy firm Strategy& Middle East, businesses across Saudi Arabia's agricultural sector are increasingly adopting integrated, technology-driven supply chain models to meet the growing demand for plant-based and locally sourced products. Roger Rabbat, partner at Strategy&, highlighted that major agribusinesses such as NADEC are leading this shift by implementing controlled-environment farming in partnership with Pure Harvest. This approach enables the year-round production of pesticide-free, locally grown vegetables, enhancing both food quality and supply chain resilience. 'Startups have also been active to adapt to these trends as well, with companies like Red Sea Farms collaborating with Saudia Airlines to supply sustainable food to customers by levering RSF's innovative solutions around irrigation and greenhouse technology,' Rabbat told Arab News. Supply chain Providing sustainable, locally sourced food not only strengthens national food security but also supports public health initiatives — including biofortification, which enhances the nutritional value of food without requiring major changes to traditional eating habits. Patrick Wall, a medical doctor, veterinarian, and professor of public health at University College Dublin, noted that Saudi poultry producers, in collaboration with King Abdulaziz University, are exploring the use of algal oil in animal feed as a way to address nutrient deficiencies and improve overall public health outcomes. 'Microalgae are tiny aquatic organisms that, while not technically classified as plants, are photosynthetic and can be sustainably cultivated for use in both animal feed and dietary supplements,' Wall, who is also a former chair of the European Food Safety Authority, told Arab News. Wall emphasized that fortifying poultry with Omega-3 DHA could play a significant role in combating heart disease and diabetes in Saudi Arabia, which ranks among the world's largest poultry consumers. He explained that the human body cannot produce sufficient Omega-3 fatty acids on its own, making dietary intake essential. However, fish — a primary source of Omega-3s — is often avoided by many Saudis, particularly younger generations, leading to nutritional gaps that enriched poultry could help address. 'Tanmiah and Arabian Farms are the first companies in the region to produce DHA (Docosahexaenoic Acid) enriched poultry and eggs and they helped King Abdulaziz University to deliver this research. They are showing that the private sector is ready to engage in food innovation that benefits both public health and business growth,' Wall said. Rabbat, from Strategy&, noted that the record agricultural GDP achieved by the Kingdom in 2024 is being driven by ecosystem-wide innovation, supported by the introduction of new products and technologies such as precision irrigation and vertical farming. 'SADAFCO has launched Saudia Oat Milk, the Kingdom's first locally produced oat based milk, to meet the rising demand for plant-based alternatives. Mishkat Agritech, based in Jeddah, leverages hydroponic greenhouse and vertical farming techniques to reduce water usage by up to 90 percent compared to traditional agriculture,' he said. The Strategy& Middle East partner added: 'These innovations directly support Vision 2030 by advancing food security, reducing import dependence, enabling sustainable resource use, and fostering a resilient, tech-driven economy.' Food system innovation There is no doubt that Vision 2030 places strong emphasis on building a vibrant society, enhancing quality of life, diversifying the economy, and empowering the private sector in Saudi Arabia. In the agri-food sector, this vision translates into prioritizing public health and nutrition, developing consumer-friendly products, strengthening food security, and advancing sustainable food production. From the perspective of Arthur D. Little, innovation in sustainable food systems is a cornerstone of this national transformation. One particularly promising area is the use of functional ingredients to boost the nutritional profile of everyday foods. Webster highlighted that Saudi scientists are working to reduce the country's dependence on imported animal feed by cultivating microalgae locally. Researchers at King Abdullah University of Science and Technology are leading efforts to develop seawater-adapted microalgae strains and are investigating the potential for algae farming on the salt flats along the Arabian Gulf. Projects like TOPIAN, part of NEOM Food Co., are showcasing how advanced, climate-resilient infrastructure can bolster local food production. TOPIAN recently inaugurated its first controlled-environment glasshouses, engineered to grow fruits and vegetables year-round. These facilities also serve as testing grounds for evaluating the viability of various crops across different production systems. 'Cooling efficiency, radiation control, solar integration, and water conservation are among the key innovations being explored to enable consistent domestic supply of crops such as lettuce, tomatoes, and strawberries,' Webster said. The ADL partner acknowledged that while the full impact of these innovations on national food system productivity is still emerging, their long-term potential is substantial. From Strategy&'s perspective, Rabbat emphasized that the growing 'plant-based prosperity' trend is steering Saudi agriculture toward sustainable, technology-driven models designed to address water scarcity, climate challenges, and increasing consumer demand.
Arab News
07-06-2025
- Business
- Arab News
‘Retailtainment' shaping growth of shopping malls in Saudi Arabia
RIYADH: Shopping malls in Saudi Arabia have strong growth prospects, as consumers increasingly prefer the convenience of retail and entertainment offerings combined under one roof, experts have told Arab News. Strengthening the Kingdom's retail sector, including the development of shopping destinations, is one of the crucial goals outlined in the Vision 2030 program, as Saudi Arabia aims to become a global hub of business and tourism by the end of the decade. In June, a report by global real estate consultancy Knight Frank revealed that Riyadh is leading the Kingdom's retail transformation, with mall rents up 4 percent in a year and 2.2 million sq. meters of new retail space planned by 2030. According to the analysis, average mall rent in the Saudi capital rose to SR2,848 ($765) per sq. meter by the end of March, with occupancy rates up 5 percent to reach 92 percent in the first quarter of 2025. Speaking to Arab News, Olivier de Cointet, senior adviser at management consulting firm Arthur D. Little, said that shopping malls are set to thrive in the Kingdom as they evolve into social venues rather than mere shopping destinations. 'With retailtainment, which is the fusion of retail and entertainment, becoming an essential part of the customer experience, malls play a significant role in supporting the Kingdom's vision to become a business and tourist destination hub,' said Cointet. He added: 'These destinations enhance Saudi Arabia's appeal as a business and tourism hotspot and keep more consumer spending within the Kingdom.' Anthony Spary, head of retail, leasing, and offices at CBRE for the Middle East and North Africa region, echoed similar views, saying that shopping malls in the Kingdom could serve as social hubs for both locals and visitors, promoting cultural exchange and providing a platform for both international and homegrown brands. Today's consumer expects seamless integration between all channels, and this benefits physical as well as digital retail in terms of driving footfall, experience, and convenience. Sundeep Khanna, partner at ADL 'Malls often feature concepts such as family entertainment centers, cinemas, cultural events as well as unique anchor attractions, all of which will draw tourists and encourage repeat footfall with residents,' said Spary. Joe Abi Akl, partner and head of Oliver Wyman's Retail and Consumer practice for India, the Middle East and Africa, said that shopping malls in Saudi Arabia have allocated nearly half of their gross leased area to non-retail activities, which could help them serve as social and entertainment destinations. 'Shopping malls, with a pipeline exceeding 6 million sq. meters of GLA, play a vital role in this vision by offering integrated, experience-led environments. With more than 40 percent of mall space planned for non-retail activities, they're not just commercial centers, but social and cultural anchors that enrich the Kingdom's appeal as a leisure and lifestyle destination,' said Abi Akl. These comments align with Saudi Arabia's efforts to become a global hub for tourism and business by the end of the decade, with the Real Estate General Authority projecting the property market to reach $101.62 billion by 2029, representing a compound annual growth rate of 8 percent from 2024. Shaping retail spending CBRE's Spary said the rising number of shopping malls in the Kingdom is expected to boost retail spending as they provide consumers with convenience and a wide variety of product choices. 'Saudi Arabia offers a unique retail landscape in the region, providing a blend of strip malls, line retail, as well as community and regional shopping districts. This new wave of shopping malls will only add to this offering and create a more varied mix for the consumer,' added Spary. These views regarding consumer spending align with the findings of a recent report published by global consulting firm AlixPartners, which said the Kingdom's consumer market is evolving rapidly, characterized by adaptability, shifting spending patterns, and resilience in the face of global economic challenges. AlixPartners noted that the groceries and clothing categories are expected to remain key spending sectors in 2025, with consumers prioritizing value-driven deals and savings. Craig Watson, head of retail at JLL in the Kingdom, stated that the development of several high-quality retail centers will transform the consumer experience across Saudi Arabia, offering a wide array of choices and ultimately boosting overall spending. 'When regions go through extensive and rapid growth, the consumer is always the winner, with increased supply providing new and exciting concepts to experience. The retail mix, success, and execution of these places will ultimately determine the share of wallet and who benefits most,' said Watson. In February, during the Retail Leaders Circle, Abdellah Iftahy, senior partner at McKinsey and Co., said that the Kingdom's retail sector is undergoing a significant transformation, driven by a digitally savvy young population and increasing consumer confidence. He added that by 2035, 75 percent of retail spending is expected to come from the Saudi youth. E-commerce vs. shopping malls Although the growth of e-commerce in Saudi Arabia may pose challenges for traditional retail formats, it can also complement the development of malls in the Kingdom, according to experts. Watson notes that the Kingdom has emerged as a major e-commerce hub in the Middle East and North Africa, driven by its young, tech-savvy population and expanding internet coverage. He believes the growth of the e-commerce sector will not negatively impact the operations of shopping malls nationwide. • Strengthening the Kingdom's retail sector, including the development of shopping destinations, is one of the crucial goals outlined in the Vision 2030 program. • Riyadh is leading the Kingdom's retail transformation, with mall rents up 4 percent in a year and 2.2 million sq. meters of new retail space planned by 2030. 'As is the case with every region, the overwhelming majority of retail sales is derived from brick-and-mortar transactions. Malls will need to adapt by integrating technology, enhancing the customer experience and offering unique in-person experiences that cannot be replicated online,' said Watson. According to Spary, many consumers still prefer the tactile experience of shopping in person, and malls can integrate e-commerce by offering click-and-collect services. 'Malls can serve as experiential spaces where brands showcase their products, attracting customers who enjoy the physical shopping experience. Taking into account both cultural shopping preferences as well as the impact of the climate on consumer behavior, increasing e-commerce penetration will add to the overall omnichannel approach that retailers are adopting across the region,' said Spary. Sundeep Khanna, partner at ADL, said that the growth of the e-commerce sector is not cannibalising shopping malls, but is actually complementing them. 'Today's consumer expects seamless integration between all channels, and this benefits physical as well as digital retail in terms of driving footfall, experience, and convenience,' said Khanna. Attracting international brands Spary told Arab News that the transformation and upgrade of retail offerings in the market of Saudi Arabia will pave the way for new international brands to enter and grow within the Kingdom, contributing to the country's wider economic goals. According to the CBRE official, the entry of new brands will not only enhance consumer choices but also stimulate a competitive environment that encourages brand expansion and attracts investment. 'CBRE is currently seeing record levels of demand from international brands looking to expand into the region. This demand is likely to continue given the robust and ever-maturing nature of this market,' said Spary. Cointet noted that Saudi Arabia has become an attractive destination for global fashion, luxury, and food and beverage retailers, drawn by the population's strong spending power and the rise of premium mall spaces such as Riyadh Park and Mall of Arabia. 'Mall expansion goes hand-in-hand with pro-investment reforms — for example, Saudi Arabia now allows 100 percent foreign ownership in the retail sector, encouraging international companies and developers to invest directly,' added Cointet. The Arthur D. Little official further stated that the expansion of shopping malls in the Kingdom will also provide local brands with unprecedented opportunities to establish a national and international footprint. 'This is critical for developing the Saudi economy and I anticipate we will see more Saudi-owned brands enter the world stage in the coming years,' added Cointet. Potential challenges The experts also highlighted some of the challenges in Saudi Arabia's retail landscape, particularly surrounding shopping malls, including oversupply. 'Whilst there's certainly a risk of oversupply with many large projects due to be delivered over the course of the next two to three years, the need for continuous innovation and adaptation to changing consumer trends will be crucial for the sustainability of shopping malls in the Kingdom,' said Spary. The CBRE official further said that new attractions, entertainment options, and cultural elements will play a pivotal role in reshaping the retail landscape in the market. Spary added that the integration of these features will create a more engaging and immersive experience for consumers, ultimately redefining how shopping is perceived and enjoyed in the Kingdom. Cointet expressed a slightly different view, stating that the demand for malls in Saudi Arabia is expected to rise in the coming years due to population growth. He explained that this challenge could be addressed by developing large-format mega malls that serve as destinations in themselves, alongside smaller community malls designed to offer convenience at the local level. In April, a separate analysis by S&P Global said that oversupply, changing retail preferences, and pressure on rental yields amid elevated capital expenditure by landlords could exert pressure on the Kingdom's retail sector. According to the US-based agency, the volume of retail projects in the pipeline raises the risk of potential oversupply, particularly in secondary locations where demand may not be sufficient to absorb new retail spaces. Discussing the risk of oversupply, Cointet said: 'Saudi Arabia's aggressive development pipeline of new retail space underway — raises the risk of too much supply coming to market, which could pressure occupancies and rents in some areas, or even threaten the launch of some of the programs.' He added: 'Landlords and developers may need to differentiate their properties with unique experiences, dining, and entertainment offerings — and even offer lease incentives — to avoid saturation and keep shoppers engaged in an evolving retail landscape.'
Khaleej Times
28-05-2025
- Business
- Khaleej Times
UAE: 72% survey respondents prefer mobile banking apps
Driven by customers' growing appetite for seamless digital and in-person services, the UAE banking sector is undergoing a profound transformation, according to a new study. Conducted with 24 UAE banks by Arthur D. Little (ADL), the survey released on Wednesday reveals that 72 per cent of UAE respondents now prefer mobile apps as their primary banking channel, drawn to their convenience, intuitive interfaces, and personalised financial tools. This digital surge reflects a broader global trend, with the UAE's mobile banking adoption rate outpacing many developed markets, where mobile app usage averages 65 per cent, per a 2024 Statista report. Despite this digital dominance, physical branches remain vital for complex financial needs. Around 35 per cent of UAE customers still visit branches for services like loan applications and mortgages, valuing the trust and expertise of in-person interactions. High-income customers, in particular, show a nuanced preference: 70 per cent favor digital solutions for routine banking but rely on face-to-face advisory for high-value decisions. Additionally, 43 per cent of respondents regularly use self-service kiosks for tasks like cash withdrawals and account inquiries, indicating a demand for hybrid solutions that blend automation with human touch. Mobile wallet adoption is also on the rise, especially among younger and tech-savvy middle-income groups. The UAE's mobile payment market is projected to grow by 8.2 per cent annually through 2030, driven by innovations like contactless payments and digital remittances, according to a 2025 PwC report. This trend underscores the need for banks to enhance digital self-service options, such as advanced kiosks for loan processing and card issuance, alongside robust mobile wallet functionalities. Martin Rauchenwald, partner and global head of financial services at ADL, said by integrating advanced digital platforms with high-quality in-branch advisory, banks can build trust and loyalty. Seamless omnichannel strategies are key to meeting evolving customer expectations.' Rezwan Shafique, principal at ADL Middle East, added that investments in AI-powered personalization and digital literacy programs are critical to bridging the digital divide and enhancing user experiences across mobile apps, online portals, and branches. The survey highlights the growing demand for 'phygital' banking — merging digital efficiency with personalized human interactions. UAE banks are urged to adopt hybrid models, leveraging AI-driven wealth management tools and optimised remittance platforms while maintaining trusted in-branch consultations. According to banking industry experts, with the UAE's financial sector contributing 14.2 per cent to the national GDP in 2024, per the UAE Central Bank, these strategies are essential for banks to stay competitive.
