Gargash Group, one of many UAE’s largest privately owned enterprise teams, has acquired digital financial services supplier Deem Finance because it seeks to broaden its footprint inside the monetary companies sector.
The deal will speed up the corporate’s capability to satisfy its progress plans, Gargash Group mentioned on Sunday.
“It is a transformational transaction that may enable us to reimagine monetary companies in a means that the success of our manufacturers is aligned with the monetary success of our clients,” Shehab M Gargash, managing director and group chief government of Gargash Group, mentioned.
The worth of the deal was not disclosed.
Investments into the monetary companies sector have been rising amid the Covid-19 pandemic, which accelerated a pivot in direction of digital funds.
In a survey of 63 corporations within the UAE carried out by Mashreq in June this yr, practically 88 per cent mentioned their banking wants had modified on account of the pandemic, with greater than 50 per cent confirming an elevated want for financing.
Small corporations with annual revenues beneath $30 million (Dh100m) have been most affected by the pandemic when it comes to banking wants, with virtually 80 per cent feeling the necessity for extra financing as results of the pandemic.
Deem Finance, which is predicated in Abu Dhabi, offers a variety of financing options, together with private loans, bank cards in addition to wholesale deposit merchandise to UAE company purchasers.
The corporate was beforehand owned by a partnership between Mubadala Funding Firm, Fullerton Monetary Holdings, Waha Capital and A A Al Moosa Enterprises.
Gargash Group has had a presence within the non-banking monetary companies business for 23 years via Daman Investments.
Daman Investments presents companies together with asset administration, securities brokerage and wealth administration. The corporate additionally offers funding administration and advisory companies, via which it helps companies elevate capital to develop their operations.
It additionally presents recommendation on mergers, acquisitions and disposals; and underwrites fairness and debt capital market transactions, the group mentioned.
“Deem Finance has constructed a powerful product portfolio and has the technological basis required to launch modern monetary services and products catering to the evolving wants of each particular person and company clients,” Ahmed Khan, chief government of Daman Investments, mentioned.
Established in 1918, Gargash Group has a diversified portfolio in automotive, actual property and investments. The corporate launched world automotive manufacturers into the UAE similar to Mercedes-Benz, Alfa Romeo, GAC Motor and Sixt Lease a Automobile. It additionally manufactures an industrial line of lubricants, building tools and energy methods, the group mentioned.
Up to date: September 19th 2021, 10:04 AM