iFX EXPO International 2023: Equiti CEO Iskandar Najjar talks MENA expansion, UAE crypto regulation

With the occasion buzzing in full swing, Nikolai Isayev, Editor in Chief of FinanceFeeds, took the chance to interview Iskandar Najjar, CEO of Equiti Group. Iskandar is an business veteran with nearly twenty years of expertise within the world monetary markets. His management has been instrumental in driving the expansion and enlargement of Equiti Group since 2017, positioning it as a dynamic and quickly evolving participant within the monetary business.

FinanceFeeds kicked off the dialog by asking Najjar about Equiti’s current partnership with MK Enterprise in Qatar, which focuses on providing B2B fintech options, together with decentralized digital asset exchanges, bodily commodities, and superior cost options.

Najjar defined that the transfer comes as Equiti has advanced from a retail dealer right into a fintech group targeted on brokerage options, buying and selling applied sciences, cost options, and the digital asset house.

Equiti’s enterprise into Qatar additionally comes at a time when the nation is experiencing speedy development, significantly post-World Cup, with a surge in exterior investments. CEO famous that Equiti’s method to the Qatari market entails a twin give attention to B2C (business-to-consumer) and B2B (business-to-business) landscapes.

Within the B2C house, the corporate is exploring potential partnerships with banks, recognizing the nascent stage of this market section. In the meantime, within the B2B area, Equiti is keenly concentrating on B2C cost options, looking for to offer an intensive vary of options via an acquisition technique. The corporate can be actively growing its cost gateway this 12 months to improve its capabilities.

Najjar was additionally enthusiastic about Equiti’s digital asset change, which is being launched in cooperation with the Dubai authorities. He mentioned that Equiti is certainly one of 50 corporations to be granted an MVP standing to push its product via the Dubai Digital Belongings Regulatory Authority (VARA). Equiti’s plans embody the launch of an SME change in Qatar and can be trying to launch a gold tokenization answer for shoppers.

The dialogue then delved into Equiti’s strategic acquisition of digital cost know-how supplier Cloud Put money into Might. We requested Iskandar Najjar in regards to the alternatives and synergies that Equiti expects to achieve from its takeover.

Najjar mentioned that the deal was initially motivated by a need to enhance operational efficiencies. Equiti has developed a product that replaces current point-of-sale (POS) units with a cellular cost answer for retailers. After working with Cloud Make investments, one of many acquirer know-how suppliers for this product, Equiti noticed quite a lot of synergies and determined to accumulate the corporate.

Cloud Make investments has been round for over 12 years and has a variety of merchandise within the acquirer and issuer areas. Equiti plans to broaden Cloud Make investments’s merchandise into new markets, akin to Africa and Saudi Arabia. Notably, Equiti has already gained traction in a number of African markets with its applied sciences, partnering with outstanding banks. In Saudi Arabia, Equiti has made inroads with main retailers. The corporate’s plans are actually centered on increasing its presence in these markets and advancing the adoption of Cloud Make investments’s merchandise.

Because the interview progressed, we mentioned the corporate’s world enlargement plans and its give attention to digital funding options. Again in February, Equiti opened its tenth workplace within the prestigious Etihad Towers in Abu Dhabi after buying all the mandatory approvals from the Securities and Commodities Authority (SCA).

Initially, Najjar highlighted the rising significance of the United Arab Emirates (UAE), significantly Abu Dhabi, as a pivotal bridge connecting the East and the West. The area has witnessed an inflow of vacationers and buyers from Asia, Africa, and Europe, with the dimensions and velocity of investments rising over time. He highlighted the UAE’s sturdy give attention to regulation and state-of-the-art infrastructure, which positions it as a pacesetter in right now’s world monetary panorama.

He additionally spoke about Equiti’s dedication to localization, and its plans to tailor its services and products to the precise wants of shoppers within the UAE and the broader East-West hall.

As such, Equiti’s presence in Abu Dhabi presents a mess of alternatives for its world shoppers. Within the meantime, the corporate possesses the mandatory capability, know-how, and sources to not solely scale its operations but in addition to adapt its options to the precise wants of shoppers. Najjar famous that shoppers in Abu Dhabi might have distinct necessities from these in Dubai or different areas, necessitating the institution of native touchpoints to construct belief and credibility.

When Equiti introduced the launch of the Abu Dhabi operation, the corporate hinted that there have been some plans to broaden in Asia and maybe South America or Latin America. We requested Mr. Najjar to present our viewers some perception into these plans going ahead, akin to areas, regulatory concerns, and international locations in these areas which are enticing to them. We have been additionally curious to know if he has any tentative launch dates in thoughts for these expansions.

In line with Equiti’s CEO, entry into Latin America has primarily been pushed by market demand, and the corporate has maintained a considerably reactive method within the area. Notably, Equiti already has a foothold in Colombia and is actively pursuing licenses in different Latin American international locations.

What units Equiti aside is its dedication to a “regulation-first” philosophy. The corporate is actively participating with native regulators to make sure its product choices align with regional rules. Furthermore, the dealer has been customizing its merchandise to satisfy the precise calls for of the Latin American market.

Najjar added that Equiti Group’s technique in Asia has seen a robust give attention to the B2B sector since its inception in 2017. Nevertheless, the B2C section has been extra reactive, and Equiti is now taking proactive steps to rectify this. Inside this context, the corporate plans to accumulate a single core license that can function the cornerstone for its B2C enlargement into Asia. It anticipates going reside with this license in both the primary or second quarter of 2024.

Najjar additionally famous that whereas most of Equiti’s friends have initially targeted on Asian markets after which expanded globally, their method is considerably reversed. Equiti is taking the alternative route, beginning with different markets after which increasing into Asia.

The dialog additionally touched upon the current appointment of Liam Conway as the brand new CEO of Equiti Capital UK and the alternatives that lie forward for the corporate on this area.

Najjar mentioned that Conway, having beforehand served as Equiti’s deputy CFO, is a “excellent match” for Equiti Capital UK. As such, this appointment was a pure development that is smart for Equiti’s FCA-regulated enterprise. He additionally cited Conway’s depth of understanding of the London market and his expertise within the monetary providers business.
On the operational entrance, Najjar defined that Equiti is investing closely in its London operations because it holds a pivotal place inside the group’s world buying and selling infrastructure. He described the Metropolis as a “world hub” and a “world liquidity hub” for the broader group and a few of its B2B shopper base as effectively.

Towards the tip of our interview, Najjar shared his ideas on the UAE crypto rules and the way they supply a much-needed template across the dealing with of crypto belongings. In distinction, the regulatory surroundings within the US remains to be murky as a result of lack of readability. This uncertainty is holding up efforts to ascertain clear tips, which is a crucial step for these working out of the US jurisdiction to know what they should do to conform.

Najjar highlighted the distinctive alternative offered by the UAE’s regulatory panorama, which, in his phrases, is characterised by youthfulness and a profound understanding of the digital belongings sector. The UAE boasts a cadre of educated people occupying key regulatory positions, demonstrating a robust grasp of the technological options that outline this house.

Notably, the UAE’s Minister of AI, a dynamic and proactive chief, performs a central function in advancing the nation’s digital economic system mandate. The regulatory surroundings within the UAE is marked by a realistic method, with an openness to discover progressive options whereas guaranteeing the safety of buyers and stakeholders.

The steadiness between regulation and innovation is an important theme in Equiti Group’s lively participation on this nascent house.

Equiti CEO concluded that correct governance is important to forestall pitfalls whereas avoiding the stifling of innovation via extreme regulation. Najjar views the crypto house as essentially completely different from conventional monetary fashions. Consequently, it requires laws that may adapt to this distinctive panorama. It has been crucial, in his opinion, to begin with a clean canvas and construct regulatory frameworks from the bottom up.