Financial Services Regulatory Barometer Middle East 2018

The Middle East 2018 Financial Services Regulatory Barometer provides Deloitte’s outlook for the financial services industry and regulatory environment in the Middle East in the year ahead. It is an extension of our findings on the UAE, with a point of view on the broader region. We set out the top ten regulatory priorities for banks in the Middle East, from recovery and resolution planning to financial crime compliance. We highlighted key challenges and opportunities related to these priorities, based on our understanding, experience and interactions with the industry.

As financial institutions in the Middle East navigate an increasingly complex regulatory environment, the Regulatory Barometer serves as a guide for the industry – identifying success factors to observe, risks to mitigate and pitfalls to avoid.

Firms in the Middle East can take advantage of the evolving financial services landscape to refresh their strategies, rethink their processes and identify new ways to increase efficiencies while reducing risks. Adaptation and agility will be key to success in the year ahead.

Power of technology

Transformative new technologies, from blockchain to biometrics, provide exciting opportunities for firms to increase efficiencies – not only when it comes to compliance, but across their operating and business models.

Cross-border compliance issues

Middle East banks are recognising the need to think (and act) globally – not only to mitigate against a relatively small, oversaturated local market, but also to better serve international clients seeking reliable, easy banking wherever they go. While the standards set by international bodies are globally recognised and can facilitate harmonisation across different countries, the idiosyncrasies of the local market still matter.

Risk and compliance culture

The tone at the top matters, but so does the tune from the middle. There must be awareness, understanding and ownership of risk at all levels within banking institutions, to ensure financial resilience is prioritised both today and in the future.

The top 10 regulatory priorities for the Middle East

1. Regulatory framework development
2. Cross-border compliance
3. Financial crime compliance
4. Financial stability
5. Recovery and resolution planning
6. Capital calibration
7. Risk and compliance culture
8. Conduct risk
9. Data and regulatory reporting
10. Technology and innovation