itsupport | World Finance

The politics of the last barrel

Posted on July 27, 2026 by itsupport

The single most important energy objective for the US today is to resolve our internal differences and put ourselves on the road toward energy independence.” These were the words of Gerald R. Ford, the 38th President of the US soon after he signed the Energy Policy and Conservation Act on December 22, 1975.

One of the key features of the Act was the establishment of the strategic petroleum reserve (SPR), a desperate measure by the US to stockpile emergency oil. This came after the 1973 oil crisis instigated by Arab members of the Organisation of Petroleum Exporting Countries (OPEC) imposing an embargo on crude exports in retaliation for Washington’s decision to support Israel during the fourth Arab–Israeli War. With the US having grown increasingly dependent on foreign oil, the cut in supplies wreaked havoc on the economy, the severity of which resulted in stagflation.

To President Ford, who rose to power at the peak of the crisis, never again would the US experience the magnitude of supply disruptions and skyrocketing prices ignited by the embargo, or whatever other form of unforeseen eventuality. The SPR, in essence, would be the line of defence in protecting the economy, and the American populace, from future shocks.

Today, half a century later, President Ford’s words and actions are echoing across the globe. The Middle East conflict, which broke in late February and whose end remains foggy, is yet again exposing the soft underbelly of the global crude oil supplies, with unprecedented disruptions causing political and socio-economic mayhem, including threatening stability in some countries. In the current uncertain environment, a new reality is dawning – stockpiling of emergency oil reserves is perhaps the most pressing need facing nations in modern times. This reality is given credence by the frequency in which the world is experiencing crude supply disruptions. In the past six years alone, disruptions have occurred three times, first occasioned by Covid-19, then the Russia–Ukraine war and now the Middle East conflict. “Strategic stocks are held to buffer supply shocks,” says Kenneth Medlock, Senior Director, Centre for Energy Studies at the Baker Institute for Public Policy. He adds that with energy security being the primary motivator for holding strategic stocks, the Middle East conflict is a stark reminder that countries must put their minds and souls into accumulating emergency stocks. “The entire policy push behind strategic stocks is precisely for times like these.”

Energy crisis from the Blue Moons
On February 28, most of the world was caught flatfooted when the US launched Operation Epic Fury, a code-name for military action against Iran. For Washington, in collaboration with Israel, the objectives of the operation were clear, “obliterating” Iran’s missiles, production facilities, navy and other security infrastructure. Of high importance though, was ensuring that Iran never gets to have nuclear weapons.

In launching the operation, the Trump administration had hoped for a quick and swift military action that would ostensibly have minimal global ripple effects. Experts, however, reckon that the US did not envisage Iran’s guerrilla-like responses. By triggering a torrent of hundreds of retaliatory missiles and thousands of drones across the Middle East, Tehran has sparked anarchy across the whole region, an epicentre of crude oil production. Data by the International Energy Agency (IEA) show the region accounts for roughly 30 percent of global oil production and 17 percent of natural gas production. Considering that most of the countries in the region are US allies and some host military bases and troops, Iran has been calculative even in targeting crude facilities and refineries in countries like Saudi Arabia and Kuwait with missiles and drone attacks.

For Tehran, however, one critical aspect of its fightback has been instigating the closure of the Strait of Hormuz, ultimately sending shockwaves of the conflict to every corner of the globe. “President Trump seems to have started this conflict with limited knowledge of the Iranian regime or the critical geography of the Strait of Hormuz,” explains Sarah Emerson, President of Boston-based consulting firm ESAI Energy. She adds that owing to the disjointed handling of the war on the part of Washington, the world should brace for a conflict that could run for months.

Crude prices hitting $150 is anguish the global economy cannot endure

In normal times, the Strait of Hormuz is just another waterway connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea. Stretching some 168 kilometres in length and 34 kilometres in width, the sea passage separates the Arabian Peninsula and Iran. In times of war, the dynamics of Hormuz assume totally different configurations, with its critical importance explicitly amplified. The waterway is one of the busiest shipping chokepoints in the world, facilitating the transportation of around 20 percent of global oil consumption.

According to IEA data, some 20 million barrels per day of crude oil and oil products were shipped through the strait in 2025. During the year, nearly 15 million barrels per day of crude oil, some 34 percent of global crude oil trade, passed through the passageway destined for markets in Asia, mainly China and India. The two countries consume 44 percent of crude passing through Hormuz. For Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Qatar, Iraq, Bahrain and Iran, the strait is the primary export route for crude oil. UAE and Qatar also near-entirely rely on the waterway for liquefied natural gas (LNG) exports, which represents 19 percent of global LNG trade.

Global shockwaves
Owing to the sheer volume of oil and gas that is exported via the strait, and the limited options to bypass it, its closure has instigated the largest supply shock in history. Put in context, the shock is 18 times larger than what was witnessed during the initial weeks of the Russian–Ukraine conflict in 2022. At some point, during the first weeks of the Middle East conflict, oil flows through the Strait of Hormuz plunged by as much as 97 percent with about 2,000 tankers affected.

The disruption of crude flows has come with catastrophic consequences for the global oil markets, with the ripple effects being devastation to the global economy. Before the onset of the conflict, crude oil prices averaged $65 per barrel but spiked to around $115 in April. So far, there are no signs of prices stabilising, with the current gloomy environment further clouded by UAE’s decision to quit OPEC in order to focus on ‘national interests’ and forge its own path in terms of crude production. UAE, which has been OPEC’s member for six decades, accounts for about 15 percent of the Vienna-based oil cartel’s production capacity.

Compounding the situation is the continued US blockade of Iranian ports, a standoff that could last for months unless Washington reaches a deal with Tehran in ongoing peace talks. By the end of April, crude oil prices had crossed the $120 per barrel mark, a rate last recorded in 2022. “If shipping through Hormuz is not allowed for another four to six months, we can expect oil prices to rise over $150 a barrel,” reckons Adi Imsirovic, a guest lecturer at UK’s University of Oxford.

Crude prices hitting $150 is anguish the global economy cannot endure. Already, the International Monetary Fund (IMF) and the World Bank are warning the conflict has halted momentum that would have seen global growth expand by 3.4 percent this year. With the conflict reaching 60 days in late April and crude prices rising, the IMF forecast is gravitating towards an adverse scenario in which growth is expected to decline to 2.5 percent this year with inflation rising to 5.4 percent. In a severe scenario where energy supply dislocations extend into next year, growth would plummet to two percent this year and next year, while inflation would exceed six percent.

Indermit Gill, World Bank Chief Economist, reckons that the war is hitting the global economy in cumulative waves: first through higher energy prices, then higher food prices, and finally, higher inflation. Extreme waves, including interest rate spikes and debt becoming even more expensive, are also bound to strike as the conflict prolongs. “The poorest people, who spend the highest share of their income on food and fuels, will be hit the hardest, as will developing economies already struggling under heavy debt burdens. All of this is a reminder of a stark truth: war is development in reverse,” said Gill.

SPRs to the rescue
The unprecedented disruption of crude supplies due to the Middle East conflict has seen countries across the globe resort to desperate coping mechanisms, some geared at forestalling civil strife and unrest not only because of high prices but also due to biting shortages. The mechanisms have ranged from tax cuts, declaring states of national emergency, encouraging people to work from home, limiting travel by government officials, and closing schools and universities to avoid unnecessary lighting. In terms of taxes, about 40 countries had effected some form of tax cuts be it slashing of value added tax (VAT), excise duties and even abolishing levies on petroleum and petroleum products by the end of April. “Most economies have used tax abatements to control price volatilities,” notes Medlock, adding that the cuts are classical cases of desperate times calling for desperate measures.

The stopgap measures have come in handy and eased the pains, particularly for the least developed and frontier economies. Kenya is an example. Due to the global shocks, the East Africa nation saw domestic prices for super petrol hit an all-time high of KSh206.97 ($1.59) in April, up from KSh178.28 ($1.37) in March. With the opposition calling for demonstrations, the government slashed VAT from 16 percent to eight percent, effectively bringing down prices to KSh197.60 ($1.52). The action, however, was costly for the government, which is set to lose KSh12.9bn ($100m) in revenues in three months.

For large and emerging economies, however, the more proactive action has been releasing emergency strategic stocks into the market. Historically, the release of SPRs has been rare. Often, it happens during extreme circumstances like war, pandemic outbreaks, adverse weather and natural disasters, and severe economic crises among others. The emergency stocks are controlled by governments with some inventories accumulated by private entities through government-mandated agreements and oversights.

Data by the US Energy Information Administration (EIA), the statistical agency of the Department of Energy (DOE), shows that by the end of last year, the world boasted some 2.5 billion barrels of emergency oil inventory. China, the US and Japan held the three largest inventories. Though Beijing has often remained secretive about its inventory by opting not to officially publish data, estimates indicate the country’s stockpile was in the region of 1.4 billion barrels. EIA used imports, exports, refining and oil inventory data from third-party and official sources to estimate China’s stocks. The US, on its part, held 413 million barrels, with Japan’s inventories estimated at 263 million barrels.

The data shows that, cumulatively, Europe boasted some 179 million barrels, while Saudi Arabia with 82 million barrels, South Korea with 97 million barrels, Iran with 71 million barrels, UAE with 34 million barrels and India with 21 million barrels were the other countries that have managed to amass massive stocks.

Releasing emergency stockpiles
The IEA, a club of 32 that requires members to maintain specific oil stocks and that coordinates release of emergency stocks, gives a clear pointer of the global stockpiles. Cumulatively, its members hold over 1.2 billion barrels. A further 600 million barrels of industry stocks are held under government obligation. Since its establishment in 1974, IEA has coordinated the release of emergency stocks by its members six times. A case in point was in 2011 when members collectively released 60 million barrels in response to shortages instigated by the Libyan war. In 2022, members undertook two releases amounting to 180 million barrels in efforts to contain supply disruptions and high prices caused by Russia’s invasion of Ukraine.

All the previous six interventions, however, cannot equate to the release of emergency stocks that has been necessitated by the ongoing Middle East conflict. A fortnight after the war erupted, and with the world engulfed in the worst crude supply disruption in decades, it was clear the only option to buffer the global economy from a thorough beating was the strategic reserves. In effect, IEA members unanimously agreed to make 400 million barrels available to the market, the largest ever oil stock release in history and one that IEA termed as decisive and unprecedented.

“Oil markets are global so the response to major disruptions needs to be global too,” noted Fatih Birol, IEA Executive Director following the action on March 11. Birol has gone on to add that depending on how the situation continues to unfold, the agency stands ready to act with more releases. The hope, however, is that the world will not require another intervention. “I very much hope we don’t need to do it, but if it is – if it is needed, we are ready to act immediately,” said Birol during an Atlantic Council forum.

The US has been among the major responders to the IEA clarion call, agreeing to contribute 172 million barrels of the total from its SPR. By end of April, the country had managed to release about 80 million barrels, with Europe being the key destination market. Notably, the oil is being sold on an exchange basis with oil majors and traders buying the stocks expected to return the supplies at a later date. In one of the contracts awarded at the initial phases in March, DOE made some 45 million barrels available to the market and expected to receive 55 million barrels in return. Apart from the US, Japan and the UK have also been proactive in releasing stocks, contributing 36 million barrels and 13 million barrels respectively.

“Making the strategic stocks available to the market has been the right move,” avers Emerson. She adds that unlike other previous crises that the globe has faced, the Middle East conflict has some distinct characteristics. Key of which is that for the first time, and due to the closure of the Strait of Hormuz, Saudi Arabia has been crippled in its erstwhile role of always increasing production in order to offset global shortages. “In most of the other past crises, we often saw Saudi crude oil production increase. It has not been the case in the current crisis.”

Relief, yes…cure, no
The history of SPRs dates back to the 1940s when the concept was first proposed. Following the end of the Second World War, a number of countries considered establishing strategic stocks owing to the critical role of oil in national security and military success. However, investments in tangible infrastructures to amass stocks started in the 1970s with the US being a case study. The harrowing experiences of 1973 prompted the country to invest in complex underground storage caverns that were created in salt domes along the Texas and Louisiana Gulf Coasts. The salt caverns, chosen on the basis of being inexpensive, secure and close to most refineries and distribution points, can hold up to 727 million barrels. Ahead of the March coordinated release, the SPR stocks had increased to more than 415 million barrels. The SPR has only managed to reach full authorised capacity once. In December 2009, the recorded inventory hit 726.6 million barrels.

Countries must put their minds and souls into accumulating emergency stocks

Going by President Ford’s declaration, the original objective and motivation was ‘energy independence.’ Today, however, and as evidenced by the Middle East conflict, the role of the emergency stocks has evolved. Governments across the globe are using SPRs to stabilise supply, avoid fuel shortage, rein in price hikes and even contain inflation. More brutally, countries are deploying inventories as ammunition for geopolitical influence and protecting themselves from external aggression. China is the archetypical example. The Asian giant is the world’s largest crude oil importer, with imports averaging 11.6 million barrels per day in 2025. During the year, Russia, Saudi Arabia, Malaysia, Iraq and Brazil were the country’s top suppliers, accounting for 62 percent of total imports. For Beijing, accumulating strategic stocks is, literally, a matter of life and death. Apart from the economy being deeply dependent on oil, its military machinery requires uninterrupted fuel supply in the event of war. Observers contend that a possible conflict with the US over Taiwan is among reasons China has been amassing inventories.

“While the release of reserves has helped avert dire impacts, they are not a panacea for long-term supply and price stability,” observes Medlock. There is no doubt the emergency stocks have offered relief to the world. Data show world crude oil consumption stands at 100 million barrels a day. For this reason, the release of 400 million barrels might pass as a drop in the ocean. Besides, going by the surging prices, it would be easy to conclude the impacts of the SPRs has been minimal. The reality, according to experts, is that price spikes could have been more severe without the emergency stocks. Evidently, crude prices declined by $18 soon after the IEA announcement of March 11. Another reprieve has been arresting the drastic surge in inflationary pressures, particularly among countries that are net importers of oil. India, which imports about 90 percent of its oil, is among countries that continue to project resilience. Despite the key inflation rate increasing from 2.75 percent in January to 3.4 percent in March, it has remained below the central bank’s four percent target.

Price spikes could have been more severe without the emergency stocks

Also critical is the fact that SPRs have helped prevent product shortages for many countries, more specifically across developing nations that lack the resources to build strategic reserves. Granted, amassing stockpiles is an expensive affair that often spans years. On this, the US lays bare the excruciating pain that comes with building stocks. To date, the country has invested a staggering $25.7bn in its SPR. Of this, $5bn has been spent on building facilities while $20.7bn has gone towards purchasing the crude oil. It goes without saying that as a major producer of oil, the US purchases the crude from its own companies. For net importers of crude, the pain is undoubtedly worse. The pain also comes in replenishing the stocks, more so when crude prices are high. For the world, there is no denying that emergency oil inventories have played a central role in neutralising the impacts of the Middle East conflict.

For this reason, and as global uncertainties become the norm rather than the exception, the race to accumulate stocks has the potential to become ever more urgent.

Inside India’s infrastructure revolution

Posted on July 24, 2026July 24, 2026 by itsupport

When a container is hoisted ashore at Jawaharlal Nehru Port in India, it is placed aboard a high-capacity freight train running from Mumbai to the industrial cities of Dadri and Khurja in Uttar Pradesh 1,500 kilometres away. The container is lifted off a day later, much faster than in many other countries, including America.

Even more impressive, the entire high-speed route is now electrified, with the final sections hooked up in January 2026 in a pivotal moment for India. Before electrification, the container would have taken three to four days. Not only did this last connection complete the country’s longest rail freight link, known as the Western Dedicated Freight Corridor, it gave India one of the longest electrified rail systems in the world. India has electrified 100 percent of its network, which is right up there with Switzerland, one of the jewels of railroads.

By comparison, the UK can claim 37 percent rail electrification and America just one percent. The rapidity of electrification is astonishing – during the last six years Indian Railways was adding over 15 kilometres every single day. The result is that today India boasts no less than 70,000 kilometres of electrified broad-gauge rail that is part of a grand plan to modernise all its vital systems – transport, energy and shipping – under the government of Prime Minister Narendra Modi. This remarkable achievement symbolises a continuing economic rejuvenation that has largely escaped the world’s attention.

Modinomics
Since Modi won power in 2014 after decades of socialist governments, these policies were dubbed ‘Modinomics,’ mostly by critics who said they weren’t working – or at least not as well as was promised. Supporters however said reform was long overdue in a country notoriously difficult to govern.

Demonetisation gave a massive boost to cashless payments

With 28 sprawling states and eight territories spread over a vast area, India is the seventh biggest country in the world in terms of geography and one of the most culturally diverse. And with a population of 1.47 billion, it is the most populous. “Significant hurdles persist, including entrenched bureaucracy, social fragmentation, and deep-seated political divisions,” notes an article in Springer Nature that summarises the challenges of reform.

One of those significant hurdles was the labour market. When Modi introduced radical changes to employment laws in 2014 that were designed to weaken obstructive union power and boost the creation of jobs, nearly 150 million workers in banking, manufacturing and construction immediately went on strike for 24 hours at a cost of $3.5bn to the economy. Even rickshaw drivers stayed at home in sympathy. Yet the reforms are seeing results. According to Australia’s Treasury, the economy forged ahead at an annual rate of between 6.5 and seven percent during Modi’s first 10 years in power – that is, to 2024 – and “maintained its position among the world’s fastest-growing major economies despite a significant contraction in 2020 due to the pandemic.” Most analysts including the International Monetary Fund predict a rosy longer-term outlook with a similar growth rate persisting all the way through to 2035.

However, in a nation of volatile politics, Modi continues to attract his fair share of criticism for making changes, however overdue they may have been. And one of the most overdue was what is known as ‘the demonetisation of the currency.’ With just a few hours’ notice, on November 8, 2016, the 500 and 1,000-rupee bank notes were replaced in a move to put a stop to the long-running practice of ‘black money’ – cash used for illicit activities that had escaped the tax net and was being used to fuel terrorism, among other purposes. The demonetisation was comprehensive, covering 86 percent of the currency.

But did it work? Some economists say it didn’t because the action caused serious economic disruption for a few months, but others point to the long-running damage caused by the existence of this parallel economy. As Bhaskar Chakravorti, Dean of Global Business at The Fletcher School at Tufts University wrote for the Brooking Institute a year later, only one percent of Indians had been declaring their earnings for tax purposes.

But suddenly, the money ended up back in the system: “When the policy change was announced, people were given until December 30, 2016, to return 500 and 1,000 rupee notes to banks, or else risk losing the value of them. Banks were estimated to have received 14.97 trillion rupees ($220bn) by the deadline, or 97 percent of the 15.4 trillion rupees’ worth of currency demonetised.

Also, as other economists explain, demonetisation gave a massive boost to cashless payments such as Paytm’s mobile wallet business and, more importantly for the long run, in the intervening years the tax base has widened. The government followed up by overhauling a confusing system of local consumption taxes with the introduction of a centralised goods and services tax.

Grandiose goals
The Modi government sometimes shoots itself in the foot by setting sky-high goals and making what the critics describe as ‘grandiose claims.’ For instance, a key reform is ‘Make in India,’ a strategy intended to turn the country into a manufacturing powerhouse by, among other measures, encouraging foreign investment and technology. Unveiled in 2014, the targets were unrealistically high – a doubling of manufacturing’s growth rate, the addition of 100 million jobs in the sector by 2022, and a 25 percent share for manufacturing in gross domestic product by the same year. As it happens, there has been a decline in the sector’s share of GDP and only a small growth in employment.

Battery swapping technology is a growing trend that could potentially turbo-charge EV sales

Part of the blame can be attached to India’s outdated manufacturing structure. Nearly three quarters of manufacturers employ less than five paid staff. And they are historically highly unproductive. It is widely accepted that these small enterprises put out less than 20 percent of the volume of products of larger Indian manufacturers and way less than similarly sized factories in western nations, especially the US.

Red tape is a big part of a historic productivity problem. With regards to India’s economic bottenecks the IMF states, “Many of these enterprises remain small for decades due to complex compliance requirements, rigid labour regulations and product market rules that discourage growth. Easing these constraints would help businesses expand and, in turn, dramatically lift productivity.”

However, there is no magic wand and Modinomics constantly runs into impasses. “While employment in the manufacturing sector has grown, the ‘Make in India’ push has not resulted in manufacturing outpacing other sectors of the economy in employment generation,” notes an article in The Print, an independent news platform. “Another priority area for the initiative was to boost exports and cut down on imports. The data over the last 10 years revealed the programme has failed to do the former but has been marginally successful in achieving the latter, although even this improvement has recently been reversing,” the article continued.

Yet under Modinomics manufacturing has been reconfigured away from heavy industry towards high-margin and higher-potential sectors such as electronics, defence and electric vehicles. Without ‘Make in India’ it is unlikely that the production of mobile phones, for instance, would have quadrupled in value between 2016 and 2024, or that India would become one of the world’s biggest manufacturers of solar panels. The Modi government also set an audacious target for an all-electric transport sector by 2030, a deadline that outdoes even China’s ambitions. When this was announced in 2015, it certainly looked like a grandiose goal.

At that time just one percent of the country’s 200 million vehicles were electrically powered and only one domestic automotive group could put a battery-powered car in the showroom. Called FAME (Faster Adoption and Manufacturing of Electric Vehicles in India), the programme was designed to start with rickshaws and move on to commercial vehicles, most of which are little two and three-wheelers, and then buses. Cars would come last.

To help along the transition, manufacturers were awarded tax breaks to build cars without batteries; these would be available in battery-exchange stations where the swap would take about two and a half minutes. The idea was that the subsidised battery-free vehicles would cost up to 70 percent cheaper than with batteries. A lot of automotive companies could see the potential, including Honda and Piaggio. In fact, the Italian scooter manufacturer quickly established a 100 percent-owned subsidiary in India. Both companies have adopted battery-swapping strategies. Shell could also see the potential of the strategy.

As Kasturi Gomatham, the energy giant’s global head of battery swapping, told a conference around that time, “Battery swapping decouples certain critical links that inherently create bottlenecks for EV adoption. For instance, the concept decouples grid from that of the dynamic EV-charging needs and decouples battery from the vehicle itself. This enables users to not feel the brunt of the battery upfront cost and extend vehicle life beyond that of the battery packs.”

And how did this work? According to an article by the World Economic Forum, “battery swapping technology is a growing trend that could potentially turbo-charge EV sales.”

One company, SUN Mobility, certainly thought so. The Bengaluru-based start-up began by exchanging shoe box-sized batteries at 50 stations spread over 14 cities under a pay-as-you-go subscription service run on Microsoft’s Cloud. Simultaneously with FAME, the Modi government ordered the nation’s refineries to embark on a $46bn conversion to lower-emission fuels, a decision upheld by the Supreme Court.

Modi’s biggest goal is a zero-emission nation by 2070

But let’s look at what has happened since. A recent review by the International Society of Markets and Development (ISMD) sees significant developments in the EV market that was mainly driven by highly systematic government policies to reduce urban emissions and promote sustainable mobility. But while noting how FAME has fallen short of expectations, it also says that “both stages of FAME have been pivotal in shaping the EV ecosystem in India, addressing the challenges of affordability, infrastructure and market growth.”

But where would India’s road transport be without FAME? So far it has increased EV adoption nationwide by about 50 percent, “but primarily in the two-wheel market,” notes ISMD. Buses and cars are lagging behind, but the latter are less important in the race to electric transport because only 7.5 percent of Indians own four-wheeled cars. As for SUN Mobility, the latest data showed over 1.4 million swaps a month at nearly 650 stations across over 20 cities. Battery-swapping has been a roaring success.

Energy revolution
The birth of the e-rickshaw is a portent of India’s energy future. At the start of 2026 there were about 270 million two-wheelers in India and about 10 million three-wheelers, the vehicle of choice for transport in teeming cities, for deliveries and taxis. “As India’s pivot from fossil fuels to clean energy accelerates, these vehicles are helping drive the switch,” explains one motoring expert.

Half of India’s imports of oil are burned by vehicles, but that is expected to fall as more e-rickshaws hit the road; this would enable Modi’s biggest goal – a zero-emission nation by 2070. The Colorado-based Rocky Mountain Institute calculates that as early as 2030 about 80 percent of two and three-wheelers sold in India could be electric and make a substantial contribution to the zero-emission goal that gets closer almost by the day. The volume of sales certainly looks promising, having jumped from just over 95,000 EVs in 2017 to 1.6 million in 2024.

The Atlas think tank summarises, “EV sales in India have seen a remarkable upward trajectory in recent years, largely driven by growth in the two- and three-wheeler segments,” citing a compound annual growth rate of 61 percent. In the salt deserts bordering Pakistan, the world’s biggest renewable energy project is under development.

The Khavda renewable energy park, covering an area five times the size of Paris, will produce 30 gigawatts of green energy from high-efficiency solar modules and hybrid solar-wind systems. Run by Indian group Adani Green Energy, it is due for completion as early as 2029, when it will power over 16 million homes.

Currently about half of India’s installed power capacity comes from non-fossil sources such as solar, wind and hydroelectric. Once again, the government is nothing if not ambitious, with a target of providing 500 gigawatts of non-fossil capacity and five million tonnes of green hydrogen that will be used to clean up the steel and other heavy industries. All this is due to happen by 2030 in what some saw as yet another grandiose scheme, but so was the electrification of the railways and it was done four years early. Although India still uses a lot of coal – “a critical source for grid stability,” according to energy experts, the direction of travel is clear. Forests are being planted to create a gigantic carbon sink of 2.5 to 3.0 billion tonnes of CO2 equivalent. Water is being managed more scientifically. Attention is being paid to the Himalayan ecosystem. The critics can’t complain that India has fallen short in its clean energy ambitions. Between 2005 and 2023, its emissions intensity was slashed by 39 percent, which is ahead of target. It is the world’s third-largest producer of solar energy and could overtake China in the number of solar-powered homes. And production of renewable energy is also beating official goals.

Maritime India
True to form, when the government launched a revival of India’s neglected maritime industry, it immediately ran into a disjointed federal system of governance with powerful political cliques running rival states that almost routinely refused to cooperate with each other – or just couldn’t be bothered. Yet this equally ambitious programme is happening. The country was once a maritime power based on natural credentials. It has an 11,000-kilometre coastline. The Indian Ocean, the third largest in the world, links the country to the Middle East, Africa, South Asia and Southeast Asia. India is near four maritime chokepoints – the currently beleaguered Strait of Hormuz, Bab-el-Mandeb, Malacca Strait and Lombok Strait. And there are the military implications – Modi is concerned about an aggressive China, which is busily establishing ports and infrastructure in the Indian Ocean.

“Militarisation of the Indian Ocean region is not desirable,” the government has warned.

Despite a sluggish bureaucracy, India’s got off to a good start in its maritime ambitions. In early 2026 the container shipping giant, CMA CGM, placed a landmark order for six LNG-fuelled vessels to be built at India’s Cochin Shipyard. They aren’t huge ships, with a capacity of just 1,700 containers each, but they will advance the expansion and renewal of the country’s ports, shipping industry and coastal trade.

In another boost CMA CGM will recruit 1,500 Indian seafarers, establish an R&D hub, register some of its vessels under the Indian flag, which helps build local trade, and support sustainable ship-recycling, a growth industry where India aims to be the world leader. Other container giants look like they will follow suit.

About half of India’s installed power capacity comes from non-fossil sources

Simultaneously, India is building deep-draught mega-ports like Vadhaven 150 kilometres from Mumbai that is due for completion in 2034. When it opens, Vadhaven will rank among the 10 biggest ports in the world and it is strategically placed in a key trading corridor that links India with the Middle East and Europe. Already trade deals are being signed along this valuable supply line. Construction is finally due to start in another mega-port in the Bay of Bengal after years of legal challenges, red tape and the local opposition that have historically blighted important economic projects in India and, in the case of shipping, prevented modernisation. Impatient with such delays, in 2025 the government passed laws that simplify paperwork and improve cross-port cooperation. The Ministry of Ports, Shipping and Waterways is in a hurry, acknowledging “the capacity of the ports in terms of their berths and cargo-handling equipment needs to be vastly improved to cater to the growing requirements of overseas trade.”

India may soon also have its very own state-backed container line. In early 2026, the government approved a $1.66bn kick-start for an all-Indian shipping company that may also exploit the country’s 14,500 kilometres of largely neglected inland waterways. According to a study by the Observer Research Foundation, a not-for-profit Indian think tank, “it is only now that they are beginning to be used for commerce.” Current ambitions intend that this vast interconnected natural network will soon carry four times its current capacity in what would be a massive boost to trade along its banks. In maritime matters India has a long way to go – its merchant fleet ranks just 18th in the world – but the government has earmarked $7.7bn that will be dedicated to this economically vital project over the next decade.

Mafia Raj
The government is tackling corruption, albeit slowly. Only a few short years ago India was infamous for dirty dealing. In the first decade of the millennium the World Bank cited the ‘Mafia Raj’ among other miscreants who got their hands on development funds intended for roads, bridges and other much-needed infrastructure. At the time India was the World Bank’s single biggest borrower and the institution was trying to place people of integrity along the funding pipeline to make sure the money ended up in the right hands, such as a billion-dollar, interest-free loan to clean up the Ganges River.

The situation was so serious that India’s then chief justice, K.G.Balakrishnan, bemoaned at an anti-corruption conference how “the quality of governance suffers when decisions are made on account of extraneous considerations related to political patronage, kinship or caste and linguistic identity among other factors.” Back then Transparency International ranked India at 84th on its Corruption Perception Index, right up (or down there) with Guatemala and Panama. India’s Central Bureau of Investigation (CBI) was burdened at that time by well over 9,000 pending cases, 2,000 of which had been pending for a decade or longer.

But endemic corruption is hard to root out and despite the best efforts of the Modi government, in 2026 India ranked 91st in the index, roughly halfway. However, it appears the CBI is making some progress. In late 2025 it reported just over 7,000 pending cases, of which 2,660 were 10 years old and 380 a full 20 years old. Petty corruption is down, for instance small bribes to various government agencies, while senior tax and customs officials have been kicked out for high-level fraud. Meanwhile, one of India’s most successful innovations is in sport, although the Modi government can’t take the credit here.

Every year the world’s best cricketers flock to the India Premier League, a sporting spectacle founded in 2008 by the Indian Board of Cricket Control. Judged by revenue, it is among the top 10 most valuable sports league in the world. It is based on an original franchise model in which the teams are owned by rich corporations and celebrities. As one fan, a rich businessman, explained, this 20-over format is “a high-action alternative to the five-day game” that is seen as a symbol of the country’s commercial as well as sporting creativity. “It is not just replicating something else; it is creating a new business model,” he summarised. Indians are extremely proud of the league because it is home-grown, just as they are of their rail system.

Just to recap, it was in 2014 that the Modi government began to pour funds into a fully electrified railway. The results were off the scale. While Britain, for example, as a rail enthusiast points out, is electrifying its railways at a speed of two kilometres a year and while the US isn’t even matching that, Indian Railways was quadrupling its electrification programme. In the 2022–23 financial year, for example, no less than 6,565 kilometres of track was hooked up.

“India’s rail crews got more done by their mid-morning tea-break on January first than Britain got done all year,” wrote the rail expert. And nor would that have happened without Modinomics.

The rise of Thailand’s USD fund leader

Posted on July 23, 2026 by itsupport

Investors are seeking solutions that combine quality, yield and high liquidity. UOBAM Thailand (UOBAMTH) therefore aims to achieve this by expanding the USD fund shelf across asset classes to preserve and grow assets under management (AUM). This should help the company to offer their clients a diversified portfolio of USD-denominated funds across various investment policies. This expansion is designed to serve the needs of both retail and institutional clients, providing them with a broader suite of investment solutions and greater flexibility in portfolio construction.

A key driver of the UOBAMTH’s success has been emphasis on USD-denominated products, giving Thai investors access to global markets while enhancing currency diversification. In response to the increasing appetite for international exposure, the firm has continued to prioritise innovation and global connectivity as core pillars of its product strategy.

USD fund leadership
Starting in March 2025, UOBAMTH introduced its USD funds to the market with an initial AUM of $23.77m, rapidly rising to become the market leader by July 2025 with AUM reaching $251m. The firm continued to demonstrate enduring leadership throughout the year, expanding AUM to $418m by December 2025 and capturing a dominant 53 percent market share. This reflects UOBAMTH’s disciplined execution, client-centric design and timely expansion of USD solutions that effectively met rising investor demand for global exposure.

UOBAMTH’s USD position has remained firmly intact into 2026, maintaining its number one position since the beginning of the year. As of April 2026, the firm reinforced its dominance, as USD AUM reached $436m and market share expanded to approximately 72 percent, underscoring the firm’s continued dominance in the USD fund market.

Strong growth momentum
UOBAMTH has demonstrated strong growth momentum and market leadership through innovative product development and precise strategic execution. The company has identified a significant opportunity from the sizable pool of USD held in clients’ Foreign Currency Deposit (FCD) accounts and has responded by developing tailored investment products to better meet client needs. In addition, as investors increasingly seek returns above FCD rates, the strategic expansion of its USD-denominated product suite, which proactively addresses the growing demand for global investment opportunities among Thai investors, continues to strengthen its market leadership.

Expanding the USD fund shelf
UOBAMTH has built a comprehensive suite of USD-denominated funds across all asset classes. The firm pioneered USD Term Funds with short tenors of three and six months, offering a simple and easy-to-understand solution for investors seeking attractive USD returns. This approach enables clients to build familiarity and confidence before progressing to more sophisticated investment options.

The firm continued to demonstrate enduring leadership throughout the year

Following the successful launch of its USD Term Funds, UOBAMTH further strengthened its product suite with the United USD Daily Fund (USDAILY), a short-term fixed income fund. As Thailand’s first USD-denominated daily fixed income fund, USDAILY offers a flexible and highly liquid USD investment solution with daily subscriptions and redemptions, while enhancing portfolio diversification.

Building on this momentum, UOBAMTH broadened its USD offering into a global fixed income fund with the launch of the United USD Global Income Strategic Bond Fund (UGIS-USD) and the United USD Ready Fund (USDREADY), offering investors broader diversification across income strategies. UGIS-USD invests in global fixed income instruments to generate returns in US dollars. Meanwhile, USDREADY invests in short-duration USD-denominated assets or instruments, aiming to generate returns in line with money market performance.

To better address the diverse needs of investors, UOBAMTH has extended its capabilities into global equities funds with the launch of the United USD Global Dividend Plus Fund (UGDIVP-USD) and the United USD Global Founders and Owners Fund (UGFO-USD). UGDIVP-USD focuses on investing in equities of companies worldwide, including emerging markets, providing broad exposure to global growth opportunities, while employing a covered call strategy to generate additional income for the fund. Meanwhile, UGFO-USD focuses on investing in companies led by founder-management teams with significant ownership stakes.

In the technology segment, UOBAMTH has entered global technology with the launch of the United USD Global Technology Fund (UGTECH-USD) and United USD US Technology Equity Fund (UUSTECH-USD). UGTECH-USD focuses on investing in a diversified portfolio of global technology equities. UUSTECH focuses on investing in equities of US-based technology companies, providing investors with access to investment opportunities in the technology theme.

UOBAMTH says that on the back of the strong success of its USD fund launches and growing investor confidence, it has firmly established itself as the number one USD fund provider in Thailand. This achievement underscores the strength of its product innovation and strategic execution. With strong momentum going forward, UOBAMTH remains highly committed to continuously identifying new investment opportunities and accelerating the launch of innovative solutions, reinforcing its leadership position while meeting the evolving and increasingly sophisticated needs of investors.

Sustainable skies: shaping a more efficient aviation future

Posted on July 22, 2026 by itsupport

Saudi Arabia is undertaking one of the most ambitious aviation expansions in the world. As the Kingdom advances Vision 2030 and prepares to host events that will attract millions of additional visitors, the airspace above it is becoming more strategically important. Saudi Air Navigation Services (SANS), a leading air navigation service provider in the MENA region, sits at the centre of that growth, and the standard to which we hold ourselves extends well beyond keeping flights moving safely. Our remit is to help the wider aviation ecosystem become cleaner, more efficient and more resilient.

For an air navigation services provider, sustainability extends far beyond environmental disclosure. It runs through every part of how the company is led, how decisions are made, how resources are deployed and how value is created over time. Across each of these dimensions, our objective is consistent: to deliver long-term value, responsibly.

Governance built on transparency
Sustainability at SANS is embedded within corporate strategy. In 2024, sustainability was formally adopted as the company’s sixth strategic pillar, reinforcing its standing as a board-level priority. Our sustainability governance model is structured across three tiers – the Sustainability Steering Committee for strategic direction, the ESG Committee for cross-functional execution, and the Sustainability Community for organisation-wide engagement.

Our governance approach is reinforced by internationally recognised frameworks. Our Enterprise Risk Management framework is aligned with ISO 31000 and the COSO Internal Control. Financial reporting is prepared in accordance with IFRS. This year, we extended the same discipline to our sustainability disclosure with the publication of our first ESG report developed with reference to the Global Reporting Initiative (GRI) Standards, giving investors, regulators and partners internationally comparable visibility of our ESG performance.

Capital allocation that funds the future
Long-term financial planning and disciplined capital allocation are key enablers of strategic and sustainable growth. At SANS, financial planning provides the structure to assess priorities, manage risks, and direct resources toward areas that strengthen long-term resilience and sector readiness. Through a multi-year financial view, investment decisions are aligned with operational priorities, national development objectives and ESG considerations. This approach has already led directly to action, most clearly in the creation of two SANS subsidiaries: NERA, which channels SANS’s air navigation expertise into innovative technology and services for aviation clients across MENA and beyond, and the Saudi Academy of Civil Aviation (SACA), which builds the specialised national talent that the sector will need to grow.

Sustainability was formally adopted as the company’s sixth strategic pillar

Capital allocation decisions are assessed against a broader set of criteria than financial return alone. We evaluate each investment for its contribution to safety, operational efficiency and environmental performance. Our Comprehensive Cash Investment initiative will introduce a structured policy framework for treasury and investment decisions, protecting risk-adjusted returns while preserving the liquidity required to fund strategic priorities and ensure operational continuity over time. Early results show strong progress, with investment returns performing significantly above target. This has strengthened SANS’s ability to fund long-term sustainability initiatives internally, while avoiding the need for external debt.

Operations engineered for efficiency
Sustainable finance is also a matter of operational excellence. Over the past year, we have strengthened our operational performance through continued improvements in the invoicing cycle, timely supplier payment practices and supplier satisfaction. These efforts were supported by disciplined collection management, healthy cash flow performance and close monitoring of overdue balances. Together, they have improved working capital management, strengthened financial reliability, and reinforced the operational discipline needed to support long-term sustainable growth.

Behind these results sits a strengthened credit risk management framework, supported by enhanced service level agreements with key counterparties, digital automation across billing and customer engagement, and continuous improvement in receivables management. Together these initiatives strengthen cash flow and reduce credit risk. The same discipline is visible in our compliance, control and quality outcomes. Most notably, SANS was honoured with the Silver King Abdulaziz Quality Award, independent confirmation of the financial discipline and operational quality that credible sustainability disclosure ultimately rests on. The result is a finance function that stays ahead of regulation rather than reacting to it.

Digital transformation
Reliable sustainability outcomes depend on reliable data. This principle guides our digital agenda within finance, where we have developed a connected technology environment to strengthen accuracy, control, and decision-making. At the foundation, our core ERP and broader data management framework provide a trusted source of financial information across the organisation.
Building on this foundation, our Enterprise Performance Management (EPM) platform for planning and budgeting went live this year, replacing fragmented spreadsheets with a more controlled and consistent planning environment. In parallel, our customer relationship management platform applies the same digital discipline to billing and customer engagement.

In addition, Power BI dashboards covering financial performance, divisional KPIs, and revenue insights give management timely and consistent visibility across the business, supporting faster and more informed decision-making. We are also supporting the implementation of the Financial Governance App, which provides structured oversight of financial governance practices across the company. Together, these advancements do more than improve efficiency. By reducing manual effort, eliminating duplicated reporting and improving data accuracy across the board, they lower the operational footprint of our finance activities while equipping us to track sustainability KPIs with accuracy, trace ESG data back to its source and disclose it with confidence.

Procurement that delivers value
At SANS, local content is central to our procurement approach. Through our procurement decisions, we aim to support local manufacturers, develop national capabilities, increase participation from Saudi manufacturers, and retain more economic value within the Kingdom. SANS has made strong progress in this area through its Local Content Programme, which has supported supplier engagement, internal awareness, enhanced visibility across mandatory list categories and the development of a qualified list of local manufacturers for mandatory categories. Beyond local content, supplier satisfaction is treated as a key outcome. We operate a supplier classification framework integrated into our ERP, supported by a formal supplier feedback survey that captures supplier needs, improvement opportunities and challenges.

These foundations have translated into strong procurement performance. In 2025, our Supply Chain team was awarded the globally recognised CIPS Procurement Excellence Award. Structured negotiations delivered savings comfortably ahead of target, while the registered supplier base expanded competition, strengthening supply chain resilience and creating wider opportunities for Saudi SMEs.

Where strategy meets the sky
For an air navigation services provider, one of the most important sustainability levers is airspace design itself. In 2025, SANS managed more than one million air traffic movements safely across an area exceeding two million square kilometres. Growth and reliability progressed together, supported by continued capital investment in airspace modernisation, technology and infrastructure. Finance plays an important role in this process by evaluating major CAPEX decisions, supporting prioritisation, and helping to ensure that investment is directed toward initiatives that create long-term operational and environmental value.

The wider impact is reflected in how the airspace is being reshaped to reduce emissions. Through the Saudi Future Airspace Concept, Free Route Airspace, Performance-Based Navigation, continuous climb and descent operations, and reduced separation at major airports, SANS is helping reduce fuel burn, flight inefficiencies, and holding times. These operational improvements directly support the Civil Aviation Environmental Sustainability Program (CAESP) – the Kingdom’s national environmental roadmap for aviation, cascading directly from Vision 2030, for which SANS serves as a primary execution arm across the programme’s seven environmental pillars. Under this framework, the national commitment is to reduce flight emissions by 30 percent by 2032, supported by SANS’s target to achieve ISO 14001 certification in 2026.

Growth, safety, regulation and ESG are supporting one another. Strong governance protects safety. Efficient operations help reduce emissions. Disciplined financial management funds the technology and infrastructure that enable both.

Amazon science meets rare disease innovation

Posted on July 21, 2026 by itsupport

Massimo Radaelli, PhD, is a European pharmaceutical industry leader and entrepreneur who has devoted more than 35 years to the innovation of therapies to treat rare diseases. He is the CEO of Napo Therapeutics, a pharmaceutical company established in Milan, Italy, in 2021 by California-based Jaguar Health to develop and commercialise the plant-based drug crofelemer in Europe, with a particular focus on rare gastroenterological diseases. Radaelli explained to World Finance why a drug sustainably derived from an Amazon rainforest tree may provide a novel therapeutic option for patients with intestinal failure due to microvillus inclusion disease (MVID) and short bowel syndrome (SBS-IF).

Congratulations on your recent awards. What pleases you most about the recognition?
I am extremely honoured to have been recognised by World Finance’s sister brand, European CEO, as the winner of the ‘Global CEO Excellence Award 2025–26.’ I believe this new award recognises once more, at an international level, my lifelong commitment to the research and development of orphan medicines for the treatment of patients with rare diseases. I am grateful for the recognition and to have been able to spend decades focused on helping patients suffering from rare diseases around the world.

What makes intestinal failure such a devastating condition?
Intestinal failure often requires patients to receive life-sustaining fluids, electrolytes and nutrients through intravenous administration, which consists of total parenteral nutrition (TPN) with supplemental intravenous fluids, which together constitute parenteral support. Many intestinal failure patients require parenteral support up to seven days a week, and sometimes for 20 or more hours per day.

While crucial for intestinal failure patients, many of whom are infants or young children, parenteral support is associated with significant toxicities, similar to some toxicities associated with chemotherapy, often causing serious health problems including infections, metabolic complications, and liver and kidney function problems.

Intestinal failure in MVID and SBS-IF patients remains a serious unmet medical need. No therapies have been approved for MVID, and there are limited options, such as teduglutide and GLP-2 analogs, for a subset of SBS-IF patients. In conjunction with Jaguar Health and our sister company Napo Pharmaceuticals, we are developing crofelemer powder for oral solution – a paradigm-shifting first-in-class drug with clinical proof-of-concept data in these orphan intestinal failure indications. Given the lethal natural history of parenteral support treatment, crofelemer can potentially extend the lives of MVID and SBS-IF patients by reducing their required volume of parenteral support.

What updates can you provide about clinical and business development efforts for crofelemer for these rare diseases?
An independent proof-of-concept study of crofelemer in pediatric intestinal failure patients is ongoing in the UAE, with participating patients having now received crofelemer treatment for more than a year. The initial results from the study, presented in November 2025 at the North American Society for Pediatric Gastroenterology, Hepatology and Nutrition Annual Meeting, demonstrate disease progression modification with crofelemer through reduction of parenteral support that ranged from 12 to 37 percent.

With continued demonstration of clinical benefit in Jaguar Health’s ongoing placebo-controlled pivotal trial of crofelemer in pediatric MVID patients, which is expected to complete in the second quarter of 2026, and because MVID is an ultra-rare disease for which no approved treatments currently exist, we hope to achieve Breakthrough Therapy designation from the FDA for crofelemer to accelerate the US regulatory path to market and qualify crofelemer for the European Medicines Agency’s PRIME (priority medicines) programme for MVID to accelerate approval in the EU.

We are seeking a global or regional partner for development and/or commercialisation of crofelemer for MVID and SBS-IF, and will consider potential licensing, co-promotion, or strategic product acquisition opportunities. The near-term value driver is MVID, given the possibility of accelerated regulatory paths to market.

With an estimated worldwide prevalence of about 200 MVID patients, a trial of crofelemer in just a small number of patients is expected to be statistically meaningful and support registration. SBS-IF, the subject of our ongoing Phase two trial of crofelemer, represents the larger follow-on franchise opportunity, with an estimated population of about 12,000 patients in the US alone.

What are the advantages of the botanical drug development pathway?
Crofelemer is sustainably derived from the red bark sap of the Croton lechleri tree – a rapidly growing tree species common in the tropical forests of Colombia, Ecuador, Peru and Bolivia. The sap has a long history of medicinal use by indigenous peoples. Crofelemer is the active ingredient in Mytesi, Jaguar Health’s FDA-approved prescription drug tablet for the symptomatic relief of noninfectious diarrhea in adults with HIV/AIDS on antiretroviral therapy.

Mytesi is the only oral product approved under FDA Botanical Guidance. The botanical drug development framework functions as a de facto IP shield: it does not protect a molecule, but rather the entire integrated manufacturing and quality system that delivers the approved botanical drug product to patients, meaning there’s really no practical pathway to bring a generic version of the drug to market.

Additionally, because data related to prior human exposure provides a pre-existing safety profile, Investigational New Drug applications for botanical drugs have an inherently lower probability of the late-stage safety failures that often terminate conventional New Chemical Entity programmes, effectively de-risking clinical development.

Bulgaria’s euro era begins

Posted on July 20, 2026 by itsupport

This year marked a turning point in the contemporary economic history of our country. As of January 1, 2026, Bulgaria is now part of the euro area. This proved not to be merely a change of currency, but a symbol of trust and recognition of the maturity of the Bulgarian financial system. This success is the result of long-standing, purposeful efforts – of fiscal discipline, institutional consistency and strategic vision. Bulgaria did not simply join the euro area – it entered it well prepared.

For Bulgaria, eurozone membership was not an end goal, but an opportunity to firmly position itself within the European economy. At the macro level, the most important benefit is the increase in financial and economic stability. Joining the eurozone provides access to the mechanisms of the European Central Bank and deeper integration into the EU’s financial architecture, which reduces country risk and strengthens investor confidence.

It provides a strong foundation – through increased trust, clearer regulation and deeper integration with European markets. The data already confirms this trend. The volume of direct investment equals 0.7 percent of the projected GDP, compared with 0.4 percent of GDP for the same period last year.

Improved financing conditions
For businesses, a key effect is the elimination of currency risk. Conversion costs also disappear, which directly improves efficiency – especially for companies engaged in exports or working with EU partners, and more than 64 percent of Bulgaria’s exports are directed to EU markets. Another significant advantage is the improved financing conditions for businesses. Within the eurozone, interest rates on loans are typically lower or more stable, and access to capital is easier.

Bulgaria did not simply join the euro area – it entered it well prepared

The banking sector played a key role in this process. More than €200m was invested solely in the preparation for the introduction of the euro – in technological systems, logistics, training and organisational capacity. This was a large-scale transformation that required not only resources, but also coordination, expertise and leadership.

In partnership with the Bulgarian National Bank, the Ministry of Finance, and other institutions, the banking sector actively participated in the national information campaign, because a successful transition is not only a technical process – it requires trust. The results of this preparation were visible within the very first hours of 2026. The adjustment of card systems was completed in just three hours, and payments by card and ATM withdrawals in euro were possible from the very first seconds of the new year.

The Association of Banks in Bulgaria, together with the BNB, organised 28 training sessions with the participation of representatives of banks, Bulgarian Posts, municipalities and retail chains. They, in turn, trained their colleagues, ensuring that the physical exchange process proceeded smoothly in every part of the country. Additional regional training sessions were also conducted for employees of Bulgarian Posts.

During the first business days alone, nearly 240,000 customers were served in bank branches. Within a short period, virtually every household in the country passed through the banking system to carry out currency exchange. By the end of March, over 91 percent of levs in circulation – or more than BGN27bn (€13.8bn) – had been successfully withdrawn. This was one of the largest logistical operations in our modern economic history – implemented without disruption, without cash shortages and with a high level of service.

New opportunities unlocked
Today, the Bulgarian banking sector is stable, well capitalised and highly liquid. It is not merely a participant, but an active driver of economic development. Membership in the euro area provides us with new opportunities – access to deeper financial markets, lower costs for businesses, higher investment attractiveness and greater economic predictability. More importantly, it places us at the core of European economic architecture. This means participation in decision-making processes that shape Europe’s future.

It is also important to highlight the key benefits of adopting the euro as Bulgaria’s national currency, which are already working to the advantage of both citizens and businesses.

> Cheaper and faster payments within the EU: euro transfers to other euro area countries are now treated as domestic by the system, meaning low fees, often completely free transactions and faster processing.

> Instant payments (SEPA Instant): transfers within seconds, 24/7, including between companies and to customers. This creates new opportunities both in business relationships and in interactions with end customers across the euro area, increasing trust between new partners who have not previously worked together.

> Elimination of currency risk: businesses and citizens are no longer affected by lev/euro fluctuations, facilitating business planning and trade.

> Easier trade and investment: companies operate directly in euro with EU partners, without conversion costs and with greater price transparency.

> Improved access to financing: lower interest rates and greater investor interest due to reduced risk and euro area integration.

> Conditions for longer fixed-rate periods on mortgage and consumer loans: through improved bank access to capital markets, liquidity instruments such as interest rate swaps, and European practices in interest rate risk management. This provides greater predictability for households and businesses.

Greater access and resilience
Participation in the euro area makes our country more resilient to geopolitical and economic risks witnessed in recent years – rising military conflicts worldwide and energy insecurity. Membership also means more direct participation in European monetary and financial stability mechanisms. Bulgarian banks now have direct access to Eurosystem instruments, and our country becomes part of a broader framework for response to external economic and geopolitical shocks. Bulgaria’s accession to the euro area creates the conditions for a more direct and gradually stronger transmission of the Euro system’s monetary policy to domestic financial and economic conditions, supported by the direct application of its instruments in the country.

At the same time, the Bulgarian National Bank retains its ability to use a set of macro-prudential tools, whose primary objective remains maintaining the stability of the banking system in Bulgaria. In cases of geopolitical disruption, euro area countries also have access to the European Stability Mechanism (ESM), which effectively serves as a form of insurance for the country in the event of external shocks or regional geopolitical destabilisation. With Bulgaria’s accession to the euro area, commercial banks in the country have gained direct access to the Eurosystem’s monetary policy instruments.

A new phase lies ahead – one of deeper integration, accelerated digitalisation, sustainable finance and support for the competitiveness of the Bulgarian economy. The role of the banking sector in this process will remain key. I am confident that with the experience accumulated, proven resilience, and a clear vision for the future, we will continue to build on what has been achieved. Because historical successes are measured not only by their attainment, but by what we do afterwards.

Trading platforms are now full financial ecosystems

Posted on July 17, 2026 by itsupport

The investment industry is undergoing a profound generational shift. Mobile-first platforms, real-time market access and an explosion of financial content online have transformed investing from an activity once dominated by institutions and wealthy individuals into something far more accessible and immediate. Younger investors are entering markets earlier, trading across multiple asset classes and expecting seamless digital experiences alongside transparency and education. For trading platforms, this evolution is changing the rules of competition. Technology, regulation and trust have become just as important as access to markets, while artificial intelligence and personalised insights are beginning to redefine the client experience. In this interview, Ziad Melhem, CEO of CFI Financial Group, explains how investor behaviour is changing globally, why local market participation is rising in the UAE, and what the next generation of trading platforms will look like.

Has technology created a new generation of investors?
Absolutely. Technology has fundamentally democratised access to financial markets. What was once reserved for institutional players or high-net-worth individuals is now available to anyone with a smartphone and the motivation to learn. At CFI, we have witnessed this shift firsthand; our client base has grown significantly younger and more digitally native over the past several years. But I would go further than saying technology simply created new investors. It redefined what participation in markets looks like. People are entering the investment conversation earlier in life, with more information, more analytical tools, and more confidence than any previous generation.

The gatekeepers haven’t disappeared so much as changed shape; the new ones are the platforms themselves, and they earn their place through transparency, regulation and the quality of the experience they offer. What matters now is how well platforms serve this new audience once they arrive.

What is driving this shift in investor behaviour?
Several forces are converging simultaneously. The first is access: the barriers to entry have collapsed. You no longer need a broker on the phone, or a minimum deposit measured in thousands. The second is information: financial content is everywhere, from dedicated research platforms to social communities where investors share ideas in real time. The third is economic context: younger generations have grown up through financial crises, inflationary cycles and significant market volatility. They understand, instinctively, that leaving money idle is itself a form of financial risk. And the fourth is an evolving relationship with institutions. Clients today want to engage with platforms that are transparent, properly regulated, and built around their needs rather than around the platform’s commercial interests. That expectation is reshaping the entire industry.

How have trading platforms changed investing for younger generations?
The experience has been completely reimagined. A decade ago, trading platforms were built for professionals; they were complex, data-heavy environments that assumed the user already understood what they were doing. Today, the best platforms combine professional-grade tools with intuitive design, integrated education and responsive support.

For younger investors, the platform is not simply a transaction engine; it is their primary relationship with the financial world. They expect personalisation, mobile-first design, full clarity on fees and risk, and the ability to move between asset classes without friction. We have built our platform architecture around exactly those expectations. Meeting them is not a competitive advantage anymore; it is the minimum standard clients will accept.

Are investment priorities changing globally?
Significantly, yes. We are seeing a clear move away from passive, long-term strategies toward more active, informed participation. Younger investors want to understand what they own and why; they are building knowledge alongside their portfolio rather than delegating decisions entirely.

What matters now is how well platforms serve this new audience once they arrive

What is particularly interesting is how this generation thinks about diversification: not as a choice between local and international, but as a deliberate combination of both. They want exposure to global indices, US equities, commodities, and currencies, while simultaneously maintaining a strong conviction in their home markets. Nowhere is this more visible than in the UAE, where we are seeing a significant surge in appetite for local stocks. Investors here are deeply engaged with UAE-listed equities, and that enthusiasm is only growing. It is a trend we took seriously at CFI, and one of the reasons we made the deliberate decision to expand our product offering to include local market access; to ensure our clients can build truly balanced portfolios without needing to go elsewhere.

Which asset classes are attracting the most interest from younger investors?
Equities remain a strong entry point, particularly US technology stocks, which carry significant cultural recognition among younger audiences globally. But what we find most interesting at CFI is the appetite for multi-asset participation. Younger investors are not confining themselves to a single asset class; they move fluidly between forex, indices, commodities and ETFs, often responding dynamically to market events and macroeconomic developments.

Volatility, rather than being a deterrent, has become a driver of engagement for this generation. They understand that markets move, and they want platforms equipped with the tools to help them navigate that movement intelligently. The demand is not just for access to more assets; it is for the analytical infrastructure to trade them well.

How important is technology in shaping the investor experience today?
Technology is no longer a differentiator; it is the foundation everything else is built on. We have invested considerably in building a trading infrastructure that gives clients a genuine edge: superior execution quality, seamless access across web, mobile and desktop, advanced charting, integrated risk management tools and real-time market analytics. But technology serves a purpose that goes deeper than operational efficiency. It shapes confidence. When a client has the right tools, clear data, and a consistent experience across every touchpoint, they make better decisions. That is the real measure of good technology in this industry: not how fast the platform executes a trade, but how well it equips the person behind the trade to act with clarity and conviction.

Is trust becoming more important in the online trading industry?
Trust has always been the foundation of financial services. What has changed is how it is earned and demonstrated. In an industry that has at times been characterised by opaque pricing, unclear regulatory standing, and misleading marketing, clients are more discerning than ever before. They research brokers before they register. They verify regulatory credentials. They read peer reviews and compare platforms carefully. At CFI, we welcome that level of scrutiny. Our regulatory framework is built on a clear principle: wherever we operate, we obtain the appropriate license, both regional and international. In the UAE, we are regulated by the Capital Markets Authority. Beyond that, we hold tier-one international licences, including the FCA in the UK, alongside CySEC in Cyprus, the Central Bank of Bahrain (CBB) in Bahrain, Banco Central do Brasil in Brazil, the Central Bank of Azerbaijan in Azerbaijan, and additional licences across the jurisdictions we serve. This multi-jurisdictional structure is not only a regulatory necessity; it is a deliberate part of how we are built, giving our clients access to a single firm that can serve them under the rules of whichever market they choose to trade in. Our commitment to transparency is not a marketing position; it is embedded in how we operate, from how we communicate risk to our clients, to how we structure and protect client funds. Trust in this industry is not something you claim. It is something you demonstrate, consistently, over a long period of time. CFI has been doing exactly that for over 25 years.

What will define the next generation of trading platforms?
The platforms that lead the next decade will be those that evolve from pure transaction tools into genuine financial ecosystems. This means moving well beyond trade execution to offer structured education, personalised market insights, a full spectrum of asset classes, and a client experience that adapts to where each person is in their financial journey. Artificial intelligence will play a meaningful role in this evolution, not by replacing human judgement, but by augmenting it; helping clients understand their risk exposure, identify relevant opportunities, and navigate complex market environments with greater clarity and less noise.

At CFI, this is the vision we are building toward. The next stage of our platform is precisely this: a connected environment where trading, research, education, community, and a broader set of asset classes sit together within one experience, so that every client – whether they are placing their first trade or managing a sophisticated multi-asset portfolio – feels the platform genuinely grows with them.

That is the standard the industry should be measured against. It is the standard we are setting for ourselves.

Financing Mexico’s nearshoring future

Posted on July 16, 2026 by itsupport

Mexico is entering a defining period in its economic trajectory. Not because its structural challenges have disappeared – they have not – but because several long-term trends are beginning to reinforce one another at the same time: the reorganisation of global supply chains, the growing fragmentation of international trade, renewed emphasis on infrastructure investment, and the maturation of domestic pension savings into a meaningful source of long-term capital.

At the centre of this convergence are Mexico’s pension funds, the Afores. Once viewed primarily as administrators of retirement accounts, they are increasingly emerging as institutional investors with the scale and time horizon needed to help finance the country’s next phase of development. The discussion is no longer just about pensions. It is about how the savings of millions of workers can support the infrastructure required for sustained economic expansion.

In an environment defined by volatility, inflation pressures, and geopolitical uncertainty, infrastructure has become one of the most attractive asset classes for long-term investors. For pension funds, the appeal is straightforward. Infrastructure assets – whether in transportation, logistics, energy, telecommunications, or water systems – typically generate predictable cash flows over extended periods, offer some protection against inflation, and behave differently from traditional public-market investments. For institutions managing liabilities measured in decades, those characteristics are especially valuable.

But infrastructure offers something beyond financial returns. It expands productive capacity. Unlike many other assets, it has a direct impact on economic competitiveness and long-term growth.

That distinction matters in today’s environment. As supply chains are reconfigured and governments prioritise economic resilience, institutional investors are steadily increasing allocations to real assets. This is not a short-term tactical shift; it reflects a broader structural change in how capital is being deployed globally. The numbers already point in that direction. Roughly 49 percent of institutional investors worldwide currently have exposure to infrastructure, and that figure is expected to approach 60 percent by 2030.

Why Mexico is positioned to benefit
Mexico stands out as one of the clearest beneficiaries of this transition. Nearshoring has moved well beyond theory. Companies across industries are actively relocating manufacturing capacity closer to end markets in an effort to reduce logistical risks, shorten delivery times, and improve operational resilience. Within that shift, North America has become one of the most strategically important regions in the world economy. The USMCA bloc accounts for close to 30 percent of global GDP and more than 24 percent of world trade. Mexico occupies a particularly advantageous position within that framework: geographic proximity to the US, deep industrial integration, a broad trade network, and a manufacturing base that continues to expand.

Investment flows are already reflecting those advantages. In 2025, Mexico attracted approximately $40.8bn in foreign direct investment, up 10.8 percent from the same period a year earlier and the highest level on record. Demand for industrial and logistics facilities continues to rise rapidly, placing increasing pressure on existing capacity.

But nearshoring does not materialise on its own. Manufacturing relocation requires physical infrastructure capable of supporting large-scale industrial activity: reliable power generation, modern highways, efficient ports, rail connectivity, and robust digital networks. In short, it requires investment.

The Mexican government appears to have embraced a more pragmatic approach to infrastructure development. Public investment is not being framed as a substitute for private capital, but rather as a mechanism for crowding it in. That shift is visible in the scale of planned spending. For 2026 alone, the government has outlined infrastructure investment of roughly $41.3bn, equivalent to around two percent of GDP. Over the course of the administration, cumulative investment is projected to reach approximately $320.5bn.

The allocation of planned spending reveals the priorities:
• Energy accounts for 54.1 percent ($52.6bn)
• Rail infrastructure represents 15.6 percent ($14.9bn)
• Highways account for 13.9 percent ($13.5bn)
• Ports represent 6.5 percent ($6.3bn)

The operational targets are equally ambitious: the rehabilitation of 4,000 kilometres of roads, the construction of more than 3,000 kilometres of new rail lines, the modernisation of 11 ports, and 51 strategic energy projects expected to add more than 22,600 megawatts of capacity.

What matters just as much as the spending itself is the financing model behind it. The current strategy increasingly relies on mixed-investment structures in which the state provides coordination and long-term direction while opening space for institutional private capital. The emphasis is less on direct state control and more on improving project design, reducing uncertainty, sharing early-stage risks, and creating regulatory frameworks that provide long-term visibility for investors.

That philosophy is reflected in both the National Development Plan and the 2026–2030 Infrastructure Investment Programme, which prioritise structured public-private participation schemes and more sophisticated financing vehicles. At the same time, regulatory adjustments are gradually making it easier for long-term institutional capital to participate in productive investment opportunities. This is where the Afores become especially important.

Long-term development capital
By March 2026, Mexico’s Afores managed more than $480bn in assets, equivalent to roughly 23.6 percent of GDP. That makes the system one of the largest pools of domestic savings in Latin America. And it continues to grow. The 2020 pension reform gradually increased mandatory contributions from 6.5 percent to 15 percent of salary by 2030, significantly expanding the long-term growth potential of the system.

What matters just as much as the spending itself is the financing model behind it

Current projections suggest that by 2040, assets managed through the SIEFORES Target Date Funds could reach 56 percent of GDP, compared with an estimated 35 percent without the reform. More important than the size of the system, however, is how its investment profile is evolving. Mexico’s regulatory framework now allows pension funds greater exposure to long-duration assets, including infrastructure. Structured instruments, Fibras, simplified issuance processes, and more flexible investment vehicles have expanded the range of opportunities available to institutional investors.

Current limits allow up to 30 percent allocation in structured instruments such as CKDs and CERPIs, and up to 12.5 percent exposure through Fibras and REIT-style vehicles. None of this represents a weakening of investment discipline. Afores remain subject to strict governance, valuation and risk-management requirements. Their fiduciary obligations remain unchanged.

What has changed is the ability to align long-term retirement savings with long-term productive investment. The shift is already visible in the data. As of March 2026, Afores had invested more than $57.4bn in infrastructure-related assets, representing approximately 12 percent of total system assets. Investments linked specifically to the energy sector exceed $17bn. This is no longer a marginal allocation. It reflects a broader strategic repositioning of capital.

The conditions for success
The broader economic logic is compelling: retirement savings finance infrastructure, infrastructure supports productivity and growth, and stronger growth ultimately improves both investment returns and living standards. But none of this happens automatically. Infrastructure investing is inherently complex. Projects often involve long execution timelines, multiple stakeholders, political and regulatory uncertainty, and significant technical and financial risks.

Not every project creates the same value. Some may generate attractive financial returns but limited economic spillovers. Others may deliver substantial social benefits while struggling to meet purely commercial thresholds. That is why institutional quality becomes critical. The challenge is not simply attracting capital. It is building projects and frameworks capable of balancing profitability, public value, and long-term sustainability. That requires credible regulation, contractual certainty, stronger financial markets, better project preparation, and deeper technical expertise across both public and private sectors.

In other words, it requires building an ecosystem capable of sustaining long-term investment. Nearshoring may ultimately become the clearest test of whether Mexico can translate its structural advantages into durable economic gains. Global manufacturers are operating within real investment windows. Capital will not wait indefinitely.

If Mexico can provide reliable infrastructure, sufficient energy capacity and regulatory clarity, it has an opportunity to consolidate itself as one of the world’s most important industrial platforms over the next decade. If it cannot, investment will move elsewhere. That is why coordination between public policy, institutional savings and private capital matters so much.

Afores are uniquely positioned in this environment because their investment horizon is inherently long term. Unlike short-term capital flows, they are not driven by quarterly volatility or tactical repositioning. They can support projects through full development cycles. But long-term capital depends on long-term certainty.

A different economic framework
For decades, Mexico’s economic debate often revolved around familiar binaries: state versus market, public versus private investment, regulation versus liberalisation. That framework increasingly feels outdated. What is emerging instead is a more practical model based on coordination: the state as facilitator, private enterprise as operator, and institutional savings as the long-term source of financing.

Under this framework, infrastructure stops being viewed primarily as public spending or political symbolism and becomes what it fundamentally is: a platform for productivity, competitiveness, and sustained growth. Government estimates suggest that infrastructure investment alone could increase GDP growth by as much as three percent. Within that process, Afores are no longer peripheral financial institutions. They are becoming central components of the country’s long-term development strategy.

Mexico is not starting from scratch. It has strategic geographic advantages, deep industrial integration, an increasingly sophisticated financial system, and one of the largest domestic savings pools among emerging economies. But structural advantages alone are not enough. The real challenge is execution: turning plans into viable projects, projects into investment, and investment into measurable economic growth.

All of this could allow Mexico not only to capitilise on nearshoring but to completely reshape its long-term development path. And in that transformation, the Afores will play a far larger role than simply managing retirement accounts. They may ultimately become one of the key financial bridges between the country’s accumulated savings and the infrastructure needed to sustain its future growth.

The cooperative model for sustainable finance

Posted on July 15, 2026 by itsupport

In a world increasingly shaped by climate change, social inequality and economic uncertainty, the role of financial institutions is being redefined. Beyond profitability, there is growing demand for models capable of delivering long-term value while addressing pressing environmental and social challenges. Within this context, the credit union system has emerged as a powerful and scalable solution. By combining financial strength with a deep commitment to local development, cooperatives are uniquely positioned to channel resources in a more inclusive and impactful way. This model gains even greater relevance at scale, as demonstrated by Sicredi, one of Brazil’s largest cooperative financial institutions, with over 10 million members, more than 3,000 branches and presence in over 2,200 municipalities.

This consistent and large-scale impact has recently been recognised in the World Finance awards, where Sicredi was named the winner in the category ‘Outstanding Contribution to Sustainable Finance by a Cooperative (LatAm).’ The award recognises institutions that are not only advancing sustainable finance, but also reshaping how financial systems contribute to inclusive and low-carbon development.

Long-term development
At the core of Sicredi’s strategy is the integration of environmental and social criteria into credit decisions, ensuring that financial solutions actively contribute to long-term development. This approach has driven the expansion of its green credit portfolio, which reached $17.8bn in 2025, reflecting a consistent effort to align financial performance with sustainability outcomes. The green credit portfolio is defined through a robust classification framework that combines sectoral criteria, eligible credit lines and clearly identified environmental and social benefits. Sicredi adopts the sustainability taxonomy proposed by the Brazilian Banking Federation (Febraban), which is aligned with internationally recognised references such as the Climate Bonds Initiative, the European Union taxonomy and the Social Bond Principles.

The cooperative also plays a leading role in supporting under-represented groups

In practice, operations are classified as green when they support activities that contribute to the transition to a low-carbon economy, climate adaptation and resilience, sustainable land use, renewable energy generation, resource efficiency, biodiversity conservation or social inclusion in vulnerable territories. In addition to the purpose of the financed activity, credit decisions also incorporate social, environmental and climate risk assessments, ensuring consistency between sustainability outcomes, financial soundness and long-term development.

Within this strategic framework, $1.9bn was allocated to low-carbon agriculture. In parallel, Sicredi has also established itself as a leading financier of renewable energy, with a portfolio that has reached $4.3bn, particularly supporting the expansion of distributed solar generation. These investments enable producers to implement techniques such as crop rotation, efficient water use and biodiversity conservation, strengthening both environmental outcomes and agricultural resilience. Sicredi’s impact extends beyond environmental initiatives. Through its operations in small municipalities, rural areas and underserved regions, the cooperative plays a critical role in expanding financial inclusion and fostering local economic development. As a result of this presence, $5bn was directed to micro and small enterprises located in municipalities with below-average Human Development Index levels.

Economic empowerment
The cooperative also plays a leading role in supporting under-represented groups. Its portfolio dedicated to women-led businesses reached $1.8bn in 2025, reinforcing access to credit as a driver of economic empowerment, income generation and social inclusion. Strategic partnerships further amplify this impact. Collaborations with international institutions such as the International Finance Corporation (IFC) enable the mobilisation of global capital into local initiatives, combining financial resources with deep territorial knowledge. This blended approach strengthens the capacity to deliver scalable and measurable impact across diverse regions.

Taken together, these elements demonstrate that Environmental, Social and Governance (ESG) considerations at Sicredi are not treated as a separate agenda or a reputational layer, but as an expression of its very essence and an integral part of its business model and of the cooperative system itself. The integration of social, environmental and governance criteria guides strategic decisions, credit allocation, risk management and relationships with members and communities.

As sustainability becomes central to global financial systems, Sicredi demonstrates that the credit union system can play a transformative role in shaping a more inclusive and resilient economy. By aligning financial performance with social and environmental impact, the cooperative model offers a compelling pathway for sustainable development – not only in Brazil, but as a reference for financial systems worldwide.

Achieving trust through robust governance

Posted on July 14, 2026 by itsupport

Sampath Bank’s commitment to strong leadership is evident in the structure of its governance framework. The bank recognises that effective governance begins with the quality of leadership, particularly within Sri Lanka’s highly regulated banking environment, which demands accountability, prudence and resilience. As a systemically important financial institution, Sampath Bank recognises that its business success and long-term sustainability are intrinsically linked to the guidance and vision of its leaders.

At the board level, Sampath Bank demonstrates a highly diversified leadership structure, with directors drawn from key sectors including banking, finance, law, accounting, entrepreneurship, technology, human resources and public policy. The board embodies diversity across professional backgrounds, sectoral representation, age, experience and gender, carefully brought together to foster well-balanced perspectives, independent judgement and robust oversight. This breadth of expertise is clearly reflected in the distinguished profiles of its members, whose industry knowledge and accomplishments reinforce the bank’s governance strength. Our Chairman, President’s Counsel, Harsha Amarasekera’s strong leadership has been pivotal in embedding governance discipline, enhancing board effectiveness, and guiding the bank through periods of economic and operational transition. Under his stewardship, Sampath Bank has cultivated a future-ready governance mindset, firmly anchored in sustainability and long-term value creation.

At the management level, Sampath Bank is guided by an experienced and professionally diverse leadership team, headed by the Managing Director/Chief Executive Officer Sanjaya Gunawardana. This team contributes both individually and collectively through specialised expertise, sound judgement and strategic alignment. This synergy has played a vital role in elevating the ‘Sampath’ brand to one of the most trusted and highly regarded banking institutions in Sri Lanka. The bank firmly believes that governance is ultimately rooted in human behaviour, and that strong leadership is therefore an essential prerequisite for effective governance and continued success.

The diversity of the Directors has helped ensure a high standard of responsibility for the bank’s governance architecture, ensuring effective strategic oversight and accountability. This accountability is reinforced through the Board and the Board mandatory subcommittees, particularly through the Board Nominations and Governance Committee, Board Integrated Risk Management Committee, Board Audit Committee, Board Human Resources and Remuneration Committee and the Board Related Party Transactions Review Committee.

These structures are complemented by non-mandatory Board committees, which provide additional focused oversight and support overall governance accountability. Governance execution is effectively performed through corporate management, supported by the Three Lines of Defence framework led by business owners, the Chief Risk Officer, the Chief Compliance Officer, and the Chief Internal Auditor, ensuring independent oversight, transparency, and robust overall accountability across the organisation consistently.

Multi-faceted governance environment
Sampath Bank’s governance framework is firmly embedded within the broader regulatory and supervisory architecture governing Sri Lankan banks, guided by a commitment to uphold the spirit as well as the letter of the law. The bank operates within a multi-layered governance environment that encompasses the Central Bank of Sri Lanka (CBSL), particularly the Corporate Governance Direction No.5 of 2024, the Colombo Stock Exchange Listing Rules on Corporate Governance, and the Code of Best Practice on Corporate Governance issued by CA Sri Lanka (2023), alongside the other applicable laws and regulations.

Sampath Bank firmly believes that effective governance cannot be achieved through mechanical compliance alone. It requires a practical understanding of the principles underpinning governance and a clear appreciation of supervisory expectations. Regulators expect boards and management not only to comply with rules, but also to demonstrate sound judgement, ethical conduct, accountability and a strong governance culture in day-to-day decision-making. The bank is subject to oversight by multiple supervisory bodies, each with a distinct yet complementary focus. The CBSL directs its supervision primarily toward safeguarding depositors and ensuring financial system stability, while listing rules emphasise shareholder rights, transparency, market integrity and broader stakeholder protections.

Despite these differing perspectives, supervisory objectives ultimately converge on two critical outcomes: preserving stakeholder trust and ensuring the long-term sustainability of banks. In recognition of evolving regulatory and societal expectations, Sampath Bank integrates Environmental, Social and Governance (ESG) and sustainability governance, active stakeholder engagement, and a culture of ethics as essential pillars of long-term value creation and its reputation for public trust within the banking sector. At Sampath Bank, supervisory guidance and regulatory expectations are treated as primary strategic inputs, shaping business conduct at the highest level.

Aligning growth and governance
In banking, growth ambitions and governance requirements are often perceived as competing forces. At Sampath Bank, this potential tension is resolved through a well-defined governance architecture that positions governance not as a constraint, but as an enabling framework for sound decision-making. The bank recognises that effective governance is fundamentally about making the right decisions at the right time, in a manner that consistently meets and exceeds stakeholder expectations, backed by claw-back arrangements that uphold the responsibilities of the business leadership.

To enhance the alignment between strategy and governance, Sampath Bank has established its governance framework based on two fundamental pillars: performance and conformance, a concept internally developed and nurtured through reference to international expert insights, including those of Professor Bob Tricker. The performance pillar emphasises strategic planning and policy formulation, ensuring that growth initiatives are forward-looking, well-anchored, and value-driven. The conformance pillar encompasses accountability and executive monitoring, reinforcing transparency, prudent oversight and regulatory compliance. Together, these pillars provide a balanced foundation that integrates ambition with discipline, enabling sustainable growth within a sound governance structure, driving sustainable value creation for all stakeholders.

Regulatory alignment
Sampath Bank adopts a proactive and integrated approach to risk governance, recognising that risk-taking is an inherent aspect of banking. The bank balances risk appetite with risk control through a Board-approved Risk Appetite Framework. The bank’s risk governance is monitored through the Board Integrated Risk Management Committee, which oversees risk strategy, policies, emerging risks, mitigation measures and regulatory compliance.

Risk governance at Sampath Bank is embedded across the organisation through the Integrated Risk Management Framework (IRMF). Risk considerations are integrated into decision-making processes, enabling the early detection of emerging risks and ensuring alignment with strategic objectives.

Sampath Bank’s risk governance framework also addresses the increasing risks associated with rapid technological advancements, including artificial intelligence, information security, cybersecurity, personal data protection and regulatory requirements relating to cloud-based data management. In this context, technology risk governance is treated as a strategic priority. The Chief Information Officer and Chief Information Security Officer play a key role in strengthening resilience, security, and regulatory compliance, supported by ongoing investment in technology and digital infrastructure aligned with the bank’s strategic objectives, ensuring that innovation is pursued responsibly while safeguarding operations and stakeholder trust. The bank’s approach is firmly aligned with CBSL governance and risk management directions, encompassing corporate governance and integrated risk management requirements, as well as Basel II and Basel III principles on capital adequacy, supervisory review and market discipline. This alignment ensures the bank maintains strong capital and liquidity positions, while reinforcing resilience under stress scenarios. Meanwhile, its governance architecture ensures strategic alignment between risk and business objectives, robust oversight with independent challenge, sustained regulatory confidence, and institutional resilience against economic, financial and operational shocks.

Transformative governance
Sampath Bank’s governance architecture can credibly be positioned as a best practice model for sustainable growth, precisely because it adopts a principle-led, integrated approach that extends beyond narrow regulatory compliance. In many financial institutions, governance requirements are often reported from multiple sources, CBSL Directions, listing rules, and best practice codes, leading to parallel or duplicative responses. Sampath Bank has deliberately moved away from this siloed approach. Instead, it has consolidated overlapping requirements into a unified governance reporting and monitoring framework, applying a common methodology across all regulatory and best practice expectations. This integrated model enables the bank to address governance challenges more effectively, while reducing complexity and enhancing clarity in execution.

At Sampath Bank, governance is not merely documented but actively operationalised. Each obligation is assigned to a clearly designated officer, supported by defined timelines, ownership accountability and structured escalation mechanisms. Progress is tracked through a comprehensive governance dashboard, providing real-time visibility into first-line defence actions and enabling proactive oversight by senior management and the Board.

Sampath Bank’s governance architecture has the potential to drive broader sectoral transformation, by showing that integrated, technology-enabled governance enhances effectiveness rather than constraining performance. It offers a practical template for Sri Lankan banks seeking to move beyond compliance-driven governance towards sustainable, trust-based, and performance-enhancing frameworks that meet supervisory expectations while serving long-term stakeholder interests.

Achieving global recognition
In recognition of its governance commitment, the bank was honoured with Sri Lanka’s Best Bank for ESG – Euromoney Awards for Excellence 2025, ACCA Sustainability Reporting Awards 2025 – Runner-Up in the Banking sector – Association of Chartered Certified Accountants, second runner-up at the Best Corporate Citizen Sustainability Awards 2024 – Ceylon Chamber of Commerce, Asia’s Best Bank for Corporate Responsibility – Euromoney Awards for Excellence 2024, ACCA Sustainability Reporting Awards 2024 – Runner-Up in the Banking sector, and the Overall Bronze Award at the SAARC Anniversary Awards for Corporate Governance Disclosures 2024, underscoring its dedication to excellence and transparency. It also received the ICA Sri Lanka Merit Award for Excellence in Corporate Governance Disclosures in 2024 and 2025. Furthermore, Sampath Bank was recognised with the Best Corporate Governance – 2026 award for Sri Lanka by World Finance magazine.

This accolade further affirms the bank’s sustained commitment to adopting and advancing best practices in corporate governance. These distinctions collectively underscore the strength of Sampath Bank’s governance framework, the transparency of its reporting, and, not least, the collaborative efforts of its teams. They reflect the bank’s enduring commitment to integrity, accountability, and responsible disclosure, reinforcing stakeholder trust and confidence. Beyond recognising past accomplishments, these milestones serve as a catalyst to continually elevate governance standards in pursuit of sustainable value creation for all stakeholders.

Cork – a millennia-old raw material

Posted on July 13, 2026 by itsupport

Whether in its most traditional roles or in more unexpected contexts, cork continues to demonstrate outstanding performance across a broad spectrum of industries. In sectors as diverse as winemaking and aerospace, cork can be integrated into a wide and growing range of applications, supporting lower-impact solutions across multiple fields.

The story of cork is closely intertwined with the history of wine, two worlds that are inseparably linked. Over the centuries, this relationship has evolved into a true symbiosis, in which the natural cork stopper protects, preserves and elevates a product that is itself alive. Dating back to ancient civilisations and later shaped by the influence of Dom Pérignon in the 17th century, who established the enduring connection between glass and cork, the stopper has become an essential part of the wine experience.

At the heart of this experience is Corticeira Amorim, the world’s leading producer and exporter of cork products, recognised for its long-standing focus on renewable, bio-based materials and life cycle-based sustainability assessment. Founded in Portugal in 1870, Corticeira Amorim has grown from a family business into a global leader, with sales in more than 100 countries. While its portfolio now extends from flooring to aerospace-grade composites, it remains best known for its high-performance cork stoppers, producing over five billion each year.

Why cork?
There are multiple reasons why cork stoppers are widely regarded as the preferred closure for wine bottles, covering technical, sensory and environmental dimensions, with environmental performance supported by peer-reviewed life cycle assessment studies and product carbon footprint analyses.

Corticeira Amorim is the world’s leading producer and exporter of cork products

Aligned with the ISO 14067 standard, greenhouse gases – carbon footprint of products, Amorim Cork has conducted studies to quantify the carbon footprint of its cork stoppers using a cradle-to-gate approach. To date, these studies cover around 60 percent of the product portfolio and have been independently verified by APCER – Portuguese Association of Certification – ensuring robust, credible and transparent information consistent with EU regulatory expectations for environmental disclosures.

The results confirm that all analysed cork stoppers present a negative carbon footprint within the defined system boundaries, highlighting cork’s environmental value as a packaging solution for the wine sector. Depending on the product typology, values range from –28.72 g CO₂e for each Spark Top II stopper, in the sparkling wine segment, to –56.4 g CO₂e for each Naturity cork stopper.

Rooted in the cork oak, giving back
At the core of cork’s exceptional environmental qualities is the cork oak tree. Native to the Mediterranean and central to Portugal’s distinctive Montado (cork oak forest), it is the only tree species whose bark regenerates after harvesting. Cork oak forests function as carbon sinks and as long-term carbon stores, since these trees have an average lifespan of around 200 years.

According to a study cited by APCOR – Portuguese Cork Association, cork oak forests can sequester up to 73 tonnes of CO₂ for every tonne of cork harvested. This makes cork a nature-based system with significant long-term carbon storage potential, while also contributing to other ecosystem services.

Beyond cork production, this ecosystem supports high levels of biodiversity, including endangered species such as the Iberian lynx and the Spanish imperial eagle. The Quercus suber, more commonly known as the cork oak, plays an essential role in maintaining soil quality, storing carbon and preventing desertification. Unlike monoculture plantations, the cork oak forest represents a model of land use where environmental protection and economic productivity coexist.

In addition, the long-term resilience of the cork oak forests depends on responsible forest management and the maintenance of healthy, economically viable cork value chains – helping to keep this multifunctional landscape standing and managed over generations.

The rise of the circular airport

Posted on July 10, 2026 by itsupport

Aeroporti di Roma (ADR) is one of Europe’s leading airport operators, managing and developing Rome Fiumicino and Ciampino airports. Rome Fiumicino ‘Leonardo da Vinci’ is a strategic gateway to Italy and one of the world’s leading airports, ranked in the global top 10 as well as one of only 12 airports to hold a Skytrax five-star rating worldwide. In 2025, Fiumicino exceeded 50 million passengers for the first time, further consolidating its role as a major global hub.

Within this context, circular economy has emerged as a key lever to enhance competitiveness while reducing environmental pressure, particularly for complex infrastructures such as airports, integrated systems where passenger flows, airlines, commercial activities, construction sites and operational services converge. For ADR, circular economy is therefore not a standalone initiative, but a strategic operating model connecting infrastructure development, daily operations and stakeholder behaviour.

This vision has been reinforced by the Memorandum of Understanding (MoU) signed by ADR in 2025 with the Italian Ministry of the Environment and Energy Security, which recognises the airport ecosystem as a platform for advancing circular economy models. For Rome Fiumicino airport, this translates into concrete experimentation, integrating circular principles into projects, operations and user-facing solutions that generate measurable results and useful insights for the wider sector. In other words, a ‘circular hub.’

Embedded in the infrastructure
At Rome Fiumicino, construction and refurbishment projects are conceived as evolving systems rather than static assets, prioritising redevelopment (brownfield) over demolition where feasible. Design integrates Italy’s minimum environmental criteria and international standards such as LEED and BREEAM, embedding modularity and reversibility to facilitate adaptation and material recovery. ADR already certified more than 75 percent of Rome Fiumicino’s terminal infrastructure under LEED or BREEAM, extending asset life and reducing reliance on new resources.

Runways, aprons and roads increasingly incorporate recycled materials, including bituminous conglomerates with high recycled content and aggregates from demolition. In 2025, recycled materials accounted for over 50 percent of those used in completed works. On-site separation of excavation and demolition materials enables their reuse in foundations and non-structural works, reducing waste and the need for raw materials. Dedicated processing plants within the airport perimeter support this closed-loop approach. These practices are embedded in technical specifications through defined thresholds that balance recycled content with performance and safety requirements and are already applied across major projects at Leonardo da Vinci airport.

Daily operations at a circular airport
Alongside infrastructure, circular economy extends into daily airport operations. At Fiumicino, waste management is a core operational process designed to maximise efficiency and the quality of waste separation across the airport.

Within terminals, differentiated collection systems are supported by dedicated recycling centres and supervised by specialised operators. A tariff model combining a fixed component with a variable fee linked to the production of unsorted waste incentivises improved separation at source by commercial operators, directly aligning environmental performance with cost efficiency. This system is progressively enhanced through digital monitoring tools that track collection, transport and disposal, improving data quality and operational control.

Water circularity is also embedded in operations. Fiumicino airport is equipped with an advanced system to recover and treat non-potable water from a biological treatment plant and the Tiber River, significantly reducing the use of potable water for thermal systems, irrigation and sanitation. Yearly, over 70 percent of water consumption at Fiumicino is non-potable – saving the equivalent of 500 Olympic-sized swimming pools.

Behavioural change complements these technical solutions. To address the challenge of correct waste separation in a complex, multicultural passenger environment, ADR has introduced smart bins in Fiumicino’s terminals. Developed with an Italian start-up, they use artificial intelligence to recognise waste in real time and provide feedback, improving separation quality while generating data to support analysis and targeted awareness campaigns. Following successful pilots, which recorded a 60 percent reduction in plastic sorting errors, the system is now being scaled up as a permanent element of ADR’s operational model.

Refillable drinking fountains offer passengers a practical alternative to disposable plastic bottles, while collaboration with retail operators promotes more circular packaging solutions. Partnerships with organisations such as ‘Too Good To Go’ have enabled, since the launch of the initiative and up to Q1 2026, more than 10,000 meals to be saved at Rome Fiumicino, corresponding to an estimated avoidance of nearly 30 tonnes of CO₂ emissions, while reducing food waste and maximising the value of resources.

Across both infrastructure and operations, digitalisation acts as an enabling layer, enhancing traceability, accountability and decision-making. By improving visibility over material and waste flows, ADR is progressively optimising resource use, reducing operational costs and identifying additional recovery opportunities across the airport ecosystem.

Moving beyond a linear economy
At airport scale, the economic rationale for circularity is clear. The systematic use of recycled materials in infrastructure works reduces procurement costs and dependence on raw materials, while high-quality waste separation and increased recycling rates lower disposal costs and enhance the recovery of valuable fractions. These efficiencies contribute to a more robust operating model in which environmental performance and financial discipline reinforce each other.

For Rome Fiumicino, circular economy represents a forward-looking growth strategy rather than a marginal optimisation. By redesigning infrastructure and operations as regenerative systems, ADR strengthens resilience and competitiveness in an increasingly resource-constrained world, supporting long-term value creation while decoupling growth from environmental impact.

How Banreservas mobilised diaspora capital

Posted on July 9, 2026 by itsupport

Banreservas’ international expansion strategy is centred on strengthening economic ties with the Dominican diaspora as a strategic economic partner, rather than just operating as a full retail bank abroad, and the bank has successfully used mortgage fairs as part of this expansion strategy. These client-centric engagement events bring together diaspora clients, credible Dominican real estate developers, fiduciary-backed projects and bank representatives in one venue to help address key diaspora challenges such as distance and lack of trusted intermediaries, legal and documentation uncertainty, difficulty assessing projects remotely and limited access to tailored financing.

By simplifying the sending process from the US and Europe, reducing operational friction, and offering greater convenience and security, Banreservas has incentivised increased use of formal remittance channels. This strategy has had, and is expected to continue to have, a highly positive impact on remittance flows to the Dominican Republic, both in terms of volume and formalisation.

Reimagining the diaspora relationship
Banreservas’ model relies on representative offices set in strategic cities to provide advisory, pre-qualification and customer support services, while the financing and account opening itself is referred to Banreservas in the Dominican Republic, where they are operatively managed and booked.

The US (New York and Miami) and Spain (Madrid) were chosen as priority hubs to channel diaspora engagement and long-term investment because they are home to some of the largest and most economically active Dominican communities worldwide. By establishing representative offices in these strategic locations, Banreservas delivers tailored financial services to historically underserved expatriate communities, enabling them to invest, save, and build wealth in the Dominican Republic while contributing to national economic development, unlocking sustainable growth opportunities and deepening its role as a financial bridge between Dominicans abroad and their home country.

Banreservas uses mortgage fairs to compress what is traditionally a long, fragmented cross‑border process into a single, guided experience that combines education, advisory, and support. Diaspora clients can receive on-the-spot pre-qualification, explore real estate projects nationwide, and receive information and guidance about loan processes, although final approvals and disbursements are processed in the Dominican Republic.

The response in the US and Madrid has been characterised by sustained momentum and the diversity of participant profiles, from first-time buyers to repeat investors and returning nationals, which suggests that the fairs are resonating beyond a narrow segment of the diaspora. In US cities with long-established Dominican communities, the fairs have evolved into anticipated events rather than exploratory initiatives, with those in New York and Lawrence generating financing exceeding $49m. However, the initiative was newer in Europe, so the response in Madrid followed a slightly different trajectory, with early editions focusing heavily on education and orientation. That said, the first fair in Madrid attracted thousands of participants and closed with financing requests of more than $21m.

Risk mitigation is central to the model and projects are carefully vetted, many supported under a fiduciary account or an estate asset trust fund and backed by clear legal frameworks. Banreservas’ direct involvement is one of the defining features of its diaspora strategy to ensure transparency, regulatory compliance and investor protection throughout the process. By offering direct access to Banreservas’ experts, vetted developers, fiduciary-backed projects and consistent financing terms, these events are helping create a relationship-building platform that improves transparency, credibility and institutional confidence. Internal customer experience reports emphasise that word-of-mouth referrals, repeat attendance, and post-fair engagement are among the clearest indicators that trust has been established organically, particularly within close-knit diaspora communities. Banreservas’ role as the national leading institution further reassures clients investing from abroad.

Transaction to transformation
Rather than a single-product offering, Banreservas approaches diaspora customers with a portfolio mindset, providing a robust cross-border selection including mortgage loans, savings and checking accounts, remittance-linked products and investment solutions tied to real estate development.

Banreservas has deliberately adopted a scalable and selective expansion logic

Remittances are a core strategic pillar of Banreservas’ international expansion, and the creation of new digital channels and specialised financial products are helping transform remittances into a gateway for deepening financial inclusion. The Remesas Reservas app enables Dominicans abroad to send money from the US and Europe using international cards, with funds credited directly to bank accounts or debit cards in the Dominican Republic, eliminating the need for cash, queues, or physical travel. The app is complemented by the home delivery remittances service, which extends financial access to rural communities that were previously excluded from the formal financial system. Service performance data shows that 97 percent of remittances sent through the app complete the entire process digitally, while 94 percent are received directly in bank accounts, strengthening financial traceability. This supports the sustainability and potential growth of remittance inflows to the Dominican Republic that already exceeds $12bn annually, while also expanding the banked customer base and improving the overall efficiency of the national financial ecosystem.

The strategy is further strengthened by the introduction of remittance-based consumer and mortgage loans, specifically designed for remittance recipients. These products allow recurring remittance flows to be converted into formal financial history, facilitating access to credit, and reinforcing the ‘bankarisation’ process. As a result, remittances evolve from a basic transfer mechanism into a financial development tool, integrating beneficiaries into the banking system with solutions tailored to their real income patterns and needs.

Mortgage financing in the Dominican Republic is embedded within a broader set of banking solutions designed to support the full investment and ownership journey. At the core are residential mortgage products structured for non-resident clients looking to acquire property in the Dominican Republic. These are complemented by linked deposit and savings accounts, which allow clients to organise funds, manage payments and maintain an ongoing banking relationship once the purchase process begins. In parallel, Banreservas leverages its digital channels and remittance services to facilitate the movement of funds and day-to-day interaction with Banreservas, reinforcing continuity beyond the initial transaction.

For first-time diaspora investors, the emphasis is on financial orientation and readiness with solutions structured to simplify entry into the formal mortgage system in the Dominican Republic. For returning nationals, products and advisory conversations are typically aligned with reintegration objectives. In both cases, the underlying principle is adaptability within a controlled institutional framework, rather than bespoke products that introduce additional risk.

They have the support of President Luis Abinader, who has created the conditions for Dominicans in the diaspora take advantage of the macroeconomic stability, legal security, and full guarantees that receive all foreign investors who trust in the Dominican Republic to make their business.

Modernising remittance ecosystem
Modernising the remittance ecosystem combined with specialised financial products generates a direct multiplier effect on strategic sectors, strengthening the real economy and territorial development. In the construction sector, the remittance mortgage loan transforms recurring remittance flows into formal financing capacity for homeownership and has taken centre stage in Banreservas’ participation in international mortgage fairs. Diaspora demand supports property acquisition and upstream activities such as project development, construction services, materials supply, legal services and professional employment.

Equally important is the impact on financial deepening and formalisation. When diaspora investors enter the banking system through regulated mortgage channels, their participation strengthens the use of formal financial products, thereby expanding the reach and resilience of the financial system. This dynamic is a key contribution to economic maturity, as it encourages long-term financial relationships rather than one-time transactions.

From a tourism perspective, the strategy strengthens the economic and emotional ties between the diaspora and the country. Home purchases financed through mortgage loans paid via remittances promote more frequent visits, longer stays, and increased spending on tourism-related services, while also encouraging investment in vacation properties and second homes. Additionally, increased formal income and financial inclusion among remittance-receiving households boosts domestic consumption, benefiting transportation, commerce and service sectors closely linked to tourism.

The scalable model
Banreservas has deliberately adopted a scalable and selective expansion logic, prioritising model stabilisation in proven markets before extending to new ones. However, any future expansions are likely to be opportunity-driven and phased, to ensure that each new market sustains long-term client relationships. This strategy allows for progressive expansion, but only where three conditions converge: concentrated Dominican diaspora communities with sustained economic ties to the Dominican Republic, regulatory and operational feasibility, particularly the ability to support activity through representative offices or equivalent structures, and demonstrated demand signals.

The next three to five years points to a qualitative shift in diaspora investment behaviour. First, there is a clear movement from sentimental ownership to strategic investment. Second, diaspora investors are showing a stronger preference for formal, institutionally mediated channels. And finally, the younger diaspora segment tends to prioritise entry-level or future-orientated assets, while more established individuals focus on retirement, anchoring, or reintegration-linked purchases. This diversification of motivations is influencing how Banreservas structures advisory conversations and sequences client engagement over time.

With diaspora investment contributing to national economic development primarily by transforming external household income into structured, long-term domestic capital, Banreservas’ long-term objectives are driving financial inclusion, fostering foreign direct investment and supporting key productive sectors. By empowering confident diaspora investment, Banreservas reinforces its leadership role in national development while expanding its international footprint in a sustainable way by adopting a focused model that strengthens value creation in the Dominican Republic through targeted international interaction.

From a growth perspective, the expansion allows Banreservas to diversify its customer acquisition channels by engaging Dominican communities abroad at earlier stages of their financial decision-making. From an economic development standpoint, the strategy is goal orientated.

By facilitating diaspora investment in housing and related sectors in the Dominican Republic, Banreservas acts as a conduit that transforms external income flows into productive domestic investment.

Kazakhstan’s banking ambitions go global

Posted on July 7, 2026 by itsupport

ForteBank is one of the leading banks in Kazakhstan, serving retail, SME and corporate clients and boasting 21 branches and 71 outlets across the country. The bank’s Chief executive officer is Talgat Kuanyshev, a banking executive with more than 30 years of leadership experience in Kazakhstan’s financial sector. He has led ForteBank through key phases of strategic development and transformation, with a focus on sustainable growth and operational excellence. Kuanyshev spoke to World Finance about the bank’s recent landmark acquisition, a bond issue that made history, and why growing awareness among investors means there is no longer a need to “explain Kazakhstan from the ground up.”

ForteBank acquired Home Credit Bank late last year – what was the rationale behind this acquisition?
The acquisition of Home Credit Bank is a logical step in the execution of our long-term strategy. We were looking for an opportunity to accelerate growth in the retail and consumer segment – an area where Home Credit Bank has built strong expertise and brand recognition. For Forte, this transaction adds a mature retail technology platform and a well-established customer base. By combining the expertise of the two banks, we expand our product offering and strengthen our focus on service quality and reliability.

What benefits will this transaction bring to ForteBank’s clients and shareholders?
For our clients, the key advantage at this stage is continuity: all existing agreements remain valid, and clients of both banks continue to be served under the same terms through the same channels – branches, call centres and digital platforms. In the medium term, clients will gain access to a broader product range, combining Forte’s corporate and premium offerings with Home Credit’s strong consumer lending expertise. For shareholders, the logic is equally clear: we strengthen our market position, build a more resilient and diversified business and create a platform for sustainable growth. This deal is not about scale for the sake of scale – it is about the quality of growth.

Do you expect any challenges during the integration process, and how will you address them?
Any integration of this scale comes with operational complexity, and we approach it with realism rather than excessive optimism. Our principle is simple: customer experience comes first, and we will not compromise service stability for the sake of faster technical integration. Therefore, the integration will be phased, with priorities determined by business value rather than arbitrary timelines.

Last year ForteBank issued $400m in Additional Tier 1 (AT1) bonds. Why was this milestone so important?
The significance of this issuance goes far beyond a single transaction. It is the first Additional Tier 1 placement in Kazakhstan’s capital market – a benchmark that opens a new chapter in the development of the country’s financial system. The bonds were issued in accordance with 144A/RegS standards, listed on the Vienna MTF and the Astana International Exchange (AIX), governed by English law, and fully compliant with Basel III requirements. The instrument is included in Tier 1 capital in tenge.

We expand our product offering and strengthen our focus on service quality and reliability

For ForteBank, this is part of a deliberate strategy: strengthening the capital structure, diversifying funding sources and expanding access to international markets. For Kazakhstan, it sets a precedent demonstrating that local institutions can attract capital from the deepest global liquidity pools on terms comparable to issuers from more established markets.

The issuance was three times oversubscribed – what drove such strong demand from international investors?
Yes, the order book was nearly three times oversubscribed, with participation from more than 100 investors from the UK, the US, Switzerland and Hong Kong. The geography and quality of the investor base speak for themselves: this was not opportunistic demand, but a well-balanced allocation among long-term institutional investors. Confidence was driven by several factors – ForteBank’s reputation as an issuer with transparent reporting and disciplined capital management, the structural quality of the instrument, and the growing recognition of Kazakhstan as a mature emerging market. We worked with a strong syndicate – JPMorgan as global coordinator and bookrunner, First Abu Dhabi Bank, Commerzbank, and Mashreq as joint bookrunners, and ForteFinance as the local placement partner.

Have you observed a shift in global investor confidence in Kazakhstan in recent years? What is driving the country’s development as an increasingly attractive emerging market?
Yes, the shift is tangible. A few years ago, discussions with international investors required a significant ‘educational’ component – Kazakhstan had to be explained from the ground up. Today, these conversations start from a much higher level of awareness. Investors come informed about the country’s macroeconomic stability, its strategic position between major economic blocs, and the depth of reforms in the financial sector. The geography of demand for our AT1 issuance – the UK, the US, Switzerland, Hong Kong – would have been difficult to imagine five years ago. This is supported by several factors: prudent monetary policy, strengthening of the regulatory framework under the Agency for Regulation and Development of the Financial Market, and the emergence of Kazakh issuers building a credible track record in international markets. Each successful transaction by a Kazakh issuer makes it easier for the next – and we see our role in continuing to set these benchmarks.

In 2025, ForteBank became the first commercial bank in Kazakhstan to secure a syndicated loan in Chinese yuan. Why was this transaction so important?
This is the first syndicated loan in yuan raised by a commercial bank in Kazakhstan – RMB 750m (€95m) with a three-year tenor. Its significance is twofold. First, it expands the toolkit available to Kazakh banks: syndicated funding has traditionally been predominantly USD-based, and the introduction of yuan opens a new dimension of currency diversification. Second, it reflects the practical realities of our economy – China is one of Kazakhstan’s largest trading partners, and a significant share of our corporate clients conducts settlements in yuan. The ability to fund these flows directly in the same currency reduces FX risk for our clients. This is the kind of benchmark that creates a template for others to follow.

What does this mean for the future of commercial lending in the country and the development of alternative currency financing?
I believe we are at the beginning of a structural shift. The dominance of the US dollar in cross-border financing will remain, but the share of alternative currencies – yuan, dirham, and others – will continue to grow as trade flows evolve. For commercial lending in Kazakhstan, this is a positive trend: borrowers gain more options, banks can align funding with the currency of their clients’ businesses, and vulnerability to shocks in a single currency is reduced. Our yuan deal was twice oversubscribed, with five international banks participating in the syndicate – including ICBC Standard Bank, First Abu Dhabi Bank, the Export-Import Bank of China as Mandated Lead Arrangers, and Altyn Bank as the arranger.

The proceeds are directed toward major investment projects in metallurgy, industry, and other strategic sectors, supporting modernisation and enhancing the international competitiveness of our economy.

What is your vision for expanding business flows and strengthening ties between China and Kazakhstan? How do you plan to achieve this?
Kazakhstan and China are neighbours with deep economic ties: a shared border, infrastructure projects, and growing trade volumes. Forte’s role in this landscape is to provide clients with convenient and reliable financing for operations with Chinese counterparties. The yuan syndicated loan is an important step in this direction: it not only diversifies our funding but also lays the foundation for further cooperation. Within this transaction, we partnered with leading Chinese institutions – ICBC and the Export-Import Bank of China – and we see this as a foundation for building long-term partnerships.

Across all these initiatives, there is a clear theme of expansion and diversification. What is your long-term strategic vision for ForteBank?
If we look at these three transactions together – the AT1 issuance, the yuan syndicated loan, and the acquisition of Home Credit Bank – they are not three separate stories. They are three expressions of the same long-term strategy: building a bank that is structurally stronger, more diversified, and more deeply integrated into the global economy. AT1 strengthens our capital base and provides capacity for further lending to Kazakhstan’s economy. The yuan loan diversifies funding and aligns it with how our clients actually conduct business. The acquisition of Home Credit expands our capabilities in retail and accelerates our entry into consumer finance. Each of these steps addresses a specific objective or opens a new opportunity – and together they position ForteBank as a bank that supports Kazakhstan’s economy across all cycles. That is the bank we are building.

The model built for industrial resilience

Posted on July 6, 2026 by itsupport

What truly allows a company to endure for nearly a century? Not merely to survive, but to remain relevant, trusted and capable of renewing itself generation after generation? At Şişecam, we believe the answer lies far deeper than balance sheets or scale alone. Our real strength comes from the trust we earn, the society we strengthen and above all, the enduring value we create together with all our stakeholders. Şişecam’s foundations were laid with a purpose far broader than that of a typical enterprise. We were founded to build something that did not yet exist: the glass industry in Türkiye. At a time when there was no domestic production, no established know how, and no industrial tradition in glass, Şişecam was entrusted with creating an entire sector from the ground up. This pioneering responsibility shaped our institutional character long before we became a global company.

We were established as the industrial heart of the İş Bank Group. This close connection to one of Türkiye’s most respected and long standing financial institutions embedded a strong sense of discipline, accountability and long-term thinking into our DNA from day one. In many ways, Şişecam today represents a living industrial ecosystem of the Group. This unique structure provides us with a robust financial backbone and a governance culture rooted in prudence. It allows us to pursue ambitious, long-term investments with confidence. It means that while we operate with the agility of a global industrial leader, we are guided by the stability and foresight of a major financial institution.

Over time, this foundation enabled us to grow beyond borders. Today, Şişecam operates across 13 countries on four continents. Yet the reach of what we do extends far wider. Through our products, we touch everyday life in more than 150 countries, often quietly, but always meaningfully. From homes and cities to vehicles, factories and tables around the world, our products become part of daily lives. We are not just making glass; we are crafting a better quality of life.

High-performance architectural glass
Our global presence is not built on a single product or market. Şişecam is the only global company operating in all core areas of glass. In flat glass, our solutions shape modern architecture, bring daylight into the spaces where we live, work and connect. Our high-performance architectural glass does more than define skylines; it creates energy-efficient buildings that reduce our collective carbon footprint, improves thermal insulation to enhance indoor comfort and reduce energy demand, enhances security in public spaces, and provides superior acoustic insulation for quieter, more productive environments.

In automotive glass, we accompany millions of journeys every day, contributing to visibility, safety and comfort. From standard windshields to HUD, we are a critical partner to the world’s leading automotive brands, enabling the future of mobility.

In glass packaging, we are present at moments when people enjoy a bottle during a shared meal or when food is kept fresh and safe until it reaches the table. Our glass protects taste, quality and trust. As a 100 percent and infinitely recyclable material, and through advanced lightweighting efforts it is also a powerful answer to the global challenge of packaging waste, offering brands a sustainable choice.

In glassware, our products are set on tables, raised in celebration, and used in moments that bring people together. By blending timeless aesthetics with lasting durability, our glassware elevates both daily rituals and life’s special occasions, turning simple moments into lasting memories.

In chemicals and raw materials, we work behind the scenes, supplying critical inputs that support both our own glass production and a wide range of other industries. Our expertise in products like soda ash and chromium chemicals gives us a strategic advantage, ensuring supply chain security and providing a platform for innovation across multiple sectors.

This breadth is not coincidental. It reflects a deliberate choice to build expertise across the full glass value chain, allowing us to manage complexity, strengthen resilience and respond to diverse customer needs with consistency and depth. It is what enables us to balance scale with specialisation and stability with adaptability. This integrated model creates a virtuous cycle: advancements in our chemicals business can lead to innovations in glass formulation, while insights from our packaging clients can inform new designs in our glassware division. It is a source of synergistic strength that is difficult to replicate.

Transparency and accountability
The same philosophy shapes our approach to governance. For us, transparency and accountability are not corporate expressions; they are the basis of trust in every relationship. We believe that lasting value can only be created when the rights and interests of all stakeholders are respected: customers, employees, partners and shareholders. Operating in line with international standards is not an ambition for the future; it is the way we work today. Our focus is clear: to deliver profitability, efficiency, and real added value while acting fairly and responsibly in every interaction.

Through our products, we touch everyday life in more than 150 countries

To bring this to life, we have established a governance framework that is both robust and adaptive. For over a decade, we have pioneered the use of digital platforms for our General Assemblies, ensuring every shareholder has an equal and transparent voice. This removes geographical barriers and reinforces our commitment to fairness and inclusion. Our Board of Directors also utilises secure electronic systems, enabling effective oversight across our global operations and ensuring that decision-making remains agile and well-informed. These are not just tools; they are tangible expressions of our commitment to modern, accountable governance.

Behind all of this stands the true engine of Şişecam’s success: our people. Şişecam is a collective effort. We draw our strength from the talent, commitment and sense of ownership of our teams across different geographies and cultures. Our ambition is to remain a lean and empowered organisation, one where responsibility is shared, collaboration is natural and people feel personally invested in what they build. Because strategies only work when people truly believe in them and are empowered to bring them to life. Our internal idea development platforms and social engagement initiatives are designed to give every employee a voice, fostering a sense of belonging and a shared purpose. We know that the best ideas often come from those closest to work and we strive to create an environment where those ideas can flourish.

This belief directly defines our relationship with the customers, our most important partners. With every investment decision, every operational improvement, and every innovation, we ask a simple question: ‘How does this serve our customers better?’ Their success is the clearest reflection of our own. By keeping customer needs at the centre, we ensure that excellence is practical, relevant and sustainable. This means co-creating solutions, anticipating market trends, and being a reliable partner they can count on, day in and day out. It is a relationship built not on transactions, but on a shared journey toward mutual growth.

Attention on the future
Today, Şişecam is navigating a period that calls for focus rather than expansion for its own sake. While we take pride in our 90-year history, our attention is firmly on the future. In an environment that demands efficiency, financial discipline, and innovation, we are prioritising stronger profitability and higher value-added production. This requires a pragmatic mindset, one that honours institutional discipline while embracing the agility needed to succeed in competitive global markets. This involves optimising our production processes, rationalising our portfolio to focus on high-margin products, and investing strategically in areas with the greatest potential for growth and innovation. It is about being smarter, not just bigger.

In a world shaped by sustainability and technology, glass holds a distinctive advantage. It is infinitely recyclable, chemically inert and essential to sectors ranging from renewable energy to pharmaceuticals. At Şişecam, we are advancing this potential through people-driven and digitally supported processes, bringing together experience and data, craftsmanship and technology. Our CareforNext sustainability strategy is a core part of this vision. It is governed with the same rigour as our financial performance, with clear, science-based targets overseen by our Board’s Sustainability Committee. From increasing our use of recycled glass to investing in renewable energy and improving water stewardship, we are embedding sustainability into every aspect of our capital allocation and performance metrics.

Simultaneously, our digital transformation programme, IT X.0, is reshaping our industrial landscape. On the production sites, digital twins of our glass furnaces have evolved into self-optimising systems. These pioneering applications of machine learning and AI are driving unprecedented gains in efficiency and sustainability. These are not futuristic experiments; they are practical, value-driven initiatives that strengthen our competitive edge today.

We may have 90 years behind us, but for us, the most meaningful chapter lies ahead. We invite our partners, customers, and stakeholders to look beyond our heritage and focus on the journey we are shaping today. Our foundations are strong, our presence is global, our people are committed, and our intent is clear: to create enduring value that connects industries, societies, and generations.