Banking & Business Review Jul 09

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Vol. VI. No. 43 July-August 2009

Editor’s note

Editor K Raveendran

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consulting Editor Matein Khalid



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Publisher & Managing Director Sankaranarayanan

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Director Finance Anandi Ramachandran

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GENERAL MANAGER Radhika Natu

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Editorial Staff Writer Ambily Vijaykumar

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Contributing Editors Anand Vardhan Linda Benbow Vanit Sethi Manju Ramanan

[email protected] [email protected] [email protected]

DESIGN Creative Director Harikumar PB

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Designer Ujwala Ranade

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Sales and Marketing Product Manager Vijayn G

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ACCOUNTS Biju varghese [email protected] Circulation Supervisors Ibrahim A. Hameed Saleem K U

Life must go on

W

hatever happens, life must go on. That’s what life in this world is all about.

After a period of doubt and uncertainty, companies and businesses have realized that they cannot just sit back and wait for the situation to turn in their favour. Crisis or no crisis, they have to work their way up so that they can remain in contention and hope for better things to happen. Thankfully, local businesses have shown a tendency to come out of their shell and upgrade their responses to the challenges of the situation. And they have succeeded to a large extent. Every shop, every establishment is earnestly trying to rediscover itself so as to draw from whatever strength it has. Of course, there have been adjustments in the price at which goods and services are being sold. At the same time, it is not price cuts alone that have shaped up the new approach. Those who have the confidence in their products and services are not afraid to tout their positives and assert their rightful places in the marketplace. Many more innovative ideas have come up to make the overall package an irresistible deal. All this stem from the firm conviction that there is value for money in what is being offered. What is most important is that the response is producing results. And that’s certainly something to cheer about.

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K Raveendran

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P.O. Box 500595, Dubai, UAE. Tel. + 971 4 367 2245, Fax +971 4 367 8613 Website: www.sterlingp.ae Email: [email protected] Overseas offices: India: Anand Vardhan, DII/89, Pandara Road, New Delhi, 110003. Tel: 0091 1 26517981 Bahrain: Sunliz Publications W.L.L, PO BOX 2114, Manama, Kingdom of Bahrain. Tel: 00973 17276682

CONTENTS 14 9 COVER STORY

CORONATION IN THE MARKETPLACE Feelers from banks help ease pressure as customers turn savvier

6 Asset Management

Money market industry refocuses on safety and liquidity 24 Equity

Do buy Dubai, says

Gulf equity markets are up just 1.2 per cent year to date

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July-August 2009

26 Forex

Dollar substitute: How near? Chinese Yuan and Indian Rupee have a long way to go, while the Euro has already disappointed

31 Islamic Finance

France puts building blocks New taxation guidelines to treat Islamic finance transactions more fairly

34 Economy

Erosion of GCC credit strengths Fall in global asset valuations has also affected the subsovereign sectors, particularly banks and other financial institutions, says S&P

40 Industry

$375 billion of oil investments 70 per cent of total investment coming from NOCs in Asia and South America

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ROU N

P...ROUNDUP...R U O ND

P... NDU OU

UP...ROUNDUP.. D .R UN

OUNDUP...R OU P...R DU

Dubai Fund to manage crisis resources

T

he institutional Dubai response to the financial crisis has seen the addition of another important step in the launch of Dubai Financial Support Fund. The Fund management, reporting to Dubai’s Supreme Fiscal Committee, is charged with the responsibility to manage the proceeds of the $20 billion bond programme of the Dubai government as well as raise additional resources for supporting various infrastructure and other projects involving government entities. According to Abdulrahman Al Saleh, Director General, Department of Finance, Emirate of Dubai, the Fund will provide loans on a commercial basis to Government and Government-Related Entities (GREs) engaged in projects deemed to be of strategic and developmental importance to Dubai. Each application for support will be assessed against predetermined criteria to ensure the funds are allocated efficiently and in accordance with Dubai’s long-term growth strategy, he said. The Support Fund is an independent legal entity which is being established with the specific purpose of providing financial support and liquidity to Government and Government-Related Entities undertaking projects of strategic importance within Dubai that contribute towards the overall economic development of the Emirate. The Fund is authorised to invest in, hold and manage debt instruments on behalf of the Government of Dubai, to collect loan repayments and it may also

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re-invest these revenues, he said. Furthermore, the Fund will provide loans and credit facilities on a commercial basis to Government and GREs which meet SFC-approved criteria. As with all other commercial loans, the Support Fund will not disclose the names of the recipient entities. Each entity will decide whether or not to release details of its support, he disclosed. The Support Fund can issue financial instruments, including bonds and sukuks, inside and outside the Emirate on behalf of the Government of Dubai, invest in commercial projects, establish investment funds and manage institutions and corporates in order to provide liquidity for strategic projects of entities applying for funds. The Fund can also acquire partial or whole stakes in institutions and companies that are deemed to be in line with the overall strategic objectives of establishing it. The Fund’s financial resources come from the first $10 billion tranche of the $20 billion- bond programme launched earlier this year: The fund will use revenues generated from issuing loans and investing its capital and assets, revenues generated from the issuing bills, bonds and sukuks in addition to other resources provided by the Government to achieve its goals. Entities that have already received funds from the first tranche from the Government will have their loans transferred to the Support Fund. The Support Fund’s Board will be responsible for establishing general policy for the Fund and its subsidiaries and defining its projects and

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programmes, obtaining loans and financing, establishing institutions, companies, commercial projects and subsidiaries and buying and selling assets and equities. It will also be responsible for recommending criteria for applicants requesting loans and proposing suitable applicants in the form of strategic projects or companies and recommending them to SFC. The criteria depend on the strategic importance of the projects and applicant entities and their role in sustaining the Emirate’s economy on the long term. It will also adopt financial, administrative and technical regulations and submit them to the SFC for approval. The Dubai Supreme Fiscal Committee was established in October 2007 and has overall responsibility for overseeing Dubai’s fiscal policies. The SFC will review and approve the loan criteria needed to grant the financial support to government entities, strategic projects and GRE’s in the emirate. It will also appraise applications recommended by the Fund’s Board, and determine the size and terms of each loan and the nature of the related securities and guarantees. The SFC is chaired by Sheikh Ahmed bin Saeed Al Maktoum with Mohammed Al Shaibani, Deputy Chairman of the SFC and Chief Executive Officer of Investment Corporation of Dubai; Abdulrahman Al Saleh, Director General of the Dubai Department of Finance; Abdulaziz Al Muhairi, Managing Director of Investment Corporation of Dubai; and Dr Omar Bin Sulaiman, Governor of Dubai International Financial Centre, as members.

Exposure ‘manageable’: S&P

S

tandard & Poor’s Ratings Services has found the exposure to the Saad and Algosaibi groups of 30 commercial banks it rates in Gulf Cooperation Council (GCC) countries to be significant but manageable. The two prominent Saudi Arabian groups recently ran into severe and unexpected difficulties and have entered debt restructuring discussions with their respective creditors. “Total exposure net of tangible collateral to the two groups is significant but manageable for sampled rated GCC banks,” said Standard & Poor’s credit analyst Goeksenin Karagoez. “Information related to each individual Gulf bank’s exposure is confidential--and as such can not be disclosed by Standard & Poor’s--but our survey enabled us to arrive at various opinions,” the report said. According to S&P, exposure to the groups varies significantly among the sampled GCC rated banks, from no exposure to net exposure of more than 20 per cent of a few banks’ adjusted total equity. Surveyed banks in Saudi Arabia and the United Arab Emirates represent almost two-thirds of the total net exposure of the sampled banks, it said. “GCC rated banks in the sample have taken what appears to be material levels of tangible collateral, in the form of cash and listed shares, against these loans, which covers about 30 per cent of their gross exposure. “Syndicated loans, sukuk, and working capital loans accounted for a large portion of the debt owed to GCC rated banks. From the data, these exposures appear to be mainly to nonbank entities of the groups. Noncash exposure (mainly through letters of credit) forms the rest of the exposure,” the report said. As part of its surveillance on rated bank credits, Standard & Poor’s receives detailed information on the banks’ largest exposures. The Saad and Algosaibi restructuring discussions, in its view, suggest that high levels of concentration within GCC banks’ loan portfolios create significant credit risks for these banks, mitigated by GCC banks’ high earnings capacity, good capitalization, and high level of loan loss reserves. Standard & Poor’s believes that it is premature to assess the level of ultimate losses that creditors will face on their exposure to these two groups. “We anticipate that only a few banks are going to allocate provisions against these exposures in the second quarter of 2009,” S&P said.

Pension plan for Indians

I

CICI Prudential Life Insurance Company Limited announced the launch of LifeStage Assure Pension for the non-resident Indians in the UAE. LifeStage Assure Pension is a market linked pension plan that assures guaranteed additions of up to 200 per cent of their first year premium, giving investors an opportunity to accumulate money for their retirement kitty. Anup Rau, Senior Vice President & Head - Sales, ICICI Prudential Life Insurance, says the plan provides consumers a platform to ‘save systematically towards a financially secured retired life’. With average life expectancy advancing into the late 70s and significant number of people expected to live into their 90s, there is a great need to save for life post retirement, he points out, citing research findings that a very few Indians are saving or have saved enough money to live through their retirement even though everyone knows that it is imperative to secure one’s old age needs to lead a comfortable retirement life. Saving towards building a retirement kitty also becomes critical for individuals as more than 96 per cent of India’s workforce has no formal mandated retirement provisions, he said. “Research has shown that both life expectancy as well as cost of living are increasing. This simply means that we are living longer and after our retirement everything around us will be more costly than what it is today. In order to have a financially secure retired life, it is essential that we start saving from today,” he said. The main features of the plan include ‘guaranteed additions of up to 200 per cent’ of first year premium, additional bonus units from 6th policy year onwards, provision of liquidity through partial withdrawals and death benefit of the assured sum along with the fund value. The plan can be started with a minimum premium of approximately Dh1125 at current exchange rates, with policy terms from 15 years to 62 years. The minimum entry age is 18 years and the maximum 70 years.

BANKING BANKINGAND ANDBUSINESS BUSINESSREVIEW REVIEW

July-August July-August2009 2009 55

TY APROPER SSE T MANAGEMENT

Money market industry refocuses on safety and liquidity

MMFs are considered one of the best new financial products of the last half century By Karen Dunn Kelley

I

nvestors have historically treated all money market funds (MMFs) as commodities, viewing everyone as using the same processes and investment philosophies since the industry started in the 1970s. But last

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year’s market panic has shown that all money funds aren’t created equal. Investors are refocusing on the reason these funds were created in the first place - to provide a safe, liquid place to invest short-term cash. The industry

July-August 2009

is doing the same, and has introduced recommendations intended to boost safety, liquidity and yield, in that order. MMFs play a crucial role in providing financing for individuals, busi-

nesses and governments in our economy. For example, money funds are the source of funding behind bridge projects, small business loans, credit cards and car loans. Financing would be more expensive and less efficient without money funds. MMFs are mutual funds that hold short-term securities such as US Treasuries, certificates of deposit, municipal securities, highly rated commercial paper and other liquid securities. Before last September, they were not federally insured like their bank cousins, money market deposit accounts. MMFs had been considered relatively low risk compared with other asset classes because MMFs have a shorter maturity schedule, invest in higher-quality assets and have greater liquidity. MMFs are considered one of the best new financial products of the last half century. They are also considered a regulatory success story since the Securities and Exchange Commission

(SEC) started regulating them under the Investment Company Act of 1940. After the change was adopted in 1983, the industry grew from US$180 billion in assets to nearly US$3.8 trillion in December 2008, with almost 2,000 money funds in operation. Since the start of the MMF industry, only two funds ‘broke the buck’ - or saw the value of their assets fall below the dollar-for-dollar level needed to fully repay investors - compared with 36 bank failures through 27 May, 2009. The first US money fund - the Reserve Primary Fund - was established in 1970 and grew to more than US$60bn before breaking the buck in September 2008 because of its holdings in now-bankrupt Lehman Brothers. MMF liquidity dried up as investors worried that other funds held similar securities. Fearful of the cascading effects, the government stepped in with programmes to help, including a temporary money-market guarantee pro-

gramme. The programme is set to expire on 18 September 2009, after several extensions to give MMF managers time to establish tougher standards.

Strengthening the model The Investment Company Institute (ICI), the national association of US investment companies, formed a Money Market working group to develop recommendations backing new regulatory and oversight standards. “The working group’s recommendations comprehensively strengthen money market funds by addressing liquidity, maturity, credit quality, client concentration and disclosure,” Invesco said in an 18 March 2009 letter to clients. “These inclusive recommendations are designed to protect investors first and foremost while preserving the crucial role money market mutual funds play in providing financing for individuals, businesses and govern-

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ments in our economy. We are pleased to see that the ICI’s proposals are consistent with our conservative investment philosophy, which focuses on our commitment to provide safety, liquidity, and yield - in that order - to our money market clients.” Specifically, we call attention to the following proposals: • Liquidity: Enhance portfolio liquidity by requiring daily (5 per cent) and weekly (20 per cent) liquidity standards and regular stress testing. • Portfolio maturity: a) Restrict limits on the weighted average maturity of portfolios from 90 days to 75 days, and b) introduce a new portfolio maturity limit to capture spread risk within portfolios. • Credit: a) Prohibit investments in second tier securities, b) require the creation of a new products committee to assess appropriateness of new securities in the marketplace within the context of money market funds, and c) encourage advisors to follow industry ‘best practices’ for determining minimal credit risk. • Client concentration: a) Improve shareholder due diligence procedures, and b) require funds to provide monthly disclosure about client concentration levels. • Portfolio disclosure: Require money market funds to provide monthly website disclosure of portfolio holdings. We believe these proposed steps will provide important additional protections for individuals and institutions. Invesco Aim, the 12th-largest US money fund complex by assets, has maintained a net asset value (NAV) of $1.00 per share. It has avoided any credit issues, and witnessed a rise in assets, from about US$82 billion as of 31 December, 2008, to US$92 billion as of 30 April, 2009 - outpacing the industry in year-to-date percentage growth.

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Many of ICI’s proposed changes have been implemented at Invesco since the firm opened in 1980, at a time when risk was not recognised as much in the market and many money funds tried to stand out by stretching for yield. Money funds that experienced problems were often structured so that the credit team reported to portfolio managers whose compensation was determined by performance. The company always kept portfolio management and credit on a separate-butequal basis. The focus is on a minimal credit risk, with a bottom-up approach concentrating on safety and liquidity. As a result, Invesco did not own any securities downgraded below Tier 1 while held in the portfolio during this credit crisis. Its credit process helped the company avoid many of the troubled securities, such as extendable asset-backed commercial paper, defaulted structured investment vehicles (SIVs) and Lehman Brothers. More than 98 per cent of its money

market assets are in institutional funds - most with AAA ratings from the three large rating agencies. It is critical for firms to ‘know your client’ and to talk often with customers, especially their biggest ones, to un-

July-August 2009

The Investment Company Institute (ICI), the national association of US investment companies, formed a Money Market working group to develop recommendations backing new regulatory and oversight standards derstand their cash flows and tendency to move money in and out of funds. Invesco strongly believes the ICI’s recommendations are important for the continued vibrancy of the money mar-

ket fund industry and the health of the national economy. Karen Dunn Kelley is chief executive officer of Invesco Worldwide Fixed Income

C OV ER STORY

Coronation

In the marketplace Feelers from banks help ease pressure as customers turn savvier By Ambily Vijaykumar BANKING AND BUSINESS REVIEW

July-August 2009 9

It’s not just in the banking sector; customer retention and satisfaction are being looked at with renewed vigour by businesses across all sectors

ply seemed inexhaustible. Come 2009, and all that got reversed in no time and establishments were suddenly facing closure, with job losses being reported left, right and centre. The general mood was one of withdrawal and gloom. Worse still, the prevailing sense of uncertainty showed no signs of abating. But slowly, everyone seems to be taking things in stride. The last few weeks, particularly, have raised hopes that the ‘worst is over’. “It might be too early to talk about the appearance of the green shoots of recovery, but the ice-melting has begun. The financial markets are signalling in the past two months that the base building for a recoup has been successful. We are looking at this

phase as the peak of the contraction,” says Lim Say Boon, Chief Investment Strategist for Standard Chartered Bank, Group Wealth Management and Private Bank. The banking sector, which is one of the principal indicators of the health of an economy, is holding out a ray of hope, with many of them in the UAE registering first quarter profits this year. An easing of lending criteria that were tightened in the wake of rampant credit defaults as well as liquidity crunch is beginning to bring back a ‘semblance of stability’ in the market. Recovery signals have sent businesses into action mode. With an already lean market, the competition to win customers has only left the end-users spoilt for choice. The initial shock

A

credit card customer with an international bank in Dubai recently got a pleasant surprise: a gift voucher that the bank had sent across to her in acknowledgement of timely repayments of her credit card dues. The customer, however, could see it only as a ploy by the bank to “impress her so that she does not close her credit card account with them.” It’s not just in the banking sector; customer retention and satisfaction are being looked at with renewed vigour by businesses across all sectors. When a leading bottled-water manufacturer in the UAE gave out prize money worth one and a half million dirhams recently as part of its promotional activity, it was being cited as typical of the scramble for a shrinking share of the market pie. The difficult market situation is of course a direct offshoot of the global economic crisis, an antithesis to the first half of 2008, which had business circles in a delirious euphoria, declaring there will never be a year like that again. Profit records were being broken one after the other as businesses rode on customer appetite that breached new heights in early 2008. Salaries skyrocketed, there was a brand boom, properties were bought and flipped overnight for a profit and money sup-

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The banking sector, which is one of the principal indicators of the health of an economy, is holding out a ray of hope, with many of them in the UAE registering first quarter profits this year

July-August 2009

of the downturn has now given way to a flood of offers and promotions. Air miles, gift vouchers, free holidays, sales, you name it you have it on the list. A leading newspaper operating from Abu Dhabi is giving away free gifts ranging from fun trips to cultural events and high-end dining, along with grand prizes of world trips for its one year subscription. Radio stations are abuzz with bonanzas for listeners for answering questions or participating in contests. ‘Sale’ and ‘Discount’ boards have sprung up in every nook and cranny of the UAE, with discount rates touching 80 per cent in some cases. ‘Money back’ offers for purchases at retail stores have also become common; which means for every purchase at a store for a certain amount, the customer gets gift vouchers for the same amount. Apart from the conventional offers, business establishments are also thinking out of the box to promote themselves in a market condition that has been unprecedented in the UAE. One of the immediate fallouts of the slump was job-losses. With the real estate sector crashing, the banking and auto sectors too froze. But now with the ‘ice’ slowly ‘thawing’, the auto sector is preparing to kick-start again. The immediate reaction from the sector has been to lower eligibility criteria for buying a vehicle that had become inaccessible to most as the high levels of insecurity in the job market was the last thing the industry could put up with. But the UAE automobile distributors are second to none in terms of creativity. One of the leading auto distributors has come up with a ‘Redundancy Insurance Product’ for those customers who have the money to buy a car but have that lingering doubt about whether they are safely placed in their current job positions. “If you are in the unfortunate position of losing your job, then this insurance product enables you to get back 15 per cent of the total invoice value of the car. This means you can pay your monthly instalments while you search for another job or even if you choose

Apart from the conventional offers, business establishments are also thinking out of the box to promote themselves in a market condition that has been unprecedented in the UAE to sell your car, this product enables you to do that without any hassle,” explains Hugh Dickerson, General Manager for Sales and Marketing, Al Futtaim Motors. A competitor launched its ‘Unbeatable 5’ promotion recently with an offer of zero down payment, free insurance and two-year maintenance and reduced price and interest rates. “Customer loyalty is fading and that

has become a huge challenge for the auto industry. They have also become very demanding. They don’t want to make the down payment, they are not happy with interest rates, they want free insurance and want to pay over a longer time and want instant approval. They want the best quality at the lowest price along with the best services and this is the challenge we are dealing with,” says Michel Ayat, CEO of Ara-

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bian Automobiles. People are beginning to apply the ‘buy one get one free’ concept to the high-end durable products as well. But businesses say they cannot afford to be charitable at a time when controlling costs assumes as much significance as attracting footfall. “Anyone can give away merchandise. We are not in the business of giving away; we are here for making money. So we give it away when it is chosen and take it back when it is not,” says Tom Miles, Director of Shopping Centres at Al Futtaim Group Real Estate that runs the Dubai Festival City. That said shoppers have also become more cautious when it comes to spending money. At a recently hosted ‘tent sale’ at the Festival City in Dubai, the organisers noticed that people were not blindly emptying their pockets because there was a ‘sale’ on. Savvy customers were cross-checking prices of products up for sale over their mobiles and deciding whether it was a good bargain. Gauging the mood, DFC cut down prices and the sale was a success. Retailers are of the opinion that organising events like ‘door busters’ sets the momentum for sales for the rest of the day. Just like Hollywood that did good business during the Great Depression and is also said to be doing well now, retail is viewed by many as a therapy. “Customers are looking for more for less value. They want a means to distract themselves from the fear of losing their job or paying for rents and retail like entertainment is seen as one of the means to achieve it. Experiential retail is one way forward for the retail sector in times like these when customers want a break from the mundane and want to see value in their expenses,” explains Tom Miles. Shopping malls are leading the way with the ‘spend and win’ offers that are becoming the flavour of the season. Adding value to the retail experience are also credit cards that many retailers say are finding more favour with shoppers who are ‘hesitant’ to shell out cash. The trend has forced banks to take note of the credit cards business, which many say “has growth potential

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At a recently hosted ‘tent sale’ at the Festival City in Dubai, the organisers noticed that people were not blindly emptying their pockets because there was a ‘sale’ on in these times”, provided the approach is right. Card usage is another interesting aspect that banks have analysed to design offers that place them in a position to take advantage of areas where customer spending is optimum. Banks say they have noted a shift from lifestyle related spends to spend on basic requirements.

July-August 2009

“What it means for us is that customers are going to a lower level restaurant rather than real fine and dine, instead of looking at deals in hotels, they are looking at deals in Carrefour, Spinney’s and Choithram,” says Sanjoy Sen, Citibank’s Consumer Banking Head Middle East Region. The zero per cent Equal Payment Plan (EPP) is also being promoted by

the bank on use of its credit card for buying electronics. The plan enables the user to erase interest payment on instalments as well as any fine for deferred payments. Tie-ups with airlines to award customers with free air miles while using their credit cards have also turned out to be a roaring success for several lenders. Customer engagement has jumped several notches higher on the priority list for banks, which believe losses have been suffered across the board, but cutting off communication in troubled times is not the right approach. Existing customers are being educated on the manner in which they can invest while balancing their risk on returns. Restructuring of loans is being done to enable genuine customers to either increase the tenure of their payments or get a moratorium. Appetite for high risk products among investors has reduced considerably, with the market witnessing an unprecedented erosion of wealth. Banks are employing scientific tools to profile their customers and distinguish between a high risk and low risk individual. Doing that enables banks to help their high risk customers do a portfolio diversification to dilute their risk. “It is very important to bring value to our customer’s life in every aspect of retail banking. Whether it is cards, loans, account opening, wealth management or SMEs, we are now reaching out to our clients and extending all sorts of facilities like trading facilities, letters of credit and bills, because this is the time when banks have pulled off the oxygen cylinder and even a good customer is suffering as a result,” explains Sanjoy Sen. A mood of caution pervades the market and this has forced various businesses to join hands. Malls, banks, auto distributors, retailers, travel operators, hotels all-are sensing the need to ‘work in tandem’ rather than work against each other in order to build customer base. With international tourists being an

important part of Dubai’s business target, it has also become imperative for businesses to stop functioning in isolation. Faced with today’s informed and hesitant customer, businesses are relieved that feelers from the banking sector are helping in easing the pressure on them. “These days, we are getting many calls and messages from various banks on approved loans by phone, mortgage, and balance transfer of credit cards etc. These are good indicators and will definitely help in spreading a sense of stability in the market,” says Eisa Adam Ibrahim, General Manager, BurJuman Centre. There is also optimism in the market about customer flow for various businesses, because many believe customers have adjusted to new realities and have begun realigning their expenses accordingly. For instance, a person with a reduced salary has not

stopped shopping but has begun shopping at places and in a manner that will suit his or her lower budget. Whether the requirements are everyday needs or desires, the market firmly believes that the period of panic is over. “You have to bow down before you balance. I think that is what we will see. It is the cyclical nature of the economy, which most economies across the world are, no matter what. There is an upside and then a downside and in Dubai that every 12 years. The hope is for a prolonged growth and then a correction and then another prolonged growth up,” says Tom Miles, Director of Shopping Centres, Al Futtaim Group Real Estate. The correction has helped consolidate the strong players in the market and wiped out the weak. In the bargain, it is the end user who is benefiting from the clearing of the maze. The old adage ‘Customer is king’ has been re-written all over again.

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Focus on needs, not desires

Strategies being reoriented to deal with reality, says Citibank official

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ustomer preferences are changing all the time. Especially in times like these, the changes are prominent and trend-setting. Citibank UAE has taken cue from one such trend to shift the focus of its retail business. Backed by its analytical team, the bank says it has by means of scientific tools spotted the changes in credit card usage of its customers during the recession to come up with offers and promotions to add to its customer base. “The credit card is a very important value tool for the customer and we are trying to be where the customer wants to spend money,” says Sanjoy Sen, Consumer Banking head for Citibank’s Middle East Region. The shift in customer spending is from lifestyle related goods to basic necessities. What that means for the bank is that people are going to smaller restaurants rather than real fine

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“The credit card is a very important value tool for the customer and we are trying to be where the customer wants to spend money” Sanjoy Sen

July-August 2009

and dine, they prefer not to spend on high end brands but on goods that give them value for money. “Instead of looking at deals in hotels, people are looking for deals at outlets like Carrefour, Spinneys or Choithram. The focus is not on desires, but needs now,” says Sanjoy Sen. The result has been partnerships and tieups with various businesses to facilitate and revive customer spending. Citibank’s tie up with Virgin stores enables the customer to get specific discounts on purchases at the store. The bank’s customers can also avail of exclusive discounts at about 100 midmarket restaurants. Free air miles have been a smash hit and Citibank has realised the potential in it while cobranding with Emirates Airlines. “The customer just loves it and it has been a great partnership. But we have also set up a travel pass. For those customers who cannot fly Emirates because of exclusivity, this travel pass helps them get specific air miles and reduce ticket prices and also get free tickets on Egyptian Air or Jet Airways on their home destinations. So we are trying to bring in value here,” informs Sanjoy. Another deal is the zero per cent Equal Payment Plan or EPP. Thanks to the tie-up with a leading electronic store, Citibank customers can purchase goods with their credit card without having to pay any interest on the instalment or pay a fine on deferred payment. Reorienting its focus has not meant that the bank’s high value clients are being neglected. Golfing events are being organised at clubs in the UAE, where clients get tips to improve their skills from high profile coaches. “We have recently started a concept wherein on the birthdays of our high net worth individuals, we send them a specifically designed booklet. Our customers value it a lot. It has discount coupons

Reality of a shrinking market is staring every lender in the face, which necessitates the need to offer genuine value to the fewer ‘good customers’ who will be left in the bargain at hundred plus outlets across the UAE which include 50 per cent discounts at select restaurants, ‘buy one get one free entry’ at the Game Park at the Atlantis and many like these,” informs Sanjoy Sen. An ‘emotional’ touch to banking is what is being practiced to ease the effects of the economic crisis. Lessons from the past have been learnt when banks also suffered because of the mad rush for customer attention. A lack of credit bureaus resulted in customers getting over-leveraged with several

banks trying to move in to get a market share and customers ending up with higher credit limits. Citibank is now working with its customers to educate them on financial planning. They are engaging their ‘valued customers’ to ensure that if they take credit, they spend it wisely. “If they spend more, then we earn more as a bank, and that is a reality. But we don’t want them to do that. We don’t want to tip them, so we are working with our customers to make sure they are careful with their credit spending,”

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says Sanjoy. Reality of a shrinking market is staring every lender in the face, which necessitates the need to offer genuine value to the fewer ‘good customers’ who will be left in the bargain. Credit cards that are seen as a convenience tool by users also need to offer value to the user for it to become a profitable business for the lender. Previous levels of growth though are not expected to return soon because of unexpected levels of credit defaults. Hence Citibank is taking up the responsibility of a regulator by proactively reducing the lines of some of its customers, who they think are prone to default. Skip models help the bank determine a customer’s spending nature. The bank is able to be vigilant of a possible default through a customer’s credit card behaviour. “Suppose you are a person using your credit card limits at 45 per cent for the past five years, and suddenly I see it has gone up to 90 per cent, so I know something is different and so the bank reaches out to you and works things out with you,” elaborates Sanjoy Sen. Delinquencies have not been stemmed and that increases the risk as far as banks are concerned. “It is not that the bank has given the money to someone who does not have the ability to pay back, it is just that the person has been using the credit card for the past eight years and one day loses his job and goes with the money,” adds Sanjoy. Customer engagement is being seen with renewed interest in times when loyalty has become a luxury. Piling redundancies have raised a question on the customers’ ability to repay loans, forcing banks to rethink their strategy with regard to debt collection. Citibank says it has been closely working with its customers to help them restructure their loans. Either their loan period is being increased or they are being given a moratorium in cases where ‘genuine customers’ are faced with job-loss. Keeping customer capacity and appetite in mind, the bank has come up

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with its competitive interest rate time deposit programme. “We offered interest rates as high as 6.5 to 7 per cent both on the dollar and dirham rate currencies. It is one of the highest in the market. It helped out customers to get good returns even while keeping their capital protected without taking risks,” informs Sanjoy. Consumer appetite for high risk investment products has dropped drastically, with uncertainty prevailing in the equity and bond markets. Citibank is now designing several capital guaranteed structures for its consumers, who have the capital but do not wish to take risks. The bank says that it is not asking its customers to blindly invest in its products. Customer education has also become important at a time when banks do not want to entirely take the onus if the investment goes bad. “We are educating our customers on how to invest in a manner that protects your capital because people have seen erosion of wealth like nobody’s business. That is why we have found the need to handhold the customer,” argues Sanjoy. Cutting off communication chan-

July-August 2009

nels at a time when the customer needs help is not the method that Citi says it employs. The lender says it believes in facing a situation where the customer who has invested in Citi’s products has lost money. “We play the role of distributors of several funds that have proved to be a loss making proposition for many of our customers. But there is no point running away from reality. So we handhold our customers and guide them on how to restack their portfolios so that they can build it up again. The reality is the customers know what they are entering into,” says Sanjoy. The bank divides its customer base into the high risk and the low risk categories while helping them decide the kind of investments they should be making so that they balance their risk in their portfolios. Emphasis is also being laid on financing SMEs that have been meted out a harsh treatment during the financial crisis. Citibank says the catch is in deciding which SME to lend money. With the market sending feelers of a slow recovery, Citi says the key to riding the storm lies in customer satisfaction and constant communication. AV

Smart thinking and prompt action Hugh Dickerson

T

he auto-sector received a severe jolt when job losses became rampant in the UAE market since the last quarter of 2008. Abandoned cars piled up at the Dubai airport, leaving behind unpaid loans and suffering banks. When lenders pulled the plug and raised the minimum salary limits for auto-loans, that almost rung the deathknell for the auto sector, with a large part of the customer base being wiped off the lending game. Now with ‘revival’ theories floating, the auto sector is re-orienting itself to meet new market expectations that are still plagued by some degree of uncertainty. A plethora of offers and promo-

Al Futtaim says its offers guarantee value to customers tions have come to define various businesses since the recession sank its teeth into the economy. The global auto industry that wrote the obituary of mighty brands also saw its fortunes sinking in the UAE market. But some smart thinking and prompt action is being employed by the sector to get back customers. On offer are free insurance, servicing and warranty. Adding a whole new dimension to the auto business in these times is Al Futtaim Motors’ free Redundancy Insurance Cover: a move being viewed as a confidence building measure in a market that is yet to get back on its feet. “If you are employed and you buy a car at our dealership, this insurance

product will mean that if you are in the unfortunate position of being made redundant, then you will get back 15 per cent of the total invoice value of your purchase that will enable you to either pay the EMIs while you search for another job, or it helps you to even sell your car,” says Hugh Dickerson, General Manager, Sales and Marketing at Al Futtaim Motors. This new product is in addition to the dealer’s already existing one-year insurance cover, two-year free servicing and three-year warranty. Boosting consumer confidence is also the reduction of eligibility criteria back to 2008 standards at Dh3,000. Al Futtaim Motors has Toyota, Honda, Volvo, Chrysler, Jeep, and

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Reality of a shrinking market is staring every lender in the face, which necessitates the need to offer genuine value to the fewer ‘good customers’ who will be left in the bargain

Dodge under its umbrella and it also represents Automall, the group’s used car division. Have these new offers also been stretched to bring down the price of the cars? “We have an obligation to our existing customers to maintain price stability in the market. It is vital to bring value to our customers. It is offering relevant consumer offers that help them purchase the car. The redundancy cover will be relevant to a certain section of the market, the free insurance to another section; equally the servicing offer helps people reduce the cost of the ownership of the car further. By not reducing the cost of the car, I am also trying to maintain the residual cost of the vehicle thereby maintaining the whole cost of the car as much as possible,” elaborates Dickerson. With consumer demand for ‘value for money’ at an all-time high, Al Futtaim believes its offers have so far guaranteed customers the value that they are looking for. They are also confident that sales figures reflect that the group’s ability to deliver on customer requirements that have undergone

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a sea-change in the changed market conditions. Despite maintaining the value of the vehicle, Al Futtaim claims its sales have grown during the first quarter of this year. Though there is a clear drop from last year, “that goes without saying because the market conditions were different”, the group claims that it still remain a market leader in the business. The distributor says it has also noticed a level of stability in sales rate and also the number of people coming into showrooms. Customer inflow into showrooms in the last few months has been encouraging, adding credence to claims of being the ‘clear leaders’ in the market place. This has given the group reasons to be ‘cautiously optimistic’ that things perhaps won’t get worse from here. Confidence is also high because of the good performance of the business cutting across all segments. Consumer confidence is intact with both the luxury as well as passenger segments doing well. Marketing itself as the ‘smart choice’ in these times, Al Futtaim says the reason why its cars were good to

July-August 2009

buy last year holds true even now. The group has re-modelled itself to deliver value for money to its customers from the day they buy a car to the day they dispose it. “The purchase is made easy by the offers we have made, the pricing is stable and offers great value for money. The redundancy cover, the low financing rate, free maintenance and the reliability of the vehicle make the cost of running our car much lower as compared to few of our competitors. And at the end of it, the good residual value of the car ensures the customers get what they desire,” states Dickerson. Though the banking sector has been in a state of panic since the recession set in, Al Futtaim says that because of the faith that the banking partners have reposed, the auto distributor has been able to come up with unique firsts in terms of offers into the market. The mantra for business has changed with the upheavals in the global economy, but Al Futtaim believes that at the heart of any business activity should lie ‘honest and true’ intentions and a customer-centric approach, no matter what the economic climate is. AV

Michel Ayat,

‘Super heroes’ help Arabian Automobiles remain ‘Unbeatable’

Thinking out of the box D

r Zero, Repairo, Reducto, Interesta, Insuro. Sound like characters straight out of a Walt Disney Production, but these are the new faces

of Arabian Automobiles’ marketing campaign launched in May. Branded the ‘Unbeatable 5’, the campaign stands testimony to the lengths that businesses are going to woo customers

who have become vary of big investments. Designed using five distinct-looking characters that look right out of a Hollywood animation film, the campaign

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drives home the offers that Arabian Automobiles is making to its customers at a time when the global auto industry is struggling to revive. The distributor calls these characters ‘super heroes’, with each one representing an offer on a car purchase. Consistent campaigns have created a keen interest for the promotion, which the distributor says ‘has generated customer enquiries’. How much of that translates into purchases will take some time to

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ascertain. “It took us two weeks in January this year to realise what was happening and the first thing we did was to rework the normal strategies to suit the changed market conditions. The earlier strategies could not be applied anymore since they had lost relevance,” explains Michel Ayat, CEO, Arabian Automobiles. Changed strategies have meant better deals and impressive offers for cus-

July-August 2009

tomers. The ‘Unbeatable 5’ includes free insurance, free two year service maintenance, zero per cent down payment, low interest rates and ‘unbeatable’ retail prices. Depending on the vehicle, the distributor says the combination deal can add up to a total saving of Dh25,000 off the typical retail price. “By thinking out of the box, we came up with this unconventional ‘Unbeatable 5’ campaign, which is light-hearted yet has a very serious sub message that we cannot be beaten for value in the Dubai and Northern Emirates car market,” states Michel Ayat. The latest promotion is a follow-up to a previous ‘Big 5’ offer, launched a few months back and provided free rust-proofing, free Salik tag, service maintenance contract for two years, and a 90-day deferred payment facility as its features. ‘Unbeatable 5’ has been designed keeping in mind customer requirements considering that banks are yet to completely relax lending norms. “We have taken into account customer feedback and we believe we have put together the most attractive deal in the market right now,” says Michel Ayat. Demanding customers are now looking for a combination of attractive pricing and added value to keep the vehicle’s running costs low. The moves have been necessitated to regain customer loyalty which is constantly shifting during an economic crisis. With auto giants in the US biting the dust, customers are also waiting for prices of US-made cars to further dip before they make the purchase. That is also being seen as one of the reasons why customers are not hurrying in to purchase a new car. “The general impression is that the American manufacturers will close down and their prices will be halved. Customers are even hoping for a ‘buy one get one free’ scenario with vehi-

cles,” laments Michel Ayat. Customers are also seeking the best quality for the lowest price, coupled with the best delivery, and this has become a challenge for most businesses. Add to it the lack of security with regard to jobs and most people are willing to defer their purchase plans in the hope that they will be able to land a better bargain later once prices slip further. These are the aspects that auto distributors are taking into account while designing their promotional activities. Pressure on operating profit is another challenge that the auto sector has to deal with. Prospective buyers are laying down the ground rules for payment, which is forcing distributors to innovate to accommodate the requirements. “People have the choice of going to another dealer and in times like these when everyone is competing to get a share of the shrinking market, we cannot afford to lose customers,” argues Michel Ayat.

Waiting in line to poach customers are competitors, who offer equally exciting deals. Businesses are slowly tuning themselves to the new spending patterns of customers. A person who used to earn in six figures five months back has returned to earning five figures and has therefore adjusted his or her expenses accordingly. They have not stopped purchasing, but they are looking for deals to suit their new budgets. This is the catch and Arabian Automobiles says its deals are offering that flexibility to customers. Burdened with the phenomenal success of the previous year, the distributor is sharpening its customer service to retain existing customers and offer ‘unmatched services’ to its new ones. Replicating the success of the previous year is an unthinkable proposition at this point, but as Michel Ayat says, “there are many advantages to what is happening today.” Referring to the correction in the market ‘that was required’ Ayat predicts things

will go back to 2006 standards before recovering again. “We have faith in what we have applied in the strategies and campaigns ,and the market will get back to normal in terms of business by the third or fourth quarter of this year,” Ayat states. Rather than focusing on growth this year, Arabian Automobiles says it is committed to consolidation in a market that is slowly stabilising. AV

“People have the choice of going to another dealer and in times like these when everyone is competing to get a share of the shrinking market, we cannot afford to lose customers”

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Looking beyond sales and discounts H Dubai Festival City introduces ‘experiential retail’

“If shoppers go to a mall and there is nothing else but only stores selling goods then it is not exciting. But if they come and they are able to experience something different and entertaining, then it is a success”

Tom Miles

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July-August 2009

ollywood’s success during the Great Depression of the 1930s has been attributed to the need among people to ‘escape from reality’. That theory still holds true, with the entertainment industry doing well even during these recessionary times. Taking that argument forward to cover the retail industry is Tom Miles, Director of Shopping Centres, Al Futtaim Group Real Estate that runs Dubai Festival City (DFC). “Retail is a tonic for many people. They come to a shopping mall and those few hours become their escape from botheration about job loss or school fees etc,” says Miles. Targeting these moments, the Dubai Festival City is promoting itself as a destination like no other. “If shoppers go to a mall and there is nothing else but only stores selling goods then it is not exciting. But if they come and they are able to experience something different and entertaining, then it is a success,” argues Miles. Apart from the usual offers, promotions, deals and discounts, retailers are also striving to revive the concept of ‘experiential retail’. For DFC, that has

been developed as a property with this aspect in mind, operating during the economic crisis has meant looking beyond just sales and discounts. The management feels it is the surprise element at the Festival City that has attracted a loyal customer base, drawn by the concerts and festivals that have become an integral part of their shopping experience. But experience alone might not be sufficient to translate into good business. “Everyone who comes here spends something. There is no denying that the average spend across the world has fallen and so has the conversion rate. Instead of the usual nine to ten people making purchases every time they come here, it has now come down to seven and a half and instead of spending 350 dirhams per trip now they have brought it down to 275 dirhams,” explains Miles. That translates into loss for businesses, which is being compensated by endeavours to increase footfall. It is a challenge is being addressed by events like the ‘tent sale’ for electronics and automotives that was organised recently. The event gave the retailers at the Festival City an opportunity to dig into their stock and make some money on it rather than allowing them to pile up. The ‘tent sale’ saw some 200 cars being sold at a time when people are putting automobile purchases on hold. The electronics sale was also a hit, with DFC succeeding in creating an ‘excitement’ among customers who flocked to buy. The management claims that such has been the success of the event that retailers are demanding a similar one in the near future. Clearing the backroom is not a profitable proposition for businesses that are already faced with a dearth of customers. “Anybody can give away merchandise. We are not in the business of giving away; we are here for making money. So you give

it away when it is chosen and take it back when it is not. The beautiful thing about the sale was that there were some fantastic deals, and that motivated people to buy. They did not necessarily get what they wanted and so ended up buying more things and hence bought full price,” Miles elaborates. Taking a cue from the success of the event, DFC is planning to organise ‘door buster’ sales in which customers get heavy discounts during the first few hours of shopping when the mall opens. The idea behind such sales is to set the tone for business for the rest of the day. Thinning customers has been a serious concern for retailers across the UAE, but DFC says that with a core customer base of Emiratis, they are better placed to withstand the adverse effects of people leaving the country as a result of job losses. “The general consensus in Dubai is that redundancies have stopped and we have reached a core group of people, who will now participate in the rebuilding of the economy. So there is some confidence building happening in these people,” says Miles. Confident about the customer flow into the property, the management is upbeat about the summer months, which it believes will attract more crowds who are looking for sales, discounts, deals and much more. The reason for hope comes from signals of recovery that the market has been sending out; one of the most important among them being advertisements. Miles says that comparing the months of January with now is sufficient to know that people are beginning to shed their early inhibitions and are entering the market and signalling to customers that their businesses are still on a sound footing. Sounding the come-back siren are also customers who might want ‘two for the value of one’, but have adjust-

ed their requirements to a trimmed budget. And the proof of continued customer interest in the DFC, says the management, are the increased sales figures which are up 17.5 per cent as compared to last year considering that 2008 was a very successful year. Festival City plans to optimise its location, its facilities, its activities and the overall experience of shopping to build a loyal inflow that takes ownership of the property and returns every time they plan to shop. AV

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EQUIT Y

Do buy Dubai, says Merrill Lynch

Gulf equity markets are up just 1.2 per cent year to date

G

ulf equity markets are a compelling trading buy for investors looking for laggards, Merrill Lynch has concluded. Emerging markets are up 33 per cent this year and inflows into EM remain strong. By contrast Gulf equity markets are up just 1.2 per cent per year to date and inflows are non-existent. This is what makes Merrill Lynch think Gulf regional stock markets as an attractive proposition. Company analysts point out that Gulf equities have lagged the oil price, the Russia, equity market and EM small cap stocks. Valuations are cheap and foreign ownership once again light. In fact, they consider Dubai as the best trade market and Saudi Ara-

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bia as the best investment market. Analysts say it is hard to find much that has underperformed US banks in past three years. “But Dubai has, thanks to its real estate and oil bust. It’s now cheap, unloved and the combo of oil at less than $60 per barrel and improving credit spreads are powerful drivers, in our view. We believe the best investment case in the region remains Saudi Arabia”. The case for outperformance of Gulf equities relative to EM is based on oil price output, the relatively more costlier Russian market, valuations, investment flows and positioning. Oil prices: Oil prices now exceed $60bbl-good news for the oil-producing Gulf. Merrill Lynch’s commodity strategists now see risks that the

July-August 2009

Another factor cited in favour of Dubai is that Financials constitute 65 per cent of the Dubai market and they are oversold

oil price rises to $75-80 in the next few months. The relative performance of the Gulf markets tends to lag movements in the oil price by three months. So the Gulf markets should outperform in coming months. Russia: Russia has oil; the Gulf has oil. Russian equities are up 67 per cent in 2009; Gulf equities are up one per cent in 2009. Similarly, EM small cap stocks, a group of stocks that like the Gulf are often deemed ‘risky’ and ‘illiquid’ have started to significantly outperform EM large cap stocks in the past month. Gulf equities have room to catch up with the rally in correlated assets such as Russian equities and small cap. Valuation: MSCI GCC (ex Saudi) index trades at a 13 per cent discount to the MSCI EM index on a 12 month trailing basis, and trades at a discount of 26 per cent on a price to book basis. Gulf markets are cheaper than emerging markets. Flows: The Gulf region has experienced significant outflows in recent months as chart 4 shows. But this period of outflows seems to have come to an end. Indeed, outflows in the past four weeks have been the smallest of the year. Positioning: Gulf markets are an out-of-benchmark investment for EM investors. For long only EM funds have been estimated to have a current allocation of 0.3 per cent of assets under management in the Middle East, well below the allocation of 0.8 per cent last October when oil prices were about the same price as today. Explaining its strong case of Dubai, Merrill Lynch argues that it is hard to find much that has underperformed US banks in the past 3 years. But Dubai represents such a scenario. In addition, Dubai has been a big underperformer relative to regional Gulf markets. Dubai equities close to a three year low versus Qatar, admittedly one of the strong-

er macro stories in the region. It further argues that Dubai is the cheapest market in all emerging markets. For example, on a price to book basis it trades at a 56 per cent discount to the MSCI EM index. Relative to Russia, the cheapest MSCI EM country, UAE trades at a 20 per cent discount on a price to book basis. And certainly, UAE has the cheapest financial sector across the asset class. Another factor cited in favour of Dubai is that Financials constitute 65 per cent of the Dubai market and they are oversold. Asian and Latin American bank stocks are currently trading 20 per cent above their 200 day moving average. In contrast financials in Dubai are trading 20 per cent below their 200mda. The catalyst to boost the Dubai financial sector will be further compression in CDS spreads which have narrowed from 700 to 500 basis points in recent months. CDS in Dubai has narrowed far less than in Russia, another reason why Russia has significantly outperformed.

Why Saudi Arabia is the best long term investment Cash: Vast oil reserves; world’s secondlargest oil producer. Size: Saudi Arabia accounts for nearly half of the GCC’s US$1 trillion of GDP and two-thirds of its 37 million population. Diversified: More diversified than many believe: non-oil sector accounting for 70 per cent of growth since 2003. Underleveraged: Saudi Arabia has the region’s second-largest banking sector and a large deposit base in a very underpenetrated market. Underleveraged: Public debt fell from more than 100 per cent of GDP in the ‘90s to 13.5 per cent in 2008; Sovereign Wealth Fund SAMA holds $456 billion of assets. The catalyst: Opening of Saudi equity market to non-GCC investors and eventual inclusion in the MSCI Frontier or Emerging markets index. As access improves, further gains may be expected in the Saudi market, so long as oil prices remain reasonably strong.

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PROPER FORE X TY

Dollar substitute: How near? Chinese yuan and Indian rupee have a long way to go, while the euro has already disappointed 26 BANKING AND BUSINESS REVIEW

July-August 2009

C

urrency markets are veering round to the view that although the flight away from dollar in forex reserve portfolios is continuing apace, the prospects of the Chinese yuan or the Indian rupee emerging as dollar rivals have diminished over the short to medium term. Reserve portfolios are surely less concentrated in US dollar than they have been in the past while cracks have recently emerged in the case for the euro to supplant the USD. Also, confidence in the USD has been shaken by the pursuit of expansionary policies, which are reflected in the recent dollar depreciation. This shows that the outlook for stock diversification out of dollar is delicately balanced, according to Merrill Lynch. Analysts say that lessons from the recent crisis appear to suggest an end to the erosion in the dollar’s share but the responses to the crisis risk another wave of stock diversification dollar selling. “Given the lack of viable alterna-

Analysts say that lessons from the recent crisis appear to suggest an end to the erosion in the dollar’s share but the responses to the crisis risk another wave of stock diversification dollar selling

tives, our central assumption is that the USD’s weight in FX reserves remains stable. This assumption would be at risk should policy credibility erode still further,” a report on the US dollar’s future as reserve currency points out. The report asserts that the possibilities of a substitute currency are yet not in sight in the short to medium term and points out that to attain reserve currency status a currency must not only have a wide area of indigenous usage, but capital and money markets in the home country should be open and free of controls, deep and well developed. Other important determinants cited are confidence in the internal and external value of the currency and the presence of network externalities/inertia. The criteria on capital markets effectively rule out the Chinese yuan and the Indian rupee for now, although this could certainly change on a 20year view, the analysts point out. “The Japanese yen has never ‘achieved’ widespread international use and this looks unlikely in the future as demographics suggest Japan’s economy will shrink in relative and possibly even absolute terms over the decades ahead”. There have been suggestions for comprehensive reform of the international monetary system based on the replacement of credit-based national currencies in FX reserves with a supersovereign reserve currency managed by a global institution. The suggested solution is to expand significantly the use of IMF Special Drawing Rights. It is argued that such a currency would make it possible to better ‘manage global liquidity’. According to Merrill Lynch analysts, while this is an interesting suggestion, the SDR in reality lacks all of the key characteristics of an international reserve currency and is unlikely to develop them quickly even given the IMF’s now expanded role. They also note that the composition of the SDR currency basket is in part determined

by the weights of currencies held in FX reserves, making holding SDR instead of USD a somewhat circular translation. “Therefore, the only likely substitute for the USD at the current juncture is, in our view, the euro”. The report notes that the Eurozone now comes close to rivalling the US in terms of economic size. At the current market exchange rate, Eurozone nominal annual GDP is $12 trillion versus $14 trillion in the US. The US advantage

in terms of size is, however, buttressed by the existence of USD pegs, most obviously in China and GCC, which boost the area of indigenous usage by another $4 trillion. Additionally, the Eurozone remains politically fragmented and thus lacks a unitary fiscal authority. As such, its government bond market, arguably the most important market for reserve managers, while rivalling that of the US in terms of size is much less homogenous, and therefore, less liquid. Market microstructure issues such as different

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July-August 2009 27

trading platforms, different repo markets, only German bunds eligible for bond futures and options settlement, different supply methods and issuance calendars all contribute to this. According to the report, the recent crisis highlighted the fragmentation of the Eurozone’s bond market. IntraEMU government debt spreads widened substantially as risk-averse investors questioned the sustainability of public finances in many of the smaller member states. “Interestingly, while there has been much recent discussion of the USD’s role, there has been little suggestion – in contrast to 2002-04 – that the euro is an appropriate substitute,” they note. Two main scenarios have been identified whereby the euro could overtake the USD as the main reserve currency by 2020. One is that the UK joins the Eurozone, bringing a much enlarged GDP and, even more importantly, much expanded financial markets. The second is that the ongoing USD depreciation erodes confidence in the USD as a store of value. UK membership of the Eurozone now looks a very remote prospect given the UK political backdrop and the contrasting monetary policy approaches of the BoE and ECB to the crisis. The second argument that USD declines themselves actually prompt stock diversification selling links directly to the debate around the credibility of US fiscal and monetary policy, the report points out. “Based on assessment of potential capital and trade flows and a consideration of likely FX intervention strategies, we believe EM50 FX reserve accumulation will recover this year. Our forecast for the year of $360 billion implies reserve diversification selling of the USD for other G10 currencies of around $120bn. This is around one-third of the pre-crisis pace but is a significant EUR-USD support in the context of what are much lower overall FX volumes,” the analysts say. At the same time, they see the out-

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There have been suggestions for comprehensive reform of the international monetary system based on the replacement of credit-based national currencies in FX reserves with a super-sovereign reserve currency managed by a global institution look for stock diversification out of USD as delicately balanced. While confidence in US economic policies has been rattled, they feel this is arguably a G10-wide phenomenon. Moreover, FX reserve portfolios do not appear excessively concentrated in USD and the availability of a close substitute is limited. “In particular, the high correlation between EUR and EM FX displayed at the height of the crisis and disaggregation of the Eurozone bond market amid high risk aversion have, in our view, somewhat reduced the probability that the euro usurps the USD’s role”. According to them, overall, recent

July-August 2009

speculation that major foreign holders of USD assets are set to liquidate appears overdone. They feel that a much greater erosion in policy credibility would be required to jeopardise the role of the USD in the financial system. The USD-denominated proportion of the fresh FX reserves accumulated by EM central banks has been consistently higher than the USD’s target weight in reserve portfolios. This arises as the bulk of FX intervention takes place via the USD. Consequently, when FX reserves are being accumulated, EM central bank reserve managers are forced to sell USD for other, mainly G10, cur-

rencies held in the reserve portfolio to prevent the USD’s weight in the reserve portfolio from rising. This can be termed ‘flow’ diversification selling of the USD. The report points out that additional G10 FX order flow can arise due to decisions to reduce the USD’s targeted weight in portfolios, which they describe as ‘stock’ diversification. The bulk of this stock diversification flow appears to have taken place from 2002 to 2004. More recently, however, concerns expressed by senior political figures from China and other large reserve-holding nations over the potentially inflationary impact of recent US policy responses have raised questions over whether EM central banks will

seek to further reduce the USD’s weight in reserve portfolios. The report says that the rebalancing of the global economy has two important implications for reserve accumulation in the emerging world. First, the much-reduced US external deficit will result, other things being equal, in a slower pace of reserve accumulation. Merrill Lynch’s US economics group currently projects a US current account deficit of just two per cent of GDP in 2009 and 2010. This is, making some assumptions with regard to net income flows and transfer payments, broadly equivalent to a trade deficit in the region of $20 billion per calendar month. This is a third of the peak levels recorded in 2006 to 2008.

Recent speculation that major foreign holders of USD assets are set to liquidate appears overdone as a much greater erosion in policy credibility would be required to jeopardize the role of the USD in the financial system Second, the breakdown of US external trade reveals the US deficit is roughly evenly split between China and the oil-producing nations. This suggests that steady state reserve accumulation will be dominated by these nations. It also leaves reserve accumulation potentially strongly linked to oil price movements.

Flow diversification selling

The recent rally in EM FX has prompted sporadic intervention to buy USD versus local currency from a relatively broad range of central banks. As a consequence, reserve accumulation appears to be picking up from previously very low levels. Merrill Lynch’s Tracking Reserve Accumulation and Diversification (TRADE) metric suggests EM50 FX reserve growth of around $140 billion during May. Of this increase, around $50 billion is estimated to have arisen due to the accrual of fresh reserves, with the rest attributable to FX revaluation effects and interest accrual. The report says this would imply diversification selling of USD for other G10 currencies in the region of $17 billion. This is roughly half of the average level of USD selling that prevailed during 2007 and H1 2008. One factor to bear in mind, however, is that with FX volumes from other customer segments

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sharply down, this scale of order flow could now have a larger influence than it has done historically, it says. Nevertheless, there are reasons to be skeptical that this rate of reserve accumulation – which is effectively at the upper bound of what we think can be sustained this year – and subsequent diversification selling of USD for other G10 currencies will continue. Large reserve manager holdings of US government debt have long been viewed by many commentators as a ‘Sword of Damocles’ hanging over both the USD and the US economy. More recently, the perception that the US authorities are taking excessive risk with both the public finances and the outlook for inflation has encouraged the view that foreign investors may now seek to reduce – as opposed simply to slow the rate of increase in – their holdings of USD-denominated assets. The probability that this occurs is, in the analysts’ view, a function of the degree of portfolio concentration in US assets, the availability of close substitutes, the perceived credibility of US policy and the lessons that are drawn from the recent financial crisis.

Portfolio concentration

Data from the BIS covering the crossborder positions of reporting banks with official monetary institutions suggest the currency composition of international banking sector liabilities to central banks was relatively evenly split between USD and other currencies at the end of 2008. Of course, these data will only cover the cash and near cash element of reserve manager portfolios. The total EM FX reserves are estimated at $4.2 trillion, of which around 50 per cent are ‘allocated’ in the sense that their currency composition is revealed to the IMF. The USD’s share in allocated FX reserves at the end of December 2008 was 59.8 per cent, significantly down from the 70 per cent plus share observed at the start of this

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The recent rally in EM FX has prompted sporadic intervention to buy USD versus local currency from a relatively broad range of central banks and as a result, reserve accumulation appears to be picking up from previously very low levels decade. As such, for EM50 as a whole a USD weight of between 60 per cent and 65 per cent is assumed as comfortable. The USD’s weight is therefore over twice that of the EUR in FX reserves. According to the analysts, the key judgment is whether this level of concentration is justified. Notably, the USD’s weight in FX reserve portfolios is down from levels probably in excess of 70 per cent in early 2001. Indeed, it appears there was a material stock diversification episode during the 2002 to 2004 period that coincided with euro appreciation. Since that point the USD’s weighting appears to have stabilised. Recent pressure on the USD has been at least in part related to concerns regarding the credibility of US monetary and fiscal policy. On the monetary policy side, some investors appear to fear that the Fed’s exit from

July-August 2009

QE may come too late to avoid a serious bout of inflation. On the fiscal side, the Obama administration has yet to provide a credible plan to bring the budget into balance over the long run. Markets are starting to react to these twin challenges by pushing break-even inflation rates derived from TIPS and credit default swaps on US debt higher. Thus far, however, the escalation of these concerns has been moderate. The BRIC nations are convening to discuss ways to lessen dependence on the USD. According to the report, this does not necessarily mean they want to hold a lower proportion of their FX reserves in USD. The high-profile nature of this discussion in the context of market pressure on the USD should not obscure the fact that the lesson of the most recent crisis is that the most effective reserves to hold were cash-like USD denominated instruments, the analysts argue.

ISL AMIC FINANCE

New taxation guidelines to treat Islamic finance transactions more fairly

France puts building blocks F By Philippe Yvergniaux

rance has overhauled some of its domestic tax law in a move designed to establish the country’s place as one of the world’s centres for Islamic finance. At the very end of last year, France issued new taxation guidelines to make it possible for Islamic finance transactions to be treated more fairly from a

revenue perspective. The two most common Shariah-compliant financial instruments - the sukuk and murabaha - which hitherto attracted tax penalties because of the structuring that sought to avoid riba, or ‘usury’, were now recognised differently, in order to secure the growth of Islamic financing in France.

The international market itself is growing at a phenomenal rate. Before the present worldwide financial downturn, estimates were that Islamic finance offerings of all types totalled between $700 billion and $900 billion last year - and one analyst predicted investment was set to top $2 trillion in 2010 (although that figure is now likely to be

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July-August 2009 31

revised downward as the Gulf investment market has slowed somewhat - of course nowhere near as much as other western markets). France began its identification and implementation of ways to attract Islamic finance institutions to the country in 2007 and the pace accelerated last year. France recognised that the UK had been for some years developing a financial and regulatory climate which assisted Islamic finance to flourish. In February 2007, the first building block was put in place. A law was enacted creating fiduciaries and was intended to bring into French law the Common Law concept of a Trust. In August 2008, the framework was made even more flexible in the law of the modernisation of the economy. Now, both natural persons and legal entities will be allowed to constitute a fiducie. Lawyers will also be allowed to act as fiduciaries. The Sénat, the upper house of the French legislature, held a series of roundtable discussions with key international players in May 2008 about the ways that France could become integrated into the global network of Shariah-compliant finance. They looked at the ways that French companies can work with Islamic funds and, most crucially, the ways that tax laws and regulation would need to be altered in order to arrive at a fair taxation policy that did not penalise Islamic financial instruments. The Financial Times quoted Arnaud de Bresson, managing director of Paris Europlace, who said: “The senate’s initiative to organise a high-profile event on Islamic finance is a sign that the authorities are paying increased attention to this market.” The market statistics are impressive. France’s Muslim population is conservatively estimated at six million. A survey carried out in 2007 by the French Institute of Public Opinion (IFOP) said that half a million Muslims in the country would be interested in Islamic finance. Add to this the Muslim populations in francophone countries,

32 BANKING AND BUSINESS REVIEW

France began its identification and implementation of ways to attract Islamic finance institutions to the country in 2007 and the pace accelerated last year and the potential banking and other Islamic finance products for Frenchbased Islamic finance operations is huge. Around the Mediterranean are key French speaking countries, such as Morocco with 34 million, Algeria with 33 million, Tunisia with 10 million and Lebanon with two million. In francophone Africa, countries such as Senegal and Mali alone add more than 21 million to a total francophone Muslim population of more than 44 million. The country’s politicians moved fast to implement Islamic finance, drawing on the conclusions reached by the Sénat report and other sources. The French finance minister, Christine La-

July-August 2009

garde, made a ministerial statement that France was indeed serious about stimulating Islamic finance. In July, she publicly briefed Gulf investors that they should expect changes to the French tax system that would make their activities as welcome as they are in London or elsewhere. The Autorité des Marchés Financiers (AMF) is France’s financial regulator. It also played its part in recognising Islamic instruments. In July 2008, the body outlined its rules for admission of two main types of the sukuk Islamic bond onto the French regulated market: Sukuk for which the periodic distri-

butions and reimbursement rely primarily on underlying assets and which therefore, by virtue of their construction, are equivalent to securitisation (i.e. an asset backed securities issue). Sukuk for which the periodic distributions and reimbursement are based on underlying assets, but for which investors rely primarily on the undertaking of one or more entities for part of or all payments in respect of the sukuk. The AMF also set out some further rules - for example, sukuk that are issued in the context of a private and/or international placement will be admitted to the professional segment of the French regulated market, due to the inherent nature of the investors. The compliance of the issue with Shariah rules does not fall within the remit of the AMF. It is the responsibility of the issuers, with assistance from their advisers, to incorporate into the prospectus the relevant elements, including appropriate details of the Shariah board involved in the transaction, which provide the necessary information to enable investors to make an informed decision. The AMF’s objective is to ensure that the prospectus has been prepared in accordance with European laws and regulations. As the European regulation does not include any specific annexes for Islamic bonds, article 23.2 of

this Regulation stipulates that, where a prospectus for a security which is not the same as, but is comparable to, the various types of securities mentioned in the European Regulation, the issuer shall add the relevant information items from another securities note schedule provided for in the annexes of the European Regulation. This addition shall be done in accordance with the main characteristics of the securities being offered to the public or admitted to trading on a regulated market. It is therefore the issuer’s responsibility to define the precise contents of the prospectus in accordance with article 23.2 of the European Regulation, taking into consideration the financial characteristics of the sukuk which it plans to list. The issuer will inform the AMF when filing the draft prospectus with the authority of the type of sukuk being listed and the relevant annexes of the regulation with which it is complying. As an example, the AMF will consider that in the first case mentioned above, where the periodic distributions and reimbursement rely primarily on the underlying assets, the prospectus is prepared on the basis of the annex XIII with regards to the terms and conditions of the issue (in so much as the nominal amount of the bond is equal to, or greater than, €50,000), and the an-

nexes related to ‘asset backed securities’, with regards to the issuer and the assets (annexes VII and VIII of the European Regulation). In the second case, where investors rely primarily on the undertaking of one or more entities for the payments in respect of the sukuk, the description of the securities follows annex XIII of the Regulation (in so much as the nominal amount of the bond is equal to, or greater than, €50,000). In addition, the principle stated in article 5 of the Prospectus directive, which requires the disclosure of any material information which enables an investor to make an informed decision, can be generally satisfied with the structure being described: Either on the basis of annexes VI and IX, with the appropriate disclosure of the underlying contracts. By late December 2008, the French government was ready to publish firm tax guidelines to cover both the sukuk and murabaha contracts. For the murabaha contract, in which a party necessarily acquires and resells an asset including in the latter transaction the cost of financing, taxation on the sale is recognised not just in one year but over a number of years (subject to certain other conditions). If the asset is real property then normal taxation rules on such a disposal are suspended and the gain is treated in murabaha as interest with VAT therefore not applied to the sale transaction. In the sukuk, the new taxation guidelines address the issue of whether the remuneration of the sukuk is a tax-deductible item for the issuer. The position of the French tax authorities is that the sukuk is a debt instrument and that the remuneration of the sukuk becomes interest expenses for the issuer. Therefore, French tax rules on the limitation of interest deduction may apply. Philippe Yvergniaux is the CEO of Invest in France Agency (IFA) in the UK. (Credit: gtnews.com)

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July-August 2009 33

EC PROPER ONOMT YY

Sovereign funds setbacks lead to erosion of GCC credit strengths Fall in global asset valuations has also affected the sub-sovereign sectors, particularly banks and other financial institutions, says S&P

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July-August 2009

S

overeign wealth funds (SWFs) across the region, particularly in Qatar, Abu Dhabi, and Kuwait, have seen significantly negative returns on their sizeable foreign asset holdings over the past 18 months. According to Standard & Poor’s, the implied reduction in government net asset positions is an erosion of one of the key credit strengths for these sovereigns. The fall in global asset valuations has also affected the sub-sovereign sectors, particularly banks and other financial institutions, whose exposures to real estate and equity have caused them to make significant write-downs on their investment portfolios in recent months, it said. A notable exception to this has been Saudi Arabia, whose foreign assets have been managed relatively conservatively by the Saudi Arabian Monetary Agency (SAMA). The value of Saudi Arabia’s net foreign assets has risen to almost $440 billion by end-2008, from $300 billion the previous year. S&P notes that different countries have taken different approaches to shore up the capital positions of their financial sectors. In Kuwait, a recently passed financial stabilisation plan puts in place government guarantees on banks’ provisioning for investment losses. Some measures in the plan are also intended to ease funding pressures at ailing investment companies, whose exposure to global asset markets and reliance on short-term wholesale financing have put significant pressures on this important pillar of the Kuwaiti financial system. In Abu Dhabi, the government announced earlier this year an injection of Dh16 billion into its domestic-owned

The reduction in global liquidity has reduced the ability of GCC entities to raise financing in international capital markets, particularly for GCC-based corporates and banks banks, while in Qatar, a mix of equity injection and a government buyout of banks’ investment portfolios was carried out to shield the banking sector

from any possible fallout. S&P sees the net result of these developments as a significant rise in the contingent liabilities of the government with respect to

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July-August 2009 35

the banking sector. The rating agency said that the reduction in global liquidity has reduced the ability of GCC entities to raise financing in international capital markets, particularly for GCC-based corporates and banks. The GCC entities had become increasingly reliant on international financing, with the amount of debt issued in international markets

increasing by a factor of around nine since 2005, peaking at almost $85 billion in September 2008. A similar pattern is evident with respect to borrowing by GCC entities from international banks, which is on a greater order of magnitude than their debt issuance. S&P feels that the dip in both forms of financing seen in December 2008 would continue this year, as global

The fall in global asset valuations, including in domestic GCC capital and real estate markets, has had a significant and detrimental effect on the value of their assets, resulting in lower net asset positions and higher contingent liabilities for GCC sovereigns 36 BANKING AND BUSINESS REVIEW

July-August 2009

markets and risk appetite will remain subdued relative to the past few years, notwithstanding recent successful global bond issues by the governments of Abu Dhabi and Qatar. Almost three-quarters of the issuance and one-half of the bank borrowing were done by UAE-based entities. According to the rating agency, of all the countries in the GCC, the UAE, particularly the emirate of Dubai, has experienced the most severe reversal in domestic liquidity conditions since mid-2008, prompting the Central Bank of the UAE to take offsetting measures. Other GCC countries have also taken measures to provide for liquidity in their banking sectors and the economy more widely. The deterioration in financing conditions has meant that a large amount of private investment has been

delayed due to lack of funding, putting greater onus on sovereigns to help in financing or indeed to take a more active role in implementing investment programme, particularly in infrastructure, in order to inject stimulus in the economy. S&P notes that while the credit crunch has hit the liabilities side of GCC countries’ balance sheets, the fall in global asset valuations, including in domestic GCC capital and real estate markets, has had a significant and detrimental effect on the value of their assets, resulting in lower net asset positions and higher contingent liabilities for GCC sovereigns. The rating agency believes that a combination of low oil prices and a decline in oil production will have a significant impact on fiscal outturns across the GCC. The average GCC government balance will be barely positive in 2009, compared with surpluses in the order of 23 per cent of GDP in the previous three years, it says. Saudi Arabia is expected to fare the worst, as a combination of increased expenditure. At the same time, S&P does not consider a weakening in fiscal outturns to be necessarily a harbinger of deteriorating creditworthiness. In most cases, GCC countries have opted for a deliberately expansionary fiscal policy in order to counter the impact of the global economic downturn on the non-oil economy. Unlike in previous oil prices cycles in the 1970s and 1980s, GCC policy makers have by and large chosen to smooth government expenditure, which is a critical driver of the non-oil economy, opting to increase expenditure mainly in infrastructure projects. Saudi Arabia, for example, has opted to increase government expenditure by 16 per cent, focusing on infrastructure spending, which will rise in 2009 by some 36 per cent, the largest ever increase in infrastructure spending in that country. Similarly aggressive expansionary policies with a focus on in-

Overshooting of housing supply in certain GCC countries is already resulting in a reduction of rents on property, a key driver of inflation in many GCC countries over the past few years frastructure are evident in Abu Dhabi, Qatar, Oman, and Bahrain. One exception to this has been Kuwait, whose budget for 2009/2010 envisages a substantial 36 per cent decline in expenditure. While the majority of this decline is related to the exclusion of a one-off payment on social security that occurred in the previous year, it is notable that the budget still calls for a 27 per cent decline in capital expenditure. S&P believes that Kuwait’s fiscal policy

therefore stands out as containing the least stimulus for the non-oil economy, although at the same time the fiscal balance is expected to be in surplus in 2009 as a result. Further supporting GCC sovereign creditworthiness in the face of a deterioration in fiscal outturns is the view that GCC governments have exceptional fiscal space to implement such a policy. According to S&P calculations, Bahrain and Oman are in the least com-

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July-August 2009 37

fortable positions, as their oil resources are more limited than other GCC states and they have therefore benefited relatively less from the windfall in high oil prices in terms of accumulation of assets. This relative weakness is reflected in the ratings for both countries, the lowest among GCC sovereigns. S&P estimates that Qatar has closer to seven years worth of 10 per cent deficits that can be absorbed by its net assets, a figure which belies the fiscal strength of the sovereign, as a large share of previous surpluses have been re-invested in productive infrastructure, particularly into the expansion of LNG production capacity. Consequently, S&P feels that revenues in Qatar will continue to rise strongly on the back of increased LNG production (which is not subject to OPEC quotas), and that future surpluses will significantly strengthen the net asset position of the government in years to come. Saudi Arabia, Abu Dhabi, and Kuwait are seen having the greatest amount of fiscal space to pursue counter-cyclical expansionary fiscal policy, and S&P forecasts that each could sustain a 10 per cent deficit without resorting to debt finance for at least 25 years. This is considered a key credit strength, one that is reflected in these sovereigns’

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The recent strengthening of the dollar, to which all GCC countries are pegged (with the exception of Kuwait, which is partially pegged to the dollar) will reverse some of the ‘imported inflation’ pressures that have been evident across the GCC position within ‘AA’ ratings category. S&P believes a number of factors will contribute to significant downward pressures on inflation across the GCC throughout 2009. First, the fall in commodity prices, including food, will reduce domestic price inflation on staples. Second, the recent strengthening of the dollar, to which all GCC countries are pegged (with the exception of

July-August 2009

Kuwait, which is partially pegged to the dollar) will reverse some of the ‘imported inflation’ pressures that have been evident across the GCC. Finally, the catching up, and in some instances, overshooting of housing supply in certain GCC countries is already resulting in a reduction of rents on property, a key driver of inflation in many GCC countries over the past few years. As a result, S&P expects inflation rates across the GCC to come down from an average of over 10 per cent in 2008, to around five per cent in the medium term. S&P believes that the GCC region has not been immune to the impact of the global economic downturn, with the fall in global liquidity and in oil prices posing significant challenges to all sovereigns in the region to a greater or lesser extent. That said, the agency believes that GCC countries are well placed to ride out the turbulence, thanks primarily to their exceptional fiscal capacity to pursue counter-cyclical expansionary policy. The non-oil economy, an important engine for future employment growth and diversification, remains a key priority in most GCC countries, and according to S&P, robust government expenditure will ensure that it is in large part, shielded from the global economic downturn.

HOUSE AD REAL TIMES Repeat page 37 from May BBR 2009

PROPER T Y INDUSTRY

$375 billion of oil investment despite demand concerns 70 per cent of total investment coming from NOCs in Asia and South America

T

he world’s largest National Oil Companies (NOCs) and supermajors are planning on delivering in excess of $375bn of ambitious investments through the down cycle, despite ongoing concerns around oil demand, according to new analysis from Ernst & Young. The report, Investing for the upturn, which was launched at the NOC Congress in Abu Dhabi recently, calculates that the largest NOCs are on course to invest over $275 billion in the devel-

40 BANKING AND BUSINESS REVIEW

Some NOCs are looking at costcutting measures, while countries such as Indonesia are introducing stimulus packages to aid the sector July-August 2009

opment of their businesses at home and abroad in 2009 – with almost 70 per cent of total investment coming from NOCs in Asia and South America. Based on current estimates by 2015 the largest NOCs will have invested around $600 billion in their hydrocarbon sectors. The supermajors have also committed to substantial investment in oil and gas activities this year – around $100 billion. Andy Brogan, global oil and gas transaction advisory services leader at

Ernst & Young and author of the report, says, “NOCs and the supermajors continue to show a real determination to push ahead with their major capital expenditure plans this year, at least for now. 2008 was a record year for capital investment by the sector and 2009 is shaping up

to be another record year. Companies are wary of finding themselves in a position where they have to play catch-up on investment when the upturn materialises.” He adds that despite the International Energy Agency’s (IEA) current estimates for oil demand, investment is still required in production capacity enhancement projects to offset falling output due to natural field depletion. “Most oil and gas companies have indicated they will spend more than half of their capital investment on upstream operations.”

China and Brazil emerging as powerhouses

The economic slowdown, a dramatic

fall in oil prices and investors’ flight from risk have left many reserve rich state-owned oil and gas companies less able to finance projects with surplus cash flows. Some NOCs are looking at cost-cutting measures, while countries such as Indonesia are introducing stimulus packages to aid the sector. Many reserve holders’ ambitions to expand overseas are also being scaled back in order to prioritise domestic projects. However, substantial financial commitments are still being made for oil and gas projects in China and Brazil. Brazil is set to become a major producer following pre-salt discoveries by Petrobras, which plans to invest $28 billion in pre-salt areas as part of its $174 billion business plan to 2013 – around 90 per cent of its total investment will be targeted at projects in Brazil. The investment allocated by Petrobras for 2009 represents 38% of the planned $91 billion expenditure by South American NOCs this year, according to the Ernst & Young, with Asian NOCs collectively to invest more than $98 billion, almost half ($42 billion) of which has been allocated by China’s CNPC. By comparison the combined capital expenditure of NOCs in Africa, CIS and the Middle East is a fraction of that of their Asian and South American counterparts put together. The report calculated that the NOCs of Africa announced $21 billion of investment this year compared to $36 billion for the CIS and $29 billion for the Middle East. Don Painter, Leader of Ernst & Young’s Middle East Oil & Gas Practice, says, “While public figures sug-

gest that the investment Middle East NOCs have committed to this year is below the levels of NOCs in Asia and South America, there is still plenty of cash available in the Middle East for the right type of investment. Cash rich GCC producers are currently evaluating investment options that match their ROI aspirations. They are still seeking appropriate investment opportunities in the region and elsewhere. The slowdown in their capital expenditure does not reflect their appetite for major investments.’’ “When the NOCs had easy access to capital they were in a position to dictate terms with their IOC partners, but the volatility in financial markets means that IOCs with sufficient liquidity will be able to offer potential partners not only technological and operational expertise but also access to much needed capital,” says Brogan. He concludes, “In the long-term, the overall structural issues surrounding location of reserves and achievable levels of production have not changed. When the global economy recovers the same pressures evident last year will resume. Any renewed appetite from NOCs for IOC participation will be short-lived – and therefore opportunities available now should not be wasted.”

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July-August 2009 41

PROPER C A REER T Y

Employer Branding 30 per cent of employers worldwide are finding it difficult to fill certain roles By Patrick Luby

U

nemployment has reached new heights in recent months, yet vacancies for talented candidates remain. Although hiring in general has slowed, employers are still looking to fill jobs in their core business areas and in some cases, are searching for people with a new set of skills. Manpower’s 2009 Talent Shortage Survey found that 30 per cent of employers

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worldwide are finding it difficult to fill certain roles. This number has not changed in the past year, in spite of the current economic environment and higher unemployment rates. These findings show that the downturn is masking underlying talent shortages and as the economy recovers this problem is likely to worsen. To illustrate, accounting and finance professionals are certainly not in

July-August 2009

short supply, but many employers are now demanding accounting specialists with expertise in debt restructuring or international accounting.1 These specialty areas were not in as high demand prior to the global downturn.2 Today, employers are not just looking for the baseline skills, but they are also looking for individuals with other additional key skills – such as industry specific knowledge or management

skills – that can help them meet their business objectives. Globally, skilled trades, sales representatives and technicians are the three top jobs employers are finding difficult to fill, which indicates a mismatch between the candidates available and those with the relevant skills, knowledge and experience to do the needed jobs. As the economic landscape changes, so do business needs. It is becoming increasingly apparent that many companies have not fully thought through their talent management strategies.3 In the current climate, companies need to find a balance to reduce short-term costs without compromising longer term talent attraction and retention programs. In this highly competitive market, employers need to be sure they are retaining and attracting the right candidates. Building a strong employer brand is one way to make sure organizations gain competitive advantage, both now and in the future, when economic growth resumes. Employers need to forge strong relationships with current employees and position themselves as attractive to candidates with in-demand skills. Both of these objectives can be achieved through a strong employer brand. An employer brand can be used as a tool to communicate consistent values, character and the style of an organization to current and potential employees. In doing so, employers can develop the qualities that bring fulfilment to people’s roles, better understand the motivating factors in their own workforce, and better target candidates who are likely to have a good fit with the organization. Engaged and happy employees will add more value to a company and help advance the company’s mission – a must in a highly competitive market. Each touch point between employer and employee, from recruitment to the time when an employee needs to move on, is an opportunity to reinforce the employer brand. Branding should effectively communicate company values and culture – through leadership programs, corporate social responsibility initiatives and HR processes – driving employee engagement and making for

Skilled trades, sales representatives and technicians are the three top jobs employers are finding difficult to fill

a valuable proposition to both current and potential talent. It is important that employers maintain this connection and pay attention when employees highlight disappointments, as they usually point to areas where the company may be falling down on its promises to employees and customers. Research from Gallup has found that employee engagement rapidly decreases after the first six months. This is when employees begin to realize there is a discrepancy between what was promised and the reality of the job in which they are now working. Few companies have comprehensive talent management strategies and are able to address the question: where will the talent come from when the economy starts to grow again? The answer is multi-faceted and too complex to be covered here; however, it is certain that strong employer brands create organizations that are a magnet for talent. For example, the technology giant Apple has a strong brand which exudes a culture that attracts the best talent. The language used to attract jobseekers is closely aligned with the brand vision and tailored to attract those with the necessary skills. From recruitment to hire, Apple tweaks recruiting mes-

sages to attract different types of talent, so candidates for jobs in sales and engineering may receive messages that are different, yet align well within the company’s mission, value and culture.5 This ensures those who do apply are more likely to fit with the culture and approach of the organization and have the required skill set. Thus, the recruitment process is easier, attrition is reduced and the best possible talent fills core business areas. The global recession is a hurdle all companies will need to overcome in order to survive and to grow. A healthy and well-managed talent pipeline, one that quickly flows the right talent to business-critical areas, is absolutely key to this success. When the inevitable recovery occurs, existing skills shortages are likely to worsen, and employers cannot afford to be caught off-guard. By thinking about their employer brand, and implementing a strong talent management strategy now, employers can begin to tackle the talent issues, and put themselves in a winning position when the economic woes subside. The writer is the Managing Director of Manpower ME

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July-August 2009 43

PROPER TELEC OM TY

Telecom sector ripe for regulatory initiatives Sector can create multiplier effect that helps rejuvenate economy, says study

C

urrent uncertainty presents an opportunity to policymakers and regulators to broaden the boundaries of telecom’s domain and bolster other parts of the economy, a new study by Booz & Company has concluded. Policymakers who take a broader look at the telecom sector and take ac-

44 BANKING AND BUSINESS REVIEW

tion to release its catalytic potential now can create a multiplier effect that helps rejuvenate a nation’s entire economy, the study observed. In fact, economic turmoil in international markets has left governments across the globe scrabbling for an economic recovery lifeline. In the Mena region, governments may be able to

July-August 2009

reach for telecom, which has traditionally shown financial resilience. Rethinking strategic perspectives is essential, and through a targeted approach to regulatory change and cash injection, telecom offers a strong hand to lift economies back onto their feet, the study concluded. In the Mena region, telecom, a tra-

ditional pillar of financial resilience, may offer a route to economic recovery. It is therefore essential that policymakers and regulators strengthen the sector, by adjusting their strategies accordingly, the study recommended. “Organisations rely on telecom for their daily operations as do individuals, and therefore operators may have an opportunity to enter into new spheres of activity,” says Bahjat El-Darwiche, a Principal at Booz & Company. Mena telecom operators are facing a number of new challenges: approaching market maturity, changing customer needs and preferences, and continuous transformation in technology, business, and operating models. There is a danger that the economic downturn could delay the industry’s ability to embrace these imperatives. The study suggests that policymakers and regulators must readjust their focus where needed and align telecom sector strategies with changing economic objectives, while focusing on creating long-term resilience and sustainable growth. Governments may need to reverse old trends and consider re-intervening in areas in which they have been disengaging. Cooperation between sector stakeholders is essential, requiring regulators and policymakers to address inefficiencies in sector governance and regulation, and implement elements that will create sustainable value, it said. The study has recommended six strategies for the consideration of policy planners and regulators of the telecom sector. These include review of the schedules for privatisation and liberalisation, lessening of the operators’ direct financial obligations, more investments in national broadband infrastructure, incentivisation of infrastructure sharing and traffic syndication, growth of ICT literacy among users and the workforce and acceleration of sector governance and regulatory reform. The study says that privatisation and liberalisation schedules outlined before

the downturn may not now be viable. While there is room for more competition, sustaining existing players’ resilience must be a higher priority. Caution is necessary to attract solid, long-term investments, and rescheduling imminent privatisation or the issuing of new licences may be necessary. Selling national assets now may not yield optimal returns and licensing

the timing of new facility-based licensing. Governments can potentially create value by attracting qualified players to invest in service-based licences, and further liberalization should stay on the agenda for when the economic climate is more favorable. “The privatisation and liberalisation approach that regional telecom policymakers and regulators have taken so

Economic turmoil in international markets has left governments across the globe scrabbling for an economic recovery lifeline new facility-based operators could have a negative impact on existing players’ incentive to invest. In this regard, the study cites the case of the Omani government’s postponement of the sale of a 25 per cent stake in state telecom firm Omantel in December 2008, in light of the deteriorating global economy and declining stock markets. The study suggests that policymakers and regulators should reconsider

far has paid off. More well-timed moves would contribute to restoring investors’ confidence and supporting economic recovery,” Karim Sabbagh, Head of the Global Communication, Media, and Technology Practice at Booz & Company, points out. Referring to the need to reduce the financial obligations of the operators, the study says that policymakers and regulators should ease financial pressure on

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July-August 2009 45

telecom operators. Reducing licence fees, spectrum fees, taxes, royalties on licensees, and high dividends on largely government-owned operators would help ensure the sustainability of competition, investment, and employment levels in the sector, as well as increased government proceeds in the long term. This could be an incentive for operators to invest further in network rollout and innovations in products and services, with a multiplier effect on the broader economy. In previous crises, some regulators adopted a supportive approach toward licencees, easing financial obligations and ensuring a smoother ride through tough conditions. Telecom operators’ financial obligations must be robust enough to finance sector policy-making and regulation activities, as well as research programme and universal service funds. Financial obligations should be modest enough to make the sector attractive to increase reinvest-

ments. Many Mena countries impose higher direct financial obligations on telecom operators than contemporaries in more mature markets, which constitute a primary source of revenue for many Mena governments. The regional trend has been to privatise telecom operators and let the private sector drive the pace and scope of investment in telecom infrastructure, yet individual operators are having difficulty securing investment in national broadband infrastructure, such as high-speed fiber-to-the-premises networks. “Governments may want to step in and consider playing a more active role in contributing to these investments, to expedite operators’ investment in national broadband infrastructure and improve the potential for value creation when the economy picks up,” says Sabbagh. The study points out that govern-

ment investment should focus primarily on passive infrastructure; and active infrastructure, which can be a source of competitive advantage for operators, should remain under their jurisdiction. Investment could come, as one alternative, in the form of governmentbacked utilities such as national network companies. They may involve existing operators, but would need to make their infrastructure available to all telecom operators and ICT service providers. The potential benefits are better access to customers, higher bandwidth, economies of scale, and new applications that would benefit the economy. Government investment could also come in the form of grants to operators, provided they offer incentives to encourage end-users to upgrade to nextgeneration broadband access. Stimulation of the sector could generate a comparable network effect and jump-start the wider economy. These initiatives are based on the assumption that such investment leads to direct job creation, and enables the development of new businesses that create innovative products and services using the improved capabilities of the communications network, the study feels. Governments are taking a progres-

Mena telecom operators are facing a number of new challenges: approaching market maturity, changing customer needs and preferences, and continuous transformation in technology, business, and operating models 46 BANKING AND BUSINESS REVIEW

July-August 2009

Reducing licence fees, spectrum fees, taxes, royalties on licencees, and high dividends on largely governmentowned operators would help ensure the sustainability of competition, investment, and employment levels in the sector, as well as increased government proceeds in the long term

sive view of infrastructure as an essential part of an economy, and the role of government in the provision of it. In doing so, governments will lay the foundation for the sector to be stronger after the downturn while stimulating the economy now. National broadband infrastructure is key for the sector’s future development, as well as broader national economic development, it is pointed out. As for incentivisation of infrastructure sharing, the study says that with limited market liquidity, Mena policymakers and regulators should consider incentivising operators to undertake infrastructure-sharing projects together to allow more effective management

of the financial resources available to them, without giving up their competitive advantage. Governments could relax selected regulations in return for operators’ commitment to infrastructure sharing. Infrastructure sharing is often a source of tension between regulators and operators, as it is traditionally imposed as a regulatory obligation; it has previously succeeded when done on a market-driven basis. Regulatory intervention could push for mandatory infrastructure sharing in cases of abuse by dominant powers, or market failure. The Mena region has already started to see market-driven infrastructuresharing deals supported by some poli-

cymakers and regulators. As competition matures in the Mena region, market-driven infrastructure sharing and traffic syndication ventures have started to emerge. Thus far incumbent operators, who control a large part of the infrastructure, have been conservative in offering infrastructuresharing deals and have usually done so in reaction to regulatory pressure. The development of ICT literacy and investment in national broadband infrastructure must be synchronised to achieve value. Without the necessary human capital, technological advances in telecom networks and services cannot be effectively employed to generate innovation and drive economic growth, the study said. Public familiarity with ICT is essential for the widespread adoption of digital services. Governments in the region could take advantage of the downturn to broaden investments in ICT initiatives that enhance and develop ICT knowledge and adoption throughout the population. “Mena governments should encourage their citizens to use online services

BANKING AND BUSINESS REVIEW

July-August 2009 47

with convenient, affordable access and by emphasizing the time and money savings by using e-government services,” Sabbagh says. Structuring an official education framework and defining quality criteria for courses would lend integrity to ICT qualifications. Governments could even facilitate interaction between academic programme and the ICT private sector. This is especially the case with the downturn intensifying the need for a workforce that can meet privatesector demands for talent, and given that regional ICT literacy rates are still relatively low compared to other countries. Investing in ICT literacy would accelerate ICT adoption, encourage digitisation of the economy, promote investment in ICT, increase individual productivity, and create a more highly skilled and competent workforce. ICT investment would act as an economically stimulating venture in the short term, and is essential for the long-term development of the telecom sector. The report points out that the telecom sector’s ability to act as a catalyst

48 BANKING AND BUSINESS REVIEW

for economic recovery is dependent on three factors: the ability of regulators and policymakers to effectively fulfill their various functions, the level of integration between governance of the telecom sector and governance of media and technology, and the level of maturity of regulatory practices. Telecom policy making and sector development should be clearly distinguished from regulatory activities. Long-term strategic planning should be rapidly institutionalised to promote the sector as an economic enabler. “The capabilities for effectively driving high-impact sector development initiatives also need to be swiftly built to support government investment and public-private partnership initiatives,” explains Sabbagh. In terms of regulatory reform, improving sector resilience and laying the groundwork for sustainable growth require transparency in regulatory practice. Publishing regulatory development plans and gaining public support for decisions should help build investor confidence and enable growth. Regulators should also rapidly step up

July-August 2009

their economic assessment capabilities and base decisions on thorough analyses that guarantee value creation and efficiency for sector stakeholders: customers, operators, investors, and the government. Finally, regulators need to exercise increased vigilance and scrutiny when it comes to anti-competitive behaviour and market value destruction, else the sector may be unable to attract investment, and operators may find it difficult to adopt new business models after the downturn. Concentrating on reform now would focus resources on generating maximum returns from past initiatives and would create an encouraging environment for new initiatives. When previous growth avenues are less attractive, developing best practices in governance and regulatory reform will set the stage for world-class performance when the economic winter passes, the study concludes.

ABN AMRO Bank Head Office: The Netherlands Dubai Branch, Regional Hub for UAE and Middle East P.O.Box: 2567, Khalid bin Waleed Street, Dubai, UAE. Non-stop banking service: Dubai Branch: Colin Macdonald Burhan Khan Hassan EI Nahas Vishnu Deuskar Padmanabh Mishra

Tel: 04 3512200 Fax: 04 3511555 04 3080000 (Toll free)

Country Executive Head of Consumer Banking Head of Private Clients Head of Global Market Head Commercial Client Coverage

04 5062601 04 5062801 04 5062301 04 5062551 04 5062701

Abu Dhabi Corner of Hamdan and Salam Streets P.O. Box: 2720, Abu Dhabi, United Arab Emirates

Tel: 02 6963000 Fax: 02 6963001

Sharjah Abdul Aziz Al Majid Building, King Faisal Street P.O. Box: 1971, Sharjah, United Arab Emirates

Tel: 06 5594900 Fax: 06 5591009

Abu Dhabi Commercial Bank Head Office: Abu Dhabi Mall P.O. Box 939, Abu Dhabi Branches Al Salam Omar S. Al Tamimi Khalidiya Al Bayah Khaled Al Mannaei Al Dhafra Yaqoob Al Dosari Al Muroor Ramzi Al Rimawi Al Shahama Hazim Al Suwadi GHQ Essam Husain Al Habshi Tourist Club Area Hadia Dalloul Hamdan Abdalla Al Jaberi Sh. Rashed Road Mohamed Al Dosari

Tel: 02 6962144

Manager Manager

Fax: 02 6450384

02 6962486, 02 6666311 02 6669910 02 8721300

(Edgar Ruaya / GM in charge) 02 5851030 Manager

02 4444216

Manager

02 5633424

Manager

02 4415626

Manager

02 6725178

Manager

02 6335820

Manager

02 6213237

Corniche Ghassan Kandalaft Mussafah Firas Al Eid Baniyas Town Hamad Salem Rashid Al Junaibi Ruwais Mohammad Ismail Zayed Town Dhababa Rashed Obaid Al Mansouri Gayathi Haraba Al Mazroui Al Baya Ottakath C Mohamed Kutty Al Ghuaifat Pay Office Ottakath C Mohamed Kutty Al Ain Main Branch Mohd. Al Darmaki Al Ain Khalifa Street Salim Al Darmaki Sinaeyah (Indust. Area) Salem Ahmed Al Wagan Nayla Al Ameri Al Yahar Khamis Sulum Abdun Khamis Al Hayer Khalid Omar Eissa Riggah Mudhi Al Haj Karama Omran Abbas Taimour Mina Hosam Al Refay Naif Ms. Seema Mohd. Malk Al Ettihad Salem Ali Khammas Jammahi Al Qusais Fahd. M. Baroudi Manager Sharjah Main Ms. Wissam Moaded Farah Al Ulama Abdulla Al Shamsi Abdullah Fayez Al Shamsi Ajman

Manager

02 6275111

Manager Manager Manager

02 5544272

Manager

02 8775015

Manager

02 8846180

Manager

02 8742155

Manager

02 8721300

Manager

02 8723499

Manager

03 7543413

02 5821550

03 7511322 Manager

03 7210064

Manager

03 7352100

Manager

03 7815600

Manager

03 7322557

Manager

04 2956969

Manager

04 4055135

Manager

04 3984444

Manager

04 6024110

Manager

04 3615151 ext. (202)

Manager

04 2634244

Manager Manager Manager Manager

06 5737737 06 5566169 06 5433300 06 5432006

BANKING AND BUSINESS REVIEW

July-August 2009 49

Yasmeen Alabid       Manager RAK Aisha Ahmed Ghareib      Manager Fujairah MohdAli Hassan Mohd Al Bloushi Manager  Dibba Rania Yousef Manager Contact Centre Ahmed Abdo Manager Eissa Al Suwaidi Eirvin Knox Ala’a Eraiqat Thirry Bardury Deepak Khullar Seumas Gallacher Zaki Hamadani Sultan Al Mahmoud Abdirizak Ali Alok Kakar Robert Price Walter Pompliano Howard Gaunt Jasim Al Darmaki Arup Mukhopadhyay Ahmed Barakat Yaser Mansour Simon Copleston

06 7442111 07 2335500 09 2224324 09-2446700 800-2030

Chairman CEO Deputy Chief Executive Officer Head Operations & IT Chief Financial Officer Head - Investment Banking Head - legal & Special Assets Head - Human Resources Head - Internal Audit Head - Corporate Finance Division Head - Credit Head - Financial Institution & Intl. Division Head - Business Banking Head - Government Relations Head - Retail Banking Head - Wealth Management Head - Corporate Communications, Director of Chairman’s Executive Office & Senior Vice President General Counsel & Board Secretary

Tel 02 6343000 Fax 02 6342222

Established on 20th May 1997 as a Public Joint Stock Company through the Amiri Decree No. 9 of 1997. The bank commenced commercial operations on 11th November 1998, and was formally inaugurated by His Highness Sheikh Abdulla Bin Zayed Ak Nahyan, UAE Minister of Information and Culture on 18th April 1999. All contracts, operations and transactions are carried out in accordance with Islamic Shari’a principles. Branches Abu Dhabi Main 02 6168118 Aref Ismail Al Khouri Manager Mushref 02 4455177 Ezzeldin Nagdy Manager Madinat Zayed 02 6100821 Mohamed Yousef Manager Khalidiya Ladies Abu Baker Omar Manager Sheikha Al Suwaidi Manager Khalifa Street 02 6100590 Omar Aqel Manager Al Ain Sinaiya 03 7211777 Omar M. Basheer Manager Clock Tower Branch 03 7076444 Ali Abdullah Al Manager Dhaheri Al Jimi Mall Branch 03 7633500 Ahmed Abdullah Manager Al Boloshi

50 BANKING AND BUSINESS REVIEW

04 2611116 04 3973333 04 4033400

Fujairah Fujairah 09 2222711 Fahad Al Shaer Manager Dibba 02 6100920 Ali Mohammed Manager Ras Al Khaimah 07 2284448 Saif Hamdan Alkeem Manager Sharjah 06 5075100 Ali Essa Alshaqoosh Manager

Al Ahli Bank of Kuwait - Dubai Head Office: Kuwait Regional Head Office: Dubai Tel 04 2681118 Opposite Hamarain Centre, Deira Fax 04 2684445 P.O.Box 1719, Dubai, E-mail: [email protected] Website: www.ahlibank.ae Management & Senior Personnel: Vikram Pradhan General Manager, UAE Vijay Shah Head of Trade Finance & Operations Hiranand Motwani Manager Treasury Krishna Kumar Manager Retail Operations

American Express Bank Ltd

Abu Dhabi Islamic Bank Head Office: Abu Dhabi Najda Street, P.O. Box 313, Abu Dhabi UAE Email: [email protected] Website : www.e-adib.com

Dubai Al Twar Ibrahim Alqasser Manager Opposite Deira City Center Hashim Al Zarooni Manager Shk. Zayed Rd. Mohamed Hussein Zainal Manager

July-August 2009

Representative Office, Suite 509 Tel: 04 3975000; Fax: 04 3976986 The Business Centre, Khalid Bin Al Waleed Street, Bur Dubai P.O. Box 3304, Dubai. Prabir A. Biswas Director & Chief Representative Sumit.K.Roy Director-financial institution group John A. Smetanka Head-wealth management-subcontinent and global NRI

Arab African International Bank Head Office: Cairo, Egypt. Regional Head Office Dubai Tel: 04 3937773 ART Tower, Al Mina Street, Opp. Ports & Customs Bldg., Bur Dubai P.O. Box 1049, Dubai Fax: 04 3937774 Swift ARAIAEAD, E-mail: [email protected] Web: www.aaib.com History: Established 1964 as the first Arab joint venture bank Hemant Jethwani General Manager UAE Dubai Branch: Key Executive Alaa Sobhy Head of syndication and assert trade Abu Dhabi Tel: 02 6323400; Fax: 02-6216009 Arab Monetary Fund Bldg, Corniche Street, P.O. Box 928, Abu Dhabi Key Executive Hani Hassan Branch Manager

Arab Bank Head Office Jordan – Amman Tel: 04 2950845; Fax: 04 2024369 P.O.Box 950544, 950545 Amman 11195 Website: www.arabbank.ae History: The Arab Bank Group is one of the principal financial institutions in the Arab world and ranks among the leading international banks in terms of equity, earnings and assets. Established in 1930 in Jerusalem. The Arab Bank Group is

owned by about 4,000 shareholders from all over the world, mainly Arab countires. The Group has a diversified network of over 350 branches worldwide. Abdul Majeed Shoman Chairman Abdel Hamid Shoman Deputy Chairman & Chief Executive Officer U.A.E Area Management Mohammad A . Azab Senior Vice President - Dubai Saed Jarallah Senior Vice President – Abu Dhabi Aladin Al-Khatib Treasury Head Hatem Kurdieh Corporate Banking Head Tareq HajHasan Retail Banking Head Mohammad Mattar Central Operations Unit Manager Hani Hirzallah Regional Manager Human Resources /Gulf Region Tareq Ibrahim Head of Human Resources Ammar Al Khayyat Financial Controllar Ghassan Nimer IT Center Regional Manager Jihad Ghoury Legal Counsel Sanjay Malhotra Global Head of Marketing & Product Develeopment Nasser Maghtheh Senior Auditor Anan Al Khatib Premises & Pruchasing Officer (Engineer) Suleiman Malhas U.A.E Branches Audit Centre Manager Dubai Al Ittihad Street Mohammed Azab

04 2950845

Branch Manager

Mir Asif Ali Mgr - Treasury Dept Saidi Zoubir Head of Business Dev. Dept. Tareq S’adi Al Darras Mgr - Credit Risk Management Issam Abugisseisa Legal Advisor Abu Dhabi Main, Sh. Hamdan Street Noora Ebrahim Manager -Sales & Services Souk Branch Al Masaood Building - Khalifa Street, Abu Dhabi Nasser Rashed Al Ali Manager

Dubai Arbift Tower, Baniyas Street, Deira Adel Mohd. Khalfan Manager Al Bagh

04 2220151

Sharjah King Faisal Street Fatima Al Muani Manager

06 5744888 06 5747766

04 2282071

04 2221231

Arab Banking Corporation

Abu Dhabi Al Naser Street Nasser Serries Branch Manager

02 6392225

Abu Dhabi Office Office, 10th Floor, Abu Dhabi Trade Centre, Abu Dhabi Mall P.O.Box 6689, Abu Dhabi Mohamed El Calamawy Chief Representative

Al Ain Colock Tower roundabout, Al Ain Street Maen Jarrar Branch Manager Sharjah Al Arooba Street Maher Al Debis Branch Manager

03 7641328

Ajman Rashid Bin Humaid Street Modhar Kherfan Branch Manager

06 7422431

Ras Al Khaimah Oman Street, Al Nakheel Ali Zatar Branch Manager

07 2288437

Fujairah Sheik Zayed Street Abdel Hamid Qamhieyah Branch Manager Call Centre Within UAE Outside UAE

09 2222050 800 40 43 009714 2953889

Arab Bank for Investment and Foreign Trade Abu Dhabi Tel 02 6721900 Regional Head Office, Sh. Hamdan Street, Tourist Club Area Fax 02 6785271 P.O. Box 46733, Abu Dhabi Telex 22455 ARBIFT EM Email: [email protected] Website: www.arbift.com History: Established in 1976 in Abu Dhabi Registered as a Puvlic Joint Stock Company Management & Personnel Ibrahim N. R. Lootah General Manager 02 6952286 Hassan S. Kishko Head of Finance 02 6721299 M.A. Majid Siddiqui Head of HR & Admin 02 6728785 Khalid Mohammed Bin Amir Head of Operations 02 6776109 Najib Taleb Nasser Head of Commercial Banking Ahmed Majid Lootah Head of Retail Banking 02 6743801 M. Santosh Babu Senior Manager IT 02 6722975 Izzeldin Al Siddiq Salem Mgr - Inspection & Internal Audit 02 6780592 Osman Hamid Suliman Mgr - Banking Relations Dept 02 6787380

02 6275087

Al Ain 03 7655133 Mohd. Sultan Al-Darmaki Bldg., 1st Floor, Old Passport Office Road. Hussain Marzouqul Manager 03 7656482

Deira Mohammed Elayyan Branch Manager

06 5618999

02 6721600 02 6723763 02 6720886 02-6791642 02 6721900 02 6780423 02 6269500

02 6447666 Fax 02 6444429

Arab Emirates Investment Bank PJSC Head Office: Cairo Egypt Regional Office: Dubai ART Tower, Al Mina Road, Opposite Maritime City, Bur Dubai P.O Box 1049 Dubai SWIFT: ARAIAEAD E-mail: [email protected] Web: www.aaib.com

Tel: 04 3937773 Fax: 04 3937774

Management-UAE Hemant Jethwani General Manager Alaa Sobhy Head of Syndication and Asset Trade Mahendran Raman Head of Operations and Liabilities Abu Dhabi Branch Tel: 02 6323400 Fax: 02 6216009 Arab Monetary Fund Bldg., Corniche P.O Box 928, Abu Dhabi

BLOM Bank France SA Dubai Tel 04 2284655 Al Maktoum Street, Deira Dubai, P.O. Box 4370 Fax 04 2236260 email: [email protected] www: www.blombank.ae Bassem Ariss Regional Manager 04 2222355 Samir Hobeika Branch Manager 04 2214648 Michel Germanof Manager Corporate Credit UAE 04 2242067 Mohammad M Ansari Treasurer 04 2224812 Sharjah PO Box 5803, Al Buheira Tower, Al Buheira Corniche Tel 06 5736100 Fax 06 5736080 Mokhtar Kassem Branch Manager

BANKING AND BUSINESS REVIEW

July-August 2009 51

Bank Muscat Dubai Representative Office Dubai Creek Tower, Baniyas Road, Deira P.O. Box 29969, Dubai Lawrence P. Monteiro Chief Representative

Tel 04 2222267 Fax 04 2210115

BBK BSC Dubai-Representative Office Dubai Creek Tower Office 18A, Baniyas Road, Deira PO Box 31115 Website History: Established on 16th March, 1971

04 2210560 Tel 04 2210560 / 70 Fax 04 2210260 www.bbkonline.com

Murad Ali Murad Karim Bucheery Sh. Rashed Al Khalifa

Chairman CEO & GM Deputy General Manager

Dubai ReP-Office: Head of Representative Office Rajiv Kapoor Al-Alwan

CK Jaidev Relationship Manager & Loan Syndications Wafa Relationship Manager & Loan Syndications

Bank of Baroda Dubai Zonal Office: Sheikh Rashid Bldg. Ali Bin Abu Talib Street, Bur Dubai, P.O.Box 3162, Dubai Tel: 04 3531628 E-mail: [email protected] Fax: 04 3530839 UAE Website: www.bankofbarodauae.ae History: Established in 1908, July 20 Nationalized on July 19, 1969 Senior Management & Personnel – Baroda Corporate Centre, Mumbai, India. Dr. A.K. Khandelwal Chairman & Managing Director Mr. V. Santhanavanam Executive Director Mr. S.C. Gupta Executive Director Zonal Office, Dubai: Ashok K. Gupta L.J. Asthana J.K.Jais P.M. Bondarde Sujeet Bhale Rajesh Jain

Chief Executive, (GCC operations) Senior Manager (Credit) Senior Manager (Inspection) Senior Manager (Credit) Senior Manager (Syndication) Senior Manager (Internal Auditor)

04 3538093 04 3531628 04 3531628 04 3531628 04 3531628 04 3531517

Abu Dhabi: Al Halami Centre, Sheikh Hamdan Street 02 6330244/ 6322000 K. Venkateshwarlu Chief Manager 02 6344302 K.Shridhar Senior Manager (Credit) R.G. Shanker Senior Manager (Operations) Al Ain: Clock Tower, Round about, Planning Street Sarabjeet Singh Senior Branch Manager Vijay Kumar Goel Senior Manager (Operations) Dubai:

03 7519880 03 7659554

Sheikh Rashid Bldg.Ali Bin Abu Talib Street,

52 BANKING AND BUSINESS REVIEW

July-August 2009

Bur Dubai, Vinod Malhotra Asst. General Manager Shekhar Tripathi Senior Manager (Operations) M.K. Patel Senior Manager (Credit) Beena Desai Manager (India Desk) Retail banking Shoppe, Dubai Mr. Saravana kumar Mr Ketan Dave Mr Vinay Rathi

04 3531955 04 3534516 04 3530166 04 3534080 04 3537586 04 3534390 04 3540041 04 3540340

Deira Kuwaiti Bldg., Al Rigga, Baniyas Street, Deira Rajiv K. Garg Chief Manager Yuvraj Singh Senior Manager (Operations) P.K. Gambhir Senior Manager (Credit) R.K. Madaan Manager

042287949 04 2286516 04 2286216 04 2292181 04 2292181

Ras Al Khaimah: Al Qasimi Bldg, Oman Street, Al Nakheel P.K.Bhargav Senior Branch Manager

07 2229293 07 2229293

Sharjah Al Mina Road 06 5684231/ 5686232 M.S. Chouhan Asst. General Manager 06 5683273 D. Pathania Senior Manager (Credit) 06 5684231 D. Guha Senior Manager (Operations) 06 5686232 Bank of New York Representative office Suite 402, The Blue Tower, Sh. Khalifa Bin Zayed Street P.O.Box 727, Abu Dhabi Hani Kablawi Managing Director

Tel 02 6263008 Fax 02 6263308

Bank of Sharjah Sharjah Head Office – Al Hosn Avenue Tel 06 5694411 P.O. Box 1394, Sharjah Fax 06 5694422 E-mail: [email protected] History: Established on 22nd December 1973 with Banque Paribas, Paris Ahmed Abdulla Al Noman Chairman Varouj Nerguizian General Manager Mario Tohme Deputy General Manager Fadi Ghosn Deputy General Manager Ali Burheimah Commercial Manager Mohammed Asghar Senior Operations Manager Fares Saade Senior Manager Michel Germanos Risk Manager Jayakumar Menon Finance Manager Berj Tossounian Credit Manager - Sharjah Wahide Assaad    IT Manager Jihad Aoun    Investment Manager Samer Hamed    Audit & Control Manager Abu Dhabi Tel 02 6795555 Al Mina Street, P.O.Box 27391 Fax 02 6795843 Ramzi Saba Senior Manager Mazen El Attar Operations Manager- Abu Dhab Anni Barsoum Credit Manager - Abu Dhabi Dubai Tel 04 2827278 Al Gharoud Street, PO Box 27141 Fax 04 2827270 Nadim Melki Senior Manager Toufic Youakim Credit Manager - Dubai Fadi Haddad Operations Manager - Dubai Al Ain 03 7517171 Khalifa Street, PO Box 84287 Fax 03 75170770 George Dib Branch Manager Rida Higazi Deputy Branch Manager

Barclays Capital Dubai International Financial Centre, Level 9, West Wing, The Gate Building, Sheikh Zayed Road, Dubai Nicholas Hegarthy Managing Director, Head of Middle East & North Africa

Bank Saderat Iran Dubai Regional Office, Al Maktoum Street, P.O. Box 4182

Tel 04-6035555 Fax 04 2229951

Dr.Hamid Borhani                 Regional Manager Abdul Reza Shabahangi         Assistant Regional Manager Mohammad Yousefi Peyhani       Assistant Regional Manager Majid Tavasoli                            H.R. & Organization Dept. Manager Gholamreza Joulaie               Credit Facility Dept. Manager Rahim Erfan Moghaddam        Account Dept. Manager Mehran Arzhang                        Letter of Credit Dept. Manager                Majid Mirnasiri                          Recovery Dept. Manager Hamdi Reza Khalajzadeh         Dealing Dept. Manager Hojatollah Malek Mohammadi    IT Dept. Manager Mansoor Sedaghat Motlagh        Service Dept. Manager  Mohsen Hossein Hosseinpour   Manager of Al Maktoum Branch Gholamreza Ebadi Fard          Manager of Murshid Bazar Branch Saeed Mirzaian Tafti         Manager of Sheikh Zayed Rd. Branch Ferdos Zolfagharian            Manager of Bur Dubai Branch Seifollah Farzan Mehr      Manager of Sharjah Branch Jalil Vosooghi                            Manager of Ajman  Branch Ali Abasteh                       Manager of Abu Dhabi Branch Peyman Sabri                 Manager of Al Ain Branch

Banque Du Caire Abu Dhabi Regional Head Office (02) 6225880 P.O. Box 533, Abu Dhabi Telefax 02-6225881 History: Established on 8th May, 1952 On July 1, 1960 the Amman Branch became independent under the title of Cairo Amman Bank. In July, 1961 the Bank was nationalized. On November 2, 1962 the Lebanese branches were absorbed by Banque Misr-Liban S.A.L On October 1, 1979 fo3rmer branches in Saudi Arabia have been saudized and a new bank was formed under the name of Saudi Cairo Bank. Mohamed kamal Al Deen Barakat Chairman                     Ahmad Sherif Rehab Regional Manager   Abu Dhabi - UAE PO Box 533 Tel:        02-6272525 Abu Dhabi Branch  Mohamad Kamal Farid (Acting Manager) Tel:         02-6273000 Dubai Branch    Labib Abdul Ghaffar Tel:         04-2715175 Sharjah Branch      Tareq Hafez Tel:         06-5739379 Ras Al Khaima      Mohamad Abdul Ghani (Acting Manager) Tel:         07-2332245 Al Ain                          Abdul Hamid  Saeed Tel:         03-7511104

Barclays Bank PLC Dubai Emaar Business Park, Building No. 4, Sheikh Zayed Road P.O. Box: 1891, Dubai Website www.barclays.com Saleem Sheikh Africa Mark Petchell Amin Habib Faizen Mitha Farrukh Zain Florence Goodman David Inglesfield ing Callum Watts-Reham Clients

Tel: 04 3626888 Fax: 04 3663133

Regional Managing Director, Middle East & North Group Country Managing Director Director - Corporate Banking Regional Treasurer Head of Trade Sales Head of Corporate Afffairs & Public Relations Location Manager - International & Premier BankDirector, Market Manager, Gulf - Barclays Private

BLC Bank (France) S.A. Head Office 17-19 Avenue Montaigne 75008 Paris, France Mr. Andre Tyan General Manager

Tel 33 1 56 52 11 00 Fax 33 1 56 52 11 11

Regional Office Dubai Al Maidan Tower, Al Maktoum St. Tel 04 2222291 P.O. Box 4207, Dubai Fax 04 2283935 E-mail: [email protected] Melhem Dagher Administration & Operations Manager Dubai Al Maidan Tower, Al Maktoum St. P.O. Box 4207, Dubai Hamze Abdul Sater Branch Manager Abu Dhabi Mohd. Joan Al Badi Bldg., Hamdan St. P.O. Box 3771 Ghassan Haddad Acting Regional Manager Samir Rached Acting Branch Manager

Tel 04 2222291 Fax 04 2279861

Tel 02 6220055 Fax 02 6222055

Sharjah Al Salam Bldg., Al Mina St. P.O. Box 854 Victor Khoriaty Branch Manager

Tel 06 5724561 Fax 06 5727843

Ras-Al-Khaimah Sheikh Ahmad Bin Saker Al Quasimi Bldg., Al Montaser St. P.O. Box 771 Abd El Hajj Branch Manager

Tel 07 2286222 Fax 07 2275067

BNP Paribas Abd Ahmad Al Hajj Branch Manager Abu Dhabi Khalifa Street, P.O. Box, 2742, Abu Dhabi Marc Checri General Manager

Tel 02 6130400 Fax 02 6268638

Central Bank of the U.A.E Abu Dhabi Tel 02 6652220/6915555 Head Office, Al Bateen Area, Bainoona Street Fax 02 6668483/6668621 P.O.Box: 854, Abu Dhabi, www.cbuae.gov.ae E-mail: [email protected] Swift: CBAU AE AA Reuters dealing code: CBEM History Established in 1980 as a central bank of the United Arab Emirates by a federal decree. Central bank took over the activity of the United Arab Emirates currency board which was established in 1973. Management & Personnel H.E. Sultan Bin Nasser Al-Suwaidi Governor H.E. Mohd. Ali Bin Zayed Al Falasi Deputy Governor Board of Directors H.E. Mohd. Eid M. Jasim Al-Meraikhi H.E. Jumaa Al-Majid

BANKING AND BUSINESS REVIEW

Chairman Vice Chairman

July-August 2009 53

H.E. Sultan Bin Nasser Al-Suwaidi

Governor

Members Ali Al-Sayed Abdulla, Jamal Nasser Lootah, Khalifa Nasser Bin Huwaileel, Saeed Rashid Al Yateem Al Muhairy Executive Directors Saeed Abdulla Al Hamiz nation Dept. Rashid Mohamed Al Fandi Saif Hadef Al Shamesi Salem Ahmed Al-Hammadi Abdulla Hamad Al-Zaabi Jamal Ebrahim Al Mutawaa

Executive Director-Banking Supervision & ExamiExecutive Director - Banking Operations Dept. Executive Director - Treasury Department Executive Director - Research & Statistics Department Executive Director - Internal Audit Department Executive Director - Administration Department

Economic Advisors Abed Alla Osama Malki, Mohammed Zeitouni Bechri Portfolio Managers Mohammed Abdulla Mohammed, Brian Gardner Anti-Money Laundering & Suspicious Cases Unit Abdul Rahim Mohamed Al Awadi Asst. Executive Director General Secretariat & Legal Affairs Division Salem Said Al Kubaisi

Senior Manager

Financial Control Department Hassan Ibrahim Al Hamar

Senior Manager

Personnel Division Ali Ghurair Al Romaithi

Senior Manager

Correspondent Banking Division Sultan Rashed Al-Sakeb

Senior Manager

Public Relations Division Abdul Raheem Abdullah

Manager

Information Technology Division/ UAE Switch Division Khalifa Al Dhaheri

Senior Manager

Dubai P.O. Box 448 Omar Al Qaizi Manager-in-Charge

Tel: 04 3939777 Fax: 04 3937802

Sharjah Tel: 06 5592592 Old Airport Road, Opp. Immigration Bldg., P.O. Box 645, Sharjah Fax: 06 5593977 Zakaria Abdul Aziz Al Suwaidi Senior Manager Ras Al Khaimah Al Nakheel, Oman Street, P.O. Box 5000 Salem Jasem Al Baker Asst. Executive Director

Tel: 07 2284444 Fax: 07 2284646

Fujairah P.O. Box 768, Fujairah Ali Mubarak Saeed Abbad Senior Manager

Tel: 09 2224040 Fax: 09 2226805

Al Ain Ali Ibn Abee Taleb Street, Oud Al Touba P.O. Box 1414 Ajlan Ahmed Al Qubaisi Asst. Executive Director

Tel: 03 656656 Fax: 03 664777

Citibank N.A (UAE Branches) Date of Establishment 1964 Nationality USA Legal Status

54 BANKING AND BUSINESS REVIEW

July-August 2009

Commercial Banking Services (F) Regional Head Office Oud Metha Towers P.O Box 749, Dubai – UAE Tel: 04- 3245000 Telex: 023 6738736 Cable: CITIBAEM Swift: CITIAEAD Reuters: N/A Email: [email protected] Website: www.citibank.ae Auditors: KPMG Domestic Branches: Al Wasl Road Branch (Main Branch) Tel: 04 3245000 Oud Metha Road, P.O Box 749 Dubai Branch (Next to Burjuman) Tel: Abu Dhabi Branch Tel: 02 6982206 Al Salam Street, Next to Lulu Center Fax: 02 6726381 P.O Box 999, Abu Dhabi Sharjah Branch Tel: 06 5072101 Beside Sharjah Emigration, Fax: 06 5723378 Opposite Civil Court. Sharjah Al Ain Branch Tel: 03 7641090 Sh. Zayed Street Fax: 03 7663887 Broad of Directors: N/A General Management: Mohammed E. Al- Shroogi, MD for the Middle East and Chief Executive Officer, UAE Sanjoy Sen, Country Business Manager Global Consumer Group - U.A.E Mohammed Azab, Chief Officer, UAE Offices, Citi Private Bank

Clearstream Banking Dubai Tel 04 3310644 City Tower 2, Sheikh Zayed Road Fax 04 3316973 Website: www.clearstream.com Robert Tabet Vice President Middle East & North Africa

Commercial Bank International Dubai Tel 04 2275265 Head Office Dubai  Al Riqqa Street Deira , P.O  Box 4449                       Tel : 04  2275265   Website : www.cbiuae.com   Hamad Al Mutawaa H.E. Humaid Al Qatami Abdulla Rashid Omran

Fax : 04 2279038

Mohammed Saadeh Abdulla Amer Jasem Hesham Abdulla Ahmed Mustafa Tahoun Ramanthan Murgappan Zainab Nour Aldin Yousef Haddad Bashir Haji Mohd A.D.Abooty K.E Mammoo Faris Saddi Yousef Al Marshoudi Tariq Selaij Ameena Bin Kaali Ahmed Al Junaibi Abdulla Ali Almadhani Mohammed Ishaq Ahmed Darwish

Head of GBG 04 2126500 Head of HR & Admin 04 2126466 Head of Branches & Services 04 6020615 Head of Internal Audit & compliance Division 04  2126603 Senior Manpower planning & Recruitment Manager 04 2126444 Employee Relations Manager 04 2126 442 Planning & Development Manager 04 2126190 Chief Dealer 04 2126214 Head Of Operations & Finance 04 2126291 Accounts Manager 04 2126215 Chief information Officer 04 2060700 Dubai Branch Manager 04-2275265 Bur Dubai Manager 04-3559577 Sheikh Zayed Branch Manager 04 3405555 Abu Dhabi Branch Manager 02-6913111 Al Ain Branch Manager 03 7669994 RAK  Branch Manager (AL Manar Mall) 07 2274777 RAK  Branch Manager (Nakhel Branch) 07 2227555

Chairman   Deputy Chairman   Managing Director and Board Member 04  2242104

Alyia Al Mulla Ahmed Bin Masood Fujairah Branch Manager

Sharjah Branch Manager

Dubai Main Branch (Al Riqqa Street) Yousef Al Marshaudi Branch manager Bur Dubai Tariq Sulaij Branch manager Sheikh Zayed Road Ameena Mhd. Bin Kaadi Branch manager Abu Dhabi Ahmed Sulaim Al Junaibi Branch Manager AL AIN Abdulla Ali Branch manager Ras Al Khaimah Khaled Al Mannai Branch Manager (Manar Mall) Ahmed Yousef A. Darwish Branch Manager (Nakeel Branch) Sharjah Aliya Al Mulla Branch manager

06 512100 09 2011777 04 2126101 04 3555511 04 3405555 02 6264400 03 7669994 07 2274777 07 2227555 06 5687666

Commercial Bank of Dubai Main Branch , Al Ittihad Street, Port Saeed, Dubai Ibrahim Salama Branch Manager 04 212 1000 Dubai Branch, Mankhool Street, Dubai Amer Al Shamali Branch Manager 04 352 3355 AL Maktoum Branch, Abu Baker Al Siddique Street Ahmed Al Aboodi Branch Manager 04 268 3555 Deira Branch, Baniyas Street Mohammad Al-Sayed Al-Hashemi Branch Manager 04 225 3222 Baniyas Square Branch, Al Maktoum Hospital Street Mohd. Al Lawati Branch Manager 04 228 9000 Jebel Ali Branch, Jebel Ali Free Zone Mohammed Abdulla Mardood Branch Manager 04 881 8882 Jumeirah Branch, Jumeirah Beach Road Areffa Al Hashimi Branch Manager 04 344 1438 Sheikh Zayed Road Branch, Ghaya Towers, Sheikh Zayed Road Maher Marzouqi Branch Manager 04 334 777 Al Garhoud Branch, Al Haj Saleh Bin Lahej Building, Al Garhoud Street-Deira Ali Salman Branch Manager 04 282 6444 Al Qusais Branch ,Al Nahda Street Abdullah Lootah Branch Manager 04 261 5000 Souq Al Wasl Branch, Souq Al Wasl Street Taher Mohammed Branch Manager 04 227 6111 Al Aweer Branch, Central Fruit and Vegetable Market, Al Aweer Ibrahim Al Ramsi Branch Manager 04 320 1222 Naturalization and Residence , Administration – Dubai Branch Adel Abdul Aziz Branch Manager 04 398 5000 Mr. Jamal Saleh Assistant General Manager, Head of Risk Management Abu Dhabi Branch, Corniche Street Wael Ahmed Mahfouz Branch Manager 02 626 8400 Musaffah Branch , Al Firdoos Building, Mussaffah Area M/3 Zahir M. Suaiman Branch Manager 02 555 5510 Khalidiya Branch, Khalidiya street Sultan Ali Al Assiry Branch Manager 02 667 9929 AL Ain Branch, Al Takhtit Street, Clock Tower Khalid Abdel Hadi Branch Manager 03 766 7800 Sharjah Branch, Immigration Road Abdul Aziz AL Ansari Branch Manager 06 574 0666 Ajman Branch, Shk.Humaid Abdul Aziz Street Marwan Ebrahim Mohammed Branch Manager 06 745 6668 Ras Al Khaimah Branch, Al Nakheel Area, Oman Street Ebrahim Ahmed Al Zaabi Branch Manager 07 228 6266 Fujairah Branch , Al Gurfa Road, Near Al Mibkhar Roundabout Abdullah Al Suwaidi Branch Manager 09 222 5111 H.E. Ahmed Humaid Al Tayer Chairman H.E. Saeed Ahmed Ghobash Deputy Chairman

H.E. Saeed Mohd Al Ghandi Deputy Chairman Mr. Abdul Wahed Al Rostamani Director Mr. Abdul Rehman Saif Al Ghurair Director Mr. Saeed Mohd Al Mulla Director Mr. Khaled Juma Al Majid Director Mr. Omar Abdulla Al Futtaim Director Mr. Peter Baltussen Chief Executive Mr. Yaqoob Yousuf Hassan Deputy Chief Executive Mr. Ibrahim Abdulla General Manager, Administration & Finance Mr. Mahmoud Hadi General Manager, Central Operations Mr. Faisal Galadari General Manager, Business group Mr. Ahmed Shaheen General Manager, Credit Group Mr. Abdul Rahim Al Nimer General Manager, Financial Services Mr. Stephen Davies Deputy General Manager, Corporate Banking Mr. Moukarram Att asi Deputy General Manager, Asset Management Mr. Thomas Smith Deputy General Manager, Head of Retail Mr. John Tuke Deputy General Manager, Treasury & ALM Mr. V.P Bhatia Assistant General Manager, Treasury Mr. Masood Azhar Assistant General Manager, SPD Mr. Amir Afzal Assistant General Manager, IT Mr. Adel Al Sammak Assistant General Manager, Corporate Banking Mr. Kanan Iyer Assistant General Manager – Internal Audit Mr. Clive Harrison Assistant General Manager – HR Mr. Alan Kerr Assistant General Manager, Corporate Banking Mr. Alan Hill Assistant General Manager, Treasury & Investment

Coutts & Co.

Representative Office - Dubai Tel 04 2217007 Twin Towers, Baniyas Street, Deira Fax 04 2217006 P.O. Box 42220 Sarah Deaves CEO Sandra Shaw General Manager Martin Bond Private Banker

Calyon Corporate & Investment Bank

  (Previously Crédit Agricole Indosuez & Crédit Lyonnais)   Dubai World Trade Centre, Level 32                            Tel:      04 3314211 P.O.Box: 9256                                                            Fax:     04 3313201 Website: www.calyon.com Amr Alkabbani                         Regional Manager – Gulf      04 3317316 Ludovic Bernard-Maissa          Regional COO                                                                                       Eric Fromaget                          Head of Private Banking         04 3321300 Sebastian Van der List            Head of Corporate Banking – UAE      04 3315836 Naeem Khan                            Trade Finance          04 3291055 Albert Mondjian                       Head of Investment Banking – MEA    04 4284803   Abu Dhabi Al Muhairy Centre, Level 5              Tel:      02 6351100 Block C, Sheikh Zayed the First Street          Fax:     02 6344995 P.O.Box: 4725 Ghazi Abdul Fattah                  Branch Manager           02 6351991

Credit Suisse Abu Dhabi Dhabi Tower, 4th floor, Sheikh Hamdan Street P.O.Box 47060 Jean-Marc Suter Director Dubai P.O. Box 33660

BANKING AND BUSINESS REVIEW

Tel 02 6275048 Fax 02 6274109

04 3620000

July-August 2009 55

The Gate bldg, 9th Floor Fax 04 3620001 Dubai International Finance Centre ( DIFC), Dubai Head of Regional Office Beat Naegell

Deutsche Bank A G Abu Dhabi P.O.Box 52333 E-mail: [email protected] Jens Moeller Representative

Tel 02 6333122 Fax 02 6322044

Dubai P.O. Box: 50490 Emirates Towers, Level 27b Fax 04 3199560 Karl French Director Tel : 04 3199514 Private Wealth Management - Asia Nadeem Masud Director Tel : 04 3199524 Global Markets Harris Irfan Vice President Tel : 04 3199520 Global Equities & Derivatives Rohit Johri Vice President Tel : 04 3199522 Private Wealth Management - Asia

Dresdner Bank AG Dubai Representative Office Burjuman Business Towers, 10th Floor, Office 1011 Bur Dubai, P.O. Box: 25654 Tel 04 3596444 Fax 04 3596116 E-mail: [email protected] Bashar A. Barakat

Tel 04 3328989 Fax 04 3290071

History: Established in September 2002 Chief Executive Officer

Dubai Islamic Bank Head Office Al Maktoum Street, Dubai Tel 04 2953000 P.O. Box 1080, Dubai Fax 04 2954111 Website: www.alislami.co.ae History: Established March 12, 1975 Dr. Mohammed Khalfan Bin- Kharbash Chairman Butti Khalifah Bin Darish Al- Falasi CEO Saad Mohammed Abdul Razzaq Deputy CEO Mohd. Saeed Al Sharif Executive Vice President-Finance Arif Ahmed Al Koheji Executive Vice President-Investment Banking Abdullah Ali Al Hamli Executive Vice President - Business Services Ahmed Mohammed Fadel Legal Consultant and Board Secretary Branches

56 BANKING AND BUSINESS REVIEW

El Nilein Bank Abu Dhabi P.O.Box 46013 Tel 02 6269995 Fax 02 6275551 Abdulla Mahmoud Awad Manager Tel 02 6720934 Mohamed Osman Salih Deputy Manager 02 6761916 Murlidhar G. Ramchandani Chief Accountant & Dealer 02-6729300 Ahmed Hillali Ahmed Head Investment Dept. & Credit 02-6729300

Dubai Main Branch, Baniyas Road, Deira Tel 04 2256900 P.O. Box 2923, Dubai Fax 04 2267718

Dubai Bank

Ziad Makkawi

04 2959999 04 2233300 04-3437777 04 3907777 04 3971717 04 3429955 04 3406000 06 7466555 06 5726444 06 5584455 06 8826682 09 2370080 02 6346600 02 6677119 02 6450555 02 5825511 03 7644111 03 7515155 07 2284888 09 2221550

Emirates Bank International

Chief Representative Regional Head GCC & Yemen

Main Office Sheikh Zayed Road, Near Dubai World Trade Centre P.O. Box 65555, Dubai E-mail: [email protected] Website: www.dubaibank.ae

Deira Main Branch Al Souk Sheikh Zayed Rd Nad Al Shiba Bur Dubai Jumeirah Ladies Branch Al Barsha Ajman Sharjah Wasit Road Al Dhaid Khorfakan Abu Dhabi Khalidiah Ladies Branch Al Salam Bani Yas Al Ain Al Ain Mall Ras Al Kheimah Fujairah

July-August 2009

Branches Abu Dhabi Hameed Sheikh Manager Al Ain Ghanim Al Hajeri Manager Al Maktoum Ali Malallah Manager Al Quoz Mohd. Abdulla Manager Baniyas Square Sherif Al Ulama Manager Bander Talib Fareed Aquilli Manager Dubai Main Branch Amal Al Qamzi Manager Fujairah Yousif Al Marshoudi Manager Internet City Balakrishnan Nair Manager Galleria Farida Al Balooshi Manager IBN Gardens Hamdan Mohd. Abdulla Manager Jebel Ali Free Zone Abdul Rahman Ibrahim Manager Karama Muna Al Falahi Manager

02 6455151 03 7510055/77

09 2222114/110 04 3910840/1

04 8844689 04 8815551

Karama Shopping Complex Nawal Al Khader Manager Mankhool Abdul Rahim Abdulla Manager Qiyadah Fatima Al Midfa Manager Ghusais Fatima Al Midfa Manager Ramoul Ibrahim Hassan Manager Ras Al Khaimah 07 2272333 Khalifa Bin Kalban Manager Satwa Mohamed Bilal Manager Sharjah Industrial Area 06 5345577 Mohamed Al Shouq Manager Sharjah 06 5733300 Mahmoud Saif Manager Souk Samia Al Aqady Manager Umm Suqueim Nazia Kalban Manager Tower Saif Al Mansoori Manager World Trade Centre Abdulla Sulaij Al Falasi Manager Najdah 02 6771919 Butti Al Assiri Manager

Emirates Industrial Bank Abu Dhabi - Head Office Tel 02 6339700 P.O. Box 2722, Abu Dhabi Fax 02 6319191/6326397 E-mail: [email protected] Dubai Tel 04 2211300 Arbift Tower, Deira P.O. Box 5454, Dubai Fax 04 2232320 E-mail: [email protected] Website: www.emiratesindustrialbank.net Senior Management Personnel/Branch ManagerMohamed Abdulbaki Mohamed General Manager Ahmed Mohamed Bakhit Khalfan Deputy General Manager Abdullah Rashed Omran Dubai Branch Manager Khalifa Al Falasi Acting Projects Division Manager Ali Ahmed Al Essa Development Services Division Manager Nasser Haji Malek Administration Manager Essa A. Bu Al Rougha Internal Audit Manager Mohamed Moneir Makled Finance Manager Salem Abu Baker Salem Acting Loans Division Manager

Emirates Islamic Bank P.O. Box: 6564, 2nd & 3rd Floor, Al Gurg Tower 1 Tel: 04 3160330 Plot 372 - Riggat Al Buteen, Deira, Dubai. Fax: 04 2272172 www.emiratesislamicbank.ae Ebrahim Fayez Al Shamsi CEO 04 3160330 Abdulla Showaiter (General manager – corporate and investment banking) Faisal Aqil General manager – retail banking Ahmed Fayez Alshamsi chief financial officer Syed Imran Bashir          Head of marketing and product development Samih Mohd Qadri Awadalla        head of branches Nasir Ahmed Khan                       head of consumer finance Zahir Mulla                                head of operations

IMB (Main Branch) P.O. Box: 6564, Al Gurg Tower 2, Riggat Al Buteen, Dubai. BUD (Bur Dubai) P.O. Box: 6564, Khalid Bin Walid Road, Dubai. DFR (Diyafa) P.O. Box: 6564, Diyafa Road, Dubai. RIQ (Riqqa) P.O. Box: 6564, Omar Bin Al Khattab Street, Dubai. ADC (Abu Dhabi) P.O. Box: 46077, Sheikh Rashid Bin Saeed Al Maktoum Street, Abu Dbahi. ROS (Ras Al-Khaima) P.O. Box: 5198, 191 Oman Street, Al Nakeel, Ras Al Khaima. Fuj (Fujairah) P.O. Box: 1472, Sheikh Hamad Bin Abdulla Street, Fujairah. AJS (Al Ain) P.O. Box: 15095, Jawazat Street, Al Ain. QFS (Umm Al-Qaiwain) P.O. Box: 315, King Faisal Road, Umm Al Qaiwain. SBA (Sharjah) P.O. Box: 5169, Al Arooba Bank Street, Sharjah.

Finance House P.J.S.C. Mr. Mohammed Abdullah Jumaa Al Qubaisi

Chairman

Mr. Abdul Hamid Umer Taylor General Manager 02 6194998 Mr. T.K. Raman Chief Operating Officer 02 6194889 Mr. Mohammed Wassim Khayata Executive VP – Strategic Planning 02 6194445 Mr. Ramesh S. Mahalingam Chief Investments & Financial Officer 02 6194601 Mrs. Shagufta Farid Khan Head of Internal Audit 02 6194223 Ms. Lina Abdul Hamid I. El Araj Manager – General Services 02 6194702 Mr. Tarek Soubra Vice President – Central Operations 02 6194362 Ms. Maha Al Jamal

Senior Manager – Marketing

02 6194893

First Gulf Bank Abu Dhabi Tel 02 6816666 Head Office, Sh. Zayed Second Street, Khalidiya P.O. Box 6316, Abu Dhabi Website: www.fbg.ae History: Established in 1979 Shareholder Equity of over AED 10 billion Senior Management Abdulhamid Mohammed Saeed Managing Director 02 6920502 Andre’ Sayegh Chief Executive Officer 02 6920506 Amit Wanchoo Head of Retail Banking Group Arif Shaikh Chief Credit & Risk Officer George Abraham Head of Corporate Banking Gopi Krishna Madhavan Head of Human Resources Hana Al Rostamani Strategic Planning Head Karim Karoui Head of Business Planning & Financial Control Nadeem A. Siddiqui Head of International Business Shafiqur Rehman Adhami SR. VP, CB FI\SYN\MNC\OIL & Energy Sector Zafar Habib Khan Chief Investment Officer Zulfiquar Ali Sulaiman Business Support Director

Habib Bank A.G. Zurich Head Office: Zurich, Switzerland Zonal Office: Dubai Tel 04 2214535 Baniyas Square Deira, P.O. Box 3306 Fax 04 2284211 E-mail: [email protected] Website: www.habibbank.com History: Established in 1967 Reza S. Habib Joint President Arif Lakhani Chief Executive Vice President 04 2229985 Asad Habib Senior EVP Afzal Memon Senior EVP Shariq Ali Senior EVP Deira Mains 04 2214535 Najibullah Khan Branch Manager Farrukh Iqbal Deputy Branch Manager Corporate 04 3513777 Awais Hasan Branch Manager Sharjeel Vijdani Deputy Branch Manager Al Fahidi Street 04 3534545

BANKING AND BUSINESS REVIEW

July-August 2009 57

Zain Ghazali Branch Manager Abdul Basheer Deputy Branch Manager Jebel Ali Nisar Chowdhary Branch Manager Ifthikhar Memon Deputy Branch Manager Sh.Zayed Branch Zia Abbas Mirza Branch Manager Kashif Aijaz Dodhy Deputy Branch Manager Abu Dhabi Sh. Hamdan Imamat Naqvi Area Manager Farhan Bakhshy Branch Manager Al Falah Syed Akhtar Hussain Branch Manager Raid Saleem Ansari Deputy Branch Manager Sharjah Al Boorj Avenue Younus Warsi Area Manager Kausarullah Khan Branch Manager

04 8812828 04 3313999

02 6346888 02 6422600 06 5730004

Habib Bank limited Abu Dhabi Tel 02 6224688 Main Branch, Corniche Road, P.O.Box 897, Abu Dhabi Fax 02 6225620 E-mail: [email protected] History: Established on August 25, 1941Nationalised on January 1, 1974 On June 1974 absorbed Habib Bank Ltd. On June 30, 1975 absorbed Standard Bank Ltd., Karachi Aman Aziz Siddiqi EVP/RGM 04 3597753 Mohammad Tanvir HR. Manager 04 3592292 Fouad Farrukh GRM 04 3592214 Sh. Abdul Basit AVP/CAD Manager 04 3592539 M. Amin Usman AVP/Treasury 04 3591893 Ahmed Faraz Faruqi VP/Head ICU 04 3592517 Nadeem Zia VP/Head FINCON 04 3592292 Syed Ali Gohar VP/IT/Head 04 3592820 Abdul Shahid Khan VP/Head Cops 04 3591874 Abu Dhabi Sh. Zayed Road, 2nd Street Mushtaq H. Shah Service Manager 02 6344557 Abu Dhabi Main Branch M. Saadat Cheema VP/Chief Manager 02 6224655 Al Ain 03 7642555 Abdul Jalil Al Fahim Bldg. Adbul Hameed Khan AVP/Senior Manager 03 7642555 Dubai Regional Office Sahibzada M. Taimur SVP/Corporate Manager 04 3596922 Sameera Mohammad Service Manager 04 3592016 Sheikh Zayed Road, Kalantar Tower Khalid Bin Shaheen SVP/Director 04 3431421 Mahdi Hassan Business Development Manager 04 3438081 Isar-Ul-Haq Service Manager 04 3438081 Deira Branch, Creek Road Zulfiqar Ahmad Bhatti Service Manager 04 2253292 Sharjah 06 5682552 / 5683473 Al Boorj Avenue Assad Ali Shaikh AVP/Branch Manager 06 5695122 Dhaid & Dibba 06 8822249 Near Al Dhaid Police Station 06 8822249 Abdul Sattar Badi Service Manager 06 8822249

HDFC Bank Representative Office: Dubai

58 BANKING AND BUSINESS REVIEW

Juma Al Majid Bldg., Opp Bur Juman Centre P O Box 64546, Email: [email protected] Faisal Saeed Cheif Representative

Tel 04 3966991

July-August 2009

Fax 04 3967010 Tel 04 3966991

HSBC Bank Middle East Ltd Head Office: Jersey, Channel Island Middle East Management Office, Dubai Internet City Tel: 04 3904722 Fax: 04 3906607 HSBC Bldg., Dubai Internet City, P.O. Box: 66, Dubai, UAE Web: www.hsbc.ae UAE Web: www.uae.hsbc.com Youssef Nasr Chairman David Hodgkinson Director Ken Matheson Regional Chief Operating Officer Abu Dhabi 02 6332200/6152215 Al Ain 03 7641812 Dubai 04 3535000 Deira 04 2227161 Fujeirah 09 2222221 Jebel Ali 04 8846133 Ras Al Khaimah 07 2333544 Sharjah 06 5537222

IndusInd Bank Dubai Representative Office Tel 04 3978803 203, Safa Commercial Bldg. Fax 04 3978805 Opp. Bur Juman Centre, P.O. Box: 111873, Dubai. E-mail: [email protected] Pradeep Gupta Vice President & Chief Representative 04 3978804

ING Asia Private Bank Ltd Dubai Representative Office Tel 04 4277100 602, Level 6, Building 4 Fax 04 4257801 Burj Dubai Square Sheikh Zayed Road P.O Box 4296, Dubai – UAE Suresh Nanda Managing Director & Head Eric Lorentz Managing Director Varun Bukshi Executive Director Melwyn Dias Executive Director B.R. Subramanian P.G. Bhaskar Ranjit Paul Piyush Bhandari Nitin Bhatnagar Rishi Chauhan Asad Dadarkar Ashraf Al Yamani

Director Director Director Director Director Director Director Director

InvestBank Sharjah Tel 06 5694440 Al Boorj Avenue, P.O. Box 1885 Fax 06-5694442 E-mail: [email protected] Website: www.invest-bank.com History: Established on 2nd February 1975 as Investment Bank for Trade & Finance On July 1, 1995 name changed to Investbank. Sami Farhat General Manager

Qasim Kazmi AGM. Operations & Treasury Taleb Zaarour Senior Manager-ADM & Legal Athar Anis Manager, Credit Risk Bassam Hollmerus Chief Dealer Sajjad H. Holimerus Trade Finance Madhu Pilakazhi Financial Controller Ghassan Accari Personnel Manager Vinay Gupta IT Manager Dubai Sheikh Zayed Road Dubai Al Maktoum Street Al Ain Al Ghaba Street Abu Dhabi Sh. Khalifa street Abu Dhabi Mussaffa Area Sharjah Industrial Area

Dubai Customer Service Centres Community Centre at Arabian Ranches, Dubai Dubai Healthcare City (Behind Wafi City)

04 3213131 04 2285551 03 7644446 02 6794594 02 5555336 06 5420333

Janata Bank Abu Dhabi Obied Sayah Al-Mansuri Building Tel No 02-6331400 Electra Road, Post Box No. 2630 Fax : 02-6348749 Email [email protected] Mr. Md. Masuduzzaman Chief Executive 02-6344543 Mr. Md. Chaynul Haque IT Manager/SPO 02-6340881 Mr. Md. Ramjan Bahar System Administrator/PO 02-6340881 Abu Dhabi Mr. Mohamudul Hoque Manager 0 2-6344542 Dubai Mr. Md. Abdul Awal Manager Mohammad Saleh Al-Gurg Building 0 4-2281442 Al-Borj Street, P.O. Box 3342 Mr. Md. Mizanur Rahman Manager Sharjah Saqer Bin Rashid Al Quassim Building Al Suwaiheen Street, P.O. Box- 5303 0 6-5687032 Mr. Md. Mizanur Rahman Manager Al Ain Branch Mr. Md Shahadat Hossain Manager Sk. Khalifa Bin Mohd. Al-Nahyan Building, Main Market Centre, Main Street, P.O. Box- 1107 0 3-7513425

Lloyds TSB Bank plc Dubai Main Branch Al Wasl Road, Opp. Safa Park Tel 04 3422000 P.O. Box: 3766, Dubai, UAE Fax 04 3422660 E-mail: [email protected] Website: www.lloydstsb.ae Vivek Vohra Head of Corporate Origination Giles Cunningham Regional Manager, UAE & Gulf States 04 3023267 Bert de Ruiter Managing Director 04 3023267 Steve Williams Consumer Banking Director 04 3023267 Jon Mortell Head of Corporate Banking 04 3023266 Suresh Jadhwani Treasury Manager 04 3023256 Tim Goddard Head of Operations and IT 04 3023250 Derek Vaz Head of Finance and Planning 04 3023330 Caroline Ridley HR Manager 04 3023270 Steve Snowdon  Head of Middle Office Alex de Melo Head of Treasury Trading Edson Suppo Head of Treasury Strategy & Risk Claire Thomas Head of Human Resources

Tel 04 3023318 Fax 04 3618035 Tel 04 3023349 Fax 04 3624805

Man Investments Middle East Limited Representative Office Dubai Tel 04 3604999 Level 5, West Wing, The Gate, Dubai Internaional Financial Centre Fax 04 3604900 P.O. Box: 73221, Dubai Website: www.maninvestments.com E-mail: [email protected] Patrik Merville Chief Executive Officer Kamlesh Bhatia Deputy Chief Executive Officer

Mashreqbank Dubai Tel 04 2223333 Head Office, Omar Bin Al Khatab Street, Deira Fax 04 2226061 P.O. Box 1250, Dubai History: Established on 1st May, 1967 as Bank of Oman Limited. On October 1st 1993 name was changed to MashreqBank PSC. bdullah Al Ghurair President and Chairman Abdul Aziz Al Ghurair CEO Ali Raza Khan Head of Corporate Affairs Douglas Beckett Head of Retail Banking Omar Bouhadiba Head of Investment and Corporate Banking Nabeel Waheed Head of Treasury and Capital Markets Nigel Morgan Head of Audit Review & Compliance Majid Husain Head of Financial Institutions Somnath Menon Head of Operations & Technology Kantic DasGupta Head of Risk Management Alexander Sinclair Head of Technology Mubashar Khokhar CEO of Badr Al Islami Ebrahim Kazi Head of Marketing and Corporate Communications Saad Hakim Events and Public Relations Manager Al Khaleej Street, Deira 04 2717771 Souq Al Kabir Branch 04 2264176 Hor Al Anz, Deira 04 2623100 Jumeirah Branch 04 3441600 Jebel Ali 04 8815355 Khor Branch 04 3534000 Bur Juman Centre 04 3527103 Al Riqa, Deira 04 2229131 Al Aweer 04 3333727 Abu Dhabi 02 6274300 Main Branch, Khalifa Street Musaffa 02 5555051 Zayed the 2nd Street 02 6334021 Al Salam Street 02 6786500 Al Mushrif 02 4432424 Baniyas 02 5821100 Muroor 02 4481858 Khalidiya 02 6665757 Al Ain 03 7667700 Al Ain Main Street Ali Ibn Abi Tailb St. 03 7669968 Ajman 06 7422440 Shk Humaid Bin Abdul Aziz Street, Near Ajman Museum Fujairah 09 2221100 Sh. Hamad Street Ras Al Khaimah 07 2361644 King Faisal Street.

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July-August 2009 59

Al Nakheel RAK Sharjah Main Bank Street, Rolla King Abdul Aziz Street Dhaid Main Street, Sh. Arsan Hameed Bldg., Dhaid Dibba Kalba Kalba City Khorfakkan Umm Al Quwain King Faisal Street, Next to New Souk

07 2281695 06 5684366 06 5730883 06 8822899 09 2444230 09 2777430 09 2385295 06 7666948

Merill Lynch International & Co.C.V Representative Office Dubai (04) 3975555 Business Center Building, Khalid Bin Walid Street P.O. Box 3911, Dubai Telefax Executive Director

04-3975252 Mones Bazzy

NATIXIS Dubai Branch DIFC Gate Village Building No. 8, 5th Floor P.O Box 33770 Email: [email protected] Website: www.natixis.fr Philippe Petitgas CEO

Tel 04 7026777 Fax 04 7026820

National Bank of Abu Dhabi Head Office: Abu Dhabi 02 - 6111111 One NBAD Tower, Khalifa St., P.O. Box 4, Abu Dhabi Telex 22266/7 MASRIP EM History: Established in 1968 H.E. KHALIFA MOHAMED AL KINDI Chairman H.E. DR. JAUAN SALEM AL DHAHIRI Deputy Chairman MICHAEL H. TOMALIN Chief Executive ABDULLA MOHAMMED SALEH ABDULRAHEEM GM & Chief Operating Officer SAIF ALI MOHAMED MUNAKHAS AL SHEHHI GM Domestic Banking Division QAMBER ALI AL MULLA GM International Banking Division ABHIJIT CHOUDHURY GM & Chief Risk Officer JOHN GARRETT GM & Chief Audit & Compliance Officer Abu Dhabi Main Branch 02 - 6111111 Khalidiya 02 - 6666800 Dept. of Social Services & Commercial Buildings 02 - 6346673 ADCO 02 - 6672642 ADMA 02 - 6263225 ADNOC 02 - 6669143 Abu Dhabi Municipality 02 - 6744749 NPCC 02 - 5549282 ZADCO 02 - 6768821 HILTON 02 - 6812280 Abu Dhabi International Airport 02 - 5757303 Sheikh Rashed Bin Saeed Al Maktoum Road 02 - 6419800 Abu Dhabi Mall 02 - 6452200 Arabian Gulf Road 02 - 4478878 Baniyas 02 - 5831625 Bateen 02 - 6658332 Between The Two Bridges Area 02 - 5589446 Corniche 02 - 6220300

60 BANKING AND BUSINESS REVIEW

July-August 2009

Dalma Island TAMM Das Island Liwa Madinat Zayed Government Complex Al Mirfaa Al Ruwais Al Muroor Mussafah Dept. of Social Services & Commercial Buildings (Mussafah) Mussafah Municipality Industrial City of Abu Dhabi Al Salam St. Al Shahama New Al Shahama Abu Dhabi Municipality-Shahama Sweihan Marina Mall Al Etihad Emirates Palace National Exhibition Centre Mina Road

02 - 8781240 02 - 8945528 02 - 8731099 02 - 8822388 02 - 8846146 02 - 8945428 02 - 8836506 02 - 8776343 02 - 4481918 02 - 5553357 02 - 5520681 02 - 5540300 02 - 5501125 02 - 6442900 02 - 5632411 02 - 5635695 02 - 5631385 03 - 7347919 02 - 6816002 02 - 6111111 02 - 6908900 02 - 4494996 02 - 6767665

Al Alin Al Ain Clock Tower Al Ain Al Ain Cement Factory Al Ain International Airport Al Ain Defence Al Sanaiya Al Hayer Al Ain Mall

03 - 7642400 03 - 7516900 03 - 7828060 03 - 7855511 03 - 7688824 03 - 7213222 02 - 7322400 03 - 7519900

Ajman Ajman

06 - 7422996

Dubai Deira Dubai Side Jebel Ali Sh. Zayed Road Al Qusais Jumeirah Mall of the Emirates

04 - 2226141 04 - 3599111 04 - 8815655 04 - 3433311 04 - 2674176 04 - 3499001 04 - 3413888

Fujairah Fujairah Dibba

09 - 2222458 09 - 2444223

Ras Al Khaimah Al Nakheel Ras Al Khaimah

07 - 2281753 07 - 2334333

Sharjah Al Bourj Avenue Sharjah Al Falah Camp Office Al Dhaid Khorfakkan Kalba

06 - 5695500 06 - 5721111 06 - 5385969 06 - 8822929 09 - 2385250 09 - 2772112

Umm Al Quwain Umm Al Quwain

06 - 7660033

National Bank of Bahrain Abu Dhabi Khalaf Bin Ahmed Al Otaiba Building, Sh. Hamdan Street P.O.Box 46080 Email: [email protected] Website: www.nbbonline.com Farouk Khalaf Ingersoll Ramalingam

UAE Country Manager Manager Credit

Tel 02 6335288 Fax 02 6333783

02 6335299 02 6311248

National Bank of Dubai Dubai Tel 04 2222111 Head Office Baniyas Street, Deira Fax 04 2283000 P.O. Box 777 Email: [email protected] Website: www.nbd.com History: Established in1963 as National Bank of Dubai Limited. In 1994 name was changed to National Bank of Dubai. R. Douglas Dowie Joyshil Mitter Alex Richardson Leslic Rice Abdul Shakoor Tahlak Ghanim Bin Zaal Ali Al Najjar Suvo Sarkar Rajesh Thaper Faranak Foroughi Husam Al Sayad G. Krishnamoorthy Sue Evans Alan M. Smith A. Chandran Walid El Masri Rashmi Malik Abdul Fattah Sharaf Mohamed Al Neaimi Ali Kaitoob P.S. Sastry Hesham Qassimi

CEO CFO COO CRO CM - Intl. CM - Business Development CM - Liability Head of Retail Head Of Corporate Head of TPO Head of HR Treasurer Head of IS&T Head of Group Audit Head of BPQM Head of Corp Comm Head of Strategy GM NFS GM Aqarat Head of Dist. Retail SM CEO’s Office Divisional Manager Corporate Banking

Abu Dhabi P.O. Box: 386 Ajman P.O. Box: 712 Ajman Archives Al Mizhar Al Ain P.O. Box: 16122 Burjuman Centre Bullion Convention Centre Branch Dubai Central Fruit & Vgtbl. Mkt Branch Al Awir Dubai International Airport Dubai International Airport Pay Office Dubai Internation Airport Dubai Internation Airport Dubai Internation Airport Dubai Internation Airport Dubai Internation Airport Dubai Media City Pay Office Deira City Centre Dubai Airline Centre

Tel : 02 6394555 Tel : 06 7456555 Tel : 06 7444606 Tel : 04 2641221 Tel : 03 7644345 Tel : 04 3555222 Tel : 04 2284757 Tel : 04 3320808 Tel : 04 3333880 Tel : 04 2200404 Tel : 04 2164946 Tel : 04 2162450 Tel : 04 2166995 Tel : 04 2162452 Tel : 04 2162434 Tel : 04 2162740 Tel : 04 3902007 Tel : 04 2951555 Tel : 04 2952555

Fax : 02 6346767 Fax : 06 7456060 Fax : 06 7425883 Fax : 04 2640569 Fax : 03 7668515 Fax : 04 3554455 Fax : 04 2289090 Fax : 04 3320908 Fax : 04 3333870 Fax : 04 2244614 Fax : 04 2244614 Fax : 04 2244614 Fax : 04 2244614 Fax : 04 2244614 Fax : 04 2244614 Fax : 04 2244614 Fax : 04 3908855 Fax : 04 2951525 Fax : 04 2955655

Dubai Airport Free Zone Dubai Courts Dubai Media City Pay Office Emirates Tower Fahidi Emirates Tower Emirates Tower Fahidi Direct Banking Fujairah Branch P.O. Box: 1744 Hamriya Hatta Ibn Battuta Mall Branch Ittihad Road Jumeirah Branch Jebel Ali Main Office Maktoom Branch Malleq Emirates Branch Muhaissnah Branch Nadd Al Shiba Oud Metha Branch (Ex-Gulf Tower Branch) Ras Al Kaimah P.O. Box : 1932 Rashidiya Souk Madinat Jumeirah Branch Sh. Zayed Road (Saeed Tower) Sharjah P.O. Box : 21850 Umm Al Quwain P.O. Box : 22 Emirates Tower Umm Suqeim

Tel : 04 2995550 Tel : 04 3366702 Tel : 04 3030400 Tel : 04 3300133 Tel : 04 3535575 Tel : 04 3530308 Tel : 04 2823400 Tel : 04 3532840 Tel : 09 2233335 Tel : 04 2663189 Tel : 04 8523183 Tel : 04 3685499 Tel : 04 2955600 Tel : 04 3420202 Tel : 04 8816087 Tel : 04 2222111 Tel : 04 2281141 Tel : 04 3410777 Tel : 04 2544545 Tel : 04 3363939 Tel : 04 3370222 Tel : 07 2279888 Tel : 04 2859523 Tel : 04 3686130 Tel : 04 3313183 Tel : 06 5738888 Tel : 06 7656154 Tel : 06 7656152 Tel : 04 3485222

Fax : 04 2995557 Fax : 04 3353906 Fax : 04 3908855 Fax : 04 3300155 Fax : 04 3535575 Fax : 04 3534601 Fax : 04 2823640 Fax : 04 3531443 Fax : 09 2233336 Fax : 04 2690103 Fax : 04 8521051 Fax : 04 3685501 Fax : 04 2955611 Fax : 04 3421112 Fax : 04 8816961 Fax : 04 2283000 Fax : 04 2235456 Fax : 04 3410707 Fax : 04 2544646 Fax : 04 3363788 Fax : 04 3366145 Fax : 07 2279889 Fax : 04 2854847 Fax : 04 3686195 Fax : 04 3310629 Fax : 06 5733000 Fax : 06 7655151 Fax : 04 3300155 Fax : 04 3482535

National Bank of Oman Abu Dhabi Bin Sagar Towers, Najda Street Tel 02 6348111 / 6323456 P.O. Box 3822 Fax 02 6325027 Ravi S. Khot Country Manager 02 6393028 Salim Al Khanjri Manager - Operations 02 6392535 Minhajuddin Niazi Manager - Consumer Banking & Business Development 02 6326560 K.K. Gambhir Manager - Corporate Banking 02 6394922

National Bank of Umm Al Qaiwain History: Established in 1982 24/7 Call Centre Number: 600 56 56 56 E-mail: [email protected] Website: www.nbq.ae Sh. Nasser Bin Rashid Al-Moalla Mohamed Abdel Rahim Al Mulla Umm Al Qaiwain Branch NBQ Building, King Faisal Street P.O.Box 800, Umm Al Qaiwain Falaj Al Mualla Branch NBQ Building, Shaikh Zayed Street P.O.Box 11074 Falaj Al Mualla Dubai Branches NBQ Building, Khalid Bin Al Waleed Street P.O. Box 9715 Dubai  Deira Branch Opposite Dubai Police Head Quaiter Al Ittihad Street, P.O. Box 8898 Deira, Abu Dhabi Branch Hamdan Bin Mohammed Street (# 5) P.O. Box 3915 Abu Dhabi  Mussafah Branch P.O. Box 9770 Abu Dhabi

BANKING AND BUSINESS REVIEW

Managing Director General Manager Tel: 06 7066666 Fax: 06 706 6677 Tel: 06 8824447 Fax: 06 8824445 Tel: 04 3976655 Fax: 04 3975382 Tel: 04 2651222 Fax: 04 2651333 Tel: 02 6775100 Fax: 02 6779644 Tel: 02 5555088 Fax: 02 5553559

July-August 2009 61

Al Ain Branch Oud Al Touba Street Al Mandoos Roundabout P.O. Box 17888 Al Ain Sharjah Branch King Faisal Street, P.O.Box 23000 Sharjah NBQ Kiosk Sharjah Mega Mall P.O.Box 23000 Sharjah Ajman Branches City Center Branch Ajman City Center P.O.Box 4133 Ajman Masfout Branch NBQ Building Main Street P.O.Box 12550 Masfout, Ajman Fujairah Branch Fujairah Insurance Co. Building Hamad Bin Abdulla Road P.O.Box 1444 Fujairah Ras Al Khaimah Branch Corniche Al Qawasim Road P.O.Box 32253 Ras Al Khaimah

Tel: 03 3751300 Fax: 03 7513500 Tel: 06 5742000 Fax: 06 5742200 Fax: 06 5742200

Tel: 06 7436000 Fax: 06 7436060 Tel: 04 8523377 Fax: 04 8523093 Tel: 09 2232100 Fax: 09 2232220 Tel: 07 2366444 Fax: 07 2364470

Philippine National Bank Dubai Representative Office Room 108, Al Nakheel Bldg., Zabeel Road, Karama Tel 04 3365940 P.O. Box 52357, Dubai, UAE Fax 04 3374474 E-mail: [email protected] Amroussi Tillah Rasul First Vice President & Regional Representative

Rafidain Bank

Abu Dhabi Al Nasser Street, Glass Bldg. P.O.Box 2727, Abu Dhabi Salah Mahid Branch Manager

Tel 02 6335882 / 3 Fax 6326996

Tel 04 3313196 Telefax 04 3313960

RAK Bank Ras Al Khaimah Head Office, Oman Street, Al Nakheel Tel 07 2281127 P.O. Box 5300 Fax 07 2283238 E-mail: [email protected]; www.rakbank.ae History: Established in 1976 as The National Bank of Ras Al Khaimah. In 2003, name was changed to RAKBANK H.E. Sheikh Omar Bin Saqr Al Qasimi H.E. Sheikh Salim Bin Sultan-Al-Qasimi Mr. Hamad Abdulaziz Al Sagar Mr. Essa Ahmed Abu Shuraija Al Neaimi Mr. Majid Saif Al Ghurair

62 BANKING AND BUSINESS REVIEW

Director Director General Manager Head of Personal Banking Head of Corporate Banking Chief Operating Officer Head of Internal Controls Head of Credit Head of Treasury Chief Internal Auditor Head of Human Resources Head of Finance Tel : 04-2248000 Tel : 04-2248000 Tel : 04-2248000 Tel : 04-2248000 Tel : 04-2248000 Tel : 04-2248000 Tel : 04-2248000 Tel : 04-2248000 Tel : 04-7058444 Tel : 04-3685890 Tel : 06-5746888 Tel : 06-5132666 Tel : 09-2778707 Tel : 09-2371900 Tel : 03-7644222 Tel : 02-6448227 Tel : 02-6666658 Tel : 07-2333744 Tel : 07-2666833 Tel : 07-2448822 Tel : 04-8525999 Tel : 07-2662434 Tel : 07-2351147 Tel : 07-2281127

Sharjah Islamic Bank

Royal Bank of Canada

Dubai Representative Office API World Tower, Suite 1002, Shk. Zayed Road, P.O. Box: 3614. Umaima Zaman senior manager Ashwani.k.Dewitt senior manager Global Private Banking Ashish Anand Chief Representative

Mr. Ali Samir Al Shihabi Mr. Yousuf Obaid Essa Mr. Graham Honeybill Mr. Ian Hodges Mr. Anil Sukhia Mr. Steve O Hanlon Mr. Geoff Harman Mr. Jose Braganza Mr. Malcolm D’Souza Mr. Nigel Summersall Mrs. Susan Gardner Mr. Venkat Raghavan Dubai Deira Maktoum Branch Deira Souk Branch Umm Hurair Branch (Bur Dubai) Sultan Business Center ( Dubai Main Branch) Sheikh Zayed Road Branch Emaar Business Park Branch Marina Diamond Branch Al Quoz Branch Al Qusais Branch Ibn Battuta Mall Branch Sharjah Sharjah Main Branch Sharjah Industrial Area Kalba Branch Khorafakkan Branch Al Ain Al Ain Branch Abu Dhabi Abu Dhabi-Tourist Club Branch Khalidiya Branch Ras Al Khaimah RAK Town Branch Sha’am Branch Badr Branch Al Mannei Branch Al Rams Branch Al Dhait Branch Al Nakheel Branch

Chairman Director Director Director Director

July-August 2009

Mohammed Abdalla Chief Executive Officer Ahmed Saad ibrahim Chief Operating Officer Mohammed Rizwan Chief Risk Officer Saeed M Ahmed Al Amiri Head, Investment Group Ossama Salah El Din Head, Retail Banking G . Ramkirshinan Head of Coroprate Banking Group Hussam A. Abu Aisheh SVP-Chief Internal Audit Mohammed Ishaq Chief Dealer Mohamed Azmeer Head of Credit Division Eman Jasim Sajwani Head of Human Resources Group Myron Britto Head, nformation Technology Div.-CIO Sufyan Maysara Head of Shariaa Supervision Divison Branches Main Branch - Al Brooj Avenue Mohammed Yousif King Faisal Street Branch Abdul Salam Al Ali Ladies Branch Laila Ali Salem American Unversity Branch Mohd Mousa Ali Al Dhaid Branch Khalid M. Ajmani Industrial Area Branch Waleed Abdul Qadir Sharjah Expo Branch Jassim Al Awadi Sharjah Buhaira Branch Osama Ahmed AlSalman Khorfakhan Branch Yousif M. Abdullah Dibba Branch Ali Al-Abdouli

06-5115116 06-5115118 06-5115172 06-5115000 06-5115339 06-5115111 06-5115153 06-5115151 06-5115319 06-5115170 06-5115444 06-5115213 06-5115121 06-5746805 06-5746807 06-5585789 06-8829414 06-5397623 06-5992502 N/A 09-2387490 09-2442601

Kalba Branch Fujairah Branch Dubai Branch Sheikh Zayed Branch Al Twar Branch Abu Dhabi Branch Al Ain Branch



Abdullah Bin Hikal Nawal Mohamed AlMaghribi Mohamed Ibrahim Alghufili Maisoon Zainudin Maha AlBanna Thomas P.Y. Majid Sha’abaan

09-2774204 09-2244339 04-2698322 04-3217543 04-2638335 02-6224166 03-7513200

Shuaa Capital PSC Head Office Tel: 04 3303600/ 04 3199778 Emirates Towers Hotel, Level 7 Fax: 04 3303550 P.O. Box: 31045, Dubai, UAE. Website: www.shuaacapital.com Iyad Duwaji CEO Abeer Ayash Marketing and PR coordinator

Societe Generale Dubai DIFC Gate Village, Bldg. 6, 4th Floor Tel.: 04 4257500 Sheikh Zayed Road, Dubai Fax: 04 3653170 Website: www.socgen.com Alain L. Tave Chief Regional Representative

Standard Bank Plc - Dubai Branch (DIFC) Dubai Emirates Tower, Office-16 B Tel 04 3300011 P.O. Box 504904 Fax 04 3300169 Website: www.standardbank.com Jeffrey Rhodes General Manager 04 3300164 Kate Lunjevich Head of Compliance & Operations

Standard Chartered Bank Head Office: United Kingdom Dubai Main Branch Tel 04 3520455 Head Office: Al Fardan Building, Fax 04 3526679 Mankhool Road, Bur Dubai P.O. Box: 999, Dubai - United Arab Emirates www.standardchartered.com/ae/ Phone Banking: +9714 3138888 (24 hours) Dubai Branch P. O. Box 999, Al Mankool Road, Dubai , UAE 04-3599550 Deira Branch P. O. Box 1125, Al Nasr Square, Dubai, 04-5085300 Gold Souq Branch P. O. Box 64555, Gold Souq, Dubai , UAE 04-2262699 Jebel Ali Branch P. O. Box 16920 , Jebel Ali, Dubai , UAE 04-5085200 Sharjah Branch P. O. Box 5, Al Boorj Avenue, Sharjah , UAE 06-5916100 Hamdhan Branch P. O. Box 240,Al Fardan Tower ,Abu Dhabi, UAE 02-6165600 Istiqlal Branch P. O. Box 241, Istiqlal Street, Abu Dhabi UAE 02-6165400 Al Ain Branch P. O. Box 1240, Near Clock Tower, Al Ain, UAE 03-7056800 Dragon Mart Branch P. O. Box 4166, Dragon Mart mall, Dubai, UAE 04-5085260 Emaar Business Park Branch P. O. Box 103669,Building 3 ,Dubai , UAE 04-5085255 Wealth Management Center P.O Box 999, Jumeira Beach Road, Dubai UAE 04-5085706

The Housing Bank for Trade & Finance Abu Dhabi P.O. Box 44768 Muhanad Habashneh Representative

Tel 02 6268855/6270280 Fax 02 6271771

Union de Banques Arabes et Francaises UBAF Dubai Creek Tower, Baniyas Road, Deira Tel 04 2284080 P.O. Box 29885 Fax 04 2284070 Hamed Hassouna Chief Representative GCC & Yemen

UBS AG Abu Dhabi ADNIC Bldg., 5th Floor, Sh. Khalifa Street P.O.Box 3744 Website: www.ubs.com Roger Leitner Senior Representative Dubai Creek Tower, Office 17A, Baniyas Road, Deira Peter Schaer Senior Representative DIFC Gate Village, Bldg. No. 6, 5th Floor Sheikh Zayed Road P.O Box 506542 Per Larsson Senior Representative

Tel 02 6275024 Fax 02 6272752

04 2240044 04 2220006 Tel.: 04 3657150 Fax: 04 3657191

Union National Bank Abu Dhabi Head Office, Salam Street, P.O.Box 3865, Abu Dhabi Website: www.unb.ae History: Established as a Public Joint Stock Company in 1982 Nahyan Bin Mubarak Al Nahyan Chairman Mohammad Nasr Abdeen Chief Executive Officer Abu Dhabi Corniche City Centre Najda Hazzaa Khalidiya Adgas Booth Musaffah Shahama Baneyas Al Dhafra/Madinat Zayed Al Muroor Al Ain Sh. Khalifa Street Al Jimi Dubai Main Branch, Deira Al Maktoum Street Khalid Bin Al Waleed Road Al Bustan Jebel Ali Sheikh Zayed Road/Jumeira Rashidiya

BANKING AND BUSINESS REVIEW

Tel 02 6741600 Fax 02 6786080

02 632 1600 02 627 3471 02 632 4981 02 641 2288 02 635 2511 02 627 0611 02 555 9111 02 563 4600 02 582 1886 08 884 8484 02 444 8384 03 7644551 03 7626240 04 2211188 04 2232266 04 3516444 04 2636388 04 8810999 04 3329911 04 2857686

July-August 2009 63

Ajman Central - Emirates Post Fujairah Ras Al Khaimah Sharjah King Abdul Aziz

06 7425552 09 2222747 07 2286600 06 5686141 06 5746161

United Arab Bank

General Manager Dy. General Manager Asst. GM-Corporate & Retail Asst. GM-Admin. & Finance

06 5733900 06 5733900 06 5733900 06 5733900

United Bank Limited Dubai Gargosh Bldg, Khalid Bin Waleed Street

64 BANKING AND BUSINESS REVIEW

Fax 04 3514525

Wachovia Bank National Assoc.

General Management & H.O. Tel 06 5733900 Sh. Abdulla Bin Salim Al Qassimi Building, Al Qasimia St., Sharjah Fax 06 5733906 E-Mail Address [email protected] Website www.uab.ae History: Established 1975 Bertrand Giraud Awni Alami Gibert Hie Arif Premdjee

P.O. Box 1367, Dubai Email: [email protected] Website: www.ubl.com.pk Wajahat Husain Head of Middle East Maruf Ahmed General Manager UAE

Tel 04 3552020

July-August 2009

Representative Office Dubai The Atrium Centre, Khalid Bin Waleed Street, Bur Dubai 04 3556244 P.O. Box 53089 Fax 3557117 Head Office: USA J.Kennedy Thompson Chairman & Chief Executive Officer Michael P. Heavener International Division Dubai Branch: Chafic Haddad Vice President & Regional Manager Carol Hampson Customer Services Representative

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