DH 25 October 2009

NEW FRONT-
BENCHERS
Relocations help to hold rents
Major economic policy reform
Beyond oil market downturn For a ‘Dunia’
of difference
Rajeev Kakar, CEO, Dunia Finance
 Vol. VI. No. 44 October 2009

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Editor’s note
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Rediscovering
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banking
T
he aftermath of the financial crisis has forced
banks to change their ways, not only in terms
of lending and other banking practices, but
also in deciding priorities. Debt recovery, formerly
an important but low-profile activity, has now moved
over the front benches. For, they have all realized to
that a bird in hand is more than worth two in the
For some banks the issue is so serious that they
have to content with three-fourths of their total credit
disbursements as gone. That makes the recovery of
even very small amounts a creditable achievement.
Things have come to such a pass that sometimes
banks are spending more money following up the
recovery process than they are able to get back
through the action, because the amount involved may
be so small.
The lack of credit information that is generally
available in markets with well-established credit
Naturally, the topmost priority for them is to get back
the money from the market and no effort is being
spared in this process. As skips become a routine part
of banking business in the country, the institutions
are honing their skills in perfecting the art of recovery.
This has meant a whole new look at the recovery
process and sometimes entire redeployment of the
staff for optimum results. At the same time there is
no escape from the tormenting thought that a little
more caution in the initial stages would have spared
them a lot of trouble.

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REVIEW 1
 CONTENTS

12 COVER STORY
New bank front-benchers
Increase in number of skips worries banking sector

8 INTERNATIONAL
Crisis: one year on
Companies are settling down for a less comfortable
‘new normal’

11 FUNDS
Investment communities
skeptical
Two-thirds of fund managers believe crisis will continue

2 BANKING AND BUSINESS REVIEW October 2009

 20 ECONOMY
Tight credit hampering recovery
Banks competing for deposits to bridge funding gap

24 SNAPSHOT

For a ‘Dunia’ of difference

UAE’s newest financial services company promises differentiated offerings

26 REAL ESTATE
Relocations help in
rents holding 38 FINANCE
Movements to Dubai from Abu Dhabi and Sharjah offset
population decline Remittance industry hit by recession
Saudi Arabia remains home to region’s biggest remittance business
Developers have ‘learnt their lessons’

40 OPINION
36 FOREX
A major economic policy reform
Too early to rejoice UAE Company Law changes to lower cost of doing business
Proper risk management of utmost importance

44 FROM THE GATE

State Bank of India launches corporate
banking

46 ENERGY
Beyond oil market downturn

BANKING AND BUSINESS REVIEW October 2009 3

 ROUNDUP
Singapore continues to be world’s Top
International Meeting City
S
ingapore has consolidated its rep-
utation as the world’s preferred
business events destination by
clinching the top spot in the ‘Top Inter-
national Meeting City’ category in the
Union of International Associations
(UIA) 2008 Global Rankings for the
second consecutive year.
In the UIA’s International Meet-
ing Statistics 2008 report, Singapore
also moved one notch up from 2007 to
third position in the ‘Top International
Meeting Countries’ category behind
USA (1st) and France (2nd).
The city-state also overcame stiff
competition for the Asia rankings, se-
curing the title as Asia’s top country
and city for meetings for the 25th con-
secutive year.
The Union of International Asso-
ciations (UIA) – founded in 1907 – is
an independent, non-governmental
research institute and documentation
centre whose key activities include con-
solidating statistics on international
organisations and their international
meetings.
“This ranking underscores Singa-
4 BANKING AND BUSINESS REVIEW
pore’s reputation as an exchange capi-
tal of the world where people, ideas
and technology converge to gener-
ate business success. These accolades
come at an opportune time as they
put Singapore in a strong position to
further expand its share of the global
business events market by partnering
with MICE industry partners to at-
tract and develop successful business
events centered around major growth
industries in Singapore and the re-
gion,” said Jason Ong, Area Director
for Middle East and Africa, Singapore
Tourism Board.
Singapore hosted 637 meetings in
2008 that met UIA’s qualifying crite-
ria – a 36 per cent increase over 2007.
Notable meetings include the Interna-
tional Thalassaemia Conference 2008,
ISNCC 15th International Conference
on Cancer Nursing 2008 and the Asia
Petrochemical Industry Conference.
In 2004, Singapore stood at a re-
spectable 10th place in the ‘Top In-
ternational Meeting City’ category.
In 2005 it climbed to 8th place, and
jumped to 4th place in 2006. In 2007
October 2009
it rose to first place, with almost 30
per cent more meetings than the city
in second place. In 2008 it not only
maintained its position in first place, it
has increased its margin to 50 per cent
more meetings than the second-ranked
city, according to Jcques de Mevius,
Secretary-General, UIA.
Singapore is looking forward to host
a number of high profile events this year
including the FDI World Dental Con-
gress, the second edition of ITB Asia
and the Asia Pacific Economic Coop-
eration (APEC) 2009 meetings. In addi-
tion, top tier international events such
as the FORMULA 1 SingTel Singapore
Grand Prix and the inaugral F1 Rocks
Singapore concerts are adding more
buzz and dynamism to the destination.
Next year business events organisers
will have even more options with new
developments, such as the two new Inte-
grated Resorts, Marina Bay SandsTand
Resorts World at Sentosa, and Gardens
by the Bay – Singapore’s second Botani-
cal Gardens – , which will collectively
entrench Singapore as a compelling and
must-visit destination.
Committed employees fastest to be promoted
E
mployees that are hard-working
and have a strong work ethic are
likely to be promoted the fast-
est within an organization, according
to the new employer online poll series
conducted by Bayt.com, with 30 per
cent of employers agreeing that those
committed to their work are likely to
be most eligible for promotion. Leader-
ship ability was also found to be a very
desirable trait in an employee when it
came to deciding which staff members
to be promoted, with 19 per cent of em-
ployers agreeing natural leaders are the
fastest to move up the organisation’s
career ladder.
Surprisingly, possessing a high IQ
was considered less important among
the employers surveyed, with just 6
per cent agreeing that the most intel-
ligent employees are promoted fastest,
and contrary to popular belief, visibly
putting in long hours does not guaran-
tee a promotion; just 8 per cent of em-
ployers agreed that those who stay af-
ter hours will be promoted faster than
those who don’t.
The ‘Job seeker promotability’ July
online poll series sought to understand
from employers how they undertake
the process of promoting employees,
and what qualities they look for when
assessing an employee’s ‘promotabil-
ity’.
When asked about the strategy they
normally follow when conducting the
promotion process, almost a third of
all employers-- 32 per cent-- stated
they look at an employee’s proven de-
liverables and make their decision
based on these indicators. Eleven per
cent opt for a slightly unorthodox tac-
tic and stretch their employees to see
who performs best under pressure -
choosing the ‘winner’ for promotion.
Furthermore, 4 per cent of employers
conduct a rigorous 360-degree per-
formance appraisal with their staff;
another 4 per cent invite employees to
formally apply for the higher position,
while a further 4 per cent of employ-
ers conduct random interviews with
employees to see who fits in best with
the higher position. However, another
third of employers combines a mix of
each of these factors as their strategy
for promoting employees.
The surveyed employers also ac-
knowledged the problems inherent in
the promotion process: 44 per cent of
employers said that the biggest mis-
take made by employers when deciding
upon a promotion is not considering
leadership skills sufficiently. Another
13 per cent said that allowing just one
manager to make the promotion deci-
sion is the biggest mistake in the proc-
ess, while another 13 per cent agreed
that not discussing the matter of pro-
motion sufficiently with the concerned
employee is an issue. Just 6 per cent of
employers agreed that relying solely on
the observations of the employee’s di-
rect manager for a promotion decision
was problematic, and another 6 per
cent said making a promotion decision
based on an employee’s performance
on a specific project was an issue.
There are, naturally, a number of
factors which serve to hinder an em-
ployee’s chances of gaining a promo-
tion. The biggest source of chagrin
among the surveyed employers was
weak leadership skills in their employ-
ees, which caused a grievance to over a
fifth of employers. Bad work ethics and
laziness, unsurprisingly, also feature as
a significant barrier to an employee’s
chances of promotion – as agreed with
by 18 per cent of employers.
BANKING AND BUSINESS REVIEW
Furthermore, 15 per cent of employ-
ers stated that inability to work as part
of a team or being too independent at
work, and weak interpersonal skills,
were also major hindrances to chances
of promotion.
Interestingly, lack of creativity or
problem solving skills, and weak tech-
nical skills were less of a hindrance to
an employee’s chance of promotion,
according to 12 per cent and 9 per cent
of employers respectively. The data sug-
gests that employers might be willing to
work on nurturing technical skills and
creativity traits via training and devel-
opment of their employees - especially
if they have other strong qualities, pos-
sibly because in practice, troublesome
attitudes are more difficult to change
and improve than actual key skills.
Potential promotability is also con-
sidered by employers from as early on as
when they make their hiring decisions.
The results showed that 28 per cent of
employers look for strong people skills
in their potential recruits, while 20
per cent look for signs of good techni-
cal skills and ability. Another desirable
quality that 16 per cent of employers
look for is commitment and loyalty -
perhaps from work experience in previ-
ous organisations or hobbies/ activities
undertaken in a job seeker’s spare time.
Desirable - but not wholly necessary
- traits that employers look for in po-
tential new staff, at 8 per cent ach, are
a strong work ethic, a good character
and integrity, as well as a track record
of success.
Data for the ‘Job seeker promotabil-
ity’ poll series was collected online be-
tween the period of 13th July and 17th
August 2009, with respondents repre-
sented by employers across the Middle
East.
October 2009 5
 ROUNDUP
Sahba Hadipour joins Barclays Wealth
B
arclays Wealth announced the appointment of Sahba
Hadipour as Director to its International Private Bank-
ing team in the Middle East. He will report into Fawaz
Baba, General Manager of the Dubai International Private
Banking Office.
Based in the Dubai International Financial Centre, Sahba
Hadipour will be a private banker focusing on the High Net
Worth and Ultra High Net Worth markets in the UAE, the
bank said in a statement. Within his new position, Hadipour’s
experience with private equity along with his knowledge of
the wealth management industry in the region will compli-
GCC Investor Confidence Index up
A
fter the dip last month in the confidence index,
the GCC Investor Confidence Index is moving
in a more positive direction, Shuaa Capital said
in a report. Although only a 2.7% gain, it is nonetheless
a good sign and the small change is not surprising given
that August is traditionally a quiet month, it pointed
out.
SHUAA Capital’s GCC Investor Sentiment Report
is compiled with contributions from international and
regional institutional investors and has been designed
to provide the global investment community with a
benchmark of investor confidence for GCC countries
and track changes in investor behaviour over time.
The results of the August 2009 Report showed that
after the dip last month in the confidence index, there is
again a move in the more positive direction. Although
only a 2.7 per cent gain, it is nonetheless a good sign, the
report pointed out.
Contributing most to the positive movement were
the UAE and Qatar. The UAE Investor Confidence In-
dex was the biggest gainer in the GCC, up 4.3 per cent
to 118.8 points. This makes up for some of July’s losses
after the index dipped to 113.9 points. Despite the im-
provement, the index still lags behind June’s peak of
123.8 points. Driving the UAE Index this month was
improving sentiment towards the current state of the
6 BANKING AND BUSINESS REVIEW October 2009
ment the full array of the Barclays Wealth value proposition to
the UAE market, it said.
Prior to joining Barclays Wealth, Hadipour was a Direc-
tor, Private Equity and Wealth Management for CIC Holding
(Invesco Holding) where he developed strategic relationships
with UHNWI, SWF and institutional investors. In his posi-
tion, Hadipour created and developed the architecture and
formation of several private equity funds in the real estate,
technology and oil & gas sectors. Prior to that, Sahba was with
Vertical International and Coutts de Lisle Investments where
he held a variety of roles.
UAE economy. Positive responses doubled to 16.9 per cent
with a similar level of negative and neutral responses at
38.5 per cent and 33.8 per cent respectively.
The significant improvement in the overall GCC Inves-
tor Confidence Index was largely driven by a positive shift
in the balance of investors’ perceptions of current regional
economic conditions. In August this figure moved to 1.5
per cent from -15 per cent in the previous month.
The six month investor outlook for the GCC economy
remains positive, with a balance of 56.9 per cent, which is a
slight improvement on the previous month’s 55.3 per cent.
The GCC is now ahead of both BRICs [Brazil, Russia, India,
China] and Global Emerging Markets, who both recorded a
lower figure of 49.2 per cent, the report pointed out.
However, it added that investors still think stock mar-
kets across most of the GCC remain undervalued with the
Abu Dhabi Stock Exchange being the most undervalued
with a balance of respondents of 55.4 per cent. Saudi Arabia
follows closely behind at 46.2 per cent and is considered
even more undervalued than last month as is also the Doha
Stock Market with a balance of 44.6 per cent. Nasdaq Du-
bai is still seen as undervalued but to a lesser degree with
a balance of 16.9 per cent, a 9.8 per cent drop. The Dubai
Financial Market and the Omani stock exchange are on a
par at 33.8 per cent, which is a strong improvement for both
on the previous month.
Sukuk market continues to progress: S&P
N
ew issuance of sukuk topped
$9.3 billion in the first seven
months of 2009 compared
with $11.1 billion during the same pe-
riod in 2008, Standard & Poor’s Rat-
ings Services said in a report.
“The smaller amount of issuance
was due not only to the still-challeng-
ing market conditions and drying up of
liquidity, but also to the less-support-
ive economic environment in the Gulf
Cooperation Council countries, par-
ticularly in the United Arab Emirates,”
said Standard & Poor’s credit analyst
Mohamed Damak. “The medium-term
outlook for the sukuk market remains
positive, though, in our view, given the
Islamic banks seen unaffected by crisis
G
lobal financial crisis has failed
to have any impact on Islamic
banking because the princi-
ples of Islamic banking did not permit
speculative economic activity such as
dealing in derivatives, according to
Adnan Ahmed Yousef, the President
and CEO of Albaraka Banking Group
and the head of the Union of Arab
Banks.
Terming Islamic banking as a re-
markable success story in the backdrop
of the general gloom in the financial
sector, Yousef said Albaraka Group not
only remained unaffected by the finan-
cial crisis, but also managed to increase
profits this year.
Though the end of financial crisis
had already begun, it will take a long
time to get out of the economic crisis.
“Proactive government initiatives are
a precondition to get over the financial
crisis. The developed countries must
listen to Asian countries to avert this
kind of situations in future,” he said.
Speaking of the performance of
banks in the Gulf against the backdrop
of the crisis, Yousef said the consolidat-
strong pipeline--with sukuk announced
or being talked about in the market es-
timated at about $50 billion--and efforts
to resolve the major difficulties imped-
ing sukuk market development.”
Malaysia has taken the lead as the
major country of issuance for sukuk,
accounting for about 45 per cent of su-
kuk issuances in the first seven months
of 2009. Issuers in the Kingdom of Saudi
Arabia have contributed another 22 per
cent of sukuk issued during the same
period.
The default of a couple of sukuk was
possibly partly responsible for the slow-
down in issuance. The silver lining was
that these defaults should provide the
ed balance sheet of GCC banks would
prove beyond any shadow of doubt
that the impact of the crisis on banks
in the region had been minimal. “But
that does not mean we remain isolated
from the rest of the world. It is indeed
possible for the GCC countries to be-
come more influential internationally.
GCC will actually be the fifth major
economic block in a few years provided
they implement a common currency
system and consolidated economic
activity across the region further,” he
explained.
Appreciating the development strat-
egy followed by Dubai, Yousef said the
emirate has achieved in 10 years what
most Arab countries failed to achieve
in 50 years. “One major factor that sets
the UAE apart from most other coun-
tries in the region is that it has allowed
unfettered access for foreign capital.
The way the Central Bank proactively
intervened in the UAE to fight the im-
pact of the financial crisis was also a
remarkable example of the UAE’s far-
sightedness,” he explained.
Yousef said the central banks across
BANKING AND BUSINESS REVIEW
market with useful information on
how sukuk will behave following de-
fault.
The report noted that major hurdles
remain on the path to sukuk market
development, however, including:
• Difficult market conditions, which
are slowing the planned issuance of
numerous sukuk
• Lack of standardization, notably
when it comes to Shariah interpre-
tation; and
• The low liquidity of the sukuk mar-
ket, which constrains investors
trying to exit the market in times
of turbulence or access the market
looking for distressed sellers.
the world should exchange information
about corporate debts to avoid future
credit crises. “It is important that the
debts of corporate entities be made glo-
bally public in order for banks to avoid
giving risky loans. This is something
very easy to implement as all central
banks have the information at their dis-
posal,” he pointed out.
Correction
The previous issue of the magazine
had wrongly stated that Al Fut-
taim motors represents Toyota,
Honda, Volvo, Chrysler, Jeep and
Dodge under its umbrella along
with Automall. The company
clarifies that Al Futtaim Motors
represents Toyota, Lexus, Hino
and BT in the UAE while Trading
Enterprises, which is a completely
different company, represents the
other brands. Both Trading Enter-
prises and Al-Futtaim Motors are
under the Al-Futtaim Automotive
umbrella.
October 2009 7
 INTERNATIONAL
Companies settling
down for a less
comfortable ‘new
normal’, reveals
McKinsey global
survey
Crisis: One year on
A
‘new normal’ is settling in
for many companies, an en-
vironment less comfortable
than the one they knew in
the pre-crisis world, most responses in
a McKinsey Global Economic Survey
results completed in September have
revealed.
Most companies are still cutting
costs, with a third of all respondents
saying that their companies are in cri-
sis. What’s more, executives remain
skeptical about the economic health of
their countries; a majority say that gov-
ernments should continue supporting
economies in the near term, the lead-
ing global management consultancy
said in a report titled ’The Crisis: One
Year On’.
A year after the global economic
system nearly collapsed, many compa-
8 BANKING AND BUSINESS REVIEW
nies are finally finding ways to increase
profits under the new economic condi-
tions, the survey showed. But almost
as many expect profits to continue fall-
ing, and executives also indicate that
their broader economic hopes remain
fragile. Many expect more government
involvement in economies and indus-
tries over the long term.
Some companies have moved be-
yond merely coping with the crisis and
are once again actively planning for the
long term. McKinsey reports that over
the past 12 months, the respondents to
its economic conditions surveys have
said that their companies are cutting
costs, reducing capital investments
and headcounts, and making plans for
weeks or months, not years—all in all,
hunkering down to survive the worst
economic shock in decades.
October 2009
Now, for the first time in a year,
more respondents expect their com-
panies’ profits to rise than fall in the
near term. Product development and
long-term planning are high priori-
ties for many companies, and most are
optimistic about their prospects in the
longer term, the results showed.
Overall, the responses indicate that
a ‘new normal’ is settling in—for many
companies, an environment less com-
fortable than the one they knew in the
pre-crisis world. Most are still cutting
costs, and a third of all respondents
say that their companies are in crisis.
What’s more, executives remain skepti-
cal about the economic health of their
countries; a majority say that govern-
ments should continue supporting
economies in the near term.
According to the report, in the long-
er run, many executives expect the glo-
balization of financial and other mar-
kets to resume after slowing notably
in 2009. They also foresee additional
significant changes in their industries
and economies over the next five years,
including a stronger government role
in both. Nearly three-quarters of the
executives expect their companies to
be in a stronger position in five years
than they were before the crisis. The ex-
ecutives also think that their industries
will be more consolidated and innova-
tive—but will grow more slowly.
McKinsey points out that after
reaching a nadir in January, the ex-
pectations of respondents for corpo-
zone have consistently been gloomiest though from a very low base. And in
about their economic situation and out- the past six weeks, expectations have
look. But the pattern for expectations is risen markedly: 40 per cent of the re-
essentially the same in all regions, add- spondents now think GDP will rise in
ing to the evidence from our surveys 2009 (compared with 26 per cent six
and many other sources that even the weeks ago), and 13 per cent expect pre-
present crisis hasn’t fundamentally dis- September 2008 GDP levels to return in
connected the world’s economies, the 2010.
report points out. But, according to the report, a major-
A year after the global economic system nearly
collapsed, many companies are finally finding
ways to increase profits under the new economic
conditions

rate profits and their national econo-
mies turned sharply higher in June.
Since then, the expectations have risen
strongly and consistently, in tandem
with stock markets.
Differences in the hopefulness of
executives are striking on the regional
level, however. The crisis started in the
United States, and executives in North
America have consistently indicated
that it will end sooner than executives
elsewhere expect. Those in the Euro-
Anxious hope
Nineteen per cent of respondents
around the world—and 28 per cent of
those in Asia’s developed economies—
said that an economic upturn has al-
ready begun. McKinsey says each eco-
nomic conditions survey since March
has shown an increase in the hopes of
executives for their national econo-
mies. As stock markets continued to
climb over the summer, expectations
for these economies rose quickly, too,
ity of the executives don’t expect GDP
to rise soon, and the responses also
suggest other indicators of economic
anxiety: 54 per cent, for example, say
that governments should scale back—
but not stop—their support for econo-
mies. The report notes that this support
for government action doesn’t vary by
industry or by whether a respondent’s
company is currently in crisis, indicat-
ing that the economic anxiety of execu-
tives goes beyond any immediate need

BANKING AND BUSINESS REVIEW October 2009 9

for help for their own companies. This
position is consistent with the execu-
tives’ overall positive views, reported
in past surveys, of the role government
has played so far in the crisis.
The anxiety of the executives is
also highlighted by the fact that a
plurality—42 per cent—of them still
think ‘battered but resilient’ is the
best description of the economy over
the next several months. This finding
suggests that the respondents expect
a long, slow recovery. The next most
frequently chosen description (31 per
cent) of the economy is even less hope-
ful: ‘stalled globalization’. Only 20 per
cent expect a fairly quick recovery. Ex-
ecutives say that their views are most
influenced by the GDP growth rates
of their countries. Beyond that, those
with different outlooks are influenced
by very different indicators: those who
foresee a quick recovery, for instance,
are likelier to focus on consumption,
others on unemployment
McKinsey says many executives are
hopeful about their companies on sev-
eral fronts. Expectations for profits are
significantly brighter than they were
six weeks ago, and expectations for
customer demand are notably brighter.
The share expecting that their compa-
nies will increase the size of the work-
force over the next six months has risen
to 26 per cent, equaling—for the first
time in a year—the share that expect it
to decline.
The top current priorities of compa-
nies are a mix of short- and long-term
moves, including cutting costs, devel-
oping new products, and working to
ensure that organizations are flexible
enough to respond to changing eco-
nomic conditions. Although three-
quarters of the respondents’ compa-
nies are cutting costs and most will
continue to do so, fewer than half iden-
tify cost cutting as a top priority. Equal
shares report that their companies are
restructuring to position themselves
for growth and to reduce costs.
World in five years
Respondents from almost three-quar-
ters of the companies expect them to be
in a stronger competitive position five
years from now than they were before
10 BANKING AND BUSINESS REVIEW
Executives remain skeptical about the economic
health of their countries, with a majority
favouring continued government support for
economic recovery in the near term
September 2008. Respondents who ex-
pect their companies to be stronger in
the long term are likelier than others to
say that they are focusing on flexibility,
new products, and long-term planning
and that their industries will consoli-
date. One source of competitive advan-
tage may therefore be the elimination
of weaker competitors.
The results showed that these re-
spondents are also likelier than others
to expect their industries to become
more innovative. Indeed, innovation
as a response to the crisis is a consistent
theme of this survey, and more than
half of all respondents say that innova-
tion is more important to growth than
it was before the crisis. Interestingly,
this is consistent with a finding from
January, its low point, when executives
said that governments could be most
helpful to industries by supporting in-
novation, the report notes.
More broadly, even though the cri-
sis has slowed many trends related to
globalization and raised many ques-
tions about the value of increasing eco-
nomic integration, economies clearly
are still more linked than not, and
most respondents to this survey expect
the links to increase—along with the
role of government.
Executives are far more hopeful that
October 2009
globalization will intensify than they
were at the low point of the crisis. Five
years from now, a much larger share
of executives expect more integrated
financial markets and more extensive
global operations and international
trade than expect the opposite. Forty-
nine per cent of respondents now ex-
pect greater financial-market integra-
tion; when we asked a similar question,
in March 2009, only 35 per cent did.
But the survey found these hopes
to be tempered: there is no single area
of globalization that a majority of ex-
ecutives expects will intensify. Further-
more, 44 per cent believe that the com-
mitment to free-market economics will
be lower than it was before the crisis,
though most expect little social or po-
litical backlash against the free-market
system.
At the national level, majorities of
executives expect that five years from
now, governments will be more in-
volved in the economy as a whole and
that the financial sector will continue
to see increased regulatory constraints.
Just under half also expect tighter credit
and a decreased rate of GDP growth. A
slim majority of executives expect con-
solidation in their industries; many also
foresee more extensive innovation and
slower growth in their industries.

Investment community sceptical
Survey finds nearly two-thirds of fund managers believe crisis will continue
D
espite improving economic
indicators, senior fund man-
agers at a wide range of lead-
ing institutional investors from more
than 15 countries, with over $2.8 tril-
lion of equity funds under manage-
ment, overwhelmingly say that the
financial crisis is still not over. This is
according to a new global survey re-
cently conducted by business advisory
firm FTI Consulting.
The survey of more than 153 lead-
ing institutional investors revealed
that: 64 per cent of respondents glo-
bally said that they did not believe
that the financial crisis was over, with
31 per cent saying the crisis was over,
and 5 per cent undecided.
UK, US and Australian investors
were the most pessimistic with 73 per
cent, 76 per cent and 80 per cent, re-
spectively of investors believing the
crisis had not ended.
Continental European and Asian
(including the Middle East), investors
were slightly more optimistic with 59
per cent and 62 per cent; respectively
saying the crisis was not over.
According to Jack Dunn, FTI’s
President & CEO, the majority of
funds surveyed did not believe the
financial sector has recovered since
the pinnacle of collapse in September
2008. This sentiment is reflected across
all regions, with US, UK and Austral-
ian investors the most pessimistic. In
Continental Europe and Asia (includ-
ing the Middle East) there is more op-
timism, but a significant majority still
does not believe the sector is back on
track.
“Anecdotal evidence gathered dur-
ing the survey suggests that across the
globe investors were still concerned
that the amount of leverage in the sys-
tem that caused the original problem
has not been reduced. The prevailing
view was that there has been so much
economic stimulus that markets can
not help but go up. The concern was
what would happen when government
money runs out,” he said.
“These findings suggest a paradox,
in that despite the negative outlook,
global equity markets have rallied
significantly in recent months. This
indicates a willingness of investors,
for now at least, to focus on factors
beyond the fundamental issues that
caused our current economic crisis.”
Dunn said the findings reflected
on-going uncertainty in world mar-
kets and highlighted challenges that
would be faced by world economic
leaders at the upcoming G-20 summit
in Pittsburgh.
“There is no doubt that the on-
going uncertainty is having follow-on
effects throughout the global econ-
omy. Among US companies alone,
approximately $163 billion of corpo-
rate speculative grade debt is due to
mature in 2010, with approximately
$266 billion set to mature in 2011,
according to Standard & Poor’s re-
search. These enormous financing re-
quirements amidst still-fragile credit
Do you believe that the
financial crisis is now over ?
BANKING AND BUSINESS REVIEW
FUNDS
Investors across
the globe are still
concerned that the
amount of leverage in
the system that caused
the original problem
has not been reduced
markets, and weak demand apart from
government stimulus, put a premium
on a company’s ability to effectively
manage both public perceptions and
the underlying business.“
“For many companies, this uncer-
tainty has meant looking at alternative
funding avenues, such as sovereign
wealth funds, the equity markets, or
more exotic capital raisings. For policy
makers, it has meant reassessing the
regulatory environment and executive
incentives that have driven the market
for many years.”
The survey was carried out by the
investor relations practice of Financial
Dynamics (FD), FTI’s strategic com-
munications division. The survey was
based on interviews with 153 of the
largest institutional investors across
the world’s principal financial markets
that between them have over $2.8 tril-
lion of equity funds under manage-
ment. 21 per cent of investors surveyed
were based in the UK, 20 per cent were
based in the US, 21 per cent were based
in Asia (including the Middle East), 34
per cent were based in Europe, and 4
per cent based in Australia.
October 2009 11
 C OV ER STORY
New bank
front-benchers
Increase in number of skips worries banking sector
By Ambily Vijaykumar
H
alf a million cheques is-
sued in the first four
months of this year in
the UAE have report-
edly bounced. That number has gone
up considerably since then. Invari-
ably, the reason that banks cite for the
bounced cheques is insufficient funds
in customers’ accounts. The number
of court cases in connection with the
12 BANKING AND BUSINESS REVIEW
offence is also on the rise, as issuing
a cheque that bounces is criminal in
the UAE and invites prison terms.
The situation, much like the financial
crisis, is unprecedented and has been
the result of redundancies in the af-
termath of companies continuing to
downsize.
Defaults have gone up, but what is
worrying the banking industry is the
October 2009
sudden spurt in the number of skips.
Not a pretty picture for the sector,
where the lenders are tightening and
even freezing the lending process.
HSBC Bank Middle East has re-
ported a surge in its number of skips
or absconding customers since the end
of 2008. The bank says that the skips
account for half of its bad debt and it
doesn’t see the numbers reducing in
the near future.
Even local banks have reported that
a large number of their customers are
leaving the UAE without settling their
credit card bills. In-house research
by banks also say between 1,500 and
2,500 customers are leaving the UAE
every month without paying up on
credit cards. Fully aware of the fact
that the country with its large expatri-
ate population is prone to a situation
where skips are bound to occur, banks
have been bracing up for the situation.
And yet there is a flip side to the
story. Despite the difficult recovery
situation, banks are refusing to budge
from their tough pre-payment condi-
tions. For instance, a bank in ques-
tion imposed a 5 per cent pre-payment
penalty every time a bulk payment was
made, while at the same time refusing
to accept a cheque on the pretext the
facility could be applicable only for a
final settlement of the loan.
The instance stands in sharp con-
trast to the overall picture, and sticks
out like a sore thumb in the banks’
approach towards genuine customers
willing to repay their dues. The con-
sumer banking head of a leading inter-
national bank in the UAE agreed “it is
unwise to do that in today’s times.”
Skips are said to account for half of a
leading bank’s bad debts as customers
simply abscond, leaving behind large
amounts of unpaid dues
In any case, debt collection has as-
sumed unprecedented importance.
Though it has been an integral part
of the banking business, it is now be-
ing assigned to the fore-fronts of the
banks’ operations. Banks have begun
‘redeploying’ their employees to this
arm and are training them in the req-
uisite skills to retrieve the millions
that customers owe them.
While the term itself conjures im-
ages of strong-arm tactics, constant
harassment over the phone and in sev-
eral cases even personal intimidation,
banks insist their approach is ‘meas-
ured’. Conversely, reports have also
been doing the rounds that customers
with dues of as little as Dh16 are being
virtually stalked into coughing up the
money. The incident is a reflection of
the “failed collections strategy of the
bank,” says a leading banker, consid-
ering that the cost of calling up the
BANKING AND BUSINESS REVIEW
‘defaulting’ customer would amount
to more than the outstanding.
One such hassled customer had her
telephone buzzing every hour with
reminders of a credit card payment
though she had closed her account at
least two months before. “It shows the
utter lack of coordination within the
bank. How can I owe them money,
when the card has been closed and all
dues settled long ago? They call me
when I am in the middle of important
meetings, when I am home, while driv-
ing, just about anywhere. Banks are
insensitive towards customers,” she
alleges.
In-house handling of collections
entails “assigning the best of our tal-
ents to do the job”, says Sanjoy Sen
Consumer Banking Head of Citibank
Middle East. The bank has close to 200
people designated to carry out the job.
Smart technology too has come in
to assist banks while handling data on
customers running into thousands.
Making individual calls to the cus-
tomer remains the conventional way
to approach debt collection, but the
use of auto-dialers aids in the process
by cutting down on the time needed to
manually punch in the numbers. Man-
aging data of delinquent customers
on a customer account level through
queue management system is also cen-
tral to the functions of technology aid-
ing the collections programme.
A more advanced use is a combina-
tion of technologies to even ascertain
preferred calling times for customers
based on previous customer contact
behaviour. This way the banks get an
opportunity to interact with their cus-
tomers, which is the primary require-
ment for the collections team.
Banks say that a ‘customer-centric
approach’ forms the core of their col-
lections activity, whereby they strive to
ascertain the reason behind a person’s
October 2009 13
inability to meet the commitment to
the lender. After identifying the prob-
lem, the next step is to work out an ap-
propriate solution that benefits both
parties involved.
“Counseling experts” in banks
undertake the task of chalking out
a payment solution with defaulting
customers who have the intention to
pay but not the ability. In such cases,
banks re-write a customer’s loan to
suit the changed payment pattern and
tenure. But this cannot go on forever.
So where do they draw the line?
Obviously no bank will re-write
endlessly since all debt collection ac-
tivity is guided by a set of rules. But
banks do take into account a person’s
intention to pay. So a customer who
has the intention but not the abil-
ity will demonstrate that intention by
paying something. Flexibility is exer-
cised to the extent of increasing the
loan repayment tenure and amount
to accommodate financial difficulties
arising out of a job loss, for instance.
However, in the event of a failed ne-
gotiation with customers, banks seek Banks have begun ‘redeploying’ their
legal remedy particularly in cases of
bounced cheques. A leading law firm
employees to debt recovery and are training
in Dubai confirmed that there has them in the requisite skills to retrieve the
been an increase in the number of
bounced cheque cases that they han-
millions that customers owe them
dled over the past year.
Segregating customers based on
their default patterns is also a method apart, banks also outsource their debt banks point out. But much before the
used by banks to ascertain whether a collection activities to recovery agen- banks reach a stage where they have
default would lead to skip. So when a cies that have over a period of time to track a defaulting customer, lenders
person defaults for the first time, the earned a bad reputation. “We do due continue to vouch for prudent lending
bank establishes contact with the cus- diligence on the agencies and ensure norms and detailed customer profil-
tomer to deter a future default. As part that the quality of collections and ing before issuing a loan. This includes
of customer profiling from the very customer interface of the agencies, verification of customers’ addresses
outset, much before a default, cus- who represent us, meet our stringent both in the country of residence and
tomer spending patterns are closely standards,” clarifies Sanjoy Sen. origin and coordinating with the cus-
monitored. Similarly, Barclay’s bank comes tomers’ employers in cases where loan
Enabling to understand the skip to the defence of its chosen agencies repayments are through salary trans-
propensity of customers are scien- saying they have these agencies both fer, among others. But the recession
tific tools like the ‘skip score card’ within the UAE and outside but, “each has thrown up an entirely new chal-
that banks employ to avoid future one goes through a careful selection lenge for banks to counter: there are of
defaults. For example, if a customer process to ensure they meet our strict course defaulting customers, but there
who through his spending pattern internal code of conduct and reflects are also absconding customers.
has not demonstrated a willingness our collection practices.” Legally, in cases where the debtor
to purchase jewellery suddenly goes Overall, debt collection practices is in the country, the law requires the
on a jewellery purchase binge, that have undergone a sea change in con- banks to produce proper documenta-
gives enough fodder for banks to take junction with the downward spiral in tion, including the amount collect-
‘proactive measures’. the UAE market. A ‘soft’ negotiation able as well as the debtor’s address. A
In-house handling of collections with customers is now the emphasis, summon is then served on the debtor

14 BANKING AND BUSINESS REVIEW October 2009


and in the event of the bank getting
a favourable verdict, it can enforce
the judgment against the assets of the
debtor. This means any account owned
by the debtor can be frozen or the as-
sets owned by him can be sold under
court supervision and the proceeds
can then go to the bank.
Coupled with the absence of credit
bureaus in the market, the task of suc-
cessful recovery from an absconding
debtor becomes tougher for banks. The
construction sector crash and the re-
sultant job losses have already led to a
continuous exodus of expatriates. This
has been the key reason for the piling
up of bad loans for various banks in
the country.
Such cases also become difficult
to convert into a successful recovery,
proof of which is a leading local bank
revealing that they are able to recover
only up to a quarter of their unpaid
debt because of fleeing customers.
Even success through legal recourse is
something that isn’t guaranteed when
it comes to tracing a debtor for recov-
ery outside country limits.
Impeding a favourable solution for
banks is also the procedural hassle of
serving summons to a debtor who has
fled the country. A Dubai-based law
firm we spoke to in this regard refused
to put a figure on the success rate of
Banks say a ‘customer-centric approach’
forms the core of their collections activity,
whereby they strive to ascertain the reason
behind a person’s inability to meet the
commitment to the lender
such cases that travel outside the UAE,
but banks are citing very low figures,
which tells the story.
Probability of a recovery is high dur-
ing the initial few months of the default,
with the resolution rates for early collec-
tion cases being up to 85 per cent. But as
BANKING AND BUSINESS REVIEW
banks themselves admit, “once an ac-
count goes into write-off, recovery is a
meagre 20-30 per cent.” Even with such
low success rates for long-drawn cases,
banks say they do not discontinue the
collections process. They then switch
to a ‘different approach’ until a solu-
tion is found.
It is this new approach that is the
subject of scrutiny. While no banks
will admit it openly, there are a number
of examples of threat being used to re-
trieve money the world over. That also
explains why international banks uti-
lize their network across several coun-
tries to track customer who flee from
one country to the other.
“Once we have confirmed that a
person has actually left the country,
the customer will go through the dedi-
cated skip process. The first step is the
Skip Tracing process where we identify
the home country, once that is com-
plete we allocate the case to a home
country agent,” says Salman Irshad,
Head of Retail Credit UAE at Barclay’s
Bank.
The rising bad debts have helped the
growth of a parallel industry in coun-
tries like the US and Europe: that of
debt sale. This means that banks that
have bad debts package them and sell
to someone else who, depending on the
success rate of recovery, makes a profit.
Since these are bad loans they are sold
on a discount as not all money may be
recoverable. Bankers here attribute this
phenomenon to the ‘maturity’ of these
markets where there is more transpar-
ency regarding the quality of debt on
sale. Lack of a credit bureau deters the
introduction of debt sale in the UAE
market as that will require reliable data
regarding the nature of the debts.
October 2009 15
Skips are a fact
of life in UAE
Large expat population increases risk factor, says Barclays

D
elinquency rates at Bar-
clays Bank UAE have in-
creased over the past nine
months and the bank is
expecting it to “increase slightly” in
the near future. In conjunction, the
number of skips that have also con-
tributed to these rising rates has also
shown an incremental trend, with the
second quarter being higher than the
first.
Barclays says that banks in the UAE
have to be prepared to deal with the is-
sue of skips since it has always been a
risk factor in the country where a large
portion of the population consists of
expatriate workers. Economic uncer-
tainty, coupled with redundancies,
has contributed vastly to the skips this
time, since those who have lost jobs
are finding it challenging to find a new
one. And with work visas needed to
stay in the country, those who do not
find new jobs are forced to leave.
Despite the climbing numbers, Bar- minds are working on it,” says Salman.
clays says that its approach to retriev- “It is a customer-centric collections
ing money from defaulting customers approach,” he elaborates. Entailing a
is very measured. “The objective is to focus on early collections activity, the
understand the inherent issue behind bank lays emphasis on reviewing a
the customers’ inability to meet their customer’s specific situation, based on
commitments and try to get them fi- his ability and willingness to pay. It is
nancially stable again as quickly as
possible,” says Salman Irshad, Head of
Retail Credit at Barclays Bank UAE.
Collections and recovery have been
one of the bank’s key focus areas this
year and the lender does not see that
focus shifting any soon in the near
term; a clear indication of what the
banking sector is bracing for. Stepping
up the concerted efforts to contain
the piling bad loans is also increased
bench strength in the debt collection
department. “People have been moved
internally and also specialists from
other areas of the bank have been re-
assigned to the collections job to en-
sure that the best people and the best

Collections and recovery have been one of

key focus areas of Barclays this year and the based on the initial review that a rele-
vant solution that benefits both the cus-
bank does not see that focus shifting any tomer and the bank is chalked out. In
soon in the near term instances where the law of the land is in
question, like bounced cheques, banks
resort to legal recourse since failure to
honour a cheque is a criminal offence in

16 BANKING AND BUSINESS REVIEW October 2009

the UAE.
Prior to the situation reaching a
point where the bank has to resort
to the recovery process, the lending
norms have been reviewed to ensure
that customers are not being stretched
with regard to their financial commit-
ments. Part of the process entails pro-
viding the right product solution for
the customer. Reviewing a customer’s
situation based on their ability and
willingness to pay is a priority with a
dedicated team of counseling specialist
at hand, who works with customers to
understand their problem and work out
an appropriate solution.
“At Barclays our customer asset port-
folios have been rationalised during the
credit crisis, reflecting our policy on re-
sponsible lending and a renewed focus
on the process of new account approv-
als,” elaborates Salman. Technology
and integrated systems also play a vital
role in managing the collections and
recovery process. Increasing number
of defaults and skips is managed by the
core collections software that provides
intelligent queue management system
for all delinquent customers and also
an automated tracking function that
logs all collection activities at the cus-
tomer account level.
On the telephony front, auto dial-
ers aid in increasing productivity with
automated speed dialing to reduce the
time between two calls. There is also
technology available to identify pre-
ferred calling times for customers that
is deduced from previous customer
contact behaviour. A combination of
these technologies aids the bank in
succeeding to establish a direct contact
with their customer that is central to
the collections activity.
The repercussions of the financial
crisis have proven that even due dili-
gence is no guarantee against bad loans.
Hence, what is being affected now is the
collections strategy. There is no under-
mining the fact that there is an urgency
to retrieve money but there is also strict
adherence to the ‘code of conduct’ fol-
lowed for the process.
The code is also applicable to the ex-
ternal agencies employed by Barclays to
carry out the proc-
ess. The number
of external agen-
cies employed by
the bank both
within the UAE
and outside has
increased. This is
to ensure that “the
bank can reach its
customers wher-
ever they may
be,” says Salman.
Handing over the
case to an external
agency has gener-
ally been wrought
with controver-
sies but Barclays
maintains that
“each one goes
through a careful selection process to
ensure they meet our strict internal
code of conduct and reflect our collec-
tion practices.”
Confirmation of a person having
left the country then prompts the bank
into resorting to the skip tracing proc-
BANKING AND BUSINESS REVIEW
ess where the customers’ home country
to which they have fled is identified and
the case is then allocated to a recovery
agent there. The success of the collec-
tions process is hugely dependent on
the number of successful recoveries. At
an early stage into the process, possibili-
ties of getting the money back is as high
as 85 per cent, but as a case stretches
further, the chances reduce to as low as
20 to 25 per cent. That happens when a
customer has missed several payments
in a row.
The time frame for successfully im-
plementing the process is of essence
but that has not deterred Barclays from
pursuing the process “until a solution is
found”. One of the future solutions for
the banking sector to ward off bad loans
could also be debt sale, a phenomenon
that is common in the US and Europe,
says Barclays.
“The key factor behind debt sale is
the overall level of market maturity so
while debt sale is common in the US
and Europe, the same cannot be said of
the UAE. One of the key initiatives that
will help the market to develop will be
the introduction of the credit bureau to
ensure that there is more transparency
about the quality of debt that is on for
sale. Until that happens, large players in
the debt sale market would be unwilling
to take the potential risk associated with
the portfolio especially if they have the
opportunity to purchase debt in more
mature markets where this kind of data
is readily available,” says Salman.
When that happens is a matter of de-
bate and so is the time when the current
slowdown in the market is expected to
stabilize. Barclays believes that a clear
picture of the market would emerge by
the end of the year though some indi-
cators have suggested to a bottoming of
the downturn. The bank has seen some
stability in credit performance of some
customer segment, including mort-
gages and credit cards where banks are
becoming particularly active.
AV
October 2009 17
No alarm bells
With a philosophy to underwrite the customer and not the product,
Citibank says it has managed to contain default levels
T
he rate of skips is a ‘cause
of concern’ but not enough
to set off alarm bells, says
Citibank in the UAE. The
international bank says that with
its cautious lending strategy, it has
been able to keep its losses and skips
within predictable limits; this despite
the delinquency rates being higher
than last year. The bank says it has
succeeded to contain the default rate
within single digits.
With expertise in consumer bank-
ing in over 75 markets across the
globe, the recession is, according to
Citibank, “not something new to us.”
The expertise gained from previous
experiences has apparently come to
the bank’s aid. Good underwriting
becomes indispensable in a non-cred-
it bureau environment like the UAE.
With a philosophy to underwrite the
customer and not the product, the
bank says it has been able to ascertain
that the person who gets the loan has
the means to repay it.
“Many institutions would offer
credit cards, home loans, car loans
etc without doing due diligence of the
customer’s ability to handle the loan.
18 BANKING AND BUSINESS REVIEW
From our perspective, a customer is
one. He has only one income so we
underwrite a customer and based on
his repayment capability offer differ-
ent products,” explains Sanjoy Sen,
Citibank’s Consumer Banking Head
Middle East Region.
The present scenario has to a large
extent blunted the effectiveness of
these measures since bad debts have
been accentuated by the rapid increase
in job losses. There are also reports
of banks keeping aside large sums in
provision as a buffer against future
bad loans. Collections have hence as-
sumed far greater prominence than
they did before. “For us collection is a
frontline strategy not an afterthought.
So we don’t first sell a product, give
out loans and then think about col-
lecting it,” elaborates Sanjoy.
With debt collection being a multi-
pronged process, collections capacity
planning forms the initial phase of
the process. Earmarking a set number
of people with a specific quality and
imparting training to them in service
skills is central to assessing the bank’s
capacity to carry out the process.
Ability to negotiate with custom-
October 2009
ers goes a long way in determining
whether a successful retrieval is pos-
sible. This goes on alongside invest-
ment in technology like auto dialers
that aids the process. Scientific tools
like the skip score card helps in under-
standing the propensity of those cus-
tomers who are prone to default and
“For us collection is
a frontline strategy
not an afterthought;
so we don’t first sell
a product, give out
loans and then think
about collecting it”
skips. The tools enable the bank in tak-
ing proactive steps on these custom-
ers. For instance, a customer who has
never bought jewellery suddenly goes
on a jewellery buying binge, which is
a warning to the bank that something
is amiss.

When the issue is that of ability, the
collections strategy is centered on educating
and working with their customers to
understand the requirements and helping
them come out of the credit cycle
It is to differentiate the different
kind of customers and their default-
ing patterns that the bank has devel-
oped its own categorization technique
called ‘bucketing’. The sifting happens
based on the nature of the defaults. “A
customer might have skipped two in-
stallments, someone else might have a
temporary problem in paying up and
yet another could have left the coun-
try. So each of these cases requires a
dedicated approach to be resolved,”
says Sanjoy.
Once the sifting is done, next is the
strategy to differentiate between the
customer’s ability and intention to pay.
When the issue is that of ability, the
collections strategy is centered on edu-
cating and working with the customer
to understand their requirements and
helping them come out of the credit
cycle. Guiding the customer on proper
financial planning and using credit
wisely is the key to the assistance that
Citibank offers.
‘Soft’ negotiation skills might also
not lead to the desired results. So when
does the bank push things further? “If
a customer’s repayment is delayed by
10 days, we don’t send a person to his
house to collect that money. There are
various stages to the approach. At an
earlier stage, we write letters to the
customer, at the next we telephone a
customer and later we would visit and
then finally when all of the above fail
to bear fruit, we employ legal meas-
ures. Previously we would telephone a
customer on a 30 day default, but now
we begin that process a little ahead by
Sanjoy Sen, Consumer Banking Head,
Citibank, Middle East Region
sending reminders,” says Sanjoy Sen.
Even the extent of the default in
terms of amount outstanding is a de-
ciding factor on the approach to the
collections activity, says Citibank. The
bank, however, denies using strong
arm tactics to recover money saying
that is not part of their approach to the
issue.
Despite the measures of careful un-
derwriting and later negotiations, the
present situation has people fleeing the
country, leaving behind massive debts.
BANKING AND BUSINESS REVIEW
Citibank says that the possibility of re-
covering the money from someone who
is not within the geographical limits
of the country reduces considerably
though the bank does seek assistance
from its branches in other markets
and use their expertise and collections
framework “selectively in some mar-
kets” to get back the money.
Exceptions don’t make the rule,
but cases where customers who are
willing to pay back and have practi-
cal difficulties in doing so are dealt
with extreme care, the bank points
out. “We handhold the customer and
walk him through the credit cycle. We
have different collections mechanism
in which we re-write and re-negotiate
and change the terms of the contract
so that we can reduce the payments
and increase the tenure of payment,”
Sanjoy says.
Re-writing is not a permanent solu-
tion though. There are situations when
the bank has to decide whether the cus-
tomer’s intention to repay is genuine or
not. “A person who has the intention to
pay but does not have the ability will
demonstrate by paying something so
that partial repayment is a demonstra-
tion of his intention. The re-write tool
comes into play when a customer has
shown an intention to pay back and
comes and says that ‘I have lost my job
and am in the process of getting a new
one’, but with a lower salary he will
be able to pay a reduced installment.
Our collections team does not work on
something ad hoc,” says Sanjoy.
With a team strength of close to
200 people in its collections depart-
ment, Citibank says that on a typical
day a person in the department makes
about 70-80 calls; a testimony to the
rising number of defaulting custom-
ers. The bank says that even though
as an institution it can advice custom-
ers to exercise financial prudence, the
bank cannot stop them from applying
for credit cards from other banks. The
lack of credit bureaus has put the onus
back on the banks to ensure that they
employ all necessary filters while deal-
ing with a prospective customer.
AV
October 2009 19
 EC ONOM Y
Tight credit
hampering recovery
StanChart economists see banks competing
for deposits to bridge funding gap
D
espite the rise in oil prices,
credit conditions continue
to be tight in the UAE and
this is standing in the way
of economic recovery.
Outstanding loans are still higher
than deposits by Dh37 billion as of July
and this shows banks are faced with
a funding gap, according to Standard
Chartered economists. The latest fig-
ures from the UAE central bank show
that total loans, advances, and over-
drafts contracted by 0.2 per cent month
on month in July, with outstanding
loans remaining higher than deposits
by Dh37 billion as of July 2009.
The funding gap is also leading to
higher deposit rates as banks compete
for deposits to bridge the gap, bank’s
Dubai-based economists Marios Mar-
atheftis and Mary Nicola say in a re-
port. Marios is Regional Head of Re-
search, MEPNA, and Mary Nicola, the
bank’s MENA Economist.
Saudi Arabia is also placed in a
similar situation, with the prevailing
credit conditions hampering economic
recovery, they said.
With oil prices rebounding, the glo-
20 BANKING AND BUSINESS REVIEW
bal economic outlook is improving and
markets are now beginning to focus on
the nature of the recovery. UAE and
Saudi Arabia benefit significantly from
higher prices, both countries having credit growth remains flat, although
enjoyed estimated budget surpluses of the reasons behind the two countries’
22 per cent and 33 pre cent of GDP re- credit crunches are quite different, the
spectively in 2008. economists point out.
Higher revenues in 2009 as oil pric- They feel that the growing oil rev-
es continue to recover will help both enue should help to replenish deposits
governments continue comfortably and gradually improve credit condi-
Despite the benefits of higher oil prices
and their positive impact on government
spending and revenues, liquidity in the UAE is
tight, and credit growth remains flat
with their expansionary budgets – es- tions.
pecially considering that the hydrocar- Credit growth in Saudi Arabia in July
bon sector contributes 81 per cent and was only 0.1 per cent month on month
90 per cent, respectively, to govern- and they feel that the credit crunch in
ment revenues in the UAE and Saudi Saudi Arabia is primarily a confidence
Arabia. Despite the benefits of higher problem.
oil prices and their positive impact on “Deposits are higher than loans.
government spending and revenues, li- Yet while Saudi banks have the liquid-
quidity in both countries is tight, and ity and the ability to resume lending,
October 2009
they are instead opting to increase their
deposits with the Saudi Arabian Mone-
tary Agency (SAMA). July data showed
a 9 per cent increase in deposits held
with SAMA. Here, more efforts are
needed to boost business confidence,”
they said.
Saudi Arabia and the UAE have the
lowest costs of hydrocarbon produc-
tion among the oil-producing countries
(currently estimated at $20 per barrel
for Saudi Arabia and $22 for the UAE).
Government revenues have fluctuat-
ed tremendously over the course of the
year, as is typical for countries that rely
heavily on commodities. In July 2008,
when the Saudi Arabia Light Spot price
(which is used in the OPEC reference
basket) was at $132 per barrel, Saudi
revenues reached close to $1 billion
With oil prices rebounding, the global economic
outlook is improving and markets are now
beginning to focus on the nature of the recovery
per day. In the UAE, 2008 production It is interesting to compare these
reached 2.567 million barrels per day numbers to February 2009, when both
and the Abu Dhabi Murban Spot Price production and prices fell to the low-
reached $140 per barrel; as a result, rev- est levels seen in 2008-09. Saudi Arabia
enues peaked at $304 million per day. produced an average of 7.86 million
barrels per day and prices averaged
$38.5 per barrel; revenues were only
$145 million per day. For the UAE, pro-
duction fell to 2.223mbpd and prices
declined to $44.68 per barrel, causing
revenues to fall to $50 million per day.
Assuming constant production at cur-
rent levels, the bank estimates that the
UAE and Saudi Arabia gain roughly $3
million and $ 8 million in revenues per
day, respectively, for every $1 increase
in oil prices.
The report notes that when it comes
to real versus nominal GDP growth,
the level of oil production has a big-
ger direct effect on real output than on
nominal output. The impact of prices
is indirect, felt through the wealth ef-
fect and potentially higher government
spending and investment. The report
refers to a strong correlation between
BANKING AND BUSINESS REVIEW October 2009 21
year-on-year changes in oil production
and real GDP growth. The relationship
is stronger in Saudi Arabia, given that
the hydrocarbon sector makes up al-
most 50 per cent of GDP, versus a 35 per
cent direct contribution to UAE GDP.
Oil production is highly correlated
with oil prices, with OPEC reducing
production when oil prices drop in or-
der to stabilise them, and vice versa. The
rebound in oil prices could have impli-
cations for production. The report notes
that further production cuts are unlike-
ly, especially as WTI prices approach
$75, the level cited by Saudi Arabian Oil
Minister Ali Al-Naimi as the fair value
of oil. Potential oil production increases
in 2010 could be another catalyst for a
strong rebound in the GCC next year,
the analysts say.
the business outlook. Order lead times
have shortened, as overseas buyers are
only willing to commit to orders for
the very near term.
This implies that manufacturers
and exporters still need to manage
their cash flow and working capital
carefully, which is deterring fresh cap-
ital investment, the bank points out.
For companies with exposure to com-
modities, the volatility in commodity
prices is further limiting investment
confidence. Investment is likely to re-
main weak until business confidence
choose to tighten first, but they are only
likely to take action once they see firm
signs of an economic recovery, includ-
ing a sustained improvement in busi-
ness confidence, the report says.
At the same time, current levels of
economic growth across Asia are still
below trend. A full recovery to trend
growth or above, and a subsequent re-
moval of the output gap, will probably
have to wait until 2010 or later. This
implies that demand-pull inflation is
unlikely to surface for some time, the
report asserts.

Asian recovery
The Standard Chartered report notes
that most Asian economies saw accel-
eration in growth or a narrowing eco-
nomic contraction during the second
quarter of this year. The report asserts
that the numbers confirm the bank’s
long-held view that large, domestically
driven economies are set to outperform
small, export-oriented economies. Chi-
na and Indonesia, where output never
contracted in year or year terms, have
clearly maintained stronger growth
momentum than Singapore, Hong sees a sustained recovery. To support “Of course, many have argued that
Kong, and Taiwan. Vietnam, despite its the still-nascent recovery, govern- Asian central banks should look to lim-
relatively high exports-to-GDP ratio, ments need to reinforce public invest- it the risk of asset bubbles via monetary
also sustained positive GDP growth due ment and boost business confidence, tightening, but this runs the risk of
to relatively stable domestic demand. the bank cautions. choking the recovery in its infancy, in
Taiwan and Thailand, where export Central banks in the region have al- our view. Hence, alternative measures
exposure is high and domestic demand
is weak, underperformed in both year
or year and quarter to quarter growth The report asserts that the numbers confirm the
terms.
Among the key GDP contributors in
bank’s long-held view that large, domestically
the second quarter, gross fixed capital driven economies are set to outperform small,
formation, or fixed asset investment,
was a drag on growth across Asian export-oriented economies
economies. Excluding public invest-
ment, the negative contribution from
investment would have been more se- ready cut policy rates aggressively and to ring-fence the impact of financial
vere. This implies that a rebound in supplied ample liquidity to the busi- market volatility on the real economy
business confidence is critical in or- ness sector. These loose monetary con- should be considered. In our view, hik-
der for the recovery to be sustainable. ditions are likely to persist until there ing policy rates too soon would have
While the global economic environ- is a sustained turnaround in business a negative impact on both the general
ment seems to be on the mend, the cor- confidence and investment. China, In- economy and the financial markets,”
porate sector is still very cautious about donesia, India, and South Korea may the report said.

22 BANKING AND BUSINESS REVIEW October 2009

 SNAP SHOT
For a ‘Dunia’ of
difference
UAE’s newest financial services company promises differentiated offerings
R with leading local
ajeev Kakar gets very pas-
sionate when he talks about
customer satisfaction. On
the previous occasion that
we met him, he was Regional Head &
CEO for Citibank’s Global Consumer
Bank, managing the Turkey, Middle
East and Africa region, a role that ac-
corded him plenty of scope to try out
his ideas. Of course, he then had the
firepower of a global brand like the
Citibank propelling his plans.
Today, he is spearheading a similar
move at Dunia Finance, the latest en-
trant to the UAE’s no-holds- barred
24 BANKING AND BUSINESS REVIEW
financial services sector. As the execu-
tive director and founder CEO of Dun- Dunia is the offshoot
ia, Rajeev is required to leverage all his
experience, skills and ideas to create a
of a strategic
brand out of the fledgling local player partnership between
that would conform to the concepts
that he is used to working with. Results Mubadala and
so far indicate good progress. Temasek Holdings
Dunia is the offshoot of a strate-
gic partnership between Abu Dhabi’s of Singapore, two
of world’s largest
international
government-
owned investment
companies, along
business groups
Mubadala Investment Company, and
Temasek Holdings of Singapore, two
of world’s largest international govern-
ment-owned investment companies,
along with leading local business groups
Al Waha Capital (formerly Oasis Inter-
national Leasing Company), and A A Al
Moosa Enterprises. Temasek’s presence
Rajeev Kakar, CEO, Dunia Finance in the partnership is through Fuller-
October 2009
ton Financial Holdings, a 100-per cent
owned subsidy.
Dubai-based Rajeev Kakar is also
the regional head of Fullerton Financial
Holding for Central Europe, Middle
East and Africa region, in addition to
his role as the executive vice-president
and senior Management Committee
member, heading consumer banking
for all its bank and financial services
investments and holdings across the
globe.
Rajeev has spent more than two
decades in the banking industry, start-
ing his career with Citibank in India in
1987.
His association with this region be-
gan in 2000, when he was designated
as the Country Head for Citibank in
Egypt, where he launched the Con-
sumer Bank, which grew to become the
leading financial brand in the Egyptian
market. Two years later he became Citi-
bank’s Cluster Country Head & CEO
for Turkey and Egypt, following which
he was elevated as Regional Head &
CEO for Citibank, managing the rap-
idly growing and complex markets of
Turkey, Middle East, Pakistan and Af-
rica. He has also served as a director
on the CEMEA Board of Visa Interna-
tional.
According to Rajeev, what distin-
guishes Dunia from the rest of the fi-
nancial sector players is its customer-
Customers apply for products through a
single application form, and thereafter do
not need to resubmit documentation for
incremental products
centric approach as opposed to the
product-centric offerings by its peers.
He says the company has a segmented
approach that first seeks to understand
the needs of the customer and then of-
fer the relevant financial product.
This has been made possible
through the acquisition of state of the
art systems that work on a unique tech-
nology platform, enabling delivery of a
differentiated level of customer service
to create the unique Dunia brand, says
Rajeev.
The company offers a wide range
of products and services-- from loans,
to credit cards, deposits for non-indi-
vidual customers, and working capital
facilities for small businesses. Dunia’s
financial services company licence does
not allow taking of deposits from indi-
vidual retail customers.
“Dunia goes through excruciating
detail to offer holistic solutions for dif-
ferent customer sub-segments, based
on the desired customer unique value
proposition, which is designed on the
key elements of product, service, con-
venience, experience and price,” he ex-
plains.
According to him, once a customer
takes a product from the company, it is
the beginning of a relationship that may
span a number of other products. There
are no multiple forms that the customer
is required to fill; nor are there multiple
statements.
Investments into state of the art
technologies and partnerships with
service providers who excel in their
individual areas of expertise have ena-
bled the company to implement an in-
tegrated approach towards differenti-
ated, and yet relevant offerings to meet
the individual needs of the customer,
he points out.
For instance, customers apply for
products through a single application
BANKING AND BUSINESS REVIEW
form, and thereafter do not need to re-
submit documentation for incremental
products. Turnaround time is also min-
imized due to the paperless operational
process where documents are centrally
scanned and approval happens in a
centralized location without the needs
for documents to be physically trans-
ported.
“Dunia reflects a quality organisa-
tion, an organization and a business
plan that strives to bring innovation
and care to banking, enabled through
the best in technology and process, and
supported by a very talented and good
management team,” says Rajeev.
Systems that allow 360 degree view
of customer relations across all chan-
nels and a dynamic rule engine that al-
lows instant credit decisioning allow the
company to deliver holistic products,
convenience, experience to customers
in a ‘sustainable and predictable’ man-
ner, he says.
He points out that the current finan-
cial crisis has brought bankers back to
basics and validates the model that the
company is following. While being in-
novative and flexible in its approach to
customers and products, the company
nevertheless strictly follows prudential
norms and does business as a respon-
sible lender.
For instance, you won’t find com-
mission agents selling Dunia products
as the company does not engage any
third-party marketing agency to push
its products, which is generally the
norm in the marketplace, Rajeev as-
serts.
According to him, the company
considers human resources as its big-
gest asset. His team includes highly di-
verse and talented management profes-
sionals drawn from leading financial
institutions around the world who, like
him, share the goal of delivering differ-
entiated levels of customer satisfaction.
The quality of talent is the key to the
success of any company, he stresses.
There are already over 500 profes-
sionals working for Dunia, with plans
to hire more in the months to come,
as the company readies itself for the
opening of 19 new branches across the
country.
- K Raveendran
October 2009 25
 RE AL ESTATE

Relocations help in
rents holding
Movements to Dubai from Abu Dhabi and Sharjah offset
effect of population decline

26 BANKING AND BUSINESS REVIEW October 2009

A
lthough anecdotal evidence dissatisfaction with current rent levels, market. Real rents will be determined
suggests that a significant or because they are on vacation during by what Dubai residents are willing to
number of expatriates have the summer. Either way, the result is a pay.
left the UAE in the first half marginal average increase in rents at According to the Dubai Property
of 2009, some of this decline has been a time when fundamentals should be Price Index (DPPI), during Q209,
mitigated by a stream of relocations dictating the opposite trend. average sale prices for villas declined
from Sharjah and Abu Dhabi, resulting Assuming that landlords are exiting 24 per cent, while apartment prices
in a smaller net population effect than the market due to lower rents, this fell 17 per cent. However, demand
originally feared, a latest report on the behavior will prevent Dubai’s leasing was considerably stronger for villas,
Dubai property market has concluded. market from reaching a rent floor, the which accounted for 73 per cent of all
According to Landmark Advisory, a report points out. In an oversupplied residential sales in Q209. Sale volumes
division of Landmark Properties, this
has also been bolstered by individuals
opting out of shared accommodation,
choosing instead to lease their own
units on account of lower rents. Analysts
expect that the Dubai Municipality’s
intention to resume enforcement of
the one-family, one-villa law to also
support rent levels.
“This will increase the aggregate
number of households, while
decreasing average household size. The
net effect will be additional demand for
apartments and smaller townhouses,
and villas. Due to the shrinking
household size, however, larger villas
may experience rent declines, due to
this policy,” the report said.
According to the report, former
Abu Dhabi residents that moved to
Dubai, but commute to work in the
capital, are primarily motivated by
location when choosing a new home.
High-income commuters tend to
prefer Dubai Marina/Jumeirah Beach Middle income commuters from Abu Dhabi tend
Residences, Palm Jumeirah, Emirates
Living villas, and Green Community
to relocate to Jumeirah Lake Towers and Discovery
villas. Middle income commuters from Gardens while relocation demand from Sharjah
Abu Dhabi tend to relocate to Jumeirah
Lake Towers and Discovery Gardens. is primarily price-driven and centers on more
Relocation demand from Sharjah is affordable areas like Mirdiff, International City, and
primarily price-driven and centers
on more affordable areas like Mirdiff, Al Qusais
International City, and Al Qusais.
Landmark Advisory reports that
there is an unexpected, albeit marginal, market like Dubai, rent floors are in Jumeirah Village were particularly
upsurge in rents across Dubai. At the consumer driven. The momentary strong, with an average transactional
same time, leasing inventories and respite in the rent correction process, price of Dh577 per square foot, which is
listing volumes have fallen noticeably. caused by a supply distortion, is only considered excellent value.
Landlords are de-listing or forgoing temporary and will reverse as soon as While bid-ask spreads ranged up
listing their properties, either due to those properties come back onto the to18 per cent, nearly three quarters of

BANKING AND BUSINESS REVIEW October 2009 27

all sales verified by Landmark Advisory
had a 0 per cent bid-ask spread in Q209,
with an aggregate average spread of
2 per cent. These spreads, however,
cannot necessarily be extrapolated to
the wider market listings, because of
different pricing strategies, the report
pointed out.
Year-on-year, villa and apartment
prices are down 37 per cent and 25
per cent, respectively. Since peaking
in Q408, however, villa and apartment
prices have declined by 44 per cent and
36 per cent, respectively.
During Q209, average apartment
rents in Dubai declined 23 per cent to
Dh129,900, while average villa rents
fell 19 per cent to Dh220,350. Although
apartment rents declined more than
villa rents in Q209, the opposite trend
prevailed in the last quarter. Year-
Overall demand for villas increased, as illustrated
on-year, rents for villa and apartment by a 25 per cent growth in leasing transactions,
rents have declined by 19 per cent and
12 per cent, respectively. although 2- and 5-bedroom villas experienced
Since peaking in Q308, villa rents, the heaviest rent declines, at 28 per cent and 27
according to Landmark, have fallen
31 per cent, while apartment rents are per cent, respectively
down 29 per cent since their peak in
Q408. Relocations from Abu Dhabi,
Sharjah, the Northern Emirates, and villa rentals remained stable in Q209, the Dubai Marina/Jumeirah Beach
within Dubai are the primary factors compared to Q109. However, where Residences (JBR) area, while 80 per cent
driving leasing demand. demand for short-term villa rentals was of the total were in premium locations,
Overall demand for villas increased, relatively well distributed accounting like Dubai Marina/JBR, Downtown Burj
as illustrated by a 25 per cent growth for 83 per cent of transactions. Dubai and Palm Jumeirah.
in leasing transactions. Two - and Overall, the most popular areas for
5-bedroom villas experienced the Apartments apartment rentals in Q209 were Dubai
heaviest rent declines, at 28 per cent Overall demand for apartment rentals Marina (26%), Jumeirah Lake Towers
and 27 per cent, respectively, with increased in Q209, as demonstrated (19%), and International City (19%). A
3- and 4-bedroom villas, seeing rents by a 20 per cent growth in leasing major difference over last quarter is the
fall by 18 per cent and 11 per cent, volumes. Transaction patterns show spike in leases for International City
respectively. strong demand for 1- and 2-bedroom apartments. During Q109, International
According to the report, quantitative apartments, and weaker demand for 3- City accounted for only 2 per cent of all
data and qualitative commentary and 4-bedroom apartments. Average apartment rentals, but in Q2, it registered
indicate that demand was strongest for rents for 2-bedroom apartments as many transactions as Jumeirah Lake
3- and 4-bedroom villas, an observation declined 44% in Q209, more than Towers (JLT). Demand in International
supported by higher volumes and any other unit-type. This was caused City was primarily driven by upgrades to
relative resilience of rents for those by strong demand for 2-bedroom larger apartments by tenants within the
unit categories. The upgrading trend apartments in more affordable development itself; approximately 75 per
identified in Q109 continues, with 3- developments, like International City. cent of International City leases were for
and 4-bedroom villas faring best in The report cites transactional data 2 bedroom apartments.
terms of demand. Location preferences to say that 3-bedroom apartment rents The decline in Dubai Marina’s share of
remained unchanged from Q109, with fell the least, with a quarterly decline total apartment leases is not symptomatic
the following areas earning highest of 24 per cent, due mainly to demand of falling demand; the absolute number
leasing volumes: Emirates Living for larger units concentrated in higher of leases in Dubai Marina remained
(40%), Mirdiff (20%) and Jumeirah/ quality buildings. Approximately 60 relatively stable. Instead, it indicates a
Umm Sequim (20%) per cent of all leasing transactions relative increase in demand for other
Overall demand for short-term for 3-bedroom apartments were in areas.

28 BANKING AND BUSINESS REVIEW October 2009

 Demand for short term apartment while building is incentivized by lower net job creation. This will depend on
rentals remained stable in Q209 capital costs on construction loans. macroeconomic performance and
compared to last quarter. The top According to Landmark, disjointed government policies, both of which are
areas for short term apartment rentals lending practices continue widening impossible to predict.
are Dubai Marina (41%) and Emirates the supply-demand gap. In some Signs continue to indicate probable
Living (36%). Landmark Advisory areas, like Jumeirah and Satwa, supply sale price stabilization in Q409, which,
expects a total of 22,700 residential is decreasing, as older buildings are could be the beginning of a price floor.
units to be delivered by end-2009. demolished. While the overall effect However, this is highly dependent on
This projection is slightly lower is currently negligible, a coordinated macroeconomic, financial, and real
than estimates made last quarter, as urban regeneration plan would control estate industry policies and trends.
developers continue to re-phase projects aggregate supply and therefore help Based on historical trends, sale volumes
and delay construction. While the stabilize the market.
current estimate for new unit deliveries Such a strategy would
in 2010 is 40,400 units, analysts expect be especially beneficial
this to fall to 25,000-30,000 units over in light of improved
the next 12 months. building standards, it
The report points out that for end- says.
users in need of financing, interest According to
rates and LTV ratios are the key factors the report, despite
shaping residential sales demand. immigration from
Mortgage rates are between 7.75 per other emirates,
cent and 10.5 per cent, but currently Dubai’s total
population may still
decline. Analysts
The market is entering expect more out-
of-work expatriates
a period of massive to leave the UAE by
summer’s end, but
over-supply amid a many are currently
pattern of demand staying in a final
attempt to find new
destruction, which employment. As such,
will likely last for quite the reported future
school enrollment
some time. During figures can be
Q209, office sale misleading,
say. Many parents
they

prices declined 12 per may have chosen to

cent, but since peaking
in Q308, Dubai office
sale prices fell 42 per
cent. Office rents fell
on average 10-15 per
cent in Q209
average around 8.5-9 per cent. In
contrast, construction financing rates,
which shape supply side decisions,
are currently 7-8 per cent. As such, a
systematic imbalance persists, where
residential demand is restricted by high
borrowing costs and credit scarcity,
keep their children
officially enrolled, just
in case they are able to
find a new position.
In reality, using
school enrollment
as an indicator
will not provide
meaningful results
until September/October 2009, they are likely to dip during August and
point out. September, but then pick up again in
They say that looking to 2010, actual the fourth quarter.
rent levels will depend on multiple Landmark feels that the strong
factors, including the real volume demand for villas is likely to continue
of unit deliveries and net demand from investors and end-users. Based
growth. While relocation trends are on current supply projections, villas
currently propping up the leasing will constitute less than 20 per cent of
market, its long-run performance will total residential unit deliveries in 2009,
be defined by Dubai’s ability to achieve and even less in 2010-2011. Given these

BANKING AND BUSINESS REVIEW October 2009 29

supply and demand characteristics,
villas are likely to reach a price floor
first.
Apartments, on the other hand,
will be subject to additional sale price
volatility due to the large volume of
new supply likely over the next 2 years.
However, price floors for apartments
are expected to start forming in the
short term within specific areas.
Such areas will be defined by stable
or limited supply, plus strong and
continuous demand fundamentals.
The proverbial ‘location factor’ and
master development quality will be key,
they say. Of course, other factors like
amenities/facilities, views, parking and
maintenance fees are also important
for residential demand.
According to Landmark, due to the
continuing influx of new rental units,
average villa and apartment rents
will continue to decline into Q409.
The intensity and longevity of these
declines will depend largely on owner
decisions, like when to list the property
and how much rent to charge.
However, as leasing rates decline,
additional demand from relocation is cutting measures have caused average any decisions on acquiring new office
likely to support rent levels, keeping office space consumption to decrease space. Furthermore, pre-fitted out units
them from falling too sharply. While significantly. are increasingly attractive to potential
it is difficult to call a bottom, there is The report says that of the little new tenants, due to lower setup costs.
some evidence to suggest that rents in demand that currently exists, most Fitted out units in new buildings retain
specific areas may stabilize in Q409. focuses on smaller units. Recently a considerable premium over shell &
Ultimately this will depend on the delivered office buildings in Dubai are core.
supply-demand dynamics prevailing finding it increasingly difficult to rent In the short-term, corporate
in each location, the report says. out entire floors or larger units. Smaller restructuring, recruitment plans, and
Referring to Dubai’s commercial offices are absorbing faster. In general, finances will remain an important factor
office market, the report says the vacancy rates in newer buildings will affecting office space consumption.
market is entering a period of massive remain higher for longer periods, as Several prominent international
over-supply amid a pattern of demand absorption rates continue to fall. surveys show that most chief operating
destruction, which will likely last for While inquiries into new commercial executives of large multi-nationals
quite some time. During Q209, office space do continue, most companies are intend to continue reducing headcounts
sale prices declined 12 per cent, but waiting until early 2010 before making throughout 2009. At the same time, a
since peaking in Q308, Dubai office
sale prices fell 42 per cent. Office
rents fell on average 10-15 per cent in
Q209. Corporate restructuring, layoffs,
Transactional data indicates that 3-bedroom
frozen recruitment, and delayed apartment rents fell the least, with a
expansion have changed short-term
office demand characteristics, making quarterly decline of 24 per cent, due mainly
them difficult to model accurately into to demand for larger units concentrated in
the medium- to long-term The vast
majority of companies have frozen all higher quality buildings
recruitment and expansion plans for the
short- to medium-term. Redundancies,
corporate restructuring, and cost-

30 BANKING AND BUSINESS REVIEW October 2009

number of regional, industry-specific commitments to the region. Grade A offices in prime locations are
surveys indicate likely resumption The commercial component of the available for Dh2,368 – 2,690 per square
of recruitment among banking, current real estate cycle is likely to be meter in some cases already fitted-out
investment, and oil & gas professionals, more protracted than for the residential with luxurious finishings.
specifically in the UAE. segment. Changes in lending policies Referring to the Abu Dhabi market,
Shell & core units are becoming will be a significant factor defining the the report says that while there are few
less popular, as tenants look for ways length of the cycle. However, given the transactions taking place in Abu Dhabi,
to cut capital expenses. However, this uncertainty in the local office market, the rate of real price declines appears to
trend is not binary; certain tenant banks are unlikely to improve lending be slowing, for the time being. Average
profiles continue to prefer shell & core policies significantly in the short aggregate listing prices regained some
delivery, although this segment is now term. Low LTVs and the high cost stability in Q209, after declining sharply
smaller than ever before. To maximize of borrowing are likely to continue between Q308 and Q109. The slowing
absorption, landlords will have to be restricting demand. rate of price correction is mainly a
increasingly creative regarding leasing For those companies with a consequence of significant adjustments
terms and incentives, including free long-term perspective and available having already played out during Q408
parking, contribution to tenant moving
costs, and even no-payment periods.
Dubai’s commercial property glut will
continue to worsen over the next three
years, the report says
According to Landmark calculations,
during 2009, 10.5 million square feet
(977,000 square meters) of new office
space will be delivered to a market
already reeling from economic shocks.
While supply figures for 2010 and
2011 may be revised downward in the
future, actual delivery will exacerbate
existing oversupply and push office
prices and rents down. To absorb the
supply delivered only in 2009, Dubai’s
economy must generate 85,000-90,000
new office jobs. Based on the office-
consuming share of total employment
and the rate of expatriate economic
activity, this rate of office sector job
creation will require a full 20-30 per
cent population increase. Even under
normal circumstances, this growth rate
would be virtually impossible, it says.
Poor planning has created a supply
glut that will take many years to resolve.
The economic downturn is only part financing, the next 12-18 months will and Q109, as well as growing resistance
of the problem. When Dubai had a provide excellent opportunities to by sellers to lowering their prices.
shortage of office space, and saw ever- acquire inexpensive office space. Of The Q209 average price declines
escalating rents and prices, developers course, this will depend on the financial affecting Abu Dhabi’s main freehold
churned out commercial development situation of individual companies. master developments have been
plans without considering aggregate Leasing rates are likely to keep relatively homogenous at approximately
trends. falling. As vacancy rates increase and 10-12 per cent. The one exception is
Dubai office prices are likely to absorption rates decline, landlords will Hydra Village, whose prices fell only 7
decline further, as additional supply be forced to implement competitive per cent, on average. Generally, these
enters the market. Given the prevailing pricing strategies. Owners should declines are due to the withdrawal of
market uncertainty and continuing be offering creative incentives, like high-priced properties from the market
credit scarcity, demand is currently compensation for moving costs. The by sellers unwilling to lower prices. The
minimal and likely to remain low. short- to medium-term will be an departure of many high-priced units
The main source of sales demand will excellent time for companies to consider brought down the overall listing price
come from companies with long-term upgrading office space. Currently, average.

BANKING AND BUSINESS REVIEW October 2009 31

 The report notes that the better
than average Q209 price performance
for Hydra Village is a result of the
exceptional 35 per cent decrease already
seen in Q109, which left less room for
depreciation in Q209. As such, Hydra
Village is approaching a natural price
floor, because further price-cuts would
result in secondary market losses for
the seller.
Generally, this floor price is
a function of payment plans and
will vary between and within
developments, depending on the
pricing and collection strategies set by
each developer. Even after such large
discounts, Hydra Village is still failing
to attract secondary market buyers,
mainly due to construction delays and
consequent failure to meet delivery
dates.
According to the analysts, end-
users remain the predominant buyers
of freehold property in Abu Dhabi,
focused almost exclusively on nearly
completed properties. Investors,
however, continue to wait for signs
that the market has bottomed-out. In
so doing, investors are avoiding the
risk associated with uncertainty over
future rental yields and sale prices of
units in upcoming developments.
32 BANKING AND BUSINESS REVIEW
Sale transactions have been
increasing, as has the number of serious
buyers in the market. As mentioned
above, transactions are centered on
nearly completed developments, like
Al Reef Villas and Marina Square,
but only where prices are close to the
primary market prices.
Other nearly completed
developments, like Sun and Sky Towers
(expected delivery: Q2/Q310), still
maintain secondary market premiums
over primary market prices, but
register only minimal transactions.
Average prices for Sun, Sky, and Tala
Towers now have a 20-40per cent
premium over primary market prices;
even the low end of listings keep
premiums between 15 per cent and 30
per cent. In the case of Al Reem Island,
buyers prefer Marina Square for its
lower prices.
Developments on Al Raha Beach
have generally received less attention
from serious buyers, mainly due
to higher prices. One exception is
the Al Bandar district, whose close
completion date (Q1/Q2 2010) has made
it the focal point of buyer interest on
Al Raha beach. However, Al Bandar’s
high prices relative to other options
in Abu Dhabi’s leasehold market have
October 2009
deterred high sales volumes. Average
secondary market listing prices for
Al Raha Beach are still 10-20 per cent
above primary market prices. However,
isolating the bottom end of price listings
(distressed/motivated sales), shows that
Raha Beach developments can reach up
to 5-10 per cent below primary market
prices, the report points out.
After the price declines seen during
Q408 and Q109, the few transactions
actually taking place are now very close
to distress price levels. Price spreads
between the lowest listing prices and
transactions are now only 5-10 per
cent. According to Landmark, In Abu
Dhabi, there appears to be an average
price ceiling of Dh1,300 per square
foot for off-plan properties. Only a few
transactions on select projects, like Sun
and Sky Towers or Al Bandar, have sold
above that ceiling. As first observed in
Q109, many active sellers continue to
resist additional discounts after recent
corrections brought many properties
close to their primary market prices.
Although prices may still decrease
marginally, there are clear signs that
a price floor is emerging and that
transaction volumes now depend on
the ability to acquire financing. General
market confidence is also a key factor.
Developers have
‘learnt their lessons’
Follow examples of survivors in other markets to build
differentiated capabilities
G
lobal strategic consulting
firm AT Kearney believes that
the awaited consolidation
wave in the real estate industry in the
UAE and GCC has started and that
the developers demonstrate they are
mindful of lessons learnt from past real
estate cycles in other markets.
Companies that survived in these
markets have built strong differentiated
capabilities and diversified across
the value chain to stabilize sources of
revenues. In similar markets such as
Singapore and Hong-Kong, which were
hit strongly by real estate cycle bursts
in past decades, only two to three major
developers survived and reinforced
themselves.
Most regional markets have been
confronted with strong oversupply
– which peaked last year at over 100
per cent in the high-end residential
and commercial segments in some
GCC countries. “With most property
developers being cash-strapped,
with banks restricting lending and
homebuyers defaulting on payments,
the primary aim of consolidation is to
BANKING AND BUSINESS REVIEW
pool resources to enable firms survive
the downturn”, says Dirk Buchta,
Partner and Managing Director, AT
Kearney Middle East.
Announced merger plans for Emaar
and Dubai Holding; within Dubai
Holding for Dubai Properties, Sama
Dubai, Bawadi, Remraam and the
Tiger Woods golf course; Barwa and
Qatar Real Estate Investment Co; and
consolidation of land from distressed
developers into companies like Dubai
Real Estate Corporation come as no
surprise to Dirk Buchta.
October 2009 33
 However, planning for a merger is
paramount to its success. He points
out that almost 70 per cent of mergers
fail, often due to such basics as lack
of preparation, communication,
unclear strategies or poor execution.
For example, in Spain recently, poor
timing and planning of a merger
between two major developers failed,
resulting in bankruptcy for the new
company within six months of the
merger. Of those companies that do
merge successfully only 29 perdcent
achieve increased profitability. If
developers are to merge, they need
to ensure their company is on sound
ground and research their prospective
partner carefully before deciding this
is the best solution.
“The main objective for a merger
should not be size, which makes little
sense in a quality-driven business like
real estate development. The merged
entities will have reinforced position
on different parts of the value chain,
but risks will also increase. This can
be linked to a stronger focus on a
risky market like Dubai, in addition to
liquidity issues or “doubling” activities
which will have to be rationalized.
34 BANKING AND BUSINESS REVIEW
Most regional markets have been confronted with
strong oversupply – which peaked last year at
over 100 per cent in the high-end residential and
commercial segments
It is therefore the perfect time to merging of complementary companies.
review the corporate strategy of the The reasons to merge two similar
new entities, enlightened by the new companies are often to achieve
market conditions and the analysis synergies and operational excellence
of the growth path of most successful or to balance risks and diversify. While
real estate developers worldwide such mergers focusing on achievement of
as Hines in the US, Hochtief and operational excellence have not been
Nexity in Europe, or Capitaland in common in the region, mergers focusing
Asia. The time of endless growth for on balancing of risks and portfolio of
opportunistic projects driven solely assets are especially pertinent for master
by land and cash availability is over. developers with Dubai interests, who
Developers will compete for buyers, are driven by project and investment
and they need to define a convincing portfolio rationalization.
strategy why buyers should buy from The other option for companies is
them and not from the other developer.” to use diversification along the value
says Olivier Laroche, senior manager chain. Mergers between complementary
with AT Kearney Middle East. players aiming to integrate the chain
Mergers in the real estate sector both up and downstream have occurred
typically fall into two categories; in the region. Most successful large
merging of similar companies, or western developers including Hochtief
and Bouygues Group, have in the past
October 2009
followed this diversification path
through mergers, joint ventures and
organic growth. Emaar has started
following this path with the acquisition
of Singapore-based Raffles for its
education business and joint ventures
in the construction, brokerage and
facilities management segments for
instance.
The success of the merger lies in
key restructuring actions in terms of
project portfolio and customer base.
Deyaar has shown a lot of maturity
in this field compared to the lack
of transparency in the region. A
detailed strategy is paramount for the
development of the core business of a
new entity as well as a specialization
strategy on development segments like
low-cost housing, hospitality or retail,
where specialized players dominate
the market. Careful geographic
diversification, first at a regional rather
than on an international level, coupled
with a balanced portfolio of activities
and assets – both physical and
financial - will be pillars for success, in
line with regional markets’ evolution
and competitive landscape changes.
Successful mergers can give leading
Middle East players the critical
mass and a competitive edge on the
international scene, based on the
regional market long-term potential
and easier access to liquidity than most
competitors worldwide. “Defining
a rigorous growth strategy for the
merged entity will be key to ensure
shareholder and customer buy-in, but
this needs to happen before the merger
is actually announced,” Buchta feels.
AT Kearney also sees definite
opportunities for GCC based and
managed Real Estate Investment
Trusts (REITs) and similar types of
investment funds to attract billions
in foreign direct investment into the
region’s real estate markets.
  
REITs are structured and regulated
investment portfolios made of various
real estate assets from a range of asset
classes and are privately or publicly
owned. Their main purpose is to give
individual investors access to real
estate portfolio investments without
Mergers in the real estate sector typically
fall into two categories; merging of similar
companies, or merging of complementary
companies
personally owning assets and to allow
for asset owners to access a broader and
more liquid investor base.
“REITs are a great way to bring
liquidity to the market which is
particularly needed in a depressed
market with distressed investors,
a situation the local real estate
market faces at present. REITs offer
transparency and confidence to the
international market, making them
attractive to international institutional
investors as they can diversify their
investment and risk.” Dirk Buchta
points out.
There are other vehicles available
but public REITs are traded on stock
markets with available transparent
regulations, making them more
trustworthy and more liquid than
other forms of real estate investment.
Over 20 markets worldwide have REIT
regulation, including Dubai since 2006,
which has helped fueling growth with a
global REIT market cap of over $700
billion in 2009.
  AT Kearney’s findings show
that, historically, diversified REITs
have generated the highest margins
when compared to other segments.  international investment in real estate,
REITs are typically a medium risk
investment, delivering 6 to 8 per cent
returns on average. Their minimal
correlation on the long-term with other
asset classes makes them an attractive
investment. However, when the REIT
bubble in the United States burst with
a dramatic correction of prices of
around 65 per cent compared to their
peak in 2007 (according to CBRE
research), the confidence in the tool
was significantly affected. But REIT
managers and investors have learned
their lessons and are now returning
back to fundamentals, focusing on
management of existing assets rather
BANKING AND BUSINESS REVIEW
than more risky activities, including
new developments.
 
“An active and transparent UAE
REIT market would benefit the local
economy now as it provides a fresh new
source of investors and capital. The
valuation of real estate assets globally
and specifically in Dubai are attractive,
making today a very interesting time
to raise funds and consolidate assets
under one vehicle,” says Olivier Laroche.
“Owners will also have an opportunity
to divest distressed assets to reduce their
risk exposure, diversify their incomes
and get alternative revenue streams.
Several funds are already focused on
UAE and GCC to invest in income
generating real estate assets. With time,
more cash will become available across
the globe, especially with long term
institutional investor” added Matthieu
de Clercq, senior manager Real Estate
AT Kearney Middle East.
The most important factor according
to AT Kearney is the fact that the local
stock markets in the GCC need to
differentiate and diversify, as well as
generate new opportunities to attract
other than the risky developers’ stocks
picking. REIT and other investment
vehicles will provide the GCC with
new products, new investors, new
capabilities and overall with a new
segment strengthening it’s positioning
as a financial hub globally.
“The fundamentals of the business
today lie more in managing and
optimizing revenues generated by
existing assets and activities than by
planning new developments. Structured
REIT and real estate portfolios will force
asset managers to develop long term and
sustainable tenant management and care
practices,” concluded de Clercq.
October 2009 35
 FORE X
Too early to rejoice
Proper risk management of utmost importance, says broker
By Ambily Vijaykumar
T
he equities markets have
seen a rally lately, but it has
largely been because of the
markets putting ‘higher
expectations’, says Yaser Rawashdeh,
senior sales trader at Saxo Bank, UAE.
GDP figures contributing to the rally
have been achieved mostly due to gov-
ernment spending and ‘it is too early to
rejoice’ he says.
Saxo Bank, the online broker, which
set up office in Dubai a few months
back, says that the need of the hour is
proper risk management for traders to
ward off monetary shocks in view of the
unpredictability in the markets. In an
interview with Banking and Business
Review, Yaser Rawashdeh shares the
changing rules of trading in the mar-
kets and the future of the US dollar.
What has been the impact of the eco-
nomic crisis on Forex trading?
Back in September-October last year
prices were moving in big ranges and
people were moving away from risk
currencies like the Aussie dollar, the
Kiwi, the Sterling and also the Euro.
That strengthened the Yen and the
Dollar. Now volatilities are falling
down and with some good months in
the equity market, it has had a good ef-
fect on the currency markets. This has
meant that risk currencies that were hit
are picking up again.
Would it be appropriate to say that
the crisis has changed the rules of the
36 BANKING AND BUSINESS REVIEW
Yaser Rawashdeh,
senior sales trader at Saxo Bank, UAE
game?
They have changed the rules in the
sense that in the past, the ranges were
clearer with a respect for technical
analysis. Now there are more unpre-
dictable moves. Since the collapse of
Lehman Brothers, levels that were
considered usually strong were easily
broken and unchartered territory was
easily entered. The crisis has shown FX
traders how bad things can get. It has
had a good impact in terms of educat-
ing traders for the need of risk manage-
ment.
But won’t risk management take away
a trader’s ability to make more prof-
its?
No. You would then have a clear strat-
egy to exit should things go the wrong
October 2009
way. When you have a position, you
would have a stop or two to decide that
if the level is breached, then you would
get out or else your losses will cumulate
and you would be forced to close at a
level where you bear a lot of losses. By
having risk management in place, you
have the opportunity to try something
new should something go wrong. The
need also arises out of the fact that the
market’s faith in big institutions has
taken a beating.
Tell us about the impact it has had on
the US dollar to which the dirham is
pegged?
When the crisis struck last year, the US
dollar strengthened on the basis that
it was a safe haven. Other currencies
that were dependent on exports like the
Aussie dollar or the Canadian took a
beating; even gold profited to a certain
extent. But now the markets are turn-
ing around and we are going back to the
old ways. Interest rates on the dollar as
well as treasuries are low and traders
are looking for more returns on their
investments. So they are now looking
again at currencies like the Aussie dollar
that have had a nice bounce in the last
three or four months. But now and then
when the indices are going down, we
are seeing some positive effects on the
dollar and the yen and negative effects
on risk currencies and emerging market
currencies. It is difficult to tell how long
this will last since it is dependent on
how long investors have faith in the US
dollar also considering the quantitative
easing going on in the US economy. The
long term effects of the easing could be
negative on the dollar.
So is dollar still a safe bet?
The dollar has been strengthened as a
safe bet. Of course there are a lot of is-
sues in the US in terms of unemploy-
ment that is high, net foreign debt and
that is an issue one has to look into. If a
country’s net foreign debt is high and
that continues to be the case, then the
theoretical answer is the devaluation of
the currency. But presently the dollar is
a safe bet. That could be attributed to
the fact that there isn’t enough faith in
other currencies.
Do you attach much importance to
emergence of Asian currencies as sub-
stitutes to the dollar?
Eventually you could see the Renmin-
bi etc becoming a safe haven, but that
won’t be immediate. These are econo-
mies that are fiscally and monetarily
responsible. But historically, the dollar
has been a safe haven and the main cur-
rency and it would continue to be so.
However, one needs to keep an eye on
it with the quantitative easing going on,
because the long term effects could be
low growth, high taxes, and high infla-
tion. In terms of the dollar’s position,
a clear picture would emerge only in
the next couple of years. Because other
countries that have big reserves of the
dollar would also not want the currency
to lose favour.
What’s the trend emerging from the
commodities market?
It has been affected largely by the re-
turn of the risk appetite into the mar-
ket. Oil is around $72-73 a barrel. But
we think that it has been over bought.
In terms of supply-demand, supply is
at higher levels at the moment by some
15 per cent on cyclical levels. We also
believe that many governments might
have been filling their inventories when
oil was cheap and inventory capacities
are also reaching levels where it is going
to be more expensive to stock it, which
will result in a drop in oil prices. If you
look at the fundamentals, it is very dif-
ficult to justify high oil prices. But we
are seeing a rally in oil, but by the end
of the year, maybe the prices will settle
around $55-60 a barrel.
China is getting conservative with
imports and their stimulus package
is going to take some time to show ef-
fect. If you look at the US, most of the
growth of around minus one percent
has come from government spending.
The consumer wasn’t doing much. The
market has been reacting as if there is
going to be 4 per cent GDP growth in
the next six months. But where is that
growth going to come from is the ques-
tion.
Which are the hot cakes in the com-
modities market at the moment?
Sugar, for one, is benefiting from floods
and droughts that have affected the
crop. In terms of gold it has been vola-
tile, but the concern is that they have
long positions in the market and any
kind of rise will see selling. We are also
looking at high inflation so gold could
be a good investment.
What about equity trading?
We have reached levels that are unjus-
tified since markets are putting higher
expectations. At the end of the day, the
many GDP figures that we are seeing
in Germany, France, Japan and the US,
if anything good has come out of it is
because of the stimulus plans and they
can last only for some time and these
plans are doing one sector good and
hitting the other sectors. By encourag-
ing people to buy new cars, the second
hand sales as well as spare part busi-
BANKING AND BUSINESS REVIEW
nesses are being hit. What we are also
seeing is that consumers in the US are
beginning to deleverage, which means
that they are repaying their debts and
that will result in a cut back on spend-
ing on consumer products. So that is
the reason why we think that any rallies
that we are seeing is unjustified.
What is the thumb rule now for people
willing to trade equities?
Choosing the sector is essential. What
we are looking at is defensive sectors
to be long them. As for cyclical sec-
tors, they have gone too fast up and the
banking sector has had a nice recovery,
but certain commercial, retail and con-
sumer loans may not have been priced
in. We are bullish on the defensives and
neutral on the banking sector and not
that happy on the discretionary sector.
When do you see a recovery in the mar-
kets?
The recovery could take some time; the
days of the Lehman Brothers are gone.
We believe that markets are stabiliz-
ing and we have a business cycle that
shows that the contraction in world
economies has bottomed but it is very
depressed. We believe that the market is
negative, but overall we are not bearish.
We need to look at the housing market
that needs to stabilize. Unemployment
would continue to rise. I do see con-
sumer spending and confidence getting
to levels that are acceptable. I also see
that it could take some 18 months to see
these changes. But we do believe that
the worst is over.
October 2009 37
 FINANCE
Remittance industry
hit by recession
Saudi Arabia remains home to region’s biggest remittance business
S
audi Arabia leads the region’s
remittance industry, with the
GCC remaining one of the top
five players in the global remit-
tance industry, according to Money
Transfer International. The global re-
mittance industry was worth $550 bil-
lion in 2008.
According to a World Bank report,
the total remittances sent from Saudi
Arabia is estimated to have exceeded
$20 billion in 2008, ranking it as the
second largest country in the world
38 BANKING AND BUSINESS REVIEW
(and first in GCC) in terms of remit-
tance outflows. The US, which has
been the top immigration country, is
also by far the largest source of out-
flows, with more than $47 billion in
recorded remittance transfers in 2008
while Switzerland came third at $19
billion. While no data is available from
World Bank, industry experts estimate
the UAE remittance market at around
$10 billion in 2008 while Kuwait and
Qatar markets are estimated at $5 bil-
lion each.
October 2009
In most countries, migrants do not
constitute the majority of the total pop-
ulation. However, high dependence on
oil resources and relatively small popu-
lation size have led the GCC countries
to rely massively on foreign workers and
as a result expatriates population con-
stitute on average more than 50 per cent
of the total population with the highest
being UAE and Qatar (around 80 per
cent) and the lowest is Saudi Arabia (26
per cent). The strong presence of large
migrant population makes the GCC

countries among the largest remitting
countries both in terms of total value
and in terms of percentage of GDP.
The Middle East has become the
fastest growing region for money trans-
fer and remittance industry. The remit-
tances have been growing at an annual
pace of more than 15 per cent in the re-
gion compared to a global growth rate
of eight percent in 2008. The sustained
high growth in Middle East has been
driven by many factors: the tendency
of low-skilled foreign workers to leave
their spouses and other family mem-
bers in their home-countries to avoid
high-living costs in GCC countries and
the cumbersome and expensive fam-
ily visa process, which discourages mi-
grant workers to settle down with their
families.
Citizenship and naturalization are
virtually nonexistent in GCC coun-
tries, impeding foreign workers’ settle-
ment on a more permanent basis like
their European or US counterparts.
Hence, the ties between migrants and
their countries of origin do not decay
overtime, and the trend in workers’ re-
mittances remains sustained, reports
point out.
Although the growth had been sig-
nificant in the past few years, the last
two years have witnessed essential
changes in the remittance industry in
the GCC countries. Increasing infla-
tion in the Gulf States has had an enor-
mous impact on the remittances of ex-
patriate workers and this situation has
influenced all the countries that export
labor to the region, especially India,
Pakistan, Bangladesh, Indonesia and
the Philippines.
While remittance per person has
come down due to increasing inflation,
Middle East has become the fastest
growing region for money transfer and
remittance industry, growing at an annual
rate of more than 15 per cent compared to
a global average of eight per cent in 2008
as a whole remittances have increased ing to overall slowdown in expansion
as more people sought employment in activities, layoffs from private and pub-
these countries. Nonetheless, the rate lic sector companies due to weak out-
of increase of remittances from Gulf look. The overall sentiment has turned
countries is slowing but is still positive. pessimistic resulting in job losses, the
Pakistan and Bangladesh for instance expatriates currently working have ei-
have witnessed accelerated growth of ther witnessed a salary cut or a job cut
remittances in 2009. This is in part due resulting in lower remittances as com-
to the fact that the GCC countries, a pared to earlier.
major destination for Asian migrants, As per the latest forecast made by the
have not significantly reduced hiring World Bank the remittances flow to de-
migrants. Besides that, other reason for veloping countries are expected to drop
growth in remittances to these coun- by 7-10 per cent globally from $328 bil-
tries was due to falling asset prices, lion in 2008. The World Bank forecasts
rising interest rates differentials and a decline of around 9 per cent in remit-
a depreciation of the local currency of tances from GCC due to decline in eco-
these countries against GCC curren- nomic activity and higher cost of living
cies, which are pegged to the dollar in these countries.
(except Kuwait) attracted investments However, there are emerging signs
from migrants. of a bottoming out and the economies
While the impact of the global fi- reviving. According to the revised pro-
nancial crisis on the GCC countries jections by the World Bank, global eco-
has definitely not been as severe as in nomic growth is expected to rebound to
the west, recent news events and deeper 2 per cent in 2010 and 3.2 per cent by
analysis into the numbers of the banks 2011 after a contraction of 2.9 per cent
indicates they have not come out com- expected for 2009. With oil prices ris-
pletely unscathed. Credit shrinkage, de- ing and the investor confidence reviv-
ferment of projects, significant number ing there are strong sign of the GCC
of layoffs across the board and a sig- economies on the path of recovery. Glo-
nificant number of expatriates leaving bal Investment House anticipates all
the country made headlines for the six this would impact the remittances from
month period between October-08 and the GCC positively and expects the year
March-09. This in turn is likely to im- 2010 shall witness a positive growth rate
pact the remittances from these coun- due to a lower base and faster economic
tries significantly in 2009. growth as projected by World Bank.
As per the World Bank forecast,
the remittances outflow will slowdown
from GCC due to fall in oil prices lead- (From a report of Global Investment House)
BANKING AND BUSINESS REVIEW October 2009 39
 OPINION
A major economic
policy reform
By Nasser Saidi
T
he amendment and reform
of the UAE Company law is
a major economic policy re-
form measure that will lower
the cost of doing business, provide in-
centives for new company formation
and registration –particularly for the
SME sector- and improve the overall
investment climate.
H.H. Shaikh Khalifa Bin Zayed Al
Nahyan, President of the UAE, issued
a decree on 10 August 2009 amending
Federal Law No 8 of 1984, the com-
pany law. The amendment removes
the minimum capital requirement of
Dh150, 000 for the establishment of a
limited liability company (LLC) in the
UAE and is retroactive to companies
established on or after June 1, 2009 and
allows new businesses to determine the
capital required for the establishment
and sustainability of their companies.
This is an important piece of leg-
islation which provides incentives for
SMEs and company formation and ef-
fectively lowers the cost of doing busi-
ness. The result, over time, should be
to encourage new business formation,
spur entrepreneurship, increase do-
mestic investment and promote foreign
40 BANKING AND BUSINESS REVIEW
UAE Company Law changes to
lower cost of doing business
investment. However, in a more open
and competitive global environment,
where capital and entrepreneurs are
mobile, we also need to measure how
we stack up vis-à-vis other countries in
terms of the incentives and costs of do-
ing business.
The World Bank (WB) publishes
an annual report comparing business
regulations in 181 countries the latest
was released on 08.09.09 (Doing Busi-
ness 2010). The report ranks countries
according to a number of criteria and
indicators associated with the cost of
doing business, including fees, charg-
es, time, number of procedures and
related:
Starting a Business
• Dealing with Construction Permits
• Employing Workers-Registering
Property
• Getting Credit
• Protecting Investors
• Paying Taxes
• Trading Across Borders
• Enforcing Contracts
• Closing a Business
The amendment to the UAE com-
pany law addresses one aspect of the
October 2009
overall costs of doing business as rep-
resented by the costs of Starting a Busi-
ness. In the past 5 years, 115 econo-
mies around the world have simplified
business startup through 193 reforms.
Many opted for low-cost administrative
reforms requiring little or no change in
regulation. Others went further, intro-
ducing or amending legislation. Abol-
ishing minimum capital requirement,
as the UAE has done, is considered
by the WB as one of the top 5 reform
features in the costs of starting a busi-
ness. This is reflected in the new report
which ranks the UAE among the top 10
reformers in 2008-09. Some sixty-nine
economies allow entrepreneurs to start
a company without putting up a fixed
amount of capital before registration.
They allow entrepreneurs to determine
what is appropriate for the business
based on its type, the nature and risk of
the activity and capital structure.
The countries implementing such
reforms have seen some of the biggest
spikes in new company registrations.
For example after Madagascar reduced
its minimum capital requirement by
more than 80% in 2006, the rate of new
registrations jumped from 13% to 26%.
 registration. They allow entrepreneurs to determine what is appropriate for the business
based on its type, the nature and risk of the activity and capital structure.
The countries
Similarly, after Tunisiaimplementing
reduced its re- suchIn reforms havebusiness
the WB doing seen some 2010 re-of thetobiggest
33 in 2010spikes
from 47ininnew
last year’s re-
company
quirements,
registration. registrations.
new company
They allow For
registra- example
entrepreneurs after
port the UAEto Madagascar
is in the top 10what
determine reduced
reformers,
is its minimum
port. The for
appropriate capital
changes
the have been made in
business
registration. They allow entrepreneurs to determine what is appropriate for the business
tionsbased
increased by
requirement 30% betweenthan
by more 200280%an important
inrisk
2006, achievement.
the rate of new The overall
registrationsbroadlyjumped
three categories:
from 13% to
based on
and 26%.
2006. on its
its type,
type, the
the nature
nature and
and of
of the
theofactivity
riskranking
global activity and
UAE hasand
capital
capital structure.
improved structure.
The Similarly, after Tunisiasuch reduced its requirements, newofcompany registrations
The countries implementing such reforms have seen some of the biggest spikes in
countries implementing reforms have seen some the biggest spikes in new
new
increased registrations.
company by 30% between 2002 and 2006.Madagascar reduced its minimum capital
company registrations. For For example
example after after Madagascar reduced its minimum capital
In the WB doing
requirement business 2010 report the UAE is innew
the top 10 reformers, an important
requirement by by more
more than
than 80%
80% in in 2006,
2006, thethe rate
rate ofof new registrations
registrations jumpedjumped from from 13%13% to to
achievement.
26%. The overall global ranking of UAE has improved to 33 in 2010 from 47 in
26%. Similarly,
Similarly, after
after Tunisia
Tunisia reduced
reduced its its requirements,
requirements, new new company
company registrations
registrations
last year’sby
increased report. The changes have been made in broadly three categories:
increased
Starting by 30%
a Business: 30%
The
between
between
UAE’s
2002
rankUAE’s2002 and
improved and 2006.
from 2006.
118 to 44 as afrom
result of scrapping
Starting
In a Business: The rank improved 118 to 44the as minimum
a result capital requirement and
of scrapping
In the
the WB
a reduction
doing
in number
WB doing business
of days
2010
2010 report
and procedures
business report thethe UAE
UAE isis in in the
the top
top 1010 reformers,
reformers, an an important
important
the minimum The
achievement. capital requirement and a reduction in number of days and2010
procedures47 in
achievement. The overall overall global
global ranking
ranking of of UAE
UAE has has improved
improved to to 33
33 inin 2010 fromfrom 47 in
last
Economy year’s report. The changes
Starting
a
Business have been made in broadly
last year’s report. The changes have been made in broadly three categories: three categories:
Starting aa Business:
StartingYear The
The UAE’s
Rank Procedures

Business: UAE’s rank improved
Time

rank improved from
from 118
118 to
Cost
(%
of
income
per
 to 44
44 as aa result
result ofof scrapping
asMin.
capital
(%
of
income
per

scrapping
the minimum capital requirement
(number) and a
(days) reduction
capita) in number
the minimum capital requirement and a reduction in number of days and procedures of days and
capita) procedures
Economy
UAE Starting
a
Business
Economy 2009 118 9
Starting
a
Business 18 8.2 311.9
UAE Year
2010 Rank
44 Procedures

8 Time

15 Cost
(%
of
income
per

6.2 Min.
capital
(%
of
income
per

0
Year Rank Procedures
 Time
 Cost
(%
of
income
per
 Min.
capital
(%
of
income
per


 (number) (days) capita) capita)
(number) (days) capita) capita)
Dealing
UAE
UAE with
2009 Construction
118
2009 118 9
9 Permits:
18
18The cost has
8.2
8.2 been reduced to half,
311.9 and reductions in
311.9
procedures
UAE
UAE
2010and
44 time
2010 44 8
8 as well; this improved
15
15 the
6.2 UAE’s ranking from
6.2
0 54 to 27.
0
Economy



 Dealing
with
Construction
Permits
Dealing with Construction Permits: The cost has been reduced to half, and reductions in procedures and time
Dealing
as well;
with
YearConstruction
this improved
Dealing with Rank
the
Construction Permits:
ranking
The
UAE’sProcedures
(number)
from 54 to
Permits: The cost has been
been reduced
Time
(days)
27. cost has
to
to half,
half, and
and reductions
reductions in
Cost
(%
of
income
per
capita)
reduced in
procedures
procedures and
and time
time as
as well;
well; this
this improved
improved the
the UAE’s
UAE’s ranking
ranking from
from 54
54 to
to 27.
27.
UAE
Economy 2009 54 21 97
Dealing
with
Construction
Permits 63.9
Economy Dealing
with
Construction
Permits
UAE 2010 27 17 64 30.7
Year Rank Procedures
(number) Time
(days) Cost
(%
of
income
per
capita)
Year Rank Procedures
(number) Time
(days) Cost
(%
of
income
per
capita)
UAE 2009 54 21 97 63.9
UAE 2009 54 21 97 63.9
UAE 2010 27 17 64 30.7
UAE 2010 27 17 64 30.7
Trading Across Borders: Decrease in number of documents and time for export,
combined with a reduction in cost to import and export by container; the UAE’s ranking
improved to 5 from 13 previously.

Trading
Trading Across
Economy Borders:
Borders: Decrease
Decrease in
Trading
Across
Borders
Across in number
number of of documents
documents and and time
time for
for export,
export,
Trading Across Borders:
combined with a Decrease in number
reduction in of documents
cost to import and time
and for export,
export by combined with
container; a reduction
the UAE’s in cost to import
ranking
Year
combined Rank Documents
to

with athe reduction Time
to

in cost Cost
to
export

to import and Documents
to
 Time
to

export by container; the UAE’s Cost
to
import

ranking
andimproved
export by container; UAE’s ranking improved to 5 from 13 previously.
improved to to 55 from
from 13
13 previously
export
 previously .

export

.
 (US$
per
 import
 import
 (US$
per

Economy (number)
Trading
Across
Borders(days) container) (number) (days) container)
Economy Trading
Across
Borders
UAE 2009
Year 13
Rank 5
Documents
to
 9 Time
to
 618
Cost
to
export
 7
Documents
to
 9Time
to
 587
Cost
to
import

Year Rank Documents
to
 Time
to
 Cost
to
export
 Documents
to
 Time
to
 Cost
to
import

UAE 2010 5 export

4export
 export

8export
 (US$
per

593 import

5 import

9 (US$
per

(US$
per
 import
 import
 579
(US$
per

(number) (days) container) (number) (days) container)

 (number) (days) container) (number) (days) container)
UAEThrough
2009the
13 company
5 reform act
9 and other
618 measures, the
7 UAE has improved
9 its
587
UAE 2009 13 5 9 618 7 9 587
UAErankings.
2010However,
5 4 the UAE should
8 aim at
593 additional 5reforms with the
9 overall 579
objective
UAE 2010 5 4 8 593 5 9 579
of

 improving the ease of doing business; of making the UAE even more business


friendly. the company reform act and other measures, the UAE has improved its
Through
Through the company reform act and other measures, the UAE has improved its
We have run three simulation
rankings. scenarios of the effect of additional reform measures on the
rankings. However,
However, the the UAE
UAE should
should aim aim at at additional
additional reforms
reforms with
with the
the overall
overall objective
objective
Through the company reform act and other measures, the UAE has improved
UAE’s
The countries
of ranking
of improving
improving thein the WB
implementing
the ease
ease of
league tables on
of doing
doingitsbusiness;
business; of
of
the Ease the
making
making
of Doing
the UAE
UAE
Business.
even
even more
more business
business
rankings. However, the UAE should aim at additional reforms with the overall
friendly.
such reforms
friendly.
We have seen some scenarios
objective of improving the ease of doing business; of making the UAE even more
We have
have run
run three
three simulation
simulation business
scenarios of
of the
friendly.the effect
effect of
of additional
additional reform
reform measures
measures on on the
the
of theUAE’s
biggest spikes
ranking in in
the new
WB league tables
We have on
run the
three Ease of
UAE’s ranking in the WB league tables on the Ease of Doing Business. Doing
simulation Business.
scenarios of the effect of additional reform meas-
company registrations ures on the UAE’s ranking in the WB league tables on the Ease of Doing Business.

BANKING AND BUSINESS REVIEW October 2009 41

 Policy
PolicyReform Simulation
Reform 1: Reducing
Simulation Time Time
1: Reducing & Procedures of Starting
& Procedures a Business
of Starting a Business
Ease of Doing Starting a Business
Policy Reform Simulation 1: Reducing Time & Procedures of Starting a Business
Business
Economy RANK Percentile
Ease of Doing Procedures Time
Starting a Business Cost (% of Min. capital (% of Ease of starting a Ease of
Business (number) (days) income per income per business (percentile) starting
capita) capita) RANK
Economy RANK Percentile Procedures Time Cost (% of Min. capital (% of Ease of starting a Ease of
Singapore 1 0.07 4 4 0.71 0.0 0.12 3
(number) (days) income per income per business (percentile) starting
New Zealand 2 0.08 1 1 0.39
capita) - capita) 0.00 1 RANK
United States
Singapore 31 0.12
0.07 64 64 0.71
0.71 - 0.0 0.06
0.12 23
Hong
NewKong,
Zealand 4 2 0.13
0.08 51 111 1.98
0.39 0.0
- 0.19
0.00 41
China
United States 3 0.12 6 6 0.71 - 0.06 2
Denmark
Hong Kong, 5 4 0.16
0.13 45 6 11 - 1.98 40.1
0.0 0.21
0.19 54
UAE (2009)
China 47 0.41 9 18 8.20 311.9 0.53 118
UAE (2010)
Denmark 335 0.16 84 156 6.20
- - 40.1 0.21 445
UAE (2009) 47 0.41 9 18 8.20 311.9 0.53 118
UAE 29 2 3 0.53 - 2
UAE (2010)
(Additional 33 8 15 6.20 - 44
reforms)
UAE 29 2 3 0.53 - 2
(Additional
Thereforms)
first policy reform simulation Starting a Business would improve to 2 and an important category for the UAE, given
was to reduce the time and procedures of the overall rank in Ease of Doing Business its large real estate sector. Reducing the
Starting a Business to the average of the would move up to 29 from the current 33. number of procedures (from 17 to 10),
top three countries for this sub-category Another quick win is reforming dealing time and cost to the average levels of the
(NewThe firstCanada
Zealand, policy andreform simulation
Australia). As was to with
with licenses, reduce the timepermits.
construction and procedures
top-ranked of Starting
in this a raises the
sub-category
Business
a result, the rank to
of the
UAEaverage ofofthe “Dealing
under Ease top three countries
with for this
Construction sub-category
Permits” is ranking (New
of UAE toZealand,
30.
The first
Canada andpolicy reformAs
Australia). simulation wasrank
a result, the to reduce
of UAE theunder
time and
Easeprocedures

of Starting ofa Starting
Businessa
Business
would to thetoaverage
improve of the
2 and the top three
overall countries
rank in Ease offor this Business
Doing sub-category
would(New
moveZealand,
up to 29
Canada and Australia).
from the current 33. As a result, the rank of UAE under Ease of Starting a Business
would improve
Another quick win to is
2 and the overall
reforming rankwith
dealing in Ease of Doing
licenses, with Business would
construction move up to 29
permits.
from the current 33.
“Dealing with Construction Permits” is an important category for the UAE, given its
Another
large real quick
estate win is reforming
sector. Reducing dealing withof
the number licenses, with(from
procedures construction permits.
17 to 10), time and cost
to the average levels of the top-ranked in this sub-category raises the ranking given
“Dealing with Construction Permits” is an important category for the UAE, of UAEits to
large real estate sector. Reducing the number of procedures (from 17 to 10), time and cost
30.
to the average levels of the top-ranked in this sub-category raises the ranking of UAE to
30. Policy
Reform
Simulation
2:
Dealing
with
Construction
Permits

Policy
Reform
Simulation
2:
Dealing
with
Construction
Permits
Policy ReformEase
Simulation
of Doing 2: Dealing withConstruction
Dealing with Construction Permits
Permits
Business
Economy RANK Percentile Procedures Time Cost (% of income Ease of dealing with Ease of licenses
Ease of Doing Dealing with Construction Permits
(number) (days) per capita) licenses (percentile) RANK
Business
Economy RANK Percentile Procedures Time Cost (% of income Ease of dealing with Ease of licenses
(number) (days) per capita) licenses (percentile) RANK
Singapore 1 0.07 11 38 21.22 0.07 3
New Zealand 2 0.08 7 65 25.81 0.07 3
Singapore
United States 31 0.07
0.12 1911 4038 21.22
13.11 0.07
0.23 273
New Zealand 2 0.08 7 65 25.81 0.07 3
Hong Kong, China 4 0.13 15 119 18.71 0.21 21
United
Denmark States 53 0.12
0.16 6 19 6940 13.11
60.94 0.23
0.11 8 27
Hong Kong, China 4 0.13 15 119 18.71 0.21 21
UAE (2009) 47 0.41 21 97 63.90 0.31 54
Denmark 5 0.16 6 69 60.94 0.11 8
UAE (2010) 33 17 64 30.70 27
UAE (2009) 47 0.41 21 97 63.90 0.31 54
UAE (Additional 30 10 55 15.17 1
UAE (2010)
reforms) 33 17 64 30.70 27

UAE (Additional 30 10 55 15.17 1

reforms)

42 BANKING AND BUSINESS REVIEW October 2009

 What if both sets of the above-mentioned policy reforms are undertaken? Then the
UAE’s
What ifoverall Ease
both sets of above-mentioned
of the Doing Businesspolicy
global ranking ness
reforms dramatically improves
global ranking from improves from today’s 33
dramatically
are undertaken? Then the UAE’s overall Ease of Doing Busi-
today’s 33 to 24. to 24.

Policy Reform Simulation 3: Starting a Business & Dealing with Construction Permits
Policy
Reform
Simulation
3:
Starting
a
Business
&
Dealing
with
Construction
Permits



Ease of Doing Starting a Business Dealing with Licenses

Business
Economy RANK Percentile Procedures Time Cost (% Min. Ease of Ease of Procedures Time Cost (% Ease of Ease of
(number) (days) of capital (% starting a starting (number) (days) of dealing with licenses
income of income business RANK income licenses RANK
per per (percentile) per (percentile)
capita) capita) capita)
Singapore 1 0.07 4 4 0.71 0 0.12 7 11 38 21.22 0.07 3
New 2 0.08 1 1 0.39 - 0 1 7 65 25.81 0.07 3
Zealand
United 3 0.12 6 6 0.71 - 0.06 5 19 40 13.11 0.23 27
States
Hong Kong, 4 0.13 5 11 1.98 0 0.19 8 15 119 18.71 0.21 21
China
Denmark 5 0.16 4 6 - 40.1 0.21 9 6 69 60.94 0.11 8
UAE (2009) 47 0.41 9 18 8.2 311.9 0.53 118 21 97 63.9 0.31 54
UAE (2010) 33 8 15 6.2 - 44 17 64 30.7 27
UAE 24 2 3 0.53 - 2 10 55 15.17 1
(Additional
reforms)





The amendment and reform of the UAE Company law is a major economic policy reform
The amendment and reform of the
measure that will lower the cost of doing business, provide incentives for new company
UAE Company law is a major economic
formation and registration –particularly for the SME sector- and improve the overall
policy reform measure that will lower
investment climate. The timing of the reform is also propitious as it provides
the costa needed
of doing business, provide in-
stimulus to business activity helping the country recover from the effectscentives
of the for
global
new company formation
‘Great Recession’. However, this is also the time to take additional reform
and registrationto–particularly for the
measures
stimulate new business formation, including a one stop shop and online SME sector- and improve the overall
registration
investment climate. The timing of the
procedures, dealing with construction permits, and other simplified registration
formalities. More important would be the deeper structural reforms aimingreform is also propitious as it provides
at better
a neededat
enforcement of contracts and reforming insolvency law and procedures aiming stimulus
easingto business activity
the costs of Closing a Business. We should aim at easing both entry andhelping
exit ofthe country recover from the
businesses reducing cost and minimising uncertainty. effects of the global ‘Great Recession’.
However, this is also the time to take
additional reform measures to stimu-
The writer is Chief Economist with Dubai International Financial Centre
late new business formation, including
a one stop shop and online registration
procedures, dealing with construction
permits, and other simplified registra-
tion formalities. More important would
be the deeper structural reforms aim-
ing at better enforcement of contracts
and reforming insolvency law and pro-
cedures aiming at easing the costs of
Closing a Business. We should aim at
easing both entry and exit of businesses
reducing cost and minimising uncer-
tainty.

The writer is Chief Economist with Du-

bai International Financial Centre

BANKING AND BUSINESS REVIEW October 2009 43


FROM THE GATE
G
lobal Fortune 500-listed
State Bank of India (SBI)
has started providing
the full range of banking
services from its base in the Dubai In-
ternational Financial Centre (DIFC).
SBI, which is India’s top bank, has re-
ceived a full banking licence from the
regulator, the Dubai Financial Serv-
ices Authority (DFSA), which enables
the DIFC branch to accept deposits
and provide credit, subject to the reg-
ulations of the DFSA.
Over the past year, an increasing
number of banking and financial in-
stitutions from major Asian emerging
markets like India have been estab-
lishing a presence in DIFC.
India’s number-one bank has also
obtained a retail endorsement to its
licence, which enables it to arrange
investments for retail customers and
offer credit to small and medium en-
terprises (SME).
SBI‘s DIFC branch will provide
trade finance and short-term work-
ing capital loans including Letters
of Credit (LC) and bank guarantees,
term loans, project finance and as
well as syndication of credit require-
ments at highly competitive rates. The
branch has a special desk to handle LC
44 BANKING AND BUSINESS REVIEW
200-year old bank has 12,100 offices all over
the world and more than 150 million customers
State Bank of India’s
DIFC unit launches
corporate banking
related activity.
The branch can arrange and ad-
vise on the investment products of
the State Bank Group and other fund
houses. It can also accept deposits
from non-UAE-based professional
clients and corporates in US dollars,
Euros and GBP.
According to Dr Omar Bin Su-
laiman, Governor of the DIFC and
Vice-Chairman of the UAE Central
Bank, the expansion of the SBI’s serv-
ices out of DIFC is a clear testimony
to the vast opportunities that the re-
gion’s financial services industry of-
fers banking firms.
The team at SBI - DIFC branch is
headed by Chief Executive Officer AJ
Vidyasagar, who says the bank would
provide top-class corporate banking
services to clients in keeping with
State Bank of India’s tradition of de-
livering safe, and transparent and
regulatory-compliant products.
“SBI has upgraded its operations
in the region despite the present eco-
nomic downturn, which reflects our
immense faith in the potential of the
UAE and the wider market and also in
our own ability to do profitable busi-
ness under any circumstances. The
trading and industrial community in
October 2009
the Gulf consists of many companies
with an Indian connection, which is a
base for the bank to further build its
business across the wider region,” Vi-
dyasagar said.
Supported by its group headquar-
ters based in India, SBI provides cor-
porate banking services in the region.
The bank’s Corporate Banking Group
in India has extensive experience in
handling credit requirements of large
corporates as well as infrastructure fi-
nancing. The bank is the leading lender
in India for project finance, with more
than 490 of India’s top corporates
banking with SBI.
SBI is a 200-year old financial in-
stitution, which has earned high levels
of customer trust and the respect of
its competitors by following prudent
banking practices. The bank has an
international presence in 92 locations
spread over 32 countries and contin-
ues to grow at an aggressive pace. It has
around 12,100 offices all over the world
and more than 150 million customers.
Along with its Associate Banks, SBI has
16,900 offices and 15,000 ATMs; all of
them networked. In July this year, the
bank opened 154 branches and 2151
ATMs simultaneously across the coun-
try though online activation.
 ENERGY
Beyond
oil market
downturn
Report says oil companies can gain competitive advantage by
thinking long term
R
ecessions don’t last long
when compared with the
average length of energy
investments; therefore any
forecast of the profitability of capital
investment whose output will go on
stream perhaps seven to nine years
from now must look beyond the short-
term, a new report by Booz & Company
concludes.
Following years of high oil prices,
many international oil companies
(IOCs) and national oil companies
(NOCs) have amassed piles of cash,
and are in an excellent position to take
the long-term view. NOCs controlling
reserves of cheap oil but lacking the
technology and capabilities to further
their investment efforts should consid-
46 BANKING AND BUSINESS REVIEW
er acquiring independents and weak-
ened oil service providers. “Mean-
while, independents in weak financial
positions might decide to partner with
cash-rich IOCs or NOCs,” comments
Georges Chehade, a partner at Booz &
Company.
In July 2008, oil prices per barrel
reached an all-time high of more than
$147 and analysts forecasted prices of
over $200 by December 2008. But by
December, the price of oil had dropped
almost 80 per cent, to less than $34.
Always difficult to forecast, energy
prices have reached a completely new
level of unpredictability in the last few
months.
“Energy companies whose econom-
ics depend on future oil prices must
October 2009
make investment decisions. In the long
term, the average price of oil is a lot
more stable and more predictable than
its daily spot price - this long-term av-
erage is what determines the profitabil-
ity of energy investments,” explained
Chehade. The global liquidity shortage
is leading financial markets to under-
price long-term value, presenting an
opportunity for companies with cash to
make these investments now.
The report points out that oil prices
are now seriously depressed. The effects
the downturn is causing will last longer
than the recession itself and the dura-
tion of typical economic recessions are
short when compared with upstream
oil investment standards: The mean du-
ration of all US. recessions since 1854 is
 In July 2008, oil prices per barrel reached lion barrels of proven oil reserves in the
world (including about 800 billion in
an all-time high of more than $147 and cheap reserves in the Middle East and
analysts forecasted prices of over $200 by North Africa). Yet the long-term supply
curve is a lot tighter than these figures
December 2008 suggest, because only so much oil (or
gas) per day can be pumped. “Newer,
more expensive hydrocarbon sources
17 months from peak to trough, and the term demand is almost as predictable will have an increasingly large role to
average is just 10 months for the 10 re- as short-term prices are erratic. Global play - given the forecast demand and
cessions since the end of World War II. oil and gas consumption rates have available sources, the long-term central
It takes at least seven to nine years displayed a constant upward trend for equilibrium price for the next 10 to 15
for energy exploration efforts to bear more than 30 years, and the trend is ex- years will probably be around $60 to
fruit in the form of oil or gas coming on pected to continue at roughly the same $80 a barrel,” Chehade stated.
stream. What really matters for these pace in the future. This leads to an oil There is a very high probability of
investments is the price at which future demand forecast of about 100 million another big price spike within the next
oil or gas will be sold. Energy prices barrels per day by 2020, up from today’s decade. Today, in addition to low oil
tend to revert over time to some long- 85 million or so, plus 65 million bar- prices, companies are facing a global
term mean and this more stable and rels of oil equivalent (BOE) per day of liquidity shortage. It is likely that many
predictable than the day-to-day spot natural gas, up from close to 55 million companies will reduce their explora-
price. today. To meet this demand, more than tion and production investments, even
A realistic picture of long-term pe- half of the total production by 2020 will though more investment is required to
troleum price relies on long-term pro- need to come from new investments. meet future demand; which will likely
jections of supply and demand. Long- Today there are more than 1.2 tril- prompt a massive price increase and

BANKING AND BUSINESS REVIEW October 2009 47


reward those who can keep their heads
cool enough to take the long-term
view.
Opportunity
The oil price collapse is having a cool-
ing effect on many companies’ invest-
ment plans. Recently, most oil com-
panies gradually increased the base
forecast price on which they estimated
the profitability of their investments - a
number of the projects initiated under
these assumptions are now being ques-
tioned and even abandoned.
The picture is particularly gloomy
for many upstream oil independents:
“With rapidly falling market value of
their assets and the levels of financial
leverage they took on during the recent
boom, many may be forced to down-
size, be acquired, or simply go out of
business,” said Chehade.
A few top players are taking a longer
view, particularly in their upstream
investments. Several leading IOCs
and NOCs, including Chevron, Shell,
Total, and Saudi Aramco, have stated
their intention to maintain their cur-
rent levels of upstream investment, and
some have already started to take the
offensive.
Companies with cash and the will-
ingness to invest will encounter a much
more favourable cost environment
than in recent years. First, liquidity-
starved markets tend to grossly under-
price long-term value, especially in the
case of highly leveraged independents:
Their debt is difficult to refinance in the
48 BANKING AND BUSINESS REVIEW
current market conditions, and is pull-
ing their market valuations down sub-
stantially. The sharp share price drop
in a number of upstream independents
means they can now be acquired for a
fraction of what they would have cost a
few months ago.
Second, because so many compa-
nies are stepping down their invest-
ments, scores of experienced engineers
working for IOCs and oil independ-
ents may be let go, while providers of
oil-field services (OFS) and engineer-
ing, procurement, and construction
(EPC) services will likely be forced to
cut prices. Taking advantage of these,
some companies have already stated
their intention to renegotiate the cost
of their capital proj¬ects with suppli-
ers.
Third, the cost of the raw materi-
als required for most large upstream
projects has fallen dramatically. “If
there ever was a good time to invest in
October 2009
Global oil and gas
consumption rates
have displayed a
constant upward trend
for more than 30
years, and the trend is
expected to continue
at roughly the same
pace in the future
building oil upstream capabilities and
infrastructure, this would be it,” stated
Chehade.
Certain aspects of a successful strat-
egy for the times ahead will be common
to all players: In this credit-starved en-
vironment, they should focus on care-
fully managing their working capital,
controlling their costs, and fine-tuning
business processes to maximize and
accelerate cash flows. In sorting the
various players into four categories,
depending on their competitive and
financial advantages, it is easier to dis-
cover, what the appropriate strategic ac-
tion for each group is.
 ABN AMRO Bank
Head Office: The Netherlands
Dubai Branch, Regional Hub for UAE and Middle East Tel: 04 3512200
P.O.Box: 2567, Khalid bin Waleed Street, Dubai, UAE. Fax: 04 3511555 Baniyas Town Manager
Non-stop banking service: 04 3080000 (Toll free) Hamad Salem Rashid Al Junaibi Manager 02 5821550
Dubai Branch:
Colin Macdonald Country Executive 04 5062601
Burhan Khan Head of Consumer Banking 04 5062801
Hassan EI Nahas Head of Private Clients 04 5062301
Vishnu Deuskar Head of Global Market 04 5062551
Padmanabh Mishra Head Commercial Client Coverage 04 5062701
Abu Dhabi Tel: 02 6963000
Corner of Hamdan and Salam Streets Fax: 02 6963001
P.O. Box: 2720, Abu Dhabi, United Arab Emirates
Sharjah Tel: 06 5594900
Abdul Aziz Al Majid Building, King Faisal Street Fax: 06 5591009
P.O. Box: 1971, Sharjah, United Arab Emirates
Abu Dhabi Commercial Bank
Head Office: Abu Dhabi Mall Nayla Al Ameri       Manager 03 7352100
P.O. Box 939, Abu Dhabi Tel: 02 6962144 Fax: 02 6450384
Branches Al Hayer
Al Salam
Omar S. Al Tamimi  Manager 02 6962486, 02 6666311
Khalidiya 02 6669910
Al Bayah
Khaled Al Mannaei      Manager 02 8721300
Al Dhafra
Yaqoob Al Dosari (Edgar Ruaya / GM in charge) 02 5851030
Al Muroor
Ramzi Al Rimawi      Manager  02 4444216
Al Shahama
Hazim Al Suwadi Manager 02 5633424
GHQ
Essam Husain Al Habshi Manager 02 4415626
Tourist Club Area
Hadia Dalloul       Manager 02 6725178
Hamdan
Abdalla Al Jaberi Manager 02 6335820
Sh. Rashed Road
Mohamed Al Dosari Manager 02 6213237
Corniche
Ghassan Kandalaft Manager 02 6275111
Mussafah
Firas Al Eid Manager 02 5544272
Ruwais
Mohammad Ismail Manager 02 8775015
Zayed Town
Dhababa Rashed Obaid Al Mansouri Manager 02 8846180
Gayathi
Haraba Al Mazroui Manager 02 8742155
Al Baya
Ottakath C Mohamed Kutty Manager 02 8721300
Al Ghuaifat Pay Office
Ottakath C Mohamed Kutty Manager 02 8723499
Al Ain Main Branch
Mohd. Al Darmaki Manager 03 7543413
Al Ain Khalifa Street
Salim Al Darmaki      03 7511322
Sinaeyah (Indust. Area)
Salem Ahmed       Manager 03 7210064
Al Wagan
Al Yahar
Khamis Sulum Abdun Khamis Manager 03 7815600
Khalid Omar Eissa Manager 03 7322557
Riggah
Mudhi Al Haj Manager 04 2956969
Karama
Omran Abbas Taimour Manager 04 4055135
Mina
Hosam Al Refay Manager 04 3984444
Naif
Ms. Seema Mohd. Malk     Manager 04 6024110
Al Ettihad
Salem Ali Khammas Jammahi Manager 04 3615151 ext. (202)
Al Qusais
Fahd. M. Baroudi  Manager   Manager 04 2634244
Sharjah Main
Ms. Wissam Moaded      Manager 06 5737737
Farah Al Ulama    Manager   06 5566169
Abdulla Al Shamsi Manager 06 5433300
Abdullah Fayez Al Shamsi     Manager 06 5432006
Ajman

BANKING AND BUSINESS REVIEW October 2009 49

 Dubai
Yasmeen Alabid       Manager 06 7442111 Al Twar 04 2611116
RAK Ibrahim Alqasser Manager
Aisha Ahmed Ghareib      Manager 07 2335500 Opposite Deira City Center 04 3973333
Fujairah Hashim Al Zarooni Manager
MohdAli Hassan Mohd Al Bloushi Manager 09 2224324 Shk. Zayed Rd.
 Dibba Mohamed Hussein Zainal Manager 04 4033400
Rania Yousef Manager 09-2446700
Contact Centre Fujairah
Ahmed Abdo Manager 800-2030 Fujairah 09 2222711
Fahad Al Shaer Manager
Eissa Al Suwaidi Chairman Dibba 02 6100920
Eirvin Knox CEO Ali Mohammed Manager
Ala’a Eraiqat Deputy Chief Executive Officer Ras Al Khaimah 07 2284448
Thirry Bardury Head Operations & IT Saif Hamdan Alkeem Manager
Deepak Khullar Chief Financial Officer Sharjah 06 5075100
Seumas Gallacher Head - Investment Banking Ali Essa Alshaqoosh Manager
Zaki Hamadani Head - legal & Special Assets
Sultan Al Mahmoud Head - Human Resources Al Ahli Bank of Kuwait - Dubai
Abdirizak Ali Head - Internal Audit
Alok Kakar Head - Corporate Finance Division Head Office: Kuwait
Robert Price Head - Credit Regional Head Office: Dubai Tel 04 2681118
Walter Pompliano Head - Financial Institution & Intl. Division Opposite Hamarain Centre, Deira Fax 04 2684445
Howard Gaunt Head - Business Banking P.O.Box 1719, Dubai, E-mail: infodubai@ahlibank.ae
Jasim Al Darmaki Head - Government Relations Website: www.ahlibank.ae
Arup Mukhopadhyay Head - Retail Banking Management & Senior Personnel:
Ahmed Barakat Head - Wealth Management Vikram Pradhan General Manager, UAE
Yaser Mansour Head - Corporate Communications, Vijay Shah Head of Trade Finance & Operations
Director of Chairman’s Executive Office & Hiranand Motwani Manager Treasury
Senior Vice President Krishna Kumar Manager Retail Operations
Simon Copleston General Counsel & Board Secretary
American Express Bank Ltd
Abu Dhabi Islamic Bank
Representative Office, Suite 509 Tel: 04 3975000; Fax: 04 3976986
Head Office: Abu Dhabi The Business Centre, Khalid Bin Al Waleed Street, Bur Dubai
Najda Street, P.O. Box 313, Abu Dhabi UAE Tel 02 6343000 P.O. Box 3304, Dubai.
Email: customerservice@adib.ae Fax 02 6342222 Prabir A. Biswas Director & Chief Representative
Website : www.e-adib.com Sumit.K.Roy Director-financial institution group
John A. Smetanka Head-wealth management-subcontinent and
Established on 20th May 1997 as a Public Joint Stock Company through the global NRI
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
Arab African International Bank
contracts, operations and transactions are carried out in accordance with Islamic
Head Office: Cairo, Egypt.
Shari’a principles.
Regional Head Office Dubai Tel: 04 3937773

ART Tower, Al Mina Street, Opp. Ports & Customs Bldg., Bur Dubai
Branches
P.O. Box 1049, Dubai Fax: 04 3937774
Abu Dhabi Main 02 6168118 Swift ARAIAEAD, E-mail: aaibdxb@emirates.net.ae
Aref Ismail Al Khouri Manager Web: www.aaib.com
Mushref 02 4455177 History: Established 1964 as the first Arab joint venture bank
Ezzeldin Nagdy Manager Hemant Jethwani General Manager UAE
Madinat Zayed 02 6100821 Dubai Branch: Key Executive
Mohamed Yousef Manager Alaa Sobhy Head of syndication and assert trade
Khalidiya Ladies Abu Dhabi Tel: 02 6323400; Fax: 02-6216009
Abu Baker Omar Manager Arab Monetary Fund Bldg, Corniche Street, P.O. Box 928, Abu Dhabi
Sheikha Al Suwaidi Manager Key Executive
Khalifa Street 02 6100590 Hani Hassan Branch Manager
Omar Aqel Manager
Al Ain Arab Bank
Sinaiya 03 7211777
Omar M. Basheer Manager Head Office Jordan – Amman Tel: 04 2950845; Fax: 04 2024369
Clock Tower Branch 03 7076444 P.O.Box 950544, 950545
Ali Abdullah Al Manager Amman 11195
Dhaheri Website: www.arabbank.ae
Al Jimi Mall Branch 03 7633500 History: The Arab Bank Group is one of the principal financial institutions in the
Ahmed Abdullah Manager Arab world and ranks among the leading international banks in terms of equity,
Al Boloshi earnings and assets. Established in 1930 in Jerusalem. The Arab Bank Group is

50 BANKING AND BUSINESS REVIEW October 2009

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 04 2950845
Mohammed Azab Branch Manager Fatima Al Muani Manager 06 5747766
Deira 04 2221231
Mohammed Elayyan Branch Manager
Abu Dhabi Al Naser Street 02 6392225
Nasser Serries Branch Manager
Al Ain 03 7641328
Colock Tower roundabout, Al Ain Street
Maen Jarrar Branch Manager
Sharjah Al Arooba Street 06 5618999
Maher Al Debis Branch Manager
Ajman 06 7422431
Rashid Bin Humaid Street
Modhar Kherfan Branch Manager
Ras Al Khaimah 07 2288437
Oman Street, Al Nakheel
Ali Zatar Branch Manager
Fujairah Sheik Zayed Street 09 2222050
Abdel Hamid Qamhieyah Branch Manager Abu Dhabi Branch Tel: 02 6323400
Call Centre Within UAE 800 40 43
Outside UAE 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 Dubai Tel 04 2284655
Telex 22455 ARBIFT EM
Email: arbiftho@emirates.net.ae
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 PO Box 5803, Al Buheira Tower, Al Buheira Corniche Tel 06 5736100
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
Mir Asif Ali Mgr - Treasury Dept 02 6721600
Saidi Zoubir Head of Business Dev. Dept. 02 6723763
Tareq S’adi Al Darras Mgr - Credit Risk Management 02 6720886
Issam Abugisseisa Legal Advisor 02-6791642
Abu Dhabi Main, Sh. Hamdan Street 02 6721900
Noora Ebrahim Manager -Sales & Services 02 6780423
Souk Branch 02 6269500
Al Masaood Building - Khalifa Street, Abu Dhabi
Nasser Rashed Al Ali Manager 02 6275087
Al Ain 03 7655133
Mohd. Sultan Al-Darmaki Bldg., 1st Floor, Old Passport Office Road.
Hussain Marzouqul Manager 03 7656482
Dubai 04 2220151
Arbift Tower, Baniyas Street, Deira
Adel Mohd. Khalfan Manager 04 2282071
Al Bagh
Sharjah King Faisal Street 06 5744888
Arab Banking Corporation
Abu Dhabi Office 02 6447666
Office, 10th Floor, Abu Dhabi Trade Centre, Abu Dhabi Mall
P.O.Box 6689, Abu Dhabi Fax 02 6444429
Mohamed El Calamawy Chief Representative
Arab Emirates Investment Bank PJSC
Head Office: Cairo Egypt Tel: 04 3937773
Regional Office: Dubai Fax: 04 3937774
ART Tower, Al Mina Road, Opposite Maritime City, Bur Dubai
P.O Box 1049 Dubai
SWIFT: ARAIAEAD
E-mail: aaibdxb@eim.ae
Web: www.aaib.com
Management-UAE
Hemant Jethwani General Manager
Alaa Sobhy Head of Syndication and Asset Trade
Mahendran Raman Head of Operations and Liabilities
Fax: 02 6216009
Arab Monetary Fund Bldg., Corniche
P.O Box 928, Abu Dhabi
BLOM Bank France SA
Al Maktoum Street, Deira Dubai, P.O. Box 4370 Fax 04 2236260
email: info@blomfrance.ae
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
Fax 06 5736080
Mokhtar Kassem Branch Manager
BANKING AND BUSINESS REVIEW October 2009 51

Bank Muscat
Dubai Representative Office Mr. Saravana kumar
Dubai Creek Tower, Baniyas Road, Deira Tel 04 2222267
P.O. Box 29969, Dubai Fax 04 2210115
Lawrence P. Monteiro Chief Representative
BBK BSC
Dubai-Representative Office 04 2210560
Dubai Creek Tower Office 18A, Baniyas Road, Deira
PO Box 31115 Tel 04 2210560 / 70
Fax 04 2210260
Website www.bbkonline.com
History: Established on 16th March, 1971
Murad Ali Murad Chairman
Karim Bucheery CEO & GM
Sh. Rashed Al Khalifa Deputy General Manager
Dubai ReP-Office: CK Jaidev D. Guha Senior Manager (Operations) 06 5686232
Head of Representative Office
Rajiv Kapoor Relationship Manager & Loan Syndications Wafa
Al-Alwan Relationship Manager & Loan Syndications Representative office Tel 02 6263008
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: cc.gcc@bankofbaroda-uae.ae 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 Chief Executive,
(GCC operations) 04 3538093
L.J. Asthana Senior Manager (Credit) 04 3531628
J.K.Jais Senior Manager (Inspection) 04 3531628
P.M. Bondarde Senior Manager (Credit) 04 3531628
Sujeet Bhale Senior Manager (Syndication) 04 3531628
Rajesh Jain Senior Manager (Internal Auditor) 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 03 7519880
Sarabjeet Singh Senior Branch Manager 03 7659554
Vijay Kumar Goel Senior Manager (Operations)
Dubai: Sheikh Rashid Bldg.Ali Bin Abu Talib Street,
52 BANKING AND BUSINESS REVIEW October 2009
Bur Dubai, 04 3531955
Vinod Malhotra Asst. General Manager 04 3534516
Shekhar Tripathi Senior Manager (Operations) 04 3530166
M.K. Patel Senior Manager (Credit) 04 3534080
Beena Desai Manager (India Desk) 04 3537586
Retail banking Shoppe, Dubai
04 3534390
Mr Ketan Dave 04 3540041
Mr Vinay Rathi 04 3540340
Deira
Kuwaiti Bldg., Al Rigga, Baniyas Street, Deira 042287949
Rajiv K. Garg Chief Manager 04 2286516
Yuvraj Singh Senior Manager (Operations) 04 2286216
P.K. Gambhir Senior Manager (Credit) 04 2292181
R.K. Madaan Manager 04 2292181
Ras Al Khaimah:
Al Qasimi Bldg, Oman Street, Al Nakheel 07 2229293
P.K.Bhargav Senior Branch Manager 07 2229293
Sharjah
Al Mina Road 06 5684231/ 5686232
M.S. Chouhan Asst. General Manager 06 5683273
D. Pathania Senior Manager (Credit) 06 5684231
Bank of New York
Suite 402, The Blue Tower, Sh. Khalifa Bin Zayed Street Fax 02 6263308
P.O.Box 727, Abu Dhabi
Hani Kablawi Managing Director
Bank of Sharjah
Sharjah
Head Office – Al Hosn Avenue Tel 06 5694411
P.O. Box 1394, Sharjah Fax 06 5694422
E-mail: bankshj@emirates.net.ae
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

Bank Saderat Iran
Dubai Tel 04-6035555
Regional Office, Al Maktoum Street, P.O. Box 4182 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                Al Maidan Tower, Al Maktoum St. Tel 04 2222291
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 na-
tionalized. 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   BNP Paribas
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 Tel: 04 3626888
Emaar Business Park, Building No. 4, Sheikh Zayed Road Fax: 04 3663133
P.O. Box: 1891, Dubai
Website www.barclays.com
Saleem Sheikh Regional Managing Director, Middle East & North
Africa
Mark Petchell Group Country Managing Director
Amin Habib Director - Corporate Banking
Faizen Mitha Regional Treasurer
Farrukh Zain Head of Trade Sales
Florence Goodman Head of Corporate Afffairs & Public Relations
David Inglesfield Location Manager - International & Premier Bank-
ing
Callum Watts-Reham Director, Market Manager, Gulf - Barclays Private
Clients
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
BLC Bank (France) S.A.
Head Office
17-19 Avenue Montaigne Tel 33 1 56 52 11 00
75008 Paris, France Fax 33 1 56 52 11 11
Mr. Andre Tyan General Manager
Regional Office Dubai
P.O. Box 4207, Dubai Fax 04 2283935
E-mail: blcdxbrm@emirates.net.ae
Melhem Dagher Administration & Operations Manager
Dubai
Al Maidan Tower, Al Maktoum St. Tel 04 2222291
P.O. Box 4207, Dubai Fax 04 2279861
Hamze Abdul Sater Branch Manager
Abu Dhabi
Mohd. Joan Al Badi Bldg., Hamdan St. Tel 02 6220055
P.O. Box 3771 Fax 02 6222055
Ghassan Haddad Acting Regional Manager
Samir Rached Acting Branch Manager
Sharjah
Al Salam Bldg., Al Mina St. Tel 06 5724561
P.O. Box 854 Fax 06 5727843
Victor Khoriaty Branch Manager
Ras-Al-Khaimah
Sheikh Ahmad Bin Saker Al Quasimi Bldg., Al Montaser St. Tel 07 2286222
P.O. Box 771 Fax 07 2275067
Abd El Hajj Branch Manager
Abd Ahmad Al Hajj Branch Manager
Abu Dhabi Tel 02 6130400
Khalifa Street, P.O. Box, 2742, Abu Dhabi Fax 02 6268638
Marc Checri General Manager
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: sultan_rashid@cbuae.gov.ae
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 Chairman
H.E. Jumaa Al-Majid Vice Chairman
BANKING AND BUSINESS REVIEW October 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 Executive Director-Banking Supervision & Exami-
nation Dept.
Rashid Mohamed Al Fandi Executive Director - Banking Operations Dept.
Saif Hadef Al Shamesi Executive Director - Treasury Department
Salem Ahmed Al-Hammadi Executive Director - Research & Statistics Department
Abdulla Hamad Al-Zaabi Executive Director - Internal Audit Department
Jamal Ebrahim Al Mutawaa 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 Tel: 04 3939777
P.O. Box 448 Fax: 04 3937802
Omar Al Qaizi Manager-in-Charge
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 Tel: 07 2284444
Al Nakheel, Oman Street, P.O. Box 5000 Fax: 07 2284646
Salem Jasem Al Baker Asst. Executive Director
Fujairah Tel: 09 2224040
P.O. Box 768, Fujairah Fax: 09 2226805
Ali Mubarak Saeed Abbad Senior Manager Zainab Nour Aldin Employee Relations Manager 04 2126 442
Al Ain Tel: 03 656656
Ali Ibn Abee Taleb Street, Oud Al Touba Fax: 03 664777
P.O. Box 1414
Ajlan Ahmed Al Qubaisi Asst. Executive Director Faris Saddi Chief information Officer 04 2060700
Citibank N.A (UAE Branches)
Date of Establishment 1964
Nationality USA
Legal Status Mohammed Ishaq RAK  Branch Manager (AL Manar Mall) 07 2274777
54 BANKING AND BUSINESS REVIEW October 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: karim.seifeddine@citi.com
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 Fax : 04 2279038
 
Hamad Al Mutawaa Chairman  
H.E. Humaid Al Qatami Deputy Chairman  
Abdulla Rashid Omran Managing Director and Board Member 04  2242104
Mohammed Saadeh Head of GBG 04 2126500
Abdulla Amer Jasem Head of HR & Admin 04 2126466
Hesham Abdulla Head of Branches & Services 04 6020615
Ahmed Mustafa Tahoun Head of Internal Audit &
compliance Division 04  2126603
Ramanthan Murgappan Senior Manpower planning &
Recruitment Manager 04 2126444
Yousef Haddad Planning & Development Manager 04 2126190
Bashir Haji Mohd Chief Dealer 04 2126214
A.D.Abooty Head Of Operations & Finance 04 2126291
K.E Mammoo Accounts Manager 04 2126215
Yousef Al Marshoudi Dubai Branch Manager 04-2275265
Tariq Selaij Bur Dubai Manager 04-3559577
Ameena Bin Kaali Sheikh Zayed Branch Manager 04 3405555
Ahmed Al Junaibi Abu Dhabi Branch Manager 02-6913111
Abdulla Ali Almadhani Al Ain Branch Manager 03 7669994
Ahmed Darwish RAK  Branch Manager (Nakhel Branch) 07 2227555
Alyia Al Mulla Sharjah Branch Manager 06 512100
Ahmed Bin Masood
Fujairah Branch Manager 09 2011777

Dubai Main Branch (Al Riqqa Street)

Yousef Al Marshaudi Branch manager 04 2126101
Bur Dubai
Tariq Sulaij Branch manager 04 3555511
Sheikh Zayed Road
Ameena Mhd. Bin Kaadi Branch manager 04 3405555
Abu Dhabi Twin Towers, Baniyas Street, Deira
Ahmed Sulaim Al Junaibi Branch Manager 02 6264400
AL AIN
Abdulla Ali Branch manager 03 7669994
Ras Al Khaimah
Khaled Al Mannai Branch Manager (Manar Mall) 07 2274777
Ahmed Yousef A. Darwish Branch Manager (Nakeel Branch) 07 2227555
Sharjah
Aliya Al Mulla Branch manager 06 5687666
Commercial Bank of Dubai
COMMERCIAL BANK OF DUBAI,
P.O. BOX 2668, AL AITIHAD STREET, DUBAI
TOLL-FREE: 800 CBD (223)
TEL: 04 2121000 FAX: 04 2121911
E-Mail: cbd-ho@cbd.ae Website: www.cbd.ae
MANAGEMENT COMMITTEE
Peter Baltussen Chief Executive
Yaqoob Yousuf Hassan Deputy Chief Executive
Ibrahim Abdulla General Manager, Administration & Finance
Mahmoud Hadi General Manager, Systems & Operations
Faisal Galadari General Manager, Business Group
Ahmed Shaheen General Manager, Credit & Risk Management
HEADS OF DEPARTMENTS
Stephen Davies Head of Corporate Banking
Moukarram Attasi Head of Asset Management
Frans Jan Burkens Head of Consumer Banking
John Tuke Head of Treasury & ALM
V.P Bhatia Head of Treasury Trading
Masood Azhar Head of Strategic Planning Department
Amir Afzal Head of Information Technology
Adel Al Sammak Head of Commercial Banking
Kanan Iyer Head of Internal Audit
Alan Hill Head of Treasury Sales
Abdul Rahim Al Nimr Head of Wealth Management
Badr Soueidan Head of Marketing
Nabil Tayyeb Head of Islamic Banking
Mr. Mohamed Mardood Head of Central Operations Department
Mr. Hassan Al Redha Head of Financial Institutions
Akram Gharabeh Head of Financial Control
Waleed Bin Suloom Head of Personal Banking and Alt Banking Chan-
nels
Jamal Saleh Head of Risk Management
Salah Omer Head of Legal Services
Rahmatulla Khan Head of Consumer Products
Nigel Foster Head of Human Resources Strategy
Wafaii Tamimi Head of Recovery
REGIONAL MANAGERS
Mr. Abdul Aziz Al Ansari AGM, Sharjah Branch
Ibrahim Salama Regional Manager, Main Region
Othman Bin Hendi Regional Manager, Abu Dhabi & New Dubai
Region
Alsayed Mohd. Al Hashimi Regional Manager, Deira Region
Marwan Ibrahim Regional Manager, Northern Emirates Region
Ahmed Al Aboodi Regional Manager, Bur Dubai Region Global Markets
Coutts & Co.
Representative Office - Dubai Tel 04 2217007
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 Tel 02 6275048
P.O.Box 47060 Fax 02 6274109
Jean-Marc Suter Director
Dubai
P.O. Box 33660 04 3620000
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 Tel 02 6333122
P.O.Box 52333 Fax 02 6322044
E-mail: jens.moeller@db.com
Jens Moeller Representative
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
Harris Irfan Vice President Tel : 04 3199520

BANKING AND BUSINESS REVIEW October 2009 55

 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 Mohamed Osman Salih Deputy Manager 02 6761916
Bur Dubai, P.O. Box: 25654 Tel 04 3596444
Fax 04 3596116
E-mail: RepDubai@Dresdner-Bank.com
El Nilein Bank
Abu Dhabi
P.O.Box 46013 Tel 02 6269995
Fax 02 6275551
Abdulla Mahmoud Awad Manager Tel 02 6720934
Murlidhar G. Ramchandani Chief Accountant & Dealer 02-6729300
Ahmed Hillali Ahmed Head Investment Dept. & Credit 02-6729300

Bashar A. Barakat Chief Representative Emirates Bank International

Regional Head GCC & Yemen
Dubai
Dubai Bank Main Branch, Baniyas Road, Deira
Tel 04 2256900
Main Office P.O. Box 2923, Dubai Fax 04 2267718
Sheikh Zayed Road, Near Dubai World Trade Centre Tel 04 3328989
P.O. Box 65555, Dubai Fax 04 3290071 Branches
E-mail: info@dubaibank.ae Abu Dhabi 02 6455151
Website: www.dubaibank.ae Hameed Sheikh Manager
Al Ain 03 7510055/77
History: Established in September 2002 Ghanim Al Hajeri Manager
Al Maktoum
Ziad Makkawi Chief Executive Officer Ali Malallah Manager
Al Quoz
Dubai Islamic Bank Mohd. Abdulla Manager
Baniyas Square
Head Office Sherif Al Ulama Manager
Al Maktoum Street, Dubai Tel 04 2953000 Bander Talib
P.O. Box 1080, Dubai Fax 04 2954111 Fareed Aquilli Manager
Website: www.alislami.co.ae Dubai Main Branch
History: Established March 12, 1975 Amal Al Qamzi Manager
Dr. Mohammed Khalfan Bin- Fujairah 09 2222114/110
Kharbash Chairman Yousif Al Marshoudi Manager
Butti Khalifah Bin Darish Internet City 04 3910840/1
Al- Falasi CEO Balakrishnan Nair Manager
Saad Mohammed Abdul Razzaq Deputy CEO Galleria
Mohd. Saeed Al Sharif Executive Vice President-Finance Farida Al Balooshi Manager
Arif Ahmed Al Koheji Executive Vice President-Investment Banking IBN Gardens 04 8844689
Abdullah Ali Al Hamli Executive Vice President - Business Services Hamdan Mohd. Abdulla Manager
Ahmed Mohammed Fadel Legal Consultant and Board Secretary Jebel Ali Free Zone 04 8815551
Abdul Rahman Ibrahim Manager
Branches Karama
Deira Main Branch 04 2959999 Muna Al Falahi Manager
Al Souk 04 2233300 Karama Shopping Complex
Sheikh Zayed Rd 04-3437777 Nawal Al Khader Manager
Nad Al Shiba 04 3907777 Mankhool
Bur Dubai 04 3971717 Abdul Rahim Abdulla Manager
Jumeirah Ladies Branch 04 3429955 Qiyadah
Al Barsha 04 3406000 Fatima Al Midfa Manager
Ajman 06 7466555 Ghusais
Sharjah 06 5726444 Fatima Al Midfa Manager
Wasit Road 06 5584455 Ramoul
Al Dhaid 06 8826682 Ibrahim Hassan Manager
Khorfakan 09 2370080 Ras Al Khaimah 07 2272333
Abu Dhabi 02 6346600 Khalifa Bin Kalban Manager
Khalidiah Ladies Branch 02 6677119 Satwa
Al Salam 02 6450555 Mohamed Bilal Manager
Bani Yas 02 5825511 Sharjah Industrial Area 06 5345577
Al Ain 03 7644111 Mohamed Al Shouq Manager
Al Ain Mall 03 7515155 Sharjah 06 5733300
Ras Al Kheimah 07 2284888 Mahmoud Saif Manager
Fujairah 09 2221550 Souk
Samia Al Aqady Manager

56 BANKING AND BUSINESS REVIEW October 2009


Umm Suqueim Ms. Maha Al Jamal Senior Manager – Marketing 02 6194893
Nazia Kalban Manager
Tower
Saif Al Mansoori Manager
World Trade Centre
Abdulla Sulaij Al Falasi Manager
Najdah 02 6771919 Head Office, Sh. Zayed Second Street, Khalidiya
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: indbank@emirates.net.ae
Dubai Tel 04 2211300
Arbift Tower, Deira P.O. Box 5454, Dubai Fax 04 2232320
E-mail: eibdubai@emirates.net.ae
Website: www.emiratesindustrialbank.net
Senior Management Personnel/Branch ManagerMohamed Abdulbaki Mohamed Nadeem A. Siddiqui Head of International Business
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
First Gulf Bank
Abu Dhabi Tel 02 6816666
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
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: hbzcad@habibbank.com
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
Zain Ghazali Branch Manager
Abdul Basheer Deputy Branch Manager
Jebel Ali 04 8812828
Nisar Chowdhary Branch Manager
Ifthikhar Memon Deputy Branch Manager
Sh.Zayed Branch 04 3313999
Zia Abbas Mirza Branch Manager
Kashif Aijaz Dodhy Deputy Branch Manager
Abu Dhabi
Sh. Hamdan 02 6346888
Imamat Naqvi Area Manager
Farhan Bakhshy Branch Manager
Al Falah 02 6422600
Syed Akhtar Hussain Branch Manager
Raid Saleem Ansari Deputy Branch Manager
Sharjah 06 5730004
Al Boorj Avenue
Younus Warsi Area Manager
Kausarullah Khan Branch Manager
BANKING AND BUSINESS REVIEW October 2009 57

Habib Bank limited
Abu Dhabi Tel 02 6224688
Main Branch, Corniche Road, P.O.Box 897, Abu Dhabi Fax 02 6225620
E-mail: hbl2003m@emirates.net.ae
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 Tel 04 3966991
Juma Al Majid Bldg., Opp Bur Juman Centre Fax 04 3967010
P O Box 64546, Email: hdfcbank@emirates.net.ae
Faisal Saeed Cheif Representative 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 Al Maktoum Street
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
58 BANKING AND BUSINESS REVIEW October 2009
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: ibldubai@indusind.ae
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 Director
P.G. Bhaskar Director
Ranjit Paul Director
Piyush Bhandari Director
Nitin Bhatnagar Director
Rishi Chauhan Director
Asad Dadarkar Director
Ashraf Al Yamani Director
InvestBank
Sharjah Tel 06 5694440
Al Boorj Avenue, P.O. Box 1885 Fax 06-5694442
E-mail: sharjah@invest-bank.com
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 04 3213131
Sheikh Zayed Road
Dubai 04 2285551
Al Ain 03 7644446
Al Ghaba Street
Abu Dhabi 02 6794594
Sh. Khalifa street
Abu Dhabi 02 5555336
Mussaffa Area
Sharjah 06 5420333
Industrial Area
 Janata Bank P.O. Box 1250, Dubai
History: Established on 1st May, 1967 as Bank of
Abu Dhabi
Oman Limited. On October 1st 1993 name was changed to MashreqBank PSC.
Obied Sayah Al-Mansuri Building Tel No 02-6331400
bdullah Al Ghurair President and Chairman
Electra Road, Post Box No. 2630 Fax : 02-6348749
Abdul Aziz Al Ghurair CEO
Email jbadas@emirates.net.ae
Ali Raza Khan
Mr. Md. Masuduzzaman Chief Executive 02-6344543
Head of Corporate Affairs
Mr. Md. Chaynul Haque IT Manager/SPO 02-6340881
Douglas Beckett Head of Retail Banking
Mr. Md. Ramjan Bahar System Administrator/PO 02-6340881
Omar Bouhadiba Head of Investment and Corporate Banking
Abu Dhabi
Nabeel Waheed Head of Treasury and Capital Markets
Mr. Mohamudul Hoque Manager 0 2-6344542
Nigel Morgan Head of Audit Review & Compliance
Dubai
Majid Husain Head of Financial Institutions
Mr. Md. Abdul Awal Manager
Somnath Menon Head of Operations & Technology
Mohammad Saleh Al-Gurg Building 0 4-2281442
Kantic DasGupta Head of Risk Management
Al-Borj Street, P.O. Box 3342
Alexander Sinclair Head of Technology
Mr. Md. Mizanur Rahman Manager
Mubashar Khokhar CEO of Badr Al Islami
Sharjah
Ebrahim Kazi Head of Marketing and Corporate Communications
Saqer Bin Rashid Al Quassim Building
Saad Hakim Events and Public Relations Manager
Al Suwaiheen Street, P.O. Box- 5303 0 6-5687032
Al Khaleej Street, Deira 04 2717771
Mr. Md. Mizanur Rahman Manager
Souq Al Kabir Branch 04 2264176
Al Ain Branch
Hor Al Anz, Deira 04 2623100
Mr. Md Shahadat Hossain Manager
Jumeirah Branch 04 3441600
Sk. Khalifa Bin Mohd. Al-Nahyan Building,
Jebel Ali 04 8815355
Main Market Centre, Main Street,
Khor Branch 04 3534000
P.O. Box- 1107 0 3-7513425
Bur Juman Centre 04 3527103
Al Riqa, Deira 04 2229131
Lloyds TSB Bank plc Al Aweer 04 3333727
Abu Dhabi 02 6274300
Dubai Main Branch Main Branch, Khalifa Street
Al Wasl Road, Opp. Safa Park Tel 04 3422000 Musaffa 02 5555051
P.O. Box: 3766, Dubai, UAE Fax 04 3422660 Zayed the 2nd Street 02 6334021
E-mail: information@lloydstsb.ae Al Salam Street 02 6786500
Website: www.lloydstsb.ae Al Mushrif 02 4432424
Vivek Vohra Head of Corporate Origination Baniyas 02 5821100
Giles Cunningham Regional Manager, UAE & Gulf States 04 3023267 Muroor 02 4481858
Bert de Ruiter Managing Director 04 3023267 Khalidiya 02 6665757
Steve Williams Consumer Banking Director 04 3023267 Al Ain 03 7667700
Jon Mortell Head of Corporate Banking 04 3023266 Al Ain Main Street
Suresh Jadhwani Treasury Manager 04 3023256 Ali Ibn Abi Tailb St. 03 7669968
Tim Goddard Head of Operations and IT 04 3023250 Ajman 06 7422440
Derek Vaz Head of Finance and Planning 04 3023330 Shk Humaid Bin Abdul Aziz Street, Near Ajman Museum
Caroline Ridley HR Manager 04 3023270 Fujairah 09 2221100
Steve Snowdon  Head of Middle Office Sh. Hamad Street
Alex de Melo Head of Treasury Trading Ras Al Khaimah 07 2361644
Edson Suppo Head of Treasury Strategy & Risk King Faisal Street.
Claire Thomas Head of Human Resources Al Nakheel RAK 07 2281695
Sharjah Main 06 5684366
Dubai Customer Service Centres Bank Street, Rolla
Community Centre at Arabian Ranches, Dubai Tel 04 3023318 King Abdul Aziz Street 06 5730883
Fax 04 3618035 Dhaid 06 8822899
Dubai Healthcare City (Behind Wafi City) Tel 04 3023349 Main Street, Sh. Arsan Hameed Bldg., Dhaid
Fax 04 3624805 Dibba 09 2444230
Kalba 09 2777430
Man Investments Middle East Limited Kalba City
Khorfakkan 09 2385295
Representative Office Dubai Tel 04 3604999 Umm Al Quwain 06 7666948
Level 5, West Wing, The Gate, Dubai Internaional Financial Centre Fax 04 3604900 King Faisal Street, Next to New Souk
P.O. Box: 73221, Dubai
Website: www.maninvestments.com
E-mail: ManDubai@maninvestments.com
Merill Lynch International & Co.C.V
Patrik Merville Chief Executive Officer
Kamlesh Bhatia Deputy Chief Executive Officer
Representative Office Dubai (04) 3975555
Business Center Building, Khalid Bin Walid Street
P.O. Box 3911, Dubai
Mashreqbank Telefax 04-3975252
Executive Director Mones Bazzy
Dubai Tel 04 2223333
Head Office, Omar Bin Al Khatab Street, Deira Fax 04 2226061

BANKING AND BUSINESS REVIEW October 2009 59

 NATIXIS
Dubai Branch Tel 04 7026777
DIFC Gate Village Fax 04 7026820
Building No. 8, 5th Floor
P.O Box 33770
Email: natixis@emirates.net.ae
Website: www.natixis.fr
Philippe Petitgas CEO
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 Sharjah 06 - 5721111
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
Dalma Island 02 - 8781240
TAMM 02 - 8945528
Das Island 02 - 8731099
Liwa 02 - 8822388
Madinat Zayed 02 - 8846146
Government Complex 02 - 8945428
Al Mirfaa 02 - 8836506
Al Ruwais 02 - 8776343
Al Muroor 02 - 4481918
Mussafah 02 - 5553357
Dept. of Social Services & Commercial Buildings (Mussafah) 02 - 5520681
Mussafah Municipality 02 - 5540300
Industrial City of Abu Dhabi 02 - 5501125
Al Salam St. 02 - 6442900
Al Shahama 02 - 5632411
New Al Shahama 02 - 5635695
Abu Dhabi Municipality-Shahama 02 - 5631385
Sweihan 03 - 7347919
Marina Mall 02 - 6816002
Al Etihad 02 - 6111111
Emirates Palace 02 - 6908900
National Exhibition Centre 02 - 4494996
60 BANKING AND BUSINESS REVIEW October 2009
Mina Road 02 - 6767665
Al Alin
Al Ain Clock Tower 03 - 7642400
Al Ain 03 - 7516900
Al Ain Cement Factory 03 - 7828060
Al Ain International Airport 03 - 7855511
Al Ain Defence 03 - 7688824
Al Sanaiya 03 - 7213222
Al Hayer 02 - 7322400
Al Ain Mall 03 - 7519900
Ajman
Ajman 06 - 7422996
Dubai
Deira 04 - 2226141
Dubai Side 04 - 3599111
Jebel Ali 04 - 8815655
Sh. Zayed Road 04 - 3433311
Al Qusais 04 - 2674176
Jumeirah 04 - 3499001
Mall of the Emirates 04 - 3413888
Fujairah
Fujairah 09 - 2222458
Dibba 09 - 2444223
Ras Al Khaimah
Al Nakheel 07 - 2281753
Ras Al Khaimah 07 - 2334333
Sharjah
Al Bourj Avenue 06 - 5695500
Al Falah Camp Office 06 - 5385969
Al Dhaid 06 - 8822929
Khorfakkan 09 - 2385250
Kalba 09 - 2772112
Umm Al Quwain
Umm Al Quwain 06 - 7660033
National Bank of Bahrain
Abu Dhabi Tel 02 6335288
Khalaf Bin Ahmed Al Otaiba Building, Sh. Hamdan Street Fax 02 6333783
P.O.Box 46080
Email: nbbbr96@emirates.net.ae
Website: www.nbbonline.com
Farouk Khalaf UAE Country Manager 02 6335299
Ingersoll Ramalingam Manager Credit 02 6311248
National Bank of Dubai
Dubai Tel 04 2222111
Head Office Baniyas Street, Deira
Fax 04 2283000
P.O. Box 777
Email: contactus@nbd.co.ae
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 CEO
Joyshil Mitter CFO
Alex Richardson COO
Leslic Rice CRO
Abdul Shakoor Tahlak CM - Intl.
Ghanim Bin Zaal CM - Business Development
Ali Al Najjar CM - Liability
Suvo Sarkar Head of Retail
Rajesh Thaper Head Of Corporate
Faranak Foroughi Head of TPO
Husam Al Sayad Head of HR
G. Krishnamoorthy Treasurer
Sue Evans Head of IS&T
Alan M. Smith Head of Group Audit
A. Chandran Head of BPQM
Walid El Masri Head of Corp Comm
Rashmi Malik Head of Strategy
Abdul Fattah Sharaf GM NFS
Mohamed Al Neaimi GM Aqarat
Ali Kaitoob Head of Dist. Retail
P.S. Sastry SM CEO’s Office
Hesham Qassimi Divisional Manager Corporate Banking
Abu Dhabi P.O. Box: 386 Tel : 02 6394555 Fax : 02 6346767
Ajman P.O. Box: 712 Tel : 06 7456555 Fax : 06 7456060
Ajman Archives Tel : 06 7444606 Fax : 06 7425883
Al Mizhar Tel : 04 2641221 Fax : 04 2640569
Al Ain P.O. Box: 16122 Tel : 03 7644345 Fax : 03 7668515
Burjuman Centre Tel : 04 3555222 Fax : 04 3554455
Bullion Tel : 04 2284757 Fax : 04 2289090
Convention Centre Branch Tel : 04 3320808 Fax : 04 3320908
Dubai Central Fruit & Vgtbl. Mkt Branch Al Awir Tel : 04 3333880 Fax : 04 3333870
Dubai International Airport Tel : 04 2200404 Fax : 04 2244614
Dubai International Airport Pay Office Tel : 04 2164946 Fax : 04 2244614
Dubai Internation Airport Tel : 04 2162450 Fax : 04 2244614
Dubai Internation Airport Tel : 04 2166995 Fax : 04 2244614
Dubai Internation Airport Tel : 04 2162452 Fax : 04 2244614
Dubai Internation Airport Tel : 04 2162434 Fax : 04 2244614
Dubai Internation Airport Tel : 04 2162740 Fax : 04 2244614
Dubai Media City Pay Office Tel : 04 3902007 Fax : 04 3908855
Deira City Centre Tel : 04 2951555 Fax : 04 2951525
Dubai Airline Centre Tel : 04 2952555 Fax : 04 2955655
Dubai Airport Free Zone Tel : 04 2995550 Fax : 04 2995557
Dubai Courts Tel : 04 3366702 Fax : 04 3353906
Dubai Media City Pay Office Tel : 04 3030400 Fax : 04 3908855
Emirates Tower Tel : 04 3300133 Fax : 04 3300155
Fahidi Tel : 04 3535575 Fax : 04 3535575
Emirates Tower Tel : 04 3530308 Fax : 04 3534601
Emirates Tower Tel : 04 2823400 Fax : 04 2823640
Fahidi Direct Banking Tel : 04 3532840 Fax : 04 3531443
Fujairah Branch P.O. Box: 1744 Tel : 09 2233335 Fax : 09 2233336
Hamriya Tel : 04 2663189 Fax : 04 2690103
Hatta Tel : 04 8523183 Fax : 04 8521051
Ibn Battuta Mall Branch Tel : 04 3685499 Fax : 04 3685501
Ittihad Road Tel : 04 2955600 Fax : 04 2955611
Jumeirah Branch Tel : 04 3420202 Fax : 04 3421112
Jebel Ali Tel : 04 8816087 Fax : 04 8816961
Main Office Tel : 04 2222111 Fax : 04 2283000
Maktoom Branch Tel : 04 2281141 Fax : 04 2235456
Malleq Emirates Branch Tel : 04 3410777 Fax : 04 3410707
Muhaissnah Branch Tel : 04 2544545 Fax : 04 2544646
Nadd Al Shiba Tel : 04 3363939 Fax : 04 3363788
Oud Metha Branch (Ex-Gulf Tower Branch) Tel : 04 3370222 Fax : 04 3366145
Ras Al Kaimah P.O. Box : 1932 Tel : 07 2279888 Fax : 07 2279889
Rashidiya Tel : 04 2859523 Fax : 04 2854847
Souk Madinat Jumeirah Branch Tel : 04 3686130 Fax : 04 3686195
Sh. Zayed Road (Saeed Tower) Tel : 04 3313183 Fax : 04 3310629
Sharjah P.O. Box : 21850 Tel : 06 5738888 Fax : 06 5733000
Umm Al Quwain P.O. Box : 22 Tel : 06 7656154 Fax : 06 7655151
Emirates Tower Tel : 06 7656152 Fax : 04 3300155
Umm Suqeim Tel : 04 3485222 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: nbuq@nbq.ae Website: www.nbq.ae
Sh. Nasser Bin Rashid Al-Moalla Managing Director
Mohamed Abdel Rahim Al Mulla General Manager
Umm Al Qaiwain Branch Tel: 06 7066666
NBQ Building, King Faisal Street Fax: 06 706 6677
P.O.Box 800, Umm Al Qaiwain
Falaj Al Mualla Branch Tel: 06 8824447
NBQ Building, Shaikh Zayed Street Fax: 06 8824445
P.O.Box 11074 Falaj Al Mualla
Dubai Branches Tel: 04 3976655
NBQ Building, Khalid Bin Al Waleed Street Fax: 04 3975382
P.O. Box 9715 Dubai 
Deira Branch Tel: 04 2651222
Opposite Dubai Police Head Quaiter Fax: 04 2651333
Al Ittihad Street, P.O. Box 8898 Deira,
Abu Dhabi Branch
Hamdan Bin Mohammed Street (# 5) Tel: 02 6775100
P.O. Box 3915 Abu Dhabi  Fax: 02 6779644
Mussafah Branch Tel: 02 5555088
P.O. Box 9770 Abu Dhabi Fax: 02 5553559
Al Ain Branch Tel: 03 3751300
Oud Al Touba Street Fax: 03 7513500
Al Mandoos Roundabout
P.O. Box 17888 Al Ain
Sharjah Branch Tel: 06 5742000
King Faisal Street, Fax: 06 5742200
P.O.Box 23000 Sharjah
NBQ Kiosk Fax: 06 5742200
Sharjah Mega Mall
P.O.Box 23000 Sharjah
Ajman Branches
City Center Branch Tel: 06 7436000
Ajman City Center Fax: 06 7436060
P.O.Box 4133 Ajman
Masfout Branch Tel: 04 8523377
NBQ Building Fax: 04 8523093
Main Street
P.O.Box 12550 Masfout, Ajman
Fujairah Branch Tel: 09 2232100
Fujairah Insurance Co. Building Fax: 09 2232220
Hamad Bin Abdulla Road
P.O.Box 1444 Fujairah
BANKING AND BUSINESS REVIEW October 2009 61

Ras Al Khaimah Branch Tel: 07 2366444
Corniche Al Qawasim Road Fax: 07 2364470
P.O.Box 32253
Ras Al Khaimah
Philippine National Bank
Dubai Representative Office Abu Dhabi-Tourist Club Branch Tel : 02-6448227
Room 108, Al Nakheel Bldg., Zabeel Road, Karama Tel 04 3365940
P.O. Box 52357, Dubai, UAE Fax 04 3374474
E-mail: pnbdxb@emirates.net.ae
Amroussi Tillah Rasul First Vice President & Regional Representative
Rafidain Bank
Abu Dhabi Tel 02 6335882 / 3
Al Nasser Street, Glass Bldg. Fax 6326996
P.O.Box 2727, Abu Dhabi Al Nakheel Branch Tel : 07-2281127
Salah Mahid Branch Manager
Ibn Battuta Mall Branch Tel : 04-3685890
Sharjah
Sharjah Main Branch Tel : 06-5746888
Sharjah Industrial Area Tel : 06-5132666
Kalba Branch Tel : 09-2778707
Khorafakkan Branch Tel : 09-2371900
Al Ain
Al Ain Branch Tel : 03-7644222
Abu Dhabi
Khalidiya Branch Tel : 02-6666658
Ras Al Khaimah
RAK Town Branch Tel : 07-2333744
Sha’am Branch Tel : 07-2666833
Badr Branch Tel : 07-2448822
Al Mannei Branch Tel : 04-8525999
Al Rams Branch Tel : 07-2662434
Al Dhait Branch Tel : 07-2351147

Royal Bank of Canada Sharjah Islamic Bank

Dubai Representative Office Tel 04 3313196 Mohammed Abdalla Chief Executive Officer 06-5115116
API World Tower, Suite 1002, Shk. Zayed Road, P.O. Box: 3614. Telefax 04 3313960 Ahmed Saad ibrahim Chief Operating Officer 06-5115118
Umaima Zaman senior manager Mohammed Rizwan Chief Risk Officer 06-5115172
Ashwani.k.Dewitt senior manager Saeed M Ahmed Al Amiri Head, Investment Group 06-5115000
Global Private Banking Ossama Salah El Din Head, Retail Banking 06-5115339
Ashish Anand Chief Representative G . Ramkirshinan Head of Coroprate Banking Group 06-5115111
Hussam A. Abu Aisheh SVP-Chief Internal Audit 06-5115153
Mohammed Ishaq Chief Dealer 06-5115151
Mohamed Azmeer Head of Credit Division 06-5115319
RAK Bank
Eman Jasim Sajwani Head of Human Resources Group 06-5115170
Myron Britto Head, nformation Technology Div.-CIO 06-5115444
Ras Al Khaimah
Sufyan Maysara Head of Shariaa Supervision Divison 06-5115213
Head Office, Oman Street, Al Nakheel Tel 07 2281127
Branches
P.O. Box 5300 Fax 07 2283238
Main Branch - Al Brooj Avenue Mohammed Yousif 06-5115121
E-mail: nbrakho@emirates.net.ae; www.rakbank.ae
King Faisal Street Branch Abdul Salam Al Ali 06-5746805
History: Established in 1976 as The National Bank of Ras Al Khaimah. In 2003,
Ladies Branch Laila Ali Salem 06-5746807
name was changed to RAKBANK
American Unversity Branch Mohd Mousa Ali 06-5585789
Al Dhaid Branch Khalid M. Ajmani 06-8829414
H.E. Sheikh Omar Bin Saqr Al Qasimi Chairman
Industrial Area Branch Waleed Abdul Qadir 06-5397623
H.E. Sheikh Salim Bin Sultan-Al-Qasimi Director
Sharjah Expo Branch Jassim Al Awadi 06-5992502
Mr. Hamad Abdulaziz Al Sagar Director
Sharjah Buhaira Branch Osama Ahmed AlSalman N/A
Mr. Essa Ahmed Abu Shuraija Al Neaimi Director
Khorfakhan Branch Yousif M. Abdullah 09-2387490
Mr. Majid Saif Al Ghurair Director
Dibba Branch Ali Al-Abdouli 09-2442601
Mr. Ali Samir Al Shihabi Director
Kalba Branch Abdullah Bin Hikal 09-2774204
Mr. Yousuf Obaid Essa Director
Fujairah Branch Nawal Mohamed AlMaghribi 09-2244339
Mr. Graham Honeybill General Manager
Dubai Branch Mohamed Ibrahim Alghufili 04-2698322
Mr. Ian Hodges Head of Personal Banking
Sheikh Zayed Branch Maisoon Zainudin 04-3217543
Mr. Anil Sukhia Head of Corporate Banking
Al Twar Branch Maha AlBanna 04-2638335
Mr. Steve O Hanlon Chief Operating Officer
Abu Dhabi Branch Thomas P.Y. 02-6224166
Mr. Geoff Harman Head of Internal Controls
Al Ain Branch Majid Sha’abaan 03-7513200
Mr. Jose Braganza Head of Credit

Mr. Malcolm D’Souza Head of Treasury
Mr. Nigel Summersall Chief Internal Auditor Shuaa Capital PSC
Mrs. Susan Gardner Head of Human Resources
Mr. Venkat Raghavan Head of Finance Head Office Tel: 04 3303600/ 04 3199778
Dubai Emirates Towers Hotel, Level 7 Fax: 04 3303550
Deira Maktoum Branch Tel : 04-2248000 P.O. Box: 31045, Dubai, UAE.
Deira Souk Branch Tel : 04-2248000 Website: www.shuaacapital.com
Umm Hurair Branch (Bur Dubai) Tel : 04-2248000 Iyad Duwaji CEO
Sultan Business Center ( Dubai Main Branch) Tel : 04-2248000 Abeer Ayash Marketing and PR coordinator
Sheikh Zayed Road Branch Tel : 04-2248000
Emaar Business Park Branch Tel : 04-2248000 Societe Generale
Marina Diamond Branch Tel : 04-2248000
Al Quoz Branch Tel : 04-2248000 Dubai
Al Qusais Branch Tel : 04-7058444 DIFC Gate Village, Bldg. 6, 4th Floor Tel.: 04 4257500

62 BANKING AND BUSINESS REVIEW October 2009

Sheikh Zayed Road, Dubai Fax: 04 3653170 Roger Leitner Senior Representative
Website: www.socgen.com
Alain L. Tave Chief Regional Representative Dubai
Creek Tower, Office 17A, Baniyas Road, Deira 04 2240044
Peter Schaer Senior Representative 04 2220006

Standard Bank Plc - Dubai Branch (DIFC) DIFC

Gate Village, Bldg. No. 6, 5th Floor Tel.: 04 3657150
Dubai Sheikh Zayed Road Fax: 04 3657191
Emirates Tower, Office-16 B Tel 04 3300011 P.O Box 506542
P.O. Box 504904 Fax 04 3300169 Per Larsson Senior Representative
Website: www.standardbank.com
Jeffrey Rhodes General Manager 04 3300164
Kate Lunjevich Head of Compliance & Operations Union National Bank
Standard Chartered Bank Abu Dhabi Tel 02 6741600
Head Office, Salam Street, P.O.Box 3865, Abu Dhabi Fax 02 6786080
Head Office: United Kingdom Website: www.unb.ae
Dubai Main Branch Tel 04 3520455 History: Established as a Public Joint Stock Company in 1982
Head Office: Al Fardan Building, Fax 04 3526679 Nahyan Bin Mubarak Al Nahyan Chairman
Mankhool Road, Bur Dubai Mohammad Nasr Abdeen Chief Executive Officer
P.O. Box: 999, Dubai - United Arab Emirates Abu Dhabi Corniche 02 632 1600
www.standardchartered.com/ae/ City Centre 02 627 3471
Phone Banking: +9714 3138888 (24 hours) Najda 02 632 4981
Dubai Branch Hazzaa 02 641 2288
P. O. Box 999, Al Mankool Road, Dubai , UAE 04-3599550 Khalidiya 02 635 2511
Deira Branch P. O. Box 1125, Al Nasr Square, Dubai, 04-5085300 Adgas Booth 02 627 0611
Gold Souq Branch Musaffah 02 555 9111
P. O. Box 64555, Gold Souq, Dubai , UAE 04-2262699 Shahama 02 563 4600
Jebel Ali Branch Baneyas 02 582 1886
P. O. Box 16920 , Jebel Ali, Dubai , UAE 04-5085200 Al Dhafra/Madinat Zayed 08 884 8484
Sharjah Branch Al Muroor 02 444 8384
P. O. Box 5, Al Boorj Avenue, Sharjah , UAE 06-5916100 Al Ain
Hamdhan Branch Sh. Khalifa Street 03 7644551
P. O. Box 240,Al Fardan Tower ,Abu Dhabi, UAE 02-6165600 Al Jimi 03 7626240
Istiqlal Branch Dubai
P. O. Box 241, Istiqlal Street, Abu Dhabi UAE 02-6165400 Main Branch, Deira 04 2211188
Al Ain Branch Al Maktoum Street 04 2232266
P. O. Box 1240, Near Clock Tower, Al Ain, UAE 03-7056800 Khalid Bin Al Waleed Road 04 3516444
Dragon Mart Branch Al Bustan 04 2636388
P. O. Box 4166, Dragon Mart mall, Dubai, UAE 04-5085260 Jebel Ali 04 8810999
Emaar Business Park Branch Sheikh Zayed Road/Jumeira 04 3329911
P. O. Box 103669,Building 3 ,Dubai , UAE 04-5085255 Rashidiya 04 2857686
Wealth Management Center
P.O Box 999, Jumeira Beach Road, Dubai UAE 04-5085706 Ajman Central - Emirates Post 06 7425552
Fujairah 09 2222747
The Housing Bank for Trade & Finance Ras Al Khaimah 07 2286600
Sharjah 06 5686141
Abu Dhabi King Abdul Aziz 06 5746161
P.O. Box 44768 Tel 02 6268855/6270280
Fax 02 6271771 United Arab Bank
Muhanad Habashneh Representative

Union de Banques Arabes et Francaises UBAF General Management & H.O. Tel 06 5733900
Sh. Abdulla Bin Salim Al Qassimi Building, Al Qasimia St., Sharjah Fax 06 5733906
Dubai E-Mail Address uarbae@emirates.net.ae
Creek Tower, Baniyas Road, Deira Website www.uab.ae
Tel 04 2284080 History: Established 1975
P.O. Box 29885 Fax 04 2284070
Hamed Hassouna Chief Representative GCC & Yemen Bertrand Giraud General Manager 06 5733900
Awni Alami Dy. General Manager 06 5733900
Gibert Hie Asst. GM-Corporate & Retail 06 5733900
UBS AG Arif Premdjee Asst. GM-Admin. & Finance 06 5733900

Abu Dhabi
ADNIC Bldg., 5th Floor, Sh. Khalifa Street Tel 02 6275024
P.O.Box 3744 Fax 02 6272752
Website: www.ubs.com
BANKING AND BUSINESS REVIEW October 2009 63
 United Bank Limited J.Kennedy Thompson Chairman & Chief Executive Officer
Michael P. Heavener International Division
Dubai Dubai Branch:
Gargosh Bldg, Khalid Bin Waleed Street Tel 04 3552020 Chafic Haddad Vice President & Regional Manager
P.O. Box 1367, Dubai Fax 04 3514525 Carol Hampson Customer Services Representative
Email: ublgmuae@emirates.net.ae
Website: www.ubl.com.pk
Wajahat Husain Head of Middle East
Maruf Ahmed General Manager UAE

Wachovia Bank National Assoc.

Representative Office Dubai
The Atrium Centre, Khalid Bin Waleed Street, Bur Dubai 04 3556244
P.O. Box 53089 Fax 3557117
Head Office: USA

64 BANKING AND BUSINESS REVIEW October 2009