Banking & Business Review Oct 2009

DH 25 October 2009

For a ‘Dunia’ of difference

Rajeev Kakar, CEO, Dunia Finance

NEW FRONT-BENCHERSNEW FRONT-BENCHERSRelocations help to hold rentsMajor economic policy reformBeyond oil market downturn

Relocations help to hold rentsMajor economic policy reformBeyond oil market downturn

BANKING AND BUSINESS REVIEW October 2009 1

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K Raveendran [email protected]

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Vol. VI. No. 44 October 2009

K raveendran

editor’s note

Rediscovering banking

The 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 bush.

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 bureaus makes the banks’ task even more tedious. 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.

BANKING AND BUSINESS REVIEW October 20092

CONTENTS

12 COVER STORY

New bank front-benchersIncrease in number of skips worries banking sector

8 INTERNATIONAL

Crisis: one year onCompanies are settling down for a less comfortable ‘new normal’

11 FUNDS

Investment communities skepticalTwo-thirds of fund managers believe crisis will continue


20 ECONOMY

Tight credit hampering recoveryBanks competing for deposits to bridge funding gap

24 SNAPSHOT

For a ‘Dunia’ of differenceUAE’s newest financial services company promises differentiated offerings

38 FINANCERemittance industry hit by recessionSaudi Arabia remains home to region’s biggest remittance business

40 OPINIONA major economic policy reformUAE Company Law changes to lower cost of doing business

44 FROM THE GATEState Bank of India launches corporate banking 46 ENERGYBeyond oil market downturn

26 REAL ESTATERelocations help in rents holdingMovements to Dubai from Abu Dhabi and Sharjah offset

population decline

Developers have ‘learnt their lessons’

36 FOREXToo early to rejoiceProper risk management of utmost importance


ROUNDUP

Singapore 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-

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

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.

Singapore continues to be world’s Top International Meeting City


Employees 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.

Committed employees fastest to be promotedFurthermore, 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.

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.


ROUNDUP

Barclays 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-

Sahba Hadipour joins Barclays Wealth

After 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

GCC Investor Confidence Index upUAE 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.

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.


New 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

Sukuk market continues to progress: S&P

Global 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

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:• Difficultmarket conditions,which

are slowing the planned issuance of numerous sukuk

• Lack of standardization, notablywhen it comes to Shariah interpre-tation; and

• Thelowliquidityofthesukukmar-ket, which constrains investors trying to exit the market in times of turbulence or access the market looking for distressed sellers.

Islamic banks seen unaffected by crisised 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

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.

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.

Correction


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-

INTERNATIONAL

Crisis: One year on

Companies settling down for a less comfortable ‘new normal’, reveals McKinsey global survey

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.

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-

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-

A year after the global economic system nearly collapsed, many companies are finally finding ways to increase profits under the new economic conditions

zone have consistently been gloomiest about their economic situation and out-look. But the pattern for expectations is essentially the same in all regions, add-ing to the evidence from our surveys and many other sources that even the present crisis hasn’t fundamentally dis-connected the world’s economies, the report points out.

Anxious hopeNineteen 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,

though from a very low base. And in the past six weeks, expectations have risen markedly: 40 per cent of the re-spondents now think GDP will rise in 2009 (compared with 26 per cent six weeks ago), and 13 per cent expect pre-September 2008 GDP levels to return in 2010.

But, according to the report, a major-

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


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 yearsRespondents 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

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

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.

Executives remain skeptical about the economic health of their countries, with a majority favouring continued government support for economic recovery in the near term


FUNDS

Despite 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

Investment community scepticalSurvey finds nearly two-thirds of fund managers believe crisis will continue

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

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.

Do you believe that the financial crisis is now over ?

Investors across the globe are still concerned that the amount of leverage in the system that caused the original problem has not been reduced


COVER STORY

Half 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

New bank front-benchersIncrease in number of skips worries banking sectorBy Ambily Vijaykumar

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

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


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

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.”

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

‘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


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 legal remedy particularly in cases of bounced cheques. A leading law firm in Dubai confirmed that there has been an increase in the number of bounced cheque cases that they han-dled over the past year.

Segregating customers based on their default patterns is also a method used by banks to ascertain whether a default would lead to skip. So when a person defaults for the first time, the bank establishes contact with the cus-tomer to deter a future default. As part of customer profiling from the very outset, much before a default, cus-tomer spending patterns are closely monitored.

Enabling to understand the skip propensity of customers are scien-tific tools like the ‘skip score card’ that banks employ to avoid future defaults. For example, if a customer who through his spending pattern has not demonstrated a willingness to purchase jewellery suddenly goes on a jewellery purchase binge, that gives enough fodder for banks to take ‘proactive measures’.

In-house handling of collections

apart, banks also outsource their debt collection activities to recovery agen-cies that have over a period of time earned a bad reputation. “We do due diligence on the agencies and ensure that the quality of collections and customer interface of the agencies, who represent us, meet our stringent standards,” clarifies Sanjoy Sen.

Similarly, Barclay’s bank comes to the defence of its chosen agencies saying they have these agencies both within the UAE and outside but, “each one goes through a careful selection process to ensure they meet our strict internal code of conduct and reflects our collection practices.”

Overall, debt collection practices have undergone a sea change in con-junction with the downward spiral in the UAE market. A ‘soft’ negotiation with customers is now the emphasis,

banks point out. But much before the banks reach a stage where they have to track a defaulting customer, lenders continue to vouch for prudent lending norms and detailed customer profil-ing before issuing a loan. This includes verification of customers’ addresses both in the country of residence and origin and coordinating with the cus-tomers’ employers in cases where loan repayments are through salary trans-fer, among others. But the recession has thrown up an entirely new chal-lenge for banks to counter: there are of course defaulting customers, but there are also absconding customers.

Legally, in cases where the debtor is in the country, the law requires the banks to produce proper documenta-tion, including the amount collect-able as well as the debtor’s address. A summon is then served on the debtor

Banks have begun ‘redeploying’ their employees to debt recovery and are training them in the requisite skills to retrieve the millions that customers owe them


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-

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

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

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

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

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.


Delinquency 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.

Skips are a fact of life in UAELarge expat population increases risk factor, says Barclays

Despite the climbing numbers, Bar-clays says that its approach to retriev-ing money from defaulting customers is very measured. “The objective is to understand the inherent issue behind the customers’ inability to meet their commitments and try to get them fi-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 bank does not see that focus shifting any soon in the near term

minds are working on it,” says Salman.“It is a customer-centric collections

approach,” he elaborates. Entailing a focus on early collections activity, the bank lays emphasis on reviewing a customer’s specific situation, based on his ability and willingness to pay. It is

based on the initial review that a rele-vant solution that benefits both the cus-tomer and the bank is chalked out. In 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


Skips are a fact of life in UAE

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

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-

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.

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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-


The 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.

No alarm bellsWith a philosophy to underwrite the customer and not the product, Citibank says it has managed to contain default levels

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-

“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”

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

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

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.

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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.

Sanjoy Sen, Consumer Banking Head, Citibank, Middle East Region


ECONOMY

Despite 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-

StanChart economists see banks competing for deposits to bridge funding gap

Tight credit hampering recovery

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 enjoyed estimated budget surpluses of 22 per cent and 33 pre cent of GDP re-spectively in 2008.

Higher revenues in 2009 as oil pric-es continue to recover will help both governments continue comfortably

credit growth remains flat, although the reasons behind the two countries’ credit crunches are quite different, the economists point out.

They feel that the growing oil rev-enue should help to replenish deposits and gradually improve credit condi-

with their expansionary budgets – es-pecially considering that the hydrocar-bon sector contributes 81 per cent and 90 per cent, respectively, to govern-ment revenues in the UAE and Saudi Arabia. Despite the benefits of higher oil prices and their positive impact on government spending and revenues, li-quidity in both countries is tight, and

tions.Credit growth in Saudi Arabia in July

was only 0.1 per cent month on month and they feel that the credit crunch in Saudi Arabia is primarily a confidence problem.

“Deposits are higher than loans. Yet while Saudi banks have the liquid-ity and the ability to resume lending,

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


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 reached 2.567 million barrels per day and the Abu Dhabi Murban Spot Price reached $140 per barrel; as a result, rev-enues peaked at $304 million per day.

It is interesting to compare these numbers to February 2009, when both production and prices fell to the low-est levels seen in 2008-09. Saudi Arabia 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


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.

Asian recoveryThe 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 Kong, and Taiwan. Vietnam, despite its relatively high exports-to-GDP ratio, also sustained positive GDP growth due to relatively stable domestic demand. Taiwan and Thailand, where export exposure is high and domestic demand is weak, underperformed in both year or year and quarter to quarter growth terms.

Among the key GDP contributors in the second quarter, gross fixed capital formation, or fixed asset investment, was a drag on growth across Asian economies. Excluding public invest-ment, the negative contribution from investment would have been more se-vere. This implies that a rebound in business confidence is critical in or-der for the recovery to be sustainable. While the global economic environ-ment seems to be on the mend, the cor-porate sector is still very cautious about

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

sees a sustained recovery. To support the still-nascent recovery, govern-ments need to reinforce public invest-ment and boost business confidence, the bank cautions.

Central banks in the region have al-

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.

ready cut policy rates aggressively and supplied ample liquidity to the busi-ness sector. These loose monetary con-ditions are likely to persist until there is a sustained turnaround in business confidence and investment. China, In-donesia, India, and South Korea may

“Of course, many have argued that Asian central banks should look to lim-it the risk of asset bubbles via monetary tightening, but this runs the risk of choking the recovery in its infancy, in our view. Hence, alternative measures

to ring-fence the impact of financial market volatility on the real economy should be considered. In our view, hik-ing policy rates too soon would have a negative impact on both the general economy and the financial markets,” the report said.

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


SNAPSHOT

Rajeev 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

For a ‘Dunia’ of differenceUAE’s newest financial services company promises differentiated offerings

financial services sector. As the execu-tive director and founder CEO of Dun-ia, Rajeev is required to leverage all his experience, skills and ideas to create a brand out of the fledgling local player that would conform to the concepts that he is used to working with. Results so far indicate good progress.

Dunia is the offshoot of a strate-gic partnership between Abu Dhabi’s

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 in the partnership is through Fuller-

Dunia is the offshoot of a strategic partnership between Mubadala and Temasek Holdings of Singapore, two of world’s largest international government-owned investment companies, along with leading local business groups

Rajeev Kakar, CEO, Dunia Finance


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-

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

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

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.

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

Customers apply for products through a single application form, and thereafter do not need to resubmit documentation for incremental products


REAL ESTATE

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


Although anecdotal evidence suggests that a significant number of expatriates have left the UAE in the first half

of 2009, some of this decline has been mitigated by a stream of relocations from Sharjah and Abu Dhabi, resulting in a smaller net population effect than originally feared, a latest report on the Dubai property market has concluded.

According to Landmark Advisory, a 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 Residences, Palm Jumeirah, Emirates Living villas, and Green Community villas. Middle income commuters from Abu Dhabi tend to relocate to Jumeirah Lake Towers and Discovery Gardens. Relocation demand from Sharjah is primarily price-driven and centers on more affordable areas like Mirdiff, International City, and Al Qusais.

Landmark Advisory reports that there is an unexpected, albeit marginal, upsurge in rents across Dubai. At the same time, leasing inventories and listing volumes have fallen noticeably. Landlords are de-listing or forgoing listing their properties, either due to

Middle income commuters from Abu Dhabi tend to relocate to Jumeirah Lake Towers and Discovery Gardens while relocation demand from Sharjah is primarily price-driven and centers on more affordable areas like Mirdiff, International City, and Al Qusais

dissatisfaction with current rent levels, or because they are on vacation during the summer. Either way, the result is a marginal average increase in rents at a time when fundamentals should be dictating the opposite trend.

Assuming that landlords are exiting the market due to lower rents, this behavior will prevent Dubai’s leasing market from reaching a rent floor, the report points out. In an oversupplied

market. Real rents will be determined by what Dubai residents are willing to pay.

According to the Dubai Property Price Index (DPPI), during Q209, average sale prices for villas declined 24 per cent, while apartment prices fell 17 per cent. However, demand was considerably stronger for villas, which accounted for 73 per cent of all residential sales in Q209. Sale volumes

market like Dubai, rent floors are consumer driven. The momentary respite in the rent correction process, caused by a supply distortion, is only temporary and will reverse as soon as those properties come back onto the

in Jumeirah Village were particularly strong, with an average transactional price of Dh577 per square foot, which is considered excellent value.

While bid-ask spreads ranged up to18 per cent, nearly three quarters of


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-on-year, rents for villa and apartment rents have declined by 19 per cent and 12 per cent, respectively.

Since peaking in Q308, villa rents, according to Landmark, have fallen 31 per cent, while apartment rents are down 29 per cent since their peak in Q408. Relocations from Abu Dhabi, Sharjah, the Northern Emirates, and within Dubai are the primary factors driving leasing demand.

Overall demand for villas increased, as illustrated by a 25 per cent growth in leasing transactions. Two - and 5-bedroom villas experienced the heaviest rent declines, at 28 per cent and 27 per cent, respectively, with 3- and 4-bedroom villas, seeing rents fall by 18 per cent and 11 per cent, respectively.

According to the report, quantitative data and qualitative commentary indicate that demand was strongest for 3- and 4-bedroom villas, an observation supported by higher volumes and relative resilience of rents for those unit categories. The upgrading trend identified in Q109 continues, with 3- and 4-bedroom villas faring best in terms of demand. Location preferences remained unchanged from Q109, with the following areas earning highest leasing volumes: Emirates Living (40%), Mirdiff (20%) and Jumeirah/Umm Sequim (20%)

Overall demand for short-term

villa rentals remained stable in Q209, compared to Q109. However, where demand for short-term villa rentals was relatively well distributed accounting for 83 per cent of transactions.

ApartmentsOverall demand for apartment rentals increased in Q209, as demonstrated by a 20 per cent growth in leasing volumes. Transaction patterns show strong demand for 1- and 2-bedroom apartments, and weaker demand for 3- and 4-bedroom apartments. Average rents for 2-bedroom apartments declined 44% in Q209, more than any other unit-type. This was caused by strong demand for 2-bedroom apartments in more affordable developments, like International City.

The report cites transactional data to say that 3-bedroom apartment rents fell the least, with a quarterly decline of 24 per cent, due mainly to demand for larger units concentrated in higher quality buildings. Approximately 60 per cent of all leasing transactions for 3-bedroom apartments were in

Overall demand for villas increased, as illustrated by a 25 per cent growth in leasing transactions, although 2- and 5-bedroom villas experienced the heaviest rent declines, at 28 per cent and 27 per cent, respectively

the Dubai Marina/Jumeirah Beach Residences (JBR) area, while 80 per cent of the total were in premium locations, like Dubai Marina/JBR, Downtown Burj Dubai and Palm Jumeirah.

Overall, the most popular areas for apartment rentals in Q209 were Dubai Marina (26%), Jumeirah Lake Towers (19%), and International City (19%). A major difference over last quarter is the spike in leases for International City apartments. During Q109, International City accounted for only 2 per cent of all apartment rentals, but in Q2, it registered as many transactions as Jumeirah Lake Towers (JLT). Demand in International City was primarily driven by upgrades to larger apartments by tenants within the development itself; approximately 75 per cent of International City leases were for 2 bedroom apartments.

The decline in Dubai Marina’s share of total apartment leases is not symptomatic of falling demand; the absolute number of leases in Dubai Marina remained relatively stable. Instead, it indicates a relative increase in demand for other areas.


Demand for short term apartment rentals remained stable in Q209 compared to last quarter. The top areas for short term apartment rentals are Dubai Marina (41%) and Emirates Living (36%). Landmark Advisory expects a total of 22,700 residential units to be delivered by end-2009. This projection is slightly lower than estimates made last quarter, as developers continue to re-phase projects and delay construction. While the current estimate for new unit deliveries in 2010 is 40,400 units, analysts expect this to fall to 25,000-30,000 units over the next 12 months.

The report points out that for end-users in need of financing, interest rates and LTV ratios are the key factors shaping residential sales demand. Mortgage rates are between 7.75 per cent and 10.5 per cent, but currently

while building is incentivized by lower capital costs on construction loans.

According to Landmark, disjointed lending practices continue widening the supply-demand gap. In some areas, like Jumeirah and Satwa, supply is decreasing, as older buildings are demolished. While the overall effect is currently negligible, a coordinated urban regeneration plan would control aggregate supply and therefore help stabilize the market. Such a strategy would be especially beneficial in light of improved building standards, it says.

According to the report, despite immigration from other emirates, Dubai’s total population may still decline. Analysts expect more out-of-work expatriates to leave the UAE by summer’s end, but many are currently staying in a final attempt to find new employment. As such, the reported future school enrollment figures can be misleading, they say. Many parents may have chosen to 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 point out.

They say that looking to 2010, actual rent levels will depend on multiple factors, including the real volume of unit deliveries and net demand growth. While relocation trends are currently propping up the leasing market, its long-run performance will be defined by Dubai’s ability to achieve

net job creation. This will depend on macroeconomic performance and government policies, both of which are impossible to predict.

Signs continue to indicate probable sale price stabilization in Q409, which, could be the beginning of a price floor. However, this is highly dependent on macroeconomic, financial, and real estate industry policies and trends. Based on historical trends, sale volumes

are likely to dip during August and September, but then pick up again in the fourth quarter.

Landmark feels that the strong demand for villas is likely to continue from investors and end-users. Based on current supply projections, villas will constitute less than 20 per cent of total residential unit deliveries in 2009, and even less in 2010-2011. Given these

The market is entering a period of massive over-supply amid a pattern of demand destruction, which will likely last for quite some time. During Q209, office sale prices declined 12 per 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,


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 likely to support rent levels, keeping them from falling too sharply. While it is difficult to call a bottom, there is some evidence to suggest that rents in specific areas may stabilize in Q409. Ultimately this will depend on the supply-demand dynamics prevailing in each location, the report says.

Referring to Dubai’s commercial office market, the report says the market is entering a period of massive over-supply amid a pattern of demand destruction, which will likely last for quite some time. During Q209, office sale prices declined 12 per 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. Corporate restructuring, layoffs, frozen recruitment, and delayed expansion have changed short-term office demand characteristics, making them difficult to model accurately into the medium- to long-term The vast majority of companies have frozen all recruitment and expansion plans for the short- to medium-term. Redundancies, corporate restructuring, and cost-

cutting measures have caused average office space consumption to decrease significantly.

The report says that of the little demand that currently exists, most focuses on smaller units. Recently delivered office buildings in Dubai are finding it increasingly difficult to rent out entire floors or larger units. Smaller offices are absorbing faster. In general, vacancy rates in newer buildings will remain higher for longer periods, as absorption rates continue to fall.

While inquiries into new commercial space do continue, most companies are waiting until early 2010 before making

any decisions on acquiring new office space. Furthermore, pre-fitted out units are increasingly attractive to potential new tenants, due to lower setup costs. Fitted out units in new buildings retain a considerable premium over shell & core.

In the short-term, corporate restructuring, recruitment plans, and finances will remain an important factor affecting office space consumption. Several prominent international surveys show that most chief operating executives of large multi-nationals intend to continue reducing headcounts throughout 2009. At the same time, a

Transactional data indicates that 3-bedroom apartment rents fell the least, with a quarterly decline of 24 per cent, due mainly to demand for larger units concentrated in higher quality buildings


number of regional, industry-specific surveys indicate likely resumption of recruitment among banking, investment, and oil & gas professionals, specifically in the UAE.

Shell & core units are becoming less popular, as tenants look for ways to cut capital expenses. However, this trend is not binary; certain tenant profiles continue to prefer shell & core delivery, although this segment is now smaller than ever before. To maximize absorption, landlords will have to be increasingly creative regarding leasing terms and incentives, including free 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 of the problem. When Dubai had a shortage of office space, and saw ever-escalating rents and prices, developers churned out commercial development plans without considering aggregate trends.

Dubai office prices are likely to decline further, as additional supply enters the market. Given the prevailing market uncertainty and continuing credit scarcity, demand is currently minimal and likely to remain low. The main source of sales demand will come from companies with long-term

commitments to the region.The commercial component of the

current real estate cycle is likely to be more protracted than for the residential segment. Changes in lending policies will be a significant factor defining the length of the cycle. However, given the uncertainty in the local office market, banks are unlikely to improve lending policies significantly in the short term. Low LTVs and the high cost of borrowing are likely to continue restricting demand.

For those companies with a long-term perspective and available

financing, the next 12-18 months will provide excellent opportunities to acquire inexpensive office space. Of course, this will depend on the financial situation of individual companies.

Leasing rates are likely to keep falling. As vacancy rates increase and absorption rates decline, landlords will be forced to implement competitive pricing strategies. Owners should be offering creative incentives, like compensation for moving costs. The short- to medium-term will be an excellent time for companies to consider upgrading office space. Currently,

Grade A offices in prime locations are available for Dh2,368 – 2,690 per square meter in some cases already fitted-out with luxurious finishings.

Referring to the Abu Dhabi market, the report says that while there are few transactions taking place in Abu Dhabi, the rate of real price declines appears to be slowing, for the time being. Average aggregate listing prices regained some stability in Q209, after declining sharply between Q308 and Q109. The slowing rate of price correction is mainly a consequence of significant adjustments having already played out during Q408

and Q109, as well as growing resistance by sellers to lowering their prices.

The Q209 average price declines affecting Abu Dhabi’s main freehold master developments have been relatively homogenous at approximately 10-12 per cent. The one exception is Hydra Village, whose prices fell only 7 per cent, on average. Generally, these declines are due to the withdrawal of high-priced properties from the market by sellers unwilling to lower prices. The departure of many high-priced units brought down the overall listing price average.


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.

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

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.


Global 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

Developers have ‘learnt their lessons’Follow examples of survivors in other markets to build differentiated capabilities

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

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.


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.

It is therefore the perfect time to review the corporate strategy of the new entities, enlightened by the new market conditions and the analysis of the growth path of most successful real estate developers worldwide such as Hines in the US, Hochtief and Nexity in Europe, or Capitaland in Asia. The time of endless growth for opportunistic projects driven solely by land and cash availability is over. Developers will compete for buyers, and they need to define a convincing strategy why buyers should buy from them and not from the other developer.” says Olivier Laroche, senior manager with AT Kearney Middle East.

Mergers in the real estate sector typically fall into two categories; merging of similar companies, or

merging of complementary companies. The reasons to merge two similar companies are often to achieve synergies and operational excellence or to balance risks and diversify. While mergers focusing on achievement of operational excellence have not been common in the region, mergers focusing on balancing of risks and portfolio of assets are especially pertinent for master developers with Dubai interests, who are driven by project and investment portfolio rationalization.

The other option for companies is to use diversification along the value chain. Mergers between complementary players aiming to integrate the chain both up and downstream have occurred in the region. Most successful large western developers including Hochtief and Bouygues Group, have in the past

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


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

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. 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

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 international investment in real estate, 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.

Mergers in the real estate sector typically fall into two categories; merging of similar companies, or merging of complementary companies


FOREX

The 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

Too early to rejoiceProper risk management of utmost importance, says broker

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

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

Yaser Rawashdeh, senior sales trader at Saxo Bank, UAE

By Ambily Vijaykumar


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-

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.


FINANCE

Saudi 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

Remittance industry hit by recessionSaudi Arabia remains home to region’s biggest remittance business

(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.

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 as more people sought employment in these countries. Nonetheless, the rate of increase of remittances from Gulf countries is slowing but is still positive. Pakistan and Bangladesh for instance have witnessed accelerated growth of remittances in 2009. This is in part due to the fact that the GCC countries, a major destination for Asian migrants, have not significantly reduced hiring migrants. Besides that, other reason for growth in remittances to these coun-tries was due to falling asset prices, rising interest rates differentials and a depreciation of the local currency of these countries against GCC curren-cies, which are pegged to the dollar (except Kuwait) attracted investments from migrants.

While the impact of the global fi-nancial crisis on the GCC countries has definitely not been as severe as in the west, recent news events and deeper analysis into the numbers of the banks indicates they have not come out com-pletely unscathed. Credit shrinkage, de-ferment of projects, significant number of layoffs across the board and a sig-nificant number of expatriates leaving the country made headlines for the six month period between October-08 and March-09. This in turn is likely to im-pact the remittances from these coun-tries significantly in 2009.

As per the World Bank forecast, the remittances outflow will slowdown from GCC due to fall in oil prices lead-

ing to overall slowdown in expansion activities, layoffs from private and pub-lic sector companies due to weak out-look. The overall sentiment has turned pessimistic resulting in job losses, the expatriates currently working have ei-ther witnessed a salary cut or a job cut resulting in lower remittances as com-pared to earlier.

As per the latest forecast made by the World Bank the remittances flow to de-veloping countries are expected to drop by 7-10 per cent globally from $328 bil-lion in 2008. The World Bank forecasts a decline of around 9 per cent in remit-tances from GCC due to decline in eco-nomic activity and higher cost of living in these countries.

However, there are emerging signs of a bottoming out and the economies reviving. According to the revised pro-jections by the World Bank, global eco-nomic growth is expected to rebound to 2 per cent in 2010 and 3.2 per cent by 2011 after a contraction of 2.9 per cent expected for 2009. With oil prices ris-ing and the investor confidence reviv-ing there are strong sign of the GCC economies on the path of recovery. Glo-bal Investment House anticipates all this would impact the remittances from the GCC positively and expects the year 2010 shall witness a positive growth rate due to a lower base and faster economic growth as projected by World Bank.

(From a report of Global Investment House)


OPINION

The 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

A major economic policy reform

UAE Company Law changes to lower cost of doing business

By Nasser Saidi

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 • DealingwithConstructionPermits• Employing Workers-Registering

Property• GettingCredit• ProtectingInvestors• PayingTaxes• TradingAcrossBorders• EnforcingContracts• ClosingaBusiness

The amendment to the UAE com-pany law addresses one aspect of the

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%.


Similarly, after Tunisia reduced its re-quirements, new company registra-tions increased by 30% between 2002 and 2006.

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%. Similarly, after Tunisia reduced its requirements, new company registrations

increased by 30% between 2002 and 2006.

In the WB doing business 2010 report the UAE is in the top 10 reformers, an important

achievement. The overall global ranking of UAE has improved to 33 in 2010 from 47 in

last year’s report. The changes have been made in broadly three categories:

Starting a Business: The UAE’s rank improved from 118 to 44 as a result of scrapping

the minimum capital requirement and a reduction in number of days and procedures

StartingaBusiness Economy

Year Rank Procedures(number)

Time

(days) Cost(%ofincomeper

capita) Min.capital(%ofincomeper

capita)

UAE 2009 118 9 18 8.2 311.9

UAE 2010 44 8 15 6.2 0

Dealing with Construction Permits: The cost has been reduced to half, and reductions in

procedures and time as well; this improved the UAE’s ranking from 54 to 27.

DealingwithConstructionPermits Economy

Year Rank Procedures(number) Time(days) Cost(%ofincomepercapita)

UAE 2009 54 21 97 63.9

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.

TradingAcrossBorders Economy

Year Rank Documentsto

export

(number)

Timeto

export

(days)

Costtoexport

(US$per

container)

Documentsto

import

(number)

Timeto

import

(days)

Costtoimport

(US$per

container)

UAE 2009 13 5 9 618 7 9 587

UAE 2010 5 4 8 593 5 9 579

Through the company reform act and other measures, the UAE has improved its

rankings. However, the UAE should aim at additional reforms with the overall objective

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

friendly.

We have run three simulation scenarios of the effect of additional reform measures on the

UAE’s ranking in the WB league tables on the Ease of Doing Business.















Time



capita)

UAE 2009 118 9 18 8.2 311.9

UAE 2010 44 8 15 6.2 0





UAE 2009 54 21 97 63.9

UAE 2010 27 17 64 30.7






export

(number)

Timeto

export

(days)

Costtoexport

(US$per

container)

Documentsto

import

(number)

Timeto

import

(days)

Costtoimport

(US$per

container)

UAE 2009 13 5 9 618 7 9 587

UAE 2010 5 4 8 593 5 9 579




friendly.

















Time



capita)

UAE 2009 118 9 18 8.2 311.9

UAE 2010 44 8 15 6.2 0





UAE 2009 54 21 97 63.9

UAE 2010 27 17 64 30.7






export

(number)

Timeto

export

(days)

Costtoexport

(US$per

container)

Documentsto

import

(number)

Timeto

import

(days)

Costtoimport

(US$per

container)

UAE 2009 13 5 9 618 7 9 587

UAE 2010 5 4 8 593 5 9 579




friendly.



In the WB doing business 2010 re-port the UAE is in the top 10 reformers, an important achievement. The overall global ranking of UAE has improved

to 33 in 2010 from 47 in last year’s re-port. The changes have been made in broadly three categories:

Starting a Business: The UAE’s rank improved from 118 to 44 as a result of scrapping the minimum capital requirement and a reduction in number of days and procedures

Dealing with Construction Permits: The cost has been reduced to half, and reductions in procedures and time as well; this improved the UAE’s ranking from 54 to 27.

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.

Through the company reform act and other measures, the UAE has improved its rankings. However, the UAE should aim at additional reforms with the overall objective of improving the ease of doing business; of making the UAE even more business friendly.

We have run three simulation scenarios of the effect of additional reform meas-ures on the UAE’s ranking in the WB league tables on the Ease of Doing Business.

The countries implementing such reforms have seen some of the biggest spikes in new company registrations


Policy Reform Simulation 1: Reducing Time & Procedures of Starting a Business

Ease of Doing Business

Starting a Business

Economy RANK Percentile Procedures (number)

Time (days)

Cost (% of income per capita)

Min. capital (% of income per capita)

Ease of starting a business (percentile)

Ease of starting RANK

Singapore 1 0.07 4 4 0.71 0.0 0.12 3 New Zealand 2 0.08 1 1 0.39 - 0.00 1 United States 3 0.12 6 6 0.71 - 0.06 2 Hong Kong,

China 4 0.13 5 11 1.98 0.0 0.19 4

Denmark 5 0.16 4 6 - 40.1 0.21 5 UAE (2009) 47 0.41 9 18 8.20 311.9 0.53 118 UAE (2010) 33 8 15 6.20 - 44

UAE

(Additional

reforms)

29 2 3 0.53 - 2

The first policy reform simulation was to reduce the time and procedures of Starting a

Business to the average of the top three countries for this sub-category (New Zealand,

Canada and Australia). As a result, the rank of UAE under Ease of Starting a Business

would improve to 2 and the overall rank in Ease of Doing Business would move up to 29

from the current 33.

Another quick win is reforming dealing with licenses, with construction permits.

“Dealing with Construction Permits” is an important category for the UAE, given its

large real estate sector. Reducing the number of procedures (from 17 to 10), time and cost

to the average levels of the top-ranked in this sub-category raises the ranking of UAE to

30.

PolicyReformSimulation2:DealingwithConstructionPermits


Dealing with Construction Permits


Time (days)


Ease of dealing with licenses (percentile)

Ease of licenses RANK

Singapore 1 0.07 11 38 21.22 0.07 3 New Zealand 2 0.08 7 65 25.81 0.07 3

United States 3 0.12 19 40 13.11 0.23 27

Hong Kong, China 4 0.13 15 119 18.71 0.21 21

Denmark 5 0.16 6 69 60.94 0.11 8

UAE (2009) 47 0.41 21 97 63.90 0.31 54

UAE (2010) 33 17 64 30.70 27

UAE (Additional

reforms) 30 10 55 15.17 1



Starting a Business


Time (days)





Singapore 1 0.07 4 4 0.71 0.0 0.12 3 New Zealand 2 0.08 1 1 0.39 - 0.00 1 United States 3 0.12 6 6 0.71 - 0.06 2 Hong Kong,

China 4 0.13 5 11 1.98 0.0 0.19 4

Denmark 5 0.16 4 6 - 40.1 0.21 5 UAE (2009) 47 0.41 9 18 8.20 311.9 0.53 118 UAE (2010) 33 8 15 6.20 - 44

UAE

(Additional

reforms)

29 2 3 0.53 - 2

The first policy reform simulation was to reduce the time and procedures of Starting a

Business to the average of the top three countries for this sub-category (New Zealand,

Canada and Australia). As a result, the rank of UAE under Ease of Starting a Business

would improve to 2 and the overall rank in Ease of Doing Business would move up to 29

from the current 33.

Another quick win is reforming dealing with licenses, with construction permits.

“Dealing with Construction Permits” is an important category for the UAE, given its

large real estate sector. Reducing the number of procedures (from 17 to 10), time and cost

to the average levels of the top-ranked in this sub-category raises the ranking of UAE to

30.

PolicyReformSimulation2:DealingwithConstructionPermits


Dealing with Construction Permits


Time (days)




Singapore 1 0.07 11 38 21.22 0.07 3 New Zealand 2 0.08 7 65 25.81 0.07 3

United States 3 0.12 19 40 13.11 0.23 27

Hong Kong, China 4 0.13 15 119 18.71 0.21 21

Denmark 5 0.16 6 69 60.94 0.11 8

UAE (2009) 47 0.41 21 97 63.90 0.31 54

UAE (2010) 33 17 64 30.70 27

UAE (Additional

reforms) 30 10 55 15.17 1

The first policy reform simulation was to reduce the time and procedures of Starting a Business to the average of the top three countries for this sub-category (New Zealand, Canada and Australia). As a result, the rank of UAE under Ease of


Starting a Business would improve to 2 and the overall rank in Ease of Doing Business would move up to 29 from the current 33.

Another quick win is reforming dealing with licenses, with construction permits. “Dealing with Construction Permits” is

an important category for the UAE, given its large real estate sector. Reducing the number of procedures (from 17 to 10), time and cost 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


What if both sets of the above-mentioned policy reforms are undertaken? Then the

UAE’s overall Ease of Doing Business global ranking dramatically improves from

today’s 33 to 24.

PolicyReformSimulation3:StartingaBusiness&DealingwithConstructionPermits


Starting a Business Dealing with Licenses


Time (days)





Procedures (number)

Time (days)




Singapore 1 0.07 4 4 0.71 0 0.12 7 11 38 21.22 0.07 3

New

Zealand 2 0.08 1 1 0.39 - 0 1 7 65 25.81 0.07 3

United

States 3 0.12 6 6 0.71 - 0.06 5 19 40 13.11 0.23 27

Hong Kong, China

4 0.13 5 11 1.98 0 0.19 8 15 119 18.71 0.21 21

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 (Additional reforms)

24 2 3 0.53 - 2 10 55 15.17 1

The amendment and reform of the UAE Company law is a major economic policy reform

measure that will lower the cost of doing business, provide incentives for new company

formation and registration –particularly for the SME sector- and improve the overall

investment climate. The timing of the reform is also propitious as it provides a needed

stimulus to business activity helping the country recover from the effects of the global

‘Great Recession’. However, this is also the time to take additional reform measures to

stimulate new business formation, including a one stop shop and online registration

procedures, dealing with construction permits, and other simplified registration

formalities. More important would be the deeper structural reforms aiming at better

enforcement of contracts and reforming insolvency law and procedures aiming at easing

the costs of Closing a Business. We should aim at easing both entry and exit of

businesses reducing cost and minimising uncertainty.

The writer is Chief Economist with Dubai International Financial Centre

What if both sets of the above-mentioned policy reforms are undertaken? Then the UAE’s overall Ease of Doing Busi-

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

ness global ranking dramatically improves from today’s 33 to 24.

The amendment and reform of the UAE Company law is a major economic policy reform 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. The timing of the reform is also propitious as it provides a needed stimulus to business activity helping the country recover from the effects of the global ‘Great Recession’. However, this is also the time to take additional reform measures to stimu-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


Global 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

FROM THE GATE

State Bank of India’s DIFC unit launches corporate banking

200-year old bank has 12,100 offices all over the world and more than 150 million customers

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

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

Recessions 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-

Beyond oil market downturnReport says oil companies can gain competitive advantage by thinking long term

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

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 an all-time high of more than $147 and analysts forecasted prices of over $200 by December 2008

17 months from peak to trough, and the average is just 10 months for the 10 re-cessions since the end of World War II.

It takes at least seven to nine years for energy exploration efforts to bear fruit in the form of oil or gas coming on stream. What really matters for these investments is the price at which future oil or gas will be sold. Energy prices tend to revert over time to some long-term mean and this more stable and predictable than the day-to-day spot price.

A realistic picture of long-term pe-troleum price relies on long-term pro-jections of supply and demand. Long-

term demand is almost as predictable as short-term prices are erratic. Global oil and gas consumption rates have displayed a constant upward trend for more than 30 years, and the trend is ex-pected to continue at roughly the same pace in the future. This leads to an oil demand forecast of about 100 million barrels per day by 2020, up from today’s 85 million or so, plus 65 million bar-rels of oil equivalent (BOE) per day of natural gas, up from close to 55 million today. To meet this demand, more than half of the total production by 2020 will need to come from new investments.

Today there are more than 1.2 tril-

lion barrels of proven oil reserves in the world (including about 800 billion in cheap reserves in the Middle East and North Africa). Yet the long-term supply curve is a lot tighter than these figures suggest, because only so much oil (or gas) per day can be pumped. “Newer, more expensive hydrocarbon sources will have an increasingly large role to play - given the forecast demand and available sources, the long-term central equilibrium price for the next 10 to 15 years will probably be around $60 to $80 a barrel,” Chehade stated.

There is a very high probability of another big price spike within the next decade. Today, in addition to low oil prices, companies are facing a global liquidity shortage. It is likely that many companies will reduce their explora-tion and production investments, even though more investment is required to meet future demand; which will likely prompt a massive price increase and


reward those who can keep their heads cool enough to take the long-term view.

OpportunityThe 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

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

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 Non-stop banking service: 04 3080000 (Toll free)

Dubai Branch:Colin Macdonald Country Executive 04 5062601Burhan Khan Head of Consumer Banking 04 5062801 Hassan EI Nahas Head of Private Clients 04 5062301Vishnu Deuskar Head of Global Market 04 5062551Padmanabh Mishra Head Commercial Client Coverage 04 5062701

Abu Dhabi Tel: 02 6963000Corner of Hamdan and Salam Streets Fax: 02 6963001P.O. Box: 2720, Abu Dhabi, United Arab Emirates

Sharjah Tel: 06 5594900Abdul Aziz Al Majid Building, King Faisal Street Fax: 06 5591009P.O. Box: 1971, Sharjah, United Arab Emirates

Abu Dhabi Commercial Bank

Head Office: Abu Dhabi Mall P.O. Box 939, Abu Dhabi Tel: 02 6962144 Fax: 02 6450384

Branches Al SalamOmar S. Al Tamimi Manager 02 6962486, 02 6666311Khalidiya 02 6669910Al BayahKhaled Al Mannaei Manager 02 8721300Al DhafraYaqoob Al Dosari (Edgar Ruaya / GM in charge) 02 5851030Al MuroorRamzi Al Rimawi Manager 02 4444216Al ShahamaHazim Al Suwadi Manager 02 5633424GHQEssam Husain Al Habshi Manager 02 4415626Tourist Club AreaHadia Dalloul Manager 02 6725178HamdanAbdalla Al Jaberi Manager 02 6335820Sh. Rashed RoadMohamed Al Dosari Manager 02 6213237

CornicheGhassan Kandalaft Manager 02 6275111 MussafahFiras Al Eid Manager 02 5544272Baniyas Town Manager Hamad Salem Rashid Al Junaibi Manager 02 5821550Ruwais Mohammad Ismail Manager 02 8775015Zayed TownDhababa Rashed Obaid Al Mansouri Manager 02 8846180GayathiHaraba Al Mazroui Manager 02 8742155Al BayaOttakath C Mohamed Kutty Manager 02 8721300Al Ghuaifat Pay OfficeOttakath C Mohamed Kutty Manager 02 8723499Al Ain Main BranchMohd. Al Darmaki Manager 03 7543413Al Ain Khalifa StreetSalim Al Darmaki 03 7511322Sinaeyah (Indust. Area)Salem Ahmed Manager 03 7210064Al WaganNayla Al Ameri Manager 03 7352100Al YaharKhamis Sulum Abdun Khamis Manager 03 7815600Al HayerKhalid Omar Eissa Manager 03 7322557RiggahMudhi Al Haj Manager 04 2956969KaramaOmran Abbas Taimour Manager 04 4055135MinaHosam Al Refay Manager 04 3984444Naif Ms. Seema Mohd. Malk Manager 04 6024110Al EttihadSalem Ali Khammas Jammahi Manager 04 3615151 ext. (202)Al QusaisFahd. M. Baroudi Manager Manager 04 2634244Sharjah MainMs. Wissam Moaded Manager 06 5737737Farah Al Ulama Manager 06 5566169Abdulla Al Shamsi Manager 06 5433300Abdullah Fayez Al Shamsi Manager 06 5432006Ajman


Yasmeen Alabid Manager 06 7442111RAKAisha Ahmed Ghareib Manager 07 2335500FujairahMohdAli Hassan Mohd Al Bloushi Manager 09 2224324 DibbaRania Yousef Manager 09-2446700Contact CentreAhmed Abdo Manager 800-2030

Eissa Al Suwaidi Chairman Eirvin Knox CEO Ala’a Eraiqat Deputy Chief Executive OfficerThirry Bardury Head Operations & ITDeepak Khullar Chief Financial OfficerSeumas Gallacher Head - Investment BankingZaki Hamadani Head - legal & Special AssetsSultan Al Mahmoud Head - Human ResourcesAbdirizak Ali Head - Internal AuditAlok Kakar Head - Corporate Finance DivisionRobert Price Head - CreditWalter Pompliano Head - Financial Institution & Intl. DivisionHoward Gaunt Head - Business BankingJasim Al Darmaki Head - Government RelationsArup Mukhopadhyay Head - Retail BankingAhmed Barakat Head - Wealth ManagementYaser Mansour Head - Corporate Communications, Director of Chairman’s Executive Office & Senior Vice PresidentSimon Copleston General Counsel & Board Secretary

Abu Dhabi Islamic Bank

Head Office: Abu Dhabi Najda Street, P.O. Box 313, Abu Dhabi UAE Tel 02 6343000Email: [email protected] Fax 02 6342222Website : www.e-adib.com

Established on 20th May 1997 as a Public Joint Stock Company through the Amiri Decree No. 9 of 1997. The bank commenced commercial operations on 11th November 1998, and was formally inaugurated by His Highness Sheikh Abdulla Bin Zayed Ak Nahyan, UAE Minister of Information and Culture on 18th April 1999. All contracts, operations and transactions are carried out in accordance with Islamic Shari’a principles. Branches

Abu Dhabi Main 02 6168118Aref Ismail Al Khouri Manager Mushref 02 4455177Ezzeldin Nagdy Manager Madinat Zayed 02 6100821 Mohamed Yousef ManagerKhalidiya Ladies Abu Baker Omar Manager Sheikha Al Suwaidi Manager Khalifa Street 02 6100590Omar Aqel Manager

Al AinSinaiya 03 7211777Omar M. Basheer ManagerClock Tower Branch 03 7076444Ali Abdullah Al Manager Dhaheri Al Jimi Mall Branch 03 7633500Ahmed Abdullah Manager Al Boloshi

DubaiAl Twar 04 2611116Ibrahim Alqasser ManagerOpposite Deira City Center 04 3973333Hashim Al Zarooni Manager Shk. Zayed Rd. Mohamed Hussein Zainal Manager 04 4033400

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

Al Ahli Bank of Kuwait - Dubai

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

American Express Bank Ltd

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

Arab African International Bank

Head Office: Cairo, Egypt.Regional Head Office Dubai Tel: 04 3937773ART Tower, Al Mina Street, Opp. Ports & Customs Bldg., Bur DubaiP.O. Box 1049, Dubai Fax: 04 3937774Swift ARAIAEAD, E-mail: [email protected]: www.aaib.comHistory: Established 1964 as the first Arab joint venture bankHemant Jethwani General Manager UAE Dubai Branch: Key ExecutiveAlaa Sobhy Head of syndication and assert tradeAbu Dhabi Tel: 02 6323400; Fax: 02-6216009Arab Monetary Fund Bldg, Corniche Street, P.O. Box 928, Abu DhabiKey ExecutiveHani Hassan Branch Manager

Arab Bank

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


owned by about 4,000 shareholders from all over the world, mainly Arab countires. The Group has a diversified network of over 350 branches worldwide. Abdul Majeed Shoman ChairmanAbdel Hamid Shoman Deputy Chairman & Chief Executive OfficerU.A.E Area Management Mohammad A . Azab Senior Vice President - DubaiSaed Jarallah Senior Vice President – Abu DhabiAladin Al-Khatib Treasury HeadHatem Kurdieh Corporate Banking HeadTareq HajHasan Retail Banking HeadMohammad Mattar Central Operations Unit ManagerHani Hirzallah Regional Manager Human Resources /Gulf RegionTareq Ibrahim Head of Human ResourcesAmmar Al Khayyat Financial ControllarGhassan Nimer IT Center Regional ManagerJihad Ghoury Legal CounselSanjay Malhotra Global Head of Marketing & Product DeveleopmentNasser Maghtheh Senior AuditorAnan 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

Deira 04 2221231Mohammed Elayyan Branch Manager

Abu Dhabi Al Naser Street 02 6392225 Nasser Serries Branch Manager

Al Ain 03 7641328Colock Tower roundabout, Al Ain StreetMaen Jarrar Branch Manager Sharjah Al Arooba Street 06 5618999Maher Al Debis Branch Manager

Ajman 06 7422431Rashid Bin Humaid Street Modhar Kherfan Branch Manager

Ras Al Khaimah 07 2288437Oman Street, Al Nakheel Ali Zatar Branch Manager

Fujairah Sheik Zayed Street 09 2222050Abdel Hamid Qamhieyah Branch Manager Call Centre Within UAE 800 40 43Outside UAE 009714 2953889

Arab Bank for Investment and Foreign Trade

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

Mir Asif Ali Mgr - Treasury Dept 02 6721600Saidi Zoubir Head of Business Dev. Dept. 02 6723763Tareq S’adi Al Darras Mgr - Credit Risk Management 02 6720886Issam Abugisseisa Legal Advisor 02-6791642Abu Dhabi Main, Sh. Hamdan Street 02 6721900Noora Ebrahim Manager -Sales & Services 02 6780423Souk Branch 02 6269500Al Masaood Building - Khalifa Street, Abu DhabiNasser Rashed Al Ali Manager 02 6275087

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

Dubai 04 2220151Arbift Tower, Baniyas Street, DeiraAdel Mohd. Khalfan Manager 04 2282071Al Bagh

Sharjah King Faisal Street 06 5744888Fatima Al Muani Manager 06 5747766

Arab Banking Corporation

Abu Dhabi Office 02 6447666Office, 10th Floor, Abu Dhabi Trade Centre, Abu Dhabi MallP.O.Box 6689, Abu Dhabi Fax 02 6444429Mohamed El Calamawy Chief Representative

Arab Emirates Investment Bank PJSC

Head Office: Cairo Egypt Tel: 04 3937773Regional Office: Dubai Fax: 04 3937774ART Tower, Al Mina Road, Opposite Maritime City, Bur DubaiP.O Box 1049 DubaiSWIFT: ARAIAEADE-mail: [email protected]: www.aaib.com

Management-UAEHemant Jethwani General ManagerAlaa Sobhy Head of Syndication and Asset TradeMahendran Raman Head of Operations and LiabilitiesAbu Dhabi Branch Tel: 02 6323400 Fax: 02 6216009Arab Monetary Fund Bldg., CornicheP.O Box 928, Abu Dhabi

BLOM Bank France SA

Dubai Tel 04 2284655Al Maktoum Street, Deira Dubai, P.O. Box 4370 Fax 04 2236260email: [email protected]: www.blombank.aeBassem Ariss Regional Manager 04 2222355Samir Hobeika Branch Manager 04 2214648Michel Germanof Manager Corporate Credit UAE 04 2242067 Mohammad M Ansari Treasurer 04 2224812

Sharjah

PO Box 5803, Al Buheira Tower, Al Buheira Corniche Tel 06 5736100 Fax 06 5736080 Mokhtar Kassem Branch Manager


Bank Muscat

Dubai Representative Office Dubai Creek Tower, Baniyas Road, Deira Tel 04 2222267P.O. Box 29969, Dubai Fax 04 2210115Lawrence P. Monteiro Chief Representative

BBK BSC

Dubai-Representative Office 04 2210560Dubai Creek Tower Office 18A, Baniyas Road, DeiraPO Box 31115 Tel 04 2210560 / 70 Fax 04 2210260 Website www.bbkonline.comHistory: Established on 16th March, 1971

Murad Ali Murad ChairmanKarim Bucheery CEO & GMSh. Rashed Al Khalifa Deputy General Manager

Dubai ReP-Office: CK Jaidev Head of Representative Office Rajiv Kapoor Relationship Manager & Loan Syndications Wafa Al-Alwan Relationship Manager & Loan Syndications

Bank of Baroda

Dubai Zonal Office: Sheikh Rashid Bldg.Ali Bin Abu Talib Street, Bur Dubai,P.O.Box 3162, Dubai Tel: 04 3531628E-mail: [email protected] Fax: 04 3530839UAE Website: www.bankofbarodauae.aeHistory: Established in 1908, July 20Nationalized on July 19, 1969

Senior Management & Personnel – Baroda Corporate Centre, Mumbai, India.Dr. A.K. Khandelwal Chairman & Managing Director Mr. V. Santhanavanam Executive DirectorMr. S.C. Gupta Executive Director

Zonal Office, Dubai:Ashok K. Gupta Chief Executive, (GCC operations) 04 3538093L.J. Asthana Senior Manager (Credit) 04 3531628J.K.Jais Senior Manager (Inspection) 04 3531628P.M. Bondarde Senior Manager (Credit) 04 3531628Sujeet Bhale Senior Manager (Syndication) 04 3531628Rajesh Jain Senior Manager (Internal Auditor) 04 3531517

Abu Dhabi:Al Halami Centre, Sheikh Hamdan Street 02 6330244/ 6322000K. Venkateshwarlu Chief Manager 02 6344302K.Shridhar Senior Manager (Credit) R.G. Shanker Senior Manager (Operations)

Al Ain: Clock Tower, Round about, Planning Street 03 7519880Sarabjeet Singh Senior Branch Manager 03 7659554Vijay Kumar Goel Senior Manager (Operations)

Dubai: Sheikh Rashid Bldg.Ali Bin Abu Talib Street,

Bur Dubai, 04 3531955Vinod Malhotra Asst. General Manager 04 3534516Shekhar Tripathi Senior Manager (Operations) 04 3530166M.K. Patel Senior Manager (Credit) 04 3534080Beena Desai Manager (India Desk) 04 3537586Retail banking Shoppe, DubaiMr. Saravana kumar 04 3534390Mr Ketan Dave 04 3540041Mr Vinay Rathi 04 3540340

Deira Kuwaiti Bldg., Al Rigga, Baniyas Street, Deira 042287949Rajiv K. Garg Chief Manager 04 2286516Yuvraj Singh Senior Manager (Operations) 04 2286216P.K. Gambhir Senior Manager (Credit) 04 2292181R.K. Madaan Manager 04 2292181

Ras Al Khaimah:Al Qasimi Bldg, Oman Street, Al Nakheel 07 2229293P.K.Bhargav Senior Branch Manager 07 2229293

SharjahAl Mina Road 06 5684231/ 5686232M.S. Chouhan Asst. General Manager 06 5683273D. Pathania Senior Manager (Credit) 06 5684231D. Guha Senior Manager (Operations) 06 5686232

Bank of New YorkRepresentative office Tel 02 6263008Suite 402, The Blue Tower, Sh. Khalifa Bin Zayed Street Fax 02 6263308P.O.Box 727, Abu DhabiHani Kablawi Managing Director

Bank of Sharjah

Sharjah Head Office – Al Hosn Avenue Tel 06 5694411 P.O. Box 1394, Sharjah Fax 06 5694422E-mail: [email protected]: Established on 22nd December 1973 with Banque Paribas, Paris

Ahmed Abdulla Al Noman ChairmanVarouj Nerguizian General ManagerMario Tohme Deputy General ManagerFadi Ghosn Deputy General ManagerAli Burheimah Commercial ManagerMohammed Asghar Senior Operations ManagerFares Saade Senior ManagerMichel Germanos Risk ManagerJayakumar Menon Finance ManagerBerj Tossounian Credit Manager - SharjahWahide Assaad IT ManagerJihad Aoun Investment ManagerSamer Hamed Audit & Control Manager Abu Dhabi Tel 02 6795555Al Mina Street, P.O.Box 27391 Fax 02 6795843Ramzi Saba Senior ManagerMazen El Attar Operations Manager- Abu DhabAnni Barsoum Credit Manager - Abu DhabiDubai Tel 04 2827278Al Gharoud Street, PO Box 27141 Fax 04 2827270Nadim Melki Senior ManagerToufic Youakim Credit Manager - DubaiFadi Haddad Operations Manager - DubaiAl Ain 03 7517171Khalifa Street, PO Box 84287 Fax 03 75170770George Dib Branch ManagerRida Higazi Deputy Branch Manager


Bank Saderat Iran

Dubai Tel 04-6035555Regional Office, Al Maktoum Street, P.O. Box 4182 Fax 04 2229951

Dr.Hamid Borhani Regional ManagerAbdul Reza Shabahangi Assistant Regional ManagerMohammad Yousefi Peyhani Assistant Regional ManagerMajid Tavasoli H.R. & Organization Dept. ManagerGholamreza Joulaie Credit Facility Dept. ManagerRahim Erfan Moghaddam Account Dept. ManagerMehran Arzhang Letter of Credit Dept. Manager Majid Mirnasiri Recovery Dept. ManagerHamdi Reza Khalajzadeh Dealing Dept. ManagerHojatollah Malek Mohammadi IT Dept. ManagerMansoor Sedaghat Motlagh Service Dept. Manager Mohsen Hossein Hosseinpour Manager of Al Maktoum BranchGholamreza 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) 6225880P.O. Box 533, Abu Dhabi Telefax 02-6225881History: 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 Abu Dhabi - UAE PO Box 533 Tel: 02-6272525Abu Dhabi Branch Mohamad Kamal Farid (Acting Manager) Tel: 02-6273000Dubai Branch Labib Abdul Ghaffar Tel: 04-2715175Sharjah Branch Tareq Hafez Tel: 06-5739379Ras Al Khaima Mohamad Abdul Ghani (Acting Manager) Tel: 07-2332245Al Ain Abdul Hamid Saeed Tel: 03-7511104

Barclays Bank PLC

Dubai Tel: 04 3626888Emaar Business Park, Building No. 4, Sheikh Zayed Road Fax: 04 3663133P.O. Box: 1891, DubaiWebsite www.barclays.com

Saleem Sheikh Regional Managing Director, Middle East & North AfricaMark Petchell Group Country Managing DirectorAmin Habib Director - Corporate BankingFaizen Mitha Regional TreasurerFarrukh Zain Head of Trade SalesFlorence Goodman Head of Corporate Afffairs & Public RelationsDavid Inglesfield Location Manager - International & Premier Bank-ing Callum Watts-Reham Director, Market Manager, Gulf - Barclays Private Clients

Barclays CapitalDubai 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 Office17-19 Avenue Montaigne Tel 33 1 56 52 11 0075008 Paris, France Fax 33 1 56 52 11 11Mr. Andre Tyan General Manager

Regional Office Dubai Al Maidan Tower, Al Maktoum St. Tel 04 2222291P.O. Box 4207, Dubai Fax 04 2283935E-mail: [email protected] Melhem Dagher Administration & Operations Manager

DubaiAl Maidan Tower, Al Maktoum St. Tel 04 2222291P.O. Box 4207, Dubai Fax 04 2279861 Hamze Abdul Sater Branch Manager

Abu DhabiMohd. Joan Al Badi Bldg., Hamdan St. Tel 02 6220055P.O. Box 3771 Fax 02 6222055Ghassan Haddad Acting Regional ManagerSamir Rached Acting Branch Manager

Sharjah Al Salam Bldg., Al Mina St. Tel 06 5724561P.O. Box 854 Fax 06 5727843Victor Khoriaty Branch Manager

Ras-Al-KhaimahSheikh Ahmad Bin Saker Al Quasimi Bldg., Al Montaser St. Tel 07 2286222P.O. Box 771 Fax 07 2275067Abd El Hajj Branch Manager

BNP Paribas

Abd Ahmad Al Hajj Branch ManagerAbu Dhabi Tel 02 6130400Khalifa Street, P.O. Box, 2742, Abu Dhabi Fax 02 6268638Marc Checri General Manager

Central Bank of the U.A.E

Abu Dhabi Tel 02 6652220/6915555Head Office, Al Bateen Area, Bainoona Street Fax 02 6668483/6668621P.O.Box: 854, Abu Dhabi, www.cbuae.gov.aeE-mail: [email protected]: CBAU AE AAReuters dealing code: CBEMHistory 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 & PersonnelH.E. Sultan Bin Nasser Al-Suwaidi Governor H.E. Mohd. Ali Bin Zayed Al Falasi Deputy Governor

Board of DirectorsH.E. Mohd. Eid M. Jasim Al-Meraikhi ChairmanH.E. Jumaa Al-Majid Vice Chairman


H.E. Sultan Bin Nasser Al-Suwaidi Governor

MembersAli Al-Sayed Abdulla, Jamal Nasser Lootah, Khalifa Nasser Bin Huwaileel, Saeed Rashid Al Yateem Al Muhairy

Executive DirectorsSaeed 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 DepartmentSalem Ahmed Al-Hammadi Executive Director - Research & Statistics DepartmentAbdulla Hamad Al-Zaabi Executive Director - Internal Audit DepartmentJamal Ebrahim Al Mutawaa Executive Director - Administration Department

Economic AdvisorsAbed Alla Osama Malki, Mohammed Zeitouni Bechri

Portfolio ManagersMohammed Abdulla Mohammed, Brian Gardner

Anti-Money Laundering & Suspicious Cases UnitAbdul Rahim Mohamed Al Awadi Asst. Executive Director

General Secretariat & Legal Affairs DivisionSalem Said Al Kubaisi Senior Manager

Financial Control DepartmentHassan Ibrahim Al Hamar Senior Manager

Personnel DivisionAli Ghurair Al Romaithi Senior Manager

Correspondent Banking DivisionSultan Rashed Al-Sakeb Senior Manager

Public Relations DivisionAbdul Raheem Abdullah Manager

Information Technology Division/ UAE Switch DivisionKhalifa Al Dhaheri Senior Manager

Dubai Tel: 04 3939777P.O. Box 448 Fax: 04 3937802Omar Al Qaizi Manager-in-Charge

Sharjah Tel: 06 5592592Old Airport Road, Opp. Immigration Bldg., P.O. Box 645, Sharjah Fax: 06 5593977Zakaria Abdul Aziz Al Suwaidi Senior Manager

Ras Al Khaimah Tel: 07 2284444Al Nakheel, Oman Street, P.O. Box 5000 Fax: 07 2284646Salem Jasem Al Baker Asst. Executive Director

Fujairah Tel: 09 2224040P.O. Box 768, Fujairah Fax: 09 2226805Ali Mubarak Saeed Abbad Senior Manager

Al Ain Tel: 03 656656Ali Ibn Abee Taleb Street, Oud Al Touba Fax: 03 664777P.O. Box 1414Ajlan Ahmed Al Qubaisi Asst. Executive Director

Citibank N.A (UAE Branches)

Date of Establishment 1964Nationality USALegal Status

Commercial Banking Services (F)Regional Head Office Oud Metha TowersP.O Box 749, Dubai – UAETel: 04- 3245000Telex: 023 6738736Cable: CITIBAEMSwift: CITIAEADReuters: N/AEmail: [email protected]: www.citibank.aeAuditors: KPMGDomestic Branches: Al Wasl Road Branch (Main Branch) Tel: 04 3245000Oud Metha Road, P.O Box 749 Dubai Branch (Next to Burjuman) Tel: Abu Dhabi Branch Tel: 02 6982206Al Salam Street, Next to Lulu Center Fax: 02 6726381P.O Box 999, Abu DhabiSharjah Branch Tel: 06 5072101Beside Sharjah Emigration, Fax: 06 5723378Opposite Civil Court. Sharjah Al Ain Branch Tel: 03 7641090Sh. Zayed Street Fax: 03 7663887Broad of Directors: N/AGeneral 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.EMohammed Azab, Chief Officer, UAE Offices, Citi Private Bank

Clearstream Banking

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

Commercial Bank International

Dubai Tel 04 2275265Head OfficeDubai 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 Zainab Nour Aldin Employee Relations Manager 04 2126 442 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 Faris Saddi Chief information Officer 04 2060700 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 Mohammed Ishaq RAK Branch Manager (AL Manar Mall) 07 2274777 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 2126101Bur DubaiTariq Sulaij Branch manager 04 3555511Sheikh Zayed RoadAmeena Mhd. Bin Kaadi Branch manager 04 3405555Abu Dhabi Ahmed Sulaim Al Junaibi Branch Manager 02 6264400AL AINAbdulla Ali Branch manager 03 7669994Ras Al KhaimahKhaled Al Mannai Branch Manager (Manar Mall) 07 2274777Ahmed Yousef A. Darwish Branch Manager (Nakeel Branch) 07 2227555SharjahAliya Al Mulla Branch manager 06 5687666

Commercial Bank of Dubai

COMMERCIAL BANK OF DUBAI,P.O. BOX 2668, AL AITIHAD STREET, DUBAITOLL-FREE: 800 CBD (223)TEL: 04 2121000 FAX: 04 2121911E-Mail: [email protected] Website: www.cbd.ae

MANAGEMENT COMMITTEEPeter Baltussen Chief ExecutiveYaqoob Yousuf Hassan Deputy Chief ExecutiveIbrahim Abdulla General Manager, Administration & FinanceMahmoud Hadi General Manager, Systems & OperationsFaisal Galadari General Manager, Business GroupAhmed Shaheen General Manager, Credit & Risk Management

HEADS OF DEPARTMENTSStephen Davies Head of Corporate BankingMoukarram Attasi Head of Asset ManagementFrans Jan Burkens Head of Consumer BankingJohn Tuke Head of Treasury & ALMV.P Bhatia Head of Treasury TradingMasood Azhar Head of Strategic Planning DepartmentAmir Afzal Head of Information TechnologyAdel Al Sammak Head of Commercial Banking Kanan Iyer Head of Internal AuditAlan Hill Head of Treasury SalesAbdul Rahim Al Nimr Head of Wealth ManagementBadr Soueidan Head of MarketingNabil Tayyeb Head of Islamic BankingMr. Mohamed Mardood Head of Central Operations DepartmentMr. Hassan Al Redha Head of Financial InstitutionsAkram Gharabeh Head of Financial ControlWaleed Bin Suloom Head of Personal Banking and Alt Banking Chan-nelsJamal Saleh Head of Risk ManagementSalah Omer Head of Legal ServicesRahmatulla Khan Head of Consumer ProductsNigel Foster Head of Human Resources StrategyWafaii Tamimi Head of RecoveryREGIONAL MANAGERS Mr. Abdul Aziz Al Ansari AGM, Sharjah BranchIbrahim Salama Regional Manager, Main RegionOthman Bin Hendi Regional Manager, Abu Dhabi & New Dubai RegionAlsayed Mohd. Al Hashimi Regional Manager, Deira Region Marwan Ibrahim Regional Manager, Northern Emirates RegionAhmed Al Aboodi Regional Manager, Bur Dubai Region

Coutts & Co.

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

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

Credit Suisse

Abu Dhabi Dhabi Tower, 4th floor, Sheikh Hamdan Street Tel 02 6275048P.O.Box 47060 Fax 02 6274109Jean-Marc Suter Director

Dubai P.O. Box 33660 04 3620000The Gate bldg, 9th Floor Fax 04 3620001Dubai International Finance Centre ( DIFC), Dubai Head of Regional Office Beat Naegell

Deutsche Bank A G

Abu Dhabi Tel 02 6333122P.O.Box 52333 Fax 02 6322044E-mail: [email protected] Moeller Representative

Dubai P.O. Box: 50490Emirates Towers, Level 27b Fax 04 3199560Karl French Director Tel : 04 3199514 Private Wealth Management - AsiaNadeem Masud Director Tel : 04 3199524 Global MarketsHarris Irfan Vice President Tel : 04 3199520


Global Equities & DerivativesRohit Johri Vice President Tel : 04 3199522 Private Wealth Management - Asia

Dresdner Bank AG

Dubai Representative OfficeBurjuman Business Towers, 10th Floor, Office 1011 Bur Dubai, P.O. Box: 25654 Tel 04 3596444 Fax 04 3596116E-mail: [email protected]

Bashar A. Barakat Chief Representative Regional Head GCC & Yemen

Dubai Bank

Main Office Sheikh Zayed Road, Near Dubai World Trade Centre Tel 04 3328989P.O. Box 65555, Dubai Fax 04 3290071E-mail: [email protected] Website: www.dubaibank.ae

History: Established in September 2002

Ziad Makkawi Chief Executive Officer

Dubai Islamic Bank

Head OfficeAl Maktoum Street, Dubai Tel 04 2953000 P.O. Box 1080, Dubai Fax 04 2954111Website: www.alislami.co.aeHistory: Established March 12, 1975Dr. Mohammed Khalfan Bin- Kharbash Chairman Butti Khalifah Bin DarishAl- Falasi CEOSaad Mohammed Abdul Razzaq Deputy CEOMohd. Saeed Al Sharif Executive Vice President-FinanceArif Ahmed Al Koheji Executive Vice President-Investment BankingAbdullah Ali Al Hamli Executive Vice President - Business ServicesAhmed Mohammed Fadel Legal Consultant and Board Secretary

BranchesDeira Main Branch 04 2959999Al Souk 04 2233300Sheikh Zayed Rd 04-3437777Nad Al Shiba 04 3907777Bur Dubai 04 3971717Jumeirah Ladies Branch 04 3429955Al Barsha 04 3406000Ajman 06 7466555Sharjah 06 5726444Wasit Road 06 5584455Al Dhaid 06 8826682Khorfakan 09 2370080Abu Dhabi 02 6346600Khalidiah Ladies Branch 02 6677119Al Salam 02 6450555Bani Yas 02 5825511Al Ain 03 7644111Al Ain Mall 03 7515155Ras Al Kheimah 07 2284888Fujairah 09 2221550

El Nilein Bank

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

Emirates Bank International

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

BranchesAbu Dhabi 02 6455151Hameed Sheikh ManagerAl Ain 03 7510055/77Ghanim Al Hajeri Manager Al Maktoum Ali Malallah ManagerAl Quoz Mohd. Abdulla Manager Baniyas Square Sherif Al Ulama ManagerBander Talib Fareed Aquilli ManagerDubai Main Branch Amal Al Qamzi ManagerFujairah 09 2222114/110 Yousif Al Marshoudi ManagerInternet City 04 3910840/1 Balakrishnan Nair ManagerGalleria Farida Al Balooshi Manager IBN Gardens 04 8844689Hamdan Mohd. Abdulla Manager Jebel Ali Free Zone 04 8815551Abdul Rahman Ibrahim Manager Karama Muna Al Falahi ManagerKarama Shopping Complex Nawal Al Khader ManagerMankhool Abdul Rahim Abdulla ManagerQiyadah Fatima Al Midfa ManagerGhusais Fatima Al Midfa ManagerRamoul Ibrahim Hassan ManagerRas Al Khaimah 07 2272333 Khalifa Bin Kalban ManagerSatwaMohamed Bilal ManagerSharjah Industrial Area 06 5345577Mohamed Al Shouq ManagerSharjah 06 5733300Mahmoud Saif Manager Souk Samia Al Aqady Manager


Umm Suqueim Nazia Kalban ManagerTower Saif Al Mansoori ManagerWorld Trade Centre Abdulla Sulaij Al Falasi ManagerNajdah 02 6771919 Butti Al Assiri Manager

Emirates Industrial Bank

Abu Dhabi - Head Office Tel 02 6339700P.O. Box 2722, Abu Dhabi Fax 02 6319191/6326397E-mail: [email protected] Tel 04 2211300Arbift Tower, Deira P.O. Box 5454, Dubai Fax 04 2232320E-mail: [email protected]: www.emiratesindustrialbank.netSenior Management Personnel/Branch ManagerMohamed Abdulbaki Mohamed General ManagerAhmed Mohamed Bakhit Khalfan Deputy General ManagerAbdullah Rashed Omran Dubai Branch ManagerKhalifa Al Falasi Acting Projects Division ManagerAli Ahmed Al Essa Development Services Division ManagerNasser Haji Malek Administration ManagerEssa A. Bu Al Rougha Internal Audit ManagerMohamed Moneir Makled Finance ManagerSalem Abu Baker Salem Acting Loans Division Manager

Emirates Islamic Bank

P.O. Box: 6564, 2nd & 3rd Floor, Al Gurg Tower 1 Tel: 04 3160330Plot 372 - Riggat Al Buteen, Deira, Dubai. Fax: 04 2272172www.emiratesislamicbank.aeEbrahim Fayez Al Shamsi CEO 04 3160330Abdulla 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 6194998Mr. T.K. Raman Chief Operating Officer 02 6194889Mr. Mohammed Wassim Khayata Executive VP – Strategic Planning 02 6194445Mr. Ramesh S. Mahalingam Chief Investments & Financial Officer 02 6194601Mrs. Shagufta Farid Khan Head of Internal Audit 02 6194223

Ms. Lina Abdul Hamid I. El Araj Manager – General Services 02 6194702Mr. Tarek Soubra Vice President – Central Operations 02 6194362

Ms. Maha Al Jamal Senior Manager – Marketing 02 6194893

First Gulf Bank

Abu Dhabi Tel 02 6816666 Head Office, Sh. Zayed Second Street, Khalidiya P.O. Box 6316, Abu DhabiWebsite: www.fbg.aeHistory: Established in 1979Shareholder Equity of over AED 10 billionSenior ManagementAbdulhamid Mohammed Saeed Managing Director 02 6920502Andre’ Sayegh Chief Executive Officer 02 6920506Amit Wanchoo Head of Retail Banking GroupArif Shaikh Chief Credit & Risk OfficerGeorge Abraham Head of Corporate BankingGopi Krishna Madhavan Head of Human ResourcesHana Al Rostamani Strategic Planning HeadKarim Karoui Head of Business Planning & Financial ControlNadeem A. Siddiqui Head of International BusinessShafiqur Rehman Adhami SR. VP, CB FI\SYN\MNC\OIL & Energy SectorZafar Habib Khan Chief Investment OfficerZulfiquar Ali Sulaiman Business Support Director

Habib Bank A.G. Zurich

Head Office: Zurich, SwitzerlandZonal Office: Dubai Tel 04 2214535Baniyas Square Deira, P.O. Box 3306 Fax 04 2284211E-mail: [email protected]: www.habibbank.comHistory: Established in 1967Reza S. Habib Joint President Arif Lakhani Chief Executive Vice President 04 2229985Asad Habib Senior EVPAfzal Memon Senior EVP Shariq Ali Senior EVPDeira Mains 04 2214535Najibullah Khan Branch Manager Farrukh Iqbal Deputy Branch Manager Corporate 04 3513777 Awais Hasan Branch ManagerSharjeel Vijdani Deputy Branch Manager Al Fahidi Street 04 3534545Zain Ghazali Branch ManagerAbdul Basheer Deputy Branch Manager Jebel Ali 04 8812828Nisar Chowdhary Branch Manager Ifthikhar Memon Deputy Branch ManagerSh.Zayed Branch 04 3313999Zia Abbas Mirza Branch ManagerKashif Aijaz Dodhy Deputy Branch Manager

Abu Dhabi Sh. Hamdan 02 6346888Imamat Naqvi Area Manager Farhan Bakhshy Branch Manager Al Falah 02 6422600Syed Akhtar Hussain Branch Manager Raid Saleem Ansari Deputy Branch Manager Sharjah 06 5730004Al Boorj Avenue Younus Warsi Area Manager Kausarullah Khan Branch Manager


Habib Bank limited

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

HDFC Bank

Representative Office: Dubai Tel 04 3966991Juma Al Majid Bldg., Opp Bur Juman Centre Fax 04 3967010P O Box 64546, Email: [email protected] Saeed Cheif Representative Tel 04 3966991

HSBC Bank Middle East Ltd

Head Office: Jersey, Channel IslandMiddle East Management Office, Dubai Internet City Tel: 04 3904722 Fax: 04 3906607HSBC Bldg., Dubai Internet City, P.O. Box: 66, Dubai, UAE Web: www.hsbc.aeUAE Web: www.uae.hsbc.com

Youssef Nasr ChairmanDavid Hodgkinson DirectorKen Matheson Regional Chief Operating OfficerAbu Dhabi 02 6332200/6152215Al Ain 03 7641812Dubai 04 3535000

Deira 04 2227161Fujeirah 09 2222221Jebel Ali 04 8846133Ras Al Khaimah 07 2333544Sharjah 06 5537222

IndusInd Bank

Dubai Representative Office Tel 04 3978803203, Safa Commercial Bldg. Fax 04 3978805Opp. Bur Juman Centre, P.O. Box: 111873, Dubai.E-mail: [email protected] Gupta Vice President & Chief Representative 04 3978804

ING Asia Private Bank Ltd

Dubai Representative Office Tel 04 4277100602, Level 6, Building 4 Fax 04 4257801Burj Dubai SquareSheikh Zayed RoadP.O Box 4296, Dubai – UAE Suresh Nanda Managing Director & HeadEric Lorentz Managing DirectorVarun Bukshi Executive DirectorMelwyn Dias Executive Director

B.R. Subramanian DirectorP.G. Bhaskar DirectorRanjit Paul DirectorPiyush Bhandari DirectorNitin Bhatnagar DirectorRishi Chauhan DirectorAsad Dadarkar DirectorAshraf Al Yamani Director

InvestBank

Sharjah Tel 06 5694440Al Boorj Avenue, P.O. Box 1885 Fax 06-5694442E-mail: [email protected]: www.invest-bank.comHistory: 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 & LegalAthar Anis Manager, Credit Risk Bassam Hollmerus Chief DealerSajjad H. Holimerus Trade FinanceMadhu Pilakazhi Financial Controller Ghassan Accari Personnel Manager Vinay Gupta IT ManagerDubai 04 3213131Sheikh Zayed RoadDubai 04 2285551Al Maktoum StreetAl Ain 03 7644446Al Ghaba StreetAbu Dhabi 02 6794594Sh. Khalifa streetAbu Dhabi 02 5555336Mussaffa Area Sharjah 06 5420333Industrial Area


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

Lloyds TSB Bank plc

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

Dubai Customer Service CentresCommunity Centre at Arabian Ranches, Dubai Tel 04 3023318 Fax 04 3618035Dubai Healthcare City (Behind Wafi City) Tel 04 3023349 Fax 04 3624805

Man Investments Middle East Limited

Representative Office Dubai Tel 04 3604999Level 5, West Wing, The Gate, Dubai Internaional Financial Centre Fax 04 3604900P.O. Box: 73221, DubaiWebsite: www.maninvestments.comE-mail: [email protected] Merville Chief Executive OfficerKamlesh Bhatia Deputy Chief Executive Officer

Mashreqbank

Dubai Tel 04 2223333Head Office, Omar Bin Al Khatab Street, Deira Fax 04 2226061

P.O. Box 1250, Dubai History: Established on 1st May, 1967 as Bank of Oman Limited. On October 1st 1993 name was changed to MashreqBank PSC.bdullah Al Ghurair President and ChairmanAbdul Aziz Al Ghurair CEOAli Raza Khan Head of Corporate AffairsDouglas Beckett Head of Retail BankingOmar Bouhadiba Head of Investment and Corporate BankingNabeel Waheed Head of Treasury and Capital MarketsNigel Morgan Head of Audit Review & ComplianceMajid Husain Head of Financial InstitutionsSomnath Menon Head of Operations & TechnologyKantic DasGupta Head of Risk ManagementAlexander Sinclair Head of Technology Mubashar Khokhar CEO of Badr Al IslamiEbrahim Kazi Head of Marketing and Corporate CommunicationsSaad Hakim Events and Public Relations ManagerAl Khaleej Street, Deira 04 2717771Souq Al Kabir Branch 04 2264176Hor Al Anz, Deira 04 2623100Jumeirah Branch 04 3441600Jebel Ali 04 8815355Khor Branch 04 3534000Bur Juman Centre 04 3527103Al Riqa, Deira 04 2229131Al Aweer 04 3333727Abu Dhabi 02 6274300Main Branch, Khalifa StreetMusaffa 02 5555051Zayed the 2nd Street 02 6334021Al Salam Street 02 6786500Al Mushrif 02 4432424Baniyas 02 5821100Muroor 02 4481858Khalidiya 02 6665757Al Ain 03 7667700Al Ain Main Street Ali Ibn Abi Tailb St. 03 7669968 Ajman 06 7422440Shk Humaid Bin Abdul Aziz Street, Near Ajman MuseumFujairah 09 2221100 Sh. Hamad StreetRas Al Khaimah 07 2361644King Faisal Street.Al Nakheel RAK 07 2281695Sharjah Main 06 5684366Bank Street, RollaKing Abdul Aziz Street 06 5730883Dhaid 06 8822899Main Street, Sh. Arsan Hameed Bldg., DhaidDibba 09 2444230Kalba 09 2777430Kalba CityKhorfakkan 09 2385295Umm Al Quwain 06 7666948 King Faisal Street, Next to New Souk

Merill Lynch International & Co.C.V

Representative Office Dubai (04) 3975555Business Center Building, Khalid Bin Walid StreetP.O. Box 3911, DubaiTelefax 04-3975252Executive Director Mones Bazzy


NATIXIS

Dubai Branch Tel 04 7026777DIFC Gate Village Fax 04 7026820Building No. 8, 5th FloorP.O Box 33770Email: [email protected]: www.natixis.frPhilippe Petitgas CEO

National Bank of Abu Dhabi

Head Office: Abu Dhabi 02 - 6111111One NBAD Tower, Khalifa St., P.O. Box 4, Abu DhabiTelex 22266/7 MASRIP EMHistory: Established in 1968H.E. KHALIFA MOHAMED AL KINDI ChairmanH.E. DR. JAUAN SALEM AL DHAHIRI Deputy ChairmanMICHAEL H. TOMALIN Chief ExecutiveABDULLA MOHAMMED SALEH ABDULRAHEEM GM & Chief Operating OfficerSAIF ALI MOHAMED MUNAKHAS AL SHEHHI GM Domestic Banking DivisionQAMBER ALI AL MULLA GM International Banking DivisionABHIJIT CHOUDHURY GM & Chief Risk OfficerJOHN GARRETT GM & Chief Audit & Compliance Officer

Abu DhabiMain Branch 02 - 6111111Khalidiya 02 - 6666800Dept. of Social Services & Commercial Buildings 02 - 6346673ADCO 02 - 6672642ADMA 02 - 6263225ADNOC 02 - 6669143Abu Dhabi Municipality 02 - 6744749NPCC 02 - 5549282 ZADCO 02 - 6768821HILTON 02 - 6812280Abu Dhabi International Airport 02 - 5757303Sheikh Rashed Bin Saeed Al Maktoum Road 02 - 6419800Abu Dhabi Mall 02 - 6452200Arabian Gulf Road 02 - 4478878Baniyas 02 - 5831625Bateen 02 - 6658332Between The Two Bridges Area 02 - 5589446Corniche 02 - 6220300Dalma Island 02 - 8781240TAMM 02 - 8945528Das Island 02 - 8731099Liwa 02 - 8822388Madinat Zayed 02 - 8846146Government Complex 02 - 8945428Al Mirfaa 02 - 8836506Al Ruwais 02 - 8776343Al Muroor 02 - 4481918Mussafah 02 - 5553357Dept. of Social Services & Commercial Buildings (Mussafah) 02 - 5520681Mussafah Municipality 02 - 5540300Industrial City of Abu Dhabi 02 - 5501125Al Salam St. 02 - 6442900Al Shahama 02 - 5632411New Al Shahama 02 - 5635695Abu Dhabi Municipality-Shahama 02 - 5631385Sweihan 03 - 7347919Marina Mall 02 - 6816002Al Etihad 02 - 6111111Emirates Palace 02 - 6908900National Exhibition Centre 02 - 4494996

Mina Road 02 - 6767665

Al AlinAl Ain Clock Tower 03 - 7642400Al Ain 03 - 7516900Al Ain Cement Factory 03 - 7828060Al Ain International Airport 03 - 7855511Al Ain Defence 03 - 7688824Al Sanaiya 03 - 7213222Al Hayer 02 - 7322400Al Ain Mall 03 - 7519900

AjmanAjman 06 - 7422996

DubaiDeira 04 - 2226141Dubai Side 04 - 3599111Jebel Ali 04 - 8815655Sh. Zayed Road 04 - 3433311 Al Qusais 04 - 2674176Jumeirah 04 - 3499001Mall of the Emirates 04 - 3413888

FujairahFujairah 09 - 2222458Dibba 09 - 2444223

Ras Al KhaimahAl Nakheel 07 - 2281753 Ras Al Khaimah 07 - 2334333

SharjahAl Bourj Avenue 06 - 5695500Sharjah 06 - 5721111Al Falah Camp Office 06 - 5385969Al Dhaid 06 - 8822929Khorfakkan 09 - 2385250Kalba 09 - 2772112

Umm Al QuwainUmm Al Quwain 06 - 7660033

National Bank of Bahrain

Abu Dhabi Tel 02 6335288Khalaf Bin Ahmed Al Otaiba Building, Sh. Hamdan Street Fax 02 6333783P.O.Box 46080Email: [email protected]: www.nbbonline.com

Farouk Khalaf UAE Country Manager 02 6335299Ingersoll Ramalingam Manager Credit 02 6311248

National Bank of Dubai

Dubai Tel 04 2222111Head Office Baniyas Street, Deira Fax 04 2283000P.O. Box 777 Email: [email protected]: 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 CEOJoyshil Mitter CFOAlex Richardson COOLeslic Rice CROAbdul Shakoor Tahlak CM - Intl.Ghanim Bin Zaal CM - Business DevelopmentAli Al Najjar CM - LiabilitySuvo Sarkar Head of RetailRajesh Thaper Head Of CorporateFaranak Foroughi Head of TPOHusam Al Sayad Head of HRG. Krishnamoorthy TreasurerSue Evans Head of IS&TAlan M. Smith Head of Group AuditA. Chandran Head of BPQMWalid El Masri Head of Corp CommRashmi Malik Head of StrategyAbdul Fattah Sharaf GM NFSMohamed Al Neaimi GM AqaratAli Kaitoob Head of Dist. RetailP.S. Sastry SM CEO’s OfficeHesham Qassimi Divisional Manager Corporate Banking

Abu Dhabi P.O. Box: 386 Tel : 02 6394555 Fax : 02 6346767Ajman P.O. Box: 712 Tel : 06 7456555 Fax : 06 7456060Ajman Archives Tel : 06 7444606 Fax : 06 7425883Al Mizhar Tel : 04 2641221 Fax : 04 2640569Al Ain P.O. Box: 16122 Tel : 03 7644345 Fax : 03 7668515Burjuman Centre Tel : 04 3555222 Fax : 04 3554455Bullion Tel : 04 2284757 Fax : 04 2289090Convention Centre Branch Tel : 04 3320808 Fax : 04 3320908Dubai Central Fruit & Vgtbl. Mkt Branch Al Awir Tel : 04 3333880 Fax : 04 3333870Dubai International Airport Tel : 04 2200404 Fax : 04 2244614Dubai International Airport Pay Office Tel : 04 2164946 Fax : 04 2244614Dubai Internation Airport Tel : 04 2162450 Fax : 04 2244614Dubai Internation Airport Tel : 04 2166995 Fax : 04 2244614Dubai Internation Airport Tel : 04 2162452 Fax : 04 2244614Dubai Internation Airport Tel : 04 2162434 Fax : 04 2244614Dubai Internation Airport Tel : 04 2162740 Fax : 04 2244614Dubai Media City Pay Office Tel : 04 3902007 Fax : 04 3908855Deira City Centre Tel : 04 2951555 Fax : 04 2951525Dubai Airline Centre Tel : 04 2952555 Fax : 04 2955655Dubai Airport Free Zone Tel : 04 2995550 Fax : 04 2995557Dubai Courts Tel : 04 3366702 Fax : 04 3353906Dubai Media City Pay Office Tel : 04 3030400 Fax : 04 3908855Emirates Tower Tel : 04 3300133 Fax : 04 3300155Fahidi Tel : 04 3535575 Fax : 04 3535575 Emirates Tower Tel : 04 3530308 Fax : 04 3534601Emirates Tower Tel : 04 2823400 Fax : 04 2823640Fahidi Direct Banking Tel : 04 3532840 Fax : 04 3531443Fujairah Branch P.O. Box: 1744 Tel : 09 2233335 Fax : 09 2233336Hamriya Tel : 04 2663189 Fax : 04 2690103Hatta Tel : 04 8523183 Fax : 04 8521051Ibn Battuta Mall Branch Tel : 04 3685499 Fax : 04 3685501Ittihad Road Tel : 04 2955600 Fax : 04 2955611Jumeirah Branch Tel : 04 3420202 Fax : 04 3421112Jebel Ali Tel : 04 8816087 Fax : 04 8816961Main Office Tel : 04 2222111 Fax : 04 2283000Maktoom Branch Tel : 04 2281141 Fax : 04 2235456Malleq Emirates Branch Tel : 04 3410777 Fax : 04 3410707Muhaissnah Branch Tel : 04 2544545 Fax : 04 2544646Nadd Al Shiba Tel : 04 3363939 Fax : 04 3363788Oud Metha Branch (Ex-Gulf Tower Branch) Tel : 04 3370222 Fax : 04 3366145Ras Al Kaimah P.O. Box : 1932 Tel : 07 2279888 Fax : 07 2279889

Rashidiya Tel : 04 2859523 Fax : 04 2854847Souk Madinat Jumeirah Branch Tel : 04 3686130 Fax : 04 3686195Sh. Zayed Road (Saeed Tower) Tel : 04 3313183 Fax : 04 3310629Sharjah P.O. Box : 21850 Tel : 06 5738888 Fax : 06 5733000Umm Al Quwain P.O. Box : 22 Tel : 06 7656154 Fax : 06 7655151Emirates Tower Tel : 06 7656152 Fax : 04 3300155Umm Suqeim Tel : 04 3485222 Fax : 04 3482535

National Bank of Oman

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

National Bank of Umm Al Qaiwain

History: Established in 198224/7 Call Centre Number: 600 56 56 56 E-mail: [email protected] Website: www.nbq.aeSh. Nasser Bin Rashid Al-Moalla Managing Director Mohamed Abdel Rahim Al Mulla General Manager

Umm Al Qaiwain Branch Tel: 06 7066666NBQ Building, King Faisal Street Fax: 06 706 6677P.O.Box 800, Umm Al QaiwainFalaj Al Mualla Branch Tel: 06 8824447NBQ Building, Shaikh Zayed Street Fax: 06 8824445P.O.Box 11074 Falaj Al MuallaDubai Branches Tel: 04 3976655NBQ Building, Khalid Bin Al Waleed Street Fax: 04 3975382P.O. Box 9715 Dubai Deira Branch Tel: 04 2651222Opposite Dubai Police Head Quaiter Fax: 04 2651333Al Ittihad Street, P.O. Box 8898 Deira, Abu Dhabi BranchHamdan Bin Mohammed Street (# 5) Tel: 02 6775100P.O. Box 3915 Abu Dhabi Fax: 02 6779644Mussafah Branch Tel: 02 5555088P.O. Box 9770 Abu Dhabi Fax: 02 5553559Al Ain Branch Tel: 03 3751300Oud Al Touba Street Fax: 03 7513500Al Mandoos RoundaboutP.O. Box 17888 Al AinSharjah Branch Tel: 06 5742000King Faisal Street, Fax: 06 5742200P.O.Box 23000 SharjahNBQ Kiosk Fax: 06 5742200Sharjah Mega MallP.O.Box 23000 SharjahAjman BranchesCity Center Branch Tel: 06 7436000Ajman City Center Fax: 06 7436060P.O.Box 4133 AjmanMasfout Branch Tel: 04 8523377 NBQ Building Fax: 04 8523093Main Street P.O.Box 12550 Masfout, AjmanFujairah Branch Tel: 09 2232100Fujairah Insurance Co. Building Fax: 09 2232220Hamad Bin Abdulla RoadP.O.Box 1444 Fujairah


Ras Al Khaimah Branch Tel: 07 2366444Corniche Al Qawasim Road Fax: 07 2364470P.O.Box 32253Ras Al Khaimah

Philippine National Bank

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

Rafidain BankAbu Dhabi Tel 02 6335882 / 3 Al Nasser Street, Glass Bldg. Fax 6326996P.O.Box 2727, Abu Dhabi Salah Mahid Branch Manager

Royal Bank of Canada

Dubai Representative Office Tel 04 3313196API World Tower, Suite 1002, Shk. Zayed Road, P.O. Box: 3614. Telefax 04 3313960Umaima Zaman senior managerAshwani.k.Dewitt senior managerGlobal Private BankingAshish Anand Chief Representative

RAK Bank

Ras Al Khaimah Head Office, Oman Street, Al Nakheel Tel 07 2281127P.O. Box 5300 Fax 07 2283238E-mail: [email protected]; www.rakbank.aeHistory: Established in 1976 as The National Bank of Ras Al Khaimah. In 2003, name was changed to RAKBANK

H.E. Sheikh Omar Bin Saqr Al Qasimi ChairmanH.E. Sheikh Salim Bin Sultan-Al-Qasimi DirectorMr. Hamad Abdulaziz Al Sagar DirectorMr. Essa Ahmed Abu Shuraija Al Neaimi DirectorMr. Majid Saif Al Ghurair DirectorMr. Ali Samir Al Shihabi DirectorMr. Yousuf Obaid Essa DirectorMr. Graham Honeybill General ManagerMr. Ian Hodges Head of Personal BankingMr. Anil Sukhia Head of Corporate BankingMr. Steve O Hanlon Chief Operating OfficerMr. Geoff Harman Head of Internal ControlsMr. Jose Braganza Head of CreditMr. Malcolm D’Souza Head of TreasuryMr. Nigel Summersall Chief Internal AuditorMrs. Susan Gardner Head of Human ResourcesMr. Venkat Raghavan Head of FinanceDubaiDeira Maktoum Branch Tel : 04-2248000Deira Souk Branch Tel : 04-2248000Umm Hurair Branch (Bur Dubai) Tel : 04-2248000Sultan Business Center ( Dubai Main Branch) Tel : 04-2248000Sheikh Zayed Road Branch Tel : 04-2248000Emaar Business Park Branch Tel : 04-2248000Marina Diamond Branch Tel : 04-2248000Al Quoz Branch Tel : 04-2248000Al Qusais Branch Tel : 04-7058444

Ibn Battuta Mall Branch Tel : 04-3685890SharjahSharjah Main Branch Tel : 06-5746888Sharjah Industrial Area Tel : 06-5132666Kalba Branch Tel : 09-2778707Khorafakkan Branch Tel : 09-2371900Al AinAl Ain Branch Tel : 03-7644222Abu DhabiAbu Dhabi-Tourist Club Branch Tel : 02-6448227Khalidiya Branch Tel : 02-6666658Ras Al KhaimahRAK Town Branch Tel : 07-2333744Sha’am Branch Tel : 07-2666833 Badr Branch Tel : 07-2448822Al Mannei Branch Tel : 04-8525999Al Rams Branch Tel : 07-2662434Al Dhait Branch Tel : 07-2351147Al Nakheel Branch Tel : 07-2281127

Sharjah Islamic Bank

Mohammed Abdalla Chief Executive Officer 06-5115116Ahmed Saad ibrahim Chief Operating Officer 06-5115118Mohammed Rizwan Chief Risk Officer 06-5115172Saeed M Ahmed Al Amiri Head, Investment Group 06-5115000Ossama Salah El Din Head, Retail Banking 06-5115339G . Ramkirshinan Head of Coroprate Banking Group 06-5115111Hussam A. Abu Aisheh SVP-Chief Internal Audit 06-5115153Mohammed Ishaq Chief Dealer 06-5115151Mohamed Azmeer Head of Credit Division 06-5115319Eman Jasim Sajwani Head of Human Resources Group 06-5115170Myron Britto Head, nformation Technology Div.-CIO 06-5115444Sufyan Maysara Head of Shariaa Supervision Divison 06-5115213BranchesMain Branch - Al Brooj Avenue Mohammed Yousif 06-5115121King Faisal Street Branch Abdul Salam Al Ali 06-5746805Ladies Branch Laila Ali Salem 06-5746807American Unversity Branch Mohd Mousa Ali 06-5585789Al Dhaid Branch Khalid M. Ajmani 06-8829414Industrial Area Branch Waleed Abdul Qadir 06-5397623Sharjah Expo Branch Jassim Al Awadi 06-5992502Sharjah Buhaira Branch Osama Ahmed AlSalman N/AKhorfakhan Branch Yousif M. Abdullah 09-2387490Dibba Branch Ali Al-Abdouli 09-2442601Kalba Branch Abdullah Bin Hikal 09-2774204Fujairah Branch Nawal Mohamed AlMaghribi 09-2244339Dubai Branch Mohamed Ibrahim Alghufili 04-2698322Sheikh Zayed Branch Maisoon Zainudin 04-3217543Al Twar Branch Maha AlBanna 04-2638335Abu Dhabi Branch Thomas P.Y. 02-6224166Al Ain Branch Majid Sha’abaan 03-7513200

Shuaa Capital PSC

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

Societe Generale

Dubai DIFC Gate Village, Bldg. 6, 4th Floor Tel.: 04 4257500


Sheikh Zayed Road, Dubai Fax: 04 3653170 Website: www.socgen.com Alain L. Tave Chief Regional Representative

Standard Bank Plc - Dubai Branch (DIFC)

Dubai Emirates Tower, Office-16 B Tel 04 3300011P.O. Box 504904 Fax 04 3300169Website: www.standardbank.comJeffrey Rhodes General Manager 04 3300164Kate Lunjevich Head of Compliance & Operations

Standard Chartered Bank

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

The Housing Bank for Trade & Finance

Abu Dhabi P.O. Box 44768 Tel 02 6268855/6270280 Fax 02 6271771Muhanad Habashneh Representative

Union de Banques Arabes et Francaises UBAF

Dubai Creek Tower, Baniyas Road, Deira Tel 04 2284080P.O. Box 29885 Fax 04 2284070Hamed Hassouna Chief Representative GCC & Yemen

UBS AG

Abu Dhabi ADNIC Bldg., 5th Floor, Sh. Khalifa Street Tel 02 6275024P.O.Box 3744 Fax 02 6272752Website: www.ubs.com

Roger Leitner Senior Representative

DubaiCreek Tower, Office 17A, Baniyas Road, Deira 04 2240044Peter Schaer Senior Representative 04 2220006

DIFC Gate Village, Bldg. No. 6, 5th Floor Tel.: 04 3657150Sheikh Zayed Road Fax: 04 3657191P.O Box 506542Per Larsson Senior Representative

Union National Bank

Abu Dhabi Tel 02 6741600Head Office, Salam Street, P.O.Box 3865, Abu Dhabi Fax 02 6786080Website: www.unb.aeHistory: Established as a Public Joint Stock Company in 1982Nahyan Bin Mubarak Al Nahyan ChairmanMohammad Nasr Abdeen Chief Executive OfficerAbu Dhabi Corniche 02 632 1600City Centre 02 627 3471Najda 02 632 4981Hazzaa 02 641 2288Khalidiya 02 635 2511Adgas Booth 02 627 0611Musaffah 02 555 9111Shahama 02 563 4600Baneyas 02 582 1886Al Dhafra/Madinat Zayed 08 884 8484Al Muroor 02 444 8384Al AinSh. Khalifa Street 03 7644551Al Jimi 03 7626240DubaiMain Branch, Deira 04 2211188 Al Maktoum Street 04 2232266Khalid Bin Al Waleed Road 04 3516444Al Bustan 04 2636388Jebel Ali 04 8810999Sheikh Zayed Road/Jumeira 04 3329911Rashidiya 04 2857686

Ajman Central - Emirates Post 06 7425552Fujairah 09 2222747Ras Al Khaimah 07 2286600Sharjah 06 5686141King Abdul Aziz 06 5746161

United Arab Bank

General Management & H.O. Tel 06 5733900Sh. Abdulla Bin Salim Al Qassimi Building, Al Qasimia St., Sharjah Fax 06 5733906E-Mail Address [email protected] www.uab.aeHistory: Established 1975

Bertrand Giraud General Manager 06 5733900Awni Alami Dy. General Manager 06 5733900Gibert Hie Asst. GM-Corporate & Retail 06 5733900Arif Premdjee Asst. GM-Admin. & Finance 06 5733900


United Bank Limited

Dubai Gargosh Bldg, Khalid Bin Waleed Street Tel 04 3552020P.O. Box 1367, Dubai Fax 04 3514525Email: [email protected]: www.ubl.com.pkWajahat Husain Head of Middle EastMaruf Ahmed General Manager UAE

Wachovia Bank National Assoc.

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

J.Kennedy Thompson Chairman & Chief Executive Officer Michael P. Heavener International DivisionDubai Branch:Chafic Haddad Vice President & Regional Manager Carol Hampson Customer Services Representative