Our interview with AbdulMagid Breish in the September 2018 edition of Arab Banker magazine has resulted in some controversy. The Libyan Investment Authority offers its version of events in response to our article.
ABA Corporate Member Mishcon de Reya's latest Enforcement Watch publication provides some useful comments and guidance on the Financial Conduct Authority's 2017/18 Annual Money Laundering Report. The Authority is broadening its approach to include investigations of smaller firms.
Eighty six Arab banks appear in The Banker's list of the biggest 1,000 banks in the world, ranked by Tier 1 capital. Sixty four of the 86 are in the GCC, with the other 22 based in six other Arab countries.
Subject to regulatory approvals, Paul Hartwell has been appointed CEO of First Abu Dhabi Bank. Suzie Aliker will move up from CFO to replace Hartwell as CEO of British Arab Commercial Bank.
A new report by S&P Global notes the decline in global sukuk issuance in the first half of 2018 and suggests fives reasons why sukuk issuance is likely to remain subdued during the rest of 2018.
ABA Corporate Member Fieldfisher has published a report on the sanctions recently imposed by the US on Russia, and offers guidance on who is affected, and the range of transactions that are targetted.
S&P has published a short paper estimating the effect on GCC banks' capital and earnings of implementing the new IFRS9 provisioning methodology. Though material, the effect will not lead to rating downgrades.
The Boards of Saudi British Bank and Alawwal (formerly Saudi Hollandi) have agreed to merge their banks. The new bank is expected to become the third largest in Saudi Arabia, behind National Commercial Bank and Al-Rajhi.
The Arab Bankers Association extends its condolences to the family and friends of Tirad al-Mahmood, the CEO of Abu Dhabi Islamic Bank, who died in April after a long battle with illness.
Government bonds issued by Bahrain, Kuwait, Qatar, Saudi Arabia and the UAE will be included in JPMorgan's emerging market government bond indexes next year
Under new leadership, Export Development Bank of Egypt (EBE) is implementing a new strategy that is seeing the bank strengthen its franchise in Africa, broaden its range of client products, and upgrade senior management. The Arab Bankers Association spoke to Mervat Soltan, the bank's Chairperson about EBE's transformation.
A new report by MEES, the authoritative oil-industry newsletter, summarises recent trends in global oil production. Saudi Arabia, OPEC's biggest producer, averaged 9.96 mn b/d in 2017. Iraq produced 4.43 mn b/d and Iran 3.79 mn b/d: Iraqi production was flat but Iran's was sharply up. Total OPEC produciton averaged 32.48 mn b/d. The US will soon hit a...
A recent edition of The Banker magazine published a list of the biggest 100 Arab banks, ranked by Tier 1 capital. We reproduce the list and make some comments.
Nineteen GCC companies had market capitalisations of $10bn or more at the end of 2017, according to an end of year by SICO. At $81.6bn, SABIC was nearly twice as big as the second, Etisalat.
One of our Corporate Members has shared with us a contact list for the most senior managers at Egyptian banks and we are publishing it here.
Two recent reports from Standard & Poors analyse the reasons for increased bond and sukuk issuance in the GCC, and identify the key risks facing issuers in the region over the next year.
The International Islamic Financial Market has published its 6th Sukuk Report, containing data on recent issuance and sukuk structures.
S&P has downgraded ratings on three Middle East governments since January 2017. A new report describes rating trends and contains useful data.
Two ABA members have prepared legal briefings on how businesses could respond to the sanctions imposed on Qatar by some Arab countries. Vivien Davies, a partner at Fieldfisher, prepared one; and Dr. Nicolas Bremer, a partner with Alexander & Partner Rechtsanwalte, prepared the other.
Gatehouse Bank, the London-based Shari'ah-compliant bank that focusses on real estate financing, has made some new senior appointments, including a new CEO.
Mergers are rare in Gulf banking, but there are currently three significant mergers at various stages of consideration or completion. The ABA's editor takes a look, and provides some statistics.
Mohammed al-Tuwaijri, Saudi Arabia's Vice Minister of Economy and Planning, has given an interview with Bloomberg in which he provided some details on the Kingdom's plans to issue more debt, privatise state companies and balance the budget.
Thirteen years after selling its remaining stake in Saudi American Bank, Citibank is to have a physical presence in Saudi Arabia through an investment banking license, granted by the Capital Market Authority.
The Arab Bankers Association spoke to Shakeel Aslam, a Director with Grant Thornton and its head of Emerging Markets / Middle Eastern Markets, about the advice he gives clients on how to manage new and existing client relationships.
New executives have been appointed to lead Samba Financial Group and Bank Nizwa, the Saudi Stock Market (Tadawul) and the Kuwait Investment Authority.
The Saudi Arabian Monetary Authority will be honoured at the Central Banking Awards Ceremony, to be held in London in March, for its work to strengthen internal risk management and compliance.
Saudi Arabia's budget for 2017 projects a sharp rise in revenue and a halving of the deficit. Expenditure is due to rise by 8%. The ABA's Editor, Andrew Cunningham, analyses the Saudi budget statement and provides some statistical tables.
Egypt began marketing five and 10 year notes on Tuesday 17 January, while the Investment Corporation of Dubai began its roadshows on 19 January. Kuwait and Saudi Arabia are expected to come to the market with sovereign issues soon.
Fieldfisher has published a new note on Iranian sanctions in the light of Donald Trump's victory; the Central Bank is proposing to change Iran's unit of currency from the Riyal to the Toman; Boeing will supply 80 aircraft to Iran; and a new report by APICORP analyses the prospects for increased Iranian oil production. The ABA's Editor presents a round-up...
Walid Niazy, a prominent member of London's Arab Banking community and a founder of the Arab Bankers Association, died recently. In the attached article, we offer an appreciation of his life. The Arab Bankers Association extends its condolences to Walid's family and his friends.
With GCC fixed income issuance reaching record levels, the Arab Bankers Association spoke to Anita Yadav, head of Fixed Income Research at Emirates NBD, about the the trends in the market and the outlook for 2017.
Saudi officials completed the road show for the Kingdom's debt bond issue on 18 October. The ABA's editor, Andrew Cunningham, scrutinises the Prospectus for clues Saudi Arabia's financial position.
The IMF's Executive Board is expected to approve a $12bn loan to Egypt in early October. We spoke to Hugh Miles about the contents of the Egypt-IMF deal, and its prospects for success.
Riyad Bank has appointed Abdulmajid Abdulla al-Mubarak as its CEO, replacing Talal al-Qudaibi.
ABA Corporate member, Fieldfisher, has published an update on remaining US sanctions on Iran, and the opportunities that are opening up for both US and non-US firms to do business with Iran.
Deputy Crown Prince Mohammed bin Salman announced the Vision 2030 on 25 April. Read more to see how the Vision is structured and for details of some of its key points. We also have a link to the full English text.
The Arab Bankers Association spoke to Nabil Frik of British Arab Commercial Bank about the growing opportunities for banks to finance trade with the countries of the Maghreb and the type of business that his bank is developing, particularly in Algeria and Morocco.
Hundreds of billions of dollars will be spent on new energy projects in the Middle East over the next five years, according to an analysis by Apicorp Energy Research.
Bahrain and Oman have been downgraded, but Kuwait, Qatar and Abu Dhabi hold on to AA ratings. Opinions differ on Saudi Arabia. The Arab Bankers Association reviews recent rating actions, and provides a table listing current ratings and outlooks.
There has been a lot of talk about China's economic slowdown in recent weeks, but the reality of what is happening in China is complex. In a guest article, written for the ABA's website, Stephen Timewell, Editor Emeritus of The Banker magazine, and a frequent visitor to China, considers the positives and negatives of the Chinese economy and its banking...
Egypt devalued its currency by 14% on 14 March and then raised interest rates. The Central Bank has announced a foreign reserves target of $25 bilion and a commitment to single digit inflation. The ABA's Editor, Andrew Cunningham, summarises the recent moves in Egyptian monetary policy.
Saudi Arabia's bond issuance programme took total MENA fixed income issuance to more than $100 bn in 2015, but Egypt remains the region's biggest fixed income borrower, a new report from Kamco says.
The World Platinum Investment Council has published a report by David Jollie of Glaux Metal giving medium term supply and demand forecasts for the platinum market.
The Saudi budget for 2016 projects a 14% cut in expenditure compared to actual spending for 2015 (and a 28% cut on budgeted expenditure). Yet, a review of budgeted and actual expenditures over recent years, shows how difficult it is to predict Saudi spending and revenue patterns.
Kamco, the Kuwaiti investment company, has published a report on the GCC IPO market in 2015. Kamco reports that there were only six IPOs in 2015, compared to 17 in 2015, and they raised $1.5bn in capital.
ABA Corporate Member King & Spalding has phblished a report explaining how sanctions imposed on Iran have changed since 16 January: "Implementation Day" of the Joint Comprehensive Plan of Action.
Fieldfisher, the international law firm, has issued a new analysis of the sanctions regime against Iran, following Implementation Day on 16 January, including guidance for firms seeking to engage with Iranian entities.
Most GCC stock markets declined by about 15% during 2015, according to data published by SICO, the Bahrain-based investment bank. The MSCI Emerging Market Index fell by 16% over the year, SICO said.
Gatehouse Bank has announced the departure of its CEO, Henry Thompson, while Simon Walker has left Qatar National Bank, where he was European Regional Manager, based in London.
North African banks account for 37 of the biggest 100, ranked according to Tier 1 Capital by The Banker Magazine. Egyptian banks account for 15 of the largest 100 and Algerian, Moroccan and Tunisian banks seven each.
Hugh Miles is co-founder of Al Shafie Miles (www.alshafiemiles.com), a Cairo-based business intelligence consultancy specialising in the Middle East and North Africa. The Arab Banker recently spoke to Hugh about economic policy making in Saudi Arabia in the light of current low oil prices and the accession of King Salman to the throne in January 2015.
There has been a lot of press coverage recently about Saudi Arabia drawing down its financial reserves and issuing bonds in order to cover its budget deficit. Here are some numbers to help our readers make up their own minds about Saudi Arabia's financial position.
A new report by Apicorp suggests that Iran could increase its oil production by 400,000 b/d by the end of 2016 and at least another 300,000 by the end of 2017. The report details how such increases could be acheived by emplying storage, restoring old fields and bringing on new fields.
Darien Analytics has published its annual ranking of Gulf commercial banks. Sharjah's Investbank tops the ranking, with National Bank of Ras al-Kheimah second and Qatar's Masraf al-Rayan third. The rankings are based on six financial performance ratios.
Thirty seven North African banks appear in The Banker magazine's ranking of the biggest African banks, based on Tier 1 capital. The four biggest banks in Africa are all South African, but banks in Egypt, Morocco and Algeria account for nine of the 20 biggest banks.
Islamic Bank of Britain has been rebranded Al Rayan Bank following its takeover by Qatar-based Masraf Al-Rayan. Al Rayan Bank is based in Birmingham, in the British Midlands.
National Bank of Kuwait has announced new appointments, including a new CEO in Kuwait; Tariq El-Rifai will head Barclays' operations in Egypt; BNY Mellon has changed its ME&A team; and NBAD has a new Global Head of Merchant Banking.
Credit Agricole has announced that it will sell half of its stake in Saudi Fransi Bank to Prince Walid al-Talal. The Arab Banker's editor reviews the level of foreign bank ownership in the Saudi banking system.
By Dan Davies, Profile Books, £16.99. pp 301
The recent money-laundering scandals at Danske Bank and ING have raised the profile of financial crime within the banking industry. Earlier this year, the Latvian bank ABLV closed its doors after being accused by the US Financial Crimes Enforcement Network of involvement in institutionalised money laundering. On the day that I write this, the Economist has a full page editorial on financial crime and corruption in London.
All of this makes Dan Davies’ book, Lying for Money, an essential read for those in the financial industry. It is an account of financial frauds committed by all manner of criminals, from professional gangsters such as the Kray Brothers who terrorised East London in the 1960s, to Jordan Belfort (‘The Wolf of Wall Street’) and Bernie Madoff.
Davies enlightens us on the standard techniques that are used by fraudsters the world over. There are many examples of ‘Long Firms’, which entail the creation of apparently legitimate companies that raise trade credit before their owners abscond or put their firms into bankruptcy, and of ‘Control Frauds’ where people misuse their authority to divert money for their own benefit (Nick Lesson at Barings and Charles Keating, the Savings & Loan entrepreneur, provide examples of the latter).
Davies is excellent on the recent Payment Protection Insurance (PPI) scandal in the United Kingdom.
As well as being fun to read – I was chuckling out loud at various episodes – this is also a thoughtful book. Davies points out the anomalous nature of the criminalisation of money laundering. Airlines are not prosecuted for helping criminals flee justice, the sellers of guns and balaclavas are not held liable for robberies, but because the global financial system is so ubiquitous, it makes sense to use it as a tool of law enforcement.
Davies also explains that the optimal level of fraud in a society is almost certainly not zero. He describes the wonderfully-named practice of ‘bottomry’ that, in former times, enabled a ship owner to raise a loan against a ship with the condition that if the ship sank, the loan did not need to be repaid. Clearly, huge risk of fraud ensued especially in eras where ships could not be tracked and so could ‘sink’, be repainted, and then reappear under a different name. Yet, Davis points out, bottomry enabled many more entrepreneurs to enter the shipping business than would have been possible if they had been exposed to the risk of total loss, and the result was the more rapid development of trade and economic growth.
This book is 300 pages long, but the pages are small, and this is not a ‘heavy’ read. It is ideal for a business trip or even while on holiday.
Andrew Cunningham
The Arab Bankers Association
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