Thimar

Issue 11 | January 2020 | Arab Bank for Investment & Foreign Trade

Al Masraf Celebrates the UAE National Flag Day

Fazaa and Al Masraf Sign a Memorandum Al Masraf’s Trade Finance DLD Signs Deal with of Understanding (MOU) Department Receives ISO 9001:2015 Al Masraf to Manage OA Accounts 2 CEO’S MESSAGE

I am pleased to present to you the 11th edition of Thimar Magazine, which is periodically issued by Al Masraf. This new edition coincides with the start of 2020 and covers numerous topics that we hope you will enjoy while flipping through its pages.

The U.A.E. economy also made excelled in a number of global competitiveness indices, which reflects its prioneering and succesful efforts in the path towards sustainable development, as prescribed by our country’s wise leadership.

In addition to this, our leadership has worked towards creating a culture of scientific endeavor and motivating the youth to pursue space science and technology. In September 2019, Emirati astronaut Hazza Al Mansouri launched to the International Space Station, becoming the first Emirati and Arab astronaut to complete this historic mission.

At Al Masraf, we continued in our path of growth and development. We launched a number of new initiatives and services as part of our Digital Transformation Programme to enhance the banking experience of our clients. We also pursued our efforts to improve our infrastructure and work environment and to develop our national human resources. In fact, our Emiratisation strategy exceeded the requirements set by the Central Bank. We also launched new banking services and products that fulfill the aspirations of our clients.

2020 marks the 45th anniversary of the establishment of Al Masraf, which first began its operations in 1975. Our institution has played a vital role in supporting the U.A.E.’s economic development. I am certain that Al Masraf’s well-founded strategy and our commitment to provide excellent banking services and to abide by our Government’s standards will enable us to achieve further success in the future.

Finally, I would like to express my heartfelt thanks and gratitude to the Executive Management team and all staff members at Al Masraf for their dedication and sincere efforts.

Faisal Galadari Chief Executive Officer

GENERAL SUPERVISOR INDEX Abderrezak Trabelsi AGM – BPR & Quality 4 Al Masraf Board of Directors Meet to Announce the Q3 Result

EDITORIAL TEAM 9 DLD Signs Deal with Al Masraf to Manage OA Accounts Hussain Al Qallaf Rejoy Koithara Maitha Al Attar 10 “Fazaa” and Al Masraf Sign a Memorandum of Understanding

Designed & Published by: 13 Core Banking T24 Go Live & ACB Ceremony

15 Al Masraf Celebrates 48th UAE National Day

3 ACHIEVEMENTS

well-established governance standards will always help Al Masraf Al Masraf Board of Directors Meet outpace its peers. Our focus will always be to deliver sustainable to Announce the Q3 Result for the growth and improving long-term financial performance.” Financial Year 2019. Al Masraf’s balance sheet registered healthy growth during the first three quarters of 2019 continuing to outpace industry wide The Board of Directors held its sixth meeting for the year 2019 on growth, with 11% increase in Net Loans and 12% increase in 3rd November headed by Mr. Farhat Omar Ben Gdara, Chairman of Customer Deposits over the year-end. The Loan portfolio remains the Board of Directors. The Board discussed several issues related well diversified by business segment and economic sector, while to Al Masraf and expressed its satisfaction with the third quarter the liability base offers stable and diversified sources of funding. financial results. Al Masraf stood at highly competitive positions in both the above areas among its peers. Faisal Galadari, Chief Executive Officer, commented on the results: “We are pleased with Al Masraf’s performance for the nine The results for the nine month period are encouraging and reflect months ended Sept 2019. The year to date net income increased the continuous and successful execution of Al Masraf’s long term by 12% to reach AED 460 million as compared to AED 412 million strategy. In line with this strategy and with a vision for the future, over the prior year, with a solid return on equity of 12%, despite a the bank has concentrated its efforts to invest heavily in technology, challenging economic environment and rising provisions.” operations, risk and compliance. The main focus is to achieve He added: “amidst heightened economic challenges, we still operational efficiency and transformation in digital technology to believe that our proven strategy, excellence in service and deliver a superior customer service experience.

4 EVENTS

Al Masraf Organized a Breast Cancer Awareness Event for its Staff In an effort to raise awareness and reduce the stigma of Breast Cancer through education on symptoms and treatment, Al Masraf, within the framework of its Corporate Social Responsibility, participated in the World Breast Cancer Awareness Month by organizing an awareness event for its staff in the Head Office in Abu Dhabi. The aim of this event was to promote awareness and methods of detection as greater knowledge will lead to earlier detection and better treatment of breast cancer. The event held on October 9th 2019 was attended by Mr. Faisal Galadari, CEO of Al Masraf and the staff members. During the event the participating staff members were shown informative videos with information about Breast cancer and its treatment methods along with statistics to show the seriousness of this issue. The CEO took this opportunity to remind the staff members about the importance of the awareness campaign and early detection.

5 EVENTS

Al Masraf Celebrates Emirati Women’s Day

This year, U.A.E. marked the fifth Emirati Women’s Day celebra- tion on August 28th 2019, an initiative announced for the first time on 15th August 2015 by her Highness Sheikha Fati- ma bint Mubarak, Chairperson of the General Women’s Union, Supreme Chairperson of the Family Development Foundation and President of the Supreme Council for Motherhood and Childhood. In line with this initiative Al Masraf celebrated the Emirati Women’s Day by honoring all the Emirati women in the bank with a token of appreciation. The theme for this year’s celebration was ‘Women, Icons of Tolerance’, with the aim to highlight and promote the values of tolerance. The Senior Management was delighted to highlight the achievements of the Bank in supporting Emirati women in the banking sector as well as the Bank’s role in providing opportunities to support the professional growth of Emirati women. The CEO commented: “The Emirati women at the Al Masraf have demonstrated their efficiency and excellence in all the tasks they have assumed. They have confirmed their strong presence and outstanding contribution to serving the country and contributing to the success and development of the bank.”

Al Masraf Organizes the Live Telecast Landing of UAE’s First Astronaut Hazza Al Mansouri The UAE Astronaut Programme was initiated in 2017 by HH MS-15 spacecraft, which was launched from the Baikonur Sheikh Mohammed bin Rashid Al Maktoum, Vice President Cosmodrome in Kazakhstan, with plans to return to Earth and Prime Minister of the UAE and Ruler of Dubai, and HH aboard Soyuz MS-12 on October 3, 2019. Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Hazzaa Al Mansoori was one of two people selected from Armed Forces, to prepare an Emirati Astronaut for scientific 4,022 candidates, following a series of tests in the UAE space exploration missions, creating a culture of scientific and Russia. His military background helped him pass the endeavor and motivating the youth to pursue space science tests which made him the first Emirati astronaut to the and technology. International Space Station.

On April 12, 2019, the Mohammed Bin Rashid Space On the occasion of his landing on October 3, 2019 Al Masraf Centre (MBRSC) announced that it had selected Hazza Al organized an event to live telecast his return to earth. The Mansoori as the prime astronaut for an eight-day mission to event was attended by Al Masraf staff showing their support the International Space Station (ISS). This maked him the for Hazza and the Space Program of the UAE. Everyone first Emirati in space and the first Arab National onboard cheered and waved the UAE Flag as Hazza’s shuttle the ISS. On September 25, 2019 he boarded the Soyuz touched ground safely.

6 EVENTS

Al Masraf Participates and Volunteers in Dubai Customs’ “Bag of Tolerance” Back-to-School Initiative

Within its efforts to enhance social solidarity, Dubai Customs distributed 400 school bags to students of Al Sa’ada Primary School under the theme “Bag of Tolerance” in the presence and active participation of Ahmed Mahboob Musabih, Director General of Dubai Customs, the Chinese Consul General to Dubai Li Xuhang and his delegation, Ghaya Sultan Al Muhairi, Director of Dubai Educational Zone, Rafi’a bin Ma’dan, School’s Principal and the teachers, along with Al Masraf volunteers.

Al Masraf’s participation with Dubai Customs in the event helped the students start the new school year with high morals and helped lift a burden off the shoulders of the parents. The initiative is organized at the beginning of each school year by the Ghayath Volunteer Team and the Corporate Communications Department at Dubai Customs.

As part of the event, a number of entertainment activities in Chinese and Arabic took place in a festive ambience. These included an awareness workshop about intellectual property rights and the role played by Dubai Customs in preventing counterfeit items from crossing the border.

7 EVENTS

To extend gratitude to volunteers who participated in the department’s initiatives Dubai Customs delegation visits Al Masraf

A delegation from Dubai Customs chaired by Fuad Al Shehhi, In a short speech Mr.Al Shahhi thanked Al Masraf and the head of the Ghayath Volunteer Team visited Al Masraf. The volunteers for their contributions in the success of the Dubai objective of the visit is to extend thanks and gratitude to Al Customs initiatives. Masraf volunteers who participated in the department’s initiatives as their participation contributed to the success of Mr Faisal Galadari praised the spirit of the volunteers and said: these initiatives. “Your voluntary work reflects your forward thinking and your feeling of responsibility, especially that we are living at a time Mr Faisal Galadari CEO of Al Masraf received the delectation where the materialistic attitude prevails over other values, and at Al Masraf Sheik Zayed Branch in Dubai in the presence of the culture of voluntary work is very limited.” Mr. Abderrezak Trabelsi, AGM-BPR and Quality and Mr. Hussein Ohida, AGM-Corporate Support Services. At the end Mr Faisal Galadari and Fuad Al Shehhi awarded the volunteers with certificates of appreciation and wished them continued success in that field.

8 PARTNERSHIPS

DLD Signs Deal with Al Masraf to Manage OA Accounts

Dubai Land Department, represented by its RERA issued regulations relating to OAs, including those regulatory arm RERA, has signed an agreement regarding the general organization, the key law for OAs, and decisions concerning co-owned properties. with Arab Bank for Investment and Foreign Trade (Al Masraf) to manage and service the Owners “We are delighted to introduce this service to our clients and the Association (OA) accounts. existing escrow services to developers. By signing this agreement with the DLD, we can extend our escrow account services for property OAs through the Mollak system,” remarked Ohida. Memorandum of Understanding (MoU) was signed by RERA CEO Marwan Bin Ghalita and Hussein Ohida, Assistant General “This partnership with the DLD is another milestone for Al Masraf Manager –Corporate Support Services. on its journey to launching more value-added transaction banking services in the region,” he added. “RERA seeks to attract as many potential private sector partners as possible to help them implement their strategies to regulate Since Al Masraf is licensed in the UAE to provide banking Dubai’s real estate sector and support all parties in their services to individuals and companies, it has been approved and respective roles,” stated Bin Ghalita. registered under this MoU by RERA as an account trustee, in accordance with Law No. 27 of 2007. “The new MoU with Al Masraf will provide OA accounts more options and access to banking services provided by leading The real estate regulator has also authorised Al Masraf to banks operating in the country,” he noted. provide certain services, such as opening bank accounts for associations, among additional services provided in the terms of The MoU was signed by RERA, as it is one of the authorities the agreement. responsible for implementing Law No. 27 of 2007 regarding co- owned properties in Dubai concerning OAs.

9 PARTNERSHIPS “Fazaa” and Al Masraf Sign a Memorandum of Understanding (MOU)

The Arab Bank for Investment & Foreign Trade (Al Masraf) signed a Memorandum of Understanding (MoU) with the Social Solidarity Fund for the Employees of the Ministry of Interior, as part of the ongoing efforts to enhance coordination and cooperation between the two parties. Under the MoU, Al Masraf employees will have easier access to the services offered to “Fazaa Programme” membership card holders, which cover a wide range of services and basic needs.

The agreement was signed by Mr. Ahmed Alrefaei, Chief Operating Officer at Al Masraf, and Major Nayef Al Shamsi, the Chief Executive Officer of “Fazaa” Programme, at the headquarters of the Social Solidarity Fund for the Employees of the Ministry of Interior. Major Nayef Al Shamsi pointed out that “the partnership between Fazaa Programme and Al Masraf is an example of institutional Mr. Ahmed Alrefaei said: “It is our pleasure to work with the Social cooperation between the banking sector and public authorities. It Solidarity Fund for the Employees of the Ministry of Interior to is a reflection of the Ministry’s keenness on instilling the concepts secure the membership of Al Masraf employees in the Fazaa of giving and social solidarity and on widening the scope of Programme and give them access to the many services and beneficiaries having access to the services provided by the benefits it provides. The signature of the MoU comes as part of Solidarity Fund. Of course, all of this is based on the instructions our initiative to ensure the happiness of our employees. It is a of His Highness Sheikh Saif bin Zayed Al Nahyan, Deputy Prime new step in the journey of Al Masraf towards implementing the Minister, Minister of Interior and Chairman of the Social Solidarity best practices with regard to the wellbeing and quality of life of Fund for the employees of the Ministry of Interior.” its employees, instilling a culture of happiness and spreading positivity in the workplace. This constitutes a major priority for “Al Masraf employees will receive Fazaa Programme services us, and it is a primary indicator of the success of our business upon fulfilment of membership terms and conditions. These model”. services include privileges offered by the programme inside and outside the country, as well as discounts in various sectors such He added: “Fazaa Programme is a model for social partnership, as retail sales, hotels, travel, tourism, compensation for personal which provides a wide range of discounts and facilities offered accidents, car lease-to-own offers, Fazaa shops for food items, by the Programme’s partners from various economic sectors,” Etihad air miles and other services that meet the different needs Alrefaei added. By signing this MoU, Al Masraf seeks to give its of members of society,” Al Shamsi added. employees access to a bundle of services that would reduce their financial burdens and facilitate their lives. This, in turn, would It is worth noting that Fazaa Programme is a national initiative promote organisational happiness and spread positive energy launched by the Ministry of Interior’s Social Solidarity Fund, with among employees, according to Alrefaei. the support of His Highness Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Interior, and Chairman of the Ministry of the Interior’s Social Solidarity Fund.

10 EVENTS Al Masraf Launches the Bank With Us & Win Gold Promotion for its Clients Customers can win prizes of up to 2.7 Kgs of Gold.

After the success of the “Save & Win Gold” Campaign, Al Masraf totaling up to 2.7 kgs of Gold in addition to get the best returns on announced the launch of its new Savings campaign “Bank With Us their savings. The launch of this new campaign is in line with the & Win Gold”, which aims to encourage customers to save with Al Bank’s strategy of providing outstanding rewards and benefits to Masraf and win up to 2.7 kgs of Gold. The campaign, which runs customers.” until 30th April 2020, offers an opportunity to 45 customers to win Gold bars totaling to 2.7 kgs. Current, New to Bank Customers and He explained that the Bank is targeting its Existing Customers, Small and Medium-sized Enterprises (SMEs) who open a Savings New to Bank Customers and Small and Medium Enterprises or Current accounts, Fixed Deposits or a Wakala Account will have (SMEs) who wish to benefit through this campaign. The goal is the opportunity to participate in the monthly draw of 5 Gold bars to promote a culture of sound savings and planning for the future. and qualify for the grand prize. The Grand Prize gives a chance to The campaign is characterized by easy and convenient conditions 5 lucky customers to take home 1kg, 500 gms, 520 gms, 100 gms where-in Existing Customers can enter the draw by increasing the & 50 gms of Gold respectively. balance in their accounts and New to Bank Customers can enter the draw through the opening of new accounts and maintaining Commenting on the promotion, Talal Al Mazrooei, Head of Consumer adequate balances. Banking and Wealth Management, said: “The tremendous success of the previous Save & Win Gold Campaign has encouraged us Al Masraf offers its customers a wide range of products and to come up with a bigger and better campaign with higher prize services including transactional and interest bearing accounts, money. With the Bank With Us & Win Gold Promotion, we are flexible fixed deposit products as well as a robust online and mobile encouraging our customers to save and get a chance to win gold bars banking service.

Al Masraf Announces the Winners of “Bank With Us & Win Gold”

Al Masraf announced the lucky winners of its promotional campaign “Bank With Us & Win Gold” for accounts and deposits, aimed at encouraging individual and SME clients to save more by rewarding them with Gold.

Talal Al Mazrooei, Head of Consumer Banking & Wealth Management and Yousif Kruse, Head of Corporate Banking (AUH & AIN) Region & Head SME distributed prizes to the lucky winners at a special ceremony.

Talal Al Mazrooei, said: “I would like to take this opportunity to congratulate the lucky winners of the mega campaign which attracted significant interest from both our individual and SME clients and has been an amazing success. The promotion offered customers a unique opportunity to win Gold while also saving towards a secure future.”

11 TRAINING & DEVELOPMENTS

Within the framework of the “Knowledge Sharing” seminar series Al Masraf organizes a seminar on investment in global markets

The Consumer Banking and Wealth Management Department but opportunistic. David said, investors should invest in funds (CWM) has initiated to bring together investment clients, global with a strong track record and great growth potential, using a fund managers and our investment team at regular intervals to comprehensive system that covers all critical parts of stock linked share knowledge about changing global investment markets and investment, including risk management. to project emerging investment opportunities for our clients. These gatherings will also provide the investment team with updates David highlighted the global equity funds portfolio, global regular on the product performance and global market viewpoints from income paying portfolio and multi asset portfolio funds. He also renowned global portfolio managers. briefed the attendees by the fund managers, fund related risks and other benchmark linked evaluation before a fund is included in the Recently the Al Masraf CWM team in collaboration with ENBD portfolio. Asset Management, organized two knowledge sharing seminars on investment opportunities in the UAE. This event, named “Investment Gathering” was conducted for Q3 in the Sheikh Zayed Road Branch, Dubai and Q4 in the Al Masraf Auditorium, in Abu Dhabi. Both seminars highlighted the long term investment strategies for the ENBD and Jupiter Asset Management (a London based Fund Manager) funds respectively with a backdrop of global macro outlook for 2020.

The Senior Management, premium clients of Al Masraf and the Bank staff attended the seminar and applauded the knowledge that was shared. The fund managers also highlighted the fund strategies, especially on MENA equities and MENA fixed income regular income funds. The funds are professionally managed, well diversified and morning star rated funds.

Guest speaker David Lewis, Fund Manager, Jupiter Asset Management covered a formula for achieving consistent results and investment tips on buying great global funds and how to accelerate investor’s returns with limited capital, by minimizing risk.

It was emphasized that Investment Outlook for 2020 is challenging

12 TRAINING & DEVELOPMENTS

Al Masraf Launch its new Banking System T24

As part of its efforts to shift towards digitization, Al Masraf announced the completion of work on the banking infrastructure project and the launch of the new system T24, starting from 3rd August 2019. In addition, 18 banking systems were successfully replaced in record time.

On the occasion of the launch of the new system, Al Masraf held a ceremony honoring the teams and individuals who contributed to this achievement. Faisal Galadari, Chief Executive Officer at Al Masraf and a number of senior management team in Temenos and Al Masraf attended the ceremony.

Certificates of appreciation were distributed to all individuals and teams who participated in the completion of the project.

13 EVENTS

Al Masraf Celebrates UAE National Flag Day The Arab Bank for Investment and Foreign Trade organized a unity and pride in this flag and the great symbolism that reflects the special event in celebration of “UAE National Flag Day” at Al spirit of our union, our strength and our attachment to our precious Masraf Head Office in Abu Dhabi. homeland.”

The event comes in parallel with the UAE’s celebrations of He added, “as a national banking institution that contributes to the the National Flag Day. During the event, Al Masraf employees development and support of the national economy, our celebration raised the UAE’s flag in the presence of Chairman Mr. Farhat of the state flag is a confirmation of our loyalty to our wise leadership, Omar Ben Gdara, CEO Faisal Galadari, Board Members as well vision and success in placing the UAE among the most advanced as a number of senior management and employees. and prosperous countries in the world.”

Galadari commented: “I am honored to join my colleagues in raising the flag of the State on this great occasion as an expression of our

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14 EVENTS

Al Masraf Celebrates 48th UAE National Day The Arab Bank for Investment and Foreign Trade (Al Masraf) The event witnessed a UAE cuisine dishes competition, where celebrated the 48th National Day of UAE at the Bank’s Head Office the staff showcased various delicacies of UAE. The dishes were in Abu Dhabi in the presence of their CEO, Mr. Faisal Galadari, displayed for all to taste and evaluate at the end of which three the management and the staff. Winners were selected for best dishes. Samina Ali from Finance Department was placed 1st followed by Yousif Al Hammadi from Mr. Galadari said: “The National Day of the UAE is an event that Information Technology and Layal Taha from Consumer & Wealth brings us pride in what our nation has achieved, the vision and Management in 2nd & 3rd positions respectively. All the participants wisdom of its inspirational leadership, and the support and and Winners received a gift from the Management as a token of well-being of its people in all fields and sectors.” appreciation.

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16 ACHIEVEMENTS INTRODUCING OUR NEW CONTACTLESS CARDS Smart way to pay

Al Masraf’s Trade Finance Department Receives ISO 9001:2015 Certification for Quality Management System Excellence Al Masraf’s Trade Finance Department (TFS) has been certified with MAJID ABDULLAH MAJID ABDULLAH ISO 9001:2015 is the latest edition of the International MAJID ABDULLAH MAJID ABDULLAH ISO 9001:2015 by ABS Quality Evaluations-USA. This recognition, Organization for Standardization (ISO)’s flagship Quality ISO 9001:2015 as certified by ABS Quality Evaluations Inc., affirms Management Systems (QMS) standard based on Risk and the focus and commitment of the Trade Finance Department Opportunity. It considers the leadership’s active involvement in towards achieving the Bank’s Vision, Mission and Objectives. successfully implementing QMS and is one of ISO 9001:2015 most significant certification worldwide. Mr. Faisal Galadari, CEO at Al Masraf received the certificate from Mr. R.S. Mani, Regional General Manager, ABS Quality ISO 9001:2015 certification reaffirms the Trade Finance Evaluations Inc. in presence of our AGMs Mr. Hussein Ohida and Department’s to focus in providing exemplary trade finance services Mr. Abderrezak Trabelsi. Also present were Mr. Harsha Arukgoda, to the esteemed customers of Al Masraf. The certification is an Head - Trade Finance Department and Mr. Akram Nofal, Manager indicator of our continued commitment to achieve organizational -Trade Finance. excellence.

Al Masraf Delegates Visited Sibos 2019 – London Al Masraf participated in The Sibos 2019 Conference, which was held in London from 23-26 September. This important global financial conference, described as “the most ambitious Sibos yet”, was held this year under the theme “Thriving in a Hyper-connected World.”

Al Masraf ’s participation in the annual Sibos conference, organised by SWIFT, the global provider of secure financial messaging services, stems from the event’s importance as one of the world’s premier financial services events, providing a networking and exhibition forum for the global financial community to debate and With hundreds of speakers and conference sessions, nearly 200 collaborate in the areas of payments, securities, cash management exhibitors, and multiple networking events, Sibos is the place to and trade. discuss business strategy, build networks and collectively shape the future of the financial industry. Al Masraf is always keen on participating in Sibos and other international financial conferences and forums. Supported by its rich This year, the conference focused on recognizing the challenges financial experience and growing international network, Al Masraf and opportunities that mass digitization and data-driven always aims to be on the forefront, keep up with any developments, relationships present for the Sibos community. and participate in discussions that contribute positively toward the development of the international financial and banking fields. The conference explored the impact of new technologies on infrastructures, value propositions and business models and held a It is notable that the annual conference brings together some discussion to identify the culture, skills and working practices that 8,000 business leaders, decision makers and topic experts from a organizations need to maximize the potential of both human and range of financial institutions, market infrastructures, multinational machine capabilities. almasrafUAE corporations and technology partners.

17 INTERVIEW

In an Interview with Al Khaleej Newspaper Faisal Galadari: Government-Backed Loan Guarantee Scheme

and is looked up to as a model of comprehensive development. Through its initiatives, the country is constantly demonstrating its determination to ensure the happiness of nationals and residents.”

Mr. Galadari stressed the importance of the U.A.E. government’s effective incentivizing initiatives to stimulate growth in all economic sectors, adding that “we look forward to learning about the new plan announced by his Excellency Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the U.A.E. and Ruler of Dubai, may God preserve him, particularly with regard to the banking sector, which is the best reflection of economic growth.”

Mr. Galadari said that the financial sector, and the banking sector in particular, are the foundation of economic growth in the country. He also pointed out that liquidity in the sector is at its highest, which is further proof of the sector’s stability and of the healthy bank capitalization ratios. This also creates more lending opportunities for various sectors going forward, including SMEs. In this context, incentives can play a major role in encouraging “Our visionary leadership considers the happiness and well-being banks to provide more lending opportunities to this sector, thereby of its citizens to be a top priority, and its new initiative proves contributing to its growth. that innovation in developing government work is limitless,” Arab Bank for Investment and Foreign Trade (Al Masraf) CEO Faisal He added, “lending levels at the moment are still limited, and it Galadari said. “The U.A.E. has managed to address challenges is possible to adopt a number of incentives, possibly through a with efficiency and skill and has once again proven its ability to government-backed loan guarantee scheme.” face various challenges and difficulties.” He also spoke about an initiative to create more job opportunities “The U.A.E. government is steadily and rapidly advancing on for young nationals in the banking sector, noting that the presence the path of development and well-being, established by the of U.A.E. nationals in the sector is invaluable, not only because Founders of the Union. Today, due to the piercing vision of its they understand the nature of the market and clients, but also due leadership, the U.A.E. is one of the best countries in the world to the dynamic role of the banking sector.

18 IN-FOCUS

Faisal Galadari: Government-Backed Loan Guarantee Scheme

Mohammad Ashour Head of Audit

• Administrative and organizational reasons: It represented in The Role of Corporate Governance complicated (bureaucratic) procedures, ambiguity and multiplicity in Combating Financial Corruption of legislation, or failure to work with it, and within the institution because it does not rely on good competencies in all administra- Financial corruption is financial deviations and violation of the tive aspects. provisions and rules currently adopted in the state’s organizations (administratively) and its institutions, in violation of financial control The World Bank has Identified a Set of regulations and instructions. Reasons for the Emergence of Financial and Another definition of corruption is the misuse of public Administrative Corruption, Most Notably the influence to achieve private profits, or it is a lawlessness, order, and following: non-compliance with them in order to achieve political, economic and social interests of the individual or a specific group. • Marginalization of the role of regulatory institutions, and they may suffer from corruption itself. The definition of Transparency International is (misuse of public • The presence of bureaucracy in state institutions. authority for private gain). • A political power space, perhaps due to the power struggle. Either the definition of the International Monetary Fund (IMF) • Weak civil society institutions and the marginalization of their role (the long approved hands relationship that aims to obtain benefits from this behavior for one person or a related group • The appropriate social and political environment availability between individuals). for corruption to emerge. Causes of Financial Corruption There is no doubt that the first way to solve problems is to Manifestations of Financial Corruption determine the reasons for their emergence. The researchers It represented by financial deviations and non-compliance with have been looking for to find out the reasons of financial the financial rules and provisions that regulate the administrative corruption and the multiplicity of their classification methods the and financial workflow in the country and its institutions, have mentioned the causes of financial corruption as follows: and violating the instructions of the financial control bodies. It • Political reasons: The political reasons are the absence of can be displayed as follows: freedoms and a democratic system, within the institutions of civil • Bribery: This means that a person gets a benefit that is mostly society, weak media and control system. financial, to pass or execute business other than legislation or professional principles. • Social reasons: represented by wars, their effects and results in society, external interventions, sectarianism, tribalism, • Patronage: Passing what powerful organizations and entities and patronage, the anxiety caused by instability from situations want through their influence without entitlement to them at all. and apprehension of the next unknown raising money by any • Favoritism: Preferring one party to another unlawfully, as in means to face this future and the mysterious unknown. awarding contracts, bids, or lease and investment contracts. • Economic reasons: the deteriorating and stimulating economic conditions for corruption, as well as the high cost of living.

19 IN-FOCUS

• Mediation: It means the intervention of a person with a position the inside, and for the board of directors to supervise it to (functional or political organization) in favor of those who are not eligible protect the interests and financial rights of shareholders.” for appointment, assignment of contract, or occupation of office, etc. In other words,

• Extortion and forgery: For obtaining money from people Governance means order, meaning there are using their position, with legal or administrative justifications, or systems that control relations between the hiding the instructions applicable to the persons concerned, as main parties that affect performance, and it happens in the tax departments, falsification of the educational includes the elements of strengthening the institution certificate or counterfeiting of money. in the end and defining who will do what

• Spoiling of public money, the black market and smuggling: Governance Goals and Criteria for their using the powers granted to the person, fraud, or using the job positions to dispose of state funds secretly, without the right to Implementation pass goods through the outlets of the black market, or Governance rules and regulations aim to achieve transparency smuggling the state’s wealth. and fairness and grant the right to accountability of the company’s management and thus achieve protection for • Slowdown in completing business deals, especially urgent shareholders and policyholders all while taking into account the and important deals such as retirement and supporting documents interests of work and workers and limit the exploitation of power which confirming the validity of official certificates or letters. in a non-public interest in a manner that leads to the development of investment and encourage its flow and development of savings Fourth: The Effects of Financial Corruption and maximize profitability and provide new job opportunities.

Financial corruption has a cost, especially in public companies, Also, these rules emphasize the importance of adhering to the where financial gains and other benefits which obtained at the provisions of the law and work to ensure a review of financial expense of society. In general, some of the economic effects of performance and the existence of administrative structures that corruption can be felt, as found by researchers’ studies as follows enable accountability of management to shareholders with the formation of a review committee from non-members of the • Corruption contributes to the low efficiency of public executive board of directors that have many tasks, powers and investment and the weakening of the level of quality in public powers to achieve independent oversight of implementation infrastructure, due to bribes that limit the resources allocated to investment and misdirect or increase their cost. Governance is implemented according to five criteria reached by the Organization for Economic Cooperation and • Corruption has a direct impact on the size and quality Development in 1999 and its amendments in 2004, which are: of foreign investment resources because of these potentials for the transfer of skills and technology. Studies have 1. Ensuring that there is a basis for an effective framework shown that corruption weakens these investment flows and for corporate governance: - The corporate governance may disrupt them, and thus contributes to the low volume of framework must include both the enhancement of market taxes and then the decline in human development indicators, transparency and efficiency, it must also be consistent with tely especially with regard to education indicators and health. in the general assembly meetings.

• Corruption has linked to the deterioration of the income 2. Preserving the rights of all shareholders: - It includes and wealth distribution situation, through the exploitation transferring ownership of shares, choosing the board of directors, of influential people to their privileged positions in society obtaining a dividend in profits, reviewing financial statements, and and the political system, which allows them to monopolize the right of shareholders to participate effectively in the general the largest part of the economic benefits provided by the assembly meetings. system in addition to their ability to accumulate assets on a continuous basis, which leads to widening the gap 3. Equality in dealing with all shareholders: It means equality between this elite and the rest of the community. between shareholders within each category, their right to defend their legal rights and vote in the General Assembly on the basic • Low market prices for companies’ shares on financial market deci-sions, and access to all transactions with members of the and exchanges which lead to the heavy financial losses that board of directors or executives. hurt shareholder interests and other stakeholders 4. The role of stakeholders or parties associated with the The Concept of Governance company: It includes respecting their legal rights and compensation for any violation of those rights, as well as their effective participation mechanisms in monitoring the company. Stakeholders mean banks, • IFC defines governance as:“the system by which companies workers, document holders, suppliers, and customers. are managed and controlled.” 5. Disclosure and transparency: - It deals with the disclosure • It is also defined by the Organization for Economic Co operation of important information, the role of the auditor and the and Development (OECD) as: “a set of relationships between disclosure of ownership of the maximum percentage of shares those in charge of the company’s management, board and disclosure related to members of the Board of Directors and of directors, shareholders and other stakeholders”. executives. All such information is disclosed in a fair manner • There are those who define it as: “the sum of the” rules between all shareholders and stakeholders in a timely manner of the game “that are used to manage the company from and immediately.

20 IN-FOCUS

Governance Mechanisms Internal Auditing: Through their activities, the internal auditors increase the credibility and fairness, improve the behavior of Corporate governance mechanisms mainly work to protect and employees working in companies and reduce the risks of guarantee the rights of shareholders and all interested parties administrative and financial corruption. associated with the company’s business through provisions for control and governor over the performance of the company’s management and auditor. Second: The Role of External Governance The group of mechanisms used can be classified into two types Mechanisms of governance mechanisms as follows, according to one of the articles published in this regard External Audit: External auditor’s help companies achieve accountability and integrity, improve processes in them, and Corporate Governance Mechanisms Related to cultivate trust among stakeholders in general. the Client: Laws and Legislations: Of course, they affect the mechanisms of governance in a way that repre-sents a deterrent in the way of • The strength of the internal audit department within the facility. manipulation and corruption. • The extent of the enterprise management commitment to applying international and local accounting standards. Through the role it plays in • The strength and independence of the audit committee. Global Transparency Organization: exerting pressure to fight financial and administrative corruption in • The degree of enterprise dependence on advanced information countries, for example the World Trade Organization is pushing for technology. better financial and accounting systems, and in the banking sector, the Basel Committee is exerting pressure to exercise governance Corporate Governance Mechanisms Associated in it. with Auditors: Thus, it is clear that the role that different governance mechanisms • Mandatory change of auditor on a regular basis. can play in reducing the phenomenon of financial corruption and • The degree of independence of the auditor. combating its spread. • The extent of the auditor’s commitment to implementing international and local audit standards. Conclusion, Findings and Recommendations • The extent to which the auditor provides profes-sional consulting services to the audited entity. The appearance of the Agency’s Theory and the associated conflicts of interests between members of the boards of directors The Role of Governance Mechanisms in of companies and between owners, the most prominent of which is Combating Financial Forruption the problem of financial and administrative corruption has increased interest and thinking about the necessity of having a set of laws, Corporate governance plays an important role in addressing the regulations and mechanisms that protect the interests of owners problems experienced by these companies, the most prominent and other stakeholders, by limiting the financial and administrative of which is the problem of financial and administrative manipulation that occurs in these companies by the executive corruption, through a set of mechanisms classified by both Hess departments, as it is the party that holds the reins of affairs within and Impavido to internal and external governance mechanisms the company, where financial and administrative corruption is one as presented by Professor Abbas Hamid Al-Tamimi as follows: of the most serious problems experienced by companies and institutions. First: The Role of Internal Mechanisms of Governance The commitment to corporate governance mechanisms and rules by companies leads to reducing and preventing financial and Board of Directors: Researchers consider it the best tool to administrative corruption and increasing the efficiency of their monitor management behavior, as it protects the capital invested in performance, and thus increasing the confidence of local and the company from misuse by management, through its legal foreign investors in companies. powers to appoint, exempt and reward senior management. The strong board also actively participates in setting the company’s strategy, provides appropriate incentives to management, monitors its behavior and performs its performance, thereby maximizing the value of the company.

The Internal Audit Committee: It contributes to increasing confidence and transparency in the financial information disclosed by companies, through its role in preparing financial reports and supervising the function of internal audit in companies, as well as its role in supporting external audit bodies and increasing their independence, as well as its role in emphasizing commitment Principles of corporate governance.

21 PHOTOS TALK Al Masraf Organizes a Honorary Ceremony for Outstanding Branch Staff for Q3 Within the framework of its appreciation and recognition of its distinguished employees, Al Masraf held a special ceremony at its Head Office in Abu Dhabi to honor the employees of the branches for their outstanding performance in the third quarter of 2019.

The ceremony was attended by Faisal Galadari, Chief Executive Officer of Al Masraf and Abderrezak Trabelsi, Assistant General Manager, BPR and Quality and members of the management team and branch managers.

Commenting on this event, Faisal Galadari said: “We have all sought, over the past few years, towards a major transformation of Al Masraf through a clear strategy. And today we stand in an excellent position to achieve our goals and move to a different level with the possibilities and financial strength we possess in addition to talent and ability. Our employees are our strength, and the cooperation of employees in working as a coherent team is an essential element in achieving our goals. I am confident that everyone will work towards achieving more innovation and progress. This is our collective agenda as we are fully prepared to motivate, inspire and reward those who help the Bank achieve its goals”.

The list of winners and the category of awards are shown below

22 صورة وخبر

المصرف ينظم حفل تكريم لموظفي الفروع المتمييزين أقام المصرف حفل خاص في مركزه الرئيسي بابوظبي لتكريم موظفي الفروع اصحاب األداء المتميز في الربع الثالث من العام 2019 وذلك في إطار تقديره وتكريمه لموظفيه المتميزين.

شهد الحفل فيصل كلداري الرئيس التنفيذي للمصرف و عبد الرزاق طرابلسي مساعد المدير العام، كما شارك أعضاء من فريق اإلدارة العليا وعدد من مدراء الفروع.

وتعليقًا على هذا الحدث، قال فيصل كلداري: “لقد سعينا جميعًا، على مدى السنوات القليلة الماضية، نحو إحداث تحويل جذري في المصرف من خالل استراتيجية واضحة. وها نحن اليوم في مكانة متقدمة لتحقيق هذا االلتزام واالنتقال إلى مستوى مختلف بما نمتلكه من اإلمكانات والقوة المالية باإلضافة إلى الموهبة والقدرة. فموظفونا هم موطن ّقوتنا، وتعاون ّالموظفين بالعمل كفريق متماسك هو عنصر أساسي في تحقيق اهدافنا. و اجدد الدعوة للجميع نحو تحقيق المزيد من االبتكار والتقدم. هذا هو جدول أعمالنا الجماعي حيث أننا على استعداد تام لتحفيز وإلهام ومكافأة أولئك اللذين يساعدون المصرف على تحقيق أهدافه.”

في ما يلي قائمة بالفائزين حسب فئات الجوائز

23 DUBAI FITNESS CHALLENGE

Al Masraf Participates in “Dubai Fitness Challenge 2019”

Employees and management of Al Masraf accepted the Dubai Fitness Challenge 30x30 announced by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council. This ambitious program aimed at motivating Dubai’s residents and visitors to commit to fitness and sports activities for at least 30 minutes a day over a 30-day period.

Al Masraf Staff participated in a sports day at the Kite Beach in Jumeirah where they enjoyed outdoor sports activities in a vibrant atmosphere.

Al Masraf is committed to support all initiatives and activities that benefit the community and motivate the residents to adopt a healthy lifestyle and build a healthier future for themselves and for their families.

24 تحدي دبي للياقة

المصرف يشارك في “تحدي دبي للياقة 2019”

تفاعل المصرف بإدارته وموظفيه مع مبادرة “تحدي دبي” التي كان قد اطلقها سمو الشيخ حمدان بن محمد بن راشد آل مكتوم ولي عهد دبي في خطوة تهدف الى جعل دبي احدى اكثر المدن نشاطًا وممارسة للرياضة على مستوى العالم.

وقد شارك عدد كبير من مدراء وموظفي المصرف في يوم رياضي على شاطئ “الكايت بيتش” في جميرا حيث حرصوا جميعًا على ممارسة بعض الرياضات المفتوحة في أجواء إحتفالية رائعة.

ويحرص المصرف دائمًا على المشاركة في المبادرات الرياضية واالجتماعية التي تهدف إلى احداث تغيير إيجابي في المجتمع وتشجع على تبني نمط حياة صحي.

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