Volume XXVI, Number 1 Autumn 2015 £5.95 The Global Magazine of the Arab Bankers Association (ABA) AHLI UNITED BANK BUILDING A PAN-REGIONAL BANK BASED IN THE GCC IRAQI BANKS LOOK TO THE FUTURE HENLEY & PARTNERS AND LONDON & CAPITAL RESIDENCY, CITIZENSHIP AND INVESTMENTS SAUDI FINANCIAL MARKETS PREPARING FOR CHANGE THE FIGHT AGAINST FINANCIAL CRIME HOW TO ENGAGE WITH CHINESE BANKS UNDERSTANDING THE DIAMOND MARKET OVER £742M DRAWN DOWN BY MFL CLIENTS DURING 2014 7UJLHNHPU^VYRPUN[`WPJHSS`VUH;=++-;;764AIHZPZ5.4OHZHZZPZ[LKJSPLU[Z^P[O+7584-<-, HUK,:)?6,7?6MHJPSP[PLZVMHSTVZ[T,LHSZYHUNLPUZPaLMYVTJT^P[OUV\WWLYSPTP[ :LNHYKSLZZVM[OLZPaLVM[OLKLHS5.4^PSS[YLH[`V\PU[OLZHTLWYVMLZZPVUHSTHUULY œLSVUNLZ[HISPZOLK[LHTH[5.4PZH[[OLMVYLMYVU[VMZ[Y\J[\YLKYLHSLZ[H[LUHUJPUNWYVK\J[Z ?LTHPU[HPUYPNVYV\ZHUKSVUNZ[HUKPUNYLSH[PVUZOPWZ^P[OSLUKLYZVSKHUKUL^[VLUZ\YLV\Y JSPLU[ZOH]L[OLTH_PT\TL_WVZ\YL^OLUZLLRPUNUHUJL œLTHYRL[WSHJLMVYSLUKLYZOHZPUJYLHZLKK\YPUNHUK^LOH]LZLLUHKYHTH[PJU\TILYVM 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Number 1, Autumn 2015 DRAWN DOWN Contents1 BY MFL CLIENTS DURING 2014 › Letter from the Chief Executive Officer 6 7UJLHNHPU^VYRPUN[`WPJHSS`VUH;=++-;;764AIHZPZ5.4OHZHZZPZ[LKJSPLU[Z^P[O+7584-<-, › Letter from the Editor 7 HUK,:)?6,7?6MHJPSP[PLZVMHSTVZ[T,LHSZYHUNLPUZPaLMYVTJT^P[OUV\WWLYSPTP[ :LNHYKSLZZVM[OLZPaLVM[OLKLHS5.4^PSS[YLH[`V\PU[OLZHTLWYVMLZZPVUHSTHUULY › People and news 8 œLSVUNLZ[HISPZOLK[LHTH[5.4PZH[[OLMVYLMYVU[VMZ[Y\J[\YLKYLHSLZ[H[LUHUJPUNWYVK\J[Z ?LTHPU[HPUYPNVYV\ZHUKSVUNZ[HUKPUNYLSH[PVUZOPWZ^P[OSLUKLYZVSKHUKUL^[VLUZ\YLV\Y › JSPLU[ZOH]L[OLTH_PT\TL_WVZ\YL^OLUZLLRPUNUHUJL COVER STORY Ahli United Bank: building œLTHYRL[WSHJLMVYSLUKLYZOHZPUJYLHZLKK\YPUNHUK^LOH]LZLLUHKYHTH[PJU\TILYVM Cover: © Shutterstock a pan-regional bank based UL^LU[YHU[ZHUKL_JP[PUNSLUKLYZYL[\YUPUN[V[OLTHYRL[œLWYPJPUNPZNYHK\HSS`PTWYV]PUN^P[O in the GCC 12 THYNPUZHUKSLUKPUN[LYTZPTWYV]PUNPUYLJLU[TVU[OZ › Adel El-Labban: a modern banker with ARAB BANKERS ASSOCIATION Riverside Tower Penthouse Residential Equity Release traditional values 16 Chief Executive Officer Residential Development Investment Industrial Property George Kanaan Board of Directors › Banking system profile: Kuwait 18 THE PROPOSAL THE PROPOSAL THE PROPOSAL Chairman œLJSPLU[^HZHUL_WLYPLUJLK œLJSPLU[Z^LYLHOPNOUL[^VY[O œLJSPLU[^HZHULZ[HISPZOLKWYVWLY[` Abdulaziz al-Khereiji, Riyad Bank YLZPKLU[PHSKL]LSVWLY^P[OHNVVK MHTPS`MYVT[OL5PKKSL-HZ[œL` SHUKSVYK^P[OHZ\IZ[HU[PHSWVY[MVSPV Treasurer › COVER STORY OHKV^ULKHZ\IZ[HU[PHSYLZPKLU[PHS VMPUK\Z[YPHSWYVWLY[PLZSVJH[LK^P[OPU Samer Hijazi, KPMG [YHJRYLJVYK0LOHKV^ULK[OLZP[L Preparing for change in Saudi financial markets 20 SVJH[LKVUHWYPTLœHTLZZPKL WLU[OV\ZLHWHY[TLU[PU[OL:LNLU[Z [OL4VUKVUHYLHœYV\NOHZZL[ Corporate Secretary SVJH[PVUMVYZVTL`LHYZHUKPTWYV]LK 8HYRHYLHZ\IQLJ[[VHUL_PZ[PUN THUHNLTLU[[OLJSPLU[OHKNYLH[S` Vivien Davies, Edwin Coe LLP [OLWSHUUPUNJVUZLU[[VWYV]PKLH TVY[NHNL PUJYLHZLK[OLWVY[MVSPV]HS\LœL Directors › GCC banks: statistical overview 24 UL^YLZPKLU[[V^LYJVTWYPZPUN J\YYLU[SLUKLY^HZYLS\J[HU[[VHSSV^ George Kanaan, Chief Executive Officer Z[VYL`ZHUK\UKLYNYV\UKWHYRPUN œLL_PZ[PUNTVY[NHNLLOHKYLJLU[S` [OLJSPLU[[VYLSLHZLLX\P[`[VHZZPZ[PU Ziyad Akrouk, Europe Arab Bank JOHUNLKSLUKPUNWVSPJ`HUK^HZUV[ NYV^PUN[OLWVY[MVSPV Tarek Amer, National Bank of Egypt (UK) THE RESULT HISL[VL_[LUK[OLMHJPSP[` Farid Barakat, National Bank of Abu Dhabi › COVER STORY ?L^LYLHISL[VHZZPZ[[OLJSPLU[ THE RESULT Fawzi Dajani, National Bank of Kuwait Iraqi banks look ^P[OHqVULZ[VWZOVWrZLUPVYHUK THE RESULT 4PHPZPUN^P[OHUL^SLUKLY^OV Hani Kablawi, BNY Mellon Q\UPVYMHJPSP[`WYV]PKPUNOPT ?LZWVRL[VHU\TILYVMSLUKLYZ NYHZWLK[OLJSPLU[pZI\ZPULZZPKLHZ^L Fuad Khadder, HSBC to the future 26 Charbel Khazen, Gulf International Bank ^OV\UKLYZ[VVK[OLMHTPS`pZ ^LYLHISL[VZLJ\YLHUL^MHJPSP[` SVHU[VJVZ[MHJPSP[`œLJSPLU[^HZ Bert de Ruiter, QIB (UK) UV[YLX\PYLK[VHKKHU`HKKP[PVUHS IHJRNYV\UKHUKOPZ[VY`?P[O[OPZ ?P[OH4<>YH[PVVM VM[OLUL^ Amr Turk, Blom Bank France LX\P[`[V[OLKLHS \UKLYZ[HUKPUN[OLUL^IHUR^HZHISL › Egyptian banks: a confident outlook 28 [V^VYRLMJPLU[S`^P[OPU[OLJVUULZ ]HS\LZ[OLJSPLU[^HZHISL[VYLSLHZL œLJHWP[HSZ[HJR^HZZSPJLK[VNP]L V]LYTVM[YHWWLKLX\P[`[V VMJ\YYLU[q3UV^AV\Y+\Z[VTLYr The views expressed by authors and contributors [OLJSPLU[HISLUKLKJVZ[VMJHWP[HS JVTWSPHUJLPZZ\LZ JVU[YPI\[L[V^HYKZUL^HJX\PZP[PVUZ in the pages of the Arab Banker do not necessarily › Looking towards Africa: Moroccan banks 32 [OH[YLLJ[LK[OLYPZRHZZVJPH[LK HSSV^PUNOPZWVY[MVSPV[VNYV^PU reflect the view of the Arab Banker, the Arab ^P[O[OL[YHUZHJ[PVUœLZJOLTL )UL^MHJPSP[`^HZHNYLLKHUKH YLHS[LYTZI`HSTVZ[TVUJL Bankers Association (ABA), any of its office bearers OHKH/,>VMV]LYT MYLZOMHJPSP[`H[ 4<>^HZHNYLLK SL]LYHNLK or their institutions. Furthermore, while the Arab HUKJVTWSL[LK Banker and the ABA make every effort to ensure › The Energy Scene: an interview with Ali Aissaoui 35 that the information contained in the magazine’s pages is accurate, neither the Arab Banker nor the ABA accept any liability for loss or damage arising › Compliance and the fight against financial crime 38 Raed Hanna from any opinion or fact, errors or omissions. Readers should take customary precautions and T: +44 (0)20 7491 9076 undertake commercial checks before entering into 7 Old Park Lane, London W1K 1QR business arrangements of any kind. ^^^T\[\HSUHUJLJV\R 4 CONTENTS ARAB BANKER Contents2 The Arab Banker is the global magazine of the Arab Bankers Association (ABA) › Using intelligence and technology to guard 43 Upper Grosvenor Street London W1K 2NJ, UK against cyber attacks 42 Telephone + 44 (0) 20 7659 4889 Fax + 44 (0) 20 7659 4868 Email [email protected] › Typologies of financial crime: the MENAFAT report 44 George Kanaan Chief Executive Officer [email protected] › Update on Middle East sovereign credit ratings 46 Andrew Cunningham Editor in Chief [email protected] Houda Lahiani › Engaging Chinese banks: strategies for success 48 Accounting and Administration [email protected] Joumana Karam › The rise of global citizenship: realising dreams Membership Secretary [email protected] and unlocking opportunity 50 Carole Hovsepian (in Beirut) Business and Development Officer Telephone: + 961 1 991620 › New opportunities for investor visa portfolio [email protected] management 54 The Arab Banker is designed and printed by JPS Print Consultants P O Box 1048, Beaconsfield, Bucks HP9 2YF Telephone: 0800 0834 827 › Battersea Power Station: [email protected] the rebirth of a London icon 58 www.jpsprintconsultants.com For enquiries about advertising: George Kanaan, › Views from the top: financing for London real estate 60 C.E.O. Arab Bankers Association For enquiries about editorial: › Understanding the diamond market: Andrew Cunningham, Editor in Chief an investment briefing 63 Arab Bankers Association ABA Mailing Lists and Privacy Policy The ABA Mailing List and Privacy Policy incorporates › The Arab Bankers Association: best industry practice and has been developed to protect members’ as well as Arab banker journal profile of the year 66 recipients’ rights to privacy. This Policy guides how we collect, store and use information and it will be periodically assessed. The policy recognises two › kinds of personal data that deserve varying levels Palestinian culture: a new generation of protection. Business Information includes, for finds new audiences 76 example, e-mail addresses, job titles, telephone/ fax numbers, etc. The ABA does not collect or store Sensitive Personal Data such as credit card details, or any other form of private information. › Book reviews: Libya, Shari’a governance, The full text of this Mailing List and Privacy Policy and travel 80 statement can be obtained by writing to the Arab Bankers Association. In the case of further questions or comment concerning this policy please feel free to contact: The ABA Board of Directors c/o The Corporate Secretary Arab Bankers Association 43 Upper Grosvenor Street London W1K 2NJ A leading bank in the Middle East. A trusted name across the world. Emirates NBD is a leading banking Group in the region with total assets at about AED 363 billion (equivalent to USD 98.8). The Group has a leading Retail Banking franchise in the UAE, with more than 215 branches and over 889 ATMs and CDMs in the UAE and overseas.