Volume XXIV, Number 1, Autumn 2013 £5.95 The Global Magazine of the Arab Bankers Association (ABA) BLOM BANK COMBINING STRONG CULTURE WITH STRONG GROWTH KUWAIT INVESTMENT OFFICE A VISION FULFILLED LONDON AS A CENTRE FOR ARAB BANKING THE RISE OF CHINESE BANKS LONDON’S MIDDLE EAST CULTURAL SCENE KUWAIT INVESTMENT OFFICE On the Diamond Anniversary of its establishment in London, the Kuwait Investment Office would like to thank Her Majesty’s governments, the Bank of England, the Mayors of the City of London and London’s financial community for their strong support over the last 60 years. The Kuwait Investment Office also extends its gratitude to H.H. Sheikh Sabah al-Ahmed al-Jaber al-Sabah, the Emir of Kuwait, H.H. Sheikh Jaber Mohammed al-Hamad al-Sabah, the Prime Minister of Kuwait, and the Board of Directors of the Kuwait Investment Authority for their keen interest and support during the 60th Anniversary celebrations. The Kuwait Investment Office is proud to be part of London’s financial community and looks forward to a continuing partnership in the years to come. AUTUMN 2013 CONTENTS 3 Volume XXIV, Number 1, Autumn 2013-08-15 Contents1 Volume XXIV, Number 1, Autumn 2013 £5.95 The Global Magazine of the Arab Bankers Association (ABA) › Letter from the Chief Executive Officer 6 › Letter from the Editor 7 BLOM BANK COMBINING STRONG CULTURE WITH STRONG GROWTH KUWAIT INVESTMENT OFFICE A VISION FULFILLED LONDON AS A CENTRE FOR ARAB BANKING › People and News 8 THE RISE OF CHINESE BANKS LONDON’S MIDDLE EAST CULTURAL SCENE › COVER STORY Blom Bank: Combining Cover: detail of Samia Halaby’s Clouds and Trees, 2013. Courtesy of the artist. New paintings by Halaby Strong Culture will be on show at Ayyam Gallery, London, 9 October and Strong Growth 12 – 30 November 2013. ARAB BANKERS ASSOCIATION › Naaman Azhari: A Remarkable Banking Journey 16 Chief Executive Officer George Kanaan › Board of Directors London as a Centre for Arab Banking 18 Chairman Hani Kablawi, BNY Mellon Treasurer › COVER STORY Duncan Steele-Bodger, Emirates NBD Kuwait Investment Office: Company Secretary A Vision Fulfilled 22 Vivien Davies, Edwin Coe LLP Directors George Kanaan, Chief Executive Officer › Antoine Zananiri: A Life in Arab Banking 26 Ziyad Akrouk, Europe Arab Bank Abdulaziz al-Khereiji, Riyad Bank Farid Barakat, National Bank of Abu Dhabi Fawzi Dajani, National Bank of Kuwait › Alderman Roger Gifford: The City of London Mahmoud Difrawi, JP Morgan and the Middle East 28 Gaby Fadel, Byblos Bank Samer Hijazi, KPMG George Kardouche Amr Turk, Blom Bank France › The City of London and Europe 30 The views expressed by authors and contributors in the pages of the Arab Banker do not necessarily › Islamic Banking: reflect the view of the Arab Banker, the Arab Religious Tourism or Faithful Commitment? 35 Bankers Association (ABA), any of its office bearers or their institutions. Furthermore, while the Arab Banker and the ABA make every effort to ensure that the information contained in the magazine’s › What’s Next for Saudi Banking? 38 pages is accurate, neither the Arab Banker nor the ABA accept any liability for loss or damage arising from any opinion or fact, errors or omissions. › Islamic Banking in Oman: Interview with Readers should take customary precautions and undertake commercial checks before entering into Nizwa Bank C.E.O. Dr. Jamil al-Jaroudi 41 business arrangements of any kind. 4 CONTENTS ARAB BANKER Contents2 The Arab Banker is the global magazine of the Arab Bankers Association (ABA) 43 Upper Grosvenor Street London W1K 2NJ, UK › Sovereign Wealth Funds in the Middle East: Telephone + 44 (0) 20 7659 4889 A Custodian’s View 44 Fax + 44 (0) 20 7659 4868 Email [email protected] George Kanaan › Chief Executive Officer The Fight Against Financial Crime: [email protected] An Interview with Banque du Liban’s Andrew Cunningham Dr. Mohammed Baasiri 46 Editor in Chief [email protected] Houda Lahiani Accounts Officer › The Rise of Chinese Banks on the Global Stage 48 [email protected] Nezha ElHaloui Business Development Officer › The London Commercial and Residential [email protected] Property Markets 51 Anesta Farhoud (in Beirut) Business and Development Officer Telephone: + 961 1 990009 [email protected] › Finding Property Finance Solutions in a The Arab Banker is designed and printed by Difficult Market 54 JPS Print Consultants P O Box 1048, Beaconsfield, Bucks HP9 2YF Telephone: 0800 0834 827 › Brahim Razgallah: Creating Sustainable Growth [email protected] Across the MENA Region 56 For enquiries about advertising: George Kanaan, C.E.O. Arab Bankers Association › Walid Khadduri: Shale Petroleum and Arab Oil 58 For enquiries about editorial: Andrew Cunningham, Editor in Chief › Economic Power in the Middle East 60 Arab Bankers Association ABA Mailing Lists and Privacy Policy The ABA Mailing List and Privacy Policy incorporates › Sovereign Ratings in the Middle East and Europe 63 best industry practice and has been developed to protect members’ as well as Arab banker journal recipients’ rights to privacy. This Policy guides how we collect, store and use information and it will be › The Arab Bankers Association: Profile of the Year 66 periodically assessed. The policy recognises two kinds of personal data that deserve varying levels of protection. Business Information includes, for example, email addresses, job titles, telephone/ › The London Middle East Institute: fax numbers, etc. The ABA does not collect or store Providing Access to the Middle East for All 74 Sensitive Personal Data such as credit card details, or any other form of private information. The full text of this Mailing List and Privacy Policy statement can be obtained by writing to the Arab › Arabia Books: A Small Publisher with Big Ambitions 76 Bankers Association. In the case of further questions or comment concerning this policy please feel free to contact: › Ayyam Gallery: A Dynamic Force in the Arab Art Scene 78 The ABA Board of Directors c/o The Company Secretary Arab Bankers Association 43 Upper Grosvenor Street › Book Reviews 81 London W1K 2NJ 6 LETTER FROM THE C.E.O. ARAB BANKER A Positive Story for Arab Banking Arab Banking is getting through this turbulent period in the region in surprisingly good shape. employment. These were led by top ranking practitioners from the regulatory agencies, prominent legal and accounting firms, and senior bankers. These events were accompanied by seminars covering the financial landscape of Egypt and Lebanon led by prominent bankers from both countries. We also held a seminar on the geopolitics of the region, delivered by Lord Lamont of Lerwick and Patrick Seale, to great acclaim from a crowded hall. Last year we gave our first “Banker of the Year” award to the Chief Executive Officer of the National Bank of Abu Dhabi, Mr. Michael Tomalin, for his work over a decade and a half at the helm of the bank. Mr. Tomalin made the National Bank of Abu Dhabi one of the most important Arab banks and one of its strongest. His contribution to Arab banking is one of the most significant in the past generation. Our forthcoming gala will witness the grant of our second such award. This will be given to Mr. Naaman Azhari, founder and Chairman of Blom Bank Group – the largest bank in Lebanon and one of the largest and most successful banks in the Arab World. Mr. Naaman Azhari is a titan among Arab Bankers and a huge contributor to its development in Saudi Arabia, Syria and Lebanon. His abiding s the Arab Spring turns into stormy winter, Arab principles in banking and management are the core of what Banking remains open for business and the financial is currently being considered “best practice” by regulatory Aand business community in the region continues to authorities in the wake of the great financial crisis that hit be active. We have not seen, and I am not expecting to see, the world in 2008. widespread failures or significant crisis. As for the “Arab Banker”, we promise you a new start In the past we have applauded the virtues of conservative with this issue and an accelerating rhythm of publication management, strict regulation, and competent central bank culminating shortly in a return to our quarterly schedule. governance that have given Arab banks the ability to weather This we hope to achieve by drawing on the skills and the major political and security storms. These, and careful deep experience in Arab banking of our new editor Mr. diversification across the region and beyond, are what helped Andrew Cunningham. But to succeed we need your support. Arab banks breeze through the financial crisis of 2008 and We need you to contribute to us both editorially as well as what is helping them survive the current period of political commercially. The magazine occupies a unique niche as the upheaval. principal professional organ of Arab Banking and Finance. It The Arab Bankers Association is doing its part and helping deserves your support. It needs it. where it can. We are also improving our website. It now carries an Our first task – to serve the Arab Banking community in up to date reportage of the activities of the association. London – is becoming all the more urgent as our community It also carries exclusive interviews with top bankers as expands in number and in importance. We are at the heart of well as articles of interest to Arab bankers and financial this community and the principal forum for its practitioners. professionals. This improvement is scheduled to continue Our second task – to act as a bridge between Arab bankers and we look forward to the time when our website gets on working in the region and their colleagues in the City of the must-see list of all Arab bankers.