Middle East
LATEST ARTICLES
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Euromoney recently sat down in Dubai with the heads of investment banking for HSBC in the Middle East. The conversation focused on the burgeoning trade and deal flow between the Gulf region and Asia, what investors on both sides are looking for and why they like what they see.
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Global money is flooding into India to profit from high-performing stocks, a booming economy, and the ease of investing via Gift City, a growing financial hub in Gujarat. Local wealth is flowing the other way, notably to Dubai. It’s a gold mine for private banks, and the process has only just begun.
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Bankers in the Middle East are intensifying their focus on succession planning as the first wave of intergenerational wealth transfer looms.
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Abu Dhabi and Dubai sell themselves as international hubs for tech companies, with new initiatives to support start-ups and scale-ups, but rules around eligibility for equity listings will hinder the Emirates’ tech sectors if they aren’t changed.
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Barclays hopes to win over investors with new return targets and buyback commitments next February, but it really needs a revival in investment banking.
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Regulators are starting to take a more messaging-based approach to sustainable finance, but stopping greenwashing won’t automatically lead to a transition to net zero.
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The 28th Conference of the Parties starts in Dubai tomorrow. Dubbed the finance COP, conflicting priorities could turn it into a fossil fuel investor roadshow.
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The local sector is in good shape to weather a short-term conflict. If the war drags on and spreads throughout the region, however, the position is far less clear.
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Data hoarding, ESG illiteracy and credit risk are roadblocks for regional banks looking to establish sustainable supply-chain financing programmes in the Gulf, just as COP28 approaches.
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Turkey’s central bank took another step on the path to normalization when penalties for exceeding interest-rate caps on lending were scrapped last week. It is good news for banks, but will it last?
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The risk of a new war with Israel will derail any fledgling economic recovery for Lebanon as it attempts to convince private-sector investors of its gas and renewable energy potential.
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Ahead of COP28, the sector needs to focus on lending for energy efficiency in the emerging markets before climate tech startups in developed markets, if decarbonization is the goal.
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Digital sukuk issuance still faces the issue of uneven Shariah interpretation.
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The relaxation of visa rules has turbocharged the recent flow of wealth into Dubai. The nature of these flows can, however, make them a mixed opportunity for the UAE’s private bankers.
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The Lebanese diaspora has come home to pump fresh cash into the country’s economy, but the resulting price surge is a further blow to the lira-earning population.
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ADIB’s almost 10-times oversubscribed additional tier-1 issuance shows interest in the product is alive and well for the right issuer, but demand won’t be the same for every bank.
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Wealth management had a tough 2022. Assets under management fell across the board, undermined by global uncertainty. But one region is not struggling. More wealth than ever is being formed in the Middle East, and more of it than ever is staying there. Private banks are hiring as fast as they can and expanding their repertoire in Shariah-compliant asset classes.
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The Kingdom’s government has announced that international firms – many of whom are based in Dubai – that want to work with the state will need to base their regional headquarters in Saudi.
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2023 is shaping up to be the year of the pause for the region’s capital markets.
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Several Gulf Cooperation Council countries have bank consolidation at the core of economic visions. As governments push for national champions, pressure is building across the industry as banks jostle for position.
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If Olam Agri’s planned dual-listing IPO goes ahead in June it will have a bit of everything: a Singapore-Saudi listing, geopolitics and sovereign funds jostling to defend their nations against strain in global food security.
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As the Gulf IPO boom subsides, will better allocations for international investors, dual listings and better secondary-market liquidity be enough to ensure that the region’s equity capital markets can mature?
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Jordan Kuwait Bank has issued the country’s first green bond, a key milestone for sustainability driven capital investments in the country. But getting momentum going in the sector will be an uphill battle.
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Both Egypt and Turkey have recently been able to tap dollars more cheaply through sukuk.
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First Abu Dhabi Bank’s recent interest in a bid for Standard Chartered and an ill-fated investment in Credit Suisse by Saudi National Bank have put the spotlight on Middle East banks as potential acquirers of international firms.
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SLLs offer more flexibility for borrowers targeting sustainability, but the structure is coming under scrutiny around the world for potential greenwashing concerns.
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A month ago, First Abu Dhabi Bank said it had looked at Standard Chartered but decided against a bid. Now, it is believed to have changed its mind. What has changed?
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Across the Middle East and North Africa, Egypt and its banks boast august credentials when it comes to climate and sustainability. But frameworks and agreements are one thing, creating substantive change across an entire financial sector is quite another.
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First Abu Dhabi Bank looked long and hard at Standard Chartered, and others will do the same so long as it’s cheap. But any suitor must win the approval of Temasek.
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The Middle East’s capital markets were awash with plus-sized IPOs in 2022, with a growing belief in its future.
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Noor Sweid, founder of Global Ventures – a young Dubai-based venture capital fund with $200 million of AuM – sees company founders with great businesses starved of finance.
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Qatari banks are eager to demonstrate their commitment to sustainable banking amid growing public scrutiny of the environmental cost of hosting the World Cup.
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Three-quarters of a century ago, the state of Israel didn’t exist. Today, it is a leader in technologies ranging from plant-based meat to cybersecurity. Huge sums of new wealth are being created by ambitious entrepreneurs, much of it recycled into new ideas by risk-taking investors.
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Qatar has spent 12 years and more than $200 billion preparing for the World Cup, which kicks off on November 20. What happens when the games end and the tourists leave?
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The World Cup is set to kick off in Doha on November 20 against the backdrop of recession, war, inflation and rising interest rates elsewhere.
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Islamic finance has a choice: continue on its existing path and consolidate its hard-earned gains in market share, or shake the whole thing up. One proposal calls for an end to the fractional-reserve banking system.
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As European and Chinese banks scale back in Africa to cut costs and redeploy capital to core markets, Middle East lenders are happily jumping in to fill the gap, buying assets and putting more boots on the ground as bilateral trade between the regions increases.
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War-induced instability in commodity markets has been a boon for Kuwait and its banking sector. But it only serves to underscore how reliant the country still is on hydrocarbons.
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Banks in the Gulf are embracing blockchain, fintech, cryptocurrencies and AI as they look to cater to changing consumer demands and a rapidly evolving financial landscape.
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Egypt’s supportive regulation, together with the impact of Covid, saw cashless payments in the country grow by more than 230% last year. Now fintechs, banks and state-owned platforms all want a piece of the action.
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Rate rises, combined with the soaring price of oil, mean that Saudi banks enjoy unprecedented liquidity. This will accelerate the change already under way in the sector.
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The event was a showcase for both sustainability and trade agreements.
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Why do Saudi Arabia and Malaysia still overwhelm every other state in Islamic asset management?
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It’s rare to see a sovereign fund backing a digital bank before its launch.
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Investment banking underpinned a strong year for First Abu Dhabi Bank, as the UAE-based lender benefited from its long-standing investment in digital and led the way on a host of big-ticket capital market transactions.
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At the end of each year, Euromoney takes a close look at the performance of 25 key institutions that we cover. Speaking to senior executives at these firms, we assess what went right and what didn’t, together with what might lie ahead. This year, we have also examined the views of those at the top on two important factors for 2022: their own and others’ asset quality, and the disruptive threat of China. Their observations are discussed in the two features below, followed by our reports for 2021 on the Euromoney 25.
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The tie up between Masraf Al Rayan and Al Khalij Commercial Bank could be the first of many as cost cutting and profitability top the banking agenda.
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Ahmed Abdelaal is the first non-Ghurair family member to lead Mashreq Bank. His first two Covid-marred years in charge as chief executive were a baptism of fire, but he has hired well and decisively, putting in place a cosmopolitan management team that is transforming the Dubai-based lender.
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Sovereign wealth involvement in football clubs has a chequered history. Saudi’s intentions with Newcastle are clearly about more than investment, but can these deals ever work?
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Can multilateral development banks fight climate change while still promoting economic development in emerging markets? The European Bank for Reconstruction and Development is the first to set out concrete plans on how to do this.
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The Abu Dhabi Investment Authority’s latest annual report has some unusually precise detail in it. It tells us about positions, internal structures, use of external managers and views around infrastructure and private equity at one of the world’s most powerful institutional investors.
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Ajmal Ahmady, governor of Da Afghanistan Bank, Afghanistan’s central bank, gives Euromoney the inside story on his escape from the stricken country.
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The $15 billion merger that created Saudi National Bank is tipped to kick-start a cycle of consolidation in the Kingdom’s banking sector.
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Norway pulls out of West Bank-linked companies; Mubadala and Temasek invest in tech and energy.
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The country’s model of financing relentless consumption from dwindling oil revenues is under attack from all sides. Covid-related credit relief has hit the banks’ bottom lines and they are joining the call for diversification.
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The UAE was already a fintech pioneer but Covid turned it into a leader. Banks and government agencies are furiously rolling out blockchain-backed services that do everything from seamless KYC checks to detecting fraud in supply chain financing.
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The Israeli fintech grew fast through the pandemic turmoil. As it prepares a full launch in the US, it will be listed on Nasdaq, but not through an IPO.
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A corporate restructuring is one of the final steps in readying Tadawul for an IPO this year. CEO Khalid Al-Hussan says the moment for listing is almost at hand.
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Ever since the launch of Vision 2030, housing has been a key priority for Saudi Arabia. Along with the home building has come a vibrant mortgage market, the formation of a secondary liquidity provider and the building blocks that will lead to a new securitized asset class in global markets.
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Outwardly different, Singapore and Dubai have transformed themselves into international wealth management hubs, overseen by clear-minded regulators. They are now starting to compete for business with Europe’s far older private wealth centres.
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As Lebanon’s dollar reserves disappear, time is running out. Central bank governor Riad Salamé’s tweaks to the banking sector will have little effect and commercial bankers’ attempts to resurrect dollar inflows sound deluded. Is recovery possible without a change in financial leadership?
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Fears over greenwashing claims have often dissuaded issuers from the Middle East from entering the sustainable bond markets. That could be set to change.
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Donald Trump reversed a deal that would have brought Iran back into the international fold. Now Joe Biden intends to reverse Trump’s reversal. Does that mean good times ahead for Iran’s banks?
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If you want to see what a strong economic and financial recovery might look like in 2021, you’ll find it in Dubai.
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The pacts will normalise relations between Israel and the UAE, but it aims to do much more. The potential for regional détente and investment across real estate, energy and technology is great.
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FAB’s status as a national champion means it is even better positioned after Covid-19 to facilitate regional growth.
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There are interesting titbits on Africa, private debt and renewable energy at the Abu Dhabi sovereign wealth fund.
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The Public Investment Fund is unrecognizable from the sleepy vehicle it was until 2015. More risk has led to some bad investments, but the crown prince says overall returns are good. Can they stay that way?
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The Egyptian bank is to launch a digital bank as Covid-19 accelerates the government’s push for a cashless society.
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Bankers see huge opportunities on both sides as Israel signs historic agreement with UAE and Bahrain.
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Faced with an estimated $100 billion budget deficit but committed to a vast expenditure programme, Saudi finance minister Mohammed Al-Jadaan explains how he plans to balance the books.
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Euromoney Country RiskEuromoney asked its panellists to rescore Lebanon’s risks in the aftermath of the port tragedy on August 4, with investors left pondering what’s next for a country now desperately in need of aid and finance for reconstruction.
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The government’s resignation this week could pave the way for reform – and unlock essential IMF funding – but is the will to change there?
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As Iran’s currency crisis deepens, observers fear that far from improving the situation, state intervention will do further damage to a country that was in economic turmoil even before coronavirus.
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The Covid-19 crisis will accelerate monetization in the Gulf and see Abu Dhabi companies take equity stakes in the emirate.
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The six exchange-rate system is now untenable, with the currency losing more than 50% of its value since October, but analysts say floating the currency will cause more pain without IMF support.
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Profit pressure is a threat to every bank, says Qatar Islamic Bank’s group CEO Bassel Gamal, discussing how Qatar’s robust and well-capitalized banking sector is navigating the twin shocks of lower oil prices and coronavirus.
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Dubai raises funding amid perfect storm of Covid-19, economic slowdown and falling oil prices.
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The Gulf’s largest economy is facing unprecedented challenges from the coronavirus Covid-19 and oil at $30 a barrel. Has diversification under Vision 2030 done enough to help Saudi Arabia weather the storm or will it be forced to abandon its dreams of diversification?
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Lebanon’s banks are on the brink as the country looks to restructure its debt. Could rich depositors, who have for years enjoyed inflated interest rates, be called on to take a hit?
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Gulf central banks have unveiled big stimulus packages but commercial banks need to transmit this to the real economy – difficult to do when appetite for credit is so low.
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A double shock of Covid-19 and falling oil prices brings the spectre of recession to the Gulf, while efforts to diversify economies are being derailed.
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Expo 2020 showcases economic and business opportunities in Dubai. Bankers hope it will lead to a boom in areas such as SME lending and infrastructure investment, but worry that a short-term lift will not be enough to dispel broader concerns about the country’s economy.
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Despite MSCI index inclusion and a landmark trade by Saudi Aramco, global funds are still $70 billion underweight Gulf equities, but the UAE and Saudi are making progress in deepening markets.
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DP World is planning to delist from the Nasdaq Dubai in a move that directly contradicts the UAE’s efforts to improve liquidity and diversity in its domestic exchanges.
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As birth rates fall and the UAE government looks at ways to spur population growth, private equity firms see opportunities in IVF.
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A draft law in the United Arab Emirates will see more family-run corporates listing, while pension reforms will create a huge pool of investable assets.
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Israel has taken orders of $20 billion for its first Eurobond of the year, despite the deadly strike on an Iranian general that threatened to push simmering Middle Eastern tensions to boiling point in early January.
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The Qatari bank is investing at home and abroad, growing its loan book and building strong operations in Egypt and Turkey.
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Analysts think that FAB has the best potential platform of any bank in the region. Can its management deliver?
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The Lebanese authorities said that they met a $1.5 billion bond payment in late November, but with the country rapidly running out of money and in the absence of any clear ability to enact reforms, Euromoney looks at its options.
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BayanPay, a digital payments company owned by London-listed Finablr, has received regulatory approval to operate its mobile money platform in Saudi Arabia, as the Kingdom looks to a future without cash.
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Saudi Aramco’s intention to list aims to clear up any doubts wealth managers may have about investing on behalf of women, but it also draws attention to the fact that, despite reforms, the full inclusion of women in Saudi society is still a distant reality.
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Riad Salamé says that Lebanon has the tools it needs to stave off default, but with protestors demanding fundamental change, analysts question whether a radical overhaul of the country's economy is what is really needed.
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Advocating ESG while investing in one of the world’s largest oil companies is an uneasy truth.
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Applications to operate banks in Saudi Arabia show that consolidation has not shut the door to new entrants.
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Saudi Arabia is pressing on with capital markets reform and its planned IPO of Aramco in spite of drone attacks on its oil facilities that briefly spooked markets. Virginia Furness reports from Riyadh.
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It’s not long ago that Kurdistan was on the brink of accessing the international markets. Then came ISIS, strained relations with Iraq and the challenge of being shackled to a state from which the population wants independence. Is Kurdistan ready to approach world markets again?
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Israel has become one of the world’s most important fintech hubs, attracting millions in investment from some of the biggest global brands and venture capital funds. Can its start-up culture now evolve to grow large fintech businesses at home?
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The deluge of bids for the debut issuers shows how reliant investors have become on primary allocation.
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Closure of second investigation brings embarrassing episode to an end.
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Working in Beirut in 1974 was a formative experience for Padraic Fallon, the long-serving editor and later chairman of Euromoney, and since then the magazine has set the standard for coverage of this often misunderstood region.
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Of all the global corridors of trade and investment, the one between Latin America and the Middle East is among the least travelled.
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Less than five years after Euromoney began, the Arab oil embargo gave international finance a shot in the arm and provided an extraordinary windfall to the Gulf, but as the oil boom has repeatedly turned to bust, commodity cycles have laid bare the vacuity of the region’s diversification programmes. Today, with local populations expanding, harder and less stable times could lie ahead if the region does not take more drastic action – even when oil prices bounce back.
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Islamic finance has come a long way over the past few decades, maturing into a $2.4 trillion industry, but some long-term problems remain and the recent wrangle over a Dana Gas sukuk shows credibility is still an issue.
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For nearly two decades Dubai has acted as the beating heart of Middle Eastern finance, but now its long-dormant rivals are mounting successful efforts to reclaim a piece of the action.
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The region’s banks used to be small, local and low-tech – many still are – but in the future they will be altogether different beasts.
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Over 50 years, leaders of Middle East financial institutions have steered their businesses through very good and very bad times, including oil price crashes, rampant property and stock speculation, and war. Some key figures highlight the events they remember most and spell out lessons for the next generation.
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War and revolution have shaped the Middle East’s recent history and have left their mark on the banking sector. Senior bankers reflect on the role crisis has played in their careers and on the region’s financial system.
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Regional difficulties have tested QNB’s resilience, but the bank has managed to consolidate its position at home and maintain its international strength.
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The UAE’s largest bank is widely considered to have made a success of its merger and is now looking to realize its international potential.
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The Trump administration has begun the process of ostracizing Iranian finance. Bankers there are hanging on to some rare good news, but how long will it be till they are back to square one?
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The formation of First Abu Dhabi Bank, widely viewed as a success, has sparked a series of merger announcements. Will scale make for better performing banks? And could cross-border mergers in the region finally happen?
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Saudi Arabia’s central bank governor recently gave international banks a clear signal that they will not be punished by a loss of fees for avoiding an investment conference in Riyadh due to public outrage over the murder of journalist Jamal Khashoggi.
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Ken Moelis lived up to his nickname ‘Ken of Arabia’ when he showed up at the Saudi Future Investment Initiative conference in Riyadh in late October in his brave pursuit of future fee income despite the risk of international opprobrium.
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The murder of prominent Saudi journalist Jamal Khashoggi has sparked condemnation of the kingdom’s leadership the world over, but as the dust settles after the Future Investment Initiative, what are the real-world effects, if any, of this crisis on Saudi Arabia’s banking ties?
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The murder of a Saudi journalist has led to the withdrawal of international financiers from Saudi Arabia’s state-run investment conference, and compounded growing fears over the kingdom’s leadership.
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Two of the world’s most advanced cryptocurrency markets agree to exchange notes on blockchain regulation.
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In early 2016, the Middle East’s two largest countries looked set to become the world’s most vibrant frontier markets. Two years on, many bankers doubt that either Iran or Saudi Arabia can live up to these expectations.
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Delusional clients are complicating the business of collecting fees for advising on mega trades for customers such as Saudi Aramco and Tesla.
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Saad Azhari has quietly ushered in a new era at Blom Bank. The outwardly conservative firm has embraced technology and pulled off a transformative acquisition for its wholesale business. But prudence remains the watchword in such a tempestuous market.
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Inclusion in the emerging market index is recognition of the country’s reforms and could bring $50 billion of foreign investment.
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Less onerous regulatory requirements and the proximity to markets where retail FX is prohibited continue to encourage brokers to set up shop in the Middle East, despite ongoing state protection for the Saudi Arabian currency.
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Europe may not be enough after Trump’s withdrawal from the Iran deal.
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As international financiers rush into Saudi Arabia, they are asking if the Kingdom can deliver on its grand promises.
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The Middle East’s financial centres are keen to collaborate on fintech, in an effort to catch up with US, UK and Asian markets. But with rich pickings on offer, there is also stiff competition to establish fintech dominance.
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In the most difficult circumstances, QNB's international strategy has paid dividends
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FAB can become more than the sum of its parts, but there's a lot of work to do
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Financial providers are pushing to identify new higher-margin services, while remaining relevant to corporate partners and boosting profitability in a disruptive digital age. Meanwhile, across the Middle East economies, governments want to diversify away from oil and gas, creating opportunities for multinationals, regional banks and export credit agencies.
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The former head of Saudi Arabia’s CMA was a far-sighted internationalist whose commitment to transparency, technocratic leadership, governance, empowerment of women and young people foreshadowed the far-reaching reforms now energising the country.
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An investment company linked to one of Iran’s largest investment banks failed to publicly disclose its focus on Iran when it listed on NEX Exchange, though it always intended to invest primarily in that country.
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Qatar’s financial sector might not be the only one to struggle under a blockade imposed on the country since June by a coalition of Middle Eastern states.
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Air Berlin and Alitalia bankrupt after CEO change at Etihad; Abu Dhabi backs partner bonds.
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Iraq’s former industry minister, Mohammed Alderajy, is brutally honest about the country’s culture of corruption and resistance to reform. The banking sector is far from immune. He says a new attitude is needed if Iraq is to improve its prospects for reconstruction.
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Banks in Qatar have been hit hard by its powerful neighbours’ unexpected blockade, but finance, just like other sectors of the Qatari economy, is finding ways to cope with this sudden realignment of regional alliances.
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Low oil prices have put Oman’s government under pressure, while regional political turmoil could make life even more uncomfortable. A new economic model is called for, but can the leaders in Muscat find one quickly enough?
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The Belt and Road Initiative offers much to the disparate markets of the Middle East and Africa, but not all those countries seem so enthusiastic in return.
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Fintech and digital financial services are rushing in to help refugees and migrants access and transfer money, but their innovation isn’t just changing how humanitarian aid agencies operate – it’s also offering solutions for broader financial inclusion challenges.
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In the refugee camps of Jordan and Lebanon, life for the many of the 5 million Syrians displaced by civil war somehow goes on. A whole new financial ecosystem is needed to support the amazing resilience and initiative of many of these refugees, who have little prospect of going home. It presents a new challenge for NGOs and they need the help of investors, financial institutions and the private sector. Euromoney visited camps in Jordan and urban areas in Lebanon to talk to aid workers, government and non-government officials and the refugees themselves to find out what role the banking system can play in alleviating the greatest humanitarian challenge of this century.
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Spreads at multi-year lows as demand remains buoyant; Investors reverse underweight positions.
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Dana Gas, an Emirati gas company, is using Shariah non-compliance as an argument in its sukuk restructuring talks. That remarkable move, if successful, could undermine the whole system of trust built around Islamic finance in the Middle East.
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Several banks write off Syrian operations; they continue to be big shareholders.
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After another tumultuous year for banking in Lebanon, the central bank governor discusses the political pushback against his actions, the potential impact of a new US law targeting Hezbollah and the prospects for his reappointment.
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Later this year 50 people will go on trial in Venice charged with complicity in illegal arms trafficking to Iran. Among the defendants will be leading figures, past and present, from the world of Italian finance as well as senior government officials. Evidence amassed over several years strongly suggests that banks in a number of European countries have been involved.
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Gulf bankers have been through a trauma — and there is more pain to come. News of the Iraqi invasion of Kuwait brought instant demand for cash, a rapid fall in local currencies and a haemorrhage of funds from the region. Some institutions will not survive; others must undergo rapid change. And as bankers set about repairing the damage there are warnings of further shocks to come.
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Secretive, aggressive, unpredictable and highly successful, the state fund managers of the Kuwait Investment Office (KIO) are among the world's most important investors. Only the Swiss Big Three banks have more funds invested internationally than the $60 billion or more of the tiny emirate's oil wealth now in play around the globe. Who makes the decisions? What's the strategy? And what are the internal politics? By Martin French
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"I see that the kingdom's financial position is as solid and as promising as ever. It gives no grounds for any concern," proclaimed Mohammed Abalkhail, the Minister of Finance and National Economy of Saudi Arabia.
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Persuading all the leading merchant families of six different Arabian and Gulf states to back the first serious investment bank in the region was some feat on the part of Nemir Kirdar. Now the president of Arabian Investment Banking Corporation – Investcorp – has to start delivering first class deals. By Peter Field
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Sulaiman Abdel-Aziz al-Rajhi, the Saudi money changer, is conservative, pious and modest. The firm he founded is worth a far-from-modest $7 billion. How he prospered. By Michael Field