Driven by a "preferred customer strategy", Qatar-based next generation lender al khaliji has its eyes set on taking its expertise in 'premium banking' to its second home, the UAE.
"Our success in the corporate arena is well recognised in the local market for many years. We have built on this and have extended it into the UAE where our principal focus is on the commercial contracting segment. This year we will continue to broaden and deepen our participation in large infrastructure projects of a strategic nature with government and semi-government involvement", Robin McCall, group chief executive officer said in an interview with Gulf Times in Doha.
Al khaliji has four branches in the UAE through its French subsidiary.
With global financial landscape changing after the collapse of Lehman Brothers in 2008, al khaliji "re-evaluated" its strategy and "aligned itself" to the high net worth and premium banking segments.
McCall clarified that al khaliji was not a "mass retail bank".
"We intentionally do not wish to be everything to everyone; the bank is exclusive and deals only with our chosen preferred customer base. This in itself is a tactical distinction that separates al khaliji from other banks, and this approach is highly significant given the competitive business climate that exists in the market.
"We have a very clear and concise strategy, which is aligned to the economic realities of the region in which we operate. However, our real strategy lies not in figuring out what to do, but in ensuring we do it better than others. In this regard we invest smartly in ensuring we employ the best intellectual capital, utilise the best 'next generation' systems and customer facing channels, and develop the best products, which are both innovative and meaningful to our clients. Of equal importance is our approach to business; al khaliji is all about trust and relationships," McCall said.
He said al khaliji has a "suite of financial products and services" specifically designed for its preferred customer base.
"Al khaliji's competitive priority is to provide intelligent and flexible solutions to its customers and a commitment towards an optimum banking experience. We aim to harmonise with our clients requirements; even though we launch exciting and innovative products and services, they are designed to ensure they are transparent and easy to understand and we steer clear of products which we believe are not appropriate to our clients' needs from a risk perspective, " the al khaliji Group CEO said.
A case in point is the bank's business partnership with a leading property investment company, which enables al khaliji to offer its premium customers' investment opportunities in a variety of international markets.
"Through this partnership, our customers will enjoy access to a range of unique investment opportunities in a variety of international markets, allowing them to build strong and sustainable property portfolios, be it in New York, London, Singapore or elsewhere," McCall said.
A Qatar-centric bank, al khaliji is a player with spotlight on "defined market segments".
According to McCall, four tiers of its focused strategy are corporate banking, treasury, personal banking and GCC business.
"We also look at strategic short-term trade around the North African region linking in specifically to the UAE, Qatar and our French operations," he said.
Asked how al khaliji was able to weather competition in a "relatively small and highly competitive" market like Qatar, McCall said, "We are pragmatic, or realistic, while at the same time ambitious. When I say 'pragmatic' I mean one must acknowledge the economic fundamentals and strong level of competition that exists in the market. We have mapped and scoped the market, gathered factual data and we challenge firmly held beliefs. As a result of this market research, we focus on specific segments and have compelling evidence to support our strategic direction."
On al khaliji France, which is a commercial-oriented business, he said, "Although there were debates about our acquisition of the then BLC Bank France, we believe it was the correct decision to complement our commercial business and provide us with access to the UAE market. The purchase of al khaliji France brought with it a loyal and longstanding customer base to the bank. We recapitalised the unit, undertook some business restructuring, systems integration, process enhancements and generally benefited from synergies to improve efficiency in a manner that would allow us to build scale."
Currently, he said, al khaliji's wholly-owned Paris-headquartered French subsidiary with one branch in Paris and four in the UAE represents 12% of the bank's net profitability with a 10% year-on-year growth.
"We have been able to benefit from trade flows among North Africa, Europe, Qatar and the UAE...given our capabilities and strong motivation we are confident these will continue," McCall pointed out.
On project finance opportunities in Qatar, he said, "We believe there will be significant syndicated and more personalised club deals in Qatar in view of the country's rapidly expanding economy, overall infrastructure upgrade and projects related to FIFA World Cup 2022. Not one bank will be able to meet all the project finance needs. At al khaliji we wish to continue to participate in select deals."
On recent shareholders' approval to increase al khaliji foreign ownership limit to 49% from 25%, McCall said, "Higher foreign ownership limit allows the bank to open up to international investors and increase the liquidity of the bank's shares."
The bank had reviewed its foreign ownership caps to qualify for inclusion in the MSCI Index once Qatar will be upgraded to emerging market from the present frontier status.
© Gulf Times 2014
