RIYADH: "Even as many of the world's largest economies continue to struggle with excessive debts and difficult fiscal choices, the Kingdom's financial stability has put the country in an excellent position for further growth and investment", said Kenneth M. Jacobs, chairman and CEO of Lazard, a global financial advisory and asset management firm, on Saturday.
Jacobs expressed his optimism upon arriving in Riyadh, where Lazard opened an office, its third in the Middle East. During his visit, Jacobs held talks with senior officials of the government, the Saudi Arabian Monetary Agency (SAMA) and the Capital Market Authority (CMA), as well as several of the firm's clients in the region. The New York-based Lazard, he said, had been serving clients in the Middle East for the last 25 years.
The Lazard chief said that he expected the trend of mergers and acquisitions in the region to continue, as evidenced by several mandates in which his firm is engaged.
The firm, he said, is currently advising on the restructuring of Dubai International Capital and recently closed the sale of the British retailer Harrods to Qatar Holdings. "The Middle East region has become an important participant in the global mergers and acquisitions marketplace, particularly in outbound investment, as companies, sovereign wealth funds and family businesses continue to acquire significant assets overseas," added Jacobs.
The Lazard chief said that the local financial institutions have remained stable and have performed better compared to their peers abroad under "the consistent and prudent economic policies of the Saudi government." He added that the Saudi financial institutions "enjoy credit ratings that still allow them to fund major investments." This has benefited local companies as well, because they have been able to prosper, as financing remains available.
Many of them see mergers or acquisitions as an efficient way to grow both locally and internationally. On the role and functions of Lazard through its office in Riyadh, Jacobs said that the independent advice was critical to both buyers and sellers in global mergers and acquisitions. In the financial crisis, many of the world's largest banks found themselves conflicted due to their own investment and lending activities in the region, he added.
Lazard's financial advisory business provides advice, which is intellectual capital with both a local and global perspective. Expressing his pleasure on the opening of the new Lazard's Riyadh office, he announced that the Saudi chapter of Lazard headed by its Managing Director Abdulrahman Al-Eissa was all set to play a major role in the region. The firm, he said, also had an office in Dubai focusing on financial advisory services and one in Bahrain that focuses on asset management services, through Lazard Asset Management.
Lazard has emerged as one of the world's major independent financial advisory and asset management firms with its annual revenue exceeding $1,978.5 million last year. It has $135.8 billion assets under its management, while its assets base and global presence are progressively growing.
Jacobs explained that his firm provides advice on mergers and acquisitions, strategic matters, restructuring and capital structure, capital raising and corporate finance, as well as asset management services to companies, partnerships, institutions, governments and individuals.
The firm now operates in 42 cities across 27 countries. "The core of Lazard's success is its simple business model of financial advisory and asset management, with a focus on excellence, intellectual rigor, integrity and creativity. The firm provides value to its shareholders, premium service for its clients, and an environment that attracts and breeds top talent," he said, adding that Lazard is committed to investing in the success and growth of its global franchise.
© Arab News 2011
