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He may, as he says reclining back in a white, leather, designer armchair, be “very straightforward” and “very American”, but Eirvin Knox has achieved spectacular results since becoming the chief executive of Abu Dhabi Commercial Bank (ADCB) in November 2003.
Since Knox took control of the purse strings the bank has experienced record results and become one of the UAE’s, and the region’s, most successful and fastest growing local financial institutions.
Over the last two years, ADCB’s net profits have grown by an enormous 233%, its customers climbed from 75,000 to 150,000 in 12 months with an end 2006 target of 225,000, while its share price has risen by a staggering 362%. Its net profit during the first quarter of 2006 also revealed record results of AED623 million compared to AED221 million for the same period 12 months ago.
Impressive reading, but the bank is not only doing well on the balance sheet, it is also progressing faster than the large majority of its competitors in the amount of products it offers to its customers, moving from high level, large-scale infrastructure and property deals such as Abu Dhabi’s Industrial City (and potentially the emirate’s enormous 12-year Saadiyat Island project) to ‘selling’ 6000 credit cards a month.
“A recent board meeting also approved a motion to open up 25% of ADCB’s stock to foreign ownership,” Knox nods, signalling that things at the bank are moving just as he planned.
This may all sound like hard work but Knox says he is having the most fun he’s ever had during his 35-year career. “I’ve been in banking all my life, and yes that’s a good thing, it’s been good to me,” he says. “I’ve been in Abu Dhabi for two and a half years, worked 25 years outside of the US in Holland, Italy, Austalia, Thailand and the Philippines and am having a great time.”
Previously to working in the heart of the UAE’s capital, Knox also achieved exceptional results as chief executive of the Alahli Bank of Kuwait where he sat on top of the corporate tree for three and a half years. During his tenure, net profits rose by two and a half times and the bank’s market capitalisation increased by just over three times – another impressive set of results.
Knox, however, refuses to accept that his achievements at ADCB are purely down to personal talent and says that a combination of the strength and passion of the senior management team to be a successful part of Abu Dhabi’s “growth story”, as well as positive market reaction, have been the major factors behind the bank’s rapid progression.
“The growth of the bank has been phenomenal. It’s not down to just one individual, there was a plan and we’ve executed it well, but the market itself has been much more positive than we had planned.”
He may be partly right but his wealth of experience and broad-based banking knowledge has done ADCB no harm at all.
Formed in 1985, the bank steadily performed until a restructuring strategy was put forward in 2003 and Knox was installed to implement the ‘masterplan’. “When I first came to the bank the board and the chairman had already carried out a strategy review and made some decisions on how they wanted to implement those and the way they wanted the bank to be restructured,” he says.
“I was hired to implement that. When I came the masterplan was there but I wanted to broaden the product range and bring the bank in line with the vision of Abu Dhabi.”
Knox explains that he spent a large portion of his time working on the infrastructure and expansion of products, and that the only way to bring new products to the market was to hire the best local and international talent available. “It was a tough task at first. I’ve worked in several locations and it’s difficult to identify the right people.
“Sometimes people may have the right skills and the right background, but can’t adjust into an entrepreneurial environment, which is what I wanted to introduce and maintain.”
The other deal Knox cites as contributing to the bank’s modern financial facelift was a duo of joint investment banking ventures between ADCB and Australian finance house Macquarie. The first move came in the form of a joint venture between ADCB and Macquarie’s treasury and commodities division bringing with it the benefits of Macquarie’s expertise in treasury and commodities, products, staff and resources to ADCB’s extensive franchise in the Gulf.
The second installment of what Knox calls one of the “quickest deals he’s ever made” is entitled ADCB Macquarie corporate finance and is built around the existing corporate finance capabilities of both banks, particularly in the infrastructure sector. It provides mergers and acquisitions and project finance advisory to clients in the UAE, GCC and the Middle East and North Africa. ADCB holds the majority ownership (51%) with Macquarie Middle East Holdings as the joint venture partner.
Following the deal, the Australian-Gulf partnership almost immediately secured its first mandate, advising on the development of the infrastructure for the second phase of the Industrial City of Abu Dhabi – one of the largest projects the emirate has underway.
Then came a sudden flow of even more finance deals. Under the ADCB board and its chairman and member of Abu Dhabi’s ruling family, HE Saeed Mubarak Rashid Al Hajeri, and Knox’s guidance, ADCB and the Higher Corporation for Specialised Zones, introduced a US $272 million ten-year closed end fund, entitled the Zones Corp Infrastructure Fund, which will invest in the emirate’s industrial and commercial zones. ADCB will provide 75% equity, while Macquarie will put in 25%.
A further 13 infrastructure mandates are already underway, including a joint venture with multi-sector business the Al Futtaim group at Dubai Festival City that will spread to a vast two million square feet of retail space. US $3 billion (AED11 billion) has so far been invested in developing Festival City, which will reach US $5.45 billion by the time current projects are completed.
The bank clearly works closely with the Abu Dhabi ruling family and the government, however Knox refuses to confirm that all the deals the finance house receives are down to their influence and control. He does add, however, that it helps.
“We don’t get business because of that, but there is an opportunity if we do a good job and we have a hand in every deal. The government wants to develop the local financial institutions and deliver those so it forces us to raise our standards.”
The tall American CEO says that in some cases the bank may fall short as it doesn’t have “as much variety” as a large European bank, but that it is better at “local knowledge, contacts and long-term relationships”.
“This is very important. What we’ve tried to do over the last two years is bring in incredibly successful people and products and also carry out some important joint ventures. We were very anxious to get it going as soon as possible. And we are still growing,” he says.
“Take one that’s already been put together – Industrial City – that has a combination of local and international investors. There’s a lot of interest from abroad in this region and we want to be there and stay there,” he says.
“We’ve made proposals on Saadiyat Island but they [the government] haven’t awarded the work on it and they haven’t finalised the plans. They have the masterplan but they’re working through proposals,” he says, hinting that ADCB could well be involved in the deal somewhere along the line.
The bank has not only got a series of ongoing multi-billion dollar projects on stream such as a deal with property developer ETA Star for its flagship Grandeur Residences on the Palm Jumeirah, it has also expanded extraordinarily within the consumer and retail markets, seemingly advertising its products in every free space available.
Knox says this is down to “opportunism” and taking advantage of large local projects. Planting the largest billboard in the Middle East directly in front of the world’s future tallest building, the Burj Dubai, and its surrounding Business Bay complex was certainly one of those “opportunities”.
“Like the rest of the mandates we have, we’ve been very opportunistic I’d say. For example, another bank would have taken a lot longer to put those together. We saw business opportunities and we said to ourselves, no we have to do this now,” Knox explains.
He says that the bank’s success over the past two years is largely down to a combination of his and the board’s masterplan, spreading the word about what ADCB can offer customers, wanting to become the number one bank in the region, diversifying its products and taking advantage of the massive expansion underway in Abu Dhabi. This is not to mention the huge growth and interest real estate and large-scale developments are attracting from foreign investors, says Knox, also admitting to a large project he has had up his sleeve since he arrived in the UAE.
“The issue of internationalising the economy is huge. You’ve got a lot of international companies coming here and a lot of specialist skills being brought in.
“We hope to fit in with the regional economy and we’ve got a big project going on with two major players. The idea is much broader than just the UAE, we’ve been looking at this frankly since I first got here.”
His greatest success since joining? Knox hesitates for a second and jokingly recalls playing a recent Pro-Am tournament with US golfing legends Tom Watson and Greg Stadler and getting his handicap down to 15. He then states his real achievement, “the overall success of the bank”. This may be a “very straightforward” and “very American” answer, but he’s not wrong.
Posted by Informed Realist, Dubai, UAE on 27 July 2009 at 19:11 UAE time
I don't think I have ever heard Al Fahim described as a role model for the world. You might want to educate yourself a little!
Posted by temur, birmingham, United Kingdom on 17 June 2009 at 15:12 UAE time
dr sulaiyman is a role model for all the world not only muslims his vision will go far, lets just hope we get some more new big signings.
Posted by sherry, shenzhen, China on 16 May 2009 at 20:20 UAE time
Best of luck for everything!
Posted by Kawthar Saeed, Dubai, UAE on 5 January 2009 at 15:47 UAE time
Abdullatif Al Mulla is indeed a great and superb leader! I have worked with him closely in TECOM and learnt from him many good skills of leadership which I am using them in my current role. I wish him all the best in his career and may God grant him success all the time. Abdullatif, as always, you are a great leader for us!
Posted by Layla Al-Ansari, London, UK on 27 October 2008 at 16:50 UAE time
The top 100 CEO's list is highly impressive covering the biggest names from all over the gulf. However, whoever has compiled the list has definitly forgotten some notable movers and shakers in the past decade.
Dr. Abdallah AlDabbagh the CEO of Ma'aden the Saudi Arabian Minning Company has spearheaded the establishment of an entire new industry sector in Saudi Arabia. Not only is this sector viable with it's ambitious projects such as gold, alumina and phosphate projects, it is more importantly sustainable.
I am sure Dr Al-Dabbagh was not the only CEO overlooked in your report. In your next top 100 CEO's report, I suggest you undergo in-depth analysis of the gulf market and the massive changes that REALLY taking place and changing the future.
Posted by Steven on 18 September 2008 at 00:46 UAE time
Mr Al Hashimi is a fine role model for all young people in the world today, I hope that someone of his calibre and experience could help football teams like newcastle united to reach their full potential, the fans from the north-east are the kindest and best supporters in the Uk, and I imagine the people of newcastle would welcome him
Posted by Mohamade Iqbal Oojageer, Port-Louis, Mauritius on 3 September 2008 at 14:14 UAE time
Dr Sulaiman
Congratulations to you as the new big boss of Manchester City. With your massive investments, you will prove to the world, Insha Allah, your vision is gold and City can become the biggest club in the world and new English reference for quality football. I am a seasoned Sports Journalist and I can foresee success and positive revolution in British sports, especially soccer.
Posted by Biniraj, Sharjah, UAE on 29 July 2008 at 12:27 UAE time
It was indeed right decision launching of Air Arabia. I described Air Arabia as REAL AIRLINE. .. i noticed one thing that, they are on time, they are on line, they are on right price, that is what we need.
I am proud to say as a Air Arabian traveller, and I salue Mr. Adel Ali for his visions.
Posted by Ataur Rahman ,Business Development Manager, Dubai, UAE on 10 July 2008 at 20:39 UAE time
An analysis of the the top 100 in GCC reveals a shocking statistic too..63% of them are from UAE, 14% Saudi, 13%Kuwait, 6% Qatar, 4% Bahrain.
More shocking to me is that in Energy sector only there are 4%..in construction 4% Media & Marketing, 4% Politics & Economic 4% Banking & Finance 20% Real estate 23%
Why inspite of all the boom in petrol price there are just 4% of them belongs to this sector. I demand an explanation.
Posted by john, New York, US on 25 May 2008 at 16:48 UAE time
Dubai's real estate watchdog on Sunday launched its own magazine in an effort to address investor concerns over a lack of transparency in the market.
Posted by Mr George Osei, accra, Ghana on 11 May 2008 at 17:29 UAE time
Dear Friend,
My name is Mr. George Osei,I work with a Bank as a manager, in one of the commercial banks in Accra-Ghana west Africa. I have packaged a transaction that will be of mutual benefit to us. As the branch manager of the Bank Ghana, it is my duty to send a financial report to my head office in the capital city, Accra, at the end of each financial year.Following the release of the second quarter financial report, ending June 2007, I discovered that my branch made a substantial profit which accrued from the account of the Inland Revenue Service (IRS).
This was not detected by the internal auditors from my head office. I have diverted the funds into what the bank call Escrow Call Account with no beneficiary. Meanwhile as you know I can not be directly connected to this money for obvious reasons. So my contacting you is for you to assist me receive this fund in your country which I know is possible if you liaise properly with me and get a consideration share of the total funds as your benefit.
The transfer would be a Bank-to-Bank transaction. All I need from you is to stand claim as the original depositor of this fund. I will compute your particulars as the person who made the deposit in my branch into our computer data base, so that my head office will immediately order the transfer to your designated bank Account. Thanks for your understanding and co-operation. Please you can indicate your interest by sending me a return mail. While I implore you to maintain the absolute secrecy and confidentiality required in this transaction I am waiting for your positive response.
Yours truly,
Mr.George Osei
Show all comments
Posted by stuart mayhead, Abu Dhabi, UAE on 21 April 2008 at 09:21 UAE time
Hi Len if you visit www.artinthecity.com you will find and Art Map of Abu Dhabi, Dubai and Sharjah which shows all the local galleries and has a calendar of events noting all the exhibitions. If you sign up for them you will receive fortnightly reminders.
Posted by len on 20 April 2008 at 14:15 UAE time
I'm looking for modern art galleries in your country. Can you help me with a list?
Editor's Reply Kindly visit www.timeoutdubai.com for a full list of art galleries in Dubai, or www.timeoutabudhabi.com for a full list in the capital.
Posted by Nabil Alwakidi, jeddah, KSA on 13 April 2008 at 10:24 UAE time
Dear Abdulkareem,
Perfect person on the right place, very difficult to find some one like you. this comment will show you how much we like your job.
Best of luck for everything!
Cheers,
Nabil Alwakidi
Posted by shahla naim, AbuDhabi, U.A.E on 19 March 2008 at 11:18 UAE time
Success, from my point of view is 10%luck, 40%study, 50% hard work. Upon reading this article, I think am still at the first 10%.
Posted by Nasrin Quraishi, Chennai, India on 5 March 2008 at 15:03 UAE time
Good Evening,
I am very happy and proud that I am living in this world where HRH Mr.Abdullah Al Awadi is living. I pray Almighty God to work under him atleast for a year.
Thank you
Posted by Safwat Faroun, Ramallah, Palestine on 13 February 2008 at 19:20 UAE time
I am currently residing in the west bank, and I am looking for jobs. Your Arabbusiness could be of indispensable value to me. Keep up the good work!
Posted by Jehad M. Shaban, Kuwait, Kuwait on 9 December 2007 at 15:57 UAE time
As per your Arabic article of the top 100's CEO's in the GCC, would you kindly correct Mr.Abdullah Al Awadi's name in Arabic to: عبد الله العوضي and the company name to: Al-Ahlia Holding Company. Thank you.
Posted by Nand, Riyadh, Saudi Arabia on 9 December 2007 at 11:41 UAE time
Wonder what standing Saudi ARAMCO has? Is it not among the most admired companies in the GCC?
Posted by Prabal Rai, kathmandu, nepal on 6 December 2007 at 12:07 UAE time
Dear Sir,
How possibly I can contact direct to Amir Alwalid Bin Talal for my own personal plea concerning my occupational hazzards in compny own by him? Please guide me in this regards.
Yours truly
Prabal Rai
Kathmandu Nepal
Posted by Ibrahim, Abu Dhabi, UAE on 6 December 2007 at 09:43 UAE time
I've worked in the oilfield since 1989, mostly in the UAE but also all over the MENA region, and this is the first time I've heard of this company (SS Lootah). What about Al-Dulaimi group (Qatar) or Mohammed Barwani (Oman) or AlMansoori (UAE)? I wonder what the definition of "Energy Industry" is? I suspect the people who selected the winners don't understand how our industry works.
Posted by Omair bin Zahid Al Husain on 5 December 2007 at 22:07 UAE time
It is interesting information. Being an entrepreneur myself, I don't mind knowing who could be of advantage to me and where I can find products and/or services I need. I wonder what was the criteria for selection though, but a wiseman said that the modern day winner in the corporate world is the one who could "learn, unlearn and relearn!" Keep us up to date Arabian Business.com. Thank you very much.
Posted by Nikhil Sindhu on 5 December 2007 at 19:03 UAE time
Thank you Anil for the insight about an extraordinary person.
Posted by Faris AlQURESHI, Riyadh, Saudi Arabia on 5 December 2007 at 12:53 UAE time
Dear Anil,
The best best interview for the most admiring and decent personality.
Best of luck for everything!
Cheers,
Faris
Posted by Prof Philbert, Salmiya/ Kuwait, Kuwait on 5 December 2007 at 10:57 UAE time
If the company is going to achieve something of some recognition, they must follow three I's - Innovation, Infrastructure and Integration.
Innovation is importnat to give the company an ability to extend the product and service life cycle from point of stagnation to new thinking - a sort of sigmooid curve that repeats itself - saying in simple words - an old wine in a new bottle.
Infrastructure for aiding innocation is another key dimension that can add value to corporate growth. A CEO must take a balaced scorecard to organizational development.
Integration is keeping all elements of the orgnization togehter and take a unified approach to the big picture.
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