Deutsche Bank’s rapid regional expansion plans have taken another step forward with a branch opening in Qatar following Riyadh last year and Dubai two years ago.
“We have been suitcase bankers in the GCC for long time, but now we want more local presence, so we can position ourselves as a local bank with international back round,” Ricardo Honegger, Deutsche Bank head of global markets in the Middle East and North Africa, told Arabian Business.
Deutsche Bank’s growth is hot on the heels of a number of other financial institutions that are keen on tapping into the lucrative Gulf region. Qatar alone is expected to invest around US$130bn over the next six to seven years. “These investments will not only include oil and gas projects, but also infrastructure,” Honegger said.
Deutsche Bank has been a pioneer in Islamic finance and launched the largest ever Sukuk for the Saudi Basic Industrial Corporation (SABIC) last year.
“The Islamic finance market has been growing rapidly and Deutsche Bank is well established in this field. We are innovative in offering new Islamic finance products and now in the middle of raising private equity funds that are Sharia-compliant,” he said. He added that demand for Islamic finance products was also growing in Germany and Japan as “Sukuks offer the same margins as conventional bonds – there is no premium to pay for the Sharia compliance.”
Ken Borda, Deutsche Bank CEO for the Middle East and North Africa, said that the GCC was part of a series of emerging markets the bank operates in. “We are also very active in Russia, Asia and South America. We believe that there are not only very strong investment inflows between the GCC and Germany, but also increased engagement between the Gulf States and Asia,” he added.
Deutsche Bank launched its first Sharia-compliant mutual fund in December 2006 – the DWS Noor Islamic Fund. Initially, the range will be offered to investors in the UAE and Bahrain, with plans to expand the offerings. Minimum investment is US$1000.
Follow us on
