Citi granted license to set up Citibank branch in Abu Dhabi

Citi is expanding in the UAE where it has provided wholesale and retail banking since 1964. (Reuters)
Updated 30 October 2018
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Citi granted license to set up Citibank branch in Abu Dhabi

  • The new branch will provide liquidity management to Citi’s clients looking to establish regional treasury centers in the UAE
  • Citi is expanding in the UAE where it has provided wholesale and retail banking since 1964

DUBAI: Citigroup has been granted a license to set up a branch of Citibank at Abu Dhabi Global Market (ADGM), a financial center in Abu Dhabi, it said on Tuesday.
The new branch will provide liquidity management to Citi’s clients looking to establish regional treasury centers in the United Arab Emirates, as well as offering institutional banking services to its global clients, it said.
Citi is expanding in the UAE where it has provided wholesale and retail banking since 1964, and in neighboring Saudi Arabia where it plans to apply for a full banking license.
Citi aims to boost the UAE’s role as an offshore booking center to cater for demand from multinational corporate clients wanting to use the country as a center for their business in the Middle East and Africa, Atiq Rehman, Citi’s Chief Executive of Middle East and Africa told Reuters earlier this month.
The granting of the license in Abu Dhabi was made during a visit to ADGM by Citigroup chief executive Mike Corbat.
ADGM, which opened in October 2015, and the older and larger Dubai International Financial Centre (DIFC) are the UAEs’ two international hubs for banking and fund management.
In comments aimed at encouraging more banks to establish themselves in ADGM, state oil giant Abu Dhabi National Oil Company’s chief executive Sultan Al-Jaber said in February that it was likely to engage more with financial institutions that have a presence in the financial center.


Nissan meets to replace Ghosn, as tensions with Renault grow

Updated 17 December 2018
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Nissan meets to replace Ghosn, as tensions with Renault grow

  • The decision on replacing Ghosn at Nissan is being led by an advisory committee that includes a former Renault executive
  • The Japanese company removed Ghosn from his post last month after he was detained on allegations of under-reporting his salary

TOKYO: The board of automaker Nissan meets Monday to discuss replacing former chairman Carlos Ghosn after his arrest for financial misconduct, as tensions grow in the firm’s alliance with Renault.
The Japanese company removed Ghosn from his post last month after he was detained on allegations of under-reporting his salary.
But it appears unlikely to agree Monday on a permanent replacement for him, in part because of open discord in its alliance with French automaker Renault.
Nissan itself faces charges for allegedly submitting financial documents that understated Ghosn’s pay, and Renault is now reportedly seeking more sway on the Japanese firm’s board.
The Wall Street Journal reported Sunday that Renault urged Nissan in a letter to hold a shareholders meeting to discuss Renault’s representation on the firm’s nine-member board and within its top management.
It warned that Nissan’s indictment “creates significant risks to Renault, as Nissan’s largest shareholder, and to the stability of our industrial alliance,” the Journal reported.
A source with knowledge of the issue confirmed that Nissan had received the letter and was planning an extraordinary shareholders’ meeting in January.
Renault’s letter is the latest sign of the tensions in the alliance that groups the firm with Nissan and Mitsubishi Motors — a partnership that Ghosn forged and was often credited with holding together.
While Nissan and Mitsubishi Motors quickly removed Ghosn from leadership positions after his arrest, Renault has kept the auto executive on as CEO and chairman.
And while Nissan CEO Hiroto Saikawa launched a broadside against his former mentor shortly after his arrest, describing his “dark side,” Renault has approached the allegations more cautiously.
The decision on replacing Ghosn at Nissan is being led by an advisory committee that includes a former Renault executive, and Japanese media reports suggested it was unlikely to reach a decision on Monday.
“It slows things down, but it isn’t the end of the world,” a source close to the issue told AFP.
“We need to let them talk and decide properly. That’s more important than rushing.”
The company is instead likely to announce new governance measures intended to address criticism that it failed to prevent Ghosn’s alleged misconduct.
As his former employer wrangles over his replacement, Ghosn remains in the one-man cell at a Tokyo detention center he has occupied since his shock arrest on November 19.
Prosecutors have already charged him with under-reporting his pay by around $44 million over the five years to 2015, and are also investigating claims he under-reported it further in the last three years.
He will be detained until at least December 20, when prosecutors will either file new charges or request another 10-day detention period while they continue investigations.
A range of additional claims of financial misconduct have been made against Ghosn, including using Nissan funds to purchase homes around the world, though prosecutors have yet to level those accusations formally.
He and his former right-hand man Greg Kelly, who is also under arrest, reportedly deny any wrongdoing.
The charges have sparked a legal battle over Ghosn’s flat in Rio de Janeiro, with Nissan trying to prevent his family members from accessing the property and removing items.
A Brazilian court authorized relatives to access the apartment, despite claims from Nissan that they were removing corporate documents.
Ghosn’s arrest marked a stunning reversal of fortune for the Franco-Brazilian-Lebanese tycoon, once revered in Japan for effectively rescuing Nissan from insolvency.
He helped engineer the alliance between Nissan, Renault and Mitsubishi, creating a partnership that sold more cars than any other globally last year.