SINGAPORE, 2 March 2007 — Emirates Bank, Dubai’s biggest lender, is to formally open a representative office in Singapore today in a bid to capture a share of the growing trade between Asia and the Middle East.
Company executives said the bank, which is also the second largest lender in the United Arab Emirates (UAE), aims to make Singapore its gateway to offer Islamic and conventional banking services in the Asia Pacific region.
The bank established the office during a “soft launch” in November last year, but the formal opening this week signals it is now fully in business, the executives said.
The bank’s Asia Pacific representative Brian Shegar said Singapore was chosen because of its strategic location and favorable regulatory environment allowing the growth of Islamic financing services. “In Singapore, you have a lot of connectivity between the Middle East and companies in this region,” Shegar told reporters. “Trade is growing exponentially. It has grown by 20 percent per annum and has reached $11.8 billion last year. That’s going to grow.”
Emirates Bank Chairman Ahmed Humaid Al-Tayer said the bank plans to establish an offshore branch in the future, while Shegar added the focus will be on wholesale, US dollar-denominated financing.
“We don’t see ourselves playing a role in the retail side, but we see ourselves playing a role in terms of working with other local banks and other international banks in Singapore (in wholesale finance),” Shegar said. “We have our Shariah knowledge. We can help distribute these products and issues in the Middle East.” Shegar said prospects are good for Islamic financial services in the region, where even non-Muslims are availing themselves of the offers.
In largely Muslim Malaysia, Islamic finance is growing at 15-20 percent a year, but is focused mainly on the domestic market and is denominated in the local ringgit currency. By 2010, it is estimated that Islamic finance will account for 30 percent of Malaysia’s total banking pie, Shegar said.