RIYADH, 21 January 2008 — Arab National Bank (anb) unveiled yesterday four major strategic initiatives to take advantage of the economic boom in the Kingdom and Dubai, spin off a new subsidiary for asset and wealth management, provide homes to low- and middle-income group, and go into joint venture in the insurance sector.
Abdullateef Al-Jabr, chairman of the bank, made the announcement at a press conference on the occasion of opening a new branch in Al-Tawun District in north Riyadh along the Northern Ring Road between Exits 6 and 7. This is the first model branch sporting the new logo and equipped with smart systems to direct and service customers
The event also marked the launch of a new identity and a new three dimensional logo of the bank comprising a sphere in blue spectrum encompassing the letter A beside anb surmounted by Alarabi in Arabic letters. The new identity was much more than a symbolic change. It was a paradigm shift intended to reach a larger segment of customers with a wide array of products and services using both Islamic and conventional banking models, said Dr. Robert Eid, anb’s managing director and CEO, at the conference, also attended by Salah Al-Rashed, member of the bank’s board of directors.
It was disclosed that anb will go into partnership with American International Group (AIG), one of the world’s largest insurance companies, for providing insurance in marine transportation, life, accidents hazards and comprehensive insurance coverage.
With the inauguration of the Al-Tawun branch, the bank’s network, which stood at 146 last year, was expected to reach 150 in 2008. “We are constantly remodeling, renovating, expanding and relocating branches to be more accessible to our customers and reflect the new business culture,” the chairman said. He also inspected anb’s first mobile banking unit consisting of two ATM terminals. This will extend the reach of the bank to any far-flung area, sporting or other public events where cash-dispensing machines may be required. The chairman added that anb had beefed up its presence in Islamic banking through 38 dedicated branches, which led to the bank’s surge in capital to SR6.5 billion, up from SR150 million when it was launched in 1979.
Eid said anb has set up four new companies to exploit the economic boom in different directions. It has gone into a joint venture with Dar Al-Arkan, a major Riyadh-based real estate company, for setting up Saudi Home Loans (SHL). The new outfit will provide home loans and financing to the low and middle-income citizens and expatriates.
Its second initiative involved the launch of anb Invest, a new subsidiary of the bank to undertake asset and wealth management. It will also engage in investment banking activities, such as share flotation, providing advisory services, underwriting business transactions, launching new products and services for high net worth individuals — created in response to the Capital Market Authority’s regulations requiring all commercial banks to segregate their retail and investment banking activities.
Eid said the bank has also forged alliance with Consolidated Contractors’ Co. (CCC) for leasing heavy equipment to benefit from the buoyant construction market, particularly the housing sector. Together, they had floated an SR1 billion joint venture through the new company, Ejara, in which anb holds over 62 percent share.
The joint venture was also scouting for new business opportunities in Dubai’s booming construction market, with anb putting up 17 percent of the share capital in the company already in operation. Asked if the bank has any plans to set up a branch in the GCC states, Al-Jabr said they have already submitted requests in two Gulf states. “We are waiting for approval from competent authorities, but we realize that we cannot compete with the local banks in those countries,” he added.