Al Kishi: Deutsche Bank keen on boosting local financial expertise

Deutsche Bank, which opened its first Saudi branch in Riyadh in April 2006, has been playing an important role in bringing financial know-how to the country, according to Jamal Al Kishi, CEO of Deutsche Securities Saudi Arabia.
"Deutsche Bank is keen on the development of the local capital market and Saudi financial talent, providing our Saudi-based clients with advice and innovative solutions and giving them access to global markets and opportunities, in addition to helping attract foreign direct investment FDI into the Kingdom," Al Kishi told Arab News in an exclusive interview.
Al Kishi added that the bank's branch in Riyadh is regulated by the Saudi Arabian Monetary Agency (SAMA) and operates under a full commercial banking license, which was granted by SAMA in July 2004. A second entity, Deutsche Securities Saudi Arabia LLC (DSSA), was incorporated in December 2007. DSSA is regulated by the Capital Market Authority (CMA) and is licensed to carry out securities business.
Through its two legal entities, Deutsche Bank offers a full range of investment banking, private wealth management, and global transaction banking services to its clients in the Kingdom, he said.

When did Deutsche Bank establish its presence in the Kingdom?

In April 2006, Deutsche Bank's presence was established in Saudi Arabia with the opening of a branch in Riyadh. The branch is regulated by the Saudi Arabian Monetary Agency (SAMA) and operates under a full commercial banking license, which was granted by SAMA in July 2004. A second entity, Deutsche Securities Saudi Arabia LLC (DSSA), was incorporated in December 2007. DSSA is regulated by the Capital Market Authority (CMA) and is licensed to carry out securities business.

Can you outline the kind of services offered by Deutsche Bank in the Kingdom?

Through its two legal entities, Deutsche Bank offers a full range of investment banking, private wealth and asset management, and transaction banking products and services. Deutsche Bank is well recognized for its leading role on some of the most significant transactions in Saudi Arabia over the last few years, and is the recipient of several regional awards in recognition of its achievements in investment banking and Islamic finance. Our Saudi-based team taps into the global platforms of Deutsche Bank Group to ensure that Saudi-based clients are provided with Deutsche Bank's leading expertise and world-class execution.

Do you have a special role in Saudi Arabia?

We see our role as helping to bring financial know-how to the country, helping to develop the local capital markets and financial industry, developing local financial talent, providing our Saudi-based clients with advice and innovative solutions and giving them access to global markets and opportunities. We also help attract foreign capital and investments to Saudi Arabia.

What awards have been won by Deutsche Bank Saudi Arabia?

In 2011, Deutsche Bank received the awards for Project Finance Deal of the Year 2011 and Saudi Arabia Deal of the Year 2011 from Islamic Finance News recognizing Deutsche Securities Saudi Arabia's successful execution of Saudi Aramco Total Refining and Petrochemical Company (SATORP) Sukuk Certificates. In addition, Deutsche Bank has won the Best Foreign Investment Bank in Saudi Arabia 2011 award recognizing Deutsche Securities Saudi Arabia's successful execution of landmark transactions. Furthermore, Deutsche Bank has been awarded Best Investment Bank in Saudi Arabia in Euromoney's Awards for Excellence 2012.

How does Deutsche Bank support the trading activities between Saudi Arabia and Germany?

We see ourselves as a leading global bank; however, being the leading bank in our home market Germany, we are the partner of choice for German companies doing business abroad. In Saudi Arabia, our services focus on servicing corporate and institutional clients and include traditional and new commercial banking services such as international trade finance solutions, cash management and treasury solutions, including the taking of non-retail deposits in a number of GCC and international currencies. In April 2011, Deutsche Bank launched its Trade Finance and Corporate Cash Management services out of its branch in Riyadh to facilitate trading activities between Saudi Arabia and the rest of the world, including Germany.

How committed is Deutsche Bank to the Saudi market?

We strive to consistently provide our Saudi clients with best-in-class advice, products and services working seamlessly with Deutsche Bank's global network. We are passionate about growing our Saudi franchise through delivering optimal solutions to our clients, bringing leading financial know-how onshore and training Saudi nationals in all facets of our industry. Last year, we organized a five-day visit to the Kingdom by a German delegation of 15 chief executive officers from various industrial and services sectors to promote investment and partnerships in the Kingdom. The visit included meetings with some of the key political, industrial and financial leaders. The delegation was headed by Juergen Fitschen, Co-CEO of Deutsche Bank AG, and some senior Deutsche Bank representatives.

What are Deutsche Bank's corporate social responsibility programs in the Kingdom?

At Deutsche Bank, we believe our responsibility goes beyond our core business. We want to give back to the communities we operate in and be a good corporate citizen. Progress, prosperity and sustainability are key considerations when we initiate and support educational, social and cultural projects that help people everywhere to leverage their potential.

Can you give some examples of your CSR activities?

In 2010 we co-sponsored the showcasing of some young Saudi artists' work in Istanbul, the then European Capital of Culture in collaboration with Edge of Arabia. In 2012, Deutsche Bank through its Middle East Foundation supported the Intellectual Education Institute for Girls in east Riyadh by hosting an art exhibition created by its students and purchasing a communication device for the institute. In our opinion, everyone should have the chance to be creative and to present their creativity, and by supporting the art exhibition of the Riyadh institute we tried to foster the acknowledgment of these special girls by the community. More recently, in August, we organized an Eid Party for the kids of Bunyan Association. We were delighted and proud to be able to offer these special kids a chance to have fun and the ladies of the Association the opportunity to practice their organizational skills.

How do you see Deutsche Bank's prospects in Saudi Arabia?

Deutsche Bank is fully committed to Saudi Arabia and we are very optimistic on the prospects of the Saudi market. Deutsche's business in the Kingdom has grown significantly. And as I noted previously, we enthusiastically embrace our role in bringing financial know-how to the Kingdom and in developing the local capital markets and financial industry. Importantly through developing local financial talent, we are able to contribute to the formation of Saudi Arabia's human capital and overall progress. We also help to attract foreign capital and investments to Saudi Arabia as alluded to earlier.

What are the benefits of opening Tadawul to foreign investors?

Opening the Saudi stock market to institutional investors will be beneficial. It will bring to the market investors who typically make investment decisions on the basis of proper valuation of securities. This will, at least partly, offset the retail-driven swings and volatility. And in addition to being foreign direct investment in its own right, investing by foreigners in Saudi stocks will also promote further investment in the country and will raise the profile of Saudi Arabia and its economy. Foreign investors will also demand higher levels of transparency, corporate governance and accountability.

What more should Saudi Arabia do to continue to attract FDI?

Attracting FDI into the country has been talked about for many years now. In my view there is a need to work on some fundamentals in order to begin to realize the FDI potential of Saudi Arabia. Further streamlining the legal and regulatory frameworks will make the country more appealing to investors. And we have to enact some more investor-friendly measures. If we want investors to come in and invest, we have to make them feel welcome and comfortable. Saudi Arabia, in pure economic terms is an attractive investment destination across many sectors and thus the challenge is to ensure that access is facilitated.

How should Saudi Arabia tackle the problem of acute housing shortage in your view?

There is no doubt that Saudi Arabia is grappling with an acute housing shortage for some time now. The government is taking bold measures to overcome this problem, including the establishment of a housing ministry and the enactment of the mortgage law. The mortgage law will help hopefully direct more private capital into financing the sector but I believe affordability of housing is a major issue. Taking measures to develop real estate with the requisite infrastructure in order to reduce the cost of land in and around urban areas in Saudi will be a vital step forward. The government is in a good position to spearhead this massive initiative.

Is there any impact of the regional crisis on Saudi Arabia?

The buoyancy and stability of the Saudi economy is clear from the resilience it has shown in the face of the so-called Arab Spring. Of course, the Kingdom cannot insulate itself completely from developments in its neighborhood. In that context, the uncertainties in the region can impact Saudi Arabia but such impact is likely to be manageable.

Would you like to comment on Saudi Arabia's measures to diversify its economy?

The government has adopted many initiatives to diversify the Saudi economy and make itself less dependent on oil. I do believe that this is a major priority for the policy makers in the Kingdom. It's a pressing, massive and challenging quest.