RIYADH, 2 May 2006 — Backed up by 130 financial experts and its regional presence in the Gulf states and Egypt, Deutsche Bank has declared that it would leverage its strength for the benefit of its Saudi customers scouting for investment opportunities in both global and Shariah-compatible products.
Dr. Josef Ackermann, CEO, Deutsche Bank, underlined his bank’s commitment as it opened its first branch in the Kingdom in Riyadh. Hamad Al-Sayari, governor of the Saudi Arabian Monetary Agency (SAMA), and Dr. Ackermann cut the ribbon to mark the formal opening of the Riyadh branch.
Welcoming the presence of Deutsche Bank in the Kingdom, the SAMA governor said it would help to diversify the banking sector and make available a wide range of products and services. As a result of the competition, the quality of service in the banking sector will also have a qualitative edge, he observed.
Deutsche Bank joins a number of newly licensed foreign banks including BNP Paribas, J.P. Morgan, the National Bank of Kuwait, the National Bank of Bahrain, Emirates Bank, Gulf International Bank, State Bank of India and National Bank of Pakistan. BNP Paribas, which opened its branch in Riyadh last year, was the first European bank to enter the Saudi market as a 100 percent foreign bank.
Speaking on behalf of the bank, Dr. Ackermann thanked the Kingdom’s leadership for inviting Deutsche Bank to establish its presence here. He said the Riyadh branch office, located in Al-Faisaliah Tower, would provide a full range of investment banking, private wealth and asset management services to Saudi customers. The bank will work closely with SAMA and the Capital Market Authority (CMA), catering to the needs of investors, seeking Shariah-compliant or other products.
Dr. Ackermann said over a dozen new products were available for their clients today, while more would be launched soon. “In addition, we’ll continue to leverage our strength of our offices in Cairo, Bahrain, Abu Dhabi and Dubai, so that we can look for opportunities in Saudi Arabia, one of the world’s fastest growing economies.”
The bank has deployed 130 financial experts dedicated to offering a range of services, including brokerage, asset management, corporate finances, etc. He said that Deutsche Bank would not only provide its clients access to a wide range of services through its global network but also those within the Saudi market.
The bank has announced the appointment of Alexander Schuetz as chief operating officer, Middle East North Africa (MENA), effective from May 1. Schuetz will be based in Dubai and will be responsible for coordinating the bank’s infrastructure functions across all business activities, product groups, legal entities and branches.
Banking analysts told Arab News that from the Kingdom’s perspective, Deutsche Bank’s presence was an important vote of confidence in the economy, especially at a time when international news headlines are focusing attention on political developments in the region.
It also reflects a shift in Saudi policy toward strengthening its economic and political ties with Europe, which it sees as a balance to its historic partnership with the US.
Deutsche Bank has established itself as a major player on the Saudi investment scene. It has already granted the Saudi industrial giant Saudi Basic Industries Corp. (SABIC) a $1 billion Islamic loan to help fund future projects. “Under this deal, SABIC will be able to outsource banking facilities in order to finance part of its expansion projects and future investments,” a statement on the firm’s website said.
