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Other German banks set up outside the DIFC,
which was the case for BHF Bank, Germany’s
second largest private bank. Rather than just
setting up a branch office, BHF launched a
partnership with Abu Dhabi Investment Company,
focusing on its asset management business and
providing advisory services.
“Investors are demanding an increasing exposure
to MENA investments, but historically they have had
little access to these opportunities,” said Nazem Al
Kudsi, chief executive of ADIC, in a statement. “BHF
Bank has recognised this gap.”
During the UAE’s boom days, German banks
began setting up in the region, one after the
other, reaching a peak in 2008. In May 2008, the
200-million-euro German Business Park, based
in Silicon Oasis, opened its doors to German
companies. Designed as a hub for German firms
in the UAE and the Gulf region, the project was a
joint venture between the Bin Jabr Group, holding a
majority share of 68 per cent, and the Dubai Silicon
Oasis Authority, which owns a 32 per cent stake.
Offering an array of services under one roof, the
park, which is home to the German Centre Dubai,
provides office space and business services to
German companies, including banks. The unique
project is meant to serve as another bridge for
German companies and investors interested in
the UAE.
When the financial crisis hit in the fall of 2008,
however, these entities were tested in their ability
to weather downturns in the economy. Most were
forced to downsize and run lean operations during
the ensuing difficult times. They were ready when
good deals began to flow once more, which was the
case for Deutsche Bank in April of this year, when
it arranged the first international sukuk for Saudi
Electricity Company, the largest utility firm in the
Middle East alongside HSBC, worth $1.75 billion.
“The issuance also represents the largest
international capital markets transaction by
a Saudi corporation,” said Jamal Al Kishi, chief
executive officer of Deutsche Securities Arabia, a
subsidiary of Deutsche Bank Group. “We are proud
to have contributed to its financing success, which
we hope will support the Kingdom’s growth at this
important juncture.”
Similarly, in July 2012, Commerzbank Dubai
executed the first trade in a repo loan market in
the UAE. Clearstream, a financial institution, joined
hands with Abu Dhabi Commercial Bank to provide
triparty repo services. This is a significant step in the
evolution of a Middle Eastern triparty repo market
and the general sophistication of Middle East
financial market infrastructure.
The German banking industry has also given back to
the community with corporate social responsibility
initiatives. In April 2012, Deutsche Bank was
awarded the Patron of the Arts award by Sheikh
Mohammed bin Rashid Al Maktoum for the bank’s
contributions to the local art scene in 2011. Last
year, the bank sponsored a plethora of art projects,
including an open air display of 25 balancing
sculptures dotted across the DIFC and Emirates
Palace in Abu Dhabi.
As the German banking industry continues to
grow and capitalise on regional potential, new
avenues continue to be explored – ranging from
the introduction of new funds to creative corporate
social responsibility programs.
GERMANY SUPPLEMENT | 07