Abu Dhabi Islamic Bank says it expects almost all of the customers that it inherited from its purchase of the UAE retail banking arm of Barclays to stay on, boosting its efforts to expand beyond its traditional base.
Barclays said in April that it would sell its UAE retail unit to ADIB for about Dh650 million. As well as absorbing 110,000 customers, ADIB also hired nearly all of the unit's employees, according to Phil King, the head of ADIB's retail banking division.
The retail clients were notified of the changes and were given 90 days to opt out of the integration, which should be completed by the end of the year, he said.
The sale to ADIB comes amid greater consolidation in the banking market, especially in the consumer divisions. Abu Dhabi Commercial Bank, which was reported to have expressed interest in Barclays, bought the retail arm of Royal Bank of Scotland in 2010 for about US$100m, adding more than 250,000 customers to its business. HSBC bought Lloyds' retail arm in 2012 for $769m and Emirates Islamic merged with Dubai Bank to create Emirates Islamic Bank in 2012.
ADIB is not only trying to win a greater share of the thriving consumer banking market but is also striving to make Sharia-compliant banking, which prohibits interest and charges a profit rate instead, more attractive to non-Muslims.
The bank last year hired Mr King, a veteran Citibank executive, to head the lender’s retail business, and he is keen to make Islamic banking more accessible to western expatriates while keeping the bank’s existing local customers happy.
“We’re attracting more and more expats and our penetration of Dubai has increased,” he said. “We’re still very strong in Abu Dhabi, appealing to UAE nationals and Arab expats. That hasn’t changed. The strategy of expanding into the non-Muslim expat segment is also working. It’s irrelevant whether you are Muslim or not – it’s about providing services that are ethical.”
Mr King added that the successful retention of Barclays customers was mostly because of the better financing rates offered to them.
“We’ve had very few people say they don’t want to stay on,” he said. “People like that, they are getting a better deal than before. We’re giving better offers on their home finance, on their card proposition. We wanted them to know they were coming over to a fair and beneficial proposition.
“It’s at least matching the benefits they have with Barclays, and we are offering them something on top. There’s no downside on the product offering.”
ADIB, which had an existing customer base of about 600,000 before the Barclays acquisition, had been building up its consumer banking business aggressively over the past couple of years, expanding its operations into other emirates, such as Dubai. The lender has the third largest retail banking network in the UAE, with 80 branches and more than 600 ATMs.
Banks in the UAE, of which there are more than 50, have been vying heatedly for retail customers since the financial crash of 2008 because the margins on that business are higher than loans to companies. Many corporate borrowers struggled to recover from the crisis, making banks focus on individuals.
The subsequent economic boom in the UAE that began in earnest last year has increased demand for mortgages, car loans and personal financing. That has made it difficult for banks with smaller retail networks to compete with market leaders such as Emirates NBD and ADIB.
mkassem@thenational.ae
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Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
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TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).