Citigroup expects its Middle East business to pick up this year, despite a drop in interest rates and a slowdown in some regional economies, the bank's head of emerging markets said.
"Top-line [growth] is in high single digit … we are going to have a record year for revenues," Atiq Rehman, the head of Europe, Middle East and Africa Emerging Markets Cluster for Citigroup, told The National in an interview in Dubai on Tuesday, citing a pick-up in its fee-based income. "Profit is a function of many things but I would say it would be for the bottom line as well," he said declining to provides specific figures.
Mr Rehman, who was previously chief executive of Citi’s Middle East and Africa operation, was this week charged with running the bank’s emerging markets cluster, consisting of the Middle East and North Africa and Sub-Saharan Africa regions, in addition to Turkey, Russia, Ukraine and Kazakhstan.
The cluster contributes significantly to Citi's overall business growth as it accounts for “inside of 10 per cent” of Citi’s net profit from its global operations, he said. The lender reported a net profit of $18 billion (Dh66.1bn) last year, a 14 per cent year-on-year growth.
“I remain confident about the future as our business [in the region], which is immensely strong. We are in the budgeting process right now and we are going to budget for growth [next year],” Mr Rehman noted.
The hydrocarbon-dependent Middle Eastern economies have faced headwinds in the wake of volatility in oil prices against a gloomy backdrop of softening of global growth as the US-China trade war continues to weigh heavy.
Most Arabian Gulf states, including the UAE and Saudi Arabia which are pegged to the US dollar, have lowered key interest rates after the US Federal Reserve cut its policy rates last month for the first time since the 2008 financial crisis. The Fed is expected to further reduce benchmark rates and central banks in the region are likely to mimic its moves.
Like other lenders, a drop in interest rates will impact Citi, but the bank has a diverse business model in the region and generates a large amount of revenue from its investment banking and wealth management businesses, which helps to offset any drop in revenue elsewhere. Governments and corporates are likely to tap debt markets are the cost of borrowing declines, and this means more income for Citi and its peers.
“Fee-based income is still a significant part of our revenues in the region. I haven’t seen any impact on my business this year,” he said. “It is not necessary that a bank’s business is linked to the economic growth rates [and] we typically do much better than the economic growth rate, given our business model,” he explains.
The bank has invested heavily in building its investment banking capability in the region, to capitalise on opportunities arising out of Saudi Arabia’s economic transformation. The kingdom, which is the largest economy in the Arab world, is diversifying and wants to reduce its reliance on oil. It opened its stock market to foreign investors and tapped debt capital markets to reduce the burden on state finances from lower oil prices.
Privatisation of some state-owned entities, including the world’s largest oil producing company, Saudi Aramco, is also part of Riyadh’s economic overhaul efforts. A rise in merger and acquisition deals has also driven Citi’s investment banking business in the kingdom where it plans to increase its headcount to 20 from 14 by the end of next year.
“This year investment banking has done exceptionally well ... M&A activity in the region ... has been unprecedentedly high and Citi has been part of most of the transactions,” Mr Rehman said
Citi was the fourth-highest investment banking fee earner in the region in the first half of this year, with a 5.1 per cent share of the market, according to financial data firm Refinitiv. This placed it behind Bank of America Merrill Lynch (5.7 per cent share), JP Morgan (12.1 per cent) and HSBC (13 per cent).
Citi, which exited Saudi Arabia in 2004 and re-entered the market in 2017 through a Capital Market Authority licence, that allows the bank to pursue investment banking and markets operations, is keen to get back into consumer lending in the kingdom.
“I think from an investment banking [and] markets business we are reasonably well kitted-out. As far as domestic commercial banking is concerned …. it is our goal and ambition to over time achieve that capability,” Mr Rehman said.
“It is absolutely our desire to do that [get the commercial banking licence]. We have a plan, we have a schedule and we are working on them and hopefully, step by step, we will get to the results,” he said.
Within the UAE, the second biggest Arab economy, Mr Rehman sees revenues and profit of Citi’s consumer banking business growing by high single digits.
“We have the largest card spending among the foreign banks and we rank among the top banks [in card spending] in the entire country,” he said.
Killing of Qassem Suleimani
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
25%20Days%20to%20Aden
%3Cp%3EAuthor%3A%20Michael%20Knights%3C%2Fp%3E%0A%3Cp%3EPages%3A%20256%3C%2Fp%3E%0A%3Cp%3EAvailable%3A%20January%2026%3C%2Fp%3E%0A
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Important questions to consider
1. Where on the plane does my pet travel?
There are different types of travel available for pets:
- Manifest cargo
- Excess luggage in the hold
- Excess luggage in the cabin
Each option is safe. The feasibility of each option is based on the size and breed of your pet, the airline they are traveling on and country they are travelling to.
2. What is the difference between my pet traveling as manifest cargo or as excess luggage?
If traveling as manifest cargo, your pet is traveling in the front hold of the plane and can travel with or without you being on the same plane. The cost of your pets travel is based on volumetric weight, in other words, the size of their travel crate.
If traveling as excess luggage, your pet will be in the rear hold of the plane and must be traveling under the ticket of a human passenger. The cost of your pets travel is based on the actual (combined) weight of your pet in their crate.
3. What happens when my pet arrives in the country they are traveling to?
As soon as the flight arrives, your pet will be taken from the plane straight to the airport terminal.
If your pet is traveling as excess luggage, they will taken to the oversized luggage area in the arrival hall. Once you clear passport control, you will be able to collect them at the same time as your normal luggage. As you exit the airport via the ‘something to declare’ customs channel you will be asked to present your pets travel paperwork to the customs official and / or the vet on duty.
If your pet is traveling as manifest cargo, they will be taken to the Animal Reception Centre. There, their documentation will be reviewed by the staff of the ARC to ensure all is in order. At the same time, relevant customs formalities will be completed by staff based at the arriving airport.
4. How long does the travel paperwork and other travel preparations take?
This depends entirely on the location that your pet is traveling to. Your pet relocation compnay will provide you with an accurate timeline of how long the relevant preparations will take and at what point in the process the various steps must be taken.
In some cases they can get your pet ‘travel ready’ in a few days. In others it can be up to six months or more.
5. What vaccinations does my pet need to travel?
Regardless of where your pet is traveling, they will need certain vaccinations. The exact vaccinations they need are entirely dependent on the location they are traveling to. The one vaccination that is mandatory for every country your pet may travel to is a rabies vaccination.
Other vaccinations may also be necessary. These will be advised to you as relevant. In every situation, it is essential to keep your vaccinations current and to not miss a due date, even by one day. To do so could severely hinder your pets travel plans.
Source: Pawsome Pets UAE
UAE Premiership
Results
Dubai Exiles 24-28 Jebel Ali Dragons
Abu Dhabi Harlequins 43-27 Dubai Hurricanes
Fixture
Friday, March 29, Abu Dhabi Harlequins v Jebel Ali Dragons, The Sevens, Dubai
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
Company profile
Company: Eighty6
Date started: October 2021
Founders: Abdul Kader Saadi and Anwar Nusseibeh
Based: Dubai, UAE
Sector: Hospitality
Size: 25 employees
Funding stage: Pre-series A
Investment: $1 million
Investors: Seed funding, angel investors
SUCCESSION%20SEASON%204%20EPISODE%201
%3Cp%3E%3Cstrong%3ECreated%20by%3A%20%3C%2Fstrong%3EJesse%20Armstrong%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Brian%20Cox%2C%20Jeremy%20Strong%2C%20Kieran%20Culkin%2C%20Sarah%20Snook%2C%20Nicholas%20Braun%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
UAE currency: the story behind the money in your pockets
RESULTS
%3Cp%3E5pm%3A%20Wathba%20Stallions%20Cup%20%E2%80%93%20Handicap%20(PA)%20Dh70%2C000%20(Turf)%202%2C200m%3Cbr%3EWinner%3A%20RB%20Sarab%2C%20Allaia%20Tiar%20(jockey)%2C%20Khalifa%20Al%20Neyadi%20(trainer)%3C%2Fp%3E%0A%3Cp%3E5.30pm%3A%20Mamsha%20Alkhair%20%E2%80%93%20Handicap%20(PA)%20Dh80%2C000%20(T)%201%2C600m%3Cbr%3EWinner%3A%20Mutaqadim%2C%20Ray%20Dawson%2C%20Ibrahim%20Al%20Hadhrami%3C%2Fp%3E%0A%3Cp%3E6pm%3A%20Emirates%20Fillies%20Classic%20%E2%80%93%20Prestige%20(PA)%20Dh100%2C000%20(T)%201%2C600m%3Cbr%3EWinner%3A%20Almotajalliah%2C%20Ray%20Dawson%2C%20Ibrahim%20Al%20Hadhrami%3C%2Fp%3E%0A%3Cp%3E6.30pm%3A%20Emirates%20Colts%20Classic%20%E2%80%93%20Prestige%20(PA)%20Dh100%2C000%20(T)%201%2C600m%3Cbr%3EWinner%3A%20Fadwaan%2C%20Antonio%20Fresu%2C%20Ahmed%20Al%20Mehairbi%3C%2Fp%3E%0A%3Cp%3E7pm%3A%20The%20President%E2%80%99s%20Cup%20%E2%80%93%20Group%201%20(PA)%20Dh2%2C500%2C000%20(T)%202%2C200m%3Cbr%3EWinner%3A%20Mujeeb%2C%20Richard%20Mullen%2C%20Salem%20Al%20Ketbi%3C%2Fp%3E%0A%3Cp%3E7.30pm%3A%20The%20President%E2%80%99s%20Cup%20%E2%80%93%20Listed%20(TB)%20Dh380%2C000%20(T)%201%2C400m%3Cbr%3EWinner%3A%20Western%20Writer%2C%20Richard%20Mullen%2C%20Bhupat%20Seemar%3C%2Fp%3E%0A
Mohammed bin Zayed Majlis