Despite its reputation for extreme heat and reckless driving on its expansive highways, the RAKBank chief executive Peter England thinks Dubai may one day rival Amsterdam as a cycling city.
"Over time, I think more can be done to turn UAE cities into cycling cities," says Mr England, a 53-year-old native of Australia. "The weather should not be seen as a deterrent. It's three to four months of the year where it's a bit of a challenge, but other than that it's superb. One plus point is that Dubai is flat like Amsterdam."
So enamoured with cycling has Mr England become since arriving in the UAE about a year and a half ago that he is joining a number of other banks and companies, including The National, in promoting the healthly living activity.
On March 6, RAKBank will hold 70-kilometre and 22km bike races in Ras Al Khaimah. For the corporate race, teams must include a top manager and a female and all must complete the course in business attire.
And it is not just Mr England who is a fan of cycling. According to a survey commissioned by the bank and carried out by the polling company YouGov, cycling is the No 1 pastime in the UAE, with more than a quarter of the 1,000 respondents favouring pedalling over other hobbies.
But it is not all fun and games, as the winnings of the race will end up in the hands of a charity.
The idea itself was conceived when Mr England noticed while cycling that many rich people were doing it. It is those affluent residents in the UAE who Mr England would like as clients.
“In the old days, you used to ride a bike because you couldn’t afford a car,” he says. “Nowadays people tend to do both. They have nice cars, four-wheel drives and a very nice bicycle. It attracts people who are good clients for our wealth management proposition. It struck us that we could put these two things together.”
Competition among banks in the UAE for individual customers has been intensifying in the past couple of years as low interest rates have made lenders more aggressive in seeking out retail clients, where the profit margins are much higher because of the elevated risk they pose when compared to corporations. That has meant that lenders are making more of an effort to raise their profiles through sports events and sponsorships to lure those customers.
Banks are also expanding other aspects of their business, including wealth management and trade finance, to bolster their bottom lines.
mkassem@thenational.ae
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