Describe what it means to you to be Head of Islamic Banking for Abu Dhabi Commercial Bank (ADCB)?
It means a lot to me to take such a challenging yet exciting role. Heading the Islamic business of ADCB compliments the spectrum the bank offers in terms of innovative products and services. With ADCB’s proven track record and legacy that consistently endeavours to meet and exceed customers’ expectations, the benchmark was set high for Islamic banking to meet similar standards.
On your Twitter profile, you state ‘Lead by inspiring and don’t manage by manipulating’. What do you mean by this?
Leadership in my opinion is about the inspiration of oneself and of others: it’s how you develop your people and how you invest in them, leading by example and ensuring your people enjoy what they are doing, and never forgetting to motivate and empower your employees when necessary.
How would you describe your managerial style?
I’ve always believed in an open-door policy were everyone’s voice is heard, and where issues can be raised and resolved immediately and this cannot be fulfilled without actively involving your team to creating a solid foundation for high performance and success.
To me a good manager is someone who is always on top of things, who believes in actively listening to his people and always keen to learn from others. This in return has always helped me understand the business needs in order to achieve my targets.
Compare the Middle Eastern way of doing business and the American way. Do you think the Middle East has to change their way of approaching management and business culture?
There are certainly differences in working cultures based on the region and demographics. We live in an increasingly globalised society resulting in a greater correlation between business cultures; an example of which is the sharing of international best practices from other markets. Hence, there is no harm in importing good quality practices whether from America, the West in general or the East.
Tell us more about the effects of the financial crisis on ADCB Islamic banking and how is the future looking for the bank?
ADCB Islamic banking was launched in September 2008 and is now in its fifth year. Although ADCB Islamic banking started in the aftermath of the global economic crisis, we have still achieved our target growth rate. We will continue to expand our range of services and products that comply with the basic fundamentals of Shari’a law which will lead to a growth in our assets & liabilities portfolio and to the profitability of the business. ADCB Islamic banking is considered to be a leading Islamic window in the country and this is what we aim to maintain.
Currently there seems to be a lot of demand for sukuk. Is there an interest from ADCB Islamic Banking in structuring such instruments?
According to recent reports, UAE is the second largest issuer of sukuk in the GCC in 2012 due to strong investor appetite for fundraising and liquidity. ADCB Islamic banking issued $ 500 million sukuk trust certificates in 2011 where the proceeds of the sukuk have been used to acquire an ownership interest in a portfolio comprised primarily of real-estate ijara assets, non-real estate ijara assets, salam assets and other Shari’a compliant assets. For ADCB Islamic banking, the sukuk market will always be an excellent tool to help manage liquidity and raise funds for investors. Sukuk generally offers a lower level of risk and a predictable rate of return.
How is ADCB Islamic banking assisting SME’s to grow?
We understand that SMEs are the engines for economic growth and with today’s challenges ADCB Islamic banking supports the SME sector by offering a diverse range of Shari’a-compliant solutions. We consider ourselves as the right partner for the growth of these businesses and provide customized product packages, responsive services and expert advice. In a further attempt to support the growth of the SME sector, ADCB has signed a tie-up agreement with the Khalifa Fund for Enterprise Development to provide subsidized facilities to businesses owned by UAE nationals. Such endeavours support the Abu Dhabi Economic Vision 2030 by diversifying and contributing to the capital’s economy.
Take us through a typical working day of Amr Al Menhali?
I start my day early reading the newspaper then I head to office. I check my mail and meeting schedule in order to plan my daily agenda but a typical working day starts and ends with my family; they are the best moments of the day and a great motive for me to accomplish my daily work responsibilities.
Give us your opinions on the UAE and Islamic finance? How successful has Islamic finance been in the UAE?
Islamic banking has grown rapidly in the UAE and has been playing a major role in supporting the financial growth of the country’s economy. The UAE is estimated to be the third largest global market for the Islamic banking industry, representing more than 30% of the global Islamic finance industry. Recently, His Highness Shaikh Mohamad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, officially announced Dubai as the ‘Capital of the Islamic Economy.’ This pronouncement will further strengthen the platform of the Islamic banking industry and conveys a good example of the success of Islamic finance in the UAE.
What is your opinion of the Islamic finance industry in the Middle East? What do you think needs to be done to generate more interest?
Comparing conventional banking, which has been present for more than 500 years, to the Islamic banking model, which only developed in the last 35 years, we have seen a great shift towards adopting the Shari’a-compliant model. The market share of Islamic financial institutions in the Middle East has witnessed exponential growth and has been the least affected by the financial crisis in 2008. With oil prices increasing and cash being injected into the market, I believe that the Middle East, as a whole, holds great potential for investors to buy more sukuk. This will in turn help finance large-scale projects, which will boost the regional economy. In order for this to happen we should concentrate our efforts on educating the public and increasing awareness on Islamic financial products.
How would you compare the Islamic finance market in Abu Dhabi to Dubai?
Islamic finance in the two Emirates is substantially similar. Distinction between the two Emirates is relevant to business sectors. Islamic banking globally and locally has rapidly evolved to address various business needs, whether trade finance, project finance or complex syndicate deals.
Provide us with an assessment of the Islamic retail banking services in the UAE? Has there been an increase in uptake?
In recent years, UAE banks have extensively been promoting their Islamic retail products: an example of this would be the healthy competition we have seen in offerings of credit cards and Islamic-based accounts. There is a large range of financial products available now in the UAE market. Furthermore, the increased demand for Shari’a-compliant financial services is not limited to the Muslim community. The non-Muslim community has shown interest in reflecting the extent of customer awareness. Nowadays customers choose according to what fits their needs.
Do you think product development is a concern for Islamic retail banks? What new products has ADCB developed?
Islamic banking is still relatively young, though maturing rapidly. There are still large segments of the community, which are not fully aware, if aware at all, of the Islamic banking industry and the benefits it brings. Therefore, we need to be innovative in what we sell and this requires extensive research and planning. Islamic products may be perceived by the average person as a not-so-developed form of banking, despite the fact that it has been developed in a scientific and sophisticated way to offer alternative financial solutions to conventional financial products. Among our innovative products is the Yaqeen Salam finance which is considered to be the most trusted Islamic personal finance product, structured under the unique concept of “Bai-Al Salam.” The product allows you to avail cash in a Shari’a-compliant manner. We also offer our ADCB Islamic credit which is based on the fundamental belief of social responsibility. It is the first Islamic card to be interest-free and packed with a host of exciting features & benefits. Adding to the list is the Emarati millionaire saving account which is a unique Shari’a-compliant saving account specially designed to meet the needs of Emarati’s, their spouses and their children.
What products and services does ADCB offer its clients? Which product line have you seen the greatest interest in?
From the date of our launch until now we are considered to be pioneers in our product offerings, for instance, our Yaqeen Salam finance for retail customers, which we were the first to offer globally. Our Islamic credit card carries a huge corporate social responsibility proposition from the bank for each transaction made by the customer. We also launched a number of products for SMEs and corporates for their working capital finance requirements, such as Mudaraba working capital, local bills, finance (invoice discounting), Ijara machinery and equipment finance for most of the commercial industries. We also wanted to promote a saving culture amongst UAE nationals, and we created the first Islamic saving account exclusively for UAE nationals. It offers a grand prize of AED2.7 million, as a monthly payment of AED5,000 for 15 years, to help the winner and his family pursue their ambitions. In addition to this, prizes worth AED550,000 are given away every month. The Emarati millionaire saving account and millionaire destiny saving account are among the products that continue to grow with a positive momentum.
ADCB Islamic Banking has received a number of awards including GIFA 2012 in the category of “Best Islamic Window “. Can we have a comment on this?
I’m very pleased to win the GIFA 2012 ”Best Islamic Window” award and it’s an honour to be competing among the top Islamic banks around the world specifically in the retail segment. Winning this award is an excellent milestone and will add further momentum to our plans to build an even stronger Islamic banking arm at ADCB.
Who are ADCB’s main customers?
Our customers come to the bank with us regardless of their religion or nationality. Other than customers who are seeking a pure Shari’a-compliant product, we do have many non-Muslim customers who constitute a large percentage of our customer base, who simply need a reliable partner. As mentioned earlier, we offer innovative products in an efficient and transparent manner and this makes us the banking partner of choice for our customers.
What does success mean to you?
Success means a lot more than one thing to me. It gives meaning to life and the desire to achieve my objectives. I do not restrict it to tangible matters only such as meeting or exceeding work-related goals. I embrace it as a lifestyle that affects all related areas, that is, family, work and health.
