FADI AL FAQIH – CEO, Bank of Khartoum
Mr Fadi Al Faqih is the Chief Executive Officer of Bank of Khartoum (BOK) with nearly 20 years of international and regional banking experience. In 2014, he was awarded the prestigious “Islamic Banker of The Year” by the World Islamic Banking Conference (WIBC) in recognition for his tireless dedication and immeasurable contributions to Islamic banking and finance. Mr Al Faqih first joined BOK in 2006 as the Chief Operating Officer. In 2008, he was appointed as the CEO where he spearheaded BOK’s business development, restructuring and transformation to become the leading Islamic financial services group in Sudan.
Under his leadership, BOK has enhanced and developed its services to offer a full range of products and services including corporate banking, retail banking, SME, microfinance, treasury and investment banking across multiple channels in Sudan. To date, BOK has a US$2 billion balance sheet and over 1,600 employees across the Group. Headquartered in Khartoum, BOK has the largest branch (over 100 branches/cash offices) and ATM/CDM (over 200) network in Sudan.
The bank is the first institution in Sudan to be delisted from OFAC in 2011 as well as being rated by the Islamic International Rating Agency with (AA-) long-term credit rating with a short-term credit rating consistently. BOK has won several accolades for its pioneering and leadership role including being awarded as the best bank for strategy.
Prior to BOK, Mr Al Faqih held several senior banking positions in Citibank, Egyptian Arab Land Bank, Standard Chartered Bank and ANZ Grindlays Bank. Mr Al Faqih holds a Global Executive MBA from TRIUM (LSE, NYU and HEC).
ISFIRE has global distribution and our readers are spread all over the world. Please tell us about Bank of Khartoum and its leadership role in the Islamic banking sector in Sudan.
Fadi Al Faqih: Bank of Khartoum (BOK) was first established in 1913 under the Anglo-Egyptian regime. Since then BOK has been no stranger to the influence of innovation and historical changes. Yet it has maintained its dominant presence not only as the oldest bank in the country but has grown from strength to strength to become the largest Islamic bank in Sudan, a fact that bears strong testament to its successful business model.
As the largest and leading Islamic bank in the country, BOK offers a full range of innovative financial products and services that serves the needs of corporate, retail, microfinance and investment business segments. Our leadership role in the country’s Islamic banking sector is evident by the Bank’s strong position to expand and develop its operations way beyond the current capacity.
Bank of Khartoum featured significantly in the 2015 World Islamic Banking Conference, where it launched BOK International – its branch in the Kingdom of Bahrain. It seems that Bank of Khartoum has embarked upon an extrovert policy for international expansion. Why and what is the rationale for this expansion beyond the borders of Sudan?
Fadi Al Faqih: As part of the Bank’s 2014-2016 strategy, BOK is looking into regional expansion in the GCC countries and from that vision came the idea to expand our footprint in the Kingdom of Bahrain. This is a strategic step towards solidifying our goals of further development and expansion. The aim is to capitalize on the existing growth in business and deposits to capture a wider network through the expansion of BOK and its Islamic banking model in the region. BOK also sees growth potentials in Africa and seeks to leverage on growing opportunities emerging from the continent.
Towards this end, such a move serves to increase and diversify our presence in addition to tapping into new and potential investment opportunities. Hence, the establishment of our first overseas branch in Bahrain not only illustrates our transformational expansionary and growth strategy, but it also signifies to further strengthen our ties with the GCC countries.
Bank of Khartoum also won “The Critics’ Choice Best Islamic Retail Bank 2015” at the inaugural Islamic Retail Banking Award held in Dubai in November 2015. Given this growing recognition of Bank of Khartoum internationally as an important player in the global Islamic financial services industry, what are your plans for BOK International?
Fadi Al Faqih: In addition to what was mentioned earlier on broadening BOK’s footprint in the GCC countries as well as Africa, our aim is for BOK International to become a prominent wholesale banking solutions provider in Bahrain and recognized for offering innovative Shari’a-compliant products and services. The branch will focus predominantly on trade finance, treasury, deposit generation, syndicated lending and correspondent banking, with a commitment to exceptional service quality.
How is Sudan different from other countries in Africa? Do you think that Sudan can become an agent of change in the regional Islamic financial services industry?
Fadi Al Faqih: Sudan’s most significant contribution to Islamic banking is without a doubt the richness and wealth of experience and knowledge that the country has to offer to the global Islamic finance community at large. Islamic banking in Sudan has its roots in the late 1970s. Since then, the industry has further deepened and evolved to a fully integrated system with a wide range of Islamic financial products. Today, corporates and consumers can enjoy a wide range of Shari’a-compliant products and services that serve their various economic needs but most importantly that creates a long-term positive impact on either the business bottom line or on the life of the clients themselves.
In recent years, a number of Islamic financial institutions in Sudan have been recognized for their contributions to the development of the global Islamic finance industry. I am proud that BOK has many accolades under its belt for its continued commitment to strengthen Islamic financial services industry in the region as well as globally. The Bank’s proven and outstanding reputation in microfinance at both regional and international levels as well as its role in developing innovative products has ensured its leadership position in Sudan.
The world is fast becoming orientated towards the use of social media. What role can social media play in creating awareness around Islamic economics, banking and finance?
Fadi Al Faqih: Social media is the tool of this age. It is not just a medium for social communication but has emerged as a powerful and ubiquitous medium of marketing, publicity and brand positioning in its own right. We at BOK recognize the power of social media for brand building and business generation and hence, has increased our focus and presence on social media and other web-based initiatives. In light of its growing importance to business growth, a special session on social media and how to utilize it to generate awareness, loyalty and revenue has been introduced in the upcoming International Forum on Islamic Finance.
You have sponsored a number of industry-building initiatives including the International Forum on Islamic Finance in Sudan. Is it part of your CSR and do you think that immediate commercial benefits can be drawn from such engagements?
Fadi Al Faqih: Part of the Bank’s CSR is enhancing the knowledge, awareness and outreach of Islamic banking in general and promoting Sudanese experience in the development of a comprehensive Islamic financial services industry. All of us have responsibilities and roles to play in ensuring that the resilience and robustness of the Islamic financial system remains intact, and is given its rightful deserved exposure. Bank of Khartoum, being the oldest and largest financial institution in Sudan, realizes this responsibility and takes it to heart to support such initiatives by actively promoting Sudan and Islamic banking as a viable and competitive banking system. We are proud to be the strategic partner for the International Forum on Islamic Finance. Through such partnership, we hope to highlight the tremendous opportunities that the Islamic finance industry has to offer to the growing economies of the African continent and subsequently, bridge Africa with key Islamic finance markets especially in the Middle East.
On a lighter note, where do you feel most comfortable and what makes you happy?
Fadi Al Faqih: Values and equality, fairness, seeing people happy and being in the good company of good people, family and friends are what makes me happiest!
Would you disagree to the view held by many Muslims that Islamic banking and finance has failed to achieve its objectives in terms of poverty alleviation and contribution to economic development?
What can be done to make Islamic banking and finance more sensitive to the needs of Muslim communities around the world, and especially in Sudan?
Fadi Al Faqih: Islamic finance, if properly managed, is undeniably a great model because it caters for financial inclusion, addresses the needs of the people and embodies the values and spirit of fairness and equality. The key here is finding solutions that address the contemporary problems inherent in a debt-based economy and develop Shari’a-compliant products or structures that are designed to meet the varying needs of clients and investors.
What are your thoughts on the current developments in Islamic banking and finance, both in Sudan and globally? Why has Islamic banking and finance in Sudan remained marginalized in the global Islamic financial services industry?
Fadi Al Faqih: The word marginalized is rather inaccurate to describe the state of Islamic banking and finance in Sudan. Sudan is not only a pioneer in Islamic banking, but is regarded to have one of the best Islamic banking models. This is evidence by the diversity of Shari’a-compliant products offered by Islamic players, an environment that is fully Shari’a-compliant and the many great accomplishments and progress made within the Islamic finance space in the country.
Despite the tremendous growth opportunities for Islamic finance in Sudan specifically and Africa generally, the industry still faces institutional and operational challenges including regulatory inconsistency, lack of awareness and financial literacy by consumers, shortage of qualified talent with the requisite knowledge and a conducive environment to support the growth of Islamic finance.
What are future plans of Bank of Khartoum? Where do you see the bank in the next 5 years?
Fadi Al Faqih: Continued regional expansion, the introduction of more microfinance programmes and to ultimately become one of the top 3 banks in East Africa.
Please share with the readers a typical day of Fadi Al Faqih, how it starts and what are the “must do” on your daily to-do list.
Fadi Al Faqih: Think of new things that can be done or explore new ways of doing things; attending business meetings and catching up with the news, my friends and my families are the order of the day. Spirituality and social media also form an integral part of my everyday routine.
Family or Country? Which one should come first?
Fadi Al Faqih: With family one builds values and ethics. Family forms the foundation of a nation’s social fabric and hence, becomes the cornerstone of a society. Experience in the family forms the foundation for how every person sees and interacts with the rest of the world. As such strengthening families is an essential element of building healthy societies and prosperous nations.
