NCB Private Banking hosts top level debate chaired by Euromoney

An initiative of NCB Private Banking in partnership with the leading financial magazine Euromoney, the debate was hosted at NCB's Regional Office in Riyadh and is the first event of its kind to be privately organized by a bank in the region.

The objective of the discussions was to provide in-depth knowledge for industry players, such as private banks, family businesses, tax advisory firms and other consultancy companies, on the products and services sought by high net worth families and individuals, in addition to providing a platform for family businesses and service providers to exchange views and engage in objective dialogue about the present challenges facing family wealth management.

In the outset of the event's agenda was a macro-view of the private banking industry in the region and an overview of the market and growth prospects of the Middle East in comparison to other regions. In this context, Al-Sharif Khalid Al-Ghalib, Senior Executive Vice President and Sector Head of Individual Banking at NCB; said:

"The banking industry in the GCC is stable due to the very conservative approach followed by the banks in this region which contributed in its turn to boosting market growth rates, especially that clients in these markets tend to favour Shariah-compliant products and solutions."

Commenting on this, NCB Capital Chief Economist Dr. Jarmo Kotilaine said: "While it is wise to be cautious and expect the unexpected, we can be optimistic that the situation in the GCC is stabilizing; and since the region has a lot of savings in reserve it is in a strong position to bounce back quickly."

The debate then moved on to the issue of rivalry among large institutions, boutique banks and family businesses. On this subject Sh. Abdulaziz Al-Subiea, representing Al- Subiea Family Office, maintained that traditional and conservative banks have proved their competence and showed strong performance in the midst of the financial crisis. He stated that private banking clients and investors continue to need the services of both global and regional financial institutions.

Pertaining to the effects of the investment banking fallout and who benefits of the flow of capital to and from the region following the economic crisis, Hazim Zagzoog, Executive Vice President and Division Head of NCB Private Banking, said that the bank has not witnessed substantial movement either way and that the capital inflow was reasonably normal. He added that nowadays clients tend to rather keep their money and invest in the region.

Regarding the future outlook of the financial industry in the region, Tim Taylor, Head of Middle East Private Banking at Emirates NBD, anticipated that the GCC markets will regain investors confidence by 2010.

whereas Sari Anabtawi, Head of Abraaj Capital Saudi Arabia, said: "This region is experiencing very high demand in all sectors and we are optimistic that the GCC region will be the first in the world to completely recover from the global crisis." This sentiment was echoed by Patrick Thiriet, BNP Paribas Deputy CEO of Wealth Management GCC, who said "The region is cash rich and offers fantastic investment opportunities for long term wealth creation."

Overall, there was an atmosphere of consensus featuring an optimistic view which was best wrapped up by NCB Private Banking Head, Hazim Zagzoog, who concluded by saying "The local banks have what it takes to win in the future because of their human resources, customer bases, products and innovation. For example, at NCB Private Banking, and in coordination with our colleagues at NCB Capital, we have introduced our groundbreaking Wealth Management model to better serve our clients and optimize the huge potential embedded in largely untapped areas and segments waiting to be opened up in the time that GCC prepares to move into a new era of sustained growth."