Increasing in Stature

Samira Zakour Managing Director & Head of Global Head of Private Banking & Key Client Group, at FAB explains what is making the region become one of the leading centres of wealth management, and that while generational changes are reshaping methods and the way business is done, there are some things in this market that will not change

What is driving the growth of wealth management and investment services in the GCC and the Middle East?

MENA is quickly becoming one of the most important destinations for wealth management clients. In fact, a recent report by Henley & Partners indicated that the UAE was expected to attract about 4,000 millionaires this year, becoming the main destination for the wealthy and the ultra-wealthy. It is understandable too. The UAE has stood out first for its management of the pandemic, which was one of the best in the world, and its safety and stability. Global wealthy

clients are increasingly realizing that the UAE is more predictable and reliable than many of the more traditional wealth management destinations. On top of that, the UAE is at the forefront when it comes to financial innovation, but our central bank has managed to keep improving the oversight and regulation of customer rights, so that such innovation is not coming to the detriment of governance.

How can private banking, wealth management and investment be successfully transitioned to a platform-based service and retain its bespoke appeal?

The platform-based approach simply makes it easier for clients to sift through the offerings and understand the roster of options. It does not, and will never, replace the high-touch approach of private banking. Wealth management is all about relationships. Clients may get to know what is available more easily with a platform-based approach, but they continue to trust their bank and their relationship managers to steer them through those products. This can never be replaced by a platform or even by robo-advisory. Our clients are usually busy people who know they can trust us to ensure their ‘nest egg’ is safe and growing. This will not change.

How are the values of upcoming generations of high-net-worth clients in the region influencing the ESG policies of your institution?

There definitely is more awareness of environmental, social and governance factors among younger wealthy clients. However, ESG is part of the DNA of FAB. We were the first bank (then as NBAD) to issue a green bond in the entire Middle East and Africa region. We were also trailblazers in terms of green loans, with a ground breaking deal with Etihad Airways. Furthermore, we were among the first banks to have a comprehensive ESG report in the region. That said, even our clients from slightly earlier generations have started to request more ESG information, and we have seen increased interest in our ESG-focused investment offerings. This should not be a surprise because many of our clients have been following Islamic principles to investment for their entire lives and many of the tenets of ESG stem from ethical investing, of which Islamic investing can be seen as one expression.

Samira Zakour, Managing Director & Head of Global Head of Private Banking & Key Client Group, FAB

In terms of asset classes, how will the regional investment landscape look for high-net-worth customers in five years from now?

The large influx of foreign clients to the region (many of whom came here during the pandemic and found it so nice that they just never left!) has changed the focus of investments slightly. Foreign clients have shown, naturally, more interest for global investments than the regional clients, which understand and are more comfortable with the local markets and so who tend to have slightly higher allocations to this market. That said, the GCC markets are going through positive secular changes that are making them even more attractive to global investors. For example, higher foreign ownership limits and single-stock futures for some securities in the Abu Dhabi Securities Market has massively increased the liquidity of that market and global institutional investors have recently increased their allocation to the GCC.

WE WERE THE FIRST BANK (THEN AS NBAD) TO ISSUE A GREEN BOND IN THE ENTIRE MIDDLE EAST AND AFRICA REGION

What are the current challenges in recruiting wealth and relationship managers and how are these roles changing?

We are quite fortunate to be the safest bank in the region, a perception that many of our employees have as well. Furthermore, our global footprint (on the Private Banking side we have branches

or full-blown subsidiaries in Switzerland, Singapore, the UK, Saudi Arabia, the US and France, just to mention a few), allows employees and prospective hires to see the possibility of a global career, something that can be quite attractive, particularly for younger talent. Naturally, we are not immune to some of the issues facing other banks, such as higher pay and benefits requirements from stakeholders – but we have always been competitive on both counts.

IT DOES NOT, AND WILL NEVER, REPLACE THE HIGHTOUCH APPROACH OF PRIVATE BANKING