CashAndTradeMagazine May June Issue9

7/31/2019 CashAndTradeMagazine May June Issue9

1/23

For Cash and Trade professionals in the Middle EastISSUE 9MAY / JUNE 2011

Partnerships could helpbanks in emerging markets

Saudi corporates prosper

Banks launch new

cash management products

Letters o Credit stillat the core o trade

Global trade now

on the rebound

Unrest highlights need

or greater risk assessment

Turkey seeks closer

trade ties with MENA


2/23

Cash and rade MaY / JU

C

Political events in the MENA region have brought into othe undamental importance o sovereign risk in internabusiness, leading to an increased awareness o integrat

and trade solutions

Compliance - and especially what may be contained in thupcoming Basel III accord - is a chie cause or concern trade and trade nance in particular

Historically, Kuwaiti bankers are among the best. Whilst source o pride, they are aware that today Kuwait must swhat has become a highly competitive business arena

5 Letter rom the editorial director

6 News Round

12 Risk and trade fnance

18 Supply chain fnance techniques

23 Islamic fnance

31 Post crisis banking

35 Global trade survey

38 Cash management in Kuwait

12

31

38

UK

Morocco

Mexico

Malaysia

Japan

Jamaica

Italy

India

HongKong

German

y

SaudiArab

Russia

Qatar

Poland

Peru

UAE DEDICATED

TO GOING

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www.dhl.com/commitment

Hani Al Maskatieitoil dicto & [email protected]

Tony Busheito

Rob Cuthbertsonat eito

Sheila RocheCommcil [email protected]

Cotibuto:Mki Vkii, Mutk Pk,alx r. Mlkt,Pul Mlly, Jm Gvi, I Lwi,Coli Mgi, Liz slck

CMM: all mtil i tictly copyigt ll igt v. no pt o tipublictio my b pouc i wol o i pt witout witt pmiio o tcopyigt ol. Opiio xp i Cash & Trade ot cily to od akb al Klj Pitig & Publiig d akb al Klj Pitig &Publiig o ot ccpt poibility o vtiig cott.

Cash Management Matters

Uit KigomC Mgmt MttP. O. Box 38215Loo nW3 6WaU.K

www.cmgmtmtt.com

C & i pit o bl oC Mgmt Mtt (CMM) byd akb al Klj Pitig &Publiig

P. O. Box 5300

Kigom o Bil: (973) 17628487 / 17620111,Fx: (973) 17624312

all copoc qui

C Mgmt MttP. O. Box 38215Loo nW3 6WaU.K


3/23


W

d r,

agit t o, t pick up co my gioi 2010, ccoig to t Ittiol Cmb oCommc (ICC) Fic Globl suvy2011. howv, ig-picig mt tt t imy low-icom couti t ill c i culticcig obl t c.

Ou ticl o t ubjct i ti iu quotPcl Lmy, icto-gl o t Wol Ogitio, yig, Wt i ow i mo tgt u o ouc, ocuig o t poocouti mll--mium-iz tpiou t wol. Ty oul ot b pyig t igpic o t pi -gultio o t globlc iuty.

I ot icuio o t iu i ti itio,alx Mlkt poit out jut t c mg om t till-l coomic cii witgt pol, t impotc o ik mt mitigtio v b ctivly igligt by tliti o ut witi t Mena gio.

h wit, ci wll buil, om mll--mium tpi tolg copot ogot o tim tt ctiv ikmt mitigtio co lmt o t

vlu popoitio o ittiol t c.

I t cotxt o o-cll titiol tc itumt, t txtbook itictio btwocumty cit (bt uit to tctioivolvig w o upov tig ltioip /o ig ik mkt) ocumty collctio(tut ltioip, tbl mkt) w lot ly ilvt i my pt o t wol.

Wil ti my v b l t c i t

Mil et, it mi tu tt ti t w wilyobv i t two o t y bo t uptioo t globl cii, t lt i pt outcom om om lg til kig to couct to l xpiv op ccout tm.

Ti uotut ig o qut ikmt ik mgmt w vit itctio ivolvig mkt t t woul v

otwi b coi ltivly iky; imilly,impot xpot tbliig w tigltioip v i uc ig ik mktqutly g to couct bui o tmtt, ctivly, ig t liti o ik iittiol commc.

ectivly, ik lwy b lity i tcouct o co-bo bui lwy will b.

I tm o tt lt poit, ti i wy Ltt oCit mkig combck. Ou Cov stoymk it cl tt t cut politicl coomicclimt i t Mil et tgt t o tm ty ow look t to cotiu plyig cucil ol i omtic, giol ittioltctio pit t globl movmt towop ccout tig.

altoug bout 80 p ct o globl t i owop ccout-b, ppoximtly 70-80 p cto ll Mil et t volum till ly o LC,ccoig to ttitic publi i 2010 by t Wol Ogitio. a ult, LC v mi co t vic o locl bk vy luctiv-ig bui.

howv, pit ti, t i tog bli ttlocl bk oul ot y wy om t poviioo mo-y tuctu t c olutio,uc upply ci c, wic coul lp loclcompi uc t tctio cot tp itomo cot-ctiv cig.

It i lwy plt to o upbt ot ,to tu to t ICC pot mtio t t tt,mot pot to t uvy commiioby t WO expt Goup o Fic totck t vlopmt i t iuty g tt bui o t wol b igictly

impovig ic t l qut o 2009. O topo tt, mkt i vl vc coomi quickly tuig to oml tig coitio,wic i goo o vyboy.

Letter rom the editorial director

hi al M

eitoil

Publii.lmk

ct

For Cash and Trade proessionals in the Middle East

www.cashandtrademagazine.com

Cash & rade i t OnLY mgzi o t ic c t fowcto i t ab wol. higly piz copi civ o gul biby C-suit lvl xcutiv, Fic dicto C & Flow ciiomk i t Mil et gio.Cash & rade povi i-pt covg o ll t c mgmt

t c iu cig t cil, tcology copot ctotoy. It combi w, pcil pot, big m itviw xcluiviuty t uiquly tilo to t iu cig t Mil et.It i Cash & rade mgzi miio to iom, uct gg tgio c commuity wit lvt xpt commty tougt povokigitoil. Cash & rade liv t mkt itlligc tt io xcutiv quii o to l ti compi ty bt o mkt vlopmt.

Contact:

Sheila Roche

Commercial [email protected]


4/23

log-tm oppotuitio t Mil et not aicpit t ot-tm cllgig c bcu o ut,ccoig to t IMF. It bliv tt gio will v t c c to ly outio o ocilly icluiv mo ymic gowt mol.

But, i t tm, coutic multipl pu tmmigom ig commoity pic iuptio to coomic ctivity, tMF i i it apil 2011 rgiolcoomic Outlook o t Milt, not aic, agit kit (MenaP).

I t log u, t upiigoul giv boot to t coomi t gio by ttig mocluiv gowt g, impovigovc, poviig gt

mo qul oppotuity o it youg gowig popultio.howv, t -tm outlook

cllgig, t i pig to u mploymt

mpov ocil ty t, Mooam, icto o t IMF Mil

t Ctl ai dptmt,i t t luc coc o tpot i dubi.

immit cllgcig oil impotig couti

i t Mil et i to mitiocil coio mcocoomictbility i t c o multiplpu, .

pot pojct ovll gowti t MenaP gio t 3 .9 p ct.But witi tt pictu, t coomio t oil-xpotig couti -algi, Bi, I, Iq, Kuwit,Om, Qt, sui abi, su,t Uit ab emit Ym- xpct to x p by 4.9 pct (pojctio xclu Liby),owig lgly to ig oil pic oil pouctio.

combi xtl cutccout blc o giol oilxpot i xpct to mo toubl to $380b i 2011 (xcluigLiby). Ovll, t coomi t to xp, wit ovll l GdP

(xcluig Liby) pojct to gow by4.9 p ct i 2011.Wil, o t goup wol,

o-oil GdP gowt i pojct tomi lt t 3.5 p ct. I t GCC,it i tt ic pig willult i ic i o-oil GdPgowt to 5.3 p ct i 2011, om 4.2p ct i 2010.

dpit t ig pig,toug, icl poitio will impov,wit ig oil vu mo

t ottig itiol publicxpitu. notwittigti ovll poitiv outlook, tgio oil xpot cotiu to ccllgig tuctul iu, uc t o gt iviictioo ti coomi, job ctio oti popultio, ut icilvlopmt to uppot coomicgowt impovmt i tmgmt o public ouc,i t pot.

It tt oil impot i t gio will c iicu lt coomicy ty mg bot itl xtl pu. tiotioi t tm o t ultig omig oo ul pic i xpctto ilt ti impot bill by bout$15b, o ly t p ct o GdPo vg, y t IMF pot. iwill, i tu, tlt ito itig iltio o woig iclblc, pig o t xtt oubii.

Fo my oil impot, politicltumoil i xpct to wig otouim ivtmt, wic,togt wit ig uig cot pu o ig pigco t gio, will toicl pu. a pu omcocoomic icil tbility- i ot quickly - coulimp t puuit o w ocillyicluiv gowt g mp

job c tio.o ti , govmt tt

c wit limit icl pc will to coi ptilly ottigom o t itiol pig i

pioity toug c ut lw.a wol, t pot ot ttt gio my tgt: ymic youg popultio, vttul ouc, lg gioltig ub, vtgougogpic poitio cc to kymkt. Wil t mot will b cllgig ivitblymk by tbck, t i owmomtum o cg to bu il upo,am coclu.

T Mg scu Mgig svicpovi by Biti lcommuictio(B) i ow vilbl to cilititutio i t Mil et. Tvic llow t cil commuityto xcg mg culy, libly i o-puibl mov B pivt twok titt o ll o it bui ctiviti.T vic i ig to mt tcuity quimt o t giobk, clig ou cuitipoitoi wll copottu.

T vic c lp cut cotby icig t utomtio omg pocig, ucigmgig ilu t mulmiittiv xp o coctigtm. By uig tt mg icu, tmp- liv i o-puibl m, u cv coc tt mg t

civ mi ucg cotil.

B Mg scu Mgigsvic i i to b ulik my otmgig vic. It co tt cmg b t civ, iom bot pti tt it b liv coctly. B-uppliw o ofw gtwy t botig civig u ttmg cypt, kpt cu ituio-.

Wl el Kbby, mgigicto, B Mil et notaic, i, T o cu,tmp-poo o-puiblmgig btw pti i ciltctio cotiu to gow. BMg scu Mgig svicbl ogitio to uc tiilu t, uc t cot ococtig to ilu, icvic lvl to ti cutom.

It i igl mgig tool tllow cutom to commuwit vyo co ti bucommuity. W togly bliti w vic gt vB riz Commuity.

B povi cutomimg cu mgig o iiviul ogitio icil cto ic 1996. ey t vic liv mctivly tig ubillio o pou, culy, i o-puibl mo mg lot.

Cash and rade MaY / JUCash and rade MaY / JUne

News Round

Securer messaging orMENA nancial services

Future looks goodor MENA, says IMF

wo w tuy vic liptm ppoitmt v bouc by BnY Mllo.

su skitt ow l globlpouct mgmt ttgicvlopmt, al Vcoyl-Kig

w m o globl l ltioip mgmt. Bot wil lpot ictly to J. dvi Cuikk,ci x cutiv o c o BnY Mllouy svic.

Fomly o bui ttgy,vlopmt ivtmt o BnYMllo Ficil Mkt uysvic (FMs) ogitio, skittplc al Bi, wo um utili ti y ci miittiv oico BnY Mllo Copot ut bui.

Vcoyl-Kig mov ito i wol om i cut poitio o BnY Mllo tuy vic oeMea. hi plcmt ot ytb ouc, w skittFMs poibiliti will b umby J Wy, ci mii ttivo c o FM s.

T ppoitmt ct outtgic mpi o itgtig tuyvic iovtio ito clit olutio

o tuly globl bi, i Kvic cim ci xcutivo BnY Mllo Ficil Mkuy svic ogitio.

su xpic mgiiovtio pojct t t goupi pct complmt to alxpic mgig tuy livy i globl mkt pc outtig itio to ouvic lip tm.

New chiesat BNY Mellon

Let: Susan

Skerritt,

Right: Alan

Verschoyle-

King

Wael El Kabbany, managing director,

BT Middle East and North Arica


5/23

stog pomc by tptocmicl cto bcu o igglobl pic boot t combiicom o lit compi i suiabi by ly 23 p ct i t tqut o 2011, ccoig to suiivtmt m.

dpit t p ll i tpoit o om im, t combiig o t mo t 120compi tig ti i sui abi wul tockxcg w lo up by 13 p ctbov t lt qut o 2010.

riy-b Jw Ivtmtcib t it qut o 2011 toug pio o muc o t pivtcto, wic w till tuggligto cov om t 2008 globlowtu v bt ultpoblm tt it two mily buii t Gul Kigom.

I totl, lit compy ticom w 23 p ct up o tit qut o 2010 13 p ctbov t il qut o lt y.Ptocmicl w by t bt

pomig ctohowv, ti wiv by ig pic gllygt ittiol l i otlct locl o giol coitio,i t tuy.

excluig ptocmicl, totlig w up by jut 3.7 p ct iy-o-y tm w ow by2.3 p ct comp to t pviouqut, t it qutly cliic t il qut o 2009, tpot ow.

Qutly ig o tptocmicl cto wol,

o sui abi Bic Iuti Co.(sbic), t lgt compy, w t ll-tim ig owig to jump ipouct pic.

tuy ow mot otcto w impct gtivlyby t giol ut igom ix cto w ow i boty-o-y qut-o-quttm. amog to t it wcompi xpo to t utit by owig muctuigciliti i ct couti, o

by big mjo xpot to tcouti, pticully egypt

svl m i t gicul oo, builig cotuiutil ivtmt cto otll i vu omty w ot ticiptig ct ot-tm.

soig w mtil piccit by my compi o o lvt optig wic t ito pot, i t

Globl pic o mycommoiti v ug

uc copp, it ll-tim uig t t qut. higo mtl ptocmicl quz t ig o comt iutil ivtmt cotuctio cto.

It i t two lgt ioo poco pot ttpckgig cot it ig ty w lo ct by tcot o impot o, wicct t ug i globl ooto ll-tim ig i t t

News Round

Cash and rade MaY / JUCash and rade MaY / JUne

Saudi corporates blossom

ads scuiti, t lig abu dbi-b bokg t vic povi, w m t Fttnwcom t t Mil et Fox aw 2011. icogi t igiic t volum clit b tt tcompy built up i t ot tim ic it tt-up.

Luc by goup o pivt ivto wit iitilcpitl o $400m, ads scuiti o compivt o vic tool ig to lp ititutiol,poiol ig-t-wot mkt pticipt twit ig icicy, p implicity.

I mov tt wiit ol multiltlvlopmt bk,t ab PtolumIvtmt Copotio(aPICOrP) igt accio agmtto t IttiolFic Copotio(IFC) Mt Co-optio agmt(MCa). It i t itab multiltlvlopmt bk too ti.

IFC MtCooptio agmt

pomot iccollbotio witittiol icilititutio to lpti tp ttl tk wco-icig pojctwit IFC i vlopigcouti.

aPICOrP owb bl to ptwit IFC, mmb ot Wol Bk Goup,to co-c vlopigcouty gy pojcti wic ab coutiv m ivtmt.

Bk o Biut t poit o t it qut o 2011 oby 1.38 p ct to $20m comp to t it quto 2010, ltoug t cutom poit jump by26.86 p ct 36.11 p ct pctivly.

rog dg, ci icil oic o Bk oBiut, i t mkbl gowt o t uig tpio w ttibut to itl xpio tcquiitio o t autli subiiy Liki Bk(autli) Lt. tt w complt i Mc 2011.

Backing orenergy projects

Boost or Bank o Beirut

Fastest orexnewcomer accolade

Ilmic Copotioo t Iuc oIvtmt & expotCit (ICIeC), mmb o t Ilmicdvlopmt Bk(IdB) Goup, taic Iucagcy (aI), vig Mmoumo Utig(MOU) tt im topovi gt co-optio to povi-iuc uppoto t tctio pojct tt bit

xpot ivtocouctig buii commo mmbcouti i ub-s aic.

MOU w igo bl o ICIeC by dabl rm el-yb, CeO o ICIeC Gog Otio, CeO oaI, t aI quti niobi.

U t tmo t utig,ICIeC aI will-iu c oto t tctio pojct uppotigti pctiv mmbcouti. y will loo politicl ik t cit iucto c bui ivtmt low.

Gog Otio ot, vt i tMil et notaic v owow quickly couti

t ltivly tblc bcom ig ik.aI wlcom tiptip wit ICIeC,wic will tgtiuc potctioo aic buily tig witab couti wll to wo my bkig oppotuiti itt gio.

More trade support


6/23

utu o t copotc w icu w tlco Goup l it co ul & Copot Fic Foum

o t gio CeO CFO tdubi atlti Plm i apil.

Lo nom Lmot, om UKCcllo o t excqu, w kyot pk. Ot pkclu Fbio scccivilli, Omvtmt Fu ci coomit,

dil scm, dutcBk mgig icto o t ic o Wt euop Mena.

Lo Lmot pok o Cixtiv pptit o globl tulouc look t t poblmti po o ot couti.hi ot ocu w t ik opotctioim i wic poitout t g coquc

tt coul b po o t wolcoomy t.

Fbio scccivilli pok boutt iltioy pu i mgigmkt, t icl cii i euop g witi t covy it Us. h lo icu t impcto t Bl III bkig cco olig ow ti my impct tvilbility o t ic.

h w ollow by dilscm. h icu ow t cii gultoy cg ict cpitl quimt o bk look t t implictio o BlII III o bk oig tic. h i tt by oiglttiv t ic olutio,povi uc t Flco Goupply cucil ol i mgigmkt copot ic.

lt pk w clit oFlco Goup t CFO o wllkow giol copotio. hpok bout ow t compyuig gp icigly wiuig t globl coomic cii uto t ct tt titiol uigouc i up. i mttt t vic povi by FlcoGoup w citicl i llowig tcompy to kp tig toug ticil cii o 2007-2009.

oum w clo by FlcoGoup cim Kml alzk.

Bug Bk ouci lucig g o copmgmt pouct o it copot bkig cli iclu titiol commcil bkig vic

r al hqq, ci boic-io gl mgW ligt to itouwi vity o pcili p vic oig cot--to- bkig olutiooptimi c low i lviomt o ou copobkig clit.

a ut itio to impiv g o lctobkig vic, t w cmgmt ytm o c compiv viw o upoitio, ultig i cotol impov liquimgmt coupl witcompiv pymt coul b cutomi tt o iiviul buitby limitig mu w ytm lo llowto xci cotol ov twoklow, u, limit ccout miittio. ig lvl o cuity buittiol t.

News Round

Cash and rade MaY / JU0 Cash and rade MaY / JUne

dutc Bk i lucig

ic copot cmgmt vic out o it bc t sui cpitl riy.

Ty ocu o vicig tk copot ititutiollit, iclu titiol wommcil bkig vic uc ttiol t c olutio mgmt, uppotig cutomt vy tg o ti bui cycl.

T bk i committ to oigt bt cl o cil vic ouct it ict otli

umb o it copot bkig

cutom.W stimll, dutcBk o Globl ctioBkig (GB) mmb o tgoup xcutiv committ, i, Txpio o ou uit o vic it Kigom i ttmt to ouuwvig commitmt to t gio, i pt o ttgic viio tt log cogi t Mil et, sui abi i pticul, impott pt o t globl coomy cil cto.

T oig o c mgmt t c bkig vic isui abi i igict miltoo dutc Bk ou GB

ci i t gio. W pouo t cotibutio w v mi t couty to t, w lookow to ut itig ou clitwit ti cil .

aok am, dutc BkCeO o t Mil et not aicgio, i, sui abi i kyttgic gowt mkt o ougiol globl ci, w will cotiu to ivt i it toliv t pouct tt ou clitqui to gow ti bui.

a v ig lvl o co -optiobtw sui abi Ko b cll o by Kli a. al-Fli,pit CeO o t sui abiOil Compy). I ig t KoCmb o Commc i soul, i woul lik to ttgic Koivtmt i viou o t suiabi coomy, icluig gy-lt l.

I pc titl Mutul Bt,s Oppotuiti euigrltioip, al-Fli i tt suiabi mitio o t popl oKo to o wit coomic but w,t t m tim, vy um.

Fo mo t gtio, i, w v t- you woktic, you otitu, you iguity, t wy i wic Ko mtti poibiliti oou ticommitmt.

al-Fli i t rpublic o Ko iow mog sui abi ou lgttig pt.

Jut Ko lp builsui abi, t kigom bitumtl i Ko gowt tougou libl upply o ptolum toug ou quity tk i t s-OilCopotio, o o ti coutylig gy tpi.

Ti y mk t 20t ivyo tt milto ivtmt - suiamco t i ai.

s-Oil i ow xpig t cpcityo it Ul y to mo t650,000 bl p y, mkig it

o o t wol biggt motopitict i, i.

I pt cmoi, sui amcoig mmo o utigwit t expot Impot Bk oKo t Ko IucCopotio to c oppotuitio t two xpot cit gci topticipt i cig sui amcopojct i t utu.

I t wok w cu-oilpouctio ciliti; 50 p ctic i globl ig cpcity; xpio o t Mt G sytmcpcity to mo t 15 billiot cubic t p y; wol-cl ptocmicl pojct i Jubil; pl xpio o t Ptorbig

joit vtu; w iutil clutouig ot compi gg icovio, muctuig vicctiviti; lg umb o uppot ituctu iititiv - icluigpipli, bulk plt, ytm upg,viomtl pojct lgbuilig.

I woul lik to Kocompi opt ow-lookigttgy i wic ty ivt it bility to vic mitimtil quipmt i suiabi, t t imply uppotigu t Mil et gio omov t oizo i Ko, ial-Fli.

Jut ti tio povi u wit il lucig p om wic togow ou pc i ot ai, I blivt kigom c lo b xclltpigbo o Ko m wtig to

gow ti pc i t t-gowigMil et gio byo.

Fresh services or corporates

New cashmanagemenproducts

HSBC cuts Middle Eastern workorcehsBC pl to ly o up to t pct o it 12,000-tog wokoci t Mil et not aic it k to cut cot to impov itcomptitiv.

a pt o t optiolviw o t bui to u ou com-

ptitiv, w v iti op-potuity to impov cicy toug mll uctio o cout, it ii mil ttmt to Zwy dowJo i po to qutio. T ly-o will motly tk plc i t b kcopot til m.

Will Nagle (CEO) and

Kamel Alzarka (chair-

man) o the Falcon

Group in the hotels

Lost Chambers area,

which includes a

window onto the hotels

aquarium the largest

in the Middle East

Saudi overtures to Korea

Finance: the uture

Raed Al Haqhaq chie banking ofc

general manager at Burgan Bank, Ku


7/23


Risk and trade fnance

2 Cash and rade MaY / JUne

Jut t c mg om t till-l coomic cii wit gt pol, timpotc o ik mt mitigtio

v b ctivly igligt by t litio t cii. at t m tim, politicl vt iMena lw v bougt ito ocu tumtl impotc o ovig ik i it-tiol bui

ici wll bui l,om mll--mium tpi to lgcopot ogot o tim tt ctiv ikmt mitigtio co lmto t vlu popoitio o ittiol tic.

I t cotxt o o-cll titiol tic itumt, t txtbook itictiobtw ocumty cit (bt uit totctio ivolvig w o upov tigltioip /o ig ik mkt) ocu-mty collctio (tut ltioip, tblmkt) w lot ly ilvti my pt o t wol.

Wil ti my v b l t c i t

Mil et, it mi tu tt ti t wwily obv i t two o t y bot uptio o t globl cii, t lt i pt outcom o m om lg tilkig to couct t o l xpiv opccout tm.

i uotut ig o qut ikmt ik mgmt w vit itctio ivolvig mkt tt woul votwi b coi ltivly iky; imi-lly, impot xpot tbliig wtig ltioip v i uc ig ikmkt qutly g to couct bui o

tm tt, ctivly, ig t liti oik i ittiol commc.

I plll, t ol vlu o xpot cit iuc gci w bougt ito qutioi my mkt co t glob, ut ilutigt cy ocu o ik mt ikmitigtio by imiiig t impotc o ti

pct o t ctiviti o xpot cit gci(eCa) i ittiol commc. citicllyimpott umtl tu o t ol oeCa i blig uppotig ittiolcommc b cogi ioc ict ult o t globl cii , by x t-io, ti bility to cotibut to ctiv ik

mitigtio i ittiol commc bpv o t obl utu.rik lwy b ll lwy b l-

ity i t couct o co-bo bui. ttut oc gi b cogi.

A View o Riskspcilit i ittiol t ittiolbui ppcit tt ik i mt to b u-too, ppopitly mitigto optimi. rik cot i gl b com-pltly limit o oul it b tliticllyigo. rik i itimtly lik to tu,

The return o riskALEXANDER R. MALAKET, CITP, reviews developmentsin the MENA region regarding the risk dimensionof international trade nance.

Alexander R. Malaket

Specialists in international trade andinternational business appreciate thais meant to be understood, assessedappropriately mitigated or optimised


8/23


c v ctiv -motivto to pottilcomptito.

i otio o ik optimitio i i o wyit to imply cul ppoc to ik l-yi mt. O t coty, it ollow,by iitio, tt uccul optimitio oik i t outcom o u iligc, ppopi-t tpcy kill, ctiv lyi,

blc git xpct tu cot omitigtio.

Utig tt icil commciltpcy cotiu to volv i t Milet i ot pt o t wol it i wotcoiig imilly volvig viw o ik ttmigt pply i gio log cogi o itbui cum commcil pow.

plictio o t ic vbt tougt gio byo.

aqut lyi mt o mium-tm coitio will b bt v by combi-tio o globl viw locl, iti mt kowlgo t mkt u coitio, wit tll-impott giol viw i clu o goomu.

I itio to illuttig t vy l, pcti-cl lvt impct o politicl ovigik witi pticul mkt, coitio i tMil et not aic v mottt wy i wic politicl itbility c tvlco bo i wt mout to itt ull by cclt commuictio tougocil mi ot tcologi.

a tu to umtl bkig,icil vic bui mo boly b pomot cmpio i mymkt co t glob, toug it bgu tt t Mena gio miglly ocu o to umtl i icipli m. Yt t v b ii-ctio o lo o ocu o t ik imioo ittiol commc ittiolt ic.

Sovereign, Bank & Commercial Risksovig o o-cll politicl ik joi bkik ky coitio i wll-vi wll-coi ik mt mitigtiopoc, i o mll pt u to t tumoil tt gipp vl couti i t Mil et not aic ov t pt w mot.

vy l um , c oom ic co mm cil im-plictio o igiict it i ovig ikymic coul ot b mo cl t im-

o b cl, t i o vlu jugmt ttcto politicl itbility o civil ut i givcicumtc o giv t o cicumt c mly t obvtio tt uc itbilitygt vy cl vy tgibl commcilcoquc. o implictio touc vot-tm t obligtio, glly viw ltivly cu i tim o coomic iiculty, will ctily impct mco-ymic uc pcptio bout t climt o xitig i-

vt mt (cu it y o t) wl l pl /utu ivtmt.

bk o icil cto lvl o t ikicuio b mply o globlbi i t cotxt o t cii cio,wit bui co t Mena gio loigcoic, lbit tmpoily, i ittiolititutio, locl im cmpioig timpotc o ict clit ggmt pkowlg o t gio. poitiv impct o

Optimised RiskOptimised with reerence to:> Risk Tolerance

> Expected / Target Return

> Acceptable Mitigation Costs

Risk actors

Political / Country

Risk

Commercial Risk

Bank Risk


Importer

(Buyer / Applicant)

Exporter

(Seller / Beneciary)

Issuing Bank Advising Bank

(Conrming Bank)


9/23



si Lw o icig i pticul tic - b wily cogi, muc oit bi i umtl o i ct likgto ulyig t, i om ot mit.

a impott uc i mkt co tMena gio i t qutly clo coctiobtw ovig bk ik, u to tt o

tt-lik owip o t icil cto lity tt xt wll ito t commcil l-tioip toug imilly itgt owipmol. O plll i t ltioip o tt-u xpot cit gci t impct ti o ti ow ik poil (ctivly quiv lt tot ik tig o t couty wic t eCav), wll ti bility to cu u tvoubl t (o t tiol cit c),ll t wil ggig, go t gumt, ibui o o-commcil, uutibl tm.

Commcil ik, typiclly ivolvig buy ll, but, pp, lo itmiy p-ti /o ilit, i lity i y buitctio, toug it ik poil i typiclly

mplii i co-bo tctio wvi ibil ity t p cy b c oiomtio bout coutpti t to bmo impott, ot l vilbl t iomtic commcil ltioip.

pcy i ti cotxt xt byot till umtl iu o icil tp-cy potig, to (ppopit) tp-cy bout commcil optio, ctivot to mg mkt xpcttio tougqut low o iomtio lo tt willutt i ig-poil m vl timov t cou o t cii.

Risk Transer bility to c ik, toug iuc gut olutio, o toug t to ik om o cotxt o pty to ot, i log-tig pct o t vlu popoitio oittiol t ic o wic, likt ubjct o ik, gi gi poil iicuio lt to t ic.

Iuig ocumty cit ivolv citcmt/ik t to t xtt tt tiuig bk poil i voubl i compi-o to tt o t impot poviig comotto xpot bout t ig pobbility ottlmt g. similly, coimtio o ltt o cit by coimig tity (typiclly)i t om couty o t xpot ptik t i vl pct: coimLC mov, om t xpot poit o viw,t iu o ovig o couty ik, jut it plc iuig bk ik wit coimigbk ik, commcil (impot) ik witcoimig bk ik, povi ll ocumtytm coitio v b ully compliwit.

Mo ct t i c itumt mcim, icluig viou lvou o upplyci Fic, v icopot ik mitigtio ik t/cit cmt optio iti tuctu, t tim itig ik btwpti i pticul globl upply ci.

Wt upply ci ic pogmm ltivly bic, uc ivoic icig, o

wt ty compiv, multi-pty omulti-bk pogmm cig ito miv,xt upply ci cti umtlou ik mgmt, ik t citcmt big itgt t t t-ctio tcicl pltom lvl. y lomi witi t pmt o globl upplyci ic pogmm.

Giv t w commcil liti o tmomt i ittiol commc, it i botppopit cy, o w mo oicig to iclu ik mitigtio tu ik t optio. Bot ct lmt

Commercial risk, typically involvingbuyer and seller, but, perhaps, alsontermediary parties and/or aliates,s a reality in any business transaction

o t volvig vlu popoitio ou tic, m o cilittig ltivlyicit u o cpitl toug ik t cit cmt.

Reputational RiskJut it i ckowlg tt ici i tMena gio v, by lg, mi iligmt wit umtl i icig, iti tu tt imio o ik wic bt ocu o om tttio i cti mktic t cii (otbly t Us. euop).howv, t ctl ol o t i pticul ty po ik b wll utoo o uo y o, pp, vl tou i tMil et.

rputtiol ik t impct o gtivocitio to icil ititutio, to clito coutpty, o pticul ittioltctio c ct-tg i tmo poil i cti ogitio. ecompigimio uc ticl couct tciclkill o comptc mog ot cto, it bcom imptiv wit poil up to t lvlo t ci xcutiv.

I t Mil et, t log-tbli pc-tic o m lig li vily (i omc, lmot tily) o t otio tt put-tiol ik xt uicitly powul ilucto u ppopit tutwoty commcilbviou.

Wil ti pctic b citici lck-

ig obut icipli lik to cit ikmt, ittiol ititutio vb voctig uc mpi o mlig (wit om ct vlopmt i tgio poviig uppotig vic), it i wototig tt t i covgc o ot. pp to v b it to mo objctivik mt pctic i cti mkt i tMena rgio, coupl wit plll bo-ig i ocu to iclu gt coitio oputtio puttiol ik mog icilcto ogitio ( ti clit) i mktom t amic to euop byo.

Risk & Capitalaot imio o ik ixobly giigpoil pioity i lt to t u p-plictio o cpitl i t cotxt o t oupply ci ic tctio.

Wil t Mena gio i ot yt ully -gg i tm o implmtig t ltt Blcpitl v quimt - t tuo to quimt mi t ubjct o

vigo ou i cu io - it i o go coclu iott cpitl qucy mut bcom moctl lmt o t ik icuio. ioul b bot witi icil ititutio

v iou li o b ui comp t o i c ilouc wit clit, i o to ggi poctiv, joit ot to tuctu tic tctio wit ppopit ocu ot cpitl implictio o t viou optiovilbl.

ik/cpitl icuio mut volv ito co lmt o t ilogu btw i-ci clit, mo boly, coicigly globl complx upply ci. Mena gio i wll-plc to pp outio o uc ilogu pt o timplmttio ollout o t BIs qui-mt vtully ppov.

suc ilogu will b mot ctiv i it -gg locl icil cto gulto, wll ot pti pp l obviouly impctby t volutio o gultoy quimt,icluig xpot cit gci, pivt c-

to ik iu ot wit tk i toptiml uctioig o t upply cipogmm.

Filly, o lity pmt vy im-io o t icuio ou ik tic. Pti wit itt i t i-cit blmt o ittiol commcmut gg ctivly to ut, optimi commuict ppopitly bout t ikuiv i ittiol t ic p-ticully commcil liti volv t upply ci ic olutio volvi coquc.n


10/23

The recent turmoil in some o the countries inthe region may also be a setback in eorts bycorporates to move to open account trading.


Supply chain fnance techniques

Letters o credit make a comebacke current political and economic climate in the Middle East hasstrengthened the need for letters of credit. LIZ SALECKA reports that theynow look set to continue playing a crucial role in domestic, regionaland international transactions despite the global movement towardsopen account trading.

Altoug bout 80 p ct o globl t iow op ccout-b, ppoximtly 70-80p ct o ll Mil et t volum

till ly o LC, ccoig to ttitic publi i2010 by t Wol Ogitio. a ult,LC v mi co t vic o loclbk vy luctiv -ig bui.

howv, pit ti, t i tog bli ttlocl bk oul ot y wy om t poviioo mo-y tuctu t c olutio,uc upply ci c, wic coul lp loclcompi uc t tctio cot tpito mo cot-ctiv cig.

accoig to su Viyt, goup CFO,Pltium Copotio FZe, cti Mil etcopot v ow gowig itt i witc-ig to op ccout t. h, vtl, poitout tt i t cut viomt LC liklyto pvil pimy ik mitigtio tool o botimpot xpot.

diclou govc t i tMil et till volvig lbit wit i-c ocu i ct y, but ty till iti icy comp to ot vlop mkt.

Ti vly impct o t pi gowt o opccout t, xpli.T ct tumoil i om o t couti i

t gio my lo b tbck i ot by co-pot to mov to op ccout tig.

howv, Viyt lo poit out: T, o u, b igict pu by copot tolimit t o bkig itvtio t ougLC - t ultt cot. Ti i mo otic-bl i t c o log-tig picipl-gtltioip tt wily pvlt i t gio.

similly, Jo Wtig, goup icto-c,al-Futtim Goup, poit out tt, i toy co-

omic climt, LC till com-moly li o by Mil etcopot w gigimpot xpot c lo v cil guto locl pymt.

I t pot-cil ciipio, t wol bcm mow o coutpty cit ik

- pticully giv cotctioi t vilbility o cit iu-c two y go - cilgut v b commoly li upo toimpov cit ik, y, poitig out ttmo obut ocumttio i ow qui o lltctio.

Mil et impot v b xtigpu o uppli o xt cit tm, ti i of bck by ocumty cit o omot. Ov t pt w y, ov uppli vb k to ti ltt o cit tquimt ti llow tm gt ccto civbl cig.

h tt umb o al-Futtim Goup

ow picipl ov uppli, uc oyot Cyl, ly o i goup LC o ti owcivbl cig pogmm.

Multibank structuresa mjo Mil et impot, t al-FuttimGoup itl implmt g o LC-bckcig tuctu to boot it ow impot cli. Wil locl bk g t LC, it-tiol bk tp i to povi t uig.

T typiclly multibk tuctu, com-biig locl cil g uto ovliquiity povi, xpli Wtig. T uul

Suresh Vaidhyanathan, group

CFO, Platinum Corporation FZE,

Cash and rade MaY / JUne


11/23


o t tuctu iclut ollitio o wok-ig cpitl li, low cot, wll t ct tt t typiclly tm lo ,to, goo om li-quiity mgmt poito viw.

howv, poit out tt, wil locl bkv ccommot uc tuctu, ty vot yt tk tp ow to povi uc impotc ciliti tmlv it o ti ow i cojuctio wit ov bkig pt.W v mily bougt impot cig tuc-

u to tm, t t vig b ptwit uc tuctu by tm pckg l

ig ti ov copot bk o tc pt, y.

Wtig, vtl, bliv tt locl bkoul k to cpitli o t poviio o tuc-u t c olutio, pit globl bktog ittiol twok.

c oul pt locl bk wit migul oppotuity to gow ltivly pot-

bl bui u Bl II giv t mo -oubl cpitl ttmt o t c, y.

Globl bk v itict vtg bot im o big bl to povi multi-cucy t

c, wll -to- upply ci cco bo.howv, locl bk glly btt-plc

o povi -to- c mgmt olutio,wic, o u, iclu lmt o t c.

h tt w om locl bk vou it i cult to o tuctu c olutio,vig b l bck by liquiity cotit, t

movmt i ti ictio t pt.som o tm ow comig up wit lt-

iv tuctu uc t poviio o wokigpitl li, wic ot LC-b. Ty omig up wit w pouct, wic w ot t

y go, to povi lttiv typ o uigto copot, y.

Structured solutionsViyt lo bliv tt locl bk oultk tp to o tuctu t c olutio,wic c vlu to copot t tc-tio wilt lo ucig ti cot.

Locl bk to opt btt mto ocptuig t cm o t c bui, p-ticully co-bo bui tt i toy bigomit by ittiol bk, y, poit-ig out tt otwi globl bk will l i t poviio o tuctu t cig btom gowt i co-bo t.

howv, , too, mit: Globl bk i ttgiclly tog poitio to cilitt it-tiol t btw impot xpottoug ti wily tc pc lo-cli kowlg o complx ti.

Fit Gul Bk i o locl bk tt i cu-tly ctivly igig g o tuctu tc pouct olutio o luc i t utu.

Gog abm, xcutiv vicpit, goup o copotbkig t Fit Gul Bk, ckowl-g tt LC till pt vitl,

co t bui.Ltt o cit om itglpt o t -b vu gtby locl bk, y. Volum oop ccout t v mgillypog i t Mil et, but till cll i compio wit otittiol mkt. Ti clly ig-i tt LC p mo will cotiu to xit i t com-ig utu.

howv, cogi tt loclbk, uc Fit Gul Bk,

to bcom mo ymic pt to t v-cgig o t g lobl locl coomy.

Wil t ik-v compi woul tillp t cu ltt o cit mo, otcot-itiv ogitio my witc to otltt mo, y.

h lo bliv tt my locl bk w ill ol-low Fit Gul Bk xmpl, tt t i loclkowlg ltioip coul put tm t vtg to globl bk w oig tuctut ic olutio.

Bk i t Mil et gicilitt tuctu t upply ciT olutio will vtully to i to ct to t pcic o ti

Globl bk v t gogpic twok, wic migt i tm i buitio. howv locl bk uc Fit v ti ow itict vtg mo lxibl o to b i li wit loc coomic imio witi t mwok.n

Supply chain fnance techniques

The automated LCDespite the international movemenaccount trade, this has brought with it

over the inormation and guarantees pbanks when oering fnance to local e

One solution being marketed to re

issue globally is SWIFTs Bank Payme

tion (BPO), which serves a similar guarantee role to traditional, paper-b

but in an automated way. The ins

which secures an unconditional undepay rom an importers bank, can be tr

electronically over SWIFTs Trade Serv

(TSU) between TSU member banks.

According to First Gulf Banks Geo

ham, the BPO could eventually make i

the Middle East. But he notes that, a

in its inancy, it is unlikely to spearhe

mediate movement away rom paper-b

The Bank Payment Obligation is

nascent stage and has just been intr

the region, he says. The oering w

be accepted and implemented by the

banks, which may take a long time. T

near future, we do not expect any ch

the present system o letters o cred

Wartig, group director-

ce, Al-Futtaim Group

George Abraham, executive

vice president, gr oup head

o corporate banking at

First Gul Bank

local banks are generally better-placed to provide end-to-end cashmanagement solutions


12/23


Wicv pty wi t uki g-l lctio i Ju ti y, o tigmi cti. uky pticiptio

bkig cto wi ll cotiu it ty pog, i t poc, ut coolit t c-to t ti mjo compot i t uki

icil ytm t t poitoy (covtiolcommcil poit-tkig) bk t vl-opmt ivtmt bk.

Pticiptio bkig i t uki upmimo itt- poit--lo-ig bkig

- i ot wo Ilmic bkig. It impotci uli by t ct tt it louiic it tblimt i 1983 by pci l citouc by t mility gim o PitK ev, mo ctly it ugo uccul tomtio tt it b compt o t mitm bkig iuty ollow-ig it licig, gultio upviio u

t m poviio o t gl 200Bkig act (am).

Pp qully impottly, ukitio bkig b uumigly ic mgmt t ic poi my pct uiqu i globl

lo Ilmic ic. iclu gmt vig pouct bck bgol; t wol it Ilmic xcu (eF), icluig o wic i gt u o sukuk l-Ij to i uittiol mkt, pcilly i toptio Coucil (GCC) gio to ibo t xpio o uki o blc t pupo; tu o yict Commoity Mubom t ittiol mkt.

Wil t ulig aK (Jutic Pty)Miit rcp yyip eog m

e Turkish economy has now re-aligned itself more closelyto the regional markets in the GCC and MENA countries.MUSHTAK PARKER reports in detail on the new outlook

Turkey draws closer to MENA

Islamic fna

Mushtak Park


13/23


Islamic fnance


otbly i t poll, u mtl -ligmt o uki politic i igly uliklygiv t iy o t oppoitio pti ti outmo lip mito, t ct tt i gl t eog govmt uccully mg t uki coomyov t pt c. duig tt tim t ukicoomy gw om big t 26t l gt i twol i 2002 to t 16t lgt ti y. eog- polici v lo t uki coomy-ligig mo cloly to t giol mkti t GCC Mena couti toug iti oig outlook, wic i ow b o tcocpt o ymic quilibium t-tgic pt.

cocpt blc t policy mtmi- by it ub citct, oig miit amtdvutoglu, btw it ittiol obligtio i it mmbip o naO; it euop Uiommbip mbitio, wic v ov t ptw y b it by Ilmopobic op-poitio om Fc, Gmy, ntl,auti, Fil, Gc Cypu; it w-ou ppocmt wit t Mena couti,pcilly t GCC, syi, Iq I, witigbouig pow uc rui.

I om pct t globl icil cii, eUpolicy tow uki mmbip mbitio t po-moccy pott wpig tMena gio v ll cotibut to t policyit. It impct i uki t mogpic( iictly to t ut vlopmt o tpticiptio bkig cto) coul ot b tk.

Bo t cii i 2008, ccoig to FtiBul, o t Ittiol Ficil Ititu-

tio dptmt, kiy Fi PticiptioBk, totl uki xpot c Us$132b, owic t lgt w to t iutilimkt pcilly eU couti uc Gmy,auti t UK. at t cii, totl ukixpot lump by 22.6 p ct to Us$102.1b i2009, o wic xpot to t eU-27 couti llply by 25.8 p ct to Us$47b.

I cott, uki xpot to Mena cou-ti, pcilly to t GCC gio, ot a-ic tio v wit mtic ico up to 20 p ct. i it i t ukit poil op w coolit

tbli ygi wit t Mena gio. o t ou uki pticiptio bk vgot mjoity GCC owip itt ukiyFi i lgly ow by ntiol CommcilBk o sui abi; Kuvyt uk Pticip-tio Bk (KPB) i mjoity ow by KuwitFic hou, o o t lgt Ilmic bki t wol; albk uk PticiptioBk (aPB) i ubiiy o t Bi-balbk Bkig Goup.

out, ay Pt icptio Bk (aPB), lo clo ti wit t GCC t up joit

vtu w it t Il mic Co potio o t d-vlopmt o t P ivt scto (ICd), t pivtcto uig m o t Ilmic dvlopmtBk Goup (IdB), cll mwl aic, wicivt i icil ititutio, lig titi xt li o cit to ic t i ub-s aic.

eqully igiictly, v uki covtiolbk ow tgtig t GCC giolub. svl ttig up oic i t dubiIttiol Ficil Ct (dIFC). W lopl to pomot ou dubi ubiiy, xpliUuk Uy, CeO o Kuvyt uk PticiptioBk, bcu t lot o t low goigtoug dubi owy. dutc utoiti ctig big poblm o uki covtiolbk. y ot wt tm to xt cit puttig viou tictio o ti bui- ctiviti. svl o t uki bk vci to mov to dubi dIFC. euop-wi it iot y o uki bk, ltoug uky log-tig t ti wit eu op.

Wil uki bk g tt 2011 will

b voltil y o t uki bkig cto wol bcu o t lctio giolvlopmt, Uuk Uy mi mt tt2010 w pct y o Kuvyt uk i pticu-l i gl o t pticiptio bk iuky. gowt o t pticiptio bkigcto w oubl tt o t covtiol cto.KPB ow bcom o o t op 10 bki uky i 2010 ou blc t gowtw bout 50 p ct comp wit 2009. By t o ti y w pl to v 180 locl bc.W lo v bc i Bi ic 2002; iGmy; pttiv oic i Kzkt;

ull ubiiy i dubi t t dIFC. Wlo v pl to go to not Iq op bc i ebil; om ot loctio it gio, wic v ot b ili yt, xpli.

i coic i ut uli by tltt t o t ou pticiptio bk o ty ig 31 dcmb 2010 l i apil2011 by t Pticiptio Bk aocitio ouky (KKB).

accoig to Om akyuz, cty g-l o KKB t om gl mgo aPB, totl t o pticiptio bk iFY2010 ic by 25 p ct o 2009 c-ig Us$28.1b; poit ic by 22 p ctto c Us$21.9b, o wic 66 p ct w iuki li 34 p ct i oig cuci ;icig lloct by t pticiptio bkgw by 25 p ct to c Us$20.8b; tot lol quity ic by 19 p ct toUs$3.5b; t icom ic by ou p ctto c Us$491.6m; t umb o bc umb o t o pticiptio bk totll607 12,694 pctivly gowig t y-o-y t o igt p ct.

similly, t mkt o pticiptiobk t i 4.31 p ct; o pticiptio -poit i 5.4 p ct; o pticiptio ic-

ig ix p ct. icig-to-poit tio opticiptio bk i 2010 w 96 p ct com-p wit 83 p ct o t covtiol bk-ig cto i uky. I tm o o-pomiglo, pticiptio bk lo btt. nPL o pticiptio bk i 2010 w L341millio o 0.34 p ct comp wit L379millio o 0.47 p ct i 2009.

cut mkt o pt iciptio bko t totl bkig mkt i uky i m ixp ct, ltoug Uuk Uy i coit tt tgt o btw 10 p ct to 12 p ct mkt i civbl ov t xt w y. howv,

The global nancial crisis, EU policy towards Turkish membershipambitions and the pro-democracy protests sweeping theMENA region have all contributed to the policy shit

Even Turkish conventional banks aretargeting the GCC as a regional hub

uk Uyan, CEO o Kuveyt Turk Participation Bank


14/23


Islamic fnance


om globl ppctiv w Ilmic bkig 38 p ct mkt i sui abi, 40 p ct mkt i Bui, 22 pct mkt i Mlyi, t pticiptiobkig cto ti ll log wy to go to ct bov mkt pttio.

howv, ti poit to ug oppotuiti iuky upi by miv ltt m opouct uc t ic, yict lo,sukuk, wuq (Ilmic c m gmt) ivtmt u. not upiigly, t two w pplictio wit t uki bkigutoiti om GCC pomot o licc toluc pticiptio bk i uky.

KPB i ct mot pio x-cg-t u (eF) bck by pyiclgol; gol-b cut tm ccout; tpuc o gol coi toug aM; luc t it coopt sukuk i uky (Us$100m sukuk al-Ij). bk i lo pl-ig co Us$500m sukuk lt ti y.ukiy Fi pio t it PticiptioeF i t wol; it luc vl mutu lu; pt o gol-bck cut vig ccout. albk uk PticiptioBk i lo iliig it but sukuk iuc; pio pouct uc t Bkt Cim t t mll ul mig commuity; ci bui c.

bckbo o uki pticiptio ic-ig i commoity Mub, pcilly to mll--mium-tpi (sMe). uky oo t lgt ittiol t volum mogt IdB Mmb Couti, totlli g Us$334b

i 2008 lo. Giv t ot-tm tu opticiptio poit, t i mimtc witmium--log-tm icig libiliti.a uc uki pticiptio bk octo i Ilmic icig toug li o citpovi by titi uc t IdB, t ICd t dubi-b Ilmic Fic Copo-tio (IFC), t ict t ic tity ot IdsB Goup, toug t ittiolyict Mub mkt.

a pt o it Mmb Couty Ptipsttgy (MCPs), w iititiv luc by tIdB i 2010 to itiy, tgt, lloct, impl-

mt vlut it icig mo icitlyi mmb couti, t IdB publi pilotMCPs pot o uky o 2010-2013 ctly. pot mpi tt li o t icigxt by IFC toug omtic bk pov to b icit wy to o bui w itsMe, tt IFC i lookig to xp tibui to iclu uki covtiol bk.

ibumt lvl t vlopmtlimpct u t li o icig optio,xpli t pot, ig comp tot ict optio. Ot multiltl icilititutio ctiv i uky ollow imil p-poc w ty c t sMe toug tlocl bk vi li o t icig optioo toug coimig Ltt o Cit.

IFC b collbotig wit public pivt covtiol bk o tbliig wli bi t wll tbli co-optio wituk eximbk t ou pticiptio bk,wic v ly utili vl ciliti itt i wig t li.

howv, o pottil impimt i t lio t icig ocumttio o t IFC,wic i ot ccptbl to om o t cov-tiol pticiptio bk bcu om ot ticl ot i li wit locl lw gultio. IdB i ly wokig witt uki govmt to tmli t lglocumttio to vlop impl lglmwok o 2-stp Mub agmt ttwoul b ccptbl to t uki bk.

O t ot , uki bk pobblyt mot ctiv i t ittiol Mub

yictio mkt. ltt to cc t m-kt i ay Bk, wic i Us$300m toug Mub yict lo i Mc 2011. iw t lgt igl uc cility xt to uki bk, ay Bk ti oyito ti mkt i t lt two y. I 2010,ay Bk clo ot Us$255m Mubyict cility, wic w ubcib by 26ittiol bk.

ay Bk gl mg, abull lik,w pot o w mpi tt t lttcility i ig o t t ut ittiol mktv i t uki coomy i bk. I,

bcu o t ug pptit om t mkt, tMub cility w upiz om t oigil

Us$150m to Us$300m. cility ctully com-pi two tc: Us$171m eUrO94.5m.Oc gi, co 26 ittiol i-

cil ititutio pticipt i t yictio,icluig st Ct Bk i t UK,aBC Ilmic Bk i Bi, noo Ilmic Bki dubi, ntiol Bk o abu dbi, wll 22 ot om t Uit stt, euop, uky,Pkit ot Mil et not aiccouti. picig o t 1-Y Mubcility i LIBOr (Loo Itbk O rt) eUrIBOr (euo Itbk O rt) plu1.5 p ct.

Goig ow, mo ctly xcitig wvu mgig o uki bk to i

pticiptio u om t ittiol m-kt. i i i t sukuk mkt. hitto, tlck o sukuk lgiltio mt tt ukibk v b oc to vtu oo toi mium-to-log-tm u to ic omo ti ctiviti, it o poit, wic lgly ot-tm.

KFP tt wit t it copot sukuk Us$100m iuc , ccoig to Uuk Uyo KPB, t bk pl to go to t mkt ltti y to i Us$500m toug suku k iu-c, but o log to, myb toug 5-yiuc, tu uliig KPB coic i

There are huge opportunities in Turkey underpinned by massiveatent demand or products such as trade nance, syndicated loans,Sukuk, Tawarruq (Islamic cash management) and investment unds

Going orward, morerecently exciting newavenues are emerging Turkish banks to raiseparticipation unds romthe international marke

Head ofce o Kuveyt Turk Participation Bank


15/23


Islamic fnance


Central Bank of the Republic of Turkey USD/TRY FX Rates for -Dec- : . ; -Dec- :,

lty mkt pptit o uki ik Ilmic ivtmt t. KPB u t ui o blc t pupo to ic t pojct.

But to sbi Ulu, vic pit, kiy Fi- Pticiptio Bk, mgig Ilmicic mkt, lik uky, my jut b wt tglobl sukuk iuty to uti gowt.uki sukuk oigitio coul ppl to yil-ugy ivto i t GCC, ai euopbcu uki ivtmt t to py ltivlyttctiv p i compio to Gul euop p.

I ct, mkt timt b boot byvlopmt i sukuk lgiltio i uky. al-mot uotic, t uki ntiol ambly iak p t Fic Bill 2011 t i Fbuy.It iclu tx utlity mu o sukuk al-

Ij (lig ctiict) tu pvig t wy o pt o copot sukuk iuc i t cout y.Mut holu, o t suvillc Goup,

copot ic ptmt, Cpitl MktBo o uky, coim tt t t x utlitymu o t sukuk al-Ij w publii t Oicil Gzt t i Fbuy 2011, wic mpi i impott vlopmt i tpticiptio bkig cto i t couty.

i mjo poblm o PticiptioBk i tm o log-tm boowig qui-mt. covtiol bk c boowtoug bo iu o 3-y o 5-y bi

t txtio i w cl log tim go. m i o t Pticiptio Bk t i oly o wy ti c b o wic i tsukuk out. rctly, t govmt covt tx utlity iu o sukuk l-Ij, but oot sukuk pouct t i o lgiltiovlopmt, miti Uy.

h g tt t mmt to t lw itm o tx utlity o sukuk al-Ij willbl uki copot to iu sukuk. Co-pot icig goo wy coul bto i u toug pojct ot sukuk . cg i t lw i goo tp ow. Butt mkt oul b i poitio to bob ycopot sukuk iuc. my com-pi wit lot o goo t. w lw woulllow uki pticiptio bk to boow olog to it o t cut ot-tm

3-y. I ti wy sukuk oigitio c lpic t gowt o t uki coomy p-cilly ivtmt i iuty.

not upiigly, t mkt i xpctig ukyto vlop ito izbl sukuk oigitio -titio ov t xt w y. a uc, ukipticiptio bk icigly xploig tpoibiliti o iig u toug sukuk iu-c, lbit pt o t qulity volumo vilbl Ij t tt c b cuiti .

dpit t ug impovmt i t ukibkig cto ov t lt c o o tougimpovmt i putil gultio u-

pviio, t IdB cot tt mo to bo to c t bkig cto icicy tt t i igiict icig gp tocov icig o oig t. icigbottlck iclu t limit vilbility o log-tm ic, ub-optiml lloctio o ouc lct i t i g o FdI (oig i-ct ivtmt) i o-xpotig ctiviti limit mg, cquiitio, tuctuigo sMe. bottlck u to t lck opt o t icil ytm t iqucyo t couty icil ituctu.

uky i o o t mjo bicii o IdBicig to t, civ icig totl-lig Us$4.6b, o wic t i cig ccouto Us$3.5b. i igu pt tggig10 p ct o totl go t i cig ppovby t IdB.

Followig t tblimt o IFC two ygo, t ul ppovl lvl o t icigi vou o uki compi bk oom Us$50m to Us$200m.

IdB/IFC t icig ibumt iuky util w y go w limit to Lt-t o Cit, but mo ctly t two tititt to implmt ocumty collctio

lttiv mto o ibumt. limittio o t ouc o upply by llowigoly impot goo i lo big ovcom, lbitmot o t t ic clit o IFC i ukypocu ti goo om omtic ouc ito impot. a uc, IFC tt to povi

icig o pucig om t zowiti uky, li o icig tt c bu o p-xpot pupo.

accoig to t MCPs pot o uky, tIFC i k to cl up it t ic op-tio to Us$250m ov t xt two y. copotio will cotiu to buil o t ogoigoptio, mily itvig by poviig lio t icig toug locl bk.

I ti pct, IFC co-optio wit tuk exim Bk t ou pticiptio bk

Turkey is one o the majorbeneciaries o IDB nancingto date, and has receivednancing totalling US$4.6bn

The market should be in a position to absorb any corporate Sukukssuances. There are many companies with a lot o good assets


16/23

Islamic fnance


i t to ic. I t lgl iu lt to ticig ocumttio olv, IFC -

vi g pu ui g v lopi g bu i op-potuiti wit itmiy bk, icluigZit Bki, Vkibk hlkbk, w sMe icig cm woul b vlop icojuctio wit t uy KOsGeB, tuki t pomotio gcy.

aot cougig vlopmt o IdB p-cptio o uki mkt ik i tt IFC ipp to xt li o i cig to co-ti compi o cu bi t top-ticompi o ucu bi. copo-tio lo pl to l Mub yictio omobiliig ouc o lg uki titi.

aot poibl itvtio om IFC woulb i t tuctu commoity t ic ,w it woul coi tuctuig xpot/impoticig tctio i vou o co-optiv compi i t gicultul oo cto.

aot IdB tity tgtig bui i ukyi t Ilmic Copotio o t Iuc oexpot Cit Ivtmt (ICIeC). totlmout o bui iu by ICIeC o uk-i xpot, ccoig to t pot, cUs$674m, wil bui iu o ukiimpot mout to Us$201m.

mi vic tt ICIeC povi m-ium-tm xpot cit iuc, ivtmtiuc iuc o Ltt o Cit ivou o bk iuc o uk eximBk i itio to ot-tm cit iuco o-clit o uk exim Bk. vic cl toug ICIeC locl gt iuky, akti Bk PGlobl avioy sv-ic; toug uk exim Bk; uki bk igl; mjo ittiol locl boki uky.

ICIeC goo pottil o t Iuco Ltt o Cit to b co im by uki

Bk, pouct tt bl uki Bk toc ti coimtio cpciti o bkom impotig couti to xt ticoimtio bui to mo couti.

I tm o c mgmt, uki ptici-ptio bk pioig gol-bck pouct.KPB, o itc, i vy ctiv i gol ccout.

ay clit wo wi to ivt i gol com toou bc poit uki li o Us oll covt tm ito oll-quivlt gm ogol. clit c tu t ytim m tpoit it i t om o pyicl gol o ioll quivlt to t pic o gol t t tim.i i o t cut ccout. Fo t tm c-cout, w wp t gol ito oll ivtt oll t tu i itibut to golccout ol i t m omt, xpliKPB Uuk Uy.

Gol ivtmt cultully ccptbl iuky. Bo uig t y o t icilcii my uk p to kp ti gol tom u t mtt. KPB gol-b c-cout lo ully si-complit, tpouct v b xpot o oig i tMlyi t GCC mkt, pcilly Kuwit Bi. KPB i mmb o t ItbulGol excg, o w kp t pyicl gol tt xcg. W o o t top t bkctiv i t xc g.

I, to ttct ititutiol gol ivto,KPB lo luc t GolPlu xcg tu (eF), wic i lit o t Itbul stockexcg b t ic augut 2010.

altoug t iz i mll w xpct it to ic.

pio u t iuc compiv to kp om o ti ivtmt i t omo gol, o tt ty c ivt ictly witoutloig o t buy--ll xcg ic, Uy.

at t m tim, KPB i pobbly t olybk i t wol w you c w gol coitoug it aM. coi ctii byt Itbul Gol excg t ii.

i i uiqu o y b k. I you go to o oou aM wt to buy gol coi you c jutpy toug you bit c o c you wi llgt t gol coi/, i Uy. n

In terms o cash management,Turkish participation banks arepioneering gold-backed products


e pressures of the post-crisis environment aresignalling a return to a more traditional localisedbanking model.DOMINIC BROOMmanaging directohead of market development for BNY Mellon TreServices EMEA, discusses how a new approach to

global bank partnership can help banks in emergmarkets overcome the hurdles presented by this s

Trade nance: a returnto relationship banking

T my cllg pt by t globlcit cii m tt ittiol t by xtio t c c

tippig poit. T t o t cllg i tgowig tt to upply-ci mgmt. Tuivl yig up o cit li ult icofict btw uppli buy: t omicigly quiig pymt i vc/o -m, wil t ltt cllig o mo lxpymt tm.

rt t big m upply-ci -

c, y itutio tt coul ult i t iluo ky uppli woul pcilly i t y ojut-i-ti m ivtoy b upply-c i i t.oy wk lik i tomoow bok ci.

O cou, ti tio o t upply-ci iot lp by t ovll ic ocu o cit tctiol ik pol, t ultigtmop o xtm cutio. T bc omkt liquiity t typ o politicl co-omic ut tt w v i t Mil eti lig to uptick i t u o titiol titumt, uc t tim-oou ltt ocit (LC).

Wil t LC log ulll goopott wok o locl mgig blck t ouc to mg copot ciomtio cl tctio poctivly citly pticully to gultio ic.

I complic - pticully tig Bl III cco - i ci cu oo globl t t c i pmibl it im to ic t qutity o cpitl, tgt liqui

icoug xciv ik-tki pottil owi.spciic coc bou ov t

ili ciio uouig t mqui tio o ti-o cpitl to ikt t o-blc-t tt ic. O o t coqucciio coul b tt cutom oul t bu o bui bcomxpiv, wic coul pov to b t i t coi o tugglig mll-mtpi, wic om t bckbo otiol commc.

Post crisis banking

Dominic Broom


17/23


Any situation that could resthe ailure o a key supplier especially in these days oin-time inventory be a supchain disaster. Todays weaklink is tomorrows broken ch

The increasing globalisation ocommercial networks led to the riseto prominence o open account (OA)settlement namely payment terms thatare not backed by bank-issued LCs

T my cllg pt by t globlcit cii m tt ittiol t by xtio t c c

tippig poit. T t o t cllg i tgowig tt to upply-ci mgmt. Tuivl yig up o cit li ult icofict btw uppli buy: t omicigly quiig pymt i vc/o -m, wil t ltt cllig o mo lxpymt tm.

rt t big m upply-ci -c, y itutio tt coul ult i t iluo ky uppli woul pcilly i t y o

jut-i-tim ivtoy b upply-c i it .oy wk lik i tomoow bok ci.

O cou, ti tio o t upply-ci iot lp by t ovll ic ocu o cit tctiol ik pol, t ultig

tmop o xtm cutio. T bc omkt liquiity t typ o politicl co-omic ut tt w v i t Mil eti lig to uptick i t u o titiol titumt, uc t tim-oou ltt ocit (LC).

Wil t LC log ulll goo im-

pott wok o locl mgig bk, mylck t ouc to mg copot cit ik,iomtio cl tctio pocig -ctivly citly pticully t buo gultio ic.

I complic - pticully t upcom-ig Bl III cco - i ci cu o coco globl t t c i pt icul. amibl it im to ic t qulity qutity o cpitl, tgt liquiity t- icoug xciv ik-tkig t pottil owi.

spciic coc bou ov t yt-to-b-

ili ciio uouig t miimumqui tio o ti-o cpitl to ik-wigtt t o-blc-t ttmt ot ic. O o t coquc o tciio coul b tt cutom oc tooul t bu o bui bcomig moxpiv, wic coul pov to b t il ili t coi o tugglig mll-mium iztpi, wic om t bckbo o it-tiol commc.

Changes in trade fowsYt pit ti migly gtiv outlook, tutu o t t c i om oom gloom. cotiu v i tim o tu-moil, t c t bility to pt tocoomic, politicl gultoy pu.

Ctily t iculti o t cut itutio,t t big t i ct coquc o towtu, t ult o gul poctt mio t cgig t i t ow pymt tm. T volutio o t wit- t LC ll om gc it ubquttu wll t tp-by-tp iplcmt olocl bk om wt w bcomig iciglyittiol gm.

I o to xmi t vlopmt, lt ubgi t t bgii g. hitoiclly, lglyi cogitio o t ct tt globl t itoot t locl compy lvl, locl bk ply tcucil ol o ltioip mg , by i-tio, o o locl ik. Giv ti uivllkowlg o ti copot clit omticmkt, ti m pct .

I itio, t vt mjoity o xpot wk to u locl bk o t iuc o ocu-mt i o to b u tt t coig LC

t t itumt o coic w vli imy c to uppot ti wokig cpitl c. Locl bk w, to, ky ply it, coul cout o cu pictblvu-tm om ocumt-iuc, cckig cig.

T t ti tu. T icig globli-tio o commcil twok l to t i to pom-ic o op ccout (Oa) ttlmt mlypymt tm tt ot bck by bk-iu

Post crisis banking


18/23


Post crisis banking

LC. T cicy covi c o Oa tig,wic w tipultio- qui o ti-pty ivolvmt o , mt it populity gwpily mog tut coutpti, wifly mk-ig it t ttlmt tm o coic pcilly y ik w pciv to b o-t by -owigmkt liquiity.

suc if i pymt tm ct ctlyto -o c tyl t ctio bk ig moltt vou t mkig o lig ciio o iutili/globl bi. a ult mylocl bk - ot t w t t omoy w coc - lgly b mov omt globl t .

Ti pov to b b w o vl o.T iplcmt o locl bk l to ti bcom-ig igg om ti omtic clit b, tuig my o tm icpbl o ccutlyig t ik o ti omtic copot, lvig my copot witout locl cc to tt c olutio ty .

Working togetherO cou, t bc o mkt liquiity mtt w v ow com ull cicl. a gowig lck otut vio to ik m tt t titiolt itumt mkig combck t

vlu o t mkt kowlg log-tblicopot coctio po by locl bk i

icigly cogi pct. T cto,combi wit t tcmt o om o tglobl ply ollowig t cii, ult i tu to t locli, clo ltioip bkigmol o y go by.

Yt ti gowig mpi o t impotc ot locl i omtig o oubl-g woo locl bk. Wil it uqutiobly wok toti vtg by puttig tm bck w tyblog, t mjoity lck t cy cpbilitito um ti ol i t cloly moito pot-cit cuc viomt.

Giv t vy m o gultio, t

wokig cpitl cotit tt t mjoity oogitio ow c, my locl bk implylck bot t cl t ouc to ivt ipopity tt-o-t-t ik-mgmt tctio pocig ytm.

Wit i-ou vlopmt out o t qutio,o optio vilbl to locl bk i to t ito ptip wit globl povi o t c upply-ci mgmt olutio. Yt ucptip c tk my om, it i cucilto gt t igt o i it i to b uccul livl vlu.

Fo xmpl, titiol ptip mol,uc outoucig, of ot ll ty pp tob, c ult i mo gtiv t poitivom t locl bk ppctiv.

Wil outoucig c povi t -to-t pocig pltom tt , it uullyo littl o o fxibility to llow locl bk too tilo, mkt-pcic olutio, o comptwit t globl ply tt opt i ti ommkt.

Outoucig lo ct it colict,wic mk om mll ititutio u-tbly wy. rgl o t cotctulgmt btw t two pti ivolv, locl bk tt giv lg povi ccto ll o it omtic copot buiu t pottil ik o vtully loig tt

bui to it o-cll pt. itioloutoucig lo ly liv l xcgo vlu up ow t upply ci, o u qutly ot cg i tmo vic livy.

The collaborative ecosystemIt i o t o tt BnY Mllo voct o-compt, clit-ctic collbotiv ppocto locl-globl bk t c ptip.O uc ppoc, wic i lo mo ttgici tu t covtiol outoucig, i t

muctu-itibuto mol.

Certainly, local-global partnership is conducive tocreating strong networks, which in turn are thebest way to deliver greater value or end-clients


Global trade s

Global trade

bounces backWol t pig i it tp gi,ccoig to ittiol bkig uvy.But obl t c i till poblm

Globl t low bou cgio i 2010, ccoig to ttiol Cmb o Commc (I

Fic Globl suvy 2011, but igmt tt t i my low-icoti till c i iculti ccig t ic.

rpttiv om 210 bk i 94po to t uvy, wic k o io, wll ttitic, o t cut tlcp i ti pctiv couti. Tt out cocutiv ICC poll o it ki


19/23


v cl utig o tm. W kt qutio o you ticipt tt t Bl IIIquimt will cu you bk to -it t ic ttgy pouct? - 34 pct iict tt t w gultoy gimwoul mk ti icil ititutio coiit t ic ttgy. at t m tim, 57p ct p ct o pot w ttty w lckig uicit iomtio o tw gultio.

T gulto oul tp up ti ggmt

wit t iuty k bck to u ttt gultio o tck to civig wt ty it to ccompli, i ICC bkigcommiio cim K Cy .

ICC c ow tt, coty to tbli upiig w gultio, t ci low ik l-liquitig i tu.

I 2010, ICC vlop t Ittiol Cit (Lo) rgit o collctig pomct i t c. Ti pciclly xmi tult ik o t c itumt btw


Some regions, especially Arica, continued to havestressed markets, and the cost o trade nance alsoremained high in many parts o Asia and Latin America

Global trade survey

Globl t low bou co mygio i 2010, ccoig to t It-tiol Cmb o Commc (ICC)

Fic Globl suvy 2011, but ig-picigmt tt t i my low-icom cou-ti till c i iculti ccig oblt ic.

rpttiv om 210 bk i 94 coutipo to t uvy, wic k o tiopiio, wll ttitic, o t cut tc lcp i ti pctiv couti. Tiuvy, t out cocutiv ICC poll o it ki,git 30 p ct mo po t i tpviou y.

rcovy wolwi b iv by ict i not amic, euop ai, wll btw ai t t o t wol, cco-ig to t uvy. Ot gio, pcilly aic,cotiu to v t mkt, t coto t c lo mi ig i my pto ai Lti amic.

i my low-icom couti till vcoibl iculty ccig t c t obl cot, pticully o impot c.O poitiv vlopmt i tt t vg pico ltt o cit i lg mgig coomi llom 150-250 bi poit i 2009 to 70-150 bipoit i 2010.

Wt i ow i mo tgt u oouc, ocuig o t poo couti

mll--mium-iz tpi ou twol, i Pcl Lmy, icto-gl o tWol Ogitio (WO). Ty oulot b pyig t ig pic o t pi -gultio o t globl c iuty.

Mot pot, owv, g i t uvy commiio by t WO e xpt Goup o Fic to tck t vlopmt i t iuty

tt bui o t wol b igictlyimpovig ic t l qut o 2009. Mkti vl vc coomi quickly tu-ig to oml tig coitio, bot i tm oliquiity t vilbility o t c. T

ccptc o ik picig lo bcommo voubl.

T 2003-2010 sWIF t tc gu, wicw povi to ICC o xcluiv bi, co-m tt, ovll, t oww t i volumxpic i 2008 2009 i ow ov. Tw totl o 42.9 millio tctio giti 2010, ptig 5.81 p ct ic ov2009 volum, wic too t 40.5 millio (ou).

rult v b uv co gio, cco-ig to sWIF. ai-Pcic cotiu to git gt volum o t (impot) mg. alo,t gio wit t lgt volum ai-Pcic,euop-euozo not amic ow lguctutio t to wit mll volum.

aic ow t igt gowt btw 2009 2010, t 21.2 p ct, ollow by ai-Pcicwit 10.1 p ct Ctl Lti amicwit 9.7 p ct. howv, it w t lg volumo tctio i ai tt ov t upwig isWIF tc, t t a ic, w volumw mll.

rpot lo i ty wit i-cig m o bk-itmit ltt ocit, wic pticully vou by t pouc i vlopig couti wit wkititutio.

suvy pot w coc bout timpct o w gultoy iititiv, i pticult w quimt o t Bl Committ o

Bkig supviio ocumt - kow BlIII - o t cig o ittiol t.T b coc tt o-iz-t-ll

ppoc to gultio coul tt t ci mgig mkt pt o t.

Bk gu tt ul t by bk gultoimpo cpitl quimt o t c ipopotiotly ig coiig t ltivty o t mcim. T ul, ty y, octm to lock up u tt coul otwi b uto uppot t.

uvy vl tt pot otoly wy o t gultio, but lo o ot


20/23


Fic i t t t o Kuwiti li. cou-ty b pio i bui, vlopigbk, ivtmt ou tock mkt

log bo mot giol igbou.But wil pt itoy i jutii ouc

o tiol pi, toy Kuwit mut uvivi t igly comptitiv Gul bui ,w dubi, Bi, do riy v llcv out mjo ol i t icil viciuty.

a t cii o 2008-2009 wic ockvl wll-g Kuwiti ititutio to tco w butl mi o t to utt bot itl ytm oicil g ultiomi up to t igoou.

rcovy i ow wll uwy, t gov-mt i ovulig upvioy tuctu , butgiol comptitiv pu mi; buibou, Kuwit bk kow tt t bttl omkt will mi it. cicl cp-biliti vic t mtt mo t v.

i w t cotxt i wic Bug Bk,

o o t couty lig icil i titutio,ci to luc w c mgmt pouctlt utum, t covy i bui tui m o bkig vic gt pc.

im w to o copot cutom vic tt woul optimi clow bltm to mk t bt u o ti vu.

T w ytm o clit compivviw o t i u ig po itio. T i bl com-pi to tigt t cotol o ti c mk t mot o t liquiity ty ol. BugBk complmt ti wit t ull g opymt vic tt limit my mul tk

c b cutomi to mt t o iiviul bui clit.

Moov, t ytm llow cutom compy to t t pct wic tctio poc,cotol wic t c u t cmgmt cm t ppo-pit limit o t iz o tc-tio. a, o cou, t I ytmlp wit ccout miittiotc; t vic icopot iglvl o cuity, t t ittiolt.

But Bug Bk i ctily ott oly Kuwiti ititutio to v cogit to o mo c mgmt v-ic. ntiol Bk o Kuwit (nBK) o ot togt bk i t Mil et lovlop tog g o pouct, v umb o ot lig locl ply.

a comptitio i t Kuwiti mkt i-tii ov ct y wit t ty o mjooig m uc BnP Pib, hsBC Citibk. ltt i o o t w oig bkwit ull woll bk ig pc i Kuwit.

Ou c mgmt bui i pt ot Globl ctio svic iviio, wic

Cash management in Kuwait

As business rebounds, Kuwaitsbankers know that the battle ormarket share will remain intense

AbdulWahab Al-Roshood, dir

o the treasury department

Kuwait Finance House

Kuwiti bk mog t mot tut i tgio. Tt i wy ty gig up i tmo tcicl cpbiliti vic t.PAUL MELLY pot

Kuwaiti bankersengage the uture


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pcili i itmit-ig wokig cpitl low ocopot public ctoititutio, xpli sjysti mgig icto otuy t olutio ot Mil et Pkit giol o c m-gmt nm sl,icto o globl tctiovic o Kuwit.

h y tt c mgmt i itglpt o t copot vic pckg o byll bk. Fo oig bk, it i utibl pictbl ouc o vu, wic lo ct

co llig oppotuiti lik to cit po-uct. i bui i ll t mo impott itbig copot c low toug t bkigytm tu mitigt cit ik.

c mgmt bui t Citibkboly iclu g o pymt pouct, -civbl mgmt olutio, uit o liquiitymgmt ivtmt oig icluigpoolig tgt blcig opitictw-wiig bkig pltom... tt ocu oli tctig cpbiliti, xplisti sl.

aitiol ct c mgmt pouctlo iclu ou woll c bui pltom uc uyViio wic povitu wit globl viw o ti c blc,bt ivtmt poitio o timly c-cut ciio mkig.

My bui cotiu to ly o titiolc mgmt tciqu, xpli abu lW-b al-rooo, icto o t tuy pt-mt t Kuwit Fic hou (KFh), wic io o t wol lgt Ilmic bk . Kuwitiititutio uully k bic quimt i tc mgmt cto, uc comptitiv -tu miiml ik, i itio to big blto liquii t c i qui, ot to mtiobig bl to motgg ivtmt itumt it o icig i.

howv, sti sl pot tt t ilo gowig m o mo opitict

Cash management in Kuwait

Kuwait Liberation Tower

vic compi xp ti it-tiol ctivity k to tmli timoy low.

a copot xp i ti iz o go-gpic c, o implmt cot-cuttig m-u, t immit t tp i to implmt ti bkig pltom mgti pymt civbl co multiplcouti uig ti poc. Txt tp i to tmli t pybl cycl bymovig ll pymt to uppli t to pticul t i t mot, o to mkc fow m mo pictbl. a,lly, t pocig o civbl pybl gt optimi, copot tu- tt lookig o c yil o tixc blc tu ct.

a Kuwit icil ituctui lo big upg to mt t o mo coomy ivtmt cul-tu. Cqu clig i till mul poc-, but my ot vic ow lglylctoic.

Kuwit o o t mot vlop i-tuctu i t gio, ic Kuwiti mct by tu, y al-rooo. hcit t p wit wic pot poitf ty v b ouc xmpl

o t cicy o t pymt t ytm.

KFh itl, o o t m-jo itit utio, vc-pymt ytm tt wo

w om Citibk two yuig.I itio, Kuwiti bk y-

tm coi to b mogt mot vlop i t gio, i, t wol. Ty o- b o c mgmt,wic i vit by t p iwic pot poit octy ouc. Fo xmpl,Kuwit ctly wit tlgt moy t poituig t amii gt tt i-

clu bout 1,200,000 bk cco ligt mgi o o. KFh i kvig vc -pymt yllow it to civ w i ttwo cocutiv y om Citi B

Kuwit lwy b giititiv to vlop it icilicl ytm bk tttt vlopmt i t t il, uwic u ccut cu ti tcology up it coui ot ittiol bk, wt by t low umb o ckigcomp to ittiol bkrooo.

Hacking threats mot pomit tt cig ptitiv ckig ttmpt

vc tco logy ; uc t t ou bcu ty ictly i mpct tio o t bkig cto.

at tiol lvl, Kuwit cli goig toug volutiopot sti sl.

Ctl Bk o Kuwit (Cout ti rGs pltom i 2004tm i kow KassIP, wic Kuwit automt sttlmt sIt-pticipt Pymt; it cotiuou pocig ttltctio-by-tctio bi ot , t i o limit o

tctio, ti ytm lo povlu py mt.I itio, t t

uully o low-vlu, ig-volumtio uc POs, aM cig tctio lo go tougttlmt ytm.

CBK i lo tuyig t po itoucig sWIFnt Filacwoul llow o bulk t o pybtw bk toug t sWIFIt i im t tmliig t poy t.

Kuwaits nancial inrastructure ibeing upgraded to meet the need

modern economy and investment c

Nadeem Saleh, director o globaltransaction services or Ku wait

Sanjay Sethi managing

director o treasury and trade

solutions or the Middle East

and Pakistan and regional

head o cash management


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CashAndTradeMagazine May June Issue9

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Transcript of CashAndTradeMagazine May June Issue9