Open The Gates

What is the significance of the Qatar branch for First Gulf Bank (FGB)?

FGB has an official strategy to continue to develop its business, both locally and internationally, as well as to expand the franchises’ products and services. As part of that, Qatar has a lot of good value and offers us an important platform. Being a UAE-based bank, the GCC provides us with a strategic geographic gateway for diversification and growth. Being the third-largest economy in the GCC, Qatar is a natural choice. With approximately $200 billion worth of GDP annually, Qatar has a big potential for growth in the next six to eight years. Having a branch here is important because of its volume of exports to the UAE, as well as to areas in the Far East, the Indian Subcontinent, and China. We have a big presence in these countries, so that branch would enable us to capture those trade flows. In addition to that, the country is expected to have a significant increase in local credit demand that would grant us a good share. Having a branch in Qatar is highly advantageous, as proven in the way we have performed over the last five years. We started as a representative office in June 2009, but in May 2011 we felt the need to establish a fully fledged wholesale branch. Since then, we have grown rapidly, and we are probably the most vibrant and fastest growing entity in the Qatar Financial Centre Regulatory Authority (QFCRA). We attribute our rapid growth to the support from local businesses, the banking community here, and from the QFCRA.

How would you characterize your position here in Qatar? What services do you offer?

We offer wholesale banking services, such as accepting deposits and providing and arranging credit facilities, in addition to arranging and advising on investments. Furthermore, we are one of the largest banks in the region, with an equity network base close to $8.5 billion. Based on that, we have been able to partner on some of the largest and most prominent transactions in the country. We have been invited to all these transactions, which the local banks have been leading. Our model has been that we partner with local banks instead of competing with them. Given our size, we have been able to participate and be a strong partner to the local banks.

How would you characterize the framework for foreign investors?

Currently, there is a good framework that has been developed and implemented, which includes the tax policy, immigration, customs, and labor regulation framework. The government has shown a good approach, whereby it quickly adapts to something if it notices it is missing; it has a dynamic thought process compared to many other economies. Here also lies the freedom to bring in and take out capital. There are no restrictions in terms of foreign currency exchange here, unlike many other countries. These are all investor-friendly things that are beneficial. However, the government is continuously trying to fill all the gaps.

What are the specific objectives for the Qatar branch of FGB in the next five years?

The economy should be growing very well, and our approach is basically to deepen our presence here. We have a large appetite for Qatari assets, so we are keen on deepening our relationship with our Qatari customers and supporting their growth by partnering with the banks. That is what we have done and what we want to continue doing.