Arab banks see Middle East opportunities as some global banks scale back

Reuters
April 21, 2014
Suleiman Al-Khalidi

Big Arab banks with money to spend are expanding across the Middle East in markets such as Egypt and Iraq, as they take advantage of a retreat from some areas by major international rivals, senior Arab bankers say.

Since 2011, some global banks have downsized some of their businesses in the region to cut costs, help shore up capital and focus on their core markets, while competition from local banks has intensified.

“It represents an opportunity for Arab banks with high capital adequacy who are interested in expanding and diversifying regionally,” said Nemeh Sabbagh, chief executive of top Jordanian lender Arab Bank, speaking on the sidelines of an Arab banking meeting held in Amman at the weekend. Arab Bank established a regional network decades ago.

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