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Advertisers Bank of Bahrain and Kuwait B.S.C.
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Al-Ahli Commercial Bank embraces the New Millennium
Al-Ahli Commercial Bank BSC (Al-Ahli) of Bahrain recently announced its intention to merge with the United Bank of Kuwait (UBK). With financial markets gearing up for the challenges of the 21st century, the two companies have joined with the intention to create a much more powerful platform from which to compete in a fast developing market.
“The coming period will usher a phase of deregulation in the banking sector in the Middle East and we want to be strongly placed to take advantage of the opportunities which will arise,” said Michael Fuller, Al-Ahli’s Chief Executive.
Established in the UK in 1966, UBK is regulated by the Financial Services Authority and Imro. Its business is substantially carried out from London. It also has a branch in New York and operates a customer services office in Kuwait and a representative office in Dubai.
UBK’s main activities are commercial banking and wealth management. The former comprises commercial lending and treasury businesses. The latter comprises private banking, asset management (primarily through its wholly owned subsidiary UBK Asset Management [“UBKAM”]), and Islamic Banking.
Subject to the approval of shareholders and the appropriate regulatory authorities, the merger will be effected by the formation of a publicly quoted offshore banking unit in Bahrain, of which Al-Ahli and UBK will become subsidiaries. Both banks will retain their current names and corporate identities and a new name for the holding bank will be announced in due time.
Significant benefits to customers, shareholders and staff will arise as the post-merger group expands its activities in Bahrain, the UK and the Gulf region. “These benefits are driven by the large, identified synergies in products and markets between the two banks and by the regional and international growth opportunities which exist,” Mr. Fuller said.
Al-Ahli Commercial Bank commenced operations in Bahrain in December 1978. From a handful of staff, it has grown to employ more than 240 people in nine branches in all the country’s major business and residential areas. In the 1990s, the Bank was one of the fastest growing commercial banks in Bahrain and a pioneer in introducing the latest banking services for its customers.
Over the last few years, the Bank has emerged as a leading player in harnessing advanced technology and, in November 1999, successfully launched the country’s first Internet Banking facility. Al-Ahli is only the third financial organization in the region to offer on-line banking services 24-hours a day.
“Al-Ahli Bank is embracing the challenges the new millennium brings and will continue to work hard at creating growth opportunities for the Bank through strategic partnerships both locally and internationally. In 2000, we will also continue to find diverse ways of providing our customers with the latest banking products and services to match their needs,” added Mr. Fuller.
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Table of Contents The Al Khalifa Dynasty - Ruling Bahrain Since 1783 |
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“The move will strengthen both banks, in terms of resources and market penetration, giving a much-improved competitive position. We have a deep commitment to Bahrain and the development will reinforce the country’s reputation as the leading financial center in the Gulf,” said Mr. Fuller.
It is the degree to which the benefits from the considerable complementary features of Al-Ahli and UBK are seen to dovetail, which has made clear the advantages to be gained from the merger, say the chairmen of the two banks. On the one hand, there are the strong retail, corporate, treasury and commercial banking interests of Al-Ahli and, on the other, the quality private, investment and commercial banking operations of United Bank of Kuwait.
“We are meeting a challenge for Arab Banks in the new millennium to modernize banking facilities and accelerate ahead of the rest of the banking world. The new technology has given us a demonstrable edge in terms of improving customer service and simplifying banking transactions,” said Mr. Fuller.