The Banking Executive Magazine - August 2023 Issue

Arab Banks ANALYSIS: Total assets reflect the scale and ex- pansiveness of a bank's operations. With Qatar National Bank and First Abu Dhabi Bank leading the charge, it's evident that Arab banks are not just growing locally but are expand- ing their global footprint. Their sig- nificant asset base provides them with the leverage to invest in new ventures, technologies, and markets. It's a clear indication of the trust these banks have garnered from their customers and the vast network they've built over the years. ANALYSIS: The country-wise representation of- fers a macro view of the Arab bank- ing landscape. The UAE and Saudi Arabia, with their significant number of banks and voluminous assets, con- tinue to be the powerhouses of Arab banking. Their leadership, however, does not overshadow the pivotal roles of countries like Qatar, Kuwait, and Bahrain. The presence of banks from North Africa adds to the sector's diversity, proving that excellence in banking is a region-wide phenome- non in the Arab world. CONCLUSION: The data for 2022 underscores the Arab banking sector's significant role in the global financial ecosystem. With a combined substantial Tier 1 capital and assets, these institutions highlight their commitment to main- taining financial stability and meet- ing regulatory benchmarks. Regionally, the sector's performance is indicative of strategic decisions to diversify portfolios and mitigate risks amidst global economic challenges. The emphasis on core financial met- rics, such as return on assets and re- turn on capital, further showcases the sector's operational efficiency. As global economic dynamics continue to evolve, the Arab banking sector's resilience, growth trajectory, and adaptability will remain crucial. This report provides a comprehensive snapshot of the current state, serving as a foundation for future analyses and strategic decision-making. ISSUE 176 AUGUST 2023 the BANKING EXECUTIVE 17 Country Representation of the Top Arab Banks: Country UAE Saudi Arabia Qatar Kuwait Oman Bahrain Morocco Jordan Egypt Lebanon Tunisia Number of Banks 15 10 8 7 6 6 5 4 4 2 2 Total Assets (in $m) 928,020 901,752 554,608 327,865 79,809 112,127 169,768 89,861 72,966 52,722 14,099