Barclays plans to use Emirates as base to expand its operations in the region

United Kingdom-based Barclays Bank, which has provided corporate services in the UAE for more than 30 years, intends to use the country as a base for expansion. The plans include opening more branches to expand its retail banking business. In an interview Farhan Waheed, Head of Retail Distribution and Investment at Barclays UAE, tells Emirates Business about the growth strategy.


Barclays has been involved in corporate banking in the UAE for decades but has recently returned to retail business in the country. Why did it decide to return to retail sector?

Barclays has been in this market, as you rightly said, for more than 30 years. We historically concentrated on the commercial side. In 2006, we launched mortgage services in this market and because of the strategic significance of the UAE it was logical to provide world-class services to retail clients.

With the success of the mortgage services, we announced a complete full-fledged retail consumer banking in 2007. The commitment we have towards our customers can be understood by the fact that we have a regional corporate office set-up in Dubai, which looks after 14 countries across the Asia-Pacific, North Africa and the Middle East.

Opening the Abu Dhabi flagship branch was symbolically important as we wanted to enter the UAE's capital first. Very soon we will open a branch in Dubai.

What is the scale of your corporate presence in the UAE in particular and the region in general?

We are one of the top players in corporate banking in the UAE. We have been here since the beginning of the UAE federation so we have a strong foothold in commercial banking here.

What is your plan for the UAE? Do you intend to expand your operations and open more branches?

Our strategy as a global bank is to build our customer base. We use a combination of channels that will definitely include more branches. The rest of the channels will also be looked at and we are currently actively working on some key initiatives such as enhancing our reach through our ATM network. We have become the first bank in the GCC to introduce biometric ATM machines that use fingerprint recognition.

How is the economic boom in the UAE and other Gulf states boosting your performance and the banking sector in general?

The whole region is well placed economically and it's an environment that is conducive to doing business in terms of growth and stability. It is enabling all businesses and sectors, whether it be the financial or non-financial sector, to grow. It is a very conducive environment.

How have you been affected by rising inflation rates in the UAE and elsewhere?

Inflation is a complex subject, you hear various views when you talk to different people. When you look at Central Bank rates for the dirham you see that inflation here is not interest rate-led. Interest rates are under control so the cost of borrowing is not high. Here it is primarily import-led inflation, which to some extent has affected the man on the street.

Are high oil prices and the weaker dollar affecting the banking sector?

My view is that increasing oil prices have actually had a positive impact on the UAE market. The average price last year was about $70 but now it has crossed $140 per barrel. Because of that, yes, there will be some inflationary pressure in the rest of the world, but for this region, and the UAE, I think it means additional wealth and stronger fundamentals.

Do you expect any credit crisis in the UAE similar to the US sub-prime crunch considering the fact that banks here are lavishing credit on the real estate and other sectors?

As far as the UAE is concerned, it is pretty much insulated from any effect for the time being.

Do you think the UAE can accommodate more banks?

I think there is choice for the customer, there are lots of options in a place like the UAE. Given the growth and the influx of new residents, yes, there is room for more banks. The population has increased by roughly 25 per cent in the past 18 months. The greater need and demand would be for enhancing and improving the quality of products.

How did your bank perform last year and what do you expect to see this year?

Last year we gained a lot of momentum. We opened up sales points for our customers, we set up new services and branches and we launched new products such as credit cards. The performance and growth were encouraging last year and we expect to see the same this year and beyond.