Foreign banks in the UAE have been overtaken for the first time by a local bank in syndication deals.

Emirates NBD, which arranged $14.7 billion in nine deals in the first four months of 2008, has emerged on top. It is now set to arrange syndicated loans worth $10 billion during the second half.

Abdul Wahed Al Fahim, general manager of Wholesale Banking at ENBD, said that the bank is already working on confirmed syndications, which will be finalised during the next six months for a total value of $10bn.

"There are also a number of unconfirmed syndication deals. The ENBD topped the UAE banking sector. Traditionally, international banks were leading the corporate syndication deals in the UAE and this is the first time that a local bank leads in syndications," he told Emirates Business.

"Despite the impact of the credit crunch and tightness in liquidity in the West, the response of international banks to participate in our syndications was satisfactory.

"Also, we received very good response from GCC and Asian banks, which proves that the appetite in the regional syndication market is still strong," he said.

Al Fahim also expected that profits of the ENBD Wholesale Banking sector would grow by 30 per cent in 2008 due to the boom in the real estate sector in the UAE and the GCC. "We should acknowledge that the real estate sector is the major driver of progress in the current stage. The sector along with feeder industries including construction, cement, steel and transportation companies, and even interior design companies, are growing at high rates in the region and this is a major driver for growth in wholesale banking operations."

Al Fahim highlighted ENBD's strategy for organic and inorganic expansion, with a special focus on the GCC and Asian markets. "We've already applied for licences to open new 10 branches in Saudi Arabia and we are in negotiations with Saudi authorities to acquire the licences in the near future.

"We have a branch in Riyadh and our operations there are very successful. We are also opening a branch in China very soon."