Deutsche Bank yesterday announced that it had recorded a 100 per cent annual increase in its foreign exchange trading volumes year on year since it offered forex as an asset class to its clients in the Middle East.
Recently, Deutsche Bank for the fourth year running secured the lead position in Euromoney's annual forex survey as the largest foreign exchange bank by volume. Its share of global turnover broke the 20 per cent barrier for the first time this year, to record a 21.7 per cent global market share.
The bank was also voted as the top provider of FX services globally.
The global foreign exchange market continues to grow at an accelerated pace, with reported turnover rising by 41 per cent in 2007 to US$175 trillion (Dh642trn) from US$125trn in 2006. Growth in reported turnover in the Middle East is estimated at 42 per cent annually and is poised to increase.
Ricardo Honegger, Head of Global Markets for the Mena, said: "Deutsche Bank is the market leader in foreign exchange in the region, and our most notable success has been our ability to achieve a high level of penetration across the full spectrum of the Middle East client-base."
Abdulkarim Alkassem, Director – Global Markets at Deutsche Bank, said: "The growth of our foreign exchange business in the Middle East is largely due to Deutsche Bank's FX products that are innovative and provide low volatility and high return, and are coupled with active and continued risk management. In addition, the appetite of investors in the region for asset classes that allow them to diversify and hedge at the same time has grown, and FX is high on their investment agendas."
The bank has executed around 20 per cent of all FX transactions involving Middle Eastern currencies during 2007-2008.
In addition, Deutsche Bank holds leading position in Mena with 38 per cent of the total FX market share.
Deutsche Bank, Germany's biggest bank, said it created a nine-person committee to win business with sovereign wealth funds.
The global internal steering committee is composed of senior management from divisions including global markets and banking as well as asset and private wealth management, Deutsche Bank London-based spokeswoman Oonagh Baerveldt said yesterday. The group will be chaired by Caio Koch-Weser, vice chairman of Frankfurt- based Deutsche Bank.
Deutsche Bank, Citigroup and Lehman Brothers Holdings are among companies shifting bankers to the Middle East and Asia to tap growing demand from state-run investment funds. Sovereign wealth funds have amassed $3.2 trillion (Dh11.7trn) in assets, a figure that may rise fourfold to $12trn by 2015.