A Middle East "superbank" with the financial clout to outperform local rivals in foreign markets will emerge within the next decade, says an executive at a Qatari bank who is trying to make such a scenario a reality. "We continue to look for other acquisition targets because we want to be a truly regional bank," said George Nasra, the managing director of the International Bank of Qatar (IBQ), adding that Saudi Arabia would be an obvious target.
Mr Nasra said the proposed superbank would do well to emulate Santander by using "serial acquisitions" to enter and dominate new markets around the Gulf during the next five to 10 years. He said while "local champions" had started to emerge in the Middle East, these banks lacked muscle compared with established rivals in the West. "While impressive in operations and growth rate, few are venturing outside the boundaries of their local marketplace to generate business," he said.
"Compared to their global counterparts, they still lack in size despite their impressive growth. "[Even] combining the 10 largest banks in the Middle East will not match some international players." However, Mr Nasra said legislation in Middle Eastern markets restricted that possibility. "Unfortunately, regulation is the main obstacle," he said. His comments sounded an uncharacteristically bold tone for the Qatari banking sector, which has focused on local markets rather than expanding internationally.
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