Gulf Arab banks, long trailing international lenders in managing bond sales in the region, are hiring from their global competitors and looking to partner with them in an effort to build fee income.
With their experience, history in the region, greater ability to lend and access to global investors, international banks such as HSBC Holdings and Standard Chartered ]regularly top the Gulf’s bond league tables, a list that ranks banks by the amount of money they helped clients raise. Still, regional lenders are showing gains: Samba Financial Group climbed to Number 8 last year from 13th in 2009 and National Bank of Abu Dhabi moved up two places to Number 9, according to data compiled by Bloomberg.
Even as the value of bond sales fell 24 percent last year in the region, Gulf bankers say they have progressed by building trading in the secondary market necessary to support prices after the securities are sold. An announcement last month by the United Arab Emirates to borrow money may also be a step toward creating a domestic bond market, where local banks would likely be favored by Gulf governments over foreign competitors.
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