Arthur D. Little report highlights strategies for UAE banks to build a future-proof business

Arthur D. Little report highlights strategies for UAE banks to build a future-proof business

- CIB is about to face a new perfect storm on the back of increasing inflation, reduced capital availability and increased competition

- 15 of the 20 top banks in MENA have more than 50% of their revenues stemming from CIB: ensuring a stable performance of this LoB will be essential for them

Dubai, UAE: Arthur D. Little (ADL) has published a new Viewpoint, “Pursuing Excellence in Corporate Banking” exploring challenges and opportunities that illustrate the lasting and even increasing importance of the corporate segment for banks in the United Arab Emirates (UAE). The Viewpoint reviews the impacts of recent disruptions and expected, and explores options for banks to strengthen and grow their corporate and investment banking (CIB) business.

CIB in the UAE represents close to $635 Bn. assets and $15 Bn. revenue. CIB assets are around 5 times the ones of retail banking. According to the report, regional banks however focus their external communication primarily on the consumer segment, whether it is fintech, strategy, digital transformation, products, or applications. Further, corporate banking is often perceived as a specialist area and, as a result, innovation is frequently thought to be focused in the retail banking sector. The report outlines an increasingly competitive, fast-evolving,