A New Era of Global Islamic Investment Banking |
| This interview was conducted by Gulf Business |
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Mark Hanson, Chief Executive of Manama-based Global Banking Corporation (GBCORP) tells Sunil Kumar Singh about the ambitious plans of the recently launched Islamic investment bank. |
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Could you please give a brief insight of the mission and plans of GBCORP? |
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GBCORP, incorporated in Bahrain as an investment bank, commenced operations in June last year with an issued capital of $250 million and an authorised capital of $500 million. With an aim to become a global Islamic investment bank with a strong base in the GCC, we want to cater to the needs of investors scouting for investment opportunities not only in the GCC but outside the region as well by offering advisory services in corporate finance, capital markets and Portfolio Management Services. In Bahrain, we’re having strength of 56 staff and our main business focus is on private equity, asset management, venture capital and real estate and infrastructural development. |
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With the establishment of more new Islamic banks in almost all GCC countries, don't you think that competition is growing fiercer? In this scenario, how will the bank position itself? |
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Yes, there is competition but the demand for investment banking is also on the rise. Our goal is not to become just another Islamic investment bank in the GCC, but to venture out and formulate strategic alliances with financial partners in Europe, Asia and other parts of the world. We’re targeting a wider customer base incorporating individuals, business families, corporate as well as government clients both in the region as well as outside. |
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How do you differentiate yourself from other Islamic investment banks in the region? |
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The differentiating factor is our vision in the way we structure our diversified products, in addition to our strategic affiliates all over the world. Our human resource are with excellent skill sets with diverse nationalities. |
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Which are the markets you’re targeting for expansion? |
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The GCC economies are booming, largely due to the oil windfall, and are having good opportunities for the growth of financial market, including investment banking. Therefore, apart from Bahrain, we’re planning to target markets in GCC. Outside the GCC and the Middle East & North Africa region, we’re targeting the UK in Europe, and Hong Kong, China and Malaysia in the Asia-Pacific region. These markets are also on the upward curve and offer good investment opportunities. GBCORP also plan to venture into the US that is possibly slipping into recession and therefore investors are looking for opportunities outside the US market. |
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As the bank has said it will have a product portfolio that will have a global appeal across religious boundaries and not be limited by geographic factors. Could you give some details about your strategy? |
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In the case of the US, we may go for setting up state funds by buying state assets. In the case of East Asia or South East Asia, however, the strategies will be different. Nevertheless, in every market we’ll have a strategic partner as this would give a better tool to understand the local laws and customs. In the case of the GCC, investors in the region have an increasing appetite for private equity investment and we’ll target family-owned businesses and private companies seeking outside investors or major capital investment. Similarly, the GCC real estate market has an overall value of ongoing and planned real estate development worth approximately $90 billion that presents a good opportunity for us to participate in real estate ventures through Special Purpose Vehicles (SPVs). Further, we plan to tap the high net worth individuals and Takaful companies as the asset management sector in the region is experiencing high growth and presents an opportunity for significant development. |
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Does GBCORP have plans to set up offices in other GCC countries? |
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Not at this stage, but it’s definitely on our radar. The decision will be entirely driven by business opportunities. |
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What are the recent products have you launched or are planning to launch? |
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Last year, we had launched a real estate fund. This year we may probably launch a mixture of private equity, asset management and real estate funds. |
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What are your future plans? |
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| We’ll continue to grow our core business and our first priority is to firmly base ourselves in the region and then branch out to Europe and Asian markets. |
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