Two More Global Banks Enter DIFC

by Phillip Morton, Investors Offshore.com

04 September 2007

Two new prominent international banks - Japan's Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) and Germany's Commerzbank - have been granted licences by the Dubai International Financial Centre to begin operations in Dubai, and expand their reach in the Middle East region.

BTMU's new Dubai office will liaise with its existing BTMU Bahrain Branch and four Representative Offices in the Middle East (Abu Dhabi, Istanbul, Cairo, Tehran), as well as with the Japan Desk of the National Bank of Abu Dhabi, located in Dubai. The new office will also access the network of 73 BTMU offices in Europe, Africa and Asia, areas which have deep financial ties with the Middle East, and which provide support and expertise for BTMU’s customers in the region.

Nasser Al Shaali, Chief Executive Officer, DIFC Authority, commented: “The long and fruitful history of capital flows between the markets of East Asia and the Middle East continues with the opening of BTMU’s office at the DIFC. BTMU’s arrival here will contribute immensely to the corporate, government and project financing relationship between Japan and the wider Gulf region.”

Hideki Gohbara, General Manager of the BTMU Dubai office, added: “The opening of an office at the DIFC, which has already attracted a number of international financial institutions and investors, will allow us to expand on new opportunities in this dynamic market as well as meet the growing needs of our existing customers."

BTMU, a commercial bank, forms the core part of Mitsubishi UFJ Financial Group (MUFG). MUFG is Japan’s leading financial group, with 1,261 domestic and 429 overseas offices. It is ranked by Bloomberg as the world’s 10th largest in aggregate market value.

Meanwhile, Commerzbank’s 21st branch outside its home country is intended to give the bank a gateway into the Middle East finance sector and to provide the region with access to investment markets in Europe. It will also serve as a financial partner for its German and Arab customers’ international trade relationships.

The new branch will provide a wide range of banking services for both corporate customers and institutional investors within the Middle East. These will include structured investment products, derivatives, trade finance and transaction banking, as well as asset management via Cominvest. Commerzbank, Germany's second largest bank, will also offer access to the region’s first specialist international bank for real estate, providing the full range of structured real estate financing services through its Eurohypo subsidiary.

“The addition of Commerzbank to the DIFC’s growing number of eminent financial institutions will help strengthen ties between this region and the markets of Europe. Commerzbank is a respected and influential force in global banking, and its presence in the Middle East will significantly invigorate the sector here," observed Al Shaali.

"I look forward to the challenge of setting up in a new market for Commerzbank Group with the support of a highly motivated team. I can promise all prospective clients that we will establish a centre of professional excellence for all our clients in the region. We look forward to welcoming you," Ralph Nitzgen, General Manager, Commerzbank, added.

Martin Blessing, the member of Commerzbank’s Board of Managing Directors, responsible for the Mittelstand (SME) segment, highlighted that Nitzgen has represented Commerzbank in the Middle East region for more than 15 years, and so was seen as the natural choice to head up the bank’s new branch.

“Along with his experience in running our representative office in Bahrain, Ralph Nitzgen has extensive knowledge of the business environment and Gulf region,” Blessing said. “I firmly believe that the new branch will help capture the huge opportunities available in the Middle East for the benefit of our clients and the Commerzbank Group," he concluded.

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