First Gulf Bank
Encyclopedia
First Gulf Bank is a publicly owned bank
headquartered in Abu Dhabi
, United Arab Emirates
and owned by several sons of the late Sheikh Zayed bin Sultan Al Nahyan. It was established in 1979 in Ajman
and provides financial services
across the UAE, with a wide distribution network of branches in different business & industrial areas such as Abu Dhabi
, Dubai
, Sharjah, Ajman, and Al Ain and is currently one of the fastest growing banks in the region. Within the UAE, it is also often known by its Arabic name Bank Al Khaleej Al Awal.
The bank offers a variety of financial services in corporate banking
, treasury & investments, merchant banking and retail banking
services. The bank focuses on providing financial services and solutions to different target groups in the market including private & public institutions, retail customers as well as high net worth individuals and investors in the country and the region as a whole.
After a rocky start, FGB was rescued by prominent Abu Dhabi-based investors in 1998 and then radically overhauled its senior management team in 2000. Many of today’s top management team, such as the CEO and the managing director, are from Citibank
.
as well as the Sheikh Khalifa Excellence Award in the Emirate of Abu Dhabi
. After raising its share capital in 2004 by issuing convertible bonds to four strategic partners to raise about AED 1 billion, FGB will double its equity capital in 2005 with a rights issue for existing shareholders. Banks in the United Arab Emirates
benefited greatly from the oil
price increases in 2005. FGB's profit growth rate is currently the highest among banks in the country. FGB recently come up with a 500 million Dirham rights issue for its shareholders and its 2005 profit for the first 9 months of the year has shot up to an astounding 750 million Dirhams. The bank recently declared a stock split
for greater liquidity, a greater volume of trades and more access to some smaller investors.
window to service the growing market for Islamic banking customers. The bank's current CEO has also voiced ambitions to expand the banks' operations into other GCC countries and push into Asia
as well. In the summer of 2007, FGB opened a rep. office in Singapore to take advantage of the growing Asian market.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
headquartered in Abu Dhabi
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...
, United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
and owned by several sons of the late Sheikh Zayed bin Sultan Al Nahyan. It was established in 1979 in Ajman
Ajman
Ajman , also spelt Ujman, is one of the seven emirates constituting the United Arab Emirates . With an area of just 260 square kilometres , Ajman is the smallest emirate by area...
and provides financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
across the UAE, with a wide distribution network of branches in different business & industrial areas such as Abu Dhabi
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...
, Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
, Sharjah, Ajman, and Al Ain and is currently one of the fastest growing banks in the region. Within the UAE, it is also often known by its Arabic name Bank Al Khaleej Al Awal.
The bank offers a variety of financial services in corporate banking
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
, treasury & investments, merchant banking and retail banking
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
services. The bank focuses on providing financial services and solutions to different target groups in the market including private & public institutions, retail customers as well as high net worth individuals and investors in the country and the region as a whole.
After a rocky start, FGB was rescued by prominent Abu Dhabi-based investors in 1998 and then radically overhauled its senior management team in 2000. Many of today’s top management team, such as the CEO and the managing director, are from Citibank
Citibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...
.
Fastest-growing bank in the Middle East
Managing director, Abdulhamid Saeed, attributes the bank’s “tremendous growth” in part to the UAE’s benign economic environment and consequent explosive demand for credit. The bank has also won the Dubai Quality Award in the Emirate of DubaiDubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
as well as the Sheikh Khalifa Excellence Award in the Emirate of Abu Dhabi
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...
. After raising its share capital in 2004 by issuing convertible bonds to four strategic partners to raise about AED 1 billion, FGB will double its equity capital in 2005 with a rights issue for existing shareholders. Banks in the United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
benefited greatly from the oil
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....
price increases in 2005. FGB's profit growth rate is currently the highest among banks in the country. FGB recently come up with a 500 million Dirham rights issue for its shareholders and its 2005 profit for the first 9 months of the year has shot up to an astounding 750 million Dirhams. The bank recently declared a stock split
Stock split
A stock split or stock divide increases the number of shares in a public company. The price is adjusted such that the before and after market capitalization of the company remains the same and dilution does not occur. Options and warrants are included....
for greater liquidity, a greater volume of trades and more access to some smaller investors.
Overseas expansion
First Gulf Bank recently launched an Islamic bankingIslamic banking
Islamic banking is banking or banking activity that is consistent with the principles of Islamic law and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees for loans of money...
window to service the growing market for Islamic banking customers. The bank's current CEO has also voiced ambitions to expand the banks' operations into other GCC countries and push into Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
as well. In the summer of 2007, FGB opened a rep. office in Singapore to take advantage of the growing Asian market.
Key people
- HH Sheikh Hazza bin Zayed Al NahyanHazza bin Zayed bin Sultan Al NahyanHH Sheikh Hazza bin Zayed Al Nahyan is a United Arab Emirati banker. In 2006, he was elected as Chairman of First Gulf Bank, while his brother Tahnoon was elected as vice-chairman. Sheikh Hazza himself is the son of Sheikh Zayed bin Sultan Al Nahyan, the late emir of Abu Dhabi emirate, and the...
— Chairman - HH Sheikh Tahnoon Bin Zayed Al Nahyan — Vice-Chairman
- Abdulhamid M. Saeed — Managing Director
- Andre SayeghAndre SayeghAndre Sayegh is the current Chief Executive Officer of First Gulf Bank. Sayegh was appointed in late February 2006 by the newly elected board of directors. Prior to becoming CEO, he was the Chief Operating Officer of FGB. An ex-employee of Citibank for over 18 years, Sayegh has been instrumental...
— Chief Executive Officer