It was a "baptism of fire" for Ahmed Abdelaal when he took the reins of Mashreq, one of the oldest family-controlled financial institutions in Dubai, from its chief executive of almost three decades, Abdulaziz Al Ghurair, in 2019.
As if the intensifying trade war between the US and China was not enough to worry banks amid disruption to businesses and slowing economic growth, Covid-19 struck in 2020 and everything that could go wrong did go wrong for companies, financial institutions and the economy at large.
Mr Abdelaal, in his first role as chief executive of a bank, found himself diving headfirst into crisis management mode.
Ensuring the safety of more than 6,000 staff in markets across the Middle East, Asia and Europe, and serving customers as best as the bank could amid lockdowns was a multi-front fight and an all-consuming task for the top executive in his early fifties.
“In the beginning, [2020] was a great year and everything was going well. But all of a sudden, you have the trade war between China and the US [intensifying] and then the year culminating in [the] pandemic and it was really, really challenging,” Mr Abdelaal, a banking veteran of 30 years, tells The National.
Banking veteran
An alumnus of both London Business School and Harvard Business School, he joined Mashreq after a 10-year stint at HSBC Middle East, where his last role was to lead the corporate banking franchise in the broader Middle East, North Africa and Turkey region for Europe’s biggest bank.
He moved to Mashreq as group head of corporate and investment banking in November 2017, allowing him time to become familiar with the culture, understand the business dynamics and develop chemistry with Mr Al Ghurair, who was instrumental in building up the lender to become one of the fastest-growing financial institutions in the region.
“One fine day, he [Mr Al Ghurair] came and said: 'I would like you to lead the next phase of growth for Mashreq,' and it came to me as a surprise, because I didn't expect it to happen that soon,” he says.
“I didn’t think that it was on the cards [that soon] when he had hired me to lead the corporate and investment banking platform.”
Changing the guard
The changing of the guard at one of Dubai’s oldest financial institutions took place in October 2019 when Mr Al Ghurair became chairman of the board of the Al Ghurair family-controlled lender, leaving the bank's day-to-day affairs to Mr Abdelaal.
“We had planned this transition some time ago and Ahmed [Abdelaal] was brought on to the leadership team … with that in mind,” Mr Al Ghurair said at the time.
But filling the shoes of someone like Mr Al Ghurair, who apart from being one of the most recognised bankers in the Middle East, was chairman of the UAE Banks Federation, the former speaker of the Federal National Council, as well as a well-versed businessman with a disciplined mentality, was a daunting prospect, Mr Abdelaal says.
“He is multifaceted, let me put it this way, so taking over from him was a challenge, but also, it was an opportunity because … [he] agreed to extend help to someone like me who was doing his first CEO job,” he says.
The fact that Mr Al Ghurair knew the organisation and its DNA better than anyone else helped Mr Abdelaal navigate the typical tests facing a new corporate leader, be they managerial or board room pressure.
“So, as much as it was a challenge to fill his shoes, it was also an opportunity for me to leverage that to my advantage to the max,” he says.
The journey of recovering from the shock of the pandemic to transforming the bank into a next-generation, technologically advanced financial institution for the digital age was fraught with multiple challenges.
And no challenge was greater than the change of culture; a journey which, he says, continues.
“You can change the rules, policies and procedures, and you can change people and KPIs [key performance indicators], but if you don't change the culture that comes with it, nothing works,” Mr Abdelaal says.
Over the past four years, the lender has embarked on the journey to “change the way we think down at the DNA level, to have client experience as the ultimate measure for everything that we do”, he adds.
A people person
The first order of the business once he took the helm was the town hall meeting, where Mr Abdelaal also appointed himself as Mashreq’s chief people officer and the chief future officer.
“I said [to the staff] that [the] number one priority in my mind is people and number two is client experience, and if we deliver on one and two, we can easily deliver on three, which is shareholder value,” he says.
He has also charted the future course of the legacy lender. The ultimate objective is to morph the institution into a banking as a service (BaaS) platform, essentially a bank for hire for third parties.
BaaS refers to a system that allows non-banking entities such as FinTech companies, start-ups, online retailers and even major corporations to leverage the infrastructure of a traditional bank to extend financial services to their customers without the need to hold a full banking licence.
They can offer services including opening of accounts, payment processing and loans, and branded credit cards through application programming interfaces (APIs) that can be integrated with other companies' systems.
More than just a bank
“Not a bank” is what Mashreq aims to be in five years, Mr Abdelaal says.
“I see [it] as a facilitator of financial services, or provider of financial services as a service rather than an interface for clients.”
Major telecoms operators and FinTechs, as well as online retailers and start-ups are looking to build their own financial platforms to capitalise on a fast-growing BaaS market.
The Middle East and Africa's BaaS market was valued at $66.14 billion last year and the industry’s aggregate revenue is expected to grow 7.4 per cent annually between 2024 and 2030, reaching more than $109 billion by the end of this decade, according to a report by Steller Market Research.
“What we are trying to do right now is to offer [that] rather than you having to do it from scratch, building infrastructure, having to [comply] with the regulatory requirements that are dynamically evolving by the minute, I will do that on your behalf, and you can enjoy the interface,” Mr Abdelaal says.
Future strategy
The bank’s recent partnership with the UAE’s home-grown retailer Noon and its non-resident Indian customers being able to open bank accounts with Indian lenders are examples of Mashreq’s growing BaaS ambitions.
“This is the role that we want to play: rather than competing, facilitating,” he says.
The bank is heavily investing in its digitisation agenda, and it is also open to mergers and acquisitions opportunities that support its wider strategy objectives, he adds.
Mashreq has already cut its bricks-and-mortar branch network from 34 to seven across the UAE, and Mr Abdelaal says the asset-light model “speaks the language of the future” and is the way to growth.
The bank has acquired four times the number of clients every year that it gained through its old bricks-and-mortar network.
“Last year, we onboarded more than 400,000 new clients, purely using our digital channels.”
The digital model has also boosted Mashreq's operations and financial performance.
“Building resilience was the key because had we not built that in terms of investing in our infrastructure and in the right talent, we wouldn't have been able to stand up to the ever-changing dynamics in the region,” he says.
“You will not be able to answer to the challenge that you are facing from FinTechs or big techs, and [would] not be able to answer the ever-changing expectations of your clients.”
The lender reported net profit of Dh2 billion ($544.6 million) in the first quarter of this year, a 25 per cent year-on-year increase. Net income before the 9 per cent corporate tax climbed 36 per cent on annual basis to Dh2.3 billion.
Exceptional business growth, healthy client margins, the current interest rate environment, and low-risk costs were the main drivers of profitability, Mashreq said in a bourse filing last month.
The quarterly income builds on Mashreq’s 2023 performance, when the bank delivered the highest return on equity in the market as well as the lowest industrywide loan impairment ratio, Mr Abdelaal says.
He sees continued growth in business driven by all segments of the bank, including its revamped wealth management offering, as well as its strategies for retail clients.
Growth beyond borders
Mashreq remains upbeat about the economic strength of the Gulf economies, despite geopolitical uncertainties, and Mr Abdelaal says the lender plans to export its digital model in the UAE to other GCC countries as well as markets beyond the region.
The lender has already received in-principle approval from Oman’s banking regulator to start operations in the sultanate and it expects Saudi Central Bank Sama to grant approval for a full banking licence in the kingdom in the next 12 months.
In Pakistan, Mashreq is in the final stretch of talks with regulators and the lender hopes to launch its digital bank in the South Asian country of 245 million people soon, he says.
The focus right now is on how to capitalise on “what we have been delivering so far and how we're going to grow this in the years to come”, Mr Abdelaal says.
“I keep telling everyone, whatever we are doing this year is for the next or the following year.”
With his foot firmly on the accelerator to speed up Mashreq’s digital transformation, growth and expansion is high on Mr Abdelaal’s priority list.
He wants his legacy to be about people, about the business he is transforming and about the impact he is having on the lives of those he works with on a daily basis.
“When I leave, the legacy that I want to leave is that when my name pops up at any given point of time, whether I'm there or not, people will say good stuff [about me] as a professional [and] as a human being,” Mr Abdelaal says.
Points to remember
- Debate the issue, don't attack the person
- Build the relationship and dialogue by seeking to find common ground
- Express passion for the issue but be aware of when you're losing control or when there's anger. If there is, pause and take some time out.
- Listen actively without interrupting
- Avoid assumptions, seek understanding, ask questions
Could%20We%20Be%20More
%3Cp%3EArtist%3A%20Kokoroko%3Cbr%3ELabel%3A%20Brownswood%20Recordings%3Cbr%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
'The Woman in the House Across the Street from the Girl in the Window'
Director:Michael Lehmann
Stars:Kristen Bell
Rating: 1/5
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Global state-owned investor ranking by size
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China
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UAE
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Japan
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Norway
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Canada
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Kill%20
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Nikhil%20Nagesh%20Bhat%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3C%2Fstrong%3E%3A%20Lakshya%2C%20Tanya%20Maniktala%2C%20Ashish%20Vidyarthi%2C%20Harsh%20Chhaya%2C%20Raghav%20Juyal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204.5%2F5%3Cbr%3E%3C%2Fp%3E%0A
Overall standings
1. Christopher Froome (GBR/Sky) 68hr 18min 36sec,
2. Fabio Aru (ITA/AST) at 0:18.
3. Romain Bardet (FRA/ALM) 0:23.
4. Rigoberto Uran (COL/CAN) 0:29.
5. Mikel Landa (ESP/SKY) 1:17.
LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
The biog
Favourite book: Homegoing by Yaa Gyasi
Favourite holiday destination: Spain
Favourite film: Bohemian Rhapsody
Favourite place to visit in the UAE: The beach or Satwa
Children: Stepdaughter Tyler 27, daughter Quito 22 and son Dali 19
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Raha%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Kuwait%2FSaudi%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Tech%20Logistics%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2414%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Soor%20Capital%2C%20eWTP%20Arabia%20Capital%2C%20Aujan%20Enterprises%2C%20Nox%20Management%2C%20Cedar%20Mundi%20Ventures%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%20166%3C%2Fp%3E%0A
Tips to avoid getting scammed
1) Beware of cheques presented late on Thursday
2) Visit an RTA centre to change registration only after receiving payment
3) Be aware of people asking to test drive the car alone
4) Try not to close the sale at night
5) Don't be rushed into a sale
6) Call 901 if you see any suspicious behaviour
The biog
Favourite hobby: taking his rescue dog, Sally, for long walks.
Favourite book: anything by Stephen King, although he said the films rarely match the quality of the books
Favourite film: The Shawshank Redemption stands out as his favourite movie, a classic King novella
Favourite music: “I have a wide and varied music taste, so it would be unfair to pick a single song from blues to rock as a favourite"
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
LA LIGA FIXTURES
Thursday (All UAE kick-off times)
Sevilla v Real Betis (midnight)
Friday
Granada v Real Betis (9.30pm)
Valencia v Levante (midnight)
Saturday
Espanyol v Alaves (4pm)
Celta Vigo v Villarreal (7pm)
Leganes v Real Valladolid (9.30pm)
Mallorca v Barcelona (midnight)
Sunday
Atletic Bilbao v Atletico Madrid (4pm)
Real Madrid v Eibar (9.30pm)
Real Sociedad v Osasuna (midnight)
Chef Nobu's advice for eating sushi
“One mistake people always make is adding extra wasabi. There is no need for this, because it should already be there between the rice and the fish.
“When eating nigiri, you must dip the fish – not the rice – in soy sauce, otherwise the rice will collapse. Also, don’t use too much soy sauce or it will make you thirsty. For sushi rolls, dip a little of the rice-covered roll lightly in soy sauce and eat in one bite.
“Chopsticks are acceptable, but really, I recommend using your fingers for sushi. Do use chopsticks for sashimi, though.
“The ginger should be eaten separately as a palette cleanser and used to clear the mouth when switching between different pieces of fish.”
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Ferrari
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Paltan
Producer: JP Films, Zee Studios
Director: JP Dutta
Cast: Jackie Shroff, Sonu Sood, Arjun Rampal, Siddhanth Kapoor, Luv Sinha and Harshvardhan Rane
Rating: 2/5
2024%20Dubai%20Marathon%20Results
%3Cp%3E%3Cstrong%3EWomen%E2%80%99s%20race%3A%3C%2Fstrong%3E%0D%3Cbr%3E1.%20Tigist%20Ketema%20(ETH)%202hrs%2016min%207sec%0D%3Cbr%3E2.%20Ruti%20Aga%20(ETH)%202%3A18%3A09%0D%3Cbr%3E3.%20Dera%20Dida%20(ETH)%202%3A19%3A29%0D%3Cbr%3EMen's%20race%3A%0D%3Cbr%3E1.%20Addisu%20Gobena%20(ETH)%202%3A05%3A01%0D%3Cbr%3E2.%20Lemi%20Dumicha%20(ETH)%202%3A05%3A20%0D%3Cbr%3E3.%20DejeneMegersa%20(ETH)%202%3A05%3A42%3C%2Fp%3E%0A
MATCH INFO
Jersey 147 (20 overs)
UAE 112 (19.2 overs)
Jersey win by 35 runs
World%20Cup%202023%20ticket%20sales
%3Cp%3EAugust%2025%20%E2%80%93%20Non-India%20warm-up%20matches%20and%20all%20non-India%20event%20matches%0D%3Cbr%3EAugust%2030%20%E2%80%93%20India%20matches%20at%20Guwahati%20and%20Trivandrum%0D%3Cbr%3EAugust%2031%20%E2%80%93%20India%20matches%20at%20Chennai%2C%20Delhi%20and%20Pune%0D%3Cbr%3ESeptember%201%20%E2%80%93%20India%20matches%20at%20Dharamsala%2C%20Lucknow%20and%20Mumbai%0D%3Cbr%3ESeptember%202%20%E2%80%93%20India%20matches%20at%20Bengaluru%20and%20Kolkata%0D%3Cbr%3ESeptember%203%20%E2%80%93%20India%20matches%20at%20Ahmedabad%0D%3Cbr%3ESeptember%2015%20%E2%80%93%20Semi-finals%20and%20Final%3C%2Fp%3E%0A
EA Sports FC 25
Developer: EA Vancouver, EA Romania
Publisher: EA Sports
Consoles: Nintendo Switch, PlayStation 4&5, Xbox One and Xbox Series X/S
Rating: 3.5/5
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Fight card
1. Featherweight 66kg: Ben Lucas (AUS) v Ibrahim Kendil (EGY)
2. Lightweight 70kg: Mohammed Kareem Aljnan (SYR) v Alphonse Besala (CMR)
3. Welterweight 77kg:Marcos Costa (BRA) v Abdelhakim Wahid (MAR)
4. Lightweight 70kg: Omar Ramadan (EGY) v Abdimitalipov Atabek (KGZ)
5. Featherweight 66kg: Ahmed Al Darmaki (UAE) v Kagimu Kigga (UGA)
6. Catchweight 85kg: Ibrahim El Sawi (EGY) v Iuri Fraga (BRA)
7. Featherweight 66kg: Yousef Al Husani (UAE) v Mohamed Allam (EGY)
8. Catchweight 73kg: Mostafa Radi (PAL) v Ahmed Abdelraouf of Egypt (EGY)
9. Featherweight 66kg: Jaures Dea (CMR) v Andre Pinheiro (BRA)
10. Catchweight 90kg: Tarek Suleiman (SYR) v Juscelino Ferreira (BRA)
