Financial services on radar of Dubai Investments
WE EXPECT TO MAKE OPEN OFFER TO BUY REST OF NGI STAKE, CEO BIN KALBAN SAYS
If Khalid Bin Kalban had his way, Dubai Investments (DI) would have had a fullfledged “digital” bank up and running in the UAE in the last three years. But that was not to be.
“Three years ago, we had announced plans for ‘Arkan Bank”,” Bin Kalban, ViceChairman and CEO of Dubai Investments, the holding company that has got everything from industrial parks and residential communities to industrial units. “Even though it was conceived as an investment bank, the platform we intended to have was digital. It was definitely not going to be like the conventional investment banks.
“We had collected the initial capital for Arkan and went through so many phases. Our timing, however, was not perfect — yet, the idea of a digital bank was there and we had the investors. If one such opportunity presents itself again, then it’s an area we will want to get in.”
Digital banking’s time has definitely come in the UAE. Licenses for standalone digital-only banks have been issued — in Abu Dhabi, there’s Al Maryah Community Bank, while Dubai should soon see the launch of Zand Bank, headed by Mohammed Alabbar. UAE banking giant ADIB has just ventured with ‘Amwali’, aimed exclusively at the Gen Z and millennials. Mashreq and Emirates NBD have their digital-only banking offshoots running for some time now.
Bin Kalban, though, is not one to rue about missed opportunities. But he does other plans to get DI expand its financial services interests.
Digital banking’s time has definitely come in the UAE. Licenses for standalone digitalonly banks have been issued — in Abu Dhabi.
Insurance stake
This was clearly evident when DI raised its stake in Dubai-based NGI (National General Insurance) to more than 45 per cent, buying from Emirates NBD, which had been the major shareholder in the insurer.
Buy more
Bin Kalban will not stop at that. “Our aim is not be satisfied with the 45 per cent — we will write to the other NGI
shareholders as we are ready to buy their stakes,” he added. “The minority shareholders I have been talking to are willing to sell, at least most of them are. Yes, we will be informing the stock market regulator about our intentions and seek their views on the planned buyout.
“We have done our job regarding the evaluation of such companies. The NGI book value is more than double of what we paid to Emirates NBD to raise the stake to 45 per cent. The way we see it, it is a win-win situation for existing NGI shareholders and for us coming in.
“We know NGI well, having
been a shareholder since its inception in 2001, when we had 8 per cent.”
Keep diversifying
Expand within the financial services space — at least for the short-term, that’s the mandate DI has set for itself. But where’s the rationale to this?
“We are a general investment company and that strategy has to be always look for opportunities,” the CEO added. “If something like NGI pops up on our investment screens, we will not shy away.
“NGI delivered good results recently with Dh1.5 billion in
assets and a net worth of Dh500 million. It’s a very liquid company and because of all these reasons, it is a part of DI’s strategy for diversification.
“We already have a cluster in education, in healthcare, in real estate, aluminium, glass and light industries. We hoping that once the market situation improves, we should be exiting either privately or through a public offering from some of the existing subsidiaries.
“That’s how we do business. Diversify as much as we can, and if there is an acquisition, we will, if there is an exit, we will.”