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DUBAI'S TRADE FINANCE
MARKET
A
Story of Thee Indigenous Banks
By
Ravi Mehta, Ph.D
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Every country needs
economic development. Economic development needs international trade
development. International trade development needs trade finance development.
Trade finance development needs trade finance banking development. Trade
finance banking development needs banks. Banks need trade financing
expertise development. Trade finance expertise development needs trade
finance specialists. U.A.E., for example, has the political strategy of
economic development through trade development. To fulfill this strategy,
U.A.E has well developed trade finance infrastructure, in which indigenous
banks play an important role. In the indigenous banks imported trade finance
specialists play a vital role. The U.A.E. is an example of mixture of import
and import substitution or indigenization. Import accelerates development.
Import substitution sustains development. U.A.E.'s capital Dubai is the best
example of trade finance development. It is the focal point of development.
It is pivotal of development. Dubai's trade finance market is the country's
leading market of trade finance solutions. The market has all that trade
needs. We take up three indigenous banks and its three trade finance
specialists. The three indigenous banks are: 1) Abu Dhabi Commercial Bank;
2) Commercial Bank of Dubai; and 3) National Bank of Fujairah. Each bank has
trade finance specialist from India, to head its trade finance department,
to manage its trade finance function. Zahoor Dattu works for Abu Dhabi
Commercial Bank, Laxmanan Sankaran for Commercial Bank of Dubai, and R. S.
Rangan for National Bank of Fujairah.
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Concrete Development a Sign of Economic Development in U.A.E. Economic
Development a Result of Trade Finance Development Trade Finance the Engine
of Economic Development
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THE THREE BANKS
Local Trade Finance Solutions
Trade
Promotes Development
Banks Promote Trade
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Abu Dhabi Commercial
Bank
According to
www.adcb.com,
the Bank's website :
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Abu Dhabi Commercial Bank (ADCB) was incorporated
in the Emirate of Abu Dhabi in July 1985, with the merger of the
Khalij Commercial Bank, the Emirates Commercial Bank and the Federal
Commercial Bank.
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ADCB is one of the largest UAE National Banks.
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The Government of Abu Dhabi holds 64% of the paid up
capital and the balance is held by prominent UAE Institutions and
nationals
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ADCB has the largest
network of branches in
the
UAE and also a strong
base of operations in
India . ADCB
is a major player in the trade finance business with operations at
two different locations, each serving branches in the region (see
below). The bank offers
professional advice on matters such as imports, exports, bonds,
project finance and other related services.
ADCB' trade finance function includes, as said by the Bank on its
website:
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Handling large government and oil-related
transactions.
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Arranging syndicated bonding facilities for large
amounts.
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Meeting the requirements of importers, corporate
clients and small business houses alike.
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Confirming letters of credit in favor of exporters
issued by correspondent banks abroad.
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Financing exporters by way of pre-shipment
facilities.
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Commercial Bank of
Dubai
www.cbd.co. ae
says: Commercial Bank of Dubai was
established in 1969, as a Public Shareholding Company by an Emiri Decree
issued by His Highness the late Sheikh Rashid bin Saeed Al Maktoum, the
founder of modern Dubai. In the beginning, the Bank was owned by
Commerzbank, Chase Manhattan Bank and Commercial Bank of Kuwait, with UAE
businessmen holding a minority stake.
The Bank's commercial banking service offers, among other things: 1)
Letter of Credit; and 2) Letter of Guarantee.
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National Bank of
Fujairah
As
www.nbf.co.ae says,
this bank was founded in 1982 in the Emirate of Fujairah, one of
the Emirates that the U.A.E. is made up of. Its shareholders include the
Government of Fujairah and the Government of Dubai .
The Bank has trade financing policy and
function. So it markets trade financing products and services It has
marketing and financing expertise.
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THE THREE BANKS' THREE BANKERS
The three Banks have
funds for trade financing. Their three bankers have expertise for trade
financing. They are well qualified, well experienced and well trained in
trade finance management matters.
Zahoor N. Dattu,
CDCS
Head of Corporate
Services
Abu Dhabi Commercial Bank
Experience of 33 years in
trade financing
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Laxmanan
Sankaran, B.Com, CAIIB, CDCS
Executive Manager and
Head of Trade Finance
Commercial Bank of Dubai
Experience of 29 years in
trade financing
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R. S. Rangan,
B.Com,CDCS
Head of Trade Services
National Bank of Fujairah
Experience of 19 years in
trade financing
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