One of Saudi Arabia’s newest and largest banks, Bank Albilad, was established in November 2004 as a joint stock company to provide Shariah compliant services and products. Here its CEO, Azzam Abaalkhail, speaks about the bank’s goal to expand to all Saudi cities and regions and to provide branches for women and banking services centres.

PM Communications: BANK ALBILAD started in November 2004, as a joint stock company, focused on establishing Islamic Banking in Saudi Arabia. Could you tell us what the vision was, and to what point it has been achieved?

Mr. Azam Abaalkhil CEO- BANK ALBILAD: Although the idea started fifteen years ago, BANK ALBILAD was established in 2004. Three years ago SAGIA led the way to create a consolidated company uniting the main players in the money exchange business under one bank. These are the roots of BANK ALBILAD. Our vision is to be the favorite bank for commercial and private banking, for both the VIP's and the average customers.

We started off by introducing a plan and a customer strategy for two brands: BANK ALBILAD, with thirty branches and Ingaz, with eighty, focused mainly in money transfers. Moreover, we have a partnership with Western Union and over fifty correspondent banks in the world. Our vision is to capitalize on these relationships. Our customer service is not only based on our image. We pride ourselves on understanding our customers' needs and delivering those requirements on time. We offer relationship-based services: your private banker not only gives you cash when you need it, but also takes care of all your needs, including investment services.

PM Communications: What are the main principles of Islamic Banking?

Mr. Azam Abaalkhil CEO- BANK ALBILAD: Banking is banking. Call it Islamic, commercial, or anything else, but the principles are the same. You make an investment and you expect a return. The only difference is the construction of the agreement, but the outcome is the same. In conventional banking you rely on the interest, while as in Islamic Banking, instead of giving a conventional loan to a bank, you are interfering in the core of that loan, which is the raw material behind it. But at the end, we have our own cash flow, just like any other bank.

PM Communications: Are you planning to reach rural areas and offering new services, like, for example, micro-credits for small and medium enterprises?

Mr. Azam Abaalkhil CEO- BANK ALBILAD: We are very active in all areas: small and medium enterprises, large corporations, investment banking, and commercial banking.

PM Communications: Are you planning to go into the GCC countries?

Mr. Azam Abaalkhil CEO- BANK ALBILAD: Although a little premature today, our vision is indeed to reach the Arab World.

PM Communications: Would you have any interest in having partnerships with other banks abroad?

Mr. Azam Abaalkhil CEO- BANK ALBILAD: Definitely, we have a very open policy, especially in terms of cooperation with other local and foreign banks.

PM Communications: What is your message to the English community worldwide?

Mr. Azam Abaalkhil CEO- BANK ALBILAD: We are seeking corporate investment and asset management partners.

PM Communications: What innovative services will you implement in the next three or four years?

Mr. Azam Abaalkhil CEO- BANK ALBILAD: We are promoting our main services, mainly private Internet banking and on-line trading, not only in the Saudi market, but in the GCC and the Arab markets as well. Trading on the International Stock Market will also be available very soon.

The market in Saudi Arabia is growing, and competition is stimulating creativity, innovation, and improvement of the customers' services. We would like to introduce further benefits to our customers and more retail investment products, either alone or with partners.

As the banking sector grows, more players are entering the market. The local banks are maturing and as a result providing specialized service to the customer. In turn, the customers now understand that they can go to different banks depending on their needs.

PM Communications: Saudi Arabia is now member of the WTO, thus open for international trade. What advantages will BANK ALBILAD draw from this globalization process?

Mr. Azam Abaalkhil CEO- BANK ALBILAD: Globalization is a plus for BANK ALBILAD and the Kingdom as a whole. Joining the world of free trade is much better for everyone. Although Saudi Arabia is well known for oil and gas, we can compete in financial services as well as anywhere in the world. We are smaller banks, but we are innovative and should have confidence in ourselves. We can bring Islamic banking for the Muslim community in Europe, Asia, and Africa, as well as compete in asset management, corporate finance and many other banking services. We have to be open to the advantages that joining the WTO brings, rather than being defensive and protective of change.

Based in Riyadh, Bank Albilad plans to expand to all the country’s main cities.

PM Communications: The Capital Market Authority authorized foreign investors to invest in the Tadawul. What are the advantages and disadvantages of this change?

Mr. Azam Abaalkhil CEO- BANK ALBILAD: Expatriates have been investing in Saudi funds for a long time. What's recently been authorized is that foreigners can actually buy stocks rather than participating in such funds. We have a good percentage of the expatriate community investing here, with confidence in the Tadawul, although like any other market, it goes up and down. Some times you have to learn through the hard way.

PM Communications: Through this report, you have the chance to voice your opinion directly to the UK investment community. What would you like to see happen between the UK and Saudi Arabia that could affect your line of business?

Mr. Azam Abaalkhil CEO- BANK ALBILAD: First of all, there has always been a long history between the UK and Saudi Arabia, and Europe in general. But like in any relationship, there is turbulence, but we should always look at the bright side of it. Falling in the trap of a conflict of civilizations is more dangerous than facing reality, and breaking these barriers takes time. No one can live alone in this atmosphere regardless of his belief, and we have to work with each other. I have a lot of things that you need, and I have a lot of needs that I cannot find but in Europe. This is human nature. So we have to look at the global picture, and keep in mind that Europe is our closest neighbor.

PM Communications: Prince Mohammad Al Faisal said that the economical boom is not happening yet; this is an investment boom. Do you agree with him?

Mr. Azam Abaalkhil CEO- BANK ALBILAD: There is a lot of money flowing into Saudi Arabia now, and it is the time to invest it in to building a better economy for the future, including, other than oil and gas, global services such as banking, hospitals, IT technology, and software.

PM Communications: Where do you see BANK ALBILAD in the next three or four years?

Mr. Azam Abaalkhil CEO- BANK ALBILAD: Our vision is to be one of the leading banks and the favorite for private and commercial customers.

PM Communications: I have been told that women here have a lot of money, but not in the bank. Are you focusing on the female market?

Mr. Azam Abaalkhil CEO- BANK ALBILAD: Over the last two years the number of women in the business community is growing. They are educated, and active in institutions such as the Chamber of Commerce, the Stock Exchange and banks. Buying land needed a lot of money. Buying a big share in a company also needed a lot of money. Today, you can buy a share for ten riyals. There is investment in real estate and tomorrow there will be opportunities in privatization. We have over seventeen women in branches and we are planning to hire more. Ten years ago you could not find a woman in a bank; it was even very difficult to persuade them to work in a bank. Today, they are in the market.

PM Communications: What would be your advice for foreign investors come to Saudi Arabia?

Mr. Azam Abaalkhil CEO- BANK ALBILAD: First of all, they should get advice from institutions specialized in foreign investment, like SAGIA or the Chambers of Commerce. But above all, they should come to us, the banks, as we have the true knowledge and the specialized departments.