ADIB to see wealth management portfolio grow

Abu Dhabi: Abu Dhabi Islamic Bank (ADIB) is expected to see an increase in its wealth management portfolio, with more high net worth individuals set to start banking at ADIB, according to Daffer Luqman, the bank’s global head of liabilities and wealth management.

In a phone interview with Gulf News, Luqman said he did not see an impact of falling oil prices on their portfolio of high- and ultra-high net worth individuals.

“The region remains an oil story but it has diversified significantly over the past few years, so we continue to see the economy tick, and we continue to see positive outlook for growth,” he said.

Luqman added that he expected to see growth in the bank’s wealth management portfolio.

“Through the various products and services that we offer to clients, we see this particular segment of clients continue to grow. Through the propositions that we offer, whether it’s private banking for the ultra-high net worth individuals or the priority banking, the services we offer have already helped us see these segments grow and expand,” he said.

ADIB currently offers multiple tailored products for high net worth individuals, including structured loans than guarantee capital protection, and other more risk-prone products.

“As we broaden and deepen the financial services market going forward with products like investments and savings, we will see more and more of this segment of investors and clients come to live and work in the UAE,” Luqman said.

He added that the global financial crisis in 2008 has resulted in more people, including those with high net worth, to look into long-term savings as their financial situation is prone to change.

Asked about the demand for Islamic banking in the UAE, Luqman said it was increasing and that demand is “very healthy.”

“More and more people are becoming aware of Sharia-compliant financial services that are available, and the fact that they can avail of these services and have similar benefits to those from conventional. We see an increasing conversion from customers, and it’s not just Muslim customers who go for Sharia-compliant products; non-Muslims also find value in them,” he said.

ADIB offers a range of services to facilitate long-term savings and pension funds, with the services set to help repatriate much of the money that goes elsewhere for investing.

Luqman hoped this would enhance the financial services market in the future, and in turn, help establish the UAE as an Islamic banking hub.

In late January, ADIB announced plans to boost its capital base in order to help growth in the future, after releasing its financial statements for the fourth quarter of 2014 that showed a 19.3 per cent increase in net profit.

The bank also saw an 18.2 per cent increase in loans.