Abu Dhabi: Trade Bank of Iraq (TBI), which opened a representative office in Abu Dhabi today, is planning to expand into Saudi Arabia next year, the bank’s chairman said.

TBI opened an office at Abu Dhabi Global Market (ADGM), the bank’s first office outside of Iraq.

The 100 per cent wholly government-owned bank, which holds an 80 per cent market share in Iraq, will further promote investment opportunities in Iraq and to establish relationships with key institutions in the UAE’s banking and finance sectors.

“Our idea of opening a representative office in [the] Abu Dhabi global market is to better interact with our correspondent banks, which [are] around 430 banks. Eighty per cent of those are present between [the] Abu Dhabi Global Market and Dubai [the] International Financial Centre (DIFC),” said Faisal Al Haimus, chairman of TBI speaking to Gulf News.

“It is a good opportunity for us to have better collaboration and also continue to interact with them on potential business opportunities.”

The office was formally opened by Dr Ali Al Alaq, governor of the Central Bank of Iraq, and Ahmad Al Sayegh, chairman of the ADGM.

TBI which has 24 branches in Iraq, opened three new branches in 2017. The bank earned a profit of $454 million (Dh1.67 billion) in 2016.

“2016 was an exceptional year. This year is very challenging, despite the challenges the profit will be on par with 2016,” Al Haimus said.

TBI was set up in 2003 with its core business as trade finance, but the bank also is involved in commercial banking activities. It has relationships with 430 correspondent banks globally.

With the opening up of the huge Saudi market, TBI is also looking to expand there with a branch, according to Ali Esmail Al Alaq, governor of the central bank of Iraq.

The bank is in the process of getting a licence for a branch and is expected to start functioning next year, Al Alaq said.

There are also plans to open branches of two more private banks in Dubai in the coming days, he added.

“We are almost at the final steps of opening those banks and we are working with the central bank of the UAE,” Al Alaq said.

Speaking on the economy of the country, the governor of central bank of Iraq said he expected better growth this year and also next year due to positive developments including more stability, more physical consolidation that is being taken by the government in line with the IMF programmes and the additional investments coming into the country.

“Recovery in oil prices also has a direct impact on our economy. The country still relies on the income coming from exports of oil. We are trying our best to not to get that increase to go again for more public expenditure or unnecessary expenditure. That’s the reason we put a conservative price of $43 per barrel for oil in our budget.”

Oil prices have gone up in recent times due to a tightening of global oil markets and also due to geopolitical tensions in the Middle East.

Iraq is the second-biggest oil producer within the Opec group, producing about 4.38 million barrels per day.