The Managing Director of Bank of Beirut in the Sultanate of Oman Ramy F. Zambarakji is famed for his vast banking experience in the GCC and as such BUSINESS LIFE magazine was keen on reporting his activities in Oman.
He detailed the bank’s operations and results in the Sultanate since it started its activities in 2007. Zambarakji also spoke about Oman’s economy and how it was affected by the global crisis. Then he further reflected his ideas concerning the effects of the financial crisis on the region. Finally, Zambarakji provide BUSINESS LIFE with his view on the GCC single currency project economy.
Zambarakji first shed some light on Bank of Beirut operations and results in the Sultanate of Oman since it started in 2007. From the first days, we were lucky to be in a growing economy. He added "We had a great performance and growth in the first two years of our operations. In 2007, we broke even and in2008 we made around O.R 5 million of profit over around 500 million turnover. The Omani market responded positively in particular the small Lebanese expatriates’ community as well. The Sultanate of Oman embraced and welcomed Bank of Beirut in its market. In addition to the support of the Central Bank of Oman that implemented fair regulation to foreign investors. "From day one we had no problem making our business grow and prosper," Zambarakji asserted. "In 2008-2009, despite the global crisis we were not negatively affected as the government in Oman has taken a gradual course of growth, which shielded Oman from the crisis which hit Dubai’s market and the region. Furthermore, the government increased its spending which sustained growth. The government went ahead with several big projects such as the two airports, and several other mega infrastructure projects. As a bank, we are taking advantage of this situation and all in all we are doing very well." The financial figure of the first quarter 2009 is better than last year. "Until this date, Bank of Beirut maintained 30% better results than 2008 and if we continue this trend till the end of 2009 then we can say that we achieved our target." Zambarakji is hoping to maintain the same profit of 2008, with a 10% deviation. Bank of Beirut has a presence in seven countries: Lebanon, U.K, UAE, Cyprus, Nigeria, Iraq and Sultanate of Oman and its executive management has plans in the pipelines to open more branches.
Concerning the bank’s plans and operations in Oman Zambarakji explained "Our bank has been involved in financing a mega project instigated by the government. We kept our promise to open a new branch in Sohar, in order to finance the industrial sector, despite the current crisis." So Bank of Beirut is maintaining a healthy policy good for the bank and for the economy of Oman. We are planning to maintain the growth of our bank and spread its presence all over Oman. Currently, we only have two branches and we plan by the end of the year to increase this number further. Additionally, we are planning to increase our awareness in this country."
On the subject of Oman economy and how if it was affected by the global crisis, Zambarakji said "The Omani economy is doing very well. The government made a great decision in 2009 by increasing their budget, and tendered several mega projects, topping 700 million Omani riyals, which will breathe additional liquidity in the market. In 2009, most analysts are confident that the economy will keep on its course and the only unknown concern will be the year 2010." The Omani economy was built on gradual growth and all the companies and investors followed these rules, which increased stability and shielded the market from the worst fallouts of the crisis. The Omani market enjoys an adequate growth and level of liquidity. Of course, the general turnover was lowered a bit and this affected profitability, but the market did not suffer from any major credit failure, or toxic assets exposure and crashes. All in all The Omani market is doing well as well as the banking sector.
According to Zambarakji "The effects of the global crisis will drag on at least for the upcoming few years. The recovery in the region wil mainly depends on the price of oil. If the oil price reaches US$75 by the end of the year, Oman will do well and enter the new year with a sizeable advantage, similarly this will positively affect most of the GCC countries especially that the oil represents more than 80% of our economies.
In other words, I know that the recovery will take time but if the oil price rises, as I said earlier, we will have an easier time to go ahead in a new cycle of growth and economic prosperity."
Finally, Zambarakji answered a question concerning the GCC single currency project economy stating, "We have a shared common interest to establish a single GCC Currency like in the EU but we still have to work on the Central Bank and the rules and regulations of each country, before discussing the Single Currency. Especially that each country is in a different stage in its development, for example Qatar is still booming, while UAE is looking for stability, and not to forget the 20 million population of the KSA. We have to bring all these countries together then we can speak about a Single Currency. In short, we are still far from reaching that goal."
