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Jerusalem was long the cultural hub of the Arab
world. In the early part of the last century it
was a vibrant community with a large, affluent Lebanese
community. Until more than a decade after the end
of WWI there was not a single bank in the Arab world
that was entirely Arab owned, as most banking institutions
were foreign entities, such as from Britain or France,
or foreign dominated banks with a modicum of Arab
ownership. That all changed in July 1930 when the
late Abdul Hamed Shoman established the Arab Bank
in Jerusalem, then a part of the British Mandate.
Now headquartered in Amman Jordan, the annals of
this 75- year old institution are remarkable not
only for its own place in history, but also for
having survived the tide history itself. "Our
history is intertwined with half a billion people
in the Arab world—suffering with them and benefiting
with them," said Shukry Bishara, Chief Banking
Officer of Arab Bank. This story is one of survival
and adaptation, lasting through a world war, regional
wars, wars of independence, and periods of nationalization.
Yet under all these daunting circumstances the bank
never once defaulted. "We sought out claims
to pay out deposits," says Bishara. "The
bank lost 60 percent of its assets in Jerusalem…survived
with an erosion of 60% of its assets. Very few banks
had to go through that kind of acid test. An impossible
challenge."
The financial institution’s set mission and
goal was to build the economy of the Arab world.
Despite the sometimes-daunting circumstances, the
bank prevailed. With energy and confidence, it has
continued to work towards its mission and goal:
the growth and development of the Arab world.
Although Arab Bank’s impressive history is
greatly admired in the region and abroad, it is
best known today for its modern and forward looking
approach to banking, incorporating the latest technologies,
and possessing a management team that is dedicated
to improving efficiency, and staying atop the industry’s
ever changing rules and their ensuing impact.
"We have a very wise team at Arab Bank,"
said Bishara, "and work in accordance to best
practices… staying abreast of world-wide trends…always
realigning ourselves and converging with customers."
As such the bank does not limit itself to the transfer
of knowledge and technology, but has also concentrated
on developing new products that are especially adapted
to meet traditional domestic needs and fit within
Arab rules and regulations.
Providing an ideal platform of services is especially
important—with an increased emphasis on such
things as retail and consumer lending. Arab Bank
recognizes that the development of consumer services
is crucial to further promoting this market. "There
is an awareness that the future of this economy
is bottom up," said Bishara. "In any emerging
market this is what drives the economy."
Arab Bank is very much an IT conscious institution,
says Bishara. Accordingly, the bank has become very
sophisticated in its utilization of IT, especially
in regards to security. It claims to be a regional
leader in terms of what it spends on IT for key
banking functions. Says Bishara, "We ante up
in comparison to other banks when it comes to IT."
Infrastructure and development projects are a hugely
important aspect of Arab Bank’s lending strategy.
"We are in infrastructure projects across the
world," says Bishara, "and in every economically
viable undertaking." The bank is especially
active in the energy sector… with holdings
in such things as oil and gas projects, and power
plants. Shareholders in the bank are assured that
such investments are made with the judicious consideration
and analysis. "There is not a single gas plant,
or similar type operation, not having pre sold its
products," said Bishara in noting how forward
sales are taken into account.
People sometimes view the Arab world as being homogenous,
says Bishara. This is not only untrue when it comes
to matters of culture and politics, but it also
is off the mark when it comes to banking habits.
Jordan itself is considered a sophisticated market,
one in which the banks here compete fiercely, and
the standard services that are provided have improved
greatly over the years. As places like Jordan develop
an ever-growing middle class, banking, according
to Bishara, is entering into "an exciting period
of time."
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