Egypt's Health Minister reviews upgrades at Gustave Roussy Hospital    Giza Pyramids' interior lighting updated with new LED system    Suez Canal Bank partners with CRIF Egypt to advance sustainability through Synesgy    Russia hits Ukraine with huge barrage as first Australian tanks arrive    Russia unveils 'Kinzhal' interceptor drone to counter low-altitude threats    Lebanon's PM says US proposal includes full Israeli withdrawal, state control of arms    Saib reopens Mansoura branch after comprehensive renovation    ABE signs cooperation protocol to finance beneficiaries of state-owned lands in Minya    Sandoz Egypt introduces OMNITROPE 15mg biosimilar growth hormone for the treatment of short stature    Egypt After 2025: Navigating a Critical Inflection Point    Egypt's EHA, Huawei discuss enhanced digital health    Spot Gold, futures slips on Thursday, July 17th    Egypt, Oman discuss environmental cooperation    Egypt expresses condolences to Iraq over fire tragedy    Egyptian, Belarusian officials discuss drug registration, market access    Sri Lanka's expat remittances up in June '25    Egypt's Health Min. discusses drug localisation with Sandoz    EU–US trade talks enter 'decisive phase', German politician says    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, France FMs review Gaza ceasefire efforts, reconstruction    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Mideast banks, funds seek to tap women's wealth
Published in Daily News Egypt on 01 - 11 - 2010

DUBAI: Emirati housewife Sarah Alzarouni brushed past a group of women clad in floor-length black robes, some with only their eyes showing, to enter through the frosted doors of one of Dubai Islamic Bank's women-only branches.
Clutching a Louis Vuitton bag to match her designer head scarf, Alzarouni greeted the female tellers and bank manager with three kisses on the cheek and sat down to do business.
"I am much more comfortable working with ladies than in a mixed environment," Alzarouni, 27, said.
"When I come here, I feel like one of them. They understand my needs and I can move freely, not having to always think where I am and whether my (scarf) has moved. As a Muslim, it is really important for me to deal with an Islamic bank. "
Many affluent Muslim women share Alzarouni's sentiments and they are increasingly turning to Islamic banks to manage their money. These women are looking beyond basic banking services to sophisticated products to grow their wealth while complying with Islamic principals that include a ban on interest.
According to a report by Boston Consulting Group, women in the Middle East controlled 22 percent, or $500 billion, of the region's total assets under management in 2009.
Financial institutions in the conservative Gulf Arab region, where many women are reluctant to mix with men outside their families, are tapping into the niche, with women-only bank branches and investment funds mushrooming.
Saudi Arabia, the birthplace of Islam where unrelated men and women are not allowed to mix, is leading the charge.
Women in Saudi Arabia, the world's largest exporter of crude oil, are believed to be sitting on $11.9 billion in pure cash, according to a report by Al Masah Capital.
The kingdom's National Commercial Bank has 46 women-only branches — up from two in 1980. Saudi Hollandi Bank plans to increase its women-only branches to 15 from its existing 11.
On the funds front, Saudi-based Al Rajhi Capital launched its Ladies Wealth Management Division earlier this year. That came on top of its Al Jawharah Ladies Fund, which targets Saudi women seeking to make diversified investments.
Cayman Islands-based Mayfair Wealth Management launched the Ameerah fund in the Middle East in 2009, offering advice on investments that are compliant with Islamic principles.
Abu Dhabi-based Al Bashayer Investments, a conventional wealth management firm geared towards women investors, is also looking to launch Islamic products to address the needs of women in the region who prefer investments that are in keeping with their religious beliefs.
Sara Mohamed, chief executive officer of Al Bashayer, said many banks that have created women-only branches have so far limited their services to retail banking accounts, credit cards or loans, rather than helping women to grow their wealth.
"We see a lot of opportunities in the middle market," Mohamed said. "Women at senior levels who have small children and have a minimum of $250,000 or $100,000 of investible cash set aside and are looking to build their wealth."
Educating the market
But experts say more needs to be done to break down the often self-imposed barriers to Gulf Arab women taking an active role in the world of investment and financial markets.
"I'm sure that much more women than we see want to be involved," said Moza Al-Otaiba, chief executive of Al Otaiba Holdings.
"A lot of women are not clear about investments. Women are motivated to work and all around the world we see women as bread winners. But there is a barrier they need to cross."
Many women in the region have inherited wealth from their fathers or other family members, and women are active business owners in the Gulf.
A 2007 study from a branch of the World Bank estimated that a third of women-owned businesses in the United Arab Emirates generated over $100,000 a year, as compared to 12 percent of American women-owned companies.
Otaiba, whose business focuses on development projects within the UAE, said that women in the region are looking for products and investments within the Gulf Arab region, because they know those markets and find them accessible and safe.
Industry experts say more women need to participate in the Islamic banking industry at senior levels to help grow products that appeal to a female clientele. But while the finance industry remains a boys club around the world, the glass ceiling is lower in the Middle East.
"The mindset of management and old school guys is that women are only there temporarily and then they leave," Nida Raza, director of capital markets at Unicorn Investment Bank, said.
"That feeling is exaggerated here in the Gulf. Women just aren't put into higher roles in Islamic finance here."
In addition to wealth management, Raza said venture capital funds that invest in women-only businesses, Islamic pension funds and education funds for children would be particularly attractive to women in the Gulf.
Hari Bhambra, senior partner at compliance and client advisory firm Praesidium, said Islamic trust funds would be particularly appealing to women in the region, empowering them to provide for the welfare of their children.
"I think it's going to take a while but, as we're seeing more women get into conventional finance, it will naturally transfer to Islamic finance," Bhambra said.
More investment options would certainly appeal to clients like Alzarouni, who hopes to start her own business and invest in financial products for her three daughters, aged 6, 5 and 10 months.
"I'm thinking of just opening accounts for them right now but maybe in the future, I can help them open a business as well," Alzarouni said. "Maybe they'll be future financial managers. Who knows?" –Additional reporting by Martina Fuchs


Clic here to read the story from its source.