Arab Bank: Difference between revisions
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|foundation=[[1930]] as '''[[Arab Bank ]]'''<ref name="arabbank">[http://www.arabbank.com] Arabbank.com</ref> |
|foundation=[[1930]] as '''[[Arab Bank ]]'''<ref name="arabbank">[http://www.arabbank.com] Arabbank.com</ref> |
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|location_city={{flagicon|Jordan}} [[Amman]], [[Jordan]]| |
|location_city={{flagicon|Jordan}} [[Amman]], [[Jordan]]| |
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|industry=[[Banking]] |
|industry=[[Banking]] | |
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|area_served = 28 countries<ref>[http://www.arabbank.com/en/globalnetwork.aspx Arab Bank Global Network] Arabbank.com</ref> |
|area_served = 28 countries<ref>[http://www.arabbank.com/en/globalnetwork.aspx Arab Bank Global Network] Arabbank.com</ref> |
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|key_people=Mr. Abdel Hamid Shoman , <small>[[Chief Executive Officer|CEO]]</small><br /><ref>[http://www.arabbank.com/en/topmanagement.aspx Top Management] Arabbank.com</ref> |
|key_people=Mr. Abdel Hamid Shoman , <small>[[Chief Executive Officer|CEO]]</small><br /><ref>[http://www.arabbank.com/en/topmanagement.aspx Top Management] Arabbank.com</ref> |
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== The Founder: The Indomitable Arab == |
== The Founder: The Indomitable Arab == |
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Arab Bank's history is interlinked with that of the Shoman family and its founder |
Arab Bank's history is interlinked with that of the Shoman family and its founder [[Abdul Hameed Shoman]], whose personal life reads as an extraordinary tale of success for his time and age. |
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Born in 1890 in the Palestinian village of Beit Hanina, four miles North of Jerusalem, Shoman was raised in a stone hut, where he began his career at the age of seven as a stone mason working in construction sites. |
Born in 1890 in the Palestinian village of [[Beit Hanina]], four miles North of [[Jerusalem]], Shoman was raised in a stone hut, where he began his career at the age of seven as a stone mason working in construction sites. |
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With ambitions exceeding his age and spanning further than the borders of his village and country, Shoman emigrated to the United States of America at the age of 20 with only USD 32 in hand and became a door-to-door salesman, selling dry-good products in New York and Baltimore. His consecutive successes led him to expand and start a dress-making factory in |
With ambitions exceeding his age and spanning further than the borders of his village and country, Shoman emigrated to the United States of America at the age of 20 with only USD 32 in hand and became a door-to-door salesman, selling dry-good products in [[New York]] and [[Baltimore]]. His consecutive successes led him to expand and start a dress-making factory in [[Manhattan]]’s garment district. |
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Despite his success, Shoman was feeling home-sick and began to be consumed with an even larger vision: The establishment of a bank with joint Arab participation, a bank that would play a significant role in shaping the lives of nations and their economies. |
Despite his success, Shoman was feeling home-sick and began to be consumed with an even larger vision: The establishment of a bank with joint Arab participation, a bank that would play a significant role in shaping the lives of nations and their economies. |
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== A Vision Fulfilled == |
== A Vision Fulfilled == |
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Shoman decided to return to Palestine. No sooner had he arrived home for the first time since he left to the new world than he arranged for a meeting in Cairo with Tal’at Pasha Harb, the Chairman of the Board of Directors of the Bank of Egypt. Shoman proposed the idea of establishing a joint Egyptian-Palestinian bank, with a capital of 100,000 Palestinian Pounds; however, political developments in the region forced Harb to put the project on hold. |
Shoman decided to return to [[Palestine]]. No sooner had he arrived home for the first time since he left to the new world than he arranged for a meeting in [[Cairo]] with [[Tal’at Pasha Harb]], the Chairman of the Board of Directors of the Bank of [[Egypt]]. Shoman proposed the idea of establishing a joint Egyptian-Palestinian bank, with a capital of 100,000 Palestinian Pounds; however, political developments in the region forced Harb to put the project on hold. |
||
Nonetheless, Shoman was determined to move forward. With seven investors, and a startup capital of 15,000 Palestinian Pounds, Arab Bank was registered on May 21st, 1930, and commenced its operations in Jerusalem on July 14th of the same year. Finally, Shoman’s vision was fulfilled. |
Nonetheless, Shoman was determined to move forward. With seven investors, and a startup capital of 15,000 Palestinian Pounds, Arab Bank was registered on May 21st, 1930, and commenced its operations in Jerusalem on July 14th of the same year. Finally, Shoman’s vision was fulfilled. |
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Shoman’s son, Abdul Majeed, was born in Palestine while Shoman was away. At the age of one, his mother passed away and he was taken into the care of his paternal grandmother. |
Shoman’s son, Abdul Majeed, was born in Palestine while Shoman was away. At the age of one, his mother passed away and he was taken into the care of his paternal grandmother. |
||
Shoman wanted his son to join him in the US; however, he believed that the boy’s education in his homeland and his mastery of Arabic were more important. He waited until his son completed his primary schooling at Beit Hanina, and his studies in al-Rawda School in Jerusalem before sending for him to come to the US. |
Shoman wanted his son to join him in the US; however, he believed that the boy’s education in his homeland and his mastery of Arabic were more important. He waited until his son completed his primary schooling at Beit Hanina, and his studies in al-Rawda School in Jerusalem before sending for him to come to the US. |
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Upon Abdul Majeed’s arrival to the US, he was enrolled in a Secondary School in the suburbs of New York, where he met his father for the first time at the young age of 14. Abdul Majeed obtained both his Bachelors and Masters Degree in Economics and Banking at the University of New York (NYU) in 1931, after which he returned to Palestine to assist his father in managing the newly established Arab Bank. |
Upon Abdul Majeed’s arrival to the US, he was enrolled in a Secondary School in the [[suburbs]] of New York, where he met his father for the first time at the young age of 14. Abdul Majeed obtained both his Bachelors and Masters Degree in Economics and Banking at the [[University of New York]] (NYU) in 1931, after which he returned to Palestine to assist his father in managing the newly established Arab Bank. |
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== Trust and Commitment == |
== Trust and Commitment == |
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Abdul Majeed worked hard under the guidance of his father. Both Shomans spared no pains in safe-guarding the Bank and the clients' interests. After the British Mandate Authority withdrew from Palestine in 1948, the Bank lost its branches in Jafa and Haifa. When customers who were obliged to flee outside the country asked for their deposits, the Shomans insisted on fully redeeming all claims. This decision won the Arab Bank a great reputation and became a historical turning point in its growth: it fostered a strong commitment from the Bank towards its customers and ingrained an enormous loyalty from its customers, which prevails to this day. |
Abdul Majeed worked hard under the guidance of his father. Both Shomans spared no pains in safe-guarding the Bank and the clients' interests. After the [[British Mandate]] Authority withdrew from Palestine in 1948, the Bank lost its branches in Jafa and [[Haifa]]. When customers who were obliged to flee outside the country asked for their deposits, the Shomans insisted on fully redeeming all claims. This decision won the Arab Bank a great reputation and became a historical turning point in its growth: it fostered a strong commitment from the Bank towards its customers and ingrained an enormous loyalty from its customers, which prevails to this day. |
||
The lost branches were re-established: Haifa branch was relocated to Beirut followed by Amman, Jaffa branch in Nablus and later Ramallah. When the branch in Jerusalem was caught up in the civil disturbance, the Bank’s activities were moved to offices within the old city of Jerusalem. |
The lost branches were re-established: Haifa branch was relocated to [[Beirut]] followed by [[Amman]], Jaffa branch in Nablus and later [[Ramallah]]. When the branch in Jerusalem was caught up in the civil disturbance, the Bank’s activities were moved to offices within the old city of Jerusalem. |
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In 1948, the Bank’s headquarters were transferred to Amman, Jordan, where it was officially incorporated as a public shareholding company. |
In 1948, the Bank’s headquarters were transferred to Amman, Jordan, where it was officially incorporated as a public shareholding company. |
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== A Catalyst for Arab Economies == |
== A Catalyst for Arab Economies == |
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The decades following were considered a period of rapid expansion; during the 1940’s and 1950’s, the Bank expanded its network of branches in the Arab World with 43 branches extending throughout the Arab World, and a growing capital which has grown to reach JOD 5.5 Million. |
The decades following were considered a period of rapid expansion; during the 1940’s and 1950’s, the Bank expanded its network of branches in the Arab World with 43 branches extending throughout the Arab World, and a growing capital which has grown to reach JOD 5.5 Million. |
||
Through extensive investments in a wide range of new industries and public projects extending from Casablanca to Baghdad, the Shomans’ new Arab Bank acted as a catalyst for Arab economic developments during a period when no one was willing to take the risk. |
Through extensive investments in a wide range of new industries and public projects extending from [[Casablanca]] to [[Baghdad]], the Shomans’ new Arab Bank acted as a catalyst for Arab economic developments during a period when no one was willing to take the risk. |
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Arab Bank loans created jobs for more than 100,000 employees. In Jordan the Bank’s loans for new cement, textile and food processing plants enhanced the country’s growth rate to become second after oil-rich Kuwait in the Middle East. Aside from commercial loans, Shoman gave millions of his own and the Bank’s money to educate hundreds of Arab students by sending them to Universities in the west. Ironically, the unschooled Shoman built a USD 600,000 teachers training college in his native village of Beit Hanina. |
Arab Bank loans created jobs for more than 100,000 employees. In Jordan the Bank’s loans for new cement, textile and food processing plants enhanced the country’s growth rate to become second after oil-rich [[Kuwait]] in the [[Middle East]]. Aside from commercial loans, Shoman gave millions of his own and the Bank’s money to educate hundreds of Arab students by sending them to Universities in the west. Ironically, the unschooled Shoman built a USD 600,000 teachers training college in his native village of Beit Hanina. |
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⚫ | |||
⚫ | The 1960's brought along a wave of Nationalization which swept the Arab World as country after country gained independence from British and French colonial rule. Branches in Egypt and Syria were nationalized in 1961, Iraq in 1964, Aden in 1969, and finally Sudan and Libya in 1970. Within a period of ten years, Arab Bank lost a total of 25 branches. When Israel occupied the West Bank and the Gaza Strip in 1967, more branches were closed. |
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⚫ | |||
⚫ | Undaunted, the Bank carried on its expansion. In 1961, the Bank opened its first international location, becoming the first Arab financial institution to establish a presence in Switzerland. A sister institution, Arab Bank Switzerland was established in Zurich 1962 with another branch in Geneva opening in 1964. |
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⚫ | The 1960's brought along a wave of Nationalization which swept the Arab World as country after country gained independence from British and French colonial rule. Branches in [[Egypt]] and [[Syria]] were nationalized in 1961, [[Iraq]] in 1964, Aden in 1969, and finally Sudan and [[Libya]] in 1970. Within a period of ten years, Arab Bank lost a total of 25 branches. When [[Israel]] occupied the [[West Bank]] and the [[Gaza Strip]] in 1967, more branches were closed. |
||
⚫ | Undaunted, the Bank carried on its expansion. In 1961, the Bank opened its first international location, becoming the first Arab financial institution to establish a presence in [[Switzerland]]. A [[sister institution]], [[Arab Bank Switzerland]] was established in [[Zurich]] 1962 with another branch in [[Geneva]] opening in 1964. |
||
Even in turbulent times, the Arab Bank never defaulted on a single payment to any of its customers or partners, honoring all of its commitments regardless of the political and economical environment. |
Even in turbulent times, the Arab Bank never defaulted on a single payment to any of its customers or partners, honoring all of its commitments regardless of the political and economical environment. |
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Abdul Majeed Shoman became Chairman and General Manager of Arab Bank after his father passed away in 1974, whereby he carried on his father's mission. The Bank was already well-established with a sound financial reputation and structure. Abdul Majeed was determined to expand the Bank's activities, and set out to open new branches world wide. |
Abdul Majeed Shoman became Chairman and General Manager of Arab Bank after his father passed away in 1974, whereby he carried on his father's mission. The Bank was already well-established with a sound financial reputation and structure. Abdul Majeed was determined to expand the Bank's activities, and set out to open new branches world wide. |
||
Global expansion continued with the opening of branches in Frankfurt, London, Australia, New York, Singapore as well as many other cities. After the signing of the Palestinian-Israeli Oslo Peace accords, Arab Bank was invited to return to the Palestinian territories to open a network of branches in several Palestinian towns. |
Global expansion continued with the opening of branches in [[Frankfurt]], [[London]], [[Australia]], [[New York]], [[Singapore]] as well as many other cities. After the signing of the Palestinian-Israeli [[Oslo Peace]] accords, Arab Bank was invited to return to the Palestinian territories to open a network of branches in several Palestinian towns. |
||
Parallel to growing in size, Arab Bank expanded its scope of products and services into new areas of business. Previously emphasizing on trade and small scale construction finance, the Bank undertook a leading role in large scale project finance, both directly and through participation in syndicated loans. By the 1990’s, Arab Bank added investment banking to its established services. With more than 30 years of experience at the Bank, Abdul Majeed’s son, Abdel Hamid, succeeded to occupy the position of CEO in May, 2000. |
Parallel to growing in size, Arab Bank expanded its scope of products and services into new areas of business. Previously emphasizing on trade and small scale construction finance, the Bank undertook a leading role in large scale project finance, both directly and through participation in [[syndicated loans]]. By the 1990’s, Arab Bank added investment banking to its established services. With more than 30 years of experience at the Bank, Abdul Majeed’s son, Abdel Hamid, succeeded to occupy the position of CEO in May, 2000. |
||
Shoman’s vision combined with courage and determination navigated the Bank through difficult periods, and expanded his enterprise beyond its goals across the Arab World and beyond. |
Shoman’s vision combined with courage and determination navigated the Bank through difficult periods, and expanded his enterprise beyond its goals across the Arab World and beyond. |
||
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Abdul Majeed Shoman passed away on July 5th, 2005. His son was elected Chairman upon his father’s death. |
Abdul Majeed Shoman passed away on July 5th, 2005. His son was elected Chairman upon his father’s death. |
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In 2005, the Arab Bank reopened operations in Syria, and performed necessary preliminary arrangements to commence its activities in Iraq, circumstances permitting. |
In 2005, the Arab Bank reopened operations in [[Syria]], and performed necessary preliminary arrangements to commence its activities in Iraq, circumstances permitting. |
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In 2006, Arab Bank was granted the green-light to establish Europe Arab Bank (EAB), a London-based, fully-owned subsidiary, acquired 50% of MNG Bank in Turkey, and 50% of Al Nisr Al Arabi Insurance company in Jordan, thus introducing Bancassurance to its product variety. |
In 2006, Arab Bank was granted the green-light to establish [[Europe Arab Bank]] (EAB), a London-based, fully-owned [[subsidiary]], acquired 50% of MNG Bank in [[Turkey]], and 50% of Al Nisr Al Arabi Insurance company in Jordan, thus introducing Bancassurance to its product variety. |
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Today, the Arab Bank Group has the largest Arab banking branch network world-wide, with over 400 branches in 29 countries, spanning 5 continents. |
Today, the Arab Bank Group has the largest Arab banking branch network world-wide, with over 400 branches in 29 countries, spanning 5 continents. |
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== Our Profile == |
== Our Profile == |
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Our mission has been the road map for leading to the bank's significant role in developing Arab economies through financing strategic infrastructural projects across the Middle East /North Africa region (MENA). |
Our mission has been the road map for leading to the bank's significant role in developing Arab economies through financing strategic infrastructural projects across the Middle East /North Africa region ([[MENA]]). |
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With Headquarters based in Amman, Jordan, the Arab Bank constitutes the first private sector financial institution in the Arab World. |
With Headquarters based in Amman, Jordan, the Arab Bank constitutes the first private sector financial institution in the Arab World. |
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The Arab Bank is ranked amongst the largest international financial institutions, with a rating of A- from Fitch, A- from Standard & Poor and A3 from Moody’s. We have a capital base of over USD 5.5 Billion and Total Assets of over USD 30.5 billion. Pretax Income reached USD 790 Million in 2006, with a Net Income of USD 624.6 Million for the year 2006. |
The Arab Bank is ranked amongst the largest international financial institutions, with a rating of A- from Fitch, A- from [[Standard & Poor]] and A3 from [[Moody’s]]. We have a capital base of over USD 5.5 Billion and Total Assets of over USD 30.5 billion. Pretax Income reached USD 790 Million in 2006, with a Net Income of USD 624.6 Million for the year 2006. |
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The Arab Bank has an unmatched Global Arab branch network with 400 branches spanning 29 countries in 5 continents. We enjoy prominent positions in key financial markets and centers such as London, New York, Dubai, Singapore, Zurich, Paris, Frankfurt, Sydney and Bahrain. |
The Arab Bank has an unmatched Global Arab branch network with 400 branches spanning 29 countries in 5 continents. We enjoy prominent positions in key financial markets and centers such as [[London]], [[New York]], [[Dubai]], [[Singapore]], [[Zurich]], [[Paris]], [[Frankfurt]], [[Sydney]] and [[Bahrain]]. |
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We offer a variety of products and services covering four major areas: Personal Banking, Corporate and Investment Banking (CIB), AB Private Banking and Treasury, which are catered to serve the needs of individuals, corporations, government agencies and other international financial institutions. |
We offer a variety of products and services covering four major areas: Personal Banking, Corporate and Investment Banking (CIB), AB Private Banking and Treasury, which are catered to serve the needs of individuals, corporations, government agencies and other international financial institutions. |
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== Corporate Responsibility == |
== Corporate Responsibility == |
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In 1931, Arab Bank founder Abdul Hameed Shoman donated a 100 Palestinian Pounds to building a University in Jerusalem. Arab Bank has since been an active community partner, and a patron of charitable work. The Bank's leadership places strong emphasis on Best Practice approach towards issues related to economic and social aspects of its business, with relation to the communities of its operation areas, and stakeholders. |
In 1931, Arab Bank founder [[Abdul Hameed Shoman]] donated a 100 Palestinian Pounds to building a University in [[Jerusalem]]. Arab Bank has since been an active community partner, and a patron of charitable work. The Bank's leadership places strong emphasis on Best Practice approach towards issues related to economic and social aspects of its business, with relation to the communities of its operation areas, and stakeholders. |
||
Arab Bank believes in the interdependence of business and community, it is also aware of the need to emphasize its stakeholders' needs world wide. |
Arab Bank believes in the interdependence of business and community, it is also aware of the need to emphasize its stakeholders' needs world wide. |
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In August 2006, and during the royal visit by His Majesty King Abdullah II, Arab Bank donated 2 Million Jordanian Dinar (USD 2.8 Million), to support governmental poverty alleviation efforts in the Southern parts of the Kingdom. |
In August 2006, and during the royal visit by His Majesty [[King Abdullah II]], Arab Bank donated 2 Million [[Jordanian Dinar]] (USD 2.8 Million), to support governmental poverty alleviation efforts in the Southern parts of the Kingdom. |
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The Bank has also been active in sponsoring educational and medical institutions, in addition to providing scholarships to students both in Jordan and the Palestinian territories. Universities, schools, hospitals, youth and cultural centers, orphanages, and various NGO's are among hundreds of beneficiaries in local communities with whom the Bank has partnered. |
The Bank has also been active in sponsoring educational and medical institutions, in addition to providing scholarships to students both in [[Jordan]] and the Palestinian territories. Universities, schools, hospitals, youth and cultural centers, orphanages, and various NGO's are among hundreds of beneficiaries in local communities with whom the Bank has partnered. |
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Arab Bank's reaction towards the human tragedy caused by Hurricane Katrina in the United States was rapid and determined, contributing with a symbolic amount of USD 100,000 to the American Red Cross Disaster Relief Fund. |
Arab Bank's reaction towards the human tragedy caused by [[Hurricane Katrina]] in the [[United States]] was rapid and determined, contributing with a symbolic amount of USD 100,000 to the American [[Red Cross]] Disaster Relief Fund. |
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Since its establishment in Jerusalem on May 21st, 1930 as Arab Bank Limited, the Arab Bank has continued to grow and improve. It began operations on July 14th of the same year. On January 31st, 1990, the name changed to Arab Bank plc in accordance with Section 318 of the Jordanian Companies Act # 1 of 1989. |
Since its establishment in Jerusalem on May 21st, 1930 as Arab Bank Limited, the Arab Bank has continued to grow and improve. It began operations on July 14th of the same year. On January 31st, 1990, the name changed to Arab Bank plc in accordance with Section 318 of the Jordanian Companies Act # 1 of 1989. |
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Arab Bank was the first public shareholding company listed in the Amman Stock Exchange in 1978. |
Arab Bank was the first public shareholding company listed in the [[Amman Stock Exchange]] in 1978. |
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The Bank is constantly improving its disclosure levels and introducing higher levels of transparency through its financial statements, enabling both shareholders and customers to appreciate its ever-growing earning power, its low risk level, and its strong financial position. |
The Bank is constantly improving its disclosure levels and introducing higher levels of transparency through its financial statements, enabling both shareholders and customers to appreciate its ever-growing earning power, its low risk level, and its strong financial position. |
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Revision as of 08:02, 19 February 2008
Established in 1930, the Arab Bank has evolved from a small bank into one of the largest financial institutions in the Middle East. Today, the Group has an unmatched Arab Banking branch network, the largest worldwide, with over 400 branches in 28 countries spanning 5 continents.
File:ArabBankLogo.gif | |
Company type | Banking |
---|---|
Industry | Banking |
Founded | 1930 as Arab Bank [1] |
Headquarters | |
Area served | 28 countries[2] |
Key people | Mr. Abdel Hamid Shoman , CEO [3] |
Website | Arabbank.com |
The Founder: The Indomitable Arab
Arab Bank's history is interlinked with that of the Shoman family and its founder Abdul Hameed Shoman, whose personal life reads as an extraordinary tale of success for his time and age. Born in 1890 in the Palestinian village of Beit Hanina, four miles North of Jerusalem, Shoman was raised in a stone hut, where he began his career at the age of seven as a stone mason working in construction sites. With ambitions exceeding his age and spanning further than the borders of his village and country, Shoman emigrated to the United States of America at the age of 20 with only USD 32 in hand and became a door-to-door salesman, selling dry-good products in New York and Baltimore. His consecutive successes led him to expand and start a dress-making factory in Manhattan’s garment district.
Despite his success, Shoman was feeling home-sick and began to be consumed with an even larger vision: The establishment of a bank with joint Arab participation, a bank that would play a significant role in shaping the lives of nations and their economies.
A Vision Fulfilled
Shoman decided to return to Palestine. No sooner had he arrived home for the first time since he left to the new world than he arranged for a meeting in Cairo with Tal’at Pasha Harb, the Chairman of the Board of Directors of the Bank of Egypt. Shoman proposed the idea of establishing a joint Egyptian-Palestinian bank, with a capital of 100,000 Palestinian Pounds; however, political developments in the region forced Harb to put the project on hold. Nonetheless, Shoman was determined to move forward. With seven investors, and a startup capital of 15,000 Palestinian Pounds, Arab Bank was registered on May 21st, 1930, and commenced its operations in Jerusalem on July 14th of the same year. Finally, Shoman’s vision was fulfilled.
Abdul Majeed Shoman
Shoman’s son, Abdul Majeed, was born in Palestine while Shoman was away. At the age of one, his mother passed away and he was taken into the care of his paternal grandmother. Shoman wanted his son to join him in the US; however, he believed that the boy’s education in his homeland and his mastery of Arabic were more important. He waited until his son completed his primary schooling at Beit Hanina, and his studies in al-Rawda School in Jerusalem before sending for him to come to the US. Upon Abdul Majeed’s arrival to the US, he was enrolled in a Secondary School in the suburbs of New York, where he met his father for the first time at the young age of 14. Abdul Majeed obtained both his Bachelors and Masters Degree in Economics and Banking at the University of New York (NYU) in 1931, after which he returned to Palestine to assist his father in managing the newly established Arab Bank.
Trust and Commitment
Abdul Majeed worked hard under the guidance of his father. Both Shomans spared no pains in safe-guarding the Bank and the clients' interests. After the British Mandate Authority withdrew from Palestine in 1948, the Bank lost its branches in Jafa and Haifa. When customers who were obliged to flee outside the country asked for their deposits, the Shomans insisted on fully redeeming all claims. This decision won the Arab Bank a great reputation and became a historical turning point in its growth: it fostered a strong commitment from the Bank towards its customers and ingrained an enormous loyalty from its customers, which prevails to this day. The lost branches were re-established: Haifa branch was relocated to Beirut followed by Amman, Jaffa branch in Nablus and later Ramallah. When the branch in Jerusalem was caught up in the civil disturbance, the Bank’s activities were moved to offices within the old city of Jerusalem.
In 1948, the Bank’s headquarters were transferred to Amman, Jordan, where it was officially incorporated as a public shareholding company.
A Catalyst for Arab Economies
The decades following were considered a period of rapid expansion; during the 1940’s and 1950’s, the Bank expanded its network of branches in the Arab World with 43 branches extending throughout the Arab World, and a growing capital which has grown to reach JOD 5.5 Million. Through extensive investments in a wide range of new industries and public projects extending from Casablanca to Baghdad, the Shomans’ new Arab Bank acted as a catalyst for Arab economic developments during a period when no one was willing to take the risk. Arab Bank loans created jobs for more than 100,000 employees. In Jordan the Bank’s loans for new cement, textile and food processing plants enhanced the country’s growth rate to become second after oil-rich Kuwait in the Middle East. Aside from commercial loans, Shoman gave millions of his own and the Bank’s money to educate hundreds of Arab students by sending them to Universities in the west. Ironically, the unschooled Shoman built a USD 600,000 teachers training college in his native village of Beit Hanina.
Nationalization
The 1960's brought along a wave of Nationalization which swept the Arab World as country after country gained independence from British and French colonial rule. Branches in Egypt and Syria were nationalized in 1961, Iraq in 1964, Aden in 1969, and finally Sudan and Libya in 1970. Within a period of ten years, Arab Bank lost a total of 25 branches. When Israel occupied the West Bank and the Gaza Strip in 1967, more branches were closed.
Undaunted, the Bank carried on its expansion. In 1961, the Bank opened its first international location, becoming the first Arab financial institution to establish a presence in Switzerland. A sister institution, Arab Bank Switzerland was established in Zurich 1962 with another branch in Geneva opening in 1964.
Even in turbulent times, the Arab Bank never defaulted on a single payment to any of its customers or partners, honoring all of its commitments regardless of the political and economical environment.
Steady Expansion
The 1970s were focused on the newly emerging oil economies of the Gulf while steadily expanding in its new home base, Jordan.
Abdul Majeed Shoman became Chairman and General Manager of Arab Bank after his father passed away in 1974, whereby he carried on his father's mission. The Bank was already well-established with a sound financial reputation and structure. Abdul Majeed was determined to expand the Bank's activities, and set out to open new branches world wide.
Global expansion continued with the opening of branches in Frankfurt, London, Australia, New York, Singapore as well as many other cities. After the signing of the Palestinian-Israeli Oslo Peace accords, Arab Bank was invited to return to the Palestinian territories to open a network of branches in several Palestinian towns.
Parallel to growing in size, Arab Bank expanded its scope of products and services into new areas of business. Previously emphasizing on trade and small scale construction finance, the Bank undertook a leading role in large scale project finance, both directly and through participation in syndicated loans. By the 1990’s, Arab Bank added investment banking to its established services. With more than 30 years of experience at the Bank, Abdul Majeed’s son, Abdel Hamid, succeeded to occupy the position of CEO in May, 2000.
Shoman’s vision combined with courage and determination navigated the Bank through difficult periods, and expanded his enterprise beyond its goals across the Arab World and beyond.
Arab Bank Today
Abdul Majeed Shoman passed away on July 5th, 2005. His son was elected Chairman upon his father’s death.
In 2005, the Arab Bank reopened operations in Syria, and performed necessary preliminary arrangements to commence its activities in Iraq, circumstances permitting.
In 2006, Arab Bank was granted the green-light to establish Europe Arab Bank (EAB), a London-based, fully-owned subsidiary, acquired 50% of MNG Bank in Turkey, and 50% of Al Nisr Al Arabi Insurance company in Jordan, thus introducing Bancassurance to its product variety.
Today, the Arab Bank Group has the largest Arab banking branch network world-wide, with over 400 branches in 29 countries, spanning 5 continents.
Our Profile
Our mission has been the road map for leading to the bank's significant role in developing Arab economies through financing strategic infrastructural projects across the Middle East /North Africa region (MENA).
With Headquarters based in Amman, Jordan, the Arab Bank constitutes the first private sector financial institution in the Arab World.
The Arab Bank is ranked amongst the largest international financial institutions, with a rating of A- from Fitch, A- from Standard & Poor and A3 from Moody’s. We have a capital base of over USD 5.5 Billion and Total Assets of over USD 30.5 billion. Pretax Income reached USD 790 Million in 2006, with a Net Income of USD 624.6 Million for the year 2006.
The Arab Bank has an unmatched Global Arab branch network with 400 branches spanning 29 countries in 5 continents. We enjoy prominent positions in key financial markets and centers such as London, New York, Dubai, Singapore, Zurich, Paris, Frankfurt, Sydney and Bahrain. We offer a variety of products and services covering four major areas: Personal Banking, Corporate and Investment Banking (CIB), AB Private Banking and Treasury, which are catered to serve the needs of individuals, corporations, government agencies and other international financial institutions.
Our Values
Protect my capital, protect my community, protect my staff, and protect my name… and from that, everything else will follow. The Late Abdul Majeed Shoman (1912 – 2005)
Trust – True to our history, we will always protect the interest of our clients, shareholders and our employees. Commitment – We are fully committed to the region and to our clients – we are not a fair-weather bank. Community – We are active corporate citizens, fostering the growth and advancement of our communities. Customer Focus – Our customers come first; and our products are centered around their needs and convenience. Service Excellence – We strive to deliver a world-class service, and a great customer experience in everything we do. Teamwork – We promote teamwork over individual heroics, and we support collaboration within the Group, across businesses, and with our partners. Transparency – We value transparency, open and clear communications. People – We invest in and provide our staff the opportunity to grow and advance in their careers.
Corporate Responsibility
In 1931, Arab Bank founder Abdul Hameed Shoman donated a 100 Palestinian Pounds to building a University in Jerusalem. Arab Bank has since been an active community partner, and a patron of charitable work. The Bank's leadership places strong emphasis on Best Practice approach towards issues related to economic and social aspects of its business, with relation to the communities of its operation areas, and stakeholders.
Arab Bank believes in the interdependence of business and community, it is also aware of the need to emphasize its stakeholders' needs world wide.
In August 2006, and during the royal visit by His Majesty King Abdullah II, Arab Bank donated 2 Million Jordanian Dinar (USD 2.8 Million), to support governmental poverty alleviation efforts in the Southern parts of the Kingdom.
The Bank has also been active in sponsoring educational and medical institutions, in addition to providing scholarships to students both in Jordan and the Palestinian territories. Universities, schools, hospitals, youth and cultural centers, orphanages, and various NGO's are among hundreds of beneficiaries in local communities with whom the Bank has partnered. Arab Bank's reaction towards the human tragedy caused by Hurricane Katrina in the United States was rapid and determined, contributing with a symbolic amount of USD 100,000 to the American Red Cross Disaster Relief Fund.
Investor Relations
Since its establishment in Jerusalem on May 21st, 1930 as Arab Bank Limited, the Arab Bank has continued to grow and improve. It began operations on July 14th of the same year. On January 31st, 1990, the name changed to Arab Bank plc in accordance with Section 318 of the Jordanian Companies Act # 1 of 1989.
Arab Bank was the first public shareholding company listed in the Amman Stock Exchange in 1978.
The Bank is constantly improving its disclosure levels and introducing higher levels of transparency through its financial statements, enabling both shareholders and customers to appreciate its ever-growing earning power, its low risk level, and its strong financial position.
External links
- Official site
- Arab Bank Jordan
- Arab Bank Jordan - Elite
- Arab Bank Palestine
- Arab Bank UAE
- Arab Bank Egypt
- Arab Bank Qatar
References
- ^ [1] Arabbank.com
- ^ Arab Bank Global Network Arabbank.com
- ^ Top Management Arabbank.com