Thursday, February 28, 2019
Key issues facing my organization over the next five years
Amwal was formed in 1998 as a pecuniary planning firm for the women of Qatar under the patronage of HE Shiekha Mozah, the wife of the Emir of Qatar. As a result of Amwals success and paper it was transformed into a fully licensed investiture bank in 2005.Amwal, like well-nigh of the investment banks and asset management firms in the region, has benefitted from the incomparable economic build upth, gamey oil prices, and surplus wealth. The GCC countries be anticipate to grow everyplace seven percent in the close five old age. Qatar is unitary of the top GCC countries in economic performance. As such, Qatars economy is expected to grow 13% in 2008 as a result of free burning oil prices and the countrys ambitious gas industrialization initiatives.Following Russia and Iran, Qatar has the demesnes third largest gas reserves. In terms of energy, these reserves are expected to last for more than 200 years. This harvest is not unstable in nature and is expected to continue everywhere the ample run. During precedent U.S. Federal Reserve Chairman Alan Greenspans recent visit o Jeddah, he was quoted saying that the oil boom would go on forever and a day.All of these factors constitute resulted in a mushroom effect on the growth of different kinds of financial institutions in the region. Existing banks are go ballisticing rapidly, new banks are being set up, and many international players from US, Europe, and Asia are setting up shop in this region. In the last two years just about 280 financial intuitions have surfaced in Qatar and the United Arab Emirates (UAE).In the current market scenario, I believe that Amwal will face the following challenged as it strives to become a world class investment bankCarving its own individualism element and differentiating from its regional peersAmwal has a very strong shareholder base that includes adult local and regional organizations. For this reason Amwals identity sometimes is overshadowed by affiliatio n with one of its shareholders in the multiple transactions that Amwal actually facilitates. As a new investment bank Amwal leveraged its shareholder base to its benefit. even so as we grow it is imperative that we carve out our own identity that will build a strong brand recognition in the region. This is important because it will help Amwal to differentiate itself from its regional competitors, who lots serve on similar grounds and similar strengths. This will occur over the mid to long range period as Amwal builds on booming deals, takes steps to increase social responsibility, and invests in its employee resources.Competing with global names such as Deutsche Bank, Morgan Stanley and Goldman SachsDue to economic growth and initiatives to develop the capital markets, GCC countries have been winning in attracting global names such as Deutsche Bank, Goldman Sachs, Morgan Stanley, Barclays etc. This presents a unique challenge for a local bank like Amwal to tarry competitive du e to its relative inexperience as compared to the multinational investment banks. GCC countries have embarked on a major capital expenditure initiative, underdeveloped their infrastructure and other major projects. Qatar alone will spend over $100 billion(U.S.) over the next five years. This will help to daub Amwal as a local expert with global capabilities.Hiring and retaining key caterDue to the spur track in new market entrants, banks are competing for the best human resources and often find themselves short of a healthy bench-strength. This has been mainly due to the high turnover, shortage of seasoned professionals, and a general preference to employ Hesperian educated professionals with regional experience. This problem is more prevalent for local banks with check resources.These local banks are rely heavily on key staff such as the senior manages of investment banking and asset management. Amwal is not resistive to this problem and has recently developed a policy of ret aining good employees and back up its staff to develop further expertise by sending them for raising and allowing time off from work for academic studies. Amwal will face a key challenge of retaining staff and hiring more professionals due to circumstances beyond its control including regional factors such as increased competition and the high cost of living.Need for a better corporate governanceAnother challenge is creating the right equilibrium of power and function between the board of directors, senior management, shareholders, and internal operate departments. Amwal has grown tremendously over the last few years and is promptly planning for its own Initial Public Offering (IPO) early next year to support its current growth and future goals. During the initial years of operation, Amwals management style was very centralized with authorities and powers hold in to a few key individuals. While this is very common among most local and regional institutions like Amwal, this s tructure usually leads to a financial and strategic gap upon the exit of these key individuals.Amwal has come a long way since its transformation into an investment bank and have developed wrinkle policy principles, guidelines, internal and external regulations and monitoring mechanisms. However, as we continue to grow, expand our global reach, and prepare for the IPO, I believe these measures would need to be unceasingly reviewed and enhanced as they are critical for conducting proper corporate accountability and enhancing line of descent prosperity. Another prevailing impediment is the lack of proactiveness of the local giving medication bodies that need to substantially enhance the regulatory framework, develop stricter effort guidelines, and foster transparency. As an industry leader, Amwal is in a unique position to have a positive effect on the creation of the regulatory industry in the region.ConclusionThese observations are not only unique to Amwal. Since we are in a c onstantly changing environment it is critical that local and regional institutions identify these challenges and develop a strategic plan to respond to them. I believe that Amwal is well placed and uniquely positioned for this challenge with its sound business model and comprehensive long range strategic plan.
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