Egypt mobilises corporate sector

In the private sector, AAIB is making a positive difference in public health and education


Combining tradition and modern banking, Arab African International Bank (AAIB), established in 1964, is Egypt’s fastest growing bank in terms of size and profitability. This growth rate substantiates AAIB’s vision to be the leading financial group in Egypt, providing innovative services with a strong regional presence, being the gateway for international business into the region.

The bank’s growth was given further momentum in 2008 with the establishment of new subsidiaries: Arab African Investment Holding (AAIH), Arab African Investment Management (AAIM), and Arab African International Securities (AAIS).

AAIH is AAIB’s main investment arm.  It’s main operations are: Arab African Investment Management (AAIM) and Arab African International Securities (AAIS). With the vision of being one of Egypt’s leading investment institutions that incorporates companies covering various sectors, AAIH sets a keen eye on the region as a possible field of activity.

AAIM is the bank’s first company established in late 2006, AAIM currently manages three funds in addition to investment portfolios related to individuals and entities. Furthermore, AAIB’s Shield Equity Fund has been recognised as the best performing open end equity fund by the Egyptian Investment Management Association in 2009 achieving 33 percent growth over the year. Juman Money Market Fund was launched in April 2009 and has currently a NAV exceeding EGP 600 MM.

AAIS was acquired by AAIB in 2008 whereby a complete revamp took place including Management, HR, location, branding and logo. Accordingly, AAIS’ ranking has improved impressively from 94th place in December 2008 to be placed in the 37th rank in 2009. The company offers a full-range of brokerage activities including same
day trading, online trading and margin lending.

Arab African International Bank is a major contributor to the Egyptian debt capital market with a powerful role in structuring, managing, book-running and successfully closing syndicated loans. The bank is a high-end service provider of innovative and customised solutions to leading local and regional corporates and international investors.

AAIB has commercial banking operations in the United Arab Emirates (UAE), with branches in Dubai and Abu Dhabi.  The regional office in Dubai acts as the focal hub for the group’s corporate business across GCC countries and is the launch pad for the future expansion of branch network, within the Gulf countries. The principal focus of our business in UAE and across the Gulf remains corporate banking and trade finance activities.

With only 20 percent of Egypt’s population dealing with banks, AAIB sees retail as a viable growth area and a fertile field for introducing innovative products and services to the market. AAIB is the first to introduce credit cards to Egypt in the eighties and the chip technology in 2003 through its capacity as both issuer and acquirer. In 2007, AAIB launched a variety of innovative products and services. With the Visa Mini Card, it introduced the smallest credit card to the Egyptian market following its earlier introduction of smart technology cards.

Merchants also benefited from technology enhancement as AAIB introduced GPRS points of sales where the bank maintains its leading market share through the migration of all its merchants POS to accept cutting edge smart card technology at highest security standards. The bank also strengthened its Merchant Program by launching merchant loans availing optimal financing to expand size and scope of their business activities guaranteed by the value of total electronic payment transactions settled between the bank and the merchants, thus eliminating the need for collaterals or personal guarantees.

Along with this, Click2Shop complements AAIB’s merchant portfolio, being an internet payment gateway enabling merchants to accept online payments via their websites.

In 2007, and with a track record at the Cairo Pediatrics specialized hospital since 2004, AAIB launched its foundation for social development, “We Owe it to Egypt”. Although established by the bank, its scope and objectives extend far beyond the bank’s identity with its primary goal to enact a nation-wide initiative that inspires and mobilizes the corporate sector towards making a fundamental and positive difference in the fields of public health and education in Egypt. In 2009, and in cooperation with another local foundation, We Owe it to Egypt donated a piece of land to the Cairo University Specialized Pediatric hospital – a public facility treating more than 1 million children every year, the newly donated land is to witness a day care annex that will be built by the Japan International Cooperation Agency (JICA) as a subsidiary of the already existing hospital. The foundation currently takes part in renovating two other public health institutions: The National Cancer Institute and Mansoura University’s Urology and Nephrology Centre.

In 2008, AAIB’s mandate to add value to stakeholders was institutionalised through establishing a CSR Unit with the objective of enacting professional adherence to codes of conducts and ethics in dealing with stakeholders. This is enforced through AAIB’s engagement within international organizations that enlighten and substantiate its CSR policies. AAIB is a member of the UN Global Compact which focuses on human rights, labour standards, the environment, and anti-corruption. AAIB has also joined London Benchmark Group (LBG), a London-based organisation that provides standard parameters measuring the effectiveness of corporate contribution to community development.

In January 2009, AAIB announced its adoption of the Equator Principles, to be Egypt’s first bank to sign the agreement. A leader in corporate finance in Egypt’s growing and well diversified economy, AAIB has vested interest in adopting Equator Principles to further substantiate social, environmental, and moral considerations across different sectors of the economy, particularly through its vast network of corporate clients.