2012 was an eventful year, with the key global central banks announcing fresh stimulus measures, bringing in a much-needed respite for asset markets. Globally, economic data remained mixed, with pockets of strength in the US, while eurozone data was broadly disappointing. Moreover, the fiscal cliff overhang in the US weighed on investor confidence. The year also saw a change in leadership in China, while the US witnessed a close fight for the presidency. The standoff between China and Japan over a territorial dispute led to geopolitical worries, which continue as this article is being written. While the MENA region also had its share of geopolitical tensions and risks of Arab Spring contagion, most of the GCC economies remained unscathed as massive economic packages alleviated any possible social tensions in the region. The GCC economies witnessed strong economic growth, with most GCC oil exporters operating at close to capacity owing to the tight supply of oil. The IMF has estimated the GDP growth for the MENA region in 2012 at around 5.3 percent, with oil exporters performing better than oil importers. What to expect As we look ahead to 2013, even as the global economy appears to be slowly getting into better shape, it is likely on an extended slow growth path. The successful political transition in the two major global economies, the US and China, has removed a lot of political uncertainty, and economic indicators in these economies are showing signs of improvement. However, significant tail risk remains due to […]

By the end of 2012, we at Boubyan Bank had completed the first three years of our Five-Year Strategy (2010-2014). The strategy has certainly realised many of its objectives; last year, we returned to profitability and were even able to pay dividends to our shareholders. The realisation of these strategic objectives can be attributed to a key set of factors: our return to core banking activities; and expansion within the Kuwaiti market by providing our corporate and individual products and services in a fresh manner. The latter, in particular, led to our becoming more competitive and resulted in a rise in our market share. In 2010, we set ourselves the target of having 30 branches by the end of 2014: by the close of last year, we already had 22 and are planning to open six or seven more this year. All are, or will be, in residential areas with large populations, so we can be closer to our customers. By the end of 2014, we now expect to have exceeded our pre-set goals. Direct market research In order to maintain our excellent level of service, the Bank offered a variety of products and services targeting different sections of society. Some of these products were not new to the Kuwaiti market, but we remain the sole provider of others. Instead of relying on the common draw of prizes, we chose to adopt a different, more distinguished style of promotional campaigns, under the slogan “With Boubyan, all are winners”. As part […]

When George Stephenson invented the steam locomotive and then went on to build the Stockton and Darlington railway in 1821, he changed the way people and merchandise got around for good. Less than 100 years later airplanes were crossing the Atlantic, and another 40 years after that the Boeing 707 was in operation. According to Robert Gordon’s study on innovation published by North-Western University “the audacious idea that economic growth was a one-time-only event has no better illustration than transport speed. Until 1830, the speed of passenger and freight traffic was limited by the ‘hoof and sail’, and increased steadily until the introduction of the Boeing 707 in 1958. Since then there has been no change in speed at all, and in fact airplanes fly slower now than in 1958 because of the need to conserve fuel.” When women entered the workforce in earnest in the mid-20th century, significant gains were made in terms of growth. The same applies to increasing the level of education and training for workers. But extensive growth is limited, in that it is subject to diminishing returns. If this were the only viable way of growing, in the end incomes would result slightly above the subsistence level. Intensive growth is driven by the evolution of the way workers, capital and resources are made, which allows for enduring improvement in wages and can allow for growth to occur even as populations decrease. The main factor behind this type of growth is technology. Over the last quarter […]

Contrary to popular belief, having a professional-looking website is actually less important today than it has been in the past.  In today’s business environment, the emphasis is on developing a respectable company image via public forums.  The big name is LinkedIn.  Today’s internet-savvy customers will look at your company’s LinkedIn profile to get an idea of what services you provide, what experience you have, and what kind of relationships you have with customers and other businesses.  Potential customers want to see genuine endorsements of your company from previous customers on LinkedIn.  So how can your company make the most out of its LinkedIn presence?  First, make sure the focus of your LinkedIn description is on the customer.  This means emphasizing to your LinkedIn viewers why customers buy your product rather than simply describing your product and its features.  Every key member of your company should have a profile that reinforces your company’s core message.  Use your company’s LinkedIn profile as a means of keeping customers updated on significant events for your brand.  These events could include a big sale, a new hire, or a new product. Instead of working to create a long, superfluous biography on your company website, work toward bringing potential customers to your LinkedIn profile.  The purpose of a company LinkedIn profile is to inform potential customers of what your company represents and why your customers buy from you.  Once your company has mastered the art of LinkedIn, its potential for marketing to today’s generation of social […]

He is due to commence talks with Greek Prime Minister Antonis Samaras today, with the two countries financial situations being the main point of discussion. Reports indicate that Anastasiades will be asking for Greece to provide €2bn from its €48bn bank recapitalisation package to support Cypriot lenders. Little over a fortnight ago, Anastasiades, said that in his role as President he would make Cyprus’s bailout his top priority. This radical move shows how far he is willing to go to fulfil that promise. “We’re doing everything we possibly can to pull Cyprus out of crisis but the road ahead is not strewn with roses,” Anastasiades said in talks with Greek premier Antonis Samaras. Cypriot banks had previously invested heavily in Greek bonds but lost around €4.5bn when the EU decided to reduce the Greek debt by about 75 percent. The talk comes as Alexander Dobrindt, the general secretary of the Christian Social Union (CSU), said Europe should continue working on an exit strategy for Greece. Dobrindt, who is a close ally of German chancellor Angela Merkel, told German newspaper Die Welt am Sonntag: “The greatest risk for the euro is still Greece.” He said: “We have created a situation that gives Greece a chance to return to stability and restore competitiveness. But I still hold that, if Greece is not able or willing to restore stability, then there must be a way outside the eurozone.” Ahead of Anastasiades’s departure, Archbishop Chrysostomos of Cyprus, suggested that the island would return to […]