Peter Sands, Standard Chartered Group chief executive, speaking in Abu Dhabi, said: "We do see lots of opportunities here. If you look at revenue growth in the Middle East, it was up 25% in 2009. So despite all of the challenges, we’ve grown and we see lots of potential here."
Last year, provisions against non-performing assets in the Middle East and South Asia (Mesa) region accounted for 55 per cent of the bank’s global provisions against bad corporate loans, according to the annual report released this month.
Total provisions in the region, including corporate and consumer banking, reached $811 billion (Dh2.9 trillion), almost 4.5 times the amount set aside in 2008, and representing 40 per cent of the bank’s total provisions.
Standard Chartered is one of three British banks represented in the creditor committee negotiating a settlement with Dubai World to restructure $26 billion of debt. Dubai World has said it intends to have a formal proposal ready by the end of this month.
Sands said talks with Dubai World are continuing. "We’re confident these discussions will arrive at the right outcome, which will be pragmatic and fair to all parties," Sands said.
Shayne Nelson, Standard Chartered Middle East and North Africa chief executive, said his bank was optimistic on the potential of UAE. "Look at the fundamentals of the Dubai economy, take out property … the fundamental drivers of tourism, logistics, manufacturing, free zones. They’re still doing well. The underlying strength of Dubai is still there."
