1. 1 Alumination Winter 2015
JohnVeihmeyer
KPMG's Global Chairman
addresses the Partners
in Dubai
Agentofchange –– how
digital is transforming the
UAE’’s business
environment
Farhan Syed –– KPMG
KPMG Alumni
KeepingDubaifrontandcentre
Rajesh Pareek –– DIFC
Therewardsofrisktaking
Partha Thakurta –– FGB
2. 2 Alumination Winter 2015
Welcome to the winter edition of Alumination. It is
tremendous to see the ongoing growth of our
alumni program across the UAE. As the Chairman
of the alumni program –– and of the firm in the
Lower Gulf –– I know that this is a region of great
opportunity and I know that the values, the
knowledge and the networks gained while at
KPMG are the perfect cornerstone for our
alumni’’s future careers. I view our alumni program
as a fantastic example of how KPMG can continue
to support all of our people –– whether still with the
firm or as members of our alumni program.
We are looking forward to strong 2016 with great
confidence, based on a good 2015. This magazine
briefly outlines many of the events we have been
involved in over the last quarter and introduces
you to some of our recent senior hires. This,
however, should be your magazine –– so get
involved. Why not talk to our Markets team about
some areas you would like to see covered –– or
volunteer to write an article? Would you like to
feature as an alumni, following in the footsteps of
James Rigney, Partha Thakurta, or CFO Middle
East’’s 2015 CFO of the year, Rajesh Pareek.
This is the last edition of Alumination for 2015 so
I would like to close by wishing you all good things
for 2016!
Sincerely,
Vijay Malhotra
Senior Partner and CEO, Alumni Chairman
KPMG Lower Gulf
AlumniChairman’s
message
WelcometoAlumination2015Winteredition
3. 3 Alumination Winter 2015
Rajesh Pareek
Keeping Dubai front
and centre
Farhan Syed
Agent of change – how digital is
transforming the UAE’s business
environment
12
10
Partha Thakurta
The rewards of risk taking04
Inthisedition:
The rewards of risk taking
Dubai and Abu Dhabi
Keeping Dubai front
and centre
Agent of change –– How digital is
transforming the UAE’’s business
environment with Farhan Syed
3Alumination Winter 2015
Stay connected with former colleagues and friends using our alumni group on
LinkedIn – KPMG alumni in UAE.
Open to all KPMG alumni and current employees, your LinkedIn group will help you
stay up-to-date with the latest KPMG UAE insights, join our discussions or simply
expand your business network.
To join, simply search for on LinkedIn.
We also encourage you to follow the official KPMG UAE company page.
4. 4 Alumination Winter 2015
Therewardsof
risktaking:
ParthaThakurta
Partha G Thakurta is currently the
Group Head of Strategic
Business Review (SBR) for FGB,
a leading bank in the UAE.
Established in 1979 and
headquartered in Abu Dhabi, FGB
offers a full range of financial
services to business and
consumer sectors through an
extensive network of branches
across the UAE. FGB also has
branches in Singapore and Qatar,
representative offices in India,
Hong Kong, Seoul and London,
and a subsidiary in Libya. Partha
has worked for two of the Big 4,
and had a long stay with HSBC in
a range of risk management and
audit, as well as commercial and
retail banking roles, in both Hong
Kong and India.
4 Alumination Winter 2015
5. 5 Alumination Winter 2015
How did working for a professional
services firm help your career?
In those days, as a firm, we handled a whole host of
work, across what is now separated as audit, tax,
and risk advisory. The more deeply we got engaged,
the better –– because it helped us to determine our
desired future career.
We worked with a whole spectrum of business
clients, which enabled us to have a good breadth of
knowledge about how businesses work, and be able
to talk about it convincingly. I then decided to move
into the banking industry with HSBC where I
worked for 12 years before moving to FGB in 2014.
What has been the biggest
highlight of your career?
Having the courage to take risks in my
professional career by taking challenging, new
and varied roles and responsibilities. It takes
courage to realize dreams and bring meaning to
the values that are important. This includes
critical thinking, risk-taking and the ability to be a
change agent. I believe that everyone has
moments of courage and that life sometimes
involves making tough choices.
Another aspect has been the continued
development of my inter personal skills by
working and living in different countries like Hong
Kong, Singapore, UAE and India. I travelled all
over the Asia Pacific region as part of my job as
well. This provided a unique opportunity to meet
with different people, understand their needs and
aspirations and work collectively to a common
goal.
I believe strongly in the preeminence of ethics,
honesty and integrity and am proud to live by
these core values.
What do you enjoy doing
outside of work?
Finding and trying to spread happiness and love
to my near and dear ones. Reading motivational
books, networking and keeping myself healthy
are other aspects which are close to my heart.
Why were you interested in
joining KPMG’’s alumni program?
KPMG has a strong alumni program and it
provides us with a platform to network
effectively and keep in touch with the latest
news in the industry.
When did you work for KPMG ––
and were you ever based in the
UAE?
I worked for KPMG for 8 years in two
geographies (Middle East –– Abu Dhabi practice
and Asia –– Singapore and India practices). I also
had the opportunity of visiting KPMG UK and US
offices. Being the early part of my career, KPMG
provided a strong culture in becoming a true
professional. It provided a platform for us to be
associated with the leading names in the banking
and finance industry.
What is your professional
philosophy?
Believe in optimism and confidence. In my view,
there is no such thing as failure, only successes
yet to be achieved. The work-life balance is an
equally critical aspect and very close to my
heart. For me it’’s is all about making sure you
take time to live, not just stay behind a desk or
achieve your financial objectives. It does not
matter where you go in life …… what you do ……
and how much you have …… it’’s who you have
beside you in the end. I’’m very lucky to have a
supportive family.
5Alumination Winter 2015
6. 6 Alumination Winter 2015
The changing tax landscape
in the UAE
KPMG held a tax seminar for its clients and industry
stakeholders on the ““Changing Tax Landscape in the
UAE”” to share their ideas on how businesses can
prepare themselves for impending tax-related
legislation. The introduction of new tax rules can affect
how companies function, particularly in the aspect of
pricing and accounting. If new tax rules are
While it may be premature for
businesses to start making
widespread changes to supply
chain functions or to operating
and business structures, there
are a number of measures that
companies must start to
actively consider even prior to
the introduction, in order to
effectively transition to a tax
payable environment.
Nilesh Ashar,
Partner –– Head ofTax, KPMG in the UAE
KPMGlocalupdates
implemented, businesses have to ensure that dues
are correctly charged, so there is a need to review
their financial systems and operating structures.
The gathering was attended by 150 representatives
from the business community in the UAE and other
parts of the Gulf Cooperation Council (GCC) region.
6 Alumination Winter 2015
The KPMG panel: Nilesh Ashar | Balachandran Ramachandran| Arjun Nandakumar | Ashok Hariharan
Ashok Hariharan and Nilesh Ashar from KPMG
The gathering was attended by 150 representatives from
the business community in the UAE
7. 7 Alumination Winter 2015
John Veihmeyer, Global Chairman,
KPMG said ““One of the reasons we
have decided to hold our meeting
here in Dubai with partners from
across the EMA region is because
of the huge growth opportunities
we see in the region.””
welcoming the
attendees to the UAE
, Global Chairman,
KPMG International, welcoming
, EMA Chairman,
KPMG International, giving the
welcome address
H.E.SheikhNahyanbinMubarakAlNahyan
addressestheEMAPartnersConference
WelcomingmoreEmiratisonboard
As part of our dedication to the local UAE
community and as an employer of choice we take
our role in the promotion and inclusion of UAE
nationals very seriously. Munther Dajani, Partner,
heads up our Nationalisation program at KPMG.
In my tenure with KPMG UAE, I have gained professional skills in
finance and accounting, learnt to understand different
businesses and improved my communication skills so that I have
gained a high level of confidence when dealing with people.
KPMG was the first Big Four firm to initiate a formal
Emiratization program. This program drives and
delivers our commitment to work closely with the
local community and support the nationalisation
program of the UAE Government.
7Alumination Winter 2015
KPMG recently held its biannual
EMA (Europe, Middle East and
Africa) Partners’’ conference in Dubai
which was attended by over 400
senior partners from across the
region. The conference addressed
the firm’’s global priorities and how
best to respond to market
challenges.
, Global
Chairman, KPMG
International, discussing
opportunities in this region
Mohammed Zamani
8. 8 Alumination Winter 2015
AuditCommitteeInstitute(ACI)events
KPMG in collaboration with Hawkamah, the
Institute for Corporate Governance hosted a
seminar for CEOs, CFOs and other key decision
makers from businesses and other organizations
across the UAE on 10 June 2015 at the DIFC
conference center to discuss ““The risk agenda for
boards and audit committees.”” Over 150 guests
attended the event which featured a welcome
from Vijay Malhotra, Chairman and CEO of
KPMG, an overview of the risk agenda from
Harikrishnan Janakiraman, a Director with
KPMG's consulting service and a moderated panel
discussion, moderated by Dr. Ashraf Gamal El
Din, the CEO of Hawkamah.
Both Dr. Ashraf and Harikrishnan engaged the
panel on key risks relating to cyber security, fraud
risk management, regulatory and compliance risks
and quality of financial reporting and accounting
standards. The expert panelists featured Roland
Sfeir, CFO of Emirates Post Group; John Garret
representing Gulf Capital; Waqar Siddique, Head of
Risk and Compliance from the Abraaj group; and
Farah Araj, Group Chief Audit Executive at National
Holding.
Dubai
1
2 3
4 5
Captions:
Our panelists (L to R): Roland Sfeir, CFO, Emirates Post Group, Farah Araj,Group Chief Audit Executive, National Holding, John Garrett, Audit Committee Member,
Gulf Capital and Waqar Siddique, Head of Risk & Compliance, Abraaj. Vijay Malhotra giving the welcome address. Dr.Ashraf Gamal El Din, CEO,
Hawkamah, moderating the panel discussion. Harikrishnan Janakiraman presenting at the event. The attendees listen to the panel discussion.
9. 9 Alumination Winter 2015
Following our successful ACI event in
Dubai in June, our first ACI event in Abu
Dhabi took place on 13 October at the
Intercontinental Hotel on ‘‘The Risk
Agenda for Boards and Audit Committees’’.
Abu Dhabi
9Alumination Winter 2015
1
2
3
4
Captions:
Dr. Ashraf Gamal El Din, Chief Executive Officer of Hawkamah, the Institute for Corporate Governance moderating the panel discussion Our panelists (L to R):
Ahmed Maqtari, Managing Partner, Al Maqtari Auditing, Nizar Bashaireh , Head of Audit & Risk Management at DIFC Authority, Bob Sehmi, Corporate Risk Manager
with Dana Gas and Raajeev B Batra, Partner, Consulting, KPMG LG. Sudhir Arvind, Partner, Consulting, presenting at the event Fawzi AbuRass, Partner,
Audit making the opening address
10. 10 Alumination Winter 2015
Rajesh Pareek has been the
CFO of DIFC since 2011,
overseeing the financial
performance of the authority.
Rajesh is a chartered accountant
with over 16 years experience
advising key clients across a
broad range of services. Prior to
joining DIFC, Rajesh was a
Director at KPMG UAE where
he worked for more than 8
years.
What is your background?
I joined KPMG’’s Abu Dhabi practice in
November 2002 from Arthur Andersen in
India. After a few months, I was offered a
new position as an Assistant Manager in
Dubai in the audit practice. In early 2004, we
were getting a growing amount of due
diligence work, and it was increasing quickly.
I was asked to move to a split role of 70%
audit and 30% due diligence –– before long,
the percentages reversed and we set up a
transaction services office which I was asked
to lead (starting as the only employee!).
KeepingDubai
frontandcentre:
RajeshPareek
10 Alumination Winter 2015
11. 11 Alumination Winter 2015
Why and when did you leave the
firm?
In 2009 we moved into a restructuring phase in
Dubai. We picked up a very small job at DIFC ––
which quickly rolled up into a very large
engagement with a sizeable KPMG team. We
produced a report which answered a number of
questions which hadn’’t yet been asked –– and the
focus quickly changed from forensics to
restructuring and due diligence. Towards the end
of the year, DIFC offered me the role of the CFO.
I knew what was coming –– there were significant
debts that needed to be paid and/or restructured
imminently and I knew that this was a one time
opportunity. There was a lot of risk but I knew
there was also a considerable upside on the
professional front given my varied experience at
KPMG.
What is the key difference
between acting as an advisor
and being in a corporate role?
It boils down to managing risks. As advisors,
KPMG produces advice that can be followed or
ignored. As a senior executive, I am asked to
make significant judgement calls every day.
I didn’’t realise the gravity of this when I was on
the other side of the fence.
What is your professional
mantra?
Continue to upskill, don’’t be complacent, work
hard and work smart. When with a professional
firm, the system is geared up to make you work.
When you move to a corporate, that changes.
I am determined not to become complacent. As
well as doing my job, I was asked to look after HR
for a year. Now I am looking at procurement and
IT –– different context but similar challenges.
What is your personal
professional highlight?
Dealing with the DIFC restructuring. There was no
magic wand. I had huge personal responsibility
and it was a huge achievement in my view. But it
didn’’t mean that I could sit back and sit on my
laurels. In November 2014, we released a ten year
sukuk –– although I had sworn I wouldn’’t do it
again. We pushed hard to be classified as an
investment grade –– and got a ten year unsecured
Why is the alumni program
important to you?
You remember the firm when you join –– and you
remember the firm when you leave. I resigned
before the promotion announcements–– however;
I was promoted to director. I will always respect
Vijay and the firm for that.
The firm has been very good to me. And the
alumni program gives me the chance to reconnect
with people that I might have lost touch with. I
am delighted to see the growth in the programme
and look forward to its continued success.
What do you do outside work?
Weekends are given to the kids. I love horse-
riding - and try to ride two or three times a week
first thing in the morning. I ride with my daughters
over the weekend. And I try to play football a
couple of times a week. It’’s important to stay
connected and often meet friends for a chat or
shisha in the evening.
bond at an extremely competitive price. The
awards that have followed that sukuk are cherries
on the icing of the cake –– the real accomplishment
was taking on the tsusami we knew was coming
our way in 2012.
11Alumination Winter 2015
12. 12 Alumination Winter 2015
For more information on Farhan and his digital
transformation services, please contact him on:
In today’’s market, companies which don’’t
understand the significance of investing in
digital are going to be left behind. Many
Fortune 500 companies won't exist in the
next five years. Alumination spoke to
Farhan Syed, our digital transformation
leader, to get his views on why digital has
to be a vital part of any key decision
maker’’s agenda.
Farhan –– welcome to KPMG.
I wonder if you could start by
explaining why digital
transformation is so crucial in
today’’s business environment.
While some businesses are happily embracing the
latest digital technologies and effectively disrupting
traditional business models, many others are
struggling to anticipate –– or keep up with –– trends
that are increasingly difficult to predict. For senior
executives, being on top of these business-
changing and disruptive trends is increasingly
essential. Key decision makers need to fully
understand the risks and complex challenges
involved, while constantly asking how digital
technology can drive transformative growth and
help businesses gain a competitive advantage.
Why do clients choose to work
with us on digital transformation?
For the same reasons they have chosen us for all
these years! We help clients solve their most
complex problems and develop and
Agentofchange–howdigitalistransforming
theUAE’sbusinessenvironment
Farhan Syed joined the firm recently as a partner in our management consulting
practice. Recognised as a global thought leader, he took some time recently to highlight
our new digital services.
implement practical and sustainable change
initiatives. We assure them that their decisions are
sound and help them achieve their desired
outcomes.
We have been investing significantly to strengthen
our digital capabilities to ensure we bring the best
of KPMG to our clients in the form of talent, global
and local insights, thought leadership, exclusive
alliances, delivery methods and frameworks. Our
objective is to ensure our clients are successful and
capitalize on the opportunities digital has to offer to
them.
One example is our FinTech offerings for our
banking clients. We are the only firm investing
heavily in building FinTech capabilities. We have
eight dedicated listening posts across the world led
by senior partners working with FinTechs and
startups across a number of fields of play - such as
biometrics, security, next generation payments,
banks in a box and robotics. We also have an
exclusive alliance with matchi.biz (a FinTech
discovery and matching platform) which has
indexed over 350,000 FinTechs. We introduce
innovative solutions from these startups to our
clients and then collaborate with the startups to
accelerate their digital transformation journey
instead of viewing them as competition. It's not the
technology that differentiates –– it’’s the application.
We have industry-specific capabilities. Our digital
consulting professionals work with business and
technology leaders across family groups, financial
services, retail, media, telecommunications,
hospitality, property development, government,
education and healthcare organizations.
Partner - Head of Digital
BusinessTransformation
farhansyed1@kpmg.com
+971 56 520 5377
13. 13 Alumination Winter 2015
KPMG Alumnus motors ahead
The Zarooq Sand Racer is the first car
to be specifically designed for the
UAE desert
The two men behind the Zarooq Sand Racer,
Mohammed Al Qadi and Iannis Mardell.
KPMGalumniinthenews
13Alumination Winter 2015
KPMG alumni Rajesh Pareek has been honored with the
CFO of the year award at the CFO Middle East Awards.
Rajesh is currently the CFO of DIFC authority, Dubai, he
worked with KPMG UAE for over 8 years.
CFO Middle East awards
Iannis Mardell, who worked with KPMG France’’s advisory function, was part of
the team behind the Zarooq Sand Racer, the first car to be specifically designed
for the UAE desert.
The Zarooq Sand Racer was designed in the UAE by Anthony Jannarelly, who
designed the Lykan Hypersport, used in Fast and the Furious 7, and is made in
the UAE in partnership with JJ Special.
The three directors behind Zarooq have strong racing pedigrees. Mohammed
Al Qadi is an Emirati who has organised national and international races in the
UAE for 15 years, ranging from rallies to Formula One. Bruno Laffite, nephew
of Jacques Lafitte, is the French pro driver who finished in the top 5 of Ford
Formula, Renault Formula and Formula 3. Bruno was also a test driver in the US
in the Indy Car Championship and raced Lamborghinis. Iannis Mardell, British
and French with a strong strategy and business consulting background is closely
associated with the world’’s most famous Formula One racing school which
produced more than thirty F1 pilots.
What are some of the services
that you can provide?
Our digital services are wide ranging and are
focused on helping our clients solve their most
pressing and specific issues. To name a few:
• Digital strategy - we confirm the opportunity
or performance gap, articulate the digital
customer experience to capture value and
develop the realization roadmap
• Digital capabilities maturity assessment ––
we identify the required level of maturity to
retain and enhance competitive advantage in
the market place
• Digital business model design –– we help
design, launch and operate a purely digital
businesses
• Omni-channel and mobile first experience ––
we help design and deliver a seamless digital
and physical experience for customers and
employees
• Actionable insights –– from descriptive
through predictive to prescriptive insights, we
empower the front line, management and
executives to make objective, informed and
contextually relevant decisions at the right
place at the right time
• Dual speed operating model –– we help
clients transform and operate in a multi-speed
manner enabling constant innovation and
change while running the business
• Manage digital risk –– we ensure
transformations and changes are aligned with
regulatory and compliance requirements
• Data governance –– we ensure data - an
organization's most valuable resource - is
managed and protected
• Legacy modernization –– we help simplify
and optimize legacy infrastructure (processes,
policies, physical assets, supplier relationships
and systems) to support and enable new age
digital business
14. 14 Alumination Winter 2015
KPMGinthenews
In the second half of 2015, key themes that drove the news agenda cross the region included deregulation
of oil prices, new infrastructure projects, economic diversification, the future of SMEs, Islamic banking and
Sharia compliance, the introduction of VAT and a general buzz around Expo 2020.
KPMG's insightful and informative briefing on the
potential impact of tax for companies in the UAE
was featured across several media channels
including CNBC Arabia.
Robert Warcup, Director, Cyber security, KPMG
Consulting focuses on how companies can
minimize security breaches.
In a KPMG survey, almost 70 per cent of all
C-level executives said that data and analytics
(D&A) would be important to their revenue
growth.
Cities are rapidly evolving into global centres
of excellence. A recently-released white
paper by KPMG illustrates how Dubai has
adopted a unique approach to evolve into a
smart city underpinned by three themes:
communication, integration and cooperation.
A recent article by Vikas Papriwal, our Head of
Markets, focused on the opportunities and
challenges offered by innovation.
15. 15 Alumination Winter 2015
Partner, Head of Digital Business Transformation
farhansyed1@kpmg.com
+971 4 424 8985
Farhan leads our Digital Business Transformation practice. Before joining KPMG, he led
the digital consulting practice for the banking industry in the Middle East, Turkey and
Africa and the business and customer strategy consulting practice in Australia and New
Zealand for the consulting division in a global IT company.
Partner and Co-Head of P&U sector
akorn@kpmg.com
+971 2 401 4814
Andrew has joined our audit practice in Abu Dhabi from KPMG Russia. A chartered
accountant, he has over 18 years of Australian and international IFRS and US GAAP
experience, including nine years in a signing partner role for a number of listed
companies while at KPMG Russia. Andrew was the Head of Power & Utilities while at
KPMG in Moscow, and has worked across the Russian power and utilities, mining and
oil and gas sectors.
15Alumination Winter 2015
NewPartnerappointments
KPMG Lower Gulf is delighted to announce a number of new Partner appointments.
Partner, Head of Risk Consulting
Raajeev.batra@kpmg.com
+971 2 401 4839
Raajeev joins us from our KPMG India practice, where he headed the IARCS and
Sustainability practices. Raajeev has significant industry and professional services
experience in risk management, internal audit and corporate governance services and
IT controls across diverse sectors. In India, Raajeev led our Risk Consulting practice for
the infrastructure sector and set up our Indian major projects advisory (MPA) function.
Partner, Risk Consulting
tasneeml@kpmg.com
+971 2 403 0309
Prior to rejoining KPMG, Tasneem was leading the Tata Consultancy Services’’
transformation team and was responsible for the global development, growth and delivery
of finance and accounting processes for WNS. Tasneem has extensive experience in
shared services; helping companies set up shared services centers and working with them
on cost optimization. She has also worked with C-suite executives on Shared Services
Strategy and Business Transformation. Tasneem is a qualified chartered accountant (ICAI)
and a Certified Fraud Examiner (CFE) and has completed various certification programs.
16. 16 Alumination Winter 2015
• Joins from KPMG’’s US practice
• 15 years of professional experience
• CPA (Virginia), certified fraud
examiner and chartered global
management accountant
• Based in our Abu Dhabi office
Director, Forensic
okazmi1@kpmg.com
+971 2 401 4837
Promoted to resident partner in audit, Akil will also lead KPMG’’s
Learning and Development (L&D) function. He heads our Department
of Professional Practice, providing technical support and IFRS/ISA
training internally for clients and at regional events organized by
regulators like DFSA and ADAA.
Resident Partner, Audit
avanthliwala@kpmg.com
+971 2 401 4853
Brad advises clients on transaction services and has previously
worked for another Big 4 in London on transactions. Brad has
experience in an array of sectors, most notably telecommunication,
media, technology and mining sectors and serves a number of
corporate and private equity clients.
Director, Deal Advisory
bwhittfield@kpmg.com
+971 4 403 0417
Aswellasnewpartners,wearedelightedto
welcome:
• Transfer pricing expert
• Joins from KPMG’’s UK practice
• Chartered accountant (ACA (UK)) and
chartered tax adviser (UK)
• Based in our Dubai office
Director, Tax
shabanabegum@kpmg.com
+971 2 401 4837
Matt recently joined us from our UK practice where he was based in
the Consumer Goods and Retail team. Matt advises clients on a range
of transactions ranging from owner-managed businesses to listed
companies. He has worked on private equity and corporate
transactions across a wide range of sectors.
Director, Deal Advisory
mparsons1@kpmg.com
+971 2 401 4842
Moversandshakers
16 Alumination Winter 2015
17. 17 Alumination Winter 2015
Providing cutting edge solutions for
finance professionals and corporates.
Yusuf Hassan
Partner
yusufhassan@kpmg.com
+971 4 424 8912
Judit has joined KPMG
as Head of the KPMG
Business Academy.
Prior to joining the firm,
she was working with
a top audit firm in
Hungary. She has a
background in adult
education, and holds
an MBA.
Judit will further
expand the Business
Academy and promote
practice oriented
training courses to help
professionals acquire,
refresh and develop
the necessary skills to
effectively fulfill their
roles.
• IFRS training for professional excellence
• Other accounting courses
• Islamic Finance
• Managerial finance
• IPSAS training
• Internal audit and compliance
• Information technology
• Forensic trainings
• Customized Emiratization programs
Judit Karfner
Head of Business Academy
jkarfner@kpmg.com
+971 4 356 9610
KPMGBusinessAcademy
“Learning for work, learning for life”
17Alumination Winter 2015
kpmgbusinessacademy.com
Contact us:
18. 18 Alumination Winter 2015
Interestingtimesinfinancialservices
Is liquidity tightening in the Middle
East?
Yes. This was inevitable with the significant drop
in oil price which is now trading in the low 40s. A
key source of GCC liquidity is either the
government or government related entities
(GREs). Governments are using excess cash to
balance their books. The UAE banking climate is
going to tighten as drawdowns continue while
weaker oil prices filter through into the non-oil
economy. Add to this stock market volatility,
pressures in the real estate market, changing
tourist demographics, SME sector stresses and
impending interest rate increases in the US and it
is clear that the next 12 months will be interesting
for the financial sector.
If, as many regional commentators
now suggest, the oil price remains
well below the long-term average
price for a prolonged period, there
will be increasing pressure on
national budgets and growth
prospects across the region. We
thought that made it an excellent
time to speak to MuhammadTariq,
KPMG’’s Financial Services sector
lead, on his thoughts on the likely
ramifications for banks and other
financial services institutions across
the region.
MuhammadTariq
Partner
muhammadtariq@kpmg.com
+971 4 403 0308
Tariq –– many thanks for taking the time
to speak to Alumination
It is my pleasure. We are always happy to meet
and interact with our alumni and this is an
excellent initiative.
What mega-trends are driving the
financial services sector?
The financial services sector is currently faced
with a forced shift caused by a number of key
mega trends. Globally, institutions are focusing on
enhancing their regulatory capital, while digital and
broader technology advances are challenging the
traditional ways of doing business. At the same
time, there are new market participants - non-
bank financial institutions are challenging banks,
while a new generation of young customers
without traditional customer loyalties have
different expectations and are using social media
to connect, communicate or complain. This is
putting pressure on banks to find the right talent,
entering the skills race to address regulatory and
risk management pressures and technological
advances. Today’’s leaders need to keep pace with
a rapidly changing financial landscape, regionally
and locally. Couple that with the some of the
other external factors impacting the UAE and it’’s
clear why these are interesting times if you are
involved in the financial services sector.
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What solutions can KPMG offer clients
in the financial services sector?
Rather than focusing on our solutions, let’’s
understand what the financial sector is going to
need over the next 18 months. With regulatory
changes and market factors, the focus needs to be
on banking operation transformation and cost
optimization. We have developed STORM, a tool
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which has been used to help banks identify
segments which are likely to be profitable –– or not
so profitable –– once future regulatory
developments are in place. IFRS 9 is a significant
change for banks and we are very well placed to
support our clients on this journey.
Anti-money laundering (AML), anti-bribery and
corruption (ABC), know your customer (KYC) and
cyber security have always been key in this sector.
The recent incident in Sharjah with a malicious
hacker demanding US$3m in return for not
releasing confidential information will have
sharpened awareness across the financial sector.
Recent, numerous fines slapped on international
banks have also brought compliance into focus.
We have a full scale of solutions to help in this
space.
Organisations have an economic, environmental,
and social responsibility and our sustainability
reporting helps inform all stakeholders. We help
our clients in this space.
Last, but definitely not least, banks today have to
stay relevant. ‘‘Digitise or die’’ is a motto we are
seeing across the sector. We are have built a team
in this space rapidly and are well geared to work
with our clients on the digital transformation
journey.
Recent thought leadership: Evolving Banking Regulation
How is this affecting the consumer?
Banks are looking to reduce their exposures to
riskier segments, although there is continued
interest in growing secured portfolios. Increasing
competition amongst lenders for quality, secured
assets should, interest rate rises withstanding, lead
to continued competitive options for consumers.
The recent (2015 Q3) credit sentiment survey from
the Central Bank of the UAE commented on
changes in credit standards, driven by the
economic outlook, the quality of their institution’’s
asset portfolio, the change in risk tolerance, and
current - and anticipated - regulatory changes.
Regulatory changes were highlighted recently by
KPMG in ““Bank Structure: The Search for a Viable
Strategy”” where we detailed how regulatory and
commercial pressures have changed the rules of
the game in banking. We also highlighted the
dimensions where banks need to adapt accordingly,
including the potential re-pricing of loans.
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Alumnievents2015
Our first Dubai Alumni event took place on 19 May at Armani Privé. We had over 130 alumni
who attended the event, making this an excellent networking and social event.
Dubai
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Our most recent Alumni event was held at the Observation Deck at 300 in Abu Dhabi
on 17 November. We were delighted to welcome a number of new alumni members to
the event.
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Abu Dhabi
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We bring you the latest thought leadership from KPMG. If you require a digital copy of any of
our thought leadership, please get in touch with Faisal Mujeeb at ae-fmalumni@kpmg.com.
Latestthoughtleadershippublications
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KPMG is a values-driven firm and our aim is to provide
knowledge and experience for the benefit of our
clients, our people and our communities. We believe
that our responsibility to society goes beyond legal
obligations. As a result, at KPMG in the UAE we are
working to build a vibrant corporate responsibility (CR)
program which helps us act as responsible corporate
citizens within our society.
We adopt an active approach and play an integral role
in bringing real benefit to not just our business, but
our communities and the environment which
embraces us. By reaching out and partnering with
other entities within our community we further
strengthen our impact. That is why we have recently
partnered with REACH Mentoring, an organization
that addresses the issue of women empowerment
Practicingwhatwepreach:KPMG'scorporate
responsibilityprogram
by bringing together professional women from across
the region and pairing them with volunteers, both
individual and corporate, who will be their mentors,
helping them achieve a set personal goal.
KPMG UAE will be providing a number of partners and
directors to participate in the program for one year,
starting in January. Our partners and directors will
guide and advise their paired mentee. The knowledge
and experience of our people will be mapped to match
the aspirations of the mentees, helping to ensure that
partnering adds value to both parties. We are excited
about the REACH program and look forward to sharing
more details throughout 2016.
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