2. Study on Personal Loans in the UAE and
alternative means of customer acquisition for
AFGEM
6. Joint venture between Al Futtaim group and GE
Al-Futtaim Group, one of the most respected corporations in the
UAE
•Automotive •Electronics
•Retail •Financial Services
•Real Estate •Construction
•Watches & Jewellery •Insurance
7. World’s Largest Retailer Finance Program Provider
World’s Only Global Independent Auto Finance Company
Emerging Global Mortgage Provider
Operates in 55 countries worldwide
Financial Highlights Product Portfolio
•2007 Earnings: US $4.3 billion Auto Loans
•2007 Assets: US $211 billion Personal Loans
Consumer Durables Loans
Credit Card
15. Bank Credit to residents, Dec
(Dh bn) 2005 2006 % change
Total 353.1 474.2 34.3
Personal loans for business 70.5 88.0 24.9
Trade 85.1 92.6 8.9
Construction 41.9 54.3 29.7
Government 39.3 47.9 21.8
Personal loans for consumption 28.1 31.2 14.7
Source: Central Bank of the UA E, Quarterly Statistical Bulletin.
2007
(Dh bn) 2005 2006 Sept 30th
Bank Assets 624.9 865.9 1064.8
Bank Deposits 426.5 558.2 651.4
Loans and Advances 379.1 515.4 645.3
Personal loans for consumption 28.1 31.2 41.1
Commercial loans 68.8 87.9 -
Source: Central Bank of the UA E.
17. TOP BANKS RANKED BY NET PROFITS($000)
Ran Net Net Growth Y-
k 07 Bank Name Profit-07 Profit-06 O-Y (%)
1 Emirates NBD 1,072,893 815,330 31.59
2 Dubai Islamic Bank 683,197 429,637 59.02
3 National Bank of Abu Dhabi 681,114 573,451 18.77
4 Mashreqbank 578,800 447,200 29.43
Abu Dhabi Commercial
5 Bank 567,636 584,590 -2.9
6 First Gulf Bank 546,800 418,146 30.77
7 Union National Bank 321,100 274,845 16.83
8 Commercial Bank of Dubai 257,143 163,649 57.13
Abu Dhabi Islamic Bank 157,129 93,804 67.51
9
10 Bank of Sharjah 109,843 87,167 26.01
Source: Gulf Business Magazine
18. Self
Employ Standard AF-GE
Mashreq ADCB Barclays Citi
ed Chartered Money
Loans
Max
Amount 250 250 150 250 100 250
(AED)
Max
48 36 48 48 48 60
Tenor
Interest
Rate % 22-24 23 19-22 23 26 21-22
p.a
19. Salarie Standard Mashreq ADCB Barclays AFGE
d Chartered M
Loans
STL Non- STL Non- STL Non- STL Non- Non-
Based STL Based STL Based STL Based STL STL
Max
Amount 250 100 250 150 250 150 150 120 180
(AED)
Max
48 48 72 48 72 48 60/72 60 54
Tenor
Interest
Rate % 11-14 21-25 9-12 19-21 10 18-22 19-23 19-26 21-23
p.a
22. Sample size 40 to understand customer expectations for
personal loans process
Questionnaire
Snowball Method
34. • Partnership with residential and commercial rented -
space leasing companies
• Overseas Remittance
• Cosmetic and dental surgery financing
• Partnership with Dubai metals and commodity exchange
• IKEA, furniture and interior designer
35. Finance IKEA’s home and office furnishing solutions:
Contract Sales
Home Planning
Kitchen Planning
Children Furniture
Promoting through IKEA catalogues circulated in all
emirates
36. 85 % expatriate population- mostly all a part of the
workforce
Budding Free Zone Companies
Demand for furniture is expected to grow with real estate
developments on the rise-ADNEC
Convenience coupled with affordability
37. Tie up with hospitals in Dubai healthcare city or Dubai healthcare
authority
Plastic Surgery Hospital I
Plastic Surgery Hospital II
American Academy of Cosmetic Surgery Hospital (AACSH)
Advertise on cosmetic surgery portal in UAE
Immersivemedical.com
Promote in Beauty world Middle East Exhibition or Confederation of
Surgeons in UAE
38. Market Size
AED 1.5 billion in retail sales – CAGR of 8.4 per cent
Consumption
AED 1,229 per head- highest in the world
Market Research Results
Cosmetics and personal care sector in UAE has grown 12% annually
over the past three years, with sales value of AED 7.70 billion
(US$2.1 billion) in 2007.
Source: zawya.com , arabianbusiness.com
40. Association with rented space leasing companies
who provide serviced offices and residential
apartments.
Rental discounts and monthly lease payment
convenience
Loans for startup and emerging businesses
42. •Commercial rental rates
increases at 22%
•During 2006, 11536 new
licenses were issued for business
start-ups
•Rental Rates have tripled and
reached on an average AED 257
in 2007
•More than 50 million sq. feet of
new office space by 2009/2010
Source: www.asteco.com
43. Studios 1 BR 2 BR
International City 42000 58000 95000
Al Barsha 70000 100000 135000
Jumeirah Lake Towers 75000 105000 140000
Dubai Marina 85000 107500 150000
Jumeirah Beach Residence 85000 105000 147500
Greens 85000 110000 155000
Old Town 100000 140000 175000
Palm Jumeirah 100000 140000 200000
Source: www.asteco.com
44. Risk Involved
Funding new ventures is risky
GE being non-banking institution cost of funds is high.
Business expected depends on partner efficiency
Suggested Partners
Regus
ServeCorp
Alliance Business Center
Sentinel
Best Homes
45. Etisalat offers free remittance to any country
Etisalat provides mobile money transfer facility
Partnership with UAE exchange
UAE exchange processes 5000 transactions per day
Capitalize on UAE exchange network
46. Composition of Population
84.6 percept UAE is expatriates
75 percent of the workforce – Indian and Southeast Asian
Remittance through prohibited channels
Outbound are as high as $10bn a year and expected to become
$22bn by 2008.
India: 90 %
Nepal: More than 50%
Hawala (Illegal Transfer) is to avoid tax, unawareness and avoid
remittance fees Source: www.meed.com
47. Tie up with “Dubai metal and commodities center” and
funds investing in commodities
Advertise and promote the personal loan product as
commodity financing
Portals : Thebulliondesk.com and basemetals.com providing
live commodity prices in UAE
49. High Volatility
High Prices
Limit for initial margins and delivery margins hiked
50. Questionnaire
We are students of SPJCM at Dubai. As a part of our course curriculum we are required to
undertake a research project..............Your co-operation in completing the questionnaire
will be appreciated. (Please expand)
1. Are you
UAE national
Expatriate, please specify nationality. __________________________
2. Are you
Self employed
Salaried
3. In case of self-employed, please specify the annual business turnover
Less than 50 million AED
More than 50 million AED
If salaried, please specify your salary per month?
Less than 4000 AED
4000-15000 AED
More than 15000 AED
4. Please specify the name of your organisation/company.
___________________________________________
5. Have you ever taken a personal loan?
Note: A personal loan can be taken for any purpose , however it should not be
described explicitly as an auto loan, education loan or loan for consumer
durables!!!
Yes Name of loan provider __________________________
No
6 .If yes then what has been the purpose(s) of taking the loan?
a.
b.
c.
If No, then will you ever take a loan? Please specify the possible reasons for which you
would take a loan?
51. 7. How often do you/would you opt for a personal loan?
Once a year
Once in 6 months
Once in 3 months
More Than four times a year
8. Please specify the range of loan amount (in AED) you have taken/would take as loan
on an average at any given point of time?
Upto 15000 aed
15000 to 180000 aed
180000 to 250000 aed
More than 250000 aed
9. When in the need of a loan, who would you first approach for obtaining it?
Your Banker
Other Financial Institution
Friends
Family
10. Please rate the factors below, in order of priority that you consider important for
taking a personal loan?
(1-most important, 5 least important)
• Rate of interest
• Equated Monthly Instalment (EMI)
• Documentation required
• Time period of loan (Tenure)
• Relation with institution
• Promptness of loan disbursement
11. How would you inquire for a personal loan?
Call a helpline(such as a toll free number)
Call your personal banker
Others (Please specify)