THE BIOGRAPHY OF WEALTH

THE BIOGRAPHY OF
WEALTH
Refined Wealth Lasts the Ages
Private Banking
Wealth Management
Bank of Sharjah
Board of Directors
HONORARY CHAIRMAN
HIS HIGHNESS, DOCTOR
Sheikh Sultan Bin Mohammed Al Qasimi
CHAIRMAN
VICE CHAIRMAN
Mr. Ahmed Abdalla Al Noman
Sheikh Mohammed
Bin Saud Al Qasimi
Sheikh Saif Bin Mohamed
Bin Butti Al Hamed
His Excellency Humaid
Nasser Al Owais
Mr. Abdul Rahman
Bukhatir
Mr. Abdul Aziz Hassan
Al Midfa
Mr. Abdul Aziz Mubarak
Al Hassawi
Mr. Saud Al Besharah
Mr. Francois Dauge
Mr. Jean-Jacques Santini
Executive Director & General Manager
Mr. Varouj Nerguizian
CONTENTS
Message from the Executive Director and General Manager
7
The Biography of Wealth
9
History of Bank of Sharjah
21
History of the Commerzbank Group
29
A Unique Partnership
33
Luxembourg as a Financial Centre
41
The Future
49
The picturesque Buheira Corniche is a significant location within Sharjah, where events like the Sharjah Water Festival
and Formula One Powerboat World Championship are held.
6
To our Esteemed Customers,
For years, we laid forth the stepping stones for corporate and private clients to move forward with us. Looking
ahead, we know that it is incumbent upon us to protect and grow the individual wealth that the UAE citizens
and residents alike have worked with determination to earn and secure.
The partnership between Bank of Sharjah and Commerzbank International S.A. that started in 2012 represents an
important step forward for the regional banking industry and a great stride of progress for Bank of Sharjah. For years,
banking within the UAE had been confined to local entities facing their international counterparts, with each entity
bringing forth the perspective, insight, and expertise of their home markets. From this polarized platform, the local
industry had disregarded the deep and vetted understanding of its international peers, beyond the borders of the
MENA region.
At Bank of Sharjah, we have strived to adopt the best practices of financial institutions from around the globe.We
understand the journey to prosperity which the region’s families and individuals have endured. Within this context,
we sought to establish a private banking platform which is founded upon the Bank of Sharjah legacy of commitment
and draws from a diversified portfolio of international financial products. We looked to the Commerzbank Group
as an organization for which the Bank has held great respect. Commerzbank holds an image of prestige and good
repute precisely because it has abided by principles of good governance and a commitment to client satisfaction that
are Bank of Sharjah hallmarks. Together we embody the resolute culture of due diligence and performance-oriented
Private Banking and Wealth Management which will serve your financial objectives today and safeguard your wealth
for the next steps in your journey.
We have been guided by our objective of strong performance and by a steadfast adherence to the founding
principles of sound corporate and investment banking. Through this lens, we have seen the Bank of Sharjah balance
sheet grow as the UAE economy prospered and as the businesses we served yielded consistent and healthy track
records.
Bank of Sharjah – with its past French legacy and future German vision in wealth preservation – stands tall to serve
you best.
Varouj Nerguizian,
Executive Director & General Manager
7
“Price is what you pay. Value is what you get.”
8
Warren Buffet
The Biography of
Wealth
9
Sharjah is known for its legacy of art, heritage and culture, represented well by the Al Hosn Fort.
10
The Real Meaning of Wealth
Wealth is often described as ‘the abundance of valuable resources or material possessions’, but the real meaning
changes according to the context.
Over the course of history, wealth has taken many different forms. Nevertheless, one thing has remained the same,
it stands for value, and value is permanent.
The First Form of Money Lived on a Farm
Throughout history, agrarian societies depended on domesticated cattle for their livelihood. Livestock such as
camels, cows, goats, horses, sheep and other animals are considered the first and oldest form of money.
Allowing sellers to set a price, cattle brought on the concept of standardized pricing and value for instance, two
goats were traded for one cow, as a cow was seen to be ‘more valuable’ than a goat, a fact that remains true to
this day.
The Exchanging of Valuables
While the trade of cattle is still considered a form of barter, the concept was further developed when it extended
to other items. The Greek philosopher Aristotle considered that every object had two uses, the first being the
original purpose for which it was designed, and the second as an item to barter in exchange for something else.
However, the system had its own set of limitations and was dependent on a coincidence of offer and demand.
Sellers had to find buyers who could afford what was being sold, and had something in return that the seller
wanted. This is when the need for a ‘standard measure of value’ was born.
11
Academic city in Sharjah - A community that accommodates major universities in the UAE and provides elite
education.
12
From Cattle to Commodity,
From Metal to Molluscs
When the Phoenicians first formed iron half-rings that resembled a pair of bull’s horns, they became the forerunners
of metal money. However, previously unvisited lands and other civilizations had no concept of cattle trade and
wouldn’t acknowledge the iron bull horn as a legitimate currency for trade. Other metals such as gold, silver and
copper were easier to value and certainly more alluring than the forged iron bull horn symbol. Gradually this made
way for the first coin that bore the image of the sovereign of the Phoenicians’ homeland.
Civilizations around the world eventually began minting their own coins, engraving images of gods and emperors
to mark their authenticity and assigning each one a different value, with the coins made of the most precious
metals evidently possessing the highest value. Ever since, coins have continued to be the most universally accepted
embodiment of money.
In the ancient societies of Africa, China and India, cowry shells from molluscs were first introduced, and are also
considered among the earliest forms of money. Found in the shallow waters of the Indian and Pacific Oceans and
bearing all the characteristics of coins such as durability, divisibility, easy recognition and transportation and an
alluring form. Various forms of shell money have been discovered on almost every continent and were considered as
legal tender up until the mid-19th century; making shell the most widely and longest used currency in history.
13
Sharjah developed as a major fishing hub, with pearl diving as the first organized industry in the region.
14
The Promise of Paper
The idea of using a durable yet lightweight medium as a promise to pay a bearer on demand originated in China
during the Han dynasty in 118 B.C. Moreover, the first known banknote was also developed in China and
had its roots in the Tang dynasty in the 7th century. Precious metals were never a portable means of trade and
merchants sought to avoid the heavy bulk coinage in large commercial transactions. Metal forms of money would be
deposited for safekeeping against a promissory note, a receipt confirming the deposit, and these deposits were once
held as proof of wealth.
True paper money did not appear until the 11th century, during the Song dynasty and later spread through the
Mongol Empire. In the 13th century, European explorers such as Marco Polo introduced the concept in Europe,
when traders started using promissory notes, which evolved with time to regular banknotes.
The use of bank notes issued by private commercial banks as a legal tender was gradually replaced by bank notes
authorized and controlled by national governments. The Bank of England was granted sole rights to issue banknotes
in England after 1694. In the USA, the Federal Reserve Bank was granted similar rights after its establishment in
1913. Until recently, these government-authorized currencies were forms of representative money, since they were
partially backed by gold or silver and were theoretically convertible into gold or silver.
However, in the Arabian Gulf, another commodity prized for its lustre was gaining in value due to its rarity, and
being discovered and traded for other more valuable commodities – the pearl.
The pearl diving industry is often considered the first organised commercial industry in the region.
15
Built in the memory of the Nation’s Father, the Sheikh Zayed Grand Mosque in Abu Dhabi is the biggest mosque
in the world.
16
Shifting the Spotlight,
Evolution of the Emirati Economy
In the 19th and early 20th centuries, pearling was the primary source of income and employment for the people of
the Gulf. Inhabitants led semi-nomadic lifestyles, diving for precious pearls in the summer and tending date farms in
the winter. However, the economic depression in the 1920s and 1930s, coupled with the Japanese invention
of the cultured pearl, irreparably damaged the industry.
In the early 1930s, the first oil company teams conducted geological surveys and by 1962, the first cargo of
crude was exported from Abu Dhabi. Oil revenues grew year by year; the income was invested in the construction
of schools, houses, hospitals and roads to improve quality of life. Eventually, the Federation that came to be known
as the United Arab Emirates was formally established on December 2, 1971.
The Al Jahili Fort in Al Ain was built in 1891 and remains as one of the UAE’s most historic monuments.
17
Sharjah has quickly evolved into a great city over the past four decades.
18
In 1972, His Highness Sheikh Sultan Bin Mohammed Al Qasimi became the Ruler of Sharjah and in the same
year, oil was discovered 80 km offshore in the Mubarak oilfield. The production of oil within two years marked
the beginning of a new era in Sharjah’s economy.
In the past four decades since formation, Sharjah has evolved from relying on agriculture, pearling and fishing to
an entrepreneurial success story with world-class infrastructure. The leadership has improved education, effectively
eliminating illiteracy, advanced the healthcare system and embraced change alongside the rest of the UAE as it
modernizes, while nevertheless remaining true to its rich history and cultural values. Today, it is a proud member of
the strong, vibrant and modern United Arab Emirates that welcomes the world with open arms.
Moreover, just a few decades ago, after the formation of the United Arab Emirates in 1971, the Ruler of
Sharjah, H.H. Sheikh Sultan Bin Mohammed Al Qasimi issued a decree calling for the creation of the first financial
institution in the Emirate of Sharjah.
Kayaking in a protected mangrove forest in Khor Kalba, Sharjah is known for its scenic beauty and native biodiversity.
19
“Without continual growth and progress, such words as
improvement, achievement, and success have no meaning.”
Benjamin Franklin
20
History of
Bank of Sharjah
21
Built in 1978, Sharjah’s Central Souq was the first shopping centre in the city and remains to be an iconic landmark
to date.
22
Bank of Sharjah Comes into Being
On December 22, 1973, Bank of Sharjah was established as the first national financial institution in the Emirate of
Sharjah and the fifth in the UAE, a landmark year when the UAE dirham was introduced.
The three founding members were - the Government of Sharjah, the Hassawi Group and Banque Paribas (later
BNP Paribas) - each held a 20% stake and the remaining 40% capital was made available to public subscription
for the first time in the UAE.
Over the last few decades, the Bank has played a big role in empowering the Emirate of Sharjah as a leading
contributor to the UAE Federation, which has boosted growth in the region. With the emergence of the UAE’s
stock markets, Bank of Sharjah became a publicly traded entity at the Abu Dhabi Securities Exchange in 2004.
Bank of Sharjah new head office, Sharjah, UAE.
23
The tallest tower in the world, Burj Khalifa, stands proud to be a local entity that has embraced and surpassed
international standards.
24
Values and Mission
Behind Bank of Sharjah’s systems and culture lie a fundamental set of principles and values that shape all its actions.
Performance, Ethics, Transparency, Initiative, Commitment and Quality structure the core values that guide us every
day, and are imprinted in the way we do business and how we contribute to society and the environment.
Our mission is to achieve strong and sustainable performance for shareholders while maintaining a commitment to our
customers and always remaining at their side as they realize their aspirations and objectives.
Presence
When a country witnesses such incredible growth over a short timeframe, it is imperative that its financial institutions
grow alongside as well. Bank of Sharjah - a corporate bank, has spread its wings over the years, opening its first
branch in Abu Dhabi in 1988, followed by Dubai in 1996, Al Ain in 2007, Dubai Media City in 2012 and
the revamped Private Banking and Wealth Management division in Motor City at the end of 2012.
Further opportunities for growth arrived in the form of acquisitions and soon became part of Bank of Sharjah’s
strategy for future success.
In 2007, Bank of Sharjah acquired Banque de la Bekaa S.A.L. in Lebanon, marking its first step outside the
UAE. By 2008, it acquired the assets and liabilities of Banque Nationale de Paris Intercontinentale, Beirut
and combined both new purchases to form a new entity called Emirates Lebanon Bank S.A.L. This venture is a
gateway to a financial network and services for current and new customers in the UAE and Lebanon.
Private Banking Wealth Management Dubai premises located in Control Tower, a site designed by Dame Zaha Hadid.
25
The legendary UAE Traditional Dhow Sailing Race is still one of the most spectacular and graceful sports.
26
An Unrivalled Track Record in the Region
In the world’s ever-changing financial landscape, Bank of Sharjah has weathered many storms.
When the UAE economy faced turbulent times, Bank of Sharjah was one of the few institutions to practice due
diligence and perform consistently, safeguarding stability, and even increasing returns for shareholders whenever
possible. The business has grown along with our clients, staying true to the motto ‘Your Partner in Progress’.
Many clients, who joined the bank in 1973 continue to remain customers to this day. The enduring relationships
with both employees and customers further uphold the culture of loyalty and commitment. We have retained almost
the same Board of Directors since inception and maintained a strong, solid financial performance.
Bank of Sharjah is a forward-thinking institution with a personalized client service and focus on wealth management
for private customers.
The Private Banking Wealth Management division is in line with the bank’s strategy to expand and diversify the
reach of its financial services in order to maintain its growth momentum.
In more recent times, Bank of Sharjah’s determination to form trustworthy partnership of the highest standing
has come to the fore, continuing to be a source of great pride. In 2012, the bank entered into a cooperation
agreement with Commerzbank International S.A. Luxembourg in Private Banking & Wealth Management.
This partnership represents an important step forward for the regional banking industry and a stride of progress for
Bank of Sharjah. After all, a great partnership begins with a great partner.
27
“Wealth, like happiness, is never attained when sought
after directly. It comes as the by-product of providing
a useful service.”
28
Henry Ford
History of the
Commerzbank Group
29
The Commerzbank tower in Frankfurt, Germany stands tall and proud with over 140 years of banking experience.
30
A Banking Legacy of over a Century
Commerzbank Group has a long tradition of corporate responsibility. Founded by merchants, merchant bankers and
private bankers in Hamburg in 1870, the Bank continues to feel bound by the values of the Hanseatic roots to
this day.
Today, Commerzbank is one of Germany’s leading banks, serving over 15 million private customers and over 1
million business and corporate clients in 52 countries. It is considered one of Europe’s foremost financial institutions
– with around 56,000 employees on average, and assets of EUR 750 billion.
Combining the experience and tradition of a German bank with over 140 years of history, Commerzbank
benefits from its headquarter in Frankfurt, Germany’s financial centre, and its presence in Luxembourg, a centre of
competence for international wealth management.
Fairness, competence and partnership are the values that Commerzbank stands for and customers trust. The
‘Commerzbank Excellence’ initiative, which was launched with this goal in mind, aims to improve the quality of
the services the Bank provides to its customers, combined with a constant focus on a culture of service and efficient
processes, thereby creating the conditions for profitable growth.
Commerzbank Group Headquarters, Frankfurt, Germany.
31
“If we command our wealth, we shall be rich and free.
If our wealth commands us, we are poor indeed.”
32
Edmund Burke
A Unique
Partnership
33
Home to many spectacular Football matches, the iconic Commerzbank Arena in Frankfurt was built in 2005 on the
grounds of the legendary German stadium, Waldstadion.
34
A One-of-a-Kind Partnership
Bank of Sharjah’s relationship with the Commerzbank Group goes back a long time, when it formed a collaboration
with Dresdner Bank’s investment banking division over 30 years ago. After Dresdner Bank merged into
Commerzbank in 2009, the relationship between the two banking institutions reached a new level.
In 2012, Bank of Sharjah signed a landmark cooperation agreement with Commerzbank International S.A., which
opened up a whole new realm of financial investment and wealth management solutions to the investors of this
region.
The partnership continues to be truly the best of both worlds, combining the trust, stability and solid performance
of Bank of Sharjah with the experience and know-how of the Commerzbank Group. The two institutions are
experts in their respective fields and regions. The combined private banking wealth management entity is a great
example of the realization of many years of successful partnership.
Signing the partnership agreement between Commerzbank International S.A. and Bank of Sharjah.
A partnership that is built on a strong foundation of trust, transparency and teamwork.
35
Bank of Sharjah’s Private Banking Wealth Management division is ideally located in Dubai Motorcity near the Dubai
Autodrome, a growing hub of commerce and development.
36
A Global Perspective for the Local Market
The agreement between the two institutions creates a new business model, greatly expanding the current offering
and opening doors for local investors to Europe through an on-ground local network, creating sustainability and a
future concept for financial success.
Commerzbank International S.A. brings its European finance specialists to the UAE’s shores through its partner
Bank of Sharjah. With the support of Bank of Sharjah’s network of branches, a new operational platform has been
created by experts to find and deliver the right products to investors with customized advice and unique solutions
tailored to their needs and adjusted according to local demands and market requirements.
The new partnership gives local clients the opportunity to open an offshore account at Commerzbank’s
International Wealth Management division in Luxembourg and access a diversified offering of sophisticated financial
products. The entity provides complete on-shore private banking and wealth management solutions with a specially
trained and dedicated team to ensure the highest level of service. This marks a positive addition to our corporate
culture, and a renewed commitment to growth.
PBWM Business Model
Customer Care
Transaction
Acquisition
Relationship
Manager
BOS
Advisory
Account
Opening
Bank of Sharjah
Commerzbank International S.A. Luxembourg
37
‘Some bonds are too strong to break’ is a defining statement for Bank of Sharjah.
38
Your On-ground Partner
Every Step of the Way
Trusting Bank of Sharjah with your wealth offers a lot of benefits beyond local expertise:
• An on-shore financial partner to invest through an off-shore European account.
• Expert research, a wide range of products adjusted to local demands and market requirements.
• Access to customized financial solutions.
• A range of customized wealth management and investment solutions, guidance and advice on the acquisition
and preservation of wealth.
• A solid, dependable investment avenue for high net worth individuals and corporate customers.
• Empowering you constantly with tools, timely knowledge, and transparent and consolidated reporting to make
the right decisions.
• Service that is personal, exclusive and full of dedication.
Moreover, the most unique part is the location of our partner Commerzbank International S.A. in Luxembourg,
which is a distinctive financial centre.
39
“Fortune sides with him who dares.”
40
Virgil
Luxembourg
as a Financial Centre
41
The symbolic Gëlle Fra (Golden Lady), Luxembourg City.
42
Luxembourg as a Financial Centre
The Grand Duchy of Luxembourg may be one of the world’s smallest nations, but it has established itself as one of
the world’s ten largest financial centres, and no wonder why.
A stable political environment, an experienced and dependable banking supervisory authority and competitive
conditions are just some of the reasons it has attracted a growing number of investors from around the globe.
As the first private banking centre in the Eurozone and the largest investment fund centre in Europe, Luxembourg
occupies a unique position in the world’s financial market. It is the second largest investment fund centre in the
world after the United States and is renowned as a very stable economy both politically and socially.
It offers investors a modern legal framework and a strong culture of banking discretion and investor protection.
As a strategic location, it is one of the most secure and aware markets with extensive knowledge of what the
international clients need; a true gateway to the European market.
Private banking and wealth management are the primary activities of the Luxembourg financial centre; from advisory
services to discretionary management, investors can expect highly qualified professional assistance, personalised
services and complete privacy.
43
Commerzbank International S.A. greatly benefits from its location in the European Union’s wealthiest country,
Luxembourg, which is continuously growing into an international financial hub.
44
Commerzbank International S.A. in Luxembourg
Commerzbank International S.A. was founded in 1969 in Luxembourg as a fully owned subsidiary of
Commerzbank AG. In 1999, it acquired a majority stake in Argor-Hereaus S.A., one of the world’s leading
precious metal refineries. Commerzbank International S.A. positioned itself as a centre of competence for
international wealth management and precious metals with worldwide expertise. Its professionalism and longstanding
experience in Luxembourg, with complete knowledge of the international market and highly qualified multilingual
specialists, come together to create a platform of international advisory expertise and offer investors a complete and
innovative range of services.
The comprehensive wealth and asset management services of Commerzbank International S.A.
are backed by exclusive knowledge and expertise in value propositions and three core competencies (Assets in
Management, Assets in Structures and Assets in Precious Metals). Offering customized solutions that match the
personal profile of customers, as the ultimate goal remains the same, protecting wealth and minimizing risk for the
best possible investment opportunities.
45
Bank of Sharjah takes pride in being known for assisting clients achieve their targets and succeed with their endeavours.
46
Creating Sustainability and Future Concept
for Financial Success
Discretionary Asset Management
Our clients’ wealth is in safe hands when an asset management mandate is specially tailored to complement their
personal needs and goals. Investors get to save time when delegating investment decisions to dedicated professional
investment and risk managers. Continuous updates are communicated through clear, transparent portfolio structures
and regular reporting. Offering Multi Asset Solutions, Absolute Return Solutions, Individual Strategies and Fund
Solutions.
Access to a Broad Selection of Investment and Estate Planning Vehicles
Investment vehicles provide concrete structures with direct access to attractive investment opportunities, all within
the competitive legal and fiscal environment of the Grand Duchy of Luxembourg. With a firm focus on preserving
clients’ fortunes, we offer unique solutions for long-term structuring and transmission of assets. A team of specialists
develops individualized concepts and supports clients in reaching their goals with a diverse selection of financial
vehicles focusing on a wide variety of asset classes and strategies. Structuring and diversifying assets by using special
capital markets and accessing simple and flexible wealth management vehicles to streamline wealth and to arrange
inheritance and succession planning preserving family’s property and fortune.
Investments in Precious Metals
As one of the world´s leading banks for investments in precious metals, Commerzbank International S.A. offers access
to its own production due to its participation in Argor-Heraeus S.A., one of the world’s leading refineries. Clients
are granted direct access to multiple-award-winning precious metals trading platforms and a range of unique products,
as well as participation in the precious metals markets’ development to help protect assets over time.
The solution diversifies clients’ wealth through an investment in ‘real value’ and not just perceived value. Facilitation,
storage in secured vaults and management of physical precious metals is one of the strongest advantages, offering also
account and custodian solutions with claims on delivery of bars and coins. From the full spectrum of non-physical
precious metals to a share in physical gold solutions, investors can be rest assured that their own wealth is securely
stowed yet always accessible.
“Your Wealth is our priority. It is our supreme good and determines our activities.”
Conservative asset
manager
High quality standards
and team approach
Transparency and
independence
Long-term approch
The
asset management
investment philosophy
Active risk
management
Multi-stage selection
process
Asset management investment philosophy of Commerzbank International S.A.
47
“From crisis emerge men determined to succeed.”
48
Sheikh Zayed Al Nahyan
The Future
49
“The future depends on what you do today.” Mahatma Gandhi
50
What the Future Holds
Bank of Sharjah truly lives by its motto of ‘Your Partner in Progress’, growing steadily alongside our customers.
With new branches, acquisitions and the cooperation agreement in Private Banking Wealth Management with
Commerzbank International S.A. in Luxembourg, our capabilities and offerings have grown to successfully meet the
unique investment needs and challenges of our clientele.
Bank of Sharjah’s biggest partners in progress are our customers. We hope that the relationship with clients continues
to grow and attain new heights of success and prosperity, just as ‘Refined Wealth Lasts the Ages’.
51
Bank of Sharjah, Private Banking Wealth Management,
Motor City, Control Tower, 31st Floor, Dubai – UAE
PBWM@Bankofsharjah.com, www.bankofsharjah.com
Tel: +971 4 4510711