How does Abu Dhabi fit into the MENA business strategy of The Bank of Tokyo-Mitsubishi UFJ, Ltd (BTMU)? Abu Dhabi is an integral part of BTMU’s MENA strategy, contributing to […]
How does Abu Dhabi fit into the MENA business strategy of The Bank of Tokyo-Mitsubishi UFJ, Ltd (BTMU)?
Abu Dhabi is an integral part of BTMU’s MENA strategy, contributing to a significant portion of our assets and profits in the region. And as one of the most stable and fast-growing areas in the region it is expected to remain BTMU’s key market in the MENA region. Abu Dhabi and Japan maintain a long-standing, strong relationship at multiple levels, especially in the oil trading area, where both countries are important partners. In addition to oil and gas and trading companies, there is an increasing number of top-tier Japanese companies with advanced technologies in other sectors, investing or planning to invest to contribute to the development of non-oil sectors under Economic Vision 2030.
BTMU recently chose to co-finance a $3 billion loan to the Abu Dhabi National Oil Company (ADNOC). What does this mean for both your bank’s Abu Dhabi portfolio and the development of the UAE energy sector?
The $3 billion Japan Bank for International Cooperation (JBIC) co-financed energy and natural resources loan to ADNOC was in support of its investment to increase oil and gas production, and is of high importance to both Abu Dhabi and Japan. The oil and gas sector is the most important in Abu Dhabi as it is the primary source of revenue and accumulated wealth, which will then be used to develop various non-oil sectors for the achievement of a diversified and sustainable economy under Abu Dhabi Economic Vision 2030.
How is BTMU working to support UAE banking and finance institutions?
We provide support to UAE financial institutions and Asian businesses, mainly in the form of direct loans and trade finance. We provide direct loans to financial institutions on a selective basis to support their funding. Additionally, we are keen to assist UAE financial institutions with respect to trade flows, especially between the Middle East and Asia. We also pursue collaboration with local financial institutions in the import/export transactions area and bond issuance for Japanese corporate customers. As the largest Japanese bank, we are also able to assist the expansion of business and presence in Asia, which seems to be an increasing trend among local financial institutions.
How does BTMU leverage on its international operations to develop capacity in its UAE workforce?
MUFG has the most extensive global network among Japanese financial groups with over 550 bases in more than 40 countries, covering 40 million retail accounts and 500,000 corporate clients globally. Our workforce in the UAE is also in a position to leverage on such strength in international operations to support any customer requirements.
Are you looking to grow market share in Abu Dhabi’s rapidly developing market?
In January 2013, the Abu Dhabi Government announced a projected $90 billion in expenditure over the next five years. We understand this is part of the long-term Abu Dhabi Economic Vision 2030, in which the government will try to develop 12 focus sectors and five enabling sectors as part of its diversification plan. Most of our existing customers are government-related entities in many of the strategically important sectors set out in Abu Dhabi Economic Vision 2030. Such sectors include oil and gas, petrochemicals, water and electricity, aerospace, industry, and financial services. We are always keen to look into any opportunities that meet our internal criteria and allow us to contribute to the development of Abu Dhabi.