Dubai, 12 May 2008 – Deutsche Bank announced today that it has recorded a 100% annual increase in its foreign exchange trading volumes year on year since it offered FX as an asset class to its clients in the Middle East.
Recently, Deutsche Bank for the fourth year running secured the lead position in EUROMONEY’s annual FX survey as the largest foreign exchange bank by volume. Its share of global turnover broke the 20% barrier for the first time this year, to record a 21.7% global market share. The Bank was also voted as the top provider of FX services globally.
The global foreign exchange market continues to grow at an accelerated pace, with reported turnover rising by 41% in 2007 to US$ 175 trillion from US$ 125 trillion in 2006. Growth in reported turnover in the Middle East is estimated at 42% annually and is poised to increase.
Ricardo Honegger, Head of Global Markets for the Middle East and North Africa at Deutsche Bank said “Deutsche Bank is the market leader in foreign exchange in the region, and our most notable success has been our ability to achieve a high level of penetration across the full spectrum of the Middle East client-base. The growth in our global market share reflects a very healthy contribution from Deutsche Bank’s regional FX franchise. We have witnessed a 100% annual increase in volumes since introducing FX as an asset class to our regional clients almost three years ago. As at May of this year we have been able to achieve almost 80% of total volumes recorded last year.”
To reflect the strong economic growth in the region, Deutsche Bank FX has installed a hybrid Local/London model, to deliver the best of the Bank’s global network to regional clients.
Abdulkarim Alkassem, Director – Global Markets at Deutsche Bank, said “The growth of our foreign exchange business in the Middle East is largely due to Deutsche Bank’s FX products that are innovative and provide low volatility and high return; and are coupled with active and continued risk management. In addition, the appetite of investors in the region for asset classes that allow them to diversify and hedge at the same time has grown, and FX is high on their investment agendas.”
Deutsche Bank has been a leader is championing FX as an asset class in the region. By its own estimates, the Bank has executed around 20% of all FX transactions involving Middle Eastern currencies during 2007/2008. In addition, Deutsche Bank enjoys the leading position in MENA with 38% of the total FX market share.
Deutsche Bank FX provides clients in the region with the ability to trade FX spot, forwards, swaps and options in a conventional and Islamic format. The Bank also offers the “autobahn” platform for trading and pricing; and “dbFX” the online retail FX trading platform. In addition, Deutsche Bank FX provides strategic FX management for large cross-border M&A trades.