Bank of the Year Awards 2024 Honoring Excellence in Middle East Banking

The Bank of the Year Awards 2024 is a hallmark of excellence, honoring financial institutions that set new standards in innovation, resilience, and customer satisfaction. Across the Middle East, banks are redefining what it means to succeed in the modern financial landscape. From harnessing cutting-edge technologies to embracing sustainability and customer-centric strategies, this year’s winners showcase the power of banking as a driver of economic and social transformation. In this in-depth analysis, we explore the achievements of each country winner and the broader implications for the future of banking in the region.

Bahrain: Al Salam Bank

Al Salam Bank has earned the title of Bahrain’s Bank of the Year 2024, solidifying its reputation as a leader in innovation, strategic growth, and financial performance.

1. Strategic Acquisitions:
   Al Salam Bank’s acquisition of Kuwait Finance House Bahrain (KFH Bahrain) in May 2024 is a pivotal moment in its growth strategy. This acquisition bolstered the bank’s balance sheet by 28%, expanded its market share, and enhanced its ability to offer diverse financial services. This was preceded by its increased stake in its Algerian subsidiary, showcasing its ambition to grow its footprint across international markets.

2. Banking Solutions:
   The bank’s use of artificial intelligence (AI) has been transformative. Its AI-driven digital financing top-up feature processed 77 applications, totaling BD850,000 ($2.26 million), within its first launch month. In December 2023, the bank executed its first AI-driven asset sale, a milestone that demonstrates the future potential of AI in enhancing banking efficiency and customer experiences.

3. Financial Resilience:
   Al Salam Bank’s consistent financial performance and ability to integrate innovation into its core operations have made it a beacon of progress in Bahrain’s financial sector.

Al Salam Bank’s initiatives not only highlight the role of technology in banking but also underline the importance of strategic growth and innovation in maintaining competitive advantage.

Jordan: Arab Bank

Arab Bank, a long-standing pillar of Jordan’s financial sector, has reclaimed its title as Jordan’s Bank of the Year 2024, thanks to a combination of strong financial performance and groundbreaking digital initiatives.

• Financial Growth:
  Following a challenging 2022, Arab Bank posted a 52% profit increase in 2023, alongside an 8% rise in Tier 1 capital. Its return on equity climbed from 5.2% to 7.3%, reflecting robust financial management and strategic investment.

• Digital Leadership:
  Arab Bank launched Acabes, a fintech hub operating in Jordan, Dubai, and India. Acabes has spearheaded innovations like Omnify, the first banking-as-a-service platform in the region, which enables third-party companies to integrate financial services seamlessly. This initiative earned the Open Banking Award 2024, underscoring its regional impact.

• Empowering SMEs:
  The bank extended its SME-focused solutions, such as mobile apps that streamline payroll, payments, and document management. This approach has strengthened the role of small businesses in Jordan’s economic growth.

Arab Bank’s emphasis on digital innovation and SME support has not only strengthened its position in Jordan but also set a precedent for regional banking transformation.

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Kuwait: Kuwait Finance House (KFH)

For the second consecutive year, Kuwait Finance House (KFH) has been recognized as Kuwait’s Bank of the Year 2024, owing to its commitment to customer engagement, sustainability, and digital innovation.

1. Tam Bank’s Success:
   KFH’s launch of Tam Bank, Kuwait’s first Sharia-compliant digital bank, has revolutionized the banking experience for younger customers. Its innovative features, such as customizable prepaid cards and transaction classification tools, have driven adoption, supported by a social media-based invite-a-friend initiative.

2. Global Connectivity:
   The opening of a state-of-the-art customer service center for its Turkish subsidiary, Kuveyt Türk, reflects KFH’s focus on enhancing cross-border banking services.

3. Sustainability Initiatives:
   KFH launched a green financing campaign to promote environmentally friendly construction practices, aligning with global ESG standards and reinforcing its role as a leader in sustainable banking.

KFH’s ability to integrate Islamic banking principles with modern innovation makes it a trailblazer in Kuwait’s banking sector and a model for others in the region.

Oman: Sohar International Bank

Sohar International Bank has been named Oman’s Bank of the Year 2024, standing out for its strategic growth and customer-focused innovations.

• Merger with HSBC Oman:
  Sohar International’s acquisition of HSBC Oman in 2023 expanded its market share by 50%, workforce by 80%, and asset base by 62%. This merger positioned the bank as Oman’s second-largest financial institution, significantly boosting its operational capacity.

• Digital Offerings:
  The bank revamped its mobile app to include functionalities such as travel bookings, hotel reservations, and gift card purchases, catering to modern customer preferences.

• Expansion:
  Sohar’s plans to open its first branch in Riyadh underscore its ambitions to expand beyond Oman, strengthening its regional presence.

Sohar International’s growth strategy not only enhances its competitiveness but also contributes to the diversification of Oman’s financial sector.

Palestine: Arab Bank

Arab Bank made history by being named Palestine’s Bank of the Year 2024, demonstrating resilience and innovation in a challenging operational environment.

1. Digital Banking Platform:
   Arab Bank introduced Reflect in Palestine, offering features like cashback rewards and exclusive merchant discounts. This initiative has enhanced financial inclusion and accessibility.

2. SME Empowerment:
   The Arabi Next app for SMEs was extended to Palestine, providing tools for managing payroll, payments, and document storage, thereby fostering business growth.

3. Account Opening:
   The bank launched digital onboarding for its Arabi Mobile app, enabling customers to open accounts remotely, and improving accessibility in underserved areas.

Arab Bank’s initiatives in Palestine highlight the role of resilience and adaptability in driving financial inclusion in challenging environments.

Qatar: Qatar National Bank (QNB)

Qatar National Bank (QNB) reclaimed its position as Qatar’s Bank of the Year 2024, driven by innovation and strategic expansion.

• Payment Solutions:
  The launch of the QNB Payment Gateway, Qatar’s first locally established payment solution, has transformed merchant transactions, offering features such as digital wallets and e-invoicing.

• Expansion with Bebasata:
  QNB introduced its Bebasata digital banking platform in Egypt, reflecting its commitment to expanding its footprint in the MENA region.

• Financial Stability:
  With an 8.1% increase in net profits and a return on equity of 17.7%, QNB demonstrated financial resilience and operational excellence.

QNB’s focus on innovation and cross-border growth cements its position as a leader in Qatar and a key player in regional banking.

Saudi Arabia: Alinma Bank

Alinma Bank has been recognized as Saudi Arabia’s Bank of the Year 2024, excelling in digital transformation and technological advancements.

1. Youth-Focused Banking:
   The iz digital banking platform, targeting young customers, has attracted 90,000 users and 180,000 downloads within its first month, offering features like bill splitting and shared savings goals.

2. Leadership:
   Alinma introduced Alinma GPT, a language model-powered tool for coding, and IBM Safer Payment, enhancing its fraud detection capabilities and operational efficiency.

3. Financial Growth:
   The bank reported a 34% increase in net profits for 2023, with return on equity rising to 17.2%.

Alinma Bank’s emphasis on technology and youth engagement positions it as a pioneer in Saudi Arabia’s rapidly evolving banking sector.

UAE: Emirates NBD

For the second consecutive year, Emirates NBD has been named UAE’s Bank of the Year, excelling in innovation and regional expansion.

• Wealth Management:
  The ENBD X app introduced a wealth management platform catering to diverse investment needs, including ETFs and fractional bonds.

• High-Net-Worth Clients:
  Emirates NBD launched Signature by Priority Banking, offering exclusive benefits and personalized services for ultra-high-net-worth individuals.

• Growth in Saudi Arabia:
  The bank expanded its operations in Saudi Arabia, increasing retail lending by 27% and opening its 15th branch in the kingdom.

Emirates NBD’s focus on personalized services and digital innovation underscores its leadership in the UAE and the GCC region.

Emerging Trends in Middle East Banking

The Bank of the Year Awards 2024 highlights several transformative trends that are reshaping the region’s financial landscape:

1. Digital Transformation:
   From AI-powered solutions to digital banking platforms, technology is at the forefront of Middle East banking.

2. Sustainability Initiatives:
   Banks are increasingly integrating green financing and eco-friendly practices into their strategies, aligning with global ESG goals.

3. Regional Integration:
   Cross-border expansions and collaborations are fostering economic growth and financial inclusion across the Middle East.

The Bank of the Year Awards 2024 celebrates institutions that exemplify excellence, innovation, and resilience in the Middle East’s banking sector. These winners are not just financial powerhouses; they are pioneers of change, driving sustainable growth and transforming customer experiences. As these banks continue to evolve, they pave the way for a more inclusive, innovative, and impactful future for the global financial industry.