Saudi Arabia
This has typically been one of the busiest countries for system sales after UAE. However, it still dropped from eleven deals in 2008, eight in 2009 and nine in 2010, to just four in 2011 and three in 2012. As such, the six wins in 2013 rather bucked the trend in most other countries in the region during the year, although the total reverted to three in the following year.
Moody’s has had a stable rating for the Kingdom since 2009
and this also applies to the ten banks rated by the credit rating agency. There are20 or so banks in Saudi Arabia, of which twelve are domestic and have the bulk of the assets.
The depressed 2011 total included Samba’s signing with
Temenos, one of the region’s standout deals. Path Solutions signed with Qinvest, and 3i Infotech picked up two Islamic customers for its lending product, Kastle, at Taajeer and Banque Saudi Fransi.
The three deals in 2012 went to Nucleus, Oracle FSS and
Temenos, the latter coming from United Installment Company, for Islamic real estate financing and vehicle leasing operations. Temenos’ flagship user in the country, which certainly had challenges along the way with its project, is Saudi Hollandi Bank (now part-owned by RBS, rather than ABN Amro), while this supplier also has the country’s largest Shari’ah-compliant bank on its fairly extensive user list, Alinma Bank. Temenos also had success in 2010 when a move to turn Bahraini Saudi into a fully Islamic bank saw the Al Salam Bank subsidiary settle on T24. Bahraini Saudi had originally selected T24 for Islamic banking in 2006 and Infosys’ Finacle, for conventional banking in 2007.
The Saudi banks are fairly heavy user of packages on the
whole and this has also been a fertile market for some niche system suppliers, such as Advent, DST andFidessa with their asset management systems. Riyad Bank signing with Calypso for broad cross-asset trading support was a notable deal in 2013, while Sungard picked up the other two, smaller, treasury deals on offer. Path and ITS had a win each, at International Islamic Trade Finance Corporation and Alawwal Financial Services, respectively. The other win of the year was an off-the- record success for Oracle FSS with Flexcube.
2014 saw a first win for SAP with its lending system, at the
central bank, the Saudi Arabian Monetary Authority (SAMA), while there were single deals for Temenos and Path. SAMA was already a user of SAP’s ERP platform. In 2015, 2 dears were awarded, 1 was won by Profile for their IMS Plus system and other was awarded by Saudi Hollandi Capital to Miles software for Money ware. Profile Software consolidated its position in the market in 2016 when it signed a deal with Al Bilad Bank for its IMS plus wealth management solution. Calypso also gained an off the record client during the year for its treasury solution.
UAE
UAE has traditionally been one of the biggest constituents of the Middle Eastern core banking systems market but has been much quieter in the last few years than previously. It recovered from seven deals in 2010 to eight in 2011 but then saw only four in 2012, five in 2013 and four in 2014. This compared with 2007, for instance, when 15 deals were registered. The market seems to have recovered in 2016 with eight deals signed during the year.
An underlying trend amidst the fall in new deals was a
pronounced shift from Dubai to Abu Dhabi. Ten of the 15 deals in 2007 had been with companies that were either based or operated solely in Dubai, including companies such as Dubai First Bank, Noor Islamic Bank, Amlak Finance and Mawarid Finance. Four of the deals in 2007 were from Abu Dhabi, including Abu Dhabi Commercial Bank, Reem Finance and Union National Bank.
In 2011, by way of comparison, of the eight deals, two were
in Dubai, one of which was SHUAA Capital for Sungard’s Front Arena treasury management system. Non-Dubai customers in that year included Reem Finance (for ITS’s Ethix core system, following a 2007 signing for Nucleus’ Finn One lending system), Siraj Finance (also Ethix) and ADS Securities (Opics), all in Abu Dhabi.
The supplier with a plurality of deals in the UAE is India-
based Nucleus, which picked up at least two deals a year from 2005 to 2008. These included lending-focused projects at Emirates NBD (2006), Emirates Islamic Bank and National Bank of Umm-Al-Qawa in (2008), and Abu Dhabi Islamic Bank (2009). Nucleus then had a couple of years with no deals, followed by one win in each of 2012, 2013 and 2014.
Three of the2011 deals were for treasury and capital
markets systems, with Misys picking up one for Opics, from the aforementioned ADS Securities, and one win each for Murex and Sungard. Of the four universal deals in the country in 2011, there was one each for TCS and Oracle FSS (both were off-the- record), and ITS had two deals for its Ethix offering. These were for the aforementioned Siraj Finance and Reem Finance. Agile FT,a new player with offices in Dubai, Singapore and India, also chalkedupa sale for its Agilis Lending Suite. The seven deals in 2010 had gone to six different vendors, which were Temenos, Oracle FSS, Agile, Polaris, Infosys and Misys, with the latter winning separate deals for Bank fusion Equation and Loan IQ.
The sparse pickings of 2012 included the Nucleus win, plus
a success for Infosys with Finacle at Union National Bank, and another Opics win for Misys. Switzerland-based wealth management systems provider, Sage SA, gained its second deal in the country, at Emirates Investment Bank.
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