SAUDIA is most-followed KSA brand on Facebook

Saudi Arabian Airlines (SAUDIA), the KSA national carrier, reports that it is the No. 1 most-followed brand on Facebook in KSA, and the 6th most-followed airline brand globally.

The airline hosted its highest-ever passenger count at more than 32 million guests in 2017. The brand introduced 60 new Boeing and Airbus aircraft to its fleet last year; launched a new mobile app; and introduced new destinations as well as new sports sponsorship agreements.

The result has been an exponential growth in its follower base. SAUDIA has 7 million followers on social media. The airline recently surpassed the 1 million mark on Twitter and has more than 5.6 million fans on Facebook, and another 0.5 million followers on Google+.

VP of Corporate Communications, SAUDIA, Abdulrahman Altayeb said: “With many new exciting initiatives taking place within the airline, we are continuously focusing on the guest experience and as a result, have been sharing every new development online so that our guests can view the changes that SAUDIA is implementing.

Screen capture of SAUDIA's Facebook page, captured on 4 February 2018.

“We value our guests’ views and interactions with SAUDIA’s online channels, and so in addition to sharing news about upcoming destinations, new aircraft and new features being introduced, we also utilise our channels to listen to feedback and monitor for issues and intervene with customer care and support.”

Details:


In addition to Facebook (@SAUDIARABIANAIRLINES) and Twitter (@SAUDI_AIRLINES), the airline is also active on Instagram (@SAUDI_AIRLINES), Snapchat (@SAUDIA_AIRLINES), Telegram (@SAUDIA_AIRLINES) and YouTube (@YOUTUBE.COM/SAUDIAIRLINES).

Bayara's Social Iftar uses social media fans' recipes

Bayara, known for its dried fruits, nuts and spices in the Middle East, has organised an iftar at The Oberoi, Dubai with a twist - the dishes on the buffet menu were created from recipes crowdsourced from their social media fans.

Source: Bayara. Jean-Marc Lourau, CEO of Bayara, congratulated the winners
whose dishes were featured at the buffet and also shared the progress that
Bayara has made over the last 25 years that they have been in the market.

The invite-only iftar on June 21, 2017 took place at Nine7One restaurant at The Oberoi, Dubai. Fans and their families graced the iftar along with the management of Bayara and media personalities.

Bayara's Head of Marketing, Sylvain Joyau commented, "As a brand we have always focused on connecting with our fans and giving them the best. Driven by this passion, we came up with the idea of Social Iftar, an online-offline activity that helped us have a more intimate relationship with our customers. The event was a huge success only because of our fans and we would like to thank them for their support and love."

With a legacy of 25 years in the region, Bayara has been able to successfully build on the expertise and heritage of Gyma Food Industries, in manufacturing and distributing fast-moving consumer goods (FMCG) products across the Middle East and North Africa region. Bayara is looking forward to have many more social events for its fans in the near future to make it a brand that is Full of Life.

Alizz Islamic Bank sees new social media milestone

Alizz Islamic Bank has reached the milestone of 100,000 Facebook likes. The bank is the first and only Islamic bank and one of only two banks in Oman to experience such popularity on Facebook.

With a strong belief in the power of social media to improve customer service, Alizz Islamic Bank has significantly enhanced its overall social media presence in the past year. In addition to its Facebook achievements, the bank is the first and only Islamic bank in Oman to cross the 30,000-follower milestone on Instagram. 

Alizz Islamic Bank is now the second-most followed bank in Oman, ahead of many of the more established conventional banks and one of only two local banks that have a Snapchat presence.

Alizz Islamic Bank's strong social media presence on Twitter, Facebook, Instagram, YouTube, Snapchat and LinkedIn continues to stand out amongst local financial institutions by emphasising the significance of the 'human touch' to start a two-way conversation with the audience, engaging with them on topics of their interest, the bank said. By integrating social media into the banks existing campaigns or creating new ones that capitalize on the spirit of the Omani community, Alizz Islamic Bank has successfully raised the profile of its brand and said marketing using social media has brought solid results.

"We are dedicated to keeping our customers at the heart of everything we do and engaging with them on their platform of choice. Our social media channels give a sense of community with our social media followers; focusing on engagement and listening to what they want. Alizz Islamic Bank is proud to be at the forefront of digital tool adoption. As people rely more and more on social media to receive information and communicate, it is crucial that we as an organisation embrace digital strategies in marketing. Social media enables us to engage with customers more efficiently and with greater precision," said Moosa Al Jadidi, COO, Alizz Islamic Bank.

"Our social media channels are not just about advertising but rather about creating a connection with our customers and providing them with a plethora of channels to interact with us, as well as provide us with feedback and ask questions. We have the best online response time amongst local banks and this is what sets us apart from others and has been central to our success on every social media platform." 

INCEIF signs MoU with IFR on Islamic social finance

The International Centre for Education in Islamic Finance (INCEIF) has signed a memorandum of understanding (MoU) with the International Federation of Red Cross and Red Crescent Societies (IFRC) to leverage Islamic social finance opportunities and develop strategies and fundraising tools in support of Red Cross and Red Crescent humanitarian aid programmes.

The MoU was signed at INCEIF’s Kuala Lumpur campus by INCEIF President and CEO Daud Vicary Abdullah, and IFRC’s Under Secretary General for Partnerships, Tan Sri Dr Jemilah Mahmood.

The partnership aims to explore and expand ways through which Islamic social finance can be used as a tool to raise operational finances for national Red Cross and Red Crescent societies to respond to disasters and other crises, reduce vulnerabilities, support healthy and safe living and foster a culture of peace in at-risk communities.

As part of the agreement, INCEIF will undertake research in innovative financial instruments that could assist Red Cross and Red Crescent humanitarian and development initiatives, including the design and development of sukuk social impact bonds, waqf and zakat endowment funds and other mechanisms that make use of obligatory and voluntary faith-based donations. Pilot projects will launch soon in selected countries in Africa, the Middle East and Asia, including Malaysia.

INCEIF will also provide guidance on ways to tap Islamic social finance, connect its alumni network in 80 countries with national Red Cross and Red Crescent societies and advocate for the direct funding of programmes that alleviate suffering, build resilience and promote human dignity. In addition, the MoU includes the development of an IFRC internship programme for INCEIF students.

Dr Jemilah says Islamic social financing has the potential to help address significant financial challenges in meeting the needs of millions of people caught in crises and poverty.

“We are keen to explore innovative ways the Islamic finance sector can work with Red Cross and Red Crescent societies and demonstrate solidarity and principled action to save lives and promote dignity,” Dr Jemilah stated. “We will be eager to see Islamic social finance contribute to strengthening communities and realising the IFRC`s commitment of leaving no one behind.”

“At INCEIF, we realise that it is a winning strategy to promote the development of Islamic finance by establishing effective collaborative partnerships around the globe,” said Daud. “INCEIF is proud to add IFRC to our list of partners, which includes the World Bank, the Islamic Development Bank and the Islamic Financial Services Board. It is an honour for INCEIF to share our expertise and knowledge in Islamic finance to better society through the duty of care, which is the true spirit of Islam.”

Global Islamic banking activities to continue apace in 2016

• Global Islamic banking assets expected to reach US$1 trillion in 2015
• By 2020, the global Islamic banking industry profit pool is expected to reach US$30.3 billion
• Islamic retail and commercial banking assets continue to grow at 16% in 2014 and 2015
• Islamic banking assets in six key markets set to exceed US$801 billion in 2015
• Gulf Co-operation Council (GCC) countries added US$91 billion in shari’ah compliant assets in 2015
• Approximately 80% of international banking assets are based in Qatar, Indonesia, Kingdom of Saudi Arabia (KSA), Malaysia, UAE and Turkey (denoted as QISMUT)

The World Islamic Banking Competitiveness Report 2016*, which aims to inspire and inform the business strategies of Islamic banks through specific, actionable insights, has been published by EY. According to the consultancy, global Islamic banking assets are expected to reach US$1 trillion in 2015, with the profit pool for the global Islamic banking industry reaching US$30.3 billion by 2020.

Source: EY. 

Islamic banking continues to be upbeat, as assets are growing at 16% in 2015. EY said that GCC countries added US$91 billion in shari'ah compliant assets in 2015, with the lion's share (80%) coming from the QISMUT region - comprising the countries of Qatar, Indonesia, KSA, Malaysia, UAE and Turkey. The nine core markets — Bahrain, Qatar, Indonesia, Saudi Arabia, Malaysia, UAE, Turkey, Kuwait and Pakistan together account for 93% of industry assets,
estimated to exceed US$920 billion in 2015, notes Abdulaziz Al Sowailim, Chairman and CEO of EY MENA.

Al Sowailim listed several broad trends which will drive growth and change for the Islamic banking sector, including:

• Large Muslim populations in 10 of the 25 rapid-growth markets (RGMs) currently reshaping the world economy 
• The coming together of ASEAN Economic Community (AEC) in 2015 
• Falling oil prices, jobs-for-nationals and economic diversification in the GCC
• The launch of the China-led Asian Infrastructure Investment Bank (AIIB)
• China’s Belt & Road Initiative

“Leading Islamic banks have done well to mainstream with a competitive, sizeable business in their home markets. The combined profit pool of Islamic banks across QISMUT was estimated at US$10.8 billion in 2014, which is a notable milestone. However, the return on shareholder equity could be significantly enhanced, by at least 15% to 20%, and this need becomes more pressing in the context of the prevailing macro-economic environment," said Ashar Nazim, Partner, Global Islamic Banking Center, EY.

“The external operating environment is certainly getting tougher, given the prevailing oil price and the resulting impact on banking system liquidity and infrastructure spend. Islamic banks are in a better position to weather this storm due to the simpler nature of their balance sheets, basic products and localised operations. However, they do not appear to be ready for the digital changes that are impacting the way customers engage with banks. A fundamental review of their operating models at this stage will be critical to the success of Islamic banking across the Organization of Islamic Cooperation markets,” added Muzammil Kasbati, Director, Global Islamic Banking Center, EY.

Interested?

Download the report (PDF)

View more infographics (updated to 2014) and dive into country reports

View the Suroor Asia blog post on the 2014-2015 report

*Global Islamic banking assets are estimated based on publicly available data from 15 participation banking (Islamic banking) markets. The research and insights are primarily based on the EY Participation Banking Universe (EY Universe), which is proprietary, based on samples and is not meant to be fully exhaustive. The EY Universe analysis covers 69 participation banks and 45 conventional banks across participation banking markets. Insights are also based on interviews with banking executives and industry observers, to identify key trends, risks and priorities. Limited disclosures on participation banking windows, subsidiary operation and offshore businesses was a limiting factor.

Eton Institute to help Arabic learners with Emirati Arabic from November to December 2015

Source: Eton Institute website.

In celebration of the 44th UAE National Day, Eton Institute, a learning and development solutions provider, offers to send a new word or phrase in Emirati Arabic every day from 1 November to 2 December 2015 via a chosen social media platforms, such as Facebook, Instagram, Twitter or Whatsapp.

Interested?

To get the Arabic phrases through Whatsapp, add ‘Eton Institute’ to your contact list:  +971 55 566 1483, then send them your name via a WhatsApp message

To get the Arabic phrases on other social media, follow Eton Institute on Facebook, Google+, Instagram, LinkedIn, Pinterest, Twitter, Viki or YouTube.

AirAsia discusses social enterprises at Destination: Good this November

Source: AirAsia Foundation website.

This November 7, the AirAsia Foundation will be holding a social enterprise-related conference and marketplace at Nexus Bangsar South, Kuala Lumpur, Malaysia. Destination: Good – ASEAN Social Enterprise 2015 is the first public event organised by AirAsia Foundation, the philanthropic arm of AirAsia group, to kickstart a conversation on how big businesses and social enterprises can play a role in building equitable, sustainable and inclusive economies.

Panelists at the conference include AirAsia Group CEO Tony Fernandez as well as Richard Eu, Group CEO of Eu Yan Sang International, Vichien Phongsathorn, Group CEO of the Premier Group of Companies and Enrique Razon Jr, Chairman and CEO of Manila's International Container Services.

The marketplace will feature 30 top ASEAN social enterprises, such as Bettr Barista Coffee Academy, the Rags2Riches and traditional art performers from Cambodia Living Arts.

Interested?

Buy tickets

NBK hosting iftar meals all across Kuwait

The National Bank of Kuwait (NBK) has shared that its annual Doing Good Deeds programme for this year's Ramadhan will include hosting iftar banquets that will be held near the Grand Mosque. 

Fast-breaking meals will also be offered at various mosques and other locations throughout Kuwait. NBK will also distribute iftar meals via special convoys that will tour the more crowded areas in the country. NBK staff volunteers will manage and supervise the fast-breaking banquets.

Abdelmohsin Al Rushaid, NBK Public Relations Manager said: “NBK will ramp up its charitable activities as a good corporate citizen of Kuwait. NBK hopes to encourage a greater sense of community and charity during Ramadhan and encourages its customers and staff to participate by ‘doing good deeds’ all month long.

“It is a well rooted tradition that has been carried out by NBK each year in its efforts to continuously have an active role in the Kuwait society. NBK believes in the power of doing good.”

The NBK Ramadan Social Program will also include several visits by volunteers to NBK Children’s Hospital and other social institutions.

EY predicts maps the challenges for Islamic banking

Source: EY.

The Islamic banking industry has gone mainstream in several core markets. The combined profit of participation banks, or banks which adopt an interest-free model, crossed the US$10 billion mark in 2013 says EY. By 2019, the consultancy expects collective profits to touch US$37 billion as the industry continues its double-digit annual growth. 

According to EY, global Islamic banking assets attained compounded annual growth rate (CAGR) of around 17% from 2009 to 2013. Approximately 95% of international Islamic banking assets of commercial banks are based out of nine core markets, five of which are in the GCC (Saudi Arabia, UAE, Qatar, Kuwait and Bahrain). The market share of Islamic banking assets in Saudi Arabia, UAE, Qatar, Kuwait, Bahrain and Malaysia is now between 20% and 49%*. 

Islamic banks in Saudi Arabia, Kuwait and Bahrain represent more than 48.9%, 44.6% and 27.7% market share respectively.  Positive progress has been has made in Indonesia, Pakistan and Turkey, with 43.5%, 22% and 18.7% CAGR respectively from 2009 to 2013.

Gordon Bennie, MENA Financial Services Leader at EY, said:
“The six rapid-growth markets (RGMs) – Qatar, Indonesia, Saudi Arabia, Malaysia, UAE and Turkey (QISMUT) –commanded 80% of the international Islamic banking assets at US$625 billion in 2013. QISMUT Islamic banking assets are expected to continue to grow at a five-year CAGR of 19% to reach US$1.8 trillion by 2019.”

Source: EY.

The 2014-15 World Islamic Banking Competitiveness Report – Participation Banking 2.0 from EY explores how digital innovation is set to positively disrupt traditional banking models. Key findings for the report include:

• International Islamic banking assets with commercial banks are expected to exceed US$778 billion in 2014.
• The global profit pool of Islamic banks is set to triple by 2019.
• Islamic banking assets in the six core markets of Qatar, Indonesia, Saudi Arabia, Malaysia, UAE, Turkey (QISMUT) are on course to touch US$1.8 trillion by 2019.
• Islamic banks in Saudi Arabia, Kuwait and Bahrain represent more than 48.9%, 44.6% and 27.7% market share respectively.
• Positive progress has been has made in Indonesia, Turkey and Pakistan, with 43.5%, 18.7% and 22.0% CAGR respectively from 2009-2013.

The report states that the time is ripe to transition to "Participation Banking 2.0", or technology-based, service-driven value propositions. EY analysed the sentiments of over 2.2 million customers’ social media posts on their banking experiences with Islamic banks in Saudi Arabia, Bahrain, Kuwait, UAE, Malaysia, Indonesia, Turkey, Qatar and Oman. The results showed that customer satisfaction is mediocre for many Islamic banks, which shows how critical it will be for Islamic banks to invest in raising quality of service and understand digital banking. 

Ashar Nazim, Global Islamic Finance Leader at EY, observed during the launch of the report in late 2014 that the Islamic banking industry demands a fundamentally different approach to profitable growth. 

"Customers have mixed emotions about their experiences of dealing with Islamic banks. In the future, growth will be most significant for the banks that are able to strengthen customer experience through the use of digital technology. Banks that do not keep pace with technological advances are expected to face serious pushback from mainstream customers who will gravitate toward the larger conventional players who can deliver on digital,” he said.

In its research, EY found that:

• Four out of every 10 participation banks are not “listening”.
• Better retail banking experiences could attract a sizeable majority to switch banks.
• Customers do not just want their bank to have a digital presence. They want it be tailored to their lifestyle relationships and connections.
• Migration from physical to digital channels requires more attention. Half of the banks surveyed did not have a Twitter account and only one in 18 banks offered full customer engagement on social media.
• Banks should invest in analytics to build rich insights into customers’ delights and pain points and personalise user experiences.

Ashar added: “Customers are increasingly active online and vocal about their experiences. Going mainstream and building a customer base that is based on added value to the customer has not been easy for Islamic banks. Bridging the performance gap requires listening to customers. The transformation of customers’ banking experience across channels and all touch points is going to be crucial as digital and social banking and customer expectations continue to evolve. Understanding and analysing changing customer patterns can help anticipate needs, and encourage desired behaviours. Most importantly, user experience conversations have to be an ongoing activity and not a discrete project. Institutionalisation of these core capabilities requires boards and executives to efficiently shift their spending from running the bank to developing the bank.”

EY also noted that the returns on equity (ROEs) of Islamic banks remain approximately one-fifth lower than those of traditional banks in the same markets. This performance gap could cost its shareholders, and to some extent the investment account holders, up to US$17 billion in total forgone profit over the next five years. Structural transformation and scaling up are therefore becoming critical to improve shareholder returns.

The consultancy predicts that trade finance, mobile payment solutions and managing the cost of regulatory compliance will drive the next phase of profitability. Most Islamic banks remain underweight when it comes to their role in trade finance business.

Ashar said: “The key driving markets for Islamic banking will continue to be Saudi Arabia and Malaysia, with Turkey and Indonesia also establishing themselves as large Islamic banking centers. With increasing market size and greater propensity for the adoption of technology-based, customer-centric solutions, the industry can be expected to further reduce its profitability gap with respect to conventional benchmarks. The challenges of going mainstream will be eliminating operational silos and leveraging customer insights to improve risk management, pricing and channel performance.”

Interested?

View the complete infographics.

*The research and insights are primarily based on the EY Participation Banking Universe (EY Universe), which is proprietary, based on samples  and is not meant to be fully exhaustive. The EY Universe analysis covers 114 banks across participation banking markets. Insights are also based on interviews with banking executives and industry observers, to identify key trends, risks and priorities. The analysis excludes Iran.