Strategy and Business Overview

UGB’s key strategic objective is to create the MENA region’s premier asset management, merchant banking and investment banking group. It seeks to be the preferred gateway to the region for its clients and global partners through the delivery of both conventional and Shari‘ah-compliant services, backed by strong support, infrastructure, and processes. The Bank works with strategic partners to create opportunities that position it as a leading financial institution for the region.

Either directly or through its subsidiaries and associate companies, UGB engages primarily in asset and fund management, investment banking, private equity, and corporate banking. Other business activities include proprietary investments and treasury.

Asset Management and Investment Banking:

Asset Management

Asset and fund management activities – covering local, regional, and international markets – include discretionary and non-discretionary portfolio management, securities trading, portfolio structuring and asset allocation advice, mutual funds, investments and structuring, and alternative structured investments.

Investment Banking

Conventional and Islamic investment banking activities cover equity and debt underwriting, private placements, capital restructuring, and mergers and acquisitions.

Private Equity

Private equity activity focuses on key growth or demand sectors such as telecommunications, media, technology and energy.

Corporate Banking

Corporate banking advisory services include IPO and private placement advisory and execution, business valuation and financial feasibility studies, project finance, and due diligence.

Key business developments & initiatives in 2023

• On the Asset Management front, UGB made an opportunistic investment during the year.   In July 2023, it contributed to the first round of capital call in the Empower Fund, a Tunisia-based Private Equity Fund, that is focused on investing in high-growth SMEs and start-ups in Tunisia.  The fund is managed by UGFS-NA.   Additionally, UGB also expanded its AUM base by onboarding new clients within the KIPCO Group.
• Assets under management with UGB increased to US$ $14.3 billion at the end of 2023 compared with US$ 14.2 billion at the end of the previous year.
• UGB Group completed 9 investment banking transactions totalling US$ 1.6 billion (2 M&A deals, 4 ECM transactions, and 3 DCM transactions).
• Moreover, UGB acted as an escrow agent in a real estate transaction in 2023
• Additionally, UGB implemented a new core banking system in 2023 to safeguard the internal controls and enhance its operational efficiency
• Further, it also continued its network expansion with its subsidiary KAMCO, opening a new office in London focusing on alternative investments, particularly in real estate
• UGB has been working on certain strategic initiatives which will impact its business performance in the medium to long term. Discussions on these initiatives are ongoing and more details will be available in due course.