“Our home is where our heart is. The home market is our biggest opportunity. From the beginning we have been focused $600bn of the $1trn dollar Islamic finance industry” says Adeeb Al Solwailim, chief executive officer of Falcom Financial Services.
The young investment bank began operations just as the financial markets around the world witnessed their biggest crisis ever, and required a courageous act of leadership to be established. Today, Falcom is a leading new player in local brokerage and has beaten some of the established players with its online decision-making tools and client services. It has also been recognised for its work internationally, winning nearly 30 international awards.
Its model of empowerment and innovation is also paying off. The launch of an exchange-traded fund (ETF) during very challenging economic times is a bold move; Falcom was the only bank to come up with two ETFs to enable international investors to participate in the Saudi growth story – in so doing also inventing an ETF risk management tool.
Falcom’s local equity fund beat the Tadawul Index by 37 percent, and having put in a superb performance for the last three years in Saudi Arabia has gone on to become the best Islamic fund in the region.
Falcom’s investment banking group has also been active, handling two IPOs in a market which did not see too much action. The team has however stayed focused and our brand has gained the trust and confidence of our clients.
With its corporate office based in Riyadh, the bank has eight investment centres situated in Saudi. With a well-spread regional footprint, the bank is in an excellent position to take advantage of the common currency, fast emerging capital markets and cross-border deal flows. The founders started with a capital base of SAR1bn ($267m) making it one of the largest start-up investment banking operations in the region.
Falcom has also established itself as a major player among the newly-licensed investment banks and has championed investor empowerment. The bank has gained significant market share in its local brokerage business and its online services are among the best in the region.
GCC leadership
Falcom’s leadership began by spotting and filling out the gaps in investor knowledge and their hunger for information related to the capital market. Catering to this, it created an investor information portal, falcomwatch.com, well before launching products and services.
The second aspect of Falcom’s leadership is built around its delivery channels for trading. No other financial institution has invested in six fully-fledged delivery channels for the benefit and convenience of the investor.
Its online trading platform provides automatic and integrated information on investors’ portfolios; clients now have real-time awareness and much needed accuracy for their market positions to support real time decision making under volatile market conditions. Falcom’s asset management team’s innovative sukuk fund was a first for the GCC region as well, and its local equity fund has returned nearly 37 percent since inception.
Falcom is a client-centric organisation which promises intelligent investment ideas. Technology has played a major role is orchestrating innovative solutions as more and more clients get online. Falcom has been providing clients with six delivery channels to trade well before the established banks woke up to it. On the investor empowerment front, its online information portal has gone through a comprehensive upgrade. Now, more and more investors are using the Falcomwatch website for corporate information. Falcom is also at the forefront of index development, with the first licensed index by the Saudi stock market.
Falcom provides a significant contribution to the private equity space, incubating companies ranging from logistics to consumer finance to insurance. It has also pioneered the launch of two shariah complaint ETFs in the MENA region. With the ETFs, Falcom had to invent as well as invest in a whole new risk management tool: classical models all fell short, as derivatives and other hedging instruments are not allowed under Shariah law.
As a pure play investment bank, Falcom’s business lines are corporate finance, brokerage and asset management. The bank has a fully-fledged treasury operation and has one of the biggest buy and sell research teams in Saudi. The bank’s premises are all designed to seamlessly deliver bespoke service to top tier clients.
To be ready for emerging opportunities, it is important for the bank to stay ahead of the competition, with ideas that perform and a brand that is respected by its clients. Falcom responds to the changing times with innovation and is constantly looking for ideas that will deliver value to customers.
