Alvaro Hernandez-Maureta Lopez, Business Director of AresbankIn this interview, he analyzes how specialized banking has become the engine of expansion for Spanish companies in África del Norte y Oriente MedioWith a historical perspective spanning more than half a century, the executive details the keys to operating in markets that, although complex, present growth projections far exceeding the European average.
Aresbank (Banco Árabe Español) is a financial institution with more than 50 years of experience, specializing in the management of trade flows between España and the countries of the Arab world. With a shareholding structure that links local and international capital, it has established itself as the key strategic partner for companies seeking security in complex markets such as Libia, Argelia to Emiratos Árabes Unidos.
Alvaro, cWith extensive experience in corporate and international banking, he leads the strategy to support Spanish exporters, providing expert insight into mitigating political and commercial risks in the region. MENA (Middle East & North Africa).
What is your assessment of these first 25 years of the 21st century? How has the way Spanish companies approach financing in these regions evolved compared to two decades ago?
Alvaro Hernandez-Maureta LopezLooking back, in the year 2000, exporting to the north of África It was practically off-limits to large corporations. Small and medium-sized enterprises (SMEs) had little access to these markets because they were highly complex environments, with significant cultural barriers and intricate bureaucracy. Furthermore, financing and financial solutions that were truly tailored to their needs were nonexistent; often, businesses relied on correspondent banks that didn't even have a physical presence in the destination country.
AHLThe first major evolution came in the 2000s, taking advantage of the tree economic. That's when large-scale commercial operations begin to be generated with countries like Argelia, Marruecos o Egipto, and España It began to establish a strong presence. Subsequently, with the 2008 crisis and the euro crisis, Spanish companies felt a pressing need to expand their markets and grow internationally to offset the drop in demand in their European domestic markets. This led to another major push towards these destinations, with roles such as international business manager emerging in banks. Today, there is a normalization: companies are fully aware of the IncotermsThey handle letters of credit and are able to accurately differentiate the risks associated with each market.
What critical role does it play today? Aresbank How can a Spanish company operate safely in areas where traditional banks sometimes fall short?
AHLThe finance director needs to ask themselves what a specialist bank offers compared to a generalist bank. Often, a generalist bank is unable to provide solutions. for these very specific markets. This results in financial terms and conditions that are not adapted to the reality of the transaction. This lack of understanding leads to an overly cautious approach to the market, ultimately resulting in many missed opportunities.
AresbankAs a specialized bank, we have been providing concrete solutions for 50 years. We're not just talking about financial products, but a complete institutional architecture. We are an Arab bank with Arab shareholders, and we have been building local relationships in our destination countries for over half a century. All this experience and our network of contacts is what we offer to clients who want to export to the region with complete confidence.
Looking ahead to 2030, what are the biggest challenges and opportunities offered by economies like that of Argelia or the area MENA?
AHL: The FMI It projects GDP growth in the region of around 4% or 5%, which in itself generates enormous interest for exporters. If we analyze by sector, I would highlight the following as one of the most important: renewable energy and the energy transition. Countries like Egipto They aim to generate 50% of their energy from renewable sources by 2030. This will drive up demand for engineering projects, materials, and high-tech equipment.
I also see a great opportunity in the sector of infrastructurewith monumental projects such as the Visión 2030 de Arabia Saudí or Mundial de Marruecos in 2030. On the other hand, the agri-food sector is a permanent asset; the Arab market perceives the Spanish exporter as a supplier of high qualitywhether in livestock, oils, or processed foods. Finally, we must not forget information technologies and strategic consulting, driven by the digitalization reforms being demanded by organizations such as the Banco Mundial.
What financial solutions or instruments are you currently prioritizing to support exporters?
AHLWe handle three main blocks of solutions. The first are the credit letters and documentary remittances, essential to cover collection risks, both the political risk of the country and the credit risk of the counterparty. The second is the working capital financing, where we provide lines of credit, Factoring as a Financial Tool for Managing Seasonal Fluctuations in Trucking international and ski pass for letters of credit. Finally, the currency hedgingCurrencies in these markets can be very volatile, and having this risk covered is what truly protects the company's profit margins.
What advice would you give to a finance director who is considering entering these emerging markets today?
AHLI would give him five fundamental pieces of advice. First, ensures paymentAn export can be very lucrative, but the risk of non-payment is real and must be mitigated with instruments such as a letter of credit. Second, covers foreign exchangeIt is the most volatile market there is, and this risk should not be left unchecked. The third is finance the working capital cycle conservatively; market terms MENA They tend to be lengthy due to customs clearance and logistics, so you have to be prudent with the timing.
In fourth place, Don't skimp on insuranceBecause that's what protects your profit margin. And finally, Choose a bank that knows the local market, that has exporting to these markets in its DNA, as is the case of Aresbank.
| Concept / Indicator | Key Fact | Context / Country |
|---|---|---|
| GDP growth | 4% - 5% | Region MENA |
| Renewable Energy 2030 | 50% of the generation | Egipto |
| Infrastructure Projects | Visión 2030 and World | Arabia Saudí / Marruecos |
| Market Experience | 50 years of history | Aresbank |
Key points and frequently asked questions about exporting to the MENA region
What are the main barriers that SMEs face in these markets?
Historically, the main challenges have been cultural barriers, bureaucratic complexity, and a lack of appropriate funding. Today, the challenge lies in managing currency volatility and ensuring payment in politically risky environments.
What role do letters of credit play in current operations?
They are a critical tool that allows mitigating both the counterparty's credit risk and the political risk of the destination country, ensuring that the exporter receives payment once the documentary conditions are met.
Why is "conservative" working capital financing recommended?
Due to the logistical times, shipments, and customs clearances in the region MENA They tend to be longer than expected, requiring financial planning to avoid cash flow problems due to operational delays.
Any questions about this news?
Talk to Coexia, the AI of the foreign trade
