Text size:

  • Small
  • Normal
  • Large
Riders of Saxo-Tinkoff team cross at the Tour de France race this year. Pascal Guyot / AFP
Riders of Saxo-Tinkoff team cross at the Tour de France race this year. Pascal Guyot / AFP

Denmark’s Saxo Bank eyes Formula One sponsorship

Saxo Bank plans to roll out one of its flagship trading products with a UAE bank as it benefits from a renewed desire among high net worth individuals to mange their wealth directly.

Saxo Bank is considering investing in the sponsorship of a leading Formula One racing team, according to the bank’s chief executive.

“I would like to dip my toe into the water with Formula One but I need to find a modest way of trying it out,” said Lars Christensen, the CEO, while in Abu Dhabi to attend this weekend’s Grand Prix.

“There’s a possibility you might see us as a small sponsor. In all sports you have to be at the top of the game and it would have to be with one of the bigger teams.”

For five years the bank has sponsored a cycling team owned by the 1996 Tour de France winner Bjarne Riis, which helped raise Saxo Bank’s profile in the mass market, said Mr Christensen.

The cycling team ranked sixth in the International Cycling Union’s 2013 world ranking.

“There are also some high-net-worth opportunities in cycling as it is very much becoming the new golf for some in the hedge fund industry,” Mr Christensen said.

As part of Saxo Bank’s global push to attract rich customers, he said it would refine its marketing budget next year.

Away from sport, Saxo Bank plans to partner with a UAE bank to offer a flagship trading product to exploit rich people’s desire to manage their wealth directly.

The Middle East currently accounts for 8 or 9 per cent of the Danish investment bank’s global revenues, Mr Christensen said.

While Europe and Asia Pacific account for a bigger share of the bank’s business, Mr Christensen said there was potential for the Middle East’s share to grow by several percentage points.

“This region is clearly one where you have high-net-worth individuals,” he said. “There’s a higher concentration of bigger clients compared to western Europe, where we have a broader investment basis.”

Mr Christensen said the bank had “good traction” with its White Label trading platform in the region. And it was in the process of providing the platform to a UAE bank which he declined to name.

White Label – aimed at banks, brokerages and other finance companies – enables financial institutions to offer customers access to financial markets through an online trading product.

Cheaper than designing their own products, the platform allows banks to outsource their post-trading processes and other back-office operations to Saxo.

However, customers would see only the local bank’s branding, while Saxo’s role remains hidden.

In recent years, investors have become more comfortable in taking a hands-on approach to managing their wealth in the wake of financial scandals such as the US$85 billion Ponzi scheme of the disgraced financier Bernard Madoff.


Back to the top

More articles

Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 Three generations of the Hakimi family tend to their stall Crawford Market in Mumbai. Subhash Sharma for The National

In pictures: Shopper’s delight at Crawford Market in Mumbai

Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.


To add your event to The National listings, click here

Get the most from The National