GIB's platform for future growth has solid foundations in its highly capable syndications team and its fast-growing financial advisory capacity. Last year, there were no mainstream project finance deals that GIB did not lead arrange. And with the bank posting a 24 per cent rise in net profits last year, there is little reason to suspect any strategic shift is on the way.

Interesting commentary

The composition of the rest of the rankings provides an interesting commentary on the geographic weighting of the regional deal flow. With few other GCC banks committed to aggressive cross-border lead arranging, busy local markets have thrown up busy local banks. Qatar National Bank (QNB) sits comfortably on a fast growing deposit base in what is arguably the region's most interesting market. Unsurprisingly, it participates in most Qatari deals and last year lent into Bahrain for the first time. With major borrowings planned in Doha this year, QNB is likely to maintain its position near the front of the pack.

A comparatively quiet year in Saudi Arabia could not suppress Banque Saudi Fransi, which finished third in the rankings having participated in all four domestic transactions. However, muted activity did see the other Saudi heavyweights slip towards the bottom end of the top 10. Limited domestic opportunity was tied to the ongoing reluctance of the Saudi Arabian Monetary Agency (SAMA - central bank) to allow them to participate in cross-border transactions. The argument runs that SAMA wants them to keep their powder dry - and their balance sheets well stocked - for the glut of deals that are queuing up in the domestic market. The next couple of years could see the dams burst in Saudi Arabia, with a string of major power and petrochemicals deals on the way.

The rankings also provide evidence of strategic shifts elsewhere. Bahrain-based Arab Banking Corporation, long a mainstay of regional project finance transactions, had a very quiet year in 2003, slipping to 13th from fourth in 2002. A reluctance to lend longer than 10 years and a growing interest in higher-margin, small bilaterals than participation in the big-ticket transactions has brought a significant change to its regional profile. However, with the bank posting healthy profits after the hefty losses of 2002, and the rationalisation of its international presence nearing completion, it may rediscover its appetite for mainstream project finance in 2004.