$200m Islamic bank launched in Bahrain

Gulf Daily: A group of Middle East investors has pressed ahead with the launch of a $200 million Sharia-compliant investment bank in spite of the current global financial turmoil.

First Investment Bank, headquartered in Bahrain, says it offers institutional and individual investors innovative, diversified products and services with a special focus on the Middle East and North Africa region.

It will look at opportunities in private equity, oil and gas and real estate and when the market improves look to get involved in the sukuk market.

And it is already looking at a $500m investment in a real estate project in Bahrain.

It has an authorised capital of $200m and a paid-up capital of $120m.

The bank's shareholder base consists of some of the Gulf region's most renowned financial institutions including First Investment Company, Boubyan Bank, Commercial Real Estate Company and Gulf Investment House, all of Kuwait plus Tabayun Investment (Bahrain), Abdullatif Al Issa Group (Saudi Arabia), Al Mawarid Finance (Dubai) and Noor Capital of Abu Dhabi.

"The GCC is the world's fastest-changing economy, the region's liquidity and oil reserves coupled with the bold move to diversify its economic base presents an attractive proposition for investors," said First Investment Bank chairman Dr Mohammad Al Alloush.

"Over the past five years the Islamic banking industry and financial services sector as a whole has undergone a rapid transformation and we now see some of the most dynamic and innovative transactions being launched from the Gulf region.

"Bahrain's Islamic finance sector, in particular, is leading the way for the rest of the world in terms of research, regulation and performance.

"The kingdom has firmly established itself as a global hub for Islamic finance as a result of the forward thinking policies and focused efforts of the Central Bank of Bahrain.
"We intend to create new models in the region's investment banking industry and seek out partnerships between the private and public sector that will deliver maximum benefits to the community at large," he said.

"As we begin to introduce innovative, high-return products to the market we hope to generate further investment opportunities and provide a boost to the kingdom's global position as a leader in the Islamic finance industry."

Chief executive officer Jamal Ali Al Hazeem said with Islamic banking firmly on the rise, there is an ever increasing need for skilled professionals who can shape the industry's future.

"First Investment Bank's emphasis on training and development has enabled the bank to attract and build a team that possesses an intricate knowledge of Sharia guidelines and of the changing conditions in the investment environment. Equipped with that knowledge our people are able to maintain solid client relationships based on common goals and shared values.

"Our investment strategy is developed around capital and fee-based business lines and we aim to generate income through private equity, real estate, and capital markets. The bank's strong pan-Gulf shareholder base allows us to cater to a wider target audience; our investors will be able to capitalise on the strength of our integrated, regional and international network."

He said that the bank would clearly pursue a conservative and prudent strategy in the current economic climate.

"The current economic crisis is a time when both Islamic and conventional banks will have to be more innovative and prudent to success but it is a time which will separate the men from the boys."