Al Salam Bank, one of the strongest recent entrants into the region’s Islamic banking sector, today announced that it has participated in the incorporation of the Aman Bahrain Insurance Company. The move comes as part of the Bank’s diversified investment strategy.
Al Salam Bank Bahrain has subscribed to a minority share of 20%. Approval of the Central Bank of Bahrain (CBB) has been obtained and the Sharia' -compliant insurance company will operate with a capital of BD 7.5 million (US$ 20 million).
Commenting on the announcement, the Bank's Vice Chairman and Managing Director, Hussain M. Al-Meeza said, "Al-Salam Bank's participation in Aman Bahrain is a further step forward within the Bank's vision. The Bank will provide Islamic Takaful services through this company. Takaful is a promising area in the insurance industry, with a shortage in the number of companies providing this service."
The Bank's Chief Executive Officer, Yousif Taqi, explained, "The Bank's investment in this Islamic insurance company is highly complementary to the portfolio of Islamic services the Bank offers clients. We are constantly endeavouring to diversify our offerings and services, and this is one in a series of innovative integrated Islamic financial services that our clients can expect to see coming out of the Bank."
Other major shareholders of Aman Bahrain include Al Salam Bank Sudan, Dubai Islamic Insurance and Reinsurance Company (Aman), and several other companies and businessmen.
Al-Salam Bank was established on 19th January 2006 in the Kingdom of Bahrain with a paid-up capital of BD 120 million (US$ 318 million). Al-Salam Bank Bahrain BSC operates under an Islamic banking licence issued by the Central Bank of Bahrain. The Bank’s Initial Public Offering (IPO) of 35 per cent of the paid-up capital, which closed in March 2006, raised over BD 2.7 billion (US$ 7 billion) and was the largest IPO in the Kingdom’s history. The Bank was listed on the Bahrain Stock Exchange on 27 April 2006.
The founding shareholders of Al-Salam Bank hold 65 per cent of the paid-up capital. They include Emaar Properties, Amlak Finance, Dubai Investment Group, Dubai Holding, Global Investment House, Lebanese Canadian Bank, Al Salam Bank (Sudan), and Dubai Islamic Insurance and Reinsurance Company (Aman).