Al Salam Bank, one of the strongest recent entrants into the region’s Islamic banking sector, today along with co-investors announced the establishment of a new real-estate company which will promote a number of property development projects in Bahrain, which is experiencing a fast growing construction boom.
Commenting on the incorporation of the new company, Al-Salam Bank's Deputy Chairman and Managing Director, Hussain Al-Meeza, said: "The establishment of a real-estate development company forms part of the Bank's strategic property investments in Bahrain and across the region. Such investments are expected to realize a good return as well as long-term social and economic benefits for Bahrain and for the neighboring countries."
Mr. Al-Meeza explained that the Bank aims to provide services that will improve individual's living through various social establishments. "This is part of our mission as an Islamic bank", he said.
Al-Salam Bank's Chief Executive Officer and Chairman of the real-estate company, Yousif Taqi, said: The idea has taken shape as a result of a thorough and prudent study of the real-estate market in Bahrain. There are many reasons behind the bank and its co-investors establishing this company. Perhaps the foremost reason is that there is a need in the market for major property projects to meet the fast growing construction sector and to serve the various categories of Bahrain's community at competitive prices." He added: "The provision of real-estate projects at competitive prices in Bahrain is an innovative investment area that has not been properly and comprehensively approached by other Islamic banks in Bahrain. It is the object of our real-estate company to innovate and introduce this new field in Bahrain."
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).
© 2007 Al Bawaba (www.albawaba.com)
