Efforts are under way to set up a new commercial bank in Saudi Arabia, the Kingdom’s 11th, with a capital of SR3 billion and merging eight leading money exchangers in the country. The founders will hold a 50 percent stake in the new Al-Bilad Bank, to be launched by the middle of 2005, Arab News reported on Sunday.
Representatives of the eight firms have already signed the merger agreement. The firms are: Muhammad & Abdullah Ibrahim Al-Subaie Company, Al-Muqairen Money Exchange (run by the heirs of Abdul Aziz ibn Suleiman Al-Muqairen), Al-Rajhi Trading Est., Al-Rajhi Commercial Foreign Exchange, Muhammad Saleh Sairafi Est., Abdul Mohsen Saleh Al-Amri Est., Injaz Money Exchange (Yousuf Abdul Wahab Niamatullah Company), and Ali Hazza & Partners for Trade and Money Exchange.
The Council of Ministers approved over two months ago the establishment of the new bank, which is to concentrate on Islamic banking services. Half of the bank’s 60 million shares would be floated for public subscription in November at the rate of SR50 per share, the report added.
The move comes after the government licensed three major international banks - Deutsche Bank of Germany, BNP Paribas Bank of France and J.P. Morgan Chase Bank of the United States - to open branches in the Kingdom. (menareport.com)
© 2004 Mena Report (www.menareport.com)
