Capinnova Investment Bank - the Shari’a compliant investment banking arm of BBK is confident about the Islamic finance industry in the region and predicts that it will grow further in 2010. Capinnova is licensed by the Central Bank of Bahrain; the bank is well capitalized and is wholly owned by BBK. Capinnova has an authorized capital of US$500 million and paid-up capital of US$151.5 million.
Capinnova Investment Bank’s, Chief Executive Officer - Mr. Jamal Hijres, stated that, “The key fact that the Islamic finance industry is asset based and not debt financed, has protected and prevented this sector from the crises that has brought the downfall of conventional financial giants worldwide. We are confident about the Islamic finance industry’s future and we believe that it will grow stronger in 2010,”added Mr. Hijres.
According to the recent Standard and Poor’s report, assets of the top 500 Islamic banks expanded 28.6 per cent to total $822 billion in 2009, compared with $639bn in 2008. Total assets at Islamic financial institutions in the GCC grew continuously between 2003 and 2008, representing $288.2bn at end-2008.
“The Islamic banking sector is considered to be one of the largest growing sectors and a major revolution for the financial industry. The growth of Islamic banking industry in particular has been remarkable in recent years and as per published reports it is expected to touch US$4 trillion in the next five years. We aim to leverage on this exponential growth and further strengthen the Islamic Banking industry in Bahrain and across the region,” added Mr. Hijres.
“I would like to mention that while Islamic finance is one of the big success stories in finance today, but it is worth looking at the current credit crunch in conventional finance to see how easily one problem can spiral out of control. This is something that Islamic finance practitioners need to take on board and make sure they are well prepared. Firm corporate governance programmes, striking a good balance between risk and reward, achieving greater market penetration, transparency on compliance, learning from conventional banking successes and failures, are all effective goals that will help consolidate Islamic finance. The year 2010 will also be a year that surely will test the strengths of Islamic Finance industry and I am confident that the industry will deliver and further consolidate its position.” added Mr. Hijres
In January 2010 Capinnova acquired 50 per cent stake in Sakana Holistic Housing Solutions. Bahrain based Sakana was earlier a 50:50 joint venture between BBK and Shamil Bank. BBK took the decision to transfer the ownership of Sakana to Capinnova to strengthen and diversify the bank’s investments in the Islamic financial sector while complying with the principles of Islamic law.
Capinnova aims to provide quality investment products and innovative solutions to companies, financial institutions and high net worth individuals.
