Addax BankAddax Bank

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"The art market in the Middle East has experienced substantial growth in the past five years driven by burgeoning international demand for Islamic and Middle Eastern art. The region's art market is now entering an important phase of development as Middle Eastern art artists begin to gain cultural prominence on an international level. However, despite these positive indicators for future growth, the market remains largely untapped," said Mr. Yousef Al-Essa, CEO, Addax BankAddax Bank.

The 'Middle Eastern Fine Art Fund by AddaxAddax' will provide regional investors with the opportunity to participate in the dynamic growth that the Middle Eastern art world is currently experiencing. "We have established a reputation for ourselves throughout the region for bringing innovative and profitable investment opportunities to our clients. With the launch of our new art fund AddaxAddax is once again well positioned to deliver positive financial returns to its investors and shareholders," added Al-Essa.

According to experts, the UAE art market alone has the potential to develop into a US$ 250 million industry over the next few years, with the art market in the rest of the Gulf set to reach a value of approximately US$ 100 million. Earlier this year, Christie's, the world's leading auction house, fourth sale of modern and contemporary art in the UAE fetched an impressive US$ 10 million.

Spurred by Christie's success in the UAE, other leading auction houses from around the world have set up operations in the region; Bonhams, the UK headquartered international auction house, broke three world records at its inaugural Middle East art auction in March 2008. The auction achieved total sales of over US$ 13 million, and in a landmark event for the Arab art world saw the first Middle East artist achieve an auction sale of over US$ 1 million. Iranian Farhad Moshiri's 'Eshgh' was sold for over US$ 1 million with Moshiri setting the record for the highest achieving Iranian artist at an auction. The Bonhams auction also broke the world record for an auctioned Pakistani work of art, Gulgee's 'Polo Player' which sold for US$ 336,000. Moshiri's and Gulgee's sales are indicative of a growing trend; increasingly, Middle Eastern artists are able to successfully command valuations similar to their Western and Asian contemporaries.

Mr. Philip Hoffman, the CEO and Founder of the Fine Art Fund Group, stated, "We have been watching the Middle Eastern Market for three years, and now we are making a long term commitment to the development of art in this region. We are here to stay and we will invest over a long period of time enable simultaneous growth with the market. We believe that the Middle East will make a contribution of its own to the evolvement of the global art market and is rich with opportunity. But our commitment is to be a long term player, and that can only be achieved through a gradual strategy of art investment, as well as a nurturing of the market, in order to bring Middle Eastern Art into the international spotlight."

Addax BankAddax Bank has created an independent committee of Art Buyers and Art Advisers to advise the bank on its 'Middle Eastern Fine Art Fund' which includes prominent Beirut based gallery owner and art dealer, Mr. Saleh Barakat.

"The size and diversity of the Gulf states has created tremendous, underlying potential for Middle Eastern art. Arab investors are sophisticated and have the education as well as the financial means to invest in regional art. The UAE has emerged as a commercial hub for modern, contemporary art from the region. Other Gulf countries have already caught on to this trend with Qatar, Bahrain and Kuwait beginning to invest heavily in developing their indigenous art, "said Barakat.

'Middle Eastern Fine Art Fund by AddaxAddax' aims to build long term capital growth for investors while simultaneously exposing them to and educating them about museum quality Middle Eastern art," added Barakat.

We expect this art Fund to provide a much-needed boost to the region's arts industry and raise awareness of the abundance of talent emerging from the Arab world. "AddaxAddax has always encouraged the region's nascent arts and media community by investing in projects that promote local talent," concluded Al-Essa.

-Ends-

About AddaxAddax Bank
Addax BankAddax Bank has an authorized capital of US$100 million and is regulated by the Central Bank of Bahrain (CBB). The Bank was formed in 2003 and has been involved in a number of high profile deals in the region.

Addax BankAddax Bank's landmark deals include: participation with Dubai International Capital and other lead investors in creating JD Capital, a US$300 million (approximately) company targeting investment opportunities in Jordan. Addax BankAddax Bank was also responsible for the structuring and placement of the US$ 150 million deal to finance 20 Express by Holiday Inn hotels across five countries in the GCC.

Additionally, Addax BankAddax Bank has launched a US$1 billion investment fund, the MENA Serviced Residence Fund, in collaboration with The Ascott Group of Singapore, to acquire and manage a chain of serviced residences throughout the Middle East and North Africa. The first phase of capital fund raising towards the US$ 1 billion MENA Serviced Residence Fund was successfully completed earlier this year; the private placement was well received by investors and was oversubscribed by 150% within record time.

In September 2006 Addax BankAddax Bank formed its first subsidiary, AddaxAddax Media BSC. AddaxAddax Media, wholly owned by Addax BankAddax Bank is a holding company that focuses on acquiring innovative, high-quality media productions ranging from full length movies to television serials. AddaxAddax Media's first production "Khalid Bin Waleed" was aired on MBC and Dubai Television.

In late 2006, Addax BankAddax Bank, launched First Education Holdings (FEH), a holding company based in the Kingdom of Bahrain, established in partnership with a team of education and private equity professionals to invest and manage education and education related businesses across the GCC, Middle East and North Africa.

In partnership with the Ascott Group, Addax BankAddax Bank established Nuzul Holdings in Bahrain. With an authorized capital of US$500 million and a paid up capital of US$100 million, the company plans to launch 15 additional projects by 2010 and acquire 50 more properties over the next 10 years.

Addax BankAddax Bank is also the anchor investor in the Saraya Real Estate MENA Fund, launched by Saraya Holdings Limited and Arab Bank Group, the fund is a US$250 million close-end Bahraini fund which was considered as one of the largest funds in the Arab Capital markets in 2006. The funds projects include: Saraya Islands in Ras Al Khaimah, Saraya Dead Sea in Jordan, and Saraya Bandar Jissah in Oman.

Along with a group of regional investors, Addax BankAddax Bank set up Tatweer Infrastructure Company. A US$130 million Qatar based company specializing in Build-Operator-Transfer (BOT) and Private-Public-Partnership - the only company of its kind in Qatar.

In 2007, Addax BankAddax Bank structured and placed a AED 1 billion transaction to establish Siraj Finance in Abu Dhabi. The company offers a comprehensive range of Sharia-compliant products and services including Islamic consumer and mortgage finance, investments and asset management.

In corporation with leading merchant families in the UAE, Addax BankAddax Bank was the lead investor in establishing Al Bashayer, a wealth management company in Abu Dhabi, whose primary focus is to provide specialized services for high net worth female clients.

Also in 2007, the Bank successfully closed a SR 200 million private placement, to fund the establishment of AddaxAddax Capital in Saudi Arabia. Capitalizing on the potential for investment banking in Saudi Arabia, the company will focus on brokerage, asset management and advisory services. The establishment of AddaxAddax Capital underlines Addax BankAddax Bank's strategy to expand into major regional markets.

AddaxAddax is fast gaining a reputation for launching innovative and unique deals in the Middle East region.

About The Fine Art Fund Group
With its international art expertise, and its strong network of local art galleries and experts, The Fine Art Fund Group, is well positioned to introduce Middle Eastern art as a strong, new art investment class. The Fine Art Fund Group delivered an annualized return rate of 27% for its first fund in Western Art launched 4 years ago, and is one of the only international art investment vehicles with a solid track record.

www.addaxbank.com

For further information, please contact
Mona Akhtarzada
Tel: +973 17 560 470
Fax: +973 17 560 445
Email: mona@addaxbank.com

© Press Release 2008

 

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