KUWAIT: Warba Bank achieved remarkable returns through a successful divestment of its investment in the project to develop multi-family apartment complex in the United States of America. The bank announced realizing an 18 percent net profit today from this transaction. This deal and its financing structure are considered to be pioneering in terms of structuring this as a building loan contract registered by the New York statute and in a adherence to the principles of Islamic Sharia. Warba bank funded the purchase of land and development of a multi-family apartment complex in Long Island City, Queens County in New York, which is approximately 5 minutes away from Manhattan using the subway.
The project is strategically located in front of Headquarters of Citibank Operations, Headquarters of MetLife Operations and is in close proximity to Tishman Speyer's Gotham Center and UN Credit Union Building, thus providing a strategically significant location. "We are very pleased with this achievement, which has been completed before the scheduled time thanks to Almighty God and the bank's efficient investment team, who identified promising transactions, chose the right business partners then successfully concluded the investment and its subsequent divestment," stated Hossam Nasser Al-Muzaiel - executive manager at Warba bank. He continued to state that "the funding method for this transaction is considered the first of its kind in terms of compliance with Islamic laws - Sharia and all its implied guarantees.
This transaction is an exceptional achievement towards the further development of Warba bank and a continuance of the growth of its international asset portfolio. Furthermore, this successful divestment reaffirms Warba Bank's competitive capability in providing attractive and innovative Sharia compliant risk adjusted investment products to our shareholders and customers." "Warba Bank is currently evaluation and pursuing other investments in international markets in order to achieve consistent returns higher than market rates and capitalise on the success achieved from this transaction. The bank will continue to originate and pursue innovative risk-optimal investments, structure and participate and manage them in strict adherence to the principles of the Islamic Sharia, and generate steady, recurring and predictable revenues in the short and medium terms." "Our key focus has been to further boost and enhance financial and operational performance standards of the bank, which has enabled the bank to enjoy the current market positioning and competitiveness.
We continue to expect continuous development and prosperity leading to the bank gaining further heights both locally and internationally", concluded Al-Muzaiel. It is worth mentioning that Warba Bank offers an ideal investment opportunity for investors and depositors' exposure to diversified risk-optimal asset classes with a distinctive focus in innovation, thereby yielding solid returns from superior projects
© Kuwait Times 2013
