Thailand (Bangkok) - Bahrain based Al Salam Bank and Charoen Pokphand Group (CP Group), one of the largest food and agricultural companies in the world based in Thailand, today signed a strategic Memorandum of Understanding (MoU). This alliance marks the bank's entry into the agricultural industry, which falls in line with Al Salam's diversification strategy. For CP Group, this marks the organization's business expansion into the Middle East and North Africa (MENA) region.
Al Salam and CP Group will jointly identify suitable agribusiness ventures that will generate attractive risk-adjusted returns while playing a proactive role in addressing food security in the region.
The alliance will initially carry out detailed feasibility studies to gauge the viability in various target agribusiness sectors, including livestock, staple food, aquaculture, and perishables. The studies will comprehensively cover technical, financial, market and operational due diligence, in order to identify target markets in the MENA.
Mr. Yousif Abdulla Taqi, Board member and Chief Executive Officer of Al Salam Bank-Bahrain, stated that "We are honored to announce our partnership with Charoen Pokphand Group, a world-renowned food and agricultural company, and leverage on their vital technical expertise in the industry. This alliance falls in line with Al Salam's mission to provide unique investment opportunities that meet investors' objectives and risk appetite. We are also proud to support the region in addressing the critical issue of food security. Although Bahrain will be used as a hub, our target market will cover the MENA region in its entirety. The projects will play an important role in creating job opportunities for Bahrainis".
Mr. Eam Ngamdamronk, Vice Chairman of Charoen Pokphand Group, commented that "We are delighted to have formed a strategic partnership with Al Salam Bank as this MOU signifies CP Group and Al Salam's intent to establish Bahrain as the 'Halal Food Hub' of the MENA region. This alliance represents CP Group's first joint venture with an Islamic bank and will serve our vision to become 'The Kitchen of the World' ".
The proposed venture is envisioned to be an integrated Halal Food Company that will invest in farming, food processing, packaging, and distribution. CP Group will provide a highly specialized management team with extensive track record in the agricultural and food industry for this venture.
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Notes for editors:
Charoen Pokphand Group
- Founded in 1921
- Headquartered in Bangkok, Thailand
- Conglomerate with core businesses in agribusiness and food, retail and telecommunications
- Employs over 250,000 people worldwide
- Overseas investments include China, India, Russia, Vietnam, Turkey, Indonesia, Bangladesh, Malaysia, Myanmar and others
- Revenue for 2008: US $ 18 billion.
Al Salam Bank-Bahrain (BSC)
Incorporated on 19 January 2006 in the Kingdom of Bahrain
Islamic Bank with a paid-up capital of BD 120 million (US$ 318 million)
Commenced commercial operations on 17 April 2006.
Strong paid-up capital base;
Pre-eminent founding shareholders;
High-caliber management team;
Universal business model covering deposits, financing and investment services;
Innovative, tailor-made Shari'a-compliant solutions;
Firm commitment to corporate and social responsibility
For further information, please contact:
Suhair Al Ajjawi
Tel: +973 39912166
Adnan Al Shaikh
Tel: +973 39336900
© Press Release 2009
