23rd February 2013, Manama, Bahrain: Bahraini retail and commercial banking institution, BMI Bank, today announced the signing of a BD 5 million financing agreement with Majaal Warehouse Company (Majaal), the leading provider of warehousing and industrial facilities for Small to Medium sized Enterprises (SME's) in Bahrain. Under the terms of the Murabaha agreement, BMI Bank through its Islamic Banking unit will provide a BD 5 million, 7 year Commodity Murahaba facility to Majaal towards the construction of Phase II and III of the Warehousing Development Project at the Bahrain Investment Wharf (BIW).

The signing ceremony was held at the Bank's Bahrain World Trade Center headquarters in the presence of Jamal Al-Hazeem Chief Executive Officer (CEO) of BMI Bank, Amin Al Arrayed General Manager of First Bahrain Real Estate Development and Majaal, as well as senior officials from both organizations.

Commenting on the new partnership, Jamal Al-Hazeem said: 

"Majaal was set up by First Bahrain as the region's first SME focused warehousing and logistics company. Located within the BIW, Majaal offers local and international businesses a one stop integrated state-of-the-art storage space solution and with the completion of its next phase, the company is poised to offer well over 260,000 square feet of secure, flexible and cost effective storage space, double the amount currently available. 

Keeping in line with our commitment to serve as a responsible local bank that strongly supports the SME segment, it gives me immense pride to enter into this agreement with Majaal and become a part of the whole process that will help create further jobs and boost our country's industry and economy.  This synergetic partnership further broadens BMI Bank's readiness to champion the nation's Vision 2030 plan as well as other initiatives that support local industrial projects to help them achieve their strategic goals for a better tomorrow." 

Amin Al Arrayed, General Manager of First Bahrain Real Estate Development Company, the parent company of Majaal, said:

"We were very proud to partner with one of the most dynamic and reputable banks in the Kingdom of Bahrain. BMI Bank have a proven track record of offering competitive products and high quality services and have shown commitment and support to the SME sector in the Kingdom. There exists a strong alignment between the core objectives of Majaal and BMI Bank in their ongoing efforts to promote growth and diversification in the SME sector in Bahrain."

Speaking at the ceremony, Salah Khalifa Assistant General Manager & Head of Islamic Banking at BMI Bank said:

 "The closing of this financing marks yet another milestone for BMI Bank and the Islamic Banking unit in particular. The additional liquidity from this facility will further strengthen Majaal's capacity to grow organically, support customers and continue as a local industry leader in offering warehousing facilities to different business sectors.  This facility will also enhance Majaal's already strong structure, and we are pleased to partner with Majaal in this transaction.  Majaal being an SME focused warehousing and industrial workspace provider is similarly aligned with our Bank's strategy in supporting SMEs within the Kingdom and the signing of this facility further demonstrates our commitment towards supporting local corporate and SME sectors in Bahrain."

Majaal, a wholly owned subsidiary of First Bahrain, announced mid last year the commencement of construction works of Majaal's second phase and that the project is scheduled for completion by the end of the second quarter of 2013.  The announcement follows the achievement of full occupancy for Phase I of the project in 2011. Majaal's third phase will soon be constructed on another two plots at BIW and will be segmented into a warehouse area and an office area in addition to a business center and service area for Majaal. The facility will offer higher ceilings for increased storage capacity and raised flooring along with separate ramped vehicular access for each unit to secure easy on and off load of large trucks.

About BMI Bank B.S.C. (c)
Bahraini retail and commercial banking institution, BMI Bank is a retail bank, registered in Bahrain and regulated by the Central Bank of Bahrain. The Bank offers its customers a complete range of innovative and unique financial products and services through its extended network of strategically located branches and ATMs. The Bank's multi-award winning eChannels including its corporate website www.bmibank.com.bh have been honored with various prestigious awards over the past few years helping in consolidating both its position as well as perception within the country as a key retail Bank. The Bank posted a profit of USD 1.3 million for the year ended 31st December 2012, marking its sixth straight quarter of profit as well as its full-year return to profitability after a period of five years. The Bank maintains an excellent Capital Adequacy Ratio of over 18% with very strong liquidity as reported during the year ended 2012.                        

BMI Bank operates an international branch in Qatar, owns and operates the Diners Club cards franchise in Bahrain, has a 21.33% shareholding in Gulf African Bank - Kenya, and has an equal stake in an Offshore Bank in the Seychelles (a joint venture with Nouvobanq). BMI Bank's shareholders include some of the strongest and most respected financial institutions across the GCC, including BankMuscat (SAOG) the flagship financial institution in the Sultanate of Oman.  With assets worth over USD 18 billion, BankMuscat (SAOG) is the leading financial services provider in Oman with a strong presence in Corporate Banking, Retail Banking, Investment Banking, Treasury, Private Banking and Asset Management. BankMuscat has the largest network of 134 branches, 409 ATM, 141 CDM's and 4500 POS terminals in Oman.

BMI Bank currently offers its local customers a range of retail products and services including savings and current accounts, a USD 1.8 million prize-winning Ayadi savings account, Visa gold and classic credit cards, a Diners Club credit card and a La Carte, a co-branded Visa credit card in partnership with Geant Hypermarket Bahrain. A newly introduced Platinum credit card offers customers the advantage of earning miles on everyday purchases that can be directly redeemed towards Gulf Air's Falconflyer program (FFPas well as a complimentary Falconflyer Silver membership. The Bank also offers customers fixed deposits, the Salaf range of personal, auto and mortgage loans and a new phone banking service that enables its customers to carry out most of their regular banking transactions in a safe and secure environment using their phones. The Bank has a strategic and exclusive service agreement with CrediMax to utilize their Point of Sales (POS) machines as well as payment gateways to accept and authorize the Bank's Diners Club cards thereby giving the brand stronger acceptance across the country. In addition to its secure credit card online repayment channel that enables customers of the Bank to pay their credit card bill online using any benefit enabled debit card, customers can also deposit real-time cash into their various accounts with the Bank using special cash deposit ATMs located at the self-service area within the Bank's branches without the need to be committed to the Bank's working hours.

In line with its ongoing commitment towards building a stronger CSR program and giving back to the community, BMI Bank has donated over BD 80,000 in 2012 towards various local charities including annual commitments to the Al Sanabel Orphans Care Center, Royal Charity Organization, American Mission Hospital's (AMH) Community Outreach Program, the Island Classic Charity Golf Tournament and Think Pink Bahrain, Bahrain Red Crescent Society, Bahrain Disabled Sports Federation, Al Noor Charity Welfare and the Children & Mother's Welfare Society amongst others.

In addition to Retail Banking BMI Bank also offers Wholesale, SME, Private and Islamic Banking as well as Financial Institutions Group (FIG) and Treasury services.

About Majaal
Majaal Warehouse Company is an SME-focused warehousing and logistics provider which seeks to facilitate the growth of business and industry in the markets we develop.  Founded in Bahrain in 2008, the first Majaal property is located at the Bahrain Investment Wharf (BIW) within the Salman Industrial City, providing easy access to Khalifa bin Salman Port and other major transport links in Bahrain.  Majaal is a wholly-owned subsidiary of First Bahrain Real Estate Development Company.

About First Bahrain
First Bahrain Real Estate Development Company is an innovative regional real estate developer established in Kuwait in October 2004. The organisation has a paid up capital of KD 31.5 million. Dedicated to achieving sustainable returns through collaborative relationships, First Bahrain creates enduring value for all stakeholders with a demand-driven investment approach. Operating out of Bahrain and Kuwait, First Bahrain is strategically positioned to execute projects across the GCC, in accordance with the principles of Sharia.

For further information, please contact:
Gordon Andrade; Head, Corporate Communications
BMI Bank - Bahrain
E-mail: gordon.andrade@bmibank.com
Cell: +97339782225

© Press Release 2013