- Deal led by Emirates Islamic Bank and sourced by GFHCB.
- Development of GCC's first-ever private university for women on schedule; to enhance Bahrain's academic eminence.
Manama, Bahrain / Dubai UAE - In a significant initiative that adds pace to the growth of Islamic finance in the region, Emirates Islamic Bank (EIB) today forged a strategic tie-up with Gulf Finance House Commercial Bank (GFHCB), Amlak Finance and Islamic Corporation for the Development of the Private Sector (ICD) to commence Musharaka financing for the construction of the Royal University for Women (RUW) campus - Bahrain's first-ever private university for women.
The Musharaka finance is arranged by EIB, a provider of high quality Islamic banking services in the UAE, and sourced by GFHCB, a wholly-owned on-shore commercial banking subsidiary of Gulf Finance House B.S.C. (GFH) - a founding member of RUW. The tie-up, finalised at a special signing ceremony in the GFH office in Bahrain, was attended by top officials of EIB, RUW, GFHCB, ICD and Amlak.
Musharaka financing, or equity partnership, is based on a profit and loss sharing system where the financier shares in the venture's profits and losses. Each partner contributes a specific amount of capital.
Highlighting the rationale behind the project, Mr. Mohammed Al Zamil, Chairman of RUW, said: "The RUW is a milestone development that will add immense value to the academic profile of the GCC and step up facilities for higher education in Bahrain. It reflects the founders' commitment to promoting regional growth and supporting social initiatives on a larger scale. The RUW in Bahrain is one such initiative and I would like to thank all the financing banks and other stakeholders for making this project a success."
The first-of-its-kind, RUW was conceived in 2002 to empower women through higher education and expand their areas of specialisation. By honing their skills and confidence, RUW aims to enhance their contribution to society and the economy at large, Mr. Al Zamil said.
Commenting on EIB's participation in the project, Mr. Abdullah Showaiter, Chief Executive Officer of EIB, said, "Our partnership in this pioneering project, aimed at promoting higher education among women, was a strategic decision for us. It will not only provide us with an ideal platform to highlight our innovative products but also help us contribute to the socio-economic development of the region."
Mr. Ebrahim Hussain, General Manager of GFHCB, said: "The tie-up of GFHCB with EIB, ICD and Amlak is in tune with the commercial bank's philosophy of strategically sourcing and providing services to its clients. By participating in the Musharaka financing for RUW, GFHCB is partnering in one of the region's most prestigious projects."
As one of GCC's leading private academic institutions for women, RUW has been keen to tap into the region's Islamic funds to develop the project. The Musharaka deal with GFHCB, ICD and Amlak, lead managed by Emirates Islamic Bank, will add value to the RUW development. With the project progressing on schedule, RUW started accepting applications for the academic year 2005-06 in September and commenced its first academic year in October from its temporary campus in Riffa.
-Ends-
For more information please contact:
Jayakrishnan B.
Percept Profile Gulf
Tel: 04 3446373
Fax: 04 3429158
E-mail: jk@perceptprofilegulf.com
© Press Release 2005
