Bahrain selected as bank's international headquarters

MANAMA, BAHRAIN - 27 October 2008 -  A US$ 200 million Sharia compliant investment bank was launched to the media today at a press conference held in the Kingdom of Bahrain. First Investment Bank, headquartered in Bahrain, is registered as a Bahrain Joint Stock Company (closed) and offers institutional and individual investors  innovative, diversified products and services with a special focus on the Middle East and North Africa region.

With an authorized capital of US$ 200 million and a paid up capital of US$ 120 million the Bank's shareholder base consists of some of the Gulf region's most renowned financial institutions including: First Investment Company, Kuwait; Boubyan Bank, Kuwait; Commercial Real Estate Company, Kuwait; Gulf Investment House, Kuwait; Tabayun Investment SPC, Kingdom of Bahrain; Abdullatif AlIssa Group, Kingdom of Saudi  Arabia; Al Mawarid Finance, Dubai; and Noor Capital, Abu Dhabi.  The Bank's Board of Directors is led by Chairman, Dr. Mohammad A. Al-Alloush, a visionary in the Islamic banking industry. Heading the Bank's senior management team is Bahraini national and financial industry veteran, Jamal Ali Al-Hazeem.

"The GCC is the world's fastest- changing economy; the region's liquidity and oil reserves coupled with the bold move to diversify its economic base presents an attractive proposition for investors.  Over the past five years the Islamic banking industry and financial services sector as a whole has undergone a rapid transformation and we now see some of the most dynamic and innovative transactions being launched from the Gulf region," said Dr. Mohammad A. Al-Alloush, Chairman, First Investment Bank.

Bahrain's Islamic finance sector, in particular, is leading the way for the rest of the world in terms of research, regulation and performance. The Kingdom has firmly established itself as a global hub for Islamic finance as a result of the forward thinking policies and focused efforts of the Central Bank of Bahrain.  The asset base of Islamic institutions in the Kingdom has increased 34.4% over the past year, with Islamic banks reporting assets of up to US$16.4 billion in total as of last year; these figures are indicative of the phenomenal growth the industry is currently experiencing

"The Kingdom's 'business- friendly' initiatives being implemented by the Government in coordination with the Economic Development Board, combined with the Central Bank's robust regulatory framework made Bahrain the natural choice for us to base our operations, "continued Dr. Al-Alloush

"First Investment Bank's vision is to scale new heights in an increasingly competitive market environment. Our mandate is to not only deliver consistent, positive returns to our stakeholders but to foster long term, sustainable growth to the broader community while doing so. We intend to create new models in the region's investment banking industry and seek out partnerships between the private and public sector that will deliver maximum benefits to the community at large. As we begin to introduce innovative, high- return products to the market we hope to generate further investment opportunities and provide a boost to the Kingdom's global position as a leader in the Islamic finance industry," added Dr. Al-Alloush.

Over the past five years Sharia compliant banking has emerged as the financial system of choice for high net worth individuals in the GCC region to manage their wealth. The global Islamic banking industry now manages over US$ 500 billion in funds, with Islamic banks in the GCC alone recording average net profit growths of 11% annually.

"With Islamic banking firmly on the rise, there is an ever increasing need for skilled professionals who can shape the industry's future. First Investment Bank's emphasis on training and development has enabled the Bank to attract and build a team that possesses an intricate knowledge of Sharia guidelines and of the changing conditions in the investment environment. Equipped with that knowledge our people are able to maintain solid client relationships based on common goals and shared values," said Jamal Ali Al-Hazeem, CEO, First Investment Bank.

The Bank's Sharia Supervisory Board includes eminent scholars from the Islamic finance industry; Shaikh Nizam Yaquby and Shaikh Esam Mohammed Ishaq from Bahrain and Shaikh Dr. Abdul Aziz Al Qassar from Kuwait. For First Investment Bank's progressive Sharia Board, Sharia compliance is much more than a financial model. Islamic principles of community, inclusion, progress, trust and transparency are embedded in every aspect of the Bank's operations.

"Our investment strategy is developed around capital and fee based business lines and we aim to generate income through private equity, real estate, and capital markets. The Bank's strong Pan- Gulf shareholder base allows us to cater to a wider target audience; our investors will be able to capitalize on the strength of our integrated, regional and international network.  

"First Investment Bank's core values of transparency and integrity should hold us in good stead for the future projects we have in the pipeline.  Over the coming year we intend to launch projects that introduce new concepts, technologies and applications to the region and that will truly distinguish us in a market that is highly competitive," concluded Al-Hazeem.

A reception held under the patronage of Rasheed Al Maraj, Governor of the Central Bank of Bahrain was held to mark the official launch of First Investment Bank. The event was attended by VIP guests, diplomats and business executives from the public sector from the Kingdom of Bahrain and GCC.

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For more information please contact:
Maya Ribeiro, Action Bahrain
Tel: +973 17234
Email:
maya.r@actionprgroup.com 

© Press Release 2008