New $10 billion Islamic bank planned for Bahrain: Market Watch

By Tahani Karrar

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones) -- Persian Gulf investors plan to launch a new $10 billion Islamic bank by year-end in Bahrain, Adnan Ahmed Yousif, Chairman of Union of Arab Banks said Sunday.

The institution will be called "Istikhlaf Bank" and its shares will be listed on the Bahrain Stock Exchange and Nasdaq Dubai via an initial public offering, he said.

"We call it the godfather of Islamic banks," Yousif told reporters on the sidelines of a banking conference in Dubai, United Arab Emirates.

The creation of the new bank comes amid a severe downturn in Islamic banking in the region. Global issuance of Islamic bonds, or sukuks, tumbled 37% in the first quarter of the year to $1.8 billion, according to the latest data compiled by the Zawya Sukuk Monitor.

It may also struggle to compete with larger more established rivals such as Saudi Arabia's Al Rajhi

the Middle East's largest-traded Islamic bank with a market value of $25.2 billion, according to Zawya.com.

Still, Islamic banks, which comply with Sharia laws that prohibit the charging of interest, are on the rise in the Middle East where conventional banking practices are being held partly responsible for the global economic downturn.

The bank "will be established with a $10 billion capital and right now we are at a stage of forming the shareholders, there will be a private placement of $6.5 billion and we plan a $3.5 billion initial public offering for the bank," he added.

For more on this article, please click on the following link: New $10 billion Islamic bank planned for Bahrain: Market Watch

Bahrain Islamic Bank receives 'Best Islamic Institutional Finance Bank in the Gulf Prize': AmeInfo

Bahrain Islamic Bank (BisB) has been granted 'Best Islamic Institutional Finance bank in the Gulf region Prize', bestowed on BisB by 'World Finance' magazine, in the context of its annual prizes awards.

World Finance magazine specializes in the banking and finance sector worldwide.

BisB receive the prize as a result of the final decision of the awarding committee which consisted of prominent economic editors, international financial consultants, a number of bank managers and some experts in the field of banking.

The Bank received the prize due to the standards it applies in product and services excellence, originality and innovativeness in its services, customer satisfaction, continued growth in its banking operations plus other important criteria.

Mr. Mohammed Ebrahim, Chief Executive of Bahrain Islamic Bank, stated on this occasion:

'We are proud about receiving this International prize which affirms the leading role of the Bank inside Bahrain and in the Gulf Arab States. This prize is a manifestation to the excellent performance of the Bank and to the reputation which it enjoys in the International Islamic Banking sector. In addition to the success of its vision and its strategic development plan which was based on enhancement of the quality of its services which it introduces.'

For more on this article, please click on the following link: Bahrain Islamic Bank receives 'Best Islamic Institutional Finance Bank in the Gulf Prize': AmeInfo