European Islamic Investment Bank Plc and Capital Management House sign strategic co-operation agreement

European Islamic Investment Bank Plc ("EIIB"), the first independent, Sharia'a compliant Islamic investment bank to be authorised and regulated by the Financial Services Authority in the UK, and Capital Management House ("CMH"), a Bahrain-based investment firm, have signed a strategic co-operation agreement to assist the development of both businesses and the wider Islamic finance industry.

These joint activities will include the sharing of technical expertise and knowledge through joint ventures, and in other areas such as product innovation. In particular, both parties will co-operate in the design, structuring and distribution of funds and other structured products.

CMH, an Islamic investment firm with a global focus, was founded in Bahrain in April this year. It was established with a paid-up capital of US$47.7 million and authorized capital of US$200 million, to undertake a range of activities including Sharia'a compliant asset management, fund management, deal arranging, regional pre-IPO private equity, new issue underwriting, as well as providing capital market operations and financial and investment advisory services.

John Weguelin, Managing Director, EIIB, said: "We are delighted to have signed this agreement with Capital Management House, which will undoubtedly be of great benefit to both parties. There are strong synergies between our two businesses, which will be a great help as we seek to develop our range of asset management products. CMH's expertise in this area will greatly assist us bridging western and Islamic financial markets."

Saad Al-Shamlan, Chief Executive Officer, CMH, said: "We want to create a niche for CMH by providing high value added products and services, and creating new opportunities within the GCC region as well as diversifying into other markets, particularly Europe and South East Asia. The agreement with EIIB is a significant step towards achieving these objectives. Its expertise in areas such as asset management will be invaluable for us as we develop our business."

EIIB recently opened a second office in Bahrain, after it opened for business in London in April. The bank expects to launch several fund products in the coming months, including a pan-European real estate fund and a capital guaranteed fund.

EIIB also plans to develop a range of its own Sharia'a compliant investment funds during the coming year, covering the hedge fund, private equity and real estate asset classes, and including capital-protected structured products. EIIB will also partner with other financial institutions, both Islamic and conventional, to create bespoke Sharia'a compliant investment products according to demand.