European Islamic Investment Bank Plc and Bahrain Islamic Bank Sign agreement for international co-operation on Islamic finance

Under the terms of the agreement, both parties will work with each other on a non-exclusive basis in areas including treasury, capital markets, asset management and corporate finance. They will promote the increasing international awareness of Islamic finance through encouraging, financing and investing in exhibitions and conferences and will also co-operate on the development and distribution of Islamic financial products.

Established on 7th March 1979, with an authorized capital of 50 million Bahraini Dinars (BD) and a paid up capital of BD 25.3 million, Bahrain Islamic Bank (BIsB), the first Islamic commercial bank in the Kingdom of Bahrain, was to carry out banking and other financial trading activities in according with Islamic Sharia'a law. At the end of 2005, BIsB shareholders' funds reached nearly BD 72 million, with assets in excess of BD 320 million.

John Weguelin, Managing Director, EIIB, said: "We are delighted to be in partnership with an organisation of such a high calibre. This is yet another significant step forward in our strategic goal of developing partnerships with other Islamic institutions as a bridge between the European and Islamic financial markets and, working together with Bahrain Islamic Bank, we are in a very strong position to identify, pursue and benefit from the numerous opportunities available."

Mr. Yousif Saleh Khalaf, BIsB Chief Executive Officer commented: "We, at Bahrain Islamic Bank, are very pleased to have signed this agreement with EIIB and look forward to working with them so we can mutually benefit from this dynamic and rapidly growing sector."

"As a leading Islamic institution in Bahrain, we have always adopted innovative Islamic investment and financing products. This fact, supported by excellent individual and corporate banking services, has enabled the Bank to maintain its leading role in the Islamic banking sector in Bahrain, and now we are even trying by this agreement to share our success with EIIB." Mr. Khalaf added.

EIIB recently opened an office in Bahrain, after it opened for business in London in April of this year. EIIB 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.