CBB grants licence to NCB Capital

NCB Capital, a recently established subsidiary of the Saudi Arabia-based The National Commercial Bank (NCB), the largest bank in the Arab world in terms of capital. Headquartered in Jeddah, NCB's paid-up capital, at 2006-end, was $2.4bn, while total assets amounted to $41.5bn. NCB enjoys a credit rating of A+ from international rating agency, Standard & Poor's (S&P).

NCB Capital has acquired NCB's securities, investment management and investment banking operations. Capitalised at $267m (SR1bn), NCB Capital is licensed by the Saudi Arabian Capital Market Authority.

The Bahrain branch of NCB Capital will be the firm's first overseas venture. The licence is the second to be granted by the CBB to a subsidiary of NCB, which has been operating a wholesale bank, The Saudi National Commercial Bank (SNCB), in Bahrain since 1978.

With the establishment in Bahrain of NCB Capital, the securities and investment business of SNCB will be transferred to the new entity.

NCB Capital will operate in Bahrain as a Category 1 Investment Business, a licence which will allow it to deal in financial instruments as principal, as well as undertake all other regulated investment activities.

The Investment Business licence was created in 2006, as part of a new licensing regime developed and implemented by the CBB. The three sub-categories of the Investment Business licence allow licensees in each sub-category to undertake a range of investment activities based on the nature of risks posed to investors.

'The CBB welcomes the expansion of NCB operations in Bahrain,' said Mr. Ahmed Abdul Aziz Al Bassam, Director, Licensing & Policy, at the CBB.

'NCB is a sterling institution and we welcome their continued presence in Bahrain.'

The economic boom in the GCC region and the favourable regulatory and licensing regime for financial institutions continues to attract leading international and regional players to Bahrain, he pointed out.

'The financial services industry is a key sector of Bahrain's economy and the CBB is committed to supporting its continued growth and advancement,' said Mr. Al Bassam.

The number of institutions licensed by the CBB has crossed the 400 mark and now stands at 402, which includes NCB Capital.

NCB Capital will be located in the Bahrain World Trade Centre, iconic twin towers located on the seafront in downtown Manama. The firm will occupy office space covering six floors in the complex.