Malaysian Investment Banking giant to join forces with Dallah Al Baraka Group to form Global Islamic Investment Alliance

The announcement was made by CIMB Group's Chief Executive Officer Mr. Nazir Razak who said, "We believe that the proposed alliance between CIMB and Al Tawfeek will form the foundation for building a formidable global Islamic investment banking franchise. The Memorandum of Understanding will open investment channels between two dynamic regional economies and for the first time give institutionalised access to Middle Eastern investors to Malaysia's huge and prospering Islamic capital markets."

According to Nazir Razak, Islamic investment banking has been marginalized as a force in international finance because Islamic financial institutions have remained regional. By joining forces and linking up Middle Eastern and Southeast Asian capital markets Islamic investment banking could become a global force to be reckoned with. "The synergies unleashed by this proposed alliance could launch Islamic investment banking on to the world stage," he said.

In a statement, Dr. Saleh J. Malaikah, President of Al-Tawfeek said, "Al-Tawfeek aims to expand its Middle East-based investment activities in Malaysia and the Far East. Both Companies aim to establish a global network to market and distribute Shariah compliant investment products. Senior executives of both companies met recently in Jeddah to discuss how both companies can compliment on another and successfully form an alliance. The combined strength of Al-Tawfeek and CIMB is a strong foundation for the success of the MOU"

Al-Tawfeek is a subsidiary of Dallah AlBaraka Group, Jeddah, Saudi Arabia. Dallah AlBaraka is one of the largest conglomerates in Saudi Arabia and the Middle East with total assets in excess of US$ 16 billion, operating from more than 40 countries. Dallah Al Baraka Group is one of the largest conglomerates in Saudi Arabia formed in 1969 by Sheikh Saleh Kamel, presently comprising over 258 operating companies employing over 70,000 staff.

CIMB Group, the investment arm of Commerce Asset-Holding Berhad (CAHB), is one of Malaysia's best-capitalised investment banks and an integrated capital market services provider. The leading investment bank in Malaysia today, CIMB is the only listed merchant bank on the Kuala Lumpur Stock Exchange and is rated Baa3 by Moodys. Its expertise covers corporate finance, debt markets and derivatives, equity markets and derivatives, private banking, private equity, Islamic financing and research. CIMB Group employs over 750 staff and, as of 31 December 2002 manages shareholders' funds valued at RM1.5 billion. The Group comprises 5 core companies, CIMB, CIMB Securities, CIMB Discount, CIMB Futures and CIMB Labuan. The Group's Islamic investment banking franchise operates through its CIMB Islamic division.