Arab investors from the GCC and Middle East to set up USD75 million Al Salam Bank in Sudan

The announcement was made at a press conference held today in Khartoum, the capital of Sudan.

Initial contributions from the investors are expected to cover 75 per cent ($ 57 million) of the targeted capital of $75 million. The remaining 25 per cent, (approximately $ 18 million), is expected to be raised by an initial public offering (IPO) in Sudan and the AGCC countries. The IPO will be offered to the public with a face value of one dollar per share. The announcement to launch the IPO will be made shortly.

UAE investors represent a significant proportion of the initial capital investment in the bank with the investor list including names like Amlak Finance, a subsidiary of Emaar Properties and other business houses and individuals.

The Lebanese Canadian Bank is another well-known name on the Al Salam Bank investor list, while others include both individuals and institutions from Saudi Arabia, Jordan and Lebanon. The National Pensions Fund and the National Pensions Authority of Sudan and the State of Khartoum represent the interests of the Sudanese Government.

The press conference in Khartoum to announce the establishment of the bank was attended by Hussain Al Meeza and Mohammad Omair bin Yousif, who represented the UAE members of the founding Authority.

"The establishment of Al Salam Bank with the active involvement of so many Arab organisations and individuals is a significant testament to the growing commitment of Arab businesses to make Arab economic integration a reality," said Hussain Al Meeza. "This investment comes at a time when Sudan is witnessing a huge economic growth and has begun to establish an investor friendly atmosphere for Arab and foreign investments and capital," he added.

"Through the launch of Al Salam Bank, we aim to enhance and highlight the intra-Arab investments in the Middle East and North Africa (MENA) region, in addition to contributing to the development of the banking service sector in Sudan through working on sharing experiences and established best practices in this field," he said.

The investment atmosphere in Sudan has witnessed huge developments in the recent past, especially after the discovery of the new petroleum deposits in the country. The new oil wells will contribute greatly to Sudan's oil production, which is expected to reach half a million barrels per day (bpd). The discovery of oil has also solved the south's problem of attracting foreign direct investment to the petroleum, metal and agricultural sectors which are considered the biggest production sectors in Sudan.

Recent international studies classify Sudan as one of the promising countries for investment due to its huge potential for growth, excellent investment opportunities, tremendous natural resources, cheap labour force and the liberalisation and economic development policy followed by the government. Sudan, which has an ideal geographic location that connects it to nine African countries, also represents a huge market comprising 29 million people.