Dubai Islamic Bank acquires 60 per cent of Sudan's Al Khartoum Bank

The agreement was signed at the Sudanese capital Al Khartoum, between Dr. Sabir Mohammed Hassan, representative of the Government of Sudan and Chairman of its Central Bank and Aref Kooheji, DIB's Executive Vice-President for Investment and Corporate Banking.

According to the agreement, DIB will own the majority of shares in Al Khartoum Bank, Sudan's first bank, established in 1913. DIB will now take responsibility for all operations and development of Al Khartoum Bank, with a view to offer the best banking services in Sudan.

Commenting on the new arrangement, Mr. Kooheji said: "We look at the agreement as a significant investment in a dynamic sector in Sudan. It not only represents our ownership and management of a new bank, but our commitment to invest DIB's human, financial, and technological resources for the rapid development of the bank."

"DIB has proven expertise in the banking sector that would be fully utilised to strengthen our presence in Sudan. It gives us great privilege to contribute to the enhancement of the banking sector in the country as well as the development of state-of-the-art infrastructure in this significant sector," he added.

He said: "The agreement between DIB, the world's first Islamic bank, and Al Khartoum Bank, Sudan's first bank, signals a new era in the banking sector in Sudan. We will utilise the expertise of both banks and offer outstanding services tailored to different segments of the Sudanese community including individuals and companies. We will also deploy latest technologies in banking services and ensure that our processes comply with international standards."

With a paid up capital of US$45 million, Al Khartoum Bank has a strong presence in Sudan. It has a network of 53 branches across the country of which 17 are in Khartoum.

Mr. Kooheji said: "Al Khartoum Bank has recorded high growth rates during the past few years. The bank was able to increase profits to US$7 million in 2004 as compared to US$3.5 million in 2003. These results reflect its ability to grow and we are confident that performance will further improve."

Dr. Hassan said: "The agreement marks a major change for Al Khartoum Bank as well as the banking sector in Sudan. We are convinced that our partners, DIB and UAE investors, would greatly contribute to boost the performance of the bank and enhance its services in Sudan."

Sudan's economic indicators are generally positive. Forecasts for gross domestic product, balance of payment, balance of trade, exchange rates, and foreign investments suggest that the country is poised for an economic upswing, particularly after latest developments to do with the peace treaty.