Investment Dar acquires 30% of the capital of Bahrain Islamic Bank for 85 million US Dollars

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Within its elaborate and forethought plan and strategy to diversify its operational revenues for the coming five years and the coincidence of the same with its promising regional start off in all the markets of the region and particularly in the United Arab Emirates, Bahrain and Qatar in the first stage, the Investment Dar Company announced the finalization of the deal relating to the acquisition of 30% of the shares of Bahrain Islamic Bank against 32 Million Bahraini Dinars -equivalent to 85 Million US Dollars, from a group of investors amid the blessing of Bahrain Monetary Institution.

Adnan Al Musallam Chairman & Managing Director of the Investment Dar Company announced his contentedness for securing this important deal by the Investment Dar. He pointed out that this deal was the focus of interest and competition by many financial institutions and companies in Kuwait and Bahrain, where he considered that Al Dar success in obtaining this deal reflects the trust of the investors and the trust of the regional markets in its pioneering of the Islamic financial business, being the first financial investment Islamic company that was able to maintain its pioneering position by realizing continuously growing annual profits and revenues and contributing towards enriching the local market with numerous innovative Islamic tools and products thus expanding towards the regional market which witnessed its pioneering and distinguished role in more than one aspect, the most recent being the signing of the contract of partnership with the Islamic Arab Corporation Bank, headquartered in Bahrain, for 100 million US Dollars.

Diversifying the revenues

Al Musallam pointed out that Al Dar, by investing in an influential share of 30% in Bahrain Islamic Bank - the first Islamic bank that was established in Bahrain and the third of its kind in the gulf region - is seeking to diversify its revenues, particularly the operational revenues,if we take into consideration the great benefits that it shall reap and the revenues that it shall realize from appending the banking services sector represented in its share in Bahrain Islamic Bank to the total of its various revenues distributions which include investment, financing, real estate and consultations revenues including the insurance revenues after its recent acquisition of an influential share in Wethaq Takaful Insurance Company. Thus characterizing its services, activities and products with comprehensiveness - beyond any competition.

Regional spreading

Al Musallam confirmed that the Investment Dar through all these elaborate projects and plans which it introduced and is introducing with ultimate care and reservation. Including its execution of Oqyana project which represents the Australian Islands in The World project in Dubai - one of the most important and biggest unique projects in the world - its costs exceed 3.5 billion US Dollars , and its incorporation of an investment bank in the Kingdom of Bahrain in addition to its recent issue of its partnership shares in cooperation with the Islamic Bank of the ABC Islamic Bank in Bahrain in addition to many others. He confirmed that by this they are planning towards expansion and excellence in their regional start off after their eligible success in consolidating their existence in the local market, where they maintained their position as being one of the biggest Islamic financial institutions with a shareholders' equity estimate at 414 million US Dollars and a total assets valued at 1,459 million US Dollar. And the total market capital value estimated to be approximately 3 billion US dollars. Whereas the volume of its local clientele base is estimated with 85 thousand clients approximately coving the entire country.

Mergers and alliances

Al Musallam believes that it is time for the investment Dar Company. And all the other financial companies and institution including the Islamic and traditional ones to enter in alliances and mergers whether local/local, local/Gulf or local/Arab mergers and alliances in order to be able to compete and face the huge economic entities that are now imposing themselves in the market of the region with the onset of the third millennium. And the entry into the doors of globalization which does not accommodate the small or weak entities confirming the common interest and the mutual benefit that shall be realized for each of the Investment Dar Company and Bahrain Islamic Bank as a result of Al Dar acquisition of an influential share of the capital of the latter. And that refers to the heavy entry of Al Dar to Bahrain Market considering it one of its new marketing outlets for promoting and marketing its various and diversified services and tools, ending up with diversifying its operational revenues by appending the banking services sector to its activities and services, which shall enable the bank to cater for the clients of the Investment Dar Company through a set of services including the opening of current accounts, saving accounts, investment accounts, morabaha, credits and commercial financing including the issuance of credit cards and many other financial services.

Hearty welcome from Bahrain

At the time when Al Musallam highly valued the trust and cooperation of Bahrain Monetary Institution in finalizing that deal, which reflects its hearty welcome to the entry of the Investment Dar Company to the Bahrain Market from its widest doors, he pointed out to the benefits that shall be realized in return by Bahrain Islamic Bank as a result of Al Dar acquisition of an influential share of its capital starting with the entry into the Kuwaiti market and the exposure to all its institutions and sectors, up to the distribution of the scope of its services to the clients to include clients in Kuwait, thus having advantage in the first place of the wide clientele base of the Investment Dar company and subsequently some of the business and activities relating to all the huge projects, which the Investment Dar company and its affiliated and fellow companies are constructing or executing, in light of the diversification of its objects and activities relating to financing, investment, real estate, consultation, insurance, collection, banking and others.

Forethought elaborate plan

Al Musallam confirms that the concepts of Al Dar and its schemes for regional expansion and spreading are not spontaneous or impromptu, rather they are the product and fruits of an intricate planning and elaborate efforts which were formulated through the recent years in light of the study that was prepared by the Investment Dar Company about the mechanism of incorporating its operational profits, whereby the first ten years of the life of Al Dar were divided into several stagers starting with the first stage where Al Dar emphasis was on rendering retail financing services and real estate financing. Through the second stage where the emphasis was on diversifying the income resources and the real estate investments. And then the third stage which was characterized with the acquisition of some of the operating companies and restructuring them and after that listing them on Kuwait Stock Exchange and as well the incorporation of a group of companies, which, Al Musallam confirms that they were not incorporated from void, rather they were incorporated in light of a forethought plan that makes them existing companies, each assuming the execution of some specified projects which are mostly transferred to it from the mother Investment Dar Company to support and encourage them and to mark out their actual takeoff.

Arabic expansion

Al Musallam pointed out that the emphasis of the Investment Dar Company at the present time and at this stage in particular is concentrated on the regional expansion in a preliminary step to expand in the Arab region and world wide pointing out that Al Dar commenced its procession for regional spread out by incorporating Al-Oula company in the State of Qatar and by incorporating an investment bank in Bahrain. Topped with its huge project in Dubai 'Oqyana' and after it many other real estate projects in the region including Bahrain, stressing the other expansion steps which Al Dar Strategy takes into consideration at this stage in particular and within a comprehensive plan for the incorporation of a complete network of banks and investment, real estate, logistic and insurance companies which shall be managed and operated by a professional and qualified team from within the Investment Dar company itself and such team shall coordinate between such companies and the Investment Dar Company, all that for the purpose of widening the base of the operational profits that were realized as a result of the solvency of the portfolio of the debtors of Al Dar Investment company and its affiliated companies and which exceeds 200 million Kuwaiti Dinars.