Capital Management House launches its operations in Bahrain

The Company also announced the formation of its Board of Directors, led by Mr. Khalid Abdulla Al Bassam, Chairman of Al Bassam Investment Company, Chairman of Bahrain Islamic Bank and former Deputy Governor of the Bahrain Monetary Agency (BMA), as well as the appointment of CMH's first Chief Executive Officer, Mr. Saad Al Shamlan, who was previously at the Saudi National Commercial Bank in Bahrain.

CMH, which has been established with a paid up capital of US$47.7 million and authorized capital of US$200 million, will undertake a range of activities including Shari'a compliant asset management, fund management, deal arranging, regional pre-IPO private equity, new issue underwriting, as well as providing capital market operations and financial and investment advisory services.

The firm is the first to be granted a Category 1 Investment Company licence by the BMA. The licence category has been created recently as part of BMA's new licensing framework, which allows Category 1 Investment Company licensees to engage in a range of activities previously authorized only for investment banks.

"Today represents a milestone for Capital Management House as we establish the foundations upon which we can capitalize on the demand for Shari'a-compliant asset management and capital markets activities and advisory services," said Mr. Al Bassam, who was elected Chairman of CMH at the first meeting of the company's Board, held immediately after the constituent general assembly. During its first meeting, the Board also elected Mr. Ziad Makkawi as Vice Chairman and formed its Executive Committee.

"In addition to support from a prominent GCC shareholder base, we now have in place a fully functional Board of Directors consisting of high caliber investment professionals from across the region as well as a seasoned Chief Executive to lead our executive management team and the development of our business."

The other members of the Board are as follows:

Vice Chairman: Mr. Ziad Makkawi, Chief Executive Officer, Dubai Bank
Mr. Abdulrahman Ahmed Abdulmalik, Independent
Mr. Khalid Najibi, Executive Director, Najibi Investment Company
Mr. Jamal Al-Ojaili, Chief Executive Officer, Global Financial Investment
Shaikh Khalid bin Mohammed Al Khalifa, Chief Executive Officer, Palm Capital
Mr. Saleh Al-Afaleq, Director of Finance, Al-Kifah Holding Company
Mr. Dan Stockalper, President, Securinvest Consultants Inc.

"CMH intends to create a niche for itself by providing high value added products and services. Our aim is to create new opportunities within the GCC region as well as diversifying into other markets, particularly Europe and South East Asia," said Mr. Al Bassam.

CMH will also focus on leveraging the opportunities being created by the privatization of Government owned companies, as well as wide-ranging economic reforms which allow the private sector assumes a greater role in the region's economic development.

The first Board meeting also approved the appointment of CMH's Shari'a Supervisory Board, which will comprise leading Shari'a scholars Dr Mohamed Ali Elgari, Shaikh Nizam Yaquby and Dr Mohammed Daud Bakar.

"We are delighted to have on board a team of renowned Shari'a scholars, whose opinions are highly valued by the Islamic banking industry, and a Chief Executive, who brings with him strong capabilities in regional and international treasury and investment operations," said Mr. Al Bassam.

"I would also like to take this opportunity to extend our thanks to the BMA for its support in establishing CMH. Bahrain is an excellent location for a company such as CMH because of the critical mass of financial institutions, support services and industry talent."