New Islamic bank will be formed in 2008

by Richard Kilner

Story link: New Islamic bank will be formed in 2008

Shaikh Saleh Kamel, chairman of Al Baraka Banking Group (ABG), has stated that by the fourth quarter of 2008 there will be a new Islamic bank on the scene complete with a market cap of $321bn.

Kamel, who not only chairs the world’s largest Islamic banking group but is also a top flight Saudi businessman, made the statement at the ABG’s annual general assembly yesterday.

The new bank’s initial capital would $11bn, with $110bn raised from funds and almost twice that from Islamic bonds (sukuks).

Kamel also revealed that shareholders in the venture would include Jeddah-based Islamic Development Bank, the Kuwait Real Estate Bank, the Saudi Investment Bank in addition to the ABG.

The chairman went on to say that ABG was not negatively affected by the subprime mortgage crisis, due to its strict compliance with Sharia principles.