(MENAFN - Arab News) Albaraka Banking Group BSC (ABG), the Islamic banking group based in Bahrain, has announced the acquisition of 60 percent of the issued shares of Al-Tawfeek Financial Group through its subsidiary in Bahrain, Al-Baraka Islamic Bank.
Al-Tawfeek Financial Group Company is a closed joint stock company registered in Saudi Arabia and licensed by the Capital Market Authority. The company engages in asset and portfolio management, custody, debt and equity arranging, as well as research and advisory services. All products and services offered by the company are in compliance with the provisions of Shariah. The company's authorized capital is SR360 million.
Adnan Ahmed Yousif, president and chief executive of ABG, said: "The acquisition of Al-Tawfeek Financial Group Company is an excellent move that reflects our group's strategy to enter key regional markets, for Saudi Arabia is the largest Arab economy with strong fundamentals and a stable financial and investment environment. The procedures for consummating the acquisition are currently being finalized. We view this step as a strategically vital acquisition for the group."
Yousif added: "We view this step as a strategically vital acquisition for the group. Our founding shareholders have a strong base in the Saudi market so the acquisition of the Al-Tawfeek Financial Group will strengthen that presence. The Saudi market represents a key entry point for us to access the extensive base of investors and provide them with a wide range of Shariah compliant products that have been developed by the company and the group for the past many years. The ABG Group has the unique advantage of a large and geographically diverse network in many countries, whose experience and track record we will draw upon to strengthen our business presence in the Saudi market. This acquisition endorses our strong commitment to the region despite the economic and political developments regionally and globally, which clearly demonstrates our financial soundness and successful strategy. It is these qualities that have enabled us to achieve continued success and growth."
Mohamed Isa Al-Mutaweh, board member and chief executive officer of Al-Baraka Islamic Bank-Bahrain, said: "The acquisition of Al-Tawfeek Financial Group Company will be an excellent strategic move for us to further strengthen our presence in the region and will give us the diversity in product and client base. We expect to derive considerable synergy from our operations in Saudi Arabia which will enhance the overall revenue, asset and client base of Albaraka Islamic Bank."
Albaraka Banking Group (ABG) is a Bahrain joint stock company listed on Bahrain bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic bank with Standard and Poors investment grade long term counterparty credit rating of BBB- / A-3 (Short Term) with a Negative Outlook.
ABG offers retail, corporate and investment banking and treasury services strictly in accordance with the principles of the Shariah. The authorized capital of ABG is 1.5 billion, while total shareholders' equity amounts to about 1.8 billion. The group has a wide geographical presence in the form of subsidiary banking. Units and representative offices in 12 countries, which in turn provide their services through more than 400 branches.
These banking Units are Jordan Islamic Bank, Albaraka Islamic Bank Bahrain, Albaraka Bank Pakistan Limited; Banque Albaraka D'Algerie, Albaraka Bank Sudan; Albaraka Bank Limited, South Africa; Albaraka Bank Lebanon; Albaraka Bank Tunisia; Albaraka Bank Egypt; Albaraka Turk Participation Bank, Albaraka Bank Syria and representative offices in Indonesia and Libya (under formation).