Thailand Financial News

The Kingdom of Bahrain’s prominence as the undisputed banking and finance hub of the region was once again reaffirmed with the announcement of another new bank establishing operations in Bahrain.

Global Banking Corporation [GBCORP] is a new investment bank incorporated in Bahrain with paid up capital of US$250 million.

GBCORP’s experienced board of directors and senior management professionals bring to the fore a wealth of banking and finance expertise at the regional and international arena with the professionalism and strategic thinking to leverage on the growing global demand for Islamic investment banking services. GBCORP will focus on core business areas of Private Equity and Venture Capital, Real Estate and Infrastructure Development, Asset Management, Advisory Services in Corporate Finance and Capital Markets, and Portfolio Management Services. Speaking at the press conference to announce the launch, Chairman Mr Saleh Al Ali Al Rashid said, “GBCORP’s strategy is aimed at capturing a significant share of the US$500 billion global Islamic banking market. The bank will use the booming GCC economies as a springboard for expansion into Asia, North Africa and Europe with an innovative product portfolio designed to reach across geographic boundaries and target markets including governments, private and public sector enterprises, wealthy family groups and high net worth individuals.” Mr. Al Rashid added “that the Bank would grasp global investment opportunities and address the growing demand for Islamic investment instruments both at the regional and global level.” “Our initial strategic focus will be to excel through our infrastructure development projects and deals. Based on the expertise we have on board, we will achieve long term profitable growth and superior return on investments for our shareholders, partners and investors,” he added. Vice Chairman and Managing Director, Mr. Abdulrahman Al Jasmi, said that “GBCORP would also strongly focus on family companies and high net worth individuals with Private Equity and Asset Management products. “With US$2.3 billion raised in private equity funds in the GCC between 2002 and 2005, GBCORP sees family owned businesses and established private companies looking for outside investors or major capital investment as a valuable source of business “ he emphasized. Drawing attention to GBCORP’s strategic market positioning, Chief Executive Mr. Mark Hanson said, “As strong growth in the GCC produces record economic performance, governments are looking to invest in huge real estate and construction infrastructure projects, energy, telecoms and financial services. The governments of Saudi Arabia and Qatar alone are spending billions of dollars in these sectors and are looking at appropriate ways of funding these projects. GBCORP will target these sectors by providing innovative ways of funding infrastructure projects.” Reaffirming GBCORP’S Islamic credentials, Al Jasmi said that “the Bank’s Islamic product portfolio will have a global appeal across religious boundaries and not be limited by geographic factors. All our investments will be Sharia’a compliant. As an Islamic Bank, we believe Global Banking Corporation should be at the forefront in shaping the growing collaboration between Sharia’a compliant and other financial institutions” he added. GBCORP will also be offering Islamic financial products for GCC Real Estate and Infrastructure development projects. With an overall value of on-going and planned real estate development worth $90 billion, the Bank will participate in real estate ventures by targeting developers using special purpose financial products. Highlighting GBCORP’s presence in Bahrain, Ahmed A. Aziz Al Bassam, Director of Licensing & Policy at the Central Bank of Bahrain (CBB) said, “The CBB is delighted to grant an Islamic Banking license to Global Banking Corporation. The CBB is also notes that with the issuance of this license we have now reached 400 financial institutions in Bahrain and we believe GBCORP will help add to the economic growth of Bahrain and the region, thus furthering and consolidating Bahrain’s position among the leading financial centers of the world. The expected mega projects which will be implemented over the next six years will exceed US$1.25 trillion, up from US$67 billion in 2003, US$ 490 billion in June 2005, and US$1.0 trillion June 2006 more than half of the projects are still in the planning stage. He added that private sector participation is rising and that investment banks in Bahrain are playing a huge role in these developments. The CBB’s strategy is to encourage investment initiatives and foreign investments in Bahrain. The CBB has taken a number of initiatives in enhancing the regulatory environment, to enable Bahrain-based financial services providers to meet the growing needs of their customers, such as the Trust Law and the new framework for Collective Investment Undertakings (CIUs) which includes hedge funds, Mr. Al Bassam said, ” Total number of register funds as of May 2007 reached 2,312 of which 105 are locally incorporated and 84 follow Sharia’a Principals. We look forward to further growth in the fast paced investment banking sector and a bank with a global vision such as GBCORP will help to make this happen.” CE Hanson emphasized that whilst GBCORP’s initial business ventures will be in the GCC region, the Bank’s management possess the international banking experience necessary to grow our business through strategic alliances across the globe. “We see Europe (with its growing demand for Islamic banking), Asia (Hong Kong/China/Singapore/Malaysia) and the Islamic countries and emerging markets of North Africa as regions where GBCORP can have significant success” he said. Key to GBCORP’s success will be their Portfolio Management Group. Comprising some of global investment banking’s most respected and experienced figures, each Portfolio Manager will create strategic alliances with clients from the Bank’s target audiences. “The Bank’s Portfolio Management Group brings together investment banking professionals of the highest caliber from across the globe, each with international experience in our target markets. All clients will have a direct professional relationship with their Portfolio Manager, enabling us to keep in close contact as we work together towards achieving client’s investment objectives” said Al Jasmi. GBCORP aims to achieve international standards of best practice in corporate governance, financial transparency and disclosure complemented by a strong team of banking professionals. –ww.theasianbanker.com (June 27 2007)–