DUBAI: Board of Directors of Al Baraka Banking Group resolved to initiate the process of converting the current license of its parent company in Bahrain from a wholesale bank to a category 1 investment firm, subject to regulatory and shareholders’ approvals.
Upon receiving the new license, the Group shall continue to be supervised by the Central Bank of Bahrain. The decision comes in line with its future strategy and business model and to benefit from the regulatory framework of the Central Bank of Bahrain (CBB) for wholesale banks and investment firms.
The Group’s banking subsidiaries, including Al Baraka Islamic Bank, Bahrain, will continue their banking activities and business as usual under the supervision of the Central Bank of Bahrain and their respective local banking regulators. ABG will continue to be listed on the Bahrain Bourse and NASDAQ Dubai.
The Chairman of the Board of Directors of Al Baraka Banking Group (ABG), Shaikh Abdullah Saleh Kamel stated, “The new license will enable ABG to streamline its parent company’s operations and to extract higher returns from its resources. ABG will also be playing a more active role in the financial markets and contributing to Bahrain’s reputation as a leading global financial hub.
Following the fulfillment of all regulatory requirements and securing CBB approval, ABG will convene an Extraordinary General Meeting to seek shareholders’ approval for the license conversion”.
The President & Chief Executive of Al Baraka Banking Group, Mr. Adnan Ahmed Yousif stated, “This move is part of our continuous effort to create value for our shareholders and the different stakeholders we are dealing with. We have sought the guidance and approval of CBB to proceed with the proposed license change and we would be moving forward by requesting to transition from the license of a wholesale bank into a Category 1 investment firm under the supervision of the CBB. We believe that this will significantly improve our efficiency and will have a positive impact on our bottom line.”
ABG has a wide geographical presence in the form of subsidiary banking units and representative offices in 17 countries, which in turn provide their services through over 700 branches. Al Baraka Banking Group has operations in Jordan, Egypt, Tunis, Bahrain, Sudan, Turkey, South Africa, Algeria, Pakistan, Lebanon, Saudi Arabia, Syria, Morocco and Germany, in addition to two branches in Iraq and representative offices in Indonesia and Libya.
The Group and its Units offer retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari’a. The authorized capital of ABG is US$ 2.5 billion.
Al Baraka Banking Group is a Bahraini multinational banking corporation and is based in Manama, Bahrain. It was formed in 2002 in Manama, Bahrain. The company is listed on the Bahrain Stock Exchange and NASDAQ, the group offers retail, corporate and investment banking and treasury services in accordance with the principles of the Shari’a in 15 countries.