MANAMA, 21 August — Three new pioneering financial companies will be set up in Bahrain soon, it was announced here yesterday by an investors’ representative.
The three companies, which will be the forerunners in the region with regards to their structure, market positioning and business focus, will be named as Overland Leasing Bank, Oasis Trust Management Company and Solidarity, according to Khalid Abdulla-Janahi, chairman of DMI Administrative Services.
"The launch of these companies will bring international investors, as well as professional expertise, to the region. The initiative will usher in a new era of strategic joint venture partnerships. It will also introduce never-before professional expertise and business prospects in the regional financial sector. We are confident that it will encourage other financial institutions to follow suit," he said. "We take great satisfaction and pride in the fact that the launch of these financial companies will contribute positively to the progress and economic growth of Bahrain which already enjoys the status of being the financial hub in the region," said Abdulla-Janahi.
"The Bahrain Monetary Agency’s commitment to develop Bahrain as an international financial center in its role of being the single monetary regulator — responsible for the implementation and control of a transparent financial system makes Bahrain the most appropriate place in which to base these businesses," he added.
Abdulla-Janahi said an application to the BMA for investment banking license for Overland Leasing Bank has been submitted. The new bank will be established in association with other investors namely Gulf Investment House, Gulf Finance House and Overland Capital Group.
The role of Bahrain-based Overland Leasing Bank will be to provide equipment leasing in governmental and quasi-governmental sectors, as well as to other potential businesses and companies in the region. The bank will set up specific funds for targeted businesses in the region, most of which will be listed on Bahrain Stock Exchange, as well as other regional stock exchanges.
With an authorized capital of $50 million, the bank will start operations prior to the end of the year 2002. The second company, Oasis Trust Management Company, will be a joint venture with a Jersey-based trust management firm. Oasis will cater to select individuals and corporations in need of services with the specific intention of the trust assets being invested according to Shariah principles.
The BMA has granted an initial approval for the joint venture to set up a branch office in Bahrain in order to conduct its local and regional business.
Oasis Trust Management Company will be managed by the joint venture partners, Volaw Trust, which has proven experience in its respective field of business.
The third pioneering project is in the field of Takaful (Islamic insurance). The project has been initiated in association with an investment bank for the purpose of expanding the Islamic insurance market. "We see a great demand for Islamic assurance and life-related business in the region which has so far been somewhat neglected" said Abdulla-Janahi.
In principle approval has been obtained from the BMA to raise an initial capital of $100 million through a private placement and subsequently another $30 million through a public offering. The tentatively agreed name for the Islamic insurance company is Solidarity, which will have the technical and strategic assistance of an internationally renowned name in the field of insurance and assurance business.