JEDDAH, 27 May 2007 — Rasmala, a leading regional investment bank headquartered in Dubai International Financial Center (DIFC), announced yesterday that the company has recently doubled its capital from AED185 million to AED370 million, attracting a number of major investors from Saudi Arabia, Abu Dhabi, Dubai and Oman through a private placement.
“Doubling Rasmala’s capital has broadened our share holder base and will further strengthen our financial position to support our strategy of aggressive growth in the region,” Ali Samir Al-Shihabi, founder and CEO of Rasmala Investments, said on the achievement.
Earlier this month, the company, with the approval of the Saudi Capital Market Authority and the Ministry of Commerce, launched operations in the Kingdom, appointing Hamad Mubarak Al-Huthaili as the subsidiary’s managing director.
Speaking to Arab News on the subject of Rasmala’s latest feat, Al-Huthaili said: “ I believe that Rasmala’s success is due to the company’s steady growth over the last five years stemming from having a clear objective, focused approach, transparent mandate and leadership with a vision.” “I also feel that with the doubling of Rasmala’s capital, this will serve to broaden our deal orientation from other GCC countries such as Oman, Qatar, the UAE and in the Kingdom. This broadening will give Rasmala the ability to execute and approach larger deals, only adding to the company’s success in the future,” he added.
He further said that another factor in the triumph of Rasmala lies in the fact that the GCC market is primed with investment banking services readily needed in the region. “There’s fast wealth in the region with Saudi Arabia being a large portion of that wealth,” Al-Huthaili said.
According to a recent report, about $4.1 trillion or just over SR15 trillion is available in the Middle East economies for potential investment, making the Arab world one of the most valuable sources of investment capital in the world. The report added that the eruption of the region’s liquidity is due mainly from the repatriation of Arab capital from the West back into the GCC market following the 9/11 attacks, coupled with record oil prices — all which have helped keep the region’s economies buoyant.
Among Rasmala’s shareholders is Deutsche Bank along with other prominent institutions and individuals from the region. As part of the capital increase, Deutche Bank has raised its stake in Rasmala from 11 percent to 18 percent, making it the company’s largest shareholder.
Since its establishment in 2002, Rasmala’s activities cover Islamic finance, private equity, brokerage, fund management in Arab and global financial markets, real estate and investments.