MANAMA, 20 September 2007 — Ithmaar Bank, a Bahrain-based investment bank with global reach, plans to invest SR23 million ($6.1 million) in Ethraa Capital, an investment company under establishment with joint venture partners from Saudi Arabia and Kuwait.
Ithmaar said in a statement yesterday that Ethraa Capital, once licensed by the Saudi Arabian Capital Market Authority (CMA), will offer a full range of investment banking activities within the Kingdom and eventually elsewhere in the GCC. These will include corporate finance, brokerage, portfolio management, private placement, advisory, arranging, custody and related services.
Ithmaar Bank will have a 23 percent stake in the new entity, with Saudi-based Atheeb Trading and Kuwait Investment Company (KIC) as other major stakeholders. Ithmaar Bank has already received approval from its regulator, the Central Bank of Bahrain (CBB), for this proposed investment, the statement said.
“While Ithmaar Bank is a globally focused institution, we are also keen to strengthen our foothold in key GCC markets such as Saudi Arabia. Ethraa Capital is the right vehicle to help us achieve this,” said Khalid Abdulla-Janahi, chairman, Ithmaar Bank. “There are approximately 78 companies authorized by the CMA to conduct some or all of the business lines that Ethraa Capital plans to launch. We believe that there is much room for growth in the vast and highly liquid Saudi Arabian market and we believe that we have the right partners in place to help us add value for our investors,” he added.
“Ithmaar Bank has a solid team in place, led by its CEO Michael P. Lee, which will be working closely with Ethraa in its early days. Ethraa Capital will also be staffed with highly skilled investment professionals, who will gain the trust of high net worth individuals and institutional investors in Saudi Arabia and undoubtedly help make it one of the premier companies of its kind in the Kingdom,” Janahi further said.
The proposed company will be headquartered in Riyadh and may open branch or affiliated offices in Saudi Arabia and elsewhere as it expands.
