Press Conference
GFH signs up for key infrastructure opportunities for its Syrian bank under establishment, SFH
SFH to facilitate the growth of the national economy
Damascus, Syria, Tuesday 16th March, 2010 - Gulf Finance House (GFH) announced today that it has signed on behalf of Syria Finance House (SFH), one of Syria’s largest Islamic banks under establishment with a capital of US$333m, Memorandum of Understandings with the Syrian Investment Authority (SIA) to develop an economic zone, power projects and phosphate mines.
The announcement was made in a press conference held on the sidelines of the 5th Islamic Banks and Financial Institutions Conference in Syria, at the Four Seasons Hotel in Damascus. The conference was hosted by GFH who are spearheading this initiative along with the SIA with whom they have been working closely for months to bring these opportunities into reality.
SFH will take the lead in conceptualizing these opportunities, draw up the necessary plans, structure the financial instruments required to finance these projects, raise the necessary funds and sub - contract developers to commence with the work.
Last week, GFH has announced that it’s in the advanced stages of obtaining its license from the Central Bank of Syria for SFH that would operate in both commercial and investment banking activities. The bank will cater for the growing financing demands and enter into untapped segments, offering a suite of Islamic finance products including private equity funds.
On the reasoning behind SFH, Gulf Finance House Chairman, Esam Janahi explained:
“Under the leadership of His Excellency Dr. President Bashar Al Asad the Syrian authorities have embarked on cross - governmental reforms to create an open business environment, laying out strong commercial and legal framework that has attracted FDI and witnessed considerable growth in the Syrian economy standing largely resilient to the current difficult global conditions. Furthermore, the impressive growth of private banks over the last five years driven largely by deposits resulted in excess liquidity in the market which could be better utilized in funding the various business and infrastructure opportunities in the nation. This made a compelling case to use our expertise in emerging markets and Islamic finance to establish SFH and look into infrastructure opportunities like phosphate mining, electricity power generation and developing an economic zone.”
Dr. Ahmed A.ziz, Head of Syria Investment Authority commented “We have been working for some time now with GFH to study and explore a number of infrastructure development opportunities and we are pleased today to sign this agreement, marking the first milestone towards creating promising investments for the economy of Syria and SFH’s stakeholders”
“The Syrian market enjoys excess liquidity, with deposits the main reason behind the 30% growth in private banking,” commented Hisham Alrayes, Head of Private Equity and Venture Capital at GFH. “Our plan is to provide suitable investment opportunities to employ these deposits and in the development of local business and the country itself in line with the Syrian Government’s 5 Year Plan for socio - economic growth and prosperity, Through this plan, the Government’s aims to attract US$ 9 billion in various developments which further adds to the significant demand for financing and project development,” he continued.
Once licensed, 30% of SFH’s capital will come from an Initial Public Offering whilst 10% will be funded from the local partners and the remaining 60% will be funded from GFH, strategic financial institutions and its investors.
Ends
About Gulf Finance House
Established in 1999, Bahrain based Gulf Finance House (GFH) is one of the most successful and innovative Islamic investment banks in the Middle East. GFH historically focused on the conception and delivery of high value economic infrastructure projects. The Bank has also offered a diversified product range with a number of venture capital, private equity and asset management initiatives in addition to pioneering a number of Islamic financial institutions.
In addition to its share listings on the Kuwait and Bahraini Stock Exchange’s and the Dubai Financial Market, 2007 witnessed the Bank’s GDR listing on the London Stock Exchange. Over the past year, GFH has evolved its business model with a view to establishing itself as the world’s leading Islamic investment bank. Under this new structure GFH will essentially operate with two primary businesses, GFH Real Estate & Infrastructure and GFH Capital.
The Bank has won numerous local and international awards as a testimony of its commitment to excellence and its pioneering and innovative approach, including “Best Investment Bank 2008″, by Islamic Banking and Finance, “Best Investment Bank” three years running (2005-2007), awarded by Banker Middle East; “Best Islamic Investment Bank” by World Finance 2007; “MENA Investment Bank of the Year 2008″ by Acquisitions Monthly; “Best Investment Bank 2008″, by Islamic Banking and Finance; and “Best Islamic Finance House” at the Banker Middle East Industry Awards 2009.
For further information please contact:
Ahmed Al Derazi
PR-Corporate Communications Department
Tel: +973 17538538 Ext 274
Email:
Website: http://www.gfh.com/