EIIB acquires 35pc stake in Rasmala
Dubai, January 7, 2012
European Islamic Investment Bank (EIIB) is to invest $16 million over 12 months in Dubai-based Rasmala Holdings via a financing facility convertible into shares representing about 35 per cent of the group's enlarged capital.
Rasmala chairman Ali Shihabi said yesterday that Rasmala chief executive Anwar Abu Sbaitan would continue in that role. Shihabi will be chairman of Rasmala's supervisory board.
Rasmala, which has around $900 million in assets, has offices in the UAE, Saudi Arabia, Oman and Egypt and operates in asset management, corporate finance and institutional brokerage.
Shihabi said in November that EIIB was in talks with one party about investing in the bank as part of a capital boost. EIIB confirmed those talks last month.
'This transaction will strengthen our balance sheet and allow us to compete more effectively in a challenging but also exciting regional environment,' Shihabi said yesterday.
Earlier this year, a slump in turnover forced Rasmala to close its UAE retail brokerage business and to focus on institutional brokerage and research, asset management and corporate finance.-Reuters
More Finance & Capital Market Stories
- Experts put spotlight on Mena tax issues
- BMI, Muharraq SC launch co-branded credit card
- NBAD partners with top business school
- Dubai non-oil trade surges 10pc to $272bn
- Iran president targets stagflation in first budget
- DFM accredits 2 firms for margin trading
- Kuwait inflation plunges to nine-year low
- DFM trading hit by technical fault
- GCC firms seek Egypt investment guarantee
- Qatar c.bank plans $1.1bn in bonds, sukuk