Albaraka Banking Group has won an official approval to set up Albaraka Bank Syria. Syrian council of ministers have given the go-ahead to the Bahrain-based group.

'A founding committee has been formed to follow up on the implementation of the procedural formalities and administrative steps required for the incorporation of the bank including arranging a promoters' meeting, preparing the operational plan, determining the number of branches, setting the strategies of the services and products that will be offered by the bank, which have all been approved by the committee,' said Albaraka Banking Group president and chief executive Adnan Ahmad Yousif.

He will chair the founding committee meeting and Mohammed Al Shaer has been appointed as vice-chairman.

Albaraka Bank Syria will be established with a capital of $100 million, which will be subscribed to by the promoters and shareholders in a public offering.

The bank will commence its operations during the early months of this year and will provide all Islamic banking products and services to both individuals and companies through a network of branches that will cover the main cities in Syria.

'The Syrian market is witnessing significant growth as a result of the continuing economic reforms which resulted in the liberalisation of the regulations governing investments by local private sector and foreign investors,' Mr Yousif said.

'Substantial amounts of money are flowing into many infrastructure, industrial, commercial and service sectors projects and this will create good opportunities to banks and investors which in turn will make the Syrian market an attractive destination for investors including a number of foreign banking institutions.

'What makes Albaraka Bank Syria different is that it is committed to providing services and products that comply fully with Sharia principles.

'The bank will also be strongly supported by the vast banking experience of the group as well as its strong financial resources and technical capabilities and the large network of subsidiary banking units that it has in 12 countries around the globe with more than 270 branches.'

He added that establishing Albaraka Bank Syria was part of the implementation of the long-term strategy of Albaraka Banking Group in terms of expanding its presence in regional, Arab and international markets, which in turn would enhance the strategic plans of the group and help expand its geographical presence.-TradeArabia News Service