The Islamic finance industry in the region will gather momentum in 2009, according to the head of ‘Capinnova Investment Bank’, the Shari’a compliant investment banking arm of Bank of Bahrain and Kuwait (BBK).

'We are confident about the Islamic finance industry’s future and we are one of the prime examples to support that confidence as our bank was launched in January 2009,' stated Jamal Hijres, chief executive officer, Capinnova Investment Bank.

'The key fact that the Islamic finance industry is asset based and not debt financed, has protected and prevented this sector from the crises that has brought the downfall of conventional financial giants worldwide.'

'The growth of Islamic banking industry in particular has been remarkable in recent years and it is expected to reach $4 trillion in the next 5 years according to the recent Standard and Poor’s rating agency.'

'Capinnova Investment Bank aims to leverage on this exponential growth and further strengthen the Islamic Banking industry in Bahrain and across the region,' added Hijres.

Capinnova’s core areas of business include private equity, asset management and corporate finance and the bank hopes to close its first deals during the first half of the year.

Capinnova is licensed by the Central Bank of Bahrain; it is well capitalised and is wholly owned by BBK. It has an authorised capital of $500 million and paid-up capital of $125 million.-TradeArabia News Service