Islamic Finance News Portal – Bringing you the latest updates in global Shariah finance

Watch out for news alert!

Al Salam Bank Commences Operations in Algeria

leave a comment »

Points of Essence:

  • Apart from Bahrain and Sudan, Al Salam Bank has further expanded its Islamic banking network to Algeria to tap into potential financing requirements and investment opportunities in Algeria.

With a paid up capital of US$100 million

Algeria- The inauguration of Al Salam Bank – Algeria took place at the Sheraton Hotel in Algeria with H. E. Hussein Mohammed Al Meeza, Vice Chairman of the Board of Directors of Al Salam Bank and a number of high ranking officials and businessmen in attendance. The event marks the launch of the bank’s opening, offering high quality services to the Algerian market.

Al Salam Bank has previously acquired the license of Algeria’s Money and Credit Council to operate as one of the largest banks in North Africa and to offer its banking services through its headquarters and one branch in the Algerian capital city with a paid up capital of 7.2 billion Algerian Dinars (US$100 million).

Al Salam Bank – Algeria will provide innovative banking services and will play a leading role in the Islamic banking market though availing unique products and solutions designed by experienced specialists in the Islamic banking industry that has been in the forefront of banking businesses in the region.

In his speech on this occasion, H. E. Hussein Mohammed Al Meeza, Vice Chairman of the Board of Directors of Al Salam Bank, stressed that the opening of Al Salam Bank – Algeria comes at an important stage of Algerian history as the government is taking huge economic strides to attract investments, and Algeria is poised for a new era of comprehensive development that will prevail all over the country.

Al Meeza said: “Investment opportunities in Algeria are huge. Vast segments of Algerian society are looking for new banking services to help them achieve ambitions in various sectors of the economy. Algerian market is witnessing a real investment revolution. In mid 2007, investments of 6162 domestic enterprises were valued at US$10 billion, in addition to foreign investments mounting to US$10 billion. By the end of 2008, investments are expected to reach US$50 billion, while growth rate is predicted at 5.8 per cent. The Gross Domestic Product (GDP) for this year is estimated to be 6864 billion Algerian Dinars, with an assumed oil price of US$19 per barrel.”

“In the light of these changes,” Al Meeza added, “we have launched an initiative to establish Al Salam Bank – Algeria in Algeria to cater for the development needs in all economic fields. We strive to offer modern banking services that are based on our values and principles which form the basis of our business movements and concepts. We are seeking to provide our customers with high quality services and products which are designed to complement the market’s, customers’ and investors’ requirements and to meet the highest internationally recognised standards. We place the highest priority on innovative and modern solutions, efficient decision making and prompt implementation so that we can maintain our status as the first choice for customers who look for progress and prosperity in Algeria.”

According to Al Meeza, Al Salam Bank – Algeria will act as a world commercial bank adopting an Islamic banking system that is based on inferential benefits and mutual ambitions. With an excellent and experienced team, the bank will promote modernisation and change, and will constantly work to bolster its leading position in the banking sector. The bank also uses state-of-the-art technology to guarantee easy and effective services and to continue with its drive to support the banking sector in Algeria.

The Vice Chairman of the Directors Board of Al Salam Bank – Algeria said that performance of Al Salam Bank- Algeria is based on innovative banking solutions, conclusive decisions, prompt implementation and accurate delivery. He pointed out that these aspects are effective in creating strong ties with customers and ensuring customers’ instant loyalty to keep the bank as their first choice.

The Bank’s priorities, according to Al Meeza, will focus on the human resources’ efficiencies, coordination and ability to create innovative ideas and fruitful programmes and banking solutions that complement the needs of both customers and markets and lead to prosperity and progress.

Al Meeza expressed his appreciation for the efforts paid by all segments of Algerian society to support this bank that will play a premier role in realising the future generations’ ambitions. He also thanked all contributors and customers for the confidence they have placed in the bank.

Al Salam Bank – Algeria will offer a wide range of services including: safe deposit boxes, Automatic Teller Machines (ATM) which are scattered in many vital areas, telephone banking, mobile banking (SMS), on line banking and customers’ call centre.

Al Salam Bank – Algeria will offer a variety of banking services, including: saving accounts; investment deposits, which offer the chance to invest in remunerative businesses, with profits awarded at the end of the deposit term according to the investments’ performance; and real estate financing to help a customer own a new house through Murabaha, Ijara and Istisna’a that cover up to 80% of the value of the property over a maximum period of 20 years.”

Services offered at Al Salam Bank also include vehicle financing (Murabaha) covering up to 80% of the vehicle value for a maximum period of 5 years, i.e. 60 months. Consumer financing is also available to cater for customers’ needs of furniture and home appliances through Al Murabahah that covers up to 100% of the purchase value over a maximum period of 5 years (60 months). The bank also issues investment certificates that are entitled to earn profits at the end of their terms as per the performance of the executed investments. In addition, the bank allows premature redemption of deposits, secure investment of money, financing against treasury bonds mortgage, as well as other services that will be announced in the future.”

Source: http://www.zawya.com

Advertisements

Written by Suapi Shaffaii

October 21, 2008 at 12:14 pm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: