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Islamic bank launched in Bahrain

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Points of Essence:

  • Bahrain has recently welcome the newly launched Capinnova Investment Bank, the Shariah compliant investment arm of BBK. Focusing to serve the GCC and MENA markets, the bank which core areas of business include private equity, asset management and corporate finance, will provide Shariah compliant investment products and services. This will strengthen Bahrain’s position as one of the main global drivers of Islamic finance.


MANAMA: Bahrain-based BBK has announced the launch of Capinnova Investment Bank, its new Sharia-compliant investment banking arm. A wholesale Islamic investment bank, Capinnova is licensed by the Central Bank of Bahrain and capitalised at $500 million with a fully paid-up capital of $125m.

“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 five years according to a recent Standard and Poor’s rating agency report,” said BBK chief executive officer and Capinnova Investment Bank chairman A Karim Bucheery, at the launch of the bank at the Ritz-Carlton Bahrain Hotel and Spa yesterday.

“Capinnova aims to leverage on this exponential growth and further strengthen the Islamic banking industry in Bahrain and across the region.”

Capinnova’s core areas of business include private equity, asset management and corporate finance and the bank will provide several value-added financial services.

The bank develops Sharia-compliant investment products and services for financial institutions, corporate customers, high net-worth individuals, investors and family businesses, regionally and globally.

“Capinnova’s vision is to be a world-class Islamic investment bank offering a range of high-quality products and services to a diverse clientele,” added Capinnova Investment Bank chief executive officer Jamal Hijres.

“Our mission is to become the Islamic investment bank of choice and a niche player, providing clients in the GCC and Middle East and North Africa regions with superior investment products aimed at building and sustaining shareholder value, whilst maintaining an optimal balance between risks and returns,” he said.

Capinnova will provide a variety of products, including murabaha, ijara, mudaraba, musharaka, Al Salam and istitsna’a, restricted and unrestricted investment accounts, syndications and other structures used in conventional finance, which have been appropriately modified to comply with Sharia principles.

“Our board of directors and executive management are seasoned bankers with considerable wealth of local and global experience. We will aim to provide the market with differentiated investment offerings targeting top quartile returns on a consistent basis,” Mr Hijres added.

In recent years, Bahrain has rapidly become a global leader in Islamic banking, playing host to the largest concentration of Islamic financial institutions in the Middle East.

In addition, Bahrain is at the forefront in the market for Islamic securities (sukuk), including short-term government sukuk as well as leasing securities. The Central Bank of Bahrain has played a leading role in the introduction of these innovative products.


Written by Suapi Shaffaii

January 13, 2009 at 4:11 pm

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