ISLAMIC BANKING

Mega-bank on the way

August 2010

GULF INVESTORS are launching a new $10 billion Islamic bank and plan a $3 billion initial public offering in the fourth quarter (Q4) to tap interest in sharia-compliant institutions, bank executives say.

Adnan Ahmed Yousif, chairman of the Union of Arab Banks said on the sidelines of a banking conference in Dubai that the new bank was in the “final stages” of establishing its founding shareholders and would be formed by the end of this year.

Demand from the world’s 1.3 billion Muslims for investments that comply with their beliefs has soared, and assets that comply with Islamic principles are estimated to be worth up to $1 trillion.

Saudi Arabian businessman Shaikh Saleh Kamel is behind the plan, which has been in the pipeline for at least two years.

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