Al Baraka Banking Group BSC (ABG), the leading Islamic banking group based in the Kingdom of Bahrain, announced the acquisition of 60% of the issued shares of Al Tawfeek Financial Group through its subsidiary in Bahrain, Al Baraka Islamic Bank.
Al Tawfeek Financial Group Company is a closed joint stock company registered in the Kingdom of Saudi Arabia and licensed by the Capital Market Authority. The company engages in asset and portfolio management, custody, debt and equity arranging, as well as research and advisory services. All products and services offered by the company are in compliance with the provisions of Islamic Sharia. The company’s authorized capital is SR 360 million.
“The acquisition of Al Tawfeek Financial Group Company is an excellent move that reflects our Group’s strategy to enter key regional markets, for Saudi Arabia is the largest Arab economy with strong fundamentals and a stable financial and investment environment, which presents us with significant business and investment opportunities. The procedures for consummating the acquisition are currently being finalized,” Adnan Ahmed Yousif, President and Chief Executive of Al Baraka Banking Group said.
“We view this step as a strategically vital acquisition for the Group. Our founding shareholders have a strong base in the Saudi market so the acquisition of the Al Tawfeek Financial Group will strengthen that presence. The Saudi market represents a key entry point for us to access the extensive base of investors and provide them with a wide range of Sharia compliant products that have been developed by the Company and the Group for the past many years. The ABG Group has the unique advantage of a large and geographically diverse network in many countries, whose experience and track record we will draw upon to strengthen our business presence in the Saudi market. This acquisition endorses our strong commitment to the region despite the economic and political developments regionally and globally, which clearly demonstrates our financial soundness and successful strategy. It is these qualities that have enabled us to achieve continued success and growth,” he added.
“The acquisition of Al Tawfeek Financial Group Company will be an excellent strategic move for us to further strengthen our presence in the region and will give us the diversity in product and client base. We expect to derive considerable synergy from our operations in Saudi Arabia which will enhance the overall revenue, asset and client base of Al Baraka Islamic Bank,” Mohamed Isa Al Mutaweh, Board Member and Chief Executive Officer of Al Baraka Islamic Bank Bahrain, said.