21 October 2008 Armed with a paid-up capital of $100 million, the Kingdom-based Islamic investment bank, Al Salam Bank Al Salam Bank yesterday commenced operations in Algeria taking its Islamic banking model to the North African region. The bank acquired the licence 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 in the Kingdom besides a branch in the Algerian capital city with a paid up capital of 7.2 billion Algerian dinar ($100 million). The Vice Chairman of the Board of Directors of Al Salam Bank Al Salam Bank , Hussein Mohammed Al Meeza said the foray into the Algerian market comes at a time when the African nation was making rapid strides to attract investments. Algeria, he said, was poised for a new era of development. "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 $10 billion, in addition to foreign investments amounting to $10 billion. By the end of 2008, investments are expected to reach $50 billion, while growth rate is predicted at 5.8 per cent. The Gross Domestic Product (GDP) for the year was estimated to be 6864 billion Algerian dinar, with an assumed oil price of $19 per barrel, he pointed out. "In the light of these changes, we have launched our Algerian operations. The bank will act as a global commercial bank adopting an Islamic banking system that is based on inferential benefits and mutual ambitions." The bank early this week said it posted a net profit of BD22.7 million ($60.1 million) for the nine month period ended 30 September, up by 30 per cent compared to the corresponding period in 2007. The bank's second year net profit during the year ended 31 December 2007 reached BD23.1 million ($61.6 million). Incorporated in 2006 in the Kingdom with a paid-up capital of BD120 million ($318 million), Al Salam Bank Al Salam Bank 's Initial Public Offering, comprising 35 per cent of the paid-up capital, raised over BD2.7 billion ($7 billion) and was the largest IPO in the Kingdom's history. The founding shareholders of the Bank hold 65 per cent of the paid-up capital. They include leading regional institutions such as Amlak Finance, Dubai Holding, Dubai Investment Group, Emaar Properties, and Global Investment House, together with other strategic shareholders from across the Middle East.

© Bahrain Tribune 2008 & omar 1.1:zy