GFH establishing Syrian bank

Monday, 08 March 2010

Gulf Finance House (GFH) said that it is in an advanced stage of establishing one of the largest Islamic banks in Syria under the name of Syria Finance House (SFH).

GFH, along with a number of local Syrian business partners who are involved in the industrial, financial and commodity sectors, is working to position the bank as one of the largest Islamic banks in Syria with a capital of US$333 million.

Once the final stage of approval has been secured from the Central Bank of Syria, the bank will conduct an IPO for 30 per cent of its capital, while 10 per cent will be funded from the local partners and the remaining 60 per cent will be funded from GFH, strategic financial institutions and its investors.

“We are aiming to establish a comprehensive Islamic bank that provides a suite of commercial and investment activities catering to the growing demands in the Syrian market, and we are delighted to receive the support of all Syrian authorities,” said Esam Janahi, chairman of GFH.

Ted Pretty, GFH group CEO, pointed out that Islamic commercial and investment banking in Syria promises great potential for growth with a significant demand for Islamic financial services and low penetration.

“The Syrian market enjoys excess liquidity with deposits amounting to 41 per cent of GDP last year, which could be utilised in developing the country in line with the Syrian government’s ambitions for socio–economic growth and prosperity,” he said.

GFH has been working closely with its Syrian partners for over a year, laying down the framework, strategy and business model for SFH. The company has also been in discussions with the Syria Investment Authority on initiating a number of industrial and infrastructure projects in Syria to be undertaken by SFH, said company officials.