Dubai Investments takes $65mn stake in First Energy Bank

ENERGY SECTOR: Dubai Investments has paid $65 million for stake in First Energy Bank. (Getty Images)

Dubai Investments has paid $65 million for a five percent stake in Bahrain-based First Energy Bank, the firm said on Sunday.

The listed investment company said in a statement it had acquired 50 million shares in the bank which commenced operations in June 2008.

First Energy Bank is a Sharia-compliant bank, focused on investment and financial services in the energy sector.

Khalid Kalban, CEO of Dubai Investments, said the acquisition was a “significant step” in expanding the firm’s investment horizons within the region.

“The energy sector is projected to grow dramatically over the next few years, driven by rapid economic development and population growth, and as the energy hub of the world, the Middle East is poised to see a significant rise in demand for investment services focused on the energy sector,” Kalban said.

First Energy Bank’s investment activities are expected to eventually include development projects, corporate acquisitions, and portfolio acquisitions.

The bank is expected to generate a net profit of $107 million and an investment return of 11% in its first year of operation, the statement said.

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