Damac says the acquisition strengthens its position in the financial services market and will support its other activities.
Damac Group, the Dubai-based investment company, has taken a 40% stake in Bahrain-based Al Ahlia Insurance Company.
The transaction was worth BD 3.6 million (US $9.43 million), a net gain of US $5.1 million for Arab Insurance Group, which sold the stake.
“This is another milestone in the expansion of Damac Group and falls in line with our vision to further develop our investments and financial services portfolio,” said Hussain Sajwani, chairman of Damac Group.
“The acquisition of the majority controlling shares in Al Ahlia Insurance will help us better diversify and offer additional financial services that support the various activities of Damac Group. We have plans to expand the activities of Al Ahlia Insurance throughout the region,” Sajwani added.
Al Ahlia is publicly traded on the Bahrain Stock Exchange. The company reported a net profit of BD 853,039 ($2.24 million) in 2003, an increase of 53% over the previous year.
Damac is a diversified company with interests in food, education, manufacturing, investments, financial services and real estate.