We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Sun 12 Oct 2008 12:56 PM

Font Size

- Aa +

Dubai Investments takes $65mn stake in First Energy Bank

Firm says region to see more demand for investment services focused on energy.

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.

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.