Business | Investment

Channel Sponsor

Dubai Investments acquires 50m shares in First Energy Bank

Dubai Investments has acquired a strategic stake in Bahrain-based First Energy Bank - the first Sharia compliant bank in the region focused on investment and financial services in the energy sector.

  • Staff Report
  • Published: 15:14 October 12, 2008
  • Gulf News

Dubai: Dubai Investments (DI) has acquired a strategic stake in Bahrain-based First Energy Bank - the first Sharia compliant bank in the region focused on investment and financial services in the energy sector.

In a transaction valued at $65 million, DI acquired 50 million shares, or 5 per cent of the total holding of First Energy Bank, which is promoted by Gulf Finance House, Bahrain's premier Islamic investment bank. First Energy Bank commenced operations in June 2008.

"We see this acquisition as a significant step in expanding our investment horizons within the Arab region," said Khalid Kalban, MD and CEO of Dubai Investments.

"Dubai Investments is focused on diversifying its investments and widening its geographic reach, and occupying a position of primacy across the business and financial spectrum remains at the core of our strategic ambitions."

First Energy Bank focuses primarily on the oil and gas (upstream/downstream), transportation, petrochemicals, power and IWPP (Independent Water and Power Production) sectors within the energy spectrum.

Investment activities of the bank are planned to include energy development projects, co-investment in development projects, corporate acquisitions, asset/portfolio acquisitions, and mezzanine capital/preferred equity.

First Energy Bank is expected to generate a net profit of $107 million and a Return on Investment of 11 per cent in its first year of operation itself.

According to International Energy Agency estimates, $4.3 trillion of new investment will be required globally in the oil sector through 2030, while approximately $3.9 trillion is projected to be invested in the gas sector.

  • Rate this article
  • Average reader rating (0 votes) 0 Stars
Tools

Emailing an article to friend is a simple way to share a news item. Your friend will receive an email with your name and email address as well any personal message you choose to send.

The information you provide on this page will not be used to send unsolicited emails.

This service is not intended to encourage spam, and action may be taken against individuals who maliciously enter personal details of another individual.

Share this article

More from Investment

  1. Investment trusts resilient in providing higher yields

  2. Pessimistic investors 'put too much money into bonds'

  3. A steady hand at the tiller wins out

  4. GCC stocks no longer out for the count

All articles in Investment

More from Business

Gulf News
Popular in Business
Airlines in the region
Budget travel

Airlines in the region

Take a pictorial look at some of the budget airlines in GCC

Business Editor's choice