Iraq’s Cihan Bank to open UAE office and seeks tie-ups

Dubai: Cihan Bank, a leading private sector Islamic bank from Iraq, is planning to set up a representative office in the UAE and has plans to enter into tie-up with leading UAE banks, a senior executive told Gulf News on Wednesday.

“Currently, we have an office in Dubai. We are seeking to establish a representative office in the UAE in 2014,” said Nawzad Yahya Bajger, vice chairman of Cihan Bank.

The bank headquartered in Erbil has a paid-up capital of 250 billion Iraqi dinar (Dh800 million) and is owned by 100 private investors. Cihan officials see opportunities for tie-ups with UAE-based banks in channeling investments to Iraq.

“After prolonged period of war and unrest, Iraq is now open for business with huge opportunities in infrastructure, healthcare, oil & gas, power and education sectors to name a few. We have the local knowledge and expertise and are looking for banks and investors to join us in investing in new opportunities,” said Fayeq M. Al Obaidi, banking development consultant at Cihan Bank.

Investment fund launch

The bank is set to launch a $100 million investment fund focused on opportunities in Iraq. “We are looking at investing in some of the high-growth sectors across Iraq. The fund raised from investors will be deployed in consultation with the investors. Depending on the investor response, we are open to increase the fund size,” said Bajger.

The bank has 11 branches across major cities in Iraq such as Erbil, Baghdad, Suleymania, Zakho, Musol, Kerkuk, Basra, Najaf and Duhok. It has plans to open 10 more branches in the next two years.

“With the country attracting growing investments from the Middle East and Gulf, the regional banks need partners in Iraq. With our strong branch presence across the country, we are in a strong position to partner these banks,” said Al Obaidi.

With potential for high returns from businesses in Iraq, the bank expects strong investment flows from the UAE and GCC countries into Iraq during the next 5 to 10 years. Since its establishment in 2008 till the end of 2012, Cihan Bank succeeded in delivering a 20 per cent return on capital and 8 per cent return on total assets.