Al Salam Bank divests Seef Properties stake to GFH amid strategic shift

Bahrain: Al Salam Bank, Bahrain’s largest Islamic financial institution, has sold its 15.6% stake in Seef Properties to regional investment group GFH, as part of a broader plan to sharpen its focus on core banking and financial services.

The transaction was facilitated by ASB Capital, the bank’s newly launched asset management arm, which acted as the sell-side advisor. The move comes as Al Salam Bank accelerates its portfolio optimisation strategy, aiming to concentrate on sectors aligned with its long-term strategic vision — specifically banking, takaful (Islamic insurance), and asset management.

“This transaction represents our continued commitment to exit non-strategic holdings,” said Rafik Nayed, Group CEO of Al Salam Bank and Managing Director of ASB Capital. “We are reallocating capital toward sectors that offer stronger synergies and more sustainable value creation.”

The deal signals the bank’s intent to streamline its investment portfolio and shift resources toward areas where it sees greater operational leverage and long-term return potential. It also highlights the growing role of ASB Capital, which launched earlier this year with assets under management (AUM) of $4.5 billion and a mandate to deliver investment banking services across the region.

ASB Capital played a key role in structuring and executing the exit, despite ongoing global market volatility. Nayed noted that the transaction showcases the firm’s advisory and capital market capabilities, as well as its readiness to support rising regional deal flow.

The acquisition adds to GFH’s expanding investment footprint in Bahrain, while enabling Al Salam Bank to continue building a leaner, more focused financial services group.

With a strong deal pipeline, ASB Capital is positioning itself as a go-to player for private equity, syndications, and capital market solutions in the Gulf, signaling broader ambitions in the region’s fast-evolving investment landscape.