Dubai Islamic Bank (DIB) has acquired a 60 per cent stake in Al Khartoum Bank, DIB said in a statement released yesterday.

DIB will now take the responsibility of all operations and development of Al Khartoum Bank, which is Sudan's first bank, established in 1913.

The Government of Sudan earlier owned 99 per cent of the bank's shares and private investors owned the remainder.

The agreement was signed in Khartoum by Dr Sabir Mohammad Hassan, representative of the Sudan Government and chairman of its Central Bank, and Aref Kooheji, DIB's executive vice-president of investment and corporate banking.

With a paid up capital of $45 million (Dh165.6 million), Al Khartoum Bank has a strong presence in Sudan. It has a network of 53 branches across the country of which 17 are in Khartoum.

"We look at the agreement as a significant investment in a dynamic sector in Sudan," said Kooheji.

"It not only represents our ownership and management of a new bank, but our commitment to invest DIB's human, financial, and technological resources for the rapid development of the bank.

"DIB has proven expertise in the banking sector that would be fully utilised to strengthen our presence in Sudan.

"The agreement between DIB, the world's first Islamic bank, and Al Khartoum Bank, Sudan's first bank, signals a new era in banking in Sudan.

"We will utilise the expertise of both banks and offer outstanding services tailored to different segments of the Sudanese community including individuals and companies. We will also deploy latest technologies in banking services and ensure that our processes comply with international standards," Kooheji added.

"Al Khartoum Bank has recorded high growth rates during the past few years. It was able to increase profits to $7 million (Dh25.76 million) in 2004, compared to $3.5 million (Dh12.9 million) in 2003. The results reflect its ability to grow, and we are confident that performance will further improve."

Dr Hassan said, "The agreement marks a major change for Al Khartoum Bank as well as the sector in Sudan."