The German arm of Arab Banking Corporation (ABC) is finalising a study into re-establishing the investment department of the bank, which has been dormant for the past three to four years.
Arab Banking Corporation-Daus & Company has recently been concentrating its business on short-term export financing to the Gulf, but now plans to take advantage of revived Middle East interest in the German economy.
‘We feel that this will be a natural part of our business in co-operation with Arab countries,’ says Jens-Ove Stier, general manager of ABC-Daus. ‘The deutschmark has again become more attractive for these countries, and more Arab investors are coming to the market.’
The study is expected to be completed in February, and the findings will then go before the board of governors for approval. Stier says the new department could be operating by the end of 1995.
The bank is looking to offer a variety of investment services to Arab investors, concentrating on placing capital in German equities. Other services on offer will include assistance in property investment.
Stier says the bank is continuing discussions with prospective candidates to replace former general manager Salem Mohamed Mana, who resigned in late 1994. An announcement is expected in early 1995 (MEED 9:12:94).
ABC-Daus has authorised capital of DM 120 million ($77 million), and at the end of 1993 reported assets of DM 978.4 million ($631 million).