AUB, Iranians launch Future

09 July 2004
The Bahrain Monetary Agency (BMA - central bank) has issued a full commercial and investment banking licence to a new joint venture bank being created by Bank Melli Iran (BMI), Bank Saderat Iran (BSI)and locally-based Ahli United Bank (AUB). Called Future Bank, the institution will be capitalised at $99 million, with each of the three banks taking an equal stake.

Both BSI and BMI have onshore licences in Bahrain and their operations will be merged into Future Bank. The two Iranian banks also plan to rebrand all their other regional operations outside Iran, chiefly in Oman and Qatar.

Crucially, BSI and BMI have pledged to work towards securing a banking licence for Future Bank within the Islamic republic and for AUB, the venture is essentially a vehicle for entry to the gradually opening Iranian market. The Kuwaiti-owned bank has been aggressively spreading its wings recently, acquiring a 40 per cent stake and a 10-year management contract in Al-Ahli Bank of Qatar- subject to emiri approval - and is in negotiations for a 20 per cent stake in Sharjah-based United Arab Bank(MEED 30:4:04).

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