The bank will be based in Bahrain and will target opportunities in the regional real estate, energy and petrochemicals sectors.

Chief executive officer Jamal ali al-Hazeem, former chief executive officer of the Economic Development Board of Bahrain, says: “We think we can establish a name for ourselves in these difficult times.”

He added that the modest $200m capital reflected the bank’s “conservative approach and the conservative strategy of our investors.”

Investors in the bank include Kuwait’s First Investment Company and Global Investment House, and Noor Capital of Abu Dhabi.