Iraqi bank Cihan wants to open offices in UAE
Iraqi bank Cihan wants to open offices in UAE
14 Dec 2013
A leading private sector Islamic bank from Iraq, Cihan Bank, is planning for setting up a representative office in the UAE. The bank also has a plan for entering in tie-up with the leading UAE based banks, as mentioned by the senior executive of the bank.
Vice Chairperson of the Cihan Bank, Nawzad Yahya Bajger stated, “Currently, we have an office in Dubai. We are seeking to establish a representative office in the UAE in 2014.”
The bank headquartered in Erbil has a paid-up capital of 250 billion Iraqi dinar (Dh800 million) and is owned by 100 private investors. Cihan officials see opportunities for tie-ups with UAE-based banks in channeling investments to Iraq.
Banking development consultant of Cihan Bank, Fayeq M. Al Obaidi said, “After prolonged period of war and unrest, Iraq is now open for business with huge opportunities in infrastructure, healthcare, oil & gas, power and education sectors to name a few. We have the local knowledge and expertise and are looking for banks and investors to join us in investing in new opportunities.”
Launching Investment Funds
Mr. Bajger said, The bank is set to launch a $100 million investment fund focused on opportunities in Iraq. “We are looking at investing in some of the high-growth sectors across Iraq. The fund raised from investors will be deployed in consultation with the investors. Depending on the investor response, we are open to increase the fund size.”
The bank possesses 11 branches across the major cities of Iraq, such as Erbil, Baghdad, Suleymania, Zakho, Musol, Kerkuk, Basra, Najaf and Duhok. It is also planning to open 10 new branches in coming two years.
Al Obaidi stated, “With the country attracting growing investments from the Middle East and Gulf, the regional banks need partners in Iraq. With our strong branch presence across the country, we are in a strong position to partner these banks.”
With potential for high returns from businesses in Iraq, the bank expects strong investment flows from the UAE and GCC countries into Iraq during the next 5 to 10 years. Since its establishment in 2008 till the end of 2012, Cihan Bank succeeded in delivering a 20 per cent return on capital and 8 per cent return on total assets.
iraqdirectory.com
