Business/Economic News

[Bahraini Spirit]

Hi, well this is FDI for you, and this time it's in the form of a nuts factory, enjoy:


BD1m factory to be set up
By SOMAN BABY


AN American businesswoman and an Indian business tycoon are to join hands with a Bahraini group to set up a nut-processing factory in Bahrain.

Dr Peni Kangas, who hails from a Bulgarian royal family and is currently involved in oil drilling, software and trading businesses in Miami, US, and Beta Group chairman Rajmohan Pillai, also known as the "Cashew King" of Kerala, have finalised a joint venture agreement with a leading Bahraini business group.

Dr Kangas, wife of famous American TV presenter Paul Kangas, represents the Beta brands of processed nuts and dry fruits in the US.

"We are proud to enter into a business venture in Bahrain, which is the financial centre of the Middle East," she told the GDN.

"I have made several visits to Bahrain with my parents since my childhood.

"I have seen dramatic changes in Bahrain over the years. Though I have been visiting all Gulf countries, Bahrain has a special place in my heart.

"Bahrain, which is a peaceful place, is a lighthouse of culture and knowledge.

"Bahraini people, known for their friendliness, command respect abroad."

Dr Kangas, who is a specialist in alternative medicine including Ayurveda and acupuncture, is also an expert in Indian scriptures and mythology.

An active social worker, she was presented with the title of "Ambassador Against Aids" by the Ivory Coast government.

"While establishing business ventures around the world, I consider it my duty to contribute to the welfare of my fellow human beings," said Dr Kangas.

"I hope the new business venture to be set up in Bahrain will enable me to contribute towards the country's social life as well."

Mr Pillai said his business group, which has its headquarters in Kollam, Kerala, would provide the technical know-how for the joint venture project in Bahrain.

"We will announce the names of our Bahraini partners shortly," he said.

"The project, estimated to cost BD1 million, will be based in one of the industrial areas and is expected to start production in a year.

"The company will manufacture, market and distribute a range of premium quality nuts under the Nut King brand name."

Mr Pillai said the company would also develop a new range of products using dates and almonds.

Mr Pillai took over the reins of the Beta Group from his brother Rajan Pillai, who died in 1995 when he was also the chairman of the Britannia Group of Companies.

The multinational group's interests cover a wide range of businesses from edible nuts and food products to airlines, shipping and consultancy.

The group is now one of the largest food processing companies in South East Asia with an annual turnover of more than $645 million (BD243.81m).

[Pearl of the Gulf]

Yeah I think this is a result of the FTA. Try to tell our MPs that even with lifting the ban on Israel, projects like this will offer more jobs to Bahrainis. Do you know if they’ll export the nuts to the US?

[Bahraini Spirit]

Am not sure, maybe if they don't already have it there. All I really know man that ones this FTA is ratified by the U.S., those MPs will shut up and sit down not bein able to obstruct, Thank God.

[B-Patriot]

So how much longer will it take the US congress to ratify it...!?

[Bahraini Spirit]

Hopefully by the end of the yaer, it's kinda a lengthy process, but once it kicks into action, you'll see the difference. They're actually lookin at it and there is strong support for it especially from the big businesses. Some labour ppl argue that we need to change more labour laws but everythin that had to be changed was done already, so it's a matter of weeks really or a couple of months hopefully.

[Moody]

Just look at the turnover! never thought nuts were good business!

[Pearl of the Gulf]

There are quite a businesses and companies sprouting up all over Bahrain recently; shall we put them all under one thread and call it New Business.

[Pearl of the Gulf]

A leading entrepreneur who has built his business empire in Dubai has chosen Bahrain as the headquarters for his latest venture - an international bank. Non-resident Indian (NRI) businessman Aniyan Kutty whose interests include Clarion Shipping Services in the UAE, is planning to set up an investment bank in Bahrain to target global opportunities, reflecting the Kingdom’s position as the financial capital of the Middle East. He said: “The plans for the bank, with a capital of $40 million, are on track and will be launched in the next few weeks. For this, we would have half a dozen partners and the bank will take up developmental projects worldwide. “We are currently looking for business partnerships with other financial institutions in the Gulf region.” Kutty’s group has interests in IT, construction and advertising, among others and recently announced ambitious plans to start a domestic airline in India. Called City Air, the budget airline, with its headquarters in Madras, will have 18 flights on Airbus A320 and Boeing 737 aircraft and is expected to begin operations in January. Kutty has wide business interests in Kerala. He has invested heavily in the Dimensions Software, which has its headquarters at the Technopark campus in Trivandrum. This company has developed state-of-the-art education software that has become popular in campuses across India and in verseas markets.

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[Bahraini Spirit]

Originally Posted by Pearl of the Gulf

There are quite a businesses and companies sprouting up all over Bahrain recently; shall we put them all under one thread and call it New Business.

Done, good idea .

[Pearl of the Gulf]

this happened last month September 25

The new licences were approved this month by HH Shaikh Khalifa Bin Salman Al Khalifa, Prime Minister of the Kingdom of Bahrain and Chairman of the BMA Board.

An investment banking licence has been issued to Saudi Arabia-based Arab Petroleum Investments Corporation (APICORP). The new entity, which will be an arm of APICORP will participate in taking equity positions and providing debt financing to the petroleum industry. The prime objective of the bank will be to support the financing of the oil, gas and petrochemical industries in Arab countries on a commercial basis.

APICORP, which is owned by the governments of 10 members of the Organisation of Arab Petroleum Exporting Countries (OAPEC), including Bahrain, has a paid up capital of US$550 million, while total assets stood at US$2.1 billion at 2004-end.

The BMA has also granted a full commercial bank (FCB) licence to Mashreqbank.

Dubai-based Mashreqbank is a public shareholding company listed on the Dubai Financial Market. It is one of the largest banks in the UAE with 34 branches, in addition to an offshore banking unit in Bahrain. Total assets stood at US$8.7 billion at 2004-end.

The Bahrain FCB would target mainly corporate customers, including Bahrain-based corporates with a strong presence in the UAE and Qatar, mid-sized local businesses and local and international contractors engaged in infrastructure projects.

The BMA has also approved a full commercial bank (FCB) licence for the State Bank of India (SBI), in addition to the bank's existing offshore banking unit, which was established in Bahrain in 1978.

SBI is India's largest bank with assets of about US$126 billion. The bank has over 9,000 branches in India, in addition to operations in 30 other countries.

A licence has also been granted to Liechtenstein-based LGT Bank to establish a Representative Office in Bahrain.

LGT Bank is the largest private bank in Liechtenstein. It is a member of Liechtenstein Global Trust, whose majority shareholder is the Liechtenstein Royal House.

The Bahrain office of the bank will be its first in the Middle East. Outside Europe, the bank currently has a presence in Asia and Latin America.

The BMA has also granted an offshore banking unit (OBU) branch licence to Bank Al-Habib Limited (BAHL) of Pakistan.

The Bahrain branch of BAHL will undertake trade and corporate finance, treasury and investments activity and inter-bank transactions.

The Middle East region continues to offer tremendous growth prospects for financial services providers, particularly in the areas of asset management, private banking, life and medical insurance, securitisation, Islamic banking and insurance, third part administration (TPA) services, leasing and investment services, said Mr. Ahmed Abdul Aziz Al Bassam, Director, Licensing & Policy, at the BMA.

'The BMA remains committed to supporting the financial services community to enable it to capitalize on the tremendous opportunities opening up in the wider Middle East region,' he said.

The BMA continues to work on a number of market development issues, including a new licensing framework, which will provide additional flexibility to financial institutions wishing to do business in and from Bahrain. The new licensing framework is expected to come into effect by the end of 2005.

'We welcome the continued interest from financial institutions and groups in doing business from Bahrain,' said Mr. Al Bassam. 'It is a demonstration of the excellent reputation the Kingdom enjoys as an international financial center.'

The BMA is processing a number of other applications from leading international and regional financial institutions.

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[Bahraini Spirit]

^ Thanks, I posted that in some thread which had 2 replies, not really useful haha. According to this, we should have now 372 financial institutions registered, and am sure there will be more than that by the year-end.

[Pearl of the Gulf]

An industrial venture has been signed recently between Khaleej Finance and Investment (KFI), represented by Mr. Nabil Hadi, C.E.O, and the Bahrain Motor company (BMC), represented by Mr. Ahmed and Mohammed Ali Karimi. The two companies have now signed a formal agreement to set up a cement manufacturing company, which will produce clinker directly from basic raw materials such as limestone, iron ore, bauxite and other additives.

The construction of phase one is expected to start in the first quarter of 2006, with an overall cost of US $45 million. The project is considered to be the first of its kind in the Kingdom and coincides with the increasing demand on construction material, specifically cement. This demand reflects the rising developments in the real estate sector.

Qays H. Zu’bi, Attorneys and Legal Advisors have been appointed by KFI as the Legal Advisors-Bahrain Law for the Project to review the relevant corporate legal requirements and the formation of the FALCON CEMENT CO.B.S.C as the company under formation whose shareholders are the two partners as well as potential shareholders in the region.

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[Pearl of the Gulf]

MANAMA — The launch of Al Salam Bank Bahrain with a capital of BD100 million was announced by its founders here yesterday. The new bank has plans to float its shares in the near future, with listings on a number of regional stock exchanges.


The founders of the bank including Mohammed Ali Al Abbar, chairman of Al Salam Bank, Hussein Mohammed Al Meeza, vice-chairman, met Prime Minister of the Kingdom of Bahrain Shaikh Khalifa bin Salman Al Khalifa and Shaikh Salman bin Hamad Al Khalifa, Crown Prince of the Kingdom of Bahrain.

"The increasing importance of the Kingdom of Bahrain as a financial and banking hub in the region for different banks and global financial establishments is one of the main reasons that has pushed us to invest and establish Al Salam Bank in Bahrain. Also the economic facilitations which have made the kingdom an important centre of attraction for Arab and foreign investments," said Al Abbar.

Al Salam Bank in Bahrain will be established in cooperation between Amlak, Emmar, Dubai Investment Group (The Executive Office), Al Salam Bank in Sudan, the Lebanese Canadian Bank and a group of GCC businessmen and investors. "Al Salam Bank will do its best to achieve strategic partnerships with businesses and companies, and to be one of the major participants in the ongoing growth and development. The bank will be equipped with all necessary requirements for this crucial start along with the intensive study undertaken and maximum effort put to provide the best in Islamic banking services," said Hussein Mohammed Al Meeza, vice-president of the committee of founders. The establishment of Al Salam Bank in Bahrain follows the huge success that Al Salam Bank in Sudan since its launch on the 25th May 2005. The bank aims at playing a lead role in the Islamic banking market in Bahrain through its unique banking products and solutions.

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[Pearl of the Gulf]

Businessmen and academics have established a company specialized in electronic commercial projects.

Daily Al-Ayyam newspaper said that the electronic commercial projects company was established by a joint Bahraini, Saudi Arabian, and Kuwaiti capital. The company's board of directors groups businessmen and information technology and communications specialists.

This company is the first of its kind in the region that provides electronic services in several fields including; education, e-learning, e-commerce, advertising, and marketing.

The company is based in Bahrain and has branches in all Arabian Gulf countries, Iran and several other states.

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[Pearl of the Gulf]

BaHrain’s role as the financial centre of the Middle East was emphasised yesterday when the global Indian mutual fund manager, UTI International, inaugurated its regional representative office in the Kingdom last night.
UTI, a wholly owned subsidiary of Asset Management Co Pvt, the sub-continent’s leading fund manager with assets under management in excess of $6 billion, is positioning itsellf to offer retail and institutional portfolio and pension fund management to the international community both in Bahrain and across the region.

UTI International Chairman J.S. Mathur, said: “Bahrain is an emerging market in the Gulf region and the cooperation we have received from the Bahrain Monetary Agency for our project is an indication of the pro-active policies of the leadership of the Kingdom.

“We are confident that our presence will enable us to tap the resources and savings element of the Bahraini and regional economy.”
The Bahrain operation will focus on high net worth individuals and is planning a network of distributor tie-ups with banks and financial institutions to market its wide variety of rupee and offshore funds.

At present the company offers Bahrain investors – non-resident Indians as well as other nationalities – a basket of 57 domestic funds that tap India’s growth potential, and three offshore equity-oriented funds. It plans to announce a tie-up with an Islamic financial institution and offer a Shari’a compliant and certified India Pharma Fund for Islamic investors.
“We see our future as very bright and Bahrain has an important role in the development of our business in the region,” J.S. Mathur said.

Bahrain Tribune Date 2/10/2005

[Pearl of the Gulf]

well not really a new business, but still important.

The highly anticipated BD 30 million Nass Corporation B.S.C. Initial Public Offering (IPO) has been tickling the interest of investors around the GCC for the past eight days, and with only two weeks to go, the demand is still strong, say officials.

'Due to the high level of demand, we have decided to open an evening shift at the Manama Main Branch of HSBC. The Branch will now be accepting Subscription Application Forms from 8pm until 11pm Saturday through Thursday until Subscription End date which is October 30, 2005,' said Hisham Al-Saie, Head of Corporate Finance and Securities & Investment Company BSC (c) ('SICO').

The main attraction for investors is a rare combination of firsts for a Bahrain-based IPO; It's the first family owned construction sector conglomerate in Bahrain to go public; at 50 million shares, it's the largest IPO in Bahrain for eight years and it's the first open to investors of all nationalities, thanks to Bahrain's forward looking regulations.

With the current boom in the construction sector looking set to stay, this IPO represents a solid addition to the portfolios of those who subscribe.

Nass Corporation B.S.C. is allocating 25% of its shares, a total of 50 million ordinary shares, through the IPO process, which closes on October 30. The Nass founding shareholders will retain a majority stake in the corporation, which already completed a private placement of 24% of shares with a group of 15 GCC strategic investors in June this year.

SICO is the lead manager and co-financial advisor on the transaction. KPMG Corporate Finance is also co-financial advisor on the transaction. Trowers & Hamlins is the legal advisors and Baker Wilkins & Smith, the technical evaluator.

The subscription period closes at 12pm on October 30, 2005. Details of allocations will be published in Bahraini newspapers within 2 weeks of the subscription closing, at which time trading is scheduled to begin.

Applications are invited from investors of all nationalities, who can collect a copy of the IPO prospectus and subscription forms in Bahrain from the Manama, Adliya and Muharraq branches of HSBC and the office of the Registrar, KPMG-Shares Registrar Department, Al-Hedaya Building, Government Avenue. The same can be obtained from selected branches of Emirates Financial Services (EFS) in Dubai and Abu Dhabi.

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[Pearl of the Gulf]

ECO-BAHRAIN-ISLAMIC-BANK
Gulf investors establish new Islamic investment bank in Bahrain

MANAMA, Oct 9 (KUNA) -- A number of Gulf investors announced on Sunday the establishment of a new Islamic investment bank with a paid capital of USD 66 million.

The bank, named Venture Capital Bank (VCB), will focus its core business on financing promising economic projects in the Middle East and North Africa, a statement by the bank issued today said.

VCB's board of directors named Ghassan al-Sulaiman, who is president of the Chamber of Commerce and Industry in Jeddah, Saudi Arabia as chairman of the board and Abdulfattah Rafie of the Kuwaiti Real Estate Commercial Company as vice-chairman and Abudllatif Janahi as chief executive officer (CEO), said the statement.

Among the new bank's functions will be giving out consultation on real estate investment deals, and offering ideas on ownership of viable commercial companies.

The bank will be based here in Bahrain and has 44 principal investors, more than half of them from Saudi Arabia. There are also 15 Kuwaiti investors, 11 Bahraini ones, and four each from Qatar and Oman, and two investors from the UAE. (end) na.

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[Pearl of the Gulf]

wow thats a lot of banks for just one month.

[Pearl of the Gulf]

Chairman of the founding committee of Banader Hotel Company, Abdullah Hasan Buhindi, has announced the launch of the company, with a capital of BD15 million, and the offering of its shares for public subscription, with each share valued at 100 fils. The hotel is scheduled to be fully operational by the end of 2007, writes Mehmood Rafique.

"Sixty per cent of the shares have already been allotted to investors who established the company, while the remaining forty per cent will be offered for public subscription under the supervision of Banader's issue manager, KPMG. The Bank of Bahrain and Kuwait has been appointed as the public subscription agent and the subscription will start on October 2 and will close on October 17. The subscription is open for investors of all nationalities.

Following the closing of public subscription, shares will be listed on the Bahrain Stock Exchange," Buhindi told a Press conference.

The company is working to build a four-star hotel and furnished apartments that will be managed by a well-reputed and specialised hotel management company. The envisaged project will comprise a 20-storey tower overlooking the coast and consisting of 150 deluxe rooms, and 30 special suites, in addition to 70 apartments.

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[Pearl of the Gulf]

I stopped looking back as of September 25, 2005. Anything before that date we’ll call it old news.

I have read about all these companies and banks being launched before, but seeing them all under one thread it very impressive. I heard that the amount of office space will double in Bahrain by 2007, seeing all these new companies it doesn’t look like they’ll have any trouble finding tenants.