The Saudi Investment Bank (“SAIB”) and Dallah Albaraka Holding Company (“Dallah”) announced today that they have signed a memorandum of understanding according to which, SAIB will buy 50% of Bahrain-based Albaraka Banking Group (“ABG”) from Dallah. In return, Dallah will take shares in SAIB for a price that the two parties will agree upon after the conclusion of a full financial and legal due diligence and obtaining the necessary approval from the regulatory authorities in Saudi Arabia and Bahrain as well as the approval of the extraordinary general assembly of SAIB.
SAIB and Dallah have been engaged in exclusive talks during the past six months to finalize the transaction. During the same period, SAIB conducted a review of ABG’s subsidiaries in Bahrain, Jordan, Lebanon, Turkey, Egypt, Tunisia, Algeria, South Africa, Pakistan and Sudan. These countries are among the key trading partners of the Kingdom and the leading importers of Saudi exports in the Arab and Islamic Worlds.
This transaction is an important step towards leveraging the two parties’ vast and long experience and provides a competitive advantage to SAIB since it will achieve diversified sources of income and banking services to cater for the rapidly growing needs in the banking sector.
