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Salam Bank opens in Sudan

DUBAI — Salam Bank was declared open in the Sudanese capital Khartoum yesterday, in the presence of President Omar Al Basheer.

Salam Bank's paid-in capital is $100 million. Share registration at the end of last year was a major success and preparations have been underway ever since. With statutory approval, experience and workforce in place, the bank will provide the full gamut of Islamic financial services.

Mohammed Ali Alabbar, chairman of the Board, Hussein Mohammed Al Meeza, board Member and colleagues, the governor of Khartoum, ministers, officials, and Sudanese business representatives were also present.

Alabbar said, “Our presence here stems from thorough research-we want to play a leading role in the Islamic financial services market in terms of products and solutions and leverage the expertise of specialists in an industry which has taken centre-stage at the regional level. This is an industry that is worth $250 billion globally.’’

He added: “New banks here have a tremendous opportunity for progress. Obstacles and dangers to investment have, to a very large extent, been eliminated by the engagement and support of one of the world's foremost institutions, the World Bank, in launching ventures on a new scale. A recent increase in oil production is playing a vital role in bringing new and varied projects to fruition, making possible the return of stability and launch of new development strategies in the years to come.’’

The political and economic situation in Sudan makes the country an important destination for private investment, and its various economic sectors stand on the threshold of important new developments.

Al Meeza said: “The Sudanese banking system is one of the few, if not the only one in the world, to operate in complete accordance with Islamic Shariah. All the indications are that this market is entering a new, ever-widening phase, involving all aspects of economic activity. We have every confidence that the development, still in the first stages of expansion, of the Sudanese banking sector, will prove a swift decisive success.’’

The bank's Islamic products include, Murabaha, Istisna'a, Ijara, Mudaraba, real estate and land purchases, sales, and leases, creation of Shariah-compliant joint ventures, and the establishment and funding of insurance vehicles and companies.