Finance & Capital Market

Sharjah Islamic Bank raises foreign ownership to 40%

Sharjah Islamic Bank has announced that its board of directors agreed to raise the percentage of foreign ownership in the bank’s shares to 40 percent.

This comes in preparation for submitting it to the bank’s general assembly to discuss and take the appropriate decision, reported Emirates News Agency WAM.

Such an important step comes in response to strong demand from investors, which indicates the extent and depth of their confidence in the bank and its ambitions, including the bank’s expansion and growth strategy.

Mohamed Abdalla, CEO of Sharjah Islamic Bank, said: "The UAE dealt with the Corona pandemic with both precision and speed, which has contributed to achieving advanced levels of recovery from a pandemic that has swept the world."

The state's financial policy is characterized by vitality and effectiveness, as the UAE has adopted effective financial policies. These policies have been supported and reinforced by pioneering vaccination campaigns, in addition to reliance on various precautionary and preventive measures aimed at achieving the highest levels of safety and wellness for all.

Mohamed Abdalla added: "Investors from all over the world have shown strong confidence in the UAE’s financial markets and in particular the Sharjah Islamic Bank, which has witnessed a remarkable improvement in the performance of the share price since the beginning of this year. The increase in foreign ownership to 40% represents a new additional incentive to enhance the bank's performance, as it also continues to keep pace with the accelerated recovery witnessed in the current economic environment."

Mohamed Abdalla also pointed out that the results of the first half of this year showed the bank’s resilience in these challenging times. There has been a positive trend across all major metrics in terms of profitability, growth, capital and liquidity. The bank is also continuing the process of development and growth that qualifies it to become stronger and generate significant value for all stakeholders. This work is underpinned by the bank’s strategy to enhance a customer-centric corporate culture.

The CEO of Sharjah Islamic Bank noted that this step will contribute to enhancing the bank's international classification, as it recently ranked 92nd in the region in the annual Forbes magazine list of the 100 most powerful companies in the Middle East for the year 2021. This revered list includes the largest and most prominent companies in the region, and is based on specific criteria including market value, sales volume, net profits, and total assets.

In addition, Sharjah Islamic Bank announced an increase in its net profit by 29.6%, amounting to AED458 million ($124.6 million) for the nine months period ended September 30, 2021 and compares to AED353.4 million for the same period in the previous year. Operating profits also increased by 29.3%, amounting to AED652.9 million for the first nine months, compared to AED504.8 million for the same period last year.