Qatar's Estithmar Holding has announced that it has completed the transfer of a 48.68% stake in Syria's Shahba Bank to Masaref Holding, a wholly owned subsidiary of its financial services and investment arm Estithmar Capital.

The stake was transferred from Banque Bemo Saudi Fransi and Ahli Trust Bank after the required conditions were met and regulatory approvals obtained, Estithmar said.

The transaction marks Estithmar's expansion into Syria's banking sector as the company seeks to develop Shahba Bank's financial, operational and technological capabilities, it said.

Under the deal, Masaref Holding, as a 48.68% shareholder, will work with Shahba Bank's board and other shareholders on proposals to develop the lender, subject to the required corporate and regulatory approvals.

The proposals under consideration include a possible increase in Shahba Bank's capital to strengthen its financial position and lending capacity, as well as an expansion of its banking services for individuals, companies and small and medium-sized enterprises.

On the deal, Moutaz Al Khayyat, Chairman of Estithmar Holding, said: “This investment reflects our confidence in Syria’s economic potential and Estithmar Holding’s approach to pursuing strategic opportunities that contribute to sustainable growth. We have a long-term vision for Shahba Bank and aspire to strengthen its capabilities and support its continued development, enabling the Bank to deliver modern and effective banking services that meet the evolving needs of individuals and businesses, while supporting the Syrian economy.”

The Central Bank of Syria welcomed the investment, saying new institutional capital could strengthen the banking sector's capacity and support the transfer of expertise and technology, provided initiatives comply with legal, regulatory and governance requirements.

Estithmar pointed out that Masaref is also considering proposals to expand the bank's branch network in several Syrian governorates, including areas with limited access to banking services such as Deir ez-Zor, Al-Hasakah and Qamishli.

Other areas under consideration include expanding trade finance, payments and remittance services, as well as products for small and medium-sized businesses, it added.

CEO Basel Shaddad said: "The Shahba Bank stake transfer is a decisive step that strengthens Estithmar Holding’s leadership in the region’s financial sector. With our market capitalization now above USD 5 billion, we are advancing our long‑term investment strategy with strong confidence in Syria’s economic resurgence and in building institutions that support sustainable growth."

"Through Masaref Holding, we will contribute as a strategic shareholder, working alongside Shahba Bank’s Board of Directors and fellow shareholders to support the preparation and assessment of proposals focused on the Bank’s development and the strengthening of its financial, operational and technological capabilities, within its established corporate governance framework," he added.-TradeArabia News Service