The world's biggest Islamic bank, with an initial capital of $10 billion, will be launched before the end of this year, said Adnan Yousef, CEO of Al Baraka Banking Group.

He said in an interview with CNBC Arabiya that Sheikh Saleh Kamel, chairman of Al Baraka Banking Group, is heading an alliance set up to launch the bank.

The bank will launch an initial public offering of $3 billion, he said.

Youssef, who is also the chairman of the Union of Arab Banks, said: "We have already completed the necessary research for launching the Islamic bank and there are currently discussions between Sheikh Saleh Kamel and investors to prepare for the public offering.

"Under the current economic climate, Sheikh Saleh Kamel did not withdraw or pull back but on the contrary, he is accelerating the finalisation process. The Islamic banking industry needs this investment at such times," he added.

The 'mega bank' was initially announced last year. The capital of $10 billion will be arranged through the initial public offering and private stock options. – TradeArabia News Service