Al Baraka Banking Group plans to increase the number of its offices from 280 at present to 330 and the human capital by 800 employees by the end of the year.

The group will also launch an Islamic bank in France, said Adnan Ahmed Yousif, CEO of the group.

The group has submitted the necessary financial requirements and accounting standards to the French authorities, he said.

In an interview with CNBC Arabiya in Dubai, Yousif explained that the French financial authorities have demonstrated major interest in having Islamic banking products enter its market, in light of the five million Muslims currently residing in France.

Speaking on the group's performance, Yousif noted that the group has achieved a growth of 4 per cent in Q1 2009.

On the economic downturn's effects on the group's operations, Yousif said that there were initial concerns about investing in certain markets and that these concerns have now been eradicated, especially in markets like Turkey, Algeria, Egypt and Jordan, which have performed very well.

Al Baraka Banking Group has begun introducing new products in the Turkish market including finance leasing, forward sale and manufacturing contracts (Salam and Istisna) and rent-to-own schemes. Demand on Islamic financial products has also increased, especially in emerging markets and in some European markets.

Speaking on the planned $10 billion Mega Bank project,  Yousif said several financial entities and investors from the private sector have shown great interest in getting involved in bank.

He highlighted that the Mega Bank could be launched by the end of 2009 and will not be a competitor to other Islamic banks and it will not focus on retail banking or the local markets. Its main purpose will be to secure liquidity, issuance of bonds, and financing and managing projects, said Yousif. – TradeArabia News Service