Kuwait Finance House - Bahrain (KFH-Bahrain) is advising three local Islamic investment banks that are looking to merge, said its top official.

Speaking at the opening of KFH-Bahrain's ninth branch at Isa Town Mall on Sunday, managing director and CEO Abdulhakeem Alkhayyat said this merger would create a new entity with a capital of $400 million and assets of $500 million which would give them a scale which would make them more competitive in the market.

He declined to name the banks but said an announcement about the merger would likely be made in the near future.

'Industry is recovering because the government is investing and spending money in the housing market and giving additional support to small and medium sized companies while helping the economy by increasing government salaries,' he said.

'That is helping the banking sector and other industries to achieve growth,' he added.-TradeArabia News Service