Bahrain-based Al Baraka Banking Group (ABG) has acquired 60 per cent of the issued shares of Saudi's Al Tawfeek Financial Group through its subsidiary in the kingdom, Al Baraka Islamic Bank.

Al Tawfeek Financial Group Company is a closed joint stock company registered in Saudi Arabia and licensed by the Capital Market Authority.

The company engages in asset and portfolio management, custody, debt and equity arranging, as well as research and advisory services.

All products and services offered by the company are Sharia-compliant. The company's authorised capital is 360 million Saudi riyals ($96 million).

'The acquisition of Al Tawfeek is an excellent move that reflects our group's strategy to enter key regional markets, since Saudi is the largest Arab economy with strong fundamentals and a stable financial and investment environment, which presents us with significant business and investment opportunities,'ABG president and chief executive Adnan Ahmed Yousif said.

'The procedures for consummating the acquisition are currently being finalised,' Yousif stated.

'We view this step as a strategically vital acquisition for the group. Our founding shareholders have a strong base in the Saudi market so the acquisition of the Al Tawfeek Financial Group will strengthen that presence,' he noted.

'The Saudi market represents a key entry point for us to access the extensive base of investors and provide them with a wide range of Sharia-compliant products that have been developed by the company and the group for the past many years,' Yousif said.

'The ABG Group has the unique advantage of a large and geographically diverse network in many countries, whose experience and track record we will draw upon to strengthen our business presence in the Saudi market,' he added.

'The acquisition of Al Tawfeek Financial Group Company will be an excellent strategic move for us to further strengthen our presence in the region and will give us the diversity in product and client base,' Al Baraka Islamic Bank - Bahrain chief executive Mohamed Isa Al Mutaweh said.

'We expect to derive considerable synergy from our operations in Saudi Arabia which will enhance the overall revenue, asset and client base of Al Baraka Islamic Bank,' he added.-TradeArabia News Service