European Islamic Investment Bank (EIIB-Rasmala), one of the largest, independent financial institutions focused on GCC markets, said it has significantly increased its shareholding in its asset management subsidiary Rasmala Holdings from 56.8 to 76.3 per cent.

London-headquartered EIIB-Rasmala, which boasts of client assets worth over $1.1 billion, said its primary focus is to provide investment management and financing solutions to clients in the UK and GCC region.

The EIIB Rasmala move comes following the successful acquisition and integration of Rasmala, which was initially structured as a minority investment and was later increased to 57 per cent, the statement noted.

In consideration for the acquisition the Group has issued 152.3 million new shares at an exchange ratio of 3.6, it added.

On the startegic move, CEO Zak Hydari said:"We have now successfully combined the strengths and resources of the two separate businesses to position EIIB-Rasmala as a leading investment banking and asset management group focused on the London and GCC markets."

"This highly complementary combination has also catapulted us into the top 20 asset managers in the Middle East region. We believe the time is now right to further consolidate the ownership of our fast growing asset management business," he added.

EIIB-Rasmala has rapidly expanded its institutional asset management business over the last 12 months with funds under management having recently exceeded the $1 billion mark.

The group has also significantly broadened its asset management product offering during 2013 with the launch of a number of new funds including; the Rasmala Trade Finance Fund, the Rasmala Global Sukuk Fund, the Rasmala Leasing Fund and the Rasmala GCC Islamic Equity Income Fund.

EIIB-Rasmala was recently included in the “Middle East’s Top 20 Money Managers” by Institutional Investor magazine. The Group was also ranked fourth in the UAE in terms of total assets under management. It has 100 staff at its offices in London, Dubai, Muscat, Riyadh and Cairo.-TradeArabia News Service