EIIB-Rasmala reveals expansion strategy, strengthens asset management focus GLOBAL: EIIB-Rasmala, a venture between London-based European Islamic Investment Bank (EIIB) and Dubai’s Rasmala Group, has revealed new business and strategic plans for 2015 which are designed to allow EIIB-Rasmala assume a stronger position in the area of asset management. The announcement of its new business initiatives follows the recent announcement by its controlling stakeholder, EIIB, that the bank is seeking to relinquish its UK banking license, as it embarks on exiting legacy private equity investments to focus on generating more income from its asset management and advisory services. We have successfully completed the transformation of EIIB-Rasmala and consolidated our position as one of the most innovative regional asset managers,” said Zak Hydari, CEO of EIIB-Rasmala. “In 2014 we saw a higher level of investor demand for broader, more alternative investment products, as well as greater overseas investor interest in our key markets. Given this demand, we are now accelerating the expansion of core strategies and product offerings and we are actively investing in order to stay at the forefront of the regional industry.” Among products in the pipeline for the company include the launch of two new leasing funds next year, adding on to the Rasmala Leasing Fund and Rasmala Trade Finance Fund, which were introduced this year. The new funds are likely be anchored in Luxembourg, given that Harris Irfan, the managing director of EIIB-Rasmala, confirmed to IFN earlier in July that the firm plans to migrate all its funds to Luxembourg (See Cover Story Vol. 11 Issue 26). A company spokesman has also reportedly stated that the funds will not be domiciled in the Dubai International Finance Center. Leveraging its presence in the Middle East, the company is keen to grow its real estate business in the UAE and to expand its business in Saudi Arabia. “EIIB-Rasmala is well-positioned, both financially and strategically, to take full advantage of the expected growth of these two large regional markets and is currently considering a number of opportunities to bolster both its presence and distribution reach through new, strategic joint ventures,” said the company. Apart from the Middle East, the firm is also focussing on North Africa; unsurprising considering the buoyant market dynamics of the MENA region, which has seen an uptick in international interest. For North Africa, the firm’s strategy includes increasing its 51% shareholding in Rasmala Egypt Asset Management, to better capitalize on the Egyptian asset management industry which the company believes is primed for further growth as economic and political stability return to the kingdom. For Europe, the group plans to raise approximately US$250 million to invest in a broad mix of real estate deals in the UK, in addition to raising some US$1 billion to fund the expansion of its leasing and alternative business.
Posted on: Tue, 04 Nov 2014 09:15:39 +0000