LOC13:07
10:07 GMT
By Talal Al-Kayed (with photos)
DAMASCUS, Aug 28 (KUNA) -- Syrian Finance Minister Mohammad Al-Hussein on
Tuesday praised notable Kuwaiti investments in and contributions to economic
and development sectors in Syria.
In a statement to KUNA, upon inauguration of Al-Sham Islamic Bank, the
first in Syria, Al-Hussein also noted other Kuwaiti contributions in the
banking sector, as well as other venues such as insurance, tourism, and
industry.
He also pointed that Kuwaiti investors were "pouring" into Syria to
negotiate establishment of mega projects, one of which was Al-Aqeelah Finance
Leasing and Investment Company that placed 51 percent of its shares for
subscription among Syrian and other nationals two days ago.
Al-Sham Bank, inaugurated in a ceremony here yesterday, aims to give
momentum to economic development in Syria, focusing on areas of low risk.
Board Chairman of Al-Sham Islamic Bank and Board Chairman of Kuwaiti
Islamic Investment Dar Adnan Al-Musallam told KUNA that Kuwaiti and GCC
investors bring in 49 percent of the bank's capital.
The Investment Dar holds 12.5 percent of bank shares, the Commercial Bank
of Kuwait holds a 10 percent stake, the Islamic Development Bank another nine
percent, Kuwait Securities Group five percent, Al-Shal Investment Co. 4.5
percent, and the Damascus-based United Kuwaiti Investment Co. holds the
remaining three percent stake.
Governor of the Central Bank of Syria Adib Mayala, in response to a KUNA
question over Islamic financial institutions in Syria, said these institutions
were "supplementary" and second line bodies to traditional banks in the
country.
He said there are plans to raise the capital of any Islamic bank that
intends to operate in Syria from USD 100 million to USD 200 million. He added
six major Sharia-compliant banks have applied to operate in the Syrian banking
sector.
As for the decision taken by the Syrian government to cancel the pegging of
the Syrian Lira to the US Dollar, and adopting the currency basket instead,
Mayala said that such a step would protect against too much fluctuation.
On money laundry and whether such activity was possible within Islamic
banks' transactions, Mayala said this was very unlikely. He said these banks
have very high-level screening systems, which would spot any suspicious
operations.(end)
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