Al-Zamin and Saudi Group to set up Islamic bank

Al-Zamin Leasing Modaraba is likely to set up an Islamic bank with a paid up capital of Rs 2 billion after getting approval from the State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP) in collaboration with Saudi Bashair Holding Co of Jeddah. One of the significant decisions taken during the Pak-Saudi Joint Ministerial Commission meeting on Wednesday was to establish an Islamic commercial bank in Pakistan, and a leasing company in Saudi Arabia in the private sector.
For this, an agreement was executed between Al-Zamin Leasing Modaraba (Al-Zamin) and Saudi Bashair Holding Co of Jeddah who would jointly set up the aforesaid entities.
When contacted, Basheer A Chowdry, Chief Executive of Al-Zamin, confirmed that Saudi Bashair Holding Co has committed to providing equity which along with capital to be provided by the respectable Pakistani investors, shall form the basis for seeking approval of State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan to convert Al-Zamin Leasing Modaraba into an Islamic commercial bank.
The proposed bank will have a minimum equity of Rs 2,000 million, of which a significant portion is being provided by Saudi investors. The bank, when licensed by SBP, will operate strictly in accordance with the principles of Shariah and develop products and services for enhancement of Islamic financial system in the country.
Chowdry said that Al-Zamin Leasing Modaraba has been operating successfully over the last 12 years according to Islamic principles as a Modaraba and is committed to benefit extensively from the research work and the professional expertise available in Saudi Arabia, Bahrain and Malaysia for adding further depth and dimensions to the range of Islamic banking in the country.
Saudi investors, Saudi Bashair Holding Co, is a well established and respectable business group, with Mohanna Al-Dossary as principal shareholder. It is engaged in large real estate developments, medical education and manufacturing of animal feed at a large scale. Its worth and capacity will also explore other possibilities of investing with and through Al-Zamin.
Simultaneously with the filing of application with SBP for Islamic commercial bank, the Group is submitting formal applications for setting up a leasing company in Saudi Arabia where Saudi investors will be the sponsoring majority shareholders and Al-Zamin Leasing Modaraba shall provide a part of the equity and provide complete management of the company. Initially, the leasing company will start work in Jeddah and expand later to major cities of Saudi Arabia. In due course of time, the possibilities of the business expansion in the surrounding Arab countries will also be explored.
The collaboration between Al-Zamin and Saudi Bashair Group is a practical implementation of the policies of Saudi Arabia and Pakistan to promote mutual relationships and investments. This will open up avenues in the financial sector in Pakistan to benefit from the Saudi investments besides expanding its business operations to Saudi Arabia and other Arab countries.