Esam Yousif Janahi is the Chairman and Founder of the Gulf Finance House (GFH) based in Bahrain.
GFH has been instrumental in developing some of the most innovative financial institutions in the Middle East and North Africa. The First Energy Bank, QInvest, Asian Finance Bank, Innovest, Khaleeji Commercial Bank and Arab Finance House were all established with the support and investments of GFH.
The group has also been intricately involved in formulating a strategy for a wide range of significant infrastructure projects across the region that are designed to support the economic growth of local economies. It is also playing a central role in conception of the high value asset-backed Middle Eastern investment opportunities that incubate the economic and socio-economic success stories of the future.
Esam Yousif Janahi visited Pakistan on a day trip and held meetings with Prime Minister Raja Pervez Ashraf, Finance Minister Saleem Mandviwalla, and Governor State Bank of Pakistan Yaseen Anwar. During these interactions, many of the potential investment opportunities in the country were discussed. PM Ashraf urged GFH to invest in the country's energy sector in his meeting with Janahi.
In an exclusive interview to Business Recorder team comprising Resident Editor Anjum Ibrahim, senior reporters Wasim Iqbal, Zaheer Abbasi and Ali Hussain, Janahi said that his company is exploring the possibility of investing in Pakistan's renewable energy sector. He further stated that Public Private Partnership provides a lucrative and attractive opportunity to foreign investors.
BR: What would motivate you to invest in Pakistan?
Esam Yousif Janahi (EYJ): We provide infrastructure to meet demand. And there is no question that there is demand for energy in Pakistan so that is an area which we are looking at right now. More specifically we plan to invest in renewable energy. We are in discussions with various relevant entities and have something in the pipeline.
BR: Can you be more specific? Are you looking at solar or wind energy? And where?
EYJ: Six months ago we did look into opportunities to invest in wind energy and are working on this. Currently we are engaged in talks to give final shape to our proposal and the preferred area for the project in Sindh.
BR: Are you interested in investing in any other sectors in Pakistan?
EYJ: The environment is very conducive in Pakistan for specialised banking. We have approached State Bank of Pakistan (SBP) for a license and would like to operate in both Islamic and commercial banking in Pakistan.
BR: Are you interested in bidding for state owned enterprises?
EYJ: We have to look into what is on offer and then undertake a cost-benefit analysis before bidding.
BR: Tell us about some of the constructive and lucrative ventures throughout the Middle East and India, that GFH has been involved in.
EYJ: We developed a new concept for the government of Qatar by creating an energy city. It was a unique model and created employment opportunities, investment and new industry.
I have also been personally engaged in developing energy cities in Libya, China and India. And I generated development funds through energy investment banking as well as developed unique contracts of Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) for future auctions.
BR: Does GFH envision similar projects in Pakistan?
EYJ: The government's Public Private Partnership (PPP) model is lucrative and attractive to foreign investors. I believe that Independent Power Producers (IPP) are among the best examples of foreign investment in Pakistan. We, as a group, find a window of opportunity in the sectors of captive power and renewable energy. Investment in energy sector in Pakistan is a profitable business as energy demand is huge.
BR: How do prospective foreign investors perceive Pakistan?
EYJ: Media is generally playing a negative role in terms of security and stability. To mitigate the negative perception, Pakistan must bring business back by providing security guarantees.
BR: How effective are government measures to provide security to foreign investors?
EYJ: It is good and bad. It provides us (foreigners) with security but it is bad as it conveys a message of a security problem in the country. The risk to investment in Pakistan is easily ascertainable by the financial position of the State Bank of Pakistan and by different international ranking institutions. However I would take this opportunity to inform you that I was provided with security throughout my stay in this country.
BR: Do you have any concerns on dispute settlement mechanism of Pakistan?
EYJ: Usually we go according to English Law. There is also an international arbitration centre and whenever we have any problems we prefer to approach it.
BR: Do you have any prior experience in doing business in Pakistan?
EYJ: My brother is running Faisal Islamic Bank in Pakistan. Earlier, we provided structural financing to an Independent Power Producer in 1994; besides, we were also involved in construction of a shopping mall in Lahore.