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GFH Capital, a fully-owned subsidiary of Bahrain-based Gulf Finance House, yesterday announced the acquisition of a prime central London residential property. Located in Kensington, the property is a Grade II listed building, overlooking the Queens Gate Gardens. GFH Capital expects above average capital appreciation to continue over the medium term. Demand for this type of property is reportedly coming from investors all over the world. However, the firm also sees value and upside potential in other real estate markets such as the US and expects to make additional investments in these markets as well.

Borealis and First Energy Bank of Bahrain have jointly bought 20.3 per cent stake in Bulgarian Neochim AD. For the acquisition, Borealis and First Energy Bank formed a joint venture in Bulgaria called Feboran AD. Neochim is a publicly listed company and operates one ammonia plant, two nitric acid plants and an ammonium nitrate plant in southern Bulgaria. Borealis executive vice-president for base chemical Markku Korvenranta said the company believed fertilisers offer attractive business opportunities with further potential for growth particularly in Central and Eastern Europe. First Energy Bank chief executive Mohamed Ghanem said that the investment extended the bank's investment portfolio both geographically into Europe and into a fast-growing market. Furthermore, it reinforced its strategy of participating in the energy sector.

GFH Capital, a fully owned subsidiary of Bahrain based Gulf Finance House, has completed the acquisition of a prime central London residential property. Located in Kensington, the property is a Grade II listed building, overlooking the Queens Gate Gardens. This investment is in line with GFH Capital's strategy to identify attractive opportunities in developed markets like the UK, where it has already made considerable investments. Demand for this type of property is coming from investors all over the world. GFH Capital expects this dynamic to continue due to the favorable conditions of London. However, the firm also sees value and upside potential in other real estate markets such as the US and expects to make additional investments in these markets as well.

Gulf Finance House , the Bahrain-based investment firm which has restructured a number of debt facilities since the financial crisis, has confirmed Hisham Al Rayes as its chief executive officer. Rayes had been acting CEO since March 2012. He said in July that a leaner balance sheet and a new strategy in which it engaged more in its investments would help drive the business forward in future. Its current debt pile is less than $235 million.

Bahrain's Ibdar Bank was launched as a brand on Monday following the merger of Capivest, Elaf Bank and Capital Management House, after more than a year of negotiations between the Bahraini lenders and authorities. Ibdar hopes to leverage the combined expertise of its predecessor banks and a larger balance sheet to win business. The Islamic lender now has $300 million of paid up capital, $329 million in equity and assets of $360 million, which it hopes can help it win deals in its focus areas of capital markets, private equity and real estate. Ibdar is not leveraged and will retain Elaf Bank's licence in Malaysia to support a geographical scope that includes the Middle East, North Africa and Turkey.

AAOIFI Accounting standards reflect concept and essence of Islamic finance transactions and can enhance confidence of users of Islamic finance products and promote growth of demand. This was the conclusion at the AAOIFI-World Bank Annual Conference on Islamic Banking and Finance which was held in Bahrain on 18 & 19 November 2013. The conference also discussed venture capital from an Islamic finance point of view, proposing a model based on a musharaka/partnership arrangement. Moreover, the main types of risks faced by Islamic financial institutions such as non-compliance risks, operational risks, financial risks, and so on were outlined. The conference wrapped up by presenting some guidelines about how AAOIFI standards can be promoted in countries that follow international accounting standards or IFRS.

The Central Bank of Bahrain yesterday announced that the monthly issue of the Sukuk Al Salam Islamic securities for the BD36 million issue, which carries a maturity of 91 days, has been oversubscribed by 102 per cent. The expected return on the issue, which begins tomorrow and matures on February 26 next year, is 0.85pc, compared with 0.85pc for the previous issue.

The Accounting and Auditing Organisation for Islamic Financial Institutions ( AAOIFI ) hosted the two day AAOIFI -World Bank Annual Conference on Islamic Banking and Finance 18-19 November in Manama, Bahrain. Discussions at the conference focused on international accounting standards for Islamic finance, the dynamics of auditing and risks, incorporation of Shari'ah principles in legal documentation, further innovation on Takaful operations and products, and continuing development of Islamic venture capital. Following the Conference, AAOIFI will hold training courses for its Certified Shari'ah Adviser and Auditor (CSAA) and Certified Islamic Professional Accountant (CIPA) professional development programs 20-23 November 2013.

Bahrain-based investment firm Gulf Finance House said that a family consortium led by chairman of English soccer team Leeds United had bought a 5.71 percent stake in the company, estimated to be worth around 28.9 million dinars ($76.6 million).

Bahrain-based Al Baraka Banking Group ( ABG ) has achieved a net income of US$ 197 million in the first nine months of 2013, an increase of 8% on the net income achieved in the first nine months of 2012. Similarly, statement of financial positions witnessed moderate increases. Total assets increased by 4%, investments and financing portfolio by 5% and customer accounts by 2% as at the end of September 2013 as compared with the end of December 2012. The net income amounted to US$ 197 in first nine months of 2013 compared to US$ 183 million in first nine months of 2012, which reflects an increase of 8%. With regard to the Group's plans to expand its branch network, the President & Chief Executive said that the subsidiary units of the Group in Turkey, Egypt, and Sudan continued opening new branches.

Kuwait Finance House has signed a memorandum of understanding to finance $115 million for Bahrain-based Foulath Holding Company for five years. Shaheen Al-Ghanem, International Banks General Manager, KFH said the deal was part of KFH’s efforst to expand in foreign markets. Foulath is owned by GIC and Qatar steel Company in addition to the National Industries Group, Gulf Cables and Kuwait Foundry Company. Foulath owns factories in Bahrain, Saudi Arabia and its businesses cover various countries in the Middle East.

Bank AlJazira was granted the Ideal Institution in Support of Social and Developmental Action Award at a special ceremony held during the 30th meeting of GCC Council of Ministers of Social Affairs, organized recently in Bahrain. Nabil bin Dawood Al-Hoshan, CEO of Bank AlJazira, received the award from Bahraini Minister of Social Development Fatima bin Mohammed Al-Balooshi. The award comes after the bank was nominated by the Saudi Ministry of Labor and Social Affairs, in recognition of its efforts and programs in social responsibility.

Bahrain Islamic Bank (BisB) has reported a net profit of BD3.8 million ($10.1 million) during the first nine months of the year from a net loss of BD20.8 million during the same period last year. Net profit for the third quarter this year amounted to BD1.4 million versus a net loss of BD4.9 million during the same quarter last year. This is after setting aside provisioning amounting to BD3.4 million for the quarter under review as against BD5.4 million during the corresponding previous period. The bank made an operating profit of BD12.9 million during the first nine months of the year. Operating profit for the third quarter was BD4.8 million. Chairman Abdul Razaq Al Qassim said the results reflect a prudent policy and all earnings represent principal activities involving the bank's assets.

Al Salam Bank Bahrain has led investment into a new waste-to-biodiesel plant in Hong Kong. The plant is operated by ASB Biodiesel, a Hong Kong-based company under the chairmanship of HRH. It is capable of processing waste oils into 100,000 tonnes of biodiesel annually. The construction cost of the plant was $165 million. Specifically, ASB Biodiesel collects waste cooking oil and up to 550 tonnes of grease trap waste per day, then processes the waste using multi-feedstock technology from Austrian designer BDI Bioenergy International.

The Bahrain Chamber of Dispute Resolution (BCDR) ordered Bank Alkhair's former Chief Executive Officer, Majed Al-Refai, in a verdict to repay a $2 million loan he had taken during his tenure as CEO, and to compensate the bank for all legal fees and costs. The latest ruling against Al Refai follows several other criminal cases involving Al Refai and associates which have all been ruled in favor of the bank. On 29 September 2013, the Supreme Criminal Court of Appeal sentenced Al Refai and his Canadian associate Robert Little each to one year in prison for forging the bank’s Articles of Association. The bank has confirmed numerous legal proceedings, which are ongoing since September 2010, all within the jurisdiction of the Kingdom of Bahrain, and do not affect the ongoing operations of the bank.

The financial crisis has changed the focus for Bahraini investment banks away from bumper projects and the preference now is for slimmer balance sheets, according to GFH founder Essam Janahi, who last week stepped down as chairman. GFH has now reduced its liabilities to $223 million, from over $2 billion at the peak of the crisis, and is rolling out a more conservative strategy. Future investments will shy away from aggressive rates of return and favour smaller deals to better manage risk, Janahi said. Even some Islamic investment banks which rode out the global crisis fairly comfortably have streamlined their operations and say they will not spurn relatively small deals. Qatar's QInvest for example has streamlined operations and discontinued areas such as wealth management and brokerage services.

The financial crisis changed the focus of Bahraini investment banks away from bumper projects and the preference now is for slimmer balance sheets, according to GFH founder Essam Janahi, who last week stepped down as chairman. GFH has now reduced its liabilities to $223 million, from over $2bn at the peak of the crisis, and is rolling out a more conservative strategy. Future investments will shy away from aggressive rates of return and favour smaller deals to better manage risk, Mr Janahi said. Bahraini firm Arcapita filed for bankruptcy protection in a New York court in March last year, emerging from Chapter 11 last month with a five-year plan to sell legacy assets to pay creditors. Last week, the reorganised firm appointed a new seven-man board of directors that includes a representative from Bahrain's central bank and the chief executive of Bank Alkhair.

Al Salam Bank-Bahrain (ASBB) shareholders approved by majority the Board of Directors’ recommendation to merge the bank with BMI Bahrain through exchange of ASBB shares. The Chairperson H.H. Shaikha Hessa bint Khalifa Al Khalifa pointed out that ASBB’s strategy is to grow organically and through mergers and acquisitions, and consistent with this strategy the Board of Directors had been continuously on the lookout for suitable commercial banking targets to acquire and integrate. H.H Shaikha Hessa mentioned that upon merger the Group will have total assets of circa BHD 1.8 billion, financing facility of circa BHD 1.2 billion, equity of over BHD 285 million and total customer deposits in excess of BHD 1.2 billion.

The Family Bank took part in the Third Global Islamic Micro-Finance Forum which is organised by the Al-Huda Centre of Islamic Banking and Islamic Economics (CIBE). The two-day forum includes a workshop on "How to Develop, Operate and Sustain Islamic Micro-Finance Institutions", in which a number of experts and consultants are participating. Family Bank, led by the Social Development Minister and Board of Directors Chairperson Dr. Fatima Mohammed Al-Balushi, implements its programmes in cooperation with the Labour Find (Tamkeen). It is the first Islamic micro-finance bank in the Middle East with the prime objective to contribute to poverty alleviation and socio-economic empowerment of the communities by providing sustainable Islamic financial services to the needy.

Gulf Finance House climbed to the highest in more than three months as the Bahrain-based investment bank replaced its chairman Essam Janahi by by Ahmed Al-Mutawa. The shares surged 11 percent to 57.3 fils in Dubai, the highest since June 20, bringing the gain this year to 37 percent. Gulf Finance House shares listed in Bahrain rose 7.7 percent and those traded in Kuwait advanced 6.5 percent. Some investors may be taking advantage of the price difference in Gulf Finance House shares by buying in Kuwait and selling in Dubai. In Israel, the TA-25 index gained 1.4 percent, led higher by Perrigo Co., a generic drug maker, and Cellcom Israel Ltd. The gauge dropped 1.1 percent on Oct. 3 in a rebalancing for the entry of Opko Health Inc. into the index.