Unicorn Investment Bank

Unicorn Investment Bank Enters Pakistan - Unicorn buys 20% equity stake in First Dawood Islamic Bank

Bahrain, 20 June 2006 - Unicorn Investment Bank has bought a 20 percent equity stake in First Dawood Islamic Bank (FDIB), a newly established commercial Islamic bank. The initial paid up capital of FDIB is expected to be in line with the regulatory requirement of Rs 2 billion (US$ 34 million).

This stakes enables Unicorn to access the Pakistani market and its 160 million inhabitants, 97 percent of whom are Muslim. In 2004 Islamic deposits represented less than 1 percent of total deposits in Pakistan and is projected to reach 10 percent by 2014 (approximately US$ 13 billion).
Majid Al-Sayed Bader Al-Refai, Chief Executive Officer of Unicorn Investment Bank, commented: “It is a time of promise and opportunity for Islamic institutions in Pakistan. There is enormous demand for Shari’ah compliant products and deposits from a huge Muslim population, but relatively little choice amongst existing Islamic banks. The establishment of First Dawood Islamic Bank ushers in a new era for the millions of Muslim Pakistanis who have, up until now, been largely underserved”.

Earlier this year, Unicorn was invited to invest in the bank by the respected Dawood banking family who are spearheading this venture. Together they met the Pakistani Prime Minister H.E. Shaukat Aziz and previous State Bank of Pakistan (SBP) Governor Dr. Ishrat Husain to finalise details for the formation of the new Islamic bank. Though, the foundation was established with Dr. Ishrat Husain, Dr. Shamshad Akhtar the present SBP Governor provided her complete support, along with Pervaiz Said, Head of the SBP Islamic banking department in granting the license for the bank.

First Dawood Islamic Bank was awarded one of only five new Islamic commercial banking licences by the State Bank of Pakistan. The bank is headquartered in Karachi and plans to open a network of 20 branches across Pakistan within the first five years. Aamir Khan, MD of Private Equity at Unicorn, said: “Pakistan has always enjoyed a prominent position in Islamic banking dating back to its rudimentary beginnings in the 1950s when a group of wealthy landlords deposited funds at no interest and then loaned them to small landowners for agricultural development. As an innovator UIB is the ideal Islamic investment bank to partner with First Dawood Islamic Bank in this exciting new phase in Pakistani Islamic banking history”.