Starting a business in the current economic environment offers more opportunities than disadvantages, according to Ajman Bank, a new Islamic commercial bank that intends to become fully operational next week.
Ajman bank, which has founders including the ruling family of the emirate of Ajman, has paid-up capital of Dh1 billion (US$272 million), about 65 per cent of which it raised in an IPO early last year. It will open its first flagship branch in Ajman on Feb 2. The emirate owns about 25 per cent of the bank and local businessmen hold up to 40 per cent, Mr Wafai said.
The timing of the Ajman bank’s official opening coincides with a virtual standstill in bank lending. In addition, the country is considered “overbanked” and ripe for consolidation. Last year’s merger of Emirates NBD is seen as a blueprint for future mergers. Mr Wafai said the bank would look to acquire others that could not survive the current turmoil without outside help. “Our key model is to acquire and grow, not organic growth. Asking about future acquisitions is the right question to ask, but not the right time,” he said, noting that the bank was not yet ready to reveal its strategy.
Following next week’s official opening, Ajman Bank plans to begin operations in branches in Dubai, Abu Dhabi, Sharjah and the Ajman Free Zone within a year. “We plan to open one branch per quarter,” Mr Wafai said.
Ajman News, January 2009
