FSA authorises new Shariah-compliant wholesale investment bank

22nd April 2008

Gatehouse Bank plc has been authorised by the Financial Services Authority to operate as a wholesale investment bank, allowing it to take deposits within the United Kingdom regulatory environment. It will undertake all of its activities in accordance with Shariah and will focus on business opportunities throughout the Gulf region, Europe and North America, as well as targeted countries in the emerging markets and South-East Asia. Gatehouse is a subsidiary of one of the leading and most respected investment companies in Kuwait, The Securities House KSCC.

Gatehouse Bank will focus on Islamic capital markets, institutional wealth management, Islamic treasury business and providing Shariah advisory services, becoming a natural bridge between the Middle East and the world’s largest financial markets. Gatehouse will target:

• Gulf-based corporates and financial institutions wanting to access the global capital markets;
• European and US conventional borrowers seeking investor diversification;
• Islamic investors funding investments in Europe, North America and Asia, as well as selected jurisdictions in the emerging markets.

Underpinning everything that Gatehouse plans to achieve are its people. The bank has hand picked a team of financial services professionals who are market leaders in both investment banking and Islamic finance. It is also able to operate with the benefit of guidance from a highly experienced and respected Shariah Supervisory Board to ensure that Gatehouse always acts in accordance with the principles of Shariah, comprising Sheikh Nizam Yaquby (Chairman), Dr. Abdul Aziz Al-Qassar, Mufti Muhammad Nurullah Shikder and Shaykh Haytham Tamim.

Richard Thomas, Chairman, Gatehouse Bank, commented:

“The UK has been providing Islamic financial services for nearly 30 years, but it wasn’t until recently that Government support and regulations created a favourable environment for these services to really grow. Even now, as capital market conditions remain difficult, we believe the prospects for the launch of a new Shariah-compliant investment bank in the City of London are extremely positive.

“Gatehouse Bank is the realisation of the strategic vision of The Securities House, and in particular its chairman Mr Ayman Boodai, who leads one of the most respected investment companies in Kuwait, if not the Gulf. Gatehouse will provide products and services complementary to our parent company’s offering. With the continued strong support of our shareholder and the abilities and experience of our staff, we are confident that we will be able to make substantial progress towards establishing Gatehouse as a leader in our chosen product range and targeted markets. We have made a strong start in our venture with the formation of an experienced, diverse and experienced Board, and we are delighted that three independent non-executive directors based in the UK have accepted our invitation to join the Board of Gatehouse. In Brandon Davies, Matt Carrington and Stella Cox we have the benefit of relevant and independent input into the bank based on their outstanding track records in banking, business and politics, as well as the Islamic financial services industry.”

David Testa, Chief Executive Officer, Gatehouse Bank, added:

“Demand for Islamic financial services is growing very rapidly, in the Gulf region, in Asia, in North America and in Europe. Gatehouse Bank is ideally positioned both to benefit from the increase in demand and to play a major role in shaping the future of Islamic financial services, especially given the bank’s position in the heart of the City.

“We have recruited a highly capable management team, from the back of the office to the front, all of whom have the relevant experience to ensure Gatehouse makes an immediate impact in our Islamic finance activities. We have already created systems and processes that are Shariah, Basle II and IFRS compliant simultaneously – a considerable achievement and a vital platform for building a market leading Shariah-compliant investment bank. “Gatehouse is entering the market at a time when London looks well placed to become the Western centre of choice for Islamic finance. In the recent Budget, the Government made further incremental steps in its on-going policy of specific legislation to enable Islamic Capital Markets to flourish in the UK, whilst maintaining the momentum for a UK sovereign sukuk (Islamic bond).

“With predicted annual growth of 15% – 20% globally, the demand for Shariah-compliant products amongst investors, Muslim and non-Muslim alike, is growing at an unprecedented rate. Gatehouse intends to meet this demand by offering focused services and products, including structuring and arranging sukuk instruments, syndicated financings and other value-added financing solutions for our target clients. We are also aiming to offer uniquely structured and supported Shariah advisory services and this will greatly assist our efforts in building out our business, both here in the UK as well as in the Gulf countries and our target markets in new Europe, Asia and North America.”

For all media enquiries, please contact:

Sarah Boyce
Gatehouse Bank plc
Tel : +44 (0)20 3170 5558
Email : sarah.boyce@gatehousebank.com