Dubai Financial to acquire a controllingstake in the Bahrain-based TAIB Bank

Dubai Financial, the holding company for Dubai Group, has signed a stock purchase agreement to acquire a controlling 60 per cent stake in the Bahrain-based TAIB Bank, the Islamic investment bank engaged in private banking and wealth management services. Subject to regulatory approval from the Central Bank of Bahrain, Dubai Financial will assume control of the TAIB board with Soud Ba'alawy, executive chairman of Dubai Group, becoming TAIB’s chairman. Iqbal Mamdani will continue as the vice chairman and chief executive officer. TAIB, which is listed on the Bahrain Stock Exchange, reported profits of $22.4 million at the end of 2006, a 20 per cent increase from the previous year. Its long-term strategy is to focus on countries with growth potential such as Turkey, India and Kazakhstan, as well as the Gulf region. Last month Qatar Financial Centre Regulatory Authority (QFCRA) approved the creation of a TAIB subsidiary. To be called TAIB Bank Qatar, it is expected to begin operations in July. Dubai Group is the leading diversified financial company of Dubai Holding. It was established to focus on investments, banking and insurance, both at a regional and global level. Dubai Group has five members; Dubai Investment Group, Dubai Capital Group, Noor Investment Group, Dubai Islamic Investment Group, and Dubai Financial Group.