Exclusive: Qatari company to acquire major stakes in Syrian banks, sources say | Reuters

Exclusive: Qatari company to acquire major stakes in Syrian banks, sources say | Reuters

Qatari group Estithmar Holding (IGRD.QA), opens new tab is set to take control of Syria's Shahba Bank and take a 30% stake in Syrian International Islamic Bank, four people familiar with the matter said, marking the first foreign banking acquisitions in Syria since the fall of former leader Bashar al-Assad.

The move, which follows the lifting of U.S. sanctions on Syria late last year, comes as the country's central bank tries to recapitalise a banking sector severely impaired by 14 years of war and Western sanctions.

Estithmar, part of the Doha-based Power International Holding conglomerate led by the Syrian-Qatari brothers Moutaz and Ramez Al-Khayat, will take a controlling 60% stake in Shahba after buying out the shares of Banque Bemo Saudi Fransi and Ahli Trust Bank, according to three of the people.

"They have a very ambitious plan for the bank by enhancing the capital and facilitating communication with correspondent banks," one of the sources, who is familiar with Shahba Bank's thinking, said.

Another 30% of SIIB is already held by Qatari partners, according to a person with direct knowledge of the matter.

Bemo, ATB and SIIB did not immediately respond to requests for comment.
The acquisitions are still subject to regulatory approval.

Syrian Central Bank Governor Abdelkader Husrieh said he could not comment as these matters remained confidential.

"That said, the Central Bank welcomes any potential restructuring or market-led initiatives that strengthen the stability, resilience, and sound governance of the banking sector, provided they fully comply with applicable laws and regulatory requirements," he told Reuters.

The acquisitions would add to a growing portfolio of projects and investments by the Khayats, whose companies already have contracts for power generation projects in Syria and to redevelop and expand Damascus airport.

The sources said ATB and Bemo would use proceeds from the sale of their stakes in Shahba Bank to inject capital into their own banks, which have been hit by exposure to a financial crisis in neighbouring Lebanon.

Gulf markets mixed amid geopolitical worries, profit-taking | Reuters

Gulf markets mixed amid geopolitical worries, profit-taking | Reuters

Gulf stock markets closed mixed on Thursday, as investor sentiment was weighed down by uncertainty surrounding the evolving regional geopolitical situation and profit-taking.

The United States is pulling some personnel out of military bases in the Middle East, a U.S. official said Wednesday. That came after a senior Iranian official said Tehran had warned neighboring countries it would target U.S. bases if Washington launches strikes.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 1.2%, snapping a six-day winning streak, with Al Rajhi Bank (1120.SE), opens new tab losing 1.6%.

However, broadened foreign participation rules triggered the recent rebound, additional market reforms could translate into increased foreign inflows, while new state-owned firms' IPOs could draw new investments, said George Pavel, general manager at Naga.com Middle East.

Among other losers, oil behemoth Saudi Aramco (2222.SE), opens new tab eased 0.7%.

Oil prices, a catalyst for the Gulf's financial markets, tumbled more than 3% after U.S. President Donald Trump said killings of demonstrators during protests in Iran were ending, easing concerns over military action against Iran and potential oil supply disruptions.

The Qatari index (.QSI), opens new tab declined 1.3%, hit by a 2% fall in Qatar Islamic Bank (QISB.QA), opens new tab.

Dubai's main share index (.DFMGI), opens new tab finished flat, while the Abu Dhabi index (.FTFADGI), opens new tab was up 0.2%.

According to Pavel, the earnings season has the potential to reinforce the positive fundamental narrative, but its impact is constrained to a certain extent by the trajectory of oil prices and the regional geopolitical risk.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.7%, with Commercial International Bank (COMI.CA), opens new tab advancing 3.4%.