Executive Summary
European Islamic Investment Bank plc provides Sharia'a compliant Islamic investment banking services. Headquartered in London, EIIB aims to deliver a full choice of alternative investment opportunities, enabling Islamic investors to construct balanced and sophisticated portfolios which can access a full range of asset classes internationally. EIIB seeks to service a market for Sharia’a compliant investment banking services in Europe, the Middle East and Asia that it believes has been under-exploited by conventional and Islamic banks, and by non-banking institutions. EIIB intends to become a major participant in the market for Islamic securities, treasury and investment products, which is currently experiencing rapid growth. The founding shareholders of EIIB include Gulf based individuals and institutions, including a number of Islamic banks, as well as individuals and companies based in Europe.
Company History
- EIIB was incorporated in January 2005 and received authorisation by the FSA in March 2006.
- In April 2006, EIIB opened for business.
- In May 2006, the Company completed its IPO and was admitted to London’s AIM market.
- In November 2006 EIIB opened a representative office in Bahrain.
Current Events
The company recently invested in DiamondCorp PLC, acquiring a 26% stake in the business in November 2008 for its £1.8m investment. [1]
Business Model
EIIB aims to bridge the gap between Islamic banks and those of Western and OECD countries. It delivers products and services across multiple asset classes to the Islamic wholesale, institutional and high net worth individual markets. it it guided by the Islamic principles of the avoidance of interest, uncertainty, speculation, and unjust enrichment or uinfair exploitation. The Bank's board includes eminent Islamic scholars who ensure that products are designed with these principles in mind.
The bank is structured into three main business units.
- Treasury and Capital Markets: includes activity in foreign exchange and the Islamic equivalent of forward foreign exchange markets, and managing the short to medium term liquidity of the Bank. Its capital markets activity includes term financing, sukuk and structured trade finance.
- Private Equity and Cororate Advisory (PECA): the PECA team operates a private equity investment business and provides advisory services to its clients. PECA sources opportunities to invest in companies that meet the criteria set by the Bank's Board Executive Committee, focusing on Europe, the Middle East and Africa.
- Reak Estate: EIIB's Real Estate unit targets bespoke investment and acquisition opportunities for its clients, and manages existing…
