Al Salam Bank - AGM 2011

Khartoum – 26th March 2011: Al Salam Bank – Sudan, has successfully concluded its Annual General Meeting (AGM) recently in Khartoum in the presence of the banks’ board members, in which the AGM has approved the distribution of 10% cash dividend on shareholders from the paid bank’s capital. The report of the board and results for the fiscal year ended December 31, 2010 was also discussed at the AGM.

The board members’ report, which covers the bank’s activity and its financial position for the financial year ended December 31, 2010, was also reviewed during the meeting. The AGM has approved the Fatwa and Shari’a Supervisory Board’s report on the bank’s activities.

The assembly also discussed the auditors’ report covering the balance sheet and the profit / loss count for the previous fiscal year (ending on December 31, 2010). The AGM also discussed the suggestion of board members’ rewards, the clearance of the auditors for their tasks in the previous fiscal (ending on December 31st), and appointing new auditors for fiscal year 2011 with defined salaries.

Al Salam Bank has recorded a net profit of SDG 36.2 million (about USD 14.45 million) by end of fiscal year 2010, after deducting the tax fees and zakat, compared to SDG 22.6 million (about USD 9 million) by the end of fiscal year 2009, achieving a record growth of 60%.

The bank was able to achieve excellent financial results at the end of 2010 despite global and local economy challenges and has maintained a competitive level, in addition to occupying a rank on the list of top ten banks in Sudan according to key financial indicators.

The bank’s assets grew by 23% reaching SDG 1.337 billion (about USD 505 million) by the end of 2010, compared to SDG 1.86 billion by the end of 2009. The bank has also succeeded in raising the value of customer deposits to SDG 924 million recording a growth of 25%, compared to SDG 741 million by the end of 2009.

The financing portfolio of the bank rose by 22%, reaching SDG 1.8 billion by end of 2010, compared to SDG 882 million. 70% of bank’s financing portfolio was allocated to support key sectors, such as industrial, agriculture, export and finance sector, committed to guidance and regulations of the Central Bank of Sudan.

Al Salam Bank revenues have reached SDG 97 million by the end of 2010, compared to SDG 92 million by the end of 2009 recording a growth rate of 5%. The bank’s management has succeeded to maintain the operational efficiency by 31%, where the standard percentage generally accepted in the banking industry estimated at 55%.

Mohammed Bin Omair bin Yousef, Al Salam Bank Chairman said: “Al Salam Bank has maintained a balanced performance, which contributed in strengthening its capacity and the development of its financial results significantly, in addition to overcoming the challenges imposed by the global financial crisis on the banks’ performances globally and achieving significant growth in terms of profitability and to attracting more deposits.”

“Our aim is to reinforce our position between the top ten banks in the Sudan, and we are confident that we will be able to strengthen the gains and continue to grow by the support of our customers, shareholders and of course the staff, who I would like to thank them for their performance and great efforts,” Hussein Al Meeza added.

The AGM elected the board members for the coming period, in which Mohammed Omair bin Yousef, Chairman; Hussein Mohammed Salem Al Meeza Deputy Vice-Chairman and Kamal Hamza Al-Hassan; Salim Rashid Al Mohannadi; Abdullah Abdul-Karim Showaiter; Berber, Saud al-Mamoun; Mohammed Ibrahim Hamdoun; Abdul Baset Hamza al-Hassan and Muhammad Sharif Rafii as Board Members.

Al Salam Bank’s Board of Directors expressed deep appreciation for the massive efforts exerted by AL Abbar to lead the band since its establishment, his limitless support for the Board and his full cooperation with its members. The Board assured that during Al Abbar’s tenure, Al Salam Bank - Sudan experienced an outstanding fiscal results and high profitability and maintained a 10% dividend distribution since its launch.

H.E. Hussein Mohammed Al Meeza, Vice Chairman of Al Salam Bank – Sudan, lauded Al Abbar’s dedication and contributions to the success achieved by the Bank so far.

“Al Abbar’s resignation as the Chairman of Al Salam Bank – Sudan is a real loss for the bank. However, considering Al Abbar’s circumstances and the burden of responsibilities he is shouldering, the Board of Directors had no choice other than accepting his resignation,” he said.

Al Meeza expressed gratitude for the resigned Chairman, who is considered the founder of Al Salam Bank – Sudan.   . 

Meanwhile, Al Salam Bank – Sudan announced the appointment of H.E. Mohammed Bin Omeir bin Yousef as the Bank’s new Chairman, stressing that there will be no changes in the composition of its Board of Directors.

Khartoum, April 28, 2010: HE Hussein Mohammed Al Meeza, Deputy Chairman of the Board of Al Salam Bank Sudan, has said that during 2009 the Bank achieved “great strides” in most of its financial endeavors despite the difficult situation of the world economy following the global financial downturn last year.  In addition to internal growth—which saw net profits rise to SDG 22.6 million during 2009—the Board of Al Salam Bank Sudan has agreed on the distribution of 10% stock dividends to shareholders.

In his speech at the sixth meeting of the bank’s General Assembly held in Khartoum today, Al Meeza said, “Thanks to God, Al Salam Bank Sudan was able to maintain its financial position and achieve growth rates in many financial areas, with an 8% growth of total assets from SDG 1.003 billion in 2008 to SDG 1.086 billion in 2009.”

Al Meeza also confirmed that 2009 witnessed growth in the amounts of deposits, reaching about SDG 741 million; a record growth of 12% from the SDG 662 million recorded during the same period in 2008.  “The bank maintains a powerful position in the area of liquidity as the current ratio is approximately 34%, through which the bank functions all of its tasks and banking obligations,” added Al Meeza.

The bank’s funding amount also increased from SDG 641 million at the end of 2008 to SDG 679 million at the end of 2009, a record growth of 6%. A large portion of these funds financed the Sudanese economy in sectors such as telecommunications, strategic goods, the oil sector, and the real estate sector.

Also Bank overall investments rise from SDG 192 million by the end of 2008 to about SDG 203 million by the end of 2009, forming a growth rate of 6%.

Deputy Chairman of the Board of Al Salam Bank Sudan explained that the Bank has succeeded to increase its gross income in all banking and investments activities by 13%  i.e. SDG 91.7 million at the end of 2009 compared to SDG 81.4 million in 2008. On the other hand the general and administrative expenses grew by approximately 6.9% i.e.  to SDG 24.9 million compared to SDG 23.3 million for the same period.    

Also to strengthen the Bank’s financial position, Bank Management has decided to increase the specific provision by nearly 211% i.e. from SDG 4.5 million to SDG 14 million.  Finally, the Bank achieved SDG 50.3 million gross profits by the end of 2009 and a net profit of SDG 22.6 million.
 
Furthermore, Al Meeza pointed out that 2009 marked down concerns regarding the global economic recession and that positive signs have recently started to appear. “This calls for optimism about the possibility of slow improvement in the performance of global economies,” says.  As for the performance of the Sudanese economy, reports indicate an improvement in growth rates in 2010 and opportunities to eliminate the effects of deflation that accompanied the limited performance of the Sudanese economy during 2009.  In Sudan, much of that negativity was a result of the decline in foreign currency balances due to lower oil prices and the decline in the value of the Sudanese Pound against foreign currencies. High inflation rates also had a clear impact on the overall activities of banks’ foreign businesses in Sudan.

Al Salam Bank Sudan also achieved good rating during the regular performance review by the Central Bank of Sudan in the assessment of banks operating in the country. In 2010, the bank will seek to obtain a review rating of A or A+, which has not been achieved by any bank during the year 2009.  This will be supported by a plan to open several new branches during 2010 to expand its client base. So far the company has opened five ATM locations and nine sites as points of sale; part of an integrated plan to improve the quality of banking services.

In addition, the Bank has revealed plans to provide new products to the market as it expands trade with retail banking in line with its policy of supporting the sector.  “The Bank’s management looks forward to improving the staff’s performance during the year in light of domestic and international economic developments while diversifying the Bank’s customer base and increasing the size of deposits,” says Al Meeza.  In 2009, some 45 employees were enrolled into various training courses related to banking both inside and outside of Sudan.

In terms of reviews, several reports from entities such as the Governing Council, Fatwa and Sharia Supervision Board, and independent auditors for the Bank’s activities were heard and approved during the 2009 financial year. These approvals included ratifying the position of the Governing Council, acquitting Board members whose terms were up, and the reappointment of external auditors for the current fiscal year.

Al Salam Bank –Sudan has released new figures showing substantial Q3 gains as well as positive growth in investor’s shares.  The bank achieved a profit of $21.5 million during Q3 2009 including investors’ shares; an increase about 9 % compared to the $19.7 million generated during the same period last year.

In addition, the bank announced an increase in earnings per share from 9 cents to 12.4 cents during Q3. Al Salam Bank – Sudan also allocated $3.3 million for funding during Q3, bringing the total to $4.95 million for the first 9 months of 2009. The net profit of property rights also increased by 38% since Q3 2008, from $9 million to $12.4 million.

On the downside, the value of assets at the end of Q3 2009 ($436 million) was about 5% less than the value of assets in Q4 of 2008 (roughly $458 million). Al Salam Bank says that the decline came as a result a rising dollar-value against the Sudanese pound.

Mr. Osman Mokhtar, General Manager of Al Salam Bank - Sudan, expressed his happiness over the positive earnrings. “These results indicate the bank’s strong position in the financial markets. We expect the bank to achieve greater success in Q4 and anticipate excellent financial results at the end of this year.”

Al Salam Bank- Sudan is one of the largest banks in terms of capital market on the Khartoum Stock Exchange. Through its innovative and unique banking services, it has become one of the most important banks operating in the Sudanese market.  The Bank was established as a result of cooperation between the UAE, GCC and Sudanese governments.  It launched its operations on May 25, 2005 with $100m capital.

-END-

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HE Mohamed Ali Al Abbar, Chairman of the Board of Al Salam Bank Sudan, said that during 2008, the Bank has achieved great strides in the most items of the financial position, despite the current difficult situation of the world economy as a result of developments of the global financial crisis during the year 2008. In his speech at the regular fifth meeting of the Bank’s General Assembly, which was held in Khartoum today, he said: “The Sudanese economy is affected by the global economic developments, especially in light of the continuing decline of oil prices, and we expect that these facts will be dealt with on realistic and practical basis. We are here to assure everyone that as a result of the very special way in which the Sudanese economy is connected to the global economic developments, Al Salam Bank Sudan has not directly affected at the level of domestic financial assets, and therefore did not have to take any special treatments or procedures in this regard”.

HE Mohamed Ali Al Abbar added that thanks to God Almighty and thanks to the sincere efforts of all employees in Al Salam Bank Sudan, the last year, 2008, was another year of excellence and distinguish performance. The Bank has maintained its competitive status with the in which its assets have grown at rate of 23% to reached about a billion of pounds by the end of 2008, compared to 818 million pounds by the end of year 2007.

HE, Chairman of the Board of Al Salam Bank Sudan, explained that the Bank has succeeded in the field of resources by attracting investment and savings deposits amounted to about 582 million pounds by the end of 2008, compared to 426 million pounds by the end of 2007, at a growth rate of 36%, representing about 80% of the Bank total deposits. This enabled the Bank to work with stable resources and support the liquidity position. He noted that the current deposits jumped to 48%; from 54 million pounds by the end of 2007 to about 80 million pounds by the end of 2008.

Furthermore, HE Mohamed Ali Al Abbar stressed that the volume of the granted financing has increased from 163 million pounds by the end of 2007 to about 325 million pounds by the end of 2008 with a record growth reached 99%. In the same area, the volume of the Bank investment has increased from 486 million pounds by the end of 2007 to about 509 million pounds by the end of 2008. Also, the total revenue of the Financial Operations has reached about 35 million pounds by the end of 2008, compared to 23 million pounds by the end of 2007 at a growth rate of 52%.

He said that as a result of these efforts and good performance, Al Salam Bank Sudan has achieved an income from the banking services amounted to about 24 million pounds against 9.7 million pounds by the end of 2007 at a growth rate reached a record of 147%. The investment income has amounted to 36 million pounds by the end of 2008, compared with 23 million pounds by the end of 2007 ate a growth rate of 56%. Therefore, the Bank has achieved total revenue of nearly 81 million pounds at the end of 2008, compared to 63 million pounds by the end of 2007 and by an increase of 31%.

He added that public expenditure in Al Salam Bank Sudan rose by 79%, from 15.3 million pounds by the end of 2007 to 27.7 million pounds by the end of 2008 a result of the expansion in the structures of the Bank after the transition to the headquarters. As a result of all this, the Bank has achieved an operating profit during the year of 2008 amounted to 27 million pounds with a net profit of 21 million. The Bank also has kept the same rates on the distribution of profits to the holders of the absolute investment accounts. The cost of deposits has increased from 15 million to 29 million pounds, with 14 million pounds and at a rate of 93% as a result of the confidence of depositors and the increase of deposits.

HE Mohamed Ali Al Abbar add that Al Salam Bank Sudan is trying to achieve the geographical spread by opening new branches. During the month of November, the branch of Al Salam Rotana Hotel has joined other branches, with a view to expanding the customer base and services. Our efforts will continue to improve the efficiency of capital, attract more resources and to maximize profits. We also will focus on the new products and services within the framework of an integrated marketing plan, where the Bank Management has paid great attention to the banking technology, internal and external training.

The General Assembly of Al Salam Bank Sudan has approved the proposal of the Board of the Bank to distribute cash dividends to shareholders at a rate of 10% of the paid-up capital.

The Report of Auditors, and the Report of the Fatwa and Shari’a Supervision have been all reviewed during the meeting of the General Assembly, as well as discussion and adoption of the balance sheet, profit and loss account for the financial year ended December 31, 2008

Finally, the Bank’s Board of Directors and auditors were also discharged for their actions over the past year. The auditors for the current fiscal year 2009 were appointed and to the Board of Directors were authorized to determine their fees.

Al Salam Bank in Algeria, , was officially opened today by H. E. Hussein Mohammed Al Meeza, Vice Chairman of the Board of Directors of Al Salam Bank and a number of high ranking officials and businessmen.  The event marks the launch of the bank’s high quality services in the Algerian market.  Al Salam Bank has previously acquired the license of Algeria’s Money and Credit Council to operate as one of the largest banks in North Africa and to offer its banking services through its headquarters and one branch in the Algerian capital city with a paid up capital of 7.2 billion Algerian dinar ( US$100 million).

Al Salam will provide innovative banking services and will play a leading role in the Islamic banking market though availing unique products and solutions designed by experienced specialists in the Islamic banking industry that has been in the forefront of banking businesses in the region.

In his speech on this occasion, H. E. Hussein Mohammed Al Meeza, Vice Chairman of the Board of Directors of Al Salam Bank, stressed that the opening of Al Salam Bank comes in an important stage of Algerian history as the government is taking huge economic strides to attract investments and Algeria is poised for a new era of comprehensive development that will prevail all over the country.

Al Meeza said: “Investment opportunities in Algeria are huge. Vast segments of Algerian society are looking for new banking services to help them achieve ambitions in various sectors of the economy. Algerian market is witnessing a real investment revolution. In mid 2007, investments of 6162 domestic enterprises were valued at US$10 billion, in addition to foreign investments mounting to US$ 10 billion. By the end of 2008, investments are expected to reach US$ 50 billion, while growth rate is predicted at 5.8 per cent. The Gross Domestic Product (GDP) for this year is estimated to be 6864 billion Algerian dinar, with an assumed oil price of US$ 19 per barrel.”

“In the light of these changes,” Al Meeza added, “we have launched an initiative to establish Al Salam Bank in Algeria to cater for the development needs in all economic fields. We strive to offer modern banking services that are based on our values and principles which form the basis of our business movements and concepts. We are seeking to provide our customers with high quality services and products which are designed to complement the market’s, customers’ and investors’ requirements and to meet the highest internationally recognised standards. We place the highest priority on innovative and modern solutions, efficient decision making and prompt implementation so that we can maintain our status as the first choice for customers who look for progress and prosperity in Algeria.”

According to Al Meeza, Al Salam Bank will act as a world commercial bank adopting an Islamic banking system that is based on inferential benefits and mutual ambitions. With an excellent and experienced team, the bank will promote modernisation and change, and will constantly work to bolster its leading position in the banking sector. The bank also uses state-of-the-art technology to guarantee easy and effective services and to continue with its drive to support the banking sector in Algeria.

The Vice Chairman of the Directors Board of Al Salam Bank – Algeria said that performance of Al Salam Bank- Algeria is based on innovative banking solutions, conclusive decisions, prompt implementation and accurate delivery. He pointed out that these aspects are effective in creating strong ties with customers and ensuring customers’ instant loyalty to keep the bank as their first choice.

The Bank’s priorities, according to Al Meeza, will focus on the human resources’ efficiencies, coordination and ability to create innovative ideas and fruitful programmes and banking solutions that complement the needs of both customers and markets and lead to prosperity and progress.

Al Meeza expressed his appreciation for the efforts paid by all segments of Algerian society to support this bank that will play a premier role in realizing the future generations’ ambitions. He also thanked all contributors and customers for the confidence they have placed in the bank.

Al Salam Bank – Algeria will offer a wide range of services including: safe deposit boxes, Automatic Teller Machines (ATM) which are scattered in many vital areas, telephone banking, mobile banking (SMS), on line banking and customers’ call centre.

Al Salam Bank- Algeria will offer a variety of banking services, including: saving accounts; investment deposits, which offer the chance to invest in remunerative businesses, with profits awarded at the end of the deposit term according to the investments’ performance; and real estate financing to help a customer own a new house through Murabaha, Ijara and Istisna’a that cover up to 80% of the value of the property over a maximum period of 20 years.”

Services offered at Al Salam Bank also include vehicle financing (Murabaha) covering up to 80% of the vehicle value for a maximum period of 5 years, i.e. 60 months. Consumer financing is also available to cater for customers’ needs of furniture and home appliances through Al Murabahah that covers up to 100 % of the purchase value over a maximum period of 5 years (60 months). The bank also issues investment certificates that are entitled to earn profits at the end of their terms as per the performance of the executed investments. In addition, the bank allows premature redemption of deposits, secure investment of money, financing against treasury bonds mortgage, as well as other services that will be announced in the future.”

Algeria

Al Salam Bank Sudan wins ‘’Best bank in Sudan’’ award for 2008 by Global Finance magazine, the American publication, considered as one of the key publications in finance internationally.

The bank been awarded for its continuous achievements and the quality Islamic banking services offered to the Sudani market along with the advanced banking technologies used.The award ceremony scheduled for October 2008 which will take place along with the Meetings between the International Monetary Fund and the world Bank in the United states of America, were Mr. Mohammed Ali Al Abbar, the chairman of the Bank was invited to receive the award.

‘’ through providing excellent banking services & advanced Islamic banking products, Alsalam Sudan considered as one of the key figures in Islamic banking in the Republic of Sudan’’ Said, Hussain Al Meeza, Vice President, Sudan Bank.

‘’ this award considered as one of the very important in the financial world, and this award came to position Al Salam Sudan among the global financial institutions as a leading Islamic finance provider in the republic of Sudan and the region… the bank achieved excellent results for the last quarter of 2007 as per CAEL were the bank achieved a ‘’STRONG’’ points which is considered as a major achievement for the bank’’ added, Mr. Almeeza.

Focusing in providing the best services, Mr. Al Meeza mentioned that headquarter provided with the latest technological equipments and state of art technologies to provide an international standards services.  The Bank also planning to expand by opening another 4 branches through out Sudan in 2008, were Al Salam Rotana branch in Africa street – a Khartoum been approved by the central bank and work in progress for the opening, the other branches will be in amderman and alkartoum bahri along with bortoswan, also state of art ATM’s will be available various areas of Sudan for an easy reach.

The vice president declared that the bank strategy focus on the human resources as a key element for success and considered as a top priority for the bank, mentioning that the bank succeed in attracting national personnel’s through providing training and development programs to improve the skills of the employees to provide an international standard services.

Al Salam Bank Sudan started in May 2005, considered one of the largest banks in Al Khartoum Stock Exchange, and lately been listed in Dubai Stock Exchange July 2008 were the bank has achieved an excellent financial results over the past few years.

Alkhartoum

Sudanese President, Omar Hassan Al-Bashir, today inaugurated the new premises of Al-Salam Bank of Sudan, located downtown the capital, Khartoum.The inaugural ceremony, which was conducted amidst a big fanfare, attracted a large number of dignitaries, including ministers, members of the diplomatic corps and economic personalities, including the board chairman of Al-Salam Bank, H.E Mohammed Ali Al-Abbar and other board members and senior officials of the bank.

Having unveiled the plaque to declare the bank officially open, President Al-Bashir, accompanied by Mr. Al-Abbar and deputy board chairman and managing director of the Al-Salam Bank – Sudan, toured the various sections of the building premises to have first hand information about its facilities. He was briefed about the banks, facilities, development and activities.

In a keynote address, Al-Abbar expressed profound gratitude to the Sudanese president for taking time-off to officially open the new premises of the bank. He said the bank had now become a major player in Sudan’s Islamic banking sector, thanks to the rapid growth of Sudan’s economy and the giant leap forward made by the country’s balanced economic development and transformation in its journey towards a total integration into the regional and international economy.

He said: “Our sister country, Sudan, is currently witnessing a rapid growth. Having made great progress towards achieving its targeted five-year development plan (2007-2011), including maintaining inflation rate to within the 8.8% limit on the average and achieving 10% GDP growth rate against the world’s rate of 9.3% in 2006. Generally, this reflects Sudan’s success in its economic policies as well as the success of its financial and fiscal policy tools.”

He added: “The establishment of the Al-Salam Bank – Sudan, came as a fruit of cooperation between Sudan and its sister countries in the Gulf. This bank is a natural extension and significant development in bilateral relations between the private sectors of Gulf countries, in general, and those of the United Arab ‘Emirates, in particular. This sector has great impact on Sudan’s economic drive having involved in many investment projects in various areas, including in the banking sector, through which Al-Salam Bank is making generous contributions in Sudan’s economic growth.”

“One of the main objectives behind the establishment of Al-Salam Bank is to play a leading role in the Islamic banking market by introducing and adopting unique banking products and solutions, designed by experts in this sector which is now taking a centre stage in the region’s banking market, which now boasts of a total assets of more than US$450 billion.”

He pointed out that Al-Salam Bank – Sudan had achieved outstanding financial results in the few years of its existence having achieved in 2007 an income of 61.4 million Sudan Pounds (SP) (about US$30 million), compared to SP52 million (about US$25.3 million in 2006. The figures include the profit of depositors after tax and Zakat deductions.

He said the bank had also succeeded in achieving great results in meeting the demands of Sudan’s Central Bank for the last quarter of 2007 in accordance with the CAEL indices which ranked the bank’s performance under the “Strong” category. “This is a commendation we are striving to maintain and add more to it,” Al-Abbar added.

In delivering his keynote address, Al-Salam Bank’s deputy board chairman and managing director, Hussein Al Meeza, applauded the significant role his outfit is playing in Sudan. He said: “Islamic banking is rapidly gaining grounds in various parts of the world in view of its innovative banking solutions, which made people opt for it increasingly. Reports now show that Islamic banking assets will be hitting a trillion dollar mark by 2010.”

He added: “Financial statistics also show steady growth in the number of people preferring to deal with Islamic banking and finance system, deposit has reached US$58 billion, while the assets of Islamic financial institutions continue to surge rapidly from the US$20 billion recorded in 1997 to US$84 billion in 2005. Growth rate of the Islamic banking industry has also appreciated by about 35% with about 270 Islamic banking institutions now operating worldwide. This reflects a major switch from the conventional banking system to Islamic banking and investment system. It also provides the answer to why the free flow of investors’ cash and kind to the Sharia-compliant investment opportunities in Europe, the Arabian Gulf, the Middle East and Asia.”

On the new building premises of Al-Salam Bank – Sudan, Al Meeza said the premises had been furnished with the state-of-the-art equipment and facilities to enable the bank operate at the highest international standards. He added that the bank also boasts of a superb architectural design, making it an architectural masterpiece and a major landmark in downtown Sudanese capital, Khartoum.

He pointed out that as part of its plans to rapidly spread its wings in major Sudanese towns, the bank has conducted studies for the opening of four branches by the end of this year. They include a branch on the Africa Street in Khartoum. “A license had already been acquired from the Sudan Central Bank for the opening of this branch which is now being refurbished for operation. This branch is scheduled to be opened soon. Other branches are located in the towns of Umm Durman, Khartoum Al-Bahri and Port Sudan,” he said, adding that Automated Teller Machines (ATMs) will be placed at various vantage points in Sudan to facilitate access to easy transaction of business for Al-Salam Bank clients.

“The bank’s strategy also focuses on its human resources, which is a vital component of the strategy. Al-Salam Bank has succeeded in employing Sudanese national cadres to whom it offers regular training and development opportunities inside Sudan and abroad to boost their technical skills,” he concluded.

Meanwhile, Al-Salam Bank –Sudan has held an ordinary general assembly meeting at the Nile Ballroom of Al-Salam Rotana Hotel. The general assembly approved a proposal by the bank’s board for distribution of (10%) dividend to shareholders.

The general assembly reviewed a number of reports, including the bank’s financial activities report released by the bank’s board for the fiscal year ending 31/12/2007, a report issued by the Fatwa and Sharia monitoring Authority regarding the bank’s operation. It also reviewed a report of the bank’s auditors, the profit and loss accounts and discussed and approved the general budget and the profit and loss account for the fiscal year ending on December 31, 2007.

The general assembly cleared the board members and the auditors for their activities during the fiscal year ending December 31, 2007.

The assembly appointed auditors for the fiscal year 2008 and decided their remunerations and entitlements. And election the bank’s board for new period.

It’s worth mentioning here that Al-Salam Bank – Sudan, which started operation in Sudan in May 2005, is one of the biggest banks on the Khartoum Stock Market.

The bank has achieved fantastic financial results in the few years of its existence.

Khartoum

Algeria, January 21st, 2008

AL Salam Bank Managing Director and Board Vice Chairman, Hussein Mohammed Al Meeza, has said that Islamic banks are witnessing rapid growth and attracting more patronage worldwide, particularly in the Islamic world.

In his address to the Algeria Economic Forum, which opened today in the Algerian capital, Algiers, Al Meeza, who is also the Salam Bank managing director, said:  ”All financial institutions’ reports point to significant growth of assets and liabilities of Islamic banks in all Islamic countries, except in Iran. It is estimated that Islamic banks’ total assets is hovering around USD450 billion. It is highly expected that this figure would jump to about one trillion dollars by 2010.”

Al Meeza pointed out that Islamic banks are growing at higher rates than other banks and this is helping in creating conducive climate in the banking sector in most parts of the world. He said profit margins being achieved by Islamic banks and financial institutions are better than those being achieved by their traditional counterparts in many Arab countries, adding that the sharp increase in the number of Islamic banks and financial institutions reflects the deep interest in Islamic finance and this is pushing for tough competition on this market.

Al Meeza added: “Financial statistics and studies show that there is an upward trend in the number of people who prefer to deal with Islamic banks. Islamic financial institutions’ deposits total USD68 billion. The assets of Islamic financial institutions have also witnessed rapid growth. In 1997 it was USD20 billion but this figure grew to USD85 billion in 2005. The growth rate in the Islamic finance industry in the Gulf region, for example, is about 35%. There are about 270 banking and financial institutions in various parts of the world, including 34 in Bahrain, which is the main hub of these banking institutions in the Middle East region. The above statistics reflect a major switch from the traditional banking system to Islamic banking. This is why we see the free flow of investment in Sharia-compliant investment opportunities in the Gulf, Middle East and Asia.”

He pointed to three potential areas in Islamic banking as including bonds paid by mega infrastructure and real estate projects, investors’ deep interest in looking for variety of financial tools and asset management which is expected to witness a major boom due to the huge wealth stashed in the region, in addition to the fast growing markets of Islamic countries in Asia.

He said the issuing of Islamic bonds continues to attract investors from Europe, the United States and Asia, in addition to the countries in the Gulf region, which are enjoying unprecedented economic boom. “It is worth noting here that most Islamic bonds issued were rapidly covered totally due to the high demand for Islamic bonds, whose market has witnessed significant growth in 2007,” he said, adding that a number of institutions, particularly in the Gulf region, have been shifting to Islamic bonds to finance their projects.

“We believe this market will witness major growth in the next five years,” he said and attributed the increase in the volume of bonds to the high oil prices, which recently hit a record high of USD100 per barrel.

A report issued by the Citigroup Bank of the United States show that Islamic investment funds worldwide is estimated at about USD3.3 billion with growth expected to reach more than 25% in the next seven years. The report estimated the deposits of Islamic banks at about USD200 billion, with a steady growth expected to range from 10% to 20% per annum.

Khartoum, October 21, 2007

Al Salam Bank of Sudan has extend the Al Salam First Property Fund till end of October with a capital of US60 million. The move is aimed at opening up investment opportunity in Sudan’s real estate sector.

The fund is a unique mechanism for individual and corporate investors seeking to achieve medium term capital growth through investment in the Sudanese real estate sector in accordance with the Sharia complaint lease system of “Ijara”.

Minimum subscription has been pegged at US$5,000, which has a projected annual leasing dividend of 10% at least. Initial public offering (IPO) of the fund will start on September 1, 2007 for individuals and corporate bodies in Sudan and all Gulf states. The fund will last for four calendar years beginning from the date of closing the subscription and ending on the date of issuing its liquidation notice, but the duration is extendable to a maximum additional period of one calendar year.

The fund’s transactions, including investments and units, will be in US dollars but subscriptions by clients can be in any other major international currencies or in the Sudan Dinar (SD) as per the current exchange rate at the time of subscribing for shares at the Al Salam Bank. Those who want to convert their monies into currencies other than those acceptable to the fund will bear the risk of currency fluctuation of those currencies at the time of the conversion, the bank warned.

Commenting of the IPO, Mohammed Ali Al Abbar, Board Chairman of Al Salam Bank, said: “The bank decided to set up the Al Salam First Property Fund to provide for its clients investment opportunities in the Sudanese real estate market. With a capital of US$60 million, the fund is being managed by the bank itself in its capacity as the employee, while investors play the role of employer in a Sharia-compliant transaction that is based on the principle of “Ijara” (employment)”.

Al Abbar added: “The Al Salam First Property Fund is a closed-fund with independent financial status. It has been limited to a certain period and capital that can not be increased. Investors can not claim for refund during the period of its existence but can sell their shares to any interested buyer in a transaction where the Al Salam Bank, being the fund’s manager, will document the share transfer transactions according to the laid down rules and regulations of the fund.”

Also commenting on the fund, Mr. Hussein Mohammed Al Meeza, Al Salam Bank’s Deputy Board Chairman and Managing Director, said: “The Al Salam First Property Fund is a great investment opportunity for individuals and corporate investors, who want to achieve capital growth in a medium-term investment venture in the Sudanese real estate market. This opportunity has been boosted by the current economic boom in Sudan and the high demand for properties in the country. It provides a low-risk business opportunity with appropriate dividend. In addition, this investment, which is based on buying, selling or renting of property, is Sharia-friendly and very profitable in view of the current boom on the real estate market.”

Mr. Al Meeza cited the economic situation in Sudan today. He said the Sudanese economy, which achieved a remarkable growth of 9.3% last year is expected to achieve a tremendous growth of about 13% this year, according to Sudan Central Bank projection, adding that the growth was boosted by revenue from the high oil prices and the start of production by a number of new oil fields.

He also cited the 2006 Council of Arab Economic Unity report which says that Sudan’s economy had achieved a remarkable growth last year, placing second after Saudi Arabia in attracting investment in the Arab region. This is in addition to the 3% appreciation of the Sudanese Pound against the US dollar and 8% appreciation in purchasing power. He said the increase in oil and non-oil revenue had contributed immensely in achieving financial surplus in the past few years, adding that the current economic boom in Sudan makes investment in the country very feasible.

The Al Salam First Property Fund has lined up a number of real estate projects including the Al Sinad Properties, Presidential Villas, Saria Properties, Yasmeen Residence and many others.