People familiar with the matter said Estithmar Holding will acquire Shahba Bank of Syria and a 30 percent stake in Syrian International Islamic Bank. These will be the first foreign bank acquisitions in Syria since the former leader, Bashar al-Assad’s, downfall.
The move comes after the U.S. lifting of sanctions on Syria at the end of last year, which occurred as the central bank of the nation attempted to recapitalise a badly damaged 14-year war and Western sanctions on the banking system.
Three familiar sources indicated that the Estithmar, part of the Doha-based Power International Holding conglomerate headed by the Syrian-Qatari brothers Moutaz and Ramez Al-Khayat, will take a controlling 60 per cent stake in Shahba after acquiring the shares of Banque. Bemo Saudi Fransi and Ahli Trust Bank.
A source familiar with Shahba Bank’s perception said, “They have a very ambitious plan for the bank by enhancing the capital and facilitating communication with correspondent banks.”
Qatari partners already have another 30 percent of SIIB. Bemo, ATB, and SIIB did not immediately respond to requests for comment.
However, the acquisitions will have to be approved by the regulators. Syrian Central Bank Governor Abdelkader Husrieh stated that he could not comment as these matters remained confidential.
He informed Reuters that “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.”
The acquisitions would become part of a developing portfolio of projects and investments by the Khayats, whose companies already have contracts on power generation projects in Syria and to redevelop and expand Damascus airport.
Sources said ATB and Bemo would inject capital into their banks, exposed to a financial crisis in neighbouring Lebanon, using proceeds from selling their interests in Shahba Bank.
