Qatar’s Estithmar Holding Eyes Major Stakes in Syrian Banks
Qatar-based investment company Estithmar Holding, part of the Power International Holding conglomerate led by Syrian-Qatari brothers Moutaz and Ramez Al-Khayat, is making significant moves in Syria’s banking sector. As reported by Reuters, the conglomerate is preparing to acquire a controlling interest in Syria’s Shahba Bank, along with a 30% stake in the Syrian International Islamic Bank (SIIB).
First Foreign Investment Since Regime Change
This move signifies the first foreign investment in Syria’s banking sector since the regime change that saw the ousting of Bashar al-Assad. The potential acquisitions follow the lifting of US sanctions on Syria last year, opening up opportunities for investment and development in the war-torn country’s banking sector.
The Syrian central bank, in the wake of over a decade of conflict and restrictive measures from Western governments, has been eagerly seeking means to recapitalise its banks. Estithmar, with its planned acquisitions, appears to be providing much-needed capital inflow.
Details of the Acquisition
Estithmar is set to secure a controlling 60% stake in Shahba Bank, acquired through the purchase of shares currently owned by Banque Bemo Saudi Fransi and Ahli Trust Bank (ATB). A source familiar with the bank’s internal discussions has indicated that Estithmar has a very ambitious plan for the bank, including enhancing the capital and facilitating communication with correspondent banks.
Additionally, SIIB already has a 30% stake held by Qatari investors, according to sources cited by Reuters. However, representatives from Bemo, ATB, and SIIB have yet to respond to requests for comment on the matter.
Awaiting Regulatory Clearance
The proposed deals are still pending regulatory clearance. Central Bank Governor Abdelkader Husrieh, citing confidentiality, stated he could not discuss the transactions. However, he expressed that 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.
Sources have also indicated to Reuters that proceeds from selling Shahba Bank shares would enable ATB and Bemo to boost their capital reserves. Both institutions have faced financial strain due to exposure to Lebanon’s ongoing banking crisis. The move by Estithmar, therefore, could provide much-needed relief and stability in the region.
While the implications of these deals are yet to be fully realised, the move by Estithmar signals a significant shift in Syria’s banking sector and can potentially pave the way for further foreign investment.
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