Tuesday, 02 January 2024 12:17 GMT

AJIB Signs Strategic Partnership Agreement With Iraq's Gulf Commercial Bank


(MENAFN- Jordan News Agency)


Amman, Dec. 12 (Petra) -- Arab Jordan investment bank (AJIB) has signed a landmark memorandum of understanding (MoU) with Gulf Commercial Bank of Iraq, paving the way for a management agreement and potential equity Acquisition of up to 20% over the next two years.
The strategic partnership aims to leverage AJIB's extensive banking expertise to strengthen Gulf Commercial Bank's market position and advance Iraq's banking sector through the introduction of comprehensive financial services and products.
Gulf Commercial Bank, established in 1999 as a Private Joint Shareholding Company, currently operates 19 branches across Iraq, serving diverse customer segments through its digital banking platform. The bank has established itself as a significant contributor to Iraq's economic development.
"This strategic partnership marks a crucial milestone in strengthening our presence in the Iraqi market," said AJIB Chairman Hani Al-Qadi. "We are committed to deploying our expertise in banking and financial advisory services to support Gulf Commercial Bank's sustainable growth objectives and enhance its role in Iraq's financial sector."
Mohammed Saleh Faraj, Chairman of Gulf Commercial Bank, welcomed the partnership: "AJIB's proven track record in delivering comprehensive banking services, coupled with their strong financial position, makes them an ideal partner.
This collaboration will significantly strengthen our position in the Iraqi banking market."
The agreement represents the latest step in AJIB's regional expansion strategy, following several successful acquisitions including HSBC's Jordan operations (2014), National Bank of Kuwait's Jordan operations (2022), and Standard Chartered's Jordan operations (2023). The bank also recently established Al Kawthar Leasing Company, its Islamic leasing subsidiary.
The partnership is subject to regulatory approvals and is expected to be finalized in the coming months.

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