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Dubai: The Central Bank of Bahrain has approved in principle the first Sharia-compliant bank. Focused on the investment, financing and service needs of the energy sector, the bank is now under formation with a planned paid-up capital of $750 million, a statement said on Tuesday.
"First Energy Bank is the latest strategic business concept from Gulf Finance House, designed to capitalise on the huge anticipated demand for investment in the global energy industry," the statement said.
According to the International Energy Agency's (IEA) World Energy Outlook 2007, the energy infrastructure for Mena alone requires approximately $56 billion per year from now through 2030. This implies the region's energy sector will need $280 billion in investment within the next five years.
Opportunity
Esam Janahi, chairman of the founding committee for First Energy Bank, said: "A great opportunity comes from the demand that is projected for investment in the global energy sector over the next 25 years. First Energy Bank is a response to this imperative and we're proud to be associated with a Sharia banking concept that will be the first to offer investment, financing and service solutions to the energy industry. The establishment of First Energy Bank shows our commitment to the energy sector."
According to IEA estimates, world energy demand will increase by 1.8 per cent annually through 2030. Demand is anticipated to grow from 83.6 million bpd in 2005 to 91.3 million bpd in 2010 and to 116.3 million bpd in 2030.
Natural gas demand is expected to rise by two per cent per year over this period. To meet this demand, $4.3 trillion of new investment will be required globally in the oil sector through 2030, and approximately $3.9 trillion is projected to be invested in the gas sector.
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