Arab Jordan Investment Bank Signs Memorandum of Understanding for Management and Partnership Agreement with Gulf Commercial Bank in Iraq
As part of its strategic and operational plans to expand within and beyond Jordan, the Arab Jordan Investment Bank (AJIB) signed a memorandum of understanding (MoU) on Wednesday, December 11, 2024, to finalize a management agreement with the Gulf Commercial Bank in Iraq. The agreement will also grant AJIB the right to acquire up to a 20% stake in the bank over two years.
The forthcoming agreement aims to support the growth of the Gulf Commercial Bank, enabling it to achieve its strategic goals and solidify its leadership in advancing Iraq’s banking sector. This will be achieved by leveraging AJIB’s extensive expertise in the banking sector and providing comprehensive and advanced financial products and services.
The Gulf Commercial Bank, established in 1999 as a Private Joint Shareholding Company, offers full-service banking through its 19 branches across Iraq. It provides services to all societal segments through advanced digital banking technologies. The bank has also made significant contributions to supporting Iraq’s national economy.
Commenting on the MoU signing, AJIB Chairman Mr. Hani Al-Qadi said: “We take pride in our strategic partnership with the Gulf Commercial Bank in Iraq. We fully understand the significance of this collaboration, which represents an important step in strengthening its presence in the Iraqi market. We are committed to leveraging our vast expertise in banking and financial advisory services to provide the necessary support and innovative solutions. This will help the bank achieve its vision for sustainable growth and enhance its role in developing Iraq’s financial and economic sectors.”
Gulf Commercial Bank Chairman Mr. Mohammed Saleh Faraj expressed his delight at signing the MoU, stating: “We look forward to working closely with the Arab Jordan Investment Bank. We are confident in its capabilities and extensive experience in delivering comprehensive and advanced banking services. The bank’s sound financial position has contributed to the success of this agreement, which will enable us to achieve the best outcomes and strengthen the Gulf Commercial Bank’s position in the Iraqi banking market.”
Al-Qadi highlighted that the signing of this MoU is part of AJIB’s broader expansion strategy, which has accelerated over the past decade through a series of successful landmark acquisitions. These include acquiring HSBC’s banking operations in Jordan in 2014, National Bank of Kuwait’s operations in Jordan in 2022, and Standard Chartered’s operations in Jordan last year. Additionally, AJIB established an Islamic leasing company; “Al Kawthar Leasing Company”. This agreement underscores the importance AJIB places on enhancing its regional presence and partnerships.