Al Salam Bank-Bahrain has unveiled a pioneering Shari’a-compliant investment in the field of hospitality; an investment in a residential and commercial tower near the Holy Mosque in Mecca.
Nabeel Al Tattan, Executive Vice President and Head of MENA, stated that GCC countries are heavily investing in the hospitality industry which witnessed a good performance over the past years.
Al Tattan pointed out that the Islamic Hospitality industry has experienced rapid growth which led to greater investment opportunities, many of which are being considered Al Salam Bank-Bahrain.
He said that the bank was able to finalize a deal by which the bank has acquired leasehold interest in a residential and commercial tower for 19 Hijri years. The tower is strategically located meters away from King Abdul-Aziz Gate, the closest to Holy Kaabah.
The deal entitles the bank to utilize the tower’s 12 residential floors, Al Tattan said, pointing out that the tower itself forms an Islamic architectural masterpiece providing highest standards of hospitality and hotel services and is distinguished by having the advantage of overlooking the Holy Mosque. The tower is a complete and integrated residential facility that includes all necessary utilities like clinics, a business center and a conference hall.
Al Tattan said the tower comprises of 23 floors structured according to international standards to provide utmost luxury to its guests. The 12 floors which the bank acquired the leasehold interest include 28 residential units on each floor for a total of 336 units.
The tower also includes a huge reception hall, along with two floors dedicated as prayer areas which are linked audio-visually to the Holy Mosque. Another two floors have been allocated for parking which themselves are connected to the Suq’s tunnel and to the other main streets around the Holy Mosque.
The tower also includes a commercial centre and restaurant hall. 12 lifts have been installed in the tower to ease movement in and out of the tower.
Al Tattan asserted that the bank is keen to diversify its investment portfolio by including such type of investments. He pointed out that the bank is considering potential partnerships and will operate the tower as a five-star hotel along with the possibility of issuing Sukuk Intifaa for the tower.
Mr. Yousif Taqi, CEO and Board Member, stressed on the role played by the MENA Investment Team in sourcing this deal and said that the soundness of projects, which the bank is engaged in, is its utmost priority as this will ensure that investors are provided with superior returns.
The bank’s investment policy is based on a thorough study of all relevant aspects in order to verify, to the most possible extent, the potential of having superior returns that meet investors’ aspirations and positively contribute to the bank’s market value. This, he said, would lead to achieving the bank’s vision of becoming a competitive international bank.
