Flip through the latest issue of Gulf Weekly.
Bahrain-based Al Salam Bank and Charoen Pokphand Group (CP Group), one of the largest food and agricultural companies in the world based in Thailand, signed a strategic Memorandum of Understanding (MoU).
This alliance marks the bank's entry into the agricultural industry, which falls in line with Al Salam's diversification strategy. For CP Group, this marks the organisation's business expansion into the Middle East and North Africa (MENA) region.
Al Salam and CP Group will jointly identify suitable agribusiness ventures that will generate attractive risk-adjusted returns while playing a proactive role in addressing food security in the region.
The alliance will initially carry out detailed feasibility studies to gauge the viability in various target agribusiness sectors, including livestock, staple food, aquaculture, and perishables. The studies will comprehensively cover technical, financial, market and operational due diligence, in order to identify target markets in the MENA.
Yousif Abdulla Taqi, board member and CEO of Al Salam Bank-Bahrain, stated: "We are honoured to announce our partnership with CP Group and leverage on their vital technical expertise in the industry. This alliance is in line with Al Salam's mission to provide unique investment opportunities that meet investors' objectives and risk appetite.
"We are also proud to support the region in addressing the critical issue of food security. Although Bahrain will be used as a hub, our target market will cover the MENA region in its entirety. The projects will play an important role in creating job opportunities for Bahrainis."
Eam Ngamdamronk, vice-chairman of CP Group, said: "We are delighted to have formed a strategic partnership with Al Salam Bank as this MOU signifies CP Group and Al Salam's intent to establish Bahrain as the 'Halal Food Hub' of MENA. This alliance represents CP Group's first joint venture with an Islamic bank and will serve our vision to become 'The Kitchen of the World'."
The proposed venture is envisioned to be an integrated halal food company that will invest in farming, food processing, packaging, and distribution. CP Group will provide a highly specialised management team with extensive track record in the agricultural and food industry.
