MoU Signed Between Venture Capital Bank and Commercial Real Estate Company with the Biggest Financing and Development Institution in the Kingdom of Morocco
A Memorandum of Understanding (MoU) has recently been signed in the Moroccan capital Rabat by a Gulf- Moroccan alliance to participate in different fields of investment activities which are plentiful and still untapped in the Kingdom of Morocco.
An alliance of Gulf investment institutions, comprising Venture Capital Bank, which is an Islamic investment Bank in Kingdom of Bahrain, and the Commercial Real Estate Company, State of Kuwait, has been established with the Caisse De Depot et De Gestion in the Kingdom of Morocco on the basis of co-operation and partnership to invest in joint projects between the three establishments and their strategic investors in different economic sectors in the Kingdom of Morocco.
The signing ceremonies for the MoU were held under the auspices of Mr. Mustafa Al Bakouri, Director General of (CDG Development) , in the presence of representatives of the embassies of the Kingdom of Bahrain and the State of Kuwait in Rabat. The agreement was signed by Dr. Ahmed Al Jawhary, Chief Investment Officer Venture Capital and Business Development, on behalf of Venture Capital Bank, and Mr. Abdul Aziz Al Moosa, Chief Executive Officer Investment on behalf of the Commercial Real Estate Company. Representing the (CDG Development) in Morocco was Mr. Mohammed Ouanaya and Mohammed Bastos, General Managers and Members of the Board of Directors of the (CDG Development).
The MoU provides that the alliance between GCC establishments and the (CDG Development) would exchange investment opportunities in the Kingdom of Morocco and joint investments in many available opportunities through the institutional channels of the (CDG Development), provided that the CDG Development would provide the necessary support and facilitate the investment process for such opportunities. In return, Venture Capital Bank and Commercial Real Estate Company alliance and their partners and investors would provide all technical, financial and administrative capabilities and means and the requisite expertise to exploit such opportunities.
Commenting on this development, Mr. Abdullatif Mohammed Janahi, Chief Executive Officer of Venture Capital Bank, said: "There are serious endeavours by many financial and commercial establishments in the Arabian Gulf region to strengthen the links and bonds in different areas between the Gulf countries and the fraternal Kingdom of Morocco. Investment opportunities which are available in the Kingdom of Morocco are considered one of the channels of economic co-operation and integration. We, at Venture Capital Bank, are keen to bolster these bonds through active participation in different sectors of the Moroccan economy through direct investments or in partnership with local institutions.
The current economic policies and plans of the Moroccan government converge with those of Venture Capital Bank, where the Bank focuses on investment in real estate and property opportunities and on promising and emerging enterprises, as well as on the acquisition of companies and providing investment advisory services. This agreement will open a main channel and a systematic mechanism for Venture Capital Bank and its allies to expand in the Moroccan market.
The MoU will provide the means for the Bank to realise its investment objectives and policies and at the same time means of co-operation and alliance with the (CDG Development), which is considered one of the leading investment institutions in Morocco and a patron of many national development and investment projects in different sectors of the local economy of the Kingdom."
CDG is a public financial institution, that was established in 1959. Its main role is in holding, preserving and managing savings resources which require a special care in their nature or source. CDG manages 35% of the institutional savings reserves in the Kingdom of Morocco and manages more than US $ 10 billion in the form of assets. In addition to the direct investments managed by CDG, it actively and aggressively takes part in the Moroccan economy through its branches and institutions which constitute an important group the activities of which extend to reach all fields and sectors in the Kingdom of Morocco.
CDG group, considering its powers and financial leverage and the nature of its business activities, constitutes a vital tool for development and a major patron for development of the local market and its stimulation and encouragement.
In this framework, CDG is seeking to enhance its financial role, particularly as an investment bank, which is currently playing through its activities based on asset management and investment in venture capital, development capital, financial engineering and banking and financial services, as well as its role on the primary bond market and on the local stock exchanges. CDG has a niche market and a leading role on the Moroccan scene and enjoys an excellent reputation that gives confidence and security to the financial markets through its political leverage and economic clout, in addition to its vast experience and unrivalled efficiency.
Dr. Ahmed Al Jawhary, said: "Signing this MoU and the newly established partnership and investment agreement between Venture Capital Bank and the Commercial Real Estate Company on the one hand and CDG Development in the Kingdom of Morocco on the other hand is a bold initiative and a practical demonstration of the parties' keenness to make every possible effort through institutional channels with high professionalism to link financial resources and the banking
and investment expertise and experience of our Gulf institutions with the promising investment opportunities in the Kingdom of Morocco.
In this framework, the Venture Capital Bank and the Commercial Real Estate Company alliance is seeking to take part in the vigorous and ceaseless efforts made by decision makers on government and leadership levels to strengthen the bonds and links between different sectors in the Arabian Gulf countries and the fraternal Kingdom of Morocco."
Dr. Al Jawhary added: "Venture Capital Bank and the Commercial Real Estate Company are seeking, through the MoU with CDG, to actively participate in different sectors of the Moroccan economy by structuring and managing investment opportunities, whether through direct investments or through partnership with local establishments and offering them to the strong base of their clients. Economic and investment strategies of the CDG and its affiliates at present converge with the strategies and policies of the Venture Capital Bank and the Commercial Real Estate Company in the Kingdom of Morocco, where the alliance is focusing on investment in real estate and property opportunities of different kinds (housing, tourism, commerce and logistics) as well as on emerging and promising projects and business development."
Venture Capital Bank - is the Middle East and North Africa's (MENA) first specialist venture capital and private equity bank regulated by Bahrain Monetary Agency (BMA) with a paid up capital of US$ 66 million and a GCC widespread shareholder base comprising 80 high net worth individuals and corporate investors.
VC Bank, headquartered in Bahrain, is a shari'ah-compliant investment bank whose focus is to invest in fundamentally- strong, undervalued, finance-seeking small to medium enterprises (SMEs) with market and revenue growth potential, in addition to a vast array of specialised and themed real estate investment opportunities with economic and social value addition dimension.