About
Esterad Bank

Prudently Diversified Investment Portfolio

Esterad Bank is a prominent Shari'ah-compliant alternative asset manager, with a primary
focus on income-yielding real estate assets and selective private equity investments.

Commencing operations in October 2005, Esterad Bank pioneered the provision of venture capital investment opportunities and dedicated support for the SME sector in the MENA region, within an Islamic investment banking framework. This approach underlined the commitment of the Bank’s founding shareholders to partner with like-minded investors in channeling funds towards innovative investment opportunities that would stimulate the growth and development of regional economies.

In light of subsequent economic, financial and socio-political crises, Esterad Bank progressively realigned its investment strategy and business model to face the challenges of new economic norms and changing market dynamics.  Unfortunately, over time, the Bank’s capital was largely depleted due to early investments that were adversely affected by the challenging market environments during the Great Financial Crisis, the Arab Spring and the COVID pandemic.

The Turnaround

 In 2022, Esterad Investment Company acquired the Bank from its original shareholders and embarked on a significant operational and financial restructuring.  Under the new ownership, the Bank has been able to streamline its operations, raise capital through the issuance of perpetual sukuks, accelerate the exit of old investments that had been adversely affecting the Bank’s financial performance and resolve many outstanding investor issues. 

Today, the Bank is a prominent Shari'ah-compliant alternative asset manager, with a primary focus on income-yielding real estate assets and selective private equity investments. Esterad Bank’s objective is to generate consistent returns with calculated risk from high-quality, rigorously-investigated, efficiently-structured and well-managed investment opportunities.

Esterad Bank operates under an Islamic wholesale banking license from the Central Bank of Bahrain. The Bank benefits from the financial backing and support of a prominent group of regional shareholders, an experienced team of industry professionals, and a close-knit network of strategic business partners.

The Bank’s investment portfolio is prudently diversified by geography and sector in order to minimize concentration risk and better withstand market volatility, with core markets being the GCC and MENA regions, Turkey, USA and UK. Esterad Bank has also developed a distinctive capability and competitive edge in key sectors such as healthcare, agriculture and food, fertilizers and income-yielding real estate. The Bank adds value to its portfolio companies through active participation and support, in order to maximize the exit potential of its investments.