Bahrain-based Ithmaar Bank launched the $ 1 billion Ithmaar Kazyma CIS Energy fund in partnership with Kazyma Capital Management of Kazakhstan.
The fund is likely to run for 10 years and will target the Commonwealth of Independent States (CIS) strong demand for investment in the energy and related sectors.
Investing in another oil producing country is a way of offsetting oil risk in the Gulf States analysts said.
Oil prices have reached record levels, touching $ 127 a barrel with expectations of a continued upward trend in prices.
Michael P. Lee, CEO of Ithmaar Bank, and Arman Dunayev, CEO of Kazyma, launched the fund at a signing ceremony yesterday in Sharm El Sheikh.
“Ithmaar Bank’s vision to become the premier financial services groups operating from the Middle East has seen us explore avenues for growth the world over. To further their lead in the energy sector the Government of Kazakhstan (is) embarking on an ambitious plan to double oil production and triple natural gas output by 2015,” Lee added.
“Many of the CIS countries are at a crucial juncture on their development as they prepare for greater integration into the global economy. Support from the private sector will be essential in maintaining the momentum,” said Dunayev.
The economy of Kazakhstan grew by 8.5 per cent last year and has experienced annual economic growth between eight and 10 per cent year-on-year since 2001. Kazakhstan has reserves of 39.6 million barrels of oil and holds 3.3 per cent of the world’s reserves, Ithmaar Bank said in a Press statement.
Khalid Abdulla-Janahi, Chairman of Ithmaar Bank, is one of this year’s World Economic Forum’s five Co-Chairs. The World Economic Forum runs from the 18-20 May
