Qatari company to acquire major stakes in Syrian banks

RIYADH (Reuters) — Qatari group Estithmar Holding is set to take control of Syria’s Shahba Bank and take a 30 percent stake in Syrian International Islamic Bank, four people familiar with the matter said, marking the first foreign banking acquisitions in Syria since the fall of former leader Bashar al-Assad.

The move, which follows the lifting of US sanctions on Syria late last year, comes as the country’s central bank tries to recapitalize a banking sector severely impaired by 14 years of war and Western sanctions.

Estithmar, part of the Doha-based Power International Holding conglomerate led by the Syrian-Qatari brothers Moutaz and Ramez Al-Khayat, will take a controlling 60% stake in Shahba after buying out the shares of Banque Bemo Saudi Fransi and Ahli Trust Bank, according to three of the people.

“They have a very ambitious plan for the bank by enhancing the capital and facilitating communication with correspondent banks,” one of the sources, who is familiar with Shahba Bank’s thinking, said.

Another 30% of SIIB is already held by Qatari partners, according to a person with direct knowledge of the matter.

Bemo, ATB and SIIB did not immediately respond to requests for comment.

The acquisitions are still subject to regulatory approval.

Syrian Central Bank Governor Abdelkader Husrieh said he could not comment as these matters remained confidential.

“That said, the Central Bank welcomes any potential restructuring or market-led initiatives that strengthen the stability, resilience, and sound governance of the banking sector, provided they fully comply with applicable laws and regulatory requirements,” he told Reuters.

The acquisitions would add to a growing portfolio of projects and investments by the Khayats, whose companies already have contracts for power generation projects in Syria and to redevelop and expand Damascus airport.

The sources said ATB and Bemo would use proceeds from the sale of their stakes in Shahba Bank to inject capital into their own banks, which have been hit by exposure to a financial crisis in neighboring Lebanon.