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, have formed an agribusiness alliance.
The two companies today signed a strategic memorandum of understanding (MoU) with regard to this.
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 organization’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
Yousif Abdulla Taqi, board member and chief executive officer of Al
Salam Bank-Bahrain, said: “We are honoured to announce our partnership
with Charoen Pokphand Group, a world-renowned food and agricultural
company, and leverage on their vital technical expertise in the
industry. This alliance falls 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.
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 Charoen Pokphand 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 the Mena region. 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
CP Group will provide a highly specialised management team with
extensive track record in the agricultural and food industry for this
venture. –TradeArabia News Service