Jordan Daily – As part of its strategic expansion plan both within and outside Jordan, Arab Jordan Investment Bank (AJIB) signed a Memorandum of Understanding (MoU) on Wednesday, December 11, 2024, to enter into a management contract with Gulf Commercial Bank (GCB) in Iraq.
In a statement seen by Jordan Daily, the agreement, set to be finalized soon, also grants AJIB the right to acquire up to a 20% stake in GCB over the next two years.
The partnership aims to support the growth trajectory of Gulf Commercial Bank, enabling it to achieve its strategic goals and enhance its role in advancing Iraq’s banking sector. GCB will leverage AJIB’s extensive expertise in banking services and its wide-ranging financial products to offer comprehensive and advanced services to its clients.
Founded in 1999 as a private joint-stock company, Gulf Commercial Bank offers full-fledged banking services across Iraq through its 19 branches. The bank caters to various segments of society, utilizing digital banking technologies. Additionally, GCB plays an active role in supporting Iraq’s national economy through its contributions.
Commenting on the MoU, AJIB Chairman Hani Al-Qadi said, “We are proud of our strategic partnership with Iraq’s Gulf Commercial Bank. This partnership is a crucial step toward strengthening its presence in the Iraqi market. We are committed to leveraging our extensive experience in banking and financial advisory services to provide the necessary support and innovative solutions. This will contribute to GCB’s sustainable growth and its role in enhancing the financial sector in Iraq.”
GCB Chairman Mohammed Saleh Faraj expressed his optimism about the agreement, saying, “We are excited to collaborate with AJIB. Their extensive expertise in providing comprehensive and advanced banking services, coupled with their strong financial standing, has been instrumental in making this agreement possible. We are confident that this partnership will help us achieve optimal results and solidify GCB’s position in the Iraqi banking market.”
Al-Qadi also highlighted that the MoU aligns with AJIB’s broader strategy of expansion, which has accelerated over the past decade following a series of successful acquisitions. These included HSBC’s banking operations in Jordan in 2014, the National Bank of Kuwait’s Jordanian operations in 2022, and Standard Chartered’s Jordanian business last year. Additionally, AJIB established an Islamic leasing company, Al Kawthar Leasing. This latest agreement underscores the bank’s commitment to enhancing its regional presence and partnerships.
