Ridge Islamic Capital seeks to capitalize on Egypt’s fledgling Islamic finance industry (By IFN)

Thursday 20^th September 2012

EGYPT: Newly launched Ridge Islamic Capital has outlined an aggressive growth strategy as it aims to capitalize on Egypt’s largely untapped market for Islamic finance. The firm was set up following Dubai-based Ridge Solutions International Holdings’ acquisition of investment banking and asset management company El Rashad. El Rashad, which operated under a conventional finance structure, will now convert its assets to comply with Shariah, with the entity now known as Ridge Islamic Capital. Ridge Solutions will also inject US$100 million in capital in Ridge Islamic Capital, which the firm will use to expand its business and launch products including a US$150 million Islamic fund-of-funds. The firm seeks to leverage the Egyptian government’s target of increasing the domestic Islamic finance industry’s market share to 35% from around 5% currently. In a statement, Miguel Henriques, the chief executive of Ridge Solutions, said that: “With a population that exceeds 83 million and the government-set target to increase Shariah compliant finance, Egypt represents an attractive proposition for us to present and differentiate our products from modern and traditional Islamic banking.” Meanwhile, Ridge Islamic Capital is also reportedly evaluating potential acquisitions as it seeks to add brokerage services to its capabilities. Ridge Islamic Capital and Ridge Solutions are owned by Angola-based Ridge Solutions Group.