Bahrain’s Bank Alkhair sells stake in Turkish investment firm

Bahrain’s Bank Alkhair has sold its majority stake in Turkish investment firm Alkhair Capital a decade after it entered the market, as the Islamic lender streamlines its business lines and exits some markets.

The lender received approval to transfer its 95.79 per cent shareholding of Alkhair Capital to Ankara-based A1 Capital, according to a filing with Turkey’s capital market regulator. It did not disclose a value of the transaction.

Bank Alkhair entered the Turkish market in 2007, acquiring an initial 75 per cent stake in the investment firm, but it has faced a challenging business environment over the past year.

In February, the firm said it would cease Islamic banking activities in Bahrain and convert the loss-making business into a holding company.

It has also sold its stake in Pakistani lender Burj Bank, while focusing on other markets. Last year, the firm upgraded its business licence in the United Arab Emirates and expanded its capital markets business in Saudi Arabia.