Bahrain’s GFH Financial Group may merge with Dubai-based Shuaa Capital. GFH has been in discussion with several financial institutions, including Shuaa Capital, for potential majority shares acquisitions of those financial institutions and/or mergers. A merger of the two firms would form a group with a market capitalization of about $2.5 billion and interests ranging from retail and investment banking to broking and property development. Both companies were prominent in the region a decade ago, before they were forced to shrink by the global financial crisis. GFH had earlier tied up with Abu Dhabi Financial Group (ADFG)to set up an Islamic bank called ADCorp in Abu Dhabi’s new financial free zone with initial capital of $100 million. And later ADFG bought a 48.36% stake in Shuaa, which has a market capitalization of about $535 million. Similarly, Shuaa bought 14% of Bahrain’s Khaleeji Commercial Bank, in which GFH owns 47%.
