Lesha Bank: A Lucrative Deal for Kazakhstan

The Baiterek holding company has completed the sale of Bereke Bank JSC to Qatari Lesha Bank. The parties successfully agreed upon all conditions. The deal received all the necessary approvals from Kazakhstan's regulators. Orda has looked into the matter.

Bereke Bank (formerly Sberbank Kazakhstan) has stabilized its situation despite numerous difficulties associated with Sberbank's exit from Kazakhstan's market in 2022. Experts note that with the support of Qatari investors, the bank should expect considerable growth. 

In February, an announcement appeared on the Qatar Stock Exchange website. Lesha Bank had agreed to buy a bank from Baiterek National Holding. It was immediately apparent that Bereke Bank was the bank, and there was no doubt that the deal would take place. 

Lesha Bank is a public company listed on the Qatar Financial Center. One of its major founders is Sheikh Hamad bin Khalifa Al Thani, the father of the current Emir of Qatar. Sheikh Hamad is known for his investment initiatives and strategy to diversify the country's economy, which has historically relied on oil and gas. This policy led to the creation of the world-famous investment fund -- Qatar Investment Authority (QIA).

Sheikh Faisal bin Thani Al Thani heads the bank's board of directors. If one were to believe official sources, he is a Qatari royal Al Thani family member. Sheikh Faisal is, among other things, an authoritative figure in the Qatar Investment Authority, Qatar's sovereign investment fund. He oversees investments in Africa and Asia. 

In 2022, Lesha Bank was recognised in four categories of the Euromoney Market Leaders rankings, including leadership in investment banking in Qatar. The bank was also praised for its corporate social initiatives, digital solutions, and Islamic finance options. 

For the Qataris, buying the tenth-largest bank in Kazakhstan by assets is not only an opportunity to enter the banking market of Kazakhstan and Central Asia. It is also a mechanism for greater oversight over the financial flows associated with the planned multi-billion dollar investments in Kazakhstan. It is common practice for such investors to assume supervision of a financial infrastructure to support their subsequent investments.

For Kazakhstan, This outcome is crucial. Qataris are known as successful and long-term investors around the world. This year alone, Qataris have already announced plans to invest in multi-billion dollar projects in the telecom, gas, and energy sectors in Kazakhstan.

If the investments are successful, interest from other Qatari investors should follow. Qatar's success could also spur increased interest from investors from the UAE, Saudi Arabia, and other countries with high investment activity. 

Original Author: Maria Kravtsova