The True Story Behind The Creation Of INVESTCORP

INVESTCORP – (05) Retention of the Law Firm

By November 1980, the project’s feasibility study was complete, paving the way to proceed to the next step. The next step was the retention of a reputable law firm in Bahrain to prepare the ground for the incorporation of INVESTCORP. Because of his familiarity with Bahrain, Mr. Kirdar was instructed by Dr. Hashim to find the best law firm there to be retained by the AMF. The law firm of Hatim S. Zu’bi was retained. Thus, on November 19, 1980, Mr. Zu’bi wrote to the President of the AMF a detailed letter outlining the scope of his work. The following is an extract from Zu’bi’s letter:

H. E. The President,
Arab Monetary Fund,
Abu Dhabi, UAE November 19, 1980

Re: Incorporation of an Arab Investment Company

Mr. Nemir A. Kirdar, Advisor to the Arab Monetary Find (AMF), has kindly appraised me of the special study which has been prepared under the auspices of AMF for the promotion and incorporation of an Arab company whose objects will be personalized portfolio management, establishment and management special investment funds and investments in general…

…it is a source of pride for me to note the sponsorship by AMF of such an important Arab projects…

…As you will appreciate, it will not be practical nor in the interest of AMF or ourselves to fix our fees at this stage as the foregoing services will entail a great deal of work, investigation and consideration of various legal aspects…

…Should our proposal be acceptable to Your Excellency, as I understand that the AMF is willing to retain us for the above services and pay our fees as finally agreed therewith, we will be grateful if you would express your approval by signing the attached copy of this letter and returning the same to us so that we may proceed with the work.

(For full content of the letter, See: Appendix-05)

On November 23, 1980, Dr. Hashim, in his capacity as President of AMF, accepted Mr. Zu’bi’s proposal and forwarded the signed contract together with a covering-letter on AMF stationary.
(See: Appendix-05)