MANAMA: Bahrain-based Islamic investment firms Tharawat and International Investment Bank (IIB) yesterday announced the acquisition of equity in Saudi fast food brand Hungry Bunny.

The two, along with other GCC investors, have jointly purchased 49 per cent stake in the fast food restaurant chain, with IIB becoming a major shareholder. Saudi businessman Mohamed bin Husain Al Dosary remains the majority stakeholder with 51pc stake.

Registered in the US, European Union, Middle East and the GCC states, Hungry Bunny has 38 outlets across Saudi Arabia, Bahrain, Kuwait and Oman under worldwide franchise agreements. Employing around 500 people, the brand saw sales of more than 52 million riyals ($13.86m) and 18pc profit margin in 2011.

According to Tharawat’s chief executive Arif Mohamed Al Alawi, rate of return on the investment is expected to be 25pc, with dividend payout seen at 8pc per annum.

“Saudi Arabia’s fast food restaurants business is growing at an annual rate of 5pc, which is expected to continue for the next five years,” Mr Al Alawi said.

“The company is currently building a dedicated high-tech facility for processing different kinds of meat,” he said.

Describing the transaction as the start of a strategic partnership with Tharawat, IIB chief executive Abid Al Zeera said he expected more joint business deals in the future.

Expressing confidence that the two banks would bring in expertise, boosting sales and profits, Mr Al Dosary said the plan was to widen Hungry Bunny’s investor base through a public offering on the Saudi stock market during the next four years.