Bahrain’s Gulf Finance House (GFH) said on Wednesday it had taken a provision of $300 million over its exposure to a Dubai development project.

“Gulf Finance House … will take a $ 300 million (non-cash) charge against its proprietary Dubailand position and correspondingly reduce the liabilities on its balance sheet by $290 million,” the company said in a statement.

“GFH has no remaining material exposure to Dubai.”

Like a number of Bahrain-based investment houses, GFH has faced losses since the end of a regional property boom late last year swept away its business model of raising financing for large infrastructure and real estate projects.

The Islamic lender has raised about $500 million in fresh financing this year through a rights issue and two convertible murabahas, an Islamic financing tool, to repair its balance sheet after posting four consecutive quarterly losses.

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