Dubai Islamic Bank (DIB), in partnership with ABC Islamic Asset Management of London, has signed a leasing transaction agreement with the AAA-rated General Electric (GE) of the United States. The transaction involves the purchase of machines and engineering equipment by DIB and ABC and leased under Sharia principles to General Electric.
“We intend to source more deals with investment grade companies from around the world,” Aref Kooheji, DIB’s executive vice president for Investment Banking said. “We pay special attention to the elimination of risk by means of watertight structures that provide protection against residual risk during the term of the lease.”
“This is a landmark deal. If General Electric is prepared to go the Islamic financing route, then it’s hard to see how similar multinationals will not avail themselves of this excellent financing facility in the future. This will give the Islamic industry a tremendous boost,” Duncan Smith, ABC Islamic Asset Management’s CEO, said.
Established on 1975, Dubai Islamic Bank is considered to be the first Islamic bank in the world that has implemented the principles of Islam in all its practices. The economic and business philosophy of Islam encourages generation and sharing of profits. However, it forbids giving or taking of interest. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
