Dubai Financial (DF), a subsidiary of the Dubai Investment Group (DIG) – the global financial investor of Dubai Holding - has taken a 40 per cent stake in Malaysia’s oldest Shar’iah compliant bank. The transaction is subject to approval of Bank Negara for the shares to be issued free from encumbrances.
Bank Islam, Lembaga Tabung Haji and DF signed three agreements, constituting a shareholders agreement, between BIMB Holdings Berhad, Lembaga Tabung Haji (LTH), Dubai Financial LLC and Bank Islam Malaysia Berhad; a subscription agreement between the bank, its holdings company and majority shareholder Tabung Haji; and a separate subscription agreement between the bank, its holdings parent and Dubai Financial LLC.
DIG CEO Soud Ba’alawy commented: “We believe in the Malaysian market and this acquisition provides an excellent opportunity for Dubai Financial to add one of the oldest and most reputable Islamic institutions to our portfolio, thus enabling Dubai Financial to build on its strategic direction to grow within the Islamic banking sector.”
Dato’ Noorazman A.Aziz, Group Managing Director of BIMB Holdings, stated:
“The agreements today will cast BIMB as a leading domestic and international Islamic financial player, while at the same time, provide recapitalization for the bank.”
“We are optimistic this will push Malaysia into the forefront of Islamic banking, helping this country realize its vision to be a hub. While it allows BIMB to tap into new markets, specifically in the Middle East, the new entity will also be recapitalized and explore other diversified financial services such as investment banking and asset management.
“In addition, with the involvement of Dubai as a shareholder of BIMB, Bank Islam will now become the official banker for the Middle Eastern group to grow its financial services base,” he said.
Noorazman added that as a result, Bank Islam may be listed separately from its holding company either on Bursa Malaysia, or overseas.
About Dubai Investment Group and Dubai Financial
Dubai Financial is a subsidiary of Dubai Investment Group LLC (DIG). DIG is the global financial investor of Dubai Holding. Headquartered in the Emirate of Dubai and with local offices stretching from New York through London to Kuala Lumpur, DIG focuses on long and short-term investments with the potential to deliver exceptional and sustainable performance. DIG is structured as a conglomerate of investment companies operating around core expertise in the asset classes of Global Securities, Real Estate and Fund Management. Dubai Investment Group has created and manages a diversified and rapidly expanding portfolio of direct and indirect investments. It focuses on key sectors including Financials, Industrials, Telecommunications and Hotels.
About Dubai Holding
Dubai Holding was launched in October 2004 to consolidate the various large infrastructure and investment projects launched in Dubai over the past five years as well as to research, identify and execute future major projects that will benefit the UAE and the region.
Dubai Holding currently acts as holding company for 19 companies operating in 11 industries ranging from, healthcare, technology, finance, real estate, education, tourism, energy, communication, industrial manufacturing, biotechnology and hospitality.
These companies include: Dubai Media City, Dubai Internet City, Dubai Healthcare City, DubaiLand, Dubai International Capital, Dubai Industrial City, Dubai Properties, Dubai International Properties, Dubai Investment Group, Dubai Energy, Dubai Knowledge Village, Dubai Outsource Zone, International Medial Production Zone, eHosting Datafort, Empower, SamaCom, Jumeirah Group, DuBiotech and Dubai Studio City.
