The Dubai Islamic Bank (DIB) recently signed an agreement with the Bahrain Islamic Bank and the Kuwaiti Financing House to set up a Bahrain-based liquidity management center with a paid up capital of $15 million. All the three financial institutions will pay five million dollars each of the paid up capital, reported the official WAM news agency.
Manager of the Commercial Department of DIB in the United Arab Emirates (UAE), Hussein Mohammed Salem Al Meiza, stated that the capital is expected to rise to $30 million to $35 million with the possible joining of another four institutions such as the Arab Islamic Banking Corporation, Islamic Development Bank, Baraka Islamic Bank and Shamil Islamic Bank.
The new center will enable the involved institutions to overcome the hurdles that the restrict the activities of the Islamic Banking Industry such as the shortage of assets and the lack of product markets. The center's management has assigned Ernst & Young as financial adviser.
DIB opened in 1975 as the first non-governmental Islamic bank. Currently the seventh largest Bank in the UAE, DIB is a UAE public shareholder company with a base of approximately 20,000 shareholders. The Government of Dubai holds 30 percent of these shares and is the principal shareholder.
The Bank's 13 Branches carry out investment, commercial and other banking service activities in accordance with Islamic religious law (Shari'a) as approved by the Bank's Fatwa and Shari'a Supervisory Board. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
