Dubai Holding consolidates Islamic assets to create global Islamic investment company

Dubai Holding has consolidated its investments in Dubai Islamic Investment Group and Dubai Bank under Dubai Banking Group, to form a global Shari’ah compliant investment company. This consolidation is in line with Vision 2015, which highlights the development of the financial services sector in Dubai as a catalyst for future growth and economic diversification of the Emirate’s resources.

Dubai Banking Group will be managed by Dubai Group, the diversified financial services company of Dubai Holding. Dubai Group, through its subsidiary Dubai Islamic Investment Group, is credited with the rapid turnaround of Bank Islam in Malaysia to a profitable institution. Dubai Banking Group will continue to focus on investing in Shari’ah compliant assets in the Islamic sector which is expected to continue to grow at a very high rate well into the future.

Soud Ba’alawy, executive chairman of Dubai Group said, “Dubai Banking Group will continue to aggressively target significant direct investments and acquisitions in a wide range of sectors across the world’s biggest Islamic markets including the GCC, South East Asia, and Africa.”

Dubai Banking Group has already investments in leading Islamic financial institutions in UAE in Dubai Bank, in Kuwait in Al Fajer Re-takaful, and in Malaysia in Bank Islam and has combined assets are in access of $10 billion.

Dubai Banking Group will have a dedicated management team. Fadel Al Ali, executive chairman of Dubai Holding Operations will be the non-executive chairman of Dubai Banking Group. Salaam Al Shaksy, who is currently the chief executive of Dubai Islamic Investment Group, will be appointed as chief executive of the newly formed entity and his team will lead the group in its global expansion.

Dubai Holding was launched in October 2004 to consolidate the various large-scale infrastructure and investment projects in Dubai, as well as to identify opportunities to develop future major projects that will benefit the UAE and the region.

Dubai Holding has created a foothold in various industries by developing initiatives spanning numerous sectors including healthcare, technology, finance, real estate, education, telecommunication, entertainment & leisure, energy, communication, industrial manufacturing, biotechnology, hospitality and aerospace.

Dubai Holding entities include: Dubai Internet City, Dubai Media City, Dubai Healthcare City, Dubailand, Dubai International Capital, Dubai Industrial City, Dubai Properties, Sama Dubai, Dubai Group, Dubai Energy, Dubai Knowledge Village, Dubai Outsource Zone, International Media Production Zone, e-Hosting Datafort, EMPOWER, Jumeirah Group, Dubiotech and Dubai Studio City.

Dubai Group is the diversified financial services company of Dubai Holding. Focused on banking, investments and insurance regionally and globally, Dubai Group has offices in Dubai, London, New York, Pittsburgh, Kuala Lumpur and Hong Kong. Through its subsidiaries and affiliates, Dubai Group has business interests in 26 countries that employ 16,000 individuals. Dubai Group entities include Dubai Investment Group,

Dubai Capital Group, Dubai Financial Group, Dubai Islamic Investment Group, Dubai Insurance Group and Noor Investment Group. Dubai Group plays a pivotal role for the realisation of Dubai Strategic Plan by leading the development of financial industry.

MoU signed between Mawarid Finance and Tanmia to enhance the Emiratisation drive

Mawarid Finance, the pioneer national Islamic finance company, and Tanmia, the National Human Resource Development & Employment Authority in the UAE, recently signed an MoU to increase job opportunities for nationals, particularly in the Banking & Finance industry.

The agreement was signed by Mr. Mohamed Al Neaimi, CEO Mawarid and Ms. Feddah Abdulla Lootah - Acting Director General Tanmia, during the Careers UAE 2008 Exhibition at Dubai International Convention and Exhibition Centre last week. A number of officials from both organisations also attended.

The MoU comes as a result of the complementary roles of both parties in providing full support for the UAE's Emiratisation strategies and enhancing job opportunities for nationals in both the public and private sectors, in addition to ensuring both parties' willingness to activate a real and dynamic partnership.

Commenting on the MoU, Feddah Abdulla Lootah said:

Under the agreement, Tanmia will provide suggestions and comprehensive plan for Mawarid to achieve its Emiratisation targets.

Tanmia will also provide its extensive service, which includes registration, nomination of candidates for the preparation programmes and work orientation for job seekers.

The agreement also states that Mawarid Finance will be given access to Tanmia's database in order to screen job seekers for employment opportunities at Mawarid.

Mr. Mohammed Al Neaimi praised the agreement and said it would be the first of many agreements to foster Emiratisation.

'This agreement reflects the company's strategy to attract and develop national human resources and create opportunities for them in various fields, mainly in Banking and Finance. Mawarid Finance will continue to sign agreements that support the Emiratisation policy and support the role of national youth in various levels and in different fields in society whether economic, academic or social or any other different field'.

In addition to that, the agreement will also promote Mawarid's Tamaiaz Award, which was launched last year to encourage creativity in Emirati university students.

Job seekers registered with Tanmia will be encouraged to apply for the award and Tanmia will cooperate in marketing the award to governmental and private organisations, as well organising special marketing programmes agreed by both parties.

The Tamaiaz Award is considered a pioneer initiative which contributes effectively in enhancing national qualifications and providing the latter with job opportunities by bridging the traditional gap between academic studies and the job market.

It aims to enhance the Emiratisation process in various fields, especially in Banking & Finance.

ALDAR signs AED 2,203,800,000 Ijara facility

ALDAR Properties signs an Islamic Ijara facility with consortium of leading regional banks.



ALDAR Properties PJSC, the renowned Abu Dhabi-based property developer, announced today a AED 2.203 billion (US$ 600 million) Ijara facility, has been put in place for the company. The Ijara facility is equally financed by Abu Dhabi Commercial Bank, Abu Dhabi National Islamic Finance (a subsidiary of National Bank of Abu Dhabi), Badr Al-Islami (the Islamic Banking Division of Mashreq bank psc), Dubai Islamic Bank, First Gulf Bank and Noor Islamic Bank.

Dubai Islamic Bank (represented by its investment banking arm, Millennium Capital Limited, regulated by the Dubai Financial Services Authority "DFSA") acted as structuring and documentation agent for the transaction, while National Bank of Abu Dhabi acted as security agent. Allen and Overy advised ALDAR on the transaction while Clifford Chance LLP acted as the banks' counsel.

"The success of this transaction, particularly given the challenging global financial environment, is an important endorsement of ALDAR's track record. We are grateful to each of the participating banks for their support and we are proud to have Islamic finance contributing to our business model," said Ahmed Ali Al Sayegh, Chairman of ALDAR.

Further commenting on the announcement, Ahmed Ali Al Sayegh, said: "The successful close of this Ijara facility has again shown ALDAR to be a reputable, trustworthy and sophisticated company in its approach to the debt markets."

The transaction has been approved by the Shariah Supervisory Boards of the lead arrangers, making it fully compliant with the principles of Islamic finance. The facility has a four year tenor and will be used for general corporate purposes in support of ALDAR's business plan and growth model.

Today's announcement comes just a few days after Moody's Investors Service assigned long term local and foreign currency issuer ratings of A3 to ALDAR. Moody's, a leading provider of independent credit ratings, research and financial information to the capital markets, has described the outlook for ALDAR as stable.

"ALDAR's ratings are supported by its leading market position within the Emirate of Abu Dhabi, whose real estate market is bolstered by a combination of strong demographic growth and a growing domestic economy. Ratings also benefit from the company's intention to build a significant rental property portfolio, which will ultimately support a stable and predictable income stream over the medium to long term," it said.

In February this year, the company won awards for its shariah compliant financing, scooping ‘Best Mudarabah Deal' and ‘Best Real Estate Deal' from Islamic Finance News (IFN) as well as ‘Sukuk Issue of the Year' from EuroWeek magazine. Prior to today's announcement, ALDAR had already secured funding in excess of AED 34 billion (US$9.2 billion) to undertake the development projects through convertible bonds (sukuk), capital debt instruments and bilateral debt facilities.

ALDAR Properties has announced developments worth more than US$65 billion since its launch in 2005 including Central Market, Al Raha Beach, Coconut Island, Noor Al Ain, Al Gurm Resort, as well as the YAS Island project which includes a Warner Bros and a Ferrari theme park.

ALDAR has the largest land bank in Abu Dhabi comprising over 34 million square meters, 100% earmarked for specific developments valued at AED 44.2 billion (US$12 billion) as at 31 December 2007. The company is one of the largest UAE-listed property developers by market value and was the first Middle Eastern company to list a sukuk on the London Stock Exchange.




Notes and contacts
About ALDAR Properties

ALDAR Properties PJSC is a premier real estate development, management and investment company with headquarters in Abu Dhabi, UAE. ALDAR was established to create world-class real estate developments for Abu Dhabi, while providing stable and profitable investment portfolio for all our investors and stakeholders.

About Abu Dhabi Commercial Bank ("ADCB")

Abu Dhabi Commercial Bank - ADCB is a diversified full service bank. Other than banking services that span corporate, retail and commercial banking ADCB is active in the areas of treasury derivatives, infrastructure finance, private banking and wealth management.

Our approach is driven by the ability to create value for our customers by leveraging our skills and expertise. Amongst UAE banks, ADCB enjoys one of the largest deposit base with total assets as at 31/12/2007 of AED 106.2 billion and net profit of AED 2085 million in 2007.

Our strong franchise, supported by a network of 44 branches in the UAE, including 2 pay offices, 2 Kiosks besides 2 full fledged branches in India is reflected in our recent rating of Aa3 by Moody's, which is the highest awarded to a bank instrument in the Middle East.

The Government of Abu Dhabi, through Abu Dhabi Investment Council, holds 65% of the capital while the rest is held by various UAE Institutions and Nationals. ADCB's market capitalization as of 31/12/2007 was AED 25.7 Billion (US$7Billion).

About Abu Dhabi National Islamic Finance ("ADNIF", subsidiary of National Bank of Abu Dhabi)

A new Islamic Finance organization which started its business in 2008, is from the breed of the largest, award winning banking institution of the UAE - The National Bank of Abu Dhabi with 40 years of experience and a recipient of many national and international awards.

With an expected official launch in mid 2008, ADNIF as a fully sharia compliant organization has its strength in innovative sharia compliant products, team of well experienced, dedicated Islamic bankers with excellent tract record in Abu Dhabi & beyond. It also has a dedicated team for Legal, Shari'a Compliance, Financial control, Operations & back office, a reputed Sharia Board with the top most sharia scholars of the likes of Dr.Jasim Ali Salem Al Shamsi, Sheikh Nizam Ya'kouibi, and Dr. Abdul Sattar Abu Ghudda.

Through its dedicated Corporate , Retail, Treasury & Investment divisions, ADNIF strategy is to offer a range of Sharia compliant banking & finance services with Islamic banking division -NBAD (managed by ADNIF) which complements each other. In a market flooded with competitors, big promises and complex products, ADNIF believes in providing real solution in line with its clear market positioning and brand-promise ‘......pure & simple'

About "Badr Al-Islami" (Islamic Banking Division, Mashreqbank psc)

Established in 2006, Badr Al Islami is an independently managed business comprising Badr Al-Islami Finance and Badr Al-Islami Banking. Badr Al-Islami Finance, which is majority owned by Mashreq, is a private joint stock Islamic Finance Company and Badr-Al Islami Banking is the Islamic Banking Division of Mashreq.

With a diverse portfolio, Badr Al Islami offers its customers a complete spectrum of Sharia compliant products with high quality services. Its mission is to build a culture for customers' experience around the core Islamic values of trust, integrity, commitment and dedication. Badr Al Islami is subject to the supervision of UAE Central Bank and an independent accounting firm, as well as, the Sharia Supervisory Board.

About Dubai Islamic Bank

DIB, established in 1975, is the first Islamic bank to have incorporated the principles of Islam in all its practices. DIB is a public joint stock company and its share is quoted on the Dubai Financial Market. The bank enjoys a reputation as a leader and innovator in maintaining the quality, flexibility and accessibility of its products and services. In a very short space of time it has created market leading services and products that are setting benchmarks for the rest of the sector.

DIB has won the respect of its peers around the world. The bank was recently named by Islamic Finance News the UAE's Best Islamic Bank. DIB has also received many awards from international organizations such as the prestigious "Bank of the Year - UAE" award for 2006 by The Banker magazine and accolades from Euromoney. DIB has garnered the attention of international credit rating firms receiving ratings from Standard & Poor's and Moodys agencies.

About First Gulf Bank ("FGB")

As one of the leading banks in the UAE, First Gulf Bank (FGB) has Shareholder Equity of over AED10 billion making it one of the largest equity based bank in the UAE. Established in 1979 and headquartered in the UAE capital Abu Dhabi, the bank provides financial services in various business and industrial areas with a wide network of branches across the Emirates.

About Noor Islamic Bank ("NIB")

Founded in 2007 in Dubai, Noor Islamic Bank stands as a global icon, transforming the offering and experience of modern Islamic banking to meet the needs of today's consumers. A full service bank, Noor Islamic Bank delivers the broadest range of products for its consumers, with an emphasis on unique and personalised services.

Noor Islamic Bank's products and services are governed by a Shari'ah Board, comprising leading Islamic scholars with extensive experience and expertise in legal, financial and banking-related matters. Noor Islamic Bank has 10 locations across the UAE in Abu Dhabi, Al Ain, Dubai and Sharjah.

UAE Islamic banking assets to hit $87bn by 2010

Total Islamic banking assets, including takaful, in the UAE could reach $87 billion (Dh319bn) by 2010, increasing the country’s global market share to around 11.5 per cent. This would place the country among the world’s top global Islamic financial centres, said global investment bank Goldman Sachs.

Annual average asset growth will be 28 per cent in the UAE for the next three years, with incumbent leaders Dubai Islamic Bank and Abu Dhabi Islamic Bank slightly losing market share to their new aggressive domestic competitors, the bank said in its “Oiling a virtuous banking cycle” report.

Banks in the Gulf Co-operation Council (GCC), with increasing participation from the UAE, are gaining significant market share in the global context.

The GCC’s market share in Islamic finance will grow as continuing wealth accumulation and ambitious development plans provide both demand and supply.

Driven by global liquidity, market innovation and supportive regulation, the global Islamic finance market has evolved from a niche market worth perhaps $150bn in the mid-1990s to an estimated $500bn now. The range of instruments and the number of market participants have both blossomed.

The Goldman report estimated the global Islamic finance market could grow at 17 per cent per annum, reaching $1.3trn by 2012.

The report stated the UAE is competing hard to become a global centre for Islamic finance as the Gulf is likely to continue to gain market share from Malaysia, which is widely regarded as hub of Islamic finance in Asia.

“Currently just four cities – Kuala Lumpur, Dubai, Bahrain and London – are competing to become the global centre for Islamic finance. And it seems likely that London will emerge as the gateway for Islamic finance in Europe and Kuala Lumpur for Asia,” it said.

The report said the UAE banks are better placed to compete internationally in industry segments such as sukuk (Islamic bond) issuances, where the banks have made big achievements.

The report said fast Islamic finance growth in the UAE may come partially at the expense of conventional banking growth, as customers may choose to replace existing financing solutions with Islamic alternatives.

The report has forecast that robust structural growth should support demand in both segments.

Nonetheless, “cannibalisation” should become more evident in conventional banks as most are launching new Islamic finance platforms, which will likely appeal to existing customers as much as attracting new ones.

This initiative could just prevent them from losing clients, which may ultimately be attracted by the increasing offer of Shariah-compliant products in the market.

Conventional banks such as ENBD, FGB, Mashreq and United National Bank are better placed to benefit from this trend as they already have well-established and fast-growing franchises in this segment, the report said.

Overall, Goldman doesn’t expect conventional banks’ balance sheet structure to resemble that of Dubai Islamic Bank or Abu Dhabi Islamic Bank in the near future. The Goldman report believes the significant gap between the two should close substantially in five years, providing UAE banks with a meaningful source of growth.

International projection has also become an important source of growth for the UAE Islamic banks. For instance, Dubai Islamic Bank has experienced significant growth in Pakistan through its local subsidiary. Other strategies such as Abu Dhabi Commercial Bank’s partnering with a top-market Islamic finance player in Malaysia may help UAE banks gain expertise and open new opportunities in larger Islamic financial markets.

Goldman said the booming real estate sector and closeness to the government and corporates would be core drivers of growth for Dubai Islamic Bank. Goldman expects the real estate sector’s contribution to the DIB’s income will grow from currently ten per cent to 15 per cent in the next three years.

Goldman said high concentration in real estate activities, low capitalisation level and strong competitive pressures could result in declining margins. The report warned that based on UAE banking standards, DIB’s capitalisation ratio has reached low levels.

The Goldman report has forecast that Abu Dhabi Islamic Bank (ADIB) is likely to face three main challenges. Firstly strong competition coming not only from established Islamic finance players in the UAE, but also from new entrants among which are mainly conventional banks launching Shariah-compliant platforms or converting altogether; secondly lack of sizeable targets to grow inorganically, given that there are not many Islamic finance banks perceived to be willing sellers; and lastly the bank will face cost pressure as it expands operations, particularly abroad.

ADIB has presence in Egypt through an acquisition of a bank and it’s exploring targets in other parts of North Africa.

ADIB’s profitability is expected to reach its peers in three years as it will observe strict cost discipline and maintain the cost-to-income ratio flat.

Emirates Islamic Bank enters into a strategic agreement with Ajmal Real Estate

Emirates Islamic Bank (EIB), one of the leading Islamic financial institutions in the UAE, has added another feather to its cap by entering into a new agreement with Ajmal Real Estate, the renowned property development group.

The new MOU between the two prominent regional institutions was signed on the 26th of February 2008.

According to the new agreement, EIB will offer its extensive portfolio of customers a special scheme for obtaining up to 90% financing for purchasing their dream home in Ajmal Sarah, the prestigious new Ajmal Real Estate development due to come up in Dubailand Residences. This is the latest in a long line of real estate developments that EIB has promoted in the UAE, thereby magnifying its role as a key player in the growth and prosperity of the region.

Speaking about the development, Mr. Faisal Aqil, General Manager for Retail Banking at EIB said, 'Owning a home is a dream-come-true for many people in the region. We wanted to make this as easy as possible for our customers, and giving them an opportunity to own a home built by a prestigious developer like Ajmal Real Estate adds a special touch to the offering.'

Ajmal Sarah is a freehold project, worth Dhs300m, built to the highest quality standards in a prime location in Dubailand Residences opposite Academic city. Besides 274 world-class Studio, 1, 2 and 3 bedroom apartments and garden apartments, Ajmal Sarah will feature Retail outlets, Commercial offices and a host of lifestyle facilities, making it the perfect place to buy your dream home. Construction of this mega-project is already underway, and owners can move into their dream homes by early 2010.

Commenting on the agreement, Mr. Mohammed Fakhruddin Ajmal of Ajmal Real Estate said, 'Our agreement with a leading financial institution like Emirates Islamic Bank adds a new dimension to the many benefits of owning a home developed by Ajmal Real Estate.' Mr. Obaid F. Ajmal, Deputy Manager and Mr. Manish Madhukar, Project advisor of Ajmal Real Estate agreed.

Manzili, the comprehensive home finance offering from Emirates Islamic Bank, offers competitive features such as low down payment and repayment tenures as long as 25 years. Customers can look forward to more and more innovative products from Emirates Islamic Bank.

Amlak to sell Islamic bonds worth $1.3bn

Dubai-based mortgage lender Amlak Finance said on Sunday it planned to sell as much as 4.8 billion dirhams ($1.31 billion) worth of convertible and non-convertible Islamic bonds this year to help finance expansion.

"This is an initial approval after the extraordinary general meeting for the board to look into these programmes," Arif Al-Harmi, Amlak chief executive, told newswire Reuters.

Amlak plans to issue convertible Islamic bonds, or sukuk, worth up to 1.8 billion dirhams and as much as 3 billion dirhams of non-convertible sukuk, it said in a statement.

Banks have yet to be mandated for the sales, Al-Harmi said, adding that it was part of the company's 2008 financing requirements.

The firm plans to raise about 6 billion dirhams this year, including through the sale of covered bonds - debt securities backed by cash-flow from mortgages - or Islamic bonds that are convertible to shares, Amlak Chairman Nasser Al-Shaikh told Reuters in February.

Sukuk comply with Islam's ban on the receipt of interest, and are typically based on physical assets which pay a dividend or rent to bondholders.

Gulf Arab issuers have slowed borrowing plans as concerns over the US economy and the falling dollar have pushed issuers to weather market conditions.

Amlak, an affiliate of Emaar Properties, will launch operations in Qatar and Jordan this year and has applied for a licence in Bahrain, Al-Harmi said.

"We are also in discussions with partners for Syria," he said.

Amlak delayed a sale of Islamic bonds planned for the fourth quarter of 2007 because of the fallout from the credit crisis triggered by US mortgage defaults.

Demand for mortgages is surging in the UAE, where Dubai kicked off the Gulf Arab real estate boom in 2002 by allowing foreigners to invest in property.

Emirates Islamic Bank enters into a strategic agreement with Ajmal Real Estate

Emirates Islamic Bank (EIB), one of the leading Islamic financial institutions in the UAE, has added another feather to its cap by entering into a new agreement with Ajmal Real Estate, the renowned property development group. The new MOU between the two prominent regional institutions was signed on the 26th of February 2008.

According to the new agreement, EIB will offer its extensive portfolio of customers a special scheme for obtaining up to 90% financing for purchasing their dream home in Ajmal Sarah, the prestigious new Ajmal Real Estate development due to come up in Dubailand Residences.

This is the latest in a long line of real estate developments that EIB has promoted in the UAE, thereby magnifying its role as a key player in the growth and prosperity of the region. Speaking about the development, Mr. Faisal Aqil, General Manager for Retail Banking at EIB said "owning a home is a dream-come-true for many people in the region. We wanted to make this as easy as possible for our customers, and giving them an opportunity to own a home built by a prestigious developer like Ajmal Real Estate adds a special touch to the offering.

Ajmal Sarah is a freehold project, worth AED 300 millions, built to the highest quality standards in a prime location in Dubailand Residences opposite Academic city. Besides 274 world-class Studio, 1, 2 and 3 bedroom apartments and garden apartments, Ajmal Sarah will feature Retail outlets, Commercial offices and a host of lifestyle facilities, making it the perfect place to buy your dream home.

Construction of this mega-project is already underway, and owners can move into their dream homes by early 2010. Commenting on the agreement, Mr. Mohammed Fakhruddin Ajmal of Ajmal Real Estate said"Our agreement with a leading financial institution like Emirates Islamic Bank adds a new dimension to the many benefits of owning a home developed by Ajmal Real Estate" on which Mr. Obaid F. Ajmal, Deputy Manager and Mr. Manish Madhukar, Project advisor of Ajmal Real Estate agreed.

Manzili, the comprehensive home finance offering from Emirates Islamic Bank, offers competitive features such as low down payment and repayment tenures as long as 25 years. Customers can look forward to more and more innovative products from Emirates Islamic Bank.

About Emirates Islamic Bank

Emirates Islamic Bank opened its doors in October 2004 with a mission to provide consumers in the UAE with effective and innovative Shari'a-compliant financial solutions. The Bank offers a range of Shari'a compliant products and services conforming to the highest standards of Islamic finance and all its activities are overseen by a Shari'a board comprising several prestigious scholars of Islamic law.

On the retail side, the bank has an array of products, such as a full range of credit cards including Visa Infinite Card; Manzili Home Finance, Intaleq Car Finance, and many other products. The bank has also launched Al Reem Ladies Banking, a specialized banking service designed to cater to the banking and financial needs of women in the region.

The bank also offers Ethmar Priority banking to suit the demands of the high-net-worth clients. Emirates Islamic Bank is very active on the Corporate Banking level, seeking exceptional investment opportunities in the local as well as the regional market. Within almost three years of its inception Emirates Islamic Bank has managed to position itself as one of leading financial players in the UAE's banking sector.

The bank's rapid growth and success is mainly due to its continued successful launch of Shari'a compliant products, services and other key business initiatives. EIB is headquartered in Dubai and employs more than 800 staff.