DIB investment banking arm arranges more than AED 20 billion in sukuk and syndication transactions in first half of 2008

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Dubai, June 24, 2008: Dubai Islamic Bank's (DIB)Dubai Islamic Bank's (DIB) wholly-owned investment banking arm, Millennium Capital Limited, announced today that it has arranged in excess of AED 20 billion of sukuk and syndication transactions since the beginning of this year. DIBDIB has risen to second place in the GCC Islamic Bonds League Tables, up from sixth place in 2007, according to the Bloomberg Underwriter Rankings published in June 2008.

The largest GCC-based banks such as DIBDIB, the world's first Islamic bank, have seen increasing competition from the leading global investment banking firms for a share in this fast-growing Sharia-compliant market space. Despite the stiff competition, DIBDIB has successfully managed to further strengthen its leadership position in this sector.

Khaled Kamda, Group Managing Director & CEO, Dubai Islamic BankDubai Islamic Bank, said: "UAE issuers such as DIBDIB, continue to receive a strong response from the markets. Since the successful AED 7.5 billion closure of the first rated sukuk for the Jebel Ali Free Zone in Dubai in November 2007, DIBDIB has continued to play the lead role in channeling the vast liquidity of the region into the sukuk and syndication market. This channeling has improved asset allocation and provided scale and depth to the domestic capital markets in a very meaningful way."

Since the beginning of the year, within the UAE, DIBDIB has acted as lead manager, arranger and book runner on over 90 per cent of all sukuk transactions within the market, as well as over 60 per cent of Islamic syndication transactions.

DIBDIB

DIBDIB

DIBDIB has had many firsts in the sukuk industry, such as the first sukuk with equity warrants, the first convertible sukuk, the first musharaka sukuk, the first sukuk under the EMTN program and the first dirham-denominated sukuk.

DIBDIB

DIBDIB

DIBDIB

Private equity is another area where DIBDIB is keen to expand and create new successes within its investment banking platform. Recently, DIBDIB and Millennium Capital partnered with Global Investment House of Kuwait to launch a US$ 500 million Islamic buyout fund.

Zaman concluded: "This is the first of an expected series of future private equity funds that will target different asset types and regions to provide investors with a wide range of private equity investment options."

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Dubai Islamic BankDubai Islamic Bank is a Sharia-compliant financial institution. As such, please refrain from using any of the following terms in reference to the bank and its activities:
Loan
Lender / Lending / Lend
Borrower / Borrowing / Borrow
Credit facility
Advance
Interest

Dubai Islamic BankDubai Islamic Bank (DIBDIB), established in 1975, is the first Islamic bank to have incorporated the principles of Islam in all its practices. DIBDIB 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.

The bank reported AED 2.5 billion in net profit for the year ending December 31, 2007, rising by 60 per cent compared to AED 1.56 billion for 2006. The bank recorded total revenues of AED 7 billion for 2007, rising by 46 per cent compared to AED 4.8 billion for 2006. Total assets in 2007 reached to AED 84.3 billion, an increase of 31 per cent compared to AED 64.4 billion in 2006.

DIBDIB set a world record by raising a US$3.52 billion sukuk for the Nakheel Group. This sukuk adopted an innovative structure never used before in Islamic or conventional banking history.

The bank has been proactive in creating partnerships and alliances at both the local and international level. DIBDIB has adopted an aggressive expansion strategy, which started with the establishment of DIBDIB Pakistan Limited, a wholly owned subsidiary of DIBDIB. DIBDIB opened its first representative office in Turkey to enhance its access to that market. DIBDIB has also acquired a stake in Al Khartoum Bank and a stake in Emirates and Sudan Bank (ESB). These steps mark DIBDIB's ambitious plans to roll out its operations into regional and international markets as part of its overall strategic plan.

DIBDIB 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. DIBDIB has also received many awards from international organizations, such as the prestigious "Bank of the Year - UAE" award from The Banker magazine and additional accolades from Euromoney.

For further information, please contact:
Nicholas Nesson
Ghaleb Zeidan
ASDA'A Public Relations
Dubai, UAE
Tel: 971-4-3355969
Fax: 971-4-3356080
E-mail: n.nesson@asdaa.com
E-mail: g.zeidan@asdaa.com

© Press Release 2008