Mar 10 2009
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Statement from Dubai Islamic Bank
The bank clarified today its exposure to CCH, which has previously received financing of approximately US$440 million, out of which approximately US$330 million relates to DIB . In this regard, the bank stated that it has to date made impairment provisions totaling US$135 million related to this historical transaction. DIB has also foreclosed on a major development called The Plantation, covering a total area of more than 20 million square feet in Dubailand.
The bank added that it continues to pursue through the appropriate legal channels additional assets and receivables in a range of countries. Based on legal precedent, DIB is strongly positioned to receive control of these additional securities, therefore further minimising any potential financial loss to the bank and its stakeholders. DIB believes that the current provisions together with collaterals foreclosed and being pursued are adequate to cover its exposure to CCH, even in the current economic downturn.
Additionally, Khaled Al Kamda, Group Managing Director, Dubai Islamic Bank , said, " DIB remains a solid and trusted financial institution, with a growing customer base, strong deposits and sterling performance. As we continue to focus on enhancing our existing corporate governance structures and risk architecture, we look forward to consolidating our overall position in the months to come."
Dubai 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:
- Lender / Lending / Lend
- Borrower / Borrowing / Borrow
- Credit facility
About Dubai Islamic Bank :
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 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. DIB has adapted an ambitious expansion strategy, which started with the establishment of DIB Pakistan Limited (a wholly owned subsidiary of DIB ). DIB has a representative office in Turkey, a fully operating office in Iran and has obtained approval for establishment of an Islamic Bank in Syria. Additionally, Dubai Islamic Bank , Dubai International Capital and Jordan Dubai Capital are also set to acquire a controlling stake in Industrial Development Bank of Jordan. These steps mark DIB 's ambitious plans to roll out its operations into regional and international markets as part of its overall strategic plan. Built on solid commitment to Islamic Banking principles, DIB aims to maintain its position as the world leader in Islamic banking.
DIB has won the respect of its peers around the world. The bank was recently named "Best Islamic Bank" for the fourth consecutive year by Banker Middle East magazine. DIB has also received many awards from international organisations, such as the prestigious "Bank of the Year" award from The Banker (Financial Times), along with prestigious accolades from UK-based Euromoney and NY-based Global Finance magazines.
For further information, please contact:
Nicholas Nesson / Ghaleb Zeidan
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© Press Release 2009
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