Agreement to finance Dodsal's new project awarded by Abu Dhabi Gas Industries Limited (GASCO) to replace pipeline network

Total value of project reaches US$151 million

Dubai, March 15, 2008: Dubai Islamic Bank (DIB) announced today that it has signed an AED 577 million facility agreement with Dodsal Engineering & Construction Pte. Ltd. to finance the replacement of the NGL Pipeline Network Project awarded by Abu Dhabi Gas Industries Limited's (GASCO) to Dodsal. The total value of GASCO's project is US$151 million.

Ayman Kamal, Executive Vice President, DIB, said: "This agreement comes in line with DIB's vision to support a wide range of economic sectors with reputable contractors. The gas processing sector is considered a vital field for the national economy, and we are proud to be part of this significant project." 

"The bank has successfully developed and structured innovative financing deals that meet the requirements of major corporations and government bodies in the UAE and worldwide," he said. "Dodsal has been a valued customer of DIB and our relationship with Dodsal extends over various local as well as regional project financing."

Rajen Arvind Kilachand, Chairman, Dodsal, said: "We are extremely pleased to announce the signing of this major financing agreement with Dubai Islamic Bank, which will enable Dodsal to continue to support the economic development of the UAE and, in particular, the energy sector. Our longstanding partnership with DIB is greatly valued by all of us at Dodsal, and we look forward to continuing to work with them in the future."

-Ends-

Note to editors:
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:

  • Loan

  • Lender / Lending / Lend

  • Borrower / Borrowing / Borrow

  • Credit facility

  • Advance

  • Interest

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 shares are listed on the Dubai Financial Market.

The bank reported AED 1.56 billion in net profit for the year ended December 31, 2006, rising by 47 per cent compared to AED1.06 billion for the year ended December 31, 2005. The profit for 2006, including depositors' profits, stood at AED 3.3 billion, an increase of 65 per cent compared to AED 2 billion for the year ended December 31, 2005. Total assets in 2006 reached to AED 64.5 billion reporting an increase of 50 per cent compared to AED 43 billion in 2005.

Financing and investment operations also delivered strong growth, with total investment and financing assets including investments in sukuks stood at AED 38.8 billion, an increase of 28 per cent over last year. Customer deposits also showed an aggressive growth of 43 per cent over last year, reaching AED 47.7 billion in 2006.

DIB recently announced the breaking of another world record by raising US$3.52 billion sukuk for the Nakheel Group. This sukuk adopted a structure never used before in Islamic or conventional banking history. The Nakheel sukuk brings the total sukuk raised by DIB in the UAE to more than US$9 billion (AED 33 billion), an unprecedented amount in the history of Islamic banking.  

The bank has been proactive in creating partnerships and alliances at both the local and international level. DIB has adopted an aggressive expansion strategy, which started with the establishment of DIB Pakistan Limited, a wholly owned subsidiary of DIB. DIB opened its first representative office in Turkey to enhance its access to that market. DIB has acquired 60 per cent of Al Khartoum Bank and is among the parent banks of Emirates and Sudan Bank (ESB). These steps mark DIB's ambitious plans to roll out its operations into regional and international markets as part of its overall strategic plan.

For further information, please contact:
Ghaleb Zeidan
ASDA'A Public Relations
Dubai, UAE
Tel: +971-4-3355969
Fax: +971-4-3344556
E-mail: g.zeidan@asdaa.com

© Press Release 2008