National Bank of Dubai (NBD), an Emirates NBD company, and FIMBank plc, the Malta-based trade finance institution, today announced that MENA Factors Limited, a joint venture between the two banks, has commenced operations at the DIFC. MENA Factors is the first specialist financial institution in the GCC region to provide a 'one-stop-shop' offering factoring and forfaiting services.
Commenting on the announcement, Nasser Al Shaali, CEO of the DIFC Authority, said: "The DIFC is a centre for new financial product innovations, and is expecting a rapid development in the range of financial services offered to companies in the region. Small and Medium Enterprises (SMEs) are a crucial part of our economy, and by targeting this large and growing group of companies, MENA Factors is supporting the overall development of the market."
MENA Factors aims to meet the requirements of local, regional and international businesses across the GCC initially, and subsequently expanding to include the MENA region. These services are designed to have a strong appeal to those undertaking trade finance transactions and trade receivables, with a focus on SMEs.
Rajesh Thapar, Group Head of Corporate & Institutional Banking, National Bank of Dubai, said: "As the financial industry continues to develop at an unprecedented rate, it is essential for banks to expand their trade finance products to meet the region's ever growing banking needs. At NBD, we are constantly seeking to expand our products, services and regional presence, particularly in the field of factoring and forfaiting."
"We are confident that Mena Factors will establish itself as a key participant in the region's dynamic trade finance receivables market. It has the potential to become the leading 'one-stop-shop' specialist provider of factoring and forfaiting finance and services to the full range of importers, exporters, traders, banks and other institutions doing business in the MENA region", he added.
Margrith Lutschg, President of FIMBank, commented: "MENA Factors will combine FIMbank's technical expertise with NBD's in-depth market knowledge to provide an alternative source of additional funds to companies in the region wishing to fund future growth."
Factoring is a form of commercial finance whereby a business sells its accounts receivable (in the form of invoices) at a discount. Factoring is considered off balance sheet financing, in that it is not a form of debt or a form of equity, which makes it more attainable than traditional bank and equity financing. Forfaiting, or medium-term capital goods financing, is the discounting of international trade receivables on a without recourse basis.
-Ends-
About the DIFC:
DIFC is an onshore hub for global finance. It bridges the time gap between the financial centres of Hong Kong and London and services a region with the largest untapped emerging market for financial services.
In just under two years, over 450 firms have registered at the DIFC. They operate in an open environment complemented with world-class regulations and standards. The DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange. In addition their business benefits from modern infrastructure, operational support and business continuity facilities of uncompromisingly high standards.
About National Bank of Dubai
Over the years, National Bank of Dubai has developed a reputation of stability and strength and is currently recognized as one of the top performing banks in the region. Founded in 1963, NBD is committed to providing customers with the knowledge and experience they need for a brighter financial future. With our team of professionals and diverse range of personal financial services, clients will have the expertise and experience of one of the leading banks in the region on their side.
NBD currently has an extensive branch network that includes over 44 branches throughout UAE, in addition to a branch in London and a representative office in Tehran.
For further information log on to www.nbd.com
About FIMBank
FIMBank is a specialized Trade Finance Bank based in Malta and regulated by the Malta Financial Services Authority (MFSA). Among our shareholders is the IFC, the financial investment arm of the World Bank. Since its inception, the goal of FIMBank plc has been to focus on trade finance. The bank undertakes structured trade financing and, as a merchant bank, is geared towards servicing the more complex trade transactions that require careful structuring and customised services. It also provides factoring and forfaiting services to customers, banks and financial institutions around the world with a particular emphasis on the Middle East, Africa, Eastern Europe and Asia .
The bank operates from its head office in Malta and promotes its services through a representative office in London and markets its services in selected international markets, namely London, New York, Sao Paolo, Moscow, Dubai and more recently, through its participation in a factoring company in Mumbai (GTF), and in Egypt (Egypt Factors) For further details on our organization and services you are invited to visit our website at www.fimbank.com
For more information please contact:
Amira Abdulla
Dubai International Financial Centre
Tel: +971 4 362 2433
E-mail: amira.abdulla@difc.ae
Shaima Al Zarouni
Dubai International Financial Centre
Tel: +971 4 362 2432
E-mail: shaima.alzarouni@difc.ae
© Press Release 2007
