Dubai Bank confirmed its acquisition of an 18.75 per cent strategic stake in BankIslami Pakistan Limited, which is the first new bank to have received a license from the State Bank of Pakistan after the latter decided to grant commercial banking licenses for Islamic banks in 2003.
Ziad Makkawi, CEO, Dubai Bank said at a press conference held in Istanbul during the International Finance: ' Pakistan has seen a significant turnaround in its economy which has led to many foreign investors, particularly from the GCC, recently investing in excess of US$ 7 billion in the country. Dubai Bank's investment into Pakistan is in keeping with the long term vision of the bank as a vital link between this region and its neighbouring emerging markets.'
'Pakistan has a growing Islamic banking sector, there is a strong demand for Islamic financing in Pakistan which is currently underserved. The sector has witnessed significant expansion over the last few years with annual growth of over 200%, and BankIslami is well placed to cater to this demand,' he added.
Dubai Bank will join the DCD Group and Jahangir Siddiqui and Company as Founding Shareholders and together they will collectively control a majority of the Bank. This partnership creates a strategic alliance with the DCD Group, an international conglomerate that has acquired strategic stakes in a number of Islamic banks worldwide and Jahangir Siddiqui and Company which is one of the biggest financial services and business groups in Pakistan .
On the other hand, Ziad Makkawi said in the opening speech of the 8th International Finance Forum started today in Istanbul: ' 'Dubai Bank can play a vital role in the Turkish finance industry by providing expertise as well as offer a diverse range of financial solutions to companies looking to venture into the Middle East and specifically the GCC. We currently offer conventional as well as Islamic banking products and services under the Merchant and Retail banking divisions. This includes Corporate Finance, Asset Management, Treasury and Capital Markets, Investment Banking, Corporate and Institutional Banking and much more'.
Mr. Makkawi added: 'we are currently looking to expand into key emerging markets, and Turkey is definitely one of these territories that we feel presents exceptional opportunities for us. The economy here has been very vibrant and is attracting a good number of foreign investors and organizations. Additionally, Turkish investors are also looking to invest and diversify their capital in other markets; and the GCC is on the list'.
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© Press Release 2005
