Dubai - State Bank of Pakistan (SBP) has awarded license to Dubai Islamic Bank (DIB) for the establishment of its operations in Pakistan. The announcement took place during a press conference held yesterday (Saturday, November 26, 2005) at the State Bank of Pakistan.
Commenting on the step, Dr. Ishrat Hussain, Governor of SBP, said: "While the banking industry in Pakistan has immensely flourished in the past five years, it has also been one of the core objectives of my governance to promote Islamic Banking in Pakistan. Through the advent of Dubai Islamic Bank, which happens to be one of the most profitable and successful ventures in Islamic Banking, I am sure the foundations of this industry would further be bolstered."
Arif Koohegi, DIB's Executive Vice President of Investment and Corporate Banking, said: "DIB has the unique distinction of being the world's first full-fledged Islamic bank, a pioneering institution that has combined the best of traditional Islamic values with the technology and innovation that characterize the best of modern banking. As part of our global expansion plans, along with observation of the economic stability and growth of banking sector in Pakistan, we will be creating a centre of excellence in Pakistan for products and professionals in the field of Islamic Banking; taking both on global horizons with us."
Saad Zaman, CEO DIB Pakistan Limited said: "We aim to offer state-of-the-art Islamic banking solutions, with world class products and services. These would include services in Retail, Private, Johara, Business, Corporate, Real Estate and Investment Banking; including advisory and equity services. We will be launching with eight branches in all major cities of Pakistan; namely Karachi, Lahore, Islamabad, Rawalpindi and Faisalabad. Furthermore through product harmonization, all our Pakistani branches will be synchronized nationally as well as internationally to offer value additions such as online, mobile and phone banking."
Pervez Saeed, Advisor to SBP Governor on Islamic Banking said, "It is a pleasure to see Dubai Islamic Bank enter Pakistan with strong faith and commitment. Finding an investment friendly climate in the country, a number of Islamic banks have shown interest in recent years to invest in Pakistan, and a number of licenses are in the pipeline. However, investment by DIB has been the largest foreign commitment in the financial sector of Pakistan, in recent times, and the largest in Islamic Banking."
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DIB profile
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.
The bank's recent financial results confirm the strength of its balance sheet and profitability. Figures for the year ending December 2004 reported a 36 per cent increase in net profits including depositors' profits, to reach AED 1.02 billion (US$278 million) compared to AED 751 million (US$205 million) for 2003. The bank's assets at the end of December last year had grown 35 per cent in the same period to AED 30.8 billion (US$8.3 billion), against AED 22.8 billion (US$6.2 billion) for the equivalent year previously.
DIB's net profit (including depositors' share) for the first nine months of 2005, reached AED1.465 billion (US$ 400 million), as against AED710 million (US$ 195 million) for the same period of last year, registering 106 per cent growth. The bank's assets at the end of September 2005, rose AED5.3 billion (US$1.45 billion) to AED33.4 billion (US$9.1 billion), compared to AED28.1 billion (US$7.6 billion) at the end of September 2004.
The bank has been proactive in creating partnerships and alliances at local and international level. DIB has adapted an aggressive expansion strategy, which started with the establishment of DIB Pakistan Limited, a wholly owned subsidiary of DIB. The bank has also co-managed Pakistan's US$600 million first Sovereign Islamic bond issue that received a tremendous response from investors.
DIB opened its first representative office in Turkey to improve its access to that market. DIB has also acquired 60 per cent of its stake in Al Khartoum Bank and is also among the parents banks of Emirates and Sudan Bank (ESB), which recently completed its US$28.5 million IPO and was oversubscribed by more than US$224 million. The steps taken mark DIB's ambitious plans to roll out its operations into regional and international markets as part of its overall strategic plan.
DIB has also shown its outstanding capabilities by being appointed to provide specialist financial solutions for huge developmental projects within the UAE, one of which led to the world record US$1 billion Islamic bond issue. The issue was arranged for the Government of Dubai's Department of Civil Aviation to raise funding for the second phase of the expansion of Dubai International Airport. The bank also managed financing of US$350 million for Nakheel. The financing made further capital available to build on Nakheel's blue chip portfolio of developments such as The Palm in Dubai.
For further information, please contact:
Tim Harrison
ASDA'A Public Relations
Dubai
UAE
Tel: +971-4-3344550
Fax: +971-4-3344556
E-mail: info@asdaa.com
Tarek Fleihan
ASDA'A Public Relations
Dubai
UAE
Tel: +971-4-3344550
Fax: +971-4-3344556
E-mail: info@asdaa.com
© Press Release 2005
