On March 15 Abu Dhabi Islamic Bank appointed Khamis Buharoun as acting CEO. The appointment of acting CEO Khamis Buharoun is in context of CEO Tirad Marouf Al Mahmoud's medical leave.
Abu Dhabi Islamic Bank (ADIB) has issued a statement clarifying that the story issued by Reuters about a US dollar Sukuk issuance in the next few months is incorrect. Reuters had recently reported that ADIB is planning to make a US dollar-denominated Sukuk issue in May this year. ADIB said that it has no immediate plans to issue any Sukuk and this has been clarified in an official statement to Reuters.
Abu Dhabi Islamic Bank (ADIB) is considering to make a U.S. dollar-denominated sukuk issue over the next few months. The Islamic lender would join a number of Gulf Cooperation Council banks raising debt internationally through both Islamic and conventional bonds to improve their liquidity. Bahrain-based Gulf International Bank was the first regional lender to raise debt internationally this year with a $500 million bond sale in January. It was followed by a $1 billion sukuk sale by Dubai Islamic Bank, a $500 million conventional bond by Ahli Bank Qatar and a $500 million bond by the United Arab Emirates’ Bank of Sharjah.
Abu Dhabi Islamic Bank dismissed reports that it may merge with Al-Hilal Bank as consolidation takes hold in the emirate’s financial-services industry. Abu Dhabi is combining National Bank of Abu Dhabi and First Gulf Bank and two sovereign wealth funds as it seeks to cut costs and merge firms with overlapping assets. The next step could be a tie-up between ADIB with Al-Hilal and a combination of Abu Dhabi Commercial Bank and Union National Bank. Tirad Mahmoud said ADIB plans to stick to its core markets and strengthen its presence. He also said that mergers were a shareholder issue and there might be 'some pressure' on net interest margins this year. ADIB posted a 1% rise in 2016 net profit to Dh1.95 billion ($530 million) on Tuesday as provisions rose to Dh970 million from Dh820 million.
Abu Dhabi Islamic Bank (ADIB) has launched its First Shari'ah compliant equity investment structured note of the year 2017. The note is linked to a basket of undervalued blue chip companies from diversified sectors including healthcare, technology & telecommunications. The investment note has a maturity of one year and minimises investment risk by providing 100% capital protection to the capital invested. The note is currently open for subscription until 22 January, 2017 with a minimum investment requirement of $30,000. ADIB’s last three matured equity investment notes have yielded returns of 4.2%, 4.8% and 6.2%, respectively.
Abu Dhabi Islamic Bank (ADIB) has acted as the sole bookrunner on a AED 1 billion Islamic financing facility for the Meydan business group. Dubai Islamic Bank and Al Hilal Bank were both mandated lead arrangers for the financing, which matures in December 2018. The deal was structured to meet Meydan’s financing objectives, on the back of its ongoing District One Project, a master-planned luxury residential neighbourhood in Mohammed Bin Rashid City in Dubai. Commenting on the transaction, ADIB's CEO Tirad Al Mahmoud said this deal demonstrates ADIB's ability to bring together diverse elements with a particular focus on high-growth companies and the real estate sector. Earlier this year, Meydan raised AED 1 billion Islamic financing through a dual tranche offering, comprising a AED 700 million Sukuk issue and a AED 300 million term facility, both maturing in 2024. ADIB acted as the sole coordinator of the transaction.
The UNEP Finance Initiative Global Roundtable 2016 was held at the Grand Hyatt Hotel in Dubai. The panel of Islamic bankers and investors highlighted that the heart of sustainability lies in ethical business practices such as those espoused by Islamic financing. The experts mentioned that most Islamic institutions were under increasing pressure to integrate environmental impact and sustainability into their decision-making process. CEO of Abu Dhabi Islamic Bank, Tirad Al Mahmoud, said ethics themselves were the answer to everything. He added that financial regulators often failed to properly apply incentives and disincentives, and suggested ethical investments could be rewarded by discounts on capital. Panellist Nida Raza, Director of Advisory Services at the Islamic Centre for Development of the Private Sector, said she believed Islamic finance bodies must become more inclusive.
Abu Dhabi Islamic Bank (ADIB) reported nearly flat third quarter net profit, thus being the latest bank in the United Arab Emirates to suffer from a rise in bad loans as a result of the economic impact of lower oil prices. ADIB made a net profit of 508.9 million dirhams ($139 million) in the three months ending Sept. 30, compared to 503.2 million dirhams in the same period a year ago, up 1.1%. Earlier this month, ADIB chief executive Tirad al-Mahmoud said the bank's earnings in the second half would be similar to the opening six months of 2016. ADIB booked credit provisions and impairment charges totalling 267.7 million dirhams in the third quarter, compared to 193.0 million dirhams in the year-ago period. Net revenues in the third quarter were up 7%, reaching 1.37 billion dirhams compared to 1.28 billion dirhams in the prior-year quarter.
Abu Dhabi Islamic Bank (ADIB) and Thomson Reuters have announced the three finalists for their Ethical Finance and Innovation Challenge and Awards (EFICA). The three finalists will present their entries at the fourth edition of the awards ceremony that will take place on 26th of October, 2016 in Dubai. The Ethical Finance Initiative Award carries a $100,000 prize, and is for innovative solutions or initiatives that promote ethical practice in the financial services industry. The three finalists are: EthisCrowd, as the world’s first Islamic Real Estate Crowdfunding platform, LaunchGood, as the world’s leading crowdfunding site for Islamic Finance and the Islamic Finance Institute of Southern Africa’s micro finance initiative in Indonesia. The EFICA Lifetime Achievement Award will also be presented at the event.
UAE-based telecommunications provider 'du' has been selected by Abu Dhabi Islamic Bank (ADIB) to deliver opex-driven co-location services in the UAE. ADIB will be able to develop its operations with a foundation in secure data centre infrastructure as well as flexible and scalable network options. Fahad Al Hassawi, CEO of du, said the company's Data Centre and Managed Services are designed to enable rapid growth. ADIB will drive new cost-efficiencies while benefiting from infrastructure that is ready to scale and adapt as its business grows. du provides an ecosystem of network infrastructure to give customers easy access to Cloud service providers and markets across the MENA region. du’s data centre services won the best Enterprise Service award at Telecoms World Awards 2016.
The recent announcement of Abu Dhabi Islamic Bank (ADIB) to enter the #fintech era through a partnership with a digital-only bank is a good example how the times in the banking industry are changing. ADIB partnered with Fidor Bank to launch what it calls the GCC’s first 'community based digital bank', targeting the region’s 'millennials', or 'Generation Y', who are looking for digital banking offerings matching their life- and working style needs. Tirad al-Mahmoud, CEO of ADIB, said the bank's proposition would allow users to completely change the way they bank and manage their finances using digital technology to serve all their banking needs. For every financial transaction there are new digital services in development and the Islamic finance industry will have to follow suit. According to EY consultancy, it is not enough for Islamic banks to introduce new digital channels, they must completely reinvent their customer processes to offer technology-enabled, simple end-to-end experiences.
Abu Dhabi Islamic Bank (ADIB) has partnered with Fidor Bank to launch the region’s first 'community based digital bank'. The new platform is designed to fit the lifestyle of millennial consumers also known as Generation Y. Fidor Bank is Europe’s original digital challenger bank. The bank centres around an online community, where users can exchange financial advice and also help co-create banking products. According to CEO of ADIB, Tirad Al Mahmoud, the new platform will allow users to completely change the way they bank and manage their finances using digital technology to serve all their banking needs. The 'new digital bank' will be available for existing and new customers to sign up to in the upcoming months.
Abu Dhabi Islamic Bank said on Sunday its shareholders have approved the decision to pay more than 24 per cent, or Dh0.2427, per share for the year. The annual general assembly also approved the financial statements for the year to December 2015. The bank posted an 11 per cent increase in net profit in 2015. The bank recorded a net profit of Dh1.943 billion compared with Dh1.75 billion in the same period in the previous year.
Abu Dhabi Islamic Bank (ADIB) has signed a partnership agreement with the UAE’s Ministry of Social Affairs and will thereby support the "Tejuri" initiative. H.E. Naji Al Hai Mubarak strongly believes in the importance of strengthening the cooperation between the governmental and the private sector, in order to provide the best services. The banks will also offer cash prizes to encourage children to open long-term savings accounts. He believes that providing children with financial literacy will play a key role in their future financial decisions and will build a sense of responsibility which will contribute to a strong national economy.
Fitch Ratings claims that after Abu Dhabi Islamic Bank's (ADIB) hybrid Tier 1 Sukuk further UAE banks are likely to follow their example and issue Basel III-compliant bonds. Both conventional and Shari’ah-compliant banks are expected to issue Tier 1 products in the coming year. Fitch also noted that relatively high levels of capital are a necessity for banks in the Gulf region in order to deal with the difficulties in the operating environment. Moreover, hybrid Tier 1 instruments are believed to be a cost-effective means of accessing a wider investor base.
This week, Abu Dhabi Islamic Bank (ADIB) plans to issue a hybrid sukuk. However, it is likely that investors will demand a big premium for the rare structure. According to expectations, the bank will raise minium $500m to shore up its core capital, complying thus with tighter Basel III global standards. This is a prerequisite for the Tier 1 capital which will be introduced in the UAE in the years to come. ADIB’s Tier 1 sukuk structure is different from the usual instruments to raise Tier 2 capital sold by different Gulf lenders. Firstly, there is no maturity date. Also, the principal is repaid at the discretion of the issuer.
Abu Dhabi Islamic Bank (ADIB) has managed to bring up Islamic finance as an ethical and sustainable business model in the global financial scene. In a TV series launched by Bloomberg TV and sponsored by ADIB, CEO of ADIB Tirad Al Mahmoud explained his view of Shari'a-compliant banking being a viable, resilient and ethical business model. Especially because of the global financial crisis, the demand for ethical banking all around the world has been extremely high.
Abu Dhabi Islamic Bank (ADIB) announced their expansion to Iraq yesterday. By opening a branch in Iraq, the bank becomes the first financial institution in the UAE which launches operations there with license from the Iraqi Central Bank. The branch of ADIB will be situated in Baghdad and will be managed by Jawdat Mahmoud Jawdat. ADIB aims to develop the Islamic finance industry in Iraq using best in class Islamic banking products.
Renewable energy such as hydropower, solar and wind energy is becoming focus of some Islamic banks. Especially solar power projects attract major investment in the Middle East and North Africa (MENA). Among the projects are Abu Dhabi’s Masdar City and the German-led Desertec Industrial Initiative (DII). It is expected that energy export thrughout the MENA region and into Europe will become possible.
The National Bank for Development (NBD) together with Abu Dhabi Islamic Bank (ADIB) revealed its 2011 financial results, which showed positive indicators despite the circumstances the Egyptian economy faced during the past year.
Nevine Loutfy, Managing Director and CEO of NBD, stated that NBD's achievements during 2011 confirmed the strong and superior performance of the bank's employees, which was shown in the significant growth in both assets and liabilities, in addition to increasing the bank's market share and reducing the provisions gap.