Dubai Islamic Bank (DIB)

Deyaar and Dubai Islamic Bank to Provide Attractive Home Financing Solutions

UAE real estate developer Deyaar Development has partnered with Dubai Islamic Bank (DIB) to benefit from the bank’s attractive and customised home financing solutions. The solutions will enable customers to make full payment on handover of their property through flexible home financing programs, with monthly installments up to 25 years with options to further extend their home payments at competitive rates. Handover of Afnan District, the first of six districts within Deyaar’s Midtown integrated urban development, began in early November. Comprising seven buildings ranging from seven to 16 floors, Afnan District has a total of 659 apartments, including studios, one-, two-, and three-bedrooms, all of which are sold out.

Dubai Islamic Bank proposes Noor Bank acquisition via share swap

Dubai Islamic Bank (DIB) has proposed the acquisition of Noor Bank through a strategic investment via a share swap. Noor Investment Group and Emirates Investment Authority will become strategic investors in DIB. The share swap ratio is 1 new DIB share for every 5.49 shares of Noor Bank through the issuance of 651,159,198 new DIB shares in aggregate. UAE’s largest standalone Islamic bank will convene a general assembly on December 17 to seek shareholder approval for the proposal. Dubai Islamic Bank was designated by the UAE central bank in 2018 as systematically important. It is the only standalone and full-fledged Islamic bank out of four financial institutions the regulator considers "too big to fail".

#UAE's largest Shariah-compliant bank is about to get bigger: Dubai Islamic board to meet Nov 25 re Noor Bank acquisition

The United Arab Emirates' largest standalone Islamic bank plans to acquire Shariah-compliant Noor Bank. The board of Dubai Islamic Bank (DIB) will meet on November 25 to discuss the acquisition. DIB said that assets post-acquisition will reach nearly 275 billion dirhams ($75 billion). UAE's oldest Islamic bank currently has operations in Kenya, Pakistan and Indonesia and holds a stake in Bank of Khartoum. Dubai Islamic Bank was designated by the UAE central bank in 2018 as systematically important. The bank posted 0.08% increase in net profit to 1.262 billion dirhams ($343.6 million) for the three months ending September 30 compared to the same quarter a year ago.

Dubai Islamic Bank issues $750 mln #sukuk

UAE’s largest standalone Islamic bank has just closed a $750 million sukuk. Dubai Islamic Bank’s 5-year $750 million sukuk sold with a a profit rate of 2.95% and is the bank’s second $750 million sukuk this year. The first was an additional Tier 1 perpetual non-call 6-year sukuk with a profit rate of 6.25% per annum. The bank's lates sukuk attracted orders in excess of $2 billion, representing an oversubscription rate of 2.7 times. Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Maybank, Sharjah Islamic Bank, Standard Chartered Bank and Warba Bank acted as Joint Lead Managers and Bookrunners on this transaction. The Islamic Corporation for the Development of the Private Sector acted as a Joint Lead Manager and Kuwait International Bank acted as a Co-manager.

Dubai Islamic Bank hires banks for dollar #sukuk

Dubai Islamic Bank (DIB) has hired lenders to arrange meetings with investors ahead of a potential issue of five-year dollar denominated sukuk. The selected arrangers include Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Islamic Corporation for the Development of the Private Sector, Maybank, Sharjah Islamic Bank, Standard Chartered Bank and Warba Bank. Investor meetings will take place in Hong Kong and London starting on Nov. 11.

Dubai Islamic Bank partners with Arada to provide home financing solutions

Dubai Islamic Bank (DIB) has partnered with Sharjah-based Arada to streamline the home ownership process for buyers of Arada properties. The home financing partnership will allow property buyers to access highly competitive mortgage rates and exclusive flexible payment plans as well as rapid and easy processing without the need for a salary transfer. In the past two years Arada sold over 4,000 units in its two projects, Aljada and Nasma Residences. Construction on Aljada is well under way, with the first homes scheduled to be handed over in the first quarter of 2020. The lender is also opening a kiosk at the Arada sales centre in Sharjah.

Dubai Islamic Bank board approves plan to acquire Noor Bank

Dubai Islamic Bank (DIB)’s board has approved its acquisition of lender Noor Bank to create one of the largest Islamic banks in the world with combined assets of nearly Dhs275bn. Following the completion of the deal, Noor Bank’s operations will be integrated and consolidated within DIB. The new size and scale will allow DIB to expedite its strategy to expand across the far east, sub-continent, and east Africa with Dubai as the hub. The UAE is seeing a wave of consolidations in the market as banks seek to increase capital due to slowing economic growth. Three of Abu Dhabi’s banks are currently in the midst of a merger. That follows the combination of National Bank of Abu Dhabi and First Gulf Bank in 2017 to create a lender with $175bn of assets.

Dubai Islamic Bank confirms #merger and #acquisition prospects

Dubai Islamic Bank is looking at acquisitions among other options as part of its expansion strategy. A potential acquisition of Noor Bank by DIB would create a lender with AED 275 billion in assets if completed. The Investment Corporation of Dubai (ICD) is the biggest shareholder in DIB with a 28.4% stake, and it also owns 22.9% of Noor Bank. The Middle East’s financial industry is witnessing a wave of consolidation as banks seek ways to improve competitiveness and boost capital. Abu Dhabi is in the process of merging Abu Dhabi Commercial Bank (ADCB), Union National Bank (UNB) and Al Hilal Bank after the consolidation of First Gulf Bank and National Bank of Abu Dhabi to create First Abu Dhabi Bank (FAB) in 2017.

Potential Noor Bank acquisition 'positive' for Dubai Islamic Bank

According to Egyptian investment bank EFG-Hermes, the potential acquisition of Noor Bank by Dubai Islamic Bank would be a positive move for the buyer. Also, there is room for more consolidation among local lenders as the UAE is overbanked, with 22 local and 38 foreign banks, most of which have "sub-optimal" market shares. EFG-Hermes expects a potential transaction to be made through a share-swap. It estimates a share-swap of 1 DIB share for 7.8 Noor Bank shares that would lead to a 1% earnings per share dilution for DIB. The merged entity would have an assets market share of 10%, as Noor Bank's assets amount to Dh51 billion or 2% market share and DIB’s assets amount to Dh224bn or 8% as of 2018.

DIB donates Dh3m to Al Jalila Foundation

Al Jalila Foundation has received a donation of Dh3 million from Dubai Islamic Bank (DIB) to support it’s Aawen (treatment) programme. Since its inception in 2013, Al Jalila Foundation has supported 467 patients from 36 nationalities, including 190 children, and invested Dh34 million to provide relief to patients who suffer from chronic illnesses. The treatment costs for patients, newborn to 90 years of age, have ranged from to Dh20,000 to Dh250,000 per individual.

Dubai Islamic donates $5.4m to RAK charity

The Dubai Islamic Bank (DIB) has donated Dh20 million ($5.4 million) in Zakat money to the Ras al-Khaimah Charity Association. The association will distribute the funds to those eligible for Zakat though legitimate channels during the month of Ramadan. Abdul Razzaq Al Abdullah, head of the Community Services Department of the DIB, handed the donation cheque to Abdulaziz Al Zaabi, chairman of the charity association. Al Zaabi thanked the DIB’s management for its generous support and considerable donation.

Dubai Islamic Bank sees huge demand for capital raising plan

Dubai Islamic Bank (DIB) has announced a successful closing to its capital raising programme. The issuance of 1.6 billion additional shares at price of AED3.11 per share was announced in April with the aim to boost the core capital of the bank by over AED5 billion ($1.36 billion). According to DIB's Group CEO Dr Adnan Chilwan, growth remains on the horizon as the bank’s financial position has become stronger than ever before with improved asset quality and balance sheet. He added that the capital boost will help maintain the bank's "competitive edge".

DIB boosts emirate’s #Sukuk listings to over $53b

Dubai Islamic Bank (DIB) is celebrating the listing of a $1 billion Sukuk on Nasdaq Dubai. The listing is the first benchmark dollar-denominated sukuk from a GCC issuer in 2018. DIB's Group CEO Dr Adnan Chilwan said the bank's master plan was developed a decade ago and has yielded solid results so far. He added that the strong demand for the credit continues to grow across a diverse global investor base. This issuance is DIB’s sixth sukuk on Nasdaq Dubai, making the bank the largest UAE debt issuer by value on the exchange with a total of $5.25 billion. The total value of all sukuk listed on Dubai’s exchanges has now reached $53.47 billion, the largest amount of any listing centre in the world.

Opinion: Global #sukuk market unlikely to repeat 2017 performance

In 2017 the exceptional performance of sukuk was driven by good liquidity conditions, alongside certain countries’ desire to develop their Islamic finance industries. However, the outlook for sukuk in 2018 is more uncertain. According to Mohamed Damak, S&P Global Ratings’ Head of Islamic Finance, tighter global liquidity conditions, mounting geopolitical risks and slow progress on the standardisation of Islamic finance products will continue to hold the market back from its full potential. While sukuk issuance may decrease in 2018, there are a couple of interesting trends. These include the more stringent application of the profit-and-loss-sharing principle supported by several Sharia scholars. The sukuk investor base is broadening, but there is a lack of a specific regulatory framework to protect retail investors.
Dubai Islamic Bank (DIB) has successfully issued a $1bn sukuk with a five-year tenor. It is the first US dollar benchmark sukuk transaction from the GCC in 2018. The issuance emanates from DIB’s $5bn sukuk programme and carries a profit rate of 3.625%. The instrument will carry a dual listing on the Irish Stock Exchange and Nasdaq Dubai.

DIB lists $1b #sukuk on Nasdaq Dubai

Dubai Islamic Bank (DIB) celebrates the listing of a $1 billion Sukuk on Nasdaq Dubai. The Sukuk is the first benchmark dollar-denominated Sukuk from a GCC issuer in 2018. It is DIB's sixth Sukuk on Nasdaq Dubai, making the bank the largest UAE debt issuer with a total of $5.25 billion. The latest Sukuk carries a profit rate of 3.625% with a five-year tenor. DIB's Group CEO Dr Adnan Chilwan said the master plan developed a decade ago has yielded solid results and the strong demand for the credit continues to grow across a diverse global investor base. He added that Nasdaq Dubai provided high visibility in the marketplace as well as close links to investors in the region and internationally.

Dubai Islamic Bank issues $1 billion senior unsecured #Sukuk

Dubai Islamic Bank (DIB) has announced the successful pricing of $1 billion Sukuk issued with a five-year tenor. The issuance carries a profit rate of 3.625% and is the first dollar benchmark Sukuk transaction from the GCC in 2018. The orderbook was driven by strong demand across the globe, including Middle East, Europe, Asia and North America, and across a broad spectrum of investors base. According to DIB's Group CEO Dr. Adnan Chilwan, the strong investor interest demonstrates not only the continued attraction of DIB, but also the resilience of the Sukuk market in general. Bank ABC, Dubai Islamic Bank, First Abu Dhabi Bank, HSBC, J.P.Morgan, KFH Capital, Sharjah Islamic Bank and Standard Chartered Bank acted as Joint Lead Managers and Joint Bookrunners while Union National Bank and Boubyan Bank acted as Co-Managers on the offering.

Islamic banks defy market challenges in 2017

Islamic banks made big gains in financing growth and profitability in 2017 while keeping their operating costs and cost of risks under control. Dubai Islamic Bank (DIB), reported a net profit Dh4.5 billion for 2017, up 11% compared to 2016. Total income increased to Dh10.19 billion, up 18% compared to Dh8.63 billion for 2016. Net revenue for 2017 amounted to Dh7.68 billion, an increase of 14% compared with Dh6.76 billion in 2016. DIB Managing Director, Abdullah Al Hamli, says the UAE continues to be one of the leading Islamic finance markets, with assets now reaching around $150 billion, a 7% growth this year. Emirates Islamic reported a net profit of Dh702 million, up 565% compared to 2016. Decline in operating costs and impairments boosted net profits last year. Sharjah Islamic Bank (SIB) reported a full-year 2017 net profit of Dh477.7 million compared with Dh462.9 million in 2016.

Dubai Islamic Bank weighs capital-raising in 2018 -CEO

Dubai Islamic Bank (DIB) plans to raise capital in 2018 to help support an expected double-digit rise in loan growth. DIB's CEO Adnan Chilwan said the bank was considering options including a rights issue and an issue of Islamic bonds. The final decision will be subject to regulatory approvals. The bank is now targeting loan growth of between 10 and 15% in 2018, the same target it set for 2017.

Dubai Islamic Bank #Pakistan, Shahnawaz Ltd sign strategic alliance

Dubai Islamic Bank (DIB) and Shahnawaz have entered into a strategic alliance agreement. Shahnawaz is the authorized general distributor of Mercedes-Benz in Pakistan. This initiative will help in establishing Dubai Islamic Bank Pakistan as the preferred financial services partner for Mercedes-Benz in the country. The signing ceremony was held in Karachi in the presence of M Naeem, CEO of Shahnawaz, Naseem Shaikh, General Manager of Shahnawaz and Junaid Ahmed, CEO of Dubai Islamic Bank Pakistan. Junaid Ahmed said this alliance enables the bank's high net worth clientele to achieve their dream of driving their own state-of-the-art Mercedes.

#Kenya just stands out: Dr Adnan Chilwan, GCEO, Dubai Islamic Bank

Dr. Adnan Chilwan, CEO of Dubai Islamic Bank (DIB), said that Kenya stood out to the Bank as a stepping stone to expanding its operations into Africa. In May 2017 DIB was granted a banking licence by the Central Bank of Kenya to operate a subsidiary, DIB Kenya. According to Chilwan, Dubai always had the ambition to venture into Far East Asia and East Africa. As DIB had already ventured into Far East Asia, East Africa was the next logical point. From the East African countries Kenya stands out in its regulatory framework and the stability in the country. DIB Kenya is already open and the bank has ambitious plans for East Africa. Chilwan added that Kenya was a country that DIB would be surely focussing on in years to come.

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