Dubai Islamic Bank

Dubai Islamic Bank chief takes over as Tamweel chairman

Dubai-based Islamic mortgage lender Tamweel has said that the chief executive of Dubai Islamic Bank Abdullah Ali Al-Hamli has been appointed as its new chairman after the board of directors was dissolved last week.

DIB CEO is Tamweel chairman

The new chairman of Tamweel is Dubai Islamic Bank Chief Executive Abdulla Ahali Al Hamli. The reason is that last week the board of directors was disolved.
The company said Hamli replaces Sheikh Khaled bin Zayed Al Nehyan as chairman while Mohamed Abdulla Al Nahdi was elected vice-chairman.

Dubai Islamic Bank mortgages go to Tamweel

Dubai Islamic Bank (DIB) will transfer most of its mortgage activity to Tamweel after taking a majority stake in the Islamic home finance company.
The move comes as the mortgage company resumes lending for the first time in two years.
Tamweel's board is going to meet tomorrow to discuss the appointment of new members and to approve financial statements for 2008 and last year.

Mideast banks tap women's wealth

Emirati housewife Sarah Alzarouni brushed past a group of women clad in floor-length black robes, some with only their eyes showing, to enter through the frosted doors of one of Dubai Islamic Bank’s women-only branches.
Clutching a Louis Vuitton bag to match her designer head scarf, Ms. Alzarouni greeted the female tellers and bank manager with three kisses on the cheek and sat down to do business.
Financial institutions in the conservative Gulf Arab region, where many women are reluctant to mix with men outside their families, are tapping into the niche, with women-only bank branches and investment funds mushrooming.
Saudi Arabia, the birthplace of Islam where unrelated men and women are not allowed to mix, is leading the charge.
Industry experts say more women need to participate in the Islamic banking industry at senior levels to help grow products that appeal to a female clientele. But while the finance industry remains a boys club around the world, the glass ceiling is lower in the Middle East.

A.T. Kearney says mergers and acquisitions essential for Islamic banking sector

With the room for further organic growth being limited, mergers and acquisitions should be considered as an avenue for sustained growth, says A.T. Kearney.
According to A.T. Kearney, the global financial crisis has put an end to the heydays of growth in the banking sector and the current market outlook suggests that these days are not returning quickly. Islamic banks, which traditionally grew faster than their conventional peers, are also affected.
The global financial crisis highlighted the need for consolidation in the Islamic banking industry in the region. Growing out of their niche and becoming mainstream business is considered one of their major challenges and if Islamic banks do not succeed, the room for further organic growth is limited as the market space in some GCC countries is already overcrowded.

DIB's realty exposure jumps to half of its loan book

Dubai Islamic Bank's real estate exposure has crossed half of its total loan book following the acquisition of mortgage lender Tamweel , putting pressure on the bank's balance sheet due to rising mortgage delinquencies.
The bank has been attempting to restrain its property exposure over recent quarters, and this transaction reverses this trend, a study said.
According to Madha, Istithmar, Dubai Capital Group, Dubai Investment Group and others - which are short of cash - sold Tamweel stake to DIB.

Merger with Amlak unlikely, says Tamweel chairman

Sheikh Khaled bin Zayed al-Nehayan, chairman of Tamweel, has said that the merger with Islamic lender Amlak has likely been scrapped. The biggest shareholder in Tamweel is Dubai Islamic Bank and there are no longer any thoughts on a merger, at least not at the present moment.

Fitch raises Tamweel rating to positive

Fitch Ratings has revised the Rating Watch on UAE-based Tamweel's Long-term Issuer Default Ratings (IDR), Short-term IDR, Support Rating and Support Rating Floor to 'Positive' (RWP) from 'Evolving' (RWE). The move follows the acquisition by Dubai Islamic Bank of a majority stake in the Shari'ah-compliant mortgage lender. The rating agency also affirmed Tamweel's 'E' Individual Rating, reflecting its weak standalone risk profile.

Dubai Islamic Bank increases stake in Tamweel to 57 per cent

Dubai Islamic Bank has become the majority shareholder in Tamweel, taking management control; bank's liquidity 'to positively impact' Tamweel's business. The transaction marks an important milestone for the bank and the UAE property market”, said His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.
“Dubai Islamic Bank has always been committed to the growth and prosperity of Dubai and the UAE, and we hope that this landmark deal will have a positive impact not only for the real estate sector but the UAE’s overall economic environment,” he added.

IIT debut sukuk in UK may lead to spate of new issuances

The recent launching of the first corporate Sukuk out of the UK by Gateshead-based International Innovative Technologies (IIT) may have taken the Islamic capital markets by surprise, but the signs are that a spate of other UK originations may follow over the next few months. A major GCC-based sukuk arranger confirmed that it has been working on a corporate sukuk issuance for a UK healthcare company for the last year. The company hopes to launch the issuance next month. A London-based Islamic bank is also working on a sukuk issuance for a UK client which is near to being finalized. Tom Wilkinson, chairman of IIT, is confident that there is potential for other UK companies to access Islamic finance including sukuk as an alternative source of funding. The proceeds of the IIT sukuk, according to Wilkinson, will be used as growth capital for the company. The sukuk issue was placed privately with Millennium Private Equity Ltd., leading private equity firm based in the Dubai International Financial Centre (DIFC) and regulated by Dubai Financial Services Authority (DFSA). Millennium Private Equity Ltd. is co-owned by United Gulf Bank (UGB) and Dubai Islamic Bank (DIB).

Mideast's wealthy community grows 7% in 2009

The number of High Net Worth Individuals (HNWIs) in the UAE dropped almost 20 percent last year. The growth levels in the Middle East were the lowest of all the regions surveyed in the report and Amir Sadr, head of Middle East Merrill Lynch Wealth Management, said this was evidence that the region had underperformed in 2009. A new study by the Boston Consulting Group (BCG) found that millionaire households owned more than half of the wealth in the Middle East and Africa region in 2009.

DIB launches new Takaful scheme

Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, has launched a comprehensive accidental death and disability insurance plan offered at a very affordable annual premium, a statement said.

Moody's downgrades three Dubai-based banks

Moody's Investors Service has today downgraded the ratings of three Dubai-based banks -- Emirates NBD,
Mashreqbank PSC and Dubai Islamic Bank PJSC. These ratings were placed under review in August 2009 in response to a weakening of economic conditions in Dubai.

Dubai Islamic Bank launches Wajaha, exclusive wealth management service

Dubai Islamic Bank (DIB) announced today the launch of Wajaha, a distinguished wealth management service for ultra high net worth individuals. Tailored to meet the distinct needs of the ultra high net worth clients, Wajaha is an invitation-only service that offers unparalleled advantages, from unique financial products to personal relationship managers, offered within a private setting in exclusive Wajaha Centres in Abu Dhabi, Dubai and Sharjah.

S&P: Negative Rating Actions Taken On Four Dubai-Based Banks On Expected Asset Quality Deterioration

Press Release

Negative Rating Actions Taken On Four Dubai-Based Banks On Expected Asset Quality Deterioration

Standard & Poor's has concluded its review of Dubai-based banks, which has resulted in various negative rating actions.

We are lowering the ratings on Emirates Bank International PJSC, National Bank of Dubai, and Mashreqbank to 'A-/A-2' from 'A/A-1'.

We are lowering the long-term rating on Dubai Islamic Bank to 'BBB+' from 'A-' and affirming the 'A-2' short-term rating.

The negative outlooks on all these banks reflect the deteriorating operating environment in Dubai and the impact we expect it to have on the banks' financial profiles.

Dubai Islamic Bank purchases outstanding Sukuk through cash tender offer

Dubai Islamic Bank announced that it has purchased USD 50.6 mn from the partial cash tender offer to retire USD 200 mn of outstanding Sukuk. DIB purchased the certificates at 88 % of the face value.

Dubai Islamic Bank offers to buy back Sukuk up to USD 200 mn

Dubai Islamic Bank offered to buy back up to USD 200 mn of sukuk. Pricing shall be at least 86 % of face value, but not more than 90 % determined by an auction.

Dubai Islamic has USD 750 mn of sukuk due 2012.

Dubai Islamic Bank's shareholders agreed Monday to increase its capital

Dubai Islamic Bank's shareholders agreed Monday to increase its capital by 3 billion dirhams (USD 816 mn) over five years. The bank said in an emailed statement that shareholders at a general assembly also agreed to convert an 3.75 billion-dirham deposit from the Ministry of Finance into Tier 2 capital.

USD 347 mn SYNDICATED Facility arranged FOR Al Ghurair Center LLC

Badr Al-Islami, the Islamic Banking Division of Mashreq, and Standard Chartered Saadiq along with Abu Dhabi Islamic Bank PJSC, Dubai Islamic Bank, Emirates NBD, First Gulf Bank, Ajman Bank and Arab African International Bank have successfully arranged a USD 347 million Dual Currency Syndicated Islamic Finance Facility for Al Ghurair Center LLC. Mashreq and Standard Chartered Bank were the Bookrunners on this deal. The Facility has a door to door tenor of ten years. Proceeds of the Facility will be used to finance the expansion of Al Ghurair City, a well known mixed used (retail, commercial and residential) complex located in Dubai.

Dubai raises USD 635 mn to refinance debt - Chinese and local banks involved

Simeon Kerr reported in The Financial times on 5 April that the Dubai government raised a
USD 635 mn Islamic finance to help retire a USD 1 bn in civil aviation authority debt maturing later this month.

The lease-based Islamic facilty syndication, led by Dubai Islamic Bank, mainly depends on local banks, but Industrial & Commercial Bank of China and WestLB also participated in the syndication, which was priced at 3 % points above US, UAE and euro benchmark rates. It is due to be repaid in three equal semi-annual instalments from April 2010.

It was the first Islamic transaction for the Industrial & Commercial Bank of China with a branch in the DIFC.

Dubai is preparing to seek a sovereign rating in the second half of this year.

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