IslamicFinance.de

Dubai Islamic Bank has revealed plans to expand its operations to Africa as well as Asia, as it seeks growth for its domestic and international business. According to DIB’s chief executive Adnan Chilwan, the bank is exploring opportunities in Indonesia, Kenya and surrounding countries in Africa, the Indian subcontinent and the GCC, with the hope of doing this via acquisition, Joint Venture, establishment of a finance company, or through a greenfield operation startup. Given a five-year scenario, the bank expects a decent franchise spread across these countries with stable and solid yields across all sectors. International business is estimated getting at best 10 to 15 percent of the overall group numbers in about six to eight years.

The Board of Directors of Dubai Islamic Bank approved to increase the foreign ownership limit (FOL) from the current level of 15% to 25%. The decision was taken to address the huge demand for DIB shares by large foreign institutional investors. Although a highly liquid scrip on the exchange with approximately 60% free float, the foreign ownership cap was restricting the large global institutional investors keen to participate in the organisation’s success. With the MSCI upgrade taking effect next year, the decision to raise the cap has opened doors for numerous global investors to take advantage of their emerging market allocations and invest in one of the top picks on the exchange. With the Board approval for FOL increase in place, the bank will now proceed to follow the required regulatory process to formalise this decision in due course.

Dubai Islamic Bank (DIB) Group has reported a net profit of Dh1.2 billion for the first nine months of the year, up 33.5 per cent compared with Dh899 million reported in the same period in 2012. The bank attributes a 33.5 per cent increase in net profits to increased core business and lower provision requirements due to improved asset quality and overall improvement in the economic environment in the UAE. Net operating revenue of the bank at the end of the third quarter was Dh3.2 billion, up 5.6 per cent from Dh3 billion in the first nine months of 2012. Operating profit before impairments was up 7 per cent at Dh1.95 billion from Dh1.83 billion in the same period in 2012. The bank made provisions of Dh751 million in the first nine months of the year compared with D922 million in the same period in 2012. DIB continues to manage asset quality and non-performing assets by cautious lending and conservative provisioning approach.

Dubai Islamic Bank, the UAE’s largest Islamic lender, is refocusing on growth, says CEO Adnan Chilwan. This year, Chilwan expects a double-digit rise in DIB’s financing portfolio for the first time since 2008. Chilwan says that in early 2014 DIB’s ratio of non-performing assets will fall below 10%. DIB is reaping the benefits of a rebounding local real estate market, but Chilwan says he is not fuelling another bubble in the sector. He also says the bank aims to reduce the proportion of its portfolio dedicated to real estate financing to between 22% and 25%. According to Chilwan, an important part of efforts to sustainably grow the bank’s revenues has been a greater focus on retail: including personal and car finance, as well as mortgages.

The Bank of Karthoum will add 12 new retail branches and cash points, mainly in eastern and central Sudan, bringing the total number to 75 by next year and has steadily expanded its business in Africa. Its main shareholders, Dubai Islamic Bank, Sharjah Islamic Bank and Abu Dhabi Islamic Bank, are more than tripling the capital. In a second expansion step, the bank will launch several dedicated funds for private firms to finance the export of livestock and agricultural products such as sesame seeds to Gulf Arab countries, Jordan and Egypt. Faced with the loss of most oil reserves to South Sudan, Sudan is trying to boost exports of gold and farming exports such as cotton, cash crops or gum arabic from its vast farmlands.

Dubai Islamic Bank announced that it has settled all bilateral liabilities of mortgage provider Tamweel, two years ahead of scheduled maturity. The outstanding liabilities were part of a five-year moratorium. The bank cited “robust capitalisation and ample liquidity” as the reasons for early repayment.

Growth of Shariah-compliant banks in Qatar is poised to outpace that of the UAE lenders as borrowing rises amid $200bn in government spending for the 2022 soccer World Cup. Qatar's four Islamic lenders will almost double their asset base to $100bn by 2017, Standard & Poor's has said in a report. Last year, the assets of the largest Shariah-compliant bank in the country, Qatar Islamic Bank, grew five times faster than those of the biggest one in the UAE, Dubai Islamic Bank. Spending for the world's most-watched sporting event will spur lending for roads, stadiums and hotels.

Dubai Islamic Bank (DIB) is to offer UAE nationals mortgages worth 100 per cent of their property in conjunction with the Mohammed Bin Rashid Housing Establishment. DIB will offer housing loans worth up to Dhs2 million over a 25-year period, with interest rates starting at 3.99 per cent. The announcement by DIB is in partnership with the Mohammed Bin Rashid Housing Establishment (MRHE), which ‘aims to enhance the quality of life for UAE nationals living in Dubai by helping them access superior housing’. The move flies in the face of impending regulations from the UAE’s Central Bank that is expected to cap lending for local first-time homeowners to 80 per cent of the home’s value and 75 per cent for expatriates, with lending for additional homes expected to be capped at 65 per cent and 60 per cent.

The founders of Bosna Bank International (BBI), the first bank in Bosnia and Herzegovina to do business based on Islamic principles, are to inject an additional 15 million euros to its capital stock to ensure business growth, according to the bank's director Amer Bukvic. The Islamic Development Bank (IDB), the Dubai Islamic Bank and the Abu Dhabi Islamic Bank had decided to inject fresh capital into BBI to the amount of 30 million convertible marks (EUR 15.3m). The fresh capital will be used to reinforce the bank's position in the medium-sized banking segment on the Bosnian banking market. BBI's assets will amount to 500 million convertible marks (EUR 255.7m) after the capital increase. Moreover, Bukvic announced that the bank would be releasing loans to the value of 300 million convertible marks (EUR 153.4m).

Dubai Dubai Islamic Bank (DIB) recorded a net profit of Dh739 million in the first half of this year, up 25 per cent from Dh592 million during the same time a year ago. Net profit for the second quarter of this year reached Dh437 million, up 31 per cent from compared to Dh334 million registered during the corresponding time last year. Net revenue for the first half of the year amounted to Dh2.1 billion, an increase of 10 per cent from Dh1.9 billion recorded during the same period in 2012. As of the end of June, the bank’s total assets reached Dh111.1 billion, customer deposits grew by 23 per cent to Dh82.4 billion. The bank’s gross investing and financing assets rose 1.4 per cent to Dh59.6 billion. During the first half of the year, the bank expanded its retail franchise to include three branches and 23 ATMs to its network. Additionally, it completed its acquisition of Tamweel, an Islamic home finance provider.

Dubai Islamic Bank (DIB) has appointed Adnan Chilwan as chief executive. Chilwan, who was previously deputy CEO at the bank, replaces Abdullah Al Hamli who was named managing director. The management reshuffle at DIB comes when the bank is preparing for renewed growth, after it set aside about 5 billion dirhams ($1.36 billion) against bad loans following the 2009-2010 crash of Dubai's real estate market. According to Chilwan and Al Hamli, the bank has dealt with much of its balance sheet weakness and should see profits for 2013 grow in the double digits, allowing it to eye acquisitions in new markets in Asia. DIB, which is in the process of acquiring Islamic mortgage lender Tamweel , became the second Gulf bank to issue a hybrid perpetual sukuk when it priced in March a $1 billion Islamic bond to boost its Tier 1 capital ratio.

Dubai Islamic Bank (DIB) has announced the launch of the Al Islami FlexiBeta Dirham Certificate, a two-year Islamic certificate, providing investors with exposure to either emerging market equities or gold, depending on market conditions. The Certificate is issued by Oasis Certificate Programme Limited, a Special Purpose Vehicle that has been set up and sponsored by Citigroup to provide investors with a wide range of customised Shari'ah-compliant investment solutions. The certificate uses a framework comprising of observation of recent price trends and a forward looking risk indicator to adjust allocation between two asset classes, equities and gold. Investors will enjoy a capital protection without tying all their capital for the whole investment period. They will receive 90% of their total investment within two weeks of the issue date, with returns based on the full investment amount. The certificate is denominated in UAE dirhams with a minimum investment of AED 100,000.

Sharia-compliant mortgage lender Tamweel said on Monday its shareholders had approved the company's delisting from the Dubai stock exchange, paving the way for its acquisition by Dubai Islamic Bank. Dubai Islamic Bank said in January it planned to acquire all of Tamweel, in which it owned 58.2 per cent, through a share swap agreement which would see each Tamweel shareholder offered 10 DIB shares for every 18 Tamweel shares they held.

Thuraya Telecommunications Company has secured a term financing facility through Dubai Islamic Bank (DIB). Thuraya will use the proceeds to upgrade its network infrastructure and to support further development and expansion of its product portfolio, including the highly successful Thuraya SatSleeve satellite adaptor for smartphones. According to Samer Halawi, Chief Executive Officer of Thuraya, this long-term relationship with DIB will help his company to strengthen its position as a leading MSS operator and provide it with additional financial flexibility to develop its next generation gateway and upgrade its network capacity. It also provides Thuraya with the breadth that supports its sustainable growth strategy as well as new business opportunities in key and emerging markets.

Thuraya Telecommunications has secured a long-term financing facility through Dubai Islamic Bank (DIB). Thuraya said it will use the proceeds to upgrade its network infrastructure and to support further development and expansion of its product portfolio, including a SatSleeve satellite adaptor for smartphones. Adnan Chilwan, deputy chief executive officer of DIB said in a written statement that the deal makes DIB the preferred partner for fuelling the growth of progressive companies like Thuraya.

Job Objective:

Responsible for managing the Foreign Account Tax Compliance Act (FATCA) quality assurance and due diligence functions for all DIB customers in order to properly identify those who hold USA citizenship from others and new onboard.

Job Description:

Perform the Enhanced Due Diligence process for all new and existing clients within DIB in order to analyze the gaps between the current state and the desired state.

Conduct ongoing EDD for non-USA customers to properly identify those who became USA citizen afterwards, as well as for USA citizens who are no more classified as USA citizens.

Work within the regulatory framework laid for FATCA, and coordinating the development of due diligence and processes to ensure optimum compliance.

Control assessment methodologies, conduct independent reviews and assist with the remediation of findings from regulators.

Manage due diligence remediation efforts in response to regulator and internal audit findings, enforcement action assistance, creating action plans for remediation activities.

Monitoring and implementing due diligence remediation activities, and reporting to and interfacing with regulators.

Job Description

Job Objective:

To review the bank’s new product programs, policies, procedures, cycles re-engineering, and any amendments thereof to ensure efficiency & effectiveness of processes & controls.

Job Responsibilities:

Represent RMG in the committees formed for launching new products, process cycle re-engineering, new policies & procedures development, and any subsequent amendments thereof in order to share proposals and concerns as well as suggestions to mitigate the identified risks.

Review drafted new product programs, policies, procedures, proposed memos in order to highlight gaps in controls & inefficiency in process flows.

Liaise with stakeholders in order to discuss areas of concerns, assess overall residual risks of unresolved concerns & recommend for enhancement.

Follow up with the concerned departments for the revision of the policies & procedures in order to present changes for stakeholders’ review and document changes through the Policy & Procedures Dept.

Assist Risk Management in identifying the inherent risks that exists in the bank’s processes in order to share them with stakeholders.

Job Responsibilities:

Manage the daily activities and responsibilities of staff involved in the Syndicate/Agency functions & facility set up.

Maintain effective diary system so that all time bound actions are taken without any lapse.

Maintain all real and shadow accounts related to syndication operation with full details.

To supervise the processes of Asset Distribution transactions

Authorize/approve release of facilities as a authorizer.

Arrange to set up various Escrow, project, collection, incomes accounts to manage structured facilities. Review daily reports/exceptions/irregularity and inform the manager of any deviations for corrective actions.

Monitor performance of team and exercise appropriate control measures.

Assist in monitoring and valuing the security/collateral on a regular basis to ensure that any shortfall in security is immediately recognized and reported for rectification by Business Departments.

Manage and resolve the operational problems by probing into the issues and corrective steps to avoid reoccurrence.

Within delegated authority, authorize to approve release of limit in system.

Job Objective:

To provide under the supervision and guidance of the Head of Legal and Line Manager in depth legal advice and support to the Bank and its subsidiaries in the achievement of their daily business requirements.

Job Responsibilities:

Advice internal clients on the best possible legal structure of a transaction, participate in the negotiation with counterparties, structure the deal and prepare documentation, drafting and reviewing contracts, agreements, powers of attorney and all other legal documents.

Provide legal support and service to the business units under the guidance and direction of HOD and Line Manager.

To assist in formulation/implementation of credit policies by maintaining a log of all policy related changes/amendments, preparation of various MIS reports/presentation, conducting policy trainings to sales channels, target market enlistment & record maintenance, conducting quality assessment review as per bank’s policy and procedures.