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Dubai Islamic Bank a strong force in Islamic Finance, sees Pakistan a major growth market

Dubai Islamic Bank (DIB) in 2016 witnessed a phenomenal increase in profitability. Seeing the vast achievement of DIB at both the Group and country level, it outlined a detailed 2017 growth strategy for the franchise in the country. Pakistan is a vital country for DIB Group and the franchise here is an integral part of DIB ever-expanding global operations. From establishment of operations just 11 years ago to a franchise that boasts more than 240 locations across 62 cities in Pakistan and its phenomenal growth DIB are all extremely proud of. Dubai Islamic Bank Group sees Pakistan as a significant growth market in 2017.

Over the last few years, DIB consolidated performance at the group level has been highly impressive despite the challenges in the region with regards to liquidity, lower oil prices and general economic slowdown.

The reason for success and that of Islamic finance in the UAE general has been the fact that DIB was overall leader in the market players. DIB today enjoy more than 6 percent share of the overall banking sector. DIB Group has a dynamic history more than forty years. As a pioneer of modern Islamic banking, the bank is viewed as the key influencer in the progression and advancements in the field of Islamic finance.

Dubai Islamic Bank (DIB) was established in 1975 as the world’s first Islamic Bank in the United Arab Emirates (UAE). With Group assets of $50 billion, a market capitalization of around $7.0 billion, and workforce of more than 8000 employees within the group, the organization is fast being recognized as a strong force in Islamic finance and one of the most progressive Islamic finance institutions in the world.

Currently, DIB has presence across all emirates in the UAE with growing international operations in South Asia, Far East, Middle East, Europe and Africa. Established in 1975, Dubai Islamic Bank is the largest Islamic bank in the UAE by assets and a public joint stock company listed on the Dubai Financial Market. It is the world’s first full service Islamic bank and the fourth largest Islamic bank in the world.

The Bank currently operates 90 branches across the UAE, is present in seven markets worldwide and is expanding its global footprint to further grow and develop the industry. Serving close to 1.7 million customers, DIB offers its growing consumer base an increasing range of innovative Shariah compliant products and services.

It has been active in creating partnerships and alliances at both the local and international level. The bank has established DIB Pakistan Limited, a wholly owned subsidiary which has a network of more than 240 locations across 62 major cities in Pakistan. DIB also received regulatory approval to increase its shareholding in PT Bank Panin Syariah in Indonesia to 40 percent.

Embarking on a newly established growth agenda in 2014, the Bank has been a leading performer in the UAE financial sector over the last three years with record breaking performance despite volatile market conditions. The massive growth has seen DIB’s market share cross over 6 percent, the financing book nearly doubling and deposits growing by over 50 percent during the same period.

Even more impressive is the more than 100 percent growth in profits in the last three years as DIB joined the exclusive USD 1 billion profit club in the country. The Bank’s ultimate goal is to make Islamic finance the norm, rather than an alternative to conventional banking for businesses and consumers worldwide.

DIB has won a range of praise that are testament to these efforts across diversified areas, including retail, corporate and investment banking, as well as CSR and consultancy services. Consequently, DIB has been recognized as “Best Islamic Bank in the UAE” at the 2016 World Finance – Islamic Finance Awards, and has received four major accolades at the 11th Islamic Business and Finance Awards 2016, including “Best Retail Bank in the UAE, Best Corporate Bank in the UAE, Best Sukuk Arranger and Best Islamic Bank”. In addition to the “Best Sukuk House” awarded at the EMEA Middle East Banking Awards 2016.

DIB was also honored with record twelve accolades at the Islamic Finance News Awards 2016, receiving among the awards “Best Overall Islamic Bank” and “Best Islamic Bank in the UAE” for the second consecutive year. These awards were in addition to the eight landmark transactions the Bank was recognized for at the 2016 IFN “Deals of the Year” Awards including “UAE Deal of the Year”.

CLIENTS FACILITY IN PAKISTAN

The Corporate Banking & Finance teams of Dubai Islamic Bank Pakistan are focused on providing tailor-made Shariah Compliant solutions to fulfill the financial requirements of the large multinational and local public and private enterprises of Pakistan. Corporate clients are facilitated with exclusive services from DIB dedicated teams of Relationship Managers, through offices in Karachi, Lahore, Islamabad, Multan, Faisalabad and Gujranwala.

DIB is geared up to serve customer’s credit, trade, foreign exchange, investment banking and various other business requirements in a hassle free, effective and efficient manner. DIB has an array of products catering to the working capital, trade, project financing and BMR requirements of customers operating in a variety of sectors including power, cement, textile, automobile, consumer goods, food, health, services and many other important segments of Pakistan’s economy.

Relationship teams work in close liaison with our extremely capable Product Development teams to structure products according to the specific needs of the customers.

General product suite is as follows:

Working Capital Products: Murabaha; Istisna Cum Wakala; Tijarah; Wakala Istithmar (local) and Running Musharakah

Long Term Financing Products: Shirkat-ul-Melk Cum Ijarah; Diminishing Musharakah; Sukuk and Fleet Finance

Trade Products: Import Murabaha; Islamic Export Refinance; Wakala Istithmar Pre Manufacturing; Wakala Istithmar Post Manufacturing; Trade Services; Letters of Credit and Letters of Guarantee.

FIRST ISLAMIC VISA DEBIT CARD IN PAKISTAN

The Dubai Islamic Bank (DIB) launched two new consumer products, First Islamic Visa Debit Card and Dubai Islamic Home Financing. The Islamic Visa Debit Card has already acquired a 5,000 subscriber-base within a very short span of time and this number is growing steadily. Since its introduction it has 100,000 ATM transactions to date.

Similarly, Islamic Home Financing Service has catered to transactions amounting to Rs300 million within two months. The bank had received applications of more than Rs5.5 billion for this facility.

Remarkable performance speaks for two things – a dedicated sales team and an outstanding product. The plan of the Dubai Islamic Bank would diversify its portfolio further and more products would be introduced keeping the Pakistani market in view.

The accounts linked to this card are based on the principles of Shariah and generate Halal profits giving account holders the best of both worlds.

Dubai Islamic Bank Pakistan Limited (DIBPL) entity ratings have been upgraded by JCR-VIS Credit Rating Company Limited from ‘A+/A-1’ (Single A Plus/A-One) to ‘AA-/A-1’ (Double A Minus/A-One). Outlook on the assigned ratings is ‘Stable’.

Ratings assigned to DIBPL are driven by improvement in key performance areas and strong profile of its sponsor.

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