DIB gets Jordan banking licence
Dubai, July 6, 2009
Dubai Islamic Bank (DIB) said that Jordan-based Industrial Development Bank (IDB) has received a preliminary banking licence by the Central Bank of Jordan to operate as an Islamic financial institution.
The new entity, Jordan Dubai Islamic Bank (JDIB), will begin operations with a share capital of $100 million.
Earlier this year, DIB announced the official re-launch of IDB following the completion of a private placement of 26 million shares of IDB. Mesc Investments now owns a 52 per cent stake in the new entity, acquired through the private placement in February this year.
Mesc is owned 40 per cent by DIB and 60 per cent by Jordan Dubai Capital.
In addition to its stake in newly-formed JDIB, DIB is providing the technical support and supervision needed to restructure it in line with international best practices for Islamic banking by giving access to DIB's extensive expertise in structuring innovative Sharia-compliant financial products and services.
“The successful transformation of IDB to JDIB reflects DIB’s commitment to Islamic banking and the Jordanian economy,” said Khaled Al Kamda, Group managing director of Dubai Islamic Bank and vice chairman JDIB.
“We are confident that DIB’s strong experience in Islamic banking will enable us to make JDIB a world-class Islamic finance institution, adhering to international standards and best practices.
“Sharia-complaint investment products are proving to be more attractive more than ever, especially in such times of economic challenges. With strong growth potential, the Kingdom offers great prospects for Islamic banking and JDIB is fully equipped to capitalise on these opportunities.”
Fahad Bin Fahad, executive vice president and chief risk officer of DIB and board member JDIB & Mesc, said, 'Jordan Dubai Islamic Bank marks another chapter in DIB’s successful international expansion. DIB is committed to transforming JDIB into a leading player in Jordan’s Islamic banking sector.'
'We look forward to providing comprehensive Islamic banking services through JDIB, which will satisfy the Kingdom’s growing demand for Islamic banking tools,' he added.
Junaid Ahmed, executive vice president and head of International Operations and Board member Mesc said DIB has successfully consolidated its leadership position through diversification and geographical expansion.
'DIB runs successful operations in Pakistan, Turkey, Iran, and Sudan. Our latest venture adds Jordan to the bank’s growing portfolio.'
'We are confident that DIB, which is built on solid commitment to Islamic banking principles, will continue to maintain its position as the pioneer in global Islamic banking,” he added.-TradeArabia News Service