Dubai Holding establishes Islamic investment firm

Dubai: Dubai Holding on Tuesday said it has consolidated its investments in Dubai Islamic Investment Group and Dubai Bank under Dubai Banking Group, to form a global Sharia-compliant investment company.

The consolidation is in line with Vision 2015, which highlights the development of the financial services sector in Dubai as a catalyst for future growth and economic diversification of the emirate's resources.

Mohammad Abdullah Al Gergawi, Minister of Cabinet Affairs and chairman of Dubai Holding, said: "The financial services sector is the one of the fastest growing sectors in our economy. This is a tremendous opportunity for our group and we are confident that this strategic step will enhance growth and value creation in the industry and solidify Dubai's position as a leading global financial centre."

Dubai Banking Group will be managed by Dubai Group, the leading diversified financial services company of Dubai Holding. Dubai Group, through its subsidiary Dubai Islamic Investment Group, is credited with the rapid turnaround of Bank Islam in Malaysia to a profitable institution. Dubai Banking Group will continue to focus on investing in Sharia-compliant assets in the Islamic sector, which is expected to continue to grow at a high rate in future.

Mohammad Al Shaibani, chairman of Dubai Bank, said: "Dubai Bank has made significant progress on all fronts and across various business initiatives within retail, corporate and investment banking. I am confident that through Dubai Banking Group, we will be able to capitalise on the opportunities presented and also expand its banking and investment portfolio on a global scale."

Dubai Banking Group has already made investments in leading Islamic financial institutions in the UAE (Dubai Bank), Kuwait (Al Fajer Re-takaful), and Malaysia (Bank Islam) and its combined assets are in excess of $10 billion.

Soud Ba'alawy, executive chairman of Dubai Group, said: "The market for Sharia-compliant investments and financial services continues to grow very rapidly. Dubai Banking Group will be one of the clear leaders in this market and will continue to aggressively target significant direct investments and acquisitions in a wide range of sectors across the world's biggest Islamic markets including the GCC, south east Asia and Africa."

Dubai Banking Group will have a dedicated management team, with a solid track record of managing rapid growth.

Fadel Al Ali, executive chairman of Dubai Holding Operations, will be the non-executive chairman of Dubai Banking Group. Salaam Al Shaksy, who is currently the chief executive officer of Dubai Islamic Investment Group, will be appointed as chief executive of the newly formed entity and his team will lead the group in its global expansion.