Dubai Islamic Bank wins Islamic Finance News ‘Mudarabah Deal of the Year’ Award

Dubai Islamic Bank (DIB) announced today that it has been honoured with the Islamic Finance News Award for Best Mudarabah Deal of the Year in 2010. 

DIB was honoured for its role in arranging an AED 1.10 Billion Syndicated Mudarabah facility for ENOC Supply & Trading LLC (ESTL) as Initial Mandated Lead Arranger and Structuring Bank.   

Mudarabah is a contract that arranges cooperation in a business investment between capital on one hand and entrepreneurship on the other, whereby the contracting parities jointly and commonly own the realised profit as per the agreement. In the award winning Mudarabah deal, DIB arranged the structuring and full documentation of the transaction to support the growing working capital requirements of ENOC, resulting from the start up of its refinery and increased refining capacity. 

“We are truly honoured to receive this award,” said Dr. Adnan Chilwan, Deputy CEO - Chief of Consumer and Wholesale Banking, Dubai Islamic Bank. “As the global economy recovers, it is vital that regional companies are able to access the finance needed for growth. The size and scope of the deal clearly demonstrates DIB’s continued commitment to support the economy of the UAE and its strategic entities.” 

DIB’s winning deal was shortlisted from a number of entries from across the UAE and finally chosen to be the top Mudarabah deal through a voting system determined by Islamic finance industry participants, including investors, financial services professionals and government bodies from around the world. 

Mr. Naveed Ali, Chief of Corporate Banking & FI, Dubai Islamic Bank, said: “Dubai Islamic Bank is proud to have worked with ENOC to create such a large scale, fully Shariah-compliant commercial financing deal that will bring real benefits to the UAE economy. It also shows ENOC’s commitment to Islamic banking, as a deal of this size required strict vigilance to remain completely Shariah-compliant” 

Out of the many Mudarabah transactions in 2010, DIB’s winning deal was structurally unique as Mudarabah capital had been merged with the existing assets of the company. This fact necessitated meticulous structuring to ensure full Shariah compliance of the Mudarabah assets throughout the transaction. 

DIB collected the award during a ceremony held at the Dusit Thani Hotel in Dubai, which was attended by the industry's top executives who gathered to recognise excellence, achievement and leadership in Islamic finance.