Dubai Investments PJSC (DI) has announced that it has recently acquired a 5 per cent stake in the newly established Islamic Bank of Asia, the first Sharia’a compliant Bank in Singapore, in a deal worth more than USD 25 million (AED 91.8 million).
The Bank will begin operations this month with an initial paid-up-capital of USD 500 million and will operate as a subsidiary of the Development Bank of Singapore (DBS), South East Asia’s largest bank by assets.
DI is one of Middle Eastern investors to acquire a combined stake of 40 per cent in the joint venture with the other 60 per cent owned by DBS.
Khalid Kalban, Managing Director and Chief Executive Officer, DI, commented, “Singapore is a very good location for an Islamic bank, as it will provide convenient services for the business travelers from ASEAN countries like Brunei, Indonesia, Malaysia, Thailand and Philippines who stop over at the destination, in addition to enabling many people in the country to enjoy the benefits of Sharia’a banking.
“This is an excellent opportunity to diversify our portfolio, as it is part of Dubai Investment’s strategy to expand geographically and to invest in diversified sectors. This investment is part of the financial investments which constitutes 43% of all DI investments” added Kalban.
The Islamic Bank of Asia will offer various Islamic financial products and will primarily engage in commercial banking, corporate finance, capital markets and private banking services. It will start operations in Singapore and gradually expand to Asia and GCC countries as many high profile projects are earmarked for completion by developers who prefer to use Islamic finance
DBS is the largest bank in Singapore and a leading bank in Hong Kong, specializing in consumer banking, treasury & markets, asset management, securities brokerage, equity and debt fund raising. With one of the highest credit ratings in the region, DBS is ready to serve customers in 15 markets as a bank that specializes in Asia.
Dubai Investments PJSC has more than 11 years of successful experience in establishing, acquiring or strategically participating in corporate ventures throughout the UAE and internationally. With 44 subsidiary companies and more than 23,500 shareholders, DI is the largest investment company listed on the UAE stock exchange.
