Dubai Islamic Bank (DIB) is one of the largest banks in the UAE that is known today. The news for Dubai Islamic Bank selling stakes to Jordan Dubai Islamic Bank (JDIB) have surfaced now.
The development has been taken to pursue the goal in smaller Islamic banking markets. Since half a decade, JDIB has increased 4 times its asset size ($1.1 billion and 21 branches now). Moreover, all proceedings from the stakes sale shall go towards the markets where Islamic banking is still in early stages. DIB also invested in JDIB back in the year 2008. It had a 20.8% share in JDIB through 40% shareholding in MESC investments. However, it has been sold by the Jordan-based Bank Al Etihad and Etihad Islamic Investment Company already.
The venture
While the above have been confirmed through DIBs released statements the exact value of the sale isn’t shared yet. This amount shall be invested in many markets including Pakistan, East Africa, and Indonesia. Pakistan and Indonesia together account for more than a quarter of the world’s Muslim population. DIB has been in Pakistan since 2006 while it also has 39.6% stake in Indonesia’s Panin Syariah Bank. Furthermore, DIB plans to expand in Kenya. Thus, it is awaiting an operating license from the Central Bank for the same. So Dubai Islamic Bank selling stakes is definitely a great change for Islamic banking on a huge level.
