Dubai Financial (DF), a subsidiary of the Dubai Investment Group (DIG), was awarded the ‘Cross Border Deal of the Year’ from the Islamic Finance News Guide, honouring its June 2006 Bank Islam deal in Malaysia. The deal represents the most significant cross-border Islamic transaction to date, integrating two hubs of the Islamic market.
Marwan Al Khatib, Managing Director of Dubai Islamic Investment Group (DIIG), accepted the award at a ceremony held today in the Sheraton Imperial Hotel, Malaysia.
Present at the award ceremony were Bank Islam Board Members: Dato’ Noor Azaman A. Aziz, BIMB Holdings Managing Director, Dato’ Zukri Samat, Bank Islam’s Managing Director, Salaam Al Shaksy, Managing Director of Dubai Group, Fadel Al Ali, Chief Financial & Operating Officer of Dubai Holding and Hashim Al Dabal, Executive Chairman of Dubai Properties. Other DIG officials were also present.
A similar award ceremony was also held in Dubai a few weeks earlier.
According to Islamic Finance News Guide, a renowned and authoritative guide to global Islamic capital markets, Dubai Financial’s acquisition of a 40 per cent stake in Bank Islam Malaysia Berhad (BIMB) - the founding Malaysian Islamic bank - demonstrates a complex blend of bridge funding. It also significantly contributed to BIMB’s capital base, while growing its business beyond domestic borders.
Dubai Financial sets a precedent for the successful merging of GCC interests with the Malaysian market through direct investments with an established institution.
Sayanta Basu, CEO of Dubai Financial, stated: “The award reflects the success of our strategy to grow within the Islamic banking sector. We are honoured to be recognised for our knowledge and expertise in this transaction, and hope for greater synergies in Islamic finance in the future.”
The Islamic Finance News Guide citation said the investment required a GCC entity to buy into a Malaysian entity with distinct operating methods. It also necessitated the Malaysian institution to adapt to the GCC style of business in a way that did not disturb the bank’s effectiveness in the local market.
Innovative in structure, the US$330 million Dubai Financial’s deal represents the first truly Islamic integrated merger and acquisition (M&A), financing and hedging package, bringing together the Middle East and Asia Islamic markets.
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