Dubai Islamic Bank launches two innovative new resources products
Dubai Islamic Bank (DIB) announced today the simultaneous launch of two innovative investment products linked to the fast-growing alternative energy sector.
The two products are a 10-year non-capital-protected certificate and a five-year capital-protected note. Both products, which are priced in euros with a minimum investment of €10,000, are structured with and issued by Deutsche Bank, and offer biweekly redemption.
These products are the first of their kind in the region, reinforcing DIB’s commitment to innovation and socially responsible investment. More specifically, the products give exposure to basic resources, which are coming under increasing strain as the world’s population, and therefore consumption, continues to grow rapidly.
For example, demand for potable water is expected to triple over the next 30 years. Similarly, the need for alternative energy sources continues to grow as the supply of fossil fuels fails to keep pace with worldwide demand. Finally, in an era of rapid population growth and diminishing acreage devoted to farmland, new investment in agrochemicals is vital to ensuring the long-term provision of a wide range of agricultural commodities.
‘There is no question that, over the coming decades, the world will change dramatically. How we manage this change will determine the quality of life our children and grandchildren inherit,’ said Naveed Ahmad, Head of Investments – Wealth Management, DIB. ‘The products, linked to the DWS New Resources Fund, represent a significant opportunity for investors to participate in shaping the future.
‘By investing in a range of high-growth industries directly tied to the provision of new and renewable resources, our clients are able to demonstrate their personal commitment to socially responsible investment. At the same time, they can achieve strong returns with a diversified portfolio that is balanced across sectors and geographies.”
‘DIB’s Wealth Management Division is delighted to mark the start of another year devoted to innovative investment opportunities by launching these two extremely compelling products,’ he added. ‘Working with our partners at Deutsche Bank, these products have been structured to balance risk across a range of high-growth sectors. We are confident that our clients in the region will seize upon this opportunity to do well – and do good.’
‘We are delighted to once again partner with Dubai Islamic Bank and offer innovative investment products to investors in the Middle East. The two new products are benchmarked to the DWS New Resources Fund and have been structured with and without capital protection – to address investors with different risk appetites,’ said Magdalena Saine, Head of Equity Derivatives Sales in the Global Markets Group at Deutsche Bank.
“DWS Investments continues to focus on offering innovative investment opportunities for investors across the region,’ said Tarek Lotfy, Head of Sales, Deutsche Asset Management, Middle East and North Africa. “We believe that the shift away from a carbon-based economy is a mega-trend as consumers, investors and companies in all sectors are responding to the challenge of climate change, creating new markets, products and services that represent significant business opportunities.”
Dubai Islamic Bank is a Sharia-compliant financial institution. As such, please refrain from using any of the following terms in reference to the bank and its activities:
Lender / Lending / Lend
Borrower / Borrowing / Borrow
InterestAbout Dubai Islamic Bank:
Dubai Islamic Bank (DIB), established in 1975, is the first Islamic bank to have incorporated the principles of Islam in all its practices. DIB is a public joint stock company, and its shares are listed on the Dubai Financial Market.
The bank reported Dhs2.51bn in net profit for the year ended December 31, 2007, rising by 61% compared to Dhs1.56bn for the year ended December 31, 2006. The bank recorded a total revenue of Dhs7bn for the year ended December 31, 2007, rising by 46% compared to Dhs4.8bn for the year ended December 31, 2006. The profit for 2007, including depositors’ profits, stood at Dhs5.2bn, an increase of 58% compared to Dhs3.3bn for the year ended December 31, 2006. Total assets in 2007 reached to Dhs84.3bn, an increase of 31% compared to Dhs64.4bn in 2006.
DIB recently announced the breaking of another world record by raising $3.52bn sukuk for the Nakheel Group. This sukuk adopted a structure never used before in Islamic or conventional banking history. The Nakheel sukuk brings the total sukuk raised by DIB in the UAE to more than $9bn (Dhs33bn), an unprecedented amount in the history of Islamic banking.
The bank has been proactive in creating partnerships and alliances at both the local and international level. DIB has adopted an aggressive expansion strategy, which started with the establishment of DIB Pakistan Limited, a wholly owned subsidiary of DIB. DIB opened its first representative office in Turkey to enhance its access to that market. DIB has acquired 60 per cent of Al Khartoum Bank and is among the parent banks of Emirates and Sudan Bank (ESB). These steps mark DIB’s ambitious plans to roll out its operations into regional and international markets as part of its overall strategic plan.
About Deutsche Bank:
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 78,291 employees in 76 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people. www.db.com
About Deutsche Bank in the MENA region:
Deutsche Bank’s commitment in the MENA region is more than a century old, beginning with what is arguably one of the best known events in economic history: the construction of the Baghdad railway, in which Deutsche Bank participated as financier and operator.
Deutsche Bank opened its first office in Cairo in 1959, followed in the early seventies by an office in Bahrain. In 1999, Deutsche Bank embarked on a regional expansion drive across the GCC which began with the opening of an office in the UAE’s Capital Abu Dhabi in 1999, followed by two offices in Dubai: a representative office inaugurated in 2001 and a branch at the Dubai International Financial Centre (DIFC) in 2005. In April of 2006, Deutsche Bank opened a branch in the Kingdom of Saudi Arabia, in the capital Riyadh. Most recently in January of 2007, Deutsche Bank received a license from the Qatar Financial Centre Authority to operate from there.
Deutsche Bank AG in the MENA region offers the full range of investment banking, asset management; private wealth management; and global transaction banking services.
Deutsche Bank’s AG is well recognized for its leading role on some of the most prestigious regional transactions. The Bank is the recipient of several awards for its activities in Islamic Finance; and was proclaimed in 2007 as the Best M&A Bank in Middle East & North Africa by Global Finance World.
About DWS Investments:
DWS Investments is the mutual fund arm of Deutsche Asset Management, being with more than EUR 142 bn. AuM1) the largest mutual fund company in its home country, Germany, with EUR 172 bn. AuM number two of the leading retail mutual fund companies across Europe2) and with EUR 269 bn. within the top 10 globally3). Founded in 1956, DWS’s activities span not only all the key in European markets. Over the last few years, the DWS Investments brand has been rolled out to cover countries and products across the United States, Asia Pacific and the Middle East. Leading positions in rankings of independent fund rating agencies and consistently awarded prizes confirm the sustainable success and the outstanding performance of DWS.
For further information, please contact:
Nicholas Nesson / Ghaleb Zeidan
ASDA’A Public Relations
Exclusive Affiliate of Edelman, Middle East & North Africa
This story was posted by Anne-Birte Stensgaard, Senior News Editor
Tuesday, February 19 – 2008 at 13:42 UAE local time (GMT+4)Print Date: Tuesday, February 19 – 2008 – 22:08:34 GMT+4
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