Dubai Investments, a diversified investment company listed on the Dubai Financial Market, has announced plans to lead a consortium of investors to launch Arkan Bank, a wholesale Islamic financial institution.
The authorized share capital of Arkan Bank will be USD 500 million and its initial paid-up capital will be USD 100 million.
Arkan Bank is applying to the Dubai Financial Services Authority for approval for a prudential Category 5 licence to operate as an Islamic Financial Institution.
This will be the first home-grown Islamic bank to operate from Dubai International Financial Centre.
The bank will offer a fully integrated range of Sharia-compliant banking services and investment products serving the needs of ultra-high-net-worth individuals, corporate as well as institutional clients through its core business lines – Corporate Banking, Asset Management and Awqaf, Investment Banking and Treasury.
Arkan Bank also plans to list its shares on NASDAQ Dubai within 12 months of establishment, subject to the fulfilment of listing guidelines and regulatory approvals.
Khalid Bin Kalban, Managing Director and CEO of Dubai Investments and the Founder and Chairman of Arkan Bank, said: “The launch of Arkan Bank is coming at an opportune time in the UAE Islamic banking landscape. Arkan Bank is poised to achieve phenomenal success, as it will be the first wholesale Islamic bank operating in the UAE. The bank will initially focus on the GCC region and subsequently build scale and reach across its business lines, products and geographies to become the top-tier Islamic wholesale bank in the region and global arena. Coupled with strong public markets, sukuk and mergers and acquisition outlook, the future looks optimistic for the bank and aligns with Dubai’s vision to become the capital of Islamic economy.”
Abdulla Mohammed Al Awar, CEO of Dubai Islamic Economy Development Centre, said: “We welcome this unique show of support for ‘Dubai: Capital of Islamic Economy’ strategy and the first initiative of its kind to originate from the private sector. Dubai is fast-tracking its efforts to achieve its envisioned goal of becoming the global center of Islamic finance. Amidst these trends, the proposed launch of Arkan Bank bodes well for the Islamic banking sector that has experienced exceptional growth in the region at a faster pace than anywhere else in the world. The move aligns with the Dubai’s strategy to support the development of Sharia-compliant banking and reinforces Dubai’s reputation as the Islamic banking gateway to the Middle East, North Africa and South Asia.”
Mohammad Alqahtany, Managing Director of Abwab Capital and the Founder and Managing Director of Arkan Bank, said: “We are grateful to Dubai Investments for its support as a strategic partner in this landmark initiative. Our aim is to be a first-class wholesale bank rooted in Islamic values, and set a new standard in Islamic banking to capitalize on the increasing demand for Sharia-compliant banking services witnessed in the global market. We are committed to providing bespoke financing solutions and products that match our professional clients’ goals and expectations while adhering to the highest governance standards and Sharia principles.”
Abwab Capital is the Investment Advisor to Arkan Bank. Abwab is a financial services firm focusing on investments and advisory services in the MENA region and is regulated by the Dubai Financial Services Authority.
About Dubai Investments
Dubai Investments PJSC is a leading investment company listed on the Dubai Financial Market with over 19,800 shareholders and a paid-up capital of AED 4 billion. Incorporated in 1995, the company has grown exponentially with investments in a number of businesses across three core sectors – real estate, manufacturing and industrial and financial investments across the UAE and the Middle East.
Since inception, Dubai Investments has challenged the norms and introduced cutting-edge technologies, pioneering business models, unique investment strategies and innovative concepts across its diversified portfolio spanning different sectors and markets across the globe. Dubai Investments currently has 39 subsidiaries and joint ventures under its portfolio, across a wide array of industries and continues to seek new investment opportunities in new sectors, locally and internationally, as part of its strategic expansion plans.
For more information, visit http://www.dubaiinvestments.com/.