Dubai Islamic Bank raises foreign ownership to 40%

By Shilpa Annie Joseph, Official Reporter
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Dubai’s first Islamic financial institution Dubai Islamic Bank (DIB) has increased its foreign ownership limit (FOL) from the current level of 25 percent to the new enhanced one of 40 percent.

DIB said in a statement to the Dubai Financial Market, where its shares are traded, that it upped the limit after receiving approvals from the Central Bank of the UAE (CBUAE) and the Securities and Commodities Authority (SCA).

Dr. Adnan Chilwan
Dr. Adnan Chilwan
Group CEO – DIB

“The UAE has been amongst the fastest economies to recover from the global pandemic, as a result of effective fiscal policies supported by world-leading vaccination campaigns and safety measures adopted. Global investor community has shown strong confidence in the UAE financial and capital markets as well as DIB, which has already seen a significant uptick in terms of share price performance, since the start of this year. The increase in FOL to 40 percent will serve as another catalyst at a critical juncture with DIB’s alignment to the fast-recovering economic environment. In addition, our recent H1 2021 results have demonstrated the bank’s resilience in these times, with a healthy trend across all key metrics around profitability, growth, capitalization and liquidity. Supported by our strategy of fostering a customer-centric culture, we are developing into a stronger responsible institution that generates value for all our stakeholders.”

“As the UAE commemorates a remarkable year, with major economic events such as the EXPO 2020 and its golden jubilee, DIB remains steadfast in its commitments to supporting these economic ambitions whilst continuing to position itself as a leading financial hub in the region and the world,” Dr. Chilwan further added.

Several banks in the UAE, including First Abu Dhabi Bank, Emirates NBD, Commercial Bank of Dubai and Abu Dhabi Islamic Bank, have increased foreign ownership caps on their stocks to attract more investors.

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