Dubai plans Islamic Exim bank

Dubai plans to set up world’s first Islamic export-import (Exim) bank to boost emirate’s foreign trade, said a press statement on Wednesday.

In line with Dubai’s focus on establishing itself as a key centre for facilitation of international trade, the Department of Economic Development (DED), Government of Dubai has commissioned a project to assess the feasibility and subsequent establishment of an Exim Bank.

The proposed Exim bank will provide a multiple range of products and services aimed at supporting trade flows into and out of the UAE. The view is to assist businesses in the UAE to grow their trade flows by providing risk mitigation, financing and market access.

The proposed Exim Bank, once approved, is expected to be the first fully Shariah-compliant institution of its kind.  It will be a major initiative in line with the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to establish Dubai as the capital of Islamic economy.

Sami Al Qamzi, Director General of DED, said: “Dubai has one of the best infrastructure to serve as a regional hub for international trade flows and remains focused on further investing in and enhancing this position.  It is our aim to double trade flows over the next five years.  The proposed Exim Bank aligned to some of the best global operating models will support the achievement of this objective and further enhance our existing position”.

Dubai DED has engaged Noor Investment Group, the renowned financial group in providing integrated financial and banking solutions, as an exclusive advisor for this project.

Dr. Ahmed Al Janahi, Deputy CEO of Noor Investment Group and Noor Bank, said: "A dedicated team from Noor Investment Group undertook the initial financial, administrative and marketing studies, which enabled such an important project to come to light, in line with the initiative of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, for Dubai to become the capital of Islamic economy. It is worth mentioning that the proposed Exim bank will be the first Shariah-compliant bank of its kind in the whole world.”

“The proposed bank will focus on enhancing Dubai’s international trade, aiming at steadily doubling trade volumes towards Expo 2020, pursuant to the strategic objectives of the Emirate of Dubai, which aims at establishing the United Arab Emirates as the capital for international trade,” Al Janahi said.

Dubai is a top trans-shipment hub for trade in the region and wants to become a leading global centre for Islamic finance.

Islamic trade finance remains a tiny part of global banking business, but it is gradually attracting interest among banks and asset managers because of the rapid growth of trade in predominantly Muslim areas such as the Gulf and Southeast Asia.

Last month the Export-Import Bank of Malaysia said it had issued what it called the world's first US dollar-denominated Islamic bond issue from an export-import bank; the $300 million, five-year sukuk attracted $3.2 billion of investor orders.

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