ArabianBusiness.com - Middle East Business News
Tuesday, 07 October 2008 | 23:21 UAE time

YOUR DIRECTORY /

Print this page Print this page | Email this to a friend Email this to a friend | Discuss this article (0 Comments) |

Dubai Islamic Bank downgraded by Merrill

by This email address is being protected from spam bots, you need Javascript enabled to view it  on Tuesday, 20 May 2008
EMBEZZLEMENT CASE: Dubai Islamic Bank has been hit by the police investigation into its property affiliate Deyaar, with London-based analysts downgrading the bank’s rating.(Getty Images)

Dubai Islamic Bank has been hit by the police investigation into its property affiliate Deyaar, with London-based analysts downgrading the bank’s rating.

Dubai Islamic Bank owns 41% of Dubai property developer Deyaar, which is currently under investigation for alleged financial irregularities within the firm. Merrill Lynch on Tuesday cut their ‘buy’ rating on the bank to ‘neutral’, newswire Bloomberg reported.

“We are downgrading DIB due to our concerns about an embezzlement case at its real-estate associate Deyaar which it owns 41% of,'' Merrill Lynch said in a statement to clients.

Story continues below
advertisement

Dubai Public Prosecution, which is probing Deyaar's former Chief Executive Officer Zack Shahin for fraud, is likely to take the case to court, Deyaar's Chairman Nasser Bin Hassan Al-Shaikh said on Sunday.

Earlier this month Al-Shaikh attempted to reassure investors by saying the incidents in question had occurred in the past and had already been reflected in the company’s historical financial disclosures.

According to unconfirmed media reports, the Public Prosecution is investigating company fraud valued at 120 million dirhams ($33 million).

Deyaar rents and manages properties and operates according to Islamic law, or sharia, which bans borrowing or lending on interest.

Print Print | Email Email | Discuss this article |



USER COMMENTS (0 COMMENTS)

CLICK HERE TO POST A COMMENT

Add your Comment
All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *
(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code * Code


Please click post only once - your comment will not be published immediately.

more » MIDDLE EAST MARKETS DATA

DEYAAR.DFM

Last Price:

1.26

-0.11-8.03%

7 Oct 2008 09:59 GMT
(Market Closed)

CURRENCY CONVERTOR

RELATED LINKS

  1. Deyaar Real Estate»
  2. Dubai Islamic Bank PSJ (DIB)»

 EMAIL ALERTS

  1. Deyaar Real Estate

  2. Dubai Islamic Bank PSJ (DIB)

  3. Banking & Finance



BUSINESS FEATURES

Race to the bottom

The London-New York fight to be the world's pre-eminent financial centre is now a race to the bottom.

Kuwait's bull run turns bearish

Kuwait rode the emerging market wave for most of this year but now the mood is changing. Soren Billing reports.

Hedge fund revolt

London is turning its back on the $450bn industry that helped make the city a world financial leader.

ArabianBusiness.com/Jobs - Middle East Jobs Search
  1. Head of Loans Administration
    Industry: Finance
    Location: Qatar, Qatar
  2. Financial Reporting Analyst
    Industry: Finance
    Location: Qatar, Qatar
Browse all jobs »

BUSINESS INTERVIEWS

Why there's life after Lehman

As global markets go into freefall, where will sovereign funds be looking next? Makram Azar explains.

The iron lady

Global Investment's Maha Al Ghunaim on the Gulf's ability to come through the global financial crisis intact.

Comeback kids

Arabian Business talks to Unicorn's CFO to discover why Islamic finance is now in higher demand than ever.

MORE FROM ARABIANBUSINESS.COM