Dubai forms Islamic banking body

Dubai Holding has consolidated its investments in Dubai Islamic Investment Group and Dubai Bank under Dubai Banking Group to create a global Shariah compliant investment company.

Dubai Banking Group will be managed by Dubai Group. Fadel Al Ali of Dubai Holding Operations will be the group's non-executive chairman, while Salaam Al Shaksy, currently CEO of Dubai Islamic Investment Group, will be appointed CEO of the new entity.

HE Mohammed Al Gergawi, chairman of Dubai Holding, said: "The UAE's financial services sector is the one of the fastest growing sectors in our economy.

This is a tremendous opportunity for our group and we are confident that this strategic step will enhance growth and value creation in the industry and solidify Dubai's position as a leading global financial centre."

Soud Ba'alawy, executive chairman of Dubai Group, said: "The market for Shariah compliant investments and financial services continues to grow very rapidly.

Dubai Banking Group will be one of the clear leaders in this market and will continue to aggressively target significant direct investments and acquisitions in a wide range of sectors across the world's biggest Islamic markets including the GCC, South East Asia, and Africa."

DBG already has investments in Islamic financial institutions like Kuwait's Al Fajer Retakaful and Malaysia's Bank Islam, with combined assets in excess of $10 billion.

Dubai Banking Group is also creating the world's largest takaful firm, with a total capital of $300m, together with Malaysia's investment arm Khazanah Nasional and Asian Capital Reinsurance (ACR).

DBG and Khazanag will each hold a 40% stake in the new company, ACR ReTakaful Holdings, while ACR will own the remaining 20%. Khazanah will be the largest shareholder in the company, since it owns a 32% stake in ACR.

The takaful firm will have two operating companies, to be based in Malaysia and the Middle East.