Dubai Investments has announced plans to lead a consortium of investors to launch Arkan Bank, a wholesale Islamic financial institution with an initial paid-up capital of $100 million.
The authorised share capital of Arkan Bank will be $500 million, the investment company said in a statement.
Arkan Bank is applying to the Dubai Financial Services Authority (DFSA) 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 (DIFC), the statement added.
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 & 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 & acquisition outlook, the future looks optimistic for the bank and aligns with Dubai’s vision to become the capital of Islamic economy.”
Abwab Capital Limited (Abwab) 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 (DFSA).For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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