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Wed 12 Oct 2016 01:55 PM

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Dubai in advanced talks to set up Islamic trading bank

Emirates Trade Bank will specialise in international trade and commodity financing

Dubai in advanced talks to set up Islamic trading bank
Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashed al-Maktoum has set up a committee to establish Emirates Trade Bank. (AFP/Getty Images)

Dubai has announced it is in advanced discussions to set up the Shari's compliant Emirates Trade Bank which will specialise in international trade and commodity financing.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and chairman of the Executive Council, has nominated a founding committee for the establishment of the bank, a statement said.  

The founding committee, which is chaired by Mohammed Al Gergawi, is in advanced discussions with the Central Bank of the UAE regarding provisional approval for an Islamic wholesale banking licence for Emirates Trade Bank, the statement added.

Emirates Trade Bank will be the first of its kind global Shari’a compliant bank exclusively offering integrated trade and international commodity financing solutions, through leveraging and mobilising the infrastructure and logistics ecosystem of the UAE.

The statement said the bank will fulfil Dubai’s strategic goal of supporting the Islamic financial sector and integrating investments from this domain towards doubling UAE trade flows by 2020.

Sami Al Qamzi, director general of Dubai Department of Economic Development and vice chairman of the Dubai Islamic Economy Development Centre (DIEDC), said: “The UAE in general and Dubai in particular are privileged to have a diversified, open, and flexible economy capable of addressing international and regional challenges.

"Emirates Trade Bank is set to reap synergies from the strategic positioning and advanced technical and logistics’ infrastructure of Dubai, in its efforts to finance international trade and commodity flows, particularly through the UAE.” 

On Tuesday, Sheikh Hamdan said Dubai is set to launch ambitious projects as part of a plan to transform the city into the capital of the Islamic economy by 2021.

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