Dubai Islamic Bank has disclosed that it will become a minority shareholder in TOM Group of Companies in Turkey, including TOM Katılım Bankası (Turkey’s first licensed digital retail bank), TOM Pay Elektronik Para ve Ödeme Hizmetleri (licensed e-money company) and TOM Finansman, which is a licensed financing company specialising in developing innovative digital products, and its other subsidiaries.
TOM Group is an integrated, comprehensive financial services group with an established presence in the digital space and a perfect entry strategy for Dubai Islamic Bank. The UAE bank will acquire 20 percent shareholding across TOM Group with an option to increase shareholding to 25 percent within 12 months. Financial terms were not disclosed.
With the investment from Dubai Islamic Bank, Aydın Group, TOM Group’s founding shareholder, aims to become a national leader with an aspiration to grow regionally in the digital banking and financial technology sector. The group’s core mandate is to promote financial inclusion by facilitating, easing and enhancing access to digital financial services in Turkey.
Dubai Islamic Bank has long held the view that Turkey was an attractive investment destination for a financial services institution, particularly for an Islamic bank over the medium to long term. This belief was largely premised on the attractive and robust long-term macroeconomic fundamentals of the market which fueled the country’s continued ability to attract FDI, despite short-term market fluctuations.
Dubai Islamic Bank’s strategic investment in Turkey
Commenting on Dubai Islamic Bank’s investment in Turkey, Dr Adnan Chilwan, Group CEO, said: “Central to our growth ambitions has been the bank’s ability to effectively formulate winning strategies amidst shifting industry dynamics. Our entry into the Turkish banking sector represents this dynamic approach to an ever-evolving market environment.
“Dubai Islamic Bank is of the view that digital banking propositions in Turkey and other markets will enhance our efforts to provide financial services to mass population segments, including the underbanked and non-banked segments. We believe this deal will lay the groundwork for further initiatives in other key strategic markets for Dubai Islamic Bank.
“We have been operating in Turkey for more than 15 years as one of the largest lenders from the GCC. This investment in TOM Group reiterates our commitment to the country and more so to the consumer banking sector. Turkey holds a pivotal position in our growth strategy, considering the sizable market dynamics and the opportunities we foresee in digital banking and financial technology sector.”
Onur Özkan, Group CEO, TOM, said: “The partnership we have established with Dubai Islamic Bank in the early stages of TOM Group’s journey is highly encouraging and shows that we are on track with our mission to provide affordable financial services to its customers.
“We hope to make TOM Group, a regional and a global leader in digital participation banking, aiming to provide access to financial services and promote inclusivity by encompassing segments beyond the traditional banking system. We are proud that Dubai Islamic Bank has shown interest in our early endeavours in digital banking, recognising the potential of Turkey and the great team that has been scaling TOM Group.”
The transaction has been approved by the Banking Regulation and Supervision Agency (BDDK), the Central Bank of the Republic of Turkey (CBRT) and the regulatory authorities in the UAE, and will be formalised after the clearance of the Turkish Competition Authority.
Follow us on
