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Tue 23 Nov 2010 05:20 PM

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Noor Islamic Bank cut around 30 staff, chief says

The bank will break even next year and make a profit in 2012 - chief executive officer

Noor Islamic Bank cut around 30 staff, chief says
DUBAI BANK: Noor Islamic Bank is controlled by Dubai’s government

Noor Islamic Bank, a lender controlled by Dubai’s government, cut its workforce by at least 30
employees as it seeks to consolidate the business, chief executive officer
Hussain Al Qemzi said.

“Thirty something”
employees were let go a few weeks ago, Al Qemzi said on Tuesday in an interview
in Manama.

Banks in the UAE suffered
as non- performing loans surged during the global financial crisis, forcing
lenders to take provisions on debt. A proposal to merge Emirates Islamic Bank,
the shariah-compliant lender controlled by Emirates NBD, with Dubai Bank and Noor Islamic Bank is being considered,
Emirates 24/7 reported Oct. 13, citing an unidentified government official.

Noor Islamic is working on
two Islamic bond or sukuk sales for the first quarter and may underwrite four
to five Islamic bond sales in 2011, Al Qemzi said.

The bank will break even
next year and make a profit in 2012, he said.

Shariah forbids investment
in alcohol and gambling and receipt of interest, so fund managers have to
select investments deemed halal, or permissible. Islamic bonds are typically
backed by assets or cash flow because of the ban on interest. Investors earn
any profit from the assets instead.

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