One of the largest Islamic Banks in the United Arab Emirates, Dubai Islamic Bank (DIB), has sold its stake in Jordan Dubai Islamic Bank (JDIB).
The UAE based bank made the decision to sell the stake to pursue development in smaller Islamic banking markets.
Over the last 5 yeas, the Jordan based bank has increased more than 4 times in size. Its assets are in the range of $1.1 billion with a network of more than 21 branches. DIB added that the proceeds from the stake sale will go towards the markets where Islamic banking is in early stages of development. DIB invested in Jordan back in 2008.
DIB had a 20.8% share in JDIB, through a 40% shareholding in MESC investments. The stake has been sold Bank Al Etihad (based in Jordan) and Etihad Islamic Investment Company, according to the statement released by DIB.
The exact value of the sale was not shared by DIB. The amount will be invested by DIB in several markets including Pakistan, Indonesia and East African countries. In an investor presentation, DIB said that a core strategy of its growth in international markets is being an “active player” in any entity in which it invests.
Dubai Islamic Bank’s Ventures
Pakistan and another major neighboring Islamic country, Indonesia, together account for more than a quarter of the world’s Muslim population. Dubai Islamic Bank has been operating in Pakistan since 2006. DIB also has a 39.6% stake in Indonesia’s Panin Syariah Bank.
DIB also has plans for expanding in Kenya. Currently it does not have a license to operate in the country and is waiting to get one from the Central Bank.