Dubai Islamic Bank wins top honours

Dubai Islamic Bank (DIB) has won the Islamic Finance News Award for Best Mudarabah Deal of the Year in 2010.

DIB was honoured for its role in arranging a Dh 1.10 billion syndicated mudarabah facility for Enoc Supply & Trading (ESTL) as initial mandated lead arranger and structuring bank.

Mudarabah is a contract that arranges cooperation in a business investment between capital on one hand and entrepreneurship on the other, whereby the contracting parities jointly and commonly own the realised profit as per the agreement.

In the award winning Mudarabah deal, DIB arranged the structuring and full documentation of the transaction to support the growing working capital requirements of Enoc, resulting from the start up of its refinery and increased refining capacity.

“We are truly honoured to receive this award. The size and scope of the deal clearly demonstrates DIB’s continued commitment to support the economy of the UAE and its strategic entities,” said Dr Adnan Chilwan, deputy CEO – chief of Consumer and Wholesale Banking, Dubai Islamic Bank.

Out of the many Mudarabah transactions in 2010, DIB’s winning deal was structurally unique as Mudarabah capital had been merged with the existing assets of the company. This fact necessitated meticulous structuring to ensure full Shariah compliance of the Mudarabah assets throughout the transaction.

DIB collected the award during a ceremony held at the Dusit Thani Hotel in Dubai.-TradeArabia News Service