Contracting Finance
In 2004, Dubai Islamic Bank established the Contracting Finance Division to provide professional services to this vital sector. Over such a short period of time it has been able to make a significant contribution in this field. Dubai Islamic Bank is well on its track to achieve its objective of being the leading financial institution in contracting finance. The Division projects cover contractors undertaking the execution of buildings, electrical & mechanical, infrastructure, oil & gas, power & water, etc. With the bank large underwriting capability and close association with other regional and international banks, it is able to support its clients to turn even the most ambitious projects into reality. The division, managed by experienced staff, is organised to work efficiently for its customers and to pro-actively satisfy their banking needs. Remaining true to the nature of Islamic banking, structured credit facilities that comply with Sharia guidelines and principles have been developed and are in practise. In UAE and select foreign markets, its specialised services and financial solutions have supported contractors on over 70 projects with a total value exceeding AED 15 billion. Further, during this period it have been able to increase its customer base to more than 100. Its clients, comprising local, regional and international construction groups have a reputation of pursuing the highest standard of excellence.
The main credit related products on offer include:
- Letter of Guarantee that are required in accordance with the contracts’ terms.
- Letters of Credit with deferred payment facility through Murabaha payment structures.
- Mudarabaha structure to finance a projects’ funding requirements and general working capital needs.
- Ijara (Lease purchase) for financing capital goods.
- Foreign Exchange.