DIB Launches Capital-Protected Islamic Note

by Carla Johnson, Investors Offshore.com

16 November 2006

The Dubai Islamic Bank has announced another innovation in the growing world of Islamic finance with the launch of the Sharia’h compliant 3-year Capital Protected DFM (Dubai Financial Market) Note.

Created by DIB’s Wealth Management Division, the Note will have a minimum investment of US$10,000 and will offer investors protection on their capital while participating in a diversified basket of stocks on the Dubai Financial Market.

The basket of stocks underpinning the Note will comprise some of the most actively traded on the DFM, such as: Emaar, Amlak, Dubai Investment Company, Tamweel and DIB, among others.

DIB said that it will offer a maximum potential return of 12% per annum on the Note.

The Note, which has has received a Fatwa from the Dar Al Istithmar Shari’a board, will be open for a limited period until November 30, 2006.

“We are glad to offer another powerful innovative investment option to our discerning investors. This new product is a result of our investor feedback process and hence we are very bullish about its success," commented Saeed Al Qattami, Senior Vice President, Head of Wealth Management, DIB.

"Investors want to be part of UAE stock market but at the same time, they are wary about its potential volatility. The 3-year Capital Protected DFM Note addresses both these issues and offers best of both worlds," he added.

Naveed Ahmad, Head of Investments – Wealth Management, DIB, added: "We feel that this product has all the features our investment clients are looking for: Short investment tenor, capital protection with the potential of maximum returns of 12% per annum, and a partner in DIB who can protect as well as smartly invest."

"If you combine the features of the product with the current valuations of the DFM stock market and the selection of stocks, the product is quite exciting," he noted.

The 3-year Capital Protected DFM Note is the latest in a series of investment funds launched by DIB, including the Capital Protected CLIP Note, Al Islami Shipping Fund, Al Islami Capital Protected CROCI Note, GCC Equity Fund, Al Islami Saving Scheme, Pan European Real Estate Fund, US Real Estate Fund and two French Real Estate Funds.

Recommended