World's First Islamic Trust Provider To Launch In Dubai

by Phillip Morton, Investors Offshore.com

23 July 2007

DIFC Investments and Dubai Islamic Bank (DIB) have announced that they have initiated a project to establish ‘Waqf Trust Services’, the first Islamic trust services provider in the world exclusively offering sharia compliant trust services, which will operate from the Dubai International Financial Centre (DIFC).

The company, which is awaiting approval from the Dubai Financial Services Authority (DFSA), is set to operate within the guidelines of the ‘Trust Law of 2005’, enacted by Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, Ruler of Dubai and President of the DIFC. The law is primarily intended to ensure the proper succession and preservation of lineage, while allowing families to manage their wealth in such a way as to guarantee the rightful disbursement of their inheritance and maintain a strict adherence to Sharia’a guidelines.

Waqf Trust Services will offer a diverse array of trust services for both corporate and individual clients, primarily encompassing the provision of tools to assist clients in the protection of assets, succession planning and the preservation of family wealth.

Commenting on the development, Dr Omar bin Sulaiman, Governor of the Dubai International Financial Centre (DIFC) and Chairman of Waqf Trust Services, stated that: “Since Dubai is now one of the world’s major wealth centres and a hub for investors in the Middle East, the setting up of Waqf Trust within DIFC is a welcome move to help maintain and preserve the region’s assets. DIB has a solid and long-standing reputation as a provider of quality Sharia’a compliant banking products and services to its customers in the UAE and across the region, and this new venture will enable it to build on its successes and strengthen existing ties with clients.”

Saad Abdul Razak, Group CEO of the Dubai Islamic Bank Group and Vice Chairman of Waqf Trust Services noted: “Extensive research was conducted to provide an indication of the outlook for a new trust service provider in the region, the results of which have formed the basis of the business strategy for Waqf Trust. As such, we are proud to be the first to introduce these specialized Islamic trust services. Our aim, as it has always been, is to find different ways to assist our clients in managing their assets and together with DIFC Investments, we look forward to helping our clients, and the region as a whole, prepare for a prosperous future.”

Farhan Bahman Al Bastaki, who will be the Director responsible for establishing Waqf Trust Services, added: “It is a great opportunity for DIFC Investments and Dubai Islamic Bank to work together on this exciting project. Islamic finance and wealth management are key areas of focus in the Middle East and as such Waqf marks the introduction of an invaluable additional line of business to the DIFC family; one that promises to keep the best interests of future generations at the forefront of its vision.”

DIFC Investments has been allocated the entire range of non-public administration and commercial activities previously carried out by the DIFC Authority, including the operation and management of subsidiaries. Furthermore, DIFC Investments will be given responsibility for the development of the DIFC’s investment strategy, as well as relevant policies and alliances that will aid in achieving the objectives and visions of the DIFC.

Dubai Islamic Bank was established in 1975 and is the world’s first fully fledged Islamic bank. It currently offers a wide range of Sharia’a compliant products and services, including retail, corporate and investment banking, within the UAE and internationally across Bahrain, Egypt, Sudan, Lebanon, Pakistan, Iran, Turkey, Ireland, Bosnia, the Bahamas and the Cayman Islands.

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