Latest news with #IslamicFinancing
Gulf Business
09-07-2025
- Business
- Gulf Business
DIB leads $1bn Shariah-compliant financing for Government of Pakistan
Image: Dubai Islamic Bank website Structured over five years, the facility includes a significant Islamic financing component, with approximately 89 per cent of the total structured as an AAOIFI-compliant Commodity Murabaha. This underlines Pakistan's continued push to expand its access to Shariah-based funding. The transaction is notable for being partially guaranteed by a Policy-Based Guarantee (PBG) from the Asian Development Bank (ADB). This marks the first time ADB has provided a PBG for such a financing transaction with Pakistan. DIB acted as the Sole Islamic Global Coordinator and also served as Joint Mandated Lead Arranger and Bookrunner alongside Standard Chartered. Other participating institutions included Abu Dhabi Islamic Bank, Ajman Bank, and Sharjah Islamic Bank. Pakistan's minister of finance, Muhammad Aurangzeb, commented: 'This landmark financing arrangement not only underscores the strong confidence of regional and international financial institutions in Pakistan's economic reform trajectory, but also marks an important step in expanding our access to innovative and Shariah-compliant funding solutions. We deeply value the role of partners like DIB and ADB in supporting our efforts to ensure macroeconomic stability and sustainable growth.' Read: Dr. Adnan Chilwan, group chief executive officer of DIB, said: 'This transaction marks a key milestone in demonstrating how Sharia-compliant financing can be scaled effectively to meet sovereign objectives while upholding partnership and prudence. DIB is delighted to have re-introduced Pakistan's credit to the Islamic term financing market after a hiatus of over two years through an innovative structure. We are confident this will pave the way for the Government to access broader pools of Sharia-compliant liquidity in the near future. Developed in close coordination with the Government of Pakistan, the Asian Development Bank, and leading financial institutions, the structure reflects strong alignment between market capabilities and national priorities. It offers a compelling example of how values-driven finance can support tangible, real-economy outcomes. At DIB, we remain committed to enabling such purposeful transactions, ones that serve the present, strengthen resilience, and help shape a more inclusive financial future.' Pakistan's fiscal reforms The transaction serves as a key milestone for sovereign Islamic finance. It demonstrates renewed investor confidence in Pakistan's fiscal reforms and macroeconomic outlook, while also providing a model for other emerging markets to adopt ethical and cost-effective financing. For the Government of Pakistan, it signifies a strategic return to Middle East capital markets after more than two years. For participating institutions, it opens opportunities to support long-term, sustainable economic development and the broader adoption of Islamic finance in sovereign funding.
Zawya
19-06-2025
- Business
- Zawya
Saudi SIDC unit signs Islamic facility for $2.6mln
The Saudi Industrial Development Co. (SIDC) said its subsidiary, Emmdad Logistic Services Co., has signed an Islamic financing agreement for 10 million riyals ($2.7 million). The five-year Shariah-compliant deal with the kingdom's Social Development Bank will be used to support the company's capital expansion. The company did not disclose the rate at which the facility was agreed. (Writing by Brinda Darasha; editing by Seban Scaria)
Zawya
15-05-2025
- Business
- Zawya
Bahrain Development Bank posts 109% net profit growth
Bahrain Development Bank (BDB), the kingdom's leading institution dedicated to supporting small and medium enterprises (SMEs), has announced its financial results for the first quarter of 2025, reporting strong performance and notable growth across key financial indicators. The bank recorded a net profit of BD350,000, compared to BD167,000 during the same period in 2024 – representing an impressive 109 per cent increase year-on-year. BDB's income from Islamic financing and interest rose by 3pc, reaching BD2.49 million, compared to BD2.419m in Q1 2024. Meanwhile, net income from Islamic financing and interest grew by 11pc, totalling BD2.027m versus BD1.822m for the same period last year. Total operating income stood at BD2.776m in Q1 2025, up 20pc from BD2.311m in Q1 2024 - highlighting BDB's continued ability to generate returns and deliver sustainable value. Commenting on the results, Bahrain Development Bank Group chairman Ghassan Ghaleb Abdulaal said: 'This remarkable growth reflects the effectiveness of our resource management strategy and the diversification of our financing portfolio. We continue to enhance our services and products to meet the evolving needs of entrepreneurs and emerging businesses. Our commitment remains strong to providing innovative financial solutions and developing digital tools that keep pace with the rapid changes in the financial sector, while strengthening our governance and sustainability practices.' Bahrain Development Bank Group chief executive Dalal Al Qais added: 'We are proud to have achieved this exceptional performance, with net profits growing by 109pc in the first quarter of the year - exceeding expectations. This milestone is a testament to the ongoing support from our board of directors and the dedication of our entire team, who are the driving force behind the bank's success. We reaffirm our commitment to fostering an enabling financing environment that empowers the SME sector and drives economic development.' Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
