DIB moves to improve corporate governance

by Rebecca Bundhun

Dubai Islamic Bank (DIB) has signed a "founding member" sponsorship agreement with corporate governance organisation the Hawkamah Institute, the bank announced on Thursday.

DIB said that the move shows its commitment towards strengthening its corporate governance standards.

“The Shariah Supervisory Board has become an indispensable aspect of our corporate governance and will be well paired with the objectives of Hawkamah, which aims to ensure these standards are being met to better protect all those associated with the bank,” said Abdulla Hamli, DIB’s chief executive officer.

Many experts have long called for increased regulation and transparency of Islamic banks, which are still relatively new to the market.
“Corporate governance plays a critical role in the development of modern businesses as it enhances investor confidence and helps in developing the capital markets of the region,” said Nasser Saidi, executive director of Hawkamah, said

“Islamic finance has experienced unprecedented growth so far, but the enactment and implementation of well defined corporate governance structures is essential if trust and confidence is to be maintained.”

BBK launches Islamic investment banking arm

By Andy Sambidge

The Bank of Bahrain and Kuwait (BBK) has announced the launch of Capinnova Investment Bank, its Shari’a compliant investment banking arm.

A wholesale Islamic investment bank, Capinnova is licensed by the Central Bank of Bahrain and has an authorised capital of $500 million and paid-up capital of $125 million.

Capinnova’s chairman A. Karim Bucheery said: “The growth of Islamic banking industry in particular has been remarkable in recent years and it is expect to reach$4 trillion in the next five years according to the recent Standard and Poor rating agency.

"Capinnova Investment Bank aims to leverage on this exponential growth and further strengthen the Islamic Banking industry in Bahrain and across the region."

Capinnova’s core areas of business will include private equity, asset management and corporate finance.

“Capinnova’s vision is to be a world class Islamic investment bank offering a range of high quality products and services to a diverse clientele,” added Capinnova’s CEO Jamal Hijres.

Capinnova will provide a variety of products, including murabaha, ijara, mudaraba, musharaka, al Salam and istitsna'a, restricted and unrestricted investment accounts, syndications and other structures used in conventional finance, which have been appropriately modified to comply with Shari’a principles.

In recent years, Bahrain has rapidly become a global leader in Islamic banking, playing host to the largest concentration of Islamic financial institutions in the Middle East.

In addition, Bahrain is at the forefront in the market for Islamic securities (Sukuk), including short-term Government Sukuk as well as leasing securities.