• Home
• /
• Business

Mashreqbank to launch Islamic finance unit

The new Islamic finance company, Badr Al Islami, will offer a range of Islamic financial services such as retail, corporate and investment banking products and services with an initial capital of Dh500 million.

Mashreqbank is one of the few local banks such as RAKBank, First Gulf Bank and Union National bank which are in the process of setting up Islamic finance arms. The entry of this new breed of Islmic finance companies are expected to give a tough competition to both conventional banks, finance companies and the existing Islamic banks.

“Badr AL-Islami is committed to the framework and values of Shariah. It is an independently-managed business comprising Badr Islamic Finance Company, majority owned by Mashreqbank, and Badr Islamic Banking, a division of Mashreqbank,” said Abdulaziz Al Ghurair, CEO of Mashreqbank

Islamic financial services are one of the fastest growing fields in the banking and finance industry. The new Islamic companies are expected to make deep inroads into areas such as auto financing and mortgage lending. The new class of Islamic finance companies's product offerings are very similar to that of existing Islamic banks and the main difference being IFCs are not allowed to accept deposits from the public.

“We are committed to playing an active role in the growth of Islamic financial services within the UAE and beyond, at both retail and wholesale levels, and look forward to welcoming Muslim and non-Muslim customers,” he said.

Badr Al Islami will be led by a fully independent management team, which is presently recruiting the most experienced individuals in the fields of Islamic banking from around the region. The Shariah Board of Badr includes Shaikh Abdalla Ben Suliman Al-Manei - Chairman, Shaikh Nizam Yagouby, Executive Member and Shaikh Dr. Mohamed Al-Gari - Member.