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New Islamic finance company in the offing

ABU DHABI — Union National Bank (UNB) will be launching an Islamic Finance Company — Al Waqaf — and a real estate development and finance entity with a paid up capital of Dh500 million each in the coming months.

"We are waiting for a written confirmation for starting an Islamic Finance Company, Al Wifaq, with capital of Dh500 million," said Mohammed Nasr Abdeen, while addressing a Press conference in the capital yesterday.

The second company being launched is a specialised real estate company, with a paid up capital of Dh500 million. This company will not only finance real estate projects, but being a specialised company will undertake development of projects, mangement of properties and provide a whole of innovative services. "It will be a private limited company, and a partnership between the bank and its share holders," he added.

Calling these initiatives as part of the bank's vision for the next two years, Abdeen said that UNB has been permitted by the Central Bank of the UAE to establish an Islamic banking division to offer Islamic banking products to its customers. He expected that this division will come up by April.

The UNB CEO hinted that the bank is in the process of hectic negotiations to acquire a banking entity in Asia, though he did not choose to name either the bank or the country.