Expanding its portfolio of Islamic insurance plans, Dubai Bank has entered into a strategic alliance with Islamic Arab Insurance Company (Salama), a leading provider of Sharia-compliant insurance solutions (Takaful).

Under the terms of the agreement, Salama will offer Dubai Bank customers a wide range of Sharia-compliant unit-linked funds through lumpsum investments as well as systematic investment plans.

In addition to the comprehensive protection benefits provided under the scheme, the plans will also assist the bank's customers to save for short and long-term needs such as education, retirement planning and others.

"Adding a host of Takaful plans from industry experts such as Salama will greatly support our customers in realising their personal goals for the long-term financial protection of their families," said Mohamed Amiri, head of Retail Banking at Dubai Bank.

"Offering a diverse range of consumer finance solutions, we seek to be an active partner, helping our customers meet their financial needs. Strategic partnerships with Sharia-compliant entities are central to our overall growth plans and value addition initiatives," Amiri stated.

According to industry experts, the global Takaful industry has grown by 20 to 25 per cent per annum in recent years, with the Gulf consistently accounting for around a third of worldwide figures. By 2015, the global Takaful sector is expected to reach $11 billion.

Noel D'Mello, general manager, Family Takaful, Salama, pointed out that the current global economic conditions have heightened the need for families to plan prudently for wealth protection and accumulation.

Salama has specialised in customising systematic investments and savings-linked Takaful plans which provide good value for money to the discerning investor, he said.

"By partnering with the fast-growing Dubai Bank, we are able to provide the benefits of Sharia-compliant Takaful plans to a niche segment of the UAE population," Noel added.-TradeArabia News Service