Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, has celebrated the launch of Panin Dubai Syariah Bank in Indonesia.

Following regulatory approvals in 2015, Dubai Islamic Bank acquired almost 40 per cent in PT Bank Panin Syariah Tbk, which has been rebranded to Panin Dubai Syariah Bank (PDSB) as part of the deal, marking DIB’s first entry into the Asia-Pacific region.

The event was held in the presence of DIB Group CEO Dr Adnan Chilwan; key local officials including Muliaman D Hadad, chief commissioner OJK, Dr KH Ma’ruf Amin, chief of the Indonesia Ulama Council,  Hamlim Alamsyah, chief commissioner of Indonesia Deposit Insurance Corporation, and senior management from both organisations.

The newly rebranded bank offers Islamic banking services in Indonesia. With a total population of 200 million, 95 per cent of which are Muslim, and its Sharia compliant banking market expected to grow from 3 per cent to 11 per cent by 2020, Islamic finance will be a defining pillar of Indonesia’s growth in the years ahead, said the statement.

Dr Chilwan said: “This acquisition is an important milestone for DIB. As the world’s first fully-fledged Islamic bank, we not only established a new banking model four decades ago, but also took on the responsibility to grow and develop the global Islamic finance market. One way we are doing this is through strategic partnerships and Bank Panin is a perfect partner for us in the Asia-Pacific region. As an established player with years of experience and local market knowledge, Bank Panin will enable us to progress our vision for Islamic finance in Indonesia and across the region.  Looking ahead, we will execute our strategy in Panin Dubai Syariah Bank just as we have consistently done over the past forty years in the UAE and in our other key international markets, and are confident that this partnership will ultimately get us one step closer to making Sharia compliant banking the norm, rather than an alternative to conventional banking, around the world.”

DIB has experience of doing business in Indonesia on key Sharia compliant transactions including the 2015 Garuda Airlines’ structuring for its $500 million five-year sukuk offering. This sukuk issuance was a significant milestone for the development of Islamic finance capital markets and re-enforced investor confidence in the Indonesian market. DIB’s activities in Indonesia have also been further witnessed by its substantial investment in Gol and its entities, with over $500 million on its proprietary book held to maturity, the statement said.
 
True to its reputation as the leading performer in the UAE market over the years, in 2016, DIB reported a net profit of Dh4.05 billion, a significant increase of 6 per cent per cent compared to Dh3.83 billion in 2015. It was DIB’s highest ever profit, depicting robust profitability growth despite a challenging economic environment.
Following a revised strategy in 2016, the bank’s Pakistan operations, saw its profits double, the focus now is to get Indonesia and Kenya launched to play their part in contributing to the progression of Islamic finance, a core ambition for the bank. - TradeArabia News Service