Dubai-based Gulf Energy Maritime (GEM), a leading independent commercial product and chemical tanker operator, has signed a Dh275 million ($74.8 million) Islamic finance deal with Dubai Islamic Bank (DIB).

A major player in the region, GEM currently has a fleet of 19 trading ships, which comprises of eight modern LR1, two LR2 and nine chemical/product tankers.

The agreement with the Emirati bank marks the first time GEM has raised funding of this kind through a Shari'ah-compliant facility, said its top official.

"The seven year facility is the first deal between us and Dubai Islamic Bank, the closing of this agreement is part of a long-term relationship with the bank as we look to extend our association," remarked CEO Ahmed Essa Hareb Al Falahi.

“Providing custom-made services will assist the company to meet objectives to provide safe, high quality and economical operation of vessels and optimise shareholder value as well the purchase of new vessels and expand operations,” he stated.

DIB Group CEO Dr Adnan Chilwan said the partnership with GEM demonstrates the bank's expertise in the field of Islamic banking and finance.

“This innovative structure highlights the flexibility of Shari'ah-compliant financing and our commitment to the industry whilst simultaneously supporting and facilitating business growth in the UAE,” he added.-TradeArabia News Service