Ajman Bank, the emirate’s first Islamic commercial bank, has signed an agreement with Emirates Transport providing Dh30 million (8.2 milllion) in the form of murabaha finance.

As per the deal, Ajman Bank will purchase a fleet of over 100 buses and subsequently sell the same to Emirates Transport on deferred payment terms to expand their services which have seen a steady growth over recent years.

This deal is one of many currently in progress that demonstrate Ajman Bank’s strong liquidity position of over Dh1.2 billion, well positioning the bank to pick-up healthy business opportunities this year, a bank official said.

At present Emirates Transport owns a fleet of 4,000 buses which are used to transfer students to and from various educational establishments on a daily basis, as well as providing transportation and maintenance services to a number of other institutions including religious bodies, sports clubs, and insurance companies.

Ali Essa Alshaqoosh Al Mueen, acting CEO of Ajman Bank commented: "Ajman Bank is very pleased to establish an on-going banking relationship with Emirates Transport, particularly due to the essential service that the company provides, supporting the community and the Economy of UAE."

"The deal will enable Emirates Transport to add to its existing fleet providing services to its clients who would otherwise be required to find alternative and perhaps less reliable ways to get around," he stated.

The deal struck with Emirates Transport characterises the type of business transaction that Ajman Bank seeks to pursue to further enhance the country’s development and its social welfare.

The deal is very much in line with the Bank’s community banking strategy which seeks to improve the strength and progress of the local economy.

The funds provided to Emirates Transport means the company can, amongst other things, purchase more school buses, ultimately leading to a reduction in traffic across the Emirates as fewer parents will be required to drive their children to school, he noted.

"With this in mind, this business affiliation is the perfect example of activities into which we at Ajman Bank would be delighted to venture in light of our objectives to support the local economy and encourage closer collaboration with all market sectors across the UAE," he added.

Mohammad Abdulla Al Jarman, general manager of Emirates Transport, said, "The signing of the deal with Ajman Bank is of great importance to both parties and we are confident that it represents the beginning of a promising long-term relationship."

"We are in the fortunate position to have a service that is in high demand and have been granted financing that will allow us to better serve our clients and customers."

"These are difficult times for many people but the team at Ajman Bank recognise our potential and the value that we deliver to the market.  We look forward to showing them what we can do," he added.-TradeArabia News Service