HSBC Amanah remains the undisputed regional heavyweight, but the 2006 award has gone to Dubai Islamic Bank (DIB), ahead of HSBC and last year’s winner National Commercial Bank. DIB’s list of achievements is extensive, particularly its project financing and sukuk work (see best sukuk house). According to Aref Kooheji, executive vice-president of investment and corporate banking, as the world’s first Islamic bank – it opened in 1975 – DIB has been able to capitalize on its long experience and has become involved in providing innovative structural financing solutions for a number of large projects and institutions in the GCC region and elsewhere.
Syndication deals include acting as joint arranger for the $530 million Islamic tranche of the $7.6 billion QatarGas II finance package. The Islamic financing was offered at the same tenor and pricing as the conventional tranche, but structured on a shariah-compliant sale and leaseback structure. DIB also acted as mandated lead arranger for: the $330 million BAPCO project; the $2.6 billion mega project financing for bridge loan for Dubai Ports and Customs Authority; and the $500 million ENOC expansion, a deal on which it also acted as sole underwriter.
At home, it has been involved in the UAE’s fast-growing real estate sector, in which it claims the largest market share in commercial real estate financing. In Q1 2005, DIB solely underwrote credit facilities required by a joint venture made up of leading local and international contractors awarded a Dh3.59 billion ($980 million) project for phase two of the Dubai International Airport Expansion. It also lead managed and arranged a $350 million ijarah sydnication to finance the real estate developments of Nakheel, the region’s leading real estate developer. On the corporate banking front, DIB was involved in the first structured Islamic commodity finance transaction in Dubai, on behalf of Al Khaleej Sugar.
Although it remains Gulf focused, DIB is in the process of expanding. Aref notes that in 2005, it opened representative offices in Turkey and Iran; established a wholly owned subsidiary in Pakistan; bought 60% of Sudan’s Bank of Khartoum, the country’s oldest bank; and helped set up the joint venture Emirates Sudan Bank.
