Breaking the recent logjam in UAE real estate market deals is no small achievement for any deal. Abdulwahed Ahmad Rashed Bin Shabib achieved that and more with its $124 million refinancing this year.
Led by Emirates Islamic Bank, the deal from the Dubai construction and property company has consolidated its exposure to the sector. Using a liquidity murabaha structure, the transaction ring-fenced the cash flows of the wider company from volatility in certain real-estate holdings.
The Shariah-compliant liquidity structure is based on the bank purchasing tradable funding-limit certificates and selling them to the client – with an added profit margin. This was achieved without the involvement of commodities, which are often required under murabaha structures.
The proceeds from securitizing existing real-estate assets have helped the company diversify its overall business interests and position itself for future deals. These include investments in a variety of sectors such as government services, pharmaceuticals and hospitals.
The deal structure also offers other sectors a blueprint for strengthening corporate foundations in challenging market conditions.
The deal structure offers other sectors a blueprint for strengthening corporate foundations in challenging market conditions
Emirates Islamic Bank was established in 2004 and has focused on innovative home finance solutions. In June 2022, it partnered with Binghatti Developers, a leading Dubai real estate company, to grow its mortgage finance business.
The tie up with Binghatti Developers is designed to give customers greater access to real estate developments exposure via home finance products.
Real estate is just one business line and Emirates Islamic Bank continues to drive entrepreneurship across the Islamic banking sector. Last year, it launched a global fintech accelerator campaign in collaboration with innovation platform Plug and Play Abu Dhabi.
