Emirates Islamic Bank (EIB) continues its rapid growth and presence across the region by instigating new partnerships in two key Gulf States recently.
Firstly, Emirates Islamic Bank forged a strategic tie-up with Gulf Finance House Commercial Bank (GFHCB), Amlak Finance and Islamic Corporation for the Development of the Private Sector (ICD) to commence Musharaka financing for the construction of the Royal University for Women (RUW) campus - Bahrain's first-ever private university for women.
Musharaka financing, or equity partnership, is based on a profit and loss sharing system where the financier shares in the venture's profits and losses. Each partner contributes a specific amount of capital. The Royal University for Women is an international University in the Gulf dedicated solely to educating women. It will provide the students degree certificates authorized by one of the reputed universities in UK and Canada
Commenting on EIB's participation in the project, Mr. Abdullah Showaiter, General Manager-Corporate & investment Banking in EIB said, “Our partnership in this pioneering project, aimed at promoting higher education among women, was a strategic decision for us. It will not only provide us with an ideal platform to highlight our innovative products but also help us contribute to the socio-economic development of the region.”
In a second major initiative, Emirates Islamic Bank extended its financial expertise towards the promotion and development of Al Ahlia Gulf Sukuk issuance in Kuwait. The $100 million Lagoon City Sukuk issue has been given the go-ahead by Al Ahlia Gulf Holding Company, a wholly owned subsidiary of Al Ahlia Investments Group.
The project, which was initiated in February, last year, sets a precedent in Kuwait for the private sector contribution towards the urban development outside the capital Kuwait City. Mr. Abdullah Showaiter said “The 731,000 square-metre project with an estimated cost of $410 million is a momentous landmark not just for Kuwait, but for the region. We are happy to be associated with this project and it is in line with our mission to promote Islamic finance across the region.”
