Dubai Financial wins 'Cross Border Deal of the Year' award from Islamic Finance News

The deal represents the most significant cross-border Islamic transaction to date, integrating two hubs of the Islamic market.

Sayanta Basu, CEO of Dubai Financial, accepted the award at an event held last evening (12 March) that was attended by a prestigious list of guests from the business and finance industry.

According to Islamic Finance News Guide, a renowned and authoritative guide to global Islamic capital markets, Dubai Financial's acquisition of a 40 per cent stake in Bank Islam Malaysia Berhad (BIMB) - the founding Malaysian Islamic bank - demonstrates a complex blend of bridge funding. It also significantly contributed to BIMB's capital base, while growing its business beyond domestic borders.

Dubai Financial sets a precedent for the successful merging of GCC interests with the Malaysian market through direct investments with an established institution.

In his acceptance speech, Basu said: "The award reflects the success of our strategy to grow within the Islamic banking sector. We are honored to be recognized for our knowledge and expertise in this transaction, and hope for greater synergies in Islamic finance in the future."

The Islamic Finance News Guide citation said the investment required a GCC entity to buy into a Malaysian entity with distinct operating methods. It also necessitated the Malaysian institution to adapt to the GCC style of business in a way that did not disturb the bank's effectiveness in the local market.

Innovative in structure, the US$330 million Dubai Financial's deal represents the first truly Islamic integrated merger and acquisition (M&A), financing and hedging package, bringing together the Middle East and Asia Islamic markets.