SIB and EIB sign Dhs147m Ijarah contract with Global Marine Services Company

The contract is based on a financing scheme that will involve both purchase and lease back of the ships.

"Sharjah Islamic Bank and Emirates Islamic Bank have jointly participated to finance Global Marine Services Company. We have finalized all legal requirements for the facility, the purpose of which will be to enhance the Shipping sector of the country and facilitate the trade services on our ports. We wish Global Marine success in their move to provide better services to the off shore shipping sector,"

said Mr. Mohamed Abdalla, Sharjah Islamic Bank Chief Executive officer.

The contract is part of a series of agreements between Global Marine Services Company and SIB, an agreement which had been approved by both SIB and EIB.

Mr. Abdalla explained that Global Marine Services Company is one of SIB's most distinguished customers and that the facility serves as an enhancement of previous facilities provided by SIB to Global Marine Services. SIB enjoys a strategic relationship with EIB which started when EIB transitioned into Islamic Banking activities.

"Ever since we began our relationship with Emirates Islamic Bank, we have originated and jointly participated in a number of global investment opportunities and this facility for GMS is a stepping stone for both the institutions in increasing our exposure to the buoyant shipping services sector," said Mr. Abdalla.

Mr. Abdullah Sharif, President of Global Marine Services Company commented, "We are looking forward to extending our ties with both institutions in order to enhance our trade related services. We also thank Sharjah Islamic Bank for their deep interest in providing facilities which aid in the promotion of the transport service sector in general and the shipping in particular."

Mr. Sharif added that the participation between the two banks in supporting the contract will be an integral part of the agreement's success.

Mr. Abdullah Showaiter, the General Manager for Investment and Commercial Banking at Emirates Islamic Bank said, "Emirates Islamic Bank and Sharjah Islamic Bank have collaborated in numerous bilateral funding agreements in the past, and we have greatly benefited from the experience of SIB in the Sharjah market."

Mr. Showaiter added that joint Islamic funding is important to the development of the region, noting that EIB has developed similar relationships with other Islamic banks in the Gulf region that have led to various joint Islamic funds.

"Islamic banks have significant cash flow, so we must cooperate to push economic development in the region. If the Islamic banks in the region work together, they will be able to lead an Islamic fund with the capacity to cover the entire world," said Mr. Showaiter