Industrial Development Bank's capital increase completed

The involved consortium includes each of Jordan Dubai Financial (JD Financial) - the investment arm of Jordan Dubai Capital (JD Capital) and the stake owner of 60% of the new bank's capital, which is considered to be JD Financial's third and biggest investment to date in this field - as well as Dubai Islamic Bank (DIB), which owns 20%, and Dubai International Capital, which also owns 20%.

The private placement was valued at JOD2.750 per share, based on the pricing equation adopted by the bank's Shareholders General Assembly.

In addition to owning a share in IDB, the agreement enables DIB to provide the technical support and supervision needed to restructure IDB according to international best practices by giving IDB access to DIB's extensive expertise in providing innovative Shariah-compliant financing products.

In light of this occasion, His Excellency Mr. Samir Z. Al-Rifa'i, CEO of JD Capital, said:

"We are proud of the completion of the acquisition in IDB and it's first step towards transforming it into 'Jordan Dubai Islamic Bank', which is a step that reflects the great confidence that the project's investors have placed in the Jordanian economy. Shariah-compliant banking institutions have been the least affected in the face of the current economic crisis that the world is witnessing, which makes Shariah-complaint banking an ideal solution under all circumstances. The truly appreciated support and encouragement that the Jordanian Government has shown and the appealing investment environment that Jordan enjoys, have both played a pivotal role in making this deal a great success."

"We look forward to providing comprehensive Islamic baking services through this project, which will satisfy the Jordanian market's growing demands for Islamic banking tools. We hope that DIB, through this development, will take us closer to achieving our vision in becoming a comprehensive financial institution that follows the highest international measures and standards, and compete not only among the country's Islamic banking institutions, but also on the Jordanian banking sector level in general, in compliance with HM King Abdullah II vision in developing Jordan's economy and giving it an advanced position on an international level," H.E. added.

On his part, Mr. Khaled Al Kamda, Group Managing Director and CEO of Dubai Islamic Bank, expressed his pleasure with this success, stating: "The successful completion of this venture despite the economic and financial challenges facing the world today is a testament of our faith as investors in the resilience of Jordan's economy and the innate opportunities the Kingdom enjoys, particularly in the financial services and Islamic investments sector. We are committed to concentrating our efforts on this project and, through it, to instigate positive results that serve this sector."

Mr. Mufleh Akel, Chairman of Industrial Development Bank (IDB), further commented:

"The project was built upon strong investment foundations that combined the expertise of some of the largest institutions that have extensive experience in the investment field, particularly in Islamic investment. These institutions were joined together by a common ambition to bring greater value to the Jordanian Islamic banking services market - which like other sectors requires continuous support and a full utilization of its capabilities and opportunities - thus directing our efforts to serving Jordan's investment environment."

Dubai Islamic Bank is the first and most prestigious Islamic bank in its field; it has been providing Shariah-compliant banking services since the 1970s, and has investments in many financial sectors across the Islamic world. DIB recently created subsidiaries that practice Shariah-compliant banking in Pakistan and Sudan with great success. This latest venture will add Jordan to the firm's portfolio.

It is worth mentioning that Jordan Dubai Capital has recently won the Best Investment Company Award at the 2008 Arabian Business Award Ceremony in Jordan. The Award was won for the prominent role that JD Capital played in stimulating economic development in Jordan.

JD Capital strives to empower the Jordanian economy on a regional level and increasing shareholder returns through its utilization of the growing investment opportunities in Jordan, and benefiting from the economic growth that the various sectors are experiencing.