DIB signs landmark leasing deal with General Electric

The transaction involves the purchase of machines and engineering equipment by DIB and ABC and leased under Sharia principles to General Electric.

"We intend to source more deals with investment grade companies from around the world," Mr. Aref Kooheji, DIB's Executive Vice President for Investment Banking said. "We pay special attention to the elimination of risk by means of watertight structures that provide protection against residual risk during the term of the lease."

Mr. Kooheji concluded the signing with Mr. Duncan Smith, ABC Islamic Asset Management's CEO, in Dubai recently.

"This is a landmark deal. If General Electric is prepared to go the Islamic financing route, then it's hard to see how similar multinationals will not avail themselves of this excellent financing facility in the future. This will give the Islamic industry a tremendous boost," Mr Smith said.

Mr Smith added that the partnership transaction was made possible through cooperation between investment professionals at DIB and ABC Islamic Asset Management, whose understanding of complex structures, legal and other matters, particularly Sharia compliance, facilitated smooth cross-border dealings of significance in the development of investments in the Islamic financial industry.