DIB Extraordinary General Meeting approves capital increase to AED 3 billion

The total paid-up capital will total AED 1.5 billion.

The share capital increase will be offered to the shareholders at nominal value of AED 10 per share in addition to a premium of AED 10. The shareholders approved an extension of the company's activity period by an additional 50 years. Finally, the shareholders accepted a proposal to allocate 2% of the proposed capital increase to the DIB Employees Fund, as stock options.

The deadline for entitlement to the share capital increase will be at end of trading session on Tuesday September 14 at the Dubai Financial Market. The subscription of 500 million will be carried out in two installments. The first installment will cover 50% of the total subscription value from September 18, 2004 until September 30. The second installment will cover the remaining 50% starting from December 4 until December 16, 2004.

Dr. Mohammed Khalfan bin Kharbash, UAE Minister of State for Finance and Industry and Chairman of DIB, said: "DIB has achieved record growth in the last few years at all levels, especially in its financial and investment portfolios. This growth has been reflected in the significant increase in the balance sheet with the bank's assets growing to AED 25.4 billion at the end of the first quarter of the current year and its financial and investment portfolios rising to AED 13.2 billion. Deposits have grown to AED 22.6 billion. Assets and profits have also doubled in the last three years."

Dr. Kharbash noted that the strong growth achieved by the bank during the past three years resulted in a two-fold increase of the bank's assets and profits.

"'Such record growth necessitates taking important steps towards enhancing the bank's solid financial position in line with its strategy aimed at creating new sources of income through diversifying its financial and investment portfolios and expansion to regional and international markets. The increase of declared and paid-up capital serves to support that strategy and is in keeping with DIB's current situation and its future plans,' added Dr. Kharbash.

The initiative of increasing declared and paid-up capital supports the long-term growth plans of the bank, which also rest on the development of strategic projects and alliances headed by the bank during the last period. These alliances were executed in cooperation with leading corporations in the UAE and specialized international financial establishments.

Dr. Kharbash highlighted that DIB has initiated new projects in various sectors with leading local and international organizations. In the Insurance sector, DIB launched Dubai Islamic Insurance and Reinsurance Company (AMAN). Tamweel has established itself as a solid player in the Real Estate investment. Both companies have achieved notable success in a short period of time. DIB also launched Emirates National Securitization and Investment Company to issue real estate mortgage backed funds to be issued to the US and European markets. In partnership with international experts, DIB created the Islamic Leasing Company. The Department of Civil Aviation in Dubai recently appointed DIB to lead manage the 750 million AED Islamic Sukuk that will fund the second phase of the expansion of the Dubai International Airport.

Dr. Kharbash concluded, "these projects and achievements are testimony to the success of our strategy in diversifying our investment and financing activities allowing us to play a leading role. There are many more promising projects that the bank will be taking on in the near future".