DIB reports a 25 per cent increase in profits for the first six months of the year to AED 405 million

The bank's assets showed an identical rate of growth, climbing 25 per cent to AED 27.2 billion at the end of June 2004, compared to AED 21.8 billion at the end June last year.

Customer deposits with DIB also witnessed a strong growth, of AED 5.2 billion - a 27 per cent increase - to AED 24.6 billion, against the AED 19.3 billion recorded at the end of June 2003. The bank's financing and investment portfolio showed a significant growth - a 31 per cent increase to AED 14.9 billion at the end of June 2004, from AED 11.3 billion for the comparative period last year.

Dr Mohammed Khalfan bin Kharbash, UAE Minister for Finance and Industry and DIB's Chairman, said: "Dubai Islamic Bank has maintained a high rate of growth in recent years as a result of adopting an ambitious diversification and expansion strategy across its investment and financing activities. The bank is playing a leading role in the Islamic financing sector in both the local and regional markets through innovative financial tools and investment solutions.

"The growing trust in the bank and its credibility as a leader in Islamic banking in the UAE and the region recently led to DIB being mandated to act as lead manager and arranger for Islamic-structured finance deals worth some $1.1 billion. This reflects the bank's capability in the field of providing creative Islamic financial solutions that satisfy the growing needs in various economic sectors and the increase in demand for Islamic financing tools."

Determined to sustain the current rapid rate of growth in its operations and profits, DIB has announced an increase in its authorized capital to AED 3 billion and the paid-up capital to AED 1.5 billion, this will make DIB the biggest capitalized bank in the UAE.

Dr Kharbash said DIB continued to develop partnerships and strategic alliances with leading UAE and international institutions, which led to various unique projects and specialised products and services being offered to local and regional markets. An example of these projects is the launch of Emirates National Securitisation and Finance Corporation which will issue mortgage backed securities in the regional and international markets. Another example is the establishment of a specialized Islamic Leasing Finance Company, in cooperation with a leading US group. These initiatives will contribute in raising the international status and profile of the UAE's banking and financial markets.

One of the most important developments of all saw the DIB recently mandated by the Department of Civil Aviation in Dubai to manage and arrange the $750 million Islamic Sukuk - the biggest in the world - to finance phase 2 expansion of Dubai International Airport.