DIB breaks new ground with first structured Islamic financing for sugar imports

The deal, financed by DIB under the Islamic Murabaha Agreement, is secured through a pledge of the commodity with SGS the world's leading inspection, verification, testing and certification company acting as the Collateral manager. This transaction is a further breakthrough for Islamic finance, which continues to expand into new areas.

Mr. Wasim Saifi, Senior Vice President Corporate Banking, Dubai Islamic Bank, said: "This partnership with Al Khaleej Sugar Company is a significant breakthrough for the bank and for commodities trading and finance in Dubai. We regard this transaction as a forerunner of things to come and as setting new benchmarks for bank finance in the region.

"DIB is committed to looking for innovative ways to satisfy the wide ranging needs of its customers. We believe it extends the range of Islamic finance and opens up new possibilities both for the bank and its customers," he added.

This landmark transaction opens a new chapter in Dubai's growing economy and is entirely in accordance with the Dubai Government initiative of Warehouse Receipt Financing under the Dubai Metals & Commodities Centre, which has recently launched the Dubai Commodities Receipt (DCR) system.

DIB is one of the founder members of the DCR system and the only Islamic Bank in this category. This transaction places Dubai squarely on the map along with other established financial centres where commodities financing is a major driver of the economy.