Dubai Investments is set to lead a group of investors to launch a new wholesale Islamic financial institution Arkan Bank with an initial paid-up capital of $100m.
Arkan Bank, stated to the first home-grown Islamic bank to operate from Dubai International Financial Centre (DIFC), will apply the Dubai Financial Services Authority (DFSA) to secure Category 5 licence to operate as an Islamic Financial Institution.
The authorised share capital of the new bank will be $500m.
Dubai Investments managing director and CEO Khalid Bin Kalban said: “The launch of Arkan Bank is coming at an opportune time in the UAE Islamic banking landscape.
“Arkan Bank is poised to achieve phenomenal success, as it will be the first wholesale Islamic bank operating in the UAE.
“The bank will initially focus on the GCC region and subsequently build scale and reach across its business lines, products and geographies to become the top-tier Islamic wholesale bank in the region and global arena.”
Arkan Bank will provide various Sharia-compliant banking services and investment products through its multiple core business lines such as Corporate Banking, Asset Management & Awqaf, Investment Banking and Treasury.
It also plans to list its shares on NASDAQ Dubai within 12 months of establishment, subject to regulatory approvals and fulfilment of other guidelines.
Abwab Capital is the investment advisor to Arkan Bank.