Make "benefits" from your bank's money

Adcb to buy $1225 mln sme loan portfolio from mubadala ge


´╗┐DUBAI, April 20 Abu Dhabi Commercial Bank has agreed to buy a portfolio of asset financing loans worth 450 million dirhams ($122.5 million) from Mubadala GE Capital, it said in a bourse statement on Sunday. The portfolio, which comprises loans to small and medium-sized enterprises (SMEs) in the United Arab Emirates, will strengthen the bank's position in a sector described by ADCB's chief executive Alaa Eraiqat as "a critical component of the UAE economy".

Minister of Economy Sultan bin Saeed al-Mansouri said this month that he expected the contribution of SMEs to the UAE's gross domestic product to rise to 70 percent by 2020 from 60 percent in 2011, helped by a new law designed to foster their development.

Mubadala GE Capital, established in 2010 to provide structured financing to businesses, is a joint venture between Abu Dhabi state investment firm Mubadala and General Electric.

Bank of tokyo mitsubishi ufj gets dubai islamic finance licence


´╗┐DUBAI, July 12 Japan's Bank of Tokyo-Mitsubishi UFJ (BTMU) said it had obtained permission from the Dubai Financial Services Authority to operate a so-called Islamic window, underlining growing Japanese interest in sharia-compliant banking. Islamic windows allow conventional banks to conduct Islamic finance by segregating assets from conventional interest-bearing funds. Industry sources said it was the first time that a bank from Japan was operating an Islamic window in the Middle East.

BTMU decided to take the step after Japan's Financial Services Agency changed its supervisory guidelines, the bank said in a statement seen on Sunday.

Japanese institutions have become increasingly interested in Islamic finance as a way to tap large pools of liquidity in southeast Asia and the Gulf.

Last September, BTMU became the first Japanese commercial bank to issue Islamic bonds; last month, a Malaysian affiliate of Toyota Motor said it planned to set up a funding scheme that would include Islamic debt. The Japan International Cooperation Agency has signed an agreement with the private sector arm of the Jeddah-based Islamic Development Bank to develop sharia-compliant transactions.