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Ajman Bank will be the first Islamic bank in Ajman

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Points of Essence:

  • Another new entrant to the Islamic banking industry, Ajman Bank, will be offering Islamic financial services in United Arab Emirates. Based in the Emirates of Ajman, the bank will be the first in the UAE to raise capital by issuing IPO to seek public funding.

Posted on October 11, 2008 by ribh

Ajman Bank PJSC, which is expected to start its operations in January 2009, will be the first Shariah based Islamic bank incorporated and headquartered in the Emirate of Ajman. The Bank’s strategy is “to target the rapidly expanding Shariah financial services market with innovative products and services, designed to meet customers’ needs, all supported with outstanding levels of customer service”.

Ajman Bank was the first bank in the UAE in recent history to have decided to approach the market for an IPO. Though there are seven other Islamic banks in the UAE : Dubai Islamic Bank, Abu Dhabi Islamic Bank, Dubai Bank, Emirates Islamic Bank, Noor Islamic Bank, Sharjah Islamic Bank and Al Hilal Bank, only three banks have raised capital from the public so far.

Ajman Bank, the newest and the eighth Islamic bank being set up in the UAE, will mostly depend on Saudi Arabia and Bahrain markets for its human resources, according to the bank’s chief executive. Yousif Khalaf, CEO of Ajman BankAjman Bank, said getting talent for Islamic banks has become a difficult proposition, especially in the UAE and hence, Ajman Bank has to depend on other GCC markets to bring people to run the bank. Being from Bahrain himself, Khalaf said getting the right people may be the biggest challenge faced by banks, especially Islamic banks, where talent shortage is a critical issue. He said the new bank will introduce a new range of products, including mortgage finance products.

Ajman Bank aims to operate as a full-fledged Islamic bank supporting the on-going social and economic developments in Ajman by providing Shariah-compliant products and services including murabaha, mudarabah, istisna’a, musharaka, and ijara and other innovative Islamic products and services catering to the needs of the local market.


Written by Suapi Shaffaii

October 12, 2008 at 1:59 pm

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