UAE to establish Islamic bank specialising in international trade

The government-run Dubai Islamic Economy Development Centre (DIEDC) announced on Wednesday that it is in discussions with the Central Bank of the United Arab Emirates to obtain initial approval for the first Islamic bank to focus exclusively on international trade and commodity financing. The centre said that the bank aims to double the size of trade to the UAE by 2020, Anadolu has reported.

The trade figure for 2014 amounted to $381.5 billion. The “Emirates Trade Bank” is predicted to play an important role in promoting trade exchange to and from the UAE as well as supporting local companies and institutions. One of the new bank’s objectives is to offer integrated products and trade finance solutions and to provide the necessary liquidity to maximise returns and take advantage of the growing global demand for Islamic finance.

The DIEDC was established in 2013 under the supervision of Hamdan Bin Mohammed Bin Rashid Al-Maktoum, the Crown Prince of Dubai, to strengthen and consolidate the emirate’s position as an international centre for an Islamic economy. The organisation is based on the promotion of halal industries, Islamic tourism, digital infrastructure, art and Islamic knowledge, as well as Islamic standards.