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First Gulf Bank Acquires Full Ownership Of Aseel Islamic Finance
(26 October 2013)

FGB Expands Islamic Operations To Complement Overall Growth Strategy

First Gulf Bank (FGB), one of the major leading banks in the UAE, has increased its stakes in Aseel Islamic Finance, through a purchase agreement which has raised the bank’s ownership from 40% to 100%.

With a paid-up capital of AED 800 million, Aseel is now FGB’s Islamic banking and finance arm, offering innovative Shariah-compliant solutions for customers and businesses.

This agreement is part of the bank’s larger dual expansion strategy which is focused on enhancing its global presence and on further developing existing businesses while meeting customer needs. Islamic finance is an important and growing segment of the region’s banking sector, and Aseel will provide innovative Islamic products to a broad base of customers and businesses which require Shariah-compliant services.

Aseel will offer a full-fledged range of Islamic solutions, such as Business Financing, Murabaha and Ijarah products for SMEs, Takaful, Investment products, Corporate Deposits, and Trade facilities in addition to Real Estate services. It will also share responsibility for managing the bank’s existing Emirati Al Awwal Islamic savings certificates programme, Transaction Accounts and Individual Deposits.

Commenting on the bank’s significant step into Islamic finance, Andre’ Sayegh, CEO of FGB, stated: “The customer-driven trend for more Shariah-compliant financing products in the UAE is clear. We have listened to our customers and our ownership of Aseel will allow us to build on our existing Islamic product portfolio to meet this growing demand. Our intention is to establish Aseel Islamic Finance as an Islamic finance powerhouse in its own right while maintaining the customer centric approach and values of First Gulf Bank.”

Aseel Islamic Finance will maintain an independent board of directors with Hana Al Rostamani as the Chairperson, while Javed Afzal was appointed as the Chief Executive Officer. Under their leadership, and with their combined expertise, the bank’s Islamic subsidiary will continue to provide top quality Shariah-compliant products and services, with further expansion plans to be announced in due course.