2009-08-23 16:41:26
WAM Abu Dhabi, Aug. 23, 2009 (WAM) -- Abu Dhabi Commercial Bank (ADCB) has approved a Mudaraba Medium Term Facility worth AED300 million for the developer of the region's premier integrated innovations hub for high-tech industries, Dubai Silicon Oasis (DSO). The funds will be used by Dubai Silicon Oasis Authority (DSOA) to part finance the development of facilities within the technology park.

"This is yet another step in ADCB's advancement of purely Islamic finance facilities, and has been developed through our independent Islamic banking arm, ADCB Meethaq," said Mr. Howard Gaunt, ADCB Executive Vice President and Head Business Banking.

"The facility is indicative of our long-term commitment to finding new and influential funding solutions for our clients in every sector of the UAE economy, with a particular emphasis on sizable infrastructure projects. We are delighted to be able to support Dubai Silicon Oasis Authority's efforts to build a high technology industry platform for the country." Commenting on the facility, William Chappell, Chief Financial Officer at DSOA, said: "Since 2004, we have diligently worked towards creating a multi-faceted integrated technology park based on sound financial planning. The approval of this Islamic finance facility from ADCB demonstrates the financial strength of Dubai Silicon Oasis in the current financial crisis. We are confident that ADCB will find DSO a viable investment option, and an ideal partner for an Islamic funding vehicle." The Mudaraba facility is a Shari'ah compliant partnership contract that allows profit from the project to be shared between the parties involved.

Explaining the detail of the facility, Mr. Mufaddal Khumri, ADCB Head Islamic Banking said: "Mudaraba financing allows ADCB to take the position of investor (Rabb Al Mal) through this facility for Dubai Silicon Oasis Authority.

"We have no doubt whatsoever, that DSOA will achieve success in the project, and believe this is a perfect example of modern, sophisticated, large-scale Islamic finance in action in the region." WAM/SA