Dubai Islamic Bank PJSC (DIB) has received formal approval from the Financial Services Authority, Indonesia (OJK) to increase its shareholding in PT Bank Panin Syariah, a listed syariah commercial bank, to 40 per cent, the company said in a press statement.
The move forms part of DIB’s overall investment strategy in Indonesia.
In the first phase, DIB had completed the acquisition of around 25 per cent stake in Bank Panin Syariah, procuring the entity’s shares from the market, and not through a direct share purchase from Panin Bank as earlier reported in certain sections of the press.
Following the completion of the first phase, DIB initiated a formal regulatory approval process to obtain “Controlling Shareholder Status” from the Financial Services Authority.
After the OJK approval, DIB is now in a position to initiate and complete phase two of the share purchase plan to increase its shareholding to 40 per cent.
“Islamic banking in Indonesia has huge potential which still remains largely unexploited”, said Adnan Chilwan, Group CEO, DIB. “Given Bank Panin Syariah’s knowledge of the local market and DIB’s undisputed expertise in this fast growing segment, we see a massive opportunity for growth and expansion transforming what today is seen as a niche business into a more widely accepted form of banking within the country”.
DIB, established in 1975, is the first Islamic bank to have incorporated the principles of Islam in all its practices and is the largest Islamic bank in the UAE.
DIB is a public joint stock company, and its shares are listed on the Dubai Financial Market. The bank enjoys a reputation as a leader and innovator in maintaining the quality, flexibility and accessibility of its products and services. The bank operates 90 branches in the United Arab Emirate.
DIB has been proactive in creating partnerships and alliances at both the local and international level. The bank has established DIB Pakistan Limited, a wholly owned subsidiary which has a network of more than 175 branches across 56 major cities in Pakistan. DIB has also started operations in Jordan with the establishment of Jordan Dubai Islamic Bank.