Abu Dhabi: Al Hilal Bank, Abu Dhabi's second Islamic bank, yesterday launched its operations in the UAE with four branches, two in Abu Dhabi, one in Al Ain, and one in Dubai.
General Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Sup-reme Commander of the UAE Armed Forces, flanked by Shaikh Mansour Bin Zayed Al Nahyan, Minister of Presidential Affairs, and other senior officials, inaugurated the main branch in the Khalidya area, overlooking the Corniche.
The bank is fully owned by the Abu Dhabi Investment Council, with an authorised capital of Dh4 billion, and is chaired by the council's director Eisa Mohammad Al Suwaidi.
Shaikh Mohammad opened an account with the new bank, which is slated to have 20 branches by next year.
"In 2005 and 2006 the rate of growth for Islamic banks exceeded 60, and we expect this to continue," the chairman told Gulf News.
"Although some reports mention that the UAE is overbanked in terms of the per capita's share, yet given the robust economic growth and the requirements of diversification, more financial institutions are still needed," he added.
The bank plans to expand its network to ten branches by the end of the year, including a branch in Sharjah and another in Ras Al Khaimah.
"We will have the full fledged banking activities, including all the retail and corporate operations," the chairman said.
The bank has already received approval to establish its first affiliate, which will take place within a week.
"We are working on the establishment of Al Hilal Takaful, an Islamic insurance company with Dh100 million capital, as we have already acquired the necessary licensing and approvals," Mohammad J. Berro, the bank's chief executive, said.
"This will be followed by Al Hilal Real Estate Company, as we consider the sector to be one of the most promising in the UAE," he added revealing that other negotiations are taking place with leading developers in Abu Dhabi, such as Aldar Properties and Sorouh Real Estate, for financing development projects.
Al Hilal is receiving strong support from the Central Bank which allowed its branches to serve customers from 8am to 9:30pm.
In addition to the four branches there are three automatic teller machines, two of which are in Al Wihda Mall, and one at the Khalideya Mall in Abu Dhabi.
"This is only the beginning, as we intend to have an aggressive entrance to the market, attracting new comers as well as existing clients for other banks," the CEO said.
The bank is already offering internet banking, as well as a 24/7 call centre.
The bank is already compliant to the Basel II requirements as well as all other recent requirements issued by the authorities according to its top executives.
The bank is offering a new retail concept of "shop within a mall" with a main walkway with kiosks and displays similar to a commercial mall.
The Khalideya branch will start receiving clients from Saturday, to be followed by the other three branches on Sunday.
At a glance: Islamic banks in the nation
- 1. Abu Dhabi Islamic Bank
- 2. Ajman Bank
- 3. Al Hilal Bank
- 4. Al Noor Bank
- 5. Dubai Islamic Bank
- 6. Dubai Bank
- 7. Emirates Islamic Bank
- 8. Sharjah Islamic Bank
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