The bank already owned a 40% stake in Aseel and, through an undisclosed purchase agreement, has now increased this to full ownership. FGB said, with a paid-up capital of AED800m, Aseel is now its Islamic banking and finance arm.
Previously Aldar Properties, Sorouh Real Estate and Reem Investments held stakes of 20% each.
FGB chief executive Andre’ Sayegh said: “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.”
FGB said the purchase is part of a wider “dual expansion strategy”, focused on enhancing its global presence and on further developing existing businesses. It added that Islamic finance is an “important and growing segment of the region’s banking sector” and that Aseel will allow it to reach this customer base.
Specifically, Aseel will offer a full 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 FGB’s existing Emirati Al Awwal Islamic savings certificates programme, transaction accounts and individual deposits.
Aseel Islamic Finance will maintain an independent board of directors with Hana Al Rostamani as the chairperson, while Javed Afzal has been appointed chief executive.
