Dubai Islamic Bank Expands Stake in Turkiye's Digital Banking Sector
Deal News | Jan 20, 2025 | Zawya
Dubai Islamic Bank (DIB), the UAE's largest Shariah-compliant financial institution by assets, has expanded its ownership in the T.O.M. Group of Companies in Turkey from 20% to 25%. This move represents the exercise of an already established option that was part of an earlier acquisition agreement made in September 2023. The T.O.M. Group encompasses Turkiye's first licensed digital retail bank, T.O.M. Katlm Bankas A.., as well as other digital financial service entities such as an e-money company and a financing company. DIB, the fourth largest bank in the UAE, is further solidifying its presence in multiple regions, including Turkey, Indonesia, Pakistan, Sudan, Bosnia, and Kenya. The bank, supported by the Investment Corporation of Dubai with a 28% stake, reported a profit of AED 5.45 billion for the period ended September 31, 2024, which marks a 13% increase from the previous year. This strategic elevation in its stake looks to enhance DIB's influence in the digital banking sector of Turkey, reflecting its broader expansion goals.
Sectors
- Banking and Finance
- Digital Banking
- Islamic Finance
Geography
- United Arab Emirates – Dubai Islamic Bank, originating from the UAE, has made a significant investment move, showcasing the country's financial expansion strategies.
- Turkey – The T.O.M. Group of Companies is based in Turkey and is the focus of DIB's increased investment, highlighting the geographical relevance.
Industry
- Banking and Finance – The article discusses Dubai Islamic Bank's stake increase in T.O.M. Group within the digital banking and financial services space in Turkey, representative of the Banking and Finance industry.
- Digital Banking – T.O.M. Group consists of Turkey's first licensed digital retail bank and other digital financial entities, signifying the digital banking sector's relevance.
- Islamic Finance – Dubai Islamic Bank is the largest Shariah-compliant lender in the UAE, indicating the prominence of Islamic Finance in its operations.
Financials
- 25% – The stake Dubai Islamic Bank now holds in Turkey's T.O.M Group of Companies.
- AED 5.45 billion – The profit reported by Dubai Islamic Bank for the period ended September 31, 2024.
- 13% – Year-on-year profit increase for Dubai Islamic Bank noted in the latest period report.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Dubai Islamic Bank | Bidding Company | Company | The UAE's biggest Shariah-compliant lender involved in increasing its investment stake in T.O.M. Group. |
| T.O.M. Group of Companies | Target Company | Company | A company in Turkey that includes the nation's first licensed digital retail bank, into which DIB invested. |
| Investment Corporation of Dubai | Government | Government | Backs Dubai Islamic Bank, holding a 28% stake. |