Dubai Islamic Bank Increases Stake in T.O.M Group to 25%
Deal News | Jan 20, 2025 | Zawya
Dubai Islamic Bank (DIB), the largest Shariah-compliant lender by assets in the UAE, has increased its shareholding in Turkey's T.O.M Group of Companies to 25% from 20%. This move comes by exercising an option that was part of the bank's initial acquisition agreement made in September 2023. The T.O.M Group consists of key financial service companies including T.O.M. Katlm Bankas A.., Turkey’s pioneering licensed digital retail bank, alongside several other licensed entities in the sectors of e-money and digital financing. Supported by the government of Dubai through a 28% stake held by the Investment Corporation of Dubai, DIB, the fourth largest bank in the UAE, reported a profit of AED 5.45 billion for the period ended September 2024, marking a 13% increase from the previous year. Expanding beyond its UAE base, DIB has established a significant presence in various markets including Indonesia, Pakistan, Sudan, Bosnia, and Kenya. This strategic move underscores DIB’s commitment to enhancing its digital banking operations and bolstering its regional footprint.
Sectors
- Banking
- Digital Finance
- Islamic Finance
Geography
- United Arab Emirates – Dubai Islamic Bank is based in the UAE and is a major player in its financial sector.
- Turkey – The T.O.M Group of Companies, in which DIB is investing, is based in Turkey.
Industry
- Banking – The article discusses Dubai Islamic Bank's investment in a digital banking entity, T.O.M Katlm Bankas A.., in Turkey.
- Digital Finance – The investment in Turkey's digital banking services highlights the growing significance of the digital finance sector.
- Islamic Finance – Dubai Islamic Bank is a Shariah-compliant lender, indicating activity within the Islamic Finance industry.
Financials
- 5% – The increase in Dubai Islamic Bank's stake in T.O.M Group, from 20% to 25%.
- AED 5.45 billion – Dubai Islamic Bank's profit for the period ending September 31, 2024, a 13% increase year-on-year.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Dubai Islamic Bank | Bidding Company | Company | UAE's biggest Shariah-compliant lender by assets, backed by the government of Dubai. |
| T.O.M Group of Companies | Target Company | Company | Includes Turkey’s first licensed digital retail bank and other e-money and financing companies. |
| Investment Corporation of Dubai | Supporting Entity | Government | Holds a 28% stake in Dubai Islamic Bank. |