TABLE OF CONTENTS

NO. TOPIC PAGE NO.

1 INTRODUCTION 2
2 HISTORY AND DEVELOPMENT OF BANK IN DUBAI 3-5
3 PRODUCTS AND SERVICES 6-13
4 PRIVATE AND GOVERNMENT FUNDED BANKS. 14-15
5 CURRENT ACHIEVEMENT OF THE BANKS 15-16
6 CONCLUSION 17
7 GANTT CHART 18
8 BIBLIOGRAPHY 19

1
INTRODUCTION

HISTORY AND DEVELOPMENT OF ISLAMIC BANKING AND FINANCE

All types of trading based transactions were common in the pre-Islamic Arabic financial
and economic system. Those transactions including bay’ al-musawamah (bargaining), bay’ al-
muzayadah (auctioning), bay’ al-amanah (trust sale) barter trade and al-sarf (money exchange)
were common. The practice of riba, gharar and maysir were widely used and acceptable. Allah
mentioned in Al-Quran which the primary source in Islam, “O you who have believed, fear Allah
and give up what remains (due to you) of interest, if you should be believers. And if you do not,
then be informed of a war (against you) form Allah and His Messenger. But if you repent, you
may have your principal- (thus) you do no wrong, nor are you wrong.” {2:278-279} Allah
prohibit riba because it leads to injustice same goes to gharar (uncertainty) qimar and maysir
(gambling) because those may bring harm to man. With the advent of Islam, Shariah laws were
about to remove completely those haram practices and to produce the institutionalization of fair
and equitable market and standardize money and commodity exchanges.

In the early fifties, scholars started writing for Islamic banking in place of Interest Free
Banking. In the next two decades, this idea attracted more attention. Early seventies had shown
the involvement of institutional. Conference of the Finance Ministers of the Islamic countries
was held and this led to the application of theory to practice and resulted in the establishment of
Islamic Banks.1 This process has produced Islamic Development Bank (IDB) in 1975 in Saudi
Arabia as well as Dubai Islamic Bank in the UAE. First attempt in the west to establish Islamic
banking was in Luxemborg in 1978.Because of the implication of shariah show positive view,
many business Islamizing their organization and practicing the products such mudarabah,
musyarakah, salam, istisna’ muzara’ah and musaqah. New organization like zakah, waqaf,
manihah and baitu-mal were also being introduced. Islamic banking and finance that are
principles that based on Shariah (Islamic law) and it is practical application through the
development of Islamic economics and it is relatively new compared to conventional banking
and finance. Islamic finance has been creating an existence on a global scale for the last a few
decades. Today, Islamic banking customers are not only from the Muslim but also from the non-
Muslim due to the benefits offered.

1
Sheikh Omar Sharif. The Study of Islamic Banking with Special Reference to Dubai Islamic Bank. 2011, p xi

2
HISTORY OF DEVELOPMENT OF BANK

Dubai Islamic bank is considered to be the first Islamic bank in the world and DIB is the third
largest bank in the Gulf. To attract the global financial institution, Dubai international Financial
Centre (DIFC) was established and operates as a financial free zone. DIB is the world class
regulator and regulatory regime in the Dubai Financial Services Authority (DFSA). Dubai Metal
and Commodities Centre (DMCC) provides Islamic finance packages to companies specializing
in the gold and diamond trade. DMCC also provides gold-linked Islamic financing by giving the
investors the option to receive payments denominated in gold bullion as an alternative to the
USD.

1. DUBAI ISLAMIC BANK

The Dubai Islamic Bank (DIB) is an Islamic bank in Dubai which established in 1975. It is
the first Islamic bank to have incorporated with the principles of Islam in every practices.it is
also the largest Islamic bank in the UAE. 2The Dubai Islamic Bank was established as a joint
stock company and its shares are listed on the Dubai Financial Market. The bank currently
operates 62 branches in the UAE. Dubai Islamic bank involvement including local and
international partnership.it have established Dubai islamic pakistan limited, a fully owned
subsidiary which has a network of 75 branches across 27 major cities in Pakistan.it also has a
representative office in Turkey,and even has received a preliminary banking license by the
Central Bank of Jordan to operate as an Islamic financial institution through a new entity-Jordan
Dubai Islamic Bank.3 Dubai Islamic Bank also has established Dubai Islamic Bank Iran in
Tehran. The main founders were Saeed Lootah, Nasser Lootah, Sultan Lootah, Mohammed
Lootah, and Abdallah Saeed. The governor of Dubai, Sheikh Rashid Al-Maktoum, issued the
Amiri Decree, which allowed the bank to be established as of March 12, 1975 (Al-Marwyne
1985). The bank‘s capital was 50 million Arab Emirate dirham (AED) divided by100 thousand
shares with a face value of AED500 each. The founders bought 10 thousand shares with a value
of AED5 million, paid in full (Al-Marwyne 1985). 4This bank is generally considered to be the

2
"DIB Largest Bank"
3
http://uaeu2007.blogspot.my/p/about-dib.html
4
Journal of Islamic Banking and Finance, Vol. 3(1), June 2015 ,No. 1, pp. 12-25-Development of the
Islamic Banking System by Ahmad Alharbi

3
first private Islamic bank. In addition, some researchers also refer it as the first Islamic
bank.Islamic

Dubai Islamic bank also provided only the best world-class products and services that cover
all spectrum of real estate financing needs. It financing products including
istisna,murabaha,diminishing musharaka,ijara and many more.

2. EMIRATES NBD

Emirates NBD is one of the largest banking groups in the Middle East in terms of assets.
Emirates NBD, the leading banking group in region was formed on 16 October 2007 when the
shares of Emirates NBD were officially listed on the Dubai Financial Market(DFM). The
headquarters is at National Bank of Dubai building in Dubai. The Emirates NBD 2007 merger
between Emirates Bank International (EBI) and the National Bank of Dubai (NBD), became a
regional consolidation blueprint for the banking and finance sector as it combined the second and
fourth largest banks in the United Arab Emirates (UAE) to form a banking champion capable of
delivering enhanced value across corporate, retail, private, Islamic and investment banking
throughout the region. Emirates NBD’s vision is to be globally recognized as the most valued
financial services provider based in the Middle East. 5

3. MASHREQ BANK

Mashreq bank is the oldest privately owned bank in the United Arab Emirates. Mashreq bank
is founded as the Bank of Oman in 1967 under a decree of the Ruler of Dubai who is Shaikh
Rashid Bin Saeed Al Maktoum and the headquarters is at Al Ghurair Centre, Al Rigga St Deira
in Dubai. The bank has 45 domestic branches and 20 international brances. Mashreq bank was
the first UAE bank to install ATM cash dispensers, the first to issue debit and credit cards and
the first to introduce consumer loans.6

4. COMMERCIAL BANK DUBAI

CBD was founded in 1969, by an Amiri Decree issued by the late Rashid Bin Saeed Al
Maktoum. What started out as a joint venture of Commerzbank, Chase Manhattan Bank and

5
https://en.wikipedia.org/wiki/Emirates_NBD
6
https://en.wikipedia.org/wiki/Mashreq_(Bank)

4
Commercial Bank of Kuwait, evolved into a National Public shareholding company by 1982.
80% of its shares are held by UAE nationals, while the other 20% are owned by Investment
Corporation of Dubai (an investment division of the Dubai Government). 7

5. DUBAI BANK NOW KNOWN AS EMIRATES ISLAMIC BANK

Dubai Bank was an Islamic bank based in Dubai, UAE. It was founded in September 2002
and the Bank became a shariah compliant financial institution with a focus on the UAE’s Islamic
banking sector starting on 1 January 2007. Dubai Bank is part of the Dubai Group which is
a Dubai Holdings company. The headquarters is at Dubai and its product is banking and
insurance. On 29 November 2012 was the last day for Dubai Bank to work as Dubai Bank. On 1
December 2012 Dubai Bank ceases to exist and it name is now known as Emirates Islamic
Bank.8

6. NOOR BANK

Noor Bank (formerly Noor Islamic Bank) was established in January 2008, in Dubai
UAE.Noor Islamic Bank is one of the country’s fastest growing financial services brands. In all,
the bank now has around 700 employees working in 12 branches across the UAE including in the
corporate headquarters in Dubai’s Emaar Square and in the organization’s main data centre
operation in Emaar Business Park. 9Noor Bank has grown considerably, and now provides a
comprehensive range of products and services in consumer and corporate banking, wealth
management, insurance, treasury and trading.In addition, besides being supervised by Board of
Directors,Fatwa and Shariah Board, and a team of reputed scholars oversee.

7
https://en.wikipedia.org/wiki/Commercial_Bank_of_Dubai
8
https://en.wikipedia.org/wiki/Dubai_Bank#cite_note-1
9
Case study -Noor Islamic bank pdf

5
PRODUCT AND SERVICES

1. MURABAHA

Nowadays ,concept of Murabaha has been widely used until it become the most common
mode of Islamic financing among the Islamic banks all over the world.Originally,the word
Murabaha is derived from the Arabic word “Ribh” which means profit.Murabaha was a contract
of sale in which the commodity is sold on a cost plus profit basis 10.recently,it is considered as
shariah compliant since the price is considered to be mark up in exchange for allowing the buyer
to defer the payment112.The purpose of murabaha being accepted and most prevalent type of
Islamic finance is due to finance a purchase of item without involving any payment of interest
that can result to riba(usury),thus lead to haram and make the transaction become void at the
end.During the deal is made,the seller is obligated to tell the buyer his cost price including the
profit that he or she is making.

Basically,the murabaha mode of financing operate when the customer want to get a finance
from bank which is in this case is Dubai Islamic Bank in order to purchase a specific commodity
such as car,home furniture,electronic appliances and many more.Then,the customer and bank
will need to sign an agreement to enter into murabaha contract.According to agreement,the
customer had promise to buy the property from the bank with deferred payment basis.After
that,the bank will purchase the goods and gain ownership of that commodities.Because of
that,the bank will need to bear the full risk in case if there is any default occur towards the
commodities since from the time the goods are purchased till the time they are sold, the goods
are in the name of the seller which referred to the bank not the customer.Only after the customer
made an offer to purchase that property from the bank and agreed by the bank.Only then the sale
considered to be concluded and transfer of ownership occur.The bank will obtain a security or a
guarantee from the customer through the payment on installment basis as per the Murabaha
terms .

For an example,in Dubai,Al islami Car Finance from Dubai Islamic Bank is one of the banks
that practice the concept of murabaha especially in financing of car 3.12Basically,Al Islami Auto
10
Irfan, Harris (2015). Heaven's Bankers. Overlook Press. p. 135.
1111
https://en.wikipedia.org/wiki/Murabaha#cite_note-Irfan-2015-135-1
1212
http://www.dib.ae/corporate-banking/products-and-services/murabaha

6
Finance from Dubai Islamic Bank is an industry leader in vehicle financing in that country.It
provide financing of a vehicle either for personal or commercial need, single vehicle or fleet of
vehicles for a company or business including the passenger cars to buses ,heavy machinery and
trucks as well. It provide a variety range of financing plans and payment options available for the
customers to decide on in addition with ease facilities to access and availability of Al Islami
Auto Finance Staff.

2. ISTISNA’ (PRODUCT)

The Arabic word ‘istisna’ means ‘asking or requesting someone to manufacture or

construct’13. It may be further defined as a sale contract between the seller and the buyer for the
sale of an asset described in the sale contract and transacted before it comes into existence. To
fulfill this obligation, the seller can either manufacture or construct the asset by themselves or get
it manufactured or constructed by someone else to deliver it to the buyer on the date that is stated
in sale contract. The buyer can pay the sale price in lump sum on the spot or later as in
installments as the manufacturing or constructing process proceeds. In the financing context,
‘Isitsna’ is a sales contract whereby the Dubai Islamic Bank agrees to deliver a commodity or an
asset at a pre-determined future time with an agreed price from both parties. Istisna’ has been
widely used by Islamic banks and any financial institutions on order to finance the construction
of real estate related activity like buildings, warehouses, showrooms, shopping malls, residential
towers and villas, as well as manufacturing activity such as aircrafts, ships, machines and
equipment14. Dubai Islamic Bank has been using ‘istisna’ as its product and below are their terms
of financing:-

Terms of financing:

* Down payment: Minimum 25% of the total construction cost.

* Transaction period: Up to 10 years.
* Mode of payment: Quarterly, semi-annually or annual terms are available.
* Source of payments: Business cash flows, rentals.

13
Islamicbanker.com

14
http://www.dib.ae/corporate-banking/real-estate/istisna/services#tab-section

7
* Profit rate: Fixed throughout the financing period.
* Security: First class mortgage on the plot and the building, postdated cheques covering
installments.
* Insurance: Insurance policy covering the property under construction to be assigned to the
bank.
* Qualified assets: Residential, office buildings and villa
3. SUKUK
In Islam, fixed income or termed as interest bearing bonds are not permissible. However,
Sukuk is considered as securities that comply with the Islamic law. Based on the Wikipedia
sukuk refer to the Arabic name for financial certificates and also can be defines as the shariah
compliances bond.15 Its investment principles prohibit the charging, or paying of interest. As
Shari’ah considers money to be a measuring tool for value and not an asset in itself, it requires
that one should not receive income from money alone. This generation of money from money is
"Riba" or commonly known as interest, and it is forbidden. Hence, the implication for
Islamic financial institutions such as trading and selling of debts, receivables (for anything other
than par), conventional loan lending, and credit cards are not permissible.

Sukuk are structured in several different ways. While a conventional bond is a promise to
repay a loan, Sukuk constitute partial ownership in a debt (Sukuk Murabaha), asset (Sukuk Al
Ijara), project (Sukuk Al Istisna), business (Sukuk Al Musharaka), or investment .Sukuk had
being applied by most of the bank in Dubai. One of the banks is Dubai Islamic Bank. They are
the international leader in Sukuk management and covering assets from aircraft to property. 16
Other than that, Commercial Bank of Dubai also promotes their clients to make a buy and sell
fixed-income instruments in Sharia’a-compliant Sukuk and Bonds in the GCC, the region,
and around the globe. They attract their product by offering a very competitive rates and with
no processing fees. Their client may even experiences leverage and double their yields at low
rates, increasing their returns significantly. 17
4. Ijarah

15
https://en.wikipedia.org/wiki/Sukuk
16
http://www.dib.ae/corporate-banking/products-and-services/sukuk
17
https://www.cbd.ae/corporate/treasury-services/bonds-and-sukuk

8
 Ijarah is a contract which involves providing products and services on a lease and rental
basis. It is an exchange transaction in which a benefit can be achieve from a specified asset is
made available in return for a payment, but the ownership of the asset itself is not transferred to
another parties. This contract is similar as an installment leasing agreement. The fixed assets are
the subject of the lease that can be return to the lessor at the end of the lease period, in which
case the lease takes on the features of an operating lease and thus only a part amortization of the
leased asset’s value results. However, the lessee can agree to buy the asset at the end of the lease
period in which case the lease takes on the nature of a hire purchase. That is known as ijara wa
iqtina that means lease and ownership. Some jurists do not agree with this agreement because it
represents more or less a guaranteed financial return to the lessor as the same way as a modern
interest-based finance lease. So example of ijarah contract can be seen in vehicle financing. Al-
Ijarah Thumma Al-Bay (AITAB) in vehicle financing cannot be constructed to imply that it is a
combination of two different contracts that are it is not ijarah contract with a condition to sell
rather than it is a contract of ijarah contract with a promise (wa’ad) to sell. Two different
contracts are being executed at two different stages. Firstly, is executing the contract of leasing
(ijarah) with a promise to sell. Secondly is once the product of lease expires and lessee has made
all payments, the lessor is obliged to fulfill his promise to sell by executing the contract of sale
(bay’). Thus, in ijarah contract, the shariah stipulates that, the lessor must bear the risks and
liabilities of ownership of the leased asset. Such risks are mitigated by the vehicle takaful. 18

There are agreed conditions for ijarah contract that are the leased item should be transferred
to the lessee on completion of the lease agreement and should be of a condition that is fit for
performance of the required tasks. The lessor should transfer the leased items to the lessee in
their completed form based on the contract. Secondly, the usufruct of the leased item should
have value. The amount and timing of the lease payments should be agreed in advance and stated
in the contract. Next, the lease payment schedule becomes active upon complete acquisition of
the usufruct of the leased goods. Thus the period of the lease must be specified by the lessor and
the conditions of usage of the leased items must be stated. Thus, the lessor must have full
possession and legal ownership of the asset prior to leasing it. Moreover, the leased asset must
continue to exist throughout the term of the lease. Items which are consumed in the process of
usage, ammunition for instance, cannot be leased. Lastly, the lessor may claim compensation for
18
http://www.islamic-finance.com/aboutus_f.htm

9
any damage caused to the leased assets as a result of negligence on the part of the lessee.So the
example of the bank in Dubai that use the ijarah contract :

1. Dubai Islamic Bank used this contract in vehicle financing in which it easy and
convenient way to get fund to buy a car. DIB presenting Auto Ijarah that is a convenient
way to avail finance.19
5. MUSHARAKAH

Musharakah is a word from Arabic literally means sharing. In the perspective of business, it
can be defined as joint venture or partnership under a contract by the mutual consent of the
parties for sharing of profits and losses. The Mejella 20 (1329) define it as an “Agreement for
association on the condition that the capital and its benefit be common between two or more
persons”. Meanwhile, Ibn Arfa (1984) defined it as: “An agreement between two or more
persons to carry out a particular business with the view of sharing profits by joint investment”.
Another Muslim jurist, Mohammad Akram Khan (1990) defines a musharakah or partnership as:
“A contract between two persons who launch a business of financial enterprise to make profit”.
Islamic jurist point out that the legality and permissibility of musharakah is based on the
injuction of holy Quran, Sunnah and ijma’ (consensus) of the scholars. Allah mentioned in al-
Quran, “…but if more than two, they share in a third...”21

There are some shariah principles and guidelines in practicing musharakah contract.
Firstly, distribution of profit and loss must be agreed in advance, whereby profits are shared in
pre-agreed ratio and losses should be borne in proportion to equity participation. Next, capital
must be contributed by all partners. Thirdly, musharakah venture may be managed by all partners
or certain partners only which each partner has a right but not obligation to involve in the
management. Interest basically is a fixed rate return on a loan pay by creditor to debtor. Since
islam prohibited interest or riba, the practicing of musharakah is Islamic shariah because it
fantasize no fixed rate return but the return in Musharakah is based on the actual profit earned by
the joint venture.

6. MUSHARAKAH MUTANAQISAH
19
http://www.dib.ae/personal-banking/finance/al-islami-auto-finance/al-islami-auto-ijarah/overview/?hp
20
The Mejelle is the civil code of the Ottoman Empire in the late 19th and early 20th centuries. It was the first
attempt to codify a part of the Sharia-based law of an Islamic state
21
Surah an-nisa verse 12

10
 On the other hand, musharakah mutanaqisah means diminishing partnership. It is a joint
partnership contract between the financial institution and its client and usually being used in
home financing. The client will buy the share from the financial institution and promise to pay
and at the same time banks purchase the property needs and give to the client after client finish
paid. Musharakah mutanaqisah consists of three contracts which are musharakah, ijarah. Wa’ad
as well as bay’.

Example bank has the products of musharakah

Mashreq Bank

 High finance amounts up to AED 15 Million

 Facility tenor of up to 25 years

 Attractive profit rates

 Nominal processing fees and charges

 Extended to both salaried and self employed

 Pre-approval facility to identify finance eligibility

 Available for Ready Properties

 Based on the concept of Ijara (lease based financing)

7. MUDARABAH

Mudarabah occurs between two parties which is the Rabbul Mal and Mudharib. The Rabbul
Mal is the person who will provide the capital to another person otherwise known as the
Mudharib, who will use it to invest on a trade or business. Both parties will share the profit that
is earned based on a pre-agreed ratio. The Rabbul Mal will bear the financial losses that the
company will face, while the Mudharib will have to lose the value of time and effort that has
been dedicated to the company. In spite of that, the Mudharib will have to take responsibility of
the financial loses if it is caused by their negligence. The types of Mudarabah include unlimited
(Mudarabah Mutlaqah) and limited(Mudarabah Muqayyadah) mandate.

11
 Dubai Islamic Bank (DIB) is one of the financial institutions in Dubai that uses this method
of financing. In the year 2010, DIB had won the Islamic Finance News ‘Mudarabah Deal of the
Year’ award. The reason that contributed to their win was their Mudarabah capital had merged
with their existing assets which had involved detailed structuring in order for it to be fully
Shariah compliant of the Mudarabah assets throughout the transaction. The common Mudarabah
that DIB uses is general investment account also known as Mudarabah Mutlaqah where the bank
invests in a new or existing company where both parties agree with the profit that the bank will
receive. 22

DIB was praised for arranging a Mudarabah contract with ENOC Supply and Trading LLC
(ESTL), which is a renowned oil company where the bank had financed it with 1.1 billion
dirham.

Products structured Products/services Financial Institution

Murabahah 1. Auto finance 1. Dubai Islamic Bank
22
http://www.dubaicityguide.com/site/news/news-details.asp?newsid=33326&newstype=Company%20News

12
 2. Home finance 2. Emirates Islamic Bank
3. Electronic 3. Noor Bank
appliances 4. Mashreq Bank
4. Land and building 5. Emirates NBD
6. Commercial Bank Dubai
Sukuk 1. Asset 1. Dubai Islamic Bank
2. Project 2. Emirates Islamic Bank
3. Business 3. Noor Bank
4. Investment 4. Mashreq Bank
5. Emirates NBD
6. Commercial Bank Dubai
Istisna’ 1. Building 1. Dubai Islamic Bank
2. Aircraft
3. Machines
4. Equipments
5. Ships
Ijarah 1. Vehicle financing 1. Dubai Islamic Bank
2. Home financing 2. Emirates Islamic Bank
3. Noor Bank
4. Mashreq Bank
5. Emirates NBD

Musharakah 1. Home financing 1. Dubai Islamic Bank

2. Mashreq Bank
Mudarabah 1. Investment 1. Dubai Islamic Bank
2. Emirates NBD

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PRIVATE AND GOVERNMENT FUNDED BANKS.

PRIVATELY FUNDED

 Mashreq bank.

Mashreq bank has been providing banking and financial services since 1967 and also
being one of UAE's leading financial institutions with a growing retail presence in the
region including Egypt, Qatar, Kuwait and Bahrain.

 Commercial bank of Dubai (CBD).

Commercial Bank of Dubai (CBD) was established in 1969 by an Emiri Decree issued by
His Highness, the late Sheikh Rashid bin Saeed Al Maktoum. The bank started out as a
joint venture between Commerzbank, Chase Manhattan Bank, and the Commercial Bank
of Kuwait, with a minority stake held by a few UAE businessmen. In 1982, CBD reached
a major milestone when it transformed into a national shareholding company, with a
network of 26 branches and over 210 ATMs throughout the UAE.

 Emirates Islamic Bank formerly known as Dubai Bank.

Dubai Bank was an Islamic bank based in Dubai, UAE. Launched in September 2002, the
Bank became a Shari’a compliant financial institution with a focus on the UAE’s Islamic
banking sector on 1 January 2007. Dubai Bank is part of the Dubai Group, a Dubai
Holdings company.

GOVERNMENT FUNDED

 Dubai Islamic Bank.

Dubai Islamic Bank is an Islamic bank in Dubai, established in 1975. It 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.

14
  Emirates National Bank Dubai (ENBD).

The Emirates NBD 2007 merger Emirates Bank international (EBI) and the National
Bank of Dubai (NBD), became a regional consolidation blueprint for the banking and
finance sector as it combines the second and fourth largest banks in the United Arab
Emirates (UAE).

 Noor bank.

Noor bank was launched in 2008 under the specific instruction of the Government of
Dubai, with the shareholders and the Board of Directors also selected and nominated
directly by the Government of Dubai. The Government of Dubai, members of the Ruling
Family of Dubai and a select group of Government of Dubai nominated shareholders
directly own 87.80% of the Bank’s shares in aggregate.

CURRENT ACHIEVEMENTS OF THE BANKS.

Dubai Islamic Bank.

 December 04, 2016 - DIB Named UAE’s Strongest Islamic Retail Bank At Islamic
Retail Banking Awards 201623

Dubai Islamic Bank, the UAE’s largest shariah compliant bank, was named the ‘Strongest
Islamic Retail Bank’ in the UAE at the recently held Islamic Retail Banking Awards (IRBA).

 November 27, 2016 - Dubai Islamic Bank Shines at the Islamic Business and Finance
Awards24

Dubai Islamic Bank (DIB), the largest Islamic Bank in the UAE, received four major accolades
at the 11th Islamic Business and Finance Awards 2016.

 Nov 2016 - Islamic Business & Finance Awards Best Sukuk Arranger.
 Aug 2016 - Global Finance - The World’s Best Islamic Financial Institutions 2016 Best
Islamic Trade Finance Provider for 2016.
 May 2016 - BME Industry Awards 2016 Best Sukuk Arranger.
23
http://www.dib.ae/en/mediacenter/newsroom/newsdetails?ID=802b513d-b7e4-40d5-9cbe-64514323cc0a
24
http://www.dib.ae/en/mediacenter/newsroom/newsdetails?ID=0afc9e91-4386-42da-98ef-fc11e5caff13

15
  Jan 2016 - 2016 Islamic Finance News Polls Mudarabah Deal of the Year.

Noor Bank.

 July 2016.- Nasdaq New York Congratulates Noor Bank on its Tier 1 Sukuk Issuance

The Sukuk is Noor Bank’s debut perpetual Tier 1 capital issuance and is the first perpetual Tier 1
issuance from the UAE in 2016. The issuance received strong investor interest, with an order
book in excess of US$1.2 billion, from across the Middle East, Asia and Europe.

Commercial Bank Dubai.

 2016. - Best SME loan

Emirates National Bank Dubai.

 November, 2016. - Banking and Finance Company of the Year, Best Bank in the Middle
East, Best Bank in the UAE, Best Digital Bank in the Middle East, Bank of the Year –
Middle East 2015.

Emirates Islamic Bank formerly known as Dubai Bank.

 2015 - Nasdaq dubai murabaha platform wins euromoney award for innovation in
islamic finance.

Emirates Islamic and Nasdaq Dubai have announced that the Nasdaq Dubai Murabaha
platform has won the prestigious Euromoney Award for Innovation in Islamic Finance 2015.
The Nasdaq Dubai Murabaha platform is a visionary initiative by Nasdaq Dubai and
Emirates Islamic (EI) and its subsidiary Emirates Islamic Financial Brokerage (EIFB). The
Euromoney Islamic finance awards are widely regarded as benchmark awards for the global
Islamic finance industry. The awards are judged on innovation, quantity and quality, cross
border, and promoting the growth of the industry. Nominees are selected and judged by an
expert in-house panel comprising Euromoney's Editor, journalists covering the region and
the head of the awards research department.

16
CONCLUSION

In the light of Allah’s commands, it is obligatory on us try to find and adopt the right
banking system, one that follows the principles set by the Creator. Those who learn to
differentiate between what has been allowed and what has been forbidden will be the ones with a
clear conscience when they assemble in front of the Creator on the Day of Judgment.

Islamic Finance attempts to create a fair economic system. It works on the principle of
profit and loss sharing. Therefore, we had choosed Dubai as our research country to see how they
manage to use the Islamic finance concept. We had list out six major bank in Dubai such as
Commercial Bank of Dubai, Dubai Islamic Bank, Emirates NDB, Mashreq Bank and Noor Bank
in Dubai.

Islamic banks enter into trade and investment to earn Halal profit as they neither take
deposits/funds on interest nor do they advance loans on interest. They have to purchase and sell
assets in order to make profit from the higher sale prices or enter into investment arena. Based on
our research, we can conclude that those banks commonly used sale such as Murabaha, Istisna’,
sale on deferred payment basis while Ijarah is the sale of the usufruct of an asset owned by the
bank. For investment, the Islamic banks have Mudaraba, Musharaka and Sukuk structures. In the
nutshell, we can clearly see that most of the bank in Dubai fulfill the basic conditions of these
contracts to be considered Shari’a compliant.

17
Gantt Chart

Title: Development of Islamic Banking and Finance in Dubai

PLAN ACTUAL DELAY

Week 6 Week 7 Week 8 Week 9 Week10 Week 11 Week 12 Week 13 Week 14

10 Oct - 17 Oct – 31 Oct – 7 Nov – 14 Nov – 21 Nov – 28 Nov- 5 Dec – 12 Dec –
14 Oct 21Oct 4 Nov 11 Nov 18Nov 25 Nov 2 Dec 9Dec 16 Dec
Briefing and discussion on
1 the topic to get more
understanding
Starting to search on the
2 information generally and
read the chapter 3
Sharing the information and
3 make sure each member has
the understanding
Discussion on what should
have in the report and divide
4
part of report to each of the
member
Look on details information
5 on each part and prepare the
report
Present each other part to
make sure others also
6
understand and to get others
opinion on each part
Give each other point for
7 preparing the presentation
slides
Check the slides to make sure
8 everything are correct and
practice for the presentation

9 Compilation of the report

1
Submit the report
0

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BIBLIOGRAPHY

1. Shigeru Thomas Otsubo (2015) Globalization and Development Volume III: In search of
a new development paradigm. (VOL 3) Routledge
2. Noraziah Che Arshad & Abdul Ghafar Ismail (2010) Shariah parameters for Musharakah
Contract: A comment, International Journal of Business and Social Science Sheikh Omar
Sharif.
3. The Study of Islamic Banking with Special Reference to Dubai Islamic Bank. 2011, p xi
4. Journal of Islamic Banking and Finance, Vol. 3(1), June 2015 ,No. 1, pp. 12-25-
Development of the Dubai bank Islamic Banking System by Ahmad Alharbi
5. Case study- Noor Islamic bank pdf
6. Irfan, Harris (2015). Heaven's Bankers. Overlook Press. p. 135.
7. The Mejelle is the civil code of the Ottoman Empire in the late 19th and early 20th
centuries. It was the first attempt to codify a part of the Sharia-based law of an Islamic
state

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