Dubai Islamic Bank inks deal with UAE ministry

An agreement has been signed between Dubai Islamic Bank and the UAE's ministry of finance to grant the lender capital to provide Shari'ah-compliant products, Reuters has reported. DIB has obtained a 'wakala capital', an agency structure where a depositor authorises an agent to invest his funds in Shari'ah-approved assets. If the lender breaches the wakala terms and conditions, the ministry has the right 'to convert all or part of the outstanding wakala capital... which would result in a capital increase of the bank', DIB said in a statement.