Abu Dhabi Islamic Bank (ADIB) is to raise its local profile with the opening of new branches, the launch of new products and the establishment of two subsidiaries.

ADIB, the third most valuable listed Islamic bank in the Gulf, is to expand its operations within the UAE with the establishment of new branches in Dubai and Sharjah, says Majdi al-Mahdi, the bank's product manager. ADIB began full operations from its first Abu Dhabi branch last November. Its second branch was opened in Al-Ain on 7 July. 'We expect to have a presence in Dubai by the end of September, and a second Abu Dhabi branch is also planned to open at around the same time,' says Al-Mahdi. 'When these two branches are operational, preparations for the establishment of a branch in Sharjah will begin.'

As well as local expansion, ADIB is also preparing to set up two subsidiaries, both joint ventures with Dubai Islamic Bank (DIB). It is understood that one is to be an insurance company and the other a finance firm. 'The basic groundwork has been completed, but the final details are yet to be arranged,' says Al-Mahdi. 'No clear timeframe for the launching of the subsidiaries, or the size of their paid-in capital, has been decided upon.'

The launch of a new portfolio of funds is planned by the bank and it is understood that at least two - possibly real estate or lease-financing vehicles - are expected before the end of the year. The new funds are part of the programme to improve the bank's product range and market share.