PRACTICAL ORGANISATION

STUDY

OF

THE

DUBAI ISLAMIC BANK PAKISTAN LIMITED

About DIBPL
Thirty years ago, Dubai Islamic Bank ('DIB') created history by becoming the world's first Islamic Bank. Today, Islamic banking has become one of the fastest growing economic sectors with over 300 financial institutions, with assets estimated at over US $300 billion providing Islamic financial services.

Despite huge growth in the sector DIB continues to be the industry pioneer and undisputed market leader to date. Since its inception, DIB has evolved from a retail bank to a fully fledged bank catering to almost all the requirements of its customers in providing Shariacompliant solutions to major local and international companies. It has constantly upgraded its services to private individuals, who remain a highly valuable element of DIB's customer base. By combining the best traditional Islamic values with high-standard technology and innovation, DIB is committed to not only fully comply with the principles of Sharia in all its financial dealings but to also facilitate its customers who venture into the world of Islamic banking in

such a befitting way that they would feel reaping the best rewards of both the worlds. For its outstanding performance and contribution to Islamic financing, DIB received the Best Islamic Bank in the Middle East Award (2006) by both Euromoney's Islamic Finance Weekly and Gulf Wealth Forum. DIB has also been awarded the Bank of the year (UAE) at the 2006 Banker Awards. DIB has not only been at the forefront of innovation but has excelled every step of he way. With the launch of Al Islami Internet Banking, DIB has re-affirmed its commitment to promote and develop Islamic banking in line with the requirements of the modern age. For these efforts, DIB received the Golden Trophy at the UAE Web Awards in 2006. DIB is also the first to offer a mobile SMS messaging service in both Arabic and English. Moreover, DIB became the first bank in the Middle East to introduce Internet Protocol (IP) for its Visa card operations. With path-breaking vision and bold strategies, DIB aims to enhance its status as a world leader committed to the goal of providing "World Class Banking." a)Sukuk Powerhouse of the World Sukuk is a hallmark of DIBs product innovation capabilities. The development of Sukuk (Islamic bonds) has earned DIB several awards including Banker Middle East Industry Award for Best Bank and Best Product Innovation (2006). DIB is honoured to have successfully led to manage the world's first airline Sukuk for the Emirates Group. This seven year Sukuk Al Mushtaraka valued at US $550 managed to attract investors participation from Europe and the Far East.

Based on its outstanding performance DIB has been awarded the largest Sukuk issue in the history of Islamic Banking world over for general funding and expansion needs of Dubai and Jebel Ali Ports. The US $2.8 billion issue is being lead-managed by DIB and is part of a large financing package being arranged at a time when the ports' operator is bidding to become one of the world's largest. The 2-year bullet tenor Sukuk is also the first convertible Sukuk ever to be issued. The credit rating assigned to DIB by Standard and Poor's is 'A' longterm and 'A1' short-term for the year 2006. The DIB has also been assigned an A1/Prime 1 ranking by Moody's. The DIB aims to maintain the same high standards set for product development in the coming years. b)Ensuring Sharia Compliance To adhere to traditional Islamic values and ethics, the DIB relies on the expertise of scholars of high repute with extensive experience in law, economics and banking systems. The members of DIB's Fatwa & Sharia Supervision Board specialize in law and finance as prescribed by Islamic code. The Board is appointed by the DIB's General Assembly and ranks above the Board of Directors. The DIB's board supervises the development and creation of innovative Sharia-compliant investment and financing products and services to ensure that all the transactions are free from riba (interest) and all other Sharia repugnancies. Thorough professionalism and a stringent compliance to rules have made DIB the pioneering organization to practice Islamic finance in its true letter and spirit.

DIB also contributes to Islamic Banking and Finance seminars, conferences, exhibitions, workshops and studies such as those on Islamic Retail Banking to disseminate information and educate the masses on Islamic banking. c)More Than a Bank DIB takes pride in its efforts to expand the scope of Islamic funding by focusing on financing capital intensive sectors such as power, airlines, transportation, telecommunication, and real estate through common Ijara (leasing) facilities at both the local and regional levels. DIB has been financing landmark properties across the UAE such as the Jumeirah Beach Residence and the Dubai International Airport.

Dubai Islamic Bank Pakistan Limited

The State Bank of Pakistan (SBP) awarded to Dubai Islamic Bank Pakistan Limited(DIBPL), the license for the establishment of its operations in Pakistan on Saturday, November 26, 2005. Since then, DIBPL has undertaken major initiatives to expand its branch network across the country. Under its consumer banking division, the bank is offering state-of-the-art Sharia compliant products that effectively compete with those being offered in the market by conventional banks. This is not the Banks only strength though. It also has expertise in providing Retail, Private, Small and Medium Enterprises, Corporate, Investment Banking and Advisory services. The Bank has launched Pakistan's first Islamic Visa Debit Card and introduced Financing, financial and products covering Depository Home Financing, products. Auto

DIBPL has also introduced Priority Banking and Internet Banking, both of which are being recognized as benchmark products in their

respective categories. Besides regular banking services, the Bank is committed to bringing foreign investment to the country. DIBPL's corporate wing has actively pursued foreign investors and convinced world renowned giants from the GCC to be part of Pakistan's economy. DIBPL is a Public Limited company. Its total worth is Rs. 5.1 billion which will gradually increase to Rs. 6 billion. DIBPL is 100% owned by Dubai Islamic Bank PJSC (Public Joint Stock Company) and its nominated shareholders. The parent company is a listed company in

Dubai

VISION
Dubai Islamic Bank Pakistan Limited('DIBPL') will be the leading provider of world class banking the Islamic way by being the first choice of our customers and our employees.

Mission
Innovation., Talent., Technology.

Values
Trust Listening Innovation

Social Responsibility Fun

CONSUMER FINANCING
Looking to buy your dream home? Want to continue your studies? Thinking its time to buy a car? Whatever your wish may be, the Bank want to help you make it come true. There are finance packages designed to meet your needs and with their Internet Banking service, you can manage your finances with a click of your mouse!

CONSUMER FINANCE > HOME FINANCE

Dubai Islamic Home Finance is the key to your dream home and we are eager to put this key in your hands. Using the Musharaka cum Ijara model, the Bank enters into a partnership with you and helps you in fulfilling your dream of owning a home quickly, conveniently and in a fully Shariah compliant manner. Whether you want to buy, renovate or simply transform your present home finance of any other bank, DIBPLs would be the best Shariah compliant alternative. Currently Dubai Islamic Home Finance is offering three product variants:

Home Purchase. Purchase of undivided share (Home Renovation). Purchase of undivided share of property at other bank (Balance Transfer).

CONSUMER FINANCE > AUTO FINANCE

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It's time you drove your car with pleasure and peace of mind! Dubai Islamic Auto Finance offers a world class auto finance facility that enables you to get a car quickly, conveniently and in a fully Sharia compliant manner. Using Musharaka cum Ijara model to finance your car, steer yourself towards peace of mind and fulfillment of your desire.

PERSONAL FINANCE NOE FOR THE FIRST TIME IN PAKISTAN

The Islamic way! The bridge between dream and reality is Dubai Islamic Personal Finance. Dubai Islamic Bank Personal Finance is the first Islamic Personal Finance being offered in Pakistan. DIBPL Personal Finance will soon be the answer to all your problems and means to personal bliss! With our unique Personal Finance facility you will have the power to enjoy all imaginable products and services at your disposal in a truly Shariah complaint manner.

Present Situation
At present consumer financing schemes offered by different banks mostly cover large cities or urban areas. Most of the clients are corporate employees, professionals and high-worth individuals. With the active promotion by the co-branding partners and extension of schemes of rural areas the market size is expected to grow.

Problems In consumer financing

The two key problems faced in consumer financing are authentication of client profile and repossession of assets in case of default. To
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overcome these problems, financing companies demand post-dated cheques for all the installments. The strategy has been yielding positive results, higher recovery rate. However, repossession of assets remains a problem.

Conclusion and Recommendations

There is a need to further reduce the mark up rates being charged. It is believed that with the growth of market size and better arrangement with manufacturers and vendors efforts will be made to reduce the mark up rates. The size of market can only grow if more and more people go for this option with a commitment to make timely payment and avoid default.