Dubai Islamic Bank Pakistan (DIBP), a wholly owned subsidiary of Dubai Islamic Bank PJSC (DIB), saw total assets under management reach Rs21 billion in value, growing more than 152 per cent in the 2007 calendar year. The bank’s enormous expansion makes it one of the fastest growing banks in Pakistan.

Explaining DIBP’s achievements more fully, Abdul Monem Bastaki, Head of the International Division of DIB, stated: “Pakistan’s operations recorded growth of 152 per cent in its total asset base, which stands at PKR21 billion as of December 2007, and growth of 273 per cent in deposits to Rs16.1 billion. A network of 17 branches covering all the major cities of Pakistan now exists as well.”

As part of its international strategy to promote world-class Islamic banking and to leverage the DIB brand name globally to enhance shareholder value, DIB selected Pakistan as one of its key destinations for expansion in fiscal year 2005, primarily driven by Pakistan’s strong growth potential for Islamic banking.

Islamic banking remains one of the fastest growing segments in the banking industry. The size of Islamic banking grew by 11.7 per cent during the last fiscal quarter against a contraction of 1.4 per cent for the global banking industry as a whole.The share of Islamic banking has increased to 3.6 per cent in the same period, up from 3.2 per cent in the previous quarter.

Bastaki said: “We feel that it is a good time for DIB to divest a portion of its shareholding in DIBP either through listing or private placement to maximize shareholder value. We are currently evaluating different options in this regard, keeping in view the State Bank of Pakistan’s regulations and our own licensing requirements.”

The banking sector in particular has witnessed stellar performance on the Karachi Stock Exchange 100 Index, with current trading range of price to book value multiples of two to four times