Dubai Islamic Bank (DIB) announced today the launch of its 4-year Principal Protected Water Note, which offers participation in a basket of 10 stocks linked to the water industry, including activities such as purification, desalination and waste management. The Sharia-compliant note, structured in partnership with ABN AMRO, requires a minimum investment of US$10,000 and offers capital protection upon maturity.
The note offers a minimum guaranteed annual return of two per cent and maximum potential annual return of 11 per cent. The Fatwa and Sharia Supervisory Board of DIB will oversee Sharia compliance.
DIB’s 4-year Principal Protected Water Note, the first of its kind in the region, reinforces the bank’s commitment to socially responsible investment (SRI), which combines the intention to maximise both financial return and social good. In the United States alone, SRI currently accounts for more than US$2 trillion in assets.
Saeed Al Qatami, Head of Wealth Management, DIB, said: “On the heels of the launch of the bank’s 4-year Capital Protected Global Real Estate Income Trust (REIT) Note, the launch of the DIB Water Note signals the bank’s ongoing commitment to innovation and excellence. Indeed, DIB is determined to provide balanced wealth management solutions across asset classes, allowing our clients to achieve strong returns with a diversified portfolio that is balanced across sectors and geographies.”
He added: “Today more than ever, and nowhere more so than here in the Middle East, investing in the water industry is vital to our shared future. Consider that just 2.7 per cent of the water on earth is fresh water – and more than two-thirds of that is locked away in glaciers and polar ice caps. By investing in DIB’s Water Note, investors not only gain the opportunity to participate in a high-growth industry, they also demonstrate their personal dedication to preserving the environment.”
Naveed Ahmad, Head of Investments - Wealth Management, DIB, said: “The bank continues to work extremely hard to develop a solid infrastructure for its Retail Investment platform and offer our clients a wide range of innovative investment options. DIB’s Water Note is another unique opportunity for regional investors to realise strong returns while also benefiting from the peace of mind that comes with principal protection. All of us at DIB are extremely pleased to be able to provide this investment opportunity to our clients.”