DUBAI - Dubai Bank said on Monday it had tripled its capital to 1.5 billion dirhams ($408.6 million) to finance growth, by raising money from shareholders Dubai Holding and Emaar Properties EMAR.DU.
Dubai Bank, which converted into an Islamic lender earlier this year, said in a statement that the capital increase had been agreed by shareholders in the final quarter of 2006.
‘It is crucial for the bank’s growth,’ Chairman Mohammed Al Shaibani said in a statement, adding that part of the money would go to expanding the branch network and offering financial products compliant with Islamic rules.
The Gulf News daily quoted Dubai Bank’s chief executive as saying last month that the lender planned to list its shares on the Dubai stock exchange this year.
The bank, which is 70 percent-owned by government investment arm Dubai Holding and 30 percent-owned by Emaar, made a net profit of 105 million dirhams in 2006, an increase of 35 percent on the previous year.