DBS Bank, Middle East partners to open Islamic bank in Singapore

dpa German Press Agency Published: Friday March 30, 2007

Singapore- DBS Bank and its Middle East partners will soon
open Singapore's first Islamic bank selling only shariah-compliant
products, DBS said on Saturday.
DBS, Southeast Asia's largest bank, will be the majority
shareholder in the joint venture, which will also have "prominent
investors from the Gulf Cooperation Council countries," its statement
said.

These include six Arab states, including Bahrain, Saudi Arabia
and Kuwait.

DBS has engaged four leading Islamic finance scholars to advise
it. Shariah law prohibits banks from charging interest on money and
investing in companies associated with gambling, tobacco or alcohol.

Other financial players such as Malaysia's Mayback offer Islamic
products alongside conventional ones.

Chief executive Jackson Tai said there are great opportunities for
DBS to grow its Islamic corporate banking services in Asia, the
Middle East and elsewhere, The Straits Times said. He acknowledged
the local market for retail banking products is limited.

DBS wants to play a "lead role in intermediating capital flows
between Asian issuers and Gulf investors," he was quoted as saying.

Its first foray into Islamic finance came last year. DBS was
granted a licence to operate at the Dubai International Financial
Centre and has opened a branch there.

The Monetary Authority of Singapore is prepared to grant a new
bank licence to a DBS joint venture to set up the bank, DBS said.

It will initially offer services for corporate, capital market and
private banking clients.

© 2006 - dpa German Press Agency

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