Dubai Bank is planning to buy a lender in a Gulf Arab country during the next 12 months, Middle East Economic Digest (MEED) reported in its latest issue.

The bank, which is 30 per cent owned by Emaar Properties, will decide whether to purchase another Islamic lender or a conventional bank that could be converted to comply with Shariah, or Islamic law, which bans the receipt of interest as usury, the weekly said, citing Dubai Bank’s chief financial officer.

”It depends on the opportunity, as to whether we buy a conventional bank and convert it,” MEED quoted Ahmed el-Shall as saying.

Several Gulf Arab lenders have said they are planning acquisitions to gain the scale they need to meet growing demand for lending, spurred by economic growth from a near tripling of oil prices since 2002.

Islamic bonds: Meanwhile, Dubai Aerospace Enterprise Limited (DAE) plans to sell Islamic bonds for the first time to finance expansion, MEED reported.
Michael Killian, DAE’s executive vice-president and treasurer, said the bonds may be sold before the end of the year, MEED reported, without giving more details. Killian was not immediately available for comment yesterday.