Dubai-based Emirates Islamic Bank (EIB) and Bahrain-based Albaraka Banking Group (ABC) have signed a memorandum of understanding (MoU) to strengthen their relationship and raise the profile of Islamic products.

The two banks say they are to work with each other on a non-exclusive basis in several areas, including letters of credit (L/Cs), with the aim of providing more integrated Islamic financial services.

Service scope

Areas in which the banks plan to cooperate include their general areas of business, including exchanging deposits in different currencies, organising the investment of surplus liquidity, clearing funds, underwriting, drafts, payments against L/Cs and the provision of guarantees.

Both banks will also work in tandem to extend lines of credit, arrange foreign transfers and provide support for the securities market.

Aims

"We intend to work together towards increasing the awareness of the Islamic world's financial products and distribution of these products," says EIB's CEO, Ebrahim Fayez Al Shamsi.

According to ABC's CEO, Adnan Ahmed Yousif, the MoU was signed in accordance with the Sharia laws that govern Islamic financial services. "Both banks will operate on general and specific areas of banking that will benefit both parties and provide customers with better and more integrated Islamic financial services," he said.

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