Deutsche Bank and Dubai Islamic Bank (DIB) have announced the signing of a memorandum of understanding (MoU) that will allow the UAE-based bank to leverage the German bank's experience in writing letter of credit (L/C) business.

The MoU also enables DIB to utilise the German bank's euro cross-border payment clearing solutions and its European trade expertise to facilitate L/C business with Europe.

Broadening relationship

This is a broadening of an existing relationship with Deutsche Bank to include payments and trade in which DIB aims to benefit from the German bank's strength as the world's largest euro clearer and as a leading trade services provider.

DIB is a pioneer of Islamic banking. Established in 1975, it is the largest Islamic bank in the UAE with ambitions to compete with many of the world's largest financial institutions.

L/C experience

Head of global transaction banking Europe, Middle East and Africa at Deutsche Bank, Stefan Bender, said the bank supports, " DIB's efforts to maximize and extend their payments reach and trade finance capabilities for their client franchise."

"DIB will be able to leverage our leading Euro clearing position and our depth of experience in L/Cs to enhance its offering into Europe," he added.

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