Dubai Islamic Bank (DIB), which holds the position of being the largest Shariah-compliant bank in terms of assets, increased its stake in Turkey’s T.O.M. Group of Companies from 20% to 25%. This follows after DIB had exercised its option to buy more shares in T.O.M. under the terms of the original acquisition deal, completed last September 2023.

Such a move gives proof of the confidence that DIB has regarding the Turkish market and strategic perspective in establishing a stronger footing at the front line of the global players. The T.O.M. Group of Companies is one of the leading organizations in Turkey in the financial services area; it has quite a few subsidiaries.

dubai islamic bank

PC: Gulf News

This conglomerate includes T.O.M. Katılım Bankası A.Ş., which is said to be the first licensed digital retail bank in Türkiye, allegedly a significant milestone in Turkey’s financial innovation. Another entity within the group is T.O.M. Pay Elektronik Para ve Ödeme Hizmetleri A.Ş., a licensed e-money company, and T.O.M. Finansman A.Ş., which specializes in digital products financing. Together with their subsidiaries, they form a fast-growing fintech ecosystem in Turkey in line with global trends in the banking and financial services sectors towards digitization. 

DIB is the fourth-largest bank in the UAE today and is a key institution in the UAE banking sector, supported by the Dubai government through the Investment Corporation of Dubai, which owns a 28% stake in it. That strong support reinforces DIB’s robust financial status and enhances its agility in leveraging growth opportunities, both within the UAE and in the wider international markets.

The financial successes of the bank are its strategic victories. In the third quarter to September 30, 2022, DIB delivered a year-to-date profit of AED 5.45 billion, marking a 13% increase versus last year. The healthy growth trajectory points towards the successful management strategies of the bank and their ability to respond to a more volatile market condition in a manner where profitability is preserved.

DIB’s expansion strategy in Turkey represents a larger play to diversify the portfolio and capitalize on high-growth markets. In addition to Turkey, the bank has significant operations in other markets of global significance, including Indonesia, Pakistan, Sudan, Bosnia, and Kenya. These markets have been deliberately chosen so as to adhere to the Shariah-compliant principle of the bank and its vision toward making Islamic finance a global phenomenon.

The move to hike its shareholding in the T.O.M. Group provides DIB with an opportunity and institutional will to drive innovative banking models and Islamic finance. The increasing fintech landscape within Turkey, coupled with its unique location as a gateway to Asia and Europe, opens vast opportunities. DIB has strengthened its stake in the T.O.M. Group, which will position it as a driving force in the growth of Turkey’s digital financial ecosystem, which is expected to develop rapidly in the coming years.

This step is, therefore, consistent with DIB’s overall aim of becoming one of the largest Islamic finance centers globally by venturing into various innovative solutions as well as penetration into some key international markets. Strongly boosted by its financial muscles and with the government blessing, DIB remains to place its footstep firmly as an institution that Islamic banking should rely upon in terms of trust and advancement.