Dubai Financial Market (DFM), the local exchange in the emirate of Dubai, topped the exchanges in Gulf Arab states Sunday, with the DFM General Index closing 1.62 percent higher at 1,716.83 points.
Traded value increased by 186 percent to 506 million dirhams (137.87 million U.S. dollars), as 311.83 million stocks changed hands at the DFM.
Shares of Dubai Islamic Bank (DIB) added 0.87 percent, ending at 2.32 dirhams (0.63 dollar). DIB, the world’s oldest bank which operates in line with Islamic law Sharia, has increased its stake in Tamweel, an Islamic home finance company.
Islamic firms operate without interest as the Sharia bans them as non-permissible, but they do generate profits by participating in profits projects. DIB pushed its share in Tamweel, Arabic for financing, up from 20 percent to 57 percent after the government of Dubai gave its approval.
“We want to send a strong signal to the market that we are committed to the real estate sector in Dubai and to Islamic home financing,” DIB CEO Abdullah al-Hamli told Xinhua at a joined DIB/ Tamweel press conference in Dubai.
After the financial crisis reached Dubai at the end of 2008, Tamweel delisted its shares from the DFM, the sheikhdom’s local bourse. A planned merger with its rival Amlak never came into effect.