Dubai Islamic Bank, the UAE's biggest Sharia-compliant lender by assets, is acquiring a 20 per cent stake in Turkey's TOM Group of Companies, marking its entry into the nation's banking sector.
The move will make DIB a “significant minority shareholder” of Istanbul-based TOM, which owns a digital bank, with an option to increase its stake to 25 per cent within 12 months, DIB said in a statement to the Dubai Financial Market, where its shares are traded.
The transaction, which has been approved by authorities in Turkey and the UAE, will be formalised after clearance from the Turkish Competition Authority, it said.
The value of DIB's acquisition in TOM – formally Technology of Money – was not disclosed. TOM's founding shareholder is Aydin Group, the operator of one of Turkey's largest retail ecosystems.
DIB's entry into the Turkish market will help its strategy of providing financial services to mass population segments, including the underbanked and non-banked segments, Adnan Chilwan, group chief executive of DIB, said.
“Central to our growth ambitions has been the bank's ability to effectively formulate winning strategies amidst shifting industry dynamics,” said Mr Chilwan.
“Our entry into the Turkish banking sector through the investment in a digital financial group represents this dynamic approach to an ever-evolving market environment … we believe this deal in Turkey will lay the groundwork for further initiatives in other key strategic markets for DIB.”
DIB's entry into Turkey comes at a time when the country's banking sector is experiencing a revival.
The operating environment for banks in Turkey remains challenging but recent government steps to move away from unconventional policymaking could ease headwinds for lenders in the country, Moody's Investors Service said in a report last month.
The rating agency revised its outlook for the country's banking sector to stable, boosting shares of the nation’s lenders to all-time highs.
The funding profile of Turkish lenders has also improved amid strong liquidity, despite lingering downside risks, it said.
Digital banking and FinTech services, meanwhile, have grown to become a crucial platform for consumers, allowing them to gain access to banking services from just about anywhere through mobile devices and other channels.
These services are also being promoted by banks in order to grow their customer base and implement the latest technologies to provide seamless and more convenient services.
TOM, through its partnership with DIB, aims to provide affordable financial services to its customers, said TOM group chief executive Onur Ozkan.
“We hope to make TOM Group a regional and a global leader in digital participation banking, aiming to provide access to financial services and promote inclusivity by encompassing segments beyond the traditional banking system,” said Mr Ozkan.
Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
