Dubai Islamic Bank share suspension lifted

DIB (Dubai Islamic bank) informed yesterday that the ownership of land assets in Dubai land allocated to plantation holding.

Later in media reports bank stated that it looking to cover the exposure and recover funds given to Dubai - based property dealers. This effected market regulators to withdraw trading in DIB shares.

Arthur Fitzwilliam, the owner of the plantation, he is one the 6th businessmen who is been held by the Dubai police he suspected to be in a big fraud scam that went in DIB. The government has also informed the media that he was also engaged in big scams which intend corruption in the world of business to maintain high confidence the process.

The verdict given by the plantation says that it’s an illegal statement.

The DIB has enforced full security on the plantation polo and equestrian resort located in Dubailand. But the plantation states that the DUBAI ISLAMIC BANK is doing this act on with legal notification.

Dubailand project is estimated to be of US$80(Dh294bn) as the plantation equestrian and polo club one the company’s main asset.

Many plans were part of this task which included 1.luxury hotel, 2.five polo fields, 3.a polo and an equestrian academy, 4.100 villas.

After the company issued a statement to the Dubai Financial Market confirming the takeover, the suspension on trading in DIB was lifted.

In the Gulf, suspending shares pending news about companies is really rare, though it might be still common in more developed markets.

Amro Diab, the head of institutional sales at EFG Hermes, informed, “This will happen more often in the region because investors need to be aware of issues like this.”

Soon after the statement was issued and trading was restarted, DIB’s experienced a fall in its share price which closed down at 3.2 per cent at Dh6.4.

“There aren?t enough details yet of when the takeover took place nor the total value of funds DIB was seeking to recover, which makes it difficult to predict the effects on the share price,” informed Mr. Diab.

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