Dubai Islamic Bank considers Sudan Airways’ equity bid
By Salah Eldin Eltayer
DUBAI, Sep 5, 2004 (Khaleej Times) — Dubai Islamic Bank (DIB) is seriously considering bidding for a substantial equity in the state-owned Sudan Airways, which is recently privatised to allow foreign investors a golden business opportunity, reveals a senior Sudanese official familiar with the development.
‘In fact, DIB is the largest Arab Bank investor in Sudan. The bank has started to invest in qualitative and viable projects in various sectors since 1995. Their experience and knowledge of the country can’t be compared to any other Arab or foreign investor. All their projects are running very well and making progress,’ added the source.
‘The bank is very much aware of the business opportunity in Sudan growing economy.’
He said,’Sudan being an Islamic country looks forward for Islamic financial products to develop its economy, we are very happy to be associated with Dubai Islamic bank if the deal ended positively.’
He said,’Once the government announced privatisation of the only-state-owned airways, we decided to approach the bank’s management, knowing that they will not hesitate if they find the deal viable. In case of DIB, we don’t need much of time to explain the investment environment in Sudan, the facilities, and other incentives, they already exist there and they know everything over there. They will save a lot of time and energy of the organiser and manager of the deal.
‘The bank promised to study the company’s profile and get back to us soon. I have no doubts that the bank will be part of the company owning major number of shares. We trust the experience and knowledge of the UAE and Dubai people; they have transformed their country into a commercial hub by the help of their visionary attitude. Emirates airline is an example of how they have developed their country national carrier.’
Asked if Emirates will bid for part of the shares the ministerial source said, ‘So far there is no any indication of interest, yet the opportunity is open and they can stand a better chance. I don’t think Emirates will be part of a n airlines that competes with them, secondly they are not a fiancing institution.’
‘The privatisation of the airways is being envisaged long time ago but it was unfortunate that we couldn’t stepped the move up due to a number of obstacles, said the source. We have slashed all the 3.000 workers to render about 300 to handle the present tasks until we manage to have a new qualified staff,’ he said.
‘The government of Sudan will have around 31 per cent of the total shares of the company and the Sudanese private sector will compete in a 29 per cent of the shares while the rest of 40 per cent for foreign investors both companies and individual.’ It is a part of the bank ambitious diversification and expansion strategy across its investment and financing activities in the UAE and abroad.
The bank profits and revenues announced recently in July showed the bank’s robust financial position which recorded a 25 per cent increase in net profit to Dh405 million for the first six month of the current year compared to to Dh325 million.