(Sukuk.net - Jordan Times) Samir Al Rifa'i, chief executive officer of Jordan Dubai Capital (JD Capital), announced Sunday the completion of the private placement for 26 million shares of the Industrial Development Bank (IDB).

"It is the first step towards transforming IDB into Jordan Dubai Islamic Bank," he told a press conference to mark the payment of JD71 million, the equivalent of $100 million.

The investment was calculated at JD2.750 per share based on the formula adopted by the IDB general assembly of shareholders.

IDB Chairman Mufleh Aqel told journalists that a new board of directors will be elected on January 29, 2009 and soon after the process will begin to obtain an Islamic bank licence from the Central Bank of Jordan.

Aqel expected the bank in its new form to start operations during the summer months.

According to both Rifa'i and Aqel, the Jordanian market can accommodate a third Islamic bank especially if it provides innovative products and services beyond the traditional operations.

"As an example, the Jordan Dubai Islamic Bank will be active in the "sukuk" or Islamic bonds," Aqel said, noting that the Jordanian government would be a major participant in this product.

Rifa'i indicated that Sharia-compliant banking institutions have been the least affected in the face of the current economic crisis that the world is witnessing and, as such, Sharia-compliant banking is an ideal solution under all circumstances.

"We look forward to providing comprehensive Islamic banking services through this project, which will satisfy the Jordanian market's growing demands for Islamic banking tools," he said.

The consortium involved in the acquisition of IDB includes each of Jordan Dubai Financial (JD Financial) - the investment arm of JD Capital, Dubai Islamic Bank (DIB), which owns 20 per cent, and Dubai International Capital, which also owns 20 per cent.

JD Financial is the stake owner of 60 per cent of the new bank's capital, which is considered to be JD Financial's third and biggest investment to date in this field.

In addition to owning a share in IDB, the agreement enables DIB to provide the technical support and supervision needed to restructure IDB according to international best practices by giving IDB access to DIB's extensive expertise in providing innovative Sharia-compliant financing products.

"We hope that DIB will take us closer to achieving our vision in becoming a comprehensive financial institution that follows the highest international measures and standards, and compete not only among the country's Islamic banking institutions, but also on the Jordanian banking sector level in general, " Rifa'i concluded.
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