Dubai Islamic Bank

Brand Management

Situation Analysis

History

Dubai Islamic Bank being the world's first Islamic bank combines the best of traditional Islamic values with the technology and innovation that characterize the best of modern banking. Since its formation in 1975, Dubai Islamic Bank has established itself as the undisputed leader in its field. It also has set standards for others to follow the trend towards Islamic banking which gathers momentum in the Arab world and internationally. Islamic banking Dubai is one of the world's fastest-growing economic sectors, comprising close on 200 institutions responsible for assets estimated at more than $200 billion. Different Islamic banking sectors of Dubai for helping customers in easy banking includes: Retail Banking Private Banking Johara Banking Business Banking Corporate Banking Investment Banking Real Estate finance Sharia Board1

Dubai Islamic Bank

Brand Management

Electronic Banking Service- (Online Banking, Mobile Banking, Zika

Calculator, Phone Banking.) Dubai Islamic Bank is a public joint stock company whose share is quoted on the Dubai Financial Market. The bank reported AED 1.56 billion in net profit for the year ended December 31, 2006 rising by 47% compared to AED1.06 billion for the year ended December 31, 2005. The profit for 2006, including depositors' profits, stood at AED 3.3 billion, an increase of 65% compared to AED 2 billion for the year ended December 31, 2005. Financing and investment operations also delivered strong growth, with total investment and financing assets including investments in Sukuks for the Nakheel Group raising US$3.52 billion which stood at AED 38.8 billion, an increase of 28% over last year. Customer deposits also showed an aggressive growth of 43% over last year reaching AED47.7 billion in 2006. The bank has been proactive in creating partnerships and alliances at local and international level. Few up coming projects and few on going projects:

DIB to open branch in Dubai Industrial city. DIB launches new branch on AL Ittihad road. DIB team highlights strength of Islamic Finance sector to London-based institutional investors. DIB concludes Emarati programme for 36 UAE nationals. DIB sets up campaign on Johara banking service

Since its formation in 1975 as the worlds first full-service Islamic bank, DIB has established itself as the undisputed leader in its field, setting the standards for others to follow as the trend towards Islamic banking gathers momentum in the Arab world and internationally.

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Dubai Islamic Bank

Brand Management

Today, Islamic banking is increasingly recognized as a fairer alternative to traditional commercial banking and is consequently attracting many nonIslamic customers motivated by the systems inherent commitment to transparency and ethical values. Thats why Islamic banking now one of the worlds fastest-growing economic sectors, comprising close on 200 institutions responsible for assets estimated at more than $200 billion. Dubai Islamic Bank still leads the way, remaining true to its roots as a customer-centred organisation where close personal service and understanding form the basis of all its relationships. The State Bank of Pakistan (SBP) awarded to Dubai Islamic Bank Pakistan Limited(DIBPL), the license for the establishment of its operations in Pakistan on Saturday, November 26, 2005. Since then, DIBPL has undertaken major initiatives to expand its branch network across the country. Under its consumer banking division, the bank is offering state-of-the-art Sharia compliant products that effectively compete with those being offered in the market by conventional banks. This is not the Banks only strength though. It also has expertise in providing Retail, Private, Small and Medium Enterprises, Corporate, Investment Banking and Advisory services.

The Bank has launched Pakistan's first Islamic Visa Debit Card and introduced financial products covering Home Financing, Auto Financing, and Depository products. DIBPL has also introduced Priority Banking and Internet Banking, both of which are being recognized as benchmark products in their respective categories. Besides regular banking services, the Bank is committed to bringing foreign3

Dubai Islamic Bank

Brand Management

investment to the country. DIBPL's corporate wing has actively pursued foreign investors and convinced world renowned giants from the GCC to be part of Pakistan's economy.

DIBPL is a Public Limited company. Its total worth is Rs. 5.1 billion which will gradually increase to Rs. 6 billion. DIBPL is 100% owned by Dubai Islamic Bank PJSC (Public Joint Stock Company) and its nominated shareholders. The parent company is a listed company in Dubai. Operationally DIB entered into the market of Pakistan in June 2006 by Opening its initial branches at Lahore, Islamabad and Karachi. Currently DIB having 29 branches in 10 cities of Pakistan

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Dubai Islamic Bank

Brand Management

Islamabad o

1 Dubai Islamic Bank Pakistan branch Roshan Centre

o Jinnah Avenue, Blue Area, Islamabad Peshawar o

Dubai Islamic Bank Pakistan branch Shop No. 1 - FG, Fakhrar-eAlam Road

o Peshawar Cantonment, Peshawar Faisalabad o 5

Dubai Islamic Bank Pakistan branch Plot No. 2748-3-1 & 2748-3-2,

Dubai Islamic Bank

Brand Management

o Maccca Towers Bank Square, Aminpur Bazar, Main Kotwali Road, Faisalabad Gujranwala o

Dubai Islamic Bank Pakistan branch Plot No.85-15/B and 85-16/B, Model Town, G.T.Road, Gujranwa

Lahore Cityo

Dubai Islamic Bank Pakistan branches 34,35, Sharah-e-Quaid-eAzam,

o Mall Road, Lahore 55, o Circular Road, outside Akbari Mundi Lahore Main Boulevard Gulberg, o 10-K, Gulberg II, Lahore Plot No. 54, Block 1, o Sector B/1, Quaid-e-Azam Town, PECO Road, Lahore Multan

o Dubai Islamic Bank Pakistan branch 10-B, o Old Bahawalpur Road, Multan Rawalpindi

o Dubai Islamic Bank Pakistan branches Plot No 67-A, o Commercial Satellite Town, Muree Road, Rawalpindi Shop No. 4, 5 & 6, o Plot 59, Bank Road, o Cantonment Board, Saddar Rawalpindi Gujrat

o Dubai Islamic Bank Pakistan branch 62-A,6

Dubai Islamic Bank

Brand Management

o Small Industrial Estate, G.T. Road, Gujrat Karachi o Dubai Islamic Bank Pakistan branches 31-C, o Khayaban-e-Shahbaz, DHA, Phase VI, Karachi o Awari Towers Hotel Complex, o Fatima Jinnah Road, Karachi Hassan Chambers, o Plot No. DC-7, Block-7, Kehkashan Clifton, Karachi Plot No.18, o 3rd Building Facing Hussaini Cloth Market, o Survey Sheet No. BR-5, Bunder Quarter, Kharadar, Karachi o Plot No.7/FL,6, Block 6, Gulshan-e-Iqbal, Karachi Gawadar o Near City Bus Station Shop # 45, 46 Tradition and heritage join with a commitment to flexibility, innovation and modernity, so that customers of every nature are provided with comprehensive solutions to all their financial needs Whether you are already a customer, or looking for a bank thats refreshingly different, you will discover Dubai Islamic Bank is always the first choice for discerning clients who are seeking quality, service, and value for money. Use DIB website to take advantage of our Al Islami On-line Banking facility to manage all your finances. You can save time, money, and effort by using Al Islami to handle all your banking requirements quickly and efficiently. Just click the links to register or to log-on.

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Dubai Islamic Bank

Brand Management

Incorporated in 1975, Dubai Islamic Bank (DIB) is among the first Islamic banks to be established in the world. The Dubai-based bank offers a full range of banking services that comply with the Islamic Sharia principles. At DIBPL a full fledged Sharia Department that monitors every transaction the bank is involved in. All products, marketing material and campaigns are also certified by this department ensuring that nothing is in conflict with the guidelines of Sharia. Moreover Sharia Audit is conducted to ensure that none of the banks income is from transactions that were Sharia repugnant. If such a case is found, the income from the infringing transaction is removed from the banks profit and donated to charity. As a leading bank in UAE, Dubai Islamic Bank is dedicated to the nation's economic development and prosperity and also providing products and services in the realm of corporate finance to stimulate trade and industry progress and expansion.

Dubai Islamic Bank Global

Thirty years ago, Dubai Islamic Bank ('DIB')

created history by becoming the world's first Islamic Bank. Today, Islamic banking has become one of the fastest growing economic sectors with over 300 financial institutions, with assets estimated at over US $300 billion providing . By combining the best traditional Islamic values with high-standard technology and innovation, DIB is committed to not only fully comply with the principles of Sharia in all its financial dealings but to also facilitate its customers who8

Islamic

financial

services.

Dubai Islamic Bank

Brand Management

venture into the world of Islamic banking in such a befitting way that they would feel reaping the best rewards of both the worlds.

For its outstanding performance and contribution to Islamic financing, DIB received the Best Islamic Bank in the Middle East Award (2006) by both Euromoney's Islamic Finance Weekly and Gulf Wealth Forum. DIB has also been awarded the Bank of the year (UAE) at the 2006 Banker Awards. DIB has not only been at the forefront of innovation but has excelled every step of he way. With the launch of Al Islami Internet Banking, DIB has reaffirmed its commitment to promote and develop Islamic banking in line with the requirements of the modern age. For these efforts, DIB received the Golden Trophy at the UAE Web Awards in 2006. DIB is also the first to offer a mobile SMS messaging service in both Arabic and English. Moreover, DIB became the first bank in the Middle East to introduce Internet Protocol (IP) for its Visa card operations.

With path-breaking vision and bold strategies, DIB aims to enhance its status as a world leader committed to the goal of providing "World Class Banking." a)Sukuk Powerhouse of the World Sukuk is a hallmark of DIBs product innovation capabilities. The development of Sukuk (Islamic bonds) has earned DIB several awards including Banker Middle East Industry Award for Best Bank and Best Product Innovation (2006).

DIB is honoured to have successfully led to manage the world's first airline Sukuk for the Emirates Group. This seven year Sukuk Al Mushtaraka valued at US $550 managed to attract investors participation from Europe and the Far East.9

Dubai Islamic Bank

Brand Management

Based on its outstanding performance DIB has been awarded the largest Sukuk issue in the history of Islamic Banking world over for general funding and expansion needs of Dubai and Jebel Ali Ports. The US $2.8 billion issue is being lead-managed by DIB and is part of a large financing package being arranged at a time when the ports' operator is bidding to become one of the world's largest. The 2-year bullet tenor Sukuk is also the first convertible Sukuk ever to be issued.

This deal earned DIB the Governor's Award for Most Innovative Product (Sukuk) at the Kuala Lumpur Islamic Finance Forum 2006. The Sukuk was also dubbed the Middle East Debt Capital Markets' Deal of the Year by Euromoney International Financial Review.

DIB has also co-managed Pakistan's first Sovereign Islamic Sukuk issue. This US $600 million received a tremendous response from the investors and consolidated the status of DIB as an Islamic Sukuk powerhouse.

Dr Ashfaque Hasan Khan, Economic Advisor to the Ministry of Finance in Pakistan, significant has particularly acknowledged to the the bank's of participation the and contribution success transaction.

The credit rating assigned to DIB by Standard and Poor's is 'A' long-term and 'A1' short-term for the year 2006. The DIB has also been assigned an A1/Prime 1 ranking by Moody's. The DIB aims to maintain the same high standards set for product development in the coming years. b)Ensuring Sharia Compliance To adhere to traditional Islamic values and ethics, the DIB relies on the expertise of scholars of high repute with extensive experience in law, economics10

and

banking

systems.

Dubai Islamic Bank

Brand Management

The members of DIB's Fatwa & Sharia Supervision Board specialize in law and finance as prescribed by Islamic code. The Board is appointed by the DIB's General Assembly and ranks above the Board of Directors.

The DIB's board supervises the development and creation of innovative Sharia-compliant investment and financing products and services to ensure that all the transactions are free from riba (interest) and all other Sharia repugnancies. Thorough professionalism and a stringent compliance to rules have made DIB the pioneering organization to practice Islamic finance in its true letter and spirit.

DIB also contributes to Islamic Banking and Finance seminars, conferences, exhibitions, workshops and studies such as those on Islamic Retail Banking to disseminate information and educate the masses on Islamic banking. Than a Bank c)More DIB takes pride in its efforts to expand the scope of Islamic

funding by focusing on financing capital intensive sectors such as power, airlines, transportation, telecommunication, and real estate through common Ijara (leasing) facilities at both the local and regional levels. DIB has been financing landmark properties across the UAE such as the Jumeirah Beach Residence and the Dubai International Airport.

Deyaar, a 100% subsidiary and real estate arm of DIB, is the largest and most successful real estate company headquartered in Dubai. Deyaar acquires, develops, rents and manages real estate throughout the GCC. Working with both large and small investors, Deyaar takes pride in building homes and not houses. Tamweel, another flagship subsidiary of DIB, is the leading home finance service provider in the UAE. It is the only UAE based company offering Islamic11

Dubai Islamic Bank

Brand Management

home financing. The company has financed property worth over Dirham 7 billion and was recently converted to a Public Joint Stock Company with overwhelming demand subscriptions exceeding the required amount by 485 times.

Donations for Prime Ministers Special Fund for Relief of Victims of Terrorism In order to help the victims of terrorism in Dir, Swat, Bajaur and Waziristan Agency of NWFP and FATA, donations are being accepted at all branches of Dubai Islamic Bank Pakistan Ltd. (DIBPL) in the account number 0063531001, titled Prime Ministers Special Fund for Relief of Victims of Terrorism, as per State Bank of Pakistans instructions. Donors are requested to deposit cash or cheques at any branch of DIBPL in the above mentioned online account. DIBPL internet banking users can donate by transferring funds from their account into the fund account by using the Funds Transfer option. Overseas donors who wish to send remittances may send instructions via telegraphic transfer in favour of Prime Ministers Special Fund for Relief of Victims of Terrorism Account number 0063531001 at Dubai Islamic Bank Pakistan Ltd. SWIFT code DUIBPKKA

DIB grows to 25 branches, reaches 40,000 customers in 2008 Karachi, 9th March, 2009: Mr. Khalid A. Kamda, Chairman of the Board of Directors DIB Pakistan chaired the Board Meeting of DIB Pakistan Limited to12

Dubai Islamic Bank

Brand Management

review the banks performance and formulate framework for future operations and expansion in Pakistan. The meeting was attended by Fahad Bin Fahad, Vice Chairman DIB Pakistan; Junaid Ahmed Chief International Head DIB; Saad Zaman, Deputy CEO DIB Capital; M. A. Mannan, CEO DIB Pakistan and other directors of the board. Mr. Khaled Al Kamda, Chairman, Board of Directors, Dubai Islamic Bank said "One of the key strengths of our consumer banking business has been our mortgage and auto product performance - DIBPL has been the number 1 issuer of consumer products. Our prudent and innovative credit and risk management policies have led to a quality asset portfolio and have resulted in sustained business growth despite turbulent economic conditions. 8 new branches were opened and customer base has grown to over 40,000. The corporate and investment banking business exceeded its targets and this performance has been recognized in the form of prestigious awards like "Sovereign Deal of the Year" and "Pakistan deal of the Year" by Islamic Finance News for the consortium-led deal of Pakistan Domestic Sukuk Company." Addressing the occasion, CEO DIB Pakistan, M. A. Mannan said: DIBPL is running profitable operations in Pakistan since the last quarter of 2008, and this positive trend is expected to continue for the year 2009. DIBPL achieved 58% growth in deposits and 59% in financing during 2008. We closed the year at an asset base of over Rs. 30 billion, deposits of over Rs. 25 billion and a network of 25 strategically placed branches. We are confident that DIBPL will achieve greater milestones during the coming year. The board meeting was followed by a stakeholder reception attended by Shaukat Tareen, Advisor to PM on Finance; Saleem Raza Governor SBP; Pervaiz Said, Director Islamic Banking and Advisor to Governor SBP and other13

Dubai Islamic Bank

Brand Management

distinguished guests from the banking and financial sector, various local and multinational companies and academia.

Dubai Islamic Bank announces 2008 net profit of AED 1.73 billion

Value chain analysis

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Dubai Islamic Bank

Brand Management

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Dubai Islamic Bank

Brand Management

Environmental Scanning: PEST Analysis

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Dubai Islamic Bank

Brand Management

Political Pakistan direct foreign investment Global economical expansion Plan Dilution of barriers between both countries Support Worldwide bad economical situations Govt. flexible policies regarding banking Threats from local politicians Terrorist threat

Economical High Consumption level in Pakistan Unsaturated market of Pakistan regarding banking services High Consumption level in Pakistan Unstable local economic condition Unstable global economic condition Greater Tax rates

Social

Changing life style of Pakistan 17

Dubai Islamic Bank

Brand Management

More absorption regarding Islamic banking The discouraging Role of Bankers. The Risk-Averse attitude of General Depositors. Lack of Knowledge and Wrong customer perception.

Technological

Internet banking Credit card Debit card facilitation Mobile banking Online information and service cell

Market Analysis

How large is the market for the product in question

Riba gives birth to an economic system that is unjust; one that favors the rich at the expense of the poor. Rather than reward for effort and entrepreneurship with profit, the Riba based economic system rewards capitalists.

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Dubai Islamic Bank

Brand Management

Islamic Finance attempts to create a fair economic system. It works on the principle of profit and loss sharing. Riba (Interest) is strictly prohibited in all its forms and kinds. Islamic banks enter into trade and investment to earn Halal profit as they neither take deposits/funds on interest nor do they advance loans on interest. They have to purchase and sell assets in order to make profit from the higher sale prices or enter into investment arena. The most common sale contracts used by Islamic banks are Murabaha, Salam, Istisna, sale on deferred payment basis while Ijara is the sale of the usufruct of an asset owned by the bank. For investment, the Islamic banks have Mudaraba, Musharaka and Wakala structures. Islamic banks have to strictly comply with the principles and rules of Sharia which prohibit outright any transaction involving alcohol, pork, gambling, etc. Further, the Islamic modes of finance and investment used by these banks must fulfill the basic conditions of these contracts to be considered Sharia compliant

Is it growing, shrinking, or static?

In my opinion on the performance of Islamic banking and research analysis the market of Islamic banking have been growing in Pakistan as well as in global market due to reliability, greater assurance and profitabilityWhat is the market share of the product?

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Dubai Islamic Bank

Brand Management

Currently almost 11 % share of banking services are been captured by Islamic banking and about 7% market have been grap by Islamic bank according to our research

Frequen cy MCB UBL ABL HBL Saudi Pak DIB Meezan Valid NBP Prime Bank Faysal Bank Citibank ZTBL Total 20 18 12 7 6 7 6 5 9 5 5 2 6 88

% age 20.5 13.6 8.0 6.8 8.0 6.8 5.7 10.2 5.7 5.7 2.3 6.8 100.0

Valid % 20.5 13.6 8.0 6.8 8.0 6.8 5.7 10.2 5.7 5.7 2.3 6.8 100.0

Cumulative % 20.5 34.1 42.0 48.9 56.8 63.6 69.3 79.5 85.2 90.9 93.2 100.0

Dubai Islamic Bank

Brand Management

What are the major factors influencing the level of demand of this product (critical success factors)?

Why Islamic Banking?

In the light of Allahs commands, it is obligatory on us

to try to find and adopt the right banking system, one that follows the principles set by the Creator. Those who learn to differentiate between what has been allowed and what has been forbidden will be the ones with a clear conscience when they assemble in front of the Creator on the Day of Judgment. Allah has clearly ordained the prohibition of Riba in the Glorious Quran. Verses [2:278-279] translate into:

278. O ye who believe! Fear Allah, and give up what remains of your demand for usury, if ye are Indeed believers. 279. If ye do not, take notice of war from Allah and His Messenger: but if ye repent, ye shall have your capital sums; Neither will you deal with others unjustly, nor shall you be dealt with unjustly.

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Dubai Islamic Bank

Brand Management

Beware! false interpretations of these verses has led many individuals to assume that the prohibition only relates to situations where the creditor is likely to charge exploitatively high rates of interest. It is wrong to see the above translation as proof that the (sole) objective served by the prohibition of Riba is the avoidance of injustice (in the sense of exploitation of the poor debtor by the rich creditor). In Islam, there is no room for Riba, marginal or otherwise.Can the market be broken down into segments? If so what are the most useful bases for segmentation?

DIB has grown substantially over the years and now ranks 5th among UAE banks in terms of assets and shareholders equity. Its profitability has witnessed phenomenal growth over the past few years, rising 10 times within a short span of five years - from AED160 million in 2001 to AED1.56 billion in 2006. Its branch network has grown from 19 branches in 2003 to more than 41 in the with plans to launch additional 11 branches by the end of 2007 with in UAE, thus bringing its overall network to 52 branches. . Government intervention took place in the form of injecting capital into the bank, giving the government a 30% stake in the bank, which was initially founded by a group of private businessmen. The bank has since completely restructured its operations and management. The current holding includes 30% by government of Dubai and 4% by UAE Federal Pension Fund.

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Dubai Islamic Bank

Brand Management

Business model

DIB operates through five main business groups: retail banking, corporate banking, real estate, investment banking, and proprietary trading investments.

At what stage in the product life cycle is the market 23

Dubai Islamic Bank

Brand Management

Is demand consistent over time or does it fluctuate in response to random or cyclical factors According to above model the demand of DIB have been consistent over the time as firstly its increased by decreasing rate while after some time it has been increasing with increasing rate

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Dubai Islamic Bank

Brand Management

Competitors Analysis

Who are the competitive brands?

Major competitors of DIB in Pakistan are Bank Islamia Bank Alfalah MCB Meezan Bank Suadi Pak bank HBL UBL NBP Prime Bank Fasyal Bank

What is the basis of competition? (price, quality, economy, service, delivery, real of perceived differentiation, etc.)

Dubai Islamic Bank Pakistan Limited('DIBPL') will be the leading provider of world class banking the Islamic way by being the first choice of customers and employees.

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Dubai Islamic Bank

Brand Management

Major basis of competition is real perceived differentiation as greater value the customers getting in DIB Differentiation values of DIB are as followed

Trust Listening Innovation Social Responsibility Fun

How long has each competitor been active in the market?

DIB is working since 1975, some of competitors are in competition before 1975 while major arise from 2002 to onward when banking revolution comes to seen in world wide economy

What is the segmentation, & targeting strategy of competitors Segments of DIB are as given

Retail Banking Private Banking Johara Banking Business Banking26

Dubai Islamic Bank

Brand Management

Corporate Banking Investment Banking Real Estate finance Contracting finance Sharia Boar

Targeting strategies of all competitors is to penetrate as much as they can so that they can generate healthy profitability in early manner.

What is the differentiation and positioning strategy of each competitor

Differentiation is on perceived value by the customer while positioning bases are the combination of Value based Benefits based

Where is the competition vulnerable?

Competition is vulnerable where customer have to justified by the DIB regarding difference between Islamic banking and traditional banking

What is the current and projected market share of the competitors

As per above discussion the current market share of Islamic banking is about27

Dubai Islamic Bank

Brand Management

11 % while projected will be 18% until 2015 and about 25 until 2020 as per previous growth trend

Analyze the strength of current and potential competition through Porters Five Forces Model

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Dubai Islamic Bank

Brand Management

Frequenc y Customer Vali d based Benefit based Total 9 6 15

% age 60.0 40.0 100.0

Valid %

Cumulative % 60.0 100.0

Competit Analysis

60.0 40.0 100.0

SWOT Analysis Strengths Providing all Islamic banking solutions Presence at each city

Have good brand name Having many innovative product categories

Used good Media mix plan for targeting customers Weakness Fail to differentiate between traditional and Islamic banking E.g. customize E.g. same E.g. special services electronic services for saving/profit Not providing Islamic customer, 29 ratio for products as customers perceived business customers, account for all electronic services for friends & family customer, same business customers Segme Segment 1 communities4 2 3 to tradition services for all nt financiallymix support Many Market mixand Market Customize Market business 2

Dubai Islamic Bank

Brand Management

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