(MENAFN- The Arabian Post)
Dubai Islamic bank (DIB), the United Arab Emirates' largest Shariah-compliant lender by assets, has increased its shareholding in Türkiye's T.O.M. Group from 20% to 25%. This strategic move underscores DIB's commitment to expanding its presence in Türkiye's burgeoning digital banking and financial technology sectors.
The initial Acquisition occurred in October 2023, marking DIB's entry into Türkiye's digital financial services market. The T.O.M. Group, established by Aydın Group, encompasses several entities, including T.O.M. Katılım Bankası-the country's first licensed digital retail bank-T.O.M. Pay Elektronik Para ve Ödeme Hizmetleri, an e-money company, and T.O.M. Finansman, a digital financing company, along with their subsidiaries.
Adnan Chilwan, Group CEO at DIB, highlighted the significance of this investment, stating that the increased shareholding not only solidifies DIB's position as a key stakeholder in Türkiye's thriving digital banking sector but also underscores the bank's deep-rooted belief in the country's strategic intent around tech-based economic development. He emphasized that the partnership with T.O.M. Group reflects a larger objective of building a comprehensive, future-proof, and tech-rich global Islamic financial model, designed to evolve with the fast-changing customer mindsets of today.
DIB's expansion in Türkiye aligns with its broader strategy to drive financial inclusion and bring innovative Sharia-compliant financial services to underbanked and non-banked segments. This approach is particularly pertinent in Türkiye, where digital banking is experiencing rapid growth, and there is a significant push towards integrating technology with financial services to enhance accessibility and efficiency.
The T.O.M. Group's flagship entity, T.O.M. Katılım Bankası, has been at the forefront of this digital transformation. As the first licensed digital retail bank in Türkiye, it offers a range of services aimed at simplifying banking processes and providing seamless financial solutions to its customers. The bank's digital-first approach has resonated well with the tech-savvy population, leading to a substantial increase in its user base since its inception.
See also “A Dubai home is not just about a space furnished with elegance and taste; it's about an emotional impact”
In addition to T.O.M. Katılım Bankası, T.O.M. Pay Elektronik Para ve Ödeme Hizmetleri has been instrumental in facilitating electronic payments and e-money services across the country. By leveraging cutting-edge technology, T.O.M. Pay has enabled secure and efficient transactions, contributing to the overall growth of Türkiye's digital economy.
T.O.M. Finansman, another key component of the T.O.M. Group, focuses on providing digital financing solutions. Through innovative products and services, T.O.M. Finansman aims to address the financing needs of individuals and businesses, thereby supporting economic development and fostering entrepreneurship within the country.
DIB's increased investment in the T.O.M. Group is also indicative of the growing economic ties between the UAE and Türkiye. Both nations have been actively seeking to strengthen their bilateral relations, with a particular emphasis on enhancing cooperation in the fields of trade, investment, and technology. This partnership serves as a testament to the mutual benefits that can be achieved through such collaborations.
As of September 30, 2024, DIB reported a 13% year-on-year increase in net profits, amounting to AED 5.44 billion, compared to AED 4.82 billion in the same period the previous year. This financial performance reflects the bank's robust growth trajectory and its strategic initiatives aimed at expanding its footprint in key markets.
The decision to augment its stake in the T.O.M. Group is expected to further bolster DIB's financial standing, as it taps into Türkiye's rapidly expanding digital banking sector. Industry analysts predict that the digital banking market in Türkiye will continue to grow exponentially, driven by increasing internet penetration, a young and tech-savvy population, and supportive regulatory frameworks.
See also ADNOC's ICV Program Boosts UAE Economy with Dhs55bn Reinvestment
Notice an issue?
Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com . We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.
ADVERTISEMENT
MENAFN21012025000152002308ID1109112870
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.