Dr Adnan Chilwan, GCEO Dubai Islamic Bank discusses exiting Jordan
Dr. Adnan Chilwan, GCEO of Dubai Islamic Bank, explains why the bank decided to withdraw from its investment in Jordan early in 2017.
Looking to your international activities, in January 2017 DIB exited its investment in Jordan Dubai Islamic Bank. What was behind the decision to withdraw?
When we got into Jordan in 2008 we came with a clear mandate to set up a global institution that could implement best practices that we had established within the UAE. Having set up Jordan Dubai Islamic Bank (JDIB) we were quite passive in managing the institution. With a 20 per cent stake you are neither here nor there. With a very limited contribution to the future of JDIB we realised that it was an opportune time for us to exit our investment having been in the country for about 10 years.
Capital is finite. You have to make sure that you reinvest capital for the benefit of the shareholders in countries where ROEs are maximised. It was not a decision we took overnight. It was always part of our plans when we entered Jordan, we wanted to make sure that we enhanced the profitability of the Jordanian venture and, having achieved that within a decade, it was the right time for us to leave it in the capable hands of the existing shareholders and look at expanding elsewhere.
[Jordan Dubai Islamic Bank was the legal successor of The Industrial Development Bank which had originally been established in Jordan as a conventional bank in 1972. Following DIB’s withdrawal, the bank has been rebranded as Safwa Islamic Bank.]
Watch the interview here.