CENTRAL BANKING IN THE UAE
By Abdel Aziz dDmapunong
Originally posted at http://dimapunong.blogspot.com
My previous two blogs were all about Islamic banking in Dubai. This is my third
time to write about this city in the United Arab Emirates. This time the Islamic
Banking Research Institute has chosen to peruse the Central Bank of the United
Arab Emirates which was proclaimed under the Union Law No. (10) Of 1980,
concerning the Central Bank, the Monetary System and Organization of
Banking. Our objective is to see where our Amanah Islamic Bank fits in the
banking system of the United Arab Emirates. We made no comments as it is
purely internal for us to peruse the rules of banking in the Arab Emirates.
However, for the benefit of our stockholders elsewhere, our representatives
abroad, and would-be investors, I have posted here a copy of Union Law No.
(10) Concerning the Central Bank (Part One) as Annex A.
To the Amanah Islamic Bank, all roads lead to Dubai. This is because the
Islamic Bank finds a business ally in Kampac Oil Middle East that is based in
Dubai. The two entities had recently inked a MOA whereby Kampac Oil M.E.
would bring the Islamic Bank to the cities of the Emirates.
Charles Ampofo
Chairman, Kampac Oil Middle East
The city of Dubai is in the United Arab Emirates (UAE). The UAE is a part of the
larger Gulf Cooperating Council known as the GCC. This, may I say, is the Gulf
of flowing funds. Local banks finance most investment in the UAE. Funds
overflow in the sense that banks lack sufficient lending opportunities for their
funds, and consequently invest much of their excess funds abroad. How much
excess fund? Barney Gimbel, Fortune writer, in his “The richest city in the world”
has this to say: “Welcome to Abu Dhabi, the capital of the United Arab Emirates
and the richest city in the world. The emirate's 420,000 citizens, who sit on one-
tenth of the planet's oil and have almost $1 trillion invested abroad…” Abu Dhabi
is ninety miles from Dubai.
Local banks