Dubai - Mubasher: The Dubai Financial Market (DFM) on Sunday announced that it has inked a memorandum of understanding (MoU) with National Bonds Corporation (NBC) to strengthen its leading position as the first Shari'a-compliant exchange globally.
The deal was signed by Essa Kazim, chairman of the DFM, and Mohammed Qasim Al Ali, CEO of NBC, in the presence of senior representatives from both sides, according to a joint press release.
The deal highlights the joint efforts of both the DFM and NBC to fortify Dubai’s position as the capital of Islamic economy globally.
The newly signed agreement enables NBC’s accessibility to the DFM’s numerous services including, trading, depository, custody as well as dividend distribution.
Under the MoU, both parties will launch an electronic linkage for efficient trading of NBC’s leading Shari'a compliant savings bonds through the DFM’s licensed brokerage firms.
The DFM’s “current and potential investors, as well as holders and potential clients of the national bonds, will be able to seamlessly purchase and redeem their bonds through brokerage firms. The DFM will also manage the dividend distribution process to bondholders,” the press release highlighted.
The new service will add value to the brokerage firms in an effort to diversify their services and sources of income, it added.
“Dubai’s position as the capital of Islamic economy globally has been relentlessly strengthening since the launch of this leading initiative by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai early 2013,” Kazim commented.
He pointed out that the main goal of the MoU is to diversify the DFM’s product offering as well as creating an effective platform for National Bond’s clients.
