KARACHI, Nov 26: The State Bank on Saturday issued another licence for Islamic banking to a Dubai-based bank which intended to invest $100 million in Pakistan.

The licence was given to Dubai Islamic Bank Pakistan Limited (DIBP). SBP Governor Dr Ishrat Husain handed over the Licence to Arif Alkooheji, executive vice-president of DIBP.

The other Islamic banks operating in Pakistan are Meezan Bank Limited, Al Baraka Islamic Bank, BankIslami Pakistan Limited and Emirates Global Islamic Bank Limited. Meezan Bank and Al Baraka Islamic Bank are currently operating with 36 branches.

In addition to these banks, 31 branches of nine conventional banks are also providing exclusive Islamic banking services to their customers in all the four provinces of the country.

Speaking on the occasion, Dr Ishrat said the State Bank was encouraging the participation of reputable local and foreign investors in the field of Islamic banking with a view to developing a competitive and viable Shariah compliant financial system in the country. He said the Islamic banking was growing at a fast pace in the country.

He said at present assets of Islamic banks stood at around Rs60 billion, which was 1.6 per cent of total banking industry assets. These assets represent customers’ borrowings in which 25 per cent of the customers are those who never have a borrowing relationship with any bank.

Dr Ishrat said the SBP was working on formulation and revision of various rules/regulations to provide a level-playing field to Islamic banking institutions in the country. “The SBP is offering training in the field of Islamic banking and I hope DIBP will also address the issue of shortage of trained human resources in this field,” Dr Ishrat added.

Arif Alkooheji said DIBP, incorporated in 1975 in Dubai, had the unique distinction of being the world’s first full-fledged Islamic bank.