Gulf Energy Maritime (GEM), has signed an AED275 million ($75 million) with Dubai Islamic Bank (DIB). The agreement marks the first time GEM has raised funding of this kind through Islamic finance.
GEM CEO Ahmed Essa Hareb Al Falahi said, "The seven year facility is the first deal between GEM and DIB, and it is part of a long-term relationship with the bank as we look to extend our association. Providing custom-made services will assist the company to meet objectives to provide safe, high quality and economical operation of vessels and optimise shareholder value as well the purchase of new vessels and expand operations."
Dr. Adnan Chilwan, Group CEO, Dubai Islamic Bank, said, "Our partnership with GEM demonstrates our expertise in the field of Islamic banking and finance. This innovative structure highlights the flexibility of Shari'ah-compliant financing and our commitment to the industry whilst simultaneously supporting and facilitating business growth in the UAE."
Formed in 2004 as a joint venture shipping company, Gulf Energy Maritime is investing in and operating modern state-of-the-art double hull tankers designed to carry petroleum products, chemicals and other hydrocarbons. Established 12 years ago, GEM has built an asset value now standing at $1 billion.