Noor CEO Says Bk Gets Part Of Dubai $10B Bailout In Deposits

Noor Islamic Bank, a Dubai-based Shariat-compliant lender that's part-owned by the government, has received state aid from the emirate's $10 billion economic bailout bond, the company's chief executive told Zawya Dow Jones.

"We received part of the Dubai $10 billion bond in deposits," Hussain Al Qemzi said in an interview Sunday. "We also received deposits from the ministry of finance."

The funds have come from the $20 billion bond program announced by Dubai's government this year. The first $10 billion of the program, the emirate said, would be subscribed by the United Arab Emirate's government, essentially a federal bailout. At the time, Dubai said it would use proceeds from the bonds to pay off overseas and domestic debts of its various corporate entities.

"Our capital adequacy ratio now is at 15%, well above the central bank requirement of 11%," Al Qemzi said. "We've put on hold all expansion plans outside the U.A.E.. Our focus now is on protecting the bank's capital and preserving the liquidity."