"Badr Al Islami is committed to the framework and values of Shariah," said Mashrebank chief executive officer Abdulaziz Al Ghurair.

"It is an independently managed business comprising Badr Islamic Finance Company, majority owned by Mashreqbank and Badr Islamic Banking, a division of Mashreqbank."

Badr Al Islami will offer the full range of Islamic financial services, retail, corporate and investment banking with an initial capital of Dhs500 million.

"Islamic financial services are one of the fastest growing fields in the banking and finance industry," said Mr Al Ghurair.

"Badr Al Islami can bring Mashreqbank's unparalleled track record in customer service and innovation to this field, thereby filling an important gap in the market.

"We have been extremely thorough in developing Badr Al Islami, appointing a renowned board of Sharia scholars.

"The chairman of the Sharia board, Shaikh Abdalla Bin Suliman AlManei, is one of the world'ss most respected scholars and will ensure that Badr Al Islami provides financial services that are in line with the guiding principles of Islamic finance."

The Sharia board will meet for the first time in this month toreview overall operations.

"We are committed to playing an active role in the growth of Islamic financial services within the UAE and beyond, at both retail and wholesale levels, and look forward to welcoming Muslim and non-Muslim customers," said Mr Al Ghurair.