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Mawarid Finance

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Mawarid Finance
Company typePrivate Joint-Stock Company (PJSC)
IndustryShari'a Compliant Financial Services
Founded2006
Headquarters
Dubai
,
United Arab Emirates
Key people
Omran Sultan Abdullah Al Owais, Chairman
Abdul Ghaffar Al Sayed Mohammed Al Hashimi, Deputy Chairman
Mohamed Ali Musabbeh Al Neaimi, CEO
ServicesFloos- Services for SMEs
Floosi- Individual Cash Facility
Working Capital
Damanat- Labor Guarantees
Letters of Guarantee
Goods Finance
e-Murabaha
Wakala Investments
Share Finance
Trust Account
Invoice Finance
Commercial Office Finance
Business Account
Sayyarat Mawarid- Auto Finance
Aqarat Mawarid- Home Finance
Total assetsAED 1.59 billion[1]
Total equityAED 1.13 billion[1]
SubsidiariesMawarid Exchange
Mawarid Securities
Mawarid Technology
Mawarid Consultancy
Plus Medical
Dar Al Takaful
MFI Investments
Websitehttp://www.mawarid.ae

Mawarid Finance is a private joint stock company in Dubai, United Arab Emirates, providing Shari'a-compliant financial services. It was founded in 2006 with a paid-up capital of AED 1 billion.[2] All of its products are based on Islamic financial principles such as Ijarah, Istisnaa, Murabaha, Mudharaba, Musharaka, Kafalah and Wakala and its practices are governed by a full Sharia board.

Operation

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It is the only finance company in the UAE that is completely independent. In an effort to give itself operational freedom, its shares are distributed across more than 350 shareholders, with companies or organisations owning not more than 5% each of the capital and no individual shareholder's stake exceeding 2.5%[3]

The company markets itself with the tagline Falak Tayyeb (in Arabic) which in English roughly translates as 'Consider it done'. This is intended to show its commitment to fast and personalized service.[4]

Mawarid's primary goal has been to support and participate in the development of the UAE economy by:

  • Supporting small and medium businesses (SMEs) which comprise 85% of the companies registered in the UAE.[5] To this end, it operates the Falak Tayyeb for SMEs campaign.
  • Encouraging UAE Nationals to participate in the nation's development through a policy of Emiratisation. Emiratis comprise more than 30% of Mawarid's workforce and their percentage rises to more than 70% in executive positions.[6] This is in contrast to the 0.34% average in UAE's private sector.[7]

Campaigns

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A product called eMurabaha was launched in 2008 which allows a customer to request, follow up and manage funding online through a fund management system following the Islamic mode of Murabaha.[8] In 2011, this product won the 'Idea of the Year' award at the Ideas.Arabia 6th International Conference.[9]

Apart from its Falak Tayyeb campaign which is the only local phrase to be used as a brand tagline in the region, it uses the Origami art form in its product branding. This serves "as a visual metaphor for not only the precision and intricate care that the company has taken with its customised products but also the blank page that Mawarid Finance shares with its customers before building their future".[10]

Company history

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In 2007, Mawarid Finance moved outside UAE by becoming one among the establishing investors who set up First Investment Bank, an Islamic investment company in Bahrain.[11]It received authorization from UAE's Ministry of Finance and Industry to provide automatic registration of bank guarantees issued in favour of the Ministry of Labor through the e-Dirham system.[12]Mawarid Finance teamed with ETA Star to provide Ijara financing to customers buying units in ETA's Centrium project. In Ijara, the title is transferred to the buyer upon contract fulfillment.[13]

2008

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Mawarid
  • Announced the launch of its services for small and medium enterprises (SMEs) while sponsoring the "2nd Young Businessmen Forum" in Ras Al Khaimah. These services include goods finance, car finance, machinery finance, office purchasing finance, investments, fixed deposits, bank guarantees, labour guarantees and stock buying finance.[14] Along with the Mohammed Bin Rashid Establishment for Young Business Leaders, it began a campaign to support youth enterprise. The Falak Tayyeb for SMEs campaign, with an investment of AED 600 million from Mawarid in 2008, would enable both parties to share databases with the goal of providing innovate Islamic financial services to this crucial sector.[15] Subsequently, Mawarid has organized many discussion forums with both the government and private sectors (including entering into an MoU with the Ajman Businesswomen Council in 2009)[16][17][18][19] and joined the Arab Union for Small Enterprises.[20] This campaign has received support and appreciation in the region.[21]
  • Acquired a 1% stake in Egypt Telecommunication Company (Etisalat Misr).[22]
  • Appointed as account trustee for all property development Guarantee Accounts approved by the Dubai Land Department. Mawarid was chosen because of its expertise in the area and its Shari'a compliance.[23]
  • Partnered with real estate developers, Cayan to provide Islamic finance for buyers in Cayan projects. The latter is credited with projects like the Infinity Tower, a luxury 'twisting tower' with panoramic views of the Arabian ocean.[24]
  • Officially categorized as a bank operating in the UAE when it was authorized to issue certificates of deposit by the Dubai Department of Economic Development.[25]
  • Entered into an MoU with the UAE Ministry of Health to provide the Health Fund both financial and logistic services on an annual basis.[26]
Mawarid subsidiary
  • Mawarid acquired Al Jazeera Financial Services, a private equity company specializing in financial intermediation and investment in Shari'a-compliant stocks on both ADX and DFM.[27]
  • Dar Al Takaful, a joint stock Islamic insurance company of which Mawarid is the main founder, went public in July 2008.[28]

2009

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  • Received further support in its Falak Tayyeb for SMEs campaign when it signed MoUs with Talal Abu-Ghazaleh International[29] and Ruwad establishment.[30]
  • Chosen by the Arab Science and Technology Foundation (ASTF) and the Arab Union of Small Enterprises (AUSE) to organize the First Arab Industrial Enterprises Competition for SMEs. The competition, with an award allocation of $850,000, "aims to encourage and inspire the Arab youth to establish new industrial enterprises".[31]
  • Announced a tie-up with the UAE government to set up a central body to oversee and promote SMEs in the region while continuing to hold forums on the initiative.[32][33]

2010

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  • Strategic focus Shifted to retail investments with new investments made in Al Raya, KSA and Etisalat Misr, Egypt
  • Launched a new scheme, Arbah Investment Club, offering Islamic investment opportunities for its customers.

2011

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Mawarid subsidiary
  • Mawarid launched Mawarid Consultancy which provides banks, private companies and the government with Islamic Banking and Takaful outsourced services.[34]

2012

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  • Adopted investment model of building synergies through acquisition and participation in related businesses
  • Majority stake acquired in Falcon Eye Technology and TACME
  • Strategic businesses built through launch of Mawarid Exchange and partnership with QuickNet

2013

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  • The strategic focus is on emerging as a conglomerate with complementary and supplementary business, while building synergies through shared services model
  • On the financing side, Mawarid entered into pay card and WPS business lines

2014

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  • Mawarid obtained a MasterCard Principal License and launched Falak Tayyeb Credit Cards
  • Entered healthcare through equity participation in Plus International Medical Center

2015

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  • The launch of the Mawarid Group:
    • 12 portfolio companies
    • Developed 22 Islamic banking products
    • Established Mawarid Technology – The largest technology company in the region

References

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  1. ^ a b "2010 Annual Report" (PDF).[dead link]
  2. ^ Souki, Noura. "Mawarid Launch". Mawarid Finance with Dhs1bn paid up capital launches in the UAE. AMEinfo.com. Retrieved 20 June 2011.
  3. ^ "Mawarid Joint-Stock". Mawarid Finance: New private joint stock company. zawya.com. Retrieved 20 June 2011.
  4. ^ Al Husseiny, Yasmine. "Mawarid ad campaign". Mawarid Finance launches Emirati-inspired marketing campaign. zawya.com. Retrieved 20 June 2011.
  5. ^ "SME percentage". Mawarid-government tie-up to boost SMEs. zawya.com. Retrieved 23 June 2011.
  6. ^ "Mawarid Emiratisation". Mawarid backs Emiratisation drive. zawya.com. Retrieved 20 June 2011.
  7. ^ "Uncategorized | Emiratisation".
  8. ^ "Mawarid plans launch of unique e-service". zawya.com. Retrieved 21 June 2011.
  9. ^ "Idea of the Year 2011 award".
  10. ^ English, Mike (2010). 2010 Superbrands. Superbrands- Middle East. p. 76.
  11. ^ "Bahrain First Investment Bank". Mawarid Finance moves into foreign investment. zawya.com. Retrieved 20 June 2011.
  12. ^ Al Husseiny, Yasmine. "Maward Bank Guarantees". Mawarid signs bank guarantee registration agreement with UAE Ministry of Finance and Industry. zawya.com. Retrieved 20 June 2011.
  13. ^ "Mawarid and ETA Star". Mawarid Finance signs financing agreement with ETA Star for Centrium units. zawya.com. Retrieved 20 June 2011.
  14. ^ Baraky, Maysoon. "SMEs services". Mawarid Finance launches its finance services for small and medium enterprises. zawya.com. Retrieved 21 June 2011.
  15. ^ "Falak Tayyeb for SMEs". Mawarid launches Falak Tayyeb for SMEs campaign. AMEinfo.com. Retrieved 23 June 2011.
  16. ^ "Youth Project Discussion". Youth projects support in discussion. zawya.com. Retrieved 23 June 2011.
  17. ^ "Khalifa Fund and Mawarid Discussion Forum". Khalifa Fund and Mawarid Finance Organize Discussion Forum. zawya.com. Retrieved 23 June 2011.
  18. ^ "Mawarid and Saud bin Saqr discussion forum". Organized by Mawarid Finance and Saud bin Saqr Programme in Ras Al Khaimah. zawya.com. Retrieved 23 June 2011.
  19. ^ "MoU with Ajman Businesswomen Council". Ajman Businesswomen Council and Mawarid Finance Conclude Memorandum of Understanding and Prepare for Discussion Forum. zawya.com. Retrieved 23 June 2011.
  20. ^ "Small Enterprises Arab Union". Mawarid Finance joins Arab Union for Small Enterprises. AMEinfo.com. Retrieved 23 June 2011.
  21. ^ "SMEs campaign praised". Saint Mary's University students praise Mawarid Finance experience in SMEs support. AMEinfo. Retrieved 23 June 2011.
  22. ^ Hassan, Eman. "Etisalat Misr stake". Mawarid Finance acquires 1% stake in Egypt Telecommunication Company. AMEinfo.com. Retrieved 23 June 2011.
  23. ^ Hassan, Eman. "Mawarid trustee of Guarantee accounts". Dubai Land Department signs MoU with Mawarid Finance to conduct Guarantee Accounts for property development projects. AMEinfo.com. Retrieved 21 June 2011.
  24. ^ Baraky, Maysoon. "Cayan Partnership". Mawarid to provide investment opportunities for investors in Cayan developments. zawya.com. Retrieved 21 June 2011.
  25. ^ "Certificates of Deposit Issual". New era for Mawarid, entrusted with issuing certificates of deposit. zawya.com. Retrieved 23 June 2011.
  26. ^ "Heath Fund support". MoU signed between MoH and Mawarid Finance. zawya.com. Retrieved 23 June 2011.
  27. ^ Staff Reporter. "Al Jazeera Financial Services Acquisition". Mawarid Finance acquires Al Jazeera Financial Services. zawya.com. Retrieved 23 June 2011.
  28. ^ "Takaful House IPO". "Takaful House" available for public. zawya.com. Retrieved 23 June 2011.
  29. ^ "MoU with Talal Abu Ghazala". Mawarid Finance, Talal Abu Ghazala sign cooperation agreement. AMEinfo.com. Retrieved 23 June 2011.
  30. ^ "MoU with Ruwad". Ruwad partners with Mawarid to fund SMEs. zawya.com. Retrieved 23 June 2011.
  31. ^ "Arab Industrial SME competition". First Arab Industrial SME competition welcomed. zawya.com. Retrieved 23 June 2011.
  32. ^ "SMEs tie-up with government". Mawarid-government tie-up to boost SMEs. zawya.com. Retrieved 23 June 2011.
  33. ^ "Al Ain SMEs forum". Mawarid Finance organizes SMEs forum. AMEinfo.com. Retrieved 23 June 2011.
  34. ^ "IFS Launch". Mawarid Finance Launches IFS. zawya.com. Retrieved 23 June 2011.
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