Dubai Islamic Bank has invested in Türkiye’s T.O.M. Group, a deal that gives the shariah-compliant bank a minority stake in T.O.M. Katılım Bankası – Türkiye’s first licensed digital Retail Bank and T.O.M. Pay Elektronik Para ve Ödeme Hizmetleri.
DIB’s entry strategy revolves around the acquisition of a significant minority stake into the T.O.M. Group which is an integrated, comprehensive financial services group established in the digital space. DIB will acquire 20% shareholding across T.O.M. Group with an option to increase shareholding to 25% within 12 months.
Aydın Group, T.O.M. Group’s founding shareholder with its new partner DIB, aims to make T.O.M. Group a national leader with an aspiration to grow regionally in the digital banking and financial technology sector.
The shareholders’ core mandate is to promote financial inclusion by facilitating, easing and enhancing access to digital financial services in Türkiye.
“Central to our growth ambitions has been the bank’s ability to effectively formulate winning strategies amidst shifting industry dynamics. Our entry into the Turkish banking sector through the investment in a digital financial group represents this dynamic approach to an ever-evolving market environment,” said Dr. Adnan Chilwan, DIB Group CEO.
“DIB is of the view that digital banking propositions in Türkiye and other markets will enhance our efforts to provide financial services to mass population segments, including the underbanked and non-banked segments. We believe this deal in Türkiye will lay the groundwork for further initiatives in other key strategic markets for DIB.”
The deal is a clear demonstration of DIB’s increased commitment and trust into Türkiye’s financial system and represents a compelling opportunity to tap into fast scaling digital banking and financial technology sector in Türkiye.
DIB has long held the view that Türkiye was an attractive investment destination for a financial services institution, particularly for an Islamic bank over the medium to long term.
This belief was largely premised on the attractive and robust long-term macroeconomic fundamentals of the market which fueled the country’s continued ability to attract foreign investment, despite short-term market fluctuations.
“The partnership we have established with DIB in the early stages of T.O.M. Group’s journey is highly encouraging and shows that T.O.M. Group is on track with its mission to provide affordable financial services to its customers. We hope to make T.O.M. Group, which has been established under the Aydın Group’s umbrella, a regional and a global leader in digital participation banking, aiming to provide access to financial services and promote inclusivity by encompassing segments beyond the traditional banking system,” said T.O.M. Group CEO Onur Özkan.
The transaction has been approved by the Banking Regulation and Supervision Agency , the Central Bank of the Republic of Türkiye and the regulatory authorities in the UAE, and will be formalised after the clearance of the Turkish Competition Authority.
