Mawarid Finance Explained

Mawarid Finance
Key People:	Omran Sultan Abdullah Al Owais, Chairman Abdul Ghaffar Al Sayed Mohammed Al Hashimi, Deputy Chairman Mohamed Ali Musabbeh Al Neaimi, CEO
Industry:	Shari'a Compliant Financial Services
Services:	Floos- 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
Assets:	AED 1.59 billion^[1]
Equity:	AED 1.13 billion
Subsid:	Mawarid Exchange Mawarid Securities Mawarid Technology Mawarid Consultancy Plus Medical Dar Al Takaful MFI Investments
Foundation:	2006
Location Country:	United Arab Emirates
Homepage:	http://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

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

• 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

2007

• Moved outside UAE by becoming one among the establishing investors who set up First Investment Bank, an Islamic investment company in Bahrain.^[11]
• Authorized by 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]
• 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

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

• 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

• 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

Mawarid subsidiary

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

2012

• 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

• 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

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

2015

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

Notes and References

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