Islami Bank plans to open representative office in Dubai

Islami Bank Bangladesh has recently sought regulatory approval to set up a representative office in Dubai to facilitate trade and remittance earnings from the Middle East.

This is a first for the bank, said Md Mahbub ul Alam, managing director of Islami Bank, citing another aspect of the business expansion.

The move comes following the Dubai government turning strict on the presence of foreign bank agents. Currently, the Islami Bank has 12 agents in Dubai whose visas have not been renewed, affecting remittance collection for the bank.

Islami Bank also does not have any exchange house or branch in the gulf countries. 

A senior Bangladesh Bank executive said the proposal was being reviewed as money was likely to be sent to Dubai for office expenses.

Janata Bank has three branches in the United Arab Emirates (UAE), a major remittance hub for Bangladesh.

Bangladesh received $231.65 million in remittance in July from the UAE, the second highest among the Gulf countries.

Remittance increased around 16 percent year-on-year to $2.42 billion in 2017-18, according to central bank data.