Companies

DIB Joins in $1.85 Billion Sovereign Financing to Olam Agri

Dubai Islamic Bank (DIB), the world’s first Islamic bank and the largest in the UAE, has announced its participation, alongside a group of international lenders, in a landmark $1.85 billion syndicated dual-tranche financing facility extended to Olam Agri, a leading global agri-business.

DIB acted as the senior mandated lead arranger and investment agent for the Islamic tranche, reinforcing its role as a leading provider of Shariah-compliant cross-border financing for high-impact sectors. 

The three-year facility will be used for general corporate purposes and reflects the continued growth of values-driven finance in global markets, DIB said in a statement.

Olam Agri is majority-owned by Singapore’s Olam Group with a significant minority stake held by the Saudi Agricultural and Livestock Investment Company (SALIC), a wholly owned subsidiary of the Public Investment Fund (PIF), with Singapore’s Olam Group retaining a minority stake.

Olam Agri operates across grains, edible oils, rice, animal protein, and cotton, and handled over 45 million metric tons in 2024.

The company plays a critical role in enhancing food security and supply chain resilience across global markets. The transaction adds to DIB’s growing portfolio of Islamic syndications across emerging sectors, demonstrating the bank’s ability to channel Islamic capital into industries of global significance.

Demand for Islamic Liquidity Grows

Ali Ahmad, Chief of Investment Banking at DIB, said that this was their first deal with Olam Agri and the transaction is a clear reflection of the growing global demand for Islamic liquidity — not as an alternative, but as a core instrument for financing the real economy.

DIB’s role in leading the Islamic tranche demonstrates DIB’s ability to bring structure, scale, and certainty to complex, cross-border mandates. Beyond its economic contributions, agri-finance is essential to building resilient food systems and strengthening supply chains, he said.

By supporting this sector through a Shariah-compliant framework, DIB has reinforced its belief that Islamic finance has a central role to play in addressing global sustainability challenges.

This includes advancing inclusive economic growth, promoting responsible resource use, and fostering innovation across industries, he said.

“We view Islamic finance as a forward-driving force — one that is not just aligned with global capital markets, but actively shaping their future through values-led structures and real-economy outcomes,” he said.

The transaction also reflects Dubai Financial Market (DFM) listed lender commitment to supporting the United Nations Sustainable Development Goals (SDGs), particularly those focused on inclusive economic growth, sustainable infrastructure, and global partnerships.

By financing companies that integrate sustainability and innovation into their core operations, DIB continues to advance its mission of enabling long-term, ethical impact through Islamic finance, the statement added.

Olam Agri is majority-owned by the Saudi Agricultural and Livestock Investment Company, a vehicle owned by Saudi Arabia’s Public Investment fund,

Global Business Magazine

Recent Posts

Dubai Emerges as a New Listing Hub as Yuan Bonds Gain Ground in the Middle East

Dubai is steadily positioning itself as a preferred destination for debt and equity listings as…

1 week ago

DUBAI REAL ESTATE SHOWS STRENGTH AS DEVELOPERS DRIVE SALES ACROSS LUXURY AND AFFORDABLE SECTORS

Emaar maintains market leading position while Binghatti rises as city’s top developer in total sales volume…

1 week ago

IMF Executive Board Completes the Fourth Review under the Extended Credit Facility Arrangement for Ethiopia

The IMF Executive Board completed the fourth review of the arrangement under the Extended Credit…

1 week ago

Nisus Finance Bets Big on Dubai Residential Market with ₹536 Crore Motor City Acquisition

Nisus Finance Services Company Limited (NiFCO) has made its largest property investment in the United…

1 week ago

Gulf Markets Slide as Saudi-UAE Tensions over Yemen Rattle Investors

Gulf equity markets ended mostly lower as renewed Saudi-UAE tensions over Yemen rattled investor confidence

2 weeks ago

RELEASE OF THE JANUARY 2026 WORLD ECONOMIC OUTLOOK UPDATE

The International Monetary Fund (IMF) will release the January 2026 World Economic Outlook (WEO) Update…

2 weeks ago