Dubai Islamic Bank said it has closed its shariah-compliant three-year Commodity-linked Individually Capped Performance (Clip) Note with an asset raising of $38m over four weeks, and once again reiterated its plans to become a regular provider of shariah-compliant structured products.

Head of wealth management Saeed Al Qattami said the bank was overwhelmed by the response: “The scale of the response also signifies the strong appetite for commodities as a viable alternate asset class. DIB's Wealth Management division will continue to drive similar innovation in the marketplace, offering world-class products to discerning investors,” he said. The bank has spent the past year developing the infrastructure for its retail investment platform.

Clip Notes pay a fixed 10% in the first year and a maximum of 8% per annum in the second and third years, depending on the performance of the basket of commodities. The notes are co-branded with issuer Deutsche Bank and have a minimum investment of $10,000. The bank said it had partnered with Deutsche Bank because of its strong track record in developing shariah-compliant products across all asset classes.

In May this year, DIB launched the Al Islami Capital Protected Note. More structured products will be launched as DIB ‘aggressively’ expands its network to 53 branches throughout the UAE by the end of 2007.