Dubai Islamic Bank has launched a three-year capital-protected product linked to a basket of stocks listed on the Dubai Financial Market, including Emaar, Amlak, Dubai Investment Company, Tamweel and DIB. Capital Protected DFM Note is a Shariah-compliant note with a maximum annual payout of 12%.

Head of wealth management Saeed Al Qattami said, “This new product is a result of our investor-feedback process and hence we are very bullish about its success. Investors want to be part of UAE stock market, but at the same time, they are wary about its potential volatility.”

Head of investments Naveed Ahmad added that investors had wanted a product with a relatively short tenor and capital protection.

Capital Protected DFM Note is the latest in a series of structured products launched by DIB, the latest of which, Capital Protected Clip Note, recently raised over $38m over four weeks. The bank once again reiterated its plans to become a regular provider of Shariah-compliant structured products as it ‘aggressively’ expands its network to 53 branches throughout the UAE by the end of 2007.

Capital Protected DFM Note has received a fatwa from the Dar Al Istithmar Shariah board and will be open until 30 November. Minimum investment is $10,000.