German car-giant conforms to Islamic law

Daimler Islamic Law

The German luxury car maker Daimler said last week that it would be launching a financial services unit in the United Arab Emirates to offer credits which conform to Islamic law.

Daimler's financial division has created a joint venture with importers of Mercedes-Benz automobiles in Abu Dhabi and Dubai to offer loans and leasing for new and used vehicles, "including a sharia compliant Islamic finance product," the company said in a statement to Middle East Online.

A principle of Islamic law is that borrowing and lending should take place without the payment of fixed interest

Daimler said it aimed for a medium-term contract volume of 300 million euros (440 million dollars).

"Our presence in the United Arab Emirates is of high strategic importance for Daimler Financial Services," the statement quoted Daimler Financial Services chief executive Juergen Walker as telling a press conference in Abu Dhabi.

He said Daimler would be the first automaker to have its own finance and leasing company in the UAE.

The UAE represent Mercedes-Benz' primary Middle Eastern market, with sales of 7,800 cars and 3,100 commercial vehicles last year in Abu Dhabi, Dubai, Sharjah and the Northern Emirates.

Daimler also has two major Middle Eastern shareholders, state-owned funds based in Abu Dhabi and Kuwait.

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