U.S. $300 million donation for Dubai Islamic Bank

Islamic banks agreed on Monday to collect some U.S. $300 million to support Dubai Islamic Bank which faced financial difficulties during April. In a statement, the Islamic Bank for Development said the decision was taken in a meeting held on Monday in Jeddah by representatives of seven Islamic banks from Arab countries.

The statement added that participants in the meeting also agreed to a plan to found an Islamic bank to provide financial aid to Islamic banks which face financial problems.

The central bank in the United Arab Emirates announced last month that it appealed to the government of Dubai to protect creditors after Dubai Islamic bank -- one of the largest Islamic banks in the world -- faced financial discrepancies.