One of the world’s largest Islamic banks created in the UAE
Dubai Islamic Bank (DIB) had completed the eagerly anticipated acquisition of one of its rivals, Noor Bank, to create a lender with total assets exceeding US$74,85 billion (AED 275 bn), it was announced on Thursday.
The transaction, structured through a share swap, saw DIB issue 651 million new shares to take its issued share capital to 7,2 billion shares. The new DIB shares have been listed and admitted to trading on the Dubai Financial Market (DFM).
In line with the acquisition process, operations of Noor Bank will be completely integrated into DIB.
State-owned Investment Corp of Dubai (ICD) is a common shareholder in both banks, with a 28.37% stake in DIB and a stake of more than 22.7% in Noor Bank.
Mohammed Ibrahim Al Shaibani, chairman of DIB, said: “The acquisition of Noor Bank is a landmark achievement, establishing DIB as one of the largest Islamic banks in the world and amongst the largest banking entities in the UAE. In line with our strategy, the completion of this deal means that we remain ideally positioned to expand our footprint in the region and beyond.”
This is not the first consolidation in the market in recent years. There are 50 commercial banks in the UAE, and the players are currently seeking to increase capital due to the projected slowdown in economic growth.
Year 2017 already saw a merger of the National Bank of Abu Dhabi (NBAD) with the First Gulf Bank, which resulted in a lender with US$175 billion of assets. And earlier this year, three Abu Dhabi banks – Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank – merged to create the third largest credit institution in the UAE with assets worth US$110 billion.