Dubai Islamic Bank/Bloomberg
The acquisition of Noor Bank will create a lender with AED 277 billion ($75 billion) in assets.
Tuesday 11, June 2019 BY KUDAKWASHE MUZORIWA
The Board of Directors of Dubai Islamic Bank has recommended the lender’s shareholders to consider the acquisition of Noor Bank after obtaining necessary approvals from regulatory authorities.
Dr Adnan Chilwan, the Group CEO of Dubai Islamic Bank, said, “We are confident that this acquisition will build upon the already strong foundations we have established and accelerate our growth in the sector. Islamic finance is increasingly acknowledged as a viable alternative to conventional banking and, through this acquisition, we believe that we can geometrically accelerate the growth and popularity of Shari’ah compliant finance across the region and beyond.”
In a statement, DIB said that post the completion of the acquisition, Noor Bank’s operations will be integrated and consolidated in its operations.
DIB is proceeding with plans to acquire its smaller local rival as the UAE’s biggest Islamic lender joins a regional wave of mergers and acquisitions. The GCC financial-services industry is going through a wave of consolidation as banks seek to improve competitiveness and boost capital amid slowing economic growth.
DIB stated that the acquisition will also result in cost efficiencies and contribute to profitability as well as allowing DIB to offer competitively priced products and services across a more diversified portfolio and is also expected to drive innovation and accelerate the group’s digitisation programme.
HSBC Holdings is advising Dubai Islamic Bank on the deal, while Noor Bank is working with Barclays.