The acquisition would create a lender with $75 billion in assets.
Monday 08, April 2019
(Bloomberg) --Dubai Islamic Bank is considering buying its smaller rival Noor Bank.
The bank has held preliminary discussions with Dubai-based Noor Bank’s shareholders, discussions are said to be at an early stage and may not lead to a deal.
The Middle East’s financial industry is witnessing a wave of consolidation as banks seek ways to improve competitiveness and boost capital amid slowing economic growth. Abu Dhabi is in the process of merging three of its banks after combining two in 2017.
Banks in Saudi Arabia, Kuwait and Bahrain are also holding merger talks.
Investment Corporation of Dubai, the Emirate’s main state-owned holding company, is the largest shareholder in Dubai Islamic Bank with a 28 per cent stake. It’s also one of the biggest investors in Noor Bank, a lender set up in 2008.
Dubai Islamic Bank had assets of AED 224 billion ($61 billion) at the end of 2018 compared with Noor Bank’s AED 51 billion.