Special Report:

Several Emirati banks have taken consecutive and accelerating steps towards integrating their activities, which may change the banking map regionally by creating larger-than-usual banking entities, as well as boosting profits by integrating activities and reducing expenses.

It seems that the merger of First Gulf Bank and National Bank of Abu Dhabi to establish Abu Dhabi First Bank with assets amounting to $ 188 billion, encouraged banks in the country to study this idea that will enable banks to keep pace with the recommendations of the International Finance Institute and the International Monetary Fund to strengthen the sector through the adoption of Size Economics Model.

In the process of consolidation,

Dubai Islamic Bank is studying options for possible acquisition of Noor Bank, in a move that could create an Islamic banking entity with a total assets of 278 billion dirhams, thus becoming one of the largest Islamic banks in the world, especially in the UAE.

In the context, Abu Dhabi Capital Ltd Mohamed Ali Yassin, Chief Executive of Strategies and Clients, stated that Noor Bank's assets represent between 18 to 20% of Dubai Islamic Bank's assets, and thus is a major bank acquisition of a smaller bank.

Yassin suggested that the merger would contribute to saving expenses due to the similarity of the two banks' business, so there might be a closure of some branches.

The latest financial statements of the two banks show that the total assets of Dubai Islamic Bank reached 227 billion dirhams at the end of last March, while the size of Noor Bank's assets reached 51 billion dirhams at the end of last December.

There are also talks about a possible merger between Invest Bank and Sharjah banks to enhance their position in Sharjah, and Shuaa Capital has revealed discussions with the Abu Dhabi Financial Group about the possibility of merging among them, to create a larger financial entity listed in the market. According to a final structure subject to legal and regulatory approvals.

Abu Dhabi Commercial Bank, the National Union and Al Hilal Bank intend to merge, creating the third largest banking institution in the UAE with assets of approximately 420 billion dirhams, equivalent to $ 114 billion, that actively contribute to supporting the Emirati national economy.

The new entity is likely to acquire 21% of the individual loans in the UAE, and the Abu Dhabi government will own 60.2% of it through the Abu Dhabi Investment Council.

Reasons and benefits of the merger

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