Questions have been raised recently about whether the Abu Dhabi Islamic Bank is the sixth bank in the capital seeking to integrate, after sources revealed that it is studying strategic options for its business, including plans for the merger.

According to the sources, the bank entered into initial discussions with financial advisors to search for options to merge with a larger banking entity or to acquire a smaller financial bank.

The sources indicated to Bloomberg that the bank prefers the option of acquiring a banking entity rather than being acquired.

This news comes after the announcement of plans to merge 3 banks in Abu Dhabi, namely Abu Dhabi Commercial Bank and United Arab Bank in addition to Al Hilal Bank.

The Emirate of Abu Dhabi is working to formulate mergers to maintain its competitiveness and enhance efficiency and returns, especially after the success of the merger of Abu Dhabi National Bank and First Gulf.

In December 2017, the shareholders of First Gulf Bank and National Bank of Abu Dhabi agreed last December to the proposed merger between the two banks, which resulted in Abu Dhabi’s first entity with total assets of 655 billion dirhams equivalent to 178 billion dollars.

Under the leadership of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, the country also witnessed in October 2007 the merger of Emirates Bank International with the National Bank of Dubai, which resulted in the creation of A large banking entity in the name of Emirates NBD.

Mergers are of great importance among banks in the Gulf countries, which is to strengthen their position amid fluctuating oil prices, which may contribute to slowing the economies of these countries, thus weakening government spending.

The Emirati banking sector consists of 22 national banks and 39 foreign banks with their branches, bringing the total branches to 753 branches.