Dubai Islamic Bank (DIB), amongst the largest Islamic banks in the world is set to acquire Noor Bank, enhancing Dubai’s position as the capital of Islamic economy and creating the region’s most powerful Shari’a banking group.
DIB has consistently outperformed the market over last few years and this acquisition is set to enhance its influence, deliver increased market share and improve operational efficiencies, said a statement from the bank.
With the planned acquisition, DIB is set to consolidate its position as the one of the largest Islamic banks in the world with combined assets of nearly Dh275 billion ($75 billion).
The UAE is recognized as sitting at the epicenter of the Islamic economy and this announcement, in addition to supporting the nation’s economic agenda, will further strengthen Dubai’s role as a global hub for Islamic finance, allowing greater investment and growth in key sectors driving Dubai and the UAE.
Dubai Islamic Bank said its board of directors convened a meeting yesterday (June 9) and resolved to recommend to the General Meeting of the bank’s shareholders to consider the acquisition of 100% shares of Noor Bank after obtaining all necessary approvals from the competent regulatory authorities, and taking all legal procedures related to the evaluation as per the Commercial Companies Law.
Post the completion of the acquisition, Noor Bank’s operations will be integrated and consolidated within DIB, said the statement from the bank.
The date and agenda for the General Meeting including the terms and details pertaining to the acquisition will be announced after the same has been approved by competent regulatory authorities, it added.
Chairman Mohammed Al Shaibani said: "DIB has enjoyed unparalleled success over recent years, the result of a successful strategy that has seen the bank outperform the market and play a pivotal role in establishing the UAE as a global hub for Islamic finance."
"This acquisition is another step in our plans to expand in the region and beyond.“Innovation and service excellence sit at the very heart of our business and this will continue as we build scale through this acquisition and develop fresh new ways to improve the banking experience for our customers."
"In addition, this announcement will provide opportunities for economic growth and prosperity across the region, ensuring that the UAE’s financial sector remains at the forefront of the Islamic economy," he added.
Group CEO Dr Adnan Chilwan said: "The acquisition of Noor Bank is in line with our disciplined yet flexible growth strategy which strikes the perfect balance between market dynamics and shareholder interest."
"We have always been open to both organic and inorganic growth as long as profitability and returns are protected and this transaction is no different," noted Dr Chilwan.
"The economics of the deal will allow us the opportunity to capitalize on synergies, notably cost efficiencies, digitization, product and business development and most importantly the customer experience," he noted.
"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’a compliant finance across the region and beyond," remarked Chilwan.
"With a strong track record and a robust platform, the future can only be positive with the additional scale and reach that we will gain as a consequence of this acquisition," he added.-TradeArabia News Service