The new Dubai Islamic Bank shares have been listed and admitted to trading on the Dubai Financial Market/Bloombergby Kudakwashe Muzoriwa
Dubai Islamic Bank (DIB) has completed the acquisition of Noor Bank through a share swap deal. As part of the agreement, DIB has issued 651 million new shares to take its issued share capital to 7.2 billion shares.
In a bourse filing, DIB stated that the deal is expected to position DIB as one of the largest Islamic banks in the world with total assets exceeding AED 275 billion.
HE Mohammed Ibrahim Al Shaibani, the Chairman of Dubai Islamic Bank, said, “The acquisition of Noor Bank is a landmark achievement, establishing DIB as one of the largest Islamic banks in the world and amongst the largest banking entities in the UAE.”
The new DIB shares have been listed and admitted to trading on the Dubai Financial Market.
“The acquisition and the ensuing integration is expected to generate significant synergies ensuring robust profitability and returns for the shareholders in the coming years,” said Dr. Adnan Chilwan, the Group CEO of Dubai Islamic Bank.
The GCC financial services industry is witnessing a wave of consolidation as banks seek ways to improve competitiveness and boost capital amid slowing economic growth.
S&P Global Ratings said that Islamic banks in the Arabian Gulf will witness mid-single-digit growth this year due to higher government spending on strategic initiatives and healthy oil prices.
Earlier this week, the National Bank of Bahrain acquired a 78.8 per cent stake in Bahrain Islamic Bank, a deal that is expected to allow the bank to become more effective in markets where Shari’ah-compliant businesses play a vital role.
Similarly, Alizz Islamic Bank’s Board of Directors approved a share swap ratio for the proposed merger with Oman Arab Bank. On completion of the merger, Alizz Islamic Bank will continue to operate as a dedicated Islamic banking franchise with management autonomy which, according to Moodys, would help preserve the Shari’ah compliant bank’s customer relationships.
Kuwait Finance House’s shareholders have also recently approved the acquisition of Bahrain's Ahli United Bank.