By Gavin Gibbon
Merger creates largest Islamic bank in the world with combined assets of over $74.8 billion
Shareholders at Dubai Islamic Bank (DIB) have approved the acquisition of Noor Bank, which consolidates its position as one of the largest Islamic banks in the world with combined assets of over AED275 billion ($74.8bn).
Following the conclusion of is General Assembly Meeting (GAM) it was agreed that Noor Bank’s operations will be fully integrated into DIB, strengthening Dubai’s position as the capital of the Islamic economy.
Mohammed Al Shaibani, chairman of DIB, said: “Completion of this deal will provide opportunities for economic growth, ensuring that the UAE’s financial sector remains at the forefront of the Islamic economy.”
The acquisition will result in cost efficiencies and contribute to profitability, as well as allowing DIB to offer competitively priced products and services across a more diversified portfolio. It’s also expected to drive innovation and accelerate the group’s digitisation programme.
Investment Corp. of Dubai, the emirate’s main state-owned holding company, is the largest shareholder in DIB with a 28 percent stake. It’s also one of the biggest investors in the privately-held Noor Bank, which was set up in 2008.
Dr. Adnan Chilwan, Group CEO, DIB, added: “We anticipate that integrating the two operations will generate significant synergies, leading to improved efficiencies and greater contribution to profitability with positive impact on shareholder returns.”