National Bank of Abu Dhabi has begun commercial banking operations in Jordan and will use it as a base to expand in neighbouring markets, bank officials said on Monday.
Abu Dhabi’s largest bank by market value was granted approval by the Central Bank of Jordan (CBJ) last August to set up a subsidiary with a minimum capital of $71 million, as stipulated by the country’s banking regulations.
Imad Marar, general manager of the bank’s Jordanian unit, said: “We are now receiving customers and plan to grow in the Jordanian market and use it as a base to expand in neighbouring markets.”
The bank will become the ninth foreign bank licensed to operate in a sector where 15 local banks already exist.
Liberalised laws allow foreign banks to engage in the same retail and wholesale banking services as Jordanian banks.
Among foreign banks that already operate in Jordan are HSBC, Standard Chartered, Citigroup, Iraq’s Rafidain Bank, National Bank of Kuwait, and Lebanon’s Bank Audi and Blom.
Arab investors already hold sizeable stakes in several leading local banks, including Arab Bank and Housing Bank, the two largest lenders.
The last foreign entrant in Jordan was Dubai Islamic Bank, which started operations earlier this month after a management deal with Industrial Development Bank of Jordan in which it bought a majority stake along with a consortium of investors. (Reuters)
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