Dubai Islamic Bank (DIB) 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.
The DIB's board meeting on Sunday recommended its shareholders consider the takeover of 100 percent 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, the Bank said in a statement on its website on Monday.
With the planned acquisition, DIB is set to consolidate its position as one of the largest Islamic banks in the world with combined assets of nearly AED275 billion, the statement said.
The DIB said it has consistently outperformed the market over last few years and the acquisition is set to enhance its influence, deliver increased market share and improve operational efficiencies.
Mohammed Al Shaibani, Chairman of DIB, commented: "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."
Dr. Adnan Chilwan, Group CEO of Dubai Islamic Bank, commented: "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.
"The economics of the deal will allow us the opportunity to capitalize on synergies, notably cost efficiencies, digitisation, product and business development and most importantly the customer experience."