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Amlak looking to buy 'a small bank'
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Islamic mortgage provider Amlak Finance is planning to buy a small bank in the UAE to tap cheaper funds, according to a news report.
"We have renewed our application for a banking licence. However, we are also evaluating options and assessing opportunities to acquire a small bank in the UAE," Amlak Finance's Chief Executive Arif Alharmi told Zawya Dow Jones.
"We are now in a better position to get a banking licence and our team is well positioned to run one of those small banks in the market," he added.
Amlak had applied for a licence to launch an Islamic bank last year, but was not granted approval. It renewed its application in May. Alharmi could not be reached for confirmation.
Meanwhile, Tamweel, which is also nurturing plans for a banking foray, told Emirates Business that it would have taken the acquisition route "had there been any options available in the country".
"There are no banks for sale in the UAE at this time. If there was something we would have considered buying it," Tamweel CEO Wasim Saifi said.
Experts believe a bank acquisition will be one of the best ways to source "cheaper funds" for these mortgage companies, which are looking to expand their horizon across the region.
"Although there are no options available in the UAE, these firms can look at buying banks in various other Middle Eastern countries," a banking analyst said on conditions of anonymity.
"We have renewed our application for a banking licence. However, we are also evaluating options and assessing opportunities to acquire a small bank in the UAE," Amlak Finance's Chief Executive Arif Alharmi told Zawya Dow Jones.
"We are now in a better position to get a banking licence and our team is well positioned to run one of those small banks in the market," he added.
Amlak had applied for a licence to launch an Islamic bank last year, but was not granted approval. It renewed its application in May. Alharmi could not be reached for confirmation.
Meanwhile, Tamweel, which is also nurturing plans for a banking foray, told Emirates Business that it would have taken the acquisition route "had there been any options available in the country".
"There are no banks for sale in the UAE at this time. If there was something we would have considered buying it," Tamweel CEO Wasim Saifi said.
Experts believe a bank acquisition will be one of the best ways to source "cheaper funds" for these mortgage companies, which are looking to expand their horizon across the region.
"Although there are no options available in the UAE, these firms can look at buying banks in various other Middle Eastern countries," a banking analyst said on conditions of anonymity.