Merger forms $10bn bank hub

Dubai Holding has announced the consolidation of its investments in Dubai Islamic Investment Group and Dubai Bank under Dubai Banking Group with combined assets of more than $10 billion (Dh36.7bn).

The new group will operate as a global Shariah-compliant investment company, focusing on investing in Shariah-compliant assets in the Islamic sector, which is expected to continue to grow at a very high rate.

Dubai Banking Group already has investments in Islamic financial institutions in the UAE, including Dubai Bank, and in Kuwait-based Al Fajer Re-takaful, as well as Bank Islam in Malaysia.

Mohammed Al Gergawi, Chairman of Dubai Holding, said the financial services sector is one of the fastest growing sectors in the UAE's economy. "This is a tremendous opportunity for our group and we are confident this strategic step will enhance growth and value creation in the industry and solidify Dubai's position as a leading global financial centre."

Mohammed Al Shaibani, Chairman of Dubai Bank, said the bank has made significant progress on all fronts and across various business initiatives within retail, corporate and investment banking.

"I am confident that through Dubai Banking Group, we will be able to capitalise on the opportunities presented and also expand its banking and investment portfolio on a global scale."

Soud Ba'alawy, Executive Chairman of Dubai Group, said: "The market for Shariah-compliant investments and financial services continues to grow very rapidly. Dubai Banking Group will be one of the clear leaders in this market and will continue to aggressively target significant direct investments and acquisitions in a wide range of sectors across the world's biggest Islamic markets, including the Gulf Co-operation Council, South-East Asia, and Africa."

Dubai Banking Group will be managed by Dubai Group, the leading diversified financial services company of Dubai Holding. Dubai Group, through its subsidiary Dubai Islamic Investment Group, is credited with the rapid turnaround of Bank Islam in Malaysia to a profitable institution. According to the Dubai Holding statement, the consolidation came in line with Vision 2015, which highlights the development of the financial services sector in Dubai as a catalyst for future growth and economic diversification of Dubai's resources.