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Dubai Islamic Bank (DIB), amongst the largest Islamic bank in the world 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 Board of Directors of Dubai Islamic Bank convened its meeting on 09/06/2019 and resolved to recommend to the General Meeting of the Bank’s shareholders to consider the acquisition of 100% 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. Post the completion of the acquisition, Noor Bank’s operations will be integrated and consolidated within DIB.
The date and agenda for the General Meeting including the terms and details pertaining to the acquisition will be announced after the same has been approved by competent regulatory authorities.
DIB has consistently outperformed the market over last few years and this acquisition is set to enhance its influence, deliver increased market share and improve operational efficiencies. With the planned acquisition, DIB is set to consolidate its position as the one of the largest Islamic banks in the world with combined assets of nearly AED 275 billion.
The UAE is recognized as sitting at the epicenter of the Islamic economy and this announcement, in addition to supporting the nation’s economic agenda, will further strengthen Dubai’s role as a global hub for Islamic finance, allowing greater investment and growth in key sectors driving Dubai and the UAE.
H. E. Mohammed Al Shaibani, Chairman of DIB, commented:
“DIB has enjoyed unparalleled success over recent years, the result of a successful strategy that has seen the bank outperform the market and play a pivotal role in establishing the UAE as a global hub for Islamic finance. 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, GCEO, 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, digitization, product and business development and most importantly the customer experience.
“We are confident that this acquisition will build upon the already strong foundations we have established and accelerate our growth in the sector. Islamic finance is increasingly acknowledged as a viable alternative to conventional banking and, through this acquisition, we believe that we can geometrically accelerate the growth and popularity of Shari’a compliant finance across the region and beyond.
“With a strong track record and a robust platform, the future can only be positive with the additional scale and reach that we will gain as a consequence of this acquisition. Our focus will remain on providing the highest standards of service and we are committed to integrating the two operations as quickly and effectively as possible in order to provide a seamless experience for our increased customer base.
“This scale will provide greater efficiencies and reduce our operational costs. However, we recognize the importance of maintaining strong governance and will be working tirelessly to embed robust compliance across the group to ensure that our customers, business partners and regulators enjoy the utmost confidence in the new combined operation.”
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