Shareholders have approved Dubai Islamic Bank’s Noor Bank(DIB) acquisition, the local media reported. Dubai Islamic Bank is the UAE’s largest standalone Shariah compliant bank.
The acquisition will be in the form of share swap and capital increase. It will make Dubai Islamic Bank one of the largest Islamic banks worldwide, with combined assets of more than Dh275 billion from Dh230 billion in September. Also, the Dubai Islamic Bank Noor Bank deal is expected to position Dubai as the capital of Islamic economy by further encouraging the bank.
Investment Corporation of Dubai is a common shareholder in both Dubai Islamic Bank and Noor Bank. It is also the largest shareholder in Dubai Islamic Bank with 28 percent stake.
The deal’s completion will give the economy a host of opportunities in banking and finance. It will also ensure that the UAE is at the core of the Islamic economy.
Mohammed Al Shaibani, chairman of Dubai Islamic Bank, told the media that, “Dubai Islamic Bank has enjoyed another outstanding year of growth and success, and we remain determined to continue making our mark both locally, and globally. Dubai Islamic Bank is now the UAE’s biggest Islamic lender with Dh230 billion of assets as of September 30, 2019 and, with the acquisition of Noor Bank, we are on track to expand our footprint in the region and beyond.” Both banks firmly believe that integrating their operations will create a positive impact on shareholder returns.
In November, Noor Bank raised $176 million for the Rasmala Long Income Fund. According to Noor Bank, the fund is the first Islamic finance instrument to invest in long term lease and residential real estate markets in the UK and Europe.