DUBAI: 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_ad id=”31605″]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 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.
Post the completion of the acquisition, Noor Bank’s operations will be integrated and consolidated within DIB.
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.
Mohammed Al Shaibani, Chairman of DIB, commented: “Dubai Islamic Bank (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.
Cost efficiencies, as a result, of the acquisition are expected to contribute to profitability and allow the bank to capitalize on more competitively priced products and services across an increasingly diversified portfolio. Similarly opportunities to drive innovation and accelerate the Group’s digitization program are also expected.
The new size and scale will allow Dubai Islamic Bank (DIB) to expedite its strategy to connect the dots from Far east, sub-continent, and East Africa with Dubai as the hub with new markets and locations opening up for one of the most powerful Islamic bank in the world.