Monday, September 23, 2019 2:58 AM

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Dubai Islamic Bank to acquire Noor Bank


Dubai Islamic Bank (DIB), the UAE’s first and largest Islamic lender, said, 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 combined asset value is set to reach Dh275 billion post acquisition, it said.

 

“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 percent 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,” a statement said.

 

“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 Dh275 billion, it said.

 

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.”

 

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.

 

The acquisition of Noor Bank further cements DIB’s position as one of the largest and most influential Islamic finance institutions globally, with a long-established track record of financial success, a clearly defined strategy and a robust balance sheet. Whilst Islamic finance has continued to grow at an unprecedented pace, DIB’s organic and inorganic growth strategy will remain aligned to greater innovation and progression of this already fast growing business model.

 

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.

 

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, digitisation, 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.”

 

DIB remains amongst the fastest growing financial institutions in the country and one of the most progressive Islamic banks in the world. To continue this meticulously articulated profitable growth strategy, requires scale and associated economies. The new size and scale will allow 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.

 

Established in 1975, Dubai Islamic Bank is the largest Islamic bank in the UAE by assets and a public joint stock company listed on the Dubai Financial Market. Spearheading the evolution of the global Islamic finance industry, DIB is also the world’s first full service Islamic bank and the second largest Islamic bank in the world. With Group assets in excess of US$60 biillion and market capitalization of nearly US$ 9billion, the group operates with a workforce of more than 8,000 employees and around 500 branches in its vast global network across the Middle East, Asia and Africa. Serving over 3 million customers across the Group, DIB offers an increasing range of innovative Shariah compliant products and services to retail, corporate and institutional clients.

 

DIB has a significant international presence as a torchbearer in promoting Shari’ah-compliant financial services across a number of markets worldwide. The bank has established DIB Pakistan Limited, a wholly owned subsidiary which is the first Islamic bank in Pakistan to offer Priority & Platinum Banking, as well as the most extensive and innovative portfolio of Alternate Distribution Channels. The launch of Panin Dubai Syariah Bank in Indonesia early in 2017 marks DIB’s first foray in the Far East, the bank owns a nearly 40 percent stake in the Indonesian bank.

 

Additionally, in May 2017, Dubai Islamic Bank PJSC was given the license by the Central Bank of Kenya (CBK) to operate its subsidiary, DIB Kenya Ltd. DIB has been designated as D-SIB (Domestic Systemically Important Bank) in 2017 and was also recently upgraded by international agencies with regards to the bank’s credit rating indicating robust capital position, improving asset quality and strong profitability.