Abu Dhabi Islamic Bank (ADIB) plans to save around AED 500 million ($136 million) by cutting jobs and closing branches as sluggish economic growth weighs on the finance industry.

The state-controlled lender which has operations in Egypt, Iraq, Saudi Arabia and the UK is considering closing some local and international branches.

ADIB joins competitors such as First Abu Dhabi Bank (FAB) and Emirates NBD in cutting jobs. The UAE economy is coming under pressure from regional geopolitical tensions and weak domestic demand, while business conditions worsened for the first time in over a decade.

FAB, the UAE’s biggest bank, dismissed hundreds of employees in recent weeks across several divisions. The lender which was created with the merger of two lenders in 2016, has about 5,400 workers globally.

Additionally, consolidation in the Gulf banking sector on the back of tougher competition and regulation has also put pressure on financial sector jobs. Abu Dhabi, home to six per cent of global oil reserves, has stepped up efforts to create leaner and more competitive financial institutions.

Dubai Islamic Bank (DIB) is expected to start a sweeping round of job cuts with planned more than 500 dismissals at newly acquired Noor Bank as part of cost cuts across both lenders.

Source CPI Financial