Dubai Islamic Bank (DIB) is set to acquire Noor Bank in a deal which will create combined assets of AED 275bn. Its board of directors agreed on 9 June to recommend buying 100% of Noor Bank after obtaining all regulatory approvals, a statement said.

The date and agenda for the general meeting of shareholders including the terms and details about the acquisition will be announced after the same has been approved by competent regulatory authorities.

Post the completion of the acquisition, Noor Bank’s operations will be integrated and consolidated within DIB.

Mohammed Al Shaibani, chairman of DIB, said it had outperformed the market in recent years and played “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.”

Dr Adnan Chilwan, group CEO of DIB, said:

“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.”

He added: “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.”

Source International Adviser