Dubai Islamic Bank is considering the acquisition of Noor Bank, citing informed sources that the bank had initially consulted with shareholders of Noor Bank, adding that the consultations were still in the early stages and might not lead to a deal. But if the deal is done, it will create a bank with $ 75 billion in assets. Noor Bank’s spokesman said the bank was not commenting on market speculation.
This comes at a time when more and more mergers and acquisitions are taking place in the banking sector with the aim of establishing major banking institutions to finance projects in the region, as well as raising efficiency and reducing operating expenses.
Gulf markets are looking for mergers in the banking sector among 11 banks operating in the region, with total assets approaching assets of $ 500 billion, according to news reports.
Saudi Arabia’s merger deals include Al Ahli Commercial Bank and Riyadh with total assets of more than $ 180 billion and the merger of First and Saudi British Bank with expected assets of $ 76.7 billion.
In the UAE, Abu Dhabi Commercial Bank, National Union, and Al Hilal are negotiating to form an entity with assets of $ 113 billion. Kuwait Finance House plans to merge with Al Ahli United Bank of Bahrain with assets of $ 92 billion.