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Emirates Bank, NBD will merge to create largest bank in ME

DUBAI — Dubai Emirates Bank International (EBI) and National Bank of Dubai (NBD), two of UAE’s leading lenders, are set to merge to create a $45 billion entity, billed as the largest financial institution in the GCC and the Middle East and North Africa (MENA) region.

“The merger is taking place between EBI and NBD to establish the largest bank in the MENA region. The new bank, which is yet to be named, will have total assets of around Dh165 billion,” said Sulaiman Al Mazroui, Chief Manager of Group Affairs of EIB.

According to official sources, Emirates Bank Chairman Ahmed Al Tayer will be the Chairman of the new bank, while Abdulla Saleh, Chairman of the NBD, will be the Vice-Chairman.

The merger talks between the two banks have been going on for several years. But yesterday’s surprise decision was reached after getting the approval from His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. Speaking to Khaleej Times, Al Mazroui said since several issues have yet to be hammered out, more details of the merger and the final shape of the new entity would be released in due course.

Banking sources said the merger of the two local banking majors signals the beginning of the consolidation phase of the UAE’s vibrant banking sector which will have to face increasing competition from global banking giants. The Dubai government owns around 14 per cent of NBD, the emirate’s fourth largest lender by market value, and about 77 pc of Emirates Bank, the biggest lender in Dubai.