Dubai Islamic Bank On The Lookout For Potential Acquisitions

Dubai Islamic Bank (DIB) said it “regularly” looks at opportunities to acquire other banks, following a report that it is considering buying its smaller rival Noor Bank.

In a statement posted to the Dubai Financial Market (DFM). DIB said it "regularly looks at opportunities to support expansion of its activities including acquiring other financial institutions in line with the strategy and directions of its shareholders and board of directors."

The statement came in response to a story last month, which cited anonymous sources as saying that DIB – the UAE’s biggest Islamic lender – is considering buyer smaller rival Noor Bank.

According to Bloomberg’s sources, the bank held preliminary discussions with Noor Bank’s shareholders about the acquisition, which would create a lender with $75 billion in assets.

The region’s financial industry is currently witnessing a wave of consolidation as banks look for ways to improve competitiveness and boost capital amid slowing economic growth.

Abu Dhabi, for example, is in the process of merging three banks after combining two in 2017, while banks in Saudi Arabia, Kuwait and Bahrain have also announced merger talks.