The Board of Directors of Dubai Islamic Bank convened its meeting on 09/06/2019 and resolved to recommend to the General Meeting of the Bank’s shareholders to consider the acquisition of 100% shares of Noor Bank. This will be done after obtaining all necessary approvals from the competent regulatory authorities, and taking all legal procedures related to the evaluation as per the Commercial Companies Law.
Post the completion of the acquisition, Noor Bank’s operations will be integrated and consolidated within DIB. The UAE is recognized as sitting at the epicenter of the Islamic economy and this announcement, in addition to supporting the nation’s economic agenda, will further strengthen Dubai’s role as a global hub for Islamic finance, allowing greater investment and growth in key sectors driving Dubai and the UAE.
E. Mohammed Al Shaibani, Chairman of DIB, commented, “DIB has enjoyed unparalleled success over recent years, the result of a successful strategy that has seen the bank outperform the market and play 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. Innovation and service excellence sits at the very heart of our business and this will continue as we build scale through this acquisition and develop fresh new ways to improve the banking experience for our customers. In addition, this announcement will provide opportunities for economic growth and prosperity across the region, ensuring that the UAE’s financial sector remains at the forefront of the Islamic economy.”
Dr. Adnan Chilwan, GCEO, Dubai Islamic Bank, commented, “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.”
“We are confident that this acquisition will build upon the already strong foundations we have established and accelerate our growth in the sector. 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,” said Dr. Chilwan.
“With a strong track record and a robust platform, the future can only be positive with the additional scale and reach that we will gain as a consequence of this acquisition. Our focus will remain on providing the highest standards of service and we are committed to integrating the two operations as quickly and effectively as possible in order to provide a seamless experience for our increased customer base,” added Dr. Chilwan.
“This scale will provide greater efficiencies and reduce our operational costs. However, we recognize the importance of maintaining strong governance and will be working tirelessly to embed robust compliance across the group to ensure that our customers, business partners, and regulators enjoy the utmost confidence in the new combined operation,” explained Dr. Chilwan.
The acquisition of Noor Bank further cements DIB’s position as one of the largest and most influential Islamic finance institutions globally, with a long-established track record of financial success, a clearly defined strategy, and a robust balance sheet. Whilst Islamic finance has continued to grow at an unprecedented pace, DIB’s organic and inorganic growth strategy will remain aligned to greater innovation and progression of this already fast growing business model.
Cost efficiencies, as a result, of the acquisition are expected to contribute to profitability and allow the bank to capitalize on more competitively priced products and services across an increasingly diversified portfolio. Similarly, opportunities to drive innovation and accelerate the Group’s digitization program are also expected. DIB remains amongst the fastest growing financial institutions in the country and one of the most progressive Islamic banks in the world.
To continue this meticulously articulated profitable growth strategy requires scale and associated economies. The new size and scale will allow DIB to expedite its strategy to connect the dots from the Far East, sub-continent, and East Africa with Dubai as the hub with new markets and locations opening up for one of the most powerful Islamic bank in the world.