Google+ Followers

Tuesday, 11 October 2011

Emirates NBD to Take Over Dubai Bank After Government Rescue - Businessweek

Emirates NBD PJSC, the United Arab Emirates biggest lender by assets, will take over Dubai Bank PJSC after the company was rescued by Dubai’s government following loan losses.

"The takeover would achieve its fruitful objectives shortly and would reflect positively on the performance of U.A.E. banking in general in the coming period," Emirates NBD Chairman Sheikh Ahmed bin Saeed Al Maktoum said in a statement from the Media Office of Dubai. The takeover was ordered by the ruler of Dubai, it said.

Dubai Bank, an Islamic lender owned by Dubai Holding LLC and Emaar Properties PJSC, was rescued by Dubai’s government in May after loan losses increased. Dubai Holding, a company owned by Dubai’s ruler, held a 70 percent stake in Dubai Bank, while Emaar Properties PJSC owned the rest.