Private investors sell 49% stake in EIB to government

Private sector investors yesterday agreed to sell their 49 per cent stake in the Emirates Industrial Bank (EIB) to the Federal Government.

The Ministry of Finance previously owned 51 per cent of the bank and the government now becomes the sole owner. A number of investors held 49 per cent of the stake, who agreed unanimously to the sale.

The move is intended to speed up the merger of EIB with Emirates Real Estate Bank (EREB) to create Emirates Development Bank (EDB), which will have a capital of Dh10 billion. The formation of EDB was approved by the Cabinet last week and the new bank is expected to be wholly-owned by the government, which has pledged to contribute Dh5bn to the venture. The merger will be one of the largest to have taken place in the UAE's financial sector.