UAE mega-bank merger hit by setback

The UAE's Federal National Council, the government's advisory body, on Tuesday failed to agree on a law governing the newly-created Emirates Development Bank, after members questioned the reasons behind the merger of the two smaller banks and the new state-backed bank's role.

Thirteen out of thirty one council members present at the meeting - the council's last before it adjourns for the summer - voted to review the law again from scratch at another meeting.

The FNC "needed more time to make sure how the bank will help develop the housing and industrial sectors", said Younis al-Khoori, the Ministry of Finance's director general.