FNC delays banking merger over law

The Federal National Council yesterday postponed the creation of the Emirates Development Bank (EDB) amid concerns over the law that would govern it.

The new financial institution was announced in November as a proposed tie-up among the Abu Dhabi-based Emirates Industrial Bank (EIB) and Emirates Real Estate Bank, along with Amlak and Tamweel, two large Dubai-based Islamic mortgage firms.

Since then, however, little new information has emerged about the fate of Amlak and Tamweel, which appear to be pursuing a separate merger. The Cabinet last week approved the formation of the EDB as a merger between the EIB and the Real Estate Bank, according to a report from WAM, the state news agency.