The new Emirates Development Bank (EDB) moved a step closer to reality after the Government acquired full ownership of one of two lenders that are being merged.
The Ministry of Finance signed an agreement to buy the remaining 49 per cent of Emirates Industrial Bank (EIB), which is being merged with the Emirates Real Estate Bank (EREB) to create the lender.
The Federal Cabinet passed a draft law in June approving the formation of the Dh10 billion(US$2.72bn) EDB, a move viewed as a first step towards consolidation in the local banking sector, where about 50 banks compete for business. The Government is contributing half of the capital to establish the bank.
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