Gulf banks ‘ripe for consolidation’ following FAB deal

Gulf banks ‘ripe for consolidation’ following FAB deal:

"When Abu Dhabi’s two biggest banks announced their $29bn “merger of equals” last year, the implications were more significant than just for the fortunes of the optimistically named FAB, or First Abu Dhabi Bank.  The bigger question was whether the merger of National Bank of Abu Dhabi and First Gulf Bank would spark a wave of consolidation for the more than 100 banks in the Gulf Cooperation Council (GCC) region. Opinions are divided as to whether FAB will be a catalyst for regional consolidation or a false dawn like the 2007 merger of Emirates and National Bank of Dubai.  “People saw Emirates NBD as the trigger for one of the biggest bank consolidations in Emea [Europe, the Middle East and Africa],” says one Dubai-based investment banker, who did not want to be named. “That was a very big mistake.” "



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