Monday 7 January 2019

#UAE bank bailout signals sector restructuring, mergers | Reuters

UAE bank bailout signals sector restructuring, mergers | Reuters:

Smaller banks in the United Arab Emirates are facing regulatory pressure to merge after the fallout from a property downturn forced the state to lead a bailout of Invest Bank INVB.AD last month.

UAE has 50 commercial banks including 22 local lenders, a number seen as too high in a country of about 9.5 million people. Saudi Arabia, which has a population of 32 million, has 12 banks and is set to lose two of those if announced mergers are successfully concluded.

After two of the UAE’s biggest lenders, First Gulf Bank and National Bank of Abu Dhabi, merged in 2017 to become First Abu Dhabi Bank FAB.AD, three more lenders are in talks to combine, led by Abu Dhabi Commercial Bank ADCB.AD.

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