GCC Islamic banks headed for more M&A deals | Banking – Gulf News

GCC Islamic banks headed for more M&A deals | Banking – Gulf News:

Mergers and acquisitions (M&A) among Islamic banks across the GCC region are expected to pick up pace to boost their competitive position in an increasingly overbanked region, according to a recent report from Fitch Ratings

“Islamic bank mergers and acquisitions in the GCC region are likely to increase as many Islamic banks still lack the market position needed to compete with large established peers, particularly in overbanked markets such as the UAE,” Fitch Ratings said.

Consolidation, according to the rating agency, should ultimately be positive for the Islamic banking sector by creating larger, stronger and more efficient Islamic banks.