Gulf’s betting big on banking consolidation, and it will pay off | Analysis – Gulf News:
GCC economies were moving towards more sustainable ways well before the COVID-19 pandemic struck. This was caused by the 2016 oil price crash, an event that left a great impact on the region’s economy and relatively similar to what we are witnessing today.
The markets took into consideration all possible outcomes at the time, and governments made tough precautionary measures along with coming up with a transformational plan towards creating more crisis-tolerant economies. This reshaped the business environment over the past five years.
Large businesses merged to form stronger entities; new government legislations to improve the business environment were introduced; and incentives were brought for foreign investors who could offer added value to the economy. Without all of that progress, we would have seen more devastating outcomes from this pandemic.
The financial sector recorded a succession of mergers, starting with First Abu Dhabi Bank, formed from the coming together of National Bank of Abu Dhabi and First Gulf Bank and creating the region’s second largest financial institution. The merger was approved on December 7, 2016, and FAB shares started trading on April 2, 2017. The third largest financial institution is also based in the UAE, and was a result of a merger between National Bank of Dubai (NBD), established on June 19, 1963, with Emirates Bank International. On March 6, 2007, Emirates NBD was formed and the shares were listed on October 16, 2007.
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