Business | Banking
Reactions on the EBI-NBD merger
Gulf News asks experts and professionals what they think about the merger of Emirates Bank International and National Bank of Dubai.
- Staff Report
- Published: 23:37 May 3, 2009
- Emirates Bank International and National Bank of Dubai have merged to form the UAE's biggest bank.
- Image Credit: Gulf News
Gulf News asks experts and professionals what they think about the merger of Emirates Bank International and National Bank of Dubai.
"The Central Bank and its board support this merger and any similar mergers to face the increasing financial and economic challenges locally and internationally, which necessitate that banks' management should consider seriously the means of upgrading performance and enhancing competitiveness. These requirements come in times of increasing calls to liberalise the banking and financial services."
Sultan Bin Nasser Al Suwaidi
Governor, UAE Central Bank
"This is a very positive move that comes at a time when the region is heading towards greater economic integration, taking into consideration the size of other regional banks such as those in Saudi Arabia."
Haissam Arabi
General manager, Shuaa Asset Management
"We have officially requested both banks to provide us with the details of this merger, including the timeframe, shares and other details. They already responded, but we are still waiting for more details."
Eisa Kazim
Director-General of Dubai Financial Market
"I think that this merger will trigger further consolidation activity in the banking sector. The Gulf region has yet to produce a truly regional bank with the size and range to compete head to head with the major international banks. This combination has the potential to be a significant move in that direction."
Anees Sadek
Office Managing Partner, Deloitte & Touche Middle East
"We have agreed with the DFM to suspend trading up to the time we receive the necessary details; we are still waiting for that. Suspension of trading can be lifted tomorrow if we receive the information before the session begins."
Abdullah Al Turaifi
Chief of Emirates Securities and Commodities Authority
"It would be important to see how a large bank is going to be regulated. We need to know the benefits in retail and corporate banking. It will also be important to know its regional expansion plans."
Rushdi Seddiqi
An Islamic finance expert
"I believe there will be a wave of mergers and acquisitions throughout the region. Other banks in the UAE may consider similar moves."
Nasser Saidi
Chief economist at the Dubai International Financial Centre
"This merger would also definitely affect investor wealth; however, the extent to which the respective share values are going to be affected would depend on the share swap arrangement."
Raju Menon
Managing partner at Morison Menon Chartered Accountants
"This is an important and very positive development for the property sector. If a bank has a greater capital base, it raises the banking limits for property developers, potentially giving us the capital to finance even more significant projects."
Abid Junaid
Executive Director at property developer ETA Star
Share this article
Related Articles
-
Analysts say decision will be good for Dubai
Analysts say decision will be good for Dubai
-
What to expect from new entity
What to expect from new entity
-
Two decades on, economic setting has changed
Two decades on, the economic setting for bank mergers has changed
-
Dubai merger creates UAE's largest bank
Emirates Bank-National Bank of Dubai merger to create UAE's largest bank
-
Bank merger to help UAE extend reach
Big bank merger to help UAE take on foreign competition
-
Financial experts welcome merger of Dubai banks
Financial experts say merger of Dubai banks will spur wave of consolidation
Popular in Business
-
General
Precious jump
Gold prices at new high as India's central bank buys $6.7b worth of gold
Business Editor's choice
-
Sweet life in the Middle East
A sweet look at the confectionary industry in the UAE and Middle East
-
Passion for pets can be expensive
Responsibility and time spent add to costs for furry friends
-
Facebook farm game under cloud
Mobile phone contracts can be used to buy virtual money
