Dubai Islamic Bank at Bur Dubai. The acquisition of Noor Bank by DIB will make DIB one of the largest Islamic banks in the world with combined assets of over Dh275 billion. Image Credit: Arshad Ali/Gulf News Archive

Dubai: The General Assembly Meeting (GAM) of Dubai Islamic Bank (DIB) has approved the acquisition of Noor Bank, DIB said in a statement on Wednesday .

The acquisition cements DIB’s position as one of the world’s largest Islamic finance institutions, and is expected to enhance Dubai’s position as the capital of Islamic economy by creating the region’s most progressive Shari’a banking group.

“DIB has enjoyed another outstanding year of growth and success, and we remain determined to continue making our mark both locally, and globally. DIB is now the UAE’s biggest Islamic lender with Dh230 billion of assets as of September 30, 2019 and, with the acquisition of Noor Bank, we are on track to expand our footprint in the region and beyond. Completion of this deal will provide opportunities for economic growth, ensuring that the UAE’s financial sector remains at the forefront of the Islamic economy,” said Mohammed Al Shaibani, Chairman of DIB,

Shareholders gave their approval for the acquisition, through the increase of bank’s capital from 6,589,585,179 Bank shares to 7,240,744,377 shares in line with the approved share swap ratio of 1 new share in DIB for every 5.49 Noor Bank shares which translates into an issuance of 651,159,198 new DIB shares.

DIB has consistently outperformed the market over last few years and, with the planned acquisition, DIB is set to consolidate its position as one of the largest Islamic banks in the world with combined assets of over Dh275 billion.

“We are confident that this acquisition will build upon the already strong foundations we have established and accelerate our growth in the sector. With a strong track record and a robust platform, the future can only be positive with the additional scale and reach that we will gain as a consequence of this deal. We anticipate that integrating the two operations will generate significant synergies, leading to improved efficiencies and greater contribution to profitability with positive impact on shareholder returns,” said Dr. Adnan Chilwan, Group CEO, Dubai Islamic Bank.