Emirates NBD takes over Dubai Bank

Emirates NBD Bank, the largest lender in the United Arab Emirates, has taken over Islamic lender Dubai Bank on orders of the ruler of Dubai, a press statement of the Dubai Government Media Office stated on Tuesday.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as the ruler of Dubai, has given orders that Emirates NBD take over Dubai Bank, the statement said.

The Dubai Government is keen to take the necessary steps to empower financial institutions to fully operate in a way that serves the national economy and consolidate the country's position as a first class international financial hub, the statement added.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates NBD stressed that this step is a practical translation of Dubai Government's commitment to implement comprehensive and integrated financial and economic approach that contributes to strengthening the domestic banking sector and enhancing the UAE's leading financial position in the Gulf and Middle East.

Sheikh Ahmed expressed confidence that the takeover would achieve its fruitful objectives shortly and would reflect positively on the performance of UAE banking in general in the coming period.

He indicated that adopting a flexible approach and taking initiative are the core of the Dubai Government's perspective that enables it to deal successfully with global economic changes, especially during the past few years by applying a series of strategic and decisive steps as per the directives of His Highness the Ruler of Dubai in keeping up with market demands and providing supportive environment to business sectors.

Dubai Bank was acquired in May by the government of Dubai, which pledged to inject capital into the lender.

At the time, the government said the takeover would ensure that Dubai Bank's business continues uninterrupted.

Dubai Bank posted a net loss of Dh290.6 million ($79.2 million) in 2009, the last financial results to be made public.

Before the takeover, Dubai Bank was jointly owned by Dubai Holding, with a 70 per cent stake, and Emaar, Dubai's main property corporation, with 30 per cent.

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