A joint venture between banking giant IBB Bank Holding of Israel and Abu Dhabi’s NBAD Bank is the largest commercial bank cooperation agreement among Israeli and UAE banks in the country.
“Abu Dhabi’s NBAD and IBB share a passion for expansion and growth and in doing so have become strategic partners for each other. We share similar values as businessmen, and hope to collaborate for the prosperity of our joint venture and the greater economy of Abu Dhabi,” NBAD Chief Executive Officer Mohammed Al Mazrouei said.
NBAD bank launched its UAE Investment Project in 2010 and is based in Abu Dhabi.Largest investments
NBAD Bank, which seeks to offer Middle East real estate investment solutions, acquired 49 percent stake in FT Khan, the largest real estate developer in the UAE.
Based in Abu Dhabi, the bank focuses on commercial loans in the Greater Abu Dhabi region, and in order to reach out to a wider region, has planned the launch of its global arm focused on the Middle East region.
NBAD Bank’s managing director of investment and private banking Tarek Al-Tamimi said: “We consider our partnership with NBAD to be strategic. This is the first partnership in the Middle East that both NBAD and NBAD Bank have together.
“As the second largest lender in the UAE by assets, NBAD Bank’s management capitalises on IBB’s strength in wealth management, infrastructure finance and prudent banking practices to develop the NBAD IBB partnership.”
Since its founding, NBAD Bank has further enhanced its governance and stability by approving the transfer of NBAD assets under the UAE Islamic Bank Authority (UAE Islamic Bank Authority). The transaction was finalized in the first quarter of this year.
In March, NBAD acquired a 23.27 percent stake in EWA Ltd. (Ewakha).
The transaction is expected to be completed in the second quarter of 2019.
The purchase price of Ewakha is $358 million.
IBB Dubai CEO shared: “We are extremely proud of this partnership between NBAD and IBB. The respective bank owners see the potential for a direct deposit and recurring dividend for NBAD Bank shareholders.
“And although NBAD Bank has a strong track record in issuing securities, NBAD is by far the preferred bank partner for NBAD shareholders in Dubai, especially among investors who seek professional advice in the capital markets.”Other banks in Israel
IBB Bank Dubai CEO Mohammad Issa, said the agreement will strengthen IBB’s relationship with all commercial banks in Israel, particularly those that provide deposit-taking services, and help IBB in gaining full access to the opportunities that exist in the local marketplace.
He added that with its large presence, IBB is well placed to serve IBB investors, including those in the oil industry.