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Dubai Islamic Bank to increase foreign ownership limit from 25% to 40%

Dubai Islamic Bank foreign ownership limit
The bank’s board of directors at Dubai Islamic Bank suggested the FOL changes

The Board of directors at Dubai Islamic Bank has recommended its management to increase the foreign ownership limit in the bank’s share capital, according to media reports.

While the foreign ownership limit at Dubai Islamic Bank currently is 25 percent, the board of Dubai Islamic Bank wants it to be increased to 40 percent.

The change is subject to both corporate and regulatory approval.

Dubai Islamic Bank is set to become the latest bank to increase the foreign ownership limit in the GCC. Last year, First Abu Dhabi Bank, which the biggest lender in the country, proposed a similar change. Other banks to do so in the region include Emirates NBD and Abu Dhabi Islamic Bank.

The changes are being proposed to attract more foreign investments and help the banks stay competitive.

Dubai Islamic Bank’s chief executive Adnan Chilwan told the media, “As the UAE enters a new phase of economic growth, we will continue to drive our long-term sustainable growth agenda.”

Last year, Dubai Islamic Bank also completed the acquisition of its rival Noor Bank through a share swap deal to become the largest Islamic bank in the world. The deal also helped Dubai Islamic Bank to become the fourth largest bank in the UAE by assets after First Abu Dhabi Bank, Emirates NBD, and Abu Dhabi Commercial Bank.

The Dubai Islamic Bank and Noor Bank merger deal is also expected to position Dubai as a global centre for Islamic Finance.

Earlier this month, it was reported by the media that Dubai Islamic Bank could cut around 500 Noor Bank jobs as a part of the integration process.

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