With the acquisition, Dubai Islamic Bank will become one of the largest Islamic banks in the world itself with combined assets worth $76 billion or Dh278 billion. A money manager at Shuaa Capital told Bloomberg that DIB may pay 0.8 to 0.9 times book value for Noor Bank shares.

Dubai Islamic Bank said in a statement that the acquisition will lead to cost efficiencies, contribute to profitability, and help DIB offer competitively priced products and services across a more diversified portfolio. DIB also expects the acquisition to  accelerate digitisation and drive innovation.

The bank told the Dubai Financial Market in a statement that it will complete all legal processes for the completion of the deal. The Dubai lender did not specify when shareholders will vote on the deal or when it will complete the evaluation process.

Adnan Chilwan, group CEO of Dubai Islamic Bank said that the bank hopes to accelerate the growth and popularity of Islamic finance across the region and beyond with the deal. He also told the regional media that the acquisition of Noor Bank was in line with Dubai Islamic Bank’s strategy that strikes a fine balance between shareholder interests and market dynamics.

Mohammed Al Shaibani, the chairman of DIB, said in a statement: “Innovation and service excellence sit at the very heart of our business and this will continue as we build scale through this acquisition and develop fresh new ways to improve the banking experience for our customers. In addition, this announcement will provide opportunities for economic growth and prosperity across the region, ensuring that the UAE’s financial sector remains at the forefront of the Islamic economy.”

Investment Corporation of Dubai, Dubai’s main state-owned holding company, owns 28 percent in DIB. The holding company is also one of the largest shareholders in privately-owned Noor Bank also.

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Dubai Islamic Bank Group CEO Dr. Adnan Chilwan, said, “We are delighted with our successful return to the market with this landmark sukuk issuance of US$1bn.

“This is the second time that DIB has raised a billion dollar senior sukuk in as many years effectively leading with the first deal of 2018 and re-opening the market in the GCC.”

According to Arabian Business, an investor meeting was held in Asia last year and a roadshow in London on January 29, 2018. The Bank is said to continue its devised ‘growth 2.0’ strategy this year.  

DIB press release reads the issuance received 120 orders from a diverse investor base as part of a USD 1.83 billion order book indicating nearly 2 times over subscription. The instrument will carry a dual listing on the Irish Stock Exchange and Nasdaq Dubai.

“The tremendous investor interest from across the globe is clearly exhibited by the strong and widespread subscription demonstrating not only the continued attraction of DIB as a quality credit, but also the resilience of the sukuk market in general,” Chilwan said.

Research analyst at Menacorp Issam Kassabieh highlighted the Bank’s net operating income at 19.90% and net profit at 11.18% has positioned it “in a good financial position with a healthy increase in assets as well as a growing customer deposit base.”

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July 23, 2014: Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, has announced the launch of ‘Smart Bank’, in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum’s, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to transform Dubai into a ‘Smart City’.

With Dubai taking the lead to become the most modern and smart city in the world, DIB has positioned itself to become a cornerstone of this vision. Smart Bank, a revolutionary concept promises a customer experience seldom witnessed in the service industry. Riding on its strong technological prowess, the bank is focused on setting new benchmarks in the field of customer interaction by making it quick, seamless and even pleasurable.

“For us, Smart Bank is not just a slogan, but a philosophy that reflects in every molecule of our interaction with the bank’s vast and expansive client base”, said Dr. Adnan Chilwan, CEO, DIB.  “This novel and innovative idea is an extension of our Customer First program built around customer centricity and focus. Fully aligned with Dubai’s long term ambitions, we are committed to transform the banking service industry through extensive and innovative use of technology leading to a completely new and refreshing experience for all our customers and stakeholders,” he added.

DIB aims to have the Smart Bank concept built into the customer experience across its entire client base, individual or institutional. “One of the key elements of this endeavor is a paperless transaction culture, which embodies DIB’s commitment not only to enhanced customer experience but also to CSR and sustainability,” mentioned Dr. Chilwan, underpinning the bank’s pledge to support Dubai’s future strategic agenda.

The new platform will serve the growing demand for banking services by allowing customers to complete their banking transactions at DIB branches electronically through an entirely seamless process with faster turnaround times.

New customers can now complete their account opening formalities and walk out with their instantly issued ATM cards and cheque books within 15-20 minutes.

System integration with the Emirates Identity Authority enables uploading of customer information directly from the Emirates’ ID cards into the bank’s systems. Customer transactions are completed without filling forms using handheld electronic devices with digital signatures taken for secure and efficient processing.

DIB has already launched the paperless, smart bank experience for customers across 12 of its branches in the UAE, with plans to roll it out across its entire network of 90 branches by the end of October 2014.

In line with the Smart Bank initiative, the bank also recently announced a tie-up with Dubai Smart Government (DSG), which will electronically link the Government’s Resources Planning (GRP) Systems and Dubai Islamic Bank (DIB) to automate the financial processes for government suppliers and salary payments. The full automation of electronic payments with DIB allows staff at any government entity to send the due payments to suppliers and the salaries of employees directly through the automated and fully integrated platform provided by DIB.

Source: DIB

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