IslamicFinance.de

The merger of National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) in the UAE last year had triggered a number of unconfirmed reports of bank mergers across the GCC. However, most of these reports were denied by bank managements. While bankers and analysts say the time is ripe for more bank mergers, they expect more merger deals to happen in the Islamic banking and Takaful industry. A proposed merger of Kuwait Finance House and Ahli United Bank is expected to result in second biggest Islamic Bank in the GCC after Al Rajhi Bank. The merger of Qatari banks Masraf Al Rayan, Barwa Bank and International Bank of Qatar is progressing and is expected to complete by end of the year. Some countries have only a small number of local banks, which limits competition. This means that profitability has remained solid and is therefore less likely to be a driver for M&A. Another stumbling block is the ownership structure of GCC banks, well established local private shareholders often control sizeable stakes and foreign banks only hold minority stakes.

In an announcement by National Bank of Abu Dhabi (NBAD) its plans to seek an Islamic banking licence in Malaysia were revealed. This licence is to meet the demand for Shari'ah-compliant financing. After starting non-Islamic commercial banking operations, the company endeavours further expansion. According to CEO of National Bank of Abu Dhabi Malaysia Bhd, Leong See Meng, good opportunities exist for operations abroad.

The National Bank of Abu Dhabi (NBAD) has launched its Sukuk Income Fund, a unique product investing in Sharia'h-compliant investment instruments that provides investors attractive returns with low levels of risk.
The NBAD Sukuk Income Fund represents an open-ended and actively managed product aiming a profit rate of 5% based on current market conditions. It is for institutional and individual investors who can invest as low as USD500 either through lump sum or regular savings plans.
The Fund is intended to catch the best opportunities available to investors by investing in a range of Sukuk and money market investments that are launched by the UAE Government.

The National Bank of Abu Dhabi (NBAD) and Abu Dhabi Islamic Bank (ADIB) finished the GCC's first ever Islamic equivalent of the conventional Repo product, a collateralized Murabaha transaction, opening the gateway to an alternative method of liquidity management in the Islamic banking sector.
NBAD and ADIB jointly starting on this initiative to formalise the Master Collateralised Murabaha Agreement (MCMA), therefor enabling Islamic banks to utilise their holdings of sukuk.

National Bank of Abu Dhabi (NBAD) was the only Bank from the Middle East of 17 banks from across the globe, that was shortlisted for the Financial Times/IFC Sustainable Bank of the Year Award.
The Award acknowledges banks that have prooven excellence in integrating environmental, social and governance considerations into their business and, along with NBAD, Access Bank of Nigeria and Exim Bank of Tanzania were finalists in the Africa/Middle East region.