Abu Dhabi Merger to create Big Bank in Middle East

After rumors of recent weeks, the official approval has arrived: Abu Dhabi will have a new banking giant 175 billion dollars of assets. NBAD and First Gulf Bank, respectively the second and the third largest bank in the UAE, today approved their merger. In a joint statement the two banks explain that the merged bank will be the largest in the Middle East and North Africa.

The transaction, which will be completed in the first quarter of next year, will lead to the cancellation of the First Gulf Bank name from the register of the Abu Dhabi stock exchange values. The new institute will be named National Bank of Abu Dhabi, although FGB shareholders will have a majority with 52% of capital.

The goal of the operation is to have the necessary size to compete in the region, where the main competitor is the Qatar National Bank SAQ. With the merger are expected savings of 136 million and will be present in 19 countries, including the financial centers such as Singapore, Hong Kong, Geneva and London. The market value will be more than $ 30 billion.