Tirad Al Mahmoud
Barclays to sell UAE retail ops to ADIB
Dubai, April 6, 2014
Barclays has agreed to sell its retail banking operations in the United Arab Emirates to Abu Dhabi Islamic Bank (ADIB), ADIB said on Sunday.
ADIB, the emirate's largest sharia-compliant lender, said the acquisition was expected to cost 650 million dirhams ($177 million) and result in 110,000 customers joining ADIB.
“ADIB is one of the leading Retail Banking operations in the UAE and this transaction is a perfect fit for our strategy as we expand into the expatriate market segment without disrupting our loyal existing customer base,” said Tirad Al Mahmoud, chief executive officer of ADIB.
“Once completed, Barclays’ customers will enjoy access to one of the three largest branch networks in the country along with an enhanced range of market-leading financial solutions backed by ADIB’s number 1 rated customer service. Our shared goal, with Barclays, is to ensure that the transition is as smooth and easy and we look forward to welcoming everyone to ADIB.”
John Vitalo, chief executive officer, Mena, Barclays, said: “The decision to exit the UAE retail banking space, while not taken lightly, allows us to focus on our businesses in Corporate and Investment Banking and Wealth and Investment Management. These businesses are strong, performing well, and have significant future growth potential.
“The strong interest in Barclays’ UAE retail business is a testament to the high quality of our business, portfolio and talent. Until the transition is complete, we remain committed to fully servicing our clients.”
ADIB and Barclays will work together to ensure a seamless transition for customers which will be enhanced by ADIB’s intention to offer employment to all Barclays’ retail employees who will operate out of the existing branches.
After completion, Barclays’ customers will be able to access ADIB’s growing network of 80 branches, 600 ATMs and the UAE’s top rated internet and mobile banking platform.
They will benefit from a product suite that ranges from current accounts to home finance, personal finance, car finance, education and travel finance and award winning co-branded cards with Etihad and Etisalat. They will also enjoy enhanced benefits such as sign up rewards and higher limits.
The deal is subject to approval by the UAE's central bank. – TradeArabia News Service & Reuters