Dubai Islamic Bank, the largest Islamic bank in the UAE by total assets, said it has won approval from its shareholders for the acquisition of Noor Bank.

The announcement from DIB came following the conclusion of its General Assembly Meeting in Dubai, where the shareholders gave their go-ahead for the takeover.

They also urged the bank to boost its capital from 6.58 billion shares to 7.24 billion in line with the approved share swap ratio of 1 new share in DIB for every 5.49 Noor Bank shares which translates into an issuance of 651.1 million new DIB shares.

The acquisition cements DIB’s position as one of the world’s largest and most influential Islamic finance institutions, and is expected to enhance Dubai’s position as the capital of Islamic economy by creating the region’s most progressive Shari’a banking group, said the statement from DIB.

With this move, DIB is set to consolidate its position as the one of the largest Islamic banks in the world with combined assets of nearly Dh275 billion ($75 billion), it added.

Chairman Mohammed Al Shaibani said: "DIB has enjoyed another outstanding year of growth and success, and we remain determined to continue making our mark both locally, and globally. DIB is now the UAE's biggest Islamic lender with Dh230 billion of assets as of September 30, 2019 and, with the acquisition of Noor Bank, we are on track to expand our footprint in the region and beyond."

"Completion of this deal will provide opportunities for economic growth, ensuring that the UAE’s financial sector remains at the forefront of the Islamic economy," he stated.

Group CEO Dr Adnan Chilwan said: "We are confident that this acquisition will build upon the already strong foundations we have established and accelerate our growth in the sector."

DIB remains one of the UAE’s fastest growing financial institutions and, the new larger entity, is expected to maintain its performance leadership heralding further success for the UAE as a hub for the growing Islamic economy.

"With a strong track record and a robust platform, the future can only be positive with the additional scale and reach that we will gain as a consequence of this deal," he stated.

"We anticipate that integrating the two operations will generate significant synergies, leading to improved efficiencies and greater contribution to profitability with positive impact on shareholder returns," he added.-TradeArabia News Service