The largest bank in the Middle East with $175 billion assets will be created in the UAE

Almaty. July 4. Silkroadnews –  Two large banks of the UAE – National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) – have agreed to merge to form the largest bank in the region of the Middle East and North Africa with total assets reaching about $175 billion, media reported.

“The Boards of Directors of Abu Dhabi banks – National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) – approved their merger. The combined bank will be the largest bank in the Middle East and North Africa region, with US$175 billion of assets and a combined market capitalization of approximately US$29.1 billion,” the publication says.

According to the statement by two banks, after the merger the combined bank’s market capitalization will reach 106.9 billion dirhams (about $29.1 billion), with a 26 percent share of outstanding loans it will operate an international network of branches and offices spanning 19 countries.

The statement said both entities will continue to operate independently until the merger becomes effective, which is expected in the first quarter of 2017.

37% of the capital of the combined bank will be owned by the government of Abu Dhabi and its affiliated entities, 33% – by the ruling family of Abu Dhabi.

The combined bank will be called the National Bank of Abu Dhabi. After the closing of the transaction FGB shares will be delisted. H.H. Sheikh Tahnoon bin Zayed Al Nahyan will head the board of directors of the combined bank.

The merger is expected to deliver cost synergies of approximately US$136 million annually. FGB has a strong retail business, including mortgage, credit cards and transactions. NBAD is a leader in the UAE corporate banking and capital markets advice.