Dubai Bank

JSCL restricted from buying Dubai Bank’s stakes in BankIslami

The State Bank of Pakistan (SBP) rejected request of Jehangir Siddiqui and Company Limited (JSCL) to review its decision to disallow Dubai Bank to sell out its shares to its sponsor shareholders of BankIslami. JSCL approached the central bank in September 2015 to submit an application to the central bank with suggestions in order to getting additional shares in BankIslami. However, the central bank retained its decision and disallowed the management of BankIslami to sell its stakes of Dubai Bank to JSCL in pursuant to Founding Shareholding Agreement under which sponsor shareholders are not allowed to increase its shareholding. Earlier in August 2015, a consortium led by Ali Hussain of JSCL and Alkaram Group offered Dubai Bank to purchase its 144.200 million in the BankIslami.

Al-Karam Group-led consortium bids for 14 percent BankIslami stakes

A local consortium led by Al-Karam Group has offered to buy the 144.20 million shares of BankIslami Pakistan Limited (BIPL), which the bank's majority shareholder, Dubai Bank PJSC, tends to sell. The potential acquirer of BIPL's shares came in the limelight after Wednesday's stock filing of Jahangir Siddiqui and Company Limited (JSCL) in which the company disclosed that Dubai Bank PJSC had offered it, along with another shareholder of BankIslami, the saleable 14.3 percent stakes of BIPL. The Dubai Bank was bound, under the Founding Shareholders' Agreement it had signed with JICL and other stakeholders, to first ask, through issuing first refusal, the existing stakeholders if they wanted to increase their shareholdings in the bank.

Dubai Bank to divest holding in BankIslami

Dubai Bank PJSC wants to sell its shareholding in BankIslami Pakistan, a stock filing said on Wednesday. Another shareholder, Jahangir Siddiqui and Company, reported that it has received a letter from the UAE-based bank, saying it wants to sell 144.2 million shares in BankIslami Pakistan. The stake that Dubai Bank PJSC wants to sell constitutes 14.3% of the total issued shares of BankIslami Pakistan. Dubai Bank is offering its stake to Jahangir Siddiqui and Company and another (unnamed) shareholder of BankIslami Pakistan under its shareholders’ agreement that mandates a right of first refusal on a proportionate basis.

Emirates Islamic Bank completes migration of Dubai Bank customers and branches to become one of UAE's largest banks

Emirates Islamic Bank (EIB) announced the successful integration of of Dubai Bank customers, branches and operations into its platform. The most branches have now been converted to EIB systems and brand. The remaining ones will undergo conversion at the beginning of December. EIB further explained that customers whose accounts have been migrated from Dubai Bank will receive new account numbers. The old account numbers and existing identification will still be valid for the foreseeable future across all banking channels.

Dubai Bank refunds 'overpaid' service charges to Skycourts customers

Dubai Bank sent a letter to Skycourts unit owners financed by the bank, informing them about their intention of partial fee refund consistent with the principles of Shariah. According to a detailed review of the service fees paid against the financed unit with Dubai Bank, a resolution for additional benefit to Skycourts customers was made. The fee refunded takes into account the period from the moment the bank took the possession of the unit from the developer until the moment when a notice of delivery was sent to the customer by the bank.

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Dubai Bank to be rebranded by November-end

According to an official announcement, by the end of November 2012 Dubai Bank will be rebranded as Emirates Islamic Bank (EIB). By merging the two Islamic banking holdings of the Emirates NBD Group, a stronger, more resilient proposition for customers will be provided. With the completion of the alignment process, customers will be able to enjoy an expanded network of 50 branches, 100 ATMs and CDMs across the UAE. Also, there will be free access to over 700 ATMs and CDMs which are part of the Emirates NBD Group.

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Dubai Bank takeover does not signal trend of consolidation

The fact that Bank Emirates NBD takes over Dubai Bank is more likely not ot have an impact in the Gulf Arab region. Although it's not a common merger, it is a handover arranged by the state.
Although seen as overbanked, the UAE takes rare steps towards consolidation. Emirates NBD is the result of a merger dating back to 2007 between Emirates Bank International and National Bank of Dubai. This was the last time when a bank in in the Gulf state bought a competitor or merged with one of its rival.

Emirates NBD takes over Dubai Bank

Dubai Bank was saved by Emirates NBD under instructions from Sheikh Mohammed Bin Rashid Al Maktoum, Dubai’s ruler. Dubai Bank is owned by the government, which also has a 55% stake in Emirates NBD.
Rick Pudner, CEO of ENBD, stated that Dubai Bank will be capitalized by ENBD to the extent considered necessary.

Islamic wealth management grows in the Gulf

It seems that Islamic financial institutions (IFIs) are not willing to leave wealth management to conventional foreign banks any longer. In the UAE, all IFIs have established wealth management centers in recent years. At Dubai Bank this segment is named Royal Banking.

Moody’s places Dubai Bank on review

Moody’s Investors Service put the E+ bank financial strength rating (BFSR), mapping to B1 on the long-term rating scale, of Dubai Bank (DB) on review with direction uncertain.
The review comes after the Government of Dubai's announcement on 16 May 2010 that it plans to inject capital into Dubai Bank, protect the interest of all depositors and ensure that Dubai Bank's operations remain uninterrupted.

Fitch downgrades Dubai Bank's Individual Rating to 'F'

Fitch Ratings has downgraded UAE-based Dubai Bank's Individual Rating to 'F' . After the intervention by the Government of Dubai, taking full control of the bank, and providing a significant capital injection, the bank has also been removed from Rating Watch Negative (RWN).
Fitch downgraded Dubai Bank's Individual Rating in March 2011 because of its weakening financial position.

Where now for Dubai Bank?

It is now official that the Dubai government, acting under directions from His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE, Ruler of Dubai, has taken over Dubai Bank with no delay.
It seems that the government will put an unspecified amount of cash into DB, completely weakening the holdings of Dubai Holding and Emaar Properties.

UAE: Fitch Downgrades Dubai Bank's Rating Following Government’s Announcement

Fitch Ratings announced the downgrade of Dubai Bank's Individual Rating to 'F' from 'D/E'. After the the announcement by the Government of Dubai that it will take full control of the bank, and it will provide a significant capital injection, it has also been removed from Rating Watch Negative (RWN).
The agency has also declared Dubai Bank's Long-term Issuer Default Rating (IDR) at 'BBB-', Short-term IDR at 'F3', Support Rating at '2' and Support Rating Floor at 'BBB-'.

Action over exposed lender is a positive step, not tip of an iceberg

The world is already used to radical intervention by governments in the banking sector. This is the case of banks like Royal Bank of Scotland, Lloyds, Citicorp and many others.
That's the reason why it's no surprise that the Dubai Government is taking over Dubai Bank.
The move could also be seen as a bit of internal accounting by the emirate's authorities. It also lightens the financial burden for Emaar Properties, which held a 30 % stake.

Dubai Bank appears better positioned for merger

After the Government of Dubai obtained 100% shares in Dubai Bank, bankers and analysts think that the merger is more acceptable.
One of the reasons is that they now don't have to fear for value destruction stemming from acquisitions.

Dubai rescues Islamic lender to bolster bank sector

Dubai’s government took over Dubai Bank in order to avoid a collapse undermining the state’s banking sector. The options were to run the bank on a stand-alone basis or merge it with another state-owned bank.
At the end of 2009, Dubai Bank had total assets of AED17.4 billion ($4.74 billion) against total liabilities of 15.7 billion dirhams. It made a loss of AED290.6 million.
The government promised that the bank’s current management team will not be affected by the takeover.

Dubai Bank rescued by the Government

The Government's intervention assures that the bank's business continues uninterrupted while they decide if should be run on a stand-alone basis or be potentially merged with another bank in which the government has ownership.
The government also stated that it will take full control of Dubai Bank. The intervention will give the city-state's government full control of Dubai Bank.

114 projects under 'guaranteed funding' plan

The number of projects registered under the Dubai Land Department’s (DLD) Tayseer programme has reached 114 and the first funding agreement under the scheme is expected to be finalised soon.
Until now, seven banks have signed with the DLD for financing under the Tayseer initiative. The banks are: Emirates Islamic Bank, Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, Noor Islamic Bank, Mashreq, Dubai Bank and Ajman Bank.

Dubai Bank introduces "Royal Banking," underscoring commitment to 5-year strategy

In line with its five-year strategy to develop products and services that meet the needs of elite clients, Dubai Bank announced the launch of "Royal Banking," a complete wealth management solution for premium customers who seek customised solutions and personalised service across all banking channels.
To qualify as a Royal Banking customer, individuals should maintain an average monthly deposit of AED 500,000 or transfer salaries of AED 50,000 and above to Dubai Bank.

Fitch downgrades Dubai Bank's Individual Rating, maintains RWN

Fitch Ratings has downgraded UAE-based Dubai Bank's Individual Rating to 'D/E' from 'D' and maintained it on Rating Watch Negative (RWN).
At the same time, Fitch affirmed Dubai Bank's Long-term Issuer Default Rating (IDR) at 'BBB-', Short-term IDR at 'F3', Support Rating at '2' and Support Rating Floor at 'BBB-'. The Outlook on the Long-term IDR is Negative. The ratings on Dubai Bank's Sukuk Programme were also affirmed at 'BBB-', although there is no outstanding issuance.

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