The Emirates Industrial Bank and the Real Estate Bank, which recently merged with Amlak Finance and Tamweel, the UAE’s two largest real estate financiers, will be merged into a single state-backed entity, Emirates Development Bank. Initially it will hold DH10bn in capital. The intention is for the bank to provide much-needed liquidity for investors in the UAE’s real estate sector.
Obaid Al Tayer, Minister of Financial Affairs announcing the move, stated: “In effect, the government is merging Emirates Industrial Bank with three other financial institutions to create a state-backed mega-bank aimed at reviving lending to real estate buyers and developers.”
Al Tayer said that the move was as part of the government’s response to the global financial crisis, which has severely dented the UAE’s once flourishing real estate sector.
"The banks will now be assessed separately, with financial and legal studies being carried out. We have started the assessment process and the final results will be referred to the cabinet, which ordered the merger. We expect to receive final approval by the summer," Al Tayer concluded.
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