Emirates Industrial Bank takeover completed.

Byline: [e-mail] (Staff Writer)

The purchase, from 13 public institutions, banks and insurance companies, adds to the 51 per cent already owned by the Government and completes the buyout of the bank. The institutions involved in the sale of their stake to the Government include the General Pensions and Social Security Authority and the Abu Dhabi Cooperative Society. <p>The banks that sold their stake include Abu Dhabi Commercial Bank, National Bank of Abu Dhabi, National Bank of Dubai, Emirates Bank International, Mashreq Bank, Sharjah Bank and Arab Emirates Investment Bank. The insurance companies were Abu Dhabi National Insurance Company, Al Ain Ahlia Insurance Company, Al Dharfa Insurance Company and Dubai Insurance Company. <p>This agreement marks a key step in the formation of the Emirates Development Bank, the government entity that will fund the UAE's industrial sector. <p>In June 2009, the UAE Cabinet approved a draft law establishing the Emirates Development Bank with an authorized capital of AED 10 billion ($2.67 billion), of which AED 5 billion ($1.3 billion) will be provided by the government. It is scheduled to be operational by 2010 and will be formed by the merger of Emirates Real Estate Bank and Emirates Industrial Bank, both of which are now 100 per cent government owned. <p>Emirates Development Bank's objective is to complement existing financial services and commercial banks. It intends to partner with fund providers and banks within each Emirate for government housing schemes along with social and developmental projects. As part of this mandate, it will assist in funding the 40,000 houses, under the Sheikh Zayed Housing Programme, to be built for UAE nationals.

2009 CPI Financial. All rights reserved.

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