Government takes over Dubai Bank

In order to protect he interests of investors, the Dubai government has taken over Dubai Bank from its parent company, Dubai Holdings.  It’s estimated that Dubai Holdings has as much as $20 billion in outstanding debts.  The government plans on injecting an undisclosed amount of cash into the fledgling Islamic bank, and might consider a merger with other government-sponsored banks like Noor Islamic Bank, and Emirates NBD.

The takeover comes after the bank reported losses in 2009 of Dh290 million.  Due to the global financial crisis, there has been a record amount of defaults on loans and corporate restructures, especially in the Middle East.  There were an estimated Dh46.6 billion of provisions of bad loans reported by the first quarter of 2010, so the banking system has faced many tough challenges.  Analysts hope the government takeover will stabilize Dubai Bank, and the industry in general.

 



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In order to protect he interests of investors, the Dubai government has taken over Dubai Bank from its parent company, Dubai Holdings.  It’s estimated that Dubai Holdings has as much as $20 billion in outstanding debts.  The government plans on injecting an undisclosed amount of cash into the fledgling Islamic bank, and might consider a merger with other government-sponsored banks like Noor Islamic Bank, and Emirates NBD. The takeover comes after the bank reported losses in 2009 of Dh290 million.  Due to the global financial crisis, there has been a record amount of defaults on loans and corporate restructures, especially...

In order to protect he interests of investors, the Dubai government has taken over Dubai Bank from its parent company, Dubai Holdings.  It’s estimated that Dubai Holdings has as much as $20 billion in outstanding debts.  The government plans on injecting an undisclosed amount of cash into the fledgling Islamic bank, and might consider a merger with other government-sponsored banks like Noor Islamic Bank, and Emirates NBD.

The takeover comes after the bank reported losses in 2009 of Dh290 million.  Due to the global financial crisis, there has been a record amount of defaults on loans and corporate restructures, especially in the Middle East.  There were an estimated Dh46.6 billion of provisions of bad loans reported by the first quarter of 2010, so the banking system has faced many tough challenges.  Analysts hope the government takeover will stabilize Dubai Bank, and the industry in general.

 



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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