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.
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.
