3 Major UAE Banks to Merge This Month: ADCB-UNB-Al Hilal Banks To Merge

We have been hearing of merger between 4 UAE banks for about 2 years now since Nov 2016.

They were expected to be:

UNB with ADCB

Al Hilal Bank with ADIB

Rumors were so strong in Nov 2016 that shares of ADCB, UNB and ADIB were halted from trading due to the speculation.

Just now, on 3 Sept 2018, news has come out that ADIB has been left out.

3 major UAE banks will be merged within weeks (prior to Dec 2018 closing).

Thousands will be fired and dozens of branches will get shut.

In 2017,  75 branches were shut in UAE and thousands of bankers were laid off.

In 2016, 28 branches across UAE were shut, according to the Central Bank.

Expect the shut down of branches and lay offs to be at least double than that in 2017.

Abu Dhabi Banks in Talks to Create Fifth-Biggest Gulf Lender

A brief snapshot of the 3 UAE lenders being merged:

ADCB (established 1985) has about 5,000 employees with 50 branches, 2 in India and about 300 ATM's and is majority owned by ADIA (Abu Dhabi Govt).

UNB (established 1982) has about 2,700 employees with 72 branches, offices in China, Egypt, Kuwait and Qatar, is jointly owned by Abu Dhabi and Dubai Govt.

Al Hilal Bank (established 2008) has about 1,500 staff, 25 branches, 116 ATM's and a branch in Kazakhstan. Majority owned by ADIC, arm of the Abu Dhabi Govt.

As the UAE crisis continues unabated since 2015, expect more closures, mergers and shutdowns ahead.

Collapse of Schon Properties ($2bn, Aug 2018), Abraaj Group ($15bn, June 2018) and 3 mega UAE bank mergers (Sept 2018) and previous merger of largest UAE bank, NBAD, with FGB (Feb 2017) are just opening trailers. 

Movie is yet to begin in the UAE.