DUBAI: Dubai-based Noor Bank is looking to Turkey and other international markets to escape tougher competition at home and take advantage of a booming global Shariah-compliant finance industry, its chief executive said yesterday.
Banks in the United Arab Emirates have been expanding heavily abroad, as fierce rivalry among 51 lenders battling for a share of the domestic market drives down profits.
Emirates NBD bought the Egyptian operations of BNP Paribas in 2013. National Bank of Abu Dhabi and First Gulf Bank have been opening offices in Asia, while Mashreq is scouting Egypt and Turkey for possible acquisition targets.
Unlike other Emirati lenders eyeing expansion overseas, unlisted Noor does not plan to open any foreign branches — but it will offer additional services and products, expanding on its Turkish experience, Hussain Al Qemzi said in an emailed response to questions. Qemzi said the bank would provide more offerings in Islamic trade finance and loan syndication in particular.
“To do this, we are actively looking at opportunities in the Gulf, Turkey, south Asia and selected African countries.”
Turkey is a particular focus for Noor, Qemzi said, as the bank has already arranged syndications for Turkish borrowers worth more than $4.5bn since 2010, including bhan $2.1bn in the past 18 months.
Reuters
