Abu Dhabi Islamic Bank (ADIB) is set to establish an asset management-focused company and is looking for partners for the venture, reported Bloomberg News ADIB CIO Mohamed Bary.
In an interview with the news agency, Bary said that Abu Dhabi’s biggest Islamic bank is setting up a company, which will be predominantly focused on asset management.
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The new company will be “fairly soon introduce to the market”, he added.
The news comes as ADIB continues to seek organic and inorganic growth opportunities for its banking business.
Bary commented: “The traditional way of M&A in this day and age is taking a long time to pay back and that’s why we are being very creative on how to create a bigger pool of opportunities.”
ADIB registered a 9% growth in financing business from the corporate and government entities and is continuing to witness growing demand across these sectors despite strong liquidity.
Bary also said that the bank is “watching how things evolve particularly as interest rates go up, which might also impact some of the appetite for financing in some parts of the corporate segment.”
In recent years, UAE lenders are exploring opportunities for growth outside the region due to the congested banking market and limited growth.
Recently, First Abu Dhabi Bank made a billion-dollar bid to take a majority holding in investment bank EFG-Hermes. The offer was later withdrawn by the lender after facing regulatory delay in Egypt.
Last year, the bank signed a strategic alliance with State Street to roll out a full-service enterprise offering for institutional investors in the Middle East and North Africa.
