Dubai. In a major move that is likely to consolidate banking in the UAE, Emirates Bank International (EBI) and National Bank of Dubai (NBD) will merge to create one of the Middle East’s largest banks, with assets of 165 billion UAE dirhams ($44.9 billion). EBI and NBD had a market value of $12.03 billion a day before the deal was announced. The move will create a yet-to-be-named entity with 65 billion dirhams more in assets than the country’s biggest lender - National Bank of Abu Dhabi. The pedigree of two banks is remarkably similar. EBI was established in 1977, has a total asset base of 9.59 billion dirhams and has 35 branches in the UAE, one in London, one in Mumbai and a representative office in Tehran. NBD was established in 1963, its total assets are in the region of 6.93 billion dirhams and it has 39 branches in the UAE, one in London and a representative office in Tehran. The merger has come in for some criticism, but ratings agency Fitch called it a “welcome development for the overbanked UAE.” The terms of the merger are unclear, but rationalization is likely because of the overlap of employees and branches.

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