Abu Dhabi bank merger threatens 1,000 jobs
About a thousand bank employees in the United Arab Emirates (UAE) capital of Abu Dhabi might be losing their jobs.
This is due to a potential three-way merger between Union National Bank PJSC, Abu Dhabi Commercial Bank PJSC, and privately-held Al Hilal Bank.
The proposal is reportedly already at the advanced stages; with the banks currently discussing valuation, and completing due diligence.
If successful, the merger will create a lender with about US$115 billion in assets, making it the Gulf Co-operation Council’s fifth largest bank.
The UAE is trying to improve the competitiveness of its financial sector through consolidation. As such, further job losses are likely.
The UAE, which has a population of nine million, has some 50 banks. In contrast, there are only 28 lenders in Saudi Arabia, serving a population of more than 30 million people.
