Abu Dhabi bank merger threatens 1,000 jobs

A potential three-way merger of three banks in the United Arab Emirate might result in the termination of some 1,000 jobs.
By: | January 2, 2019


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.