Noor Islamic says has no plans to merge with lenders

Noor Islamic says has no plans to merge with lenders

Dismisses suggestions of Amlak tie up.

October 17, 2010 4:25 by Reuters

Noor Islamic Bank has no plans to merge with another financial institution, it said in a statement on Sunday, dismissing speculation it may tie up with troubled Islamic lender Amlak.

A newspaper report last week said the UAE government was considering merging privately-held Noor Islamic with Emirates Islamic Bank — an affiliate of Emirates NBD — and Dubai Bank. The combined entity would then purchase Amlak.

“Noor Islamic Bank categorically denies the market rumours about any potential acquisition of, or merger with any financial institution,” Noor Islamic said in a statement.

Amlak’s fate has been in question since the long-touted plan for it to merge with rival Islamic lender Tamweel was scuppered after Dubai Islamic Bank raised its stake in Tamweel in September.

The two firms have not traded since November 2008 when the United Arab Emirates government stepped in to restructure them.

Media reports have circulated in recent days that Emirates Islamic Bank is in talks to buy Dubai Bank and then purchase Amlak.

Dubai Bank is part of Dubai Group, itself a unit of Dubai Holding which is owned by the ruler of Dubai. Noor Islamic Bank is 25 percent owned by Dubai Investment Group, the investments arm of Dubai Holding.

(Reporting by Shaheen Pasha; Editing by Amran Abocar)