Dubai govt strengthens banking sector with takeover

12/10/2011 - Dubai Investment News Posted by Bob Brunskell
Dubai govt strengthens banking sector with takeover

Emirates NBD Bank has taken over the troubled Dubai Bank under the orders of the ruler of Dubai, Sheik Mohammed bin Rashid Al Maktoum.It is hoped that the move will strengthen Dubai's growing position as a major financial hub and comes just months after the government had to step in to rescue the bank.Meanwhile, Emirates NBD, which is over 50 per cent owned by the government, is the largest lender in the UAE.A statement from the government said: "Dubai government is keen to take the necessary steps to empower financial institutions to fully operate in a way that serves the national economy and consolidate the country's position as a first class international financial hub."The move could encourage more businesses to bank in the emirate as Emirates NBD is thought to be one of the healthiest institutions in Dubai. It could also provide a huge boost to the emirate's economy.