The Abu Dhabi Government has merged the Industrial Bank with three other financial institutions to create a state-backed mega-bank aimed at reviving lending to property buyers and developers.
Late last night the Government announced the second significant merger in two days.
The Ministerial Council for Services approved the merger of the the Industrial Bank with the Real Estate Bank, which had only a day earlier been combined with Amlak Finance and Tamweel, the country’s two largest home loan companies, both severely affected by the credit crisis.
The new mega-bank will be known as the Emirates Development Bank. Mahmood al Mahmood, the chief executive of Al Qudra Holding in Abu Dhabi, had predicted the creation of such a bank last week.