GulfBase Live Support
Leave a message and our representative will contact you soon
27/09/2017 09:21 AST
Qatari’s third-biggest lender, Commercial Bank, is in talks to sell its $217 million stake in Abu Dhabi-listed United Arab Bank, joining several Qatari companies exiting the United Arab Emirates (UAE) due to a widening Gulf rift.
The potential buyer is a UAE-based strategic investor, two sources said, without giving its name.
One of the sources said Commercial Bank (CBQ) had been considering selling its 40 percent stake in United Arab Bank even before June when Doha’s spat with some of its Arab neighbours began, but the Gulf crisis accelerated its plan.
UAE is part of a group of Arab countries that cut off diplomatic and transport ties with Doha in June.
“Obviously, the expansion strategy of CBQ hasn’t worked, but they’ve stabilised the ship, so the bank can sell (its stake) in the existing form,” Jaap Meijer, head of research at Arqaam Capital, said.
“Also, the tensions between Qatar and the UAE is a reason for the sale.”
The Qatari bank said it had entered into a 90-day period of exclusivity with a “third party purchaser” it did not name.
Commercial Bank’s stake in United Arab Bank is worth around $217 million, Thomson Reuters data showed.
Commercial Bank CEO Joseph Abraham told Reuters on Monday that board meetings at United Arab Bank were now held by video conference because of travel restrictions imposed by the UAE.
Saudi Arabia, the UAE, Egypt and Bahrain cut diplomatic and economic ties, accusing Qatar of supporting terrorism, a charge denied by Doha.
Deposits in Qatari banks from the four Arab countries have been withdrawn and Qatari banks are no longer able to raise funding there.
Other Qatari companies are also looking to scale back from the UAE. Last week Qatar Insurance said it would close its Abu Dhabi branch because it was unable to renew its business licence.
Doha Bank, Qatar’s fifth-biggest lender, has cut around 10 jobs in the UAE and its operation in the emirate has been in talks to try to sell some of its assets.
Last month, major shipping and logistics group Qatar Navigation said it was shifting its regional hub from Dubai to the Omani port of Sohar because direct shipments between Jebel Ali and Doha were no longer possible.
Companies in the UAE, Saudi Arabia and Bahrain have not so far announced formal exits from Qatar, but Qatari trade statistics suggest their exports to Doha have plunged since the crisis began.
United Arab Bank is listed in Abu Dhabi but headquartered in Sharjah. (additional reporting and writing by by Saeed Azhar; Editing by Adrian Croft)
Reuters
01/08/2018
Over 300 Commercial Bank customers have already received cash prizes totalling QR1,830,000 with the Bank’s ongoing ‘Save & Win’ campaign. The ‘Save and Win’ campaign rewards savers with 365 cash priz
The Peninsula
19/07/2018
The Commercial Bank, its subsidiaries and associates announced yesterday its financial results for the half year ended 30 June 2018. The Group reported a net profit of QR855m as compared to QR180m fo
The Peninsula
05/07/2018
Commercial Bank has extended its best in class ‘60 seconds’ online remittances to Nepal and Pakistan. Customers can now send money home to Nepal and Pakistan in less than a minute using Commercial Ba
The Peninsula
Ticker | Price | Volume |
---|
06/08/2020
Bahrain’s Investcorp slipped into a $165 million loss for the 12 months ended June 30, against profits of $131 million a year ago.
The COVID-19 played its part in the loss, as fee income c
Gulf News
06/08/2020
Aramex, a leading provider of logistics and transportation solutions, has registered a 4 per cent growth in its revenues for the second quarter which surged to hit AED1.32 billion ($359 million), com
Trade Arabia
05/08/2020
Abu Dhabi based investment company Waha Capital recorded a net loss of Dh27.2 million - attributable to shareholders - for the first six months of 2020, an improvement on the Dh124.38 million it rec
Gulf News
05/08/2020
First Abu Dhabi Bank (FAB), recently announced the issuance of the largest-ever Chinese Yuan (CNH) denominated dual-listed Formosa bond globally, with a CNH 3.25 billion five-year issuance.
The Gulf Today
05/08/2020
UAE's leading telecom services operator Etisalat Group has announced that the interim dividend of 15 fils per share for the second quarter will be paid out starting from August 11 through the First A
Trade Arabia