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Deposits in Qatari banks from the four Arab countries have been withdrawn and Qatari banks are no longer able to raise funding there.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

CBQK CEO sees huge opportunities for Asean countries in Qatar

27/11/2017

Commercial Bank Group CEO Joseph Abraham has said there are huge untapped opportunities available for Asean exports in Qatar.

Delivering a key note address at the ASEAN seminar on ‘trade a

0 Comments The Peninsula Qatar

Commercial Bank launches first contactless Debit Cards in Qatar

07/11/2017

Commercial Bank announced the launch of the first contactless Debit Cards in Qatar on the internationally accepted Visa & MasterCard NFC platform.

The contactless Debit Cards will enable Com

The Peninsula

Commercial Bank takes part in IIF and IMF meetings in Washington

24/10/2017

Commercial Bank recently participated in the 2017 Annual Meetings of the Institute of International Finance (IIF) and the International Monetary Fund (IMF) held simultaneously in Washington DC. Senio

Gulf Times

Ticker Price Volume
QNBK 137.89 130,508
DIB 6.55 9,484,054
SABIC 106.39 2,885,717
MABANEE 737.00 560,382
BURUJ 34.81 228,528
WALAA 34.51 307,018
SACO 112.80 141,418
CBQK Sector Market
P/E
Price/BookValue
Dividend Yield (%)
Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
QNBK 137.89 0.89 (0.64%)
MARK 41.25 0.25 (0.60%)
QIBK 98.60 1.10 (1.12%)
QIIK 59.00 1.12 (1.93%)
DHBK 31.35 0.00 (0.00%)
Saudi Aramco, CB&I and Chevron Lummus Global sign JDA

18/01/2018

Saudi Aramco, through its wholly-owned subsidiary Saudi Aramco Technologies, has today signed a three-party Joint Development Agreement (JDA) with CB&I, a U.S.-based leading provider of technology an

Press Release

Aramco ready to IPO in H2, awaiting govt decision on venue: CEO

18/01/2018

Saudi Aramco’s Chief Executive Amin Nasser said on Thursday that the initial public offering (IPO) of the state oil giant is still planned for the second half of 2018, but the government has not yet

Reuters

Weeks of talks ‘fail to resolve Dana Gas sukuk dispute’

18/01/2018

Weeks of talks between UAE energy firm Dana Gas and some local holders of a disputed $700 million sukuk have failed to reach an agreement, sources told Reuters, leaving a potentially protracted legal

Arab News

Damac Properties founder ready to sell 15% stake at Dubai developer

18/01/2018

Hussein Sajwani, the Dubai billionaire with links to US President Donald Trump, said Wednesday he was ready to sell 15 percent of his stake at real estate giant Damac Properties. Established by Sajw

Arab News

Mashreq Bank boost wealth management products as demand for investment

18/01/2018

Mashreq Bank's head of wealth management Ishrat Kiyani said the Dubai-based lender is beefing up its mutual fund range and portfolio solutions as clients increasingly invest excess funds through loca

The National