Abu Dhabi Islamic Bank (ADIB) is planning acquisitions in Asia, the Middle East, and North Africa (MENA) in 2016, according to the bank’s chief executive.
ADIB CEO Tirad al-Mahmoud told Reuters that the bank is seeking opportunities in Malaysia, Indonesia, Algeria, Jordan and Morocco, with the remainder of this year not being the ideal time for deals due to multiple factors such as a sluggish UAE economy.
"This is a time to let things settle down and (instead) we will be looking to do deals in 2016," he added.
The comment comes after the bank made unsuccessful bid to buy Citigroup’s Egypt retail business recently.
Commenting on the failed bid, Tirad al-Mahmoud said that ADIB lost to local lender Commercial International Bank due to its aggressive bid.
He said that the bank’s overseas expansion could now involve retail acquisitions or growing its own corporate business.
Speaking about the local banking industry, Tirad al-Mahmoud said that years of low interest rates have compelled UAE’s banks to reduce price of loans and other products in a bid to compete.
"The risk we run is destroying shareholder value if we continue this senseless price competition but so be it, that’s the market. My biggest concern is erosion of margins and erosion of returns on capital for the industry as a whole," Reuters quoted him as saying.